The Collected Documents of the Group Of 77: Volume VI: Fiftieth Anniversary Edition [15 ed.] 9780190258603, 9780199316878

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THE GROUP OF 77 AT THE UNITED NATIONS Third Series

THE GROUP OF 77

The Collected Documents of

VOLUME VI Fiftieth Anniversary Edition

Edited by Mourad Ahmia

1 Oxford University Press is a department of the University of Oxford. It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide. Oxford New York Auckland Cape Town Dar es Salaam Hong Kong Karachi Kuala Lumpur Madrid Melbourne Mexico City Nairobi New Delhi Shanghai Taipei Toronto With offices in Argentina Austria Brazil Chile Czech Republic France Greece  Guatemala Hungary Italy Japan Poland Portugal Singapore  South Korea Switzerland Thailand Turkey Ukraine Vietnam Oxford is a registered trademark of Oxford University Press in the UK and certain other countries. Oceana is a registered trademark of Oxford University Press. Published in the United States of America by Oxford University Press 198 Madison Avenue, New York, NY 10016

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In memoriam of my beloved mother Houria Sekki (1936–2014)

Contents1

Foreword. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii Preface. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xix Introduction: The Early Days of the Group of 77. . . . . . . . . . . . . . . . . . . . . . . . . 1 CHAPTER I:  The Genesis of the Group of 77. . . . . . . . . . . . . . . . . . . . . . . . . . 13 CHAPTER II:  Ministerial Meetings of the Group of 77 in Preparation for UNCTAD Conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 CHAPTER III:  Meetings of the Group of 77 in Preparation for the Conference on International Economic Cooperation . . . . . . . . . . . . . . 349 CHAPTER IV:  Special Ministerial Conferences and Other High-Level Meetings of the Group of 77 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361 CHAPTER V:  High-Level Conferences of the Group of 77 on South-South Co-operation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451 CHAPTER VI:  Annual Meetings of Ministers for Foreign Affairs of the Member States of the Group of 77. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505

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CHAPTER VII:  Sessions of the Inter-Governmental Follow-Up and Coordination Committee on South-South Cooperation (IFCC) . . . . . . . . . 853 CHAPTER VIII:  Group of 77 South Summits . . . . . . . . . . . . . . . . . . . . . . . . 1009 ANNEX I: Acronyms.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1063 ANNEX II:  List of the original signatories of the Joint Declaration of 77 developing countries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1073 ANNEX III:  Evolution of the membership of the Group of 77 since 1964.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1077

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Foreword. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii Preface. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xix Introduction: The Early Days of the Group of 77. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

CHAPTER I:  THE GENESIS OF THE GROUP OF 77. . . . . . . . . . . . . . . . . . . . . 13 1.  Eighteenth Session of the United Nations General Assembly, New York, 11 November 1963 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 a.  The Joint Declaration of the Seventy-five Developing Countries (Group of 75) made at the Eighteenth Session of the General Assembly. . . . . . . . . . . . . . . 15 2.  First Session of the United Nations Conference on Trade and Development, Geneva, 15 June 1964. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 a.  The Joint Declaration of the Seventy-seven Developing Countries (Group of 77) made at the Conclusion of the United Nations Conference on Trade and Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 3.  First Ministerial Meeting of the Group of 77, Algiers, 10–25 October 1967. . . . . . . . . . . . 22 a.  The Charter of Algiers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

CHAPTER II:  MINISTERIAL MEETINGS OF THE GROUP OF 77 IN PREPARATION FOR UNCTAD CONFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . 41 1.  First Ministerial Meeting of the Group of 77, Algiers, 10–25 October 1967, in preparation for UNCTAD II, New Delhi, 1 February–29 March 1968. . . . . . . . . . . . . . . . . . 43 a.  The Charter of Algiers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 2.  Second Ministerial Meeting of the Group of 77, Lima, 25 October–7 November 1971, in preparation for UNCTAD III, Santiago, 13 April–21 May 1972. . . . . . . . . . . . . . . . . . . . . . . 43 a.  The Declaration and Principles of the Action Programme of Lima . . . . . . . . . . . . . . . 43

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3.  Third Ministerial Meeting of the Group of 77, Manila, 26 January–7 February 1975, in preparation for UNCTAD IV, Nairobi, 5–31 May 1976. . . . . . . . . . . . . . . . . 97 a.  The Manila Declaration and Programme of Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 4.  Fourth Ministerial Meeting of the Group of 77, Arusha, 12–16 February 1979, in preparation for UNCTAD V, Manila, 7 May–3 June 1979 . . . . . . . . . . . . . . . . . . . . . 135 a.  The Arusha Programme for Collective Self-Reliance and Framework for Negotiations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 5.  Fifth Ministerial Meeting of the Group of 77, Buenos Aires, 5–9 April 1983, in preparation for UNCTAD VI, Belgrade, 6 June–2 July 1983 . . . . . . . . . . . . . . . . . . . 213 a.  The Buenos Aires Platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 6.  Sixth Ministerial Meeting of the Group of 77, Havana, 20–25 April 1987, in preparation for UNCTAD VII, Geneva, 9 July–3 August 1987. . . . . . . . . . . . . . . . . . 264 a.  The Havana Declaration and Assessment and Proposal by the Group of 77 relating to UNCTAD VII. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264 7.  Seventh Ministerial Meeting of the Group of 77, Tehran, 19–23 November 1991, in preparation for UNCTAD VIII, Cartagena de Indias, 8–25 February 1992. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297 a.  The Tehran Declaration, Towards a New Partnership for Development and Substantive Platform of the Group of 77 for International Cooperation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297 8.  Ministerial Meeting of the Group of 77, Midrand, South Africa, 28 April 1996, in preparation for UNCTAD IX in Midrand, South Africa, from 27 April to 11 May 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 a.  The Midrand Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 9.  Ministerial Meeting of the Group of 77, Marrakech, Morocco, 16 September 1999, in preparation for UNCTAD X in Bangkok, Thailand, from 12 to 19 February 2000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 a.  The Marrakech Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 10.  Ministerial Meeting of the Group of 77, São Paulo, Brazil, 11–12 June 2004, in preparation for UNCTAD XI, São Paulo, Brazil, from 13 to 18 June 2004. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332 a.  The São Paulo Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332 11.  Ministerial Declaration of the Group of 77 on the occasion of UNCTAD XII, Accra, Ghana, 20 April 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338 a.  The Accra Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338 12.  Ministerial Declaration of the Group of 77 on the occasion of UNCTAD XIII, Doha, Qatar, 23 April 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344 a.  The Doha Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344

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CHAPTER III:  MEETINGS OF THE GROUP OF 77 IN PREPARATION FOR THE CONFERENCE ON INTERNATIONAL ECONOMIC COOPERATION . . . . 349 1.  Group of 19 of the Group of 77, Paris, 28 April 1976. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351 a.  Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351 2.  Group of 19 of the Group of 77, Paris, 9 June 1976 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352 a.  Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352 3.  Group of 19 of the Group of 77, Paris, 17 July 1976. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 a.  Statement by Mr Manuel Pérez-Guerrero . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 4.  Group of 19 of the Group of 77, Paris, 13 September 1976. . . . . . . . . . . . . . . . . . . . . . . . . 354 a.  Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354 5.  Group of 77, New York, 16 December 1976 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355 a.  Communiqué . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355 6.  Group of 19 of the Group of 77, Paris, 5 May 1977 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 a.  Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 7.  Group of 19 of the Group of 77, Paris, 31 May 1977. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358 a.  Statement by Mr Manuel Pérez-Guerrero . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358

CHAPTER IV:  SPECIAL MINISTERIAL CONFERENCES AND OTHER HIGH-LEVEL MEETINGS OF THE GROUP OF 77 . . . . . . . . . . . . . . . . . . . . . . 361 1.  First Ministerial Meeting of the Intergovernmental Group of Twenty-Four on International Monetary Affairs, Caracas, 6–7 April 1972 . . . . . . . . . . . . . . . 363 a.  Communiqué . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363 2.  Ministerial Meeting of the Group of 77, New York, 11–14 March 1980. . . . . . . . . . . . . . .365 a.  Communiqué . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365 3.  Ministerial Meeting of the Group of 77, New York, 21–22 August 1980. . . . . . . . . . . . . . 374 a.  Communiqué . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 374 4.  Ministerial Meeting of the Negotiating Committee on the Establishment of a Global System of Trade Preferences among Developing Countries, Belgrade, 11–13 April 1988 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377 a.  Agreement on the Global System of Trade Preferences among Developing Countries (GSTP). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377 5.  Meeting of the Ministers for Foreign Affairs of the Member States of the Group of 77 on the occasion of the Twenty-fifth anniversary of the establishment of the Group of 77, Caracas, Venezuela, 21–23 June 1989. . . . . . . . . . . . 389 a.  The Caracas Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389

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6.  Meeting of the Ministers for Foreign Affairs of the Member States of the Group of 77 on the occasion of the Thirtieth anniversary of the establishment of the Group of 77, New York, 24 June 1994. . . . . . . . . . . . . . . . . . . . . . 400 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400 b.  Ministerial Statement on ‘An Agenda for Development’ . . . . . . . . . . . . . . . . . . . . . . 403 7.  Meeting of the Ministers for Foreign Affairs of the Member States of the Group of 77 on the occasion of the Fortieth anniversary of the establishment of the Group of 77, São Paulo, Brazil, 11–12 June 2004. . . . . . . . . . . . . . . . . . . 406 a.  Ministerial Declaration can be found in Chapter II, 10(a) of this Volume . . . . . . . . . 406 8.  Special Ministerial Meeting of the Group of 77 on the United Nations Reform, Putrajaya, Malaysia, 29 May 2006. . . . . . . . . . . . . . . . . . . . . . . . . . . 406 a.  Ministerial Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406 9.  Special Meeting of the High-level Panel of Eminent Personalities of the South on the occasion of the celebration of the Fiftieth anniversary of the establishment of the Group of 77, Algiers, Algeria, 30 May 2014.. . . . . . . . . . . . . . . . . 412 a.  Algiers’ appeal on a global partnership for development through renewed international cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412 10.  Ministerial Meeting of the Joint Coordination Committee (JCC) between the Group of 77 and the Non-Aligned Movement on the occasion of the celebration of the Fiftieth anniversary of the establishment of the Group of 77, Algiers, Algeria, 30 May 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414 a.  Joint Communiqué. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414 11.  Commemorative Summit on the occasion of the Fiftieth anniversary of the establishment of the Group of 77, Santa Cruz de la Sierra, Plurinational State of Bolivia, 14 and 15 June 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416 a.  Santa Cruz Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416

CHAPTER V:  HIGH-LEVEL CONFERENCES OF THE GROUP OF 77 ON SOUTH-SOUTH CO-OPERATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451 1.  Conference on Economic Co-operation among Developing Countries, Mexico City, 13–22 September 1976. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453 a.  Final Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453 2.  The Caracas Programme of Action on Economic Cooperation among Developing Countries adopted by the High-level Conference on Economic Cooperation among Developing Countries, Caracas, Venezuela, 13–19 May 1981. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465 a.  The Caracas Programme of Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465

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3.  The Cairo Declaration on Economic Cooperation among Developing Countries adopted by the High-level Meeting on Economic Cooperation among Developing Countries, Cairo, Egypt, 18–23 August 1986. . . . . . . . . . . . . . . . . . . . . . . 496 a.  The Cairo Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 496 4.  High-level Conference on South-South Cooperation, Marrakech, Morocco, 16–19 December 2003. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 496 a.  Marrakech Declaration on South-South Cooperation. . . . . . . . . . . . . . . . . . . . . . . . . 496 b.  The Marrakech Framework of Implementation of South-South Cooperation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500

CHAPTER VI:  ANNUAL MEETINGS OF MINISTERS FOR FOREIGN AFFAIRS OF THE MEMBER STATES OF THE GROUP OF 77. . . . . . . . . . . . . . . 505 1.  First Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 29 September 1977 . . . . . . . . . . . . . . . . . . . . . 507 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 507 2.  Second Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 29 September 1978 . . . . . . . . . . . . . . . . . . . . . 510 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 510 3.  Third Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 27–29 September 1979. . . . . . . . . . . . . . . . . . . 513 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513 4.  Fourth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 29–30 September 1980 . . . . . . . . . . . . . . . . . . 517 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517 5.  Fifth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 28–29 September 1981 . . . . . . . . . . . . . . . . . . 520 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520 6.  Sixth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 6–8 October 1982 . . . . . . . . . . . . . . . . . . . . . . 524 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524 7.  Seventh Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 6–7 and 10 October 1983. . . . . . . . . . . . . . . . . 533 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533 8.  Eighth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 26–28 September 1984 . . . . . . . . . . . . . . . . . . 542 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542

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9.  Ninth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 2–4 October 1985 . . . . . . . . . . . . . . . . . . . . . . 547 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 547 10.  Tenth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 29 September–1 October 1986 . . . . . . . . . . . . 557 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 557 11.  Eleventh Annual Meeting of Ministers for Foreign affairs of the Member States of the Group of 77, New York, 28–30 September and 1 October 1987. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 561 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 561 12.  Twelfth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 28–30 September 1988 . . . . . . . . . . . . . . . . . . 570 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570 13.  Thirteenth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 28 September 1989 . . . . . . . . . . . . . . . . . . . . . 576 a.  No Declaration issued. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 576 14.  Fourteenth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 3 October 1990 . . . . . . . . . . . . . . . . . . . 576 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 576 15.  Fifteenth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 30 September 1991 . . . . . . . . . . . . . . . . 583 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 583 16.  Sixteenth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 1 October 1992 . . . . . . . . . . . . . . . . . . . . . . . . 592 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 592 17.  Seventeenth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 5 October 1993 . . . . . . . . . . . . . . . . . . . 605 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 605 18.  Eighteenth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 30 September 1994 . . . . . . . . . . . . . . . . 618 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 618 19.  Nineteenth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 29 September 1995 . . . . . . . . . . . . . . . . 623 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 623

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20.  Twentieth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 27 September 1996 . . . . . . . . . . . . . . . . 633 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 633 21.  Twenty-first Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 26 September 1997 . . . . . . . . . . . . . . . . 646 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 646 22.  Twenty-second Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 25 September 1998 . . . . . . . . . . . . . . . . 660 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 660 23.  Twenty-third Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 24 September 1999 . . . . . . . . . . . . . . . . 675 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 675 24.  Twenty-fourth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 15 September 2000. . . . . . . . . . . . . . . . 694 a.  Ministerial Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 694 25.  Twenty-fifth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 16 November 2001. . . . . . . . . . . . . . . . . 697 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 697 26.  Twenty-sixth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 19 September 2002 . . . . . . . . . . . . . . . . 706 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 706 27.  Twenty-seventh Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 25 September 2003. . . . . . . . . . . . . . . . 715 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715 28.  Twenty-eighth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 30 September 2004. . . . . . . . . . . . . . . . 722 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 722 29.  Twenty-ninth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 22 September 2005. . . . . . . . . . . . . . . . 732 a.  Ministerial Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732 30.  Thirtieth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 22 September 2006. . . . . . . . . . . . . . . . 734 a.  Ministerial Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 734

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31.  Thirty-first Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 27 September 2007. . . . . . . . . . . . . . . . 738 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 738 32.  Thirty-second Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 26 September 2008. . . . . . . . . . . . . . . . 745 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745 33. Thirty-third Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 25 September 2009. . . . . . . . . . . . . . . . 756 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 756 34.  Thirty-fourth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 28 September 2010 . . . . . . . . . . . . . . . . 768 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 768 35.  Thirty-fifth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 23 September 2011 . . . . . . . . . . . . . . . . 780 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 780 36.  Thirty-sixth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 28 September 2012 . . . . . . . . . . . . . . . . 799 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799 37.  Thirty-seventh Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 26 September 2013 . . . . . . . . . . . . . . . . 818 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 818 38.  Thirty-eighth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 26 September 2014 . . . . . . . . . . . . . . . . 840 a.  Ministerial Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 840

CHAPTER VII:  SESSIONS OF THE INTERGOVERNMENTAL FOLLOW-UP AND COORDINATION COMMITTEE ON SOUTH-SOUTH COOPERATION (IFCC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 853 1.  First Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-I), Manila, Philippines, 23–28 August 1982. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 855 a.  Final Report ‘Manila Follow-up Action for ECDC’ . . . . . . . . . . . . . . . . . . . . . . . . . . 855 2.  Second Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-II), Tunis, 5–10 September 1983. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 871 a.  Final Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 871

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3.  Third Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-III), Cartagena de Indias, Colombia, 3–8 September 1984. . . . . . . . . . . . . . . . . . . . . . 891 a.  Final Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 891 4.  Fourth Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-IV), Jakarta, Indonesia, 19–23 August 1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 908 a.  Final Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 908 5.  The Cairo Declaration on Economic Cooperation among Developing Countries adopted by the High-level Meeting on Economic Cooperation among Developing Countries, Cairo, Egypt, 18–23 August 1986. . . . . . . . . . . . . . . . . . . . . . . 920 a.  The Cairo Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 920 6.  Sixth Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-VI), Havana, Cuba, 7–12 September 1987. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 932 a.  Final Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 932 7.  Seventh Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-VII), Kuala Lumpur, Malaysia, 31 July–5 August 1989. . . . . . . . . . . . . . . . . . . . . . . . . 945 a.  Final Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 945 8.  Eighth Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-VIII), Panama City, Panama, 30 August–3 September 1993. . . . . . . . . . . . . . . . . . . . . 960 a.  Final Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 960 9.  Ninth Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-IX), Manila, Philippines, 9–12 February 1996. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 976 a.  Final Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 976 10.  Tenth Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-X), Tehran, Islamic Republic of Iran, 18–23 August 2001. . . . . . . . . . . . . . . . . . . . . . . 988 a.  Recommendations adopted by the Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 988 11.  Eleventh Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-XI), Havana, Cuba, 21–23 March 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1000 a.  Final Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1000

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12.  Twelfth Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-XII), Yamoussoukro, Côte d’Ivoire, 10–13 June 2008. . . . . . . . . . . . . . . . .1007 a.  Yamoussoukro Consensus on South-South Cooperation. . . . . . . . . . . . . . . . . . . . . . 1007

CHAPTER VIII:  GROUP OF 77 SOUTH SUMMITS . . . . . . . . . . . . . . . . . . . 1009 1.  Group of 77 First South Summit, Havana, Cuba, 10–14 April 2000 . . . . . . . . . . . . . . . . 1011 a.  The Havana Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1011 b.  The Havana Programme of Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1021 2.  Group of 77 Second South Summit, Doha, Qatar, 12–16 June 2005 . . . . . . . . . . . . . . . . 1039 a.  The Doha Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1039 b.  The Doha Plan of Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1049

ANNEX I:  ACRONYMS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1063 ANNEX II:  LIST OF THE ORIGINAL SIGNATORIES OF THE JOINT DECLARATION OF SEVENTY-SEVEN DEVELOPING COUNTRIES. . . . . . . . . 1073 ANNEX III:  EVOLUTION OF THE MEMBERSHIP OF THE GROUP OF 77 SINCE 1964. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1077

Foreword

When it was established on June 15, 1964, the signing nations of the well-known ‘Joint Declaration of Seventy-Seven Countries’ formed the largest intergovernmental organization of developing countries in the United Nations to articulate and promote their collective interests and common development agenda. Since the First Ministerial meeting of the Group of 77 held in Algeria in October 1967, and the adoption of the Charter of Algiers, the G-77 laid down the institutional mechanisms and structures that have contributed to shaping the international development agenda and changing the landscape of the global South for the past five decades. Over the years, the Group has gained an increasing role in the determination and conduct of international relations through global negotiations on major North-South and development issues. The Group has a presence worldwide at United Nations centers in New York, Geneva, Nairobi, Paris, Rome, Vienna, and Washington D.C., and is actively involved in ongoing negotiations on a wide range of global issues including climate change, poverty eradication, migration, trade, and the law of the sea. Today, the Group of 77 remains the only viable and operational mechanism in multilateral economic diplomacy within the United Nations System. The growing membership is proof of its enduring strength. From 77 founding member states in 1964 to 134 and counting in 2014, it is the largest intergovernmental organization of the global South dealing with the Development Agenda. The Group was created with the objective to collectively boost the role and influence of developing countries on the global stage when it became clear that political independence, to be meaningful, required changes in the economic relations between North and South. Thus, political independence needed to be accompanied by economic diplomacy with the ultimate objective of the reform of the international economic order. Today, the Group of 77 represents the greatest coalition of humanity and remains a vital negotiating instrument in economic multilateral diplomacy, and for ensuring international peace and justice through international cooperation for development within the framework of the United Nations. This has been the thrust of the joint expression of South-South solidarity since the Group’s creation, and its collective voice has spread to every institution and international organization representing the hopes and aspirations of the majority of humanity. The integral role played by the Group of 77 in economic diplomacy and projecting the development interests of the global South is a testimony to its continued relevance in the global development dialogue. The Group has, through its compact Executive Secretariat’s limited resources, managed to work successfully with its development partners to analyze issues and propose alternative solutions to development challenges.

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For fifty years the Group of 77 contributed to the formulation and adoption of numerous U.N.  resolutions, programmes, and plans of action, most of which address the core issues of development. Its role in generating global consensus on the issues of development has been widely acknowledged by world leaders, diplomats, parliamentarians, academia, researchers, media and civil society. It is a tribute to the historical validity of the conception, purposes, and endeavors of the Group, which have withstood the test of time. The essential rationale for the Group was, and remains, to strive for a wider participation of developing countries in global economic decision-making and for inserting a development dimension in international institutions and policies within the framework of the United Nations System. The Group presently consists of 134 countries, comprising over 80 per cent of the world’s population and approximately two-thirds of the United Nations membership. The Group is the second largest intergovernmental organization in the world after the United Nations and many countries, from emerging developing economies to Least Developed Countries and Small Island Developing States have chaired the Group, ranging from regions in Africa and Asia-Pacific to Latin America and the Caribbean. 2014 marks a milestone in the life of the Group with the celebration of the 50th year of its establishment, a period during which it has nearly doubled in membership and multiplied its South-South cooperation achievements while continuing to operate as a coalition of nations in promoting North-South dialogue for development. It is remarkable that with such a diverse membership and without a formal constitution it has managed to endure the world’s political and economic turbulences for 50 years and remain true to its original mission in promoting the United Nations development agenda. The Group of 77 has devoted five decades working to achieve development. It adheres to the principle that nations, big and small, deserve an equal voice in world affairs. Today the Group remains linked by common geography and shared history of struggle for liberation, freedom and South-South solidarity. In its 50 years, the Group of 77 has solidified the global South as a coalition of nations, aspiring for a global partnership for peace and development. Today, the Group of 77 is recognized for its work to promote international cooperation for development towards a prosperous and peaceful world. The commitment and dedication of the Group in selflessly shaping world affairs has benefited billions of lives worldwide, and such recognition of its significant contribution during the Group’s 50th Anniversary is most appropriate. Mourad Ahmia, September 2014

Preface

This special anniversary edition of the third series is launched to coincide with the 50th anniversary of the establishment of the Group of 77 with the objective of further carrying forward the documentary process and its institutional memory. The present publication is the result of a compilation effort that provides a chronological record of the main documents adopted by the Group of 77 since its creation in 1964, with a special focus on all major events of the Group of 77 that took place during the period 1964-2014. This special volume comprises of eight chapters: Chapter I provides an overview of the constitutional documents of the Group of 77 since 1964. Chapter II includes the outcomes adopted by various ministerial meetings of the Group of 77 in preparation for the United Nations Conference on Trade and Development (UNCTAD) sessions since 1967. Chapter III presents the statements made by the Group of 19 of the Group of 77 related to the Conference on International Economic Cooperation held in Paris, France, in 1976. Chapter IV includes the Declarations adopted by Special Ministerial Conferences and other High-level Meetings of the Group of 77 on various occasions including commemorative anniversaries of the Group of 77 since 1972. Chapter V presents the outcomes adopted by the G-77 High-level Conferences on Economic Cooperation among Developing Countries that are Members of the Group of 77 since 1976. Chapter VI includes the Ministerial Declarations adopted by the Annual Meetings of the Ministers for Foreign Affairs of the Group of 77 since 1977. Chapter VII presents the outcomes adopted by various sessions of the Intergovernmental Follow-up and Coordination Committee (IFCC) related to South-South cooperation since 1982. Chapter VIII presents the Declarations and Plans of Action adopted by the Group of 77 South Summits held respectively in Havana, Cuba (2000) and Doha, Qatar (2005). Three annexes are included in the Volume: Annex I pertains to Acronyms while Annex II lists the 77 original countries signatories of the Joint Declaration and Annex III details the evolution of membership of the Group of 77 since 1964. This volume is dedicated to the memory of my late beloved mother Houria Sekki (1936–2014). Indeed, her prayers and wishes always served as great sources of inspiration towards successfully accomplishing my undertakings and I will remember her with profound love, respect and gratitude. May Almighty God rest her departed soul in eternal peace.

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In compiling this documentary record, I am most indebted to Karl P. Sauvant, for his encouragement and guidance. Words of appreciation are also due to the staff members of the Executive Secretariat of the Group of 77 at the United Headquarters in New York for their continued support and valuable contribution to the publication of this special anniversary edition. As in previous volumes in this series, typographical errors and minor editorial inconsistencies in the original texts were corrected. However, apart from these technical changes, the documents are presented in their original form. Finally, the views expressed in this series do not necessarily reflect the views of the United Nations. Mourad Ahmia, September 2014

INTRODUCTION THE EARLY DAYS OF THE GROUP OF 77

Introduction

3

A. The Origin In December 1961, the General Assembly of the United Nations designated the 1960s as the ‘United Nations Development Decade’.1 At the same time, it also adopted a resolution on ‘International Trade as the Primary Instrument for Economic Development’,2 in which the Secretary-General of the United Nations was asked to consult governments on the advisability of holding an international conference on international trade problems. These resolutions led to the United Nations Conference on Trade and Development (UNCTAD). Their underlying developmental model—trade as the motor of development—shaped the outlook and approach of the new institution. After obtaining favourable reactions from most governments and strong support from a developing countries’ ‘Conference on the Problems of Economic Development’ held in Cairo in July 1962,3 the United Nations General Assembly decided to convene the first session of UNCTAD.4 A Preparatory Committee was established to consider the agenda of the conference and to prepare the necessary documentation. During the deliberations of the Preparatory Committee—in identifying the relevant issues and problems, endeavouring to list proposals for action, and indicating lines along which solutions might be sought—the divergence of the interests of the developing countries from those of the developed countries began to emerge sharply. The distinctive interests of the Third World manifested themselves at the closing of the second session of the Preparatory Committee (21 May to 29 June 1963), when the representatives of the developing countries submitted a ‘Joint Statement’ to the Committee in which they summarized the views, needs and aspirations of the Third World with regard to the impending UNCTAD session.5 Later that year, this Statement was submitted to the General Assembly, as a ‘Joint Declaration’, on behalf of 75 developing countries that were members of the United Nations at that time.6 This Declaration was the prelude to the establishment of the Group of 77. UNCTAD I met in Geneva between the 23rd of March and the 16th of June 1964. It was the first major North-South conference on development questions. During the negotiations at that conference, economic interests clearly crystalised along geo-political-group lines, and the developing countries emerged as a group that was beginning to find its own. The ‘Joint Declaration of the Seventy-Seven’, adopted on 15 June 1964, referred to UNCTAD I as ‘an event of historic significance’; it continued: ‘The developing countries regard their own unity, the unity of the seventy-five, as the outstanding feature of this Conference. This unity has sprung out of the fact that, facing the basic problems of development, they have a common interest in a new policy for international trade and development. They believe that it is this unity that has given clarity and coherence to the discussions of this Conference. Their solidarity has been tested in the course of the Conference and they have emerged from it with even greater unity and strength. The developing countries have a strong conviction that there is a vital need to maintain, and further strengthen, this unity in the years ahead. It is an indispensable instrument for securing the adoption of new attitudes and new approaches in the international economic field. This unity is also an instrument for enlarging the area of co-operative endeavour in the international field and for securing mutually beneficent relationships with the rest of the world. Finally, it is a necessary means for co-operation amongst the developing ­countries themselves. The seventy-five developing countries, on the occasion of this declaration, pledge themselves to maintain, foster and strengthen this unity in the future. Towards this end they

4

THE COLLECTED DOCUMENTS OF THE GROUP OF 77

shall adopt all possible means to increase the contacts and consultations amongst themselves so as to determine common objectives and formulate joint programmes of action in international economic co-operation. They consider that measures for consolidating the unity achieved by the seventy-five countries during the Conference and the specific arrangements for contacts and consultations should be studied by government representatives during the nineteenth session of the United Nations General Assembly.’7 Although the recommendations adopted by UNCTAD I were to a large extent inspired by the conceptual work undertaken in the preceding decade by the Economic Commission for Latin America -­whose Executive Secretary, Raul Prebisch, became the Secretary-General of UNCTAD I and stayed in that post as one of the principal promoters of Third World unity until 19698 - the conference was nonetheless a new departure: for the first time, the Third World as a whole had participated in the elaboration of a comprehensive set of measures.9 Accordingly, ‘new’ was the theme of the ‘Joint Declaration of the Seventy-Seven’: UNCTAD I was recognized as a significant step towards ‘creating a new and just world economic order’; the basic premises of the ‘new order’ were seen to involve ‘a new international division of labour’ and ‘a new framework of international trade’; and the adoption of ‘a new and dynamic international policy for trade and development’ was expected to facilitate the formulation of ‘new policies by the Governments of both developed and developing countries in the context of a new awareness of the needs of developing countries’. Finally, a ‘new machinery’ was considered necessary to serve as an institutional focal point for the continuation of the work initiated by the conference. This machinery was established later that year, when the General Assembly decided to institutionalize UNCTAD as an organ of the General Assembly.10 UNCTAD became the main forum for global development discussions, and—guided by the expectations voiced in 1964—it became the focal point of the activities of the Group of 77, which, by April 2014, counted 133 members11 (United Nations membership totaled 193.) During that period, the Group of 77 became an integral part of UNCTAD, was one of the most important agents for the socialization of the developing countries in matters relating to international political economy, and established itself firmly in all major relevant parts of the United Nations system as the Third World’s principal organ for the articulation and aggregation of its collective economic interest and for its representation in the negotiations with the developed countries.12

Introduction

5

B.  Purpose and Objectives No one has formulated the political point of departure of the Third World more succinctly than Mwalimu Julius K. Nyerere when he said in his address to the Fourth Ministerial Meeting of the Group of 77 in Arusha, in February 1979: What we have in common is that we are all, in relation to the developed world, dependent—not interdependent—nations. Each of our economies has developed as a by-product and a subsidiary of development in the industrialized North, and it is externally oriented. We are not the prime movers of our own destiny. We are ashamed to admit it, but economically we are dependencies—semi-colonies at best—not sovereign States.13 The objective is, therefore, quite naturally, ‘to complete the liberation of the Third World countries from external domination’.14 Until the early 1970s, the Group of 77 thought to achieve this objective through improvements of the system, the- high-points being UNCTAD II (New Delhi, 1968) and UNCTAD III (Santiago, 1972) and the preparatory First (Algiers, 1967) and Second (Lima, 1971) Ministerial Meetings of the Group of 77, as well as UNIDO I (Vienna, 1971) and the adoption of the international development strategy for the Second United Nations Development Decade (1970). A  number of changes were in fact made (witness, for instance, the Generalized System of Preferences), but many other negotiations (for instance in the commodity sector) hardly had made any progress, and no drastic improvements took place. On the contrary, the gap between North and South widened, especially for the least developed among the developing countries. The limitations of this approach naturally took time to become apparent. In addition, until the end of the 1960s, neither developed nor developing countries had fully realized the importance of economic development as a necessary complement to political independence. The development issue was regarded as ‘low politics’, left to the technical ministries of planning, economics, commerce, finance, and development. Attempts to politicize the issue therefore failed. The most prominent among these was the ‘Charter of Algiers’, adopted by the First Ministerial Meeting of the Group of 77 in October 1967 in preparation of UNCTAD II. The intention of this first comprehensive declaration and programme of action of the Group of 77 was to give a new impetus to the North­-South negotiations. For this purpose, the Ministerial Meeting even decided to send high-level ‘goodwill missions’ to a number of developed countries (both those with centrally-planned and those with market economies) to inform key governments about the conclusions of the meeting and to persuade them of the need for accelerated progress.15 At the beginning of the 1970s, however, several· developments converged to produce a change in attitudes: the political decolonization process had largely run its course and the political independence of most of the new states had been consolidated; the political-military pressures of the Cold War were subsiding somewhat; the regional and international development efforts had shown disappointing results; and doubts had begun to be voiced about the prevailing development model.16 As a result, more attention could be given to other important matters. For the developing countries, this meant that questions of economic development began to receive greater attention, and these countries became increasingly aware that the institutions of the international economic system had been established by the developed market economies to serve primarily their own purposes.17 Since, in the process, it was felt that the interests, needs and special conditions of the developing countries had largely been ignored, they remained in poverty and dependency. Hence, fundamental changes in the international economic system were required to establish a framework conducive to development and to create the economic basis of independence. In fact, the system itself had come under serious strain with the breakdown of the Bretton

6

THE COLLECTED DOCUMENTS OF THE GROUP OF 77

Woods system, the food and oil crises, payments imbalances, a general surge of inflation, world recessions, increasing protectionism, rising environmental concerns, and the spectre of the scarcity of raw materials. When the economic tranquility of the 1960s gave way to the turbulence of the 1970s, international economic matters could no longer be ignored. The non-aligned movement offered the framework for this recognition to grow. Within a few years, development questions became ‘high politics’: they were elevated to the level of heads of state or government and were made a priority item on their agenda. Between 1970 and 1973, the non-aligned movement evolved into a pressure group for the re-organization of the international economic system.18 Since the Non-Aligned Countries considered themselves to be playing a catalytic role within the Group of 77,19 the politicization of the development issue had an important effect on the manner in which this issue was perceived, presented and pursued within North-South negotiations. Thus, the political clout and pressure of the Non-Aligned Countries, coupled with OPEC’s forceful actions, led to the Sixth Special Session of the United Nations General Assembly which adopted, on 1 May 1974, the ‘Declaration and Programme of Action on the Establishment of a New International Economic Order’.20 Hence, almost exactly one decade after the first session of UNCTAD, and after years of debates about improving the international economic system, the call for a new beginning was again taken up—this time, however, with a view towards a structural re-organization of the world economy. The establishment of a New International Economic Order (NIEO) became the main objective of the Third World. The concrete changes that the Group of 77 proposed in order to achieve this objective were spelled out in detail in the ‘Arusha Programme for Collective Self-Reliance and Framework for Negotiations,’ adopted by the Fourth Ministerial Meeting of the Group of 77 in Arusha, in February 1979. While the Non-Aligned Countries played a key role in making the development issue a priority item on the international agenda, the Group of 77 became the principal organ of the Third World through which the concrete actions required for changing the international conditions for promoting development became to be negotiated within the framework of the United Nations system. This objective dominated UNCTAD IV (Nairobi, 1976)  and UNCTAD V (Manila, 1979) and the preparatory Third (Manila, 1976) and Fourth (Arusha, 1979) Ministerial Meetings of the Group of 77; UNIDO II (Lima, 1975) and UNIDO III (New Delhi, 1980) and the preparatory meetings of the Group of 77 in Vienna (1974), Algiers (1975) and Havana (1979); the regional preparatory meetings convened for each of these UNCTAD and UNIDO conferences by the African, Arab (for UNIDO only), Asian, and Latin American members of the Group of 77; the 1976 Mexico City Conference on Economic Co-operation among Developing Countries; the 1975-1977 Paris Conference on International Economic Co-operation, in which the Group of 77 acted through the Group of 19; and a series of ministerial-level meetings of the Group of 77 (including meetings of ministers for foreign affairs) in preparation for sessions of the United Nations General Assembly. It also entered into the discussions in the IMF and the World Bank, where the Group of 77 had been acting through the Group of 24 since 1972. There continued to be a considerable gap between the declaration of a new order and the action programmes formulated to establish it in the major areas of North-South interactions: commodities and trade, money and finance, research and development and technology, industrialization and transnational enterprises, and food and agriculture. In fact, an analysis of the contents of the NIEO programme showed that, although a number of additional problems had been identified, many of the concrete proposals under discussion remained the same since 1964—even if the emphasis on some of them (e.g., proposals concerning technology) had grown. This was an indication of the slow progress made in the past. The new proposals were aimed at creating new economic structures. And, to a greater extent than in the past, it became recognized that the various dimensions of North-South interactions are interrelated and hence have to be approached in a comprehensive and integrated manner. Over time, the gap between objectives and concrete

Introduction

7

proposals could have been closed through the elaboration of new policies or possibly even through changes in the underlying development model. At the time of the beginning of the Group of 77, however, the model continued to assume that development is best served by a close association of the developing with the developed countries. A conceptual change, though, was in the offing with the concept of individual and collective self-reliance. In contradistinction to the prevailing associative development strategy with its orientation towards the world market and its heavy reliance on linkages with the developed countries for stimulating industrialization, the self-reliance concept sought greater selectivity in traditional linkages, accompanied by a greater mobilization of domestic and Third World resources and a greater reliance on domestic and Third World markets. It is these markets, rather than those in the developed world, which were expected to provide the principal stimulus for economic development. The concept of self-reliance was introduced into the international development discussion by the Non-Aligned Countries in 1970, which were also responsible for most of the practical follow-up that was undertaken in the subsequent years.21 Although self-reliance can be strengthened by international measures,22 it requires primarily a strengthening of linkages among developing countries. For this reason, the Group of 77—which, as pointed out above, concentrates almost exclusively on North-South negotiations within the system of the United Nations—had been slow in incorporating self­reliance into its own programme. The first effort to do so was made at the 1976 Third Ministerial Meeting of the Group of 77, during which a resolution on economic co-operation among developing countries was adopted.23 Through this resolution, which linked the work of the Group of 77 with that of the Non-Aligned Countries (whose pioneering work in this area was recognized in the resolution), it was decided to convene a meeting in Mexico City during the month of September 1976 to prepare a detailed programme on economic co-operation. Originally, it was planned to hold this meeting at the level of an intergovernmental working group; but at the subsequent UNCTAD IV session it was decided to hold it at the highest possible level.24 Hence, the Conference on Economic Co-operation among Developing Countries was convened in Mexico City from the 13th to the 22nd of September 1976, until the early 1980s the only major conference of the Group of 77 that was not closely and directly related to an important impending activity within the United Nations system. The full integration of this approach into the Group’s conceptual mainstream came, however, only during the 1979 Arusha Fourth Ministerial Meeting in preparation of UNCTAD V, an event signaled by the very title of the final declaration of that meeting, the ‘Arusha Programme for Collective Self-Reliance and Framework for Negotiations’. As this title indicates, the declaration consisted of two parts: a programme for self-reliance (even if this was formulated only in terms of economic co-operation among developing countries) and a programme for North-South negotiations. Thus, a shift in the United Nations­orientation of the Group seemed to be taking place, and the Group of 77 (together with, or in addition to, the Non-Aligned Countries) was poised to make greater efforts towards stronger South-South co-operation. Accordingly, the Arusha Ministerial Meeting strongly endorsed the recommendations of the Mexico City Conference regarding an institutional follow-up for economic co­operation among developing countries. As a consequence, a (regionally prepared) first meeting of Governmental Experts of Developing Countries on Economic Co-operation among Developing Countries was convened for March-April 1980. This inter-regional gathering, in turn, was fully supported by a March 1980 Ministerial Meeting of the Group of 77 in New  York, during which economic co-operation among developing countries was a special item on the agenda and which decided to set up an open-ended ad hoc group ‘with the task of elaborating appropriate action-oriented recommendations for the early and effective implementation of the objectives of economic ­co­-operation among developing countries’.25 This task was begun by the “Ad-hoc Intergovernmental Group of the Group of 77 on Economic Co-operation among Developing Countries in Continuation

8

THE COLLECTED DOCUMENTS OF THE GROUP OF 77

of the Ministerial Meeting of the Group of 77 held in New York in March 1980 in a session in Vienna in June 1980. Its conclusions and recommendations were considered a useful basis for further discussions by the 1980 Meeting of Ministers for Foreign Affairs of the Group of 77. Deliberating shortly after the 1980 Eleventh Special Session of the General Assembly, the failure of that Session led the Ministers to stress that economic co-operation among developing countries is ‘an indispensable element both of the accelerated development of developing countries and of strengthening their negotiating power in their relations with the rest of the world’.26 The Ministers decided, therefore, to convene a high-level conference on economic co­operation among developing countries for 1981, to expedite the implementation of various programmes and ­decisions relating to this subject matter. The effort towards greater South-South co-operation was encouraged by the slow pace of progress in North-South negotiations and the frustrations created thereby, as well as the recognition of the limits of the prevailing associative development model. It was also facilitated by the bi-dimensional nature—recognized explicitly in the statement quoted in the preceding paragraph—of the self-reliance approach. One dimension, as described above, was seen as involving to bring about changes in the patterns of interaction between North and South that would allow for a more equitable sharing of the benefits of, and control over, international ­economic activities by developed and developing countries. Besides being a part of the necessary structural change, self­reliance was also seen as an instrument for achieving it:  self-reliance increases the individual and collective bargaining strength of the developing countries and, especially where it allows joint action, creates the countervailing power that is needed to negotiate the desired changes in the international system. In this respect, self-reliance meant strengthening the joint action capacity of the Third World. In the end, however, developing countries returned to the associative development model. While economic co-operation among developing countries remained an important goal, the objective of self-reliance gave way in the following years to an export-oriented development strategy, partly driven by the spreading 1982 Mexican debt crisis and the quickening pace of globalization. But the awareness of the weakness of each individual developing country in isolation was the genesis of the Group of 77 and remained its raison d’être. In this sense, then, the Group of 77 ‘is a kind of trade union of the poor’, which is kept together by ‘a unity of nationalisms’ and ‘a unity of opposition’—not by ‘the ideals of human brotherhood, or human equality, or love for each other’ or, for that matter, a common ideology.27 The unity of the Group of 77 is based on a shared historical experience, a shared continuing economic dependence, and a shared set of needs and aspirations. Still, since the Group is by no means homogeneous, group cohesiveness is not an easy matter to maintain. The immediate interests and specific negotiating priorities of many of its many members—the great number in itself makes it difficult to achieve consensus—are different from those of the others. The individual countries differ vastly from one another with respect to their cultural, ideological, political, and economic systems. No strong unifying institutional force existed: the Group of 77 had no long-term leadership, regular staff, headquarters, secretariat or, for that matter, any other permanent institution. In fact, the office of the coordinator rotated on an annual basis in New York and Vienna and on a three-monthly basis in Geneva. And although countries like Algeria, Argentina, Brazil, Egypt, India, Indonesia, Jamaica, Mexico, Nigeria, Pakistan, the Philippines, Sri Lanka, Venezuela, and Yugoslavia often had played an important role on many issues, none of them dominated the Group. Very important also were—and are—great differences in the level of economic development, especially between the Latin American Group on the one hand and the African Group on the other. This cleavage was accentuated further by the exclusion of most Latin American countries from the preferential schemes of the Lome Convention. The individual weight of some countries could also complicate matters,

Introduction

9

especially when these countries were specially cultivated by developed countries and when occasions for separate bilateral deals arose. Similar complications could be created by the continuation of strong traditional links of some developing with some developed countries, e.g., of some Central American countries with the United States or some African countries with France. Some of the special interests of the members of the Group also led to the formation of informal sub-groups of, for example, the most-seriously-affected, the least developed, the newlyindustrialized, and, of course, the oil-producing countries.28 While the success of OPEC was welcomed by most developing countries, especially since it strengthened the bargaining power of the Third World as a whole, the balance-of-payments burden of the increased oil price introduced considerable strains into the Group of 77 (and, for that matter, into the non-aligned movement). But since there existed no alternative for the oil-importing developing countries, this experience, however painful, did not end the unity of the Group of 77.29 In the face of these factors, it is a formidable task indeed to maintain the cohesiveness of the Group. But the strength of the basic common interests, the capacity to maintain consensus through acceptable trade-offs among the developing countries themselves, the recognition that separate deals bring only marginal and temporary concessions, and the resistance of the developed countries to enter into a broad range of detailed negotiations succeeded in overriding the pressures towards disunity. The maintenance and strengthening of the unity of the Group of 77 was—and remains—therefore a precondition for achieving the desired changes in the international economic system. To return to Nyerere’s analogy and his evaluation of OPEC’s ‘historic action’ in 1973: But since then OPEC has learned, and we have learned once again, that however powerful it is, a single trade union which only covers one section of a total enterprise cannot change the fundamental relationship between employers and employees. … For the reality is that the unity of even the most powerful of the subgroups within the Third World is not ­sufficient to allow its members to become full actors, rather than reactors, in the world economic system. The unity of the entire Third World is necessary for the achievement of the fundamental change in the present world economic arrangements.30 These words—spoken in 1979—encapsulate the challenge the Group of 77 faced throughout its existence, and continues to face today. Karl P. Sauvant* 2 April 2014

Notes 1 . General Assembly resolution 1710 (XVI) of 19 December 1961. 2. General Assembly resolution 1707 (XVI) of 19 December 1961. 3. For the text of the ‘Cairo Declaration of Developing Countries’, see Odette Jankowitsch and Karl P. Sauvant, eds., The Third World without Superpowers: The Collected Documents of the Non-Aligned Countries (Dobbs Ferry, N.Y.: Oceana (now: Oxford University Press), 1978), vol. I, pp. 72–75, hereinafter cited as Jankowitsch and Sauvant. This meeting was the first attempt of the developing countries to co-ordinate their international development policies in the United Nations.

*

Karl P.  Sauvant, PhD ([email protected]), is Resident Senior Fellow at the Vale Columbia Center on Sustainable International Investment (VCC), a joint center of Columbia Law School and the Earth Institute at Columbia University, and the Founding Executive Director of that Center. He retired from UNCTAD in 2005 as the Director of UNCTAD’s Investment Division. This text draws on Karl P.  Sauvant, The Group of 77:  Evolution, Structure, Organization (New  York:  OCEANA (now: Oxford University Press), 1982).

10

THE COLLECTED DOCUMENTS OF THE GROUP OF 77

4. See Economic and Social Council resolution 917 (XXXIV) of 3 August 1962 and General Assembly resolution 1785 (XVII) of 8 December 1962. 5. Of the 32 members of the Preparatory Committee, 19 were developing countries (including Yugoslavia which, at that time, played a key role in the Group of 77). Seventeen of the nineteen supported the ‘Joint Statement’. The other two, El Salvador and Uruguay, did so only when the ‘Joint Statement’ became the ‘Joint Declaration’. 6. Contained in Karl P.  Sauvant, ed., The Third World without Superpowers, 2nd Ser., The Collected Documents of the Group of 77 (Dobbs Ferry, N.Y.: Oceana (now: Oxford University Press), 1981), 20 vols., hereinafter cited as Sauvant. (The documents of the Group of 77 referred to below, as well as those of the United Nations meetings for which they were an input, are contained in these volumes; no specific reference is, therefore, made to them each time they are mentioned.) In 1963, 76 developing countries were members of the United Nations. Except for Cuba and the Ivory Coast, all developing countries, along with New Zealand, co-sponsored the Joint Declaration. Cuba was ostracized by the Latin American Group at that time and hence was not accepted as a co-sponsor of the resolution. (The principle of co-sponsorship requires that every sponsor of a given resolution has to accept any new co-sponsor.) 7. Ibid., document I.C.I.a. At the time of UNCTAD I, 77 developing countries were members of the United Nations. Of these, Côte d’Ivoire again did not join at that time and Cuba remained excluded until the 1971 Second Ministerial Meeting. Two others, the Republic of Korea and the Republic of Vietnam (which were not members of the United Nations but were the only other developing countries at UNCTAD I), did join after being accepted for membership by the Asian Group, so that 77 countries supported the ‘Joint Declaration of the Seventy-Seven’. Since, however, the original membership of the group was 75—see the 1963  ‘Joint Declaration’—the resolution continued to refer to seventy-five countries. It was only with UNCTAD I, that the Group acquired its present name. 8. Prebisch actively encouraged the developing countries during the preparations for UNCTAD I, the session itself, and the subsequent years to co-operate and to strengthen their unity in the framework of the Group of 77. His successor, Manuel Perez-Guerrero, continued this policy. 9. The resolution on the First United Nations Development Decade did not spell out a strategy. 10. Through resolution 1995 (XIX), contained in Sauvant. For the membership, principal functions, organization, etc., of UNCTAD, see that resolution. 11. Including the Palestine Liberation Organization, the only non-state member of the Group of 77. 12. The literature on the Group of 77 is scarce. One of the best analyses at that time was Branislav Gosovic, UNCTAD:  Conflict and Compromise. The Third World’s Quest for an Equitable World Economic Order through the United Nations (Leiden: Sijthoff, 1972). For another analysis of the Group of 77 and the non-aligned movement and their role in the main international economic conferences dealing with the New International Economic Order, see Robert A.  Mortimer, the Third World Coalition in International Politics (New York: Praeger, 1980). 13. Infra, p. 133. 14. Ibid., p. 134. 15. See, Co-ordinating Committee, ‘Ministerial Mission’ and First Ministerial Meeting of the Group of 77, ‘Charter of Algiers’, Part III, in Sauvant, documents II.B.3 and II.D.7, respectively. 16. For an elaboration, see Karl P. Sauvant, ‘The Origins of the NIEO Discussions’, in Karl P. Sauvant, ed., Changing Priorities on the International Agenda: the New International Economic Order (Elmsford, N.Y.: Pergamon, 1981). 17. Apart from the Latin American states, only the following developing countries took part in the Bretton Woods Conference: Egypt, Ethiopia, India, Iran, Iraq, Liberia, and the Philippines. 18. See Odette Jankowitsch and Karl P. Sauvant, ‘The Initiating Role of the Non­Aligned Countries’, in ibid. This observation should not be taken to slight the political purpose and function of the non-aligned movement; it is intended only to point out that the movement had also acquired an equally important economic function and that this change proved to be of crucial importance for making the development issue a priority item on the international agenda. 19. See, e.g., the ‘Final Communiqué’ adopted at the 1978 Havana meeting of the Co-ordinating Bureau of the Non-Aligned Countries at the Ministerial Level, reprinted in Jankowitsch and Sauvant, vol. V. 20. General Assembly resolutions 3201 (S-VI) and 3202 (S-VI). Together with the ‘Charter of Economic Rights and Duties of States’, adopted 12 December 1974 by the Twenty-Ninth Regular Session of the General Assembly as resolution 3281 (XXIX), and resolution 3362 (S-VII), entitled ‘Development and International Economic Co­operation’, adopted on 16 September 1975 by the Seventh Special Session of the General Assembly, these resolutions (which are contained in Sauvant) laid the foundations of the programme for a New International Economic Order.

Introduction

11

21. Especially in the framework of the ‘Action Programme for Economic Co-operation’, adopted by the 1972 Georgetown Third Conference of Ministers of Foreign Affairs of Non-Aligned Countries, as a consequence of which Coordinator Countries were designated for 18 fields of activity. Important also were a number of the follow-up activities to the Conference of Developing Countries on Raw Materials, which was held in Dakar from the 4th to the 8th of February 1975; although the Dakar Conference was convened by the Non-Aligned Countries, it was explicitly designed to include all developing countries. For the relevant documents, see Jankowitsch and Sauvant. 22. The establishment, within UNCTAD and in pursuance of a resolution adopted at UNCTAD IV, of a Committee on Economic Co-operation among Developing Countries in 1976 and the increased emphasis given since UNCTAD V to this approach were efforts in this direction. 23. See Sauvant, document IV.D.7. 24. See, Main Documents of the Group of 77 at UNCTAD IV, ‘Statement Regarding the Forthcoming Conference on Economic Co-operation among the Developing Countries’, ibid., document IV.E.l. 25. See, Ministerial Meeting of the Group of 77, ‘Communiqué’, ibid., document X.C.l.a. 26. Ministers for Foreign Affairs of the Group of 77, Fourth Meeting, ‘Declaration’, ibid., document X.B.4.a. 27. Nyerere, infra, pp. 123, 122. 28. Producers’ associations other than OPEC had not acquired a political significance of their own. 29. In other words, the oil-importing developing countries had nothing to gain from turning against OPEC since this would not have affected the price of oil. Maintaining solidarity, on the other hand, combined with some pressure, could have led to some concessions by the OPEC countries (be it in the form of aid, special price arrangements, or both), and it strengthened the bargaining power of the oil-importing developing countries in their negotiations with the North. 30. Nyerere, infra, p. I 33.

CHAPTER I THE GENESIS OF THE GROUP OF 77

THE GENESIS OF THE GROUP OF 77

15

1.  Eighteenth Session of the United Nations General Assembly, New York, 11 November 1963 a.  The Joint Declaration of the Seventy-five Developing Countries (Group of 75) made at the Eighteenth Session of the General Assembly Draft Proposal by the Group of 77* Afghanistan, Algeria, Argentina, Bolivia, Brazil, Burma, Burundi, Cambodia, Cameroon, Central African Republic, Ceylon, Chad, Chile, Colombia, Congo (Brazzaville), Congo (Leopoldville), Costa Rica, Cyprus, Dahomey, Dominican Republic, Ecuador, El Salvador, Ethiopia, Gabon, Ghana, Guatemala, Guinea, Haiti, Honduras, India, Indonesia, Iran, Iraq, Jamaica, Jordan, Kuwait, Laos, Lebanon, Liberia, Libya, Madagascar, Malaysia, Mali, Mauritania, Mexico, Morocco, Nepal, New Zealand, Nicaragua, Niger, Nigeria, Pakistan, Panama, Paraguay, Peru, Philippines, Rwanda, Saudi Arabia, Senegal, Sierra Leone, Somalia, Sudan, Syria, Tanganyika, Thailand, Togo, Trinidad and Tobago, Tunisia, Uganda, United Arab Republic, Upper Volta, Uruguay, Venezuela, Yemen, and Yugoslavia: draft resolution

United Nations Conference on Trade and Development The General Assembly, Recalling its resolution 1785 (XVII) of 8 December 1962, as well as Economic and Social Council resolutions 917 (XXXIV) of 3 August 1962, 944 (XXXV) of 18 April 1963, and 963 (XXXVI) of 18 July 1963, Having considered the report of the Economic and Social Council (Chapter III, Section II, of Document A/5503) pertaining to the United Nations Conference on Trade and Development, Believing that the joint statement by representatives of the developing countries, contained in paragraph 186 of the Report of the second session of the Preparatory Committee (document E/3799), summarizing the views, needs and aspirations of those countries with regard to the Conference, represents a well-considered basis for the deliberations of the Conference, 1.  Notes with appreciation the work already done by the Preparatory Committee at its first and second sessions (Report of the Economic and Social Council, Chapter III, Section II) and by the Secretary-General of the United Nations Conference on Trade and Development; 2.  Welcomes the joint declaration of the developing countries at the eighteenth session of the General Assembly with regard to the United Nations Conference on Trade and Development; which is annexed to the present resolution, and 3.  Invites the States which will participate in the Conference, in dealing with the various items on its Agenda, to give serious consideration to the Joint Declaration.

*

Draft Proposal by the Seventy-five Developing Countries (Group of 75)  issued as UN document A/C.2/L.729 of 18 October 1963.

16

THE COLLECTED DOCUMENTS OF THE GROUP OF 77

ANNEX Joint Declaration by Representatives of Developing Countries at the Eighteenth Session of the General Assembly of the United Nations: Afghanistan, Algeria, Argentina, Bolivia, Brazil, Burma, Burundi, Cambodia, Cameroon, Central African Republic, Ceylon, Chad, Chile, Colombia, Congo (Brazzaville), Congo (Leopoldville), Costa Rica, Cyprus, Dahomey, Dominican Republic, Ecuador, El Salvador, Ethiopia, Gabon, Ghana, Guatemala, Guinea, Haiti, Honduras, India, Indonesia, Iran, Iraq, Jamaica, Jordan, Kuwait, Laos, Lebanon, Liberia, Libya, Madagascar, Malaysia, Mali, Mauritania, Mexico, Morocco, Nepal, New Zealand, Nicaragua, Niger, Nigeria, Pakistan, Panama, Paraguay, Peru, Philippines, Rwanda, Saudi Arabia, Senegal, Sierra Leone, Somalia, Sudan, Syria, Tanganyika, Thailand, Togo, Trinidad and Tobago, Tunisia, Uganda, United Arab Republic, Upper Volta, Uruguay, Venezuela, Yemen, and Yugoslavia:

I 1. The developing countries consider that the United Nations Conference on Trade and Development should represent an outstanding event in international co-operation conducive to the development of their economies and the integrated growth of the world economy as a whole. They believe that the full attainment of even the modest targets of the United Nations Development Decade will depend on the concrete decisions taken at this Conference and their effective implementation. They are already making and are determined to continue making, great efforts for their economic and social advancement through full mobilization of domestic resources, agricultural development, industrialization, and diversification of their production and trade. But this task can be accomplished only if these domestic efforts are supplemented and assisted by adequate international action. The developing countries look to the United Nations Conference on Trade and Development to help them reach the stage of self-sustaining growth.

II 2.  International trade could become a more powerful instrument and vehicle of economic development not only through the expansion of the traditional exports of the developing countries, but also through the development of markets for their new products and the general increase of their share in world exports under improved terms of trade. For this purpose, a new international division of labour, with new patterns of production and trade, is necessary. Only in this way will the economic independence of the developing countries be strengthened and a truly interdependent and integrated world economy emerge. The development of production and the increase in productivity and purchasing power of developing countries will also contribute to the economic growth of the industrialized countries as well, and thus become a means to world-wide prosperity. 3.  The existing principles and patterns of world trade still favour mainly the advanced parts of the world. Instead of helping the developing countries to promote the development and diversification of their economies, the present tendencies in world trade are frustrating their efforts to attain more rapid growth. These trends must be reversed. The volume of trade of developing countries should be increased, its composition diversified, the prices of their exports stabilized at fair and remunerative levels, and the international transfers of capital made more favourable to them so as to enable developing countries to obtain through trade more of the means needed for their economic development.

17

THE GENESIS OF THE GROUP OF 77

4.  To achieve these objectives, a dynamic international trade policy is required. This policy should be based on the need for providing special assistance and protection for the less developed parts of the world economy. The removal of obstacles to the trade of the developing countries is important, but the accelerated development of the parts of the world which are lagging behind requires more than the unconditional application of the most-favoured-nation principle and the mere reduction of tariffs. More positive measures aimed at achieving a new international division of labour are essential to bring about the necessary increase in productivity and diversification of economic activity in the developing countries. The measures taken by developed countries to promote the development of the relatively backward areas within their national boundaries provide a guide for the purposeful and dynamic action which needs to be taken in the field of international economic co-operation.

III 5.  The fundamental trade problems of developing countries are well identified. What the world is lacking today is, therefore, not the awareness of the problem, but the readiness to act. Many constructive proposals were advanced during the Second Session of the Preparatory Committee. The representatives of developing countries making this declaration recommend to all Members of the United Nations that they give earnest consideration to these proposals and that they explore, before the beginning of the Conference, all practical means for their implementation, so as to make it possible to reach at the Conference basic agreement on a new international trade and development policy. This policy, in accordance with resolution 1785 (XVII) of the General Assembly, should lead to the adoption by the Conference of concrete measures to achieve, inter alia, the following: (a)  Creation of conditions for the expansion of trade between countries at a similar level of development, at different stages of development and having different systems of social and economic organization. (b)  Progressive reduction and early elimination of all barriers and restrictions impeding the exports of the developing countries, without reciprocal concessions on their part. (c)  Increasing the volume of exports of the developing countries in primary products, both raw and processed, to the industrialized countries, and stabilizing prices at fair and remunerative levels. (d)  Expansion of the markets for exports of manufactures and semi-manufactures from the developing countries. (e)  Provision of more adequate financial resources at favourable terms, so as to enable the developing countries to increase their imports of capital goods and industrial raw materials essential for their economic development; and better co-ordination of trade and aid policies. (f)  Improvement of the invisible trade of the developing countries, particularly by reducing their payments for freight and insurance and the burden of their debt charges. (g)  Improvement of institutional arrangements including, if necessary, the establishing of new machinery and methods to implement the decisions of the Conference.

IV 6.  The developing countries are looking to more stable and healthy international economic relations in which they can increasingly find from their own resources the means required for self-sustaining growth. The developing countries are confident that the United Nations Conference on Trade and

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THE COLLECTED DOCUMENTS OF THE GROUP OF 77

Development will not only be able to contribute to the acceleration of their economic development, but will also be an important instrument for promoting stability and security in the world. 7.  The developing countries expect that the Conference will offer an opportunity for the manifestation, in the field of trade and development, of the same political will that was responsible for the San Francisco Charter and the creation of the United Nations. They are confident that, in this spirit, the decisions of the Conference will bring about fuller international co-operation and that greater progress can be made towards the attainment of collective economic security. International trade will thus become a strong guarantee of world peace and the Conference will be a landmark in the fulfillment of the United Nations Charter.

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THE GENESIS OF THE GROUP OF 77

2.  First Session of the United Nations Conference on Trade and Development, Geneva, 15 June 1964* a.  The Joint Declaration of the Seventy-seven Developing Countries (Group of 77) made at the Conclusion of the United Nations Conference on Trade and Development Afghanistan, Algeria, Argentina, Bolivia, Brazil, Burma, Burundi, Cambodia, Cameroon, Central African Republic, Ceylon, Chad, Chile, Colombia, Congo (Brazzaville), Congo (Leopoldville), Costa Rica, Cyprus, Dahomey, Dominican Republic, Ecuador, El Salvador, Ethiopia, Gabon, Ghana, Guatemala, Guinea, Haiti, Honduras, India, Indonesia, Iran, Iraq, Jamaica, Jordan, Kenya, Kuwait, Laos, Lebanon, Liberia, Libya, Madagascar, Malaysia, Mali, Mauritania, Mexico, Morocco, Nepal, Nicaragua, Niger, Nigeria, Pakistan, Panama, Paraguay, Peru, Philippines, Republic of Korea, Republic of Viet-Nam, Rwanda, Saudi Arabia, Senegal, Sierra Leone, Somalia, Sudan, Syria, Thailand, Togo, Trinidad and Tobago, Tunisia, Uganda, United Arab Republic, United Republic of Tanganyika and Zanzibar, Upper Volta, Uruguay, Venezuela, Yemen, and Yugoslavia.

I 1.  The developing countries named above recognize the United Nations Conference on Trade and Development as a significant step towards creating a new and just world economic order. They regard this Conference as the fruition of sustained efforts which found expression in the Cairo Declaration, the Alta Gracia Charter, the Resolutions of Brasilia, Addis Ababa, Niamey, Manila, and Teheran and, above all, in the Joint Declaration of the seventy-five countries made at the eighteenth session of the General Assembly of the United Nations. These efforts helped to forge the unity of the seventy-five—the outstanding feature of the entire Conference and an event of historic significance.

II 2.  The basic premises of the new order were enumerated in these earlier declarations and in the report of the Secretary-General of the Conference. In brief, they involve a new international division of labour oriented towards the accelerated industrialization of developing countries. The efforts of developing countries to raise the living standards of their peoples, which are now being made under adverse external conditions, should be supplemented and strengthened by constructive international action. Such action should establish a new framework of international trade that is wholly consistent with the needs of accelerated development. 3.  The several themes of a new and dynamic international policy for trade and development, including the question of transit trade of land-locked countries, found concrete expression in specific programmes and proposals presented by the developing countries to this Conference as a united expression of objectives and measures in all major fields. The developing countries consider it an achievement that this Conference has provided a basis for the fullest discussion of these programmes and proposals by the entire international community. They are confident that the deliberations of this Conference will be of assistance in the formulation of new policies by the Governments of both developed and developing countries in the context of a new awareness of the needs of developing countries.

*

Proceedings of the United Nations Conference on Trade and Development, vol. I, Final Act and Report (United Nations publications Sales No.: 64.II.B.11).

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III 4.  The developing countries declare, however, that they consider the final recommendations of the Conference as only an initial step towards an international endorsement of a new trade policy for development. They do not consider that the progress that has been registered in each of the major fields of economic development has been adequate or commensurate with their essential requirements. There has not, for instance, been an adequate appreciation of the problem of the ‘trade gap’ of developing countries. Only the most limited approaches were made regarding trade in primary commodities, and of preferences for exports of manufactures. Similarly, only preliminary steps were possible relating to schemes for compensatory financing to meet long-term deterioration in the terms of trade. The developing countries have, nevertheless, accepted the results of this Conference in the hope that these results would lay the foundation for more substantial progress in the period ahead. They have also accepted these resolutions in recognition of the need for a co-operative effort in the international field. To this end they have chosen to arrive at the widest measure of agreements possible, rather than to register their aspirations by majority decisions.

IV 5.  The developing countries attach singular importance to the establishment of international machinery in the field of trade and development. It is vitally necessary that this new machinery should be an effective instrument for the discussion of issues, the formulation of policies, the review of results, and for taking such operational measures as are needed in the sphere of international economic relations. 6.  The developing countries recognize the value of the general agreement attained regarding the establishment of continuing machinery. They note that some important issues pertaining to such machinery have been held over the decision by the General Assembly. In this connexion, it is their view that there should be ample scope for reaching workable agreement on substantial issues. But, they categorically declare that no arrangements designed for this purpose should derogate from the ultimate right of the proposed Board and the Conference to adopt recommendations on any point of substance by a simple majority vote in the case of the Board and two-thirds majority in the case of the Conference. The developing countries attach cardinal importance to democratic procedures, which afford no position of privilege in the economic and financial, no less than in the political spheres. Furthermore, the developing countries would stress the need for continued evolution in the institutional field, leading not merely to the progressive strengthening of the machinery that is now contemplated, but also to the ultimate emergence of a ­comprehensive international trade organization.

V 7.  The developing countries regard their own unity, the unity of the seventy-five, as the outstanding feature of this Conference. This unity has sprung out of the fact that facing the basic problems of development they have a common interest in a new policy for international trade and development. They believe that it is this unity that has given clarity and coherence to the discussions of this Conference. Their solidarity has been tested in the course of the Conference and they have emerged from it with even greater unity and strength. 8.  The developing countries have a strong conviction that there is a vital need to maintain, and further strengthen, this unity in the years ahead. It is an indispensable instrument for securing the adoption of new attitudes and new approaches in the international economic field. This unity is also an instrument for enlarging the area of co-operative endeavour in the international field

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and for securing mutually beneficent relationships with the rest of the world. Finally, it is a necessary means for co-operation amongst the developing countries themselves. 9.  The seventy-five developing countries, on the occasion of this declaration, pledge themselves to maintain, foster, and strengthen this unity in the future. Towards this end they shall adopt all possible means to increase the contacts and consultations amongst themselves so as to determine common objectives and formulate joint programmes of action in international economic co-operation. They consider that measures for consolidating the unity achieved by the seventy-five countries during the Conference and the specific arrangements for contacts and consultations should be studied by government representatives during the nineteenth session of the United Nations General Assembly.

VI 10.  The United Nations Conference on Trade and Development marks the beginning of a new era in the evolution of international co-operation in the field of trade and development. Such co-operation must serve as a decisive instrument for ending the division of the world into areas of affluence and intolerable poverty. This task is the outstanding challenge of our times. The injustice and neglect of centuries need to be redressed. The developing countries are united in their resolve to continue to quest for such redress and look to the entire international community for understanding and support in this endeavour.

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3.  First Ministerial Meeting of the Group of 77, Algiers, 10–25 October 1967 a.  The Charter of Algiers Part One The representatives of developing countries, assembled in Algiers in October 1967 at the Ministerial Meeting of the Group of 77, united by common aspirations and the identity of their economic interests, and determined to pursue their joint efforts towards economic and social development, peace, and prosperity, Having reviewed the work of the international community for economic progress since the adoption of the Joint Declaration of the Seventy-Seven Developing Countries at the conclusion of the first session of the United Nations Conference on Trade and Development in 1964, Have decided to chart a common course of action as conceived in the African Declaration of Algiers, the Bangkok Declaration of Asian countries, and the Charter of Tequendama of Latin American countries, Deem it their duty to call the attention of the international community to the following facts:

I The lot of more than a billion people of the developing world continues to deteriorate as a result of the trends in international economic relations; The rate of economic growth of the developing world has slowed down and the disparity between it and the affluent world is widening; While the developed countries are adding annually approximately 60 dollars to the per capita income of their people, the average increase of per capita income in the developing world amounts to less than 2 dollars per annum; The share of the developing countries in total world exports declined from 27 per cent in 1963 to only 19.3 per cent in 1966. In the first half of the 1960s, total world exports grew at an average annual rate of 7.8 per cent and exports of developing countries, excluding oil exports, grew at an average rate of 4 per cent only. While the value of exports of manufactures from industrial countries increased between 1953/1954 and 1965/1966 by 65 billion dollars and from socialist countries by 10 billion dollars, the increase from developing countries amounted to only 3 billion dollars; The purchasing power of exports from developing countries has been steadily declining. In the mid-1960s, the developing countries have been able to buy, for a given volume of their traditional exports, one-tenth less imports than at the beginning of this period. The loss in purchasing power amounted annually to approximately 2.5 billion dollars, which represents nearly half of the flow of external public financial resources to developing countries; This has aggravated the problem of the increasing indebtedness of developing countries. The external public debt alone has increased from 10 billion dollars in 1955 to 40 billion in 1966. While the debt service payments averaged half a billion dollars annually in the mid-1950s, these have already increased to 4 billion dollars and may offset the entire transfer of resources before the end of this decade if present trends continue; they already equal the entire amount of grants and grant-like contributions; Although modern technology offers developing countries great possibilities to accelerate their economic development, its benefits are largely by-passing them due to its capital and skill incentive nature, and is drawing away from them such limited skills as are developed; The virtual stagnation in the production of food-stuffs in developing countries, in contrast with the rapid increase in population, has aggravated the chronic conditions of under-nourishment

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THE GENESIS OF THE GROUP OF 77

and malnutrition and, combined with the distortion of production and trading patterns by artificial means, threatens to give rise to a grave crisis.

II The concern over these economic and social trends and the joint efforts of the developing countries to correct them have progressively led the international community to embark on a series of initiatives culminating in the Final Act, adopted in 1964 by the first session of the United Nations Conference on Trade and Development; however, the promise held out by the Final Act has not been realized. In fact, in spite of the provisions of the Final Act of the first session: No new commodity agreement on primary products of interest to developing countries has been concluded; The standstill has not been observed by the developed countries, and they have increased the degree of protection in many of those agricultural products in which developing countries are more efficient producers; While the average prices for primary products exported from developing countries have decreased by 7 per cent since 1958, those for primary products exported from developed countries increased by 10 per cent in the same period; Heavy fiscal charges continue to be levied on products of export interest to developing countries; The proliferation and promotion of synthetic substitutes in developed countries has resulted in shrinking markets and falling prices for competing natural products produced by developing countries; Insufficient progress has been made by developed countries in dismantling import tariffs on tropical products without prejudice to the interests of certain developing countries; Little or no progress has been achieved in the relaxation of quota restrictions that are applied particularly to industrial products imported from developing countries; nor did the situation improve for some temperature zone products whose access to the developed countries is governed by restrictive measures and policies applied by the developed ­countries; The implicit discrimination in tariff policies towards developing countries has been further intensified as a result of the process of economic integration among some developed countries and also as a consequence of the Kennedy Round of negotiations; No progress has been made by developed socialist countries on the recommended transferability of credit balances held with them by developing countries; The wide disparity between domestic selling prices of goods imported by socialist countries from developing countries and the import prices of such goods creates unfavourable conditions for increases in consumption and import of such goods from developing ­countries; In spite of the unanimously agreed target of 1 per cent of national income of financial resources to be provided to developing countries, actual disbursements have levelled off in absolute terms and declined as a proportion of gross national product of developed countries. While in 1961 the flow of development financing to developing countries amounted to 0.87 per cent of gross national product of developed countries, it came down to 0.62 per cent in 1966; With a few notable exceptions, the terms and conditions of development finance are becoming more and more onerous; the proportion of grants is declining; interest rates are increasing; repayment periods are shortening; and development loans are becoming increasingly tied;

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Discriminatory practices and arrangements in the field of shipping and increasing freight rates have aggravated further the balance-of-payments position and hindered the effort to promote the exports of developing countries.

III The international community has an obligation to rectify these unfavourable trends and to create conditions under which all nations can enjoy economic and social well-being, and have the means to develop their respective resources to enable their peoples to lead a life free from want and fear. In a world of increasing interdependence, peace, progress, and freedom are common and indivisible. Consequently the development of developing countries will benefit the developed countries as well. Developing countries reiterate that the primary responsibility for their development rests on them. Developing countries are determined to contribute to one another’s development. However, a fuller mobilization and more effective utilization of domestic resources of developing countries is possible only with concomitant and effective international action. Traditional approaches, isolated measures, and limited concessions are not enough. The gravity of the problem calls for the urgent adoption of a global strategy for development requiring convergent measures on the part of both developed and developing countries. The establishment of UNCTAD and the dialogue which has taken place within it constitute a step towards a new and dynamic trade and development policy. What is needed now is to move from the stage of deliberation to the plane of practical action. Developing countries expect that the second session of the Conference will concentrate on a common endeavour for accelerated economic and social development. The agreement which has recently emerged on the basic issues to be negotiated reflects the general feeling in this respect. To this end, the representatives of developing countries at the Ministerial Meeting of the Group of 77 have considered carefully the present state of affairs and suggest the following programme of action as the most urgent and immediate step to be taken by the second session of the Conference.

Part Two Programme of Action A.  Commodity Problems and Policies 1.   Commodity Policy (a)  Commodity arrangements (i)  Commodity problems should, where appropriate, be dealt with by international commodity arrangements negotiated on a commodity-by-commodity basis; (ii)  Producing developing countries should consult and cooperate among themselves in order to defend and improve their terms of trade by effective coordination of their sales policies; (iii)  A cocoa agreement should be concluded before the end of 1967 and an agreement on sugar early in 1968; (iv) Commodity arrangements for oil-seeds and vegetable oils, bananas, rubber, tea, sisal, and hard fibres should be concluded at the earliest possible date; (v)  Appropriate action should be taken on an urgent basis in respect of iron ore, nickel, tobacco, cotton, wine, citrus fruit, manganese ore, pepper, mica, shellac, and tungsten.

THE GENESIS OF THE GROUP OF 77

25

(b) Buffer stocks Buffer-stock techniques as a short-term measure for market stabilization should, where appropriate, be one of the methods adopted for international commodity arrangements, and international financing institutions and developed countries should participate in their prefinancing, while with regard to its regular income-producing and consuming countries should devise a formula ensuring an equitable distribution of costs. (c)  Diversification programmes Developed countries and the appropriate international financial institutions should make available additional financial and technical assistance to developing countries, including specific funds, in order to facilitate the carrying out of diversification programmes, highest priority being given to diversification in the programmes on interregional, regional, and sub-regional levels in the process of trade expansion and economic integration among developing countries. These specific funds for diversification should be one of the features of commodity agreements. (d) Pricing policy The main objectives of pricing policy should be: (i) elimination of excessive price fluctuations; (ii) the highest possible earnings from the exports of primary products; (iii) maintenance and increase of the purchasing power of the products exported by developing countries in relation to their imports; and (iv) that developed countries undertake to assist in achieving more stable and higher prices for unprocessed and processed commodities from developing countries by applying adequate domestic taxation policies.

2.  Trade Liberalization (a) Standstill No new tariff and non-tariff restrictions should be introduced by developed countries and those introduced since the first session of the Conference should be eliminated by 31 December 1968. (b)  Removal of barriers (i)  All restrictions and charges applied by developed countries to primary commodities, including semi-processed primary products originating exclusively in developing countries, should be removed; (ii)  A programme of specific commitments should be elaborated with a view to eliminating tariff and non-tariff barriers, including duties and revenue charges, on all products; (iii)  Pending the elimination of internal duties and revenue charges, a system of partial refund should be introduced to lead progressively on an annual basis to full refund; (iv)  The tariff reductions offered during the Kennedy Round of negotiations on primary products of export interest to developing countries should be implemented without phasing and without reciprocity in favour of all developing countries. (c) Preferences The representatives of the developing countries at the Ministerial Meeting of the Group of 77, (i) bearing in mind the desire expressed by all members of the Group of 77 to apply recommendation A.II.I, part II, paragraphs 3 and 6, concerning the elimination of preferences, adopted unanimously at the first session of the Conference and noting that the abolition of preferences requires that the developed countries grant equivalent advantages

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THE COLLECTED DOCUMENTS OF THE GROUP OF 77

to the countries which at present enjoy such preferences; (ii) noting that the developed countries have not so far taken effective measures for the implementation of this recommendation; (iii) considering that, in the case of certain commodities, the special preferences in force could be reduced or even abolished through international agreements: Decided to request the Secretary-General of UNCTAD and the regional groups to undertake studies, commodity-by-commodity and country-by-country, on the effect of the abolition of the special preferences in force and the steps necessary to ensure that countries which at present enjoy such preferences receive advantages at least equivalent to the losses resulting from abolition. (d)  Minimum share of markets (i) Where products of developing countries compete with the domestic production of developed countries, the latter should allocate a defined percentage of their consumption of such products to developing countries; in any case, a substantial share of any increase in domestic demand for primary commodities in the developed countries should be reserved for the output of the developing countries. This allocation should be arrived at on a country-by-country and commodity-by-commodity basis, through multilateral negotiation; developed countries should agree to establish maximum ratios of domestic production so as to guarantee to developing countries adequate conditions of access for their exports; (ii)  The developed countries should adopt measures to discourage uneconomic production of commodities which compete with those originating in developing countries and should abolish subsidies on such competing products. (e)  Surpluses and reserve stock disposal The existing machinery for consultation on surplus disposal should be widened and reinforced, and suitable machinery should be established, where such arrangements do not exist, in order to ensure that disposal of production surpluses or strategic reserves does not result in the depression of international prices, and does not adversely affect the exports of developing countries or the intra-regional trade and agricultural development of developing countries and the position of developing countries receiving those surpluses as assistance. (f)  Use of escape clauses Objective criteria should be adopted under a multilateral institutional arrangement for identifying situations on which restrictions are applied by virtue of safeguard clauses and the unilateral application of restrictions should be avoided.

3.  Synthetics and Substitutes (i)  Special measures in the field of finance, technical assistance, and marketing, including financing of research, abolition of subsidies and granting of preferences should be taken to improve the competitive position of natural products of developing countries that are affected by the competition of synthetics and substitutes originating from developed countries; (ii)  The provision of Special Principle Nine of the Final Act of the first session of the Conference on dumping should be implemented with special reference to the marketing of synthetic products.

B.  Expansion of Exports of Manufactures and Semi-manufactures 1.  Principles for a General System of Preferences The following principles should be adopted in order to implement a general system of preferences. They should be accepted simultaneously as complementary and indivisible measures:

THE GENESIS OF THE GROUP OF 77

27

(a)  At the second session of the Conference there should be negotiations, which should lead to the conclusion of an agreement on a general system of tariff preferences on a non-discriminatory and non-reciprocal basis. The agreement should provide for unrestricted and duty-free access to the markets of all the developed countries for all manufactures and semi-manufactures from all developed countries; (b)  Without prejudice to the general provisions contained in paragraph (a) above, the escape clause actions as envisaged below may be taken; in particular special treatment may be granted by developed countries to the less developed among the developing countries; (c) The manufactures and semi-manufactures covered by the preferential system should include all processed and semi-processed primary products of all developing countries; (d)  All developed countries should grant such preferences to all developing countries; (e)  The form of the escape clause action, the objective criteria which should govern the application of escape clause action by developed countries and the procedures that should be followed in such cases must be agreed upon internationally. Such action must however be temporary in nature and be subject to international consultation, approval, and review; (f)  The preferential system must be conceived in such a way as to make it possible for the least advanced among developing countries to share in its benefits. Accordingly any time limits of the system should be flexible so that countries at present in very incipient stages of development will also be able to reap its advantages. Escape clause actions limiting or excluding particular exports should not apply to the less competitive products from less advanced countries. Specific commitments should be taken for technical and financial assistance in the establishment of export-oriented industries in least advanced countries, with a view to markets both in the developed world and in other developing countries; (g)  The new system of general preferences should ensure at least equivalent advantages to developing countries enjoying preferences in certain developed countries to enable them to suspend their existing preferences on manufactures and semi-manufactures. From the beginning, provisions should be incorporated in the system of general preferences, for the developed countries to redress any adverse situation which may arise for these developing countries as a consequence of the institution of the general system of preferences; (h) In order to achieve the objective of the general preferential system, the arrangement should last long enough to enable all developing countries to benefit from it. Initially the arrangement should last for twenty years and should be reviewed towards the end of this initial period. In any event, the preferential treatment should not thereafter be abruptly terminated; (i)  In order that the general system of preferences may make adequate contribution to the balance of payments of the developing countries, the developed countries should not reduce their aid to them or nullify or impair the benefits of preferences through other measures; (j)  Suitable machinery within UNCTAD should be established to supervise and ensure the effective implementation of a general system of preferences in accordance with the foregoing paragraphs.

2.  Liberalization of Trade in Manufactures and Semi-manufactures (a)  The developed countries should implement immediately, without phasing, in favour of all developing countries, concessions agreed on during the Kennedy Round of trade negotiations, on products of export interest to the latter countries; (b)  The developed countries should state at the second session of the Conference that all concessions agreed on during the Kennedy Round of trade negotiations on products of export interest to developing countries would be extended at the time of implementation to all

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developing countries whether or not members of the General Agreement on Tariffs and Trade (GATT), without reciprocity; (c)  At the second session of the Conference both developed and developing countries should, on the basis of the evaluation of the Kennedy Round being prepared by the UNCTAD and GATT secretariats and those prepared by Governments themselves, identify all outstanding issues for further negotiations. The principles of the most-favoured-nation treatment and reciprocity should in no way be introduced in these negotiations. In these negotiations all developing countries should be allowed to participate if they so desire; (d)  The developed countries should implement the agreements reached at the first session of the Conference on liberalization for manufactures and semi-manufactures of export interest to the developing countries, particularly as regards the principle of the standstill; (e)  The developed countries should establish, at the second session of the Conference, a concrete programme for the removal of quantitative restrictions at an early date, particularly those which are applied by them inconsistently with their international obligations, and also give an undertaking not to renew existing restrictions or to impose new quantitative restrictions, or to adopt any other measures having equivalent effects on products of export interest to developing countries; (f)  Developed countries should supply all relevant information to the UNCTAD secretariat in respect of non-tariff barriers other than quantitative restrictions applied in the markets of the developed countries for examination at the second session of the Conference; (g)  Objective criteria should be established for the application of restrictions to trade in products from developing countries under escape clauses relating to ‘market disruption’ and other ‘special circumstances’ applied by developed countries, so that such situations may be defined, provisions may be laid down specifying what measures restrictive of trade can legitimately be applied when such a situation is found to exist, and compensation may be fixed which corresponds to the loss or damage suffered by the developing countries; Multilateral consultative and supervisory machinery should be set up for that purpose. The developed countries should undertake measures for anticipatory structural readjustments and other measures for bringing about such changes in their production patterns as to eliminate the possibility of resorting to restrictive trade policies or escape-clause actions on the ground of market disruption in relation to products of export interest to developing countries in order to establish a new international division of labour that would be more equitable. The developed countries should not promote the development in their territories of industries of particular interest to the developing countries. In those cases where developed countries have invoked escape clauses on grounds of market disruption, they should make the appropriate domestic structural adjustments; (h)  The developed countries should take appropriate action to carry out readjustments in the tariff nomenclatures of their countries so as to facilitate the granting of duty-free entry on products exported by and large by developing countries; (i)  The machinery which would be established to supervise the effective implementation of a general system of preferences should also supervise the programme for the elimination of tariff and non-tariff barriers, and the application of escape clauses, in particular any such barriers, which prejudice or nullify the scheme of general preferences.

3.  Trade with Socialist Countries The socialist countries should grant concessions to the developing countries whose advantages are at least equivalent to the effects of preferences, which would be granted by the developed countries with market economies.

THE GENESIS OF THE GROUP OF 77

29

The socialist countries should: (a)  Adopt and implement measures designed to increase the rate of growth of the imports of manufactures and semi-manufactures from developing countries, and to diversify such imports in consonance with the latter’s trade and development requirements; (b)  Undertake to contribute to the maintenance of remunerative and stable prices for the exports of developing countries by the inclusion of suitable provisions in their trade agreements with these countries; (c)  In drawing up their national and regional development plans, take due account of the production and export potential in developing countries; (d)  Abolish customs duties and other trade restrictions on goods imported from and originating in developing countries; (e)  Eliminate the margin between the import price and the domestic selling price of the goods imported from developing countries; (f)  Refrain from re-exporting the goods purchased from developing countries, unless it is with the consent of the developing countries concerned; (g)  Encourage the conclusion of industrial branch agreements for the supply of plant and equipment on credit to the developing countries, accepting repayment of such credits in particular with the goods manufactured by such plant in the developing countries concerned; (h)  Multilateralize, to the extent possible, among the socialist countries of Eastern Europe, payments arrangements with developing countries to facilitate increase of imports from the latter; (i)  Grant preferential access conditions for products originating from developing countries. These conditions should include the establishment in their international purchasing policies, of margins of tolerance in favour of the developing countries with regard to prices and delivery terms; (j)  Within the framework of UNCTAD set up permanent consultative machinery through which socialist countries and developing countries may promote mutual trade and economic cooperation, and solve problems and obstacles which may arise.

4.  Trade Promotion (a) Diversification of production of manufactures and semi-manufactures of developing countries should be carried out within the framework of a new and more equitable international division of labour between developing and developed countries; (b)  Developed countries should abstain from harming the interests of developing countries by fostering production of commodities produced principally by developing countries, and, in that regard, they should encourage the establishment in the developing countries of export industries processing primary commodities produced by the latter; (c)  Developed countries and international agencies should channel more and more effective technical and financial assistance in order to improve the productivity of the developing countries’ industries and their competitiveness in international markets; (d)  International co-operation should also be secured with a view to the dissemination of trade information, particularly with regard to the opportunities offered by the developed countries’ markets. To that end, the developing countries should support the establishment of the joint UNCTAD/GATT trade promotion Centre and obtain the financial and technical support of the developed countries for its operation. Also a closely and continuing co-operation between the United Nations Industrial Development Organization (UNIDO) and UNCTAD should be promoted, on the general understanding that, as stated in General Assembly resolution 2152 (XXI), ‘the former shall be competent to deal with the general and technical problems of industrialization, including the establishment and expansion of industries in

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developing countries, and the latter with the foreign trade aspects of industrialization, including the expansion and diversification of exports of manufactures and semi-manufactures by developing countries. Furthermore, developing countries should take into consideration the possibility of the establishment of a single export promotion Centre within the United Nations family under the auspices of UNCTAD.

C.  Development Financing 1.  Flow of International Public and Private Capital (a)  Each developed country should comply with the target of a minimum 1 per cent of its gross national product for net financial flows, in terms of actual disbursements, by the end of the United Nations Development Decade. A separate minimum target, within this goal, and progressively increasing, should be established for the official component of aid flows, net of amortization, and interest payments; (b)  Any gaps remaining in the 1 per cent transfer each year should be made good by additional government transfers; (c)  Resources of the International Development Association (IDA) should be immediately replenished and augmented; (d)  Developed countries and financial institutions should extend and intensify their support to regional development banks; (e)  The International Bank for Reconstruction and Development (IBRD) should be made a development bank for developing countries exclusively. Total repayment of current loans by developed countries in advance of maturity should be secured. Such released funds should be used to augment resources of IBRD and IDA to finance development of developing countries; (f)  There should be no discrimination by international lending institutions against the public sector, in particular in industry; (g)  Special consideration should be given to developing countries, which have not so far received adequate international aid; (h) Private investments should be of permanent benefit to the host developing country. Subject to nationally defined priorities and within the framework of national development plans, private investments may be encouraged by incentives and guarantees; (i)  No developed countries should decrease the existing level of their aid to developing countries, especially those forms of aid granted through negotiations.

2.  Terms and Conditions of Development Finance (a)  By 1968, the norms of lending laid down by General Assembly resolution 2170 (XXI) and the Development Assistance Committee of the Organization for Economic Cooperation and Development (OECD) should be reached; (b)  Beyond a date to be internationally agreed, all development lending should be on terms currently applied by IDA. In regard to earlier loans or loans on other than IDA terms, the interest should be subsidized by governments of developed countries; (c)  Pending the general adoption of IDA terms, there should be a considerable lowering of interest rates and a considerable increase in maturities and grace periods; (d)  A multilateral interest equalization fund should be created to cover the interest margin between loans obtained on international capital markets and concessional development loans; (e)  Development finance should be rapidly and progressively untied, with a view to reaching the goal of total untying by a specific date; excess costs incurred through tying should be

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subsidized by creditor countries; procurement in developing countries should be freely permissible, especially within the same region; (f)  External finance should be made available both for programmes and for projects and should include local costs where necessary; (g)  Development finance commitments should be on a continuing basis to cover planned programmes over a period of years; (h)  Appropriate steps should be taken to improve the administration of development finance; (i)  An inter-governmental group with equitable representation of developed and developing countries should be established to deal with all aspects of commercial credits, including ­suppliers’ credits.

3.  Problems of External Indebtedness Suitable measures should be adopted for alleviating the debt-servicing burdens of developing countries by consolidation of their external debts into long-term obligations at low rates of interest. In case of imminent difficulties, speedy arrangements should be made for refinancing and rescheduling of loans on ‘soft’ terms and conditions.

4.  Mobilization of Financial Resources Developing countries recognize that they should, to the fullest extent possible consistent with smooth economic growth and social stability, continue to mobilize their domestic resources for financing their development process. They recall, however, that the utilization of these resources cannot be fully effective without the necessary external assistance.

5.  Supplementary Financing The second session of the Conference should negotiate an agreement for early implementation of a scheme of supplementary financing on the basis of a consensus to be reached after considering the report of the Inter-governmental Group on Supplementary Financing on the IBRD study. In no case should the scheme involve internal policy commitments which prejudice the sovereignty of any member country as defined by that country, the means for achieving this objective to be further discussed at the forthcoming meeting of the Inter-governmental Group on Supplementary Financing and negotiated at the second session of the Conference. These discussions and negotiations should take account, inter alia, of the positions expressed in the regional declarations of the developing countries.

6.  Compensatory Financing Facility The developing countries ask that: (a)  Drawing on the International Monetary Fund under the Compensatory Financing Facility should be immediately available up to 50 per cent of the countries’ quotas in the Fund, and that such drawings should not be subject to any conditions; (b)  The formula for calculating shortfalls should be modified, taking as the basis the exports of each of the countries concerned either during three normal years or more, preceding the payment of compensation; (c)  Due consideration should be given to refinancing debts incurred by developing countries during periods of persistent shortfalls in their export earnings, including a revision of current repurchase time limits.

7.  International Monetary Issues (a)  Developing countries should participate from the outset in all discussions on international monetary reform and in the operation of the new arrangements for Special Drawing Rights in the International Monetary Fund;

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(b)  A link between development finance and additional liquidity should be forged as urged by the developing countries; (c) The developing countries are intimately concerned with the policies of international financial organizations relating to the use of their resources, voting power, and the improvement of machinery for balance-of-payments adjustments.

D.  Invisibles, Including Shipping Developing countries reaffirm the competence of UNCTAD in shipping matters.

1.  International Shipping Legislation (a)  Developing countries ask that the second session of the Conference should include ‘international shipping legislation’ in the work programme of the Committee on Shipping, which should use such technical and expert advice as may be necessary; (b)  In accordance with the obligations undertaken by the international community, all developed countries should give full cooperation to the UNCTAD secretariat by providing complete information for studies being carried out by it in the field of shipping, including freight rates, conference practices, adequacy of shipping services, etc.; (c)  These studies should take into account the implications of technical advances in shipping in respect of the organization and structure of conferences, cost levels, rate structure, and techniques of port organization and operations, as well as the implications of technical advances for the expansion of merchant marines of developing countries.

2.  Freight Rates and Conference Practices (a)  Immediate steps are needed at the second session of the Conference to provide a basis for future action on freight rates, which are not only continuing to rise but are still discriminatory and restrictive vis-à-vis the developing countries; (b) Developed countries should press freight conferences and shipowners to abolish the widespread practice of fixing special high freight rates for the transport of non-traditional products of the developing countries and to lower freight rates applied to traditional exports of the developing countries; (c)  Developing countries ask the second session of the Conference to adopt the following principles: (i)  The right of developing countries to take part in any freight conference affecting their maritime traffic on an equal footing with shipowners of developed countries; (ii)  Freight conferences to have representation in developing countries; (iii)  Publication of information, including advance publication of any proposed changes on freight rates and other cargo arrangements by freight conferences affecting the foreign trade of developing countries. (d)  Developing countries should intensify their cooperation among themselves, inter alia on regional basis, to secure maximum benefits and better bargaining positions in the field of shipping, in particular regarding freight rates.

3.  Expansion of Merchant Marines (a)  Developing countries affirm their unquestionable right to establish and to expand their merchant marines in the context of rising freight rates and the prospects of their foreign trade; (b)  Developed countries and international agencies should extend financial and technical assistance to developing countries for the establishment and expansion of national and

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regional merchant marines and related facilities. Such assistance should include the training of personnel in the economic, managerial, technical, and other aspects of shipping. Financing arrangements should be in favour of national enterprises; (c)  All countries should recognize the right of developing countries to assist their merchant marines, including the right to reserve a fair share of the cargo transported to and from those countries; (d)  The regulations enacted by developing countries with a view to achieving the objectives aforementioned should not be considered justification for the adoption of retaliatory or other measures by the developed countries and their shipping conferences which may have the effect of rendering ineffective the measures taken by the developing countries; (e)  Developing countries should be enabled to make the maximum use of their shipbuilding industries and expand them.

4.  Consultation Machinery (a)  Specific action should be taken by UNCTAD in collaboration with the United Nations Development Programme and the regional economic commissions to give effect to the resolution of the Committee on Shipping on the establishment of national and regional consultation machinery in various parts of the world in accordance with the provisions adopted; (b)  Financial and technical assistance should be given to developing countries for the establishment of such machinery where necessary.

5.  Port Improvements (a)  Practical measures should be devised at the second session of the Conference for financing and giving technical assistance to developing countries for port development and allied works and programmes relating to port operation, taking into account technical advances in shipping; (b)  Measures should be devised at the second session of the Conference for ensuring that savings achieved by the improvement of port facilities in shipping operations are utilized to the advantage of developing countries through reduction of freight rates in respect of the port achieving such improvement.

6.  Insurance and Reinsurance (a)  Developed countries should reduce the cost of reinsurance to developing countries; (b)  A substantial part of the technical reserves of the insurance and reinsurance companies should be retained in the countries where premium incomes arise for reinvestment in those countries; (c)  Developing countries should be technically and financially assisted in building up their own insurance and reinsurance facilities.

7. Tourism (a)  Developed countries and financing institutions should extend credits on easy terms to developing countries for promoting tourism; (b) Developed countries and international credit institutions should make investments in infrastructure in tourism in developing countries; (c)  Passenger fares to developing countries should be concessional and attractive and other facilities should be provided in order to encourage tourist traffic.

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E.  General Trade Policy Issues 1.  Principles Governing International Trade Relations and Trade Policies Conducive to Development (a)  The second session of the Conference should review the implementation of the principles governing international trade relations and trade policies conducive to development; (b)  In compliance with recommendations A.I.1 and A.I.3 of the Final Act of the first session of the Conference, which leave open the completion of these principles, the second session may elaborate new principles. However, principles already adopted would not be subject to reexamination.

2.  Trade Relations among Countries Having Different Economic and Social Systems (a)  The expansion of trade between developed socialist countries of Eastern Europe and developed market-economy countries should not unfavourably affect the trading possibilities of developing countries, but on the contrary should lead to a rising trade between them and the latter. In pursuance of this objective, the socialist countries should provide in their economic development plans and trade policies measures for accelerated increase of their imports of primary commodities and manufactures and semi-manufactures originating from developing countries; (b)  Socialist countries should also reaffirm the assurances given by them at the first session that they will refrain from re-exporting the goods purchased from the developing countries unless it is with consent of the developing countries concerned; (c)  Socialist countries should adopt the necessary measures to reduce the gap between import and sales prices of products originating in developing countries in order to promote the consumption of these commodities; the establishment in the import policies and trade programmes of the socialist countries of margins of tolerance with regard to prices, delivery dates, and other conditions relating to exports from developing countries would greatly contribute to the increase of trade between these countries and the socialist countries; (d)  Credit extended by socialist countries for financing public and private projects in developing countries should be adapted to the particular conditions of the countries concerned, and, where possible, provision should be made for repayment by the export of the products of those or other projects; (e)  In the case of contracts concluded between the enterprises in the developing countries and the relevant agencies in the socialist countries, due attention should be given to the periods covered by those contracts in order to enable the enterprises to plan and execute with greater efficiency their investment, production, and delivery programmes.

3.  Impact of Regional Economic Groupings (a)  Regional economic groupings of developed countries should avoid discriminating against the export of developing countries of manufactures, semi-manufactures and primary products, particularly temperate and tropical agricultural commodities; (b)  The expansion of these groupings should not increase the incidence of any discrimination; (c)  Regional economic groupings of developed countries should take measures with a view to ensuring freer access of the exports of developing countries.

4.  International Division of Labour A new and dynamic international division of labour should be applied whereby developed countries avoid taking protective measures affecting agricultural exports of developing countries in

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fields in which they are more efficient and duplicating investments already made, or about to be made, by developing countries in industry. Conditions should be created for industrialization in developing countries to make the fullest use of their available resources. Diversification of the production of developing countries should also be carried out within a framework of a division of labour that would enable the greatest flow of trade on the one hand among developing countries and, on the other hand, between those countries and others.

5.  The World Food Problem It was agreed that, in the light of the fact that the item had only recently been introduced, consultations would be pursued within the Group of 77 with a view to adopting a common position on the world food problem for the second session of the Conference.

6.  Special Problems of the Land-locked Countries A group of experts should be established in order to carry out a comprehensive examination of the special problems involved in the promotion of trade and economic development of the land-locked developing countries, with special reference to the high costs involved in the execution of their development programmes and trade expansion programmes. In the light of this examination, adequate financial and technical assistance should be extended by international financial institutions to minimize the cost of the factors involved. The international financing agencies should also give priority to such technical and financial assistance programmes as the land-locked developing countries may propose in connexion with the special problems of their trade and development and, in particular, with the development and improvement of their transport infrastructure.

7.  Transfer of Technology, including Know-how and Patents (a)  The developed countries should encourage the transfer of knowledge and technology to developing countries by permitting the use of industrial patents on the best possible terms which will enable products manufactured in developing countries to compete effectively in world markets; (b)  They should also promote the elimination of restrictive practices, relating to market distribution and price-fixing, which are imposed by enterprises in developed countries in granting licences for the use of patents and trade-marks in developing countries; (c)  The developed countries should provide guidance to their industrial entrepreneurs regarding investment opportunities in the export industries of the developing countries and familiarize them with legal, political, economic and other relevant information on the situation in the developing countries.

F.  Trade Expansion and Economic Integration among Developing Countries (a) The developing countries reaffirm that trade expansion and economic cooperation among themselves is an important element of a global strategy for development, and they are therefore determined to make their own contribution toward the fulfillment of the objectives of the second session of the Conference by stepping up their efforts in this respect. Such action can in no way be regarded as a substitute for larger and more remunerative exports to developed countries or for a greater contribution by the latter countries. However, trade expansion and economic integration among developing countries raise special problems and difficulties as compared with similar processes among developed countries. Action with regard to trade barriers will therefore not be enough, but must be combined with suitable measures in other fields in particular investment matters and payments. In this connexion, the availability of appropriate external financing and technical assistance would be an

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important contribution for enabling developing countries to achieve more rapid progress in trade expansion and integration efforts. This international support should, however, be granted in a manner that would fully respect the determination of developing countries to follow their own methods of approach when expanding trade and advancing towards integration among themselves. (b)  The developing countries will inform the second session of the Conference of the efforts they are making or planning to make, in order to increase their trade and strengthen their economic cooperation, particularly in the field of inter-regional, regional, and sub-regional cooperation. (c)  Since the joint efforts of the developing countries cannot be fully successful without financial and technical aid from the developed countries, the latter should at the same time make a formal declaration of support for the developing countries’ efforts at cooperation and integration, specifying the nature and the volume of financial assistance they are prepared to render to those efforts. (d)  At the second session of the Conference, a special working group should be set up to study the practical problems related to: (i)  Trade expansion, economic co-operation, and integration among the developing countries, including consideration of the special problems of the least developed countries; (ii)  The establishment or improvement of multilateral payments systems between developing countries; (iii) The practical measures for the implementation of an international policy which would support these joint efforts with particular reference to financial and technical assistance. Regional or sub-regional groups of developing countries should be invited to participate in the working group. (e)  The second session of the Conference should establish a permanent committee whose task would be to study all questions relating to trade expansion and economic integration among developing countries, with particular reference to ways and means of enabling the developing countries participating in such groupings to derive equitable benefits therefrom. This Committee should, in particular, undertake the following activities: (i)  The study, centralization, and dissemination of information and data on the experience acquired by developing countries in dealing with specific problems of sub-regional, regional, or interregional co-operation, and integration, and the organization of symposia on such problems for national and regional officials; (ii)  Studies relating to the possibility of establishing export and import groupings by commodity, or by group of commodities, among developing countries; (iii)  Studies for the improvement of the infrastructure of transport and communications among developing countries; (iv)  Study the possibility of establishing national and regional information and trade promotion centres in developing countries; (f)  Consideration should be given to the establishment, under the auspices of UNCTAD and of other specialized agencies, of a special Centre to train experts, particularly from developing countries, in the field of economic cooperation and integration among developing countries. (g)  The international information and trade promotion Centre which is being established under the sponsorship of UNCTAD and GATT should give due importance to the question of promoting exports among developing countries.

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G.  Special Measures to Be Taken in Favour of the Least Developed among the Developing Countries Owing to the varying stages of economic development existing among the developing countries and to the varying factors responsible for their development, the trade and financial policy measures required to accelerate the pace of economic development would differ from one developing country to another. It is therefore essential to devise a global strategy of convergent measures in order to enable the least developed among the developing countries to derive equitable benefits so that all the developing countries would gain comparable results from international economic cooperation of member countries of UNCTAD, particularly that with the developed countries. The individual measures recommended by the first session of the Conference and those that would be recommended by the second session should be viewed as components of an integrated policy of cooperation for achieving the overall objectives of trade expansion and accelerated development. All these measures are interrelated. While the appropriate mix of the convergent measures required for the least developed countries cannot be determined at this stage, these measures may be devised from the spheres of: (a)  Commodity policy, including measures of financial and technical assistance for diversification programmes; (b)  Preferences in trade of manufactures and semi-manufactures; (c)  Development finance; (d)  Regional economic integration; (e) Invisibles; (f)  Trade promotion. With regard to commodity policy, the following actions should be recommended to be taken by the second session of the Conference: Special consideration of the need of the least developed countries in relaxing tariff and non-tariff barriers affecting access to the markets both in tropical and temperate products; Temporary refunds, at least in part, of revenue charges and duties on commodities of particular interest to least developed countries. With reference to manufactures and semi-manufactures, the recommendation on the general scheme of preferences contained in this document under section B above (Expansion of Exports of Manufactures and Semi-manufactures) should be taken into consideration and adopted. This should take place independently of the principle in virtue of which substantial advantages may be granted to the least developed among the developing countries under systems of regional or sub-regional integration; while the latter, where appropriate, attain perfection in the matter of customs duties. For the purpose of designing special measures for the least developed countries, it does not seem to be desirable or convenient to attempt an abstract general definition of such countries nor, at this stage, an a priori strict listing of such countries applicable to specific measures considered. Hence, this could be better undertaken, in due course, in a form agreed upon by the developing countries. In order to give effect to the provisions of section G, the Ministerial Meeting decides to establish a working group. The function of the working group shall be to make a special study of the arrangements to be made on the matters referred to in the third paragraph of this section. Composition of the working group: it is agreed that each regional group shall be represented on this group by five members.

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The working group shall meet at Geneva on or about 1 December 1967. It shall submit its report to the countries members of the Group of 77 not later than 15 January 1968.

Part Three A.  Future Activities of the Group of 77 The representatives of developing countries of the Group of 77 are firmly decided to maintain and further strengthen the unity and solidarity of the group of developing countries. They agree to maintain continuous consultations and contacts in order to further that objective. The Group of 77 should meet at the ministerial level as often as this may be deemed necessary, and in any case always prior to the convening of sessions of the United Nations Conference on Trade and Development, in order to harmonize the positions of developing countries and to formulate joint programmes of action in all matters related to trade and development. It can also meet at any other level, as required by the needs of developing countries. In all matters relating to preparations for ministerial meetings of developing countries, and during the intervals between these ministerial meetings, and for the formulation of joint positions on issues within the purview of UNCTAD, the competent authority of the Group of 77 is the Group of 31 developing countries. This Group of 31 is composed of the developing countries members of the Trade and Development Board, and should normally meet concurrently with the Trade and Development Board. For all matters related to their specific fields of activities the developing countries members of the Committee of the Board are fully competent. The Co-ordinating Committee of the Group of 77, as established in Geneva in October 1966, should be continued until the New Delhi Conference with the following terms of reference: (a)  To assist in making appropriate arrangements for visits of goodwill missions; (b)  To transmit to Governments of States Members of the Group of 77 the reports of the goodwill missions received from the President of the Ministerial Meeting; (c)  To undertake any other work that may be entrusted to it by the Group of 77 in Geneva. Informal co-ordinating groups of the Group of 77 should be established at all headquarters of the various United Nations specialized agencies.

B.  Goodwill Missions The representatives of the developing countries participating in the Ministerial Meeting of the Group of 77 have decided to send high-level goodwill missions to countries belonging to other groupings of Member States of UNCTAD. These missions, entrusted with the task of informing and persuading, shall acquaint the respective Governments of the countries to be visited of the conclusions of the Meeting so as to contribute to the creation of the best possible conditions for negotiations on the programme of action at the second session of the Conference. There will be six high-level goodwill missions to visit capitals of developed and socialist countries, composed of at least one, and if possible, two special envoys accredited by Heads of State from each of the three regional groups within the Group of 77. Each mission will be headed by one of its members so as to ensure that each regional group provides two mission leaders. Necessary steps will be taken immediately to contact the respective Governments to fix suitable dates for the visits of the missions in such a way as to ensure the completion of all visits before the end of November 1967. Each mission will submit its report to the President of the Ministerial Meeting who, in his turn, in co-operation with the Co-ordinating Committee, will forward these reports to all the developing countries members of the Group of 77 as soon as possible.

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The President of the Ministerial Meeting of the Group of 77 was requested to present the Charter of Algiers to the General Assembly of the United Nations and to the Secretary-General of the United Nations. The President of the Ministerial Meeting, in his turn, invited the Rapporteur-General of the Ministerial Meeting and the Chairmen of the four Main Committees of the Meeting to accompany him on this mission. He also invited the Vice-Presidents of the Ministerial Meeting to accompany him if their duties permit them to do so.

CHAPTER II MINISTERIAL MEETINGS OF THE GROUP OF 77 IN PREPARATION FOR UNCTAD CONFERENCES

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1.  First Ministerial Meeting of the Group of 77, Algiers, 10–25 October 1967, in preparation for UNCTAD II, New Delhi, 1 February–29 March 1968 a.  The Charter of Algiers can be found in Chapter I, 3(a) of this volume.

2.  Second Ministerial Meeting of the Group of 77, Lima, 25 October–7 November 1971, in preparation for UNCTAD III, Santiago, 13 April–21 May 1972 a.  The Declaration and Principles of the Action Programme of Lima Contents Part One: Joint Statement of the Second Ministerial Meeting of the Group of 77 Part Two: Declaration Part Three: Programme of Action A.  General policy issues B.  Commodity problems and policies C.  Manufactures and semi-manufactures D.  Financial resources for development E.  Investment, including shipping F.  Trade relations among countries with different economic and social systems G.  The transfer of technology H.  Special measures for the least developed among the developing countries and land-locked developing countries Part Four: Future activities of the Group of 77

Part One Joint statement of the Second Ministerial Meeting of the Group of 77 We, the representatives of the 96 developing countries, comprising the vast majority of the human race, assembled at the Second Ministerial Meeting of the Group of 77, in the City of Lima in Peru, from 25 October to 7 November 1971, to harmonize our positions with a view to the third session of the United Nations Conference on Trade and Development to be held in Santiago, Chile, in April–May 1972, thank the Government and people of Peru for their warm hospitality and the efficient arrangements which have made this Meeting a success.

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We have considered the Bangkok Declaration of the Ministerial Meeting of the Asian Group,1 the Addis Ababa Declaration of the Ministerial Meeting of the African Group2 and the Lima Consensus of the Ministerial Meeting of the Latin American Group.3 And as the result of our consideration of these important documents, and of our substantive agreement concerning the trade and development problems of the world today, We invite the attention of the international community and of the peoples and governments of the developed countries of the world to: 1. The Declaration4 containing our assessment of the present world situation, our approach to international endeavours for accelerating the development process in the developing countries, and the basic principles designed to establish a new structure of international economic relations based on a more just and dynamic international division of labour between developing and developed countries; and 2. The Programme of Action5 in which we have outlined concrete and specific proposals aimed at solving, through international co-operation, the urgent problems of trade and development so that our countries can achieve self-sustaining growth and attain true economic independence, thereby contributing to the balanced growth of the world economy. We firmly believe that these objectives cannot be achieved without the full and effective participation of our peoples in the process and benefits of development. We are conscious that we are witnessing a profoundly revolutionary movement in the history of the world. The significance of this moment is made more profound by the fact that we have met on one of the continents which is in a state of ferment in its search for social and economic justice. During the years which have elapsed since the First Meeting of the Group of 77 in Algiers, the process of social, economic, technological and political transformation has been further accelerated, thereby imparting a new and challenging dimension to the problems confronting this world; it has provided unprecedented opportunities for man as a result of his increasing domination of nature and space. In world which has achieved such prodigious advances in so short a span of time, the persistence and aggravation of the under-development afflicting our countries constitute a growing challenge to the international community. Such a situation, anguishing as it is in itself, has been further aggravated by the gap resulting from, on the one hand, the increasing awareness and aspirations of our peoples for the benefits of modern civilization, and, on the other, the means and possibilities for satisfying them. This state of affairs-so acute a contrast between two worlds that are geographically so close and yet so far apart in their standard of life-fills us with concern and dismay, and obliges us to act without delay to carry our peoples forward to higher levels of social justice and human dignity. We have been disappointed by the shortcomings of international cooperation. It has shown a progressive deterioration during the past years and has now in our opinion, reached a state of extreme gravity, the most eloquent manifestations of which are the breakdown of the international monetary system and also the resurgence of protectionist policies which are closing markets, at the very moment when we have the right to expect wider access to them. 1 See MM/77/II/Misc.1. 2 See Report of the African Ministerial Meeting preparatory to UNCTAD III, Addis Ababa, 8-14 October 1971 (E/CN.14/545), part II, Action Programme. 3 The Consensus of Lima, adopted at the Twelfth Meeting of CECLA (MM/77/II/Misc.3-CECLA/XII/ DC/29/Rev.1). 4 See part two below. 5 See part three below.

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The hopes which we had entertained when the Charter of Algiers6 was adopted in 1967 have been frustrated. Once again, therefore, we confront the conscience of world opinion with facts, figures, arguments and programmes. We trust that the understanding of the statement of the developed world will become more responsive and will generate the necessary political will to lend vigour to international cooperation. On such cooperation will depend not only the success of the efforts to raise the standards of living of a vast majority of humanity, but also the progress and prosperity of all peoples. In definite coexistence between poverty and affluence is no longer possible in the world of today. We have, by meeting for the second time, strengthened the unity and solidarity of the Group of 77 as an instrument for achieving a more rational and equitable pattern of international economic relations, and for increasing the self-reliance of developing countries in organizing their own economic and social progress. We, however, notwithstanding our adversities reaffirm our collective faith in international cooperation for development as enshrined in the Charter of the United Nations, the practical expression of which is UNCTAD, the main forum of the United Nations system for trade and development. We express our conviction that the forthcoming third session of the United Nations Conference on Trade and Development to be held in Santiago, Chile, in April–May 1972, will provide a fresh opportunity for the developing as well as the developed countries of the world to make a collective and determined endeavour to correct effectively the adverse situation confronting the developing countries. We therefore believe that the unified expression of the shared hopes and aspirations of mankind, as expressed by the representatives of the vast majority of mankind, would go a long way in evoking favourable response from the international community and, in particular, from the peoples and Governments of the developed world. Finally, we must express our gratitude to the President of the Second Ministerial Meeting, General Edgardo Mercado Jarrín for the impartiality and efficiency with which he has guided the deliberations of this historic meeting.

Part Two Declaration The Ministers of the Group of 77, assembled at their Second Meeting in Lima from 25 October to 7 November 1971, Inspired by their common desire to: Harmonize positions of the developing countries on the course of action to be undertaken by the international community in assisting the promotion of economic and social progress of developing countries, particularly at the forthcoming third session of the United Nations Conference on Trade and Development, Devise ways and means for reviewing the implementation of the policy measures already agreed upon and for seeking new areas of agreement in the dynamic context of the International Development Strategy and evolve new concepts, principles and additional measures for furthering international cooperation for development, Enable the least developed among the developing countries and the land-locked developing countries to benefits fully and equitably from international economic measures, Invite the international community to take urgent action commensurate with the development requirements of the developing countries to assist them in accelerating the pace of their economic development and significantly improving the standard of living of their peoples, 6 See Proceedings of the United Nations Conference on Trade and Development, Second Session, Volume I and Corr.1 and 3 and Add. 1-2, Report and Annexes (United Nations publication, Sales No.E.68.II.D.14), p. 431.

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Strengthen the unity and solidarity of the Group of 77 as the main instrument for achieving a more rational and equitable pattern of international economic relations and for increasing the self-reliance of developing countries in organizing their own economic and social progress, thus securing the full economic independence of these countries;

A Reaffirm the principles and objectives contained in the Charter of Algiers, which retains its full relevance and must continue to serve on an enduring basis as a guide for seeking positive international cooperation; Recognize the basic identity of interests and problems of the developing countries of various regions and the paramount importance of maintaining and cementing their unity and solidarity for defending their common interests and for securing early and just solutions to their problems; Affirm that the unity must be based on an equitable sharing of rights and obligations, and benefits from measures of international cooperation for economic and social development, by all regions and all countries members of the Group of 77.

B Having reviewed the world trade and economic situation and in particular the situation of the developing countries, and having assessed and critically examined policies pursued since their First Meeting in Algiers in October 1967, bearing in mind that the objectives set forth in the Charter of Algiers have not been achieved except to minimal extent, and having determined their requirements in relation to the goals and objectives and policy measures of the International Development Strategy for the Second United Nations Development Decade. Deem it their duty: To invite the attention of the international community and the peoples and the Governments of the developed countries to the following: (a)  The standard of living of the hundreds of millions of peoples of the developing countries is extremely low and the raising of their standard of living to a level consistent with human dignity constitutes a real challenge for international cooperation and contributes to the creation of conditions of stability and well being for all humanity. (b)  In spite of an over-all improvement in international trade and the world economy, as a whole, the relative position of the developing countries continues to deteriorate: (i)  While during the 1960s the per capita income in developed countries increased by over $650, that in developing countries increased only by about $40; (ii)  Their share of world trade in exports declined from 21.3 per cent in 1960 to 17.6 percent in 1970; (iii)  Their external debt burden is growing at such an alarming rate that it stood at about $60 billion at the end of 1969; (iv)  The financial flows from developed to developing countries are declining in terms of the percentage of the gross national product of the former long with their component of official development assistance; (v)  The technological gap between the developed and developing countries is steadily widening. (c) The present international monetary crisis and the intensification of protectionism by developed countries jeopardize vital trade development interests of the developing countries and threaten the very basis of international economic cooperation at the very outset of the Second United Nations Development Decade.

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(d)  The gap in the standard of living between the developed and the developing countries has widened as a result of all these unfavourable trends; since their meeting in Algiers in 1967, the poor countries have become relatively poorer and the rich countries richer.

C Convinced that: The fundamental causes of the low rate of the economic growth of the developing countries are: The contradictions inherent in the present structure of international economic relations based on an anachronistic and irrational international division of labour, which does not respond to the needs of present world economic conditions nor contribute to accelerating the development processes in developing countries; The failure of developed countries to adopt trade and monetary policies fully responsive to the development needs and interests of the developing countries and the lack of political will on the part of the Governments of developed countries even to fulfil obligations and commitments assumed by them so far in UNCTAD and other international forums; The maintenance of certain undesirable trends and policies such as the armaments race, colonialism, racial discrimination, apartheid, occupation of the territories of any State, and in a generally way any dependence whatever in a form that would contribute to the aggravation of social and economic underdevelopment.

D Notwithstanding the foregoing: Reaffirm their faith in international co-operation for development and express their belief that the forthcoming third session of the United Nations Conference on Trade and Development to be held in Santiago, Chile, in April-May 1972, provides a fresh opportunity to make a collective and determined endeavour to correct effectively the adverse situation confronting the developing countries; Recall that the Governments of developed and developing countries have reaffirmed, when adopting the International Development Strategy for the Second United Nations Development Decade, their common and unswerving resolution to seek a better and more just and rational world economic and social order whereby the prevailing disparities in the world may be banished and prosperity secured for all; Believe that the unified expression of shared hopes and aspirations by Ministers representing the overwhelming majority of mankind should result in more positive and long overdue responses from the international community and in particular from the peoples and the Government of the developed countries.

E Stress: That the primary responsibility for the economic development of the developing countries rests upon themselves and to that end they are determined to make all efforts to solve their problems, to carry out the necessary reforms in their economic and social structures, to mobilize fully their basic resources and ensure participation of their peoples in the process and the benefits of development; The need to foster mutual co-operation among developing countries so as to contribute to each other’s economic and social progress by an effective utilization of the complementarities between their respective resources and requirements;

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The imperative necessity for the international community to fulfil its obligation to build a more just international social and economic order within a time-bound action programme through the adoption by the developed countries of such favourable economic and commercial policies, and through increased financial support so as to attain the goals and objectives set forth in the International Development Strategy.

F Reaffirm: The fundamental role of UNCTAD in matters relating to trade and development, to review and appraise the progress achieved in the implementation of the International Development Strategy, within its field of competence, and to seek new areas of agreement and the widening of existing ones as well as to evolve new concepts and seek agreement on additional measures as envisaged in the International Development Strategy.

G Urge the international community: To use international machinery to bring about a rapid transformation of the world economic order, particularly in the fields of trade, finance, shipping, invisibles and technology through: (a)  The achievement of a more rational international division of labour carried out through necessary structural readjustments in the economies of developed countries in order to enable developing countries to diversify their economies, to increase the access of their products to the markets of developed countries and thus accelerate the rate of growth of the developing countries. For this purpose, developed countries should adopt and implement specific programmes of adjustment, including anticipatory adjustment in their production structures. (b)  The adherence by the developed countries to certain basic principles in the field of international trade and development, such as: Observing strictly the standstill in regard to tariff and non-tariff matters; according to trade concessions to all developing countries on a strictly non-reciprocal basis; and extending to developing countries preferential treatment in all trade and development matters; The recognition that every country has the sovereign right freely to dispose of its natural resources in the interests of the economic development and well-being of its own people; any external, political or economic measures or pressures brought to bear on the exercise of this right is a flagrant violation of the principles of self-determination of peoples and of non-intervention, as set forth in the Charter of the United Nations and, if pursued, could constitute a threat to international peace and security; The implementation by the international community of the programme of special measures in favour of the least developed among the developing countries as well as the land-locked developing countries with a view to enabling them to benefit fully and equitably from the Second United Nations Development Decade; The responsibility of the international community to eliminate any impediments to the growth and development of the developing countries and thus contribute to the creation of a world economic environment conducive to progress, prosperity and the attainment of collective economic security; The full participation of developing countries on the basis of equality with other members of the international community in any prior consultations and decision-making in the reform of the world trade and monetary system, developed countries not taking unilaterally any decisions which directly or indirectly affect the social and economic development of developing countries;

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The promotion of a massive transfer of operative technology to developing countries on favourable terms and conditions in order to contribute to their rapid industrialization; making available to developing countries freely and on a non-discriminatory basis among them all scientific and technological information relating to their development requirements; The reservation by the developing countries of an increasing and substantial share in all invisible operations relating to their foreign trade, including shipping and insurance; The assurance that the developed countries, in dealing with the balance-of-payments problems, observe the principles of international economic cooperation and fulfil the commitments undertaken by them to that end; The recognition by the developed countries of the right of the developing countries to dispose of marine resources within the limits of their national jurisdiction, the establishment of which must take duly into account the development and welfare needs of their peoples, and ensure their participation in the substantive benefit that may derive from the international management of the sea-bed, the ocean floor and the subsoil thereof beyond the limits of national jurisdiction, giving particular consideration to the needs of the land-locked States; The recognition of the relationship between environmental problems and development, and of the need for the developed countries in adopting any environmental policies and pollution control measures, to take into account the development needs of the developing countries and to ensure that their economies are not adversely affected; The utilization for the promotion of the economic and social progress of developing countries of a substantial proportion of the savings from the progressive measures towards general and complete disarmament.

H Adopt the following programme of action:

Part Three Programme of action A.  General policy issues I.  Impact of the present international monetary situation on world trade development, especially of the developing countries The present situation and its effects on developing countries 1. The current international monetary crisis is the result of an imbalance among developed market-economy countries and has severely undermined the international monetary system, adversely affecting the international environment and prospects for trade and development of developing countries. The developing countries have fully cooperated in efforts to preserve the stability of the international monetary system. They are in no way responsible for the balance-ofpayments imbalances among developed market-economy countries. On the contrary, they have deliberately refrained from aggravating the situation by moving their currency reserves. However, they are now being made to carry a heavier burden in the adjustment process than the developed market-economy countries, as a result of the larger proportion of foreign currencies in their reserves. 2.  The restrictions imposed by the developed market economy countries on international trade, as a result of payment imbalance, particularly the 10 per cent surcharge imposed by the United States, are prejudicial to the economies of the developing countries in view of the

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great importance of their exports as a source of income and foreign exchange. The crisis in the international monetary system also threatens to have serious effects on the flow of external assistance to developing countries, as already shown by the recent decision of the United States to cut its foreign assistance programme by 10 per cent. 3.  The present situation could lead to a ‘trade war’ among the developed market-economy countries, which will have disastrous effects on all countries and particularly on developing countries. 4.  As a general principle, balance-of-payments difficulties among the developed market-economy countries should not be used as a justification for the adoption of any measures which restrict the trade of developing countries, delay the liberalization of trade by developed countries in favour of developing countries, or result in a reduction in the flow of development assistance to these countries. 5.  The uncertainty surrounding the international monetary situation warrants immediate and urgent action in order to eliminate the adverse consequences it has already created for the whole world, especially for the developing countries. 6.  It is entirely unacceptable that vital decisions about the future of the international monetary system which are of concern to the entire world community are sought to be taken by a limited group of countries outside the framework of the International Monetary Fund. 7.  The Board of Governors of the International Monetary Fund at its meeting in Washington in September 1971 urged member countries to collaborate with the Fund and with each other for the purpose of establishing, as soon as possible, satisfactory structure of exchange rates maintained within appropriate margins for the currencies of members, together with a reduction of restrictive trade and exchange practices, and facilitate resumption of the orderly conduct of the operations of the Fund and requested the Executive Directors of the Fund to consider, prepare reports on and propose any amendments necessary to resolve existing international monetary problems, including all aspects of the international monetary system. This decision, though it recommends a reform of the international monetary system, does not refer to special problems faced by developing countries. 8.  Any reform of the international monetary system must be geared to a more dynamic concept of world trade based on recognition of the emerging trade requirements of the developing countries. Accordingly, the objectives of any future reform of the international monetary system should be adapted to the needs of the international community as a whole. The new system must create conditions appropriate for a continuing expansion of world trade taking into account especially the needs of the developing countries and facilitate, inter alia, the transfer of additional development financing to developing countries, in line with the objectives and commitments of the International Development Strategy. 9.  The member countries of the Group of 77 endorse the declaration of the Group of 31 developing countries at the eleventh session of the Trade and Development Board on the international monetary situation (document TD/B/L.281)7 as well as resolution 84 (XI) of the Board on international problems.

Programme of action 10.  As a preliminary step, all the restrictive measures affecting developing countries adopted in the context of the international monetary crisis should be eliminated. Specifically, the Government of the United States of America is urged to exempt imports from all developing countries from the 10 per cent surcharge and to eliminate all other measures adversely affecting the trade of developing countries. The other developed market-economy countries are also urged to refrain 7 See Official Records of the General Assembly, Twenty Sixth Session, Supplement No.15 (A/8415/ Rev.1), part three, annex II.

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from taking any measures to restrict trade of developing countries. Developing countries strongly demand that all developed countries implement the generalized system of preferences in favour of developing countries in 1971. The Government of the United States of America is also urged to reconsider its decisions to cut its foreign aid programme by 10 per cent so as to exempt there from all the member countries of the Group of 77. 11.  Any contemplated changes in the international monetary system must take into consideration particularly the interests of the developing countries. In searching for a solution to the international monetary crisis, the whole international community should fully participate in the process of decision-making, so as to ensure the steady and continuous growth of trade and financial flows, particularly of the developing countries. In this regard, the role and the authority of the International Monetary Fund should be re-established and strengthened in all matters that concern the whole international community, as an effective means of safeguarding the interests of all countries, especially of the developing countries. 12.  The following considerations and guidelines, among others, should be taken into account in the exploration of solutions to the crisis: (a)  It is indispensable to the restoration of stability and confidence in the world monetary system that a satisfactory structure of exchange rates maintained within narrow margins should be established; (b)  The new system must provide a mechanism for creating additional international liquidity, through truly collective international action, in line with the requirements of an expanding world economy and the special needs of developing countries, and with such safeguards as will ensure that the total supply of international liquidity is not unduly influenced by the balance-of-payments position of any single country or group of countries; (c)  The creation of a link between SDRs and additional resources for financing development should be made an integral part of the new international monetary system; (d)  The adherence of the developing countries to a new international monetary system necessarily presupposes the existence of a permanent system of guarantees against exchange losses affecting the reserves of these countries. In any case a mechanism should be worked out to compensate developing countries against involuntary losses they have suffered because of currency speculations in certain currencies of developed countries; (e)  The voting power of the developing countries in IMF should be increased by introducing provisions in the Articles of Agreement of IMF in order to increase the number of votes allocated to these countries. 13.  The members of the Group of 77, with a view to ensuring full participation of the developing countries in searching for a solution to the present international monetary crises and to safeguard the interests of the developing countries, invite the President of the Second Ministerial Meeting of the Group of 77 to consult with the Governments of the Group of 77 to consider the establishment of an intergovernmental group as suggested below. 14.  It is also suggested that the intergovernmental group shall, inter alia, perform the following functions: (a)  Keep under review the course of the international monetary situation, take due cognizance of the studies entrusted to the Executive Directors of IMF at the recent meeting of the Board of Governors, and keep the countries members of the Group of 77 informed; (b)  Evaluate events in the monetary field, as well as any decisions, which might be taken by a single country or group of countries within the framework of IMF, relating to the interests of the developing countries; (c)  Recommend within the field of its competence to the Governments of the Group of 77 coordinated positions in the third session of the United Nations Conference on Trade and

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Development, as well as in other forums, and consider any other action as might be necessary, including the convening of a world monetary conference within the framework of the United Nations. 15.  In the implementation of the aforesaid provisions, the President of the Second Ministerial Meeting of the Group of 77 is also asked to inform the member Governments whether a consensus has been reached. If so decided, the President of the Second Ministerial Meeting shall invite the member Governments to have the intergovernmental group meet as soon as possible.

Composition and membership of the intergovernmental group (a)  The proposed intergovernmental group would consist of 15 members of ministerial rank or senior monetary or financial authorities, 5 each from the African, Asian and Latin American groups. (b)  One nominee, each representing the 15 members of the intergovernmental group and the Executive Directors of IMF representing exclusively the developing countries, would act as Deputies to the group. (c)  Any member country of the Group of 77, if it so decided, could have the right to participate fully in all meetings and deliberations of the intergovernmental group, or of its subsidiary organs provided, however, that at least equivalent levels of representation were made.

II.  Implementation of the policy measures within the competence of UNCTAD 1.  The Ministerial Meeting stressed that: (a)  UNCTAD should be action-oriented and its negotiating role strengthened. (b) UNCTAD should be oriented towards the implementation of the provisions of the International Development Strategy so as to enable it to lay down the necessary guidelines for future action and for the formulation of principles and policies on international trade and related problems of economic development. (c)  The review and appraisal functions entrusted by the International Development Strategy should continue to be vested in the Trade and Development Board which may discharge this responsibility through the main Committees in order to promote negotiations connected with the search for new areas of agreement and the extension of existing ones within the framework of the International Development Strategy. (d)  Such negotiations should first and foremost be directed towards enabling governments to withdraw the reservations or restrictive interpretations which are still being applied to many of the most important provisions of the Strategy and to implement these provisions fully and effectively within the time-limits specifies in the Strategy. (e)  The system of the review of the implementation of the recommendations of the Conference should be broadened so as to take within its stride the review and appraisal of the objectives and policies of the Second Development Decade, which fall within the competence of UNCTAD.

Review, appraisal implementation procedure 2.  Greater attention should be given in future reviews of implementation of the recommendations of the Conference to individual country performance, both developed and developing, in order to assess the progress achieved and to highlight the obstacles encountered in the implementation of individual measures for this purpose, a review, appraisal and implementation procedure related to the fulfillment of the policy measures of the International Development Strategy should be established with the following terms of reference:

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(a)  To carry out an analysis of the measures taken by developed countries of the progress made or the difficulties encountered in the carrying out of the policy measures designed to assist the developing countries, especially the least developed among them, taking into account of the reports and studies made by other intergovernmental organs; (b)  To make suggestions for adequate means of overcoming those difficulties or accelerating progress; (c)  The United Nations Conference on Trade and Development at its third session should instruct the Trade and Development Board to define and keep under constant review the indicators for assessing progress in the implementation of policy measures relating to the matters within its sphere of competence. 3.  The process of review and appraisal implies continuing efforts within UNCTAD for securing implementation of the measures agreed upon within the context of the Strategy reaching agreement in more specific terms on issues which have not been fully resolved in the Strategy, seeking new and broadening existing areas of agreement in the dynamic context of the Strategy. 4.  The Board should meet in a special session once in two years, at an appropriately high-level, to consider the detailed reports to be prepared by the Secretary-General of UNCTAD on the progress made on the application of these recommendations. 5.  A sessional committee of the Board could be established to formulate appropriate recommendations for the consideration of the Board.

Third session of the United Nations Conference on Trade and Development 6.  In accordance with the aims set forth in General Assembly resolution 2725 (XXV), the attention of the United Nations Conference on the Trade and Development should be drawn at its third session, in pursuing the functions falling within its competence and its role in the implementation of the International Development Strategy for the Second United Nations Development Decade in a dynamic concept, to the importance of: (a)  Reviewing the progress made in and seeking further implementation of the policy measures as agreed upon within the context of the International Development Strategy; (b)  Reaching agreement in more specific terms on issues which have not been fully resolved in the International Development Strategy and which have an important bearing on its implementation; (c)  Seeking new areas of agreement and widening existing ones; (d)  Evolving new concepts and seeking agreement on additional measures.

III.  Review of the institutional arrangements of UNCTAD 1.  UNCTAD should be action-oriented and its negotiating role should be strengthened, including technical assistance activities. 2.  The review of institutional arrangements of UNCTAD would be most appropriate at the third Conference. 3.  In order to strengthen the negotiating role of UNCTAD and give a more operational character to its recommendations, special efforts should be made: (a)  By the Conference to avail itself of this prerogative set forth in paragraph 3(e) of General Assembly resolution 1995 (XIX) which authorizes the Conference ‘to initiate action, where appropriate, in cooperation with the competent organs of the United Nations for the negotiation and adoption of multilateral legal instruments in the field of trade, with due regard to the adequacy of existing organs of negotiation and without duplication of their activities’, and to

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that end, prepare and submit draft conventions and related multilateral legal instruments, within its field of competence, for the consideration of member Governments; (b)  To utilize the procedures provided for in paragraph 25 of resolution 1995 (XIX) in cases where such procedures are likely to facilitate agreement on substantive matters concerning which it seems advisable to make additional efforts at negotiation in order to avoid a vote.

Board and main Committees 4.  The permanent machinery of UNCTAD should be made more representative of and responsive to the membership of the Conference. 5.  The membership of the Board should be suitably enlarged to reflect the increased membership of the Conference. 6.  The membership of the main Committees and other subsidiary organs of the Boards should likewise be suitably increased and their size be made uniform. 7.  The Board, the main Committees and all other subsidiary organs of the Board should be open-ended. Non-members should have all the rights and privileges of members except the right to vote. In the case of the main Committees or the subsidiary organs, the possibility of their being converted into committees or subsidiary organs of the whole should also be considered. (a)  The Board should, whenever considered desirable: (i) Hold meetings at the Ministerial level; (ii) Convene in special session, as provided for in the rules of procedure and in Board decision 45 (VII), to consider emergency situations adversely affecting the substantial interests of developing countries in international trade and related problems of economic development. 8.  The terms of reference of the main Committees and the subsidiary organs should be reviewed with a view to strengthening their competence and effectiveness. (b)  The main committees and subsidiary organs of the Board should: (i) Meet normally only twice between Conference, unless the interests of the work of the Organization require more frequent meetings; (ii) Meet at such appropriate level as would enable them to take substantive decisions; (iii) Meet after intensive preparations including, wherever necessary, the setting up of expert and/or ad hoc working groups. (c)  Other subsidiary bodies of the continuing machinery: (i) The conversion of the Intergovernmental Group on Transfer of Technology, after its second substantive session, into a permanent committee of the Board should be considered; (ii) The Ministerial Meeting recommended that an intergovernmental group within UNCTAD be set up with a specified frame of reference. For details see part VII of section H on special measures for the least developed among the developing countries.

Secretary-General 9.  The Secretary-General of UNCTAD should be given greater flexibility to initiate consultations between States members concerned, at their request, or to convene intergovernmental working groups and expert groups, whenever any policy of regional economic groupings threatens the interest of developing countries or when there are specific problems that may affect developing countries in matters of trade and development within the competence of UNCTAD. 10.  The Secretary-General of UNCTAD, when preparing the documentary material for items on the provisional agenda for the third session of the Conference, should include a report on the institutional difficulties hitherto encountered by UNCTAD.

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Public information 11.  Appropriate arrangements should be made for promoting more effectively the objectives and activities of UNCTAD in the public opinion of its member States.

Further evolution in the institutional arrangements of UNCTAD 12.  The Ministerial Meeting took note of the recommendations of CECLA resolution 12/XII8 and a memorandum9 circulated by the Brazilian delegation, both on the questions of future institutional arrangements in UNCTAD. 13.  The Ministerial Meeting considers the subject matter of such great importance that particular attention is drawn to paragraphs 30, 31 and 32 of General Assembly resolution 1995 (XIX) on the matter of future institutional arrangements. Moreover, the Ministerial Meeting recalls that, after the first Conference held in Geneva in 1964, the developing countries then known as the Group of 75 jointly declared that: ‘Furthermore, the developing countries would stress the need for continuing evolution in the institutional field, leading not merely to the progressive strengthening of the machinery that is now contemplated, but also to the ultimate emergence of a comprehensive international trade organization.’10 The Ministerial Meeting therefore decides: (a)  To instruct the Group of 77 in Geneva to consider the above-mentioned documentation; (b)  To submit a proposal on the point raised in the said documentation for circulation to and comments from member Governments of the Group of 77; (c)  To present to a pre-Conference meeting of the Group of 77 in Santiago, Chile, a proposal which could be submitted, upon approval by the Ministers of the Group of 77, to the third Conference.

IV.  Impact of regional economic groupings of the developed countries on International trade, including the trade of developing countries The regional groups of Africa, Asia and Latin America each expressed their views as follows:

African Group Regional groupings of developed countries should define trade and industrial policies designed to operate in favour of trade with all the developing countries in conformity with the Charter of Algiers, part two, paragraph E.3. In the implementation of such policies account should be taken of the other relevant provisions of the Charter, in particular part two, paragraph A.2(c), which stipulates that the abolition of preferences requires that the developed countries grant equivalent advantages to the countries which at present enjoy such preferences, and paragraph B.1 (g), which provides as follows: ‘The new system of general preferences should ensure at least equivalent advantages to developing countries enjoying preferences in certain developed countries to enable them to suspend their existing preferences on manufactures and semi-manufactures. From the beginning, provisions should be incorporated in the system of general preferences for the

8 9 10

MM/77/II/Misc.3. See endnote 3 above. MM/77/II/WG/CRP.1. Circulated to the Conference as document TD/L.48. See MM/77/I/Misc.2, para.6.

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developed countries to redress any adverse situation which may arise for these developing countries as a consequence of the institution of the general system of preferences.’

Asian group Recalling General Principle Nine, which states that: ‘Developed countries participating in regional economic groupings should do their utmost to ensure that their economic integration does not cause injury to, or otherwise adversely affect, the expansion of their imports from third countries, and, in particular, from developing countries, either individually or collectively’ and which was adopted at the first Conference and unanimously supported by developing countries; Recalling further that the Charter of Algiers declares that: ‘(a)  Regional economic groupings of developed countries should avoid discriminating against the exports of developing countries of manufactures, semi-manufactures and of primary products, particularly temperate and tropical agricultural commodities; ‘(b)  The expansion of these groupings should not increase the incidence of any discrimination; ‘(c)  Regional economic groupings of developed countries should take measures with a view to ensuring freer access of the exports of developing countries.’ Noting that the African Ministers in their meeting at Addis Ababa on 8-14 October 1971 ‘Reaffirm the principles contained in the Charter of Algiers, which was intended as a frame of reference and a guide for very long-term action, and to propose the essential elements for real and sincere international cooperation.’11 Hereby declares: 1.  Developed countries have, in the intensification of regional groupings, pursued certain policies, which have adversely affected the trade and development of developing countries. Developing countries have been urging developed countries to accord to them no less favourable treatment than that which developed countries accord to each other in their regional economic groupings. Developing countries believe that the regional groupings of developed countries should foster rational and outward looking industrial and trade policies and avoid injury to trading interests of third parties, including third developing countries. The interests of most Asian developing countries have not yet been taken care of in the recent trends leading to the enlargements of the European integration movement. Developed countries should undertake concomitant obligations in their regional groupings by adopting the following measures: (a)  A time-bound programme for providing adequate and improved access for the products of all developing countries; (b)  Mechanisms for protecting the interests of all developing countries in any process of the enlargement or intensification of their regional groupings; (c)  A  non-discriminatory policy towards all developing countries in the field of trade and keeping in view the principle of non-reciprocity; (d)  In the case of new regional groupings and/or the strengthening or enlargement of existing ones, they should not create any adverse effects on the economies of the Asian developing countries in accordance with the principle of standstill accepted by the international community;

11

See E/CN.14/545, part two ‘Action Programme’, preambular section, para.7.

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(e)  In their policy of financial assistance, they should be governed by rational economic considerations in favour of all developing countries irrespective of the region to which they belong. 2.  Whenever any policy of regional economic groupings of developed countries threatens the interests of developing countries, the Secretary-General of UNCTAD should convene consultations among interested countries.

Some Latin American Countries Regional groupings of developed countries in the process of enlargement should adopt equitable and outward looking industrial and trade policies governed by the principles of preferential non-reciprocal and non-discriminatory treatment towards all developing countries with the purpose of safeguard in the interests of these countries. In this respect, and bearing in mind the possible negative effects, which this process of enlargement could have on international commodity markets of vital interest for developing countries, developed countries should accede, in the cases in which they have not done so, to existing international commodity agreements.

V.  Trade expansion, economic cooperation and regional integration among developing countries Action by developing countries 1.  Developing countries should: (a)  Intensify current efforts and initiate new efforts to negotiate and put into effect long-term and meaningful commitments among themselves within the sub-regional and other frameworks of their choice, in order to expand their mutual trade and to extend their economic cooperation in other fields; (b)  Within each subregion to which they belong, as an expression of political will, take further steps to overcome the difficulties that have so far stood in the way of trade expansion, economic cooperation and regional integration among them. Specifically, they should aim at bringing to fruition within the Second United Nations Development Decade the plans already agreed upon, namely to form, where needed, single multinational organizations in each subregion charged with the task of promoting trade expansion, economic cooperation and regional integration among component States as a preliminary and preparatory step towards the larger and final goal of trade expansion, economic cooperation, and regional integration among developing countries. (c)  Apply the principle of equivalent concessions in order to enable developing countries, including those who conduct a substantial part of their foreign trade through public and State-owned enterprises, to participate in regional groupings; (d)  Avail themselves of the facility offered by paragraph 6 of Trade and Development Board resolution 53 (VIII) to seek international support for their concrete schemes in the field of trade expansion, economic cooperation and regional integration; (e)  Make further efforts to intensify and widen economic cooperation among themselves. To that end, they should: (i) Promote and encourage expansion of interregional trade and establishment of suitable payments arrangement among themselves; (ii) Encourage and promote appropriate commodity action and particularly, the protection of the interests of primary producers of the region through intensive consultations among producer countries in order to encourage appropriate policies, leading to the establishment of producers associations and understandings;

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(iii) Further establishment of mutually agreed regional, subregional and interregional preferential trade agreements; (iv) Undertake steps further to liberalize their mutual trade, including the reduction or elimination of tariff and non-tariff barriers; (v) Encourage regional and subregional groupings in which they are members to identify action to be taken in relation to the research, production, trade promotion and marketing of commodities; (vi) Promote, where mutually agreed upon, the establishment of association and joint marketing arrangements among primary producing developing countries with a view to taking concerted action in third-country markets, particularly in developed country markets; (vii) Render fullest support to industrial development in the countries of the region by optimal use of the resources, including technical skill and know-how, available within the region; (viii) Stimulate export production and intensify measures for export promotion in countries of the region through mutual region and subregional cooperation; (ix) Further plans for mutual monetary cooperation; (x) Promote mutual consultations among countries in the region in order to find satisfactory solutions to common problems relating to shipping and ocean freight rates; (xi) Encourage travel and tourism among their nationals by cooperating in schemes for the promotion of tourism on a joint basis; (xii) Endeavour to widen the number of participating countries and the product coverage in the Trade Negotiations Committee of developing countries in GATT, which is open also to non-members of GATT and in which UNCTAD is fully collaborating; (xiii) Undertake schemes related to the building of transport and communication infrastructure; (xiv) Promote, within a regional and subregional framework, the exchange of information and consultations among themselves on their trade and development policies as well as on their objectives with respect to economic co-operation, so as to assist them in determining their priorities and in harmonizing their development programmes and policies. (f)  Developing countries should devise, within the framework of their respective regional, subregional and interregional organizations, effective formulae for industrial cooperation such fields as industrial harmonization and complementation allocation of specific industries, and the sharing of benefits from such multinational industries and the ownership and control of such industries in accordance with their national development needs. 2.  Regional and subregional organizations should take measures to provide more favourable treatment to the less developed among their members. Economic cooperation provides a suitable framework in which to cater for the interests of the least developed and land-locked States. In such matters as access to the sea, diversification of their economies, including the establishment of integrated industries with strong economic linkages, the required range of special measures in their favour could be sustained where countries belong to the same economic grouping. 3.  Regional economic commissions and regional and subregional groupings and their members should give high priority to the development and utilization of human resources. They should undertake measures towards joint utilization of training facilities available in the region and subregion, especially in the scientific and technological fields. 4.  The organization of regional and subregional groupings should be rationalized in order that administrative and other costs are minimized.

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Action by developed market-economy countries 5.  Developed market-economy countries, in pursuance of their declaration of support contained in concerted declaration 23(II) of the Conference and resolution 53 (VIII) of the Trade and Development Board should: (a)  Expand their bilateral and multilateral financial and technical assistance programmes for supporting trade expansion, economic cooperation and regional integration efforts of developing countries; (b)  In particular, take measures with a view to facilitating the transfer of foreign technology appropriate to the needs of developing countries on fair and reasonable terms; (c)  Adjust their aid to developing countries, with a view to giving assistance in: (i) Building the necessary infrastructure for the expansion of interregional trade; (ii) Supporting the creation of regional payment arrangements by financing debit balance in such schemes; (iii) Compensating the least developed members of groupings for handicaps and/or losses they might sustain in cooperative partnership schemes. (d)  For the purpose of assessing area origin criteria, under their general system of preferences, permit developing countries belonging to subregional or regional groupings to adopt the cumulative treatment principle in order to enable the members of such groupings to derive full benefits from the systems; (e)  Prevail upon those of their firms, which have joint ventures, associations of fully owned subsidiaries in developing countries to eliminate all restrictive practices which may hamper the growth of industry and expansion of trade among member countries belonging to subregional or regional groupings; (f)  In order to enable the less developed of the developing countries to derive fuller benefits from economic cooperation and integration arrangements, grant assistance to enable these countries to participate fully in and profit from these arrangements. Developed countries, members of IMF, should support moves for the establishment by the Fund a special facility to enable developing countries members of regional or subregional groupings to overcome balance of payments problems arising from their trade liberalization commitments; (g)  As soon as possible take measures for further untying of aid to enable procurement from among developing countries and other measures to enable the developing countries to take the fullest advantages of the opportunity for the expansion of their mutual trade. In the context of any measures for untying of aid allowances for procurement in developing countries, developed countries should take steps to facilitate the effective participation of enterprises of developing countries in international bidding; (h)  Give greater assistance in the training of personnel of economic cooperation institutions of developing countries, especially those in the field of trade expansion.

Action by socialist countries of Eastern Europe 6.  The socialist countries of Eastern Europe should: (a)  In accordance with the relevant provisions of Conference resolution 15 (II), raise the priority accorded within their individual aid policies and programmes of bilateral and multilateral financial and technical assistance to trade expansion, economic cooperation and regional integration among developing countries. In this connexion, particular attention should be directed to: (i) Multinational infrastructure and industrial projects;

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(ii) Technical assistance in areas related to trade expansion and coordinated development activities, such as coordination of planning, location of industries and use of State trading agencies in support of trade expansion commitments. (b)  With the consent of the developing country concerned take steps to multilateralize their payment arrangements so as to permit balances in their mutual trade to be used for financing of trade with any of the socialist countries and with regional and subregional groupings of developing countries to which that developing country belongs as well as to develop facilities for effecting payment through internationally acceptable banking practices in mutually acceptable currencies; (c)  Be requested to give direct assistance to economic cooperation groupings.

Action by multilateral organizations 7.  Regional and subregional development banks and other international organizations concerned should render maximum assistance to developing countries in furthering their schemes of regional and subregional cooperation. Development banks and other international organizations should give due priority to the financing and furthering of multinational projects prepared by developing countries; 8.  IMF should consider the possibility of establishing a special facility to support trade expansion efforts among developing countries members of regional or subregional groupings, in the event that in these countries there should be balance-of-payments problems. 9.  Regional and subregional development banks as well as the specialized agencies of the United Nations should exchange their information and experience in order to contribute better to schemes of regional and subregional integration efforts in the developing countries.

VI.  Export promotion 1.  Developed countries should: (a)  Together with action for the removal of tariff and non-tariff barriers to trade of developing countries, take other special measures to promote exports of developing countries through the provision of technical and financial assistance to developing countries: (i) To carry out studies and research including exchange of commercial information on a continuous basis on the export prospects for products from developing countries; (ii) To formulate appropriate schemes for standardization, packaging, design and quality control of exports from developing countries; (iii) To organize international trade fairs with a view to securing increased export opportunities for products from developing countries; (iv) To formulate and implement programmes for training of executives and experts at all levels in the field of trade promotion; (b)  Adopt positive measures to establish national centers for the promotion of imports from developing countries; (c) Substantially increase their financial and other support to the joint UNCTAD/GATT International Trade Centre. 2.  Developed countries and international organizations concerned: (a)  Should lend their technical and financial support to the work programmes of regional and subregional trade promotion centers to enable them, in cooperation with other agencies, to collect and disseminate commercial information on a continuing basis, and to assist and supplement export efforts of developing countries to promote trade with developed countries and among

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themselves. Where necessary, developed countries and international organizations concerned should also assist in creating national centres and associations thereof to achieve these objectives. Developing countries should cooperate among themselves in order to intensify the export promotion of their products in third-country markets, particularly the developed-country markets; (b)  UNCTAD, in cooperation with UNIDO and the UNCTAD/GATT International Trade Centre should set up a full and coordinated programme of technical assistance in the field of export promotion. Moreover, the UNDP Special Fund Project on the generalized system of preferences12 should direct its special attention to the needs of the least developed among the developing countries; (c)  Regional trade promotion centres should assist developing countries in actively participating in schemes for regional trade and monetary cooperation to enable these countries to take advantage of export opportunities resulting from untying of aid; (d)  Special market situations prevailing in developing countries and the special needs of the developing countries for adopting certain export promotion measures, including export incentives as part of their efforts to achieve diversification and promotion of their exports, should be recognized; (e)  In view of the limited financing facilities at the disposal of developing countries, regional development banks should assist these countries in financing exports and refinancing export credits.

VII.  The impact of environmental policies on trade and development 1.  The United Nations Conference on the Human Environment should adopt a positive approach to environmental problems in relations to development, along the following general lines: (a)  The relation between environmental problems and development should be the common concern of all mankind; (b)  No environmental policy should adversely affect the possibilities for development, either present or future, of developing countries; (c)  Moreover, non-environmental policy of the developed countries should adversely affect the flow, terms and criteria of financial assistance to developing countries, nor give rise to new types of unfavourable conditions in their international trade, nor create additional obstacles such as new non-tariff measures, nor obstruct any efforts towards the sustained economic development of developing countries; (d) All environmental measures already imposed by developed countries obstructing the trade of developing countries should be removed immediately; (e)  The environmental policies of the developed countries should facilitate, as far as possible, the development of developing countries.

VIII.  Economic effects of the closure of the Suez Canal The Ministerial Meeting: 1.  Supports firmly the current efforts taking place within the framework of the United Nations and the Organization of African Unity aiming at the opening of the Suez Canal in accordance with the United Nations Security Council resolution 242 (1967); 12 UNCTAD/UNDP Project on Training and Advisory Services on the Generalized System of Preference (INT 27).

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2.  Requests the inclusion of the economic effects of the closure of the Suez Canal as an item on the agenda of the third session of the Conference to be held in Santiago, Chile, in April–May 1972.

IX.  Marine resources The Ministerial Meeting decided: 1.  To affirm as a common aim of the Group of 77 recognition by the international community that coastal States have the right to protect and exploit the resources of the sea adjacent to their coasts and of the soil and subsoil thereof, within the limits of their national jurisdiction, the establishment of which must take duly into account the development and welfare needs of their peoples; 2.  To support, among the measures designed to permit the mobilization of the internal resources of the coastal developing countries, those which favour the full disposal of the resources existing in the seas adjacent to their coasts, within the limits of their national jurisdiction, in order that it may contribute to foster their economic and social development and to stop the drain of capital required for accelerating their progress; 3.  To reaffirm also the principle that the area of the sea-bed and the subsoil thereof beyond the limits of national jurisdiction, as well as the resources of that area, are the common heritage of mankind and should be managed by a regime which will enable the peoples of all States to enjoy the substantive benefits that may be derived therefrom, with due regard for the special interests and needs of both coastal and land-locked developing countries; 4.  To support the understanding that, in establishing the provisions for the management of the said area, appropriate measures should be taken to foster the healthy development of the world economy and balanced growth of international trade and to minimize and adverse economic effect caused by the fluctuation of prices of raw materials resulting from such activities; 5.  To maintain periodical consultations among the States members of the Group of 77 concerning the exploitation of the marine resources within and beyond the limits of national jurisdiction, with a view to coordinating positions which may be of common interests to the developing countries.

B.  Commodity problems and policies I.  Access to markets and pricing policy 1. (a)  Standstill: In accordance with the provision of paragraph 25 of the International Development Strategy, developed countries should strictly observe the principle of standstill. No new tariff or non-tariff barriers should be introduced by developed countries nor existing barriers increased, and where tariff and non-tariff barriers have been introduced or increased since the second Conference, these should be eliminated. Appropriate arrangements should be made within UNCTAD for keeping under constant review the observance of this principle. (b)  Liberalization of trade Tariff and non-tariff barriers: (i) All tariff applied by developed countries to primary commodities, including processed and semi-processed primacy commodities originating exclusively in developing countries, should be removed taking account of paragraph 6 of part II of recommendation A.II.1 of the first Conference; (ii) In the case of other primary products, including processed and semi-processed primacy commodities of interest to developing countries, imported from developing

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countries, substantial reductions in and, wherever possible, elimination of all tariffs, should be implemented; (iii) Developed countries should reduce and ultimately eliminate internal taxes, fiscal charges and levies on all primary products, including semi-processed and processed primary products imported from developing countries. Pending such action, developed countries should institute a programme for the full refund of such taxes, fiscal charges and levies to developing countries; (iv) Developed countries should include all products including all processed and semi-processed agricultural and primary products in BTN ­chapters 1–24 in their schemes of generalized preferences. All products in BTN ­chapters 25–99 excluded from the present arrangements should be similarly included in their schemes; (v) Developed countries should agree: (1) To take advance unilateral or joint action (in the case of groups of developed countries) for the reduction or elimination of tariffs and non-barriers on a preferential, non-discriminatory and non-reciprocal basis in favour of developing countries prior to any multilateral negotiation; (2) To eliminate differential treatment between primary products in their natural, processed and semi-processed forms; (3) That negotiations for the phasing out and eventual elimination of existing quantitative restrictions and other non-tariff barriers should take place within UNCTAD; (4) To eliminate the incentives for uneconomic domestic production of primary products in which developing countries are competitive, and to that end they should reduce their domestic production of primary products in which developing countries are competitive, and to that end they should reduce their domestic price support and change policy measures of subsidizing their production and exports; (5) To present at the third session of the Conference their proposals for the implementation of the provisions of paragraph 26 of the International Development Strategy; (vi) Developed countries should abolish any measures taken to limit the access to their markets of a primacy product originating in a specific developing country or processed products utilizing this primary product by reason of the country’s economic and social system. (c)  Market sharing: (i) Where products of developing countries compete with the domestic production of developed countries, each developed country should allocate a defined percentage of its consumption of such products to exports from developing countries. This allocation should be arrived at on a commodity-by-commodity basis through multilateral negotiations. In any case, developed countries should allocate a substantial share of any increase in their domestic demand for primary commodities for the exports of developing countries; (ii) Socialist countries of Eastern Europe should announce specific targets for imports from developing countries as their contribution to these efforts. (d)  Pricing policy: The main objective of pricing policy for commodities produced by developing countries should be to secure remunerative, equitable and stable price levels in order to contribute to the achievement of the overall targets of economic development of developing countries as set by the General Assembly of the United Nations and by UNCTAD. For these purposes the following requirements should be met: (i)  The prices of commodities should not be allowed to deteriorate further and should, where possible, be improved;

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(ii)  Excessive fluctuations in prices should be eliminated; (iii)  The prices of commodities should lead to a satisfactory margin of remuneration for the producer so as to enable him to increase his productivity and to maintain fair labour standards while achieving higher standards of consumption and savings; (iv) The prices of commodities should provide to the governments of the producing countries the financial resources that will enable them to implement an economic policy, including a commodity policy that contributes to the promotion of over all development; (v)  The prices of commodities should contribute to the attainment of export earnings that maintain and increase the purchasing power of the products exported by developing countries in relation to their essential imports from developed countries.

II. Machinery 2. The third session of the Conference should establish the appropriate mechanisms within UNCTAD for formulating policy action in these matters and for keeping under constant review the observance of these principles.

III.  International price stabilization measures and mechanisms 3. (a) International commodity arrangements (i) As a matter of urgency, the international community should make greater efforts to pursue international action in the field of commodities, within time-bound targets, for the conclusion, where appropriate, of international agreements or arrangements, especially those in respect of commodities mentioned in Conference resolution 16(II) and other commodities which may be identified from time to time for that purpose. In this regard the international community should take effective measures to conclude Cocoa Agreement before the third session of the Conference. (ii) The Secretary-General of UNCTAD should prepare for submission to the third session of the Conference, in cooperation with the international bodies concerned, and in particular with the governing councils and the secretariats of the Agreements, and in the light of the experience of the operation of existing international commodity agreements, a study on their effectiveness, seeking the views and suggestions of these bodies in connexion with measures designed to maximize possible benefits there from to all participating countries, especially the developing countries. (iii) The Third Conference should adopt a set of generally acceptable principles and guidelines with a view to promoting a rational international commodity policy and formulating a general agreement on commodity arrangements. (iv) In view of the adverse impact on the export earnings of developing countries as a result of the deteriorating of the terms of trade, the Conference at its third session should examine ways and means whereby unit prices of manufactured imports from developed countries and the unity prices of exports from developing countries could be linked with a view to finding suitable means of increasing the export earnings of developing countries. (v) The Secretary-General of UNCTAD should be given the necessary flexibility to convene inter-governmental consultations on commodity matters. (b)  Consultation and cooperation among developing countries Cooperation among developing countries themselves should be reinforced and specific commodities selected for initiating new efforts. In particular, commodity exporting developing countries should, in relation to both agricultural and mineral commodities, establish appropriate mechanisms of coordination and cooperation.

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(c)  Buffer stocks and stabilization reserve schemes (i) Developed consuming countries should agree to share responsibility in the financing of buffer stocks and stabilization reserve schemes in any international commodity arrangement. (ii) IMF should review its facilities for financing buffer stocks, with a view to relaxing and, if necessary, modifying their conditions in order to enable developing countries to derive maximum benefits therefrom.

IV.  Marketing and distribution systems of primary commodities 4.  In order to undertake a comprehensive review of the marketing and distribution systems of primary commodities of export interest to developing countries, the Secretary-General of UNCTAD should make an urgent study, using all sources of information, including international and intergovernmental organizations and governments and non-governmental institutions concerned with trade in primary commodities. The study should aim to provide: (a)  An assessment of the proportion of earnings of developing countries from exports of selected commodities, which is retained within their territories as compared with the total earnings generated by this flow of trade; (b)  An analysis of the functioning of commodity exchanges and the extent to which short-term price fluctuations are attributable to their activities; (c)  An analysis of the organization of markets, in particular to identify elements of a monopolistic or oligopolistic nature and the extent to which levels of prices may be attributable to such market forms, and the consequence to developing countries therefrom; (d)  Recommendations for corrective measures.

V.  Impact of production from the sea-bed 5.  Studies should be continued within UNCTAD with a view to making recommendations on the necessary measures to avoid the adverse economic effects on the prices of minerals exported primarily by developing countries which the exploitation of the sea-bed and the ocean floor and the sub-soil thereof beyond the limits of national jurisdiction may have.

VI.  Competitiveness of natural products 6.  Synthetics and substitutes (a)  Developed countries should not take measures in the context of their national policies which will encourage production of synthetics and substitutes which will compete with natural products of developing countries. They should also eliminate tariff and non-tariff barriers on natural products facing competition from synthetics and substitutes, and should implement the provisions of Special Principle Nine, concerning dumping, of the Final Act of the first Conference, with special reference to the marketing of synthetics and substitutes. (b)  In view of the adverse impact on developing countries of the shrinking demand for certain natural products as a result of the expansion of synthetics and substitutes, the developed countries should encourage research and development in respect of natural products facing competition from synthetics and substitutes aimed at improving production techniques and increasing trade in those products through, inter alia, alternative or new uses and markets for such products. Developed countries producing such synthetics and substitutes should levy some measure of taxation on these in order to raise funds for research and development programmes for improving the competitive position of natural products of developing countries.

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(c)  The developed countries and international financial institutions should undertake to provide financial and technical assistance to support national, subregional and regional research and development projects in developing countries for natural products facing competition from synthetic and substitutes and should provide necessary assistance to enable developing countries effectively to implement their programmes for diversification and for trade promotion and marketing of their natural products. (d)  Developing countries should make efforts to increase trade among themselves in natural products threatened by synthetics and substitutes and should cooperate on research and the dissemination of results. (e)  Countries producing synthetics should cooperate with UNCTAD and other international organizations to make available all relevant information on synthetics in order to study the problems facing natural products.

VII.  Disposals of surpluses and strategic reserves 7.  Developed countries making disposal from surpluses or strategic reserves should ensure that such disposal will not adversely affect the economies of developing countries. Disposal from surpluses and strategic reserves and other government-held non-commercial inventories of primary products not covered by the FAO Principles on Surplus Disposal should be kept under review in UNCTAD with a view to ensuring implementation of decision 4(V) of the Committee on Commodities.13

VIII. Diversification 8.  Recognizing the importance of diversification of the economies of the developing countries and the extent to which adjustment and restructuring of the economies of developed countries can contribute to this purpose and accepting that the responsibility for diversification lies primarily with the developing countries, the developed countries should assist developing countries in their diversification efforts by a comprehensive commitment to enable the developing countries to undertake appropriate policies. (a)  The developed countries should adopt a policy of access to their markets and a price policy, which will facilitate the execution of diversification programmes. (b)  They should undertake to introduce structural adjustments of their economies in order to facilitate the expansion of imports from developing countries and particularly in respect of countries heavily dependent on the export of commodities facing structural marketing problems. (c)  Developed countries should enlarge their system of generalized preferences to cover, in particular, processed and semi-processed primary commodities and facilitate the transfer of technology. (d)  Developed countries should support diversification funds established or to be established in developing countries and should, jointly with developing countries, invite international financial institutions to support diversification funds. (e)  The Secretary-General of UNCTAD should prepare, in consultation with international financial organizations, a study on the creation of a fund for the support of national programmes for the diversification of exports to be constituted with additional financial resources for development.

13 See Official Records of the Trade and Development Board Tenth Session, Supplement No. 3 (TD/B/317), annex I.

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(f)  A preliminary survey of the existing infrastructure of developing countries should be carried out from funds available to UNDP for regional projects, in order to identify the minimum that is necessary to enable developing countries to benefit from any programme of diversification.

C.  Manufactures and semi-manufactures I. Preference 1.  Developed countries which have not yet implemented their schemes of generalized preferences should do so ‘as early as possible in 1971’ in fulfilment of their commitments in the International Development Strategy. 2.  Preferential treatment under the generalized system of preferences (GSP) should be accorded to all developing countries members of the Group of 77 from the outset. The problem of reverse preferences should be resolved in the manner agreed to in decision 75 (S-IV) of the Trade and Development Board of UNCTAD. Those preference-giving countries which now enjoy reverse preferences and those which demand their abolition should, between them, work out solutions. In the meantime the implementation of the GSP should continue. 3.  The socialist countries of Eastern Europe which have not yet indicated the nature of preferential treatment and have not yet specified the operational measures they intend to take for implementing the joint declaration made by Bulgaria, Czechoslovakia, Hungary, Poland and the USSR at the Special Committee on Preference,14 should do so as early as possible. The socialist countries of Eastern Europe should transmit the above information to the States members of UNCTAD through the Secretary-General of UNCTAD. 4.  The Special Committee on Preference should be established as the permanent machinery within UNCTAD with the terms of reference described in section VIII of the agreed conclusions.15 5.  Developed countries should take fully into account section V of the agreed conclusions of the Special Committee on Preferences relative to the least developing among the developing countries. In addition, the third session of the United Nations Conference on Trade and Development should consider the creation of a special industrialization and technical cooperation fund derived from contributions from the developed countries. Such a transfer of resources from these countries would balance in a more equitable way the benefits accruing to various developing countries from the GSP. 6.  The Special Committee on Preferences should embark as soon as possible in 1972 on consultations and negotiations aimed at improving the system. In this connexion the preference-giving countries should: (a)  Include all processed and semi-processed agricultural and primary products in BTN Chapters  1 to 24 in their schemes of generalized preferences. All products in BTN Chapters 25 to 99 excluded from the present arrangements should be similarly included in their schemes; (b)  Provide duty-free and quota-free entry to imports from all developing countries under the generalized system of preferences; (c)  Accord unrestricted and duty-free entry to handmade handicraft products from developing countries by including them in their schemes of preferences or by adopting suitable commercial policy measures. The Customs Cooperation Council (CCC) Secretariat is requested

14 See Official Records of he Trade and Development Board, Tenth Session, Supplement No. 6A (TD/B/329/Rev.1), part two, para. 192. 15 See Trade and Development Board decision 75 (S-IV), annex.

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to expedite its technical study of products not included in the GSP on the basis of proposals made by the Committee on Manufactures at its fifth session;16 (d)  In formulating and applying in rules on origin under the GSP achieve maximum harmonization in accordance with the agreement reached in the UNCTAD Working Group on Rules of Origin.17 Preference-giving countries should immediately modify, with a view to simplifying, those provisions in their existing rules of origin which would, for lack of simplicity, inhibit or hamper the growth of exports by developing countries under the GSP. Preference-giving countries should allow materials or components originating from any developing country to be included in the application of their origin requirements for the final product; (e)  Not resort to escape clause of safeguard actions except in exceptional circumstances and these should be subject to prior international on consultation, approval and review; (f)  Eliminate on a preferential and non-reciprocal basis in favour of all developing countries all non-tariff barriers on products included under the GSP. 7.  Developed countries should not adopt any domestic policy measures, which would minimize the benefits of the GSP but should adopt further measures that would enable developing countries to drive maximum benefits from the system.

II. Standstill 8.  Developed countries should strictly observe the principle of standstill with regard to developing countries. They should respect their commitments not to increase existing tariff and non-tariff barriers or establish new barriers or adopt any measures detrimental to the exports of developing countries. In any case where tariff and non-tariff barriers have been introduced or increased since the second Conference, these should be eliminated. Appropriate institutional machinery within UNCTAD should be devised for keep in this matter under constant review and for prior consultation and approval in case of need to depart from the standstill. Any departure from the standstill due to compelling reason should be of short duration and should be accompanied by measures to facilitate the early removal of any new restrictions imposed.

III.  Liberalization of non-tariff barriers 9.  Developed countries should take immediate action to eliminate all quantitative restrictions and other non-tariff barriers on products of export interest to developing countries, on a preferential and non-reciprocal basis, in favour of all developing countries, without waiting for the results of any general multilateral negotiations. 10. In order to achieve the above objectives, United Nations Conference on Trade and Development at its third session should establish as a subsidiary organ of the Trade and Development Board an ad hoc intergovernmental group open to all countries concerned, to perform the following functions: (a)  To promote consultations and negotiations on non-tariff barriers affecting present and potential exports of products of interest to developing countries; (b)  To propose measures, on the basis of individual products and groups of products and having regard to both the countries applying non-tariff barriers and to the countries affected thereby, for the reduction, relaxation and elimination, on a preferential and non-reciprocal basis, of non-tariff barriers affecting the exports of developing countries. 16 See Official Records of the Trade and Development Board, Eleventh Session, Supplement No.2 (TD/B/352), para. 66. 17 See TD/B/AC.5/38, para. 47-59.

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11.  The Secretary-General of UNCTAD is requested to continue, for the purpose of submitting as basic documentary material to the ad hoc group, the following work: (a)  The identification of additional products or groups of products in accordance with the selection criteria and guidelines laid down in document TD/B/C.2/R.218 and the discussion of the Sessional Committee of the Committee on Manufactures; (b)  The preparation of a document containing an up-to-date, more precise and detailed inventory of non-tariff barriers affecting the trade of developing countries with individual developed countries, making full use of all the documentation and information available in GATT relating to its work on non-tariff barriers, in consultation with the developed and developing countries concerned; (c)  The identification in the light of decision 1 (IV) of the Committee on Manufactures,19 of those products of export interest to developing countries, which are affected by non-tariff barriers applied by socialist countries. 12.  Developed countries should provide the ad hoc group, directly or through the UNCTAD secretariat, with any information required for the attainment of its objectives, including copies of reports and any other material on non-tariff barriers and products which they supply to the GATT secretariat and to the secretariats of other international bodies conducting studies on this subject. The UNCTAD secretariat should seek all the information, which it requires for the continuation of its work, in the developed countries themselves, from the competent authorities or from private sources such as Chambers of commerce, importers, etc.

IV.  Adjustment assistance measures 13.  Developed countries should provide suitable adjustment measures and evolve programmes for adaptation and adjustments, including anticipatory adjustment, in specific industries in order to encourage expansion of imports from developing countries and to deal with problems that might arise for their industries and workers.

V.  Restrictive business practices 14.  In accordance with Conference resolution 25 (II) and resolution 51 (VII) of the Trade and Development Board, and paragraph 37 of the International Development Strategy, UNCTAD should expedite the identification and analysis of restrictive business practices adversely affecting the trade of developing countries and the consideration of appropriate corrective measures with a view to achieving concrete and significant results early in the Second United Nations Development Decade.

VI.  International sub-contracting 15.  Governments of developed countries should encourage their firms, especially those which have subsidiaries in developing countries or collaborating arrangements with firms in developing countries, to make the maximum use of sub-contracting in order to stimulate the expansion of trade in parts and components from developing countries. 16.  The UNCTAD secretariat and the UNCTAD/GATT International Trade centre should assist developing countries by undertaking, on a country-by-country basis, surveys for the identification 18

‘An analysis of the effects of non-tariff barriers in developed market-economy countries on selected products or product-groups of export interest to developing countries:  report by the UNCTAD secretariat’. 19 See Official Records of the Trade and Development Board, Tenth Session, Supplement No.2 (TD/B/295), annex I.

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of components and production processes, and the industries concerned, that are suitable for international sub-contracting to developing countries. In undertaking this task due account should be taken of the activities of other international organizations in this field and in particular UNIDO. 17.  To the same end, the Governments of developed countries should encourage their firms to extend technical assistance to firms in developing countries.

D.  Financial resources for development (a)  Total inflow of public and private resources (i)  Each developed country should provide annually, by 1972, to developing countries financial resource transfers of a minimum net amount of 1 per cent of its gross national product at market prices in terms of actual disbursements. (ii)  The 1 per cent target should exclude non-aid elements including private direct investment, and should net out reverse flows of interest. (iii)  Pending the acceptance of the proposed revision of the development assistance target, each developed country should progressively increase its official development assistance to developing countries so as to attain, by the middle of the decade, a minimum net amount of 0.7 per cent of its gross national product at market prices. (iv) Stability and continuity in the flow of assistance are important in enabling developing countries to plan their development ahead. It should therefore be recognized that domestic and international fluctuations should not be regarded as justification for reducing the volume of assistance. It should also be accepted that official development assistance should be programmed over the long term, so as to provide a firm basis for planning in developing countries. (b)  Volume, terms and conditions of the flow of public capital to developing countries (v)  The share of resources channeled through the multilateral financing institutions should be increased to the fullest extent possible. The World Bank should be converted into a development bank for the exclusive service of the developing countries. (vi)  The developing countries welcome the somewhat greater flexibility of the World Bank in relation to non-project lending and invite the Bank to expand programme lending, without prejudice to project lending, as a way of assisting developing countries in their overall development programmes. (vii)  Multilateral institutions are urged to increase their financing of the local costs of investment projects and programmes, and should examine ways and means of ensuring that a greater portion of procurement takes place in recipient countries. These institutions should be prepared to finance projects and programmes that may not be considered financially remunerative in the narrow sense but where the socio-economic impact on national development is clearly recognized. (viii) International institutions and developed countries should grant direct financial and technical assistance to those developing countries which might be encountering for reasons beyond their control, stubborn and protracted economic and financial difficulties which hamper their economic development. (ix) Developed countries are requested to increase their contributions to IDA. The third replenishment of IDA should be completed without any further delay. The existing mechanisms for replenishment of IDA should be reviewed so as to bring about a progressive expansion in the amount of resources available to IDA on a more stable and secure basis to ensure greater continuity and certainty in its operations. The lending policies of IDA should be more flexible and equitable. (IDA is requested to increase its financial support to the least developed among the developing countries.)

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(x) In order to make possible their increased participation in the financing of small and medium-sized projects, multilateral institutions should channel a greater proportion of their funds through national development banks, by employ in flexible conditions and taking other measures to strengthen these institutions. (xi)  The multilateral lenders should also refrain from discriminating in any way against the public sector of the developing countries, and should endeavour to grant adequate financing for technical assistance and for export promotion. (xii)  The Administrator of UNDP should use the powers given to him by paragraph 16 of the annex to General Assembly resolution 2688 (XXV), on the capacity of the United Nations development system, to scrutinize in the light of existing criteria for the allocation of resources and to adjust, where necessary, the indicative planning figures of the least developed countries and of newly independent countries whose lack of an adequate administrative structure has prevented them from taking proper advantage of the programme assistance. The Administrator should also implement Economic and Social Council resolution 1615 (LI) on financial contributions to UNDP in such a way as to reflect the new increased projection figures in the country programmes. Some flexibility should also be given to developing countries in the administration and allocation of UNDP funds within their country programming procedures. (xiii) UNDP should take steps to avoid situations arising in which developing countries, especially the least developed among them, lose resources through their inability to prepare acceptable projects. It should apportion its grants and technical assistance in such a way as to raise their absorptive capacity and assist in project preparation and should accordingly increase the resources made available to these countries. The Group of 77 also urges Governments of developed countries to increase their financial contributions to the Programme, so as to enable it to use as fully as possible its improved capacity to assist developing countries in reaching the objectives of the Second United Nations Development Decade. (xiv)  Urgent measures are required to soften further the terms and conditions of external assistance. The heavy burden of servicing the external debt of many developing countries is a matter of grave concern. In principle all official development loans should be provided on IDA terms. In any case there should be an immediate international agreement to accept the target for the terms of assistance suggested in decision 29 (II) of the Conference. Alternatively, interest rates on official development loans should not exceed 2 per cent per annum, maturity periods of such loan should be at least 25 to 40 years and grace periods should not be less than 7 to 10 years; the proportion of grants in total assistance of each developed country should be progressively increased. (xv)  Agreement should be reached on an early establishment of a multilateral interest equalization fund with a view to softening further the terms of development loan provided by multilateral financial institutions. (xvi)  The developing countries consider that immediate action is required to implement the principles regarding untying of development assistance contained in decision 29 (II) of the Conference. Developed countries should lay down a firm timetable for the complete untying of aid. Such complete untying in respect both of contributions to multilateral institutions and bilateral assistance should be achieved by 1975 at the latest. As an immediate measure, all developed countries should permit unrestricted procurement in all developing countries. Repayment of existing tied loans should be tied to purchases within the debtor country concerned. In addition action should be taken to eliminate the requirements sometimes imposed on developing countries to import from developed countries specified values of certain goods as a condition for the utilization of development assistance funds measures should also be taken to ensure that the underlying purpose of untying is not frustrated by indirect or informal typing.

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(c)  Foreign private investment in its relationship to development (xvii)  (Developing countries find a matter of concern not only the total amount of the financial out-flow brought about by private foreign investment but also its excessive utilization of local financial resources as well as the effects of certain marketing contracts among foreign companies that disrupt competition in the domestic or foreign markets and their possible effects on the economic development of the developing countries. Private foreign investment, subject to national decisions and priorities, must facilitate the mobilization of internal resources, generate inflows and avoid outflows of foreign reserves, incorporate adequate technology, and enhance savings and national investment.) (xviii)  Noting that some developing countries have experienced net capital outflow, developed countries should therefore take the necessary steps to reverse this tendency by fiscal and/or other appropriate measures such as tax exemption on reinvestments of profits and other earnings accruing to private capital investors. (d)  Special aspects of development finance: proposals regarding the question of a link between the allocation of special drawing rights and the provision of additional development finance to developing countries: supplementary financing (xix)  A link should be established between special drawing rights and additional development finance, as envisaged in the International Development Strategy. Developing countries consider this to be the most appropriate way of injecting new liquidity into the international monetary system. Such a link between the creation of liquidity and the transfer of real resources must benefit all developing countries equitably. These flows should take place (through IDA and regional development financing institutions.) A decision on the link between the increased international liquidity resulting from the creating of the SDRs and the provision of additional development finance for the developing countries should be reached in 1972. (xx)  IMF should create a special facility designed specifically to cover deficits resulting from the implementation of measures intended to liberalize trade among developing countries, providing that the drawing rights under this facility for this special purpose would be distinct from the ordinary drawing rights. (xxi)  A plan and a time target for the introduction of a scheme for supplementary financing should be adopted. Additional resources for that purpose should be made available in accordance with resolution 60 (IX) of he Trade and Development Board. (xxii)  IMF should give serious consideration to the suggestions of developing countries contained in Conference decision 31 (II) for the liberalization of the compensatory financing facility. In addition the compensatory financing facilities should be extended so as to enable developing countries to offset shortfalls in export earnings from groups of commodities or individual commodities. (e)  Problems of mobilization of internal resources of developing countries (xxiii)  The developed countries should refrain from taking any steps which may interfere, either directly or indirectly, with the full and efficient mobilization of the domestic resources, both land and marine, of developing countries. There must not be any external interference in the programme and priorities of the developing countries designed to achieve such mobilization. (f)  Outflow of financial resources from developing countries, including debt servicing (xxiv)  The criteria and procedures of rescheduling of external debts of developing countries particularly those with serious debt-servicing problems, should be reviewed and revised so as to ensure that the rescheduling of debts does not interfere with the orderly process of development planning in debtor countries and should be systematically designed to prevent both disruption of long-term development plans and need for repeated rescheduling. Where the indebtedness problems reflect structural imbalance, grace periods, interest rates and maturity periods in

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respect of rescheduled debts should be the same as those considered appropriate for basic development finance. Loan agreements should invariably contain a clause for postponement of debt repayments in situations of serious balance of payments difficulties such as those brought about either by an unexpected severe fall in exports or an unexpected increase in imports. (xxv)  Developed countries should accept the principle of assuming the responsibility for suppliers credits from companies registered in their territories and spread the repayment on easy terms, whenever necessary, in order to reduce the adverse effect of such credits on the balance of payments of developing countries. (xxvi)  Developed countries should ensure that export credits be granted to developing countries according to the criteria compatible with the objectives of planned development. (xxvii)  A special body should be created within the machinery of UNCTAD to find practical solutions to the debt-servicing problems of developing countries. Consultations should be held within such a body between representatives of debtor and creditor countries and international experts serving in personal capacity.

E.  Investment, including shipping Shipping 1.  Action is required for the early achievement of the following objectives: (i)  The development and expansion of merchant marines of developing countries so that they acquire a larger share in the world fleet commensurate with their share in world trade; (ii)  The achievement by the merchant marines of developing countries of an increasing, substantial and equitable participation in the carriage of maritime cargoes, and in earnings there from and the conclusion of maritime agreements for this purpose; (iii)  The promotion of the earnings of developing countries from maritime transport in order to reduce the outflow of foreign exchange from those countries arising from maritime transport; (iv)  The reduction of maritime transport costs and freight rates, which should be fixed at as low a level as is feasible to increase the exports of developing countries; (v)  Preparation and application of a code of conduct for the liner conference system which shall safeguard adequately the interests of shippers and national and/or multinational shipping lines of developing countries; (vi)  The elimination of any type of measure which would limit the access of developing countries to the use of means of maritime transportation which they may find appropriate.

I.  Development of merchant marines 2.  Developing countries should aim at establishing and expanding national and/or multinational merchant marines. The share of developing countries in the world merchant marine fleet has been declining instead of increasing and is insignificant as compared to their share in world trade. The aim should be that, at the end of the Second United Nations Development Decade, developing countries own at least 10 per cent of the world fleet as compared to 7.6 per cent in 1970. For this purpose the following steps have to be taken:

(A)  Acquisition of ships by developing countries (i) Availability of finance Developed countries and international financial institutions should substantially increase their financial and technical assistance to developing countries for the acquisition by these

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countries of new and second-hand ships for their national and/or multinational merchant marines.

(ii) Terms and conditions of credit (a)  Developed countries signatories to the OECD Understanding on Export Credits for ships, signed in May 1969, should review and modify the Understanding with a view to liberalizing the terms and conditions on which bilateral aid and commercial credits are made available by them to developing countries. (b)  Bearing in mind the economic problems of developing countries and their limited resources, ships should be sold to them by developed countries on the following minimum terms and conditions: i.  New vessels should be sold to the developing countries on deferred payment terms involving repayment over a period of 10 years after delivery of the vessels, with a suitable period of grace; ii.  Suitable second-hand vessels should be sold to the developing countries on deferred payment terms extending up to 8 years; iii.  The cash down payment up to the time of delivery of vessels sold to developing countries should not exceed 15 per cent of the price of the ship in the case of new vessels and 15 to 20 per cent of the price in the case of second-hand vessels; iv.  The rate of interest for such deferred payment should not exceed 5 per cent per annum. (c)  The Governments of developed countries should accept the guarantees given by the national financial institutions of the developing countries as adequate cover for the deferred portion of payments for vessels, both new and second-hand, purchased by developing countries.

(iii) Preferential sale of ships to developing countries In order to ensure the availability of new ships for the fleets of developing countries, so that they could acquire at least 10 per cent of the total world fleet by the end of the Second United Nations Development Decade, an adequate portion of the ships building capacity of developed countries should be earmarked for sale of ships to developing countries on a preferential basis.

(B)  Member of liner conference, including way-port trades 3.  Developed countries should take necessary action to ensure that liner conferences operating in the national maritime trade of developing countries admit national and/or multinational shipping lines of the developing countries concerned as full members and also consider favourable, fairly and on equal terms applications of the national and/or multinational shipping lines of developing countries for admission as full members on way-port trades subject to the rights and obligations of conference membership. National shipping lines of developing countries should be granted a fair and appropriate share of the full money and cargo pool and sailing rights in order to ensure that these lines operate economically and the conclusions of suitable maritime agreements to this effect should be accepted by developed countries.

(C)  Development of tanker and bulk carrier fleets 4.  Since tankers and bulk carriers constitute the main growth points of the world fleet, developing countries may give special attention to the establishment and expansion of bulk carrier and tanker fleets in order to realize their desired level of participation in world shipping. To assist developing countries in this task, special preferences should be given to tankers and bulk carriers owned by developing countries for the transportation of cargo exported to or imported from developed countries and for chartering by industrial companies in developed countries. Governments of developed countries should also urge other charterers to lay a special emphasis on granting charters to

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tramps, bulk carriers and tankers owned by developing countries on equal terms with all other ships.

(D)  Economic implications of terms of shipment 5.  Developed countries generally buy on f.o.b terms and sell on c.i.f terms in trade transactions with developing countries, owing to which importers or shippers in developed countries are in a position to nominate the carrier. The terms of shipment should be fixed in such a manner that developing countries are not placed at a disadvantage because of their operation.

(E)  Assistance, promotion and protection 6.  It is recognized that in order that developing countries may have an increasingly substantial participation in the carriage of maritime cargoes, especially those generated by their own foreign trade, they have the right to assist, to promote and to protect their merchant marines through the adoption of such measures as many bring them to a stage when they will be able to complete in the international freight market.

(F)  Multinational shipping enterprises 7.  Groups of developing should examine the feasibility of establishing multinational merchant marines, possibly on a regional or subregional basis, with a view, inter alia, to securing increasing participation in the carriage of maritime cargoes and in earnings therefrom.

(G)  Development and expansion of shipbuilding industries in developing countries 8.  Developed countries and international and regional financial institutions should grant financial assistance on favourable terms and give technical assistance for development and expansion of the shipbuilding industry in developing countries.

II.  Freight rates, conference practices and consultation machinery (a) Freight rates 9.  Recent widespread and frequent increases in freight rates by liner conferences have put serious strains on the exports of the developing countries. Progress in providing promotional freight rate, for non-traditional products from developing countries, has also been very slow. The increases in freight rates have been mainly due to inflation and sharp rises in port costs and cargo-handling expenses in the developed countries. 10. Developed countries should urge their shipping lines that, when considering any freight increases they should ensure that to the fullest extent possible the sensitive items in the trade of the developing countries are insulated from those increases. For this purpose, the feasibility of introducing f.i.o. rates and the implications thereof should also be investigated. In the determination and adjustment of liner freight rates, priority should be given to: (i)  The need to review, adjust and revise freight rates, which shippers and other interested parties, including public authorities, of developing countries consider to be high, bearing in mind the importance of as low a level of freight rates for the exports of developing countries as is commercially possible and the feasibility of providing special freight rate to promote exports from developing countries of non-traditional items and/or to non-traditional markets; (ii)  The need to avoid freight rates set at levels which cannot be justified by the normal criteria for freight rate structures and also to avoid freight rates and conference practices which

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have the effect of frustrating the export of product from a developing country while encouraging the export of the same product from another country served by the same conference; (iii)  Port improvements, including improvements in port management, leading to a reduction of the cost of shipping operations in ports; (iv)  Technological developments in maritime transport; (v)  Improvements in the organization of trade.

(b)  Action by liner conferences on freight rates 11.  The liner conferences and equivalent bodies should: (i)  Give adequate prior notice of a minimum of six months when proposing general freight increases, and a minimum of three months, notice for increases in freight on individual commodities; for this purpose, if the exports of a country largely consist of a commodity, the freight rate increase for such a commodity should be regarded as a general increase. In all events, a minimum period of two months must elapse between the conclusion of an agreement on a freight rate increase and the date when it is brought into force; in the case of disagreement, a period of at least six months should elapse before the increase in freight rates is effected; (ii)  Provide all relevant information, including the data on costs revenues on individual trade routes for the member lines; (iii)  Give adequate opportunities for full and detailed discussions with shippers, shippers council and equivalent bodies, on all matters of common interest, including freight increases, adequacy of shipping services, and economic operation of shipping services; (iv)  Ensure that Governments of the developing countries concerned are fully involved in consultations and decisions on all matters affecting freight rates and conditions of the carriage of cargo in their respective trades; (v)  Work out freight rates resolve other difficulties of shippers in a manner compatible with the export interests of the developing countries concerned; (vi)  Ensure stability in freight rates, avoiding general increases in freight rates at intervals of less than two years; (vii)  Liner conference should institute promotional freight rates after due consultations for exports from developing countries of non-traditional items and/or to non-traditional markets.

(c)  Consultation machinery 12.  Every effort should be made to encourage the institution and operation of shippers councils or equivalent bodies, and the establishment of effective consultation machinery. In particular, such machinery should provide for consultation by liner conferences with shippers organizations and government authorities in developing countries well before the public announcement of changes in freight rates. 13.  Furthermore, it is necessary that representatives of liner conferences in developing countries should be appointed and given sufficient powers to negotiate and make decisions upon appropriate matters within their competence; in this way consultations concerning the trade of developing countries can be held as often as practicable in the developing countries concerned. In this regard, it is observed that many liner conferences have not yet designated any adequately empowered representatives, even though many developing countries have established shippers councils for holding consultations. 14.  Efforts should be directed to the establishment of national, regional and subregional shippers councils, which can further stimulate the development of national shippers councils and also play a useful part in consultation with ship owners at the regional and subregional level.

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The United Nations regional economic commissions, other regional organizations and UNCTAD can play an important role in promoting the development of regional and subregional associations of this kind. In this connexion, each regional economic commission or the relevant regional organization may convene regional conference of shippers organizations and other shippers interests which could consider what form of regional and subregional machinery would be appropriate. 15.  During the process of consultation special attention should be given to the need to promote interregional trade of developing countries. 16.  The UNCTAD secretariat should study the establishment of a model ‘note of understanding’ between liner conferences and national, subregional and regional shippers councils of developing countries, with general guidelines and possible variations. The secretariat should also collect information about the efforts made by developing countries on a national, regional or subregional level to establish consultation machinery and the response of liner conferences and developed countries in this respect.

III.  Code of conduct for the liner conference system 17.  It is necessary that further improvements be made in the liner conference system and that all unfair and discriminatory practices, where such exist, be eliminated. Detailed information about costs and methods of freight rate fixing is essential for the efficient functioning of negotiations between liner conferences, shippers and other interested parties. Furthermore, it is essential that liner conferences observe and be seen to observe known principles of fair practice, particularly in the trades of developing countries, which should take full account of the needs of suppliers and users of shipping services and in particular of the needs of economic development. 18.  It is noted that the Governments of some developed countries, at the meeting of Western European and Japanese Ministers of Transport held at Tokyo in February 1971, have directed their conference lines to undertake preparations of a code of practice. It is a cause for concern that such a code prepared without direct involvement of the developing countries will not fully meet their needs and interests. Member States of UNCTAD should undertake the preparation of a ‘code of conduct’ which particularly takes into account the trade and development needs of the developing countries and is designed to enable the shipping lines of the developing countries to have an increasing and substantial participation in the carriage of maritime cargoes. 19.  Developing countries participating in the third session of the UNCTAD Working Group on International Shipping Legislation should fully take into account the report by the UNCTAD secretariat entitled The regulation of liner conferences (a code of conduct for the liner conference system) (TD/104)20 and also consider, where appropriate, the meeting of the Western European and Japanese Ministers of Transport. 20.  It is recommenced that the UNCTAD Working Group on international Shipping Legislation, during its consideration of conference practices at its third session, should prepare for consideration by UNCTAD at its third session a draft code of conduct which will take into account the interests of developing countries and which will be universally acceptable to liner conferences. 21.  The code of conduct for the liner conference system should provide for the restructuring of conference agreements in such a manner that the decision making procedures fully reflect the share, the role and the interest of the national shipping lines of developing countries in their national trade. It should also be recognized that, for the purpose of evaluating the cost of 20

United Nations publication, Sales No.E.72.II.D.13 and corrigendum (TD/104/Rev.1 and Corr.1).

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operations of liner conferences, the round voyage of ships from to the developing countries concerned should be viewed in an integrated manner so as to ensure that the value of goods is adequately reflected in the process of freight rate fixation. 22.  It is further recommended that the code should be adopted by the Governments of all countries in a manner that is binding on them and can be suitably enforced.

IV.  Development of ports 23. A  concerted national and international effort should evolve to promote the development and improvement of ports. As part of this effort, there should be a considerable enlargement of financial and technical assistance to developing countries both for increasing the capacity and degree of sophistication of port facilities and for improving the organization, management and operation of their ports. 24.  Ship owners and liner conferences should cooperate closely with port authorities, especially in developing countries, so as to make effective use of port improvements. Port improvements should benefit the country in which the port is located, by being reflected in lower freight rates. 25.  The regional economic commissions, relevant regional organizations and regional financial institutions should be enabled through adequate funding to assist in port and related inland transport development in an appropriately integrated fashion, with support, as necessary, from the UNCTAD secretariat. Such assistance should be directed towards: (i)  Convening regional and subregional seminars and conferences on the problems of port development and organization; (ii)  Establishing, in cooperation with the ILO and UNCTAD and Governments, subregional or zonal training institutions for all levels of port labour and management; (iii)  Forming zonal and sub-zonal associations of ports and harbours and promoting the concept of sister ports, in order to combine their efforts to facilitate further development and improvement of ports.

V.  International shipping legislation 26.  The economic and commercial aspects of international legislation and practices in the field of shipping should continue to be reviewed within the machinery of UNCTAD with the object of securing a balance of interests between the cargo-owner (shipper) and the carrier (ship owner) and from the standpoint of their conformity with the needs of economic development, in particular of the developing countries, in order to identify areas where modifications are needed. Recommendations for such modifications should be submitted to the United Nations Commission on International Trade Law (UNCITRAL) for the drafting of new legislation, amendments or other appropriate action. The subjects to be considered in this review shall include bills of landing, liner conference practices, charter parties, general average, marine insurance and such other matters as the Committee on Shipping or the Working Group on international Shipping Legislation itself may decide to consider. 27.  Furthermore, the third session of the United Nations Conference on Trade and Development shall take account of the report of the Working Group on International Shipping Legislation on its third session, as agreed by the Trade and Development Board at its eleventh session.

VI.  Technological progress in shipping 28.  Recent technological developments in shipping particularly the trend towards cargo unitization could have significant efforts on the conditions under which imports and exports of the developing countries are transported. There is still uncertainty as to the most appropriate form of

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cargo unitization in different trades. It is therefore difficult for the developing countries to know which type of ship should be adopted in the programme of fleet expansion or replacement. At the same time, the developing countries will be required to make heavy investments in improving port facilities and even for adapting their inland transport, rail and road communications. This trend would also effect development of shipping and trade within the region. There are also important social implications of introducing labour-saving cargo-handling methods. 29.  Developed countries and international financial institutions and other organizations concerned should extend financial and technical assistance to developing countries in order to enable these countries to benefit from technological progress in the field of shipping. 30.  Developed countries, in encouraging or assisting technological development in the field of shipping, should keep fully in view the possible implications of these developments for developing countries in order to minimize adverse effects of such technological developments on the trade and development efforts of developing countries. 31. Thorough study should be made through the regional economic commissions and the UNCTAD machinery of all economic, technological and organizational progress in shipping, with particular reference to developing countries, before final decisions are made by national authorities.

VII.  Inter-modal transport operations 32. A  thorough study should be made of the economic implications of the proposed TCM Convention, particularly in relation to the developing countries, in accordance with paragraph 6 of Economic and Social Council resolution 1568 (L), and the study should be fully considered by the Committee on shipping of UNCTAD. 33. A  convention on this subject should not be adopted until the developing countries have acquired the necessary experience for inter-modal transport, until this form of transport has been extended to a substantial number of world maritime trade routes and until all the implications as regards needs of maritime transport, trade and economic and social development are known to the developing countries.

VIII.  Manpower requirements and training facilities 34.  Technical and financial assistance should be given to developing countries by developed countries and international organizations, so that developing countries may study their maritime training requirements in order that their personnel may receive required training, including training in the management of shipping enterprises and ports, and/or that the countries concerned may develop required training facilities at national, regional or subregional levels.

IX. Implementation 35.  In order to achieve these objectives and facilitate necessary action by Governments, ship owners and shipper, Governments of both developed and developing countries should: (i)  Ensure by legislative and other appropriate means that UNCTAD decisions are carried out by all interests concerned, namely national authorities, shippers and ship owners; (ii)  Ensure that UNCTAD resolutions and recommendations are effectively brought to the notice of all interests concerned; (iii)  Keep the agreed objectives in shipping and ports under review within the machinery of UNCTAD in the context of the measures recommended in this programme of action. Additional measures to attain the objectives should also be considered by UNCTAD and the regional economic commissions in due course.

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36.  It is essential that this programme of action be incorporated in a comprehensive statement on shipping and ports to be adopted at the third session of the United Nations Conference on Trade and Development, which shall lay down the strategy for future developments in this field and which shall supersede the Common Measures of Understanding adopted at the first Conference.

Insurance 37.  The principle is affirmed that developing countries have the right to take steps to facilitate the absorption by their domestic insurance markets of an increasing and substantial part of insurance operations generated by their economic activities, including their foreign trade. To this end: Developing countries should take, when necessary appropriate measures: (a)  Adopt necessary measures to reduce the cost of and reinsurance markets at the national, regional and/or subregional levels, including the establishment and development of insurance and reinsurance institutions and the application and improvement of system of insurance legislation and supervision; (b)  To ensure that their national insurance companies absorb the demand for insurance generated by their economic activities, including foreign trade, which is at present absorbed by foreign insurance companies; (c)  To ensure that a substantial part of the technical reserves of insurance and reinsurance companies remains in the countries in which their premium income originates for the purpose of reinvestment in those countries; (d)  To establish closer cooperation between their reinsurance institutions on a regional and/ or subregional basis. 38.  Developed countries should: (a)  Adopt necessary measures to reduce the cost of insurance and reinsurance services to developing countries and to provide better insurance and reinsurance terms, while maintaining the cover normally offered; (b)  Urge their nationals, when they invest in developing countries, to use the insurance services of those countries national companies as a first priority; (c)  Accept guarantees given by the governments of developing countries for the repayment of loans received by either private sector or government organizations as sufficient and requiring no additional guarantees by the insurance companies of the lending countries; (d)  Utilize the national insurance companies of recipient countries for insurance on goods transported under loan procurement; (e)  Urge their insurance and reinsurance institutions to retain a substantial part of their technical reserves in the countries in which their premium income originates for the purpose of reinvestment in those countries; (f)  Extent all possible financial and technical assistance to developing countries to build up their insurance and reinsurance facilities and to achieve the other objectives of this programme of action, including assistance for evolving appropriate insurance legislation, for developing systems of supervision, for training of insurance personnel and for research; (g)  Refrain from adopting any measures, which might limit or hamper the achievement of the objectives of this action programme and urge their insurance and reinsurance institutions to cooperate fully in the achievement of these objectives. 39.  International and regional financial institutions should provide assistance to developing countries in their efforts to build up their national, regional and/or subregional insurance and reinsurance facilities.

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40.  The UNCTAD secretariat should: (a) Provide, within the framework of UNDP, technical assistance, including training, to developing countries upon request for the purpose of implementing this programme of action; (b)  Carry out a study regarding the basis on which reinsurance funds might be established at the regional level among the reinsurance institutions of developing countries so that an ever-increasing proportion of the reinsurance generated by regional imports can be absorbed by the reinsurance facilities of the region.

Tourism 41.  Earnings from tourism can constitute an important item in the developing countries balance of payments. The availability of financial resources and technical assistance to enable these countries to develop their tourism infrastructure constitutes a highly favourable area for international cooperation. 42.  The developed and developing countries and appropriate international organizations should take coordinated action in the following areas of particular importance to developing countries: (a)  Simplification of travel formalities and encouragement of travel to developing countries; (b)  Provision of technical and financial assistance to developing countries including grants and credits on easy terms for specialized tourist services, particularly the hotel industry, and for building the infrastructure vital to the development of tourism; (c)  Studying the possibility of establishing preferential reduced rates on air routes to developing countries in order to increase the flow of tourism to these countries, duly taking into account the need to ensure an adequate yield to international carriers of developing countries and bearing in mind the substantial saving in travel costs resulting from the introduction of high capacity and faster aircraft; (d)  Training of personnel for the planning of tourist facilities and the management of tourist industries. 43.  The developing countries should prepare a common strategy, particularly on a regional or subregional basis, in the formulation of long-term plans for development of tourism. Developed countries for their part should facilitate the travel of their residents to developing countries by promoting publicity campaigns to this end, by eliminating foreign exchange restrictions on tourism and by granting duty-free entry for local products, handicrafts and traditionally produced goods acquired by their residents in the course of travel abroad for the purpose of tourism. 44.  Developed countries should recognize the need for the developing countries to develop their airlines and to that end should make available financial and technical assistance that would strengthen the viability of those airlines. 45.  This programme of action shall not prejudice any conclusions which may be reached on the subject of tourism by the UNCTAD Committee on Invisibles and Financing related to Trade at its fifth session (Geneva, December 1971).

F.  Trade relations among countries with different economic and social systems The socialist countries of Eastern Europe should: (a)  Devise positive measures in favour of all developing countries to implement Conference resolution 15 (II) and the joint declaration made by the socialist countries of Eastern Europe in the Special Committee on Preferences and establish a firm and definite timetable for the implementation of these measures. (b)  Take positive action to specify the operational measures to be adopted and the products covered under their lists of preferential treatment for products from developing countries;

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(c)  Intensify the dissemination of information on the possibilities of imports from the developing countries, notably by the organization of seminars, symposia and training courses, as well as assist the export promotion efforts of the developing countries; (d)  Take into account in their economic development plans the existing and potential production and exports of the developing countries, as well as the diversification projects of the developing countries; (e)  Intensify the economic, financial, scientific, technical and other forms of cooperation with the developing countries, aiming at developing the industrial structure and increasing the exports of the developing countries, especially the least developed among them, in such a manner that the greatest possible number of developing countries could benefit from such cooperation; (f)  Implement measures adopted by the United Nations organizations, particularly UNCTAD, to stimulate the transfer of technology to developing countries on fair and reasonable terms; (g)  Upon the request of the developing countries concerned, take steps to extend industrial cooperation in trade with these countries with a view to concluding industrial cooperation arrangements, such as co-production, sub-contracting deliveries in the framework of licensing arrangements and supplementing of production capacities; (h)  Accept manufactured goods from the developing countries in repayment of credits; (i)  Take positive action to offer more favourable terms of trade to products from developing countries, especially in respect of terms of payments and grade equalization, e.g., by setting up mutually agreed multilateral payments arrangements with developing countries, with a view to facilitating trade settlements; (j)  Take positive measures not to re-export products from developing countries without the consent of the latter; (k)  Ensure that any efforts for the development and expansion of their trade with developed market-economy countries will not adversely affect the trading possibilities and trade expansion of developing countries.

G.  The transfer of technology I.  Action at the third session of the Conference The third session of the United Nations Conference on Trade and Development should take action, to be carried out jointly with, and as part of, the International Development Strategy, to facilitate the adequate transfer of technology to developing countries on reasonable terms and conditions and to create the necessary infrastructure for the technological development of developing countries.

II.  Imported technology (a)  Identification of the appropriate technology 1. Developed countries and competent international organizations should assist developing countries when requested in identifying the technologies best suited to their economic and social circumstances and requirements, in particular by placing at their disposal all the information relating to the range of technologies available for each sector. To this end, every developed country should, inter alia, designate an institution to provide information services on the subject, to supplement arrangements of an institutional nature, which may be adopted by the developing countries.

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(b)  Access to appropriate technology 2.  Developed countries should provide the greatest possible access to the available range of patented and non-patented technologies on fair and reasonable terms and conditions, without any restrictions likely to hamper the expansion of industry of exports, without discrimination between developing countries, and on a preferential basis. 3.  Governments of developed market-economy countries should: (i)  Make every effort to persuade their enterprises to transfer their technology to developing countries on favourable terms, and should provide to those enterprises the necessary fiscal and financial incentives to facilitate such a transfer; (ii)  Promote the elimination of restrictive practices in the sharing of markets and the fixing of prices; (iii)  Take steps to encourage and promote the transfer of the results of the work of research institutes and universities in the developed countries to the corresponding institutions in the developing countries. (iv)  Encourage their enterprises: (a) To allow the use of patents on the best possible terms, in order to enable manufactures from developing countries to compete effectively on world markets; (b) To employ local labour, experts and technicians as well as to utilize local raw materials when technology is transferred by the establishment of wholly-owned subsidiary enterprises, or by general licensing agreements or contracts involving large sums and completely at the contracting party’s risk or turn-key contracts, and also to contribute to the development of know-how and technical expertise by training staff in the developing countries, so that foreign staff may be replaced as soon as possible and by transferring the specifications of the raw materials and technological processes utilized in their production to national technicians and appropriate organizations in charge of industrial development. 4.  Governments of developed socialist countries of Eastern Europe should in accordance with their economic and social system make the necessary efforts to achieve the same ends. 5.  Competent international organizations should facilitate the transfer of technology to developing countries by setting up appropriate multilateral institutions such as technology transfer centers, patent banks, a world bank for technology, and technological information centers. 6.  In order to improve the conditions under which developing countries have access to technological know-how and processes and to eliminate restrictive business practices in the field of transfer of technology, including the practices adopted in this respect by multinational companies, the Secretary-General of UNCTAD should: (i)  Carry out a study concerning the review of international patent legislation; (ii)  Elaborate the bases for new international legislation regulating the transfer from developed to developing countries of patented and non-patented technology, including related commercial and legal aspects of such transfer.

(c) Cost of transfer 7.  Developed countries should encourage the adoption of measures to reduce the cost of transferring technology to the developing countries inter alia by exempting the recipients of royalties in developed countries from taxation. 8.  Developed countries and competent international institutions should devise bilateral or multilateral arrangements to facilitate negotiations concerning the transfer of technology on

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reasonable terms and conditions without causing strain on the balance of payments of developing countries. 9.  Competent international organizations such as UNCTAD and UNIDO and the World Intellectual Property Organization (WIPO) should give effective implementation to their pledge to cooperate with one another as regards action to the benefit of developing countries. In this connexion, the secretariats of UNCTAD and UNIDO should cooperate with the WIPO secretariat in its studies of mechanisms for multilateral rounds of negotiations on technology, and especially in the study of the proposal in document PC/EC/VII/16 submitted to the Executive Committee of the Paris Union at its seventh ordinary session in 1971,21 which is intended to allow developing countries as complete a knowledge as possible of the supply side of the international market for technology.

(d)  Application of technology 10.  Developed countries and competent international organizations should: (i)  Assist developing countries to operate effectively imported techniques and equipment; (ii)  Provide the supplementary information and technical assistance required for their operations, such as training in the planning and management of enterprises and in marketing.

(e) Adaptation of technology 11.  Developed countries should: (i)  Assist in the application of technology and in its adaptation the production structures and economic and social requirements of developing countries: (ii)  Encourage private enterprises, by providing them with appropriate incentives, to undertake similar activities; (iii)  Take immediate steps, in addition to other measures contained herein, to d raw up and implement a special programme, upon request, for the adaptation of imported technology to the needs of developing countries, employing for this particular purpose any unutilized capacity in their research facilities.

(f) The least developed among the developing countries 12.  The special position of the least developed among the developing countries shall be taken into account. To this end, the international community shall: (i)  Cooperate with such countries, for instance by the establishment and/or consolidation of information centers and applied technology institutes; (ii)  Furnish the specialized institutions of these countries with the results of research applicable to their economic development; (iii)  Give special consideration to the terms, conditions and costs of transfer of technology to the least developed among the developing countries.

III.  National technology 13.  Measures to create technology in the developing countries should be taken at the national, regional and international levels.

21

‘Proposal for a patent licensing convention: further observations by Brazil.’

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(a)  Action by the developing countries at the national level 14.  At the national level, the developing countries should: (i)  Apply the provisions of paragraph 61 of the International Development Strategy for the Second United Nations Development Decade; (ii)  Readapt their education and training systems to the needs and demands of a progressively developing economy and society; (iii) Create the necessary infrastructure for development in the fields of science and technology; (iv)  Develop an efficient infrastructure geared to the specific socio-economic needs of each country as a solid basis for the adoption and/or adaptation of imported technology, the creation of national technology and the application thereof.

(b) Action by developing countries at the regional and international levels 15.  At the regional level, the developing countries should: (i)  Make appropriate institutional arrangements for exchanging experience in the field of the transfer of technology, including arrangements for the training and exchange of technical personnel; (ii)  Endeavour to coordinate their policies with regard to imported technology, including its adaptation; (iii)  Establish joint technological research centers for projects of regional interest and for exchanging between developing countries within the region, adapted or recently developed imported technology; (iv)  Facilitate exchange of information by the establishment of regional or subregional information centers. At the international level, the developing countries should: (i)  Assist the transfer of technology by exchanging information concerning their experiences in acquiring, adapting, developing and applying imported technology; (ii)  Set up machinery to facilitate the dissemination and exchange of national technologies originating in the developing countries, so that the comparative advantages and specialization offered by each sector of activity may be fully utilized; (iii)  Promote the study of scientific and technological projects between developing countries with common technological requirements arising from similarities in their sectoral structure of production.

(c)  Action by developed countries at the international level 16.  At the international level, the developed countries should: (i)  Take urgent measures to implement fully the provisions of paragraph 63 of the International Development Strategy for the Second United Nations Development Decade; (ii)  Devote 0.05 per cent per annum of their gross national product to the technological problems of developing countries; (iii) Allocate at least 10 per cent of their research and development expenditure to programmes designed to solve specific problems of general interest to the developing countries, and as far as possible devote that expenditure to projects in developing countries;

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(iv)  Apply fiscal and other incentives to encourage their national private enterprises to transfer to their associated enterprises in developing countries a substantial and increasing volume of their research activities; (v)  Strengthen efforts to develop national technologies in developing countries, by creating the necessary infrastructure for development in the field of science and technology.

(d) Action by international organizations 17. International organizations, particularly UNCTAD, should prepare and implement programmes to promote the transfer of technology to the developing countries, in accordance with paragraph 64 of the International Development Strategy for the Second United Nations Development Decade. 18.  The United Nations and its system of organizations and agencies and in particular UNCTAD should help in the achievement of these objectives and in particular should: (i)  Bring to an acceptable conclusion and thereupon implement the World Plan of Action of the United Nations,22 (ii)  Assist the developing countries to create the necessary infrastructure, as regards both institutions and personnel, for the development of national technology; (iii)  Coordinate their efforts and programme for the support of science and technology at the regional and international level; (iv)  Place more resources at the disposal of the United Nations Economic and Social Office in Beirut (UNESOB) and the regional economic commissions of those regions, which deem it necessary to enable them to carry out fully their role in the application of science and technology to development within the regions. 19.  International organizations, in particular UNCTAD, UNIDO, WIPO, the regional economic commissions. UNESOB and specialized agencies should, when requested, provide technical assistance to developing countries in matters concerning the negotiation of contracts for the transfer of technology. 20. International organizations and financing programmes, in particular UNDP and IBRD, should give the highest priority to economic assistance to meet the needs as defined by developing countries in the field of technology, particularly in connexion with the development of a basic infrastructure including the training of personnel and the establishment or strengthening of extension services for the applications of science and technology to production units.

H.  Special measures for the least developed among the developing countries and land-locked developing countries Identification and general considerations 1.  The identification of the least developed among the developing countries is the prerequisite for the formulation of any concrete action programme in favour of them in order to overcome their particular disabilities and to enhance their capacity to benefit fully and equitably from the policy measures adopted for all developing countries. 2.  The Second Ministerial Meeting of the Group of 77 confirms, without prejudice to future consideration, list of countries identified as the hard-core least developed countries approved by the Trade and Development Board at its eleventh session,23 which should provide useful guidance 22 23

World Plan of Action for the Application of Science and Technology to Development. See Trade and Development Board resolution 82 (XI).

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for action by governments and international organizations concerned. This initial list of hard-core least developed countries should be reviewed in the light of future work on this matter. 3.  In this connexion, the Ministerial Meeting of the Group of 77 takes note of the arrangements made within UNCTAD under Trade and Development Board resolution 82 (X) for the review of criteria now being used for the identification of the least developed countries and for work on criteria for the identification of the relatively disadvantaged countries in the context of a geographic region and taking into account the existence of critical major economic sectors. 4.  In further work in the field of identification of the relatively disadvantaged countries, for whom appropriate measures should be promptly formulated in accordance with Conference resolution 24 (II), account should also be taken, through consultations with the corresponding regional secretariats, of the studies and recommendations of the regional economic commissions, taking into account the special treatment that may already be accorded to these countries under regional and subregional agreements. 5.  Any special measure taken in favour of the least developed countries would be supplementary to the general measures applicable to all developing countries. 6.  Action or special measures taken in favour of the least developed countries must not result in injury or prejudice to the interests of other developing countries but should ensure due and equitable benefits in favour of the least developed among them. 7.  While every effort should be made to evolve further satisfactory criteria for the identification of the least developed countries and to identify such countries, urgent action should be taken, bearing in mind the provisions of resolution 24 (II), to formulate and implement special measures in favour of the countries so far identified to ensure the sustained economic and social progress of those countries and to enhance their capacity to benefit fully and equitably from the policy measures of the International Development Strategy and particularly in the following areas;

Issues in specific fields I. Commodities (a)  Commodity agreements 8.  Special consideration should be given to the least developed among the developing countries with regard to the operation of commodity agreements within their respective frameworks in such matters as allocation of quotas and exemption from quota cuts and in the payment of dues and subscriptions, bearing in mind the characteristics of each commodity and taking into account the interests of the other parties concerned. 9.  In pre-financing of buffer stocks, the least developed countries should be exempted and their contribution should be provided by developed countries and/or international financial institutions on the basis of grants.

(b) Diversification 10.  Measures should be taken by the developed countries and organizations and bodies of the United Nations system to encourage the establishment of industries for the processing of the locally produced foodstuffs and raw materials.

(c)  Access to markets 11.  Any action or special measures taken in favour of the least developed countries should ensure that the trade interests of the other developing countries are not injured or prejudiced in any manner.

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12.  The highest priority should be accorded to the solution of problems affecting primary commodities, including processed and semi-processed products of the least developed countries. In the current and future multilateral negotiations on liberalization of tariff and non-tariff barriers such preferential treatment should be given to the least developed countries, bearing in mind paragraph 6 of section II of recommendation A.II.1 of the first session of the United Nations Conference on Trade and Development. 13.  Revenue duties and other fiscal charges on the consumption of tropical products of developing countries, especially those of special interest to the least developed countries, should be eliminated or reduced and at the same time special financial assistance should be provided to the least developed countries based on a certain proportion of the proceeds derived from revenue duties still in force. 14.  Developed countries are requested to abandon domestic support policies adversely affecting the interests of the least developed countries. 15.  Intensive technical and financial assistance should be provided to help remove the internal institutional and structural obstacles to industrialization and to the promotion of both import substitution and the establishment of export-oriented industries. 16. Eliminate urgently the quantitative restrictions and other non-tariff barriers (e.g. border taxes, customs procedures, public health and administration regulations) affecting the processed and semi-processed products of the least developed countries. 17.  The scheme of the generalized system of preferences (GSP) should be extended for a long enough period for the least developed countries to derive equitable benefits. 18.  The scheme should include all processed and semi-processed agricultural and mineral and handicraft products of export interest to the least developed countries. 19.  Escape clauses should not apply to the least developed countries. 20.  In the application of all criteria of rules of origin for the implementation of the generalized system of preferences, the special situation and the low level of industrialization of the least developed countries should be taken fully into account. 21.  Developed countries should take fully into account section V of the agreed conclusions of the Special Committee on Preferences relative to the least developed among the developing countries. 22.  It is specially necessary in respect of the least developed countries to apply the principle accepted at the first Conference that at least equivalent advantages must be granted to developing countries that lose their special preferences in certain developed country markets.

II.  Restrictive business practices 23. Identification and elimination of all restrictive business practices adversely affecting the interests of the least developed countries.

III.  Development finance and technical assistance 24. The developed countries should fulfil the commitments undertaken in the International Development Strategy and other instruments with regard to the volume and modalities of financial aid, in order better to meet the needs of the least advanced countries. 25.  The international community should ensure that within the general aid strategy the needs of the least developed countries are given special attention, either by the acceptance of specific targets for contributions to their development supported by a machinery for implementation or by the establishment of programmes in terms of specific objectives to be achieved which donors should agree to underwrite. 26.  In extending technical assistance to the least developed countries special attention should be given to difficulties experienced by these countries in meeting counterpart requirements. Bilateral

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and multilateral agencies should consider as a matter of high priority granting complete exemption of those requirements in respect of the least developed countries. 27.  The developed countries are urged to increase their contribution to UNDP as envisaged in General Assembly resolution 2688 (XXV). 28.  High priority should be given to an immediate revision of the system of allocation of UNDP resources with a view to enabling the least developed countries, which for historical reasons have started late in their national planning and programming, to derive equitable benefit from the resources of the programme. 29. While technical assistance has an especially crucial role to play, financial assistance stands out as one of the basic requirements for the accelerated growth of the least developed countries. Being at a very early stage of development, they require large-scale investments in costly infrastructure of all types. As a consequence, their need for financial assistance on concessional terms as provided in the International Development Strategy is far greater than can be assumed from the size of their population. Urgent attention should therefore be given to increasing substantially the flow of resources from IDA to the least developed countries, and the developed countries are invited to keep this purpose in mind when making contributions to IDA. 30.  Developed countries should ensure stability of prices of their exports to developing countries, especially the least developed among them. In the event of increases of prices the developed countries should agree to compensate the developing countries, particularly the least developed ones, for any losses resulting from such price increases. 31.  In general, all forms of financial and technical assistance to the least developed countries should be tested by the criterion whether they contribute to fuller mobilization of indigenous resources so as to ensure that it does not simply reinforce the enclave nature of so much foreign investment and even foreign aid. This could be achieved by: (a)  Larger contributions towards local costs; (b)  Use of indigenous facilities and training of local counterparts; (c)  Development of enterprises that finally will transfer ownership and management; (d)  Ensuring that the assistance is not guided solely by financial criteria, but that consideration is given to the long-term social rate of return, including secondary effects, from development projects; (e)  Improving the level of productivity, especially that of foodstuffs; (f)  Ensuring that the least developed among the developing countries should receive a substantial contribution from existing IDA resources and from those of UNDP. 32.  All financial assistance should be stable and cover the requirements of development plans of the least developed countries. Consortia of donors should be set up in order to review the financial needs of each least developed country with a view to meeting those needs. 33.  In the light of the relevant decisions of UNCTAD at its second session, financial assistance will, in principle, be united. While it may not be possible to untie assistance in all cases, developed countries will rapidly and progressively take what measures they can in this respect both to reduce the extent of typing of assistance and to mitigate any harmful effects for all developing countries, with special attention to the least developed among them.

IV.  Creation of a special fund 34.  With a view to assisting the least developed among the developing countries to benefit equitable from the general measures taken or envisaged within the framework of the International

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Development Strategy for the Second United Nations Development Decade in favour of all developing countries, the Group of 77 decides to recommend to the General Assembly of the United Nations to create as soon as possible a special fund in favour of the least developed among the developing countries to enable them, inter alia, to: A.  1. Take specific measures to encourage the establishment of industries for the processing of the locally produced foodstuffs and raw materials; 2. Diversify their range of products and raise their productivity through research and the use of modern techniques of production and distribution so as to improve the quality, grading, packaging and marketing of their commodities; 3. Assist these countries to make appropriate changes in their economic structure through diversification of existing structures of production and trade; 4. Assist these countries to start and accelerate their process of industrialization and in particular the establishment and development of industries likely to further the export of products included in the generalized system of preferences so as to ensure that all developing countries will benefit equitably from the GSP. B.  The resources of the fund will be derived from voluntary contributions from developed countries and international financial institutions. C.  Requests the Secretary-General of UNCTAD to submit to the third Conference a statute on the institutional arrangements for the administration of the fund.

V.  Transfer of technology 35.  In the fields of: (a)  Identification of the appropriate technology; (b)  Access to appropriate technology; (c)  Cost of transfer; (d)  Application of technology; (e)  Adaption of technology; The state of development and the special position of these countries shall be given special consideration. To this end, the international community shall: (i)  Cooperate with such countries, for instance by the establishment and/or consolidation of information centers and applied technology institutes; (ii)  Furnish the specialized institutions of these countries with the results of the research applicable to their economic development; (iii)  Give special consideration to the terms, conditions and costs of transfer of technology to the least developed among the developing countries.

VI. Shipping 36.  Developed countries and competent international institutions should devote special attention to the needs of these countries in the field of shipping and ports in extending development finance on concessional terms. Owing to poor port facilities in many of the least developed countries, technical and financial assistance on concessional terms in this field should be accorded special priority. 37.  Liner conference freight rates should be set at levels not detrimental to the interests of least developed countries. For this purpose governments of developing and developed countries shall request participants in the consultation machinery between ship owners and shippers to pay spe-

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cial attention to the problems of the least developed countries and to accord them special treatment in the fixing of rates and conditions for transport. 38.  High priority should be accorded to the application of promotional freight rates for non-traditional exports of interest to the least developed countries. Consideration should also be given, after necessary studies, to making deeper cuts in freight rates for such exports.

VII.  Trade promotion 39.  Developed countries should undertake specific import promotion measures favouring the least developed countries, e.g., by subsidizing the organization and running of, and participation in, trade fairs, advertising campaigns, the exchange of trade missions and the establishment of direct business contacts and other measures designed towards export promotion. Adequate technical and financial assistance should be provided for the strengthening of national, subregional and regional promotional institutions. 40.  Technical and financial assistance should be provided to promote research aimed at finding new end-uses for primary products, particularly those facing competition from synthetics and substitutes.

VIII.  Institutional arrangements 41.  The Secretary-General of UNCTAD should present to the third session of the United Nations Conferences of Trade and Development a detailed and comprehensive action programme for the Second United Nations Development Decade in favour of the least developed among the developing countries, and in this connexion take into account the work of other United Nations bodies and the suggestions made in this programme of special measures. 42. An intergovernmental group with appropriate secretariat services should be established within UNCTAD to be entrusted with the formulation, development and review and appraisal of policies and projects in favour of the least developed countries with the following terms of reference: (a)  To carry out a methodical analysis, section by section and where necessary country by country, of the progress and the difficulties encountered in the carrying out of the policy measures designed to assist the least developed countries; (b)  To make suggestions for adequate means of overcoming these difficulties and accelerating progress; (c) To seek new and broaden existing areas of agreement in the dynamic context of the Strategy.

IX.  Other measures Measures in the field of economic cooperation and regional integration 43.  In regional economic groupings of the developing countries the following aspects should be studied with a view to facilitating the association of the least developed countries: (a)  Permission to impose quantitative restrictions; (b)  Temporary exemption from alignment of tariffs with the common external tariffs; (c)  Granting of greater fiscal incentives for new investment; (d) Preferential allocation of financial resources of the regional financial institutions and funds; (e)  First choice in the location of industries; (f)  Extension of regional commodity agreements and their coverage.

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44.  The following actions need to be taken at the multinational level: (a)  Multinational projects in the fields of industry, transport communications, energy, manpower, development and natural resource surveys; (b)  The building up of the necessary regional and subregional institutions; (c)  The creation of regional and subregional payment arrangements; (d)  Interim support to the needs of the least developed countries arising from obligations which they have to undertake in connexion with their participation in arrangements for economic cooperation. In particular, IMF should permit members to make special drawings exclusively designed to overcome deficits resulting from trade liberalization commitments. Drawings under such a special facility should be independent of original drawing rights; (e)  The General Assembly should draw the attention of organs of the United Nations system to the course of action taken in UNCTAD with a view to initiating similar programmes in their respective areas of competence; (f)  Countries members of UNCTAD, especially the developed countries, should be asked to contribute effectively to the United Nations Capital Development Fund, and this Fund should be devoted first and foremost to the financing of projects of the least advanced of the less developed countries; (g)  Countries members of UNCTAD, especially developed ones, should study measures they might take in favour of the least developed among the developing countries, including means by which such measures might be implemented, and report their findings at the third session of the United Nations Conference on Trade and Development.

Other special measures related to the particular needs of the land-locked developing countries 45.  The position of the land-locked developing countries, in particular, because of the high costs of transportation, the poor development of their infrastructure, inadequate and inconvenient transport, storage and port facilities in most transit countries, the lack of opportunity or arrangements to use their own transport equipment and to establish their own transport facilities and, in general, the unfavourable trend of transport tariffs and charges, is a factor seriously inhibiting the expansion of their trade and economic development. 46.  Basic policy issues are well defined and formulated in Conference resolution 11 (II) and Board resolution 69 (X), particularly in relation to the specific economic problems derived from the geographical position of the land-locked developing countries. The report of the UNCTAD Expert Group on these problems24 describes in more detail concrete measures to be adopted in favour of these countries. Furthermore, as repeatedly mentioned in the resolutions adopted by UNCTAD and other United Nations bodies, the geographical position of the land-locked developing countries ‘should be considered as a factor in determining the criteria for the further identification of the least developed among the developing countries’. 47. To assist in remedying the difficulties affecting the land-locked developing countries, and bearing in mind the relevant provisions of resolution 69 (X, action is required in the following areas:

24 See Official Records of the Trade and Development Board. Tenth Session, first, second and third parts, Annexes, agenda item 13, document TD/B/308.

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I.  Administrative and other measures 48.  The governments of land-locked developing countries and their transit neighbours should continue to make joint efforts to conclude bilateral agreements or, if mutually agreed, multilateral arrangements with respect to: (a)  The appointment of representatives to assist in the clearance of goods of the land—locked countries in transit; (b)  The establishment of procedures for intergovernmental consultation to ensure that the needs and problems of both land-locked and transit countries are kept under review; (c)  Further simplification of customs and other procedures and formalities and the limitation of documentation; (d)  Familiarizing the officials concerned with the spirit of transit agreements. 49.  Agreements should be sought between land-locked countries and their transit neighbours covering transport facilities in order to: (a)  Facilitate the circulation of the road vehicles of parties to the agreement across frontiers, if necessary, on a reciprocal basis; (b) Facilitate the movement of rolling stock of parties to the agreement, which have inter-connected railway systems.

II.  Transport infrastructure 50.  Technical and financial assistance should be provided by the developed countries and the competent international organizations, at the request of the countries concerned, for feasibility studies, installation, improvement and maintenance of facilities for: (a)  Road transport in both land-locked developing countries and their transit neighbours in order to produce all weather through transport routes for heavy vehicles; (b)  Railways and rolling stock and, where economically feasible, the extension of the rail system of transit countries into land-locked countries; (c)  Inland waterways to raise the standard of navigability so that continuous year-round use is possible; (d)  Air transport to ensure that each land-locked developing country has at least one airport fully equipped to international standards; (e)  Post and telecommunications systems to raise them to modern standards; (f)  The establishment of alternative transport routes to the sea from land-locked countries where economically feasible, specific attention being given in this connexion to establishing trunk routes of use to all countries within a region or a subregional; (g)  Special studies should be made of the possibilities of equalizing the total transport costs related to their international trade with those of their transit neighbours, thus making their export products equally competitive and their imports not more expensive. 51.  Technical and financial assistance should be given by the developed countries and competent international organizations for the investigation and the establishment, where economically feasible, of new forms of transport, with particular reference to pipelines for oil, natural gas and other suitable products. 52.  Liner conferences should take into account the special problems of the land-locked countries and grant promotional freight rates to their merchandise.

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III.  Economic structure 53.  Technical and financial assistance should be provided by the developed countries and competent international organizations to the land-locked developing countries for feasibility studies and investment with a view to assisting their economic development, thus making it suitable to their particular geographical situation, including: (a) The development of import substitute industries, particularly of industries producing high-bulk low-value goods; (b)  An increase in the value of potential exports by the processing of raw materials and by the careful grading, packing and presentation of products; (c)  Thorough exploration to determine the resource endowment of minerals and other energy resources, together with measures, including the investigation of new forms of transport, to make their exploitation possible; (d)  Development of the economies of the land-locked developing countries along two lines, namely complementarity with their neighbours and the production of high-value low-bulk goods to reduce the adverse effects of transport costs; (e)  Investigation of the possibilities of developing tourism with the necessary infrastructure of hotels and improved internal transport; (f)  Thorough consideration of the possibilities of using air transport to penetrate markets abroad for high quality products.

IV.  Institutional arrangements 54.  Special regional or subregional bodies should be established where similar bodies or other arrangements do not exist to make suggestions for the purpose of implementing the recommendations adopted in UNCTAD and other United Nations bodies in regard to the problems of the land-locked countries. 55. As was requested by the Trade and Development Board at its eleventh session,25 the Secretary-General of UNCTAD should prepare a comprehensive action programme within the competence of UNCTAD and within the framework of the International Development Strategy for the second United Nations Development Decade and of the relevant provisions of Board resolution 69 (X) in favour of the land-locked developing countries and present it to the third session of the United Nations Conference on Trade and Development. 56.  The United Nations Development Programme, specialized agencies, international financial institutions and developed countries, should take into account the special needs of land-locked developing countries, particularly in the field of transport, and should give favourable consideration to requests from these countries for financial and technical assistance on soft terms for fulfillment of the aims and objectives contained in the International Development Strategy. 57.  The Secretary-General of UNCTAD should include in his proposal for an action programme for the development of land-locked countries the feasibility of creating a special fund for subsidizing the additional transport costs of land-locked developing countries. 58.  The Secretary-General of UNCTAD should in consultation with the countries concerned, organize studies of the existing transit procedures applied in different regions and also should study port and transport facilities available for the land-locked developing countries with a view 25 See Official Records of the General Assembly, Twenty-sixth Session, Supplement No.15 (A/8415/ Rev.1), part three, para.400.

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to enabling them and their transit neighbours to conclude agreements for the improvement of such facilities and procedures.

Special problems of developing island countries 59.  Developing island countries faced with a number of specific problems linked to their geographical nature arising out of difficulties of communication with neighbouring countries and the distance from market centers and out of frequent natural catastrophes such as monsoons and cyclones, all of which hamper their economic development to a large extent. 60.  As a first step, the secretariats of the regional economic commissions and UNESOB and UNCTAD should carry out studies with a view to identifying in depth the above and related problems and making recommendations on the best means of solving these problems within the framework of the Second United Nations Development Decade.

PART FOUR Future activities of the Group of 77 I.  Organization of the Group of 77 for effective participation at the third session of the Conference 1. The Ministerial Meeting is firmly and unequivocally resolved to maintain and further strengthen the unity and solidarity of the Group, and so to organize themselves as to be able to ensure the maximum impact and effect at the third session of the United Nations Conference on Trade and Development. 2.  To achieve this desired impact, the Group has decided to appoint a Working Party in Geneva, which will prepare the required documentation and draft resolution and coordinate the appropriate activities of the members of the Group as they bear on the goals to be achieved at the Conference. Accordingly, the membership of the Working Party will be kept opened so that any member of the Group of 77 may have unimpeded access to its deliberations without affecting its efficient functioning. 3.  Necessary steps will be taken immediately through the Second Committee of the General Assembly of the United Nations in order to request the regional economic commissions of the United Nations, and other organs and offices of the United Nations, to assist the Working Party as it appropriate and feasible.

II.  Organizational aspects of the third session of the Conference 4.  The Ministerial Meeting examined and endorsed the proposals on the organizational structure of the third session of the Conference which are referred to in paragraph 92 of the report of the Trade and Development Board on its eleventh session (TD/B/385)26 and described in pages 21–22 of annex I of that report.27 5. The Meeting noted also that the Trade and Development Board had requested the Secretary-General of UNCTAD to submit detailed proposals on organizational, administrative and procedural matters to the pre-Conference Meeting which will be held at Santiago de Chile on 11 and 12 April 1972. 26 27

Ibid, part three. Ibid, annex 1, ‘Other decisions’, ‘Organizational structure of the third session of the Conference’.

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6.  The Meeting in particular recommended that governments should endeavour to send as Heads of delegation to the third session of the Conference persons who are of ministerial rank.

III.  Consideration of means of informing the international community 7. The Ministerial Meeting recommended that Member States should instruct their national ambassadors accredited to the various developed countries to use all means at their disposal to place before high political and senior government officials the conclusions of the Meeting, and to promote their cause as necessary so as to create the most favourable climate possible for negotiations on the programme of action at the third session of the Conference. 8.  The Ministerial Meeting recognized that, while the host country had over-all responsibility in publicizing the meeting, it was equally incumbent on all its members to share this responsibility through their respective national communications media: press, radio, television, etc. 9.  The President of the Ministerial Meeting was requested to present the final document of the Meeting to the current session of the General Assembly of the United Nations, and to the Secretary-General of the United Nations. The President of the Ministerial Meeting, in this turn, invited the Rapporteur General of the Ministerial Meeting and the representatives of the three regional groups to accompany him on this mission.

IV.  Measures for strengthening the cooperation among members of the Group of 77 within UNCTAD and with respect to other problems affecting their economic and social development 10. For strengthening the cooperation among countries members of the Group of 77 within UNCTAD and with respect to other problems affecting their economic and social development, the Ministers decided that it is desirable: (a) To establish in Geneva a small ‘Service Bureau’ for purposes of documentation and archives for the work of the Group of 77; (b)  That the Group of 77 in Geneva should consider the possibility of establishing appropriate arrangements to prepare whatever documentation may be necessary for the Groups participation in the work of all bodies within the permanent machinery of UNCTAD. 11.  The Ministers decided that the Group of 77 in Geneva should undertake a study of each of these proposals in all their aspects and on the modalities relating to these two measures and submit a report to the Group of 77 for final action at the third session of UNCTAD in Santiago.

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3.  Third Ministerial Meeting of the Group of 77, Manila, 26 January–7 February 1975, in preparation for UNCTAD IV, Nairobi, 5–31 May 1976 a.  The Manila Declaration and Programme of Action Contents Part One: Declaration Part two: Programme of Action Section one: Commodities Section two: Manufactures and semi-manufactures Section three: Multilateral trade negotiations Section four: Money and finance and the transfer of real resources for Development Section five: Transfer of technology Section six: Least developing among the developing countries, developing island countries, and developing land-locked countries Section seven: Economic cooperation among developing countries Section eight: Trade relations among countries having different economic and social system Section nine: Review of institutional arrangements in UNCTAD

Part one Declaration I Guided by our common aspirations, we, the representatives of the developing countries, having met at the Third Ministerial Meeting of the Group of 77, held in the city of Manila, Philippines, from 26 January to 7 February 1976, to coordinate and harmonize our positions in preparation for the fourth session of the United Nations Conference on Trade and Development, to be held at Nairobi in may 1976, Having considered the Declaration of the Fourth Conference of Trade Ministers of OAU Member Countries, the First Declaration and Action Guidelines of the Latin American Council of the Latin American Economic System (SELA) and the Jakarta Declaration 1976, Inspired by the illuminating opening address delivered by His Excellency the President of the Republic of the Philippines, Mr Ferdinand E. Marcos, who expressed fruitful ideas which made a significant contribution to our discussions and reflect a keen analysis of the present state of international economic relations and an outstanding of international economic relations and an outstanding perceptiveness of the unfavourable economic and social conditions under which our people are struggling, Cordially thank the Governments and the people of the Philippines for their warm hospitality and for the efficient organization of this Ministerial Meeting, which has enabled us to conclude the Meeting successfully.

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II The Ministers of the Group of 77 at their Third Meeting, Having examined in depth the economic situation of the developing countries and having reviewed the policies pursued and the results obtained since the adoption of the International Development Strategy for the Second United Nations Development Decade and the third session of the United Nations Conference on Trade and Development in the field of trade, international economic relations and development in the light of the Declaration and the Programme of Action on the Establishment of a New International Economic Order1 and the Charter of Economic Rights and Duties of States;2 Inspired by the Charter of Algiers and the Lima Declaration of the Group of 77; Bearing in mind the Declaration and Programme of Action adopted at the Fourth Conference of Heads of States or Government of Non-Aligned Countries; Noting with deep disappointment that very few concrete results have been obtained in those fields, that the developed countries have generally not implemented the policy measures and fulfilled the commitments undertaken designed to improve the situation of the developing countries, and that the relative position of the developing countries in the world economy-especially the position of the least developed, land-locked and island developing countries and the most seriously affected developing countries-has worsened during this period; Declare that international economic conditions—particularly world inflation, monetary disorders, recession in the highly industrialized regions, the appearance of new forms of economic discrimination and coercion, certain form of action by transnational corporations and the revival of protectionist trends in the developed countries—have seriously affected the economies of all developing countries; Recognize that, in view of this situation, some developing countries have made and continue to make major efforts to provide other developing countries with financial and other assistance to help them overcome their economic difficulties, including their food and energy problems, and hope that such initiatives will encourage further assistance in these fields by those countries which are in a position to do so; Deplore the application by the developed countries of unjust and discriminatory trade regulations, and the obstacles, which they impose on developing countries in regard to access to modern technology; Affirm their conviction that it is necessary and urgent to bring about radical changes in economic relations in order to establish new relations based on justice and equity which while eliminate the inequitable economic structures imposed on the developing countries, principally through the exploitation and marketing of their natural resources and wealth; Emphasize the close solidarity of all the developing countries which has made it possible for them to evolve a unified position, as well as the importance of harmonizing positions which help to enhance the irreversible process they have created in international economic relations and to consolidate and strengthen their unity and solidarity through joint concerted action, thus laying the foundation for the new international economic order and for the adoption of the Charter of Economic Rights and Duties of States; Affirm that the current situation presents a favourable opportunity for the international community to take steps and reach agreements at the fourth session of the United Nations Conference on Trade and Development aimed at solving the economic and financial problems of the developing countries and achieving the objectives of the new international economic order; 1 2

General Assembly resolutions 3201 (S-VI) and 3202 (S-VI). Adopted by the General Assembly in resolution 3281 (XXIX).

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Decide to promote the urgent implementation on the basis of a programme of concerted action, of the new international economic order within the framework of the Declaration and the Programme of Action on the Establishment of a New International Economic Order, the Charter of Economic Rights and Duties of States and the decisions and recommendations adopted by the United Nations General Assembly at its seventh session; Reaffirm their conviction that the implementation of the new international economic order is essential for the promotion of justice and the maintenance of peace and international co-existence, owing to the ever-increasing interdependence of nations and peoples; Reaffirm further their conviction that responsibility for achieving economic development and ensuring social justice lies in the first instance with countries themselves and that the achievement of national, regional and international objectives depends on the efforts of each individual country. As a necessary corollary to those national efforts and in accordance with the principle of collective self-reliance, they urge the need for closer and more effective cooperation among the developing countries, including the harmonization and coordination of their respective economic policies; Declare once again that international economic relations should be based on full respect for the principles of equality among States and non-intervention in international affairs, on respect for different economic and social systems and on the right of each State to exercise full and permanent sovereignty over its natural resources and all its economic activities; Resolve that the developing countries should be assured wider and increasing participation in the process of adoption and in the adoptions in all areas concerning the future of international economic relations and in the benefits derived from the development of the world economy; Reiterate the need and urgency for the principle of differential and preferential treatment in favour of developing countries to be applied in accordance with specific and effective formulae in all fields of their economic relations with developed countries; Reaffirm the importance of international cooperation for the establishment of the new international economic order; Accordingly declare their firm conviction to make full use of the bargaining power of the developing countries, through joint and united action in the formulation of unified and clearly defined positions, with a view to achieving, inter alia, the following objectives in the various fields of international economic cooperation: 1.  Restructuring international trade in commodities so that it offers a viable solution to the problems concerning commodities, to raise and maintain the value of the exports and the export earnings of the developing countries, increasing processing and improving the terms of trade of those countries. Bearing these fundamental objectives in mind, the fourth session of the United Nations Conference on Trade and Development should take concrete and operational decisions concerning the integrated programme for commodities and all its elements and the implementation of each of its objectives and each necessary international measure, including the negotiating plan; 2.  Reshaping of the structure of world industrial production and trade to ensure a substantial increase in the share of the developing countries in world exports of manufactures and semi-manufactures, in accordance with the goals set forth, inter alia, in the Lima Declaration and Plan of Action on Industrial Development and Cooperation.3 To this end, suitable internal and external conditions, including new forms and areas of industrial cooperation, must be created for accelerated industrial development and promoting the export of manufactures and semi-manufactures from developing countries, without giving rise to restrictions on their access to the markets of developed countries; 3

Adopted by the Second General Conference of UNIDO held at Lima from 12 to 26 March 1975. For the text, see UNIDO publication No.PI/38.

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3.  Expanding the total export capacity of the developing countries, in terms both of volume and of the diversification of their products, and thus promoting the increasing participation of those countries in world trade; 4.  Achieving substantive results for the developing countries in the multilateral trade negotiations and additional benefits through the adoption of differential measures and special procedures for them in all areas of the negotiations. Pending the completion of those negotiations, ensuring that the developed countries strictly observe the standstill with regard to their imports from the developing countries. In this context, substantial improvements should be made in the existing GSP schemes to help developing countries to achieve the agreed objectives of the GSP; 5.  Condemning and rejecting all forms of discrimination, threats or coercive economic policies and practices, either direct or indirect, against individual or groups of developing countries by developed countries, which are contrary to fundamental principles of international economic relations; 6.  Urgently achieving a reform of the international monetary system which will meet the interests and needs of the developing countries, with the full and effective participation of those countries in the decision-making process involved in that reform; 7.  Securing short-term and long-term financing in sufficient volume and on favourable terms and accelerating the flow of bilateral and multilateral financial assistance from the developed to all the developing countries, and in particular to the least developed, land-locked and island developing countries and the most seriously affected countries, on a more continuous, assured and stable basis, in order that the target for official development assistance be reached without delay; moreover, access of developing countries to the capital markets of developed countries should be substantially increased; 8.  Taking immediate steps by developed countries and international organizations to alleviate the increasing debt problems of developing countries and to expand and improve short-term financing facilities to mitigate their balance-of-payment difficulties; 9.  Promoting national technological progress through the acquisition, development, adaption and dissemination of technology in accordance with the needs, interests and priorities of the developing countries, and ensuring the transfer of technology on international conditions consistent with those objectives, with a view to strengthening the technological capabilities of developing countries and thus reducing their dependency in this field, through appropriate institutional arrangements, the adoption of a multilaterally binding code of conduct on the transfer of technology and the review and revision of international conventions on patents and trademarks; 10.  Ensuring that the activities of transnational corporations operating in territories of developing countries are compatible with their objectives of national development, through the free exercise of the right to regulate the operations of those corporations, and promoting international cooperation as an effective instrument for achieving that objective; 11.  Promoting and fostering a programme of economic cooperation among developing countries through suitable permanent machinery for strengthening their mutual cooperation and making possible the adoption of concrete measures in the various fields of their economic relations, in order to promote the individual and collective self-reliance, interdependence and progress of the developing countries; 12.  Devoting efforts toward urgent action for the expansion of trade between the developing countries and developed countries with centrally planned economies, including suitable institutional arrangements for dealing with this issue, with a view to increasing the economic benefits accruing to developing countries from such trade and economic cooperation;

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13.  Establishing more effective and realistic measures and policies through suitable mechanisms in favour of the least developed, land-locked and island developing countries and implementing them as speedily as possible, so that their results may help to alleviate or diminish the specific and long-existing problems affecting those countries; 14. Implementing without delay effective measures in favour of the most seriously affected developing countries to enable them to overcome their special problems, in accordance with General Assembly resolution 3201 (S-VI) and 3202 (S-VI); 15.  Furthering cooperation in the solution of major and urgent international economic problems affecting a large number of developing countries; 16.  Continuing and intensifying their efforts to effect the changes urgently needed in the structure of world food production and taking appropriate steps, particularly in the field of trade, to ensure an increase in agricultural production, especially of food stuffs, and in the real income which the developing countries obtain from exports of these products. Developed countries and developing countries in a position to do so should provide food grains and financial assistance on most favourable terms to the most seriously affected countries, to enable them to meet their food and agricultural development requirements; 17.  Strengthening the negotiation function of UNCTAD so that it could evolve into an effective negotiations arm of the United Nations in the fields of trade and development capable of translating principles and policy guidelines, particularly those enunciated by the General Assembly, into concrete agreements and thus directly contribute to the establishment of the new international economic order.

Part two Programme of Action Section one Commodities Action on commodities, including decisions on an integrated programme for commodities in the light of the need for change in the world commodity economy 1.  The present situation of commodities contains a number of new factors, which could form the basis for a fresh initiative that would contribute to the establishment of a new international economic order, including the setting up of new production and market structures for commodities. Concerted efforts should therefore be made to restructure the world commodity economy in order to improve the terms of trade of developing countries, expand their export earnings from commodities in their raw and processed forms, and eliminate the economic imbalance between developed and developing countries. With this basic aim in mind, the United Nations Conference on Trade and Development should adopt at its fourth session decisions on the objectives, commodities to be covered, international measures and negotiating plan of the integrated programme for commodities of export interest to developing countries including perishables, and a timetable for its implementation. 2.  ‘The solution to world food problems lies primarily in rapidly increasing food production in the developing countries. To this end, urgent and necessary changes in the pattern of world food production should be introduced and trade policy measures should be implemented, in order to obtain a notable increase in agricultural production and the export earnings of developing countries. ‘To achieve these objectives, it is essential that developed countries and developing countries in a position to do so should substantially increase the volume of assistance to developing countries for agriculture and food production, and that developed countries should effectively

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facilitate access to their markets for food and agricultural products of export interest to developing countries, both in raw and processed form, and adopt adjustment measures, where necessary.’4 3. The integrated programme for commodities is a programme of global action designed to improve and establish new structures in international trade in commodities of interest to the developing countries. The integrated programme does not preclude other trade and financial measures and mechanisms relating to products, groups of products or sectors, from contributing towards the achievement of the same objectives. In emergency situations of market disruption, trade and financial measures should be taken so as not to adversely affect trade flows from developing to developed countries.

A.  Objectives of the integrated programme for commodities 4.  The objectives of the integrated programme are: (a)  Improvement of the terms of trade of the developing countries in the field of commodities: (b)  Supporting commodity prices at levels, which in real terms are remunerative and just to producers and equitable to consumers, taking full account of the rate of world inflation and fluctuations in the exchange rates of the main currencies; (c)  Reduction of excessive fluctuations in commodity prices and supplies in the interests of both producers and consumers; (d)  Improving and stabilizing in real terms the purchasing power of the export earnings of individual developing countries; (e)  Expansion of developing country exports of primary and processed products, improvement of the competitiveness of natural products vis-à-vis synthetic substitutes and harmonization of the production of synthetics and substitutes in developed countries with the supply of natural products produced in developing countries; (f)  Diversification of production, including food production, and expansion of the processing of primary commodities in developing countries with a view to promoting their industrialization and increasing their export earnings; (g) Assurance of access to markets of developed countries for exports from developing countries; (h)  Increasing the participation of developing countries in the transport, marketing and distribution of their exports and their share in the earnings therefrom.

B.  International measures of the integrated programme 5.  To achieve the objectives of the integrated programme all the following international measures, each one of which constitutes an important and integral element of the programme, should be taken: (a)  Establishment of a common fund for the financing of international commodity stocks or other necessary measures within the framework of commodity arrangements; (b)  Setting up of international commodity stocking arrangements; (c) Harmonization of stocking policies and the setting up of coordinated national stocks financed, in the case of developing countries, by the common fund referred to in subparagraph (a)  above, or by international financial agencies through a broader and more liberal financing scheme, for buffer stocks; 4

General Assembly resolution 3362 (S-VII), section V, paras. 1-2.

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(d)  Negotiation of other measures necessary for the attainment of the objectives of the programme within the framework of international commodity arrangements through, inter alia, appropriate international production policies, supply management measures, and bilateral and multilateral long-term supply and purchase commitments, taking into account the characteristics of each product; (e)  Effective application of appropriate measures and procedures for indexing the price of commodities exported by developing countries to the prices of manufactures imported from developed countries; (f)  Improvement and enlargement of compensatory financing facilities for the stabilization in real terms around a growing trend of export earnings of developing countries; (g)  Promotion and support of processing and diversification activities in developing countries, and also liberalization and improvement of access to markets of the developed countries for developing country exports of primary and processed commodities; (h)  Appropriate measures for greater participation by developing countries and for improving their share in the transport, marketing and distribution of commodities of export interest to developing countries in their raw as well as processed forms, including the establishment of financial, exchange and other institutions for the remunerative management of trade transactions, and also consequent actions by developed countries. 6.  The interests of developing importing countries, particularly the least developed and the most seriously affected among them, adversely affected by measures under the integrated programme should be protected by means of appropriate differential and remedial measures within the programme. 7.  The product coverage of the integrated programme should take into account the fundamental interests of developing countries in, among others, bananas, bauxite, coca, coffee, copper, cotton and cotton yarn, hard fibres, iron ore, jute and jute products, manganese meat, phosphate, rubber, sugar, tea, timber, tin and vegetable oils, including olive oil and oilseeds. 8.  Efforts on specific measures for reaching agreements on products, groups of products or sectors which for various reasons are not incorporated in the first stage of application of the integrated programme should be continued. 9.  The application of any of the measures which may concern existing international arrangements on commodities covered by the integrated programme would be decided by governments within the commodity organizations concerned. 10.  The measures envisaged above could be reinforced by stimulation and promotion of action by producers associations and by adoption of measures designed to promote and increase trade in commodities among developing countries. 11.  In relation to compensatory financing, agreement should be reached at the fourth session of the Conference on recommendations to IMF regarding improvements in its compensatory financing facility along the following lines: (a)  An easing of the balance-of-payments criterion for assistance to developing countries; (b)  Calculation of export shortfalls in terms of the real value (import purchasing power) of exports and an element of growth in real terms; (c)  Provision to developing countries of a right to base claims for compensation on shortfalls in their aggregate commodity export earnings or their total export earnings; (d)  Easing of repayment terms and expansion of the grant element in compensatory financing, particularly for the poorest developing countries. 12.  Agreement should be reached at the fourth session of the Conference on recommendations relating to improved access to markets of developed countries for developing country exports of

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primary and processed commodities, some of which may be incorporated into individual commodity arrangements under the integrated programme.

C.  Negotiating plan of the integrated programme 13.  In the light of the decisions reached on the objectives and international measures in the integrated programme, agreement should be reached at the fourth session of the conference on follow-up procedures for the implementation of the integrated programme, including the following: (a)  Establishment within UNCTAD of an ad hoc intergovernmental group for the negotiation of the common financing fund referred to in subparagraph 5(a) above; (b)  Convening of intergovernmental preparatory meetings and negotiating conferences for the negotiation of international arrangements; (c)  The possible establishment within UNCTAD of an ad hoc intergovernmental coordinating committee of the Trade and Development Board for commodity negotiations to give impetus to the negotiations referred to in subparagraphs (a) and (b) above, to review the progress and to deal with such major policy problems as may arise during the negotiations. 14.  Agreement should also be reached on a timetable for the implementation of the integrated programme.

Section two Manufactures and semi-manufactures Agreement should be reached at the fourth session of the United Nations Conference on Trade and Development on a comprehensive strategy to expand and diversify the export trade of the developing countries in manufactures and semi-manufactures, with a view to the attainment of the goals for their accelerated industrial development including those set by the Second General Conference of UNIDO at Lima. Such a strategy should comprise, inter alia, the following measures:

I.  Improving access to markets in developed market-economy countries and the socialist countries of Eastern Europe for manufactures and semimanufactures of developing countries (a)  The generalized system of non-reciprocal non-discriminatory preferences (GSP) should be improved in favour of the developing countries through the adoption, inter alia, of the following measures, taking into account the relevant interests of those developing countries enjoying special advantages as well as the need for finding ways and means for protecting their interests: (i)  Extension of the coverage of the GSP to all products of export interest to developing countries; (ii)  Unrestricted, duty-free and quota-free entry for imports of all products covered; (iii)  Liberalization, simplification and harmonization of rules of origin in order to promote and not to hinder the exports of developing countries. The developing countries should be treated under the GSP rules of origin as one area, i.e. there should be ‘cumulative treatment’; (iv)  Removal of all the discriminatory and restrictive aspects of the schemes, especially that of the United States of America; (v)  Elimination of any other internal fiscal or para-fiscal barriers to trade.

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(b) Developed countries should apply the principle of generalized preferential treatment in favour of developing countries to non-tariff barriers, including their elimination, and to other trade policy measures. (c)  The socialist countries of Eastern Europe should not link the application of their schemes or other equivalent measures to bilateral long-term contracts or arrangements with the beneficiary countries. (d)  Developed countries should adhere strictly to their commitments to the principle of standstill as regards restrictions on imports from developing countries. (e)  It is necessary to avoid the prolongation and multiplication of international arrangements designed to validate arrangements requiring developing countries to ‘voluntarily’ restrain their exports, as is the case in the Arrangement regarding International Trade in Textiles. (f)  The GSP should be given a firm statutory basis and made a permanent feature of the trade policies of the developed market-economy countries and of the socialist countries of Eastern Europe. (g)  No instrument of economy policy, particularly the GSP, should be used as an instrument of political or economic coercion or of relation against developing countries, including those that have adopted or may adopt, singly or jointly, policies aimed at safeguarding their natural resources. (h)  The export products, including unprocessed and semi-processed products included in BTN ­chapters 1 to 24, of developing countries that can be distinguished from similar product of developed countries should be identified and separately classified in developed countries customs tariffs in order to allow more favourable treatment. (i)  The developed countries should adopt appropriate internal adjustment assistance measures for their industrial restructuring with the object of allowing for an increasing volume of imports of manufactures and semi-manufactures and from developing countries.

II.  Restrictive business practices (a)  Agreements should be reached and concrete measures for the implementation of relevant resolutions adopted by the international community relating to restrictive business practices, particularly provisions contained in General Assembly resolution 3362 (S-VII) on development and international economic cooperation, which provide in section I, paragraph 10, that ‘Restrictive business practices adversely affecting international trade, particularly that of developing countries, should be eliminated and efforts should be made at the national and international levels with the objective of negotiating a set of equitable principles and rules’. (b)  Action should be taken by developed countries aimed at improving the control of restrictive business practices adversely affecting the trade of developing countries, including the institution of appropriate notification and registration procedures, as well as the development, where necessary, of policies for the elimination of restrictive business practices. (c)  Action should be taken at the international level within the framework of UNCTAD, including the following elements: (i)  Agreement on the need to negotiate for the purpose of adopting a set of equitable principles and rules governing the control of restrictive business practices adversely affecting international trade, particularly that of the developing countries; (ii)  Continued examination of the various restrictive business practices adversely affecting the trade and development of developing countries and measures necessary to control such practices; (iii)  Supply of information by developed countries on restrictive business practices adversely affecting the trade and development of developing countries;

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(iv) Collection and dissemination of information on restrictive business practices by the UNCTAD secretariat, in close cooperation with the Information and Research Centre on Transnational Corporations established at the United Nations; (v)  Provision of technical assistance to developing countries in the areas of restrictive business practices, especially in respect of the training of officials.

III.  Transnational corporations and the expansion of exports of manufactures by developing countries Agreement should be reached on: (a)  Measures to be taken at national, regional and international levels in order to ensure that transnational corporations reorient their activities towards more complete manufacturing in developing countries and towards the further processing therein of raw materials for both the domestic and foreign markets. The developed countries should take steps to adjust their policies, particularly in the field of tariff and non-tariff protection, foreign-exchange regulations, foreign investment and fiscal and financial incentives, to facilitate the above-mentioned measures to be adopted by the transnational corporations; (b)  Measures to strengthen the participation of national enterprises of developing countries in the activities undertaken by transnational corporations in their territories, particularly those relating to the export of manufactures and semi-manufactures; (c)  Equitable principles and rules to govern the control of restrictive business practices which include measures for the control of the practices of transnational corporations adversely affecting the developing countries ability to export manufactures and semi—manufactures; (d)  Measures designed to ensure the regulation and control of the activities of transnational corporations in order that they may be a positive factor in the export efforts of developing countries, so that the latter may acquire greater control over the processing, marketing and distribution of their manufactures and semi-manufactures.

IV.  Export and industrial financing (a)  Developed countries should assist developing countries in setting up financial institutions required by them for development and promotion of their industries and exports. (b)  International financing institutions should grant programme loans to industrial sectors, in addition to the project loans, as well as provide medium-term and long-term refinancing facilities for the exports of developing countries. (c)  International private investment and the financing thereof should be adapted to the industrial needs of the developing countries, in accordance with their national legislation and policies. (d) Developed countries should make available, through bilateral and multilateral channels, larger amounts of financial aid to assist the industrialization of the developing countries, commensurate with and suited to achieving the 25 per cent share for these countries in world industrial output by the year 2000 as set out in the Lima Declaration and Plan of Action.

V.  International cooperation for industrial restructuring Agreements should be reached on measures to be taken in the field of trade in manufactures and semi-manufactures with a view to the achievement of the goals for international industrial restructuring contained in the Declaration and the Programme of Action on the Establishment of a New International Economic Order, adopted at the sixth special session of the General Assembly, in the Lima Declaration and Plan of Action and Industrial Development and

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Cooperation and further stressed in General Assembly resolution 3362 (S-VII). Such measures should include: (a)  Early implementation of the decision to establish a system of consultations at global, regional, interregional and sectoral levels within appropriate international bodies, in order to facilitate the achievement of the aforementioned goals; and effective participation of UNCTAD in such a system; (b)  Action for strengthening the promotion in developing countries of the production and trade of manufactures and semi-manufactures, including those involving the use of advanced technology in their production. Such action should include the elaboration of guidelines on the following: (i)  Identification of industrial activities that could be the subject of industrial collaboration arrangements; (ii)  Ways of promoting industrial collaboration arrangements in their various forms; (iii)  Redeployment of industries from developed to developing countries; (iv)  Supporting measures in developed countries, including adjustment assistance measures designed to increase imports from developing countries particularly in sectors where the competitive advantage lies with developing countries; (v)  Commercial cooperation between developing and developed countries and among developing countries aimed at facilitating the operation of the proposed arrangements; (vi)  Financial and technical cooperation, including appropriate assistance from international institutions; (vii)  Harmonization of the production of synthetics and substitutes in developed countries with the supply of natural products produced in developing countries; (viii)  Supporting measures to be taken by the developing countries for the above, taking into account the need for protecting their nascent industries; (c)  Strengthening of cooperation between UNCTAD and UNIDO on the above matters.

Section three Multilateral trade negotiations 1. Developing countries stress the importance of the commitments made in the Tokyo Declaration5 to, inter alia, secure additional benefits for the international trade of the developing countries and the importance of implementing them fully on a priority basis. They reaffirm the need for observing the multilateral character given to the trade negotiations and for ensuring their ‘transparency’. 2.  The Ministers at Tokyo had intended that the multilateral trade negotiations would be concluded in 1975. This target date has not been realized. The developing countries reiterate their great disappointment over the slow progress of the trade negotiations and, bearing in mind the decision of the Trade Negotiations Committee to complete the negotiations in 1977, urge immediate action on their specific requests and proposals in areas of special priority by the middle of 1976 and the implementations of the agreed concessions from 1 January 1977. 3.  Developing countries express concern that the fundamental principles of the Tokyo Declaration in their favour have not yet been complied with. 5

Declaration of Ministers approved at Tokyo on 14 September 1973. For the text of the Declaration, see GATT, Basic Instruments and Selected Documents, Twentieth Supplement (Sales No.: GATT/19741), p.19.

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4. Developed countries should secure, where necessary, additional legislative and other authority and complete their procedures to implement the concessions and commitments undertaken by them in the multilateral trade negotiations in favour of the developing countries. 5.  Developing countries attach particular importance to the following major principles in the trade negotiations between developed and developing countries: (a)  Strict adherence to the principle of non-reciprocity. The question of the contribution of the developing countries to the overall objectives of the negotiations consistent with their trade, development and financial needs should not be considered until the objectives and commitments of the Tokyo Declaration in their favour are adequately fulfilled; (b)  The concrete application of differential measures which would provide special and more favourable treatment for developing countries, including advance implementation of concessions; (c)  The binding of commitments and concessions in the negotiations in favour of developing countries; (d)  Adoption of special procedures for developing countries in all areas of the negotiations; (e)  Special treatment to be extended to the least developed among the developing countries in the context of any general or special measures that may be taken in favour of the developing countries during the negotiations. 6.  Developing countries urge that the following specific issues of major concern to them be given immediate consideration: (a)  Strict adherence to the standstill; (b)  Special priority in the scope and content of concessions for tropical products should be assured at the earliest possible date in accordance with paragraph 2 above; (c)  The binding in GATT of preferential tariff margins; (d)  The maintenance and improvement of the GSP and effective compensation in case of the erosion of preferential margins resulting from the MFN tariff cuts; (e)  Immediate elimination or liberalization of quantitative restrictions and other non—tariff barriers affecting exports of developing countries. Quantitative restrictions inconsistent with the provisions of the GATT applied by the developed countries should be eliminated without any delay; (f)  Recognition of the right developing countries to accord export subsidies in the context of their development and industrialization policies without giving rise to the application of countervailing duties; (g)  Exemption of the developing countries, in principle, from the application of safeguard measures; (h)  Provision for differential treatment for, and deferred compliance by, developing countries in respect of the provisions of the codes being elaborated in the multilateral trade negotiations; (i) More favourable treatment in the application of government procurement policies in favour of developing countries as compared with developed countries. Developed countries should give to developing-country suppliers treatment no less favourable than they accord to their domestic suppliers in the field of government procurement. 7. In accordance with the Tokyo Declaration, immediate consideration should be given to reforming the provisions of the GATT, including part IV, in order to provide on a mandatory basis for differentiated and more favourable treatment to developing countries, and for extension of these principles to the existing codes and those that may be dawn up.

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8.  The Trade and Development Board and its subsidiary bodies concerned should follow closely the developments in, and give active consideration to, the issues in the negotiations of particular concern to the developing countries. UNCTAD should promote consultations and exchanges of views among developing countries. For this purpose, satisfactory arrangements should be made for effective participation by the Secretary-General of UNCTAD in these negotiations and he should be provided with adequate resources to fulfil this task.

Section four Money and finance and the transfer of real resources for development I.  Measures to be taken by developed countries and international organizations to resolve and alleviate the critical debt problems of developing countries 1.  Heavy debt-service payments, current account deficits stemming from maladjustments in the world economy, inadequate balance-of-payments support and long-term development assistance, coupled with tight conditions and the high cost of loans in international capital markets and difficulties of access to markets in developed countries for exports of developing countries, have all combined to impose a serious and critical strain on the import capacity and reserves of developing countries, thus jeopardizing their development process. The deterioration in the terms of trade of developing countries and the high-cost short-term borrowing they have had to resort to recently have seriously aggravated their debt burden. This situation facing the developing countries can be mitigated by decisive and urgent relief measures in respect of both their official and commercial debts. 2.  In negotiations on debt, the fourth session of the United Nations Conference on Trade and Development should take as a general framework the draft resolution of the Group of 77 presented at the seventh session of the Committee on Invisibles and Financing related to Trade (TD/B/C.3/L.107).6

Official debts 3.  Debt relief should be provided by bilateral creditors and donors in the form, inter alia, of waivers, or postponement of interest payments and/or amortization, and cancellation of principle, of official debt to developing countries seeking such relief. In that framework the least developed, the developing land-locked and the developing island countries should have their official debts cancelled. Other most seriously affected countries should receive the same treatment or, a minimum, have their debt-service payments on official debts waived until they cease to be regarded by the United Nations as most seriously affected countries. 4.  Multilateral development finance institutions should provide programme assistance to each developing country in an amount no less than its debt-service payments to these institutions.

Commercial debts 5.  Agreement should be reached to consolidate the commercial debts of interested developing countries and to reschedule payments over a period of at least 25 years. The consolidation of commercial debts and the rescheduling of payments would require the establishment of suitable financial arrangements or machinery, which might include, inter alia, a multilateral financial 6

For the text of the draft resolution, see Official Records of the Trade and Development Board, Seventh Special Sessions, Supplement No.2 (TD/B/590), annex II.

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institution, such as a fund or a bank, designed to fund the short-term debts of interested developing countries.

Debtor/creditor conference 6.  A conference of major developed creditor and interested debtor countries should be convened under the auspices of UNCTAD in 1976, to determine appropriate ways of implementing the principles and guidelines on the renegotiation of official and commercial debts to be reached at the fourth session of the United Nations Conference on Trade and Development.

II.  Measures to increase net capital flows to developing countries to meet their long-term external financing needs 7.  Assistance from developed countries constitutes an indispensable complement to the internal efforts of developing countries, which are concerned at the fact that developed countries are continuing to maintain qualifications on their obligations under the International Development Strategy for the Second United Nations Development Decade and to impose conditions on their assistance. As agreed by the General Assembly, in section II, paragraph 1, of its resolution 3362 (S-VII), ‘concessional financial resources to developing countries need to be increased substantially, their terms and conditions ameliorated and their flow made predictable, continuous and increasingly assured so as to facilitate the implementation by developing countries of long-term programme for economic and social development, financial assistance should, as a general rule, be united.’

A.  The 0.7 per cent of GNP for official development assistance 8.  (a) All developed countries should effectively increase their official development assistance so as to achieve the 0.7 per cent of GNP target as soon as possible, and in any case no later than 1980. To achieve this end and to ensure that official development assistance flows are predictable, continuous and assured, the following measures, inter alia, could be considered: (i)  Introduction by developed countries of a development tax as a means of raising the required revenues, thereby avoiding discontinuity in appropriation by legislatures; (ii)  Use by the developed countries of the interest subsidy technique as a means of minimizing the budgetary burden of achieving the 0.7 per cent target and of generating a large expansion of concessional flows in a short span of time. (b)  For the purpose of the attainment of the 0.7 per cent target by developed countries, it should be agreed that: (i)  Official development assistance loans should be measured net of amortization and interest payments; (ii)  At least 90 per cent of official development assistance flows should be in the form of grants or loans on IDA terms; (iii)  Official loans with a grant element of less than 50 per cent should not be treated as development assistance; (iv)  Official development assistance loans should be united and multilateral agreement should be sought as soon as possible for the untying of all official flows. Grants should also be united as far as is feasible; (v)  Financial flows to areas which the developed countries themselves do not regard as sovereign political entities should be set in measuring countries performance under the target;

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(vi) Official development assistance should be increasingly given in the form of non-project and programme assistance, including local currency financing; (c)  The 0.7 per cent target should be treated as the actual financial flow target, and the 1 per cent target (in the measurement of which other official and private capital flows are included) should be considered as merely a broad indicator of financial cooperation. (d) Official development assistance should be distributed more rationally and equitably among all developing countries without prejudice to existing bilateral or multilateral agreements between developing and developed countries, and the continuity of such financial flows should be ensured on more favourable conditions.

B.  Flows from multilateral development finance institutions 9.  The multilateral development finance institutions should increase substantially their lending to developing countries. To make this possible, contributions of developed countries to these institutions should be increased immediately. Contributions to the World Bank’s ‘third window’ should be increased substantially and without prejudice to the regular lending programme of IBRD, to IDA, and to the soft-loan windows of the regional banks. 10.  Provision should be made for replenishing the resources of IDA on a continuous and automatic basis. The fifth and subsequent replenishment of IDA should provide a substantial increase in the resources of IDA in real terms. Negotiations should be completed in time to ensure continuity of operations. 11.  New sources of credit, additional to the existing ones, should be created for the purpose of meeting the specific need of financing the development programmes of developing countries, which do not benefit from the measures envisaged in paragraph 2 of resolution 62 (III) of the United Nations Conference on Trade and Development.

C.  Access to capital markets in developed countries 12.  The developed countries should take immediate measures to enhance the access of developing countries to their money and capital markets so as to increase substantially the volume, improve the conditions and secure the continuity of the resources available to the developing countries. Such measures should include: (a)  Exemption of developing countries from various administrative measures governing the issues of foreign bonds in domestic capital markets; (b)  A liberalization of statutory provisions limiting the extent to which domestic financial institutions can acquire debt of developing countries; (c)  Exemption of developing countries from general measures designed to control capital outflows from capital exporting countries; (d)  Provision by governments, either individually or through multilateral facilities, to guarantee financial obligation of developing countries.

III.  Measures to improve, on appropriate terms and conditions, the financial and monetary situation of developing countries, commensurate with their development needs, and to facilitate and improve the financing of their exceptional deficits 13.  Developing countries normally face chronic balance-of-payments deficits but in recent years these deficits have become critical for most of them, threatening to undermine their development process. The present deficits are exceptional not only in dimension but in their source, since they result not from in appropriate domestic policies but largely from adverse world economic

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conditions, in particular recession and inflation in developed countries; these conditions have further weakened the external position of developing countries by worsening their terms of trade and lowering their export volume and earnings. The traditional policy responses are therefore inappropriate to deal with the situation and would serve to aggravate maladjustments in the world economy, particularly those in developing countries. International policies in the current situation must be tailored to these specific characteristics of the situation in developing countries and reflect the fact that their external deficits are largely due to factors beyond their control. Those policies must therefore assure the orderly and adequate financing of the balance-of-payments deficits of developing countries on appropriate terms and conditions to allow the developing countries to make the necessary adjustments without detriment to their development plans. Existing IMF policies, notwithstanding recent welcome modifications, do not suffice for this purpose. 14.  The following actions, inter alia, are proposed to alleviate this situation: (a)  IMF should make its policies more flexible so as to provide adequate longer-term assistance at low interest rates and free of policy conditions to developing countries for the specific purpose of compensating them for shortfalls in export earnings and rising prices for essential imports resulting from the economic situation in the developed countries; (b)  IMF should undertake a further review of its compensatory financing facility in the near future in order to make the following changes: (i) Export shortfalls should be calculated taking into account changes in import prices and with due account for a growth factor; (ii) The quotas limitations should be either abolished or raised to a point at which they cover the entire shortfall; (iii) Repayments should be triggered only by ‘overages’ just as drawings are triggered by ‘shortfalls’; (iv) Countries should be given the choice of basing the calculation of their shortfall on their total commodity earnings, or total merchandise exports, or services, or on all current account receipts, and to draw against the shortfall without basing their claim entirely on balance-of-payments criteria; (v) Increased import volume resulting from climatic or other factors beyond the control of the country concerned should also be included in the calculation of the shortfalls; (vi) In appropriate case, drawings under the facility should take the form of grants. (c)  IMF should undertake an early further review of its tranche policies with a view to enlarging substantially the first credit tranche, and reducing the conditionality attached to drawings under the subsequent tranches. 15.  Special measures should be taken, within the framework of General Assembly resolutions 3201 (S-VI) and 3202 (S-VI), to provide additional resources to meet the exceptional balance-ofpayments deficits of the most seriously affected countries caused by the present crisis, and thereby enable them to deal with their critical problems. Contributions to the United Nations Special Fund should be expedited and augmented. In addition, the IMF Trust Fund should be put into operation without delay.

IV.  Review of requirements for evolving and international monetary system that would foster development and world trade, having particular regard for the interests of the developing countries 16.  The International monetary system in its present state is not sufficiently conducive to world trade and development, and requires fundamental changes to meet the interests of the

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international community and in particular those of the developing countries. These changes must explicitly take into account the interdependence of the problems of the international monetary, financial and trade system, and must be based on universal membership and a just decision-making process. One of the central objectives of the new monetary system should be the promotion of the trade and development of developing countries. The system must provide for a process of balance-of-payments adjustment and financing that will remove the inequities involved in the system as presently constituted; for the creation and distribution of international liquidity in ways that will mobilize resources for development; and for stability in exchange rates.

A.  Universality of the international monetary system 17.  The international monetary system would function more effectively with complete universality. It should therefore embrace all interested countries without exception, and should in particular reflect the rights and interests of the developing countries; and ensure them equitable treatment that takes into account their development needs.

B. Decision-making 18.  Decision on international monetary issues, which affect the international community at large should be taken with the full and more effective participation of developing countries at all stages of discussion and negotiation. To that end, the authority of IMF in international monetary negotiations and decisions should be increased and the role of restricted and unrepresentative groups reduced. The system of voting in IMF and the World Bank should be reformed so as to accord developing countries greater representation and weight in decision-making in these institutions.

C.  The interdependence of problems of international financial, monetary and trade system 19.  Problems of the international monetary system are to a large degree generated by inadequacies in the international trade and financial systems, including insufficient access of developing countries to markets for capital and goods. A coordinated approach towards problems in these three areas should guide deliberations and negotiations in each of them so that the overall evolution of the international economic system serves to foster development and world trade, having particular regard to the interests of the developing countries. UNCTAD has an especially important role to play in this context.

D.  The balance-of-payments adjustment process 20.  In the present monetary system, serious asymmetries exist in the ways in which different groups of countries are dealt with as regards the avoidance, correction and financing of payments imbalance. Developing countries bear an inequitable burden of adjustment, which should be lightened, inter alia, in the following ways: (a)  IMF should be equipped with a full array of facilities to provide payments support to developing countries. The terms and conditions, including policy conditions, carried by IMF credit should take due account of the cause and hence the likely duration of the deficits they are designed to cover. Greater automaticity of credit, and reduced policy conditionality, are required. Existing mechanisms must be strengthened to protect the developing countries from being adversely affected by internal maladjustments in developed countries, such as recession and inflation, and by other exogenous factors. The over all access of developing countries to Fund resources must be considerably enlarged and liberalized;

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(b)  Developing countries should be free to choose the policy instruments that they consider best suited to their specific situation and structural characteristics, without prejudice to their access to IMF drawings; (c) Improvement in the balance-of-payments adjustment process of developing countries requires improvements in the world trading system, inter alia, to stabilize commodity earnings and to remove trade restrictions in developed countries on products of export interest to developing countries; (d)  A properly working adjustment process also requires that the transfer of real resources to developing countries should be enlarged, to allow them to adjust imbalances at higher levels of imports and rates of growth, thereby reducing the costs of such adjustment.

E.  Creation and distribution of international liquidity 21.  The creation and distribution of international liquidity should be brought under more effective international control so as best to meet the additional liquidity needs of the world economy as a whole and of developing countries in particular. To that end, the role of the SDR as a reserve asset should be strengthened, so that the SDR may progressively replace gold and national currencies as reserve assets. Decisions on SDR allocation should take due account of the distribution of international liquidity. The Articles of agreement of IMF should provide for a link between SDR allocations and additional development fitness. Recent decisions regarding gold, which have the effect of redistributing world reserves away from developing countries and in favour of developed countries, should be offset.

F. Exchange rates 22.  The exchange rate system should evolve in the direction of increased consistency in exchange rate policies and greater stability in the exchange rates of the major currencies. IMF should take due account of the interests of developing countries in its decisions on the exchange rate system. In interpreting the obligations and applying the principles under the amended Articles dealing with exchange arrangements, IMF should pay due regard to the special circumstances of the developing countries.

Section five Transfer of technology I.  Action to strengthen the technological capacity of developing countries 1.  Decision should be reached at the fourth session of the United Nations Conference on Trade and Development for strengthening the technological capacity of developing countries and thereby reducing their technological dependence. Developing countries should consider measures for formulating national policies, regulations and laws and establishing appropriate institutional structures at the country level, and explore the main line of cooperation among themselves. These measures should be complemented by a full range of technical assistance activities necessary for interlinking the measures at the national, subregional, regional and international levels through the formulation of appropriate international policies. Such assistance requires effective cooperation from the developed countries, as well as coordinated action by international organizations. In considering these measures, account should be taken, inter alia, of resolution 2(I) of the Committee on Transfer of Technology7 and General Assembly resolution 3507 (XXX). 7

Ibid, Supplement No. 4(TD/B/593), annex I.

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A.  Action by the developing countries 2.  The developing countries should give consideration, at the national level, to: (a)  Formulation of a technology plan, as an integral part of their national development plans, as well as the coordination of policies in a number of interrelated areas, including licensing arrangements, transfer, development and adoption of technology, industrial property laws and practices, foreign investments, research and development; (b)  Establishment of appropriate institutional machinery, including national centers for the development and transfer of technology with urgent attention being paid to defining the role and functions of such centres, including the principal linkages, which need to be established with other national bodies or institutions; (c)  Elaboration of all necessary measures to ensure optimum utilization of their qualified manpower resources.

B.  Cooperation among developing countries 3.  To supplement the national effort, the developing countries should give consideration at the subregional, regional and interregional levels to: (a)  Elaboration of preferential arrangements for the development and transfer of technology among themselves; these preferential arrangements for cooperation should, inter alia, be consistent with arrangements involving subregional and regional cooperation and integration; (b)  Establishment of subregional and regional centres for the development and transfer of technology which could serve as essential links with national centres in developing countries, and also to implement initiatives such as: (i)  Exchange of information on technological alternatives available to developing countries as a means of improving their negotiating power; (ii)  Institutional arrangements in respect of common technological research and training programmes; (iii)  Assisting national centres effectively to fulfil their role, inter alia, in implementing a code of conduct for the transfer of technology and preparing model contracts for licensing agreements on patents; (c)  Establishment of subregional, regional and interregional centres by the developing countries in specific and critical sectors of particular interest to these countries.

C.  Cooperation from the developed countries 4. Developed countries should implement, as a matter of urgency, the programme of action spelled out in paragraphs 13, 16, 17 and 18 of Conference resolution 39 (III), as supplemented and reinforced by the decisions of the sixth and seventh special sessions of the General assembly, culminating in General Assembly resolution 3517 (XXX). 5.  The developed countries should grant the developing countries unrestricted access to existing technology irrespective of the ownership of such technology. 6.  The developed countries should cooperate actively and positively in the implementation of General Assembly resolution 3507 (XXX) on the establishment of industrial technological information banks, centres for the development and transfer of technology and/or other viable information systems. 7.  Developed countries should refrain from pursuing policies, which might encourage the exodus of trained personnel from developing countries, since this is seriously jeopardizing their progress.

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D.  Action by international organizations 8.  The fourth session of the Conference should take decisions to establish the necessary institutional basis to enable UNCTAD to meet the responsibilities assigned to it in the areas of technical and operational assistance, in cooperation with the international organizations concerned, particularly UNIDO, as outlined in Conference resolution 39 (III), resolution 2(I) of the Committee on Transfer of Technology and General Assembly resolution 3507 (XXX). 9. In this context, a Technical Advisory Service should be immediately established within UNCTAD to render assistance at the request of developing countries, and the capacity of UNCTAD in this field should be strengthened.

II.  Decision on a code of conduct for the transfer of technology and, in the light of these decisions, a decision on the modalities for its establishment 10.  In order to facilitate and increase the international flow of all forms of technology under favourable terms and conditions, eliminate restrictive and unfair practices affecting technology transactions, and strengthen the national technological capabilities of all countries, a multilateral legally binding instrument is the only way of efficiently regulating transfers of technology, taking into consideration the particular needs of the developing countries. 11.  In this context, it is proposed that, in pursuance of section III, paragraph 3, of General Assembly resolution 3362 (S-VII), the Conference should request the General Assembly at its thirty-first session to call a plenipotentiary conference under the auspices of UNCTAD during 1977 to establish a multilateral legally binding code of conduct on transfer of technology. At the same time the General Assembly should establish a preparatory committee to make the necessary preparations for the conference of plenipotentiaries; the preparatory committee, which should be open to the participation of all members of UNCTAD, should hold its first session as early as possible. 12.  The proposal submitted by the Group of 77 in annex II to the report of the Intergovernmental Group of Experts on a Code of Conduct on Transfer of Technology on its resumed session (TD/B/C.6/14) should form the basis of subsequent negotiations.

III.  Action to be undertaken by UNCTAD with respect to the economic, commercial and development aspects of the international patent system in the context of the on-going revision of that system 13.  (a) For patent legislation to be an important instrument for the economic development of the developing countries, it should be designed to serve their public interest, i.e. their development needs as defined in the national, subregional or regional plans, policies and priorities, and should basically be geared to creating conditions for optimal use as well as for the creation of knowledge and technology to further the social objective industrialization; (b)  National legislation and developing countries on inventions, where it exists, should ensure that the granting of property rights by the State is accompanied by corresponding obligation on the part of the patentee; (c) Adequate exploitation of the patents granted would contribute towards fulfilling the developmental needs stated above. 14.  In view of the importance attached by the developing countries to the economic, social and development implications which the international system of industrial property has for their economies, UNCTAD should play a prominent role in the revision of the system, in particular in the on-going process of revision of the Paris Convention for the Protection of Industrial Property. That role should include the participation of UNCTAD in all phases of the revision process.

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15.  The conclusions reached by the experts from developing countries who participated in the meeting of the Group of Governmental Experts on the Role of the Patent System in the Transfer of Technology to Developing countries8 should be one of the bases for subsequent negotiations. 16.  The Secretary-General of UNCTAD should continue to examine the impact of the whole industrial property system on the development process of the developing countries. 17.  Resolution 3(I) of the Committee on Transfer of Technology should form a basis for further cooperation between UNCTAD and the international agencies concerned, particularly WIPO and UNIDO, in the preparation of the necessary background studies for the revision of the international system of industrial property. 18.  The economic, trade and development interests of the developing countries should be fully reflected in the revision of the international system of industrial property and, in particular, in the revised Paris Convention. The Declaration on the Objectives of the Revision of the Paris Convention9 is, in this context, noted with interest. 19.  The invitation sent by the Director-General of the World Intellectual Property Organization to all States Members of the United Nations and the specialized agencies to participate in the third session of the WIPO Ad Hoc Group of Governmental Experts on the Revision of the Paris Convention is to be welcomed as a step which can contribute significantly to the full reflection of the interests of the developing countries in the revision of the international system of industrial property, and all developing countries are urged to prepare themselves for active participation in that session.

IV. Other issues 20.  As regards the United Nations Conference on Science and Technology for Development reverse transfer of technology (the ‘brain drain’), the decisions taken by the Committee on Transfer of Technology in its resolution 2(I) should be fully implemented. 21.  In order to compensate for the reverse transfer of technology resulting from the exodus of trained personnel from the developing countries, now amounting to several billion dollars, arrangements should be made to provide, on a cost-free basis, the necessary financial means to create the infrastructure to retain qualified personnel in the developing countries.

Section six Least developed among the developing countries, developing island countries, and developing land-locked countries I. Introduction 1.  The Ministerial Meeting reaffirms its conviction concerning the need to agree upon effective international action to contribute to the solution of the specific and permanent problems of the least developed among the developing countries, developing island countries and developing land-locked countries. 2.  The Ministerial Meeting stresses the urgency for the developed countries and the competent international agencies to adopt and executive without delay the measures identified within the framework of UNCTAD in the fields of trade and financial policies, technical assistance, shipping and transfer of technology in favour of this group of developing countries.

8 9

Ibid., annex III. WIPO document PR/GE/II/13 of 31 December 1975 (mimeographed), annex III.

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3.  These measures shall be in addition to the measures that shall be adopted in general for all developing countries in the spirit of the United Nations resolution concerning the establishment of the new international economic order10 and while putting these measures into practice attention shall be given in order to safeguard interest of other developing countries. 4.  The special measures to be taken by developing countries in a position to do so in favour of the least developed, the land-locked developing countries and island developing countries should be implemented through the machinery, which those countries deemed appropriate.

II.  Action on special measures in favour of the least developed among the developing countries A.  Financial and technical assistance Expanding the flow of assistance 5.  The developed countries should: (a)  Expand the flow of official development assistance in keeping with their commitments in the International Development Strategy for the Second United Nations Development Decade, and in so doing should ensure that the least developed countries receive a proportionately higher share of this flow as well as that of the total flow to meet their urgent needs; (b)  Provide the least developed countries by the end of 1976 with an amount at least equivalent to their share in the official development assistance target of 0.7 per cent of the gross national product of developed countries at market prices. 6.  Bilateral and multilateral donor agencies should agree on effective arrangements to ensure that each of the least developed countries receives a proportionately higher flow of assistance taking into consideration its special need for economic and social development. 7.  Developed market-economy countries, the socialist countries of Eastern Europe, developing countries that are in a position to do so, multilateral donors11 and other sources such as private grant programmes and voluntary agencies, should give high priority to increasing their assistance to the least developed countries. 8.  Developed countries and others in a position to do so should provide strong financial support for a special fund for the least developed countries without delay. Terms and conditions for financial and technical assistance 9.  The terms and conditions of all future assistance to the least developed countries should, inter alia, be as follows: (a)  Such bilateral official development assistance of developed countries to the least developed countries should essentially be provided in the form of grants; (b)  Developed countries should compensate for the erosion of the purchasing power of past aid commitments to the least developed countries, which have not yet been disbursed; (c)  Multilateral financial agencies should provide assistance to the least developed countries in the form of grants. Where this is not possible such assistance should be given in the form of loans on terms as concessional as those provided by IDA;

10 11

General Assembly resolution 3202 (S-VI). The World Bank Group, particularly the International Development Association, the United Nations Development Programme, the regional development banks and other multilateral institutions.

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(d)  Developed countries should cancel the official debts of the least developed, the developing island and the developing land-locked countries; (e)  The developed market-economy countries should give immediate and favourable consideration to providing highly concessional terms of relief for the other outstanding debt burdens of the least developed, the developing island and the developing land—locked countries; (f)  Multilateral financial institutions should convert loans to the least developed countries into highly concessional forms; (g)  Bilateral donor and multilateral assistance agencies should provide greater assurance of the long-term continuity of the assistance to the least developed countries; (h)  Developed countri es should provide programme aid to the least developed countries and allow them to select projects in consultation with the donor countries. Criteria and procedures for financial and technical assistance 10.  All bilateral and multilateral aid agencies should adopt more flexible criteria and procedures in granting assistance to the least developed, island developing and land-locked developing countries. They should, in particular, (a)  Modify traditional financial criteria concerning the minimum rate of return on projects to take fully into account the longer-term social rate of return including related secondary effects in these countries; (b)  Provide financial and technical assistance in order to guarantee minimum standards of development contribute to the necessary structural changes and ensure that critical needs are satisfied in these countries; (c)  Increase budgetary and financial support for the development of public services including projects in these countries; (d)  Finance local costs of capital projects to a substantial extent wherever the lack of adequate local financial resources imposes limits on the development efforts of these countries; (e)  Arrange explicitly in these countries, where necessary, for the financing of recurring costs associated with on-going projects and projects after their completion, including maintenance costs, during an appropriate phasing out period; (f)  Finance local costs in connection with technical assistance projects; (g)  Provide increased help in identifying, planning and preparing technical and financial assistance projects with a view to expediting the approval and implementation of projects; (h)  Assist these countries in carrying out feasibility and pre-investment surveys and post implementation reviews; (i)  Endeavour to attract the highest quality technical assistance personnel, speed up recruitment and project implementation procedures and ensure the most urgent response to the technical assistance needs of those countries; (j)  Arrange for rapid training of local replacement personnel. 11.  It is recommended that the Governing Council of UNDP should undertake immediately revision of the criteria so as to allocate additional indicative planning figures to meet the additional needs of the least developed countries.

B.  Commercial trade policy 12. Special consideration should be given, within the contractual mechanism of commodity agreements, to the least developed countries in a flexible and favourable manner designed to ensure the optimum marketing of their production of such commodities in order to increase their

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foreign-exchange earnings, bearing in mind the characteristics peculiar to each product, taking into consideration the need to protect the interests of other developing countries. 13.  The generalized system of preferences should be extended to cover agricultural products, in both primary and processed forms, and handicrafts of export interest to the least developed countries. 14.  Pending the complete removal of tariff and non-tariff barriers for all developing countries, such barriers, including ceilings, quotas, safeguard clauses and all other restrictive measures, particularly with regard to products of present or potential export interest to the least developed countries should be immediately and completely removed. 15.  The rules of origin in respect of other products of least developed countries should be further liberalized. 16.  Multilateral arrangements, such as the IMF compensatory financing facility, should include provisions to enable the least developed countries to claim compensation without prior conditions, in the event of increases in import prices and of export shortfalls. 17.  Developed countries should assist the least developed countries in a coordinated manner, from the planning, production and transportation stages to the stage of ensuring sales of their products at remunerative prices. 18.  Developed countries and international organizations should adopt measures to foster the creation of industries for on-the-spot processing of raw materials and food products. 19. The preference giving countries should formulate such modalities within the framework of  the generalized system of preferences as to favour, in particular, the least developed countries. 20.  The least developed countries should be granted special treatment in the multilateral trade negotiations, priority being given to tropical products of particular interest to the least developed countries. 21. Special measures, including exemption from financial contributions, should be taken to accommodate the needs of the least developed countries in the integrated programme for commodities. 22. The developed market-economy countries and the socialist countries of Eastern Europe should: (a)  Provide long-term guarantees of a reasonable level of sales of the products of the least developed countries; (b)  Give favourable treatment, in the case of government procurement, to imports from the least developed countries; (c) Assist the least developed countries to develop the production potentialities of food, energy and other resources, including manufactures. 23.  In the development of arrangements in the context of the integrated programme for commodities, and in other multilateral agreements affecting the imports of the least developed countries, every effort should be made to reduce the burden of import costs on these countries by means of appropriate differential and remedial measures within these arrangements.

C.  Economic cooperation among developing countries 24.  The developing countries in a position to do so should: (a)  Provide preferential treatment, as far as possible, to imports of goods produced by the least developed countries; (b) Assist the least developed countries to develop the production potentialities of food, energy and other resources, including manufactures;

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(c)  Provide under preferential terms and conditions and at a minimum cost the results of scientific and technological development adapted to the development needs of the least developed countries; (d)  Provide increased flows of financial and technical assistance and goods for the benefits of the least developed countries through special preferential arrangements; (e)  Promote and expand joint ventures with the least developed countries involving the transfer of equipment and technology in the context of long-term bilateral agreements or special arrangements; (f)  Explore the possibilities of undertaking long-term arrangements to assist least developed countries to achieve a reasonable level of sales of their products.

D.  Shipping and promotional freight rates 25.  The Governments of developed and developing countries should invite ship owners and liner conferences to establish freight tariffs for the least developed countries that will encourage and assist the expansion of the export trade of these countries, and to develop promotional rates for the non-traditional exports of the developed countries that will facilitate the opening of new markets and the development of new trade flows. 26.  The developed countries and the international financial institutions should give high priority to providing financial and technical assistance to the least developed countries to help them in acquiring and expanding their national merchant fleets and in improving their port facilities.

E.  Transfer of technology 27.  The developed countries and competent international institutions should: (a)  Assist the institutions of least developed countries to obtain, under preferential terms and conditions and at a minimum cost, the results of scientific and technological developments appropriate to their requirements; (b)  In order to overcome the technological and negotiating weaknesses of the least developed countries, assist in the establishment of transfer of technology centres designed to obtain necessary technological information, to select from available alternatives and to negotiate proper terms and conditions for external collaboration; (c)  Make arrangements for the grant of patented, patent related and non-patented technologies, including know-how, suited to the economic conditions of the least developed countries; (d)  Provide the necessary assistance for establishing institutions of applied technology, with the aim of developing indigenous technologies and promoting the adaptation of imported technologies to national requirements.

F.  Other actions by UNCTAD 28.  The Secretary-General of UNCTAD should convene as soon as possible a special meeting at which multilateral and bilateral financial and technical assistance institutions can carry out, together with representatives of the least developed countries themselves, a general review and assessment of their requirements and progress and of the problems arising in the coordination and implementation of assistance programmes on both the donor and the recipient sides, with the aim of agreeing on a global plan for a much more rapid increase in growth and welfare in the least developed countries. 29.  The Secretary-General of UNCTAD should convene an expert group to study: (a)  The implications of an integrated vertical approach for expanding the exports of the least developed countries, and involving coordinated efforts ranging from the planning and

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production stage in the least developed countries to the stage of ensuring sales of their products in the developed countries; (b)  The possibilities of providing long-term guarantees to the least developed countries of a reasonable level of sales of their products in the developed countries; (c)  The possibility of creating and developing institutions and financing corporations in the developed countries as well as in the least developed countries, specifically designed to promote the sale of products of the least developed countries, including the development of suitable guarantee arrangements by the developed countries concerned to offset the risks of such trade. 30.  The Secretary-General of UNCTAD should: (a)  Strengthen the technical assistance activities of UNCTAD in collaboration with UNDP in the planning and policies of the foreign trade sector of the least developed countries and in other specific areas within the competence of UNCTAD; (b)  Implement the work programme contained in chapter IV of ‘Issues for consideration by the Intergovernmental Group report by the UNCTAD secretariat’ (ID/B/AC.17/2) stressing also the need of in-depth study of the circumstances of the individual least developed countries.

III.  Action on special measures in favour of developing island countries A. Shipping Transshipment problems 31.  Several island countries need to transship goods through other countries, which are on world traffic routes. This involves extra cost and delay for both imports and exports; it can further cause difficulty in meeting export commitments, and is inhibiting the development of exports from affected island countries. Measures to facilitate transshipment, including, inter alia, appropriate storage and port facilities, are needed. Prevention of discrimination against island ships 32.  There are cases of island ships being discriminated against in transit ports or in the ports of trading partners. The Governments concerned should take steps to prevent such discrimination. Insurance of inter-island ships 33.  Measures necessary to ensure that break-bulk carriers plying between islands in a region are not discriminated against in obtaining insurance. Promotional freight rates 34.  The Governments of developed and developing countries should invite ship owners and liner conferences to establish freight rates for developing island countries that will encourage and assist in expanding the export and import trade of these countries, and to develop promotional rates for non-traditional exports and imports of developing island countries that will facilitate the opening of new markets and the development of new trade flows. Research on appropriate ship and shore facilities for archipelagic States 35.  Archipelagic States often face the problem that their own outlying islands can be hindered by poor services from full participation in foreign trade. Special research and development efforts should be undertaken to evolve appropriate types of ship and shore facilities.

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Cooperation with shipping conferences 36.  It would be desirable to achieve better cooperation between the Governments of island developing countries and shipping conference in order at least to maintain a fair relationship between the pace of increase in freight rates and port congestion surcharges on the one hand and the level of economic development of the island countries concerned on the other. Training for ship repair and maintenance 37.  Assistance from UNCTAD, the regional commissions and other bilateral and multilateral organizations would be desirable in training the technical manpower needed for ship repair and maintenance and for marine insurance. Assistance in establishment of shipping services to promote regional cooperation 38.  Assistance from UNCTAD and the regional commissions would be desirable in promoting subregional cooperation among developing countries, and in particular island developing countries, towards the establishment of consortia or international shipping companies to develop trade between these countries.

B.  Air services 39.  Measures are desirable to improve the quality and cost of air services, including appropriate airport facilities. Archipelagic States often face the further problem that their own outlying islands can be hindered by poor services from full participation in foreign trade. This calls for advice on appropriate types of aircraft and ground facilities. 40.  It would be desirable to achieve better cooperation between the Governments of island developing countries and airlines in order at least to maintain a fair relationship between the pace of increase in freight rates and fares on the one hand and the level of economic development of the island countries on the other. 41.  Likewise, special research and development efforts are needed for air services, with particular attention to the scope for air transport of imports and exports. As an immediate measure, promotional rates should be applied to the non-traditional imports and exports of developing island countries. 42.  Assistance from the regional commissions and other bilateral and multilateral organizations would be desirable in training the technical manpower needed for the repair and maintenance of aircraft and the equipment related to air transport. 43.  Assistance from UNCTAD and the regional commission would be desirable in promoting subregional cooperation among the developing countries, and in particular island developing countries, towards the establishment of consortia or international air transport companies to develop trade and travel between those countries.

C.  Group of experts on feeder and inter-island services 44.  The Secretary-General of UNCTAD should be invited to convene a group of experts on feeder and inter-island services by air or sea, and provision should be made for UNCTAD to undertake studies and technical assistance within its competence, the need for which the group might identify.

D. Telecommunications 45.  Technical and financial support should be provided to island developing countries for the creation and improvement of inter-island telecommunication links as well as telecommunication links with the rest of the world.

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E.  Marine and Undersea resources 46.  The sovereignty of developing island countries, and particularly the archipelagic States, over their marine and sub-marine resources should be recognized and affirmed. The multilateral financial institutions and technical assistance agencies should provide effective assistance to these countries to enable them to exploit fully those resources. In this context technical and financial assistance should be provided to developing island economies in the development of their fishing industry.

F.  Commodity export earnings 47.  Often having small and precarious economies, the developing island countries have a particular interest in measures to increase and stabilize commodity export earnings. Bilateral and multilateral aid institutions should be invited to participate in special compensatory financial schemes for island countries depending for their export revenue essentially on one or two products. UNCTAD should be invited to assist in elaborating and implementing appropriate schemes.

G.  Import cooperation 48.  Priority should be given in extending technical assistance and financial aid to groups of developing island countries to facilitate the establishment of schemes for collective import operations, which could represent substantial savings in terms of costs, insurance, freight handling and storage changes.

H.  Human geography of small islands 49.  Aid donors, and in particular international organizations, should be urged to pursue and intensify studies and technical assistance efforts to assist Small Island to plan rationally in order to deal with the peculiar problems which their precarious environment and rugged topography impose upon human settlement, including the provision of public services and the problems of harmful aspects of urbanization. In advising Governments of island countries, UNCTAD should bear particularly in mind the consequences of different kind of foreign-trade development on the human geography and ecology of the islands.

I. Tourism 50.  In the case of developing island economies tourism is an important sector of their economic development, and financial and technical assistance should be given to these countries to develop their tourism potential.

J. Financial aid 51.  Particularly favourable condition for the financing of the purchase of ships should be accorded to developing island countries. 52.  Developing island countries should benefit from the measures elaborated for the least developed countries concerning financial and technical assistance; in particular assistance in order to carry out pre-feasibility and pre-investment studies and to execute port infrastructure projects concerning the repair and maintenance of ships and road infrastructure. 53.  UNCTAD and the regional commissions should provide assistance in order to promote subregional cooperation for the establishment of an inter-State shipping line for the development of trade among the countries concerned.

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54.  Liner conferences should cooperate with the Governments of developing island countries with a view to ensuring that freight rates and surcharges imposed do not hinder the economic development of the developing island countries.

IV.  Action on special measures in favour of the developing land-locked countries A.  Joint cooperation 55.  At its third session the United Nations Conference on Trade and Development unanimously adopted resolution 62 (III), complemented by resolution 63 (III) containing other special measures in respect of the particular needs of the land-locked developing countries, thereby recognizing that their lack of access to the sea constitutes handicap to their economic development. 56.  A cooperative approach to each specific transit situation should be encouraged so that all available possibilities for improving particular route and transit facilities could be considered together and each of the transit routes available to a particular land-locked country could be evaluated in order to determine the best available options for future progress.

B.  Regional and subregional planning 57.  The land-locked developing countries can derive substantial longer-term benefits from the improvements of regional and sub-regional transport infrastructure. The international organizations and financial institutions should give high priority in their assistance programmes for such projects. 58.  Land-locked countries should benefit from the harmonization of transport planning and the promotion of joint ventures in the field of transport at the subregional level. Where applicable, similar actions should be encouraged on bilateral basis between the developing land-locked countries and the transit countries. 59.  Interested land-locked countries, in cooperation with other countries, might consider creating a cooperative air transport development projects based upon a central organization, which could undertake the necessary planning studies with appropriate technical assistance.

C. Commercial policy 60.  The generalized system of preferences should be extended to cover agricultural products, both primary and processed forms, of export interest to the land-locked countries. The rules of origin in respect of products of the land-locked countries should be liberalized. Pending the removal of quota restrictions applicable to the generalized system of preference, ceilings should be calculated on the basis of the cost at the port of export of land-locked developing countries.

D. Transport 61.  At the request of the land-locked developing countries and their transit neighbours, technical and financial assistance should be provided for studies of the feasibility of extending the railway system of transit countries into land-locked countries. 62.  Technical and financial assistance should be provided by the international community in the form of grants or in the form of special concessional loans for the construction and maintenance of transit roads both in land-locked countries and transit countries and for the purchase and maintenance of road transport vehicles. 63. All land-locked countries can use air transport for the transport of low-bulk/high-value goods. In additions they would need to develop air transport to promote tourism for which most

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of them have a high potential. Therefore it is suggested that each land-locked country should have one fully equipped international airport and that feasibility studies of providing such airports should be undertaken as a matter of urgency. For this international organizations and financial institutions should provide technical and financial assistance. 64. The possibility of establishing alternative transport routes on a competitive basis from land-locked countries to the sea should be explored and developed. For this purpose, technical assistance is required from the international community.

E. Communications 65.  Fast and reliable communications links between the commercial centers of the land-locked countries with the transit ports on the one hand and with the overseas markets on the other hand should be developed. 66.  Financial and technical assistance should be provided for the improvements and creation of communications facilities in the land-locked developing countries.

F.  Restructuring of the economy 67.  Land-locked developing countries require technical and financial assistance for the restructuring of their economies. It would be worthwhile for these countries to explore the possibility of developing import substitution industries, which produce high-bulk/low-value goods. This would save them incurring high transport costs for their imports from other countries. Furthermore, the development of export industries producing high-value/low-bulk goods should receive high priority. International organizations and financial institutions should provide technical and financial assistance for this purpose and accord high priority for the establishment of pilot projects to achieve the aforesaid objective. 68.  In order to enable land-locked countries to derive substantial gains from regional economic cooperation, UNCTAD should, on request, provide technical assistance to these countries in formulating suitable regional economic cooperation agreements with their neighbouring countries. 69. Land-locked countries require financial and technical assistance in order to carry out a detailed survey and development of their mineral and energy resources and to study new forms of transport, which will enable them to exploit such resources.

G.  Port facilities and development 70.  Ways and means to develop and improve the transit and port facilities should be explored and undertaken. 71.  On request from the countries concerned, the international organizations such as UNCTAD and IDA should provide technical and financial assistance with a view to improving and facilitating the use of the transit port of transit areas therein specifically for the land-locked developing countries.

H.  Flow of external resources 72.  The criteria, terms and conditions governing the flow of bilateral and multilateral financial and technical assistance to the land-locked developing countries should be not less favourable than those accorded to the least developed among the developing countries. In particular, it is important to adopt, inter alia, the following measures: (a)  Financial assistance to these countries on the most highly concessional terms possible; (b)  A substantially increase flow of financial and technical assistance;

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(c)  More flexible criteria for the evaluation of financial and technical assistance projects to correspond to the particularly difficult circumstances of these countries; (d)  Criteria for the approval of such projects, which would take full account of long—term social benefits including secondary effects; (e)  Substantial provision for financing the local and foreign exchange costs of the projects; (f)  Minimization and, wherever possible, waiving of counterpart requirements for technical assistance; (g)  Particular efforts to help these countries in the formulation and preparation of projects and in speeding up their implementation. 73. The multilateral and bilateral financial institutions, including the international organizations, should intensify their efforts in raising the flow of resources of develop and maintain the economic and transport infrastructures necessary for the land-locked developing countries.

I.  Shipping freight and transit costs 74.  Liner conferences should provide preferential and promotional freight rates to the products exported by or imported into the land-locked developing countries. 75.  Ways and means have to be explored to further reduce the transit costs, wherever possible. 76.  The developed countries and international financial institutions should provide financial and technical assistance to explore and develop alternative transport routes, on a competitive basis, to the sea. 77.  TIR warehouses should be established in the land-locked countries on a preferential basis.

J.  Air transport and tourism 78.  The regional commissions and other bilateral and multilateral organizations should assist the land-locked developing countries in the development of air transport and tourism with a view to maximizing their foreign exchange earning capacity through merchandise exports or invisible. 79.  Financial and technical assistance should be provided to the land-locked developing countries on exceptionally favourable terms for the purchase of aircraft and other equipment related to air transport.

K. Special fund 80.  The Secretary-General of UNCTAD should prepare the modalities for immediate operation of the newly created United Nations special fund for land-locked developing countries in order to compensate them for their additional transport costs. 81.  The developed countries and others who are in a position to do so should undertake immediate action to contribute to this special fund in order to make it operational.

L.  Review of progress 82.  The countries members of UNCTAD, especially the developing countries, should review measures, which they have taken in favour of the land-locked developing countries, including the means by which such measures are undertaken. 83.  The Secretary-General of UNCTAD, in consultations with other international organizations, should formulate and submit to the fourth session of the Conference at Nairobi a programme of action in favour of the land-locked developing countries with a view to developing their: (a)  Transport infrastructure; (b)  Foreign trade sector.

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M.  Free access to and from the sea 84.  The developing land-locked countries reaffirm their right of free access to and from the sea, a right affirmed by the fourth Conference of Heads of State or Government of Non-Aligned Countries and by the Dakar Conference on Raw Materials.12 Some developing transit countries reserved their position on the matter.

V.  Action on special measures applicable to the least developed, developing island and developing land-locked countries A.  Natural disasters 85. Assistance should be extended to the least developed, developing island and developing land-locked countries to provide for the likelihood of natural disasters in elaborating their economic development programmes. 86.  Technical and financial assistance in establishing national and regional schemes for disaster preparedness, insurance or relief, should be provided. 87.  The Secretary-General of UNCTAD is invited to communicate to the competent organizations within the United Nations system the earnest desire of the Group of 77 that these organizations should intensify their research and projects under way concerning the forecasting of natural disasters and that they should make the results readily available to the countries concerned.

B. Industrialization 88.  Least developed, developing island, and developing land-locked countries, especially those lacking natural resources, are dependent on industrialization for their export earnings. Special assistance is necessary in their efforts towards industrialization in order to help them overcome those problems created by the limited size of their internal markets.

C.  Transfer of technology 89. Least developed, developing island and developing land-locked countries face particular problems in developing and support their own technological capacity. These problems should be acknowledged in the elaboration of a code of conduct on the transfer of technology, and appropriate remedies should be included.

D.  Review of progress 90.  The Secretary-General of UNCTAD, in consultation with the international organizations and the regional commissions, should keep under constant review the progress in the implementation of the special measures in favour of least developed countries, land-locked developing countries and island developing countries called for in the relevant UNCTAD recommendations and resolutions as well as in the Programme of Action on the Establishment of a New International Economic Order, and report to the Trade and Development Board.

12

Conference of Developing Countries on Raw Materials (Dakar, 4-8 February 1975).

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Section seven Economic cooperation among developing countries Measures of support by developed countries and international organizations to the programme of economic cooperation among developing countries 1.  The Third Ministerial Meeting of the Group of 77 has adopted a programme of economic cooperation among developing countries and has considered the concrete measures through which effective and substantial support for this programme should be forthcoming from the developed countries and international organizations. 2.  The Ministerial Meeting recognizes that however much the developing countries mobilize their own resources, it would not be possible for them to achieve their own objectives of development without concomitant action on the part of developed countries and the institutions in the international community. It likewise affirms the principle of interdependence and that the growth and development of the developing countries and the prosperity of the international community as a whole depend upon the prosperity of its constituent parts. 3. In conformity with section VI, paragraph 1, of resolution 3362 (S-VII) adopted by the General Assembly at its seventh special session urging the developed countries and the United Nations system to provide, as and when requested, support and assistance to developing countries in strengthening and enlarging their mutual cooperation, the Ministerial Meeting considers that: (a)  The developed countries, both the developed market-economy countries and the socialist countries of Eastern Europe, should commit themselves to abstain from adopting any kind of measures or action that might undermine the decisions of developing countries in favour of the strengthening of their economic cooperation and the diversification of their production structures; (b)  The developed countries, both the developed market-economy countries and the socialist countries of Eastern Europe, should agree to support decisions taken by the developing countries in pursuance of the adoption and implementation of a programme of economic cooperation among themselves, including the following measures: (i)  Support of existing and new programmes of interregional, regional and subregional economic cooperation, and integration among developing countries, including those aimed at full economic integration as well as those with more limited trade, monetary and sectoral objectives; (ii)  Support of developing countries in the setting up and functioning of multinational marketing enterprises. This support should include the removal of obstacles to their operation; (iii)  Allocation of funds within their development assistance programmes for the promotion of multinational ventures of developing countries, such funds to be applied to the financing of feasibility studies, project inventories and the building up and assessment of available technologies and technological research; (iv)  Promotion and financing of multilateral interest subsidization schemes by developed countries to reduce the cost of loans by surplus developing countries to other developing countries; (v) Support, including financial support, to programmes of economic and technical cooperation of developing countries; (vi)  Facilitating the participation of developing countries, on a sub-contractual basis in projects undertaken by the developed countries;

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(c)  The developed market-economy countries should in particular: (i)  Support preferential trade arrangements among developing countries, including those of limited scope through technical assistance and through appropriate policy measures in international trade organization; (ii)  Adopt measures to induce the ‘unpacking’ of the equipment and technological components in sales contracts of their exporting firms, so as to encourage importation of technology by developing countries from other developing countries; (iii)  Provide technical support for the establishment of financial and capital markets in developing countries to help strengthen direct financial links between surplus and deficit developing countries; (iv)  Remove restrictions, taxes and other obstacles that discriminate between borrowing developing countries and domestic borrowers seeking access to their capital markets; (v)  Support the expansion of existing and the creation of new export credit finance and guarantee schemes by the World Bank and regional and subregional development banks; (d)  The socialist countries of Eastern Europe should lend their support, in particular through: (i)  The provision of technical assistance for the setting up and operation of State import and export enterprises of the developing countries, both at the national and multinational levels; (ii) The promotion of links, wherever appropriate, between the transferable rouble system of the International Bank for Economic Cooperation and subregional and regional payments arrangements of developing countries; (iii)  Technical assistance to developing countries engaged in the formulation of joint investment programmes in the productive sectors, as well as technical, commercial and financial support to those countries in the implementation of such programmes; (e)  International financial institutions, including regional and subregional ones, should give their strongest support to the programme of economic cooperation among developing countries, particularly by: (i) Adjusting their internal operational and financial policies so as to take specific account of the particular difficulties involved in the promotion of multinational projects. This may be achieved by: The creation of special promotional units within these institutions; The creation of pre-investment funds for the preparation and promotion of multinational investment projects; and The earmarking of loan funds for that type of project; (ii)  Making use of part of their resources for equity financing of multinational enterprises up by developing Member State.

Section eight Trade relations among countries having different economic and social system Multilateral action for expanding the trade and economic relations between countries with different economic and social systems, in particular action, which would contribute to the development of developing countries 1.  In view of the expansion of East-West trade, countries participating in this trade should take fully into account the interest of the developing countries and ensure that it provides them with ever-increasing trade opportunities.

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2.  Steps should be taken by the developed market economy countries and the socialist countries of Eastern Europe to expand multilateral, including tripartite, forms of economic cooperation to promote the interests of developing countries.

I.  Expanding the trade and economic relations between the socialist countries of Eastern Europe and the developing countries 3.  (a) Areas of economic cooperation should be widened through the identification and adoption of measures to promote an increase of exchanges with developing countries; (b)  At the fourth session of the United Nations Conference of Trade and Development, the socialist countries of Eastern Europe should agree to present concrete proposals to the Trade and Development Board at its sixteenth session regarding cooperation between the socialist countries of Eastern Europe and the developing countries on trade and development. 4.  All socialist countries of Eastern Europe should eliminate or reduce their tariff and non-tariff barriers on imports from developing countries on the basis of non-reciprocity and non-discrimination. 5.  Those socialist countries of Eastern Europe which have not already done so should implement without delay their schemes of generalized preferences or other similar measures. Those countries which have already implemented their schemes should expand and improve them with respect to the products covered and the list of beneficiary developing countries. The socialist countries of Eastern Europe should not link their schemes or the application of those schemes to bilateral contracts or agreements with beneficiary countries. 6.  The CMEA member countries should give due consideration to the trade needs of developing countries when their economic development plans are being formulated and coordinated within CMEA, particularly by making appropriate provisions in their plans for an increasing volume of imports from the developing countries, especially in processed and semi-processed forms. 7.  The socialist countries of Eastern Europe should adopt policies and measures, which may ensure growth of demand and consequent imports from developing countries. 8.  In order to facilitate trade between the socialist countries of Eastern Europe and developing countries: (a)  The socialist countries of Eastern Europe should not demand equivalent purchases from developing countries in order to enable the developing countries to expand their exports; (b)  Trade between the socialist countries of Eastern Europe and developing countries should be covered by appropriate payments arrangements, including where required provisions for the convertibility of the surplus balances of developing countries into convertible currencies; (c)  The CMEA payments arrangements in transferable roubles should be improved to take into account the trade needs of developing countries, particularly by making it possible for developing countries to transfer their positive balance from one CMEA country to another after an appropriate time lag in order to allow for the necessary adjustments to be made within the CMEA countries. 9.  Steps should be taken by the socialist countries of Eastern Europe to: (a)  Provide adequate opportunity to developing countries to participate in joint ventures in third countries; (b)  Where appropriate, progressively vacate industries in which the comparative advantages lie with developing countries or which involve processing of raw materials in favour of developing countries; (c)  Establish production capacities in developing countries as appropriate.

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10.  The socialist countries of Eastern Europe should take appropriate steps effectively to increase their financial and technical assistance to developing countries with a view to meeting without delay their commitment to achieve the targets for such assistance in the International Development Strategy for the Second United Nations Development Decade, in particular the target of 1 per cent of their GNP. The socialist countries of Eastern Europe should present concrete proposals in this regard within UNCTAD by the end of 1976 at the latest. 11.  International economic organizations of the CMEA countries, as well as their banking institutions, such as the Investment Bank for Economic Cooperation and the International Investment Bank should: (a)  Expand their facilities and the size of the Special Fund for Financing Programmes of Economic and Technical Assistance to Developing Countries for financial assistance to developing countries; (b)  Activate ways and means, including the drawing up of programmes, through which that Fund could be effectively utilized by the developing countries; (c)  Undertake to promote the use of the Fund for the development purposes of the developing countries through the provision of information on the terms and conditions of the Fund, including its facilities. 12.  The CMEA secretariat should facilitate the flow of information to developing countries, directly or through the UNCTAD Technical Assistance Unit and the International Trade Centre UNCTAD/GATT, on trade opportunities in CMEA countries for developing countries. 13.  The Secretary-General of UNCTAD should enter into appropriate consultations with the CMEA member countries, and the CMEA secretariat, in order to identify trade opportunities for developing countries resulting from the implementation of various multilateral schemes by the CMEA countries, and in the light of these consultations should consult with other interested international organizations, particularly UNIDO and FAO to assist the developing countries to participate effectively in such schemes.

II.  Strengthening institutional arrangements 14.  The UNCTAD consultative machinery, for dealing with problems in trade and economic relations among countries having different economic and social systems should be improved and made more flexible in order to enable the Secretary-General of UNCTAD, in cooperation with the international organizations concerned, to convene consultations at the request of interested countries to discuss new areas of economic and industrial cooperation which may promote the trade interests of developing countries and the possibility of coordinating the planning efforts of interested countries. 15. Technical assistance activities of the UNCTAD secretariat designed to promote trade between the socialist countries of Eastern Europe and the developing countries should be intensified in the fields of (a)  the dissemination of information on trade, trade policies and practices (b) the training of personnel, and (c) the promotion of business contracts. In order to ensure effective implementation of these activities. UNCTAD should make full use of the International Trade Centre UNCTAD/GATT and should establish close cooperation with UNIDO, UNDP and the regional commissions. In providing technical assistance, the UNCTAD secretariat should assist, in particular, the developing countries, which have just entered or may wish to enter into trade and economic relations with the socialist countries of Eastern Europe.

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Section nine Review of institutional arrangements in UNCTAD I. Introduction 1.  Resolution 1995 (XIX) of the General Assembly and resolution 80 (II) of the United Nations Conference on Trade and Development provide for a regular review of the institutional arrangements in UNCTAD. The General Assembly, in its resolution 3362 (S-VII), decided to establish Ad Hoc committee on the Restructuring of the Economic and Social Sectors of the United Nations System and recommended that the Ad Hoc committee should take into account in its work, inter alia, ‘the results of the forthcoming deliberations on institutional arrangements of the United Nations Conference on Trade and Development at its fourth session’.13 2.  There are substantive reasons for a review of the institutional arrangements of UNCTAD at the fourth session of the Conference. Among these are the major changes, which have taken place in the world economic situation, which have led to the recognition of the development issue as a major factor in international economic relations. Partly in response to these changes, the General Assembly, in its resolution 3201 (S-VI) and 3202 (S-VI), had elaborated a Declaration and Programme of Action on the Establishment of a New International Economic Order, and, by its resolution 3281 (XXIX), had adopted the Charter of Economic Rights and Duties of States. 3. The realization of the new international economic order will require effective negotiating machinery to deal with international economic issues and to translate broad principles and guidelines, such as those formulated by the General Assembly, into specific policies and concrete agreements. The scope of these negotiations will comprise policies and measures, which have a substantial impact on the level, composition and conditions of international flows of goods and services, technology, payments and financial resources. While existing institutions deal with certain aspects of this broad range of issues, there are many gaps which need to be filled, inter alia, in relation to the interrelationships between problems and measures proposed in these different areas. 4.  Among the organizations of the United Nations system with responsibilities for international economic issues. UNCTAD (a subsidiary organ of the General Assembly) has been the source and the advocate of many of the concepts, which are now key elements of the policy statements of the General Assembly. It has also been entrusted by the General Assembly with broad negotiating functions in the fields covered by them. The universality of its membership and the breadth of its terms of reference quality UNCTAD to play a decisive role in the further elaboration and implementation of the new international economic order.

II.  The future role of UNCTAD 5.  The above considerations point to the need to transform UNCTAD into an effective institution of the United Nations system for deliberation, negotiation and review in the field of trade and international economic cooperation, maintaining its close relationship with the General assembly. This would be a step towards the final objective of creating a comprehensive world trade and development organization. 6.  The vital function of UNCTAD as a generator of new ideas and new policy approaches should be retained and strengthened in order to increase its effectiveness as an international organ for improving the conditions of international trade and accelerating the economic development of the developing countries. 13

General Assembly resolution 3362 (S-VII), section VII, para. 1.

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7.  Furthermore, there is a need to strengthen the negotiating function of UNCTAD in order to enable UNCTAD to play its full part in translating principles and policy guidelines, including those enunciated by the General Assembly, into specific policies and concrete agreements, and to make its contribution to the establishment of the new international economic order. 8. The competence of UNCTAD (the Conference, the Board and the secretariat) should be strengthened, taking into account the interests of the developing countries and the need for it to evolve into an effective central negotiating organ of the United Nations to deal with issues in the field of trade and international economic cooperation and thereby directly assist the General Assembly in its efforts to realize the new international economic order. Thus, UNCTAD would continue to exercise an overview of negotiations being conducted elsewhere in respect of issues concerning trade and international economic cooperation. In consequence of its cross-sectoral responsibilities, UNCTAD would also assist the General Assembly by keeping under review the interrelationships between the relevant problem areas and the measures proposed in relation thereto, and by making appropriate recommendations. 9.  On the basis of these principles, the necessary organizational changes in respect of the machinery of UNCTAD, including those set out below, should be made in order to strengthen the decision-making and negotiating capacity of UNCTAD. Moreover, the name of UNCTAD should be changed to describe more accurately its character as the organization within the United Nations responsible for the functions described above.

III.  The Conference and the Trade and Development Board 10.  The membership of the Trade and Development Board should be open to all members of UNCTAD. 11.  In accordance with Board decision 45 (VII), paragraph 9, and Conference resolution 80(III), paragraph 8, which envisages the holding of sessions of the Board at a ministerial level, the Board should meet in ministerial sessions once between the fourth and fifth session of the Conference. After the fifth session of the conference, the Board should meet at the ministerial level every two years unless it decides otherwise. Such a ministerial session should normally not last more than one week and should be preceded by a meeting of senior officials to make the necessary preparations. 12.  The fifth session of the Conference should be held not later than three years after the fourth session, in accordance with General Assembly resolution 1995 (XIX), paragraph 2, as amended, which provides that the Conference shall normally be convened at intervals of not more than four years.

IV.  Machinery for strengthening economic cooperation among developing countries 13.  The need for appropriate institutional arrangements should be examined in order to provide a framework that would impart further impetus to the promotion of economic cooperation among developing countries. Such arrangements would not only facilitate periodic review of progress made, but also help to evolve new and mutually self-supporting forms of cooperation. Among the possibilities that could be considered in this regard would be a strengthening of the role of UNCTAD, including the establishment of a Committee on Economic Cooperation among Developing Countries, whose function would be to consider measures to provide, as and when requested, support and assistance to developing countries in strengthening and enlarging their mutual cooperation at subregional, regional, and interregional levels.

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4.  Fourth Ministerial Meeting of the Group of 77, Arusha 12–16 February 1979, in preparation for UNCTAD V, Manila, 7 May–3 June 1979 a.  The Arusha Programme of Collective Self-Reliance and Framework for Negotiations Contents I.  The setting II.  Programme for Collective Self-Reliance III.  Framework for negotiations Item 8 of the provisional agenda for UNCTAD V Evaluation of the world trade and economic situation and consideration of issues, policies and appropriate measures to facilitate structural changes in the international economy, taking into account the interrelationships of problems in the areas of trade, development, money and finance with a view to attaining the establishment of a new international economic order and bearing in mind the further evolution that may be needed in the rules and principles governing international economic relations and UNCTAD’s necessary contribution to a New International Development Strategy for the Third United Nations Development Decade Item 9 of the provisional agenda for UNCTAD V: Developments in international trade Item 10 of the provisional agenda for UNCTAD V: Commodities Item 11 of the provisional agenda for UNCTAD V: Manufactures and semi- manufactures Item 12 of the provisional agenda for UNCTAD V: Monetary and financial issues Item 13 of the provisional agenda for UNCTAD V: Technology Item 14 of the provisional agenda for UNCTAD V: Shipping Item 15 of the provisional agenda for UNCTAD V:  Least developed among developing countries Item 16 of the provisional agenda for UNCTAD V:  Land-locked and island developing countries Item 17 of the provisional agenda for UNCTAD V: Trade relations among countries having different economic and social systems Item 18 of the provisional agenda for UNCTAD V: Economic cooperation among developing countries Item 19 of the provisional agenda for UNCTAD V: Institutional issues

I.  THE SETTING 1.  We, the representatives of the developing countries, members of the Group of 77, having met in our fourth ministerial session at Arusha, United Republic of Tanzania, from 12 to 16 February 1979, to reaffirm our spirit of solidarity and collective session of the United Nations Conference on Trade and Development to be held in Manila in May 1979, as well as on a programme of action on collective self-reliance and mutually beneficial cooperation among ourselves.

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2.  Recognizing that our meeting takes place in the midst of the severest crisis of the world economy after the Second World War; 3.  Conscious of the responsibility placed on the developing countries to find effective solutions to the acute social and economic problems facing them and to work out strategies, which will promote self-reliance and effect basic structural changes, permanently remove the conditions of underdevelopment and accelerate the rapid socio-economic and technological transformation of our societies; 4.  Recalling General Assembly resolutions 3201 (S-VI) and 3202 (S-VI) on the Declaration and the Programme of Action on the Establishment of a New International Economic Order and 3201 (XXIX) on the Charter of Economic Rights and Duties of States, as well as 3362 (S-VII) on Development and International Economic Cooperation; 5.  Recalling also the Manila Declaration and Programme of Action adopted by the Third Ministerial Meeting of the Group of 77, which consolidated the negotiating positions of developing countries for the fourth session of the United Nations Conference on Trade and Development in May 1976; 6.  Recalling the initiatives taken at the fourth session of UNCTAD and subsequent decisions of that Conference to commence international negotiations on a wide range of issues in the field of trade and development, as part of the effort of developing countries to restructure economic relations with developed countries and to work towards the establishment of the New International Economic Order; 7.  Convinced that just peace is not only the absence of war but also must provide conditions for political freedom, the sustained and accelerated development of developing countries and for the promotion of world orderly development; 8.  Convinced also that economic and social consequences of the arms race are so detrimental that its continuation is obviously incompatible with the implementation of the New International Economic Order and that resources released as a result of the implementation of disarmament measures should be used in a manner which will help to promote the well-being of all peoples and to improve the economic conditions of the developing countries; 9.  Having reviewed the recent developments in the world economy and evaluated the results so far achieved in the negotiations imitated, especially at the fourth session of UNCTAD; 10.  Express deep disappointment and grave concern that the negotiations undertaken since the fourth session of UNCTAD have not yielded the expected results so far and that no significant progress has been achieved in the implementation of the Programme of Action on the Establishment of a New International Economic Order owing to the lack of political will on the part of most of the developed countries; 11.  Record profound dissatisfaction at the failure to make adequate progress and produce concrete results in the negotiations on the Integrated Programme for Commodities, primarily owing to the persistent intransigence on the part of most of the developed countries and their refusal to adopt constructive positions on the basic objectives and goals of the programme; 12.  Express further our profound dissatisfaction that, despite the commitment made at the fourth session of UNCTAD and in many other fora, most developed countries have not yet evinced the political will necessary for the successful conclusion of the negotiations on a Common Fund which will serve as a key instrument to attain the objectives of UNCTAD resolution 93 (IV) and express the hope that a discernible change of attitude will be shown at the resumed negotiating session so that the negotiations will be successfully concluded; 13.  View with deep concern the trends in the Multilateral Trade Negotiations which indicate that, unless corrective measures are introduced, outcome of these negotiations will fall far short of the objectives set forth for the trade of developing countries by the Tokyo Declaration and may result

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in the continuation of a trading system which would be increasingly unfavourable to developing countries; 14.  Express profound disappointment that the negotiations on the adoption of the International Code of Conduct for the Transfer of Technology have not yet reached a successful conclusion and hope that the forthcoming resumed session will achieve positive results; 15.  Strongly urge that developed countries should adopt a more constructive approach and cooperated to bring the ongoing negotiations to a successful conclusion before the fifth session of UNCTAD, to enable the fifth session to meet in a positive atmosphere and chart the course for more constructive and fruitful international cooperation in trade and development in the 1980s. 16.  Express grave apprehension that failure to achieve concrete results in ongoing negotiations before the fifth session could lead to a serious loss of confidence in the international negotiating process and seriously jeopardize the prospect for the international cooperation; 17.  View with growing concern the persistent crisis in the international economic order, which is manifested in the developed countries, such as in their inability to control the chronic imbalances in their international payments, in the continuing high levels of unemployment and inflation, combined with now structural rigidities in the economics and long-term prospects of low growth, and whose features in the developing countries include mainly the continuing deterioration in terms of trade, new barriers to exports of their manufactures and consequently new constraints on export earning capacity, the growing burden of external indebtedness, persistent mass poverty and inadequate level of transfer of real resources; 18.  View with deep concern the inequities and injustices in the prevailing order which have cast an avoidable and intolerable proportion of the global burden of readjustment on the developing countries and seriously retarded their development effort; 19.  Express alarm at the serious disruptive impact which the disorder in the international monetary system, global inflation and the high degree of instability in exchange rates of major currencies continue to have on the developing countries, especially in the heavy loss of revenues on their raw materials and other exports and the consequent effect on the management of the economies; 20.  Strongly deplore the policies adopted by developed countries in the field of trade, specifically the intensification of protectionism and their attempts to formulate arbitrary concepts, such as graduation, selectivity and access to supplies, which constitute serious obstacle to the development of developing countries; 21.  Emphasize that the continuing malaise in the international economic system cannot be regarded as a cyclical phenomenon but needs to be recognized as the manifestation of deep-seated structural mal-functioning which, therefore, calls for fundamental structural changes in the international economic system; 22.  Stress that the existing international economic order not only fails to support the development process of the developing countries but is also functioning inefficiently; 23.  Reaffirm the urgent need to greatly enhance the transfer of resources from the developed countries to the developing countries so as to promote rapid economic development and thus enable them to eradicate mass poverty and improve the standard of living of the people of the developing countries; 24.  Underscore the need for developed countries to recognize the structural nature of the current economic crisis and the ineffectiveness of pursuing policies, which assume that their economic recovery can be achieved independently of the structural reform of the international economic system;

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25.  Recognize that on the part of both developed and developing countries there is the emerging perception of the interdependence of nations and the close interrelationship of issues in the fields of trade, money, finance and development; 26.  Consider, therefore, that it is necessary to promote genuine mutuality of interests in the structural changes that are needed in the international economic system and to recast the world order within a framework of independence, equity and genuine sovereign equality; 27.  Consider it imperative therefore that the international community accelerates the implementation of the Programme of Action on the Establishment of the New International Economic Order; 28.  Consider that the essential economic elements of such an accelerated implementation of the programme include negotiated shifts in the prevailing patterns of trade and production which eliminate protectionism in manufacturing agricultural and other sectors, promote an equitable global distribution of productive capacity and accelerate the industrialization of developing countries; the restructuring and development of the primary commodity sector in the world economy, with improved terms of trade and greater shares for developing countries in processing, marketing and distribution; an international framework conducive to the rapid growth of technological capacity of developing countries and an effective framework for international financial cooperation which ensures top developing countries vastly increased access to resources; 29.  Reaffirm that the preparation and implementation of the New International Development Strategy for the third United Nations Development Decade should come within the framework of the implementation of the Programme of Action of the Establishments of the New International Economic Order; 30.  Consider further that the basic structural and economic problems facing the least developed countries are so severe that extraordinary additional measures, especially designed in a comprehensive programme as an essential feature of the New International Economic Order, are required; 31.  Consider also that there is a need for specific action to overcome economic problems arising from the geographical handicaps facing the land-locked and island developing countries as well as the economic problems facing the most seriously affected countries; 32.  Reiterate the vital importance of basing the restructured world economic order and international economic relations within it on full respect for the principles of sovereign equality among independent States, non-intervention in internal affairs, respect for different economic and social systems and the right of each State to exercise full and permanent control over its own natural resources and all its economic activities without suffering any kind of economic aggression for discrimination; 33.  Emphasize that the governments and peoples of developing countries shall continue to mobilize their resources in support of their common struggle against colonialism, foreign aggression and occupation, racism, apartheid and all forms of foreign domination and exploitation, so as to put an immediate end to these major obstacles to development. They reiterate their unswerving support for the heroic struggles of the peoples of Namibia, Zimbabwe, Azania and Palestine to achieve their liberation and to regain effective control over their natural resources and economic activities. They are determined to exercise full permanent sovereignty over their wealth, natural resources and economic activities and the right to restitution and full compensation for their exploitation and depletion of and damages to the natural and all other resources of the peoples, countries and territories subjected to those practices; 34.  Recognize that developing countries need to enhance their collective bargaining strength and exercise their countervailing power, thereby creating the compulsions, which would make the developed countries willing to negotiate the desired changes in the international economic system;

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35.  Reaffirm that such countervailing power flows from the individual and collective self-reliance of developing countries, and that the basis of collective self-reliance rests on the intensification and strengthening of economic linkages among developing countries; 36.  Underline the vital importance of initiatives which member governments of the Group of 77 take to accelerate the development and transformation of their economies through the process of collective self-reliance which include an intensification of their joint and concerted efforts to mobilize their resources and markets for building a structure of genuine economic interdependence and complementarity between their economies and explore areas of commonality of interest as well as the strengthening of their solidarity in their negotiations with the developed countries for the establishment of the New International Economic Order; 37.  Resolve therefore to give the highest priority to implementing economic cooperation among developing countries based, inter alia, on the Mexico City Programme as well as on the Buenos Aires Plan of Action and resolutions adopted by the United Nations Conference on TCDC, as an essential element in the establishment of the New International Economic Order and to consider the development of an appropriate institutional framework to help in its implementation, as well as strengthen the negotiating capacity of developing countries; 38.  Reaffirm our commitment to the solidarity of the developing countries, which makes it possible to harmonize diversity of interests, solve unified positions and strengthen the collective bargaining power of developing countries; 39.  Emphasize that developed countries need to undertake a restructuring of their economies which enable them to adjust speedily and smoothly to the shifting patterns of comparative advantage in the international division of labour, and at the same time should seek to initiate more basic reorientations in their patterns of consumption growth and development to create the conditions for a more rational and more equitable use of the earth’s resources; 40.  Reaffirm that developing countries perceive the structural changes in the international economic system as being significant and essential for creating the external environment conducive to carrying through the socio-economic and institutional transformation within their societies which will rapidly modernize and expand their production system, increase their technological capability, promote their self-reliance, eliminate mass poverty, and establish an equitable social order. 41.  Consider it imperative, as a key element of the reform of the institutional framework of international economic relations, that developing countries should have an equitable share in global decision-making and management of the world economy, and for this purpose, they need to participate more effectively in the management of the international economy to ensure not only that policies in the field of trade, money and finance are mutually consistent and are supportive of development, but also that they promote the movement towards long-term restructuring; 42.  Consider, at the same time, that with the breakdown of the monetary and trading system established after the second World War and the emergence of major new elements in the international system, there is urgent need to recast the existing rules of principles governing international trade and economic relations and to align them with the requirements of a restructured world economic order; 43.  Urge that, in order to ensure that the international negotiating process functions effectively and facilitates the implementation of the structural reform of the international economic order, the machinery for negotiations within the United Nations should be adequately strengthened; 44.  Recognize the evolving role of UNCTAD as a major form for the evaluation and review of world, economic developments in the context of its mandate, initiating discussions on new concept and policies and even more for negotiations on a wide range of issues relevant to the international economic relations and, in this context, the need to exchange its capacity to perform its evolving fluctuations effectively;

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45.  Recognize further UNCTAD as the principle instrument of the General Assembly for international economic negotiations on international trade and development, particularly in the context of negotiations on the establishment of the New International Economic Order; and reaffirm this role; 46.  Therefore unanimously adopt, inter alia, the following Programme for Collective Selfreliance and Framework for Negotiations.

II.  PROGRAMME FOR COLLECTIVE SELF-RELIANCE Strongly aware that the attainment of collective self-reliance among developing countries calls for meaningful implementation measures over a sustained period of time, The Fourth Ministerial Meeting of the Group of 77, Recalling General Assembly resolutions 1995 (XIX) of 30 December 1964, as amended, 3177 (XXVIII) of 17 December 1973, 3241 (XXIX) of 29 November 1974, 3442 (XXX) of 9 December 1975, 31/119 of 16 December 1976, 32/180 of 19 December 1977 and 33/195 of 29 January 1979 on Economic Cooperation among Developing Countries, Reaffirming the principles established in the Declaration and the Programme of Action on the Establishment of a New International Economic Order, contained in General Assembly resolution 3201 (X-VI) and 3202 (S-VI) of 1 May 1974; the Charter of Economic Rights and Duties of States, adopted in General Assembly resolution 3281 (XXIX) of 12 December 1974; and the provisions of General Assembly resolution 3362 (S-VII) of 16 September 1975 on development and international economic cooperation, Reaffirming further the principles contained in Concerted Declaration 25 (II) adopted by the United Nations Conference on Trade and Development on 26 March 1968; Conference resolution 48(III) of 18 May on trade expansion, economic cooperation and regional integration among developing countries, as well as Conference resolution 90(IV) and 92 (IV) of 31 May 1976 and Trade and Development Board decision 142(XVI) of 23 October 1976 on the establishment of the Committee on Economic Cooperation among Developing Countries and 161(XVII) of 2 September 1977 on the terms of reference of the Committee on Economic Cooperation among Developing Countries, Recalling also the Action programme on Economic Cooperation and the pertinent resolutions approved by the Fifth Committee of Heads of State or Government of Non-Aligned Countries held in Colombo from 16 to 19 August 1976, relative to cooperation among developing countries as well as the recommendation on this item made by the Conference of Ministers of Foreign Affairs of the Non-Aligned Countries, held at Belgrade from 24 to 29 July 1978, Recalling its programme on economic cooperation among developing countries contained in resolution adopted at the Third Ministerial Meeting of the Group of 77 held at Manila from 26 January to 7 February 1976, which provided a basic framework for the development of further action to turn into reality the objectives of economic self-reliance of the developing countries. Recalling further the Buenos Aires Plan of Action and resolution adopted at the United Nations Conference on Technical Cooperation among Developing Countries, held from 30 August to 12 September 1978, Mindful that a strategy of collective self-reliance should be viewed as an integral part of a global economic system, specifically as an essential element of an overall strategy for development encompassing the restructuring of international economic relations, and that Economic Cooperation among Developing Countries is a key element in a collective self-reliant strategy and thus becomes both an essential part of and an instrument for the necessary structural change required for a balanced and equitable process of world economic development, ushering in a new set of relationships based on mutual interests and accommodations,

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Aware that a strategy of collective self-reliance embodies the potential for joint action by developing countries that will strengthen their capacity to intensifying trade and economic linkages among developing countries is part of the structural change needed for a more rational international division of labour, leading to a more efficient use of world resources, Convinced that more intensive economic cooperation among developing countries is beneficial to the entire international economy, 1.  Welcomes with great satisfaction the decisions adopted at the Conference on Economic Cooperation among Developing Countries, held at Mexico City from 13 to 22 September 1976, which developed further the programme for economic cooperation among developing countries in accordance with paragraph 14 of resolution No.1 adopted at the Third Ministerial Meeting of the Group of 77; 2.  Takes note of the recommendations made by the Working Party on Trade Expansion and Regional Economic Integration among developing countries, pursuant to decision A.I.1 of the Mexico City Conference on Economic Cooperation among Developing Countries; 3.  Takes note of the measures of support and coordination of activities undertaken within the United Nations system in the field of economic cooperation among developing countries, as reported by the Secretary-General of the United Nations to the thirty-third session of the General Assembly,1 4.  Welcomes the establishment of UNCTAD Committee on Economic Cooperation among Developing Countries; 5.  Welcomes further substantive work carried out by UNCTAD in pursuance of the work programme adopted by the Committee on Economic Cooperation among Developing Countries; 6.  Considers that, in accordance with the Manila Declaration and Programme of Action and the Mexico City Conference, the time has now come for concrete action; 7.  Considers further more that during the last three years considerable progress has been made in elaborating further the details of the programme on economic cooperation among developing countries and that the technical information already available justifies the adoption of detailed operational guidelines and objectives for implementation of that economic cooperation among developing countries over the next few years; and therefore; 8.  Decides on the implementation of the following First Short Medium-Term Action Plan for Global Priorities on Economic Cooperation among Developing Countries, which should be reviewed regularly at future Ministerial meetings of the Group of 77 and at least once at Senior Officials level in the period between the Ministerial Meetings, acting on the principle that economic cooperation among developing countries constitutes a long-term process where progress should be sought on all fronts as opportunities for cooperation are detected on the basis of sound and technically justified proposals. First Short Medium-Terms Action Plan for Global Priorities on Economic Cooperation among Developing Countries 1.  A first Short Medium-Term Action Plan for Global Priorities on Economic Cooperation among Developing Countries is adopted, to be reviewed at the Fifth Ministerial meeting of the Group of 77, calling for specific action in the following priority areas of economic cooperation among developing countries and in accordance with the following principles of objectives. 2. Economic cooperation among developing countries is a basic component of their efforts towards the establishment of the New International Economic Order (NIEO). 1 Economic Cooperation among Developing Countries, Report of the Secretary-General (A/33/367).

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3.  Owing to the fact that economic cooperation among developing countries is a matter that chiefly concerns the developing countries, it should be formulated and implemented by them, at the subregional, regional, interregional and global levels. 4.  In this context, the developed countries and the organizations of the United Nations system should give a strong support to this process in fulfillment of the different General Assembly and UNCTAD resolutions.

A.  A global system of trade preferences among developing countries (GSTP) 5.  The Ministers recommend that: (i)  a long-term objective on a global system of trade preferences must be established among countries; (ii)  as a first step, priority should be given to the strengthening and linking up of the existing subregional, regional and interregional preferential schemes, as well as expanding the scope of bilateral arrangements; (iii)  the following principles, pending the completion of the meetings proposed in paragraph (iv) below, should provide guidelines for work in this field: (a)  the recognition that a GSTP would constitute a major instrument for the promotion of trade, production and employment among developing countries; (b) the recognition of the complexities and difficulties involved in the creation of a GSTP, which calls for a realistic step-by-step approach on the part of all interested governments; (c)  that a GSTP should not reply only on traditional tariff concessions, but in addition to covering non-tariff barriers it ought to be progressively interrelated with other measures in the field of production, marketing, payments, finance and transport; (d)  the strengthening of existing and establishment of a new subregional and regional trade preferences among developing countries; (e)  the GSTP would need to be based on the principle of mutuality of advantages, so as to yield benefits to all participants; taking into account the respective levels of economic and industrial development, trade patterns and trade regimes of individual developing countries; (f)  in addition to non-reciprocal trade preferences, effective special treatment would be required in favour of products of export interest to least developed countries, land-locked and island developing countries on a non-reciprocal basis; (g)  subregional, regional and interregional grouping of developing countries could participate as such, whenever they consider it desirable, in the negotiations for a GSTP; (h)  the GSTP should be open to the participation of all interested developing countries; (i)  the gradual establishment of a GSTP should be accomplished by a parallel strengthening of subregional, regional and interregional integration groupings, which have a highly important role to play in this respect; (j)  the global preferential trading arrangement should consist of a coherent set of closely related components, including such elements as the adoption of indicative targets for increasing mutual trade, special techniques and modalities on preferential negotiations and for concessions on quantitative restrictions, agreements on direct trade measures and the use of long-term contracts, recourse to sectoral negotiations when appropriate, provisions on rules of origin and safeguards, and other essential provisions of preferential trade arrangements. The GSTP should furthermore incorporate appropriate mechanisms and regular medium-term reviews for evaluating progress;

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(k)  product coverage should include not only manufactures but also commodities and agricultural products in their raw and processed forms; (l)  in addition to the GSTP, all other appropriate means of expanding trade should be considered by developing countries, including the use of bilateral arrangements; and (m)  a trade information system in support of the GSTP should be established. (iv) (a)  The studies on the Global System of Trade Preferences, prepared by UNCTAD, should be duly analyzed as a first step by each government; (b)  Subsequent to these analyses, during the fourth quarter of 1979, there shall be a regional evaluation by means of meetings of government experts with the support of the relevant regional economic organizations as appropriate; (c)  After the above stages, an interregional meeting of government experts of the Group of 77 should be held within the framework of UNCTAD before the end of 1979 to prepare recommendations on the studies set forth in (iv) (a) above.

B.  Cooperation among State-trading organizations (STOs) 6.  The Ministers recommend that: (i)  Specific open-ended meetings of STOs should be convened by the Group of 77 with the assistance of UNCTAD, regional economic commissions and subregional groupings of developing countries to discuss the essential features of cooperation arrangements among themselves. UNCTAD and the regional economic commissions should cooperate with international centers for public enterprises in developing countries such as that established in Ljubljana. (ii)  The above meetings should also consider studies already undertaken by the UNCTAD Secretariat and APEC-TTI in this area. (iii)  The following measures should be adopted by the international community: (a) the compilation of a comprehensive and regularly updated handbook of STOs of developing countries, which could serve as a tool for the promotion of their mutual business, contacts, should be undertaken by UNCTAD on a priority basis. This handbook should become a significant means of providing information on STOs; (b)  in view of the universally-stressed need for organizing intensive training facilities for STOs, it is recommended that the STOs needs at the national, subregional and regional levels should be evaluated with a view to the organization of seminars and longer-term training programmes for senior and middle-level managerial personnel respectively, tailored to include the specific needs for the cooperation process; and (c)  advisory and consultancy services to individual STOs should be provided on request by international agencies with a capacity in the field of international marketing and procurement. Special regional units for training and consultancy services to STOs should be created and located at a central point in each region, initially for one year, to extend the above services. Among the services to be extended by such units are in—depth studies of those strategic commodities, which must lend themselves to joint action. (iv)  (a) The studies on the State Trading organizations, prepared by UNCTAD, regional economic commissions and APEC-TTI, should be duly analyzed as a first step by each government. (b)  Subsequent to these analyses, during the fourth quarter of 1979, there shall be a regional evaluation by means of meetings of government experts with the support of the relevant regional organizations as appropriate.

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(c)  After the above stages, an interregional meeting of government experts of the Group of 77 may be held within the framework of UNCTAD before the end of 1979, to prepare recommendations on the subjects set forth in (iv) (a) above.

C.  Establishment of multinational marketing enterprises (MMEs) 7.  The Ministers recommend that the following action programme for the promotion of MMEs should be implemented: (i)  Support to initiatives generated by public and private promotional schemes (e.g. proposals emerging from State Trading organizations, producers’ associations, the Council of Producers’ Associations, subregional and regional integration and cooperation schemes, regional and subregional Chambers of Commerce and Industry, and other private and public, national and multinational promoters). Such support would consist of the provision of technical and financial assistance, when requested, to projects for multinational marketing arrangements emerging from such organizations. (ii) Undertaking direct promotional action through sectoral studies and promotion of open-ended sectoral and multi-sectoral meetings of producers and exporters to detect opportunities and promote new initiatives for multinational marketing action at the subregional, regional and interregional levels, as the case may be, for the commodities identified by the UNCTAD secretariat on the basis of consultations with governments and public and private enterprises. (iii)  The UNCTAD secretariat should expand its research programme to include the analysis of opportunities for the establishment of marketing ventures concerned with import procurement and with the provision of services, with a view to identifying opportunities for expanding the action programme to include such type of activities. (iv)  (a) The studies on multinational marketing enterprises, prepared by UNCTAD, should be duly analyzed as a first step by each government. (b)  Subsequent to these analyses, during the fourth quarter of 1979, there shall be a regional evaluation by means of meetings of government experts with the support of the relevant regional economic organizations as appropriate. (c)  After the above stages, interregional meetings of government experts of the Group of 77 may be held within the framework of UNCTAD before the end of 1979, to prepare recommendations on the subjects set forth in (iv) (a) above.

D.  Strengthening of subregional, regional and interregional economic integration and cooperation 8.  The member governments of the subregional and regional economic groupings of the developing countries should analyze the Report of the Meeting of the Working Group on the Expansion of the Trade and Regional Economic Integration among Developing Countries, composed of representatives of the secretariats of the subregional and regional economic groupings of the developing countries, to evaluate its conclusions and within the regional organizations and groupings to which they belong, to give guidelines for possible work in the future by the Inter-secretariat Consultative group proposed in the said report, including a statement about its possible institutionalization. The results of the meeting of these economic groupings would subsequently be compiled in a sufficiently high level meeting of the Group of 77 so that final recommendations may be adopted. 9.  The Ministers recommend that a meeting of the secretariats of economic cooperation grouping of developing countries on subregional, regional and interregional economic cooperation and integration among developing countries be sponsored in due course by UNCTAD.

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E.  Cooperation in the transfer and development of technology 10.  The Ministers recommend that: (i)  UNCTAD should provide support and assistance not only for the strengthening or establishment of sectoral, national, subregional and regional centers for the transfer and development of technology, but also in the establishment of links among such centers in order to elaborate joint policies, plans, institutional structures and skill exchange required for accelerating the technological capacity of developing countries in accordance with their needs, in terms of employment, production and income, and with their specific requirements in sectors of critical importance to them. (ii)  In the light of activities being undertaken in the pharmaceutical sector, UNCTAD could assist developing countries identifying and undertaking specific action at the subregional and regional levels with respect to other sectors of great importance to developing countries. (iii) Account should be taken of UNCTAD’s studies concerning the following sectors: Petrochemicals, fertilizers, capital goods in the iron and steel sector, electronics, consultancy design and engineering services and food processing. (iv)  Cooperation among developing countries for the exchange of skills should be expanded and in this respect UNCTAD in cooperation with other United Nations agencies could assist inter alia in the creation of skilled manpower pools; coordination among developing countries in education and manpower training on a medium-term and long-term basis, creation of institutions of developing countries in education and training; initiation of technological cooperation programmes funded and managed directly by the developing countries, establishment of joint consultancy agencies, and establishing a link between skill flows and capital transfer. (v) Adequate resources should be made available in order to enable UNCTAD to assist actively developing countries in their endeavours. (vi)  The UNCTAD secretariat should assist developing countries, inter alia, in the elaboration of schemes of preferential treatment among developing countries for the exchange of technology. (vii)  The Advisory Service on Technology of UNCTAD should have the means commensurate with its task in order to enable to actively assist developing countries in the above endeavours. In carrying out these tasks, the UNCTAD secretariat should cooperate closely with other United Nations agencies to ensure coordination and avoid duplication.

F.  Least developed countries 11.  The Ministers recommend that: 1.  In addition to the major steps to be taken by the developed countries in support of the efforts of the least developed countries, the developing countries themselves should provide important support in a number of areas, within the framework of economic cooperation among developing countries. 2.  A  new Programme of Action for the 1980s for the least developed countries should be launched at UNCTAD V, as recommended by the intergovernmental Group on the Least Developed Countries with the following elements: (a)  in addition to non-reciprocal trade preferences, under GSTP, effective special treatment would be required in favour of products of export interest to least developed countries, including land-locked and island developing countries on a non-reciprocal basis; (b)  within regional cooperation schemes among developing countries, arrangements should be made:  (i)  for the establishment of multinational ventures in the least

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developed countries with a guaranteed regional market; (ii) for joint exploitation of common river-basin or other resource potentials, with special support provisions for participating least developed countries; (iii) for regional and subregional training programmes, with special attention to the needs of the least developed countries in a regional grouping; (c)  developing countries could whenever ready to do so substantially expand the flow of financia l and/or technical assistance support to the least developed countries; (d)  developed countries and international institutions should assist the flow of technical and commodity assistance from other developing countries to the least developed countries by helping to offset the foreign exchange costs of such flows; (e) the Secretary-General of UNCTAD, as part of the preparations for the New Programme of Action for the 1980s for the least developed countries, should convene a meeting of the developing countries to consider the various measures they can provide in support of this programme. Progress and problems in this regard should be reviewed at subsequent meetings of this type.

G.  Land-locked and island developing countries Land-locked developing countries 12.  In the context of economic c ooperation among developing countries and in a spirit of collective self-reliance, activities among the developing countries should be intensified, where ever necessary at subregional, and regional and interregional levels, with a view to solving transit-transport problems, keeping in mind the needs of the least developed countries and the land-locked among them. In this context, it was recognized that various studies had been conducted by UNCTAD and at the regional level, and that programmes and activities had been initiated for least developed countries and land-locked countries among them. 13.  It was also recognized that measures to deal with transit problems of the land-locked countries require effective cooperation and close collaboration between the land-locked countries and their transit neighbours. Where any study is to be undertaken in any transit country, such study shall be undertaken with the approval or consent of the transit country concerned. Where any programme or action is to be undertaken in or in relation to any transit country, such programme or action will be undertaken with the approval or consent of that transit country. 14.  The Ministers recommend that the adoption of the integrated planning approach to the transit countries should be based on the following elements: (a)  full cooperation between land-locked countries and their transit neighbours; (b)  clear recognition that major efforts to reduce the cost of access to the sea and to world markets facing land-locked developing countries may necessitate improved procedures and new investments both in land-locked and in transit countries and therefore needed supportive financial assistance by the international community should be normally extended on especially concessional terms; (c)  the need to look at and compare all aspects of the problem of transit transport, including procedures and regulations, pricing policies, management, training, legal and organizational arrangements, maintenance of existing infrastructure and new infrastructure requirements. Past studies have tended to focus on one or another of these elements, but seldom on their interrelations as alternative or as complementary ways of reducing real transit costs; (d)  possibility of alternative routes wherever this is feasible, for each land-locked developing country, in order to ensure against any difficulties that may rise on other transit routes;

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(e)  the need for providing planners from land-locked and transit countries with basic information on all the available options.

Island developing countries 15.  The Ministers recommend that cooperative arrangements in favour of island developing courtiers should be intensified in areas such as the development of shipping, air services, telecommunications, tourism, insurance and reinsurance.

H.  Subregional, regional and interregional insurance and reinsurance schemes among developing countries 16.  The Ministers recommend that a medium-term action plan for enhanced support should be aimed at intensifying present efforts in order to: (i)  strengthen national insurance markets in developing countries, as particularly called for in UNCTAD resolution 42 (III); (ii)  the UNCTAD secretariat should intensify its work programme in the field of insurance and report on progress of work to the Committee on Invisibles and Financing related to Trade; (iii)  increased reciprocal exchange of reinsurance business aimed at a corresponding decrease of the existing dependence of developing countries on outside developed reinsurance markets; and (iv)  promote technical and institutional mechanisms, adequate professional skills and operational methods with a view to generating insurance service fully adapted to the increasing needs and specific requirements of developing countries.

I.  Monetary and financial cooperation 17.  The Ministers recommend that: (i)  Multilateral payments and credit arrangements (a)  The strengthening of the existing arrangements is considered to be a priority task. It is to be expected that, as more experience is gained in the operation of multilateral schemes, the scope of these mechanisms will be widened. Furthermore, the setting up of new payments arrangements needs to be encouraged. (b) The establishment and development of subregional payments arrangements has shown that they constitute an appropriate starting point to foster a gradual approach towards the creation of a global network of multilateral schemes open to all developing countries, the expectation being that at a later stage, an important element of reciprocal credits to support mutual trade flows will be incorporated. Fundamental importance is attached to the need for adopting all necessary stops aimed at promoting a gradual but prompt linking up of multilateral payments arrangements within a global strategy for the expansion of trade. (c)  The creation of the Coordination Committee on Multilateral payments Arrangements and Monetary Cooperation as the first forum of monetary cooperation at the interregional level among arrangements of developing countries is a most positive step and its objectives deserve strong support. The Committee, without being a formal institution, is capable of bringing together the technical expertise required and has an open-ended membership which allows for universal coverage of the developing countries in their objectives of improving existing arrangements, establishing new ones and then

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progressively creating links among them. The Group of 77 should invite the Coordination Committee to prepare a balanced strategy for the linkage of payments arrangements and to provide the necessary assistance through its Technical Secretariat to achieve this objective. (d)  UNCTAD can play an important role as Technical Secretariat of the Committee in the achievement of its goals in collaboration with economic regional commissions, IMF and other relevant international and regional institutions. The facilitation of the exchange of information and experience between the various multilateral arrangements with the financial support of UNDP and other sources should be continued and strengthened. (ii)  Trade Financing (a)  The progress made in recent years in several developing areas in the establishment, strengthening and expansion of regional and subregional financial institutions as well as of national mechanisms that provide direct financing of exports of interested developing countries, deserves to be underlined. Developing countries should continue devising mechanisms to finance trade together with the reinforcement of the system for exchanging commercial information, including the availability and supply of goods, through national and regional export promotion institutions. (b)  Without prejudice to the efforts being made in regard to an Export Credit guarantee facility, and as a part of the programme of Work on a economic cooperation among developing countries, the Secretary-General of UNCTAD should be requested to present proposals for the setting up of a Financing Facility exclusively aimed at the expansion of trade among developing countries, with special attention to the situation of the least developed countries. (iii)  A bank of developing countries Consideration should be given to strengthening the importance of existing subregional and regional development banks to ensure that such institutions fully respond to the needs of developing countries. In addition the UNCTAD secretariat should be requested to submit a report on the practical feasibility of establishing a bank for developing countries in sound banking practices taking into account existing institutions. The report should be submitted by the Secretary-General to a group of governmental representatives of developing countries for subsequent consideration. (iv)  Mobilization of resources among developing countries (a)  The UNCTAD secretariat should continue its efforts in the preparation of reports on financial flows among developing countries on an annual basis as a part of the work programme of economic cooperation among developing countries, covering all financial flows and contributions in accordance with Part IV, 26, of the Mexico City mandate. (b)  A special study of the capital markets of developing countries should be undertaken by the UNCTAD secretariat for the purpose of improving access by other developing countries to these markets. Furthermore, this study has to identify measures and the means of their implementation with a view to encouraging investment among developing countries on the basis of mutual benefits and sound commercial practice, as recommended in Part IV, 25, of the Mexico City Conference report. (c)  The UNCTAD secretariat should continue to assist developing countries to strengthen the existing multilateral financial institutions by reinforcing their mutual links and coordinating their activities in order to enable them to identify, prepare, promote and finance large-scale projects in all fields of economic cooperation among developing countries (Part I, 2 and IV, 23 (e) and (g) of the Mexico City Conference Report).

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(v)  Preference in procurement International financial institutions should give preferential treatment to procurement from developing countries in implementing projects in other developing countries. (vi)  Monetary cooperation The monetary authorities of developing countries should strengthen their mutual exchange of information on monetary and financial matters in accordance with the rules and regulations of the concerned countries, as well as on subjects dealing with the general monetary situation and its effects on developing countries. 18.  The Ministers are of the view that member Governments of the Group of 77 should avail themselves of the occasion of the Bank/Fund meeting in Belgrade in 1979 to convene a meeting of the Group of 77 at the level of Ministers of Finance or Economy and in this context request the Government of Yugoslavia to make appropriate arrangements for such a meeting in consultation with the Chairman of the Group of 24.

J.  Multinational production enterprises among developing countries (MPEs) 19.  The Ministers recognize the need for: (a)  The formulation of long-term issues and policy guidelines for the identification and selection of multi-country production projects among developing countries, taking into consideration current trends and prospects in the international economy; (b)  Coordinating the supply of technical assistance from UNCTAD and other international organizations of the United Nations system, within their respective fields of competence, in support of the developing countries, efforts for strengthening their mutual cooperation for the establishment of multinational production enterprises; (c)  UNCTAD to formulate a clear definition of the concept of multinational production enterprises among developing countries and formulate any other proposals which might serve developing countries to promote production of multinational production enterprises, and to submit its report to a meeting of representatives of developing countries for consideration and action; (d)  Cooperation in production drawing significant benefits from (i) barter arrangements, i.e. payments by products obtained through joint enterprises; (ii) long—term contracts for the provision of goods essential for the national economics, and (iii) technical cooperation. 20.  The Ministers recommend that on the basis of past experiences and existing situation, the identification and establishment of multinational production enterprises could be based on the following: (a)  projects physically located in one or more countries of significant economic interest to two or more countries; (b)  projects which have either significant input or output linkages with new or existing facilities in more than one country and/or projects involving the location of complementarity and similar facilities in one or more countries; and (c)  projects which could only be economically and efficiently developed on the basis of markets larger than any single country could provide. 21.  The Ministers recommend that: (i) Consideration be given to the following indicative list of sectoral investment possibilities: (a)  the production, marketing and distribution of social goods based on complementarities and suitable for the establishment of modular projects;

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(b)  the rational development and processing of non-renewable resources, with special emphasis on petroleum projects and unwrought non-ferrous metals; (c) the optimal exploitation of natural resources for the efficient development of agro-business projects through the processing of primary products; (d)  the development of basic industries; (e) the development of the engineering industries, with special emphasis on capital goods; (f)  the development of industries belonging to sectors with long-term growth potential. (ii)  The nature of an institutional arrangement for the promotion of multinational production among developing countries should be left to the decision of the participating government. (iii)  Regional development banks and private development financing institutions should play an important role in providing financing for the feasibility studies of selected projects, as well as equity and long-term financing. (iv)  UNCTAD in collaboration with regional economic commissions and subregional economic groupings should concentrate its activities as follows: (a)  in the formulation and evaluation of sectoral studies leading to the identification and selection of multi-country projects among developing countries within the order of priorities established by interested countries; (b) in providing a forum for devising intergovernmental framework agreements for working out trade and related measures facilitating the negotiation and operation of industrial collaboration agreements among interested parties; and (c)  in formulating sectoral studies in the field of basic industries, of which those on fertilizers, rubber products and pulp and paper should be completed at an early stage and should constitute a basis for consultation with interested governments and intergovernmental bodies, in close collaboration with UNIDO, FAO and the regional commissions; and (d) the overall promotion of trade expansion and development through multinational production enterprises among developing countries and the linking of the latter with multinational marketing enterprises, joint ventures, integration arrangements and financial institutions.

K.  Other substantive items contained in the Mexico City Programme on Economic Cooperation among Developing Countries and in the programme of work established in resolution 1(1) of the UNCTAD Committee on Economic Cooperation among Developing Countries 22. As regards the other items included in resolution 1(1) of the Committee on Economic Cooperation among Developing Countries and in the Mexico City programme, procedures should be adopted to ensure that, where necessary, after the Governments have studied them there is a wide regional and interregional examination of those items, so that the appropriate measures may be recommended.

L.  Support measures 23.  In view of the fact that the programme of meetings on economic cooperation among developing countries, proposed by the Group of 77,2 was not agreed on at the eighteenth session of the Trade and Development Board, nor at the second session of the Committee on Economic 2

For the programme of meetings, see the appendix to the present item.

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Cooperation among Developing Countries, due to the opposition of the developed countries, and considering that the United Nations General Assembly, at its recent thirty-third session, instructed the Secretary-General of UNCTAD to continue consultations to decide on said programme, and taking into account paragraphs 81 and 82 of the Provisional Report of the Preparatory Committee of the Group of 77; The Ministers recommend that: (i)  the position formally adopted by the Group of 77 be ratified and that the need for this programme be stressed and the intention to execute it be fully expressed. (ii)  the developed countries be urged to abandon the negative attitude adopted up to the present and contribute to the implementation of the relevant resolutions of the United Nations General Assembly, thereby taking the first steps towards compliance with the concept of support measures, as stated in UNCTAD resolution 92 (IV) and resolution 1(I) of the Committee for Economic Cooperation among Developing Countries. (iii)  the role of UNCTAD’s ECDC Committee be strengthened to enable it to be a forum for the negotiation of support measures from developed to developing countries since such measures constitute a basic element of the whole process of economic cooperation among developing countries to which developed countries are expected to make meaningful contributions. (iv)  (a)  UNCTAD should upon request of developing countries, subregional, regional and interregional economic groupings of developing countries assist in preparing specific proposals for support measures as need arises; (b)  developed countries respond positively to such requests when they are made; (c)  any assistance extended on a subregional regional or interregional basis should be in addition to assistance extended to individual developing countries. 24.  The Ministers strongly recommend that: 1.  The United Nations system, in particular UNCTAD and the regional and economic commissions, should strengthen and increase its assistance to economic cooperation among developing countries. In this regard, the UNDP should intensify its assistance to subregional, regional and interregional projects, taking also into account the role foreseen for UNDP by the World Conference on Technical Cooperation among Developing Countries. To this end, adequate resources should be made available. 2.  Specifically the Ministers recommend that: (a)  measures should be taken by the United Nations to intensify the role of UNCTAD within the United Nations system in the promotion of economic cooperation among developing countries and its coordination and cooperation with other members of the United Nations system, as well as to strengthen its working arrangements with UNDP, with a view to enhancing joint operational strategies, taking into account the strong cooperation between economic and technical cooperation among developing countries; (b)  as a matter of priority, each developing country should consider drawing up, with the assistance of UNCTAD, a full national inventory of its own requirements and resources and contribute to the updating of the general inventory that UNCTAD should compile in order to match inputs and needs at the global level; (c)  developing countries should support, through individual or collective endorsement, project proposals addressed to UNDP in support of economic cooperation among developing countries. To this effect, they may wish to consider special contributes, including as appropriate earmarking of a proportion of their own UNDP Indicative Planning Figures (IPF);

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(d) acknowledging that economic cooperation among developing countries is an important element of the New International Economic Order and, as such is based on interdependence, common interest and cooperation among all States, developing countries should invite, through the United Nations development system, contributions from developed countries for the implementation of economic cooperation among developing countries projects whose objectives are of interest to both categories of countries; (e)  developing countries should urge the United Nations system, and particularly UNDP, to devote increasing the IPF resources to result-oriented activities in support of economic cooperation among developing countries, with special stress on the need for substantially increasing UNDP’s resources for subregional, regional and interregional projects in this field; (f)  developing countries should request UNCTAD to intensify both its role within the United Nations system in the promotion of economic cooperation among developing countries and its coordination and cooperation among developing countries and cooperation with other members of the United Nations system, as well as to strengthen its working arrangements with UNDP, with a view to joint operational strategies given the strong correlation between economic and technical cooperation among developing countries; (g)  the restructuring process of the United Nations system should ensure that UNCTAD is strengthened and provided with all its necessary human and financial means to effectively carry out its tasks on economic cooperation among developing countries, which have increased significantly without any meaningful additions to its resource for appropriate changes in its institutional set-up that could enhance its role as a lead agency in the establishment of the New International Economic Order; (h)  the UNCTAD secretariat, in carrying out its tasks on Economic Cooperation among Developing Countries, should work in close consultation and cooperation with the regional economic commissions since they have a vital role in promoting and implementing subregional, regional and interregional economic cooperation among developing countries.

M.  Institutional matters 25.  The Ministers recommend that consideration should be given to the nature of institutional arrangements for the organization and administration of economic cooperation among developing countries at national, subregional, regional and interregional levels. Further, the Ministers consider that the institutional profile needed to implement the Economic Cooperation Programme among Developing Countries could take the following forms: 1.  Period meetings at the ministerial level for the Group of 77: Such meetings would fall within the frame work of the provisions of resolution No.1 of the III Ministerial Meeting of the Group of 77, held at Manila, and paragraphs 41, 42 and 43 of the Final Report of Conference on Economic Cooperation among Developing Countries held in Mexico, for the purpose of defining economic cooperation, policy sectors and priority areas. Further the Ministers consider that to carry out the studies recommended by the Ministerial Meeting, the secretariats of the United Nations agencies, especially UNCTAD, UNDP, the regional commissions and the regional and subregional organizations for economic cooperation and integration of the developing countries, should give the necessary support to the Group of 77. 2.  Action committees: it is necessary to find a formula for participation open to all those developing countries interested in one specific aspect or area that will enable a project to

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be implemented among the interested countries. For the consideration of developing countries a noble formula for cooperation called Action Committees is presented. These are organs, which could be established within a limited time to analyze and launch projects of common interest to three or more member countries but providing the opportunity for other developing countries to participate subsequently. The Group of 77 takes note with interest of the significant experience of one developing region concerning this instrument.

N.  Technical cooperation and economic cooperation among developing countries 26.  The Ministers recall that technical cooperation among developing countries, as conceived by the developing countries on several previous occasions and by the United Nations Conference on Technical Cooperation among Developing Countries, is a fundamental instrument in promoting economic cooperation among developing countries. They consider that: (i)  prompt and effective implementation of the Buenos Aires Plan of Action and resolutions approved by the above-mentioned Conference is required; (ii)  among the many important provisions contained in the Buenos Aires Action Plan in this context is the need to promote in the developing countries national research and training centers of multinational scope in the developing countries. This is also the subject of one of the resolutions adopted by the Conference. (iii)  in support of the implementation of the Plan of Action, the importance of the contribution of developed countries and international organizations to the increased national and collective self-reliance of developing countries needs to be stressed, in order to implement, inter alia, the recommendations relating to agriculture and industry. (iv)  as the first meeting of the United Nations intergovernmental forum, which had been assigned the responsibility of the overall review of TCDC, as agreed in Buenos Aires, will take place in 1980, the Group of 77 must take the necessary measures to adequately prepare for this meeting, so as to reach a common position prior to the above-mentioned meetings. To this end the Group of 77 should hold a preparatory meeting preceded by regional preparatory meetings.

APPENDIX Programme of meetings to be convened by the UNCTAD secretariat by the end of 1979 for the Group of 77 as follows: 1.  Regional meetings of subregional and regional economic cooperation groupings to consider action in pursuance of the objectives of the Mexico City Programme on Economic Cooperation among Developing Countries. 2.  A meeting of the secretariats of economic cooperation groupings of developing countries on subregional, regional and interregional economic cooperation and integration among developing countries. 3.  Three meetings of governmental experts of developing countries to examine and make proposals, bearing in mind the studies undertaken by the UNCTAD secretariat in compliance with paragraph (a)  of resolution 1 (I)  adopted at the first session of the Committee on Economic Cooperation among Developing Countries. 4.  A meeting of secretariats of economic cooperation groupings and multilateral financial institutions of developing countries on inter-country projects.

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III.  FRAMEWORK FOR NEGOTIATIONS Item 8 of the Provisional agenda for UNCTAD V Evaluation of the world trade and economic situation and consideration of issues, policies and appropriate measures to facilitate structural changes in the international economy, taking into account the interrelationships of problems in the areas of trade, development, money and finance with a view to attaining the establishment of new international economic order and bearing in mind the further evolution that may be needed in the rules and principles governing international economic relations and UNCTAD’s necessary contribution to a New International Development Strategy for the Third United Nations Development Decade.

I.  Evaluation of the world trade and economic situation 1.  The world economy is currently in the most serious crisis since the end of the Second World War. The continuing economic malaise in the international economic system is not simply a phenomenon of cyclical nature, but primarily a symptom of underlying structural maladjustments. The inability of the developed market economy countries to control their chronic balance-of-payments imbalances, persistently high levels of inflation and unemployment, and the new market rigidities manifested in rising protectionism, that prohibit the structural changes needed for an efficient path of production, all point to new developments that do not augur well for a well-balanced and prosperous world economy in the coming decade. It is these new developments originating in the developed countries that raise new and profound concerns for the developing countries. Not only is the progress towards resolving those issues that have long been of concern to developing countries likely to be retarded, the fundamental problems themselves are currently being exacerbated by many of the new imbalances that have emerged in recent years. Not only have domestic inflationary pressures been strengthened with a loss of potential GDP, developing countries are being penalized as prospective markets of the developing countries are closed off by over protectionism and industrial subsidies. 2.  The international economy, after a series of events in the 1970s including the breakdown of the Bretton Woods monetary system in 1971, the world economic crisis of inflation/recession, the rising tide of protectionism in developed countries, is in a state of fundamental disequilibrium. Decisions are being made on an ad hoc basis and the specific policy measures, which are taken in developed countries to protect their domestic producers, have resulted in their structural adjustment difficulties being transferred to developing countries. This transferences, inter alia, manifests itself in disrupted markets for the developing countries and new balance-of-payments difficulties. Their deficits themselves are largely a reflection of the failure of developed countries to adjust; unless effective adjustment measures are taken by developed countries they would continue to bear the burden of adjustments. Contemporary institutional and other arrangements have done little to alleviate the burden for developing countries and in fact in some cases have contributed to aggravate it. 3.  The failure of the existing international economic order to provide adequate and equitable support to the international development process has had serious repercussions on the economics of the developing countries especially on the economies of the least developed countries. The volume and value of trade of the developing countries and the real value and purchasing power of their foreign exchange earnings have been adversely affected. At the same time a disproportionately large share of burden of adjustment in the world economy has been thrown on the economies of these countries. 4.  Moreover, recent developments in the world economy clearly demonstrate that the existing international economic order is not only inequitable but also is functioning inefficiently. Accelerated development of the developing countries and efficient functioning of the world economy requires a fundamental restructuring of the international economic order.

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5.  Also, in the existing international economic order developing countries have little say in the manner of its functioning. This is not surprising, in as much as the decision-making related to the management of the world economy, the designation of the world economy, the designation of the rules of the game for international economic transactions and the power to initiate changes in such rules have been the exclusive domain of the major developed countries. 6.  It is worth pointing out in this context that in the current economic crisis developed countries are wholly preoccupied by short-term economic policies aimed at their own economic recovery. A perception is emerging within some developed countries that the crisis cannot be resolved without structural changes in their own economies. But their actions so far have failed to demonstrate that for these changes to be viable, they must be consistent with the broader objectives of reestablishing the New International Economic Order and mindful of the causal link between the policies of developed countries and the development of developing countries. The emphasis should shift to concerted measures for restructuring as the primary means to achieve stable and sustained economic recovery. This also requires recognition by the developed countries of the interrelationship between structural changes and measures designed to generate growth in aggregate demand and production capacities in the developing countries, to thus revive the process of growth in the global economy. Recognition of this interrelationship by the developed countries would greatly help towards injecting a new dynamism into the international negotiation process.

II.  Issues, policies and measures to facilitate structural changes 7.  In considering issues, policies and measures to facilitate structural changes in the international economy it is important, however, to recognize that the concept of structural change covers several distinct, though interrelated elements. First, structural change covers shifts in the patterns of production, consumption and trade in the world economy. A  second element, related more specifically to the international context, concerns the pattern of effective national control over the use of their own resources. The element relates to restructuring of the institutional framework including creations of new institutional framework, if necessary, to promote and support both the aspects of structural change referred to. One of the requirements of structural change would, of course, be larger share of developing countries in the international decision-making process. 8.  Since increased economic and technical cooperation between the developing countries constitute a key element in the restructuring of the present international economic order, further efforts must be made, on the principle of collective self-reliance, to strengthen and develop the economic links between the developing countries. A new dimension in a restructured international economy exists in the field of trade and economic cooperation between the developing countries and the socialist countries of Eastern Europe and these important links should be nurtured and further strengthened. 9.  Furthermore, the various aspects of structural change in the economies of both developed and developing countries, which are called for in different areas under other items, are related to supporting changes in the international institutional framework. The Common Fund and international commodity agreements under the integrated Programme for Commodities, the evolution of principles and policies to promote long-term industrial adjustments in developed countries, a reform of the international monetary system and an effective system of international financial cooperation for development, the code of conduct on transfer of technology, principles and rules on restrictive business practices are some of the elements of new international institutional framework necessary to support and promote the structural changes that are required in the international economy. 10.  There are, however, some further aspects of the international institutional framework which require careful consideration. Because of the close interrelationship that exists between the

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problems and issues in the areas of trade, development, money and finance, the rules and principles governing international relations in these areas as well as policies and measures in these areas need to be mutually supportive, and directed to the same basic objective. To ensure this, there are issues, which require particularly urgent attention of the international community: (a)  there is a need for global consultation in the fields of trade, development, money and finance, in order to ensure not only their mutual consistency but also that short-term policies promote, and do not obstruct, the movement towards long-term restructuring of the international economy. (b)  how to set in motion further evolution of the rules and principles governing international trade and economic relations. 11.  Generally speaking, the existing principles, rules and procedures governing international economic relations in the area of trade, money and finance, though they have been variously adapted to meet on an ad hoc basis changing conditions in the world economy and make provisions for accommodating some of the needs of the developing countries, have not yet been restructured in order to provide firm support for the development process in the developing countries.

III.  Further evolution of the rules and principles governing international trade and economic relations 12.  It is worth noting that under the pressure of imbalances in the world economy the framework established in the post-war period to govern international economic relations is threatened with disintegration and it is becoming increasingly difficult for governments of even developed countries to solve their problems within the existing principles, rules and procedures. The most apparent evidence of this disintegration was a collapse in 1971 of the Bretton Woods System. Equally important are the increasing strains being placed on the GATT principles and rules. In the recent past there has been a clear tendency of many developed countries to adopt commercial policies that are against the spirit and letter of GATT. 13.  In addition to the requirements for the reform of the international monetary system, there is also a need to revise the existing principles, rules and procedures governing international trade. Rules and procedures having origin in GATT were originally negotiated in early post-war period without the participation of the present developing countries. Changes since then do not affect the underlying philosophy of the rules which are not responsive to the trade, a development and financial needs of the developing countries. 14.  To sum up the existing rules and principles governing international trade have become largely outmoded and ineffective. There is need for thorough revision, based on the new realities of the world economy to establish a system in which the development of the developing countries is a principal goal, with appropriate mechanisms to ensure that the system operates equitably and efficiently. 15.  The existing trading rules need revision so as to extend them to cover the new protective devices falling outside the scope of the existing rules, intra-firm trade of transnational corporations, which is now a major segment of world trade and of the trade of developing countries, and which in effective, also evades the existing rules. 16.  While the satisfaction basic human needs of the people and the eradication of mass poverty must have a high priority in economic and social development, the idea is unacceptable and erroneous that these goals can be achieved without the all round and comprehensive economic development of the developing countries and the establishment of the New International Economic Order. It is necessary for developing countries to guard against the introduction of new concepts by developed countries norms and principles, such as ‘basic needs’ access to supplies, graduation, selectivity, etc. which are being suggested but are in fact totally incompatible with the development requirements and aspirations of developing countries. Initiatives seeking piecemeal

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solutions or fragmentary measures for international cooperation would not be substitutes for the urgent need to rewrite, in the light of current world realities, the rules and principles governing international trade. 17.  The need for concerted action for inducing structural changes and for reformulating and renegotiating the present unfair ‘rules of the game’ is now fully recognized. This should not, however, divert the attention from serious issues requiring immediate implementation of the International Economic Order. 18. The Group of 77 recommends that the UNCTAD V requests the Secretary-General of UNCTAD, according to the relevant resolutions of the Conference and the Board, to set up a high level intergovernmental Group of Experts: (a)  to examine the problems relating to the management of the world economy, specially policies in the fields of trade, development, money and finance; (b)  to recommend the adoption of concerted measures that would ensure that the policies of the developed countries are consistent with the requirements of the structural changes in the context of the New International Economic Order. 19.  The Secretary-General of UNCTAD is requested to submit the reports of the above mentioned Group of Experts for consideration at the Trade and Development Board and special attention should be given to these reports at the regular sessions of the Board to be held at ministerial level.

IV.  New international development strategy 20.  The central element of the international development strategy of the Third United Nations Development Decade should be the implementation of the Programme of Action for the establishment of the New International Economic Order and in this context action needs to be taken to enchain the share of developing countries in the international decision making for management of the world economy. 21.  The new strategy should also stress that: (i) The international economic policies of the developed countries, including economic groupings of the developed countries and their national policies having international implications, should contribute towards promoting the growth of the developing countries, taking into account their long-term and short-term development requirements. (ii)  An important objective of industrial, social trade, monetary, financial and regional policy initiatives by the developed countries should be to maintain and increase the production capacity and real purchasing power of the developing countries. (iii)  The situation of the least developed countries should be given particular attention in the programme of action for the 1980s. (iv)  Adequate attention should be paid to the eradication of mass poverty and to raising the living standards of people in the developing countries.

Item 9 of the provisional agenda for UNCTAD V Developments in international trade Item 9(a): Protectionism: trends and short-term and long-term policies and action needed to deal with the problems The Group of 77, alarmed by the wave of protectionist measures introduced in the recent years by developed countries and affecting particularly exports of the comparative advantage shifted in

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their favour and opened up important perspectives of growth of their industries, express their deep concern about the adverse effects of such measures on the process of restructuring of the world industrial production and trade consistent with their economic interests. The wave of protectionist measures taken by the developed countries with growth frequency over the past years is particularly affecting the developing countries by retarding the process of structural change in the industrial sectors referred to above and making it more difficult to achieve the substantial increase in the exports of manufactures and semi-manufactures by developing countries that would be required, inter alia, to attain the Lima Target and developments of the economies of the developing countries. The Group of 77 expressed their concern at the emergence in developed countries of cartels and use of new devices such as ‘trigger price mechanisms’, voluntary export restraints and orderly marketing arrangements to restrain trade. They further expressed concern at attempts by the developed countries to find solutions to sectoral trade problems in exclusive fora instead of bodies with widest international representations. Viewing these developments with deep concern, the Group of 77 decides that at UNCTAD V effective action should be taken to deal with this problem and to agree on a programme of coordinated international action focusing on the formulation of short-term policies and actions that curb protectionism and on long-term policies for world industrial restructuring. 1.  To this end the Group of 77: (a)  deplores the new protectionist trends in the developed countries, which have serious consequences for the developing countries; (b)  reaffirms the conviction that the proper solution is to be found in world industrial restructuring consistent with the development objectives of the developing countries; (c)  declares that when faced with proposed or adopted protectionists measures by a developed country or group of developed countries, that affect the exports of the exports of the developing countries, including the conclusion or the extension of voluntary export restraints, the developing country or countries affected, without detriment to any bilateral action that it deems or they deem advisable, may consult with other interested developing countries, with a view to determining appropriate joint action. This joint action would include, inter alia, voluntary measures of economic, financial or commercial policies with a view to counteracting the protectionist measures imposed by any developed country or a group of developed countries against developing countries.

A.  Long-term policies and actions for world industrial restructuring Long-term policies for world industrial restructuring in the interest of an optimal over-all growth requires conscious efforts by the international community to establish rational production patterns in the world. In this context there is need to follow closely the evolution of the patterns of production and trade in the world, identifying in developed countries the sectors requiring adjustment in order to facilitate the movement of factors of production out of such sectors and in developing countries the sectors deserving special encouragement and support with a view to achieving the most effective international inter-industry and intra-industry specialization. The following policy measures and actions should be agreed to this effect: (a)  The setting up of a mechanism within UNCTAD which would allow for periodic review of the patterns of production and trade in the world economy and identify sectors needing structural adjustment with a view to achieving a better international division of labour and transference of production capacities to developing countries in the light of their comparative advantage and need to promote processing of their raw materials. (b)  An agreement on a framework for negotiations within UNCTAD to formulate, in cooperation with UNIDO and ILO, the measures and policies that need to be adopted by developed

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countries for encouraging the process of adjustment in the sectors so identified, and to facilitate the movement of factors of production out of such sectors. (c)  Constant monitoring should be undertaken, (i) to avoid development of excessive and uneconomical capacities in the developed countries which may lead to demand for protection, and (ii) to ensure the implementation of policies and measures as referred to in sub-paragraph (b). (d)  The agreement on world restructuring should be linked, inter alia, to the target of 25 per cent share in world production of and 30 per cent of world trade in manufactures for developing countries by the year 2000. This should be based not only on inter-industry specialization which would leave labour intensive goods for production by developing countries but also on intra-industry specialization for different sectors and branches of an industry. (e)  UNCTAD should intensify its work on compiling and updating the inventory of barriers faced by exports of both agricultural and processed and manufactured products of developing countries in developed countries, with a view to holding consultations and negotiations for the dismantling of such barriers within a time bound frame. (f)  Sectoral agreements which lead to restrictions on trade of developing countries should not be formulated and those in existence should be dismantled to provide for free access to the products of developing countries. Developed countries should not find solutions to trade problems of different sectors in exclusive forums without participation of developing countries and outside bodies with widest international representation. They should take steps to effectively discourage setting up cartels and for dismantling the existing ones, which are having a restrictive effect on the trade of developing countries.

B.  Policy measures and action needed to deal with the immediate short-term problems Agreement should be reached with the developed countries, aimed at: (a)  The removal of existing restrictions imposed by developed countries against exports of developing countries within the shortest possible time bound frame and the adoption of measures to attain a considerable increase in the imports of products exported by developing countries presently subject to restrictions. (b)  There should be a reaffirmation of the ‘standstill’ by developed countries and a decision should be taken at UNCTAD V to set up an effective intergovernmental body of experts to examine suo moto in each specific case of protective action by ‘compelling reasons which make it impossible’ to avoid such an action against imports of developing countries. In this context, arrangements should be made to inform UNCTAD of such protective actions, which do not take into account the developing countries interests in foreign trade or are injurious to such trade. (c)  The safeguard action by developed countries when impossible to avoid, should be under strictly defined conditions as outlined below and arise out of unforeseen and sudden development: (i)  In any case, the restrictions imposed must be considered emergency action taken on a specific product and must be preceded by notification and subsequent negotiations with the developing countries which this affects; (ii)  Any restriction should be temporary and digressive over an agreed time period and should include provision for the increase of the imports affected and allow the entry of new suppliers of the imports affected from the developing countries;

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(iii) The restrictions will be accompanied by appropriate adjustment measures that ensure the temporary nature of such restrictions; (iv)  Moreover, the restrictions imposed should under no circumstances be such as to result in reduction in exports or output of the developing countries and thereby have adverse effects on their economies; (v)  The developing countries whose exports are adversely affected as a result of safeguard action should be adequately compensated; (vi) Safeguard action should be non-discriminatory. In no case shall the exports of developing countries be singled out for action, through various devices, particularly on grounds such as that they are low cost exports. (d)  Measures should be taken to ensure the elimination of tariff escalation so as to provide more improved access to exports of manufactures and semi-manufactures from the developing countries. (e)  A strategy for surveillance of the protectionist actions by the developed countries, which will facilitate the organization of concerted action must be defined. For this, it would be desirable to make intensive use of and strengthen the present mechanisms, and those, which may be established, within the framework of UNCTAD, with a view to examining the problem of protectionism in its general and particular aspects in order to formulate recommendations for its reduction or elimination.

Item 9 (b): Multilateral trade negotiations: evaluation and further recommendations arising therefrom 1.  The Group of 77 reviewed the progress made in the MTNs so far and noted with grave concern that the developed countries have devoted most of their attention to their mutual trade and have failed to respond to the interests and concerns of the developing countries consistent with the commitments undertaken in the Tokyo Declaration. The Group of 77 apprehends that unless corrective measures are taken at this stage, the results of the negotiations for the developing countries would be negative. It was stressed that, in their present form the draft codes for establishing the new rules for international trade consideration to those of the developing countries, including the least developed among developing countries, and tended to institutionalize the protectionist policies presently being applied by the developed countries. The Group of 77 calls upon the developed countries participating in the MTN, to comply with the commitments undertaken in the Tokyo Declaration with respect to granting the developing countries special and more favourable treatment in each of the areas of negotiations. It emphasized that the developing countries, whose interests have so far received limited attention in the MTN, should thoroughly examine the consequences which the results of the MTN will have on their participation in future world trade and on the establishment of the New International Economic Order. 2.  The Group of 77 expressed their disappointment with the deep concern over the mechanics of the negotiations, which have led to a lack of transparency in the MTN, compromised their multilateral character and afforded little scope for participation by the developing countries. Further, the developing countries are being asked to make concessions not consistent with their trade, development and financial needs. This makes it necessary to make a thorough evaluation of the process of negotiation for the future. 3.  Decisions in the MTNs shall be taken by consensus and agreement of participating developing countries, especially in the case of codes, which are sought to be adopted. No code should be considered to have been adopted in the MTN or in the GATT without the agreement of developing countries participating in the negotiations. No additional obligations should result for the

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developing countries from the codes to be adopted in the MTN or in the GATT without the agreement of developing countries participating in them. 4.  In this context the Ministers of the Group of 77 stress the following: (a)  Tropical products Developed countries should respond favourably in conformity with the commitments in the Tokyo Declaration to request on tropical products from developing countries to improve the developed countries’ offers. Developed countries, which have not implemented their offers should do so immediately. All barriers to trade faced by all tropical products, including their processed forms, in developed countries should be removed. To the extent that this objective will not be achieved in the Tokyo Round, further endeavours will be needed and negotiations will have to be continued for the removal of these barriers. (b)  Other agricultural products Developing countries note with concern that no results have been realized in the field of agricultural products, especially concerning the most stable and favourable treatment for the suppliers from developing countries. (c)  Tariffs and non-tariff barriers The products of interest to developing countries should not be excluded from tariff-concessions especially in sectors like textiles, leather, rubber and wood products. However, developing countries having a substantial interest and which may be affected by tariff reductions may seek the exclusion of any specific products. There should be advanced implementation of tariff cuts for products of particular interest to developing countries. Developing countries also note with deep concern that no action has been taken by developed countries for the removal of quantitative restrictions faced by products of developing countries and that quantitative restrictions in certain sectors like textiles have not even been discussed in the negotiations. Therefore measures should be taken for the removal of such barriers immediately. (d) Safeguard Action should continue to be taken on a most-favoured-nation basis, under strictly defined conditions of market injury or threat thereof, and shall not be used to discriminate against exports of developing countries. Developing countries view with deep concern the continuing discriminatory treatment of their exports on grounds of lower costs or prices. They urge that the new code on safeguards should call for very early termination of all such discriminatory measures whether national such discriminatory treatment. The concept of unilateral selective action even on a provisional basis should be rejected. The so-called ‘voluntary export restraints’ and orderly marketing arrangements should be brought under the discipline of the Code being evolved in the area of safeguards and be subjected to multilateral review. There should be special and differentiated treatment for developing countries in the context of the safeguard code. As a measure of such differential and more favourable treatment in favour of developing countries the newcomers and small supplier developing countries should be excluded from safeguards. The safeguard action by developed countries against imports of developing countries should be time bound and accompanied by adjustment measures. Safeguard action should in no case result in the roll back of the exports of the developing countries. (e)  Subsidies and countervailing duties The right of developing countries to use export and other subsidies to diversify their economics and to achieve their socio-economic objectives of development shall be recognized. The

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developing countries have the right to use export sectors suffer. Countervailing duties may be levied against subsidized imports of developing countries only in exceptional cases and only after determination of ‘material injury’ on the basis of objective criteria and when all bilateral and multilateral consultation procedures have been exhausted. No action shall be taken on the basis of displacement of exports of developed countries by subsidized exports of developing countries in relation to a third country market, by developed countries. The use of subsidies by developed countries on products directly competing with products of developing countries should not be allowed. (f) Graduation The Group of 77 rejects the concept of ‘graduation’ sought to be introduced by developed countries in the trading system, which would, inter alia, allow developed countries to discriminate among developing countries in a unilateral and arbitrary manner. (g)  Improvements in the legal framework of international trade should respond directly and meaningfully to the trade interests and economic development needs of the developing countries and should in no case impose on the developing countries additional burdens or constraints. Bearing in mind that a principal objective of developing countries in this area was to establish a new legal framework for differential treatment in trade between developed countries and developing countries and thus to preserve the commitments of the Tokyo Declaration, the Group of 77 reiterates that it is necessary to obtain effective progress in the area before the end of the negotiations. 5.  UNCTAD V will present a very appropriate opportunity to analyse the economic and commercial effects of the MTN on the developing countries and the extent to which the agreements contained in the Tokyo Declaration have been fulfilled. UNCTAD V should underline the need that after the end of the MTN the developing countries would have the possibility to negotiate on a multilateral basis with the developed countries in accordance with the requirements of the New International Economic Order. 6.  Before the close of the MTN, the developing countries should make an assessment with the assistance of UNCTAD as to what additional benefits would flow for their trade from the negotiations and how far the objectives of the Tokyo Declaration have been achievement of those objectives before the negotiations are closed and final instruments are drawn. 7.  The Group of 77 stressed the need that further technical assistance be provided for any relevant international organizations to help the developing countries to fully assess, and assist developing countries in realizing, any additional benefits that would flow for their trade from the MTN.

Item 10 of the provisional agenda for UNCTAD V Commodities Item 10(a): Integrated Programme for Commodities Three main lines of action can be identified within the Integrated Programme for Commodities. The first one relates to the measures to achieve the dynamic stabilization of commodity prices, thus avoiding excessive fluctuations. The second which follows from the first is to obtain more security and stability for income derived from the export of commodities by developing countries, using additional measures such as complementary financing. In the third place, greater participation by the developing countries in the economy of their commodities, presupposes measures to increase local processing, as well as the participation of

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those same countries in marketing, transport and distribution and to secure for them a greater and sure access to markets. Consequently, it seems necessary to expedite the implementation of the strategy of the Integrated Programme for Commodities to achieve effective integration of the negotiations on the different measures which can be applied and thus achieve mutually harmonized solutions. To this end, The Ministers decide To promote joint action by the developing countries in negotiating the Common Fund and individual commodities, expediting any pending agreements and ensuring the implementation of the new institution within a specific period.

Common Fund The Ministers affirm: 1.  That the Common Fund, as a new entity, should serve as the key instrument for the attainment of the agreed objectives of the IPC as embodied in UNCTAD resolution 93 (IV). It should be an effective and economically viable institution for the financing of stocking arrangements and other measures relevant to commodities as provided in that resolution, whether those aiming at stabilizing commodity markets or those of a developmental nature. The overall purpose of this institution should be to help to improve market structures and international trade in commodities which are of interest to the developing countries, and to secure stable conditions in the commodity trade at price levels which are remunerative and fair to producers and equitable to consumers, taking into account, inter alia, movements in prices of imported manufactured good, production costs and world inflation, and changes in the international economic and monetary situation. 2.  That the Common Fund is one integral entity and there should be organic and functional links between its two windows which perform complementary functions and are established only for accounting purposes. 3.  That the capital of the Common Fund should be of a magnitude adequate to enable it to effectively attain the objectives for which it is established. 4.  That the main source of capital for the Common Fund should be mandatory direct government contributions (cash and on call) with a meaningful milium equal amount of $US 1 million to be paid by each country and an assessed additional contribution based on an appropriately modified United Nations formula. The allocation of contributions should be in accordance with the principle of equitable burden sharing as between developed and developing countries. 5.  That the Common Fund should have the necessary instruments to enable it to borrow on favourable terms from the capital market. Callable capital would be pledged directly to the Fund by ICA members to the value of each ICA’s borrowing entitlements and on modalities to be agreed. 6.  That both the first and the second windows should be endowed, from the start, with adequate resources to allow them to provide appropriate finance for their respective measures. In particular, mandatory direct government contributions should be allocated in an appropriate proportion between the two windows. 7.  That the proportion of direct government contributions to the second window be complemented by voluntary contributions for which a minimum target figure should be set for the establishment of the Common Fund and mechanisms for frequent and regular replenishments should be considered and agreed upon in due time. 8.  That the second window, singly or jointly with other financial institutions, should finance activities such as research and development, both quantitative and qualitative improvements in production, market promotion, marketing and distribution, and diversification.

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9.  That the Common Fund should also finance under specific conditions national stocks of commodities in developing exporting countries with a view to improving their market staying power and avoiding distress sales. 10.  That cash deposits of ICAs with the Common Fund should not be higher than 30 per cent of their total financial requirements for stocking, in order to facilitate the conclusion of new ICAs, be attractive for ICAs to join the Common Fund, and minimize the financial burden on the part of developing member countries. At the same time, the terms and conditions for the granting of loans by the Common Fund to the ICAs should be such as to be financially attractive for ICAs to join the Common Fund. 11.  In its operations, the Common Fund shall respect the autonomy of ICAs and commodity organizations. 12.  That the criteria for the definition of international bodies for commodities eligible for financing by the Common Fund should take into consideration the importance of adequate coverage of commodities or export interest to developing countries. 13. That developing countries should secure a decisive voice in the voting structure of the Common Fund, in particular by ensuring that as high a percentage as possible of total votes would be allocated to member countries on the basis of the equality principle. 14.  That the forthcoming Conference in March 1979 should be held at a high level, including Ministerial level, from all participating countries in order to facilitate agreement and decision on the basis and fundamental elements of the Common Fund before the convening of UNCTAD V in Manila. They urge all participating Governments, in particular the developed countries, to exercise the requisite political will to ensure the successful outcome of the negotiating Conference. 15.  The Ministers note that some of the measures provided in resolution 93 (IV) are still outstanding and in this regard they affirm the importance they attach to the measures contained in the resolution including paragraphs 3 and 4 in section III.

Action on individual commodities as contained in resolution 93 (IV) 16.  The Ministers urge Governments to move from the stage of commitment to that of action and implementation, and in particular: (a)  Request the convening as soon as is practicable of negotiating conferences for commodities now in their preparatory phase and for which the technical stage of problem identification has made enough progress, on the basis of action programmes on the price stabilization and other measures; these negotiating conferences should be concluded within the extended time-frame of the IPC. To facilitate the negotiating process, assistance should be given to developing producing countries in their efforts to strengthen and harmonize their negotiating positions through meetings among these countries or through the framework of commodity associations. (b) Invite member governments of existing ICAs, in accordance with the appropriate decision-making procedures of these ICAs, to consider including other IPC measures which may be relevant to such commodities and to consider the association of these ICAs with the Common Fund, with a view to using the financial facilities available on its first and second windows as appropriate. (c)  Urge that early steps be taken for effective application of appropriate measures and procedures for stabilizing and improving in real terms the price of commodities exported by developing countries taking account of world inflation, and changes in the world international economic and monetary situation including exchange rates, terms of trade, return on investment and other relevant factors.

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(d)  Request the inclusion, where the developing countries deem appropriate, in the studies and specific negotiations of the processed and semi-processed products, which are manufactured with the raw materials on the indicative list contained in Conference resolution 93 (IV). (e)  Decide to promote ‘horizontal’ action, which will enable agreements to be reached on specific products among producing countries. The agreement formulas, which the producer associations provide could provide this type of guidelines. (f)  Request that the preparatory meetings on the remaining perishable commodities be convened as soon as possible so that concrete aspects can be identified which will make it possible to hold negotiating Conferences on these products, in view of the special importance which they have for the economies of the producing developing countries and also in view of the fact that although significant progress has been made on the respective studies, discussion of them has been postponed for a long time.

Other elements of the IPC Complementary facility for commodity shortfalls The Ministers 17. Request the Secretary-General of UNCTAD, in consultation with the IMF, to prepare a detailed study for the operation of a complementary facility to compensate shortfalls in earnings of each commodity, taking account of its financial requirements, possible sources of financing, its financial feasibility, institutional arrangements and the modalities and considerations that would provide adequate compensation in real terms to developing countries, paying attention to the situation of the lead developed countries. This facility should be additional to the improvement of the IMF Compensatory Financing Facility and to actions taken under the IPC to deal with the problem of price stabilization in real terms. The study should be completed at the earliest possible date with a view to facilitating its consideration by the Committee on Commodities and the Trade and Development Board after the completion of the negotiations on the Common Fund.

Processing and product development The Ministers 18.  (a) Urge that a commitment be taken to the establishment of ‘a comprehensive framework for international cooperation for expanding in developing countries the processing of primary commodities and the export of processed goods’ taking into account the on-going work and negotiations on related issues. Consideration should be given, inter alia, to the following elements: (i) Adoption and strengthening by developed countries of adjustment assistance policies and measures which would encourage their domestic industries to move progressively out of lines of production in which they are less competitive internationally, leading to redeployment of productive capacities for such industries to developing countries. In this respect, a first step could consist of commitment by developed countries not to grant new subsidies to industries directly competing with developing countries’ exports and to phase out existing subsidies; (ii) Establishment of guidelines to regulate production and investment of synthetic substitutes competing with natural products; (iii) Multilateral commitments from importing developed countries, wherever appropriate within the framework of individual commodity negotiations, to import from developing countries increasing quantities of commodities in their processed or semi-processed

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forms, or to reserve for developing countries outlets created by future increases in demand for such processed or semi-processed commodities; (iv) Commitment to an increasing and progressively more balanced allocation of financial resources, both loan and equity capital, through international financial institutions for the development of primary commodity processing in developing countries; such an allocation should include and meet specific sub-targets for the least developed among the developing countries; (v) Periodic review and examination by the Committee on Commodities of market access provided to primary and processed products from developing countries. (b)  In this context, request the UNCTAD Secretariat, in consultation with UNIDO, FAO and other competent agencies of the United Nations system, to undertake a systematic and thorough study of the prospects regarding the commodities included in the indicative list of resolution 93 (IV), including the amount of investment required, the required action by developing countries themselves and the support measures by the developed countries and the international financial institutions; the conclusions of this study should be considered by the Committee on Commodities, which will forward them to the Trade and Development Board with the relevant observations and recommendations.

Marketing and distribution The Ministers recommend: 19.  A commitment to the establishment of a framework for international cooperation in the field of marketing and distribution of primary commodities, with a view to increasing the share of developing countries in the marketing and distribution of commodities exported by them, including, inter alia, the following: (a)  Improvements in the functioning of commodity exchanges through appropriate regulations, including removal of discrimination in the structure of membership, control, and management of commodity exchanges to ensure the equitable participation of export interests from developing producing countries in the management of the commodity exchanges. (b)  Increased technical and financial support from developed countries, and international financial institutions for the development of indigenous marketing and distribution systems of developing countries, including, inter alia, financing national stocking, storage facilities, market intelligence, the establishment of joint marketing boards and state-trading organizations securing representation on commodity exchange, and establishment and strengthening of commodity exchange in territories of the developing countries to deal with their export commodities. (c)  Standardization of marketing practices and arrangements. (d)  Support for detailed investigations of: (i) The market structures of all primary commodities of export interest to developing countries. To this end, they reiterate the need for the UNCTAD Secretariat to conclude or undertake, where appropriate, studies on transport, marketing and distribution for each of the commodities on the indicative list contained in conference resolution 93 (IV). These studies should be submitted by a certain date to the Committee on Commodities which will submit them to the trade and Development Board with the relevant observations and recommendations. (ii) Long-term contracts and agreements in commodity trade, particularly minerals and metals, with a view to exploring the possibility of establishing international agreed

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principles and standards governing such contracts, particularly the major clauses dealing with the fixing of prices and renegotiations of their terms. (e)  Elimination of barriers to fair competition between marketing enterprises of developed and developing countries, in particular the practice of dumping and excessive brand advertising, through adequate fiscal or other measures.

Research and development, market promotion and horizontal diversification The Ministers recommend 20.  That a medium-term investment programme of the needs in these fields of commodities on the indicative list contained in resolution 96 (IV) should be prepared by the Secretary-General of UNCTAD, and submitted to the Trade and Development Board through the Committee on Commodities.

Follow-up The Ministers recommend 21.  That the existing machinery of UNCTAD should be utilized and strengthened to monitor the implementation of decisions reached at UNCTAD V in the field of the developmental aspects of the Integrated Programme for Commodities.

Item 10 (b): Other elements Food production and trade The Ministers recommend 22.  A commitment to substantially increase, with the support of the developed countries and the concerned international organizations, investment and technical assistance to accelerate food production in developing countries, to expand the share of developing countries in exports of food and food products, to ensure stable and equitable prices and access to adequate supply of food and to strengthen world food security, including, inter alia, the following: (i) Adoption in developing and developed countries of policies and measures that would encourage food production and exports of developing countries. (ii)  Adoption of appropriate schemes among developing countries for expanding and diversifying food production and trade. (iii) Early conclusion of international commodity agreements on food commodities with arrangements for establishing adequate reserves where necessary.

Item 11 of the provisional agenda for UNCTAD V Manufactures and semi-manufactures Item 11 (a): Comprehensive measures required to expand and diversify the export trade of developing countries in manufactures and semi-manufactures 1.  Developing countries will continue to be hampered in their efforts at expanding their production and exports of manufactures and semi-manufactures unless effective short-term and long-term policies and measures are taken to permit greater access for the developing countries to the markets of the developed countries and to restructure world production and trade patterns. The restructuring of

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world trade in manufactures and semi-manufactures calls for changes in the industrial policies of the developed countries (developed market economy countries and centrally planned economies) supported by action with regard to transnational corporations which are a dominant factor in world production, marketing and distribution of manufactures and semi-manufactures, supplemented by measures to increase intra-industry trade to remove the supply constraints on developing countries, to control the operations of TNCs, and to improve access for the manufactures exports of developing countries. Accordingly, there is urgent need for a concerted set of policies and measures for attaining the objectives of expanding the industrial base of the developing countries, resulting in greater participation by the developing countries in world trade in manufactures. 2.  Up to now, industrial restructuring has been proposed by the developed countries almost exclusively for industries, which are not capital intensive and use simple technology, and abundant manpower. To accept this policy line would mean qualitatively freezing our development and consolidating an unjust and progressively ineffective international division of labour. 3.  The Group of 77 emphasizes that there is an urgent need for the reshaping of the structure of the world industrial production and trade patterns in order to ensure a substantial increase in the share of the developing countries including the least developed and land-locked countries in world export of manufactures and semi-manufactures. The Group of 77 recognizes that an expansion of production and diversification of international trade in manufactures and semi-manufactures of developing countries is necessary for attainment of the generally accepted goals for their accelerated economical industrial development. This requires efforts to build up and expand production capacities establishment and strengthening of distribution and marketing organizations, development of industrial and commercial infrastructures and better access for the products of developing countries in the developed countries markets and adoption of appropriate policies for the developed countries. 4.  A target of 25 per cent share in world production of manufactures for the developing countries by the year 2000 has already been agreed. In order to attain this target there would have to be substantial improvement in the share of developing countries in the world trade in manufactures from the present extremely low level of eight per cent. The increased share in manufactures should also in consequence be reflected in a corresponding increased in the share in world trade of developing countries, which should account for 30 per cent of the total world trade in manufactures by the year 2000. The UNCTAD secretariat in cooperation with UNIDO should identify the growth sectors and the input requirements for the achievement of the target taking into account the particular circumstances and development requirements of the various developing regionals and the special needs of the least developing countries. 5.  A  major restructuring of production is essential to achieve these objectives and developed countries should evolve policies which would promote such adjustment through movement of factors of production from the areas where dynamics of comparative advantage is shifting in favour of developing countries and to enable developing countries to process their commodities and raw materials. Such policies also promote greater intra-industrial specialization and give impetus to orderly transfer of industries to developing countries. In this context, establishment of appropriate joint ventures and sub-contracting of production within a sector, in developing countries should also be undertaken.

A.  Production of manufactures and semi-manufactures 6.  The following measures should be undertaken to improve the supply capability of the developing countries in the field of manufactures and semi-manufactures. (i)  International organizations and developed countries should assist developing countries in setting up and strengthening financial, commercial and other infrastructure for developing countries and promoting their exports of manufactures and semi-manufactures.

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(ii)  New financial facilities should be set up by international financial institutions to provide additional financing for the manufacturing sector of the developing countries. In this context, particular attention should be given to the least developed countries. (iii)  Facilities should be established to provide long-term export credit refinancing for developing countries. (iv)  The processing of raw materials in developing countries should be encouraged by, inter alia, participation of developing countries at the appropriate stages in the vertical integration prevalent in raw materials industries and the developed countries should not maintain or introduce tariff escalation by degree of processing for imports from developing countries in their markets. (v)  Developing countries should be encouraged to move to establish and expand industries, which have a dynamic world demand and particularly capital goods industries. (vi)  Elimination of obstacles to exports of manufactures of developing countries arising from standardization motivated by domination and share of markets of developing countries by the developed countries. (vii)  Technological capabilities of developing countries should be expanded with a view to their greater participation in industrialization and world trade in manufactures.

B.  Marketing and Distribution 7.  In order to become true partners in the world trade, developing countries and their trading organizations should be effectively involved in the marketing and distribution of their export and import products. International organizations and developed countries should provide technical and financial assistance and help develop technical and financial expertise in developing countries to enable them to optimize their gains from manufacture trade. The developed countries should evolve policies which would encourage and facilitate the operation of developing countries; marketing and distribution organizations in the markets of developed countries. The developing countries should also be assisted in establishing and promoting other commercial infrastructure necessary for effective and efficient trading. In order that the developing countries are able to optimize the earnings from their imports and exports the following further action should be taken: (i)  The establishment or promotion of trading houses at the national level, engaged simultaneously in import and export activities. (ii)  The establishment of multinational procurement and marketing enterprises of developing countries to enable them to derive maximum trading benefits and to secure economies of scale. (iii)  The establishment by firms in developing countries of their own direct marketing channels in principal foreign markets. Policies should be adopted to promote greater use of their own trademarks or brand names to establish consumer acceptance. (iv)  The activities of transnational corporations should be reoriented, inter alia, towards more complete manufacture in developing countries and further processing therein of raw materials for both domestic and foreign markets. Transnational corporations should take positive steps for promotion of exports of developing countries in semi-manufactures and manufactures.

C. Market access 8.  Developed countries should evolve trade policy measures and adopt other positive policies in such areas as government procurement in these countries, which would assist in promoting the exports of developing countries in manufactures and semi-manufactures and attainment of the target in the Lima Declaration and Programme of Action for production of manufactures in developing countries. This should be reflected in their trade policy regimes and the schemes evolved under the GSP should be geared towards the attainment of these objectives. In particular,

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protection afforded to industries in developed countries processing commodities and raw materials of developing countries or where the comparative advantage lies in favour of developing countries should be removed within an agreed time frame. There should be no prolongation of arrangements regulating trade in textiles, which restrict development of textile exports of developing countries. The barriers arising out of restrictive practices in services and invisibles or unfavourable freight structures against developing countries exports should be removed. Developed countries should establish a separate classification in their tariff regime for products of developing countries so as to distinguish from similar products of developed countries with a view to allowing a more favourable treatment to the former. Special treatment should be accorded by developed countries to handicraft products of developing countries including handloom products, through duty free and quota free entry to this market.

D. Services sector 9.  The Group of 77 noted with concern that protectionist devices employed by developed countries against developing countries are spreading to the services sector, particularly in transport, banking and insurance. 10.  The Group of 77 expresses special concern with new proposals in the field of civil aviation such as the introduction of a new regime of air traffic on an end-to-end basis between developed countries with insistence on excluding stopovers in intermediate developing countries. This scheme provides for a system of duopoly whereby special fares become an exclusive arrangement between two developed countries. Under this scheme, the growth of the airlines of developing countries will be curtailed. 11.  The implementation of this duopolistic system in civil aviation would further hamper the development of tourism in developing countries, particularly those categories of countries recognized by the United Nations as requiring special treatment. This is particularly serious as the tourism industry makes a vital contribution to the development of many developing countries. 12.  The Group of 77 therefore calls upon UNCTAD to request the Secretary-General to initiate as a matter of urgency, an examination and analysis of the effects of the discriminatory civil aviation practices employed by the developed countries on the growth of air transport, including air cargo and tourism in developing countries. 13.  The Group of 77 further calls upon the developed countries to immediately eliminate all discriminatory practices in transport, banking and insurance employed against developing countries.

E.  Collective efforts of developing countries 14.  To accelerate their economic and industrial development countries should intensify their collective efforts to establish and expand industries based on development of local resources, build necessary infrastructure allowing more meaningful absorption of external capital and technology and widen their national and regional markets and to increase substantially their shares in world trade through better access for their manufactured products.

Item 11 (b): Principles and rules and other issues relating to restrictive business practices 1.  The restrictive business practices notably those of the transnational corporations have adverse effects on the economic development of the developing countries, particularly in the field of production and marketing of manufactures and semi-manufactures.

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2.  Through practices such as licensing, patent and cartel arrangements, price fixing, transfer pricing, exclusive dealing arrangements, consignment selling and so-called voluntary quotas etc., not only do they restrict trade but they also prevent appropriate transfer of technology needed by developing countries to accelerate their industrialization so as to expand their production of manufactures and to realize an increased share of manufactures in export markets. 3.  The Group of 77, therefore, deems it necessary that specific measures be taken to control the restrictive business practices including those of the transnational corporations, through, inter alia, the enactment of appropriate and effective national legislation. 4.  They also feel that efforts should be made to promote cooperation among developing countries to coordinate measures in this field. 5.  The Group of 77 took note of the fact that the United Nations General Assembly has decided that a conference to negotiate a set of multilaterally agreed equitable principles and rules for the control of restricted business practices should be convened between September 1979 and April 1980 for this purpose. The Group of 77 requests the Secretary-General of UNCTAD to convene the above-mentioned conference in the latter part of 1979. (i)  They expressed the hope that the principles and rules should provide for differential treatment for developing countries. They also felt that transactions between the various institutions of TNCs which impose RBPs and which adversely affect the interest of developing countries should also be subject to such principles and rules. The principles and rules to be evolved concerning the restricted business practices should also extend to the field of trade in invisibles and services which adversely affect the trade and economies of the developing countries. (ii)  The Group of 77 urges that the greatest possible efforts be made to find solutions to outstanding problems such as the scope of application of the exceptions, preferential treatment, institutional agreements and the legal nature of the principles and rules in a spirit which will enable the principles and rules to be universally applied and bearing in mind that the system must be clearly oriented towards monitoring restrictive practices which adversely affect international trade and especially those having a negative effect on the developing countries and their economic development. 6.  The Group of 77 urges the UNCTAD Secretariat to undertake in-depth studies and intensify the ongoing work on these practices in preparation for the above-mentioned conference which should adopt measures aimed at controlling restrictive business practices particularly in respect of the import and export transactions of transnational corporations such as: (i)  transfer prices for intra-firm transactions; (ii)  arrangements within TNCs for the territorial allocation of markets and products; (iii)  acquisitions by TNCs of domestically-owned enterprises in both developed and developing countries; (iv)  formal and informal marketing and distribution arrangements in respect of exports and imports of TNCs with other enterprises, including TNCs; (v) exclusive dealing arrangements and abuses of market power through the use of trademarks. 7.  In the meanwhile, the role of UNCTAD in the areas of restricted business practices should be strengthened and an appropriate machinery should be established within UNCTAD for effective notification and dissemination of information on restricted business practices adversely affecting the trade of developing countries, for controlling the implementation of principles and rules as well as for making recommendations on possible revisions and improvements; and for technical assistance to developing countries for control of such practices and evolution of appropriate consultation procedures.

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8.  The Group of 77 reaffirms that any model law on restricted business practices to be elaborated in UNCTAD would be only a model made by experts of developing countries to assist in formulation of their national legislation.

Item 11(c): Review and evaluation of the generalized system of preferences The introduction of the GSP has made some contribution to the improvement of market access for exports of the developing countries during the seventies. While the preference-giving countries have repeatedly made commitments to maintain and improve the GSP, recent years have witnessed a slackening of efforts to ensure improvements in its operation. The Group of 77 notes this development with concern and urges that the following specific measures be decided at UNCTAD V. 1.  A positive formal decision should be taken extending the duration of the system beyond the initial period ending 1981. The GSP should be given a legal character for increasing the certainty and permanence of its application. The possibility of unilateral withdrawal of concessions under the GSP inhibits investments in production for export and thus hampers fulfillment of the long-term objectives of that system, i.e., to promote the industrialization of developing countries and accelerate the rate of their economic growth. There should, therefore, be provision for binding of negotiated rates under GSP. Withdrawal of concessions should not be unilateral but subject to prior consultations with the developing beneficiary countries, on the basis of mutually agreed objective criteria and procedures. Also in case of withdrawal under such conditions, offsetting trade advantages should be granted. Further, withdrawal of concessions shall not be made except in the context of conditions justifying safeguard type of action. 2.  The consultation and participation mechanism within UNCTAD should be improved for the implementation and renegotiation of the various GSP schemes, in order to ensure that the best use is made of the system. 3.  Among other things, the schemes under GSP should be geared towards attainment of a share of 25 per cent for developing countries in world production of manufactures by the year 2000 and the need for corresponding increase in share of developing countries in world trade in manufactures to 30 per cent. 4.  Some preference-giving countries have not recognized as beneficiaries all developing countries, members of the Group of 77. Discriminatory features and utilization of these schemes as an instrument for political and economic coercion or of retaliation continue to be incorporated in the schemes of GSP despite Resolution 96 (IV) specifically calling upon concerned countries to rectify the situation. Also, certain preference-giving countries have incorporated conditions reciprocity of concessions. These constitute a departure from the conditions, which are applicable to the system. The principles of non-discrimination and on-reciprocity are reaffirmed and all developing countries should be recognized as beneficiaries without any conditions or discrimination. Devices such as competitive need criteria which lead to such discrimination should also be eliminated. 5.  Agreement should be sought for a time-bound programme of expansion of product coverage so that the GSP covers all dutiable imports from developing countries, particularly products of interest to least developed countries, taking into account the need for compensating adequately the developing countries enjoying special preferential treatment. The programme should include in particular also those products which are of special interest to developing countries, i.e. those in Chapters I through 24 of the CCCN. All preference-giving countries, which have not yet done so should extend immediately preferential duty-free entry to all industrial products particularly those based on procession of their commodities and raw materials and all agricultural products originating in developing countries.

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6.  In increasing the amount of tariff reductions account should be taken of their erosion suffered by the system in the multilateral trade negotiations. 7.  To eliminate non-tariff measures, such as quotas, maximum limits, exclusions because of competition requirements, which restrict the full use of the different schemes for products of special interest to the developing countries. 8.  The safeguard mechanism should be prevented from stopping the exports from the developing countries without justification thus invalidating the objective of the GSP. Escape-clause-type safeguard provided under the GSP should be taken after prior consultation with interested countries and only when it is established that preferential imports are the direct cause of serious injury to domestic industry. The action should be temporary in nature and subject to multilateral surveillance and review and linked to adjustment measures. 9. The preference-giving countries should liberalize and simplify their GSP rules of origin. These countries should also harmonize their GSP rules of origin into the greater advantage of preference-receiving countries and with the aim of enabling preference-receiving countries to enjoy greater benefits under the GSP. 10.  In the improvement of the GSP schemes higher priority should be given to the products of interest to the least developed countries. Technical assistance should also be extended to them to enable them to utilize better the trade advantages offered under various schemes, including assistance with regard to the rules of origin and their application. Financial and technical assistance for the establishment and development of industries in the area of products covered by the GSP should also be made available to the least developed countries. 11. Agreement should be reached for extending the activities of the second phase of the UNCTAD/UNDP technical assistance project for enabling the developing countries to improve utilization of the benefit of the schemes.

Item 11(d): Review of the implementation of Conference resolutions 96 (IV) and 97 (IV) 1.  UNCTAD V will be an opportune time for the evaluation of the extent to which the developed countries have complied with the different provisions of Conference resolutions 96 (IV) and 97 (IV), and for taking the necessary steps for their effective implementation. 2.  The process of implementation of these two important resolutions has been extremely slow and discouraging. The principle of a standstill on barriers to imports from developing countries has not been adhered to and new restraints have been imposed on exports from developing countries without any multilateral surveillance of such measures and any compensation contrary to the provisions of resolution 96 (IV). Also various systems of so-called voluntary export restraints, orderly marketing arrangements, minimum price arrangements, measures to prevent disruption of the market, etc., continue to be applied on an increasing scale. 3.  While separate recommendations are made on the problems related to GSP, growing protectionism of the developed countries adjustments assistance, restrictive business practices and related matters, the progress in the implementation of the resolution 96 (IV) as a whole, containing a set of interrelated and mutually supporting measures for expansion and diversification of exports of manufactures and semi-manufactures of developing countries should be kept under constant review by the UNCTAD Committee on Manufactures. 4.  The Group of 77 notes that the Arrangement regarding the international trade in textiles was extended for a further period of four years from 1978. The protocol of extension allowed ‘for jointly agreed reasonable departures’ from the provisions of the Arrangement. Such departures

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have tended to nullify the basic objectives of the Arrangement and have seriously affected the textiles exports of developing countries. The developed countries which have utilized these departures should take steps to bring them into full conformity with the objectives and provisions of the Arrangement as soon as possible. They should adopt policies of adjustment so that it will be possible to introduce a liberal trade regime with regard to textile after the expiry of the Arrangement. 5.  The technique of tariff re-classifications should continue to be applied to facilitate the accordance of a differential treatment to the products of developing countries. 6.  The Group of 77 stresses particularly the need to strengthen and increase cooperation between UNCTAD and UNIDO in order to carry out joint analysis and make policy recommendations on industrialization and trade in manufactures and semi-manufactures from the developing countries. The prompt establishment of the ad hoc UNCTAD/UNIDO Group of Experts on Industrial Collaboration Arrangements is urged. 7.  With regard to resolution 97(IV) special attention should be paid to reorienting the activities of the transnational corporations in the developing countries towards more complete manufacturing in the developing countries and the further processing of domestic raw materials and bringing about greater control by the developing countries over the processing, marketing and distribution of their manufactures and semi-manufactures. Moreover, efforts should be continued with a view to strengthening the participation of national enterprises of developing countries in the activities of TNCs, controlling the restrictive business practices of such corporations and to ensure that they are a positive factor in the export efforts of the developing countries. Decisions should be taken at UNCTAD V to give an early start to negotiations for the establishment of adequate norms for the regulation and control of the activities of the transnational corporations, so that their way of operations coincides and is compatible with and not contrary to the specific interprets of recipient countries.

Item 12: the provisional agenda for UNCTAD V Monetary and financial issues Introduction The Group of 77 focused its attention at the outset on certain vital interrelationships between trade financial and monetary issues at the global level. The Group noted that the surest way of resisting the rising tide of protectionism—and indeed of turning it back—was to revive the process of growth in the global economy. Needed structural adjustments in the pattern of production and trade would be facilitated in both developed and developing countries alike by a climate of economic expansion rather than of stagnation. It was in this context that they observed that the extent and persistence of considerable underutilization of resources leading to unemployment in the developed world should no longer be seen as an exceptionally prolonged trough to the business cycle with a more or less automatic recovery to follow. This situation inhibits an effective international adjustments process. What would be required to restore full employment is a new impulse on a historic scale comparable for example with the transfer of resources to Europe for post-war reconstruction; this time, meeting the needs of the third world would have a decisive role to play in a situation where purely domestic relation in developed economies would be no substitute against the existing background of production capacities geared to export markets that have been developed over three decades of export led growth. For the resulting revival of effective demand to lead to the restoration of investment and growth initially in the developed world, international monetary stability was an essential prerequisite.

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Excessive volatility in currency values would otherwise dampen the inducement to invest; and this cannot be eliminated without a major reform of the international monetary system along the lines spelt out below. Regional arrangements contemplated by some developed countries are at best a partial solution, which all the same underscores the deficiencies of the present system and the beginning of concern with the problem of reviving investment. Paripassu with movement towards a fundamental monetary reform, a massive transfer of resources to meet the needs of the third world becomes today the necessary precondition for the revival of the growth process in the developed world and more generally in the world economy. If excess production capacity in the developed world is reckoned to be of the order of at least $200 billion, an initial additional financial transfer in the range of $35 billion to $50 billion would help launch the process of fully utilizing this excess capacity and help bring about the necessary structural changes in the world economy. In this regard, special attention should be given to the needs of the least developed countries and the most seriously affected countries. The mechanism would analytically imply the raising under the collective guarantee of the international community of monies in international capital markets and their disbursement to developing countries over a long term period, with an interest subsidy element as appropriate, in the form of both project and programme lending for structural change. It is axiomatic that recourse to, these mechanisms should in no way prejudice the expansion of ODA to meet the accepted international targets for which, again, specific proposals are formulated below.

Item 12(a): Consideration of requirements of the international monetary system which would foster world trade and development, compatible with the needs of a satisfactory international adjustment process, taking account of the adverse effects of fluctuating exchange rates and world inflation, and in particular, taking into account the development of developing countries and their needs for balance-of-payments support 1.  Since the breakdown of the Bretton Woods System in 1971, international monetary relations have been marked by unusually high and persistent inflation and a high degree of instability in the exchange rates of major currencies. Despite the ad hoc measures undertaken since then, the international adjustment process has not been satisfactory and large payments imbalances have persisted. This is a special concern in the context of an international economy, which seems to be in permanent state of stagnation with low production and trade growth rates occurring simultaneously with high unemployment, underutilization of resources and inflation rates. The burden of correcting these imbalances has fallen disproportionately upon developing countries, which have borne the weight of the adjustment measures. It has to be emphasized that in this situation a major proportion of the balance-of-payments disequilibria of developing countries have been caused by external factors arising in the developed countries such as the world recession/inflation. In the absence of adequate offsetting finance developing countries have had no choice but to limit their development programmes and incur an extremely high external debt compared with their economic capacity. There is now clear and urgent need for a fundamental reform of international monetary arrangements to make them more effective in fostering world trade and development, and in particular, to make them supportive of the development of developing countries in the over-all context of the establishment of the New International Economic Order. 2.  Although within the International Monetary Fund certain decisions have been taken recently increasing the quotas, establishment of the supplementary financing facility, and new allocation of SDRs, there is still a need for improvements in their characteristics. They only partially meet the demands of the developing countries. Among other things these decisions do not go far enough in making the SDRs the principal reserve asset of the International Monetary System nor in ensuring equitable distribution of international liquidity. Moreover, the allocation of SDRs received by

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developing countries would be reduced by their contribution for the reserve tranche of the seventh increase in quotas. In this context the Group of 77 recognizes the merit of the proposal made in connection with the seventh general review of quotas that the SDR component of the quota increase of developing countries should be financed by developed countries. Unfortunately, this was not implemented at that time but it should be done in future increases in quotas. 3.  The severe impact of the erratic exchange rate movements of major currencies on developing countries trade and foreign reserves have contributed to the slowing down of the economic growth rate of these countries. To overcome this problem the international community should move towards a system based on the SDRs as the principal international reserve asset with a minimum of conditions for their use. Moreover, developed countries, in addition to intensifying their effort to control inflation,3 should provide financial instruments to protect the real value of the financial assets of the developing countries. Furthermore, in exercising it surveillance over exchange rates, and balance-of-payments policies of the IMF should intensify its surveillance over the major currencies and pay due regard to the special circumstances and needs of the developing countries. In this context, the Fund should recognize the structural character of balance-of-payment disequilibria of developing countries and accordingly apply appropriately flexible conditionality in the use of IMF resources designed to stimulate the recovery of world economic activity, the expansion of trade and employment and facilitate a more balanced adjustment process. 4.  Many other issues of importance are relevant in a discussion of the reform of the monetary system. These include inter alia ways of ensuring a better and more balanced international adjustment process including measures which would make surplus developed countries and reserve currency countries accept an equitable share of the burden of adjustment and to promote the transfer of real resources of developing countries and the establishment of a link between SDRs creation and development financing which could take one of the two forms viz. (i) a direct link whereby the share of developing countries in SDR allocation would be increased above their share in the IMF quotas; (ii) and indirectly link whereby a specified proportion of newly created SDRs allocated to developed countries, would be channeled to multilateral development finance institutions. The Group of 77 emphasizes that an essential precondition for effective monetary reform is an equitable decision-making process in the Bretton Woods institutions. 5.  The Group of 77 emphasizes these issues along with the following as being of immediate importance at UNCTAD V: (a)  In order to enable developing countries to maintain their development programmes in the face of continuing inflation and recession in developed countries, a facility should be established to provide balance-of-payments support to finance their externally induced deficits. As noted above a major part of the present deficits have arisen from imbalances in the international economy, in particular recession/inflation as well as mounting protectionism in 3

The available empirical evidence supports the observation that, contrary to expectations, floating has not generally succeeded in isolating domestic economies from foreign inflationary shocks. This is especially true when these shocks emanate from the reserve currency country. In particular, developing countries, mainly pegging their currencies to the United States dollar (which is also their main foreign reserve assets), experience both direct price effects and indirect price effects through constant pressures on their domestic monetary bases. These countries cannot easily sterilize such imported inflation due to either their underdeveloped financial markets or commitments of credit policy to long-term credit objectives. Furthermore, their trade pattern may not permit changes in their currency peg, since such changes can have an impact on their competitive positions. Differences in national inflation rates when superimposed on exchange rate changes result in wide divergence in real exchange rates. This is perhaps a major reason for the need of exchange rate surveillance under a system of managed float.

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developed countries, which has adversely affected both the volume and purchasing power of developing country exports. Since the causes of these deficits are external to the developing countries themselves, the balance of payments should not be dependent on ‘conditionality’ of the type imposed on present upper credit tranche support. Rather it should be related to broader development targets. For the facility to be meaningful it must be able to provide financing that is significant in relation to present levels of deficits. Bearing in mind that these deficits are largely the counterparts of structural surplus in developed countries-requiring in their own view a substantially long period of adjustment to eliminate-the facility should provide support on long-term maturity that would enable the concerned developing country to carry out structural adjustments that would facilitate the attainment of its development objectives. (b)  The international economic situation is adversely affecting developing countries and a more flexible conditionality in the use of IMF resources would stimulate the recovery of world economic activity, the expansion of trade and employment and facilitate the adjustment process. The rules of the game for balance-of-payments adjustment should be fair and balanced so that the burden of adjustment falls not only on deficit countries but also on persistent surplus countries. Balance-of-payment support in general must not be used to exercise political pressure on developing countries and should not be dependent on acceptance by the developing country of measures and programmes which involve social costs which hinder its basic aims, objectives and priorities. (c)  The existing compensatory financing facility should be improved and liberalized to compensate fully for shortfalls in the purchasing power of exports of developing countries resulting from changes in relative price of shortfalls in volume measured according to a trend rate of growth. Repayments should be set in the light of the factors giving rise to the shortfall and should be required to be made when the purchasing power of export rises above the trend rates. In this context, the Group of 77 should urge for the acceptance of the following recommendations: (i) the limit on outstanding drawings under the facility should be increased from 75 per cent to 100 per cent of a member’s quota. Drawings in any 12-month period should be increased from 50 per cent to 100 per cent; (ii) the repayment period should be lengthened from the present three to five years to one of five to seven; (iii) countries should have the choice of basing the calculation of their shortfalls on their total receipts from merchandise exports or the combined receipts from merchandise exports and services; (iv) in the calculation of shortfalls, account should be taken of the increase in the price of imports; (v) increased import volume resulting from climatic or other factors beyond the control of the country concerned should also be taken into account in calculating the shortfalls; (vi) drawings under the facility should not be subject to any credit tranche conditionality; and (vii) even when the charges for the Compensatory Financing Facility are lower than the commercial rates, the annual rate of 4-3/8 per cent should be maintained for the period during which this service is being provided. (d)  The Group of 77 urges that a subsidy account to enable developing countries in particular the least developed, to borrow from the IMF supplementary facility be created. 6.  The Group of 77 emphasizes that a genuine and fundamental reform of the international monetary system is necessary and that such a reform should be consistent with the trade and development requirements of the developing countries.

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7.  The Ministers of the Group of 77: (i)  Call on the Group of 24 to intensify its work in accordance with its mandate and to do preparatory work on the fundamental reform of the international monetary system, and invite the Chairman of its Deputies to convey reports of all its meetings to the Chairmen of the Group of 77 in Geneva and New York; further call on the above-mentioned Groups to collaborate with each other on these matters and make arrangements for continuing cooperation. The Ministers of the Group of 77 are of the view that member Governments of the Group of 77 should avail themselves of the occasion of the Bank/Fund meeting in Belgrade in 1979 to convene a meeting of the Group of 77 at the level of Ministers of Finance or Economy and in this context request the Government of Yugoslavia to make appropriate arrangements for such a meeting in consultation with the Chairman of the Group of 24; (ii)  Recommend that UNCTAD V establish an ad hoc intergovernmental high-level group of experts within UNCTAD to examine fundamental issues concerning the evolution of an international monetary system that is consistent with the long-term trade and development requirements of the developing countries; (iii)  Call for examination of the possibility of holding an international conference on monetary reform at an appropriate time.

Item 12(b): Measures to augment the net flow and improve the conditions of resource transfers from developed to developing countries. ODA—Bilateral (a)  The Ministers of the States Members of the Group of 77 note with concern (i) that the actual performance of the developed countries belonging to the DAC has fallen far short of the 0.7 target; (ii) that ODA as a percentage of DAC GNP has fallen steadily from 0.34 per cent in 1971 to 0.30 per cent in 1977; (iii) that the three largest developed market economies—the United States, Federal Republic of Germany and Japan—have allowed a continuing decline in ODA as a proportion of their GNP; (iv) that concessional flows from socialist countries of Eastern Europe are below the international target. The Ministers of the Group of 77 record with appreciation that three developed donor countries Netherlands, Norway and Sweden—have passed the 0.7 per cent ODA target, and have stated that they intend to try to reach the level of 1 per cent of their GNPs. (b)  Without prejudice to whatever target that may be set for the Third Development Decade, the Ministers of the Group of 77 call for a programme of immediate measures by each developed donor country in the form of binding commitments for an annual growth rate of ODA disbursements for each of the next three years. In particular, the Group of 77 calls on the United States, the Federal Republic of Germany and Japan to raise their ODA disbursement at least by 25 per cent per year for each of the next three years in real terms so as to double their disbursement by the end of the period. In this context, the Group of 77 notes that the Government of Japan has announced its intention to double it ODA disbursement in three years and expresses its view that this increase should be in real terms. They also call on the socialist countries of Eastern Europe to increase their development assistance to satisfactory levels and provide full information on such flows. (c)  There should be general increase in real terms in the present total ODA flows to all developing countries and in the context of this general increase the quantum in real terms of ODA flows to least developed countries, most seriously affected countries, land-locked and island developing countries should be doubled.

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The increases to these categories of countries should be achieved within the shortest possible time and in any event not later than in 1981. (d)  The transfer of resources should be depoliticized and placed on an increasingly assured, continuous and automatic basis and achieve a rational and equitable distribution among developing countries taking into account different levels of development. The quality of ODA should be improved so that: (i)  ODA to least developed countries should be in grants and to other countries at least at 95 per cent concessionality. (ii)  Definition of ODA should be modified to be net of amortization and interest. (iii)  Loans with less than 50 per cent grant element should not qualify as ODA. (iv)  ODA should be united and programme assistance should be increased as against project assistance. (v)  Local cost financing should be provided. (vi)  Greater preferential margins should be allowed to developing countries suppliers in the context of international bidding for projects financed by multilateral financial institutions. (e)  There are now substantial ODA funds, which have been committed but remain undisbursed. Consideration should be given to the possibility of using these for developmental purposes and particularly to provide balance-of-payment support by having the developed donor countries deposit ODA resources in a revolving fund as soon as they are committed. They would be drawn down by the developed donor country as and when they are disbursed. (f) Developed countries should keep their public opinion informed about the importance of acceleration the transfer of resources to developing countries. (g) Implementation of immediate increases should be monitored regularly by the Trade and Development Board.

Multilateral assistance The Ministers of the Group of 77: (i)  In view of the size and increasing financial needs of developing countries, stress the need of an urgent and substantial general increase of the capital base of multilateral financial institutions provided by developed countries so as to ensure that their commitments in favour of developing countries increase in real terms at a satisfactory rate and are consistent with the needs of those countries. The increase in capital base should be made for both the World Bank and the regional development financial institutions. (ii)  Urge IBRD and regional development banks to modify their rules and procedures in granting loans to developing countries in order to avoid delays in implementation and disbursements. (iii)  Urge the IBRD and the regional banks to provide increasing technical assistance both for project development and execution. (iv)  Since IDA plays a major role in the transfer of resources to the least developed countries and other low-income countries, call for the sixth replenishment to be effected without delay so as to result in a significant real increase in resources. In this regard the replenishment of the soft windows of the regional development banks should be coordinated so as to result in increased lending capacity in real terms. (v)  Urge the reviving of the Third Window of the World Bank. (vi)  Considering the multiyear nature of the programme of the operations of UNDP and other related United Nations agencies, urge that the financing of these operations should be planned also to cover several years.

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(vii)  Agree that the proposal for the establishment in the World Bank of a long-term facility to finance purchases of capital goods by developing countries should be considered as quickly as possible with a view to taking a positive decision at the earliest possible date. (viii)  Call for an increase in programme lending of the multilateral financial institutions to make it equal to at least 25 per cent of total loans and also to stress in this context that the lending programmes of the multilateral financial institutions should become increasingly responsive to the over-all priorities and in particular to sectoral priorities of the recipient developing countries. Call for adequate local cost financing to be provided. (ix)  Call for a massive transfer of resources to developing countries, which would enable them to accelerate their pace of development and thus contribute to inflation-free growth of the global economy. Such a massive transfer of resources for project development and execution and programme finance purposes to developing countries will be successful only if it is compatible with the development priorities of developing countries and its terms and conditions consistent with their debt servicing capacity over the longer term. (x)  Support the establishment of clear and coherent objectives for the transfer of resources from developed creditor countries and multilateral institutions as well as to the creation of operative mechanisms that effectively verify the additionality of resources. (xi) Reject the principle of arbitrary ‘financial graduation’ which is being established in IBRD and other international financial institutions providing non-concessional finance. With this principle, developed countries also seek on the one hand to reduce or cease loans to these countries, which have achieved progress in their economies and on the other hand to avoid their responsibility with regard to the transfer of real resources. The problem should be resolved by establishing objective criteria through negotiations where developing and developed countries will have equal representation and voice.

Private flows The Ministers of the Group of 77: (i)  While acknowledging the need for private flows, stress that these should not in any way undermine the targets set for concessional flows. (ii)  Call for expeditious implementation of the Manila recommendations to help remove the present administrative and institutional obstacles impeding the developing countries access to national capital markets. Call for a preferential treatment for developing countries to enable them to make floatations or placements on schedule in developed countries with national capital markets; and raise in favour of developing countries the ceilings on foreign floatations especially in countries whose currencies are in high demand. Charges should be carried out rapidly with a view to facilitating the developing countries access to international capital markets. In this regard, the Group of 77 hopes that the contemplated European monetary system will not lead to realignment of currencies that would result in imposing a cost on developing countries incurring liabilities in these currencies. (iii)  Welcome direct private investments, which are compatible with their national legislation and development priorities while at the same time allowing them to enjoy an increased local participation in management, administration, employment and on-the-job training for local manpower, as well as local participation in ownership. The Group of 77 Ministers recalls the urgency of defining a code of conduct governing the activities of the transnational corporations, which meets the interests of all parties concerned. (iv)  Call on multilateral financial institutions to consider undertaking co-financing arrangements, after study and detailed examination in accordance with the priorities of the countries concerned.

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Multilateral guarantees Whereas multilateral financial institutions (MFIs) have the capacity to extend guarantees to enable their members to mobilize resources from the private capital markets, they have not so far provided guarantees in any significant volume since such guarantees are considered by their articles of agreement as being equivalent to loans. In seeking multilateral guarantees, the Group of 77 stresses the need to ensure that such guarantees bring additional capital flows to the developing countries concerned and do not in any way adversely affect the access to capital markets already enjoyed by some developing countries. The guarantees must be established in such a way as to avoid the possibility of existing borrowers being asked to go to the facility for guarantees even if they do not wish to do so. In this context, the Group of 77 countries urge that attention be given to: (1) a recommendation to establish a separate multilateral guarantee facility for the interested developing countries; (2) a recommendation to amend the articles of agreement of multilateral financial institutions to allow them to provide guarantees more easily, including partial guarantees.

Item 12 (c): Other financing issues related to trade The Ministers of the Group of 77 considered the proposal for the establishment of the multilateral export credit guarantee facility which was examined and recommended by a group of international experts in UNCTAD V to agree on the establishment of such a facility in favour of developing countries that wish to enhance their access to international capital markets and diversify their exports.

Item 12(d): (i) Review of implementation and further action that may be required pursuant to Trade and Development Board resolution 165 (S-IX), part A The Ministers of State Members of the Group of 77 while recognizing the efforts of some developed countries in taking steps to alleviate ODA debts of some developing countries, regret that the efforts so far have not been fully consistent with the relevant provisions of Part A of resolution 165 (S-IX). In this regard the Ministers: - Invite the developed countries which have already taken some actions in favour of some developing countries affected by the resolution to extend these actions to cover the ODA debt of all the poorer developing countries described in the resolution without discrimination on any ground. In the case of developed donor countries which grant relief measures to only a limited group of countries the Group of 77 would not consider such developed countries as having implemented resolution 165 (S-IX); - Urge the developed countries which have not yet done so, to take, as early as possible, the necessary steps to fully implement Part A of the above-mentioned resolution; to benefit all the poorer developing countries covered by the resolution without discrimination; - Recall that the initial aim was to succeed in alleviating the ODA debt of the developing countries affected by resolution 165 (S-IX) within the framework of international cooperation.

Item 12 (d): (ii) Detailed featured for future operations related to debt problems of interested developing countries (Trade and Development Board resolution 165 (S-IX), part B) The Group of 77 calls for: (a)  The completion of negotiations of detailed features for future debt operations by UNCTAD V in the light of the basic concept contained in resolution 165 (S-IX). In this context, the preamble objectives and initiatives procedures as drafted by the UNCTAD intergovernmental

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group of experts are satisfactory. In ‘analysis’, the Group of 77 rejects any effort to bifurcate debt problems into ‘acute’ and ‘long-term’. In ‘action’, the Group of 77 stresses the need to ensure that domestic measures correctly reflect the responsibility of the debtor and do not give external authorities the right to infringe on the sovereignty of States. (b)  The establishment of an International Debt Commissions, comprising eminent public figures with recognized knowledge and experience of debt problems and economic development. Any interested developing country which believes it has, or may have a debt problem could address itself to the Commission. The Commission will: (i)  examine the debt and development problems of the requesting country; (ii)  in the light of such examination and in accordance with the modalities of the detailed features, make recommendations on measures required to deal with the debt problem in the broader context of development including measures of debt reorganization and additional bilateral and multilateral finance, and (iii)  convene a meeting of all parties concerned with a view to implementing the recommendations under (ii). In carrying out its work, the commission will be assisted throughout by relevant international organizations including UNCTAD. This procedure and the detailed features drawn up in terms of resolution 165 (S-IX) will assure a global approach in which countries in similar situations will be treated similarly. The Ministers of the Group of 77 note with dismay that explicit provisions in two UNCTAD consensus resolutions, namely 132 (XV) and 165 (S-IX) calling UNCTAD to attend the creditors clubs were not honoured by the Paris Club in a recent instance. This was so in spite of an invitation by the debtor developing country concerned. In future debt negotiations interested developing countries using creditor clubs should be entitled to full assistance and participation from UNCTAD and other relevant international institutions.

Item 12(e): Review of the present system of international financial cooperation in the context of world trade and development and consideration of ways and means within this context to make it more effective in contributing to the development of developing countries 1.  Past experience has shown that various aspects of international financial cooperation have been dealt with in an ad hoc manner by a multiplicity of fora and institutions, which often operate along lines, which are not mutually supportive of or even consistent with, each other. This has led to a lack of predictability, which has prevented individual developing countries from planning predictability, which has prevented individual developing countries from planning their development with confidence and it has also resulted in a failure to achieve the targets for the development of developing countries despite the fact that these have been universally accepted. Basically, the problem has been that there is no meaningful commitment in respect of the total transfer of resources required to achieve these targets and the contributions necessary from individual developed countries and multilateral financial institutions in order to ensure that the total is reached. The need for a coherent system of international financial cooperation is becoming increasingly evident and the Group of 77 endorses the following basic elements of such a system. 2.  In order to become fully supportive of internationally accepted targets for the development of developing countries the Group of 77 should seek from developed countries commitments to cooperate more effectively in evolving in a comprehensive manner and effective an equitable

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system of international financial cooperation, which must, inter alia, meet the following objectives: (a)  Ensure the transfer of real resources to developing countries adequate to meet the external capital needed to achieve these development targets. (b)  The form and composition of these capital flows should be consistent with the development plans of recipient developing countries and fully responsive to their investment and development priorities including sectoral allocations: the characteristics of the capital flows should be such—quickly disbursing, united, programme, etc., so as to enable their rapid and effective utilization. (c)  This transfer of real resources should be on terms commensurate with the debt servicing capacity of the developing countries and their own development objectives. This would imply that not with standing the importance of private flows the bulk of the resource transfer should be in the form of concessional flows. (d)  In order to achieve this, the developed countries that have failed so far to reach the ODA target, should sharply increase their ODA to reach this internationally accepted target. (e)  Private capital flows to developing countries should be sustained on improved terms and conditions. Capital market regulations in developed countries should be liberalized in order to ensure the improved access of developing countries to these markets. (f)  In the context of transfer of resources to developing countries the need for more concessional transfers to least developed, MSA and other special categories of developing countries should receive special attention. (g)  In addition to securing adequate long-term capital flows the system of international financial cooperation should provide necessary financial resources including fund quota increases, longer-term balance-of-payments financing and compensatory finance to offset shortfalls in the purchasing power of exports and to meet unforeseen import needs of individual developing countries. These financial resources should be available on appropriate terms and conditions and should be fully supportive of the country’s development programme. (h)  This system of financial cooperation would also provide for a multilateral framework for future debt operations of interested debtor developing countries that safeguards their development programmes on the basis of Trade and Development Board resolution 165 (S-IX). (i)  The transfer of real resources should be placed on an increasingly assured, continuous and automatic basis, providing reasonable certainty to recipient countries in making their development and investment programmes. There should be an assessment at an international level of the necessary contributions of developed donors and multilateral financial institutions. Means should be found in the form of an international covenant to ensure that transfer of resources take place in a way consistent with this international assessment. (j)  The policies of multilateral financial and monetary institutions and their treatment of individual countries should be fully consistent with the priorities and development objectives established by the international community in the United Nations General Assembly. (k)  Developing countries should enjoy an equitable share in the decision-making process at the international level on matters affecting the international monetary and financial system including decision-making in specialized agencies competent in these areas. (l)  There should be regular monitoring to ensure that inadequate functioning of any of the components of the system of international financial cooperation is remedied promptly. (m)  The transfer of resources should be adequate in volume, terms and conditions to meet the development finance needs of all developing countries.

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3.  The Group of 77 calls for agreement at UNCTAD V on these basic elements of system of international financial cooperation in the firm belief that it would be in the interest of the international community as a whole. Further detailed work on the elements should then be entrusted to appropriate intergovernmental machinery within UNCTAD, beginning with the convening of a group of experts.

Item 13 of the provisional agenda for UNCTAD V Technology Item 13(a): International code of conduct on the transfer of technology 1.  In view of the crucial importance of technology to the economic and industrial growth and development of countries, the Group of 77 reaffirms that the basic aims in the negotiation on the code of conduct on the transfer of technology are to eliminate restrictive and unfair practices affecting their technological transactions and to strengthen their national technological transformation and development while increasing the international flow of all forms of technology under favourable terms. 2. The United Nations Conference on an International Code of Conduct for the Transfer of Technology was held from 16 October to 10 November 1978, pursuant to resolution 89(IV) of UNCTAD and General Assembly resolution 32/188. The draft code of conduct upon which the negotiations at the United Nations Conference were held had been prepared by the intergovernmental Group of Experts, which had itself met in six sessions over a period beginning in November 1976 and ending in June 1978. 3.  The Group of 77 was not satisfied with the progress made at the negotiating Conference. The Group of 77 had unreservedly accepted various proposals put forward by the Committee Chairmen. This was done in the spirit of compromise. Despite the great flexibility and political will displayed by the Group of 77 in an attempt to secure progress, it was clear that other Groups lacked the political will to move forward. Some Groups had done nothing to advance the negotiations. The Group of 77 could not accept a text that endorsed the status quo, which was unfavourable to developing countries. The Group of 77 emphasizes that the progress which had been achieved had been made possible by the virtually unilateral concessions of the Group of 77. The Group of 77 views the situation with concern and invites developed countries to show evidence of more cooperative spirit so as to resolve the outstanding fundamental issues at the resumed United Nations Conference on International Code of Conduct in February/March 1979. What is needed is political will on the part of the other groups to move forward. 4.  The United Nations Conference will meet again in February/March 1979, at which time it will continue the negotiations leading to the adoption of the code of conduct. While some progress has been made in negotiating some provisions, a significant number of issues remain to be resolved. 5. The Group of 77 maintains that all international transfer of technology transactions must be within the scope of application of the code, and that such transactions occur either when the parties are from different countries or when they are located in the acquiring country if one of the parties is either owned or controlled by a foreign entity in accordance with the relevant national legislation. 6.  The code must be applicable in transactions or arrangements between parent enterprises and their subsidiaries in the acquiring country, or between subsidiaries or affiliate of the same enterprise wherever they are located. 7.  The Group of 77 affirms that the aim of the chapter on restrictive practices must be to eliminate practices, which have an adverse effect on the social and economic development of countries, and particularly of developing countries.

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8.  The Group of 77 further affirms that any mention in the code of conduct of industrial property rights must be balanced by reference to the national needs of economic and social development, as defined by each country, particularly of the developing countries. 9.  The Group of 77 considers that the law applicable to transfer of technology transactions must be the code of conduct and the law of the acquiring country, particularly with respect to issues involving public policy. Moreover, public policy issues, as determined under the law of the technology acquiring State, should normally be decided by national courts and tribunals of the technology acquiring State. Arbitration is recognized as a means of the settlement of disputes if the manner of selection of arbitrators and the procedure is of a type, which will be fair and equitable, and if the code and national law provided for under the provisions of the code is the law applied by the arbitrator. 10.  The Group of 77 reaffirms the need to adopt a legally binding code of conduct as one of the key instruments, which will contribute to the establishment of the New International Economic Order. 11.  The Group of 77 therefore urges the resumed session of the United Nations Conference to take necessary steps to conclude work on the elaboration of a universally applicable international code of conduct which incorporates the positions of the Group of 77 as stated in paragraphs 5 to 9 above, and to achieve the objective stated in paragraph 10 above in the shortest possible. 12.  The United Nations Conference should also take the necessary measures to consider and establish appropriate international machinery for its effective implementation. 13.  It is the firm conviction of the Group of 77 that at the resumed session the Conference should concentrate on the fundamental issues. If these fundamental issues are tackled successfully the Code could be completed and finally adopted. 14.  The Group of 77 recommends further that the outstanding issues be resolved at the resumed session of the United Nations Conference in February/March 1979 and those issues that may still remain unresolved be considered at the fifth session of the United Nations Conference on Trade and Development.

Item 13 (b): UNCTAD’s contribution to the economic, commercial and development aspects of the industrial property system in the context of its on-going revision 1.  The revision of the Paris Convention for the Protection of Industrial Property Rights taking place in the World Intellectual Property Organization should reflect the historical and economic changes, which have taken place, and the new trends in national legislation and practices of developing countries. The process of the revision should culminate in the establishment of a fair balance between the public interest and the broader needs of development, on one side, and the industrial property holders rights on the other. 2.  The Declaration of Governmental Experts from developing countries members of the Group of 77 on the role of the industrial property system in the transfer of technology of October 1977 (see document TD/B/C.6/24/Add.1, annex IV) should be one of the main bases for subsequent negotiations, particularly at the Diplomatic Conference scheduled for February 1980. 3.  The Group of 77 reiterates that the new Article 5A of the Paris Convention should reflect the main concerns particularly of developing countries promote the actual working of inventions in each country and enable member countries to take all appropriate measures to prevent abusive practices in the field of industrial property. Therefore, the Group of 77 urges all developed countries to live up to their commitments taken and agreed at the second session of the Preparatory Intergovernmental Committee on the revised Article 5A of the Paris Convention. 4.  In order to serve as a useful tool for facilitating the transfer of technology to developing countries, and the development of indigenous technology and to respond to the historical and

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economic changes which have been taking place in the last few decades, the current revision of the Paris Convention should recognize that all rights granted by a patent should be related to the working of the patent and guided by the considerations and concerns expressed by the experts from developing countries in their Declaration of October 1977 (see para. 2 above). 5.  The process of revision of the Paris Convention as regards trade marks should be guided by the Declaration of the objective of the Revision of the Paris Convention (December 1975), giving ‘full recognition to the need for economic and social development of countries’, to redress the present imbalance between rights and obligations of trade mark owners, and by the considerations and concerns expressed by the experts from developing countries in their Declaration of October 1975 (see para. 2 above). 6.  The Group of 77 reiterates its position on all aspects of the revision of the industrial property system as contained in the above declaration. The Group of 77, therefore, expects that its concerns find a place in the on-going process of the revision of the Paris Convention. 7.  UNCTAD should continue developing its activities, including technical assistance, in providing its valuable contribution to the function of the industrial property system in the transfer of technology and the main lines of its revision, related to the economic, commercial and developmental aspects on the basis of the results of the meetings held on this subject in 1975 and 1977, respectively, seeking preferential treatment for the developing countries. 8.  The Group of 77 urges the World Intellectual Property Organization to publish, before the end of 1979, the new Model Law on Inventions for Developing Countries.

Item 13 (c): Strengthening the technological capacity of the developing countries including accelerating their technological transformation 1.  In the implementation of resolution 87 (IV) in relation to ‘Strengthening the Technological Capacity of the Developing Countries’, while some positive steps have been taken at the national, regional and subregional levels, a comprehensive strategy is yet to be worked out and put in motion to bring about the technological transformation of the developing countries. 2.  The review of the progress made so far in the efforts to strengthen the technological capacity of the developing countries reveals the following: (i)  A large number of developing countries have established national centres or institutions. (ii)  At the regional level, an Asian Centre has been established in Bangalore and an African Centre in Dakar, while decisions have been taken to establish a Regional Arab Centre and a Latin American mechanism for technological information (RITLA). (iii)  At the subregional level, the decision has been taken to establish a subregional centre on pharmaceuticals for the Caribbean region. 3.  While the establishment of some national centres and the decisions to set up regional and subregional centres are indicative of steps in the right direction, there is need for further assistance to ensure that when these centres become operational they would have the capacity to fulfil their objectives. Financial assistance is required from UNDP, other international financial institutions and from voluntary contributions. These centres would need to be complemented by interregional centres as appropriate in order to reinforce the bargaining power and economies of scale of developing countries. 4.  What is needed in the implementation of resolution 87 (IV) is the assistance of the international community to the developing countries in their technological plans and policies (at the national, regional and subregional levels); the creation of institutions as well as the technological infrastructure; and the type of regional centres which could assist and cooperate with national centres in the fulfillment of their objectives.

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5.  There is an urgent need to strengthen the technological capacity of the developing countries and to move towards the acceleration of their technological transformation. Measures towards these ends might include: (a) the formulation and implementation of a technology plan as one of the fundamental instruments of national development strategy for technological transformation; (b)  the formulation and implementation of policies, laws and regulations on the transfer and development of technology in all its aspects; (c)  the formulation and implementation of technology policies and plans concerning specific sectors of critical importance to these countries; (d) the establishment and functioning of institutional mechanisms, including technology centres, the establishment and strengthening of Technological Training of Research Centres of Institutes and other arrangements at national subregional, regional and sectoral levels; (e)  the increased training and exchange of personnel and experience among developing countries including cooperative exchange of skills among these countries and establishment of appropriate institutional arrangements for them; (f)  the elaboration of special arrangements for the transfer and development of technology; (g)  the promotion and intensification of R and D activities on problems of critical importance to developing countries, particularly undertaking them in developing countries. 6.  The problems faced by developing countries in the technology field vary not only from country to country, but from sector to sector in these countries. Technology plans should therefore be based on concrete policies for each individual sector and should integrate those policies on individual sectors into a coherent technology strategy as part of a national development strategy. 7.  Preliminary work has been carried out by UNCTAD in sectors of critical importance to developing countries such as pharmaceuticals, food, energy, electronics, design engineering and consultancy, iron and steel, standardizations and quality control, and control of transfer pricing. The Group of 77 emphasizes that it is important to examine at an expert level specific sectors of critical concern to all developing countries in order to evolve an appropriate common strategy in these sectors so that a phased programme can be drawn up for increasing production in developing countries of manufactured products in the light of the Lima Declaration and the Plan of Action and of the MTN. Such a strategy should fully take into account the technology inputs required for the formulation of global production plans by the joint UNCTAD Expert Group in these sectors. 8.  In paragraphs 13, 16 and 18 of Conference resolution 39 (III), and in paragraphs 10 and 11 of Conference resolution 87 (IV) as well as in the chapter on Special Treatment for Developing Countries and international Collaboration in the draft Code of Conduct on Transfer of Technology, developed countries have accepted to undertake several measures to cooperate with the developing countries in strengthening their technological capacity. 9.  Very little, however, is known about the implementation by developed countries of the international obligations they have thus assumed. Nor is much known about the institutional structures they have created and the new policies they have adopted to implement these obligations. The Secretary-General of UNCTAD is requested to obtain information from Member States an implementation of these commitments and to report to the Committee on Transfer of Technology. 10.  It is important, therefore, that UNCTAD V decides on the concrete modalities through which the action agreed to by the developed countries is undertaken and the manner in which such implementation is kept under continuous review. 11.  The UNCTAD Advisory Service on Technology has played a significant role in assisting developing countries to strengthen their technological capacity. However, much more is required to ensure that the Advisory Service on Technology becomes an effective tool in helping developing countries in carrying out a programme of action towards their technological transformation.

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12.  The Advisory Service on Technology is, however, handicapped by its lack of resources. The Secretary-General of UNCTAD should, therefore, make concrete proposals for consideration at the Fifth Conference concerning the ways and means of making the Advisory Service on Technology more effective in meeting the increasing requirements of developing countries for technical and operational assistance in strengthening their technological capacity, individually and collectively, and paving the way for their accelerated technological transformation. For this purpose enlarged financial assistance is required from UNDP, other international financial institutions and through voluntary contributions, particularly by developed countries.

Item 13(d): Development aspects of the reverse transfer of technology 1.  The first serious consideration of the development aspects of reverse transfer of technology took place from 27 February to 7 March 1978. The Intergovernmental Group of Experts had before it three types of studies which were prepared by the UNCTAD Secretariat. The studies were: (i)  studies focusing on international issues; (ii)  case studies of four Asian countries examining some of the main issues at the national level; and (iii)  a study on the conceptional and empiric basis for cooperative skill exchange among the developing countries themselves. 2.  Pursuant to the report of the Intergovernmental Group there had been areas of agreement. For example, agreement had been reached on the following: (i)  that the problem of reverse transfer of technology is a multifaceted one, embracing social, economic and development issues as well as other aspects; (ii)  that in order to have a balanced understanding of the issues and improving the policy responses, there was need for studying the experience of countries belonging to different geographical areas; and (iii)  that there is a need for a comprehensive approach to reverse transfer of technology. 3.  The report of the Intergovernmental Group of Experts also emphasized the fact that action was needed by the developed countries, the developing countries, and UNCTAD. Concerning the participation of UNCTAD, the Group suggested that further work was needed on the subject of reverse transfer of technology. Reaffirming General Assembly resolution 33/151, the Group of 77 requests the Secretary-General of UNCTAD in collaboration with other agencies concerned, to continue within the work programme of UNCTAD his studies, particularly on the following three main areas: (i)  the experience and policy of individual countries to and from which flows of skilled manpower take place; (ii)  the modalities of cooperation at the national, regional and international level; and (iii)  the examination of the feasibility of various proposals made hitherto regarding cooperative exchange of skills among developing countries.

Item 14 of the provisional agenda for UNCTAD V Shipping Item 14(a): Developments pertaining to the Convention on a Code of Conduct for Liner Conferences 1.  The Code of Conduct for Liner Conferences was adopted at a diplomatic conference held in Geneva in March 1974. The Code has not yet come into force because of non-fulfilment of the 25

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per cent tonnage requirement. The industrialized countries, who own the majority of the world tonnage, have not ratified the Code. Some developing countries have demonstrated their political will by signing, ratifying and acceding to the Code. To date, 34 developing countries have signed the Code. Of these, 20 come from Africa, seven from Asia, and seven from Latin America. Meanwhile, developing countries are mainly users rather than providers of shipping services. Whilst efforts are being made to rectify this anomalous position, vital problems arising therefrom continue unabated. These relate, in particular, to the provision of adequate and reliable shipping services, undue escalation of freight rates and dubious surcharges. 2.  The Ministers take note of the above developments and urge: (i)  that other developing countries should endeavour to ratify or accede to the Code, if they have not already done so; (ii)  that developing countries initiate steps to bring the provisions of the Code into operation in their respective liner trades; (iii)  that developing countries seek assistance from their regional commissions and UNCTAD as to the most harmonious and effective way in which they could implement provisions of the Code in cooperation with, whenever possible, like-minded States and shipping lines; (iv)  that continued political pressure be put on the developed countries with a view to their ratifying the Code and thereby bringing up the total tonnage requirement for the Code to enter into force; (v)  that, in the event that at the time UNCTAD V convenes the Code has come into force, developing countries should urge all States to initiate without delay the implementation procedures continued in the Code; (vi)  that UNCTAD, in cooperation with regional United Nations agencies, conduct in-depth studies of level and structure of conference tariffs to help establish rational, realistic and non-discriminatory relationships between the freight rates and commodities traded by developing countries; (vii)  that developing countries establish or strengthen shippers councils or any other similar institutions and devise an effective programme at global, regional and national levels with a view to counter-balancing the monopolistic power of liner conferences; (viii)  that the application of any increase in freight rates as well as the imposition of surcharges by liner conferences be subject to prior consultation among governmental authorities, groups of shippers, national shippers councils, or similar institutions. These consultations must be based on a formula to be jointly worked out among the parties concerned, and must also take account of the economic realities of developing countries. 3.  In order to further improve the position of the developing countries, the Group of 77 requests the Secretary-General of UNCTAD, after the Code comes into force, to conduct studies so that in future strengthened.

Item 14(b): Participation of developing countries in world shipping and the development of their merchant marines 1.  Despite the recognition by the third session of the United Nations Conference on Trade and Development that developing countries should have an increasing and substantial participation in the carriage of maritime cargoes, the situation to date remains far from satisfactory. It is noted, again, that no progress has been made in the area of shipping under the International Development Strategy for the Second United Nations Development Decade and the Programme of Action for the Establishment of a New International Economic Order. 2.  The introduction of new systems of transportation like international multimodal transport may bring its own train of problems particularly for developing countries. It is also noted that the

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insignificant share of developing countries in the carriage of all types of bulk trade, including refrigerated cargoes, is a matter for serious concern. In particular, there is need to ensure that the monopolistic power existing in international shipping is controlled. 3.  The Ministers, aware of the above considerations, urge: (i)  that action be taken to enable developing countries to transport an equitable share of all cargoes generated by their own foreign trade; (ii)  that regular bulk cargo movements between a pair of exporting and importing countries should, in principle, be transported on an equitable basis by vessels of the national lines of the respective trading countries, or by vessels otherwise operated by them. However, where a developed country is trading with a developing country in this regard and the developed country is incapable of operating national carriers as economically as the developing country, the developed country should leave transport arrangements in the hands of developing countries; (iii)  that sales and purchases of bulk and refrigerated cargoes and transportation provisions in relation thereto are shared in accordance with bilateral or commercial agreements which will ensure the principle of equitable participation. 4.  The Ministers call for cooperation among developing countries in relation to the following: (i) Discussions should be opened, followed by negotiations where appropriate, between developing exporting countries and developing importing countries with a view to taking measures which would ensure that, as far as feasible, all cargoes shipped between developing countries should be shipped on vessels of the national lines of the respective trading countries or by vessels otherwise operated by them; (ii) Discussions should be opened between developing bulk importing countries which import less than shipload quantities of bulk products with a view to examining the possibilities of joint bulk operation in cooperation with developing exporting countries; (iii)  Developing countries which are situated within the same liner service area should pool information on cargo movements and movements and service requirements with a view to developing joint sailing arrangements to increase the competitiveness of their liner fleets vis-à-vis that of the liner fleets of the traditional maritime countries; (iv)  Developing countries should establish regional associations of shipowners and joint ventures in shipping and shipyards. 5.  The Ministers, taking note of the desire of many developing countries to phase out open registry operation, call on the UNCTAD secretariat, in consultation with other related agencies, to undertake further studies in respect of the repercussions of phasing out open registries, its economic and social impact on the economies of developing countries, its effect on world shipping, and how the phasing out of open registries would ensure simultaneous development of the merchant fleets of developing countries, with a view to taking a decision on the desirability of phasing out, and also to study the feasibility of establishing a legal mechanism for regulating the operations of open-registry fleets during the corresponding period, stressing the need to adopt such legislative measures as might enable them to ensure that substandard vessels do not operate to their disadvantage. 6.  The Ministers urge that action be taken to facilitate financing of the ship acquisition4 shipbuilding and port development: (i)  Developed countries extending credit for ship financing to developing countries should be urged to make these credits available on favourable terms. In particular the maximum loan 4

These proposals are in line with recommendations made by the UNCTAD Group of Experts on improved methods of financing ship acquisition by developing countries, which met from 29 May to 2 June 1978 (see TD/B/C.4/179).

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duration should not be less than 12-14 years, including an adequate period of grace. Similarly down payment should not be more than 10-20 per cent of the contract price. Such loans should be at the most favourable rate of interest. Concessionary credit should also be extended to developing countries obtaining their ship requirements in shipbuilding yards located in other developing countries; (ii)  Technical and financial assistance should be provided to developing countries for the development of their shipyards; (iii)  Developed and developing countries should explore together thoroughly the possibilities of using bilateral and multilateral development aid for the acquisition of second-hand ships. International financial institutions should give refinancing facilities to national financial institutions of developing countries in their lending for ship acquisitions; (iv)  Developing countries which have the required management and operational expertise in shipping should be encouraged to participate in joint ventures with other developing countries. Joint ventures among developing countries would provide the required collateral for the financing of vessels as a result of the larger scale of operations and pooling of cargoes. Joint ventures between developed and developing countries can also offer possibilities for developing countries to acquire vessels as well as management and operational expertise; (v)  Lack of competently prepared feasibility studies is sometimes an important restricting factor for ship finance. To assist developing countries with feasibility studies for ship acquisition a special ad hoc unit should be established within UNCTAD; (vi) Similar facilities should be extended for financing projects for port development in developing countries; (vii)  Similarly credit on easy and favourable terms should be made available to developing countries for acquisition of freighter aircraft; (viii)  The Committee on Shipping should keep the subject of ship finance on its agenda, review the matter at regular intervals, and recommend measures, which may be necessary, including the establishment of a consultative group; (ix)  Developed countries, particularly those with ship-building industries should be urged to refrain from adopting protectionists measures which will have the undesirable effect of both raising the prices of ships and denying to developing countries the opportunity to establish and expand their shipbuilding industry in which they enjoy comparative economic advantage. 7.  The Ministers urge further work to be undertaken by UNCTAD (i)  Having identified in broad outline the possibilities for expanding the tanker and bulk carrier fleets of developing countries the UNCTAD secretariat should now proceed with in-depth studies of the possibilities in specific bulk trade routes, examining the manner in which cargo is currently tied to trading partner countries or transnational corporations and the means whereby it may be retied to the developing countries concerned; (ii)  In cooperation with the Centre for Transnational Corporations, the UNCTAD secretariat should investigate the controls, which are exercised by transnational corporations over bulk movements of commodities such as iron ore, coal, grain, phosphate and bauxite/ alumina; (iii)  Development of containerization and multimodal transport should receive the closest possible attention of the developing countries so that these countries can derive full benefits from new technologies. UNCTAD, in cooperation with ICAO, should carry out appropriate studies, including those on air cargo movements, so as to increase the air transport fleets of developing countries and to facilitate the export of goods by air as desirable. To this end, modernization and improvement of port facilities should also be necessary. The Committee

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on Shipping, in the context of its new terms of reference covering the subject of multimodal transport, should undertake intensive work to prepare guidelines for developing countries, as well as consider ways and means for assisting developing countries in the physical development of such facilities and further surface transport. (iv)  The Committee on Shipping should review at its regular session the whole question of the participation of developing countries in world shipping and the development of their merchant fleets, with particular emphasis on problems with which developing countries are confronted. In this regard, (a) The UNCTAD secretariat should give the necessary technical support to the Committee on Shipping to enable the Committee to discharge its responsibilities; (b) The UNCTAD secretariat should undertake in-depth studies on the refrigerated trade of developing countries. (v) UNCTAD should extend technical assistance and training to developing countries in shipping matters such as: (a)  fleet development, including projections for the fleet and service requirements of developing countries and the acquisition of vessels; (b)  ship operations, including liner operations, container control, cargo handling and forwarding; (c)  chartering and brokering; (d)  financial management, including ship accounting systems; (e)  ship maintenance and management.

Item 15 of the provisional agenda for UNCTAD V Least developed among developing countries The Ministers urge the immediate implementation of an action programme in favour of the least developed countries, additional to the measures in favour of all developing countries, as well as effective implementation of the measures contained in Conference resolution 62 (III) and 98 (IV) with respect to the least developed countries, taking into account the interests of all developing countries and the responsibilities of the international community as expressed in those resolutions. 1.  The Ministers therefore recommend that the fifth session of the Conference, as one of its major priorities, launch a radically expanded programme, in two phases: Phase One: An emergency effort for the immediate future in the form of Crash Programme (1979-1981) of greatly expanded assistance for the least developed countries, aimed at providing an immediate boost to their economy, immediate support for projects for the provision of the most pressing social needs, and paving the way for much larger longer-term development efforts; and Phase Two:  A  substantial New Programme of Action for the 1980s for the least developed countries with the objective of transforming their economies towards self-sustained development and enabling them to provide, as part of this process they have established by themselves, at least minimum standards of nutrition, health, transport and communications, housing and education as well as job opportunities to all their citizens, and particularly to the rural and urban poor, by the end of the decade. This New Programme of action for the 1980s would be undertaken within the framework of International Development Strategy for all developing countries during the Third Development Decade.

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I.  Crash Programme (1979–1981) 2. The Crash Programme for the least developed countries should contain, inter alia, the following: (a) Greatly expanded assistance resources for projects, especially those which have been identified, and programmes which can be executed quickly and bring substantial immediate benefits to the least developed countries, including: (i)  Immediate expansion of resources to strengthen efforts to improve nutrition, health, education, transport and communications, housing and job problems, and thus to provide immediate support for projects for the provision of social needs; (ii)  Massive supply of inputs necessary for agricultural and rural development, such as fertilizers, pumps etc., in order to increase production and productivity, especially of foodstuffs; (iii)  Provision of assistance for overcoming urgent bottlenecks in management, maintenance, repair and physical facilities in order to obtain better use of existing infrastructure and industrial plant; (iv)  Financial and commodity support for activities at the community level which create jobs, including support for local small-scale labour-intensive rural public works projects; (b)  Emergency help, as necessary, to meet balance-of-payments needs, disaster, relief etc.; (c) Speed up of approval and implementation of all assistance projects already in the pipeline; (d) Immediate financial support for preparations for the substantial New Programme of Action for the 1980s, including identification of planning bottlenecks and steps to correct them, survey of resources, feasibility studies and detailed preparation of investment projects, as well as projects to meet social needs; (e)  Major immediate efforts to mobilize the skilled personnel (both domestic and foreign) which will be urgently needed to support the planning efforts for the 1980s as well as other aspects of the Crash Programme (1979-1981).

II.  New Programme of Action for the 1980s 3.  The substantial New Programme of Action for the 1980s for the least developed countries will require support from donors for a much wider range of actions than have been typical of such flows in the past, and they will need to be provided under far more flexible criteria and conditions. They should cover four main areas: social needs, structural change, emergency support and the search for transformational investments.

Fields of immediate financial support 4.  The New Programme of Action should provide direct and indirect financial support for the improvement of nutrition, health, housing education, transport and communications, and employment in each of the least developed countries. Such expenditure should accelerate economic progress by providing needed income in rural areas and among the urban poor, and should bring tangible benefits to the poorest and subsistence sectors of the population even before the structural changes needed can take place. The aim should be to provide fully adequate minimum standards for the poor as soon as possible, and in any event by the end of the decade. As the decade progresses, the better working of the economic system in the least developed countries should itself provide increasing support for such standards.

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Structural change 5.  The substantial New Programme of Action for the 1980s must aim to transform the main structural characteristics of the least developed countries, which are the sources of their extreme economic difficulties, as well as to adjust to their natural handicaps. The characteristics to be overcome are: (a)  Very low income per head, with the bulk of the population far below a minimum standard of social needs; (b)  Very high proportion of the population in the subsistence sectors; (c)  Extremely low agricultural productivity and weak agricultural support institutions; (d)  Extremely low level of exploitation of natural resources—minerals, energy, water, etc. (because of lack of knowledge or lack of financing and skills for their development); (e)  Very limited development of manufacturing industry; (f)  Extremely low level of exports per head of population and even with aid inflows, very limited absolute availabilities of imports; (g)  Acute scarcity of skilled personnel at all levels; (h)  Very weak institutional and physical infrastructure of all kinds (including administration education, health, housing, transport and communications, etc.); (i)  Most of the least developed countries suffer from one or more major geographical or climatological handicaps, such as landlockedness, drought and desertification, or high exposure to cyclone or flood disaster or locusts.

Emergency support 6.  The New Programme of Action should make full provision for emergency assistance to meet unexpected problems as they arise, and thus to permit the programme as a whole to go forward, despite fluctuations in export earnings, natural disasters, etc.

The search for transformational investments 7.  High priority should be given within the New Programme of Action to identify and support the major investment opportunities in the least developed countries, because of their high potential for leading the way to the substantial transformations that are necessary if more ambitious growth and welfare targets are to be realized. Existing international financial institutions should allocate increase financial resources in support of these activities.

III.  Detailed steps for the planning and approval of the New Programme of Action for the 1980s 8.  The substantial New Programme of Action for the 1980s on behalf of the least developed countries requires, in the first place, a global planning effort, aimed at launching the programme and mobilizing international support. This should be paralleled by commencement, as soon as possible, of planning efforts for a greatly expanded programme by each least developed country itself, with full support from bilateral and multilateral assistance institutions to complement each country’s own more intensive work in the identification, preparation and implementation of such a major new programme, and reflecting its own specific needs and priorities. 9.  The stages of the global planning effort should include: (a)  Preparation, by the UNCTAD Secretariat, of an outline for a substantial New Programme of Action for the 1980s to be given full consideration at UNCTAD V;

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(b) Launching of the New Programme of Action by decision of the fifth session of the Conference, with details to be worked out as indicated below; (c)  Studies being undertaken by the UNCTAD Secretariat of the requirements, special measures and other detailed elements of an improved strategy to assist the least developed countries should, inter alia, be geared specifically to providing detailed recommendations for the operation of the substantial New Programme of Action for the 1980s; (d)  The results of these detailed studies are to be considered by a group of high-level experts to be convened by the Secretary-General of UNCTAD late in 1979; (e)  The recommendations of the group of high-level experts, as well as the background studies should be reviewed by the Intergovernmental Group of the Least Developed Countries at its third session, called especially for this purpose, early in 1980, and by the trade and Development Board, as part of its preparations for the Third United Nations Development Decade. This work should led to the adoption of precise recommendations to meet the objectives of the New Programme of Action for the 1980s, with commitments by the international community, and particularly developed countries and international institutions, as well as the least developed countries themselves with respect to: (i) targets for growth; (ii) external financial requirements; (iii) priority areas for support; (iv) institutional arrangements; and (v) provision for reviews of progress. 10.  The studies to be undertaken by the UNCTAD Secretariat should take account of the similarities of the economic situations, which exist in the least developed among the developing countries within the same geographical region.

IV.  Financial assistance requirements and policies 11.  The massive efforts needed for the New Programme of Action for the 1980s will require much more ambitious planning and preparation on the part of the least developed countries themselves, with the full support of the international community. However, such plans can only seriously be drawn up if there is assurance that substantial additional resources are indeed committed to the least developed countries. Thus serious planning must start with such assurances. 12.  The Ministers therefore call upon the fifth session of the Conference to take the following steps in support of the Crash Programme (1979-1981) and the New Programme of Action for the 1980s, described above: (a) To urge the developed countries and international institutions to support these programmes to a maximum extent and, in particular, to call upon: (i)  Each developed country to at least double the quantum of ODA in real terms currently being made available to the least developed countries. Such doubling should come through as part of an increase in the present total ODA flows in real terms to all developing countries. These increases should be achieved within the shortest possible time, and, in any event, not later than 1981; (ii)  Developed countries which now provide substantially less than the average flows of concessional assistance to the least developed countries, expressed as a per cent of each donor’s GNP, to agree to reach at least the average flow by 1981; (iii)  Donors to take immediate steps to plan for the provision of the much larger flows to be required in order to implement the New Programme of Action for the 1980s, and as part of the process of working out the details for the programme, to provide specific assurances of the size and continuity of such resources during the decade; (iv)  Governments of developed countries to provide some resources in form of automatic or semi-automatic transfers, to meet the needs of the least developed countries,

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particularly for programmes to combat poverty and improve the social infrastructure in such areas as health, education and housing, transport and communications; (v)  Donors to provide assistance in real terms, offsetting, as necessary, the effects of inflation. (b)  To call upon the developing countries in elaborating their programme for greater collective self-reliance and economic and technical cooperation among themselves, to pay particular attention to the special difficulties of the least developed countries and to expand support for the latter substantially as a further important contribution to the above programmes. (c)  With respect to the terms and conditions of assistance, to urge developed countries to implement immediately the following steps: (i)  Provision of all financial assistance in the form of 100 per cent grants; (ii)  Removal of all kinds of typing stipulations from all financial assistance; (iii)  Conversion of all past official debt into grants. (d)  As a major contribution to expanding the capacity of the least developed countries to put external assistance to immediate use, donors to provide for up to 100 per cent local cost financing in connection with financial and technical assistance projects where considered necessary by a least developed country. (e)  Donors, in providing expanded assistance to meet the needs of the least developed countries, to make full use of the more flexible modalities agreed upon in the UNCTAD donor/recipient meeting in November 1977 (see part two of TD/B/681), and in particular are urged: (i)  To provide more flexibility in the types of financing made available, so as to include not only project assistance, but also programme and sector assistance, balance-of- payments assistance, budgetary support, etc.; (ii)  To provide assistance in support of social objectives, minimum standards of consumption and human welfare and minimum levels of public services; (iii)  To provide for recurrent costs wherever appropriate; (iv)  To give urgent attention to making administrative improvement implementation of assistance programmes; (v)  To increase the volume and to improve the quality of technical assistance. (f)  To invite governments of individual least developed countries to organize meetings with bilateral and multilateral donor institutions to examine the report of the donor/recipient meeting (TD/D/681) in detail and to consider the specific follow-up steps that might be taken to implement the recommendations in each country. The UNCTAD secretariat should stand ready to assist least developed countries in organizing such meetings, in collaboration with the Regional Economic Commissions and with support from UNDP. (g)  To call upon bilateral and multilateral donor agencies to coordinate their efforts with the objective of ensuring that at least an adequate minimum flow of assistance is provided to each least developed country. Specific arrangements for this purpose should be worked out as part of the process of specifying detailed institutional arrangements for the New Programme of action for the 1980s.

V.  Commercial policy measures 13.  The extremely low absolute level of export receipts for the least developed countries and the resulting sharp limitation on the capacity to import is one of their major structural handicaps. Special efforts will therefore be needed to ensure adequate markets for the expanded production,

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which the New Programme of Action for the 1980s will bring about. The Ministers therefore recommend the following: (a)  Within the integrated Programme of Commodities, adoption of appropriate differential and remedial measures as called for in paragraphs 3 and 4 of Part III of Conference resolution 93 (IV); (b)  With respect to the multilateral trade negotiations, effective implementation is urgently needed to paragraph 6 of the Tokyo Declaration, which states: ‘The Ministers recognize that the particular situation and problems of the least developed among the developing countries shall be given special attention, and stress the need to ensure that these countries receive special treatment in the context of any general or specific measures taken in favour of the developing countries during the negotiations.’ (c)  With respect to the Generalized System of Preferences: (i) In the continuous improvement of their GSP schemes, developed countries to give special attention to the least developed countries; (ii) Improvement, liberalization and simplification of the Rules of Origin in respect of export products of the least developed countries; (d)  Provision for waiver of interest on present IMF compensatory financing facilities to stabilize export earnings, in the case of the least developed countries; (e) Provision of assistance for the expansion of exports of the least developed countries, wherever possible, in an integrated manner, covering all the relevant stages, including planning, production, transportation, promotion and sales; (f)  Provision of longer-term purchase arrangements for the products of the least developed countries by the developed countries wherever possible; (g)  Provision of especially favourable treatment to imports from the least developed countries in the case of government procurement by developed countries. In this context, the least developed countries should be given the benefits of the Code being negotiated in the MTN without being required to make reciprocal concessions; (h)  Developed countries and international organizations should adopt special measures in favour of the least developed countries to foster the creation of industries for on-the spot processing of raw materials and food products, as one of the based for diversification of exports; (i)  Where there are projects to expand exports of the least developed countries, special consideration should be given by developed countries, as part of the programme, to temporary removal of tariff and non-tariff barriers to market access for such products, taking into account the interests of other developing countries; (j)  In the effort to increase export earnings in real terms for all developing countries within the context of individual commodity agreements, special attention should be paid to the peculiar situation of least developed countries; consideration should also be given for exemption from pre-financing of buffer stocks and payments of dues and subscriptions; (k)  Establishment of special arrangements to assist the least developed countries in the sale of their exports in developed country markets, including the creation of especial sections within import promotion centers in the developed countries for this purpose.

VI.  Transfer of technology 14.  The developed countries and competent international institutions should: (i)  assist the institutions of least developed countries to obtain under preferential terms and conditions and at a minimum cost, the results of scientific and technological developments appropriate to their requirements;

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(ii) in order to overcome the technological and negotiating weaknesses of the countries, assist in the establishment of transfer of technology centers designed to obtain necessary technological information, to select from available alternatives and to negotiate proper terms and conditions for external collaboration; (iii)  make arrangements for the grant of patented, patent-related and on patented technologies, including know-how, suited to the economic conditions of the least developed countries; (iv)  provide the necessary assistance for establishing institutions of applied technology, with the aim of developing indigenous technologies and promoting the adaptation of imported technologies to national requirements; (v)  in order to compensate for the reverse transfer of technology through in brain-drain from the developing countries, now amounting to several billion dollars, make arrangements for the provisions to the least developed countries on a cost-free basis, of skilled manpower suited to the requirements of accelerated development of the least developed countries. 15.  The Ministers urge developed countries and competent international institutions to strengthen their efforts to assist the least developed countries in the field of transfer of technology and to implement fully the provisions of paragraph 34 of Conference resolution 98 (IV).

VII. Shipping 16.  The governments of developed and developing countries should invite shipowners and liner conferences to establish freight tariffs for the least developed countries which will encourage and assist in expanding the export and import trade of these countries which will encourage and assist in expanding the export and import trade of these countries, and to develop promotional rates for exports of the least developed countries which will facilitate the opening of new markets and development of new trade flows. 17.  The developed countries and the international financial institutions should give high priority to giving financial and technical assistance to the least developed countries to help them in acquiring and expanding their national merchant fleets and in improving the port facilities.

VIII.  Other special measures 18.  The fourth session in the Ministerial Meeting of the Group of 77 urge developed countries and international institutions to implement the especial measures on behalf of the least developed countries in other fields, as contained in Conference resolutions 62 (III) and 93 (IV), and in particular call upon UNCTAD, the UNDP and other relevant agencies to strengthen their assistance to the least developed countries in the field of insurance and reinsurance and to implement fully the provisions contained in paragraphs 31-33 of Conference resolution 98 (IV). 19.  All the above measure should be applied to all the least developed among developing countries without discrimination.

IX.  Further work by UNCTAD 20.  The Minister call upon the Secretary-General of UNCTAD to take primary responsibility, with full participation by other appropriate institutions, for detailed preparation of the Crash Programme (1979-1981) and the New Programme of Action for the 1980s on behalf of the least developed countries, and for the detailed arrangements at the global level for their implementation, coordination, and monitoring of progress. To meet the urgent needs of the least developed

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countries under the programmes, the work of the UNCTAD secretariat should be strengthened, and necessary additional resources should be made available. 21.  The Secretary-General of UNCTAD should continue and intensify the work programme of UNCTAD on behalf of the least developed countries as contained in Conference resolution 98 (IV), paragraph 37 (b)  and, in preparation for the New Programme of Action for the 1980s, along the lines indicated in TD/B/AC.17/7, paragraph 52. Further work should be undertaken, with particular attention to the need for in-depth study of the circumstances of individual least developed countries, in the following areas: (such studies, in the form of pilot studies and individual country case studies, should provide the basis for necessary policy changes at the international or country level, and should identify promising areas for technical and financial assistance). (a) Study of longer-term export potentials, import substitution potentials, and alternative strategies for their realization; (b)  Study of import cost-savings potential; (c) Evaluation of the role of foreign financial and technical assistance and potential for expanding the capacity to use aid effectively; (d) Survey of the internal trade and distribution network, including its relations to foreign trade; (e)  Survey of the adequacy of credit facilities for small farmers and artisans, and the possible role of foreign assistance. 22.  In view of the importance of improving the foreign economic sector performance of the least developed countries, the Ministers request the Secretary-General of UNCTAD to establish an advisory service in the field of planning and policies for the foreign economic sector of the least developed countries, to be financed from the regular budget of UNCTAD. 23.  The requirements for preparation by individual least developed countries of their own specific proposals under the Crash Programme (1979-1981) and the New Programme of Action for the 1980s will require strong technical assistance support. The UNDP and bilateral assistance institutions are urged to support UNCTAD in strengthening its technical assistance activities in support of such efforts. 24.  In order to effectively discharge its responsibilities in this area, and in recognition of the importance of these issues, the unit of the UNCTAD dealing with the least developed among the developing countries should be adequately strengthened and urgent consideration should also be given in the context of the restructuring of the institutional machinery of UNCTAD, to transforming it into a separate division of the secretariat.

Item 16 of the provisional agenda for UNCTAD V Land-locked and island developing countries Item 16(a): Specific action related to the particular needs and problems of land-locked developing countries 1.  Reiterate the special measures and specific actions related to the particular needs and problems of the land-locked developing countries envisaged in Conference resolution 63 (III) and 98(IV), part IV, and in Trade and Development Board resolution 109 (XIV), as agreed, and urges their full implementation by the international community. 2.  Recognize that land-locked countries are generally among the least developed among the developing countries; and their lack of territorial access to the sea, aggravated by great distances to seaports, by remoteness and isolation from world markets, and in the case of one of them

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devastation by a long war, and by the greater difficulties and costs of their international transport services, acts as a major impediment to their foreign trade and one of the serious constraints to their further economic and social development; that their difficulties often include inadequacy of physical facilities along the transit routes and in the seaports, delays and uncertainties in transit-transport operations, complications related to the commercial aspects of transiting a foreign territory, as well as very high real costs of access to world markets. 3. Stress the need for financial and technical assistance from the international agencies and developed countries as a means to solve the common transit and transport problems relating to land-locked countries and their neighbours. 4.  Recognize that specific action related to the needs and problems of land-locked countries must aim to: (a) reduce the costs of access to and from the sea and to world markets of land-locked countries; (b) improve the quality, efficiency and reliability of transit-transport services taking into account the needs and means of both the land-locked countries and their transit neighbours; (c) restructure the economies of the land-locked countries to overcome their geographic handicaps; (d)  offset the costs of improvements through especially favourable terms and conditions of assistance; (e)  construct dry ports as an additional facility.

Cooperation between land-locked countries and transit countries 5.  Recognize that measures to deal with the transit problems of land-locked countries require effective cooperation and close collaboration between land-locked countries and their transit neighbours. Where any study is to be undertaken in any transit country, such study shall be undertaken with the approval or consent of the transit country concerned. Where any programme or action is to be undertaken in or in relation to any transit country, such programme of action will be undertaken with the approval or consent of that transit country. Any proposals in relation to special measures to reduce the transit costs shall be given the consideration by the transit country.

Integrated planning approach 6. An integrated planning approach recognizes the need for close cooperation between the land-locked and transit developing countries concerned. Such cooperation, between these countries, including the establishment of high-level consultative committees, should include the following key elements: (a)  the need for close cooperation between land-locked developing countries and their transit neighbours concerning all aspects of transit facilities in accordance with agreements between the land-locked and transit countries; (b)  clear recognition that major efforts to reduce the cost of access to the sea and to world markets facing land-locked developing countries may necessitate improved procedures and new investments not only within the land-locked developing countries, but also within the neighbouring transit developing countries as well; (c)  the supportive role of needed financial assistance by the international community as a whole. Transit transport infrastructures need to be effectively improved both in the land-locked and transit countries. Financial arrangements must be provided by all members of the international community which take fully into account the fact that the improvements would be

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beneficial to both land-locked and transit countries. Such assistance should normally be on especially concessional terms; (d) the need to take into account all aspects of the problem of transit and transport of land-locked and transit countries bearing in mind the relevant arrangements and evolving policies of the concerned countries and including:  procedures and regulations, documentation, management, training, organizational and institutional arrangements, maintenance of existing facilities and infrastructure, new facilities and infrastructural requirements, possibilities for joint ventures, the effects of delays and uncertainties on the cost and quality of transit services. Improvements in each of these factors can lead to lower transit costs, and several complementary improvements will normally be needed to achieve maximum reduction in these costs; (e)  the importance of studying the possibilities of providing each land-locked country with alternative routes wherever this is feasible, in order to ensure against any difficulties that may arise on their transit routes; (f)  the need for detailed planning and costing studies on all available options. Such studies should aim to provide decision-makers with a clear picture of what improvements are likely to have the highest pay-offs, and a clear guide to the priorities for more detailed follow-up projects; they could form a concrete basis for attracting needed assistance from the international community.

Integrated, regional and subregional transport planning 7.  Consider the following as key elements of integrated, and where necessary, regional and subregional transport planning: (a)  the land-locked and developing transit countries can derive substantial long-term benefits from the improvement and development of integrated transport infrastructure, and, where necessary, regional and subregional transport infrastructure. The international organization and financial institutions should give high priority in their assistance programmes for such projects; (b)  land-locked and developing transit countries would benefit substantially from the harmonization of transport planning and the promotion of joint ventures in the field of transport, where necessary at the regional and subregional levels; (c)  interested land-locked countries, in cooperation with other countries, might consider creating a cooperative air transport development projects, which might provide more economical balanced and effective airfreight and passenger services, based upon a central organization which could undertake the necessary planning studies with appropriate technical assistance; (d)  all possible efforts should be made to apply accepted international conventions to facilitate transit traffic of the land-locked countries to promote and diversify trade of land-locked countries. In view of the above, the question of revising any of the existing multilateral conventions so as to bring them in closer conformity to the need to promote the trade and development of the land-locked and developing transit countries should be examined.

Priority areas for action and assistance 8.  Urges the international community to give strong financial and technical assistance support in the following areas: (a) development of all-weather through-road transport routes connection land-locked and developing transit countries with terminals of ports (sea/air) roadways and railways as the case may be, including adequate provision for heavy vehicles and maintenance;

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(b)  the extension or connection of the rail system of transit countries into land-locked countries and the provision of adequate rolling stock without the need for transshipment; (c) development or improvement of navigability of inland waterways including existing waterways so that continuous year-round use is possible; (d)  to ensure that each land-locked developing country has at least one airport fully equipped in accordance with international standards and to provide for the purpose of aircraft and other equipment related to air transport on favourable terms; (e)  to provide for the early introduction of new, more efficient or more economical forms of transport, such as pipelines (for oil, natural gas and other suitable products) and containerization systems; (f)  to provide fast and reliable communication links between the commercial centers of the land-locked countries and transit points; (g)  development and improvement of transit and port facilities especially for the use of any land-locked country, including the establishment of berth, transit shed, transit storage, and exclusive transit areas in transit ports including related facilities at necessary breakpoints; (h)  to establish TIR warehouses in land-locked countries on a preferential basis; (i)  the governments of developed and developing countries should invite and urge shipowners, members of liner conference and insurance companies, as far as feasible, to establish freight rates and premiums for the land-locked developing countries which will encourage and assist the expansion of the export trade of the land-locked countries and to develop promotional rates for non-traditional exports of these countries, which will facilitate the opening up of new markets and the development of new trade flows. 9.  Where the projects are related to, or have a bearing on, transit-transport infrastructures (roads, railways, waterways, ports, etc.) in the transit countries, a joint request by the concerned land-locked and transit countries would have to be made for financial and technical assistance.

Restructuring and diversification of the economies of land-locked developing countries 10.  Urge the provision of concessional assistance by the international community to help diversify the economies of the land-locked developing countries, with particular priority to the establishment of import-substitution industries and export-oriented industries, as well as to the development of natural resources.

Special Fund for land-locked developing countries 11.  Keeping in view the meager resources available to the Fund: (a)  urge the international community and particularly developed countries and other countries in a position to do so, to contribute generously to the United Nations Special Fund for land-locked developing countries; (b) endorse the interim arrangements by which the Special Fund is managed by the Administrator of the UNDP in close collaboration with the Secretary-General of UNCTAD; (c)  invite the Administrator of UNDP to ensure that the resources of the Special Fund are used in ways which are in addition to, and generally different from, the types of activities which the UNDP normally finances; (d)  welcome the growing support of UNDP for technical assistance projects aimed at improving the transit and transport situation of land-locked developing countries.

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Further action 12.  Requests the Secretary-General of UNCTAD to continue and intensify the work programme of UNCTAD in relation to the special problems of developing land-locked countries, including: (a)  review of the special economic problems deriving from the geographical situation of the land-locked developing countries, and consideration of possible further recommendations for action in their favour, with a view to reducing the real cost of their access to and from the sea and to world markets; (b)  studies of the transit-transport situation, facilities and arrangements in different areas with a view to facilitating government action aiming at: (i) improvement, where required, of transiting procedures and regulations; (ii) international joint ventures in the field of transit-transport; (iii) charges in the transit-transport sector. 13.  Requests the UNDP to increase their financial and technical assistance to land-locked countries and further requests the international community and international financial institutions to continue to provide and increase their assistance to land-locked developing countries at concessional rates. 14.  Recommends intensified activities relating to conducting necessary studies, implementation of special measures and action programme, including those under ECDC, as well as those under UNCTAD, and at regional and subregional levels, in cooperation with regional commissions; and further recommends that financial and technical assistance be provided for this purpose by the international community, international financial institutions and UNDP.

Item 16(b): Specific action related to the particular needs and problems of island developing countries 1.  The Ministers reiterate the specific actions related to the particular needs and problems of island developing countries as contained in Conference resolution 98 (IV), part III, and in the relevant General Assembly resolutions and urge full compliance with them by the international community. 2.  They also endorse the recommendations of the UNCTAD expert group on feeder and inter island services by air or sea for island developing countries (TD/B/687), and urge their early implementation by the international community. 3.  Further specific action is needed in the case of island developing countries to off-set the major handicaps in transport and communication, great distances from market centers, highly limited internal markets, lack of marketing expertise, low resource endowment, lack of natural resources, heavy dependence on a few commodities for the foreign exchange earnings, shortage of administrative personnel and heavy financial burdens. The developed countries and international organizations should be prepared to adjust their programmes and policies to ensure that the full benefit of general measures in favour of developing countries are generally shared by these island countries.

I.  Priority areas for action of assistance 4.  The Ministers urge the international community to give strong financial and technical assistance support to the efforts of the island developing countries in the following areas: (a)  In order to lower their vulnerability to economic instability, every effort should be made to diversify their economies;

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(b) Island economies, particularly those with limited domestic markets, rely heavily on exports for their foreign exchange earnings. Access to markets should therefore be facilitated by: (i) assistance in trade promotion efforts; (ii) simplification of preference procedures, so that small administrations and enterprises can take advantage of preferential access to markets where it is in principle available; (c)  Many of these countries are actively seeking private foreign investment for export processing industries, other industries, tourism, etc. Such efforts should be supported by assistance from the international community, including: (i) investment in infrastructure—water, electricity, industrial estates, transport; (ii) establishment of appropriate technical education and training programmes, including the areas of marketing and management; (iii) design of incentive packages; (iv) establishment of joint ventures upon request by developing island countries; (v) assistance in negotiating with foreign private investors. (d)  Migrant workers from the island developing countries make an important economic contribution to their own countries. For this reason, the host countries are urged to assist the island developing countries in their economic and social development by financial and technical assistance. Studies to examine the means of maximizing the social and financial benefits to the source island countries should be undertaken; these studies could consider also alternative measures to migration. Governments of host countries should take the necessary action to prevent exploitation of migrant workers, in particular by assuring that housing and remuneration for the specific type of work undertaken equate with the standard and rates obtained in their respective countries. (e)  Feeder and inter-island transport services for the island developing countries generally need to be subsidized. UNCTAD and other appropriate agencies should stand ready to respond to requests from island developing countries for assistance in designing appropriate subsidy schemes, and bilateral and multilateral donors of assistance should stand ready to respond to requests from such countries to help finance them. (f)  Islands are often subject to natural disasters hurricanes, volcanic eruptions, earthquakes, tidal waves). Efforts should be made at the regional or global level to improve methods of mitigating or preventing damage from natural disasters. The scope for setting up or improving regional or interregional disaster insurance schemes or funds should be explored. (g)  Assistance procedures should be simplified, in recognition on the one hand, of the small total amounts to be disbursed and which cannot support heavy administrative overheads, and on the other, of the limited time available to the few civil servants of small governments. Modifications in policy which donors might consider specifically for island developing countries include: (i) moving away from projects aid to programme aid; (ii) investing aid missions with greater authority to commit the donor governments; (iii) adjustment of normal aid procedures to lighten the burden on the administrations of island developing countries; (iv) UNDP should convene a meeting of donors of island developing countries to discuss assistance procedures. (h)  Often in island developing countries there are tasks requiring the attention of specialists, which, though essential, are not sufficient to keep the specialist fully occupied. In such cases, it can be sensible to recruit an expert whose services can be made available to a number of

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such countries. It is often desirable that he serves a limited region so that he can become conversant with the local context. Donors should consider such arrangements sympathetically. (i)  A major element for improved conditions for island developing countries can be provided through cooperation arrangements in a variety of fields, as well as through broader integration schemes. For example, the island developing countries will greatly benefit from cooperation arrangements among themselves in areas such as the development of shipping, air services, telecommunications, tourism, insurance and reinsurance. These countries cannot afford to maintain expertise with respect to many services and, therefore, can particularly benefit from sharing arrangements amongst themselves. Minimum services will often require assistance which could be of a financial, technical, administrative and marketing nature and support from the international community will be necessary. (j) Financial, manpower and geographic constraints have often restricted the ability of Governments of some island developing countries to have adequate participation in international conferences. The international community should assist them in overcoming such difficulties. (k)  Increased utilization of islands harbours by international shipping for servicing, refueling, ship repair and transshipment. (l)  Greater utilization of airports of islands ideally situated for such purposes as transit, refueling and servicing. (m)  Compensatory finance arrangements covering not only shortfalls in export earnings but also unexpected increases in import bills should be made available to island developing countries.

II.  Further work of UNCTAD 5.  The Ministers request the Secretary-General of UNCTAD to continue the work programme of UNCTAD on behalf of island developing countries as contained in Conference resolution 98 (IV), including the review of the special economic problems deriving from the geographical situation of island developing countries and consideration of possible further recommendations for action in their favour, with a view to reducing the geographical handicaps. With the objective in mind a global project should be launched to support the need to identify special measures in favour of developing island countries. The project will be phased into two stages: (i)  In the first phase, the project will produce an in-depth study analyzing the uniqueness of island economies and the constraints inhibiting their economic growth, in particular their distance from market centers, the smallness of their economies and markets, low resource endowment and heavy dependence on few commodities for foreign exchange earnings. (ii)  In the second phase, the outcome of the above-mentioned study will form the basis for a conference of planners from island countries that will propose specific measures for external assistance, recognizing, inter alia, the traditional island life and institutions, physical environment, development priorities and the problems of island countries in the international economy. 6. The UNDP, international financial institutions and bilateral assistance institutions are requested to increase the assistance to island developing countries. These institutions are urged to support UNCTAD in strengthening its technical and advisory services on behalf of island developing countries. This can be achieved by identifying specific programmes of technical assistance, which will meet the requirements of island developing countries. The criteria, terms and conditions governing the flow of bilateral and multilateral financial and technical assistance to the island developing countries should be geared to the special needs and problems of the countries concerned. A major proportion of such aid should be made on a grant basis.

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7.  Since the regional economic commissions have identified the special needs of island developing countries in their respective regions UNCTAD should, in carrying out its task, coordinate its activities and cooperate with regional and subregional economic commissions in the implementation of programmes in favour of these countries. 8.  Recognizing the importance of tourism as a major source of income, employment and foreign exchange for some island developing countries and the need for these countries to have an equitable share in international air passenger transport, it is deemed appropriate: (a)  To support the recommendations of the UNCTAD Group of Experts on inter-island and sea services and urges their immediate adoption and implementation by the international community; (b)  To support the efforts of these island developing countries to conclude as soon as possible equitable air services agreements both for scheduled and non-scheduled services by airlines of national designation; and (c)  To invite the UNCTAD in collaboration with appropriate regional institutions to undertake as a priority research subject studies on the policy issues involved in the development of air transport services.

Item 17 of the provisional agenda for UNCTAD V Trade relations among countries having different economic and social systems Introduction 1.  This subject has been dealt with systematically since the First UNCTAD. Progress has been made, but there can be no doubt that trade and economic relations between the developing countries and the socialist countries of Eastern Europe could be greatly increased and improved. The present situation of the international economy and the phenomena of growing protectionism have made it necessary for the economic relations of both groups of countries to be increased and be linked to the efforts to establish a New International Economic Order. Planning trade by means of long-term agreements and contracts; consideration of comprehensive approaches to economic relations instead of attention focused exclusively on trade; the greater capacity of the developing countries to formulate policies for foreign economic relations and to achieve their implementation; attaining a mutual expansion of trade based on the principle of non-reciprocity; and a greater impact of multilateral approaches, are among some of the elements which could contribute to the achievement of a greater and better economic relationship between the two groups of countries. 2.  In this context, the socialist countries of Eastern Europe should play an increasingly more active role in bringing about the early establishment of the New International Economic Order. 3.  The Ministers propose that UNCTAD adopt a comprehensive programme on trade and economic relations among countries having different economic and social system. Such a programme should embody the establishment and improvement of a series of instruments for the promotion of economic relations and should embody the following measures:

1.  Expansion and improvement of preference schemes (i)  The socialist countries of Eastern Europe should expand and improve without delay their schemes of generalized preferences. A preferential duty free entry should be granted to all manufactured products of developing countries, particularly those based on processing of their commodities and raw materials and on all tropical products.

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(ii)  Action should be taken by the socialist countries of Eastern Europe to remove all forms of tariff and non-tariff barriers. This should be done on the basis of non-reciprocity and non-discrimination. (iii)  Such improvements should, inter alia, recognize the need for increased imports of manufactured and semi-manufactured products from developing countries.

2.  Payments arrangements Limited progress has been made in the field of payments. In order to improve the situation, the following measures should be implemented: (i)  All payments should be made in convertible currency, unless in those cases where developing countries express a preference for or interest in other special arrangements like the clearing account system. (ii)  Improvement in the CMEA payments arrangements by, inter alia, the use of transferable roubles so that developing countries can use their surplus balances in transactions with other CMEA countries, or transfer such balances into convertible currencies.

3.  Trade development potentials for exports of developing countries (i)  The socialist countries of Eastern Europe should take the necessary measures to identify and accommodate in their medium and long-term plans the potential areas of trade development with developing countries, particularly in the field of manufactured and semi-manufactured products. In this manner, developing countries would be aware of the import potential that the socialist countries of Eastern Europe would have for their exports, particularly in sectors where developing countries have a comparative advantage. All effort would be made by developing countries to utilize such areas of export interest. (ii)  The socialist countries of Eastern Europe should adopt other policy measures, which would ensure the growth of demand in their countries for products of developing countries and the consequent imports from developing countries. These policy measures should result in reserving and increasing share for the developing countries in the markets and import programmes of the socialist countries of Eastern Europe, especially in the import market for processed and semiprocessed goods. Special measures could also include sub-contracting and tripartite ventures.

4.  Establishment of joint ventures (i)  Where developing countries consider it to be advantageous, joint ventures should be promoted and established, particularly in the field of industry, agriculture and trade, with individual developing countries, groups of countries and tripartite corporations. The socialist countries of Eastern Europe should encourage and participate in such efforts. Such joint ventures should include effective participation of nationals of developing countries and greater utilization of local materials. (ii)  The objectives of such joint ventures should be to promote the industrialization of developing countries and to increase the exports of manufactured and semi-manufactured products from these countries.

5.  Financial assistance (i)  The socialist countries of Eastern Europe should increase their financial assistance to developing countries with a view to meeting the target of 0.7 per cent of ODA set in the Second United Nations Development Strategy before the end of 1980.

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(ii) They should adopt the necessary measures, which would make the Special Fund of the International Investment Bank effective. Through this Fund resources should continue to be made available to developing countries for the identification and financing of national, subregional and regional projects directly or through the regional development banks. (iii) Through this bank, the socialist countries of Eastern Europe should be able to arrange resources earmarked for financial assistance to developing countries and a lowering of the rates of interest levied on borrowings in convertible currency by developing countries.

6.  Technical assistance and training It was considered desirable to provide incentives for multilateral approaches which will make possible relations between one or several countries of one group and one or several countries of the other group and with the corresponding secretariats of their economic groups. For this it would be necessary to increase mutual knowledge and develop contacts at every level. It was seen that there are several multilateral mechanisms in the socialist countries of which the developing countries could take advantage: (i)  The socialist countries of Eastern Europe should increase the level of technical assistance given to developing countries, in particular for the training go high-level staff from the developing countries in the technical and scientific fields and assistance in the establishment of technical and scientific institutions or centres in these countries; (ii)  The UNCTAD secretariat should assist developing countries through a study of the ways and means of effective utilization of technical cooperation agreements between developing countries and socialist countries of Eastern Europe; (iii)  The UNCTAD secretariat should submit concrete proposals on effective utilization of the Special Fund of the International Investment Bank for financing programmes of economic and technical assistance to developing countries. In order to facilitate trade and economic cooperation, and the exchange of information, action should be taken to set up joint intergovernmental commissions between developing countries and socialist countries of Eastern Europe and to promote cooperation between their chambers of commerce.

7.  Institutional matters (i)  The Intergovernmental Group of Experts on Trade Opportunities which met from 17 to 22 October 1977 should be reconvened to study, inter alia, the proposals of the Group of 77 submitted to the Group of Experts. (ii)  The Intergovernmental Group of Experts to study a multilateral system of payments between socialist countries of Eastern Europe and developing countries should also be reconvened. This Group met from 28 November to 2 December 1977. (iii)  UNCTAD should upon request continue to organize bilateral consultations not only at regular sessions of the Board, but also at other times. (iv)  The Group of 77 recognizes the need to increase its capacity to formulate policies and to establish institutions for their implementation, so as to orient trade and cooperation with the socialist countries of Eastern Europe. Both parties should be better informed of the characteristics and structures of their corresponding external sectors, thus creating and improving appropriate institutional arrangements between them to solve the difficulties, which their economic relations might face as well as for promotion, considering broad participation of the economic agents involved.

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(v)  The role which UNCTAD could play to support the developing countries in practically all the fields mentioned was stressed. This support can take the form of studies, convening groups of experts, organizing training courses and direct technical assistance. For this, coordination with the regional processes for cooperation and with the United Nations regional commissions and the UNDP would be very useful.

Item 18 of the provisional agenda for UNCTAD V Economic cooperation among developing countries Support measures by developed countries and international organizations for Economic Cooperation among Developing Countries (ECDC) 1.  The Ministers of the Group of 77 reaffirm that strategy of collective self-reliance should be viewed as an integral part of a global economic system, specifically as an essential element of an overall strategy for development encompassing the restructuring of international economic relations, and that Economic Cooperation among Developing Countries is a key element in a collective self-reliant strategy and thus becomes both an essential part of and an instrument for the necessary structural changes required for a balanced and equitable process of world economic development, ushering in a new set of relationships based on mutual interests and accommodations. Therefore: (a)  A first Short Medium-Term Action Plan for Global Priorities on ECDC is adopted, to be reviewed at the Fifth Ministerial Meeting of the Group of 77, calling for specific action in the priority areas of economic cooperation among developing countries. (b)  Economic cooperation among developing countries is a basic component of their efforts towards the establishment of the New International economic Order (NIEO). (c)  Economic cooperation among developing countries is a matter that chiefly concerns the developing countries, and it should be formulated and implemented by them, at the subregional, regional, interregional and global levels. (d) In this context, the developed countries and the organizations of the United Nations system should give strong support to this process in fulfillment of the different General Assembly and UNCTAD resolutions. 2.  Recognized that the programme of meetings on economic cooperation among developing countries, proposed by the Group of 77, was not agreed on at the eighteenth session of the Trade and Development Board, nor at the second session of the Committee on Economic Cooperation among Developing Countries, due to the opposition of the developed countries, and considering that the United Nations General Assembly, at its recent thirty-third session, instructed the UNCTAD Secretary-General to continue consultations to decide on said programme, and taking into account paragraphs 81 and 82 of the Provisional Report of the Preparatory Committee of the Group of 77; The Ministers recommend that: (a)  the position formally adopted by the Group of 77 be ratified and that the need for this programme be stressed and the intention to execute it be fully expressed, including in particular through the convening by UNCTAD, by the end of 1979, of the following: (i) Regional meetings of subregional and regional economic cooperation groupings to consider action in pursuance of the objectives of the Mexico City Programme on Economic Cooperation among Developing Countries;

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(ii) A meeting of the secretariats of economic cooperation groupings of developing countries on subregional, regional and interregional economic cooperation and integration among developing countries; (iii) Three meetings of governmental experts of developing countries to examine and make proposals, bearing in mind the studies undertaken by the UNCTAD secretariat in compliance with paragraph 2(a) of resolution 1(I) adopted at the first session of the Committee on Economic Cooperation among Developing Countries; (iv) A meeting of secretariats of economic cooperation groupings and multilateral financial institutions of developing countries on inter-country projects. (b)  the developed countries be urged to abandon the negative attitude adopted up to the present and contribute to the implementation of the relevant resolutions of the United Nations General Assembly, thereby taking the first steps towards compliance with the concept of support measures, as stated in UNCTAD resolution 92(IV) and resolution 1(I) of the Committee for Economic Cooperation among Developing Countries. (c)  the role of UNCTAD’s ECDC Committee be strengthened to enable it to be a forum for the negotiations of support measures from developed to developing countries since such measures constitute a basic element of the whole process of economic cooperation among developing countries to which developed countries are expected to make meaningful contributions. (d)  (i) UNCTAD should upon request of developing countries, subregional, regional and interregional economic groupings of developing countries assist in preparing specific proposals for support measures as need arises; (ii) developed countries respond positively to such requests when they are made; (iii) any assistance extended on a subregional, regional or interregional basis should be in addition to assistance extended to individual developing countries. 3.  The Ministers strongly recommend that the United Nations system, in particular UNCTAD and regional economic commissions, should strengthen and increase its assistance to economic cooperation among developing countries. In this regard, the UNDP should intensify its assistance to subregional, regional and interregional projects, taking also into account the role foreseen for UNDP by the World Conference on Technical Cooperation among Developing Countries. To this end, adequate resources should be made available. 4.  Specifically the Ministers recommend that: (a)  measures should be taken by the United Nations to intensify the role of UNCTAD within the United Nations system in the promotion of economic cooperation among developing countries and its coordination and cooperation with other members of the United Nations system, as well as to strengthen its working arrangements with UNDP, with a view to enhancing joint operational strategies, taking into account the strong correlation between economic and technical cooperation among developing countries; (b)  as a matter of priority, each developing country should consider drawing up, with the assistance of UNCTAD and other international organizations concerned, a full national inventory of its own requirements and resources as a basis for securing appropriate support measures from developed countries; (c)  developing countries should support, through individual or collective endorsement, project proposals addressed to UNDP in support of economic cooperation among developing countries. To this effect they may wish to consider special contributions, including as appropriate earmarking of a proportion of their own UNDP Indicative Planning Figures (IPF); (d)  acknowledging that economic cooperation among developing countries is an important element of the new International Economic Order and, as such is based on interdependence,

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common interest and cooperation among all States, developing countries should invite, through the United Nations development system, contributions from developed countries for the implementation of economic cooperation among developing countries, projects whose objectives are of interest to both categories of countries; (e)  developing countries should urge the United Nations system, and particularly UNDP, to devote increasing the IPF resources to result-oriented activities in support of economic cooperation among developing countries, with special stress on the need for substantially increasing UNDP’s resources for subregional, regional and interregional projects in this field; (f)  developing countries should request UNCTAD to intensify both its role within the United Nations system in the promotion of economic cooperation among developing countries and its coordination and cooperation among developing countries and cooperation with other members of the United Nations system, as well as to strengthen its working arrangements with UNDP, with a view to joint operational strategies given the strong correlation between economic and technical cooperation among developing countries; (g)  the restructuring process of the United Nations system should ensure that UNCTAD is strengthened and provided with all the necessary human and financial means to effectively carry out its tasks on economic cooperation among developing countries, which have increased significantly without any meaningful additions to its resources nor appropriate changes in its institutional set-up that could enhance its role as a lead agency in the establishment of the New International Economic Order; (h) the UNCTAD secretariat, in carrying out its tasks on Economic Cooperation among Developing Countries, should work in close consultation and cooperation with the regional economic commissions since they have a vital role in promoting and implementing subregional, regional and interregional economic cooperation among developing countries.

Technical cooperation and economic cooperation among developing countries 5.  The Ministers recall that technical cooperation among developing countries as conceived by the developing countries on several previous occasions and by the United Nations Conference on Technical Cooperation among Developing Countries, is a fundamental instrument in promoting economic cooperation among developing countries. They consider that: (i)  prompt and effective implementation of the Buenos Aires Plan of Action and resolutions approved by the above-mentioned Conference is required; (ii)  among the many important provisions contained in the Buenos Aires Action Plan in this context is the need to promote in the developing countries national research and training centers of multinational scope in the developing countries. This is also the subjects of one of the resolutions adopted by the Conference; (iii)  in support of the implementation of the Plan of Action, the importance of the contribution of developed countries and international organizations to the increased national and collective self-reliance of developing countries, needs to be stressed, in order to implement, inter alia, the recommendations relating to agriculture and industry.

Item 19 of the provisional agenda for UNCTAD V Institutional issues 1.  The Group of 77 recognizes the evolving role of UNCTAD as a major forum for the evaluation and review of world economic developments in the extent of its mandate, for initiating discussions on new concepts and policies and even more for negotiations on a wide range of issues

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relevant to international economic relations and, in this context, the need to enhance its capacity to perform its evolving functions effectively. 2.  UNCTAD needs to be strengthened, especially in the following aspects: (a)  Clear recognition of UNCTAD as the principal instrument of the General Assembly for international economic negotiations on international trade and development, particularly in the context of negotiations on the establishment of the New International Economic Order, and reaffirmation of this role; (b)  Reaffirmation of UNCTAD’s role as the major instrument for review and follow-up of international economic developments; (c)  The need to strengthen coordination between UNCTAD and other agencies and organizations of the United Nations system in order to enable UNCTAD to perform its role effectively; (d)  Urgent need to provide UNCTAD with sufficient resources and special flexibility in its method of operations, so as to enable it to perform its role and functions effectively, taking into account the logistic problems associated with the increased workload of UNCTAD; (e)  The need for further adapting the permanent intergovernmental machinery of UNCTAD to the new emphasis in the role of UNCTAD, in particular its increased activity as a negotiating forum, while enabling it to continue to perform the full range of tasks with which it has been entrusted; (f)  The need to maintain and strengthen UNCTAD’s support to the developing countries in the field of trade and development, particularly in the context of the negotiations for the establishment of the New International Economic Order. 3.  The increasing activities and functions of UNCTAD also demand, particularly in the present context, their harmonization, rationalization and coordination in a systematic manner so as to maximize its effectiveness. Consequently, it is recommended, inter alia, that: (a) Ways and means should be sought of grouping the specific issues and subjects to be addressed by special expert group meetings, in order to minimize the number of sub-meetings and to encourage the attendance of high-level governments experts. Meetings of experts appointed in their personal capacity should be reduced in number; (b)  Rather than have a whole Committee meet in routine formal sessions unless there are sufficiently important and large number of issues to be discussed, special sub-groups could be convened to deal with a specific number or issues within the competence of the Committee; (c)  The practice by which each Committee, group or sub-group decides on when and how to meet should be reviewed by the Board with a view to ensuring minimum frequent disturbances in the schedule of meetings; (d)  An appropriate mechanism to provide policy direction and coordination on certain issues and to harmonize and integrate activities of the secretariat on these issues; (e)  Urgent need that documents in all working languages be made available at an appropriate time in accordance with the relevant rules. 4.  The strengthening of UNCTAD should be seen as an equally important element in the process of completing the restructuring of the social and economic sectors of the United Nations.

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5.  Fifth Ministerial Meeting of the Group of 77, Buenos Aires, 5–9 April 1983, in preparation for UNCTAD VI, Belgrade, 6 June–2 July 1983 a.  The Buenos Aires Platform Contents I.  Buenos Aires Message for Dialogue and Consensus II.  Ministerial declaration III.  The world economic situation with special emphasis on development: approaches to the current world economic crisis and perspectives for the 1980s, including issues, policies and measure relevant to the attainment of a new international economic order (item 8 of the provisional agenda for the sixth session of the United Nations Conference on Trade and Development—Declaration by the Fifth Ministerial Meeting of the Group of 77) IV.  Action on items 8 to 13 of the provisional agenda for the sixth session of the United Nations Conference on trade and Development Item 8: The world economic situation Resolution on the consultation mechanism Item 9: Commodity issues 1. Resolution on the Common Fund for Commodities 2. Resolution on the implementation of the Integrated Programme for Commodities in the areas of processing, marketing, transportation and distribution 3. Resolution on compensatory financing of shortfalls in export earnings 4. Resolution on the implementation of the Integrated Programme for Commodities in the areas of stabilization and strengthening of commodity markets Item 10: Issues in the areas of international trade in goods and services Resolution on international trade in goods and services Item 11: Financial and monetary issues A. Position paper by the Group of 77 on the financial and monetary issues B. Resolution 1. Resolution on official development assistance 2. Resolution on multilateral financial institutions and international monetary reform 3. Resolution on external debt Item 12:  Substantial New Programme of Action for the 1980s for the Least Developed Countries Resolution on progress in the implementation of the Substantial New Programme of Action for the 1980s for the Least Developed Countries Item 13 (a): Technology Resolution on technology

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Item 13 (b): Shipping 1. Resolution on shipping 2. Resolution on the entry into force of the United Nations Convention on a Code of Conduct for Liner Conferences Item 13 (c): Land-locked and island developing countries 1. Resolution on land-locked developing countries 2. Resolution on island developing countries Item 13(d): Trade relations among countries having different economic and social systems and all trade flows resulting therefrom Item 13 (e): Economic cooperation among developing countries Decision on economic cooperation among developing countries Item 13 (f): Assistance to national liberation movements recognized by regional intergovernmental organizations 1. Resolution on assistance to the Palestinian people 2. Resolution on assistance to the peoples of Namibia and South Africa Item 13 (g): Institutional matters Declaration on institutional matters

I.  Buenos Aires Message for Dialogue and Consensus The Ministers responsible for foreign affairs and international economic relations of the member countries of the Group of 77, meeting at Buenos Aires from 5 to 9 April 1983, to arrive at a common diagnosis of the current situation and the prospects for the world economy, to define their negotiating strategy for the sixth session of the United Nations Conference on Trade Development, and to formulate their position, through concrete proposals, on the agenda of the Belgrade conference, Particularly stressing the urgency of launching, at Belgrade, a concreted and sustained programme aimed at the reactivation of the world economy and the accelerated development of the developing countries; Reaffirming the necessity of an integrated set of policies, in the interrelated fields of commodities, trade, money, and finance, and development, encompassing both an immediate measures programme in areas of critical importance to developing countries and the restructuring of the world economic system and relations needed for the establishment of the New International Economic Order, and Underlining the menacing implications of the current economic crisis for international peace and security; 1. Agreed to go to Belgrade in a spirit of understanding and cooperation and to urge their colleagues–responsible for foreign affairs and international economic relations–from advance countries to bring the same attitude to bear on their participation in the Conference. 2.  In pursuance of this call for dialogue and consensus, the Ministers decided, between the Buenos Aires meeting and the Belgrade Conference, to hold intensive consultation on the issues before the Conference. In this connection, they agreed to utilize to the fullest extent possible all opportunities for consultation, particularly the forthcoming twelfth special session of the Trade and Development Board at Geneva, in the last week of April, when the President of the Fifth Ministerial Meeting of the Group of 77 will present to the Board the outcome of the Buenos Aires meeting. They felt that it was important for all member countries to ensure effective representation in the special session.

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3.  The Ministers expect the developed countries to come forward with their reactions to the proposal emanating from the Buenos Aires meeting and to the initiatives and make proposals of their own, in order to ensure, at Belgrade, an effective dialogue, conducive to agreement. With this conviction, the Ministers of the Group of 77 issues this Message in the city of Buenos Aires, Capital of Argentina, on the ninth day of the month of April of nineteen hundred an eighty-three.

II.  MINISTERIAL DECLARATION 1.  The Ministers of the Group of 77, meeting at Buenos Aires from 5 to 9 April 1983 to prepare their common position on the issues to be discussed at the sixth session of the United Nations Conference on Trade and Development and on future activities of economic cooperation among developing countries, have taken the opportunity to renew the state of the world economy and have considered various aspects of its functioning in relation particularly to the development of the developing countries. 2.  The world economy, the Ministers note, is engulfed in the most pervasive and dangerous crisis since the 1930s. This crisis has already imposed incalculable cost on all groups of countries. It has taken a heavy toll of the international trade, monetary and financial systems. Recent indications point to some alleviation of economic stagnation in certain developed countries, but a sustained long-term recovery is nowhere in sight. The essential elements of the crisis remain unabated and the situation is displaying all the symptoms of a global depression. Unless resolved, the crisis will inflict even greater damage on the world economy, with far-reaching implications for peace and stability. 3.  Even though the developing countries bear no responsibility for the crisis, its impact on their economies has been particularly severe. Commodity prices in real terms have slumped to their lowest levels in the past 50 years. Developing country export of manufactured products are being increasingly denied access to the markets of the developed countries. Their balance-of-payments deficit and external debt burden have assumed crushing proportions. Many of them, particularly the least developed, have in recent years experienced a decline in their per capita GDP; most of them had to curtail drastically their investment programmes and imports of essential goods, and for all of them the development prospects for years to come have been impaired. 4.  In the developed countries, production is stagnant or declining. Unemployment has never been higher since the Great Depression. It is being used as a pretext for the intensification of harsh protectionist measures and has raised the spectre of trade warfare among major trading partners. In 1982, for the first time in nearly four decades, the value of world trade declined by 6 per cent. 5.  The Ministers reiterate that the current crisis of the world economy is not simply a cyclical phenomenon. It is primarily a consequence of underlying structural maladjustments in virtually all areas of the international economic system. The resulting global burden of adjustment has fallen disproportionately on the developing countries. More than that, it has eroded the principles and the rules of international cooperation as well as the key institutions, which were established after the Second World War to provide the framework for international economic relations. In any case, these institutions of their modalities of operation have proved to be grossly inadequate to support the development efforts of the developing countries and deal with the crisis. They not only lack the resources necessary for effective action but their concepts and modes of action call for overhaul and reform. Indeed, the present state of affairs comes close to being a non-system. 6.  Accordingly, the Ministers believe that if the present situation is allowed to continue, the resulting economic deterioration and its attendant uncertainties in the global economy will seriously jeopardize the future of humanity. For the developing countries, much of the progress achieved in the past will be undone, with the prospect that further development will be halted for many years.

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7.  Various recent phenomena, the Ministers note, have enhanced the perception of interdependence in the world economy. These phenomena have brought out more clearly than before the growing interlinkages, between national economies, including the unbalanced character of their interdependence. They have also heightened the close interactions that exist between global economic issues in the fields of raw materials, energy, trade, development, money and finance. The interrelationship between current problems of the world economy and their long-term structural aspects have likewise become more apparent. Because of these realities of interdependence, no country, or group of countries, however powerful, is in a position to pull the world economy out of the present crisis single handedly and put it on a healthy course of recovery, growth and development. Similarly, it has become highly difficult to find and effectively to apply solutions to problems in particular sectors of the world economy without full regard to their consistency with developments and policies in other key areas. For the same reasons, the present world economy will be less responsive to change if proposed solutions of the problems fail to take into consideration the structural issues of international economic relations. 8.  In view of the Ministers, the global character of the crisis calls for global solutions. The current trend towards bilateralism will prove damaging to all, regardless of how attractive it may seem to those having economic leverage. The resort by some developed countries to coercive and discriminatory economic measures against developing countries for political purposes accentuates instability and arbitrariness in international relations and renders the situation of the developing countries even more difficult. What is required is a new multilateralism transcending the framework designed for an earlier, different era; an approach founded on the systematic concentration of policies involving all groups of countries on a global basis; an approach designed to reverse the deterioration in the world economy, to promote growth, and to effect orderly structural changes in preference to sudden and painful mutations. The international community must work towards new rules and principles of cooperation geared to steady and even international development which each country will respect. 9.  The Ministers note with interest the increasing recognition in developed countries of the need to stimulate non-inflationary growth in their economies. However, the measures envisaged to that end cannot be adequate for a revitalization of the world economy on a sustained basis, unless they take full account of the development imperatives of the developing countries. Recent experience shows that an expansion of the purchasing power and import capacity of developing countries was instrumental in cushioning the severity of the recession in the developed countries. Thus, the developed countries stand to suffer when productive capacities in developing countries are under-utilized, just as the developing countries have been seriously affected by sluggishness in the developed countries. Furthermore, the developing countries have become an increasingly important factor in international financial markets. Their ability to service their external debts, which ultimately depends on export earnings, has become crucial to the stability of the international banking system. 10.  These considerations point to the urgency of launching a concerted and sustained programme by the entire international community aimed at the reactivation of the world economy and the accelerated development of the developing countries. Such an immediate action programme should be launched on the basis of a parallel set of policies encompassing both immediate measures in areas of critical importance to the developing countries and well-planned structural change in the world economy together with far-reaching reforms in the institutional framework of governing international economic relations. Bearing in mind that many of the problems of the developing countries, particularly those of the least developed among them, brook no delay, these measures should be set in motion at the sixth session of the conference and at other forthcoming conferences and meetings of the United Nations system. Their objective should be to reactivate the world economy and to promote sustained development through interrelated measures, in areas such as food, development of energy resources, balance-of-payments support, financial flows, trade and raw materials.

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11.  The Ministers reiterate their firm commitment to the immediate launching of the global negotiations relating to international economic cooperation for development envisaged in United Nations General Assembly resolution 34/138 of 14 December 1979. They continue to believe that these negotiations will provide the most promising response to the need for a simultaneous, coherent and integrated treatment of the major issues of international economic cooperation. The Ministers accordingly welcome the decision of the seventh Conference of Heads of State or Government of Non-Aligned Countries, held at New Delhi from 7 to 12 March 1983, urging all countries to make every effort to overcome the remaining hurdles to the launching of global negotiations by providing a fresh political impetus for this purpose. They also welcome the decision of that Conference that in the mean time, concurrent efforts be made immediately to secure the implementation of a Programme of Immediate Measures in favour of developing countries in areas of critical importance to them, including the convening of an international conference on money and finance for development, with universal participation, to become an integral part of the global negotiations under the aegis of the United Nations, when launched1. In this respect, the Ministers request the Group of 77 to take the necessary initiatives without delay in the organizations concerned of the United Nations system. 12.  As an integral part of their effort to promote a restructuring of international economic relations, and to establish the New International Economic Order, the developing countries are determined to expand and deepen their mutual cooperation based on collective self-reliance. The Ministers accordingly reiterate the full support for the activities under way with regard to economic cooperation among developing countries and note with satisfaction the progress made in the implementation of the Arusha Programme of Collective Self-Reliance and Framework for Negotiations2 and the Caracas programme of Action.3 In their view, the intensification of such cooperation would strengthen the material basis of the solidarity of the developing countries and improve their collective capacity to contribute to the prosperity of the world economy. It would also help to place their relationship with the developed countries on a more equitable and balanced footing and, not least, would reduce the vulnerability of their economies to shocks and stresses originating from those countries. The prevailing attitude of the developed countries, together with unfavourable prospects of growth in the world economy, has added new force to the imperative of collective self-reliance. This also requires, more than ever, the resolute pursuit by developing countries of the strengthening of their unity and solidarity to attain the objectives of collective self-reliance and to respond effectively to the latest world economic developments and related international negotiations. For this purpose, urgent consultations among developing countries should be held at any level deemed appropriate. In any event, the case for economic cooperation among developing countries rests on the necessity for the New International Economic Order, in which developing countries will, among other things, rely to a greater extent on themselves and on one another and enhance their capacity for self-sustained development. 13.  Questions relating to the world economy, to international economic relations and to development are directly related to those of peace and stability. To treat them separately will prove damaging for world security, not only in military and strategic terms but also because of the grave economic consequences, national and international, that it will generate. A worldwide relaxation of tensions, the halting of the arms race, and effective disarmament measures, which would release sorely needed resources for development, are vital necessities for global economic development. 1 2 3

See the final documents of the Conference, reproduced in A/38/132-S/15675 and Corr.1 and 2, annex, part II, New Delhi Message, and part III, Economic Declaration. Adopted by the Fourth Ministerial Meeting of the Group of 77, held at Arusha, United Republic of Tanzania, from 6 to 16 February 1979; see Proceedings, Fifth Session, vol. I, annex VI. See ‘Report of the High-Level Conference on Economic Cooperation among Developing Countries’, Caracas, 13-19 May 1981 (A/36/333 and Corr.1).

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14.  The Ministers are convinced that these complex problems of our time call for a stronger and more vibrant United Nations system, together with a determination to put it to more efficient use. The United Nations system must not, in the face of global crisis, be marginalized or diverted from its central purposes. At the present critical juncture in international economic cooperation, it must not be allowed to weaken through lack of political support for financial underpinning for its operational and other essential activities for development. The need is more compelling than ever to breathe new life into the United Nations system, to mobilize political will to that end, and to provide it with the necessary means of action. In the present context, the Ministers attach great importance to the major role that UNCTAD can play, through intergovernmental deliberations, consultations and negotiations, along with other organizations, in meeting the challenges already outlined; UNCTAD will in particular have a key contribution to make to the global negotiations when launched. It should also provide a forum for periodic consultation on and an overview of global trends and policies in the interrelated sectors of the world economy, with a view to promoting their mutual consistency. 15.  The Ministers affirm their determination to work with all their vigour towards overcoming the world economic crisis. The dangers this crisis poses to world peace and stability are too great and the costs of inaction too high. All groups of countries must together undertake a concerted effort to that end. They must join to build, in a climate of mutual confidence, a balanced and equitable system of international economic cooperation. Once again, the developing countries, pledge themselves to such a joint effort. They expect the developed countries, particularly the few that have been hesitant to reciprocate their pledge, in a spirit of international solidarity, and with an enlightened vision of the future. The Ministers look to the Belgrade Conference as providing a major opportunity to translating this spirit of mutual cooperation into concrete results.

III.  THE WORLD ECONOMIC SITUATION WITH SPECIAL EMPHASIS ON DEVELOPMENT: APPROACHES TO THE CURRRENT WORLD ECONOMIC CRISIS AND PERSPECTIVES FOR THE 1980s, INCLUDING ISSUES, POLICIES AND MEASURES RELEVANT TO THE ATTAINMENT OF A NEW INTERNATIONAL ECONOMIC ORDER Item 8 of the provisional agenda for the sixth session of the United Nations Conference on Trade and Development Declaration by the Fifth Ministerial Meeting of the Group of 77 1.  The world economy today is in the throes of the deepest crisis since the Great Depression. Since 1980, the crisis has acquired additional dimensions and has displayed all the symptoms of a worldwide depression. 2.  The present economic crisis is truly global in scope and structural in character, threatening the stability and growth prospects of both, developed and developing countries. As the crisis deepens, social tensions and strife are bound to increase and to jeopardize world peace. 3.  The crisis has come to have a devastating impact on the economies of the developing countries, in particular the least developed among them. It has contributed further to the deterioration of the already negative trends in international cooperation and relation. In the developing countries, a major setback to development is now under way and has begun to undermine the past achievements and thus jeopardize the basis for future growth. The crisis is of neither a short-term nor a cyclical character. Its roots lie in fundamental structural imbalances and in the inequities of the international economic system. 4.  The development process in the developing countries has been severely disrupted and in many of them it has virtually come to a halt. Most developing countries have experienced a decline in

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their per capita income during the last two years. The least developed countries recorded no growth at all over their level in 1980 and in some cases the rate of growth was negative. The collapse of commodity prices, rising protectionism in developed countries, increases in the prices of manufactured imports and high interest rates in developed countries combined to create a precarious balance-of-payments situation for most of the developing countries. The net foreign exchange loss suffered by the developing countries during the period since 1980 is estimated at about $200 billion. The external debts of developing countries are estimated to have reached the crushing level of $630 billion at the end of 1982, with a yearly debt-service burden of $130 billion. 5.  Developing countries have had to curtail development activities and essential imports and many of them find themselves on the brink of economic collapse. The negative consequences for economic and social progress are not simply a year or two of retrenchment; such reversals seriously impair their fundamental well being in ways from which it will not be easy to recover in the immediate future. 6.  Among the factors which have contributed to and further aggravated the crisis are inadequate flows of resources, particularly of a concessional nature, global inflation, exchange-rate fluctuations and prolonged monetary instability, high interest rates, the adverse policies pursued by transnational corporations and the chronic technological imbalance between the developed and developing countries. The stringent lending policies of financial institutions, the virtual breakdown of the multilateral trading system, the failure to negotiate international commodity agreements and impediments to the transfer of technology and other resources for development to the developing countries, sometimes for political reasons, have further compounded the situation. 7.  Over the last five years, there has been a sharp decline in the rate of growth of world production, which in 1982 decline in absolute terms. The rates of growth have also been declining since 1976. For the first time in the postwar years, world trade was stagnant in 1981 and declined by 6 per cent in real value in 1982. This meant that the level of world trade in 1982 was approximately the same as in 1979. There was a collapse of commodity prices which in real terms have slumped to the lowest level in the last 50 years. It has been estimated that on third of the recent reduction in the rate of inflation in the developed countries was due to the fall in the prices of commodities exported by the developing countries. 8.  In most developed countries, production was stagnant or declining, unemployment reached the highest level since the Great Depression and other production factors were also lying idle. All this was used as a pretext for further intensification of protectionism and brought about frequent threats of trade was between major trading partners. In recent months, certain economic indicators in some developed countries seem to point towards a partial alleviation of the present economic situation. There are still many uncertainties relating to a possible upturn in the economies of the developed countries. In any case, there cannot be a sustained and lasting recovery of these economies without a restructuring of the present world economic system. 9.  The multilateral economic cooperation, which has already been beset with several difficulties, has been seriously impaired by the present economic crisis. Past commitments have not been fulfilled. There is even a deliberate retreat from internationally agreed obligations, as in the case of the unilateral withdrawal of the preferential treatment to the developing countries. 10.  By means of retrogressive agreements and policies, developed countries are gradually eroding internationally accepted norms for international trade. In addition, the resort of some developed countries to coercive and discriminatory economic measures against developing countries, for political and economic purposes, accentuates the alarming trend towards international disorder and, in some instances, underlines not only the unacceptable concentration of international decision-making power in the hands of the developed countries but also the arbitrary exercise of this power. All attempts made by the developing countries to enter into a serious negotiation with the developed countries on global economic issues have elicited no positive response from the latter.

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11.  The present crisis has dramatically demonstrated the inadequacy and limitations of the existing institutional international framework to deal with the problem of development and to cope with the depth and magnitude of the crisis. From the very beginning, these international financial and trading institutions were designed to serve the interests of the developed world. The efforts to restructure them with a view to making them just and equitable and supportive of the development processes have so far been to no avail. Even the limited improvements towards making them accountable and somewhat sensitive and responsive to the needs of the developing countries are now being called into question and eroded. The functioning of these institutions and their policies are now being subordinated to political and other extraneous considerations not related to the development problems and needs of developing countries. There is a retreat from multilateralism into bilateralism in both the trading system and in matters of financial cooperation. The official components of the international monetary and financial system have been declining in their relative importance and the system is being increasingly privatized. The international economic system which the developed countries fashioned to serve their interests is failing them and is fast on the way to becoming a non-system. 12.  In an increasingly interdependent world, the economic future and political stability of developed and developing countries are interlinked. Peace and development are closely interrelated. Durable peace cannot be assured as long as economic disparities between nations are widening. Stable global development and a viable international economic order require an atmosphere of peace, harmony and cooperation, the halting of the arms race, and the adoption of disarmament measures that will release sorely needed resources for development. 13.  The developing countries have now become a significant partner in the international economy. They absorb more than 30 per cent of the exports of the developed countries. Notwithstanding their low standards of living as compared with the developed countries, the developing countries now account for about 20 per cent of the world output. The rate of investments and savings in these countries surpassed those of the developed countries in the 1970s. In those years, the recession in the developed countries would have been deeper and their unemployment rates higher had it not been for increased imports by the developing countries from them. It should not be difficult to grasp the consequences of the drying up of their import markets. In addition, developing countries have become an increasingly important factor in the international financial markets. 14.  The growing interdependence of the national economies and the close interrelationship of world economic problems in different sectors, particularly in the interrelated fields of raw materials, energy, trade, development and money and finance, are the essential features of the international reality today. Therefore, any isolated or compartmentalized solution in individual sectors or in a group of countries, or measures limited to counter-cyclical policies to cope with the crisis of a structural nature can be neither adequate nor self-sustaining. Current problems of developed countries themselves cannot be resolved by ignoring the development imperatives of the developing countries. The strategy for surmounting the present crisis must recognize fully the new role of the developing countries as full partners in world development. Similarly any set of measures to deal with the present crisis through short-term solutions would not be adequate. The situation calls for a coherent set of international policies that address short-term conjunctural problems as well as longer-term problems of structure. 15.  While the present deteriorating and unpredictable external environment has exposed the limitations of the domestic economic policies of the developing countries, those countries continue in their efforts to formulate and put into effect their own programmes for the revitalization of their economies. 16.  The universal threat that the present crisis poses to the stability and growth of developed and developing countries alike makes it necessary, therefore, for the international community to launch a programme of concerted measures for the reactivation of the global economy and accelerated

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growth and development on sustained basis in developing countries, as well as strengthening international economic cooperation. A universal crisis of the present magnitude calls for a global solution in which all countries must play their part. The reactivation of the growth process in the developing countries cannot be seen as merely in terms of the trickle-down effect of growth in developed countries. What is needed is an integrated set of policies encompassing both immediate measures in areas of critical importance to developing countries and the restructuring of the world economic system and relations needed for the establishment of the New International Economic Order. 17.  In the inter-related fields of commodities, trade, money and finance and development, the Programme of Immediate Measures must incorporate the elements contained in the declarations and resolutions adopted by the Conference on the subjects indicated below and must provide for urgent action on them.4 (a)  Commodities (agenda item 9) (i) Establishment of the Common Fund (resolution 1) (ii) Stabilization and strengthening of commodity markets (resolution 4) (iii) Processing, marketing, transportation and distribution (resolution 2) (iv) Compensatory financing of shortfalls in export earnings (resolution 3) (b)  Trade (agenda item 10) (i) Protectionism and structural adjustment (part A of the resolution) (ii) Generalized system of preferences (part B of the resolution) (iii) International trading system rules of trade (part C of the resolution) (c)  Money and finance (agenda item 11) (i) Official development assistance (resolution 1) (ii) Multilateral financial institutions and international monetary reform (resolution 2) (iii) External debt (resolution 3) (d) Implementation of the Substantial New Programme of Action for the 1980s for the Least Developed Countries (agenda item 12) 18.  The revitalization of the development process in developing countries and the accompanying requirement of structural changes, including fundamental consequential reforms of the institutional framework governing the international economic relations, have to be the centerpiece of any programme for the reactivation of the global economy and the development of developing countries.

IV.  ACTION ON ITEMS 8 TO 13 OF THE PROVISIONAL AGENDA FOR THE SIXTH SESSION OF THE UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT Item 8: The world economic situation Resolution on consultation mechanism The United Nations Conference on Trade and Development, Recalling General Assembly resolution 1995 (XIX) of 30 December 1964 on the establishment of UNCTAD as an organ of the General Assembly, and Conference resolutions 90(IV) of 30 May 1976 and 114 (V) of 3 June 1979 on institutional issues,

4

For the declaration and resolutions adopted by the Group of 77, see section IV below.

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Conscious of the growing perception of interdependence among national economies and mutuality of interests, Considering the interrelationship of issues in the different areas of the world economy, Recognizing the urgent need for keeping the world economic situation constantly under review and the need for adopting and implementing coherent measures in those areas, Convinced that to this end an effective machinery for consultation needs to be devised so as to promote mutually consistent and supportive policies, 1.  Decides that the Trade and Development Board should meet regularly at ministerial level once every two years in order to hold consultations on: (a)  The problems and policies in the fields of commodities, trade, money and finance, and related areas of development; (b)  The principles, rules and practices governing international economic relations; (c)  The impact of development in the above areas, on the economics of all the developing countries, particularly the least developed countries among them; 2.  Decides to convene the Trade and Development Board at ministerial level in the second half of 1984 to undertake the first such review and consultation, and in particular to monitor the progress in the implementation of the decisions taken at the sixth session of the Conference; 3.  Requests the Secretary-General of UNCTAD, in the light of foregoing, to submit to the Trade and Development Board, at that ministerial level session, a report on the latest developments in the world economic situation, including the evolution of the principles and rules governing international economic relations, and a report on the progress in the implementation of the decisions taken at the sixth session of the Conference.

Item 9: Commodity issues 1.  Resolution on the Common Fund for Commodities The United Nations Conference on Trade and Development, Recalling paragraph 2 of General Assembly resolution 35/60 of 5 December 1980, and General Assembly resolutions 36/143 of 16 December 1981 and 37/211 of 20 December 1982 on the signature and ratification of the Agreements Establishing the Common Fund for Commodities, Recalling also General Assembly resolution 37/133 of 17 December 1982 on identification of the least developed among the developing countries, Reaffirming the importance of the Common Fund as a major element of the Integrated programme for commodities, Bearing in mind that the period for the fulfillment of the requirements for entry into force of the Agreement Establishing the Common Fund for commodities5 has been extended until 30 September 1983, pursuant to article 57, paragraph 1, of that Agreement, Taking note of the progress reports of the Secretary General of UNCTAD on the signature and ratification of the Agreement6 Expressing concern at the slow pace of progress in the signature and ratification of the Agreement, Welcoming the pledges already announced for voluntary contributions to the Second Account of the Common Fund,

5 6

United Nations publication, Sales No.E.81.II.D.8 and corrigendum. TD/287 and TD/321.

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Noting with appreciation the offer made by the States members of the Organization of the Petroleum Exporting Countries to pay the full capital subscriptions of the least developed countries and a number of other developing countries concerned, Reaffirming that financing of national projects and investments in the field of commodities through the Second Account are within the competence of the Common Fund, Emphasizing the importance of the early entry into force of the Agreement and of the early beginning of operations of the Common Fund. 1.  Reaffirms its support for the Common Fund for Commodities and for its entry into force without any further delay; 2.  Expresses its appreciation of the prompt action taken by those States Members, which have already ratified the Agreement; 3.  Urges all States that have not yet done so to sign and ratify the Agreement without any further delay; 4. Requests that a target date of 1 January 1984 should be set for the commencement of the operations of the Common Fund; 5.  Requests the Secretary-General of UNCTAD to explore ways and means to provide the three newly designated least developed countries and other developing countries that are unable to pay their capital subscriptions to the Common Fund, which do not figure on the list of the developing countries beneficiaries of the offer of the Organizations of the Petroleum Exporting Countries, with the necessary financial resources for the payment of their full capital subscriptions to the Common Fund; 6.  Urges all countries, particularly developed countries, which have not yet announced specific pledges of contributions to the Second Account of the Common Fund to do so at an early date with a view to meeting the agreed target for voluntary contributions; 7.  Requests the Secretary-General of UNCTAD to submit, in conformity with paragraph 7 of General Assembly resolution 37/211, report to the General Assembly at its thirty-eighth session on the progress made towards the entry into force of the Agreement; 8.  Requests the Preparatory Commission for bringing the Common Fund for Commodities into operation to finalize without delay its work on administrative, legal, procedural, operational and financial matters.

2.  Resolution on the implementation of the Integrated Programme for Commodities in the areas of processing, marketing, transportation and distribution The United Nations Conference on Trade and Development, Recalling its resolutions 93(IV) of 30 May 1976 and 124 (V) of 3 June 1979 on the Integrated Programme for Commodities, Bearing in mind the reports of the permanent Sub-Committee of the Committee on Commodities on its second and third session,7 resolution 18(IX) of 7 October 1980 and agreed conclusions 19(S-I) of 12 February 1982 of the Committee on Commodities and the report of the Committee on Commodities on its tenth session,8 Convinced that the studies on processing, marketing, transportation and distribution undertaken by the UNCTAD secretariat on most of the commodities listed in Conference resolution 93 7 8

TD/B/C.1/230 and TD/B/C.1/246. Official Records of the Trade and Development Board, Twenty-sixth Session, Supplement No.4 (TD/B/944).

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(IV) provide an adequate basis for moving to negotiation of frameworks of international cooperation in this field, Taking note of the report by the UNCTAD secretariat submitted to the Conference,9 Expressing concern at the increasingly prejudicial role played by transnational corporations restricting the participation by developing countries in the processing, marketing, transportation and distribution of their commodities, Noting with concern that the efforts of the developing countries to increase their participation are being continually obstructed by the protectionist barriers imposed by developed countries on exports of processed and semi-processed commodities by developing countries and by the lack of capital and technical know-how. 1.  Reaffirms the need for greater participation by developing countries in the economy of their commodities through measures to increase local processing as well as greater participation by those countries in the marketing, transportation and distribution of their commodity exports; 2.  Urges the developed countries to abstain from supplying new restrictive measures, to eliminate all remaining customs duties and internal taxes levied on commodities imported from developing countries as well as all other prohibitions, restrictions and subsidies, and in particular to eliminate immediately all forms of tariff escalation affecting exports of semi-processed and processed commodities from developing countries; 3.  Requests the Secretary-General of UNCTAD to convene, not later than December 1984, a negotiating conference open to all members of UNCTAD on general frameworks of international cooperation in the fields of processing, marketing, transportation and distribution of commodity exports of developing countries aimed at promoting and assuring their greater participation in those areas, incorporating, inter alia: (a)  The necessary arrangements for improving financial and technical assistance to developing countries in this field, including the possibility of the establishment of a commodity trade institute; (b)  Increased financing opportunities for developing countries, particularly the least developed among them, to assist them in preparing feasible projects and mobilizing the necessary capital; (c)  Establishment of a special investment financing facility for the processing of minerals and metals; 4.  Requests the Committee on Commodities to complete the necessary preparatory work prior to the conference referred to above; 5.  Requests further the Secretary-General of UNCTAD to report to the Trade and Development Board at its twenty-ninth session, through the Committee on Commodities, on the progress of implementation of the above measures.

3.  Resolution on compensatory financing of shortfalls in export earnings The United Nations Conference on Trade and Development, Recalling its resolution 93(IV) of 30 May 1976 on the Integrated Programme for Commodities and particularly section I, paragraph 2 and section III, paragraph 2 (f) thereof, Recalling also its resolution 125 (V), of 3 June 1979, on a complementary facility for commodity-related shortfalls in export earnings, Reaffirming the need to protect developing countries from excessive fluctuations in export earnings, especially from commodities, 9

TD/B/C.1/230 and TD/B/C.1/246.

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Reaffirming further the need for measures to improve and enlarge compensatory financing facilities for stabilization consistent with a growing trend of export earnings of developing countries, Taking note of the relevant studies prepared by the UNCTAD secretariat10 and of the consideration of those issues in other international forums, Taking note also of agreed conclusions 19 (S-I) of 12 February 1982 of the Committee on Commodities and of the report of the Committee on Commodities on its tenth session,11 1.  Requests the Secretary-General of UNCTAD to convene, not later than December 1983, a preparatory meeting for a negotiating conference on a complementary facility for commodity-related shortfalls in export earnings concerning, inter alia: (a)  The financing needs of the facility and its structure; (b)  Sources of finance; (c)  Operational rules and modalities; (d)  Schedule of negotiations; 2.  Further requests the Secretary-General of UNCTAD, in the light of progress made in the preparatory meeting, to convene a negotiating conference open to all members of UNCTAD on the facility referred to above; 3.  Invites member countries to transmit to the Secretary-General of UNCTAD, prior to 30 September 1983, any proposals they may have concerning the above and related issues; 4.  Decides that immediate relief be provided to developing countries, pending the completion of the above negotiation, and to this end: (a)  Urges the International Monetary Fund to undertake substantial expansion and liberalization of its Compensatory Financing Facility so as to provide developing countries with prompt, full and automatic compensations of their shortfalls, without imposing conditionality; (b)  Further urges the International Monetary Fund to provide special arrangements for the least developed countries within its Compensatory Financing Facility, including total subsidization of interest charges and the establishment of a longer repayment period, in addition to the maximum facilities under the improvements mentioned in subparagraph (a) above; (c)  Urges the socialist countries of Eastern Europe to create, through the international Investment Bank or the International Bank for Economic Cooperation, a special fund that will guarantee an adequate annual supply of transferable roubles for the developing countries to compensate for shortfalls in earnings of developing countries from commodity exports to those countries.

4.  Resolution on the implementation of the Integrated Programme for Commodities in the area of stabilization and strengthening of commodity markets The United Nations Conference on Trade and Development, Recalling its resolution 93(IV) of 30 May 1976 and 124 (V) of 3 June 1979 on the Integrated Programme for Commodities, Recalling further its resolution 126 (V)  of June 1979 on the United Nations Conference to Negotiate an International Arrangement to Replace the International Wheat Agreement, 1971, as extended,

10 11

TD/B/C.1/221, TD/B/C.1/222, TD/B/C.1/234 and TD/B/C.1/237. Official Records of the Trade and Development Board, Twenty-sixth Session, Supplement No.4 (TD/B/944).

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Deeply concerned at the dramatic collapse in commodity prices since the end of 1980 and at its serious repercussions on the prospects for the economic development of developing countries, Concerned at the little progress made so far in the preparatory meetings and negotiations on most of the commodities under he Integrated Programme for Commodities seven years after its adoption, Convinced of the importance of establishing multidimensional commodity agreements containing provisions on both price stabilization and developmental measures, Noting with concern that some renegotiated and newly negotiated international commodity agreements do not contain sufficiently effective measures for price stabilization, Concerned that commodity markets remain largely unregulated and vulnerable to the effects of sudden shifts in demand and supply, causing disproportionately large fluctuations in prices and earnings of developing countries, Reaffirming the need for a greater sense of urgency in the implementation of the Integrated Programme for Commodities, Noting the work already accomplished in UNCTAD within the context of the Integrated Programme for Commodities with regard to the preparation of draft project proposals on a number of commodities of particular export interest to developing countries, Recognizing that activities aimed at coordinating the positions of producing countries in all international negotiations on commodities constitute an integral part of negotiations under the Integrated Programme for Commodities, Taking note of the report by the UNCTAD secretariat submitted to the Conference,12 1.  Urges Governments, particularly those whose attitude has prevented international action under the Integrated Programme for Commodities, to reaffirm their commitments in adopting resolution 93 (IV) on the Programme, and in particular to reiterate their firm commitment to all the objectives and all the measures contained therein; 2.  Urges producers and consumers to adopt measures that will achieve stable conditions in commodity markets in accordance with the objectives of the Integrated Programme for Commodities, keeping in mind the overall balance of benefits they are likely to derive from the Programme as a whole; 3.  Urges the developed countries to refrain from adopting internal policies that could destabilize commodity markets and discourage efficient producers; 4.  Requests the Secretary-General of UNCTAD, in consultation with interested countries, to convene at an early date negotiating conferences on commodities on which preparatory work has reached an advanced stage, such as cotton, copper, tea and hard fibres, with a view to the early conclusion of international multidimensional agreements for these commodities; 5.  Requests that the preparatory work on the other commodities be finalized expeditiously, with a view to proceeding to the stage of negotiations; 6.  Reaffirms the indicative character of the list of commodities covered by resolution 93(IV); 7.  Decides to include hides and skins and leather in the indicative list of commodities contained in resolution 93 (IV); 8.  Agrees that, without prejudice to continued efforts to conclude such multidimensional agreements, immediate action on an ad hoc basis among interested countries be taken to negotiate provisional agreements or arrangements on a temporary basis as appropriate, on commodities, of particular export interest to developing countries that are not covered by international 12

TD/273 and Corr.1 and 2, reproduced in volume III.

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commodity agreements or arrangements, in order to avoid further deterioration on their prices and to improve their short-term export earnings; 9.  Requests the Secretary-General of UNCTAD to explore potential sources of finance for such interim agreements or arrangements, including borrowing arrangements through the Common Fund, the liberalized buffer stock financing facility of the International Monetary Fund, the structural adjustment loans of the World Bank and the regional development banks as well as trade levies, and to report regularly thereon to the Trade and Development Board through the Committee on Commodities; 10.  Reaffirms that commodity agreements, as independent international instruments, can only be revised according to their respective provisions and by member countries in their own forums; 11.  Requests the Trade and Development Board to convene a special session of the Committee on Commodities to examine, in close cooperation with commodity councils concerned, the role of existing international commodity agreements negotiated or renegotiated within UNCTAD in attaining the objectives of the Integrated Programme for Commodities; 12.  Requests all producer and consumer countries to participate actively in the negotiation of the new International Sugar Agreement, so as to arrive at effective undertaking allowing the world market in this product to be efficiently regulated; 13.  Urges all Governments to resume immediately the negotiations within the United Nations Conference to Negotiate an International Arrangement to Replace the International Wheat Agreement, 1971, as extended, in order to conclude as soon as possible, but not later than 30 June 1984, as new International Wheat Agreement containing effective undertaking in order to ensure the efficient operation of the international market; 14.  Requests that resources made available as grants through the United Nations Development Programme and other multilateral or bilateral sources for the financing of the preparation of summary project proposals on commodities such as groundnuts and products, coconuts and products, tropical timber, meat, bananas, hard fibres, jute and natural rubber, which have been already approved by intergovernmental meetings under the Integrated Programme for Commodities; 15.  Request further that additional resources be made available as grants through the United Nations Development Programme and other multilateral or bilateral channels, for the financing of activities (such as meetings among producing countries) aimed at coordinating the positions of producing countries in all international negotiations on commodities; 16.  Requests the Committee on Commodities, on the basis of its decision 4(V) of 17 July 1970, to adopt a set of more detailed and concrete guidelines or a code of conduct for national stockpile operations which disrupt international markets, including the establishment of appropriate arrangements within UNCTAD for international surveillance of such operations.

Item 10: Issues in the areas of international Trade in good and services Resolution on international trade in goods and services A.  Protectionism and structural adjustment The United Nations Conference on Trade and Development, Considering that international trade plays an important role in developing countries, that it has great significance in promoting the economic and social growth in these countries, and that export earnings are an indispensable condition for honouring their international financial commitments and maintaining their purchasing power, Recognizing the need to adopt effective policy measures to promote the economic growth and development of developing countries, particularly countries where the level of industrialization

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is very low bearing in mind that the operations should be carried out within the framework of a dynamic international division of labour, with a view to attaining, inter alia, the target of 25 per cent of world industrial production, as established in the Declaration of Lima,13 and with the aim of increasing the share of developing countries in world trade in manufactured and semi-manufactured industrial products, Stressing the links between the promotion of industrial production and international trade as well as between international trade and the solution of balance-of-payments problems, including the indebtedness of developing countries, these general political measures should be addressed to achieving the effective transfer of technology and real development resources to developing countries, as well as their increased participation in the marketing and transport of their export products, Recognizing the need to ensure improved access to the markets of the developed countries for the exports of developing countries, and that any sustained expansion of developing countries exports is dependent upon their achieving a greater degree of security of access to these markets, Recalling the body of relevant resolutions of the General Assembly of the United Nations and of UNCTAD on the International Development Strategy for the Third United Nations Development Decade, and on protectionism and structural adjustment, Considering the interaction between several sectors of the world economy and the relationships prevailing among groups of countries, as well as the importance, for the expansion of the world economy in general, of economic growth and development in developing countries, Agrees that:

Protectionism (a)  The developed countries shall abstain from imposing new restrictions or other protectionism measures against any exports of developing countries, and from taking unilateral decisions, which adversely affect the trade of developing countries; (b)  The developed countries shall immediately eliminate all measures, adversely affecting the trade of developing countries, incompatible with their international commitments or which circumvent such commitments. They shall also refrain from applying trade restrictions, blockades, embargoes and other economic sanctions incompatible with the provisions of the Charter of the United Nations, against developing countries as a form of political coercion; (c)  The developed countries shall also eliminate all other measures, which they are applying to protect their domestic industries, which adversely affect the trade of developing countries. To this end, developed countries shall establish specific time-bound programmes for the elimination of all protectionist measures, including subsides, which prejudice the trading opportunities of developing countries. Any action programmes would take into account the relevant interests of those developing countries presently enjoying special advantages and meet the need for finding ways and means for protecting their interests; (d)  The developed countries shall effectively fulfil their commitments in the field of international trade, especially that of providing differential and more favourable treatment to developing countries; (e)  The Trade and Development Board shall examine these programmes to determine whether they are adequate and effective. The Board shall monitor the implementation of these programmes. Wherever necessary, it may recommend additional specific measures relating to the

13 Declaration and Plan of Action on Industrial Development and Cooperation adopted by the Second General Conference of UNIDO, held at Lima, Peru, from 12 to 26 March 1975 (ID/CONF.3/ chap. IV).

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eliminating of protectionism in developed countries and ensuring that no new protectionist measure is taken in developed countries. The ongoing work of the Board regarding preparation of the detailed inventory of non-tariff measures affecting international trade should be continued, as it is supportive of this process; (f)  In order to avoid interruption or reduction in, or discouragement of, the trade flows of developing countries, the developed countries should: (i)  Suspend ongoing investigations in cases of alleged subsidies or dumping; (ii)  Suspend the application of countervailing and anti-dumping duties and other measures of a statutory or procedural nature against the exports of developing countries; (iii)  Review their existing trade legislation, regulations and procedures with the objective of removing those features, which lead to coercion of developing countries or harassment of their trade. (g)  Negotiations shall be initiated immediately, with the full participation of all interested countries, on an improved multilateral safeguard system, based on the principles of the General Agreement on Tariffs and Trade, and ensuring that the rights and interests of all developing countries are duly protected and respected. In this regard, they shall suppress all selective or discriminatory practices, which adversely affect the developing countries. In any improved safeguard system, priority should be given to the use of positive adjustment assistance measures instead of the resort to restrictive trade measures. Safeguard measures should only be applied in exceptional circumstances and be automatically and simultaneously accompanied by additional adjustment measures of a more comprehensive nature. The Trade and Development Board should follow this process of negotiation closely and ensure that the interests of the developing countries are effectively protected; (h)  The developed countries should devise appropriate means to eliminate, or reduce significantly, internal taxes levied by them on products imported from developing countries, in particular from the least developed among them. The Trade and Development Board should monitor the implementation of this process closely; (i)  The special problems of the least developed countries should be kept in view while undertaking the tasks mentioned above;

Structural adjustment (j)  In order to ensure an equitable international division of labour, urgent measures shall be taken, in conformity with the objectives of the Lima Declaration, to provide increased opportunities for production and trade of developing countries in areas where they posses existing or future possibilities, including through international subcontracting arrangements; (k)  The developed countries should work out specific programmes of action for specific duration to facilitate structural adjustment in those economic sectors in which they have applied protectionists measures and/or subsidies during long periods or on repeated occasions, adversely affecting the trade interests of developing countries; (l)  To this end, the Trade and Development Board should undertake the following: (i)  Act as a mechanism for cooperation with respect to policies relating to `production and trade and, in this context, devise principles governing adjustment assistance in particular to developing countries; (ii)  With a view to enlarging the export markets of the developing countries in the field of agricultural products, formulate, in cooperation with competent international organizations, universally acceptable principles that take duly into account the interests of the developing countries in the production and trade in agricultural products;

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(iii)  In order to accelerate restructuring in develop countries in accordance with Conference resolution 131 (V) of 3 June 1979, and to make possible a transfer of industries of real benefit to developing countries in sectors where they posses a comparative advantage, request the secretariats of UNCTAD and the United Nations Industrial Development Organization, in cooperation with other competent international organizations, to elaborate a plan of action on industrial cooperation arrangements between developed countries and developing countries; (iv)  Request the UNCTAD secretariat, in cooperation with other competent international organizations, notably the United Nations Industrial Development Organization, the Food and Agriculture Organizations of the United Nations and the World Food Council, to undertake an in-depth study or agro-industrial production and the consequences of concentration of economic power in that sector on the trade and development of developing countries, and propose measures necessary to strengthen the participation of these countries in production and trade in agro-industrial products; (v) Formulate policies to assist developing countries in promoting and diversifying their exports; (vi)  Adopt measures designed to assist the developing countries establishing facilities for export finance and insurance; (vii) Devise appropriate means to provide guarantees concerning the quality and performance of imported capital goods and technology by developing countries; (m)  The sessional committee of the Trade and Development Board14 should review these specific programmes of structural adjustment in order to determine their adequacy and effectiveness, and make appropriate recommendations if necessary. The Board should monitor closely the implementation of these programmes; (n)  The special problems of the least developed countries should be kept in view while undertaking the tasks mentioned above.

B.  Generalized system of preferences The United Nations Conference on Trade and Development, Considering the importance of the generalized system of preferences for the expansion of trade of developing countries, and keeping in view the problems being faced by developing countries in the operation of these programmes, Decides as follows: (a)  The developed countries shall significantly improve the generalized system of preferences, broaden its scope of application and incorporate a greater degree of flexibility into the related procedures. With respect to product coverage, special attention should be given to products not adequately covered by existing schemes in both the agricultural and industrial sectors and to the products of interest to the least developed countries. The relevant interests of those developing countries enjoying special advantages and the need for finding ways and means of protecting their interests should be taken into account. Prior to any modification of the schemes, the preference-granting countries should hold consultations with developing countries; (b)  More stability and security should be introduced into the generalized system of preferences schemes, their non-discriminatory nature should be ensured and the existing benefits to the developing countries should be preserved, avoiding the introduction into the system of 14

Established by Trade and Development Board resolution 226 (XXII) of 20 March 1981.

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discriminatory measures such as those applied under the concept of graduation or its use as an instrument for exerting political or economic pressure; (c)  A set of multilateral guidelines should be established by the Trade and Development Board for the operation of the generalized system of preferences with a view to ensuring its stability and improving its effectiveness. The rules of origin should be liberalized and harmonized and their operation should be simplified. The rules of cumulative origin should also be improved; (d)  The United Nations Development Programme should continue to support the UNCTAD/ UNDP technical assistance programme beyond 1983 in order to permit developing countries to benefit adequately from the schemes; (e)  A study programme should be established by the Trade and Development Board concerning other laws, regulations and procedures of the preference-giving countries, which affect the exports of developing countries; (f)  The special problems of the least developed countries should be kept in view while undertaking the tasks mentioned above.

C.  International trading system rules and principles of trade The United Nations Conference on Trade and Development, Recognizing that the present rules and principles of the trading system are not adequate, equitable, efficient or effective, Decides: (a)  That the Trade and Development Board should study in depth the rules and principles in force in the international trading system with a view to establishing a new set of rules and principles leading to a system of universal character; (b)  That the special problems of the least developed countries should be kept in view while undertaking the tasks mentioned above.

D. Services The United Nations Conference on Trade and Development, Considering the importance of activities in the services sector, with the objectives of enhancing the activities in this sector in the developing countries and bringing about a significant increase in the earnings in this sector, and the need to avoid the negative effects on developing countries of the present structures in international transactions in services, Decides as follows: (a)  The UNCTAD secretariat should carry out studies to identify and establish priorities regarding services of particular importance to developing countries and to devise programmes which would enable the developing countries to have greater participation in international trade in services. These studies should also cover those services, which do not fall within the specific competence of international organizations; (b) Those studies by the UNCTAD secretariat should also make recommendations with respect to establishing mechanisms for multilateral cooperation in the field of services, which may be of benefit to the developing countries. For this purpose, the UNCTAD secretariat may seek the support of member countries and international organizations in the collection of the statistical data and information required. The differential and more favourable treatment to the developing countries in the sector of services should be ensured in any such mechanisms. The UNCTAD secretariat should also collect and disseminate relevant information services on a systematic basis;

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(c)  The UNCTAD secretariat should institute technical assistance programme for developing countries in the area of services; (d)  The Trade and Development Board should draw up at its twenty-ninth session, in 1984, a programme of action relating to the activities mentioned above, including specific recommendations to achieve the above objectives; (e)  The special problems of the least developed countries should be kept in view in undertaking the tasks mentioned above.

Item 11: Financial and monetary issues A.  Position paper by the Group of 77 on financial and monetary issues World development in crisis 1.  The developing world is in the midst of a global crisis that is as widespread in its incidence as it is profound in its impact. Economic expansion has ground to a halt, with the growth of output falling below that of population. The prospect for 1983 is for a further decline. 2.  For developing countries, this crisis has been triggered and aggravated by the continued deterioration of the external environment, owing to the policies pursued by the major developed market-economy countries. It is also a result of deep-rooted structural deficiencies in the international monetary, financial and trade systems, which have not responded on a scale and the peace required for world economic recovery and for regaining the momentum of development in developing countries. 3.  Over the two-year period 1981-1982, developing countries have seen a dramatic fall in the flow of foreign exchange on both the capital and current accounts. This has led to a most severe contraction of the liquidity and financing needed to sustain their adjustment process. A number of factors account for this: (a)  Export earnings have fallen by about $150 billion, reflecting the catastrophic collapse of commodity prices. Prices in real terms for most of their commodities are now at levels comparable to those during the Great Depression; (b)  Debt-service payments have risen quite dramatically by over $70 billion and now stand at a level exceeding $106 billion annually. The total debt of developing countries now stands at over $700 billion, if short-term debt is included; (c)  Private bank lending to developing countries has also contracted dramatically by about $25 billion at the end of 1982; (d)  Official development assistance has stagnated, standing at less than half of the 0.7 per cent target adopted over a decade ago. Even allowing for offsetting factors such as interests payments earned by developing countries, the net foreign exchange loss suffered by them over the period 1981-1982 is estimated at about $200 billion. The reserves of developing countries now stand at precariously low levels. 4.  In order to surmount the crisis, both the conjunctural and structural problems of the world economy and of the international economic order need to be addressed fully and in an integrated manner. Adequate responses will require the adoption of appropriate and concerted policies by the international community, particularly by the developed countries, in view of their responsibility for the present crisis. In this context a global and integrated approach is required that reflects the interdependence of developed and developing countries, and the interrelated character of problems affecting the international system of trade and payments. A  strengthening of international monetary and financial cooperation directed at rapid and sustained development, particularly of developing countries, is essential for overcoming the immediate and the long-term problems of the international economy, and for domestic efforts to yield positive results.

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The policy approach 5.  The sixth session of the Conference provides the opportunity for adopting a common strategy for dealing with the crisis, including agreement on an action programme designed to bring about a rapid and balanced recovery and expansion of world output and employment for sustained development. The development momentum of developing countries should be resumed at an accelerated pace on a priority basis in the process of world recovery and development. 6. The recovery programme would require developed countries to adopt concerted policies designed to promote economic growth through, inter alia, a lowering of interest rates, the raising of the level of demand, stabilization of exchange rates and the opening of markets. 7.  It will also require a series of immediate measures in favour of developing countries in areas of critical importance to them, including a substantial increase in liquidity and reserves for developing countries, accelerated flows of concessional and other multilateral flows and restructuring of their debts. 8.  At the same time as, and consistent with, the efforts to promote recovery and development, initiatives should be launched immediately to reshape the international monetary and financial systems so that they may contribute more effectively to sustained development in the world economy, and particularly in the developing countries. 9.  The monetary and financial measures proposed below are designed to achieve both of these objectives and promote the establishment of the New International Economic Order. To this end, the international monetary system will need to be restructured to ensure the fuller and equitable participation of developing countries in the decision-making process, and the framework of international financial cooperation for development will need to be extended and revamped.

Policy measures A.  Immediate measures 1.  The International monetary Fund The Fund should: (a)  SDR allocations (i)  Commence an immediate and substantial allocation of SDRs, in no circumstance less than 15 billion annually. Allocations will need to be made regularly, consistent with the evolving requirements of the world economy; (ii)  Make a special additional allocation of SDRs to allow developing countries to meet the requirements for increasing quotas under the Eighth General Review of Quotas. (b)  The link Decide to establish the link between SDRs and development finance without further delay. (c)   Quotas As the decision to increase Fund quotas to SDR 90 billion falls short of the current and evolving requirements of the Fund’s developing country members, quotas should be increased substantially. (i)  Complete the Ninth General Review of Quotas by the end of 1984; (ii)  Enlarge substantially the share of developing countries in IMF quotas and raise these to at least 45 per cent of the total; (iii)  Make a special adjustment of the small quotas, that is, those which at present do not reach SDR 10 million; (iv)  Enlarge the access of member countries to the Fund’s resources expressed as a multiple of quotas, and in any event there should be no reduction in the existing multiples;

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(v)  Bring effectively under the control of the Fund the resources available to it under the General Arrangements to Borrow. (d)  Compensatory Financing Facility (i)  Expand substantially and liberalize the Compensatory Financing Facility so as to provide full, prompt and automatic coverage of shortfalls, without imposing conditionality; (ii)  Establish special arrangements for the benefit of the least developed countries to subsidize interest payments and to lengthen repayment periods. (e)  Conditionality Undertake a fundamental review of the principles on which its conditionality rests with a view to revising immediately its policy conditions under the trenches and facilities so as to place greater stress on supply expansion, and to take full into account the economic and social priorities and objective of developing countries. Greater use should be made of multi-year programmes and due allowance made for uncertainties in setting performance criteria. In prescribing adjustment measures, IMF should take fully into account circumstances and factors beyond the control of developing countries. (f)  Medium-term facility Establish a new, low-conditional facility to extend medium-term payments financing to developing countries. This facility should be financed from SDR allocations accruing to developed countries. (g)  Trust fund Establish a new trust fund, financed from the profits from additional sales of IMF gold holdings due to developed countries and from interest due from the developed countries allocation of SDR holdings, in order to make concessional loans to eligible countries. (h)  Surveillance Exert influence on developed countries through the strengthening of surveillance over exchange rate and related fiscal, monetary and trade policies to bring greater efficiency and symmetry to the adjustment process. (i)  Decision-making All phases of the negotiations, formal and informal, linked to decision-making on the international monetary system should take place in forums in which developing countries are full participants. The voting strength of developing countries in the Bretton Woods institutions should be increased substantially.

2.  The World Bank The World Bank should (a)  Accelerate its five-year regular lending programme for the period 1982-1986 of $60 billion so that it is disbursed over four years; (b)  Review its Special Assistance Programme every six months with a view to accelerating additional disbursements; (c)  Raise the share of programme loans to at least 25 per cent of total lending; (d)  Substantially increase the proportion of local costs financed; (e)  Revise the conditions of structural adjustment lending before the end of 1983 so that they are brought into line with the social and economic conditions prevailing in developing countries. In order to increase the ability of the World Bank to respond to the

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emergency needs of developing countries, the volume of lending for structural adjustment should be substantially increased; (f)  Enlarge its resources so as to provide a significant growth of lending in real terms. The capital base should be increased and the gearing ratio doubled; (g)  Consider co-financing as a supplement to its regular resources and not as a precondition for Bank lending. Furthermore, co-financing should be considered in accordance with the principle of additionality of resources on improved terms and conditions, and maintaining the World Bank’s role as a multilateral financial institution for development; (h)  Rise the permissible margin of preference to 25 per cent; (i)  In view of the advanced stage of the discussions on an energy affiliate and the substantial measure of governmental support for it in both developed and developing countries, and immediate decision should be taken to establish the facility and to bring it into operation as early as possible in 1984; (j)  End its policy of ‘graduation’ for access to the regular capital resources; (k)  The Seventh Replenishment of the International Development Association (IDA) should provide for a substantial increase in lending to all recipients in real terms. Negotiations should be completed in time for the Seventh Replenishment operations to commence from the beginning of fiscal year 1984. The regrettable experience of the Sixth Replenishment of IDA should be avoided and commitments implemented as presently scheduled. The quality of IDA flows should remain unchanged.

3.  Regional development banks (a) The resources of regional development banks should be strengthened through capital increases in real terms, in such a way that they are able to meet the economic and social development needs of their member States. Furthermore, these institutions should be strengthened as financial bodies capable of attracting additional external resources to meet national development needs; (b)  The regional development banks should adopt in the course of 1983 special programmes to accelerate disbursements.

4.  United Nations Development Programme Donor countries should rapidly increase their voluntary contributions, in line with their commitments, to restore the funding available to UNDP to the levels required by the current and prospective needs of developing countries for technical cooperation.

5.  International Fund for Agricultural Development Developed donors should complete the fulfilment of their commitments for the replenishment of IFAD for the current triennium 1981-1983 as soon as possible. Furthermore, there should be continuing support for strengthening IFAD.

6.  Export credits (a)  The extensive technical analysis carried out in UNCTAD on the need for an international mechanism to refinance export credits extended by developing countries calls for a firm decision by the Conference at its sixth session to establish the international export credit guarantee facility. The Conference should establish procedures and a timetable for the facility to come into operation not later than 1984;

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(b)  Developed countries should increase the volume of export credits available to finance the capital requirements of developing countries, lift country limits on borrowing, and not impose minimum rates of interest on export suppliers credits. The OECD arrangement on export credit, adopted without consulting developing countries, should be reviewed immediately, with a view to fully exempting export credits extended to developing countries from its stringent provisions on terms of export credits to developing countries.

7.  Official development assistance Given the critical economic situation of many developing countries, particularly the least developed, and the need for a substantial increase in highly concessional assistance to avoid permanent damage to the development process, the Conference at its sixth session should agree on concrete policies and measures to increase ODA flows in real terms and improve their quality. (a)  All developed countries that have not met the 0.7 per cent target should do so by 1985 and in any event not later than the second half of the decade. The target of 1 per cent should be reached as soon as possible thereafter, as envisaged in the International Development Strategy for the Third United Nations Development Decade. Interim targets should be fixed for achieving the objective over the period; (b)  There should be significant increase in programme lending in ODA flows. There should be a improvement in modalities, composition and quality of aid. ODA should not be a vehicle for trade promotion activities by the developed countries; (c)  The transfer of resources from developed to developing countries should be based on an increasingly assured, continuous and predictable basis and should be equitably and rationally distributed among developing countries.

8.  Direct private foreign investment (a)  Direct private foreign investment, which is compatible with national legislation and contributes to the achievement of the development objectives and priorities of developing countries represents a significant contribution to development and to the strengthening of national capacities through the real transfer of technology; (b)  The negotiations on the elaboration of a code of conduct for transnational corporations should be concluded as a matter of urgency.

9. External debt (a)  At the sixth session of the Conference, Governments should agree to take urgently a number of complementary actions to restructure the external debt of developing countries owed to developed countries in a manner designed to revive their development momentum and prospects and to avoid a restriction of developing country access to new lending or a hardening of the terms of lending by public and private sources of international finance as a result of the present international monetary and financial crisis; (b) The measures should include improving the terms of borrowing rescheduling, including longer maturity and grace periods, a reduction of interests rates to a level in keeping with development requirements and the provision of net additional resources; (c)  At its sixth session, the Conference should also undertake a thorough review of the principles and procedures governing the rescheduling of official debt owed to developed countries and the evolution of new arrangements and principles covering the rescheduling of private debt.

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Measures with respect to official debt to be adopted by developed countries (a)  Full and rapid implementation of section A of Trade and Development Board resolution 165 (S-IX) of 11 March 1978, without any form of discrimination, and conversion of all outstanding bilateral ODA loans into grants for the least developed countries; (b)  Emergency and generalized measures to reduce the debt burden of developing countries should be agreed at the sixth session of the Conference for the debt payments on official and officially guaranteed loans: (i)  For developing countries other than the least developed countries, pending the recovery of export earnings, amortization payments on bilateral ODA loans scheduled during the period 1984-1985 should be added to the end of the scheduled repayment period; (ii)  For the official and officially guaranteed export credits from developed countries, a substantial proportion of scheduled interest and amortization payments should be consolidated:  the consolidated amount should be repaid over 10  years, with a five-year grace period; (iii)  The multilateral development financial institutions should contribute to the emergency relief measures by providing, inter alia, additional programme assistance to developing countries in an amount at least equal to the debt-service obligation of the borrower to the multilateral lending institutions.

Principles and procedures governing debt rescheduling (a)  Official debt (i)  Despite the addition of ‘detailed features’ in Trade and Development Board resolution 222 (XXI) of 27 September 1980, agreements under the aegis of the Paris Club do not generally reflect the guidelines. The guidelines should be thoroughly reviewed by the Conference and modified in the light of the much graver debt crisis facing developing countries; (ii)  On the basis of the Trade and Development Board consensus resolution 132 (XV) of 15 August 1975, and with a view to rendering the Paris Club operations closer to the internationally agreed features, the Conference should establish a framework wherein interested developing countries, prior to debt renegotiations in the customary forums, would be enabled to convene ad hoc meetings of official bilateral and multilateral creditors, as well as the relevant private creditors, to consider the economic situation and medium-term development objectives and prospects of the country. Such examination should be assisted by the relevant organizations, including UNCTAD, and should address the balance-of-payments and development finance needs of the country in a framework supportive of the growth and development of the debtor country; (b)  Private debt (i)  The absence of internationally agreed principles and guidelines for restructuring private debts has seriously undermined the efforts of developing countries to reschedule their private debts in a manner commensurate with their development requirements. It has, in particular, been a factor jeopardizing their efforts to meet their urgent and pressing need for additional finance from international capital markets; (ii)  Notwithstanding the different debt profiles of individual developing countries, a generalized approach is required, including guidelines for dealing with the problems of private debt though rescheduling and/or refinancing; this does not imply a uniform set of solutions. There is also need for close monitoring of capital market operations, which

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would secure greater transparency and increase the information available to debtor countries; (iii)  At the same time, in the light of the significant developments in the institutional framework in which debtors and creditors are operating, developing countries will need to formulate appropriate responses to promote their interests. Relevant international institutions, including UNCTAD, should assist them in these efforts.

10.  Substantial New Programme of Acton for the 1980s for the Least Developed Countries Relevant international institutions should establish new mechanisms and arrangements for mobilizing increased financial transfers to the least developed countries, including the proposed new IMF trust fund. All developed donor countries, on their part, should: (a)  Fulfil their commitment to double their ODA to the least developed countries and/or to meet the 0.15 per cent target by 1985; (b)  Make substantial allocations to relevant United Nations funds, to assist in the implementation of the Substantial New Programme of Action; (c)  Provide ODA to the least developed countries fully in the form of grants. Loans when provided should be on terms of least as concessional as those provided by IDA. All assistance should be on a united basis; (d)  Improve the quality and effectiveness of aid to the least developed countries.

B.  Medium and long-term actions 1.  International monetary reform Negotiations should begin expeditiously to correct the structural deficiencies in the international monetary system with a view to making it supportive of the process of international development, in particular of the developing countries. The official component of the international monetary system should be reinforced and its institutional framework transformed into a just and equitable universal instrument. (a)  The macro-economic policies of the major economies should take full account of the impact on developing countries. International consultations and concertation to limit global inflationary and recessionary pressures, with the full participation of developing countries on an equal footing, should become the norm; (b)  The adjustment process should be made more efficient and its burdens distributed more equitably between surplus and deficit countries; (c)  Official payments financing should be provided in amounts and on terms and conditions that are in keeping with the origin of the deficits and the differing capacities of countries to make adjustments, and that help to limit he international transmission of inflationary and recessionary pressures; (d)  The exchange rate system should be reformed to provide stability, while retaining sufficient flexibility to allow adjustment to take place without putting undue pressure on the level of economic activity; (e) The growth of international liquidity should be made more stable and predictable by making the SDR the principal reserve asset and by creating SDRs regularly and in adequate amounts; (f)  The link between allocations of SDRs and development financing should be established at an early date;

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(g)  The resources of the International Monetary Fund, and quotas in particular, should increase regularly and in line with the relevant aggregates, such as value of trade and the size of current account imbalance. Quotas should continue to be the principal sources of the Fund’s resources. Borrowing from official sources should not be allowed to weaken the integrity of IMF.

2.  The framework of international financial cooperation for development (a)  The framework of development finance should be made more coherent and comprehensive so that long-term external resource gaps of developing countries may be abridged and the need for different types of assistance (including technical assistance) fully met; (b)  Bilateral and multilateral flows should be put on an increasingly assured basis, and further consideration given in UNCTAD to that end, including, inter alia, the relationship between disarmament and development.

3.  Institutional arrangements (a)  Proposals from the regional ministerial meetings (b)  The Group of 77 and the Group of 24 The coordination between the Group of 24 and the wider membership of the Group of 77 should be strengthened so that the programme of action and recommendations contained in the present document, as well as in others, may be implemented at an early date.

B. Resolutions 1.  Resolution on official development assistance The United Nations Conference on Trade and Development, Recalling its resolution 129 (V) of 3 June 1979, particularly section thereof, relating to bilateral official development assistance, and General Assembly resolutions 35/56 of 5 December 1980 and 36/211 of 17 December 1981, Recalling that the International Development Strategy for the Third United Nations Development Decade stressed that ‘developed countries which have not yet reached the target (0.7 per cent) should exert their best efforts to reach it by 1985, and in any case not later than the second half of the Decade. The target of 1 per cent should be reached as soon as possible thereafter’,15 Noting with concern that the net disbursement of the official development assistance by members as a whole amounted to only 0.32 per cent of the gross national product of the developed countries in 1982, which after two decades was only half of the United Nations target of 0.7 per cent, Concerned at the decline in the net flows of concessional assistance to developing countries at a time when they directly require large flows, Sharing the concern of the Seventh Conference of Heads of State or Government of Non-Aligned Countries, held at New Delhi from 7 to 12 March 1983,16 in this respect, Noting that the Substantial New Programme of Action for the 1980s for the Least Developed Countries, adopted in 1981,17 also includes the commitment of the developed countries that, in the 15 16 17

General Assembly resolution 35/56 of 5 December 1980, annex, paragraph 98. See the final documents of the Conference, reproduced in A/38/132-S/15675 and Corr. 1 and 2, annex. See Report of the United Nations Conference on the Least Developed Countries, Paris, 1-14 September 1981 (United Nations publication, Sales No.E.82.I.8), part one, sect. A.

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coming years, 0.15 per cent of their gross national product would be provided to the least developed countries as official development assistance within the framework of the general increase of official development assistance flows to all developing countries, 1. Urges that (a)  All developed countries that have not met the 0.7 per cent target should do so by 1985, and in any event not later than the second half of the decade. The target of 1 per cent should be reached as soon as possible thereafter, as envisaged in the new International Development Strategy; (b)  Interim targets should be fixed for achieving the objective over the period; (c) All developed donor countries should fulfil their commitment to double their official development assistance to the least developed countries and/or to meet the 0.15 percent target by 1985; (d) There should be a significant increase in programme lending in official development assistance flows. There should be an improvement in modalities, composition and quality of aid. Official development assistance should not be a vehicle for trade promotion activities by the developed countries; (e)  The transfer of resources from developed to developing countries should be on an increasingly assured, continuous and predictable basis and should be equitably and rationally distributed among developing countries; (f)  At its sixth session, the United Nations Conference on Trade and Development should agree on concrete policies and measures to increase official development assistance flows in real and on improved terms; 2.  Reaffirms the important and unique role of the Committee on Invisible and Financing related to Trade as a mechanism within UNCTAD for the monitoring and review of official development assistance and urges all developed countries to provide the necessary information for consideration at the eleventh session of the Committee.

2.  Resolution on multilateral financial institutions and International monetary reform The United Nations Conference on Trade and Development, Recalling its resolution 128 (V) and 129 (V) of 3 June 1979 and General Assembly resolution 35/56 of 5 December 1980, Recalling also the Outline for a Programme of action on International Monetary Reform18 prepared by the Group of 24 and endorsed by the Group of 77 in Belgrade in 1979, Recalling further the Programme of Immediate Measures relating to international monetary and financial issues adopted by the Seventh Conference of Heads of State or Government of N-Aligned Countries, held at New Delhi from 7 to12 March 1983,19 Aware of the urgent need to enlarge substantially the flow of finance from the international Monetary Fund and the World Bank to assist developing countries in making structural adjustment in the context of development, Rejecting the view being expressed in certain quarters that the role of the International Monetary Fund should be restricted to that of ‘lender of last resort’,

18 19

See TD/13/AC.32/.L.20. See Section V of the Economic Declaration adopted by the Conference and reproduced in document A/38/132–S/15675 and Corr.1 and 2, annex.

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Stressing the need to improve the conditionality of the International Monetary Fund so that countries can approach the Fund at an earlier stage of need, Recalling that a number of provisions contained in the Articles of agreement of the World Bank that were designed to ensure wide participation in the decision-making processes of that institution have remained inactive, thereby contributing to a progressive erosion of the interests of developing countries, Agrees that, in view of the critical economic situation of developing countries and the growing asymmetry and inequity of the present international monetary system, there is need for a programme of immediate measures to be adopted by the relevant international institutions and by the developed countries, and for launching immediately a process of structural reform of the international monetary system, including medium and long-term measures, as follows.

A.  Immediate measures 1. The International Monetary Fund should take the following measures: (a)  Allocations of special drawing rights (i)  Commence an immediate and substantial allocation of special drawing rights in no circumstance less than 15 billion annually. Allocations will need to be made regularly consistent with the evolving requirements of the world economy; (ii)  Make a special additional allocation of special drawing rights to allow developing countries to meet the requirements for increasing quotas under the Eighth General Review of Quotas; (b)  The link Decides to establish the link between special drawing rights and development finance without further delay; (c)  Quotas As the decision to increase Fund quotas to 90 billion special drawing rights falls short of the current and evolving requirements of the Fund’s developing country members, quotas should be increased substantially. (i)  Complete the Ninth General Review of Quotas by the end of 1984; (ii)  Enlarge substantially the share of developing countries in Fund quotas and raise these to at least 45 per cent of the total; (iii)  Make a special adjustment of the small quotas, that is, those which at present do not reach 10 million special drawing rights; (iv)  Enlarge the access of member countries to the Fund’s resources expressed as a multiple of quotas, and in any event there should be no reduction in the existing multiples; (v)  Bring effectively under the control of the Fund the resources available to it under the General Arrangements to Borrow; (d)  Compensatory Financing Facility (i)  Expand substantially and liberalize the Compensatory Financing Facility so as to provide full, prompt and automatic coverage of shortfalls without imposing conditionality; (ii)  Establish special arrangements for the benefit of the least developed countries to subsidize interest payments and to lengthen repayment periods;

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(e)  Conditionality Undertake a fundamental review of the principles on which its conditionality rests with a view to revising immediately its policy conditions under the tranches and facilities so as to place greater stress on supply expansion, and to take fully into account the economic and social priorities and objectives of developing countries. Greater use should be made of multi-year programmes and due allowance made for uncertainties in setting performance criteria. In prescribing adjustment measures, the Fund should take fully into account circumstances and factors beyond the control of developing countries; (f)  Medium-term facility Establish a new, low-conditional facility to extend medium-term payments financing to developing countries. This facility should be financed from allocations of special drawing rights accruing to developed countries; (g)  Trust fund Establish a new trust fund, financed from the profits from additional sales of the International Monetary Fund’s gold holdings due to developed countries and from interest due from the developed countries allocation of holdings of special drawing rights, in order to make concessional loans to eligible countries; (h)  Surveillance Exert influence on developed countries through the strengthening of surveillance over exchange rate and related fiscal, monetary and trade policies to bring greater efficiency and symmetry to the adjustment process; (i)  Decision-making All phases of the negotiations, formal and informal, linked to decision-making on the international monetary system should take place in forums in which developing countries are full participants. The voting strength of developing countries in the Bretton Woods institutions should be increased substantially. 2. The World Bank should take the following measures: (a)  Accelerate its five-year regular lending programme for the period 1982-1986 of $60 billion so that it is disbursed over four years; (b)  Review its Special Assistance Program every six months with a view to accelerating additional disbursements; (c)  Raise the share of programme loans to at least 25 per cent total lending; (d)  Substantially increase the proportion of local costs financed; (e)  Revise the conditions of structural adjustment lending before the end of 1983 so that they are brought into line with the social and economic conditions prevailing in developing countries. In order to increase the ability of the World Bank to respond to the emergency needs of developing countries, the volume of lending for structural adjustment should be substantially increased; (f)  Enlarge its resources so as to provide a significant growth of lending in real terms. The capital base should be increased and the gearing ratio doubled; (g)  Consider to financing as a supplement to its regular resources and not as a precondition for Bank lending. Furthermore, co-financing should be considered in accordance with the principle of additionality of resources on improved terms and conditions and maintaining the World Bank’s role as a multilateral financial institution for development; (h)  Raise the permissible margin of preference to 25 per cent; (i)  In view of the advanced stage of the discussions on an energy affiliate and the substantial measure of governmental support for it in both developed and developing countries, an

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immediate decision should be taken to establish the facility and to bring it into operation as early as possible in 1984; (j)  End its policy of ‘graduation’ for access to the regular capital resources; (k)  The Seventh Replenishment of the International Development Association should provide for a substantial increase in lending to all recipients in real terms. Negotiations should be completed in time for Seventh Replenishment operations to commence from the beginning of fiscal year 1984. The regrettable experience of the Sixth Replenishment should be avoided and commitments implemented as presently scheduled. The quality of international Development Association flows should remain unchanged. (l)  Take appropriate steps to examine whether activation of certain sections of the Articles of Agreement could improve the position of the developing countries in the World Bank. 3. Multilateral regional development finance institutions (a)  These institutions should be strengthened through capital increases in real terms, in such a way that they are able to meet the economic and social development needs of their member States. Furthermore, they should be strengthened as financial bodies capable of attracting additional external resources to meet national development needs; (b) In the course of 1983, they should adopt special programmes to accelerate disbursements.

B.  International monetary reform, medium-term and long-term measures Negotiating should begin expeditiously to correct the structural deficiencies in the international monetary system with a view to making it far more supportive of the process of international development, in particular of the developing countries. To that end, the official component of the international monetary system should be reinforced and its institutional framework transformed into a just and equitable universal instrument. The following elements should be included: (a)  The macro-economic policies of the major economies should take full account of the impact on developing countries. International consultations and concentration to limit global inflationary and recessionary pressures, with the full participation of developing countries on an equal footing, should become the norm; (b)  The adjustment process should be made more efficient and its burdens distributed more equitably between surplus and deficit countries; (c)  Official payments financing should be provided in amounts and on terms and conditions that in keeping with the origin of the deficits and the differing capacities of countries to make adjustment, and that help to limit the international transmission of inflationary and recessionary pressures; (d)  The exchange-rates system should be reformed to provide stability while retaining sufficient flexibility to allow adjustment to take place without putting undue pressure on the level of economic activity; (e) The growth of international liquidity should be made more stable and predictable by making the special drawing rights the principal reserve asset and by creating special drawing rights regularly and in adequate amounts; (f)  The World Bank should initiate a process of consultations to devise appropriate modification of those Articles of Agreement that would serve to redefine and restructure the role of developing countries within the institution.

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C. Invites the Secretary-General of UNCTAD, after consultation with the relevant institutions, to keep the implementation of the above measures under review and report on the progress for the consideration of the Trade and Development Board on the earliest possible occasion.

3.  Resolution on external debt The United Nations Conference on Trade and Development, Recalling its resolution 94 (IV) of 31 May 1976 on the debt problems of developing countries and Trade and Development Board decision 149 (XVI) of 23 October 1976, Recalling Trade and Development Board resolution 132 (XV) of 15 August 1975, in which the Board, inter alia, established the convening of ad hoc meetings to assess the overall economic situation of interested developing countries with debt problems, Recalling Board resolution 165 (S-IX) of 11 March 1978 on debt and development problems of developing countries calling, inter alia, upon developed donor countries to adopt measures to adjust the terms of past bilateral official development assistance to developing countries, in particular to the least developed countries, in order to bring these terms into line with current softer terms or to take equivalent measures, Recalling Board resolution 222 (XXI) of 27 September 1980, and welcome the measures taken by certain States members of the Development Assistance committee in pursuance of section A of Board resolution 165 (S-IX) and their affirmation to implement fully that section of the resolution, Recalling the concern expressed by the Group of 77 in the Arusha Programme for Collective Self-Reliance and Framework for Negotiations that many countries had not fully implemented section A of resolution 165 (S-IX) regarding adjustment of terms on past official development assistance debt,20 Recalling the Outline for a Programme of Action on International Monetary Reform 21 approved by the Group of 24 and endorsed by the Group of 77 in Belgrade in 1979, Sharing the concern expressed at the Seventh Conference of Heads of State or Government of Non-Aligned Countries, held at New Delhi in March 1983, that progress towards the implementation of Board resolution 165 (S-IX) had been inadequate,22 Convinced that there is a need to take urgently a number of complementary actions with respect to the external debt of developing countries owed to developed countries, including restructuring, in a manner designed to revive their development momentum and prospects and to avoid a restriction of developing country access to new lending or a hardening of the terms of lending by public and private sources of international finance as a result of the present international and monetary and financial crisis, Convinced also that such measures should include improving the terms of borrowing/rescheduling, including longer maturity and grace periods, a reduction of interest rates to levels in keeping with development requirements and the provision of net additional resources, Convinced further of the need for a review of the principles and procedures governing the rescheduling of official debt owed to developed countries and the evolution of new arrangements and principles covering the rescheduling of private debt,

20

21 22

See the Arusha Programme (Proceedings… Fifth Session, vol. I, annex (VI), chap. III, item 12(d)(i) of the provisional agenda for the fifth session of the Conference, ‘Review of implementation and further action that may be required pursuant to Trade and Development Board resolution 165 (S-IX), section A’. See TD/B/AC.32/L.2. See the final documents of the Conference in A/38/132-S/15675 and Corr. 1 and 2, annex, para. 73 of the Economic Declaration.

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Concerned that, despite the adoption of the ‘detailed features’ annexed to Board resolution 22 (XXI), agreements under the aegis of the Paris Club do not generally reflect the guidelines, Noting that the absence of internationally agreed principles and guidelines for restructure in private debts has seriously undermined the efforts of developing countries to reschedule their private debts in a manner commensurate with their development requirements; it has, in particular, been a factor jeopardizing their efforts to meet their urgent and pressing need for additional finance from international capital markets, Convinced that, notwithstanding the different debt profiles of individual developing countries, a generalized approach is required, including guidelines for dealing with the problem of private debts through rescheduling and/or refinancing; this does not imply a uniform set of solutions, Noting that, with respect to private debt, significant developments have taken place in the institutional framework in which debtors and creditors are operating, 1.  Urges the developed countries to undertake full and rapid implementation of section A  of Trade and Development Board resolution 165 (S-IX), without any form of discrimination, and to convert all outstanding bilateral official development assistance loans into grants for the least developed countries, and also urges that the following emergency and generalized measures to reduce the debt burden of developing countries be agreed for debt payments on official and officially guaranteed loans; (a)  For developing countries other than the least developed countries, pending the recovery of export earnings, amortization payments on bilateral official development assistance loans from developed countries due in the period 1984-1985 should be added to the end of the scheduled repayment period; (b)  For the official and officially guaranteed export credits from developed countries, a substantial proportion of scheduled interest and amortization payments should be consolidated: the consolidated amount should be repaid over ten years, with a five-year grace period; (c)  The multilateral development financial institutions should contribute to the emergency relief measures by providing, inter alia, additional programme assistance to developing countries in an amount at least equal to the debt-service obligation of the borrower to the multilateral lending institutions; 2.  Decides that the guidelines contained in Board resolution 222 (XXI) should be thoroughly reviewed and modified in the light of the much graver debt crisis facing developing countries; 3.  Requests the Trade and Development Board to undertake the review and modification of the guidelines contained in resolution 222 (XXI) at its spring session in 1984; 4.  Decides further that a framework be established with respect to official debt wherein interested developing countries, prior to debt renegotiations in the customary forums, would be enabled to convene ad hoc meeting of official bilateral and multilateral creditors as well as the relevant private creditors to consider the economic situation and medium-term development objectives and prospects of the country. Such examination should be assisted by the relevant organizations, including UNCTAD, and should address the balance-of-payments and development finance needs of the country in a framework supportive of the growth and development of the debtor country; 5.  Urges that close monitoring be undertaken of capital market operations, which would secure greater transparency and increase the information available to debtor countries; 6.  Calls upon relevant international institutions, including UNCTAD, to assist developing countries in their efforts to formulate appropriate responses to promote their interests in the light of the significant developments in the institutional framework in which debtors and creditors are operating.

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Item 12: Substantial New Programme of Action for the 1980s for the Least Developed Countries Resolution on progress in the implementation of the Substantial New Programme of Action for the 1980s for the Least Developed Countries The United Nations Conference on Trade and Development, Alarmed at the economic crisis being faced by the least developed countries and deeply concerned at the painfully slow pace at which the substantial New Programme of Action for the 1980s for the Least Developed Countries23 is being implemented, 1.  Urges the international community to implement the Programme fully and effectively and provide financial assistance to the least developed countries in amounts and on terms which correspond to their immediate and long-term development needs. Those donors who have made specific commitments with respect to aid targets to the least developed countries but who have not fulfilled them should do so promptly and agree to double their official development assistance or to allocate 0.15 per cent of their gross national product as official development assistance to the least developed countries and implement it by 1985; 2.  Calls upon, the international community, as a matter of priority, to: (a)  Support the efforts of the least developed countries to attain internal and external balance in their economies; (b)  Help in maximizing capacity utilization of the productive economic units; (c)  Support the efforts of the least developed countries to increase their per capita food production, so as to improve the nutritional situation of their populations and achieve food security; (d)  Provide financial and technical assistance for the research, exploration and development of energy resources in the least developed countries; 3.  Requests relevant international institutions to continue their efforts to consider seriously new mechanisms and arrangements for mobilizing increased financial transfers to the least developed countries, including such measures as international tax schemes for development, further gold sales by the International Monetary Fund, linking the creation of special drawing rights to development assistance, and the use of interest subsidy techniques. Balance-of-payments support in general must not be used to exercise political pressure on the least developed countries and should not be dependent on acceptance by the least developed country of measures and programmes which involve social costs that hinder its basic aims, objectives and priorities; 4.  Requests the International Monetary Fund to undertake a fundamental review of the principles on which conditionality rests in such a way as to reflect the social, economic and political priorities of the least developed countries and allocate substantial portions of special drawing rights, trust fund facilities and compensatory financial facilities to those countries; 5.  Calls upon donor countries to make substantial contributions to the United Nations Development Programme Special Measures Fund for the least developed countries, the United Nations Capital Development Fund for the United Nations Volunteers to assist in the implementation of the Substantial New Programme of Action; 6.  Urges countries concerned, within the context of the Substantial New Programme of Action, to: (a)  Take immediate steps to fulfil their commitment to provide official development assistance to the least developed countries fully in the form of grants; 23 See Report of the United Nations Conference on the Least Developed Countries, Paris, 1-14 September 1981 (United Nations publication, Sales No.E.82.I.8), part one, sect. A.

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(b)  Provide loans on highly concessional terms, at least as concessional as those provided by the International Development Association, and take urgent steps to fulfil their commitments to provide official development assistance grants and loans to the least developed countries on a united basis without discrimination; (c)  Take steps to improve the quality and effectiveness of aid, and eliminate the time lag between aid commitment and disbursement; (d) Implement the recommendations of the Second Meeting of Multilateral and Bilateral Financial and Technical Assistance Institutions with Representatives of the Least Developed Countries,24 7.  Urges developed countries to: (a)  Implement promptly and fully Trade and Development Board resolution 165 (S-IX) of 11 March 1978 and to covert all outstanding bilateral official development assistance loans into grants for all the least developed countries without discrimination; (b) Take the necessary measures to extend relief to the least developed countries for private debts; 8.  Further urges developed countries to implement the following measures in their commercial policy, in order to enhance the export trade of the least developed countries: (a)  Further improve the generalized system of preferences or most-favoured-nation treatment for products of the least developed countries, with the objective of providing duty-free access to such products; (b)  Use more flexible requirements for rules of origin for products of the least developed countries; (c)  Eliminate non-tariff measures affecting exports of least developed countries; (d)  Facilitate the participation of least developed countries in multilateral trade negotiation agreements and arrangements; (e) Strengthen the technical assistance facilities of UNCTAD and other relevant United Nations organizations and bodies to meet the special requirements of least developed countries; (f)  Strengthen trade promotion activities, through the International Trade Centre UNCTAD/ GATT and other initiatives, such as by encouraging the establishment of import promotion offices in importing countries; (g)  Assist the efforts of the least developed countries to diversify their exports and make them more competitive; 9.  Calls upon the bilateral development partners and international organizations to: (a)  Assist the least developed countries in creating industries for on-the-spot processing of raw materials and food products; (b)  Assist in the development of integrated projects for the expansion of exports and provide adequate resources to overcome all supply bottlenecks; (c)  Promote long-term arrangements for the sale of least developed countries export products and have Governments and international institutions, as a matter of policy, seek to purchase some of their supplies from least developed countries; 10.  Calls upon developed countries to establish, jointly or separately, a STABEX-type scheme with respect to all the least developed countries from which they import primary commodities;

24

See the report of the Meeting (Official Records of the Trade and Development Board, Twenty-sixth Session, Annexes, agenda item 6, document TD/B/933), part two.

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11.  Requests that special arrangements should be considered for the least developed countries as part of the proposal to enlarge and liberalize the International Monetary Fund’s Compensatory Financing Facility, by providing for full coverage of their export shortfalls, for the subsidization of their interest payments on outstanding drawing and for a repayment period of ten years with a grace period of five years. To this end, there is an urgent need to bring the International Monetary Fund’s Subsidy Account into operation so as to subsidize the difference between payments made at market-related interest rates and those, which would be made under regular use of the Fund’s resources; 12.  Calls upon developing countries in a position to do so to provide assistance to the least developed countries in the context of economic cooperation among developing countries and in the spirit of collective self-reliance, as follows: (a) Provide preferential treatment to imports of goods produced by the least developed countries; (b)  Assist the least developed countries in developing their production potential for food, energy and other resources, including manufactures; (c)  Provide, under preferential terms and conditions and at a minimum cost, the results of specific and technological development adapted to the development needs of the least developed countries; (d)  Provide increased flows of financial and technical assistance and goods for the benefit of the least developed countries through special preferential arrangements; (e)  Promote and expand joint ventures with the least developed countries involving the transfer of equipment and technology, in the context of long-term bilateral agreements or special arrangements; (f)  Explore the possibilities of undertaking long-term arrangements to assist least developed countries in achieving a reasonable level of sales of their products; (g)  Strengthen subregional and regional cooperation arrangements; (h)  Assist the least developed countries in their efforts to develop human resources; 13.  Urges the international community to provide the least developed countries, as recommended in paragraph 85 of the Substantial New Programme of Action, with financial resources particularly for the development of ports, roads, rural tracks and railways in least developed countries, from United Nations organizations and bilateral and multilateral donors, as well as financial resources and technical assistance to train the required manpower and to set up indigenous training institutions; 14.  Urges the international community to provide substantial and additional financial and material assistance to the least developed countries, which are susceptible to major man made and natural disasters, with a view to complementing their efforts to provide essential services as well as to strengthening their developmental activities; 15.  Urges the lead agencies to assist effectively in the immediate convening of the country review meetings, and to take all necessary steps to ensure the success of those meetings; 16.  Urges donor countries and institutions to adhere to the commitments made at the United Nations Conference on the Least Developed Countries and use the forum of review meetings to indicate the steps they have taken so far, and contemplate taking, to fulfil their commitment to the implementation of the Substantial New Programme of Action. To this end, they should particularly indicate the following; (a) Their overall financial contribution over and above the existing assistance being provided; (b)  The sector and specific projects, which they plan to finance or co-finance;

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(c)  The immediate action component and the areas or sectors where such non-project aid will be given; (d) The concrete steps they will take with respect to export promotion and diversification; (e)  The concrete steps to be taken with respect to aid modalities; 17.  Requests the Secretary-General of UNCTAD to convene, as part of the preparation for the mid-term global review of the implementation of the Substantial New Programme of Action, a third Meeting of Multilateral and Bilateral Financial and Technical Assistance Institutions with Representatives of the Least Developed Countries. The meeting should in particular, (a)  Undertake a review and assessment of the economic situation of the least developed countries and of assistance requirements for their accelerated progress; (b)  Evaluate and put forward relevant recommendations to improve aid practices and management, notably as regards terms and conditions of aid, adapting assistance criteria to the specific needs of the least developed countries, types of aid and priority areas, administration and management of aid programmes, and technical assistance; (c)  Evaluate the results of the individual country meetings convened in accordance with paragraph 111 of the Substantial New Programme of Action and make recommendations aimed at improving the coordination of assistance programmes; 18.  Requests further the Secretary-General of UNCTAD to prepare comprehensive reports on the implementation of the Substantial New Programme of Action with specific recommendations for ensuring its full and expeditious implementation, as well as other relevant documents in line with paragraphs 120-122 of the Programme to facilitate the mid-term global review by the Intergovernmental Group on the Least Developed Countries at a high level in 1985; 19.  Decides that, in order to discharge effectively its responsibilities in this area, and in recognition of the importance of these issues, the Special Programme for Least Developed, Land-locked and Island Developing Countries within UNCTAD should be adequately strengthened and the necessary additional resources made available. Urgent consideration should also be given, in the context of the restructuring of the institutional machinery of UNCTAD, to transforming it into a separate division of the secretariat. The appropriate units of the regional commissions should also be strengthened in order to review and monitor effectively the progress of the implementation of the Substantial New Programme of Action at the regional level; 20.  Urges donor countries and institutions to answer quickly the regular questionnaires of the UNCTAD secretariat on the steps they are taking to implement the Substantial New Programme of Action, on a regular basis, so as to permit an objective assessment of the progress in the implementation process.

Item 13 (a): Technology Resolution on technology The United Nations Conference on Trade and Development, Noting that, despite the serious efforts made by the developing countries at the national, regional and international levels, the progress achieved so far in improving their access to the technologies urgently needed by them for accelerating their technological transformation has been very limited, Recognizing that the present world economic situation makes even more urgent the formulation and adoption of coherent measures for the technological transformation of developing countries,

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Believing that it is therefore imperative not only to review past developments but also to consider and recommend the measures needed in the period ahead to ensure that the developing countries obtain the fullest benefits from modern scientific and technological advances, Noting the report by the UNCTAD secretariat entitled ‘A strategy for the technological transformation of developing countries’,25 which provides a basis for establishing the necessary guidelines for the elaboration and application of such a strategy,

A.  Restructuring the legal environment 1.  International code of conduct on the transfer of technology 1.  Urges the United Nations Conference on an International Code of Conduct on the Transfer of Technology to complete the negotiations on the code at its fifth session so as to enable the General Assembly to adopt the code at its thirty-eighth session, and recommends that all countries participate fully in this process; 2.  Strongly urges that the proposals of the Interim Committee of the Conference should provide a basis for finding solutions to the issues still outstanding so as to arrive at a code that is to be benefit of all countries;

2.  Economic, commercial and developmental aspects of the industrial property system 3.  Invites the developed countries to cooperate in concluding the revision of the Paris Convention for the Protection of Industrial Property in a manner, which fully takes into account the interests of the developing countries; 4.  Recommends that the revised provisions of the Paris Convention should recognize, inter alia, that effective working is closely linked to the granting and maintenance of patents; these should serve to contribute to the economic and technological development of the countries where they are registered, and not lead to the establishment of import monopolies; 5.  Welcomes the progress made at the national level by a number of developing countries in the revision of their industrial property laws; 6.  Invites UNCTAD to continue to provide adequate advice and assistance to the developing countries on the economic, commercial and development aspects of the industrial property system prior to the negotiating sessions of the Diplomatic Conference on the Revision of the Paris Convention for the protection of Industrial Property;

3.  National laws and regulations on the transfer, acquisition and development of technology 7.  Recognizes the importance of the establishment of national laws and regulations on the transfer, acquisition and development of technology as part of broader economic policies, aimed at strengthening the bargaining position of acquiring enterprises through the elimination of abusive practices and unfair terms and conditions, and at increasing the contribution of the acquired technology to the overall social and economic development of the acquiring country; and invites the attention of all developing countries to proposals contained in the report of the UNCTAD secretariat entitled ‘Common approaches to laws and regulations on the transfer and acquisition 25

TD/277 (to be issued as a United Nations publication).

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of technology’ 26 as well as to the possibility of using these proposals in the adoption, improvement or revision of national laws and regulations;

B.  Development aspects of reverse transfer of technology 8.  Urges the Secretary-General of UNCTAD to take all the necessary measures to implement paragraph 5 of General Assembly resolution 37/207 of 20 December 1982, in which he was requested to convene the requisite meetings of governmental experts to formulate recommendations on policies and concrete measures, with a view to mitigating the adverse consequences for the developing countries of the reverse transfer of technology, including the proposal for the establishment of an international labour compensatory facility;

C.  Technical and operational assistance provided by the advisory service on transfer of technology 9.  Requests that the Advisory Service: (a)  Increase its technical and operational assistance at the request of developing countries in the formulation and implementation of policies, laws, regulations, procedures and mechanisms for the acquisition, transfer and development of technology in all its aspects and the formulation of common approaches therein among developing countries; (b)  Increase its assistance in the utilization and commercialization of the results of research and development activities financed by the public sector in developing countries; (c)  Increase its assistance to developing countries in the formulation of strategies for the technological development of sectors of importance to them, and in devising and enhancing new mechanisms and modalities for cooperation among them in such sectors; (d)  Substantially increase and broaden the scope and coverage of its various training programmes, and prepare appropriate operational tools; (e)  Build up a data and information system concerning alternative sources and potential suppliers of technologies; (f)  Increase its assistance in other fields such as the establishment of efficient interregional and sectoral linkages among centres of developing countries dealing with technology, as well as between research and development, and academic institutions and the production cycle; 10.  Strongly urges that the Advisory Services be reinforced to perform its function effectively and be provided with the additional resources required to increase its assistance to developing countries in their endeavours to accelerate their technological transformation;

D.  New initiatives for the 1980s 11.  Firmly believes that new dimensions in further action towards the technological transformation of developing countries are called for; 12.  Requests the Secretary-General of UNCTAD to convene meetings of governmental experts to examine and recommended appropriate policies, including concrete measures on transfer application and development of technology in the food processing, capital goods and industrial machinery, and energy sectors; 13.  Recommends strongly that a number of areas and issues of critical importance to developing countries should receive urgent consideration, such as agricultural inputs, financing of 26 TD/B/C.6/91.

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technology through foreign investment and other forms of transfer, legal institutional and fiscal measures aimed at encouraging the efficient assimilation and development of technology, implications of the technological dependence of women, and the role of small and medium-sized enterprises in the international transfer of technology; 14.  Requests the Secretary-General of UNCTAD to explore the possibility of preparing international measures, norms or standards on marketing, promotion, distribution, trade and technology in the pharmaceutical sector as to provide the basis for appropriate action by Governments; 15.  Further requests the Secretary-General of UNCTAD to examine the economic commercial and developmental aspects of new and emerging technologies (biotechnology, solar energy technology, micro-electronics, etc.) so as to provide the basis for consideration by Governments for appropriate action; 16.  Urgently requests the Secretary-General of UNCTAD to examine and asses the present patterns and channels for utilization and commercialization of the results of research financed by the United Nations system, and identify possible policies, measures and arrangements aimed at increasing their contribution to the technological transformation of developing countries, for consideration by Governments with a view to appropriate action; 17.  Requests further that the Secretary-General of UNCTAD examine ways and means through which a decommercialization of public technologies could be brought about as well as possible measures and policies enhancing easy and rapid access to them by developing countries. In this connection, UNCTAD should contact World Intellectual Property Organization with a view to obtaining for the benefit of developing countries an updated list of technologies that are in the public domain;

E.  Coordination and cooperation between UNCTAD and other relevant United Nations bodies 18.  Recommends that UNCTAD continue to work in close coordination and cooperation with relevant United Nations bodies, particularly the United Nations Industrial Development organization and the World Intellectual Property Organization, in its work in the field of technology;

F.  Further elaboration and implementation of a strategy for the technological transformation of developing countries 19.  Requests the Secretary-General of UNCTAD to convene a special governmental group to consider the report ‘A strategy for the technological transformation of developing countries’, outlining the main elements of action at the national, regional and international levels, and to decide on the formulation of an interrelated set of measures for the adoption and implementation of such a strategy.

Item 13 (b): Shipping 1.  Resolution on shipping The United Nations Conference on Trade and Development, Considering that maritime transport is one of the essential supports for the harmonious development of the economies of developing countries, Reaffirming the importance of shipping in international trade and the need for the developing countries to participate more effectively and under equitable conditions in world shipping,

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Convinced that the implementation of new international maritime order requires the effective and significant participation of the developing countries in the carriage of all cargoes arising from their foreign trade, Noting with concern that the share of developing countries in world shipping tonnage is only 13 per cent, Recalling that the International Development Strategy for the Third United Nations Development Decade envisages an increase in developing countries shipping tonnage to 20 per cent of the world tonnage by 1990,27 Recognizing the important role of UNCTAD in the areas of shipping, ports and multimodal transport, Noting with concern that the shipping industry in the world is undergoing a sustained serious crisis mainly due to speculative over-investment in the industry by developed countries, thus inhibiting developing countries from reaping the benefits of their comparative advantages in the industry, a situation which calls for taking all possible measures at national and international levels for the promotion of the shipping industry in the developing countries, Concerned also that the participation of developing countries in the carriage of bulk and refrigerated cargoes in negligible and reaffirming their determination to participate in the transportation of these cargoes on a significant and equitable basis, Conscious of the need to protect shippers’ interests and also for orderly development in the multimodal transport and ports sectors, Noting with concern the attitude which traditional maritime countries adopt in international shipping negotiations, particularly relating to access to cargoes, including bulk and refrigerated cargoes, and noting that, owing to the controls exercised by transnational corporations over such cargoes, developing countries increasingly feel the need to resort to unilateral measures, Conscious that such practices will increase unless the problems prevailing in industry are solved through negotiations at the international level, 1.  Urges Governments of the States members of the UNCTAD to give effect to the proposals made by the developing countries so that the latter could be granted credit for building and purchasing ships on the following minimum terms: (a)  The maximum period of a loan should not be less than fourteen years for new vessels and ten years for second-hand vessels; (b)  The security deposit should not exceed 10 per cent of the contract price; (c)  The interest rate on deferred payments should not exceed 5 per cent per annum; (d)  More favourable terms should be granted for actual shipbuilding, and special attention should be given to proposals submitted by least developed countries; 2.  Calls for the adoption of national and international measures to bring about and facilitate structural change in the world shipping industry in order to remove protectionist policies and monopolistic practices and to eliminate the controls exercised by transnational corporations, particularly over bulk and refrigerated cargoes, and for this purpose calls upon the UNCTAD secretariat to elaborate daft proposals on such measures; 3.  Urges the expeditious completion of the work on the normalization of the conditions for the registration of ships, including particularly the establishment of a genuine economic link between the vessels and flag States, as called for explicitly in General Assembly resolution 37/209 of 20 December 1982; 4.  Requests the Secretary-General of UNCTAD to undertake studies of policies and practices in the world shipping industry detrimental to the interests of developing countries, particularly 27

General Assembly resolution 35/56 of December 1980, annex. Paragraph 128.

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investment and support policies in this sector, with the aim of identifying measures to ensure harmonious and orderly development of shipping by means of fair competition, as well as a study on the adverse impact of freight rates structures on the exports of developing countries; 5.  Urges the early completion of the ongoing international negotiation in the area of maritime legislation, marine insurance, liens and mortgages, the elaboration of model national maritime legislation, the elaboration of model container tariff rules, and measures to suppress maritime fraud and piracy; 6.  Calls for the elaboration within UNCTAD of: (a)  A flexible international agreement on container standards; (b)  A standard form and model provisions for multimodal transport documents; (c)  Guidelines to be disseminated on the application of computer packages to multimodal transport; (d) A  study on the desirability of drafting a code of conduct for multimodal transport operators; 7.  Calls further for the elaboration of experts, under the auspices of UNCTAD, of a model agreement for feeder and trans-shipment ports and calls on those experts also to examine the modalities of foreign investments in ports, as well as liabilities and responsibilities of container terminal operators and users; 8.  Calls upon the Secretary-General of UNCTAD to examine in depth the development of bulk terminals and the availability and conditions of international financing for port development; 9.  Requests the UNCTAD secretariat to prepare a draft programme of action for cooperation among developing countries in the areas of shipping, ports and multimodal transport; 10.  Urges the early completion of negotiations in progress and the preparation of international agreements in UNCTAD; 11.  Calls upon the UNCTAD secretariat to provide the developing countries with greater assistance in the form of commentaries, workshops, seminars and so on, in order to take the domestic measures needed for the implementation of the international conventions adopted under the auspices of UNCTAD.

2.  Resolution on the entry into force of the United Nations convention on a Code of Conduct for Liner Conferences The United Nations Conference on Trade and Development; Expressing deep satisfaction that the preconditions for the entry into force in 1983 of the United Nations convention on a code of Conduct for Liner Conferences28 have been met, Expressing appreciation to those countries which have become contracting parties to the Convention, Conscious of the need for the developing countries to increase their shipping tonnage substantially in order to carry their equitable share of liner cargoes generated by their trade, 1.  Requests those countries, which have not yet done so to ratify the United Nations Convention on a Code of Conduct for Liner Conferences; 2.  Requests the Secretary-General of the United Nations to initiate with urgency the necessary measures to implement article 46 of the Convention pertaining to the establishment of the institutional machinery; 28

See United Nations Conference of Plenipotentiaries on a Code of Conduct for Liner Conferences, vol. II, Final Act (including the Convention and resolutions) and tonnage requirements (United Nations publication, Sales No.E.75.II.D.12).

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3.  Requests the Secretary-General of UNCTAD to take the necessary measures to provide technical guidance and assistance in the form of workshops, seminars, commentaries and so on, particularly to developing countries, to implement the provisions of the Convention; 4.  Calls upon all countries, which have ratified the Convention to take prompt measures for its implementation at the national level; 5.  Requests the Secretly-General of UNCTAD to prepare a comprehensive progress report on the implementation of the Convention by contracting States and to submit the report to the UNCTAD Committee on Shipping.

Item 13(c): Land-Locked and Island Developing Countries 1.  Resolution on landlocked developing countries The United Nations Conference on Trade and Development, Recognizing that the land-locked developing countries are generally among the very poorest of the developing countries and that, of the twenty-one land-locked developing countries, fifteen are also classified by the United Nations as least developed, Further recognizing that their geographical situation renders their economies particularly vulnerable and thus reduces their overall capacity to cope with the mounting challenges of extreme under development, Agreeing that the remoteness of most land-locked developing countries from markets, coupled with underdeveloped transport and communications infrastructures in developing transit countries, contributes to the high transport costs which theses countries must bear, Recognizing that there are accepted international conventions on transit trade, the implementation of which would contribute to the elimination of some of the bottle-necks that are currently restricting regional transit traffic, 1.  Reaffirms section IV of its resolution 98(IV) of 31 May 1976, and resolution 123(V) of 3 June 1979, on specific action related to the particular needs and problems of land-locked developing countries; 2.  Express its deep concern at the grave economic situation of the land-locked developing countries and lack of implementation of the above-mentioned resolutions and urges the international community to take all the necessary steps to implement them fully; 3.  Agrees that measures to deal with the transit problems of land-locked countries require effective cooperation and close collaboration between land-locked countries and their transit countries. Where any study or programme of action is to be undertaken in or in relation to any transit country, such study or programme of action will be carried out in consultation with and with the approval of the transit country concerned; 4.  Requests the international community to provide financial assistance for specific action for improving transit-transport infrastructures in land-locked and transit countries; 5. Agrees on the following further specific action and programmes related to the particular needs and problems of land-locked developed countries and requests the international community to provide financial and technical assistance for their implementation; (a)  Rehabilitation and preventive maintenance of transit transport facilities in land-locked countries and their transit neighbours, including the provision of spare parts, tools and building materials; (b)  Implementation of training programmes for all involved in transit transports operations at all levels; (c)  Provision of all-weather through-road transport routes linking the main commercial centres in the land-locked countries and the seaports, and the provision of vehicles;

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(d)  Assistance, if requested by the Governments concerned, in the effective implementation of road transit transport agreements between land-locked developing countries and their transit neighbours related to such areas as transit fees, customs procedures, vehicle dimensions, axle loading specifications, the equitable sharing of inter-State traffic, road permits and visas; (e)  Extension where possible of the existing rail system in transit countries into the land-locked developing countries to avoid the need for trans-shipments, provision of locomotives, rolling stock and railway marshalling facilities; (f)  Provision of storage facilities in both the ports and the rail terminals in the land-locked country and the provision of adequate berthing and handling facilities; (g)  Assistance in harmonizing transit documentation and procedures, technical standards and management practices and in arranging, where appropriate, the shared use of railway wagons and of port terminal facilities, as well as the sharing of capital investment on new physical infrastructure created in transit countries primarily for the use of land-locked developing countries; (h)  Extension and strengthening of runways at airports, provision of adequate navigational aid and cargo-handling facilities, improvement of the surface collection and distribution system, training of skilled manpower and the support, where necessary, of subregional and regional cooperation arrangements in air-freighting operations; (i)  Improvement of communications links between various ports and commercial centres in land-locked countries between ports and overseas markets; (j) Support in the assessment of the potentials for restructuring the economies of land-locked developing countries through the promotion of import substitution industries producing high-bulk, low-value products and developing high-value, low-bulk products for export; (k) Provision of easier access to the markets of developed countries for all products of land-locked developing countries; (l)  Assistance for institutional arrangements within land-locked countries and, where necessary, between them and their transit neighbours, to oversee the overall coordination of transit transport planning policy and operations as required; (m)  Assistance in the preparation and implementation of subregional and regional schemes where necessary and upon request of the concerned Governments, in various aspects of economic activities such as trade, production, development of physical infrastructure and exploitation of energy and other natural resources; (n)  Where the projects are related to, or have a bearing on, transit transport infrastructure (roads, railways, waterways, ports, etc.) in the transit countries, a joint request by the concerned land-locked and transit countries would have to be made; (o) The granting of benefits to land-locked developing countries by taking the prices of exports of these countries as a basis for the levying of imports duties with a view to compensating the higher transport costs which these countries incur to export their products to the centres of consumption; 6.  Invites Member States to ratify and implement the relevant provisions of the international conventions on transit trade; 7.  Requests developed countries, and developing countries in a position to do so, to pledge substantial contributions to the United Nations Special Fund for Land-locked Developing Countries, which is currently administered by the Administrator of the United Nations Development Programme in close collaboration with the Secretary-General of UNCTAD;

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8.  Requests the Secretary-General of UNCTAD to strengthen further the UNCTAD technical advisory services in order: (a)  To review on a continuous basis the transit transport situation, facilities and arrangements in different areas with a view to facilitating government action for improving transport procedures and regulations, and transit transport and port infrastructure; (b) To provide technical support for the improvement of administrative and managerial capacity to meet the requirements of an efficient transit system; (c)  To identify training needs and opportunities required for an efficient operation of transit facilities and to develop a comprehensive training programme; (d)  To assist the Governments of land-locked countries in the assessment of the potential for restructuring their economies through the promotion of import substituting industries producing high-bulk, low-value goods and developing high-value, low-bulk goods for export; 9.  Recommends suitable ways of financing the above advisory services keeping in mind the need for continuity; 10. Invites, UNCTAD being the main United Nations body focusing on the problems of land-locked developing countries, the Secretary-General of UNCTAD to hold periodic meetings and/or consultations in order to review the implementation of the programme of specific action in favour of land-locked developing countries. These could conveniently be timed to take place before the debate on land-locked developing countries, which takes place regularly in the General Assembly.

2.  Resolution on island developing countries The United Nations Conference on Trade and Development, Recalling General Assembly resolutions 35/61 of 5 December 1980 and 37/206 of 20 December 1982, Noting with concern that very few significant initiatives have so far been taken for the implementation of specific actions envisaged in Conference resolutions 98(IV) of 31 May 1976 and 111 (V) of 3 June 1979, Reiterating the urgency of putting into effect the programme of specific action in favour of island developing countries envisaged in those Conference resolutions, Recognizing the difficult problems faced by island developing countries, due mainly to their smallness, remoteness, constraints in transport, great distance from market centres, highly limited internal market, lack of natural resources, heavy dependence on a few commodities, shortage of administrative personnel and heavy financial burdens, Taking into account the fact that a number of island developing countries are small, or archipelagic, which makes the provision of services difficult and at a very high overhead cost, because of inter-island distances, 1.  Urges the international community to provide appropriate support, both financial and technical, for: (a)  The development of infrastructure, feeder and inter-island services, by sea and air, of island developing countries; (b)  The development of telecommunications serving island developing countries, including access on appropriate terms to facilities such as satellites; (c)  Specific studies concerning the types and combinations of air and sea transport services and telecommunications best suited to their needs in the light of changing circumstances, including assistance in the design, construction and testing under operational conditions of

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new types of ship, aircraft or other equipment designed to meet the specific needs of island developing countries; (d)  The planning of the management of disaster risk and integrating disaster mitigation or prevention into their development strategies, including the examination of the possibility of setting up regional or interregional disaster insurance schemes or funds; (e)  The transfer and acquisition of technology needed to derive benefits from their marine resources, particularly resources of their exclusive economic zones; (f)  The acquisition of appropriate equipment for the development of land bases in the island developing countries necessary to increase local value-added from the exploitation of the oceans; (g)  Help in achieving greater self-reliance in their priority sectors, in particular in the areas of food and agriculture, energy, fishing, industry, transport, and tourism; (h)  Studies and technical assistance efforts to assist small islands in planning rationally in order to deal with the peculiar problems which their precarious environment and rugged topography impose upon human settlement; (i)  Population and manpower policies to cope with the economic problems leading to and resulting from emigration, including in particular the reverse transfer of technology; (j)  The establishment of an information exchange system at the regional and global levels, including a systematic bibliographic reference service on island developing countries; 2.  Urges the international community to provide financial support whenever necessary with a view to assisting island developing countries to participate adequately in international conferences; 3.  Urges the international financial institutions to make a special effort to increase substantially the flow of real resources to these countries, by policies and credit criteria, which are appropriate to their economic and financial situation; 4.  Requests UNCTAD, in collaboration with the International Civil Aviation Organization and the appropriate regional institutions, to study the policy issues involved in the development of air transport services as described in paragraph 9 of Conference resolution 111 (V); 5.  Urges that the availability of task forces to provide technical assistance to island developing countries at short notice be enhanced; 6.  Requests the Secretary-General of UNCTAD, in cooperation with regional and other competent institutions, to continue its programme of in-depth studies of the common problems of island economies and the constraints inhibiting their economic growth and development, with a view to proposing concrete specific actions, taking into account, inter alia, the geographical factors, the traditional island life and institutions, physical environment, development priorities and the problems of island countries in the international economy; 7.  Requests the UNCTAD secretariat to strengthen its role, not only as the focal point for specific action at the global level in favour of island developing countries, but also, where necessary, to act as a catalyst in this regard. Appropriate regional and subregional organizations, particularly regional commissions, should collaborate fully with UNCTAD in the spirit of the regional and subregional approach; 8.  Requests the UNCTAD secretariat to continue its work in the field of inter-island and feeder transport, by air and sea, of island developing countries, paying due attention to the opportunities provided by progress in communications; 9.  Requests the UNCTAD secretariat, in cooperation with the Office of the United Nations Disaster Relief Coordinator, and other appropriate agencies of the United Nations system, to expand its activities related to the foreign sector aspects of natural disaster prevention and

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reconstruction measures, with a view to mitigating the immediate impact of such disasters on the balance-of-payments of the island developing countries, given the openness of their economies; 10.  Requests the Secretary-General of UNCTAD to hold periodic meetings and/or consultations in order to review the implementation of the programme of specific action in favour of island developing countries. These could conveniently be timed to take place before the debate on island developing countries, which normally takes place every two years in the General Assembly of the United Nations.

Item 13(d): Trade relations among countries having different economic and social systems and all trade flows resulting therefrom 1.  The socialist countries of Eastern Europe play an important role within the framework of the international trading system. The importance of economic relations between countries with different economic and social systems, particularly between the developing countries and the socialist countries of Eastern Europe, is further recognized. 2.  Although trade between some developing countries of Eastern Europe has been increasing, there is still greater scope for substantial expansion of such trade and increased economic relations with developing countries. Despite the efforts made so far in UNCTAD, it has not been possible to adopt the resolution pending on the subject.29 In this connection, there is an urgent need to conclude the negotiations with a view to finalizing this resolution at the Conference, taking into consideration the elements mentioned in paragraphs 3 and 4 below. 3.  The socialist countries of Eastern Europe should take the following measures: (a)  Contribute fully and effectively to the efforts of the developing countries to diversify and intensity their trade; (b)  Embody appropriate positive measures in their economic plans for providing a growing share for imports from developing countries, in particular of manufactures and semimanufactures. Their schemes under the generalized system of preferences should be further improved, keeping in mind the basic objectives of the system; (c)  Improve the volume and the quality of their economic assistance and fulfil the targets for the transfer of resources as stipulated in the International Development Strategy for the Third United Nations Development Decade and the Substantial New Programme of Action for the 1980s for the Least Developed Countries; (d)  Fully implement Trade and Development Board resolution 165 (S-IX) of 11 March 1978; (e)  Improve the terms and conditions of lending to developing countries; (f)  Facilitate the financing of developing country projects (including tripartite cooperation), and facilitate the transferability of roubles in trade operations, and also identify concrete trade opportunities resulting from the multilateral schemes of the Council for Mutual Economic Assistance; (g)  Increase the share of convertible currencies in the total resources earmarked for financial assistance to developing countries. 4.  The UNCTAD secretariat should be requested in its work programme to give full support to Member States in strengthening the trade and economic relations between the developing countries and the socialist countries of Eastern Europe, including the intensification of operational activities, which should lead to the expansion of trade of developing countries.

29 See the informal text annexed to Trade and Development Board resolution 243 (XXIII) of 9 October 1981.

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Item 13(e): Economic cooperation among developing countries Decision on economic cooperation among developing countries The United Nations Conference on Trade and Development, Decides: (a)  To support the full implementation of its resolution 127 (V) of 3 June 1979 and reiterate the need for a substantial technical and administrative contribution by the secretariat of UNCTAD and other competent international organizations, particularly in relation to: (i)  The establishment of the global system of trade preference among developing countries ensuring the effective participation of the interested member countries of the Group of 77; (ii)  Cooperation between the State trading organizations of developing countries; (iii) The establishment of multinational marketing enterprises among developing countries; (iv) The promotion of multinational production enterprises among developing countries; (v)  Assistance to subregional, regional and interregional economic cooperation and integration groupings of developing countries, including measures of support to the cooperation programme adopted by the interim committee of the secretariats of those groupings,30 (vi) Support for monetary and financial cooperation among developing countries, including the feasibility study related to the creation of a ‘Bank for Developing Countries’,31 initiatives related to mechanisms for export finance; the role of financial development institutions in the promotion of projects on economic cooperation among developing countries, and the establishment of multilateral payment arrangements among developing countries; (b) To request the UNCTAD Committee on Economic Cooperation among Developing Countries at its third regular session, giving due regard to the Arusha Programme of Action 32 to consider increasing the support of UNCTAD for the implementation of the programmes on economic cooperation among developing countries in general, including the Caracas Programme of Action,33 (c) To urge other competent international bodies, such as the Food and Agriculture Organization of the United Nations, the General Agreement on Tariffs and Trade, the International Trade Centre UNCTAD/GATT, the United Nations Development Programme, the United Nations Industrial Development Organization, the competent regional and subregional organizations of developing countries, as appropriate, and the regional commissions, as well as the developed countries, to support the full implementation of economic

30 The Programme for Cooperation among Economic Cooperation and Integration Groupings of Developing Countries was established by the Working Party on Trade Expansion and Regional Economic Integration among Developing Countries at its second session, held at Geneva from 28 June to 2 July 1982 (see part two of the report of the Working Party (TD/B/C.7/55). 31 See UNCTAD/OSG/240. 32 Arusha Programme of Action for Collective Self-Reliance and Framework for Negotiations (Proceedings… Fifth Session, vol. I, annex VI). 33 See ‘Report of the High-Level Conference on Economic Cooperation among Developing Countries, Caracas, 13–19 May 1981 (A/36/333 and Corr.1).

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cooperation programmes among developing countries, as a contribution towards the attainment of the objectives of the Third United Nations Development Decade.

Item 13(f): Assistance to national liberation movements recognized by regional intergovernmental organizations 1.  Resolution on assistance to the Palestinian people The United Nations Conference on Trade and Development, Recalling its resolution 109(V) of 1 June 1979, Recalling also Trade and Development Board resolution 239 (XXIII) of 9 October 1981, Gravely concerned at the ever-increasing number of Israeli colonies in the occupied Palestinian territories of the West Bank and in the Gaza Strip, Alarmed by the deterioration, as a result of the Israeli occupation, in the living conditions of the Palestinian people in the occupied Palestinian territories, Alarmed also at the imposed Israeli domination of the foreign trade of the occupied Palestinian territories, Recognizing the need to monitor and investigate closely the policies of the Israeli occupation authorities hampering the economic development of the occupied Palestinian territories, 1.  Requests the Secretary-General of UNCTAD to set up a special economic unit to monitor and investigate the policies of the Israeli occupation authorities mentioned above; 2.  Also requests the Secretary-General of UNCTAD to report periodically to the Trade and Development Board and the General Assembly, through the Economic and Social Council, on the progress achieved in the implementation of the present resolution, including the work done by the economic unit referred to in paragraph 1 above.

2.  Resolution on assistance to the peoples of Namibia and South Africa The United Nations Conference on Trade and Development, Recalling its resolution 109 (V) of 1 June 1979 on assistance to national liberation movements recognized by regional intergovernmental organizations. Recalling also resolution 238 (XXIII) of 9 October 1981 of the Trade and Development Board, in which the Board, inter alia, requested the Secretary-General of UNCTAD to consult and prepare with other United Nations organizations a comprehensive and in-depth social and economic survey of Namibia along the lines of the 1980 study on Zimbabwe conducted by UNCTAD 34 as executing agency for the United Nations Development Programme, Reaffirming the importance of providing continuing and increased assistance by the United Nations organizations to national liberation movements recognized by regional intergovernmental organizations in order to prepare them effectively for the eventual control and management of their national affairs after national independence, and the need for accelerated action in this regard, Stressing the need for the early completion by UNCTAD of the survey of the economic conditions of the Namibian people resulting from the illegal occupation of Namibia by the racist regime of South Africa, 1.  Requests the Secretary-General of UNCTAD to intensify work with regard to the in-depth study and a comprehensive survey of the economic and social conditions of the Namibian people and the oppressed people of South Africa;

34

United Nations, Zimbabwe: Towards a New Order—An Economic and Social Survey (1980).

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2.  Calls upon the United Nations Development Programme to attach high priority to the programme of UNCTAD in the areas of providing assistance to national liberation movements recognized by the Organization of African Unity and the United Nations; 3.  Also requests the United Nations Council for Namibia to collaborate with the UNCTAD secretariat in preparing a comprehensive social and economic survey of Namibia along the lines of the study on Zimbabwe; 4.  Requests the Secretary-General of UNCTAD, in carrying out this task, to collaborate with these national liberation movements, namely, the South West Africa People’s Organization, the African National Congress and the Pan-Africanist Congress, and to consult with the relevant Untied Nations agencies and bodies, as well as the Liberation Committee of the Organization of African Unity.

Item 13(g): Institutional matters Declaration on institutional matters Position paper submitted by the Group of 77 1.  It is concluded that decisions have been taken at the level of the Board, the Conference and the General Assembly, on the need for a comprehensive organization to deal in an integrated manner with the problems of trade, development and related matters. What remains to be made is a specific follow-up decision. 2.  It is therefore recommended that the General Assembly should reiterate: (a)  That the existing institutions, however closely coordinated their activities and operational procedures may be, would not be capable of discharging the envisioned role of a comprehensive organization to deal with the problems of trade, development and related matters; (b)  That unless such as comprehensive organization comes into being and with the least possible delay, the pressing problems of developing countries would not be dealt with effectively and in an integrated manner, and this would be to the detriment of their efforts directed towards their development and progress. 3.  It is concluded that the resolutions of the Conference, in particular resolutions 81 (III) of 20 May 1972, 90 (IV) of 30 May 1976 and 114 (V) of 3 June 1979, together with the relevant recommendations of the Ad Hoc Group of Experts and General Assembly resolution 32/197 of 20 December 1977 on restructuring and the New International Economic Order have recognized the need to strengthen the functioning of UNCTAD in the light of its recognized role as a negotiating forum, as an effective instrument for review, and as a major element in the restructuring process. 4.  It is thus recommended: (a)  That the General Assembly should adopt a resolution giving a specific and clear mandate to the Trade and Development Board to undertake an in-depth study of the ways and means of bringing into existence a comprehensive international organization to deal, in an integrated manner, with all aspects of trade and development and related matters. In undertaking such a study the Board may adopt the most practical and effective procedure, not excluding consultants, and as appropriate shall consult and take into account the competence, functions and operations of existing relevant organizations and bodies in the United Nations system, including regional commissions. A substantial report hereon will be submitted to the Board at the (second) part of its session in 1985; (b)  That, pending the final outcome of the above study, the Secretary-General of the United Nations should be requested to conclude consultations speedily with the Secretary-General of

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UNCTAD and promptly introduce specific measures to implement previous recommendations contained in various resolutions of the Conference and endorsed by the General Assembly, inter alia: (i) That UNCTAD should be granted operational flexibility on budgetary, financial and administrative matters; (ii) That commensurate authority on budgetary and operational matters should be delegated to the Secretary-General of UNCTAD; (iii) The Secretary-General of UNCTAD should extend the scope of contacts and consultations with regional commissions and heads of other relevant intergovernmental organizations, to avoid duplication and ensure coordination as called for in Trade and Development Board resolution 45(VII) of 21 September 1968; (c)  That the Conference should decide on the establishment of an appropriate high-level consultation machinery in UNCTAD which should meet at ministerial level at least once in two years and with a previously agreed agenda; (d)  That the Conference should reaffirm the important role that UNCTAD is required to play in providing technical assistance to developing countries in the fields of trade and development, and urges that adequate resources be made available to it for that purpose; (e)  That the Conference should also take a decision clarifying the terms of reference of the Working Party on the Medium-term Plan and the Programme Budget and prescribing the procedures for external and internal evaluation, always keeping in mind that the Working party should be an instrument to help facilitate the effective functioning of UNCTAD and its subsidiary bodies, and the implementation of the decisions and work programme of UNCTAD; (f)  That there should be a clear understanding that nothing contained in the above paragraphs should in any way contradict or impede the achievement of the basis objectives or the establishment of a comprehensive organization as envisaged in General Assembly resolution 1995 (XIX) of 30 December 1964, as amended; 5.  Finally, since the in-depth study mentioned above would be complex and complicated, and therefore require ample time to accomplish, the Conference will consider the item further at its seventh session, for which the Secretary-General of UNCTAD and the Trade and Development Board will submit appropriate substantive reports.

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6.  Sixth Ministerial Meeting of the Group of 77, Havana, 20–25 April 1987, in preparation for UNCTAD VII, Geneva, 9 July–3 August 1987 a.  The Havana Declaration and Assessment and Proposal by the Group of 77 relating to UNCTAD VII Content Havana Declaration Assessment and Proposal by the Group of 77 Relating to UNCTAD VII Part I Assessment 1. Introduction 2. Overall trends 3.  Resources for development, including financial, and related monetary questions 4. Commodities 5. International trade 6.  Problems of the least developed countries, bearing in mind the Substantial New Programme of Action for the 1980s for the Least Developed Countries Part II Policies and Measures, including those related to the Interdependence of Issues 1.  Resources for development, including financial and related monetary questions 2. Commodities 3. International trade 4.  Problems of the least developed countries, bearing in mind the Substantial New Programme of Action for the 1980s for the Least Development Countries 5.  Interdependence of issues

Havana Declaration We, the Ministers of the Group of 77, Having assembled in Havana, Cuba, from 20 to 25 April 1987, for our Sixth Ministerial Meeting, Being convinced of the importance of reviewing and stating our collective appraisal of the world economic situation and of the perspectives for the development of our peoples’ welfare, Bearing in mind the Declaration of our three regional groups at their recent Ministers Meetings in Dhaka, Addis Ababa and San José, Adopt the following Declaration as a basis for concerted action in our economic relations with the developed countries and in our mutual economic cooperation and call upon the international community as a whole to work together for economic and social progress: 1.  The 1980s have been the lost decade of development. The world economy is beset by contradictions and faces a crisis. The persistent stagnation of economic growth has severely retarded economic and social progress and, in several countries, has thrown that process into reverse. The inadequacies and inequities of the international economic system have led to adverse results, stifling trade, development and employment, instead of promoting them. Undue risk, uncertainty

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and unpredictability in the international economic environment have become major obstacles to national efforts to achieve long-term economic and social objectives. 2.  While no country has been immune from these phenomena, the developing countries have been hardest hit. In particular, the least developed countries and sub-Saharan African countries have suffered most. The economic situation in these countries still remains critical and their peoples are under the threat of hunger and starvation. It has become increasingly difficult for any developing country to pursue policies of self-reliant and equitable development, aimed at elimination of poverty, enhancement of human capacities, progressive modernization of the productive apparatus and enlargement of opportunities for participation in economic activity and in the benefits derived from it. Particular difficulties are experienced by the Palestinian people, whose living conditions have been deteriorating as a result of the Israeli occupation and who urgently need to be liberated from their occupation to enable them to develop their national economy; and by the people of Southern Africa, and Namibia, particularly those of the frontline States whose painstakingly developed infrastructure and legitimate development programmes are undermined by the South African regime’s destabilization policy. 3.  This situation is beset with economic, social and political tensions, within and among countries. It poses a serious threat to democracy, social stability and international peace and security. Its reversal should command the political commitment and cooperation of all nations, which must work together to build an international economic system based on the principles of equity and justice that would contribute to the establishment of the New International Economic Order. 4.  This effort must be founded on the strict observance of the inalienable right of every State to social and economic development, to choose its economic and social system and to promote the welfare of its people in accordance with national plans and policies. It is unacceptable that this right should be constrained by the application by other States of economic measures intended to exert political and economic coercion, for purposes incompatible with the Charter of the United Nations and in violation of multilateral and bilateral undertakings and international law. 5.  The members of the Group of 77 assume their responsibilities to strive for their own development. They are also determined to continue to strengthen their mutual economic cooperation. They are convinced that the effective solidarity of the Group strengthens its members, both in their national development efforts and in their external economic relations. 6.  The members of the Group of 77 expect the developed countries to assume their responsibilities in the present world economic crisis, and to redesign their policies in order to contribute to an external environment more predictable and more supportive of growth and development. Those countries should realize that, by supporting the development process of developing countries, they can contribute effectively to revitalizing the world economy and thus to resolving their own economic problems, including persistently high unemployment.

I 7.  The crisis in the world economy has many dramatic manifestations. For the developing countries, these include: (a)  The collapse of commodity prices and deteriorating terms of trade, which have deprived them to export earnings needed to sustain their development and to service their debt; (b)  The intolerable debt burden which has compelled many of them to adopt, with high social and political costs, adjustment programmes constraining their development potential. The debt cannot be serviced and repaid under present conditions and without sustained economic development;

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(c)  The stagnation of official development assistance and the sharp contraction in financial flows, particularly from commercial banks; (d)  All the previous factors have led to a net transfer of resources from developing to developed countries; (e) The proliferation of protectionist and distortive measures and policies in developed market-economy countries, which are impeding developing country exports and obstructing structural adjustments which would permit the expansion of those exports; (f)  The erosion of respect for the disciplines of the multilateral trading system, which exposes the developing countries to arbitrary obstacles to their trade and leaves them without redress; (g)  The aggravation of the structural problems of the least developed countries, especially the land-locked and island developing countries whose unique problems and inherent disadvantages have a particularly negative impact on their development. 8.  The manifestations of the crisis in the external environment for development also include volatile and misaligned exchange rates of major currencies; high interest rates in real terms; massive trade imbalances among the major economic powers and consequent tensions in the international trading system. 9.  The developed countries themselves are suffering from uneven and slow growth, and high levels of unemployment, resulting in intensification of protectionist measures and contraction of export markets for developing countries.

II 10.  The economic crisis is structural in nature. It has been aggravated by the long-term macroeconomic policies of developed countries. 11.  Developed countries have maintained policies that negatively affect the international economic environment, weaken demand for developing countries’ exports, put a downward pressure on commodity prices and aggravate the debt problem. The control of inflation, which is cited as a positive result of their policy stance, has, in fact, been brought about largely through the collapse of commodity and oil prices. 12. Multilateralism has been on the wane. The stalemate in economic negotiations between developing and developed countries has hardened. The weakening of multilateral cooperation for development has led to a growing asymmetry in burden sharing and adjustment efforts between developing and developed countries. Many developed countries have shown a market preference for bilateralism in their external economic relations, resorting increasingly to such policies for political purposes. 13.  Developing countries have not received substantial external resources commensurate with their development needs. This situation is illustrated in the inadequate implementation of the United Nations Programme of Action for African Economic Recovery and Development (UNPAAERD) and more generally in the plight of the least developed countries, whose efforts at domestic resource mobilization will not achieve their development objectives without substantial additional external resources and increased export earnings. 14.  Such a crisis coexists with important changes in the international economy. New and powerful actors are emerging, producing a multi-polar economic world. There is increasing interaction among countries with different economic systems. The economic interdependence of all countries has been intensified by the increased share of external trade in national economic activity and by the internationalization of production and capital. Transnational conglomerates have become powerful actors enjoying unprecedented economies of scale and scope. A new wave of technologies is radically altering patterns of demand, production and trade. The concentrated

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control of these technologies is creating new strains in international economic relations. As a result of these changes the world economy is becoming more complex. 15.  In the present circumstances the potential for growth in the developing countries cannot be realized. If, however, external constraints are removed and the required systematic changes made, they can contribute to the sustained expansion of world trade and growth in the foreseeable future.

III 16.  The post-war international economic system has ceased to serve adequately its stated objectives of promoting worldwide economic and social progress. 17.  There has not been a meaningful and comprehensive policy initiative to enhance global economic cooperation, on the basis of interdependence, equity and shared responsibilities. Instead, a new tendency has emerged in some quarters of the developed countries to play down the influence of the external economic environment on the development process and to insist on the primacy of domestic policy reform based on the efficacy of spontaneous market forces alone. This approach, not even applied by its major proponents, is inadequate to address development problems, carries the seeds of social and political instability and ignores the complexity of the contemporary world economy. This approach enables the transnational corporations move freely goods, raw materials, services, data and capital across national frontiers, at their discretion. 18.  The international community should join its forces and engage in dialogue to work out the characteristics and mechanisms of a comprehensive international economic system, based on the principles of equity, justice, harmony and universality and on the sovereign rights of States. Development, growth, employment and social progress should be its central objectives. The system should give full recognition to the interdependence between money, finance, trade and development. 19.  The expansion and diversification of trade, including trade among developing countries and among countries having different economic and social systems, is one of the most important instrumentalities for achieving these objectives. Trade expansion should be based on the principles of multilateralism and non-discrimination and be pursued within a framework of cooperative interaction among States. The ability of developing countries to expand trade presupposes expanded market access for their exports and increased availability of financial resources. Liberalization could only be pursued to advance their development objectives. 20.  Such a framework for promoting development, growth and trade must have a sound and equitable counterpart in the monetary and financial spheres. This should facilitate a durable, global and equitable solution to the debt crisis. It should secure a substantial increase in flows of financial resources for development on an assured, continuous and predictable basis. Above all, it should lead to a substantially transformed international economic environment, responsive to and supportive of the process of development. 21.  Development would be a fragile goal without peace. Peace without development would be unattainable. An international economic system, having as its central objectives development, growth, employment, and social progress will promote peace and security. Such a system should facilitate the channeling of resources released by disarmament into productive use and consumption to better the human condition.

IV 22.  UNCTAD is an institution born of the collective will of the international community. Its universal character, its historic development orientation and its unique, cross-sectoral

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and inter-disciplinary approach make UNCTAD an important link in the chain of international economic relationships. The crucial need for development calls for the enhancement of UNCTAD’s effectiveness and its responsiveness to current and future problems, as well as for maintaining the integrity of its mandate and its functions and of the means of fulfil them. The seventh session of the United Nations Conference on Trade and Development provides the member States with a signal opportunity to strengthen multilateral cooperation for development and to strengthen the institution of UNCTAD itself. The results of UNCTAD VII will have an important influence on the attitude of the developing countries towards other international negotiations and activities.

V 23.  Developing countries cannot afford to reply only on external impulses to overcome the serious economic and social crises confronting them. The implementation of the Arusha Programme for Collective Self-Reliance and the Caracas Plan of Action has, therefore, acquired greater urgency. It is imperative to further expand and deepen economic cooperation among developing countries (ECDC) as an integral part of the efforts to promote a restructuring of international economic relations. The Global System of Trade Preferences among developing countries (GSTP) is the most important ECDC activity on which concrete and substantial progress is under way. Effective steps should be taken to complete the first round of negotiations under the GSTP at the Ministerial Meeting in Belgrade, as visualized in the Brasilia Declaration. 24.  We, the Ministers of the Group of 77, have presented our appraisal of the current international economic situation and outlined our approach towards the harmonious and equitable reconstruction of the international economic relations aimed at ensuring development and employment for all. We have done this in the hope that our partners in UNCTAD would share with us their perceptions and approach. We believe that it is possible to further our cooperative search for a stable system of international economic relations, without necessarily compromising on our respective world views. 25.  We believe that all the States members of UNCTAD share common interests and objectives. We also believe that we have a common stake in solving the present crisis. We expect our partners, particularly those who have relatively greater economic strength, to muster sufficient political will and seize the opportunity provided by UNCTAD VII. This occasion should be harnessed not only to launch a dialogue in a wider context for longer-rage objectives but also to agree upon concrete measures in specific areas of the agenda of the Conference, which need urgent solutions.

ASSESSMENT AND PROPOSAL BY THE GROUP OF 77 RELATING TO UNCTAD VII Part I Assessment This assessment presents the views, expressions and analysis of the Group of 77 Ministers on the international economic environment, which form the basis and rationale for the proposals, policies and measures adopted by the Ministers. As the common position of the Group of 77 on the international economic situation, this assessment has been made to facilitate the understanding of the other Groups and for a constructive dialogue and consultations prior to the commencement of negotiations at the seventh session of the United Nations Conference on Trade and Development.

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1. Introduction 1.  On the eve of UNCTAD VI the Group of 77, in placing before the international community the Buenos Aires Platform, summarized the then prevailing economic situation and outlook in the following words: ‘The world economy… is engulfed in the most pervasive and dangerous crisis since the 1930s. This crisis has already imposed incalculable costs on all groups of countries. It has taken a heavy toll of the international trade, monetary and financial systems. Recent indications point to some alleviation of economic stagnation in certain developed countries, but a sustained long-term recovery is nowhere in sight. The essential elements of the crisis remain unabated and the situation is displaying all the symptoms of a global depression. Unless resolved, the crisis will inflict even greater damage on the world economy, with far-reaching implications for peace and stability.’1 2.  On the eve of UNCTAD VII, none of the essential elements which have characterized the deepening malaise in the global economy has been resolved. 3.  The developing world is facing a crisis of unprecedented gravity. In many developing countries the development process has been severely retarded. There is a widespread debt crisis. Primary commodity prices have fallen to unprecedented levels. Real interest rates are extraordinarily high, exchange rates volatile. The flow of financial resources, including ODA, has been much reduced and in fact several countries suffer substantial net outflows. Investment in infrastructure, machinery, and human resources has been drastically cut. Societies and political systems are under acute strain. The least developed countries, because of their structural vulnerability, are the most seriously affected. 4.  The policies of the major market-economy countries continue to compound this grip situation, itself a product of the interaction of those policies with the historical legacy of uneven world development manifested in asymmetrical capabilities as between developed and developing countries. Instead of providing remedies, industrialized countries with the capacity to do so are abdicating their responsibilities behind dogmatic assertions of faith in market forces and unrealistic assessments of the developing countries’ ability to cope with the adverse external economic environment. 5.  While the oil price decline of the last two years led to sizeable savings on the part of the industrialized countries, there has not been even an attempt to recycle the funds so saved for the purpose of development, and to offset illiquidity in many developing economies. Nor has there been a corresponding reduction in prices of the industrialized countries’ manufactures. Taken together with the fall in prices of other commodities in real terms, this combination of factors has enabled the industrialized economies to keep inflation rates low without stimulating growth in developing countries, a situation made inevitable due to the enormously deflationary effect of unrequited reverse flows of real resources. 6.  The development of their societies is the primary responsibility of developing countries and it is their objective to restructure themselves to reduce their vulnerability and derive advantage from producing for the world market. The deterioration of their external environment which underlines the present crisis is beyond the control of the developing countries. Neither their own efforts nor market forces can provide a solution in the absence of a fundamental change in the attitudes and policies of the industrialized countries. 7.  Developing countries have a major stake in the proper functioning of the global economic system, since development itself is decisively conditioned by external trading and finance. The

1

Buenos Aires Platform, section II (Ministerial declaration), paragraph 2.

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Group of 77 believes that the arduously negotiated agenda for UNCTAD VII provides a timely and valuable opportunity to the international community to devise a coherent multilateral strategy for revitalizing development, growth and international trade in a more supportive international environment. 8.  It would be most unfortunate for the future prospects of a global economy if commitment to taking specific actions in several interrelated areas is delayed any longer. It would be even more unfortunate if the very painful and politically risky national policies and programmes already under way in the developing countries fail to produce positive results for these countries, as well as for the global economy, simply because those who have the power and the influence continue to hesitate to take measures in critical areas in need of immediate corrective action. 9.  The seventh session of UNCTAD will be an opportune occasion for the international community to examine the interdependence of the world economy and the consequences of the current economic situation for the trade and development of the developing countries. 10.  The Group of 77, guided by its firm belief in multilateralism, expresses a fervent hope that its submissions on the various items of the agreed agenda for UNCTAD VII will persuade all participants to agree to take specific action in the areas covered by the agenda which constitute the essential elements for revitalizing development, growth and international trade. The decisions emerging from UNCTAD VII will have an important influence on the attitude of the developing countries in regard to other international economic negotiations and activities.

2. Overall trends 11.  The past few years have witnessed widespread breakdowns of the development process and an international debt crisis of unprecedented breadth, duration and gravity. Most developing countries have suffered a sharp reduction in their pace of economic growth, and a number have undergone contraction. Per capita incomes have fallen back to levels surpassed a decade ago, both capital accumulation and living standards have been cut, and investment in human resources and standards of education, health and nutrition have also been adversely affected. Thus, both actual growth performance and future development prospects have been severely damaged. 12. This constitutes a crisis in development that is unprecedented in breadth and depth. Its underlying cause has been the deterioration of the external trading and financial environment. -  Real interest rates have become and remained extraordinarily steep. -  Commodity prices in real terms have collapsed to their lowest levels since the 1930s Great Depression. -  At the same time, developing countries have suffered a loss of export markets mainly due to the intensification of protectionism and the slowing of growth in their principal markets. -  Furthermore, as growth in developing countries has dropped, so has the dynamism of their mutual trade. -  ODA in real terms has stagnated. -  Exchange rates of the major world currencies have been volatile and misaligned and abnormal developments have occurred in current account imbalances. - There has been a sharp contraction of international liquidity in relation  to  the volume of trade and the needs of developing countries. 13.  Many developing countries, after incurring increased debt service charges as a result of higher interest rates and shrinkage of capacity to service debt due to the deterioration of their terms of trade and export earnings, have also suffered an abrupt collapse of lending by

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international capital markets, commercial banks in particular. Indeed, several countries have suffered net outflows amounting to a significant portion of GDP. Yet, developing countries, generally, have continued to fulfil their commitments to service their debts. 14.  While ODA flows from developed countries have barely reached half of the internationally agreed targets in recent years, military expenditure has amounted to more than 5 per cent of world output and 20 times the total net flows of ODA. This is one of the principal underlying reasons for the failure of the international economic system to provide adequate resources for development. The quality of ODA flows has deteriorated, both through the increased tendency to utilize them for commercial purposes and through a more severe conditionality. Furthermore, policies and procedures of developed donor countries have become more stringent for recipient countries. The levels of direct foreign investment and of officially supported export credits have also dropped, in part due to the cutbacks in investment levels in developing countries following the tightening of the balance-of-payments constraints. 15.  The combination of these adverse developments has caused the net flow of financial resources to developing countries to contract drastically and even to become strongly negative. In 1985 alone, developing countries made net outward transfers totaling $31 billion. This abnormal situation has forced a number of developing countries to resort to import compression, amounting to several percentage points of their national income, in order either to reduce their balance-ofpayments deficit or to seek persistent trade surpluses—a burden which is additional to the income losses incurred through terms-of-trade deterioration and loss of export market growth. Thus, for the first time after the colonial era, developing countries as a whole are again becoming net suppliers of resources to industrialized countries. This is a grave setback for the cause of development and threatens to further weaken the trade and payments system. 16.  The massive reduction in absorption of goods and services required to make up for the worsened trading environment and financial haemorrhage has not only disrupted the economies of developing countries, but also has accentuated social tensions, and, in a number of countries, led to a deterioration of living standards and aggravated food shortages; and as different segments of society have sought to protect their real incomes from being eroded, it has greatly fuelled inflationary pressures. 17.  At the international level, the extraction of trade surpluses from developing countries has intensified trade tensions and provided further impetus to the growth of protectionist pressure, by depressing output and employment in developed countries. 18.  Despite the need to open markets further to accommodate the adjustments being made by developing countries, new and more sophisticated trade restricting measures have been applied in addition to the level of protectionism that hampers exports from developing countries. 19.  The adjustment effort required of developing countries has been especially onerous because of the failure of developed countries to reverse the shocks that their restrictive macro-economic and trade policies have inflicted in developing countries. Consequently, real interest rates have remained extraordinarily high, and the demand for developing countries’ exports low; commodity prices and the terms of trade of developing countries have remained acutely depressed; and protectionism has continued to escalate, despite commitments regarding standstill and rollback. The only significant achievement of the policy stance of the developed countries has been the conquest of inflation—and this has for the most part been gained at the expense of developing countries, through the downswing in oil and non-oil commodity prices. 20.  Despite the public promotion by industrialized countries of market mechanisms as the solution to all problems, interventionism is increasingly resorted to by them to protect the lenders’ interests, and ‘concerted lending’ has been found expedient to avert default, to spread risks and to ‘discipline’ the borrower. Bank rescues have often resulted in an extension of public ownership,

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despite their emphasis on privatization, and creditors increasingly press developing countries to nationalize the foreign debts of the private sector. At the same time, market principles continue to be flagrantly violated by industrialized countries in international trade through a wide array of increasingly restrictive barriers, particularly in the case of manufactures, quotas and through subsidies and support-price schemes in the case of commodities. 21.  The interrelationship of money, finance, trade and development is still neglected in the attitudes and policies of the major developed countries. Thus, the absence of a coordinated and integrated set of policies directed at growth, together with deficiencies in the international monetary system which lacks a truly multilateral and coherent framework, have left the global economy deflated, and consequently unable to ensure the revitalization of international trade and development and mutually satisfactory resolution of the debt crisis. At the same time, the uneven approach being followed to the debt and development crisis, which parallels and reinforces other asymmetries and inequities in the international economic order, militates against a revival of the development process and renders the debt of developing countries a drag both on their development and on the growth of the world economy as a whole. It is clear that debt cannot be repaid under present conditions and without sustained economic development. 22.  Developing countries thus cannot share the complacency regarding world economic trends, which prevails in certain quarters in developed countries and stems from an inflexible attachment to restrictive and uncoordinated policies, regardless of their global consequences. These consequences are extremely dangerous for all; indeed they even pose a threat to the international financial system and the functioning and credibility of the international trading system. Thus, the general economic environment induced by the policies of major industrialized countries constitutes an obstacle to the development efforts of developing countries. 23.  At the same time, international control of the monetary situation is maintained by a few important industrialized countries, which attempt to influence it to favour their own national interest. International liquidity managed by the IMF is at its lowest level in years, and strains and stresses that have affected the financial system are becoming increasingly unmanageable. The case for an independent international reserve currency becomes stronger by the years, in view of the distortions and the stresses which continue to be experienced in the international monetary and trading systems, owing to the impossibility of reconciling national interests of one or a group of countries with those of the requirements of a sound, integrated international monetary, finance and trading system, serving the interests of all countries, developed as well as developing. 24.  On the trade front, it is important to ensure that the Uruguay Round of negotiations contribute to the emergence of a truly international trade regime conducive to growth and development with a clear recognition of the needs of developing countries. However, as these negotiations get under way, prospects of implementation of the commitments on standstill and rollback remain clouded. And if the renegotiated MFA is a portent at all, it is one of pressing the developing countries to retreat into their own backyard, instead of providing them with a reason to hope for the establishment of a just and efficient international division of labour in accordance with each country’s potential, as well as development. The aims of the Uruguay Round, even with the maximum effort at mutual multilateral accommodation, will be achieved only very partially, in the absence of commitments to deal with the essential elements of the global economy, which demand resolute action. 25.  The most serious development in the trade policy area in recent years has been the tendency on the part of some developed countries to seek linkages between trade in goods and other matters such as developing countries’ policies in regard to foreign direct investment, protection of intellectual property, services and fair labour standards. Trade which is a means of self-reliant development is in danger of becoming an instrument in the hands of certain developed countries for imposing unacceptable linkages on developing countries dependent on trade.

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26.  The evolution of trade relations with the socialist countries of Eastern Europe, involving a relatively small number of developing countries, offers promising prospects for widening and deepening the process. The recent policy initiatives regarding export of a complete package of capital and technology, oriented towards joint ventures with developing countries, can make a steady contribution to capital formation within the economies of the developing countries, if increased resources are made available to assist in the build-up of necessary infrastructure as well as research and development efforts in the developing countries concerned. 27. Commodity-dependent developing economies have been severely emasculated in recent years due to accumulating diminution of purchasing power resulting from prolonged decline in prices. For at least two decades, taking a long-term view of prospects for development of the countries dependent on commodity trade, concern has been expressed about how to achieve commodity-based development, price stabilization, market access and human resources development aimed at improving agricultural husbandry, processing and diversification, without which domestic measures and policies have a very limited impact. 28. It was to address these essential elements of a commodity dominated economy that UNCTAD succeeded in evolving a comprehensive Integrated Programme for Commodities, including the Common Fund. The IPC/Common Fund scheme is intended, in a fundamental manner, to achieve price stabilization that is consistent with development. Until this central issue is dealt with decisively, the industrialized countries must provide adequate compensatory finance resources. If international trade is to have a sound and durable basis on which it can be sustained with benefit for all participants, then it must have healthy trading partners with a permanent stake in it. The international community must make every possible effort to give the IPC and the Common Fund a fair chance for the package to make a distinct and significant contribution to this process. 29.  A cause of continuing concern to developing countries is the lack of concerted multilateral action in adopting and carrying out decisions of great importance to the international community. Small groups like the Group of Five agree among themselves on financial and monetary questions that affect the global economy as well as the economies of individual countries. There is a clear need to make full use of various multilateral institutions and for a established to handle economic issues, and the points of view of the developing world must no longer continue to be ignored.

3.  Resources for development, including financial and related monetary questions 30.  More than four years after the emergence of the crisis the approach of developed creditor countries to the debt problem continues to be inequitable, one-sided and partial. Furthermore, neither the operational policies nor the time frame which the IMF and the World Bank adopt and recommend to the developing countries in the monetary, financial and trade spheres are coherent, thus causing adverse effects on their economies. While ostensibly ‘case-by-case’, such approaches have in reality been based on certain uniform principles, which fail to address the fundamental problems: -   They have been designed exclusively to protect the short-term interests of creditors, and have been oblivious to differences in developing countries’ capacity to pay. -   They have wrongly assumed that the debt crisis stems from mismanagement by debtor countries, and have therefore ignored the need for symmetrical adjustment in developed and developing countries. -   They have been based on simplistic preconceptions regarding appropriate policies, which fail to take due account of differences in the stage of development reached and in social and political conditions.

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-   Instead of providing debtor countries with sufficient resources to allow them to strengthen and restructure their productive capacities, they have required the economies of debtors to be tightly squeezed to generate an outward transfer of resources. This has led furthermore to a negative social impact affecting the stability needed for sustained economic growth. 31.  As a result of these flaws, responsibilities for dealing with debt problems have to be equitably distributed between the various parties involved:  the adjustment costs and the economic and social costs of debt service have been borne exclusively by the developing debtor countries. Maturity, grace and consolidation periods have remained short. The supply of new finance has sufficed only to keep debtor countries current on interest payments, allowing little or no margin for income growth even in per capita terms. This has been accompanied by the imposition of rigid and inappropriate conditions. 32.  As the room for contractionary adjustment has become exhausted and the limits of political and social tolerance reached or even exceeded, recognition in principle has at last been given to the fact that, without resuming development, debtors will not be able to meet their obligations in the long run regardless of their aspiration to do so; and moreover, that without external resources, development and growth cannot be revived. However, there is a sheer contradiction between this recognition in principle of the need to place growth and development at the centre of the debt strategy and the continued calls upon developing countries to make further restrictive adjustments. The Group of 77 cannot but perceive an ironic note in these calls when developing countries are forced to transfer more resources to developed countries than they receive from them. 33.  The inadequacy and insufficiency of recent initiatives such as the Baker Plan are now fully evident. Their underlying approach is not consistent with the international development strategy. Such approaches merely seek to continue the shift towards laissez-faire policies in developing countries, by making available only a modest level of ‘involuntary lending’ by banks and, now that the IMF has become a net taker of funds from the developing world, giving an enhanced role to the World Bank. They therefore fail to provide a meaningful strategy, which would be commensurate with the scale and nature of the crisis and capable of restoring creditworthiness and the momentum of growth and development. They continue to misplace the onus of adjustment action on debtor countries instead of linking action on the debt front with action to revitalize the world economy as a whole. The latter would require coordinated action involving the participation of developing countries, not just the Group of Five to redress the present asymmetry in the international monetary system, and in particular to reduce real interest rates, strengthen commodity prices, expand liquidity, improve access to markets, and assure exchange rate stability. -   By overestimating the extent and speed of the benefits that could flow from the structural policy reforms advocated and from direct foreign investment, and underestimating the difficulties and drawbacks of each, they call for further heavy sacrifices from the populations of debtor countries. The sacrifices already made have themselves been excessive. -   They fail to recognize the need to tailor debt-service costs to debt servicing capacity. -   They fail to assure an adequate supply of resources, either from the private banks, or through the World Bank, and in particular IDA, the special facility for Sub-Saharan Africa, or through the IMF’s structural adjustment facility. These facilities are very small in the light of their stated objectives. The special facility for Sub-Saharan Africa, for example, has already committed more than half of its resources in the first year of its activity and will be discontinued effective July 1987. 34.  For most developing countries the debt situation remains the most severe strain on growth. Perspectives are gloomy if the framework is not changed since, for a number of developing countries, debt obligations exceed the capacities of their economies. What is even more intolerable is the increasing conditionality attached to the remaining and highly insufficient financial

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flows from developed to developing countries, which often tends to undermine their independence and sovereignty in the choice of their development priorities and their social and political system. 35.  The world economic crisis has extracted a heavy toll from all developing countries, especially those which for historical reasons have to content with a large mass of poverty and living standards, which provide little margin above the poverty line. Their adjustment efforts have reached and sometimes exceeded the limits of social tolerance. ODA flows have been stagnant and insufficient. Substantial additional concessional finance through multilateral sources is needed both for adjustment and development. 36.  Additional financing is needed. Funds must be mobilized and new instruments need to be devised to stop and reverse the negative transfer of resources now taking place, which hampers accumulation of capital, thus stifling development. Efficiency has to be part of the development process, but no change, within reach, in efficiency in the use of resources through structural adjustment can offset the siphoning of resources as a result of their transfer abroad. Without resources there can be no expansion and without expansion it will be impossible to create the dynamic climate needed to stimulate investment, the only path to growth. 37.  However, the magnitude of the problem is such that an increase in external financial flows alone would not be sufficient for its solution. Parallel and coordinated action is needed to lower interest rates, ease the liquidity shortage experienced by developing countries, raise commodity prices, achieve exchange-rate stability, increase access to developed countries’ markets for products of developing countries, etc. Coordination is needed to redress the present asymmetry in the functioning of the international monetary system. The aim of the system—to equitably serve the international community-cannot be achieved with the present extremely high concentration of decision-making power among a few most developed countries. Coordination is inconceivable without the active participation of the developing countries. The world can no longer sit back and watch a spectacle in which the fate of all is decided by the few. 38.  In promoting enhance and equitable international cooperation in the field of money and finance including debt, UNCTAD has a unique role to play, being the essential organ for the consideration of financial and monetary questions related to trade and development. The seventh session of UNCTAD should, inter alia, aim at translating the elements contained in the United Nations General Assembly resolution 41/202 on the external debt crisis and development into a broader set of more concrete operational guidelines and action-oriented measures. 39.  If the necessary commitments are not undertaken in these areas, the developing countries will face an extremely serious situation, which will force them to limit resource transfers to the industrialized countries in order to avoid greater social and political instability.

4. Commodities 40.  Two thirds of developing countries’ export earnings come from commodities. One of the alarming features of the economic recession of the first half of the 1980s has been the persistent decline in the prices of primary commodities and the terms of trade of developing countries. Despite a short-lived mild recovery in 1983-1984, the general trend for commodities has been sharply downwards. Thus, the annual average index in 1986 was about 30 per cent lower than at the beginning of the decade in current United States dollars and about 20 per cent in real terms. Commodity prices are now at their lowest level since the Great Depression of the 1930s. The prices for petroleum have substantially declined since 1982. All commodity categories—food, agricultural raw materials and minerals—have suffered these declines in prices. 41. The volume of developing countries’ commodity exports rose by only 11 per cent during 1980-1986 and thus their real earnings from these exports were 20 per cent lower in 1986 than in

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1980. This decline has aggravated their budgetary, debt-servicing and balance-of-payments difficulties. 42.  This situation poses an especially serious problem for Africa and other subregions in view of the generally higher dependence of the countries of this region on primary commodity exports, particularly on food and beverages and minerals and metals; their declining market share for commodity exports; and their lower level of commodity processing and manufacturing. 43.  The major factors which have influenced commodity markets are both cyclical and structural. Cyclical factors include the deflationary macro-economic policies of developed countries, exchange rate fluctuations and high real interest rates. Structural factors also include macro-economic policies of developed countries such as subsidies and support price mechanisms, protectionist measures, as well as technological developments and substitution. All have contributed to the persistent downward fall of prices. 44.  In the short and longer term the outlook for commodity prices is not expected to improve significantly. Slow growth in the industrial countries, continued protectionist practices and subsidized exports by these countries, supply pressures and under-utilized capacities are among the factors that constrain the recovery of most commodity prices. 45.  The developed countries have sharply curtailed their import needs through increased production of various commodities. Protectionist measures and other massive support policies for domestic producers as well as strategic objectives have encouraged production and generated large surpluses of agricultural products and increased the stock of minerals and metals in the developed market economy countries, placing the commodities of developing countries at a competitive disadvantage and aversely affecting commodity prices. 46.  In this connection, it is interesting to note that, while developing countries have together earned about $US 75 billion annually from their agricultural commodity exports during the past few years, the United States, the European Economic Community and Japan have spent approximately $US 42 billon annually on their agricultural support programmes. 47.  Protectionist measures introduced by the developed countries have shut-off commodity markets, as for example, the EEC market for meat, the Japanese market for rice and the reduction of the sugar market in the United States through quota restrictions. Internal taxes on tropical products have also put these products at a disadvantage vis-à-vis the alternative products originating in the developed countries. Such taxes also have negative influences on the consumption of these products. 48.  The economic recovery of the developed countries from the recession of the early 1980s was not strong enough or long enough to influence the commodity economy significantly. It therefore failed to carry with it a parallel increase in the level of aggregate demand for commodities and in the export earnings and import capacities of the developing countries. 49.  It should also be stressed that exchange-rate fluctuations have disruptive influences on the prices of commodities and impose additional management and adjustment responsibilities on developing countries. 50.  In this context, and in view of the decline of prices and the subsequent shortfall in export earnings, a number of developing countries resorted to increasing their commodity exports in the hope of maintaining their import capacity and facing their financial obligations. 51.  Globally, rising stock levels, with interruptions in 1979 and 1983, and increasing production have outrun consumption ever since 1978. Although there were some variations between the various product groups, the cyclical downturn in consumption was much more marked and the subsequent recovery failed to close the gap. 52.  Competition over a narrow range of products in a limited and depressed market, therefore, often led to market gluts and consequently to price slumps.

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53.  The situation is alarming. Therefore, any effort aimed at revitalizing growth and development of developing countries should lend particular focus to the critical short-term and long-term issues of commodities.

5. International trade 54.  The developing countries’ share of world trade continues to decline. Despite the stated objectives of the international community, their exports of manufactures have ceased to grow, and their share of world production of manufactures has increased only marginally. Although developing countries have been obliged to reduce imports, their economies continue to provide markets for exports from developed countries and a buffer against the unemployment problems of these countries. 55.  It is difficult to envisage any progress in this respect in the current international trading environment. Protectionist pressures are on the rise and are being manifested in new legislation and trade restrictive actions in the developed countries. Such actions have been largely aimed at products where developing countries have achieved a comparative advantage, and there has been a proliferation of measures applied against developing countries on a discriminatory basis, in conflict with the rules and principles of the international trading system. A clear tendency exists toward an extension of market-sharing arrangements to cover more products and more developing countries; in fact, the international trading system threatens to become a web of market-sharing arrangements rendering irrelevant the rule of non-discrimination and comparative advantage. There has been little progress in particular in working out specific programmes of action to facilitate structural adjustment in industrial countries in those economic sectors in which they have applied protectionist measures during long periods or on repeated occasions on account of loss of comparative advantage. 56.  Trade policy actions of developed countries are being characterized by a growing disregard for multilaterally agreed principles and concepts, arbitrariness and patent infringements of international commitments. An atmosphere of indiscipline prevails in the trading system. Bilateral solutions are increasingly being sought outside the framework of multilateral rules and principles and multilateral reciprocity is giving way to the bilateral balancing of trade. Major trading countries are unilaterally imposing their criteria as to what constitutes ‘unfair’ trade practices, and assuming the right to take retaliatory measures against the trade of developing countries, often in response to their domestic policies outside the trade field, such as in the areas of foreign direct investment, protection of intellectual property and services. Trade sanctions have been and continue to be applied against developing countries for political reasons, despite the condemnation of such actions by the United Nations General Assembly. 57.  Developing countries have also become the innocent victims of trade disputes among the major economic powers, as witnessed by the current competition in the agricultural subsidies. 58.  In such an environment, the multilaterally agreed principles of differential and more favourable treatment and non-reciprocity in favour of developing countries have been seriously eroded and even called in question by the developed countries. The most striking examples have been the unilateral application of ‘graduation’ by the developed countries in their growing tendency to condition the continuation of GSP benefits upon reciprocal actions by developing countries, including with respect to services, investment and other issues outside the trade field. 59. International trade is increasingly characterized by oligopolistic structures, and inter-firm trade of transnational corporations (TNCs) has become a major proportion of such trade. The concentration of market power in these corporations has been enhanced by conglomerate mergers. Restrictive business practices instituted by such entities have constituted impenetrable barriers to the expansion of trade of developing countries. The lack of biding multilateral rules on restrictive business practices has facilitated the circumvention of international trade commitments.

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60.  There has been striking lack of progress in the implementation of the commitments accepted at UNCTAD VI. The application of the repeated commitments with respect to standstill and roll-back have not been reflected in actual performance, even in the light of the most recent Ministerial Declaration of the Uruguay Round. Little progress has been made towards comprehensive understanding on safeguards, based on the MFN principle, essential to the proper functioning of the trading system. At the same time, the harassment of developing countries’ trade by anti-dumping and countervailing actions has intensified. 61.  Furthermore, the recognized need for international cooperation to strengthen agricultural and agro-industrial production in developing countries—of particular importance to African countries—has not materialized. In fact, barriers to market access for such products have continued and even increased. 62.  Conference resolution 159 (VI) instructed the Trade and Development Board to review and study developments in the international trading system with a view to making recommendations on principles and policies related to international trade and proposals on strengthening and improving the system with the aim of giving it a more universal, dynamic and development-oriented character. This resolution derived from the fundamental mandate of UNCTAD as spelled out in General Assembly resolution 1995 (XIX), which also assigned to UNCTAD the function of initiating action where appropriate, in cooperation with the competent organs of the United Nations for the negotiation and adoption of multilateral legal instruments in the field of trade. 63.  The inaction in the areas described above can be attributed to the prevalence in certain quarters of preconceived ideologies questioning the very basis of multilateralism and of the basic approach underlying UNCTAD philosophy. Attempts are being made to focus debate in UNCTAD on the autonomous development policies pursued by developing countries. At the same time, trade is becoming an instrument in the hands of certain developed countries for imposing unacceptable linkages on developing countries with respect to such development policies, and for expanding the economic space of the TNCs. The lack of progress in the trade area in UNCTAD and the systematic attempts to transpose the dialogue on trade and development to less universal and narrowly conceived forums merely go to confirm this. 64.  UNCTAD has—and must continue to play—a central role in the formulation, negotiation and implementation of measures in the sphere of international trade and its interrelation with debts, money and finance issues in a development context. UNCTAD VII offers the much-needed opportunity to reaffirm the validity of and the need for continuing with the basic approach informing UNCTAD. In this context, the major role of UNCTAD in the years to come should be that of continuing to provide a universal forum for bringing about the establishment of a truly international trading system with the major aim of facilitating self-reliant development of developing countries. 65.  The successful conclusion of the Uruguay Round of multilateral trade negotiations is a necessary condition for the evolution of a truly international trading system. However, such a system cannot be expected to emerge as a natural, much less inevitable, consequence of the multilateral trade negotiations. UNCTAD, with its mandate, character and history, is the only forum in which to forge a trading system, which is truly non-discriminatory, universal and comprehensive. Moreover, its unique, crosssectoral and inter-disciplinary approach is ideally suited to developing such a trading system as part of the harmonious and equitable reconstruction of international economic relations.

Trade relations among countries having different economic and social systems 66.  UNCTAD, as a universal organization, has succeeded in elaborating multilateral guidelines and criteria with a view to assisting the member countries in developing trade and economic relations among countries having different economic and social systems. This is within the

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framework of the mandate given to UNCTAD by General Assembly resolution 1995 (XIX) and subsequent resolutions and decisions adopted by UNCTAD. These resolutions aimed at, and in fact contributed considerably to, the achievement of greater harmony of policies and performance relating to issues of trade an economic cooperation between different groups of countries. East-South trade and economic relations have thus been accentuated and reinforced through the implementation of resolutions and decisions of UNCTAD regarding inter-system trade. In view of the interdependence of all trade flows, it is considered that the expansion of trade and economic relations between East and West would positively affect the expansion of international trade as a whole, including East-South trade. 67.  It has been observed that since the sixth session of the Conference in 1983, UNCTAD has enlarged the scope of its activities and intensified its efforts in the area of trade relations among countries having different economic and social systems. Considering the growing interdependence among countries, confidence-building and economic security in international economic relations have assumed importance in inter-system trade. 68.  As regards prospects for East-West-South trade in the remaining 1980s, the position remains uncertain in the context of the current international economic environment. There are constraints and problems to be overcome to restructure the composition of exports and imports and to reinforce the elements of stability and predictability in trade exchanges, in order to achieve sustained expansion and diversification of trade and economic relations among different groups of countries. In respect of East-South trade, major problems that remain to be solved are the low level of diversification of the developing countries’ exports to socialist countries and the fact that the bulk of this trade still involves only a limited number of developing countries. Experience, however, suggests that there are, in principle, good prospects for further growth of trade and economic relations between the two groups of countries. 69.  The socialist countries of Eastern Europe, which are responsible for one third of the total world industrial output, are already playing a significant role in the world economy. The recent process of modernization of the foreign trade system and management, structural adjustments and reforms in their economies, as well as various changes in their economic and foreign trade policies in accordance with the requirements of their national economies and the evolution of the international environment—all these trends offer potential for expanding and diversifying their trade and economic relations with all groups of countries. These developments could bring forth innovations in their economic relations and enable them to play a more effective role, contributing to the better functioning of the world economy and in particular the development processes of developing countries. There is, however, an urgent need for a new approach and concerted efforts on the part of all groups of countries to adopt constructive policy measures and initiatives to eliminate and overcome all impediments and obstacles in order to ensure the smooth expansion of inter-system trade flows. 70.  There is a growing need for new approaches and a meeting of minds on confidence-building, since the evidence available indicates that the progress made in implementing various Conference resolutions and Board decisions is far from satisfactory. An analysis of the developments and trends in inter-system trade also shows that these developments still correspond neither to the economic potential of the trading partners nor to the existing possibilities or challenges of the 1980s and 1990s.

6.  Problems of the least developed countries, bearing in mind the Substantial New Programmes of Action for the 1980s for the Least Developed Countries 71.  The continuing economic crisis in the least developed countries, which are the poorest and economically weakest among the developing countries and are faced with the most formidable

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structural problems, has been a cause of grave concern to the international community. The structural deficiencies of these countries are manifested in extremely low levels of per capita income, a high proportion of population in the subsistence sectors, a high rate of population growth, low agricultural productivity, a low level of exploitation of natural resources, weak institutional and physical infrastructure, an acute scarcity of skilled personnel, an insignificant share of manufacturing value added in GDP, and the recurrence of natural disasters. These factors constitute the main causes of their extreme economic and social difficulties. The land-locked and island least developed countries, which constitute over half of the group of LDCs, continue to face additional problems in their development because of their serious geographical handicaps. The number of LDCs, instead of decreasing, increased to 40 countries in 1986 from a level of 31 in 1981 when SNPA was adopted. This situation indicates the worsening economic conditions of developing countries in general and of the least developed countries in Africa where the number has increased from 21 to 27 countries. It was in recognition of the difficult economic situation of the LDCs that the international community undertook a commitment in the SNPA to provide substantially enlarged assistance to these countries to bring about structural transformation of their economies and to enable them to break away from their past and present situation and their bleak prospects, towards self-sustained development. 72.  In spite of the increased attention given by the international community, and the international organizations, to finding a lasting solution to the problems of the least developed countries, mainly through the adoption of the SNPA in 1981, there has been significant deterioration in the overall socio-economic situation of these countries since 1981. Despite the existence of the SNPA, African LDCs experienced a persistent deterioration in their economic growth between 1981 and 1984, as a result of the deepening domestic crisis occasioned by a hostile international economic environment as well as natural calamities and disasters, notably the drought since 1982. 73.  Other LDCs have also suffered considerably owing to cyclones and recurrent floods. These natural disasters have considerably reduced the potential for agricultural production, the main source of value added, and led to the reorientation of efforts for relief and rehabilitation activities rather than the pursuit of development programmes. 74.  The already very low per capita GDP of the LDCs as a group declined during the first half of the 1980s and the majority of them registered negative per capita growth rates. The average annual rate of GDP growth during this period was 2 per cent, which amounted to an average annual decline of 0.5 per cent in per capita terms. This was against a positive average annual GDP growth rate of 4 per cent in the 1970s. Although there was a marginal improvement, to 2.7 per cent in the GDP growth rate during 1985, that rate remained far short not only of the SNPS target of 7.2 per cent, but also of the growth rate of 4 per cent actually achieved in the 1970s. 75.  The performance in the agricultural sector continues to be the main factor determining overall growth in the LDCs. The agricultural production per capita continued to decline during the first half of the 1980s at an average annual rate of 0.6 per cent. Per capita food production also registered an average annual decline of 0.9 per cent during the same period. The main bottlenecks include drought, which is widespread especially in Africa and is still being experienced in many parts of the continent. This seriously jeopardized food and livestock production and resulted in low productivity generally. 76.  The record of progress in manufacturing activities, energy consumption, development of transport and communication, etc., was also disappointing during the first half of the 1980s. The average growth rate of real GDP arising from manufacturing in most of the LDCs in 1984 was only 1.3 per cent. The consumption of energy remained at an extremely low level of 313 kg per capita in1984, as compared to 669 kg in developing countries as a group. In the area of transport and communications, particularly in the 15 land-locked and 9 island LDCs the situation remains critical.

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77.  The external trade and payments position of most of the LDCs continued to suffer from depressed conditions in world commodity markets, worsening terms of trade, increased protectionism, and reduced ODA and other types of financial flows and workers’ remittances. The exports of the LDCs were 10 per cent lower during the first three years of the present decade than the level attained in 1980. Although there was a slight recovery in 1984, the exports started declining again in 1985 and reached a level of 7.2 per cent below the 1980 figure. The prices of almost all primary commodities of export interests to the LDCs dropped by a large margin, and the average annual shortfall in export earnings from such commodities was about $US 770 million during the period 1978-1983. The decline in export earnings had an average impact on capacity to import, which also declined by 6 per cent between 1980 and 1985. 78.  The worsening of the economic situation in the LDCs during the first half of the 1980s was due, inter alia, to the following factors: (a)  Net ODA receipts by the LDCs stagnated at around $US 7 billion per annum during the period 1980-1984, as compared with an average increase of about 70 per cent per annum in ODA flows during the 1970s. The total level of ODA in 1984 was only 44 per cent above the average level attained in 1976-1980 in nominal terms, as against the commitment undertaken by the donor countries in the SNPA to double such flows by 1985. Total ODA flows in 1984 were 0.08 per cent of the donors’ GNP, as against the target of 0.15 per cent fixed in the SNPA; (b)  Aid from multilateral agencies registered a decline in 1985, whereas in the SNPA there was a specific commitment for a significant increase in multilateral assistance to the least developed countries; (c)  Non-concessional financial flows, which had increased by an average of more than 100 per cent every year during the 1970s, underwent a steady decline in the 1980s, falling to only $US 457 million in 1984. This was against total non-concessional flows of $US 1.1 billion in 1980. Total external assistance provided to LDCs declined from $US 8.2 billion in 1980 to only $US 7.5 billion in nominal terms in 1984; (d)  The commitments undertaken in the SNPA to improve aid modalities in favour of the LDCs did not materialize. The average grant element of concessional assistance, which had increased from 86 per cent in 1981 to 89 percent in 1983, declined to about 85 per cent in 1984. About 80 per cent of total aid from DAC countries to LDCs in1984 was tied. Some initiatives have recently been taken by a number of donors to give more emphasis to programme aid including sectoral assistance, general import financing and balance-of-payment support, as well as commodity aid, food aid, local-cost financing, and recurrent cost financing, but these measures are totally inadequate to meet the needs of the least developed countries; (e)  The external debt of the LDCs, which grew rapidly in the 1970s, worsened considerably during the first half of the 1980s as a result of the adverse impact of the world economic crisis on the debt-servicing capacity of these countries. Their total external debt, including short-term debts, is estimated to have been over $39 billion at the end of 1985, a 13 per cent increase as compared to the previous year. In addition, their use of IMF credit was estimated at $2.2 billion. Debt service payments in 1985 amounted to $ 2 billion, representing well over 20 per cent of the value of the combined exports of the LDCs. Debt service payments arising from non-concessional debts have continued to form the main part of LDCs’ total debt service payments. Although some debt relief has been provided by 15 DAC member countries for their ODA debt to 33 LDCs under Trade and Development Board resolution 165 (S-IX), the debt service problem remains critical for many LDCs. The problem has been exacerbated by a sizeable proportion of non-commercial debt and by the significant increase in the multilateral debt, which is not within the purview of resolution 165 (S-IX) and is subject to multilateral reschedulings. Since the adoption of the SNPA in 1981, 13 LDCs have had recourse to the

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Paris Club to reschedule their official debt and 5 LDCs to the London Club to reschedule commercial debt. Moreover, a number of LDCs had to ask for another rescheduling in order to cope with their increased debt liabilities. However, these reschedulings have also proved to be inadequate as they only provide temporary relief and do not entail a diminution of debt stocks. Eventually they add to the debt burden. (f)  Since the adoption of the SNPA in 1981, 19 least developed countries have formulated an adjustment programme supported by a stand-by arrangement with IMF. These programmes, in the absence of the increased inflow of external financial resources, have resulted in sharp cuts in imports, investments, budgets and social outlays, thus further slowing down economic growth; (g)  The continuance of tariff and non-tariff barriers in important markets still inhibits expansion of LDCs’ exports. In spite of commitments undertaken in the SNPA, the 1982 GATT Ministerial Declaration and, most recently, the Punta Del Este Declaration of 1986, many developed countries continue to impose various types of restrictions on exports from LDCs. Moreover, the land-locked and island LDCs suffer from high transportation costs which make their products uncompetitive in the world market; (h)  In view of the fact that almost 85 per cent of the LDCs’ exports consist of primary commodities and are concentrated in only a few products, these exports have been hard hit by the collapse of international commodity prices and the deteriorating terms of trade. The prices of almost all primary commodities of export interest to the LDCs have dropped precipitously. This has adversely affected the foreign-exchange earnings of the LDCs. The compensatory financing available to them under the existing financing schemes is inadequate and this has resulted in depletion of their monetary reserves and overall capacity to mobilize finance for development. The commitments undertaken in the SNPA for special provisions in favour of the LDCs in terms of compensating their commodity-related export earnings shortfall have not been fully realized; (i)  Assistance so far provided to land-locked and island countries among the least developed countries and measures taken in implementing the relevant resolutions are still very inadequate in terms of alleviating the problems confronting them. 79.  The least developed countries, for their part, have implemented several measures to improve their economic conditions. These include, among others, adoption of effective policies to mobilize domestic resources, expand food and agricultural production and develop their external trade. Since the adoption of the SNPA, almost all the LDCs have designated focal points for the implementation, follow-up and monitoring of the SNPA. Twenty-eight LDCs have had a country review meeting as envisaged by the SNPA. Five more LDCs are preparing for the convening of such meetings. 80.  Low and often declining per capita income notwithstanding, several LDCs were able to achieve domestic savings rates exceeding 10 per cent and, in a few areas, exceeding 15 per cent during the period 1980-1984. In an effort to further improve mobilization of domestic resources, several LDCs have implemented measures to make their tax system simpler and more broadly based and to improve tax administration. Measures have also been initiated in several LDCs to improve the performance of public sector enterprises. The development and mobilization of human resources, through eradication of adult illiteracy, expansion of public education, including vocational training, and development of entrepreneurial capacities, is an important element in the development plans and programmes of several LDCs. Adult illiteracy rates decreased by more than 20  percentage points between 1970 and 1985 in seven LDCs. Almost all LDCs decreased their illiteracy rate between 1980 and 1985. The number of students undertaken vocational training in the LDCs increased in 24 per cent between 1980 and 1984. In the field of food and agricultural production, many LDCs have taken steps to increase production and

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productivity, inter alia, by increasing the use of the market mechanism, mobilizing the rural population and diversifying production. In order to better respond to the adverse and changing economic environment, many LDCs have adopted appropriate policy measures to enhance the effective implementation of their adjustment programmes. Many LDCs have taken measures for improvement of the institutional and physical infrastructure, in spite of limited resources. The assistance provided by other developing countries in the context of ECDC has reinforced the efforts of the LDCs themselves to alleviate some of their problems. In spite of all these positive measures the development prospects of the LDCs remain bleak owing to the extremely adverse external environment.

Part II Policies and measures, including those related to the interdependence of issues 1.  Resources for development, including financial and related monetary questions A.  Policies and measures aimed at the elaboration and implementation of a growth oriented strategy for tackling the problems of debt and development, based on the principles of shared responsibility, political dialogue and coordination among all the parties concerned: Governments of developed creditor and developing debtor countries, Banks of developed countries and international financial institutions The Conference 1.  Recognizes that the lack of a durable solution to the debt problem of the developing countries is a major impediment to the recovery of a reasonable rate of growth on a sustained basis in those countries, and a source of instability in world financial markets and distorts trade flows, affecting negatively the ability of debtor countries to import and achieve their development objectives, as well as the capacity of creditor nations to export and secure sustained growth and employment. 2.  Agrees on the urgent need to halt and reverse the net flow of financial resources from developing debtor countries to developed creditor countries. 3.  Further agrees on the imperative need for a political dialogue aimed at implementing a new, comprehensive debt strategy based on growth, development and shared responsibility in order to reach a lasting solution to the continuing debt crisis, taking into account the close interrelationship of the monetary, financial and trade issues and bearing in mind General Assembly resolution 41/202. Such a strategy should be implemented through, inter alia, the following measures: (a) Adapting debt-service payments of developing countries to their real debt-servicing capacity through measures such as limiting payments to a percentage of export earnings and establishing, as appropriate, a relationship between the amount of debt service and GDP, the evolution of commodity prices or other relevant indicators of the economic situation of each indebted developing country; (b)  Significantly increasing the availability of resources of the multilateral financial institutions through: (i) the expansion of capital; (ii) raising of the borrowing authority or of the lending ratio; (iii) setting up of trust funds; (c)  Consideration by developed donor countries of further cancellation of the ODA debt of poorer developing countries, in particular as regards the least developed countries and the countries of sub-Saharan Africa, bearing in mind Trade and Development Board resolution

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165 (S-IX) and the commitments taken at the thirteenth special session of the United Nations General Assembly on the critical economic situation in Africa; (d)  Immediate implementation of the recommendations of the Mid-Term Global Review of the SNPA for the 1980s; (e)  Consideration by Governments of developed creditor countries and international commercial banks of a significant lengthening of consolidation, maturity and grace periods as well as of the reduction of bank margins to a minimum in the context of debt rescheduling; (f)  Consideration should also be given to introducing distinctly concessional interest rates to be applied on the rescheduling of official and officially guaranteed loans extended before 1987 to developing countries. In this connection, special arrangements should be made in regard to the debt of the least developed countries, countries in sub-Saharan Africa, and small hard-hit developing countries in Africa, Asia and Latin America and the Caribbean, to developed creditors countries. (g)  Extension of the procedure of negotiating debt rescheduling of developing countries’ debt to developed creditor countries without prior agreement with the IMF; (h)  Adoption by Governments of developed creditor countries of appropriate regulatory and other measures which would give international commercial banks flexibility to reschedule interest payments on debts contracted before 1987, to provide new loans to indebted nations, as well as to take measures of a debt-relief nature, such as partial writing-off of the principle and application of concessional rates of interest. 4.  The Conference, in view of the critical nature of the present situation, welcomes and fully supports the initiative of creating, within the Interim and Development Committees, a Committee of Ministers from developing and developed countries to take up the examination of the debt problem, including specific solutions for low-income countries, particularly those in sub-Saharan Africa, and recommended measures.

B.  Policies and measures aimed at substantially increasing the flows of financial resources from developed to developing countries, provided through multilateral institutions, export credit agencies, bilateral ODA, the Banking system and foreign investors The Conference 5.  Urges developed countries to redouble efforts to achieve as quickly as possible the internationally agreed targets on official development assistance (ODA) to developing countries, in compliance with the recommendations of the Task Force on Concessional Flows, so as to place ODA on increasingly assured, continuous and predictable basis in accordance with the development needs of developing countries. 6.  Recognizes the need for adapting the conditionality criteria and the characteristics of the operations of the international financial institutions to the need of achieving adequate rates of growth and of adjusting under conditions where external imbalances are caused by exogenous factors; co-ordination between the IMF, the World Bank and other multilateral financial institutions should not lead cross-conditionality. 7.  Agrees that urgent actions should be undertaken to strengthen the role of the World Bank as a development institution, through the doubling of its capital, the improvement of its lending ratios, the increase of its financial leverage as well as other measures aimed at enhancing its catalytic role in order to ensure a sufficient volume of net transfer of resources to developing countries. 8.  Recommends a significant increase of IDA resource in real terms, assuring their adequate replenishment, while improving the quality of its resources.

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9.  Urges the World Bank to mobilize additional resources commitments from developed donor countries for Sub-Saharan Africa. 10.  Recommends an increase in the size of the Structural Adjustment Facility of the IMF while improving its essential features, particularly its growth orientation, low conditionality and the provision of supplementary resources. 11.  Stresses the need to strengthen the Asian, African and Latin American development banks and funds through, inter alia, the increase of their capital and lending programmes, while maintaining their essential developmental and regional nature and their equitable decision-making process. 12.  Calls upon industrialized countries to make a greater effort for increased participation in IFAD’s third replenishment and urges other contributors to the Fund in a position to do so, to make additional efforts to contribute to the resources of the Fund with a view to ensuring the highest possible level of replenishment while preserving the institution and its unique structure. 13.  Urges that the possibility be considered to establish appropriate mechanisms for the recycling of the large current-account surpluses of some developed countries for utilization by developing countries for their mutual benefit. 14.  Urges developed countries to increase the financial support of their export credit agencies to developing countries under suitable terms and conditions. Measures should be taken to avoid coverage suspension, including such as may be politically motivated. 15.  Calls upon Governments of developed countries to encourage resumption and increase of bank lending to developing countries. 16.  Recommends that Governments of developed countries encourage foreign investments to developing countries in accordance with national legislations and development objectives of host countries. 17.  Urges that ways and means be considered to enhance the participation of developing countries members of multilateral institutions engaged in development financing in the formulation and approval of the credit policies of these institutions so as to adapt them to the development objectives of the borrowing countries. 18.  Urges developed countries and international financial institutions to increase the flow of resources in real terms to African countries in accordance with the decisions contained in the United Nations Programme for African Economic Recovery and Development adopted at the thirteenth special session of the United Nations General Assembly on the critical economic situation in Africa. 19.  The IMF and World Bank should, at their next meetings, acquire specific commitments with the view to improving the IMF Compensatory Financing Facility so as to respond to the deterioration in international commodity prices and establish an additional facility for relieving the debt-service burden caused by high real interest rates.

C.  Policies and measures aimed at promoting the reform of the international monetary system so as to make it truly stable, multilateral, equitable and responsive to the development needs of developing countries The Conference 20.  Calls upon all States members of UNCTAD to support the early convening of an international conference on money and finance with universal participation, with the objective of reforming the international monetary and financial system so as to make it truly stable, multilateral, equitable and responsive to the development needs of the developing countries. As a matter of urgency, and without prejudice to the comprehensive reform of the system through the

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convening of the conference, the following measures should be implemented for the improvement of the functioning of the existing system: (a)  The IMF should exercise effective multilateral surveillance, particularly with respect to the principal industrialized countries, giving special attention to the evolution of exchange rates, trade and capital flows and fiscal equilibrium in conformity with the growth objectives provided for in Article 1 of its Articles of Agreement; (b)  A supply of adequate international liquidity on an increasingly assured, continuous and predictable basis, consistent with the growth requirements of the world economy and meeting in particular the needs of the developing countries, should be ensured. In this context, IMF should agree on a new substantial SDR allocation totaling 25/30 billion SDRs for the first year and on regular annual allocations throughout the fifth basic period to satisfy the established long-term global need for reserves, while ensuring the unconditional nature of SDRs and their link to the development needs of developing countries. Developed countries should consider foregoing their shares for the benefit of developing countries in need of reserves; (c)  Repayment periods for drawings from the IMF should be extended significantly and conditionality criteria brought in line with the development objectives of developing countries. Fund agreements should as a norm make provisions for additional support if GDP growth were to fall below a pre-agreed level; (d)  Expansion and improvement of the IMF Compensatory Financing Facility; (e)  Continuation and further improvement of the enlarged access policy, necessitated, inter alia, by the inadequacy of quotas and by the reduction in access limits; (f)  Undertaking necessary actions related to the ninth review of quotas, which should lead to a substantial increase of developing countries’ quotas, keeping in view that the eighth review not only fell short of requirements, but led to retrogressive results for developing countries. (g)  Increasing the voting share and level of participation of developing countries in policy formulation and in the decision-making process of the IMF. 21.  The Conference, in view of the need for immediate action, welcomes and fully supports the call for the creation of a representative Committee of Ministers from developing and industrialized countries to examine the proposals for reform and improvement of the international monetary system. This Committee could perhaps take the form of a joint sub-committee of both the Interim and Development Committee to examine the proposals for reform and improvement of the international monetary system.

2. Commodities I 1.  Since the beginning of the 1980s, world commodity markets have been suffering a crisis of unprecedented dimensions. Prices have collapsed to their lowest level since the Great Depression of the 1930s. The macro-economic policies pursued by developed market-economy countries, with scant regard for their ultimate impact on the fragile economies of developing countries, have constituted a major factor in the prevailing sharp deterioration in commodity prices. In particular, protectionist policies blocking market access, subsidies and price support schemes, inflation first and then deflation, high real interest rates and volatile exchange rates, as well as manipulation of markets by commodity speculators, have been responsible for the dramatic loss of export earnings experienced by developing countries during this period. This situation has in turn greatly constrained the economic and social development of developing countries. It has also led to a deterioration in the terms of trade of these countries, seriously affecting further their capacity

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to meet their external financial obligations, creating a climate of instability and uncertainty in international economic relations and hindering a reactivation of the world economy. 2.  The present critical situation fully confirms the continued validity of the objectives and international measures agreed to in resolution 93 (IV) on the Integrated Programme for Commodities (IPC). It calls for prompt and full implementation of the IPC particularly in view of the close link between the fall in commodity export earnings and the accumulation of debt. There is also greater need than ever for improved market access coupled with stable and remunerative prices for products of export interest to developing countries in order to stimulate growth and development. We therefore reaffirm our strong commitment to the IPC and call for the following measures to be effectively implemented as set out below.

II A.  International commodity agreement/arrangement 3.  International commodity agreements/arrangements should be strengthened and include economic clauses, and new ones be negotiated taking into account the provisions of Conference resolution 93 (IV), including the objective of ensuring remunerative and just prices for products. The international community should provide the necessary financial and political backing for such arrangements to be viable and effective. All producers and consumers of the commodities concerned should support such arrangements. 4.  The Secretary-General of UNCTAD is requested to make the necessary arrangements for the convening of preparatory meetings on individual commodities not covered by ICAs, and which are included in the indicative list of resolution 93 (IV). This should be followed, when appropriate, by negotiating conferences, with a view to reaching comprehensive international agreements with economic provisions, or arrangements containing appropriate measures, including those of a developmental character, needed to solve the problems faced by these commodities in the international market. A programme of negotiations should be carried out and completed by 1990 as far as possible. 5.  The UNCTAD secretariat should continue to provide the necessary assistance to establish the means for mutual consultations enabling the strengthening of co-operation and co-ordination among producing countries required for negotiations on commodities. 6.  Complementary to specific price stabilization efforts, co-operation between producers and consumers within ICAs should also be encouraged to facilitate greater transparency, research and development, and market promotion, including new end-uses, as well as remedial measures for special problems in the commodity field.

B.  The Common Fund for Commodities 7.  The Conference should appeal to developing countries and developed market-economy countries, which have not yet done so, and to socialist countries of Eastern Europe, to ratify the Agreement establishing the Common Fund for Commodities. It should appeal also to the United States of America to reconsider its decision not to ratify the Agreement. A meeting of interested countries should be called in 1988 to review the status of the Agreement and to recommend measures to accelerate its full implementation.

C.  Processing, marketing and distribution 8.  The UNCTAD secretariat’s work, including the elaboration of frameworks, should continue on processing, marketing and distribution, including transportation, of commodities. In

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particular, attention should be given to North-South as well as South-South actions that would ensure a greater participation of developing countries in these areas. Technical and financial support should be provided by developed countries, and by multilateral and financial institutions, to developing countries for training and research on these subjects. International co-operation in these fields should be strengthened by identifying the needs of developing countries and the forms of international assistance by which they can be addressed.

D. Diversification 9.  Developed countries and multilateral funding organizations are called upon to make resources available, including through special facilities for financing horizontal and vertical diversification of commodity production and exports on favourable and concessional terms and conditions for developing countries. Such medium-term and long-term financing should be complemented with technical assistance for feasibility studies and infrastructural developments as an indispensable component. The UNCTAD secretariat is requested to follow the activities in this field more closely in co-operation with relevant international organizations.

E.  Compensatory financing 10.  The ongoing programme of work aimed at establishing an additional facility to compensate developing countries for their shortfalls in commodity export earnings should be concluded. Strengthening and improving the existing compensatory financing facilities should also be undertaken. Special arrangements should be made to ensure simplified access for the LDCs to the IMF Compensatory Financing Facility.

F. Market access 11.  The developed countries should demonstrate their political will to eliminate totally the obstacles to trade in agricultural, tropical and natural resource-based products of developing countries. The UNCTAD secretariat should provide technical assistance to developing countries in the negotiations in the Uruguay Round. This assistance should be oriented towards improving access conditions in developed countries’ markets for developing countries’ exports and in particular identifying ways and means of applying differential and more favourable treatment for such exports. 12.  Developed countries are called on to cease providing subsidies and other unfair forms of assistance to their domestic commodity producers and to their commodity exports and to eliminate tariff escalation and commodities in their processed and semi-processed forms and quantitative restrictions on commodities of export interest to developing countries.

G.  Synthetics and substitutes 13.  Developed countries should support the efforts of the developing countries to improve the competitiveness of natural products. To this end, support should be extended to research and development activities in developing countries and to facilitating transfer of technologies. Measures for promoting demand for natural products of developing countries, new end-uses and exchange of market information should also be implemented. Assistance should also be given to improving transportation and other infrastructural facilities for such exports. 14.  In cases where increased substitution of natural products derives from protectionist policies and from support prices in developed countries at levels not consistent with prevailing international market prices, such administered domestic prices should be brought in line with international levels. To this end protectionist barriers should be dismantled in order to allow exports of natural products from developing countries to compete more freely with substitutes.

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H.  Disposal of non-commercial stocks 15.  In regard to the sale of non-commercial stocks, an international code of conduct should be concluded expeditiously so as to halt the prevailing adverse effects on commodity markets, bearing in mind the principles agreed to in decision 4 (V) of the Committee on Commodities and other international instruments relating to this matter. To this end the Secretary-General of UNCTAD should be requested to undertake necessary measures to give effect to this objective.

I.  The role of UNCTAD 16.  The negotiating and leading coordinating role of UNCTAD as well as the provision of technical assistance in the area of commodities should be strengthened. UNCTAD should actively carry out its responsibilities of promoting a general and integrated approach to commodities in cooperation with other relevant institutions and of taking specific actions in the commodity field. Such actions should include review of commodity policies worldwide and, in particular, their impact on developing countries, as well as monitoring of progress in the area.

3.  International trade Proposals of the States Members of the Group of 77 in the area of international trade In order to translate the approach outlined in the Assessment2 into a programme of action, the following specific policy measures and decisions should be adopted:

A.  International trading system 1.  UNCTAD should initiate work on a blueprint for a universal, non-discriminatory, comprehensive, stable and predictable trading system, which will respect fundamental principles underlying the international legal order. The system should aim at facilitating the increase of developing country participation in world exports, and at achieving an equitable distribution of the gains from trade. The improved and strengthened trading system shall thus be oriented towards development and growth and incorporate differential and more favourable treatment for developing countries as an integral part, not as an exception to its rules and principles. It should not take into account the special problems of the least developed countries. It should be fully responsive to development objectives in the area of commodities and contain a mechanism for redressing restrictive business practices, particularly those of TNCs. Such a system should be seen as part of a new paradigm of harmonious and equitable international economic relationship. To this end, it should be founded on the new international consensus to be generated on the objectives of development and employment. 2.  Action relating to monetary and financial matters, transfer of technology, services and other relevant areas should be made compatible and consonant with the established objectives of the system. The adoption of support measures would be required in the international monetary and financial sphere to allow for improved conditions which as a whole, will facilitate dealing with the developing countries’ debt, based on an integrated strategy oriented towards development and growth.

B.  Protectionism and structural adjustment 3.  Developed countries shall respect multilateral trade rules and principles, including their commitments to provide differential and more favourable treatment to developing countries, and 2

For the Assessment, see Part I above.

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strictly comply with the standstill and rollback commitment. All protectionist measures applied by developed countries should be notified to the Surveillance Body set up under the Uruguay Round. Information on all such measures should be communicated to the Secretary-General of UNCTAD for the periodic review of protectionism and structural adjustment. UNCTAD should provide advice on identifying such measures and concerting the appropriate action to ensure their removal. 4.  Developed countries shall not impose economic and trade sanctions against developing countries for political reasons, and shall remove such sanctions currently being applied. 5.  Developed countries shall establish a transparent and independent mechanism at the national level to examine the need for protectionist action sought by firms/sectors, and the implications of such action for the domestic economy as a whole. This mechanism shall also monitor the observance of the standstill and rollback commitments. Periodic reports shall be sent by this mechanism to UNCTAD for its consideration in the Trade and Development Board. 6.  Developed countries shall establish a transparent and independent mechanism at the national level to (a) draw up programmes for facilitating structural adjustment in sectors of particular export interest to developing countries; (b) monitor the implementation of such programmes; and (c)  report progress periodically to UNCTAD for consideration in the Trade and Development Board.

C. Market access 7.  Developed countries shall: (a)  Improve the access to their markets for products of export interest to the developing countries, including manufactures and semi-manufactures; (b) Liberalize agricultural trade by eliminating restrictions and distortions, particularly those regarding non-tariff and tariff barriers and subsidized exports, by bringing all measures affecting import access and export competition under strengthened and more operationally effective GATT rules and discipline; (c)  Ensure total liberalization of trade in tropical products and those derived from natural resources; (d)  Liberalize the trade régime in textiles and clothing by removing discriminatory restraints on export from developing countries and take steps to integrate the régime into GATT on the basis of strengthening GATT rules and discipline; (e)  Eliminate escalation of tariff and non-tariff barriers affecting the products of export interest to developing countries at higher stages of processing. The Trade and Development Board should keep under review, on a regular basis, the implementation of these measures. 8.  Developed countries shall continue to improve the GSP, inter alia, through the expansion of product coverage; and without any impairment of the multilateral agreed principles upon which the system is based, in particular those relating to its generalized, non-discriminatory and non-reciprocal character. The Secretary-General of UNCTAD is requested to prepare a special report on the observance of such principles by preference-giving countries, to be considered by the Trade and Development Board at the second part of its thirty-fourth session, in the first half of 1988. 9.  Developed countries are invited to provide financial and technical support to the UNCTAD Technical Assistance Programme in the field of GSP; UNDP is invited to consider favourably requests for increased financial resources for this programme. 10.  Special problems of the least developed countries shall be kept in view while undertaking these tasks, particularly for the liberalization of tariff and non-tariff barriers and other export

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restraints on the exports of the least-developed countries, keeping in view the Agreement relating to the Framework for the Conduct of International Trade (Enabling clause). 11.  The particular problems facing the land-locked and island developing countries on account of their geographical situation and other inherent disadvantages shall be kept in view while undertaking these tasks. 12.  Observance of multilaterally agreed commitments with respect to trade in goods shall not be linked to concessions in such areas as investment, intellectual property and services. No linkages shall be established between the negotiations on trade in goods and negotiations in areas such as trade in services, intellectual property and investment. 13.  Restrictive business practices, particularly of TNCs, shall be brought squarely within the operation of the trading system through: (a)  An obligation in regard to transparency and consultation procedures; (b)  The establishment of a special committee on restrictive business practices within the framework of UNCTAD to monitor the application of the Multilaterally Agreed Equitable Set of Principles and Rules on Restrictive Business Practices; and (c)  Continuing work in UNCTAD toward the establishment of a legally binding framework.

D.  The role of UNCTAD in connection with the Uruguay Round of multilateral trade negotiations. 14.  The Trade and Development Board should follow closely developments in the Uruguay Round and appraise such developments as to their implications for the trade and development interests of the developing countries. In this regard, the Board should study particular aspects of the negotiations with a view to formulating specific recommendations which could be transmitted to the appropriate bodies. In carrying out this exercise the Board should give priority to the implementation of the rollback of protectionist measures against the trade of developing countries and to reaching a comprehensive understanding on safeguards based upon the MFN principle. 15.  The Secretary-General of UNCTAD is requested to provide advice and technical assistance to developing countries as regards the MTNs and to enable them to participate more effectively in the negotiations. UNDP is requested to consider favourably requests from UNCTAD and individual countries to make increased financial resources available for this exercise. 16.  In order to carry out effectively the above tasks, adequate arrangements should be made for the Secretary-General of UNCTAD to follow the work in Uruguay Round bodies.

E. Services 17.  The Secretary-General of UNCTAD is requested to analyze, from the point of view of developing countries and in the context of promoting and ensuring their autonomous development and economic growth, the implications of the issues being raised in the context of trade in services by developed countries. The objective is to ascertain the need for, and examine the implications of a multilateral framework for trade in services, and not ‘liberalization’ of, or removing ‘the barriers’ to, trade in services. This analysis should bear in mind that, for developing countries, the issues of transfer of technology and the restrictive business practices of transnational corporations, among others, are of paramount importance in the area of services. 18.  The UNCTAD secretariat should be asked to analyze the wider implications of any international régime governing trade in services. These implications should include political, cultural and security aspects. 19.  The Secretary-General of UNCTAD is requested to work out appropriate problematics for trade in services, keeping in mind that the revolutionary changes in telecommunications and

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telematics provide a new and easy medium for transactions in services around the globe. More often than not, new technologies are making transactions in services across national borders more difficult to monitor and control. The problematics for trade in services must take this into account; an approach based on the General Agreement on Tariffs and Trade may not be relevant or adequate. 20.  UNCTAD should be provided with adequate resources to carry out effectively its mandate to assist developing countries in studying the contribution of services to their development process, and, when requested, to provide assistance to the developing countries in undertaking national studies, as defined in Trade and Development Board decision 309 (XXX). The Secretary-General of UNCTAD should present to the next session of the Trade and Development Board a programme on technical assistance to developing countries to improve the statistical basis on trade in services. UNDP is invited to respond positively to requests from UNCTAD and its member States for financial support for the above purposes. The developed countries are also invited to make available financial and technical resources for such studies. 21.  The Secretary-General of UNCTAD should explore the possibility of establishing a programme of cooperation on services within UNCTAD as a mechanism for channeling financial and technical assistance to developing countries with the aim of strengthening the service sector in those countries.

F.  Trade relations among countries having different economic and social systems 22.  Taking note of the informal text annexed to Conference resolution 145 (VI) and the ideas contained in document TD/B/1104, the Group of 77 proposes: (a)  To request the socialist countries of Eastern Europe to take measures to: contribute fully and effectively to the efforts of the developing countries to diversify and intensify their trade, and to provide a growing share of their imports, including semi-manufactures and manufactures, from developing countries; make further improvements in their GSP schemes; improve the terms and conditions of credits to the developing countries; enlarge their economic assistance; increase the share of convertible currencies in resources made available for financing developing countries’ projects; develop a flexible and efficient payments mechanism in trade operations; pay special attention to the specific needs and requirements of the least developed countries. (b)  To request the Secretary-General of UNCTAD to carry out the necessary consultations with the relevant Governments on the possibility of initiating a process of negotiations leading to a further strengthening of trade and economic cooperation between the developing countries and the socialist countries of Eastern Europe. (c)  In the areas of technical assistance and consultative activities, to intensify the existing UNCTAD operational programme for the promotion of East-South trade. (d)  To request the Trade and Development Board to keep the implementation of these activities under periodic review.

4.  Problems of the Least Developed Countries, bearing in mind the substantial New Programme of Action for the 1980s for the Least Developed Countries Specific policy measures suggested for adoption At the end of the mid-term global review of the implementation of the SNPA, conducted by the Intergovernmental Group on the Least Developed Countries in September/October 1985, a

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number of recommendations were made for the improvement of the condition of the LDCs and for full implementation of the SNPA. It would be necessary to implement fully and expeditiously all these recommendations and conclusions, along with other measures included in the SNPA itself. The following, inter alia, deserve reiteration and expeditious action by the countries concerned within the context of the SNPA: A.  The LDCs reaffirm their primary responsibility for their overall development.

B.  Financial and technical assistance 1.  The international community should support the efforts of LDCs to increase their per capita food production and, in view of the energy problems, provide financial and technical assistance for research, exploration and development of energy resources; and should assist in maximizing capacity utilization of their productive economic units. 2.  Donors should endeavour to provide emergency assistance and financing of costs involved in the management and relief operations in African and other LDCs affected by food and other emergencies. 3.  The SNPA should be fully and effectively implemented, and a substantially enlarged volume of financial assistance in real terms should be given to LDCs on terms which correspond to their immediate and long-term development needs. 4.  Within the context of the SNPA, donor countries which have not yet done so should attain 0.15 per cent of their GNP as ODA to the LDCs before the end of the decade or should attain, on priority basis, a doubling of their ODA (a target which was originally to be achieved by 1985). 5.  The multilateral assistance to the LDCs through such channels as IDA, IFAD, regional development banks and their funds, UNDP, the special measures fund for the LDCs, UNCDF, UNVP, etc., should be significantly increased to meet the increased needs of the LDCs, and donors should channel a substantial part of their aid through these institutions and agencies. 6.  The eighth replenishment of IDA should be significantly higher than the previous levels, keeping in view the critical importance of the IDA for the LDCs. 7.  Relevant international institutions should continue their concerted efforts to consider new mechanisms and arrangements, which include proposals for, inter alia, international tax schemes for development, further gold sales by the International Monetary Fund, the linking of the creation of special drawing rights to development assistance, and the use of interest-subsidy techniques. The IMF should undertake a fundamental review of the principles on which its conditionality rests in such a way as to reflect the peculiar social, economic and political priorities of the LDCs, and allocate substantial portion of Special Drawings Rights (SDRs), Trust Fund facilities and compensatory financing facilities to these countries. 8. Concerned donors should provide timely assistance on appropriate terms to mitigate the adverse effects of adjustments programmes and should support the efforts of the LDCs in implementing the required policy changes.

C.  Compensatory financing 9.  In the event that a complementary facility for fully compensating the export earning shortfalls of the developing countries is established, it should ensure special provision for the LDCs. Special measures should be taken to strengthen the commodity markets and enhance export receipts of the LDCs from such commodities. The existing compensatory financing facility of the IMF should be improved, with provision for special treatment for the LDCs ensuring full coverage of their export earnings shortfalls, subsidization of their interest payments on outstanding drawings and a longer repayment and grace period than hitherto.

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10.  All developed countries which have not yet done so should expeditiously adopt special measures in order to compensate fully the export earnings shortfalls of the LDCs.

D.  Aid modalities 11.  With regard to aid modalities, immediate steps should be taken to provide ODA to the LDCs fully in the form of grants and to provide loans without discrimination on highly concessional terms, at least as concessional as those provided by IDA. 12.  Urgent steps should be taken by donor countries to provide ODA, loans and grants to LDCs on an untied basis. They should also take steps to improve the quality and effectiveness of aid, and eliminate the time lag between aid commitment and disbursement. In this regard, a mechanism that would ensure automaticity and predictability of disbursement should be created. 13.  Advance payments should be made by the donors concerned against their commitment in order to minimize delays in disbursement and improve the effectiveness of assistance. 14. Donor countries should take steps for increased local cost as well as recurrent cost financing. 15.  Concerned donors should provide increased-balance-of-payments support as well as commodity aid, programme aid, including sector assistance and general import financing, and their terms should be flexible enough to facilitate their effective use. Such balance-of-payments support in general must not be used to exercise political pressure on the least developed countries and should not be dependent on acceptance by these countries of measures and programmes which involve social costs and hinder their basic aims, objectives and priorities or compromise their political independence and national sovereignty.

E.  Debt problems of the least developed countries 16.  Developed countries should fully implement Trade and Development Board resolution 165 (S-IX) expeditiously and convert all outstanding bilateral ODA loans of all the LDCs into grants, without discrimination. 17.  Creditors should provide substantial and multi-year scheduling of private debts, including the waiving of service payments and/or outright cancellation of the debt.

F.  Access to markets 18.  Steps should be taken by developed countries to further improve GSP or MFN treatment for products of the least developed countries with the objective of providing duty-free access to such products, and to eliminate non-tariff measures affecting exports of least developed countries. Special schemes should be prepared by each of them to realize these objectives. Flexible rules of origin should also be applied in favor of LDCs to facilitate expansion of their export trade. 19.  Increased technical assistance should be given to the LDCs for promotion of trade and expansion of production facilities for export. In particular, developed countries and international organizations should also assist the LDCs to create industries for on-the-spot processing of raw materials and food products, and the development of integrated projects for the expansion of exports and to provide adequate resources to overcome all supply bottlenecks. 20.  The developed countries should assist the LDCs in entering into long-term arrangements for exports, as called for in the SNPA.

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G.  Land-locked and island developing countries 21. In accordance with the United Nations Convention on the Law of the Sea of 1982 and Conference resolutions 137 (VI), 138 (VI) and Trade and Development Board resolution 319 (XXXI) and other relevant resolutions of the United Nations as adopted on the specific needs and problems of land-locked and island countries among the least developed countries and the extremely acute nature of the problems: (a)  Transit countries should intensify cooperation with the land-locked countries among the LDCs to alleviate the transit problems (b)  Concerned donors, while providing technical and financial assistance to land-locked and island countries among LDCs, should particularly focus on capital input in infrastructural development; (c)  International bodies, in particular UNDP and the regional commissions, should continue to support those least developed countries with measures required to alleviate their specific transit-transport and communications problems.

H.  Country review mechanism 22.  The country review meetings which are the mechanisms for the periodic review and implementation of the SNPA should be further strengthened and improved to make them more effective. UNDP and the World Bank, as the lead agencies, should expand their technical assistance to the LDCs to enable them to prepare efficiently for these meetings. Donor countries should be represented at an adequately high level. The meetings should result in firm commitments and secure increased mobilization of resources to the LDCs. 23.  Developed donor countries and international financial institutions participating in country review meetings for LDCs, such as the UNDP sponsored Round Table Processes (RTPs) should not link their commitments of development resources to the condition that the LDCs should have effective operational IMF/IBRD adjustment programmes; these country review meetings should be seen essentially as additional measures for increasing financial resources to the accelerated development of LDCs.

I.  Equitable benefits of assistance 24.  In the application of all measures it should be ensured that the assistance benefits all least developed countries according to their individual requirements on a just and equitable basis.

5.  Interdependence of issues 1.  The policy actions in the four interrelated areas of the provisional agenda of the seventh session of the United Nations Conference on Trade and Development, as proposed here, are mutually supportive. Many of the most pressing needs of developing countries—including a new and comprehensive strategy to reach a lasting solution to the problems of debt—can be hoped to be successfully met only through the implementation of a coherent set of agreed measures spanning the above areas. 2.  Developed countries should adopt more expansionary macro-economic policies including an easing of monetary policies and fiscal stances where appropriate, with a view to substantially lowering interest rates, stabilizing and correcting misalignment in exchange rates, reducing protectionist pressures, expanding trade and financial flows, and reversing the declining trend in commodity prices.

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3.  The areas covered in the UNCTAD call for commensurate action in other important current and forthcoming multilateral economic activities, in particular the Uruguay Round and in the framework of the IMF and the World Bank. 4.  In order to enhance UNCTAD’s capacity to exercise its central role and to ensure effective action in the interrelated areas of money, finance, debt, commodities, development and trade, the Trade and Development Board should strengthen its reviewing and monitoring on a regular basis of decisions and measures in these areas.3

3

At the closing meeting of the Technical Committee it was unanimously agreed that the chairman of the Committee should read out the following statement: ‘It is recognized by all that, in order to make the work of the Trade and Development Board on this subject fruitful, it will be necessary for the UNCTAD secretariat to make adequate and careful preparation.’

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7.  Seventh Ministerial Meeting of the Group of 77, Tehran, 19–23 November 1991, in preparation for UNCTAD VIII, Cartagena de Indias, 8–25 February 1992 a.  The Tehran Declaration, Towards a New Partnership for Development and Substantive Platform of the Group of 77 for International Cooperation Contents The Tehran Declaration, Towards a New Partnership for Development Substantive Platform of the Group of 77 for International Cooperation Part one: Sectoral issues Resources for development International trade Technology Services Commodities Part two: Broad policy objectives Part three: Least Developed Countries Part four: Institutional matters: adapting UNCTAD to a changing international economic and policy environment

THE TEHRAN DECLARATION TOWARDS A NEW PARTNERSHIP FOR DEVELOPMENT We, the Ministers of the States members of the Group of 77, Having met in Tehran, Islamic Republic of Iran, from 19 to 23 November 1991, to prepare for the forthcoming eighth session of the United Nations Conference on Trade and Development, Having reviewed global economic and political development since UNCTAD VII, Declare as follows: 1.  The decade of the 1990s already carries the mark of profound historical change. The end of the Cold War, the improved prospects for disarmament and the advance of democracy and respect for human rights are ushering in a new era of international cooperation and global partnership to enhance world peace and security. 2.  And yet, achieving true global peace and security does not only mean putting an end to the threat of global war and nuclear holocaust. It also means realizing the right to development and freeing peoples and nations from the suffering and insecurity that comes from poverty, hunger, disease, illiteracy and unemployment. 3.  Furthermore, global peace is indivisible. The world is not at peace if conflicts, resulting among other factors from underdevelopment, continue to plague the developing countries; it is not secure if those countries are subject to external threat resulting from their weak economic and political position. A world divided between a rich few and large masses of the poor is unfair, inherently unstable and in the long run unsustainable.

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4.  Thus, the development issue, in particular the widening gap between the North and the South, represents the main challenge faced by the international community in the post-Cold War. The rapid change that is taking place in the world economy, while giving rise to difficult challenges, offers also great opportunities for bridging this gap. The technological revolution, the increasing globalization of production and trade and the consolidation of large economic spaces can lead to a better world for all, provided the international community takes positive action to prevent the marginalization of the developing countries and to ensure their active participation in the world economy. In this context, it is necessary to ensure that regional integration arrangements, particularly those having a major impact on world trade, are compatible with an open and liberal multilateral trading system.

Reinvigorating the development dialogue 5.  What is needed is a determined move to bring in a new era of partnership for development among developed and developing countries. This calls in turn for a reinvigoration of the development dialogue. Developing countries are ready to engage in a comprehensive dialogue on all issues affecting trade and development, including both international and national aspects, in a balanced discussion based on the imperatives of genuine interdependence, taking into account the weight and impact of developed and developing countries in the world economy. 6.  The dialogue towards a new partnership for development must be pragmatic and realistic, non-confrontational, based on a mutuality of interest, and above all aimed at achieving, through a gradual deepening of the international consensus on specific issues, concrete agreements that can be implemented. It must also lead to the establishment of mechanisms for follow-up on the actions agreed upon and monitor the extent to which they are being carried out. 7.  The focus of the dialogue must be the strengthening of national and international action and multilateral co-operation for a healthy, secure and equitable world economy, and more specifically the promotion of economic growth, technological capabilities and accelerated development in the developing countries. 8.  This is a good time to engage in the dialogue. The phenomenon of globalization of economic relations and the dilemmas posed by transboundary problems such as the environment, health, illicit drugs, and migrations have heightened awareness of the close interdependence of issues and nations in today’s world, and the need for co-operative multilateral solutions, with due respect for the independence and national sovereignty of each country. The call for a new international order should also provide an opportunity to strive for a revival of multilateralism, and for placing the issue of development at the top of the agenda of the international community for the 1990s.

The challenges for developing countries 9.  Developing countries are making vigorous efforts, almost always at the cost of considerable social and political sacrifices, to follow sound macro-economic policies, exercise fiscal discipline, rely more on market signals for the allocation of resources, and undertake the necessary adjustments in their external economic relations, including opening their economies to the challenges of competition. The pursuit of economic efficiency by developing countries would, however, have to integrate the social, cultural and development dimensions. Moreover, the realization of all the full entrepreneurial potential available in the developing countries would require these countries to have better and favourable access to the global economic space. 10.  Developing countries reaffirm that the primary responsibility for their development is their own. This includes prominently the need to introduce participatory arrangements that would help

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distribute widely the fruits of development and growth, allow everybody a say in the making of decisions that affect their lives, and guarantee respect for political, social cultural and ideological diversity. The participation of the more vulnerable sectors of the population, such as women, is a matter of special priority. 11.  Developing countries recognize the crucial importance of economic co-operation among themselves as a means of enhancing their successful integration into an equitable international economy. In this context, they recognize the importance of consolidating and strengthening the Global System of Trade Preferences (GSTP) and complementing it by appropriate trade financing measures, including the eventual establishment of an international trade financing facility backed by the international community. At the same time, the processes of regional and subregional co-operation and integration within the developing world should be consolidated and strengthened. 12.  But no amount of effort will succeed if the external environment continues to be unfavourable. The experience of the 1980s is telling. There was a collapse of financial and technology flows to developing countries, a persistence of the debt overhang, of high real interest rates by historical standards and monetary instability, a dramatic fall in the real prices of commodities and a corresponding deterioration of the terms of trade of developing countries, and an increase in protectionism in developed countries. In 1990, the total cost of agricultural protection in developed countries amounted to US$ 300 billion, which represents six times the ODA granted by them to developing countries. Moreover, between 1984 and 1989 developing countries made net transfer of $92.6 billion to the developed countries; largely as result of this huge loss of capital their per capita GNP at the end of the decade was no better than at the beginning. The number of the poor and hungry in those countries had doubled in the same period to an alarming figure of 1.2 billion.

The challenge to the developed countries 13. Part of the explanation of this veritable development failure—the lost decade for development—is that the efforts of developing countries have not met with the corresponding actions on the part of the developed world. Developed countries have not shown the political will needed to undertake their own structural adjustment in order to face competition from the developing countries. While advocating multilateralism they resort to the unilateral exercise of economic power, the application of restrictive and discriminatory practices and the marginalization of multilateral institutions and of developing countries in the management of the world economy, which is vested in ad hoc small groups of major industrial countries. 14.  Developing countries need a world economy operating on the basis of multilateral rules anchored in the respect of competition, open markets, equity and fair play. At the moment, their exports are being discriminated against. Developed countries must commit themselves solemnly to a return to the agreed rules of the international economy while providing special and differential treatment to developing countries. They must also come forward in a spirit of co-operation, responsibility, imagination and farsightedness to complement and support the efforts of developing countries and to build an international environment, which permits the realization of the creativity present in the cultures of developing world. Otherwise, the efforts of developing countries will fail, the new development consensus will be eroded and both pluralism and the market orientation will be impeded.

The Challenges of interdependence and accelerated and sustainable development 15.  The dialogue must also touch on issues concerning the structure of international economic relations. The asymmetry of interdependence between developed and developing countries, most

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visible in the growing concentration of knowledge and innovation in the developed countries and their transnational firms, must be addressed by the international community. Global policy co-ordination in the context of interdependence is by now an inescapable responsibility of the international community. It must be met in a more participatory and broad-based manner founded on equality so as to reflect international democracy that fulfills the need and interests of all countries and evolve policies, which can be supported by all. Only in this way will it be possible also to meet the challenge of sustainable development for the world as a whole. 16.  Achieving long-term sustainable development requires changes in the production patterns and wasteful consumption practices in the industrialized countries, as well as the reduction and ultimate elimination of poverty. International co-operation in this area should ensure that the measures for the conservation and protection of the environment must be based on just and equitable burden-sharing, through technology transfer and new and additional resources, and that the burden of any negative socio-economic effects on growth and development from measures to address global environmental problems is not borne by the developing countries. 17.  There is an urgent need for substantial improvement in the international economic environment for accelerated and sustainable development in developing countries. In this context, we shall seek agreements, and corresponding actions, on the following aspects: -   taking account of growing interdependence, the strengthening of observance of multilateral rules with a view to creating better conditions for effective competition and equitable integration of developing countries in the world economy; -   halting and rolling back all forms of protectionism by developed countries which prevent genuine international competition and result in harmful effects and economic losses for developing countries; and ending discriminatory restrictions against developing country exports; -   wider implementation and extension of the principle of debt and debt service reduction to cover all types of debts and countries, with a view to finding a durable and comprehensive solution to the debt problems of developing countries; -   reducing international real interest rates and correcting misalignment and volatility of major currencies with a view to bringing about international monetary and financial stability; -   reversing the net transfer of resources from developing countries and achieving a substantial increase in the non-debt-creating capital flows, as well as bilateral and multilateral official development assistance; -   seeking ways and means of establishing a link between the creation of SDRs and development finance needs; -   adopting appropriate measures and mechanisms for directing part of the resources that may be released from the recent agreements and the continuing process of disarmament for the purpose of meeting development challenges, particularly those facing developing countries; -   enabling developing countries to build competitive service sectors and seeking ways and means of giving effective and preferential market access to their services exports in developed countries; -   adopting national and international policies and encouraging sound managerial practices to ensure unhindered access to critical technologies and facilitate transfer of technologies to developing countries and help them build up endogenous technological capabilities; -   adopting international policies that help harness the dynamism, global resources and capabilities of transnational corporations towards the building of endogenous technological

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capacities in developing countries, as well as introducing an international framework for the promotion of competition and the safeguarding of competitive functioning markets; -   strengthening commodity markets and promoting diversification, including further commodity processing, in commodity-dependent developing economies. 18.  The outcome of the Uruguay Round of Multilateral trade Negotiations should be balanced and equitable, and provide greater security and predictability to the multilateral trading system. It should lead to developing countries obtaining a meaningful, beneficial and substantial package of concessions covering all sectors, particularly market access issues, and should operationalize the principle of differential and more favourable treatment for developing countries in all areas of the negotiations as well as provide for adequate compensation for any losses. In the new areas, developing countries should have the flexibility to use policy instruments to access technology and ensure its use in the public interest for meeting development objectives. They should not be made to undertake obligations inconsistent with their development financial and trade needs. 19.  The adoption of the Programme of Action for the Least Developed Countries for 1990s by the Second UN Conference on LDCs is welcomed with satisfaction, and the international community is called upon to implement the Programme fully and expeditiously. To complement the domestic efforts and policies of the LDCs within the framework of the Programme of Action, the developed donor countries should redouble their efforts to reach their ODA targets and take urgent action to alleviate the LDCs’ debt burden. There should also be substantially improved market access for the exports of the LDCs.

The need for revitalizing UNCTAD 20.  We reaffirm the continuing validity of the central mandate of UNCTAD on trade and development issues and its role as a universal and democratic forum for global economic policy analysis, coordination and negotiations as well as an instrument for the provision of technical assistance to developing countries. The existing network of international economic relations and institutions has to be made more supportive of the development process and adapted to the changes that are taking place in the political and economic environment. UNCTAD has a crucial role to play in the new global situation. For that, UNCTAD must undergo the necessary institutional adaptation in the context of the ongoing reform of the economic and social sectors of the United Nations. In particular, UNCTAD should contribute to the evolution of universal and comprehensive institutional arrangements for a development-oriented international trading system that respond to the interests of all members, particularly developing countries, and ensure equitable distribution of benefits of international specialization. In the context of global interdependence, UNCTAD should also act as a catalyst for building a new international consensus between developed and developing countries on the fundamental principles that should govern international economic relations. 21.  It is thus essential that every effort should be made to strengthen the effectiveness and relevance of UNCTAD in international and national policy-making. At UNCTAD VIII an action-oriented work programme for international co-operation should be agreed upon. UNCTAD’s role should be reinforced in the identification and analysis of emerging issues and the analysis of interdependence, in the formulation of national and international policy strategies for the development of developing countries and in the review of relevant policies of the other multilateral economic institutions. Its negotiating role should be expanded to cover specific agreements open to all interested countries as well as the initiation of processes of analysis and intergovernmental dialogue and cooperation that would culminate in negotiations. Effective surveillance and follow-up mechanisms should be set up to ensure that decisions are translated into concrete action. Decisions in UNCTAD should contribute to decision-making in other

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international fora, with which UNCTAD should have greater interaction at the appropriate level. Mutual support between UNCTAD and other organizations of the UN system should be strengthened. The involvement of relevant non-governmental actors should be encouraged. 22.  In order to revitalize UNCTAD’s prominent role as a universal forum of negotiation, it is necessary to introduce changes in the structure of the intergovernmental machinery, methods of work and the mechanisms and methods of negotiation by allowing complementary forms of country association through a flexible group system. The UNCTAD secretariat must be given the necessary authority and independence and provided with adequate resources to carry out effectively the task entrusted to it.

The task ahead 23.  In recent years developing countries have been in the vanguard of change. It is now time that developed countries respond positively and demonstrate their political will to meet the challenges of change. 24.  In the evolving international political context, how to ensure that the improved political security situation in the North could provide a stimulus to growth and development and improve security in the South, how to meet the challenges of interdependence and sustainable development, how to realize the potential peace dividend and channel it for development of developing countries, are the major tasks for the 1990s. Undertaking these tasks should be a major driving force for strengthening international economic co-operation based on a new partnership in development. In an increasingly interdependent world, peace, prosperity, and political and economic security are indivisible.

SUBSTANTIVE PLATFORM OF THE GROUP OF 77 FOR INTERNATIONAL CO-OPERATION PART ONE SECTORAL ISSUES Introduction 1.  Ministers affirm that UNCTAD VIII should treat the issues on its agenda in an integrated and comprehensive manner: Governments should address the agenda in a positive spirit, aimed at achieving concrete, action-oriented results; the results of UNCTAD VIII should provide for specific, operational mechanisms to ensure the effective implementation of the decisions taken; and their Governments would be putting forward specific proposals in this respect.

I.  Resources for development Policies and measures in the areas of:

External debt 2.  A durable solution to the debt crisis should bring more debt relief in terms of higher percentage of debt reductions and, where applicable, refinancing, as well as comprehensive coverage of beneficiary debtor countries, including official bilateral and multilateral and commercial debt, and be based on objective economic criteria, not political preferences or narrow financial concerns. This should include, inter alia:

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(a)  In regard to the external debt incurred with commercial banks: - Enlarging the scope for debt and debt service reduction in the context of the strengthened debt strategy; - Anchoring the negotiation process between debtor countries and commercial banks on authoritative estimates of the country’s debt reduction and cash flow needs. - The promotion of initiatives aimed at giving creditors greater incentives to put forward plans for debt and debt service reductions, and in particular, studying by Governments of developed countries of the possibility of tax incentives to creditor banks in their own countries. - Accompanying any increase in the financial support for debt reductions provided by multilateral financial institutions and the regional development banks by measures to put additional funds at the disposal of these institutions. - Serious consideration by creditors of new and bolder initiatives, for instance the establishment of an international debt facility. (b)  With regard to debt owed to official bilateral creditors; - The cancellation by industrialized countries of all official bilateral debt (both concessional and non-concessional) of all least developed and IDA-eligible countries, as well as other severely indebted low-income countries, including both Paris Club debt and debt owed to other developed countries, and ensuring that debt cancellation is additional to ongoing and future aid programmes. - Urgent implementation by Paris Club creditors of a substantial debt reduction for middle-income countries in line with the treatment extended to some countries. In this connection, a principle similar to the most favoured nation treatment should be applied. (c)  With regard to debt owed to multilateral institutions (MFIS): - Provision of adequate financial assistance to developing countries in order to help clear arrears to the MFIs. The strengthened arrears strategy of the Bretton Woods Institutions should be reviewed. - Measures aimed at reversing the negative transfer of financial resources to developing countries should include, inter alia, ensuring enough new disbursements and longer repayment periods; the revising of current policies and operating procedures with a view to reducing financial costs; and the restructuring of debts owed by interested countries to these organizations. 3.  Other measures should include: - Deepening and broadening the involvement of UNCTAD in the search for practical solutions to the debt problems of developing countries. - Urgent consideration of debt reduction for low-income countries with substantial debt burdens which continue to service their debt and meet their international obligations at great cost. - Promotion of new financial formulas, within the framework of the reduction of debt and debt service for indebted developing countries, in particular for those countries that have admittedly make the greater efforts for the timely fulfillment of their external financial obligations. - Establishment and effective utilization of a framework assuring that industrial country donors and official as well as private creditors consider a country’s debt problem in a coordinated manner so that the overall financing requirements in relation with a country’s medium-term development will be met.

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- Strengthening technical cooperation among developing countries in the areas of external debt with the support of the UNCTAD secretariat through the implementation of programme for the exchange of experiences in debt negotiations. - Pursuing effective solutions of the debt problems of severely indebted non-restructuring countries. - Strengthening the role of the UNCTAD secretariat in regard to assistance to countries rescheduling their official bilateral debt with the Paris Club, as well as assistance to developing countries in other debt renegotiation and in debt management in general. This assistance should include, inter alia, making estimates of developing countries debt reduction and cash flow needs.

Transfer of resources 4.  The process of structural adjustment in developing countries needs to be adequately supported and funded. This requires a substantial increase in the resources, particularly concessional resources available for this purpose from bilateral and multilateral sources. In addition, it is important to ensure that associated macro-economic and structural policy conditions take due account of the specificity of the economic needs and conditions of developing countries. Aid transfers should be free from non-economic conditionalities. 5.  As a matter of urgency, developed countries should implement necessary adjustment measures, particularly in those areas where they would have a positive impact in stimulating economic growth in developing countries. Developed countries should also take steps to reduce external and fiscal imbalances, increase savings and promote a healthy and open world economy. In this regard, developed countries should adopt an appropriate mix of fiscal and monetary policies conducive to a decline in interest rates and ensure effective policy coordination with a view to promoting the stability of exchange markets. 6.  Donor countries should redouble their efforts to attain their internationally agreed aid commitments to developing countries (0.7 per cent of GNP). Such flows should be placed on a stable, assured and predictable basis. 7.  MFIs are urged to provide additional financial resources to developing countries in order to meet their long-term development needs and to make up for any decline in ODA. MFIs should, therefore, be provided with adequate resources. 8.  Efforts to provide financial assistance to the countries of Central and Eastern Europe should not be at the expense of developing countries. 9.  For their part developing countries will continue to pursue measures to enhance their investment climate, particularly as regards inflows of foreign direct investment and other non-debt-creating financial flows, as well as policies oriented at promoting repatriation of flight capital. These efforts would need to be supported by innovative incentives and promotional measures by developed countries and the World Bank Group. 10.  The provision of additional resources to low-income countries is a matter of top priority. Steps should be taken to increase the resources of the World Bank’s Special Programme of Assistance for debt-distressed low-income countries. Similarly, financial flows under the Structural Adjustment Facility and the Enhanced Structural Adjustment Facility should provide medium-term concesssional loans to low-income countries. 11.  There is a need for a new, substantial allocation of SDRs and to establish a link between the creation of SDRs and development finance needs. This allocation should be kept free from any conditionality and be followed on by further regular allocations. 12.  All countries, especially those countries possessing large nuclear and conventional arsenals, should seek and continue to reduce military expenditures. A  substantial part of resources

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released, including in particular those resulting from recent agreements and the continuing process of disarmament, should be channeled to social and economic development for the benefit of all countries, in particular developing countries. There is an urgent need for sustained multilateral efforts to make progress on the entire range of disarmament issues. 13.  The UNCTAD secretariat is called upon to undertake analysis and make proposals, as well as to provide technical assistance to developing in the above-mentioned areas. 14.  Full support should be given to the proposal of the Secretary-General of the United Nations to convene an international conference on the financing of development, building on the outcome of UNCTAD VIII.

Financing of environmental protection 15.  The international community must ensure that financing of environmental protection is truly additional, and not at the expense of regular development activities. In particular resource flows from developed countries should be additional to current ODA flows and be provided as grants and on concessional terms. In addition, other financing mechanisms, including market-related transfers, should be encouraged. Cooperation is called for between creditor countries and multilateral financial institutions and developing countries in the implementation of debt conversion schemes for the protection of the environment. These principles should be reflected in agenda 21 of UNCED. 16.  The UNCTAD secretariat should analyze the developing countries’ need for supplementary financial resources, particularly those associated with growing concern about local and global environmental issues and identify the means to meet such needs.

Domestic resource mobilization Human resource development 17.  Developing countries should continue to give the necessary priority to the development of human resources, especially with regard to women, and the provision of basic public goods. However, their efforts in this area have been undermined by many factors including a worsening of their economic situation and the consequent shortage of investible resources. These have been further exacerbated by the cuts in public expenditures on health, education and other basic social services in the context of structural adjustment programmes. There is, therefore, a need to reverse this trend. External financial and technical assistance through bilateral and multilateral channels is crucial in this regard. 18.  The international community is called upon to assist developing countries in their efforts to enhance the mobilization of domestic resources,

II. International Trade 19.  The linkage between trade, growth and development is at the centre of UNCTAD’s work. A central objective in the trade and development field is that the pattern and direction of international trade, as well as the framework of rules that govern it, should enable all countries, particularly developing countries, to benefit fully from the production and exchange of goods, services, technology and information across national frontiers. To this end, UNCTAD VIII should seek a new international consensus for a healthy, secure and equitable international trading system and a harmonious blend of mutually supportive policies and measures in the area of trade, development finance and monetary issues, taking into account the right of each country to choose its own

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socio-economic system and promote the welfare of its people in accordance with its own policies and plans. A sustainable international trading system which is fair and equitable should remove discriminatory restrictions on developing countries’ exports and give concrete expression to the concept of differential and more favourable treatment for developing countries. At UNCTAD VIII, developing countries expect a commitment from their developed partners to work together towards these objectives.

Protectionism, structural adjustment and trade liberalization 20.  The objective is to halt and reverse protectionism and to bring further liberalization and expansion of world trade to the benefit of all countries, in particular developing countries. In this context, UNCTAD should: (a)  Continue its review of protectionism and structural adjustment, market access and policies affecting trade, with particular reference to the impact on developing countries; (b)  Conduct studies on the trade policy reform experiences of developing countries with a view to: - facilitating the exchange of experiences; - identifying the international support measures that may be needed; - quantifying the trade creation effects of autonomous liberalization and designing modalities for appropriate credit and recognition; (c)  Strengthen its technical assistance in the trade area to countries which request it, including in the field of trade policy reform. (d)  Extend upon request technical assistance to developing countries for their effective participation in the GATT Trade Policy Review Mechanism (TPRM). 21.  As called for in the Final Act of UNCTAD VIII, members States of UNCTAD, particularly developed countries, and their regional groupings having competence in the area of trade policy, should establish independent transparent mechanisms for evaluating protectionist measures sought by firms/sectors and the implications of such measures for the domestic economy as a whole and their effects on the export interests of developing countries. In this connection, UNCTAD should: - Promote the establishment of national transparent mechanisms, including the evolving of features for such mechanisms, and facilitate their interaction with governmental representatives at the international level with a view to enhancing the adoption of concerted policies in the fight against protectionism. 22.  UNCTAD should review the impact of emerging regional trading groups or arrangements and their policies on developing countries, non-participants and the multilateral trading system. 23.  UNCTAD should review the impact on developing countries of the process of integrating the countries of Central and Eastern Europe into the international trading system and the world economy. In this regard the focus should be (a) on identifying new opportunities for developing countries in trade and economic co-operation with countries of Central and Eastern Europe that may have emerged from the ongoing process of reform in the East; and (b) on technical assistance to develop and take advantage of these opportunities.

Generalized system of preferences 24.  It is essential that GSP schemes continue to be renewed. In this context, the Ministers took note of the decisions of some preference-granting countries to extend their schemes for another decade and urged other preference-granting countries to do likewise.

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25.  Taking into account the recent developments, including in the Uruguay Round, affecting market access of developing countries in areas of export interest to them, GSP schemes should be substantially improved through: -   an increase in preferential margins and duty-free treatment; -   comprehensive product and country coverage; -   substantial reduction or elimination of non-tariff measures, a priori limitations and restrictions of preferential imports and frequent withdrawals of preferential benefits, so as to impart stability and greater predictability to the schemes; -   improved and simplified rules of origin criteria; -  increased technical assistance to allow developing countries to fully benefit from the system. 26.  The scope of the generalized system of preferences (GSP) should be extended to cover all applicable barriers affecting developing countries’ exports in goods and services to developed countries.

The Uruguay Round of MTNs 27.  The Ministers recalled paragraph 105(8) of the Final Act of UNCTAD VII, where the Trade and Development Board had been instructed to ‘follow closely developments and issues in the Uruguay Round of particular concern to the developing countries’. In this context, UNCTAD should: -   Undertake an extensive evaluation of the results of the Uruguay Round, from the viewpoint of the developing countries and of their impact on the international trading system. -  Identify the problems and opportunities the developing countries face in international trade in goods and services in the 1990s, follow attentively trade negotiations in other fora, promote consensus and prepare proposals for negotiations and possible agreements. -   Continue to give assistance to the developing countries in the Uruguay Round, as well as in the implementation of its results and subsequent negotiation. The Secretary-General of UNCTAD should be requested to submit a comprehensive report on these issues, including recommendations for action, to the Trade and Development Board.

Trade and environment 28.  The Conference should: -   recognize that substantially improved market access and remunerative prices for developing country exports of commodities and manufactures would, by producing greater income for less resource depletion, have a positive environmental impact; -   agree that trade-restricting measures are neither an objective nor an efficient means of promoting environmental protection and in fact will lead to proliferation of trade restrictions and harassment that would undermine the open multilateral trading system. -   recognize that unilateral application of restrictive trade measures against developing countries’ exports, professedly on environmental grounds constitutes unjustified trade barriers and inherent discrimination against them’ -   recall paragraph 23 of the Stockholm Declaration to the effect that standards of environmental protection valid for advanced countries may not be so for developing countries and may impose unwarranted social and economic costs on the latter; -   recognize that the recent war in the Persian Gulf area has adversely affected the trade and environment of the region and beyond, including the marine environment, and appropriate remedial action is called for at the regional and global levels.

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29.  In this context, the UNCTAD secretariat should: -   analyze the relationship between environmental policies and trade, including the implications for developing countries of the proposals on harmonization of standards and environmental regulations; -   monitor trade measures that have a bearing on the environment as well as environment-related policies as a source of disguised protectionism, and explore possible criteria that may provide safeguards against such protectionism; -  continue its contribution to the preparations for the United Nations Conference on Environment and Development (UNCED), as well as contribute to the follow-up and implementation of the outcome of UNCED; -   analyze the impact of developed countries’ environmental policies and the consequences of changes in the pattern of production, trade and technology in developed countries on developing countries; -  work towards evolving a conceptual framework for establishing the link between the removal of trade barriers on goods and services (including access to technology and to labour markets across countries) and the enhancement of sustainable development of developing countries; -  provide technical assistance from additional resources to developing countries in this area. The Secretary-General of UNCTAD should be requested to submit reports on these issues, including recommendations for action, to the Trade and Development Board.

Restrictive business practices and international competition policies 30.  UNCTAD should expand its action with regard to agreements and rules on policies and regulations for the control of restrictive business practices, in order to protect international competition, ensure the proper functioning of markets and efficient resource allocation, and bring about genuine liberalization of international trade. Negotiation in UNCTAD, preceded or accompanied by appropriate conceptual and technical work by the secretariat, should be directed towards evolving a comprehensive and development-oriented framework for the prevention of restrictive business practices and the promotion of competition in international trade. It should cut across such areas as technology, services, investment and commodities.

Global infrastructures for trade and trade facilitation 31.  There is an urgent need to set up a truly universal electronic data interchange (EDI) in particular and ‘networked markets’ in general so as to give developing countries access to the new opportunities for trade facilitation and efficiency stemming from recent advances and the application of information technologies in this area. UNCTAD VIII should launch the processes for an International Conference on Global Infrastructure for Trade and Trade Efficiency, which would specifically focus on the infrastructure and technologies required by developing countries to access new sources of trade competitiveness. 32.  Improvement of transit facilities is vital for the expansion and development of the foreign trade sector of the land-locked countries. These countries and their transit neighbours should be assisted by the international community through financial and technical assistance for the improvement of their transit infrastructure. In this connection, UNCTAD should continue and strengthen its technical cooperation programme in the area of transit transport facilitation.

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Improving the international trading framework 33.  UNCTAD has a basic mandate on trade and development issues, and a role as a universal and democratic forum for the discussion, analysis and negotiation of the multilateral framework of rules and modalities of international trade. Noting the ongoing discussions in the United Nations system, including General Assembly resolution 45/201, on strengthening institutional arrangements in the area of multilateral trade and proposals in the Uruguay Round for a multilateral trade organization to service the results of the Uruguay Round, there should be a discussion at UNCTAD VIII on the issue of universal and comprehensive institutional arrangements for a development-oriented international trading system. 34.  Any strengthened institutional arrangements for international trade should be comprehensive in subject coverage, universal in membership, based on agreed objectives and disciplines, responsive to the interests of all members, particularly the developing countries, and democratic in decision-making, with the ultimate aims of ensuring that all countries are enabled to enhance their capacity to compete in world trade and of achieving an equitable distribution of benefits from international specialization. 35.  In accordance with UNCTAD’s mandate to review the effectiveness and further evolution of institutional arrangements in the area of international trade, UNCTAD should take measures to promote such discussions, take them into consideration in the course of its own institutional improvement and provide operative assistance to this process. In particular, the SecretaryGeneral of UNCTAD should be requested to submit a report to a special session of the Trade and Development Board on ways and means for enhancing UNCTAD’s contribution to the strengthening of institutional arrangements in the area of international trade, taking into account current relevant proposals, as well as for improving the institutional effectiveness of UNCTAD. In this connection, the Secretary-General should convene, in consultation with relevant international organizations, academic and independent institutions and experts, an ad hoc group of eminent persons to assist him.

III. Technology 36.  The Ministers note with serious concern that the technological gap between developed and developing countries is widening and that the changes in the patterns of international competitiveness being brought by the new technological revolution and the globalization process is placing developing countries at a further disadvantage in their commodity, manufactures and services production and trade. 37.  Developing countries are giving greater emphasis to access to and transfer and development of technology, including scientific and technological aspects of educational policies and programmes to strengthen their technological capacities. In order to enable them to cope with and benefit from the advancement of technologies, new actions could be taken which should include the establishment of co-operative arrangements and joint ventures between developed and developing countries in R and D activities. These actions should also include the provision of substantial financial resources, on affordable terms, to enable the financing of R and D and skill formation, as well as to import foreign technological inputs as a complement to local technological efforts. 38.  Special measures should be undertaken to enhance co-operation among developing countries, including their regional groupings. These measures may cover such areas as technology transfer and co-operation, R and D activities, personnel training, technical co-operation and exchange of experience. The developed countries and international organizations are urged to support and fund this cooperation, particularly technical training of cadres of developing countries in other developing countries.

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39.  Developed countries should assure, in their trade and technology policies, unhindered access of developing countries to critical, high, new and emerging and state-of-the-art technology. In this regard, developing countries express their deep concern over the restrictions imposed by some developed countries on the transfer of advanced technologies to developing countries for political reasons. Transnational corporations should be encouraged to contribute to capacity building in host developing countries through, inter alia, transfer of technology, training, creation and development of infrastructures, and formation of managerial capabilities. Particular attention could also be given to the promotion of technological innovation at the level of the firm. 40. The technological capacity of developing countries will be enhanced by promoting the access to and diffusion and transfer of technology on fair and equitable terms and conditions. UNCTAD should review the conditions of access to technology by developing countries and propose measures to improve such access with a view to facilitating the international transfer of technology. 41.  Support should be given to developing countries in their efforts to create and develop the infrastructure, skill and knowledge base necessary for the acquisition, adaptation and generation of environmentally sound technologies and for strengthening entrepreneurship in developing countries. Developed countries must speed up the transfer of new and environmentally sound technologies to developing countries and provide them with assured access to the best available of those technologies on preferential and non-commercial conditions in order to enable developing countries to improve the quality of growth and enhance their development prospects. 42. The international community should help those countries, which lack basic endogenous technological infrastructure to build up their own technological and skill capabilities. 43.  In view of the growing role of technology and trade-related information networks in facilitating international technology and trade transactions and the need to ensure that all countries benefit from these networks, an Information Network for Technology, Trade and Development should be established in UNCTAD. 44. Technical assistance through various modalities should respond to evolving needs and requirements of developing countries and assist their efforts in creating conditions conducive to technological innovation and R and D capacity-building, facilitation of technology acquisition, adaptation and utilization, and human resources development. It should also include training at firm level, comprising as well as operating plants, design and engineering and R and D organizations. In the area of technical assistance, UNCTAD through its Advisory Service on Transfer of Technology (ASTT) should continue to support the developing countries in order to strengthen their technological capacity. In this regard, Governments of developed countries and financial development institutions, in particular UNDP, are called upon to increase their financial support to the ASTT, enabling it to provide effectively the necessary assistance in the field of technology. 45.  In the elaboration of any system of intellectual property rights, consideration must be given to the public policy and development objectives underlying national systems of intellectual property of developing countries and to their need to import technology and to promote endogenous technological development. In this respect, it should be recognized that levels of intellectual property protection should be in consonance with stages of development, that the working of patents constitutes an important component of technology transfer and that appropriate disciplines for the control of restrictive practices are necessary. Also, any framework on intellectual property rights protection should provide for measures to facilitate access to technology by developing countries on fair and equitable terms and conditions. 46.  On the basis of the advances made in the talks on an international code of conduct for the transfer of technology and within the framework of a new international dialogue, UNCTAD VIII

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should agree to undertake work on the establishment of a global framework of principles and guidelines in order to facilitate the international transfer of technology on favourable terms and conditions and to encourage international technological co-operation among Governments and enterprises, leading to the strengthening of endogenous technological capacities. 47.  In relation to the negative impact of reverse transfer of technology, developed countries and international organizations should strengthen and further support the programmes aimed at sponsoring short-term visits of experts of developing country origin who are currently working in firms and institutions of the developed countries. These programmes would help developing countries in their efforts to further develop their indigenous technological base. 48.  To further promote technological capacity building in developing countries and to enhance international co-operation in the above areas, UNCTAD is called upon to intensify its research and policy analysis, in particular on the interrelationship between technology, trade, investment and development, and its technical assistance activities.

IV. Services Development and strengthening of the services sector in developing countries 49.  It is a matter of priority to develop and strengthen the capacity of the service sector of developing countries and expand their service exports. This calls for the execution of national strategies to attain these objectives, regional cooperation among developing countries and supportive action in the relevant international fora. Such actions should include: (a)  multilateral commitments and concerted policy actions for transfer of technology to build up their technological and human capabilities; (b)  effective market access for the service exports of developing countries, including through the temporary movement of labour for the supply of services; (c)  effective access to and participation of developing country service suppliers in information networks and distribution channels; (d)  control of anti-competitive practices of TNCs, through effective multilateral rules and principles and national legislation; (e) policies to promote training, acquisition and transfer of technology, know-how and know-why to benefit the developing countries; (f)  financial assistance on concessional terms by donors and multilateral bodies to enable developing countries to update their technological base, promote human skill formation and construct and/or improve basic services infrastructures, including sub-regional and regional transportation; (g) promotion of joint ventures, as a condition for market access, which provide for the strengthening of developing countries’ infrastructures and endogenous technological capacity; (h)  commitments by developed countries to provide enhanced ODA and credit lines on soft terms for the financing of service infrastructures in developing countries; (i)  establishment of contact points for information relating to the registration, recognition and obtaining of professional qualifications, the commercial and technical aspects of the supply of services and the availability of services technology. 50.  The multilateral framework of trade in services being negotiated in the Uruguay Round should be a viable instrument for promoting a healthy, secure and equitable world economy and provide clear scope for increasing participation of developing countries and symmetrical

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treatment of the movement of capital and labour. Developing countries should not be required to undertake commitments inconsistent with their developmental objectives and needs. Developing countries with a low level of development of their services sector, particularly the least developed countries, should not be required to undertake initial commitments as a precondition to participating in an eventual agreement on trade in services. The principle of progressive liberalization of trade in services should be fully respected and practically interpreted in the services negotiations. 51.  UNCTAD’s mandate with respect to services should be strengthened. UNCTAD should act as a forum for global analysis, dialogue, consultation and negotiation among countries in the context of an integrated programme of international cooperation to help developing countries overcome their handicaps in this sector, increase their share of exports in world trade in services and enhance the contribution of services to their development. In this context, UNCTAD should: (a)  examine the crucial role played by the services sector in the development process in order to help design strategies to strengthen this sector in the developing countries, and their production and export capacity. (b)  identify ways and means to increase the developing countries’ share in world trade in services and to remove the obstacles faced by the developing countries in their export of services. (c)  identify measures aimed at strengthening the institutional, technological and telecommunications infrastructure of the developing countries, including the incorporation into the services sector of new technologies that are of strategic importance for their development. (d)  design measures to allow developing countries access to information networks and distribution channels without which their export possibilities are limited. (e)  promote consultations and possible intergovernmental agreements for improving or protecting the functioning of the services markets, including control of anticompetitive practices. (f)  improve statistics relating to the services sector and increase knowledge on legislation affecting this sector. (g)  identify ways and means of providing preferential market access for service exports from developing countries. (h)  follow up and review the implementation of the results of the Uruguay Round negotiations on trade in services. 52.  UNCTAD should oversee developments and trends in individual services sectors, taking account of developments in other organizations with respect to increasing participation of developing countries in trade in these sectors, and identify problems facing such participation and suggest solutions, in particular on: (i) the best strategy to ensure growth of an indigenous service sector; (ii) conditions of market access for foreign firms; (iii) strengthening of educational systems and training infrastructures; (iv) removing obstacles to temporary mobility of labour and recognition of qualifications; (v) overcoming problems of infrastructural investment and obstacles to access to information networks and distribution channels; (vi) identification of new technologies in services which are strategically important for development and which enable the developing countries to plug into the international network of trade in services; (vii) identification of barriers to developing countries’ trade in specific sectors. 53.  UNCTAD’s valuable technical assistance work should be extended and enhanced to support pursuit of these objectives, with particular attention to:  design of strategies to improve the national production and services export capacity of the developing countries; improvement of knowledge of the sector at a national level in quantitative and legislative terms; support to the developing countries in multilateral negotiations on trade in services; the incorporation of ser-

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vices in regional integration schemes, and the execution of joint regional projects in specific sectors of services.

Maritime transport services 54.  Resolutions and Conventions adopted under the auspices of UNCTAD that aim at a more equitable participation of developing countries in world shipping by recognizing the right of developing countries to participate in the carriage of their foreign trade should remain the cornerstones of an international shipping policy based on the equality of all maritime partners. Any instrument resulting from the Uruguay Round multilateral negotiation on trade in services should preserve the role of the United Nations Convention on a Code of Conduct for Liner Conferences as an international regulatory framework, as well as the achievements made over the last two decades in reconciling different shipping objectives of the developed and developing countries. 55.  Assistance should be provided to developing countries in establishing bilateral and multilateral agreements between land-locked and coastal countries. UNCTAD and other international organizations should provide technical and financial assistance for the implementation of the Second United Nations Transport and Communications Decade for Africa, especially in the field of maritime transport, including through the establishment of joint ventures in shipping services, shipbuilding and repair services; harmonization of national shipping policies; documentation and procedures to facilitate maritime trade; aid to navigation and shipping communications; and manpower development in ports and multimodal transport. Regional cooperation in maritime transport also requires support from the international community and donor agencies. 56.  UNCTAD’s Advance Cargo Information System (ACIS) should be incorporated into the regular work programme of UNCTAD and expanded to cover all African and other developing countries.

V. Commodities 57.  A strengthened and effective international policy on commodities should aim at achieving a long-term solution to commodity problems and maximizing the contribution of the commodity sector to development. While preserving the spirit and principal objectives of the Integrated Programme for Commodities, the following goals are emphasized: (i)  Achieving a better balance between supply and demand for commodities at improved real prices that are remunerative and just to producers and equitable to consumers; (ii)  Ensuring greater stability of commodity prices and of revenue from commodity exports; (iii)  Improving market access for commodity products of developing countries; (iv)  Increasing transparency and halting speculative practices and manipulation of commodity markets; (v)  Making production and marketing structures for commodities in developing countries more efficient and competitive; (vi)  Maximizing export earnings of developing countries through active and increased participation in processing, marketing and distribution, including transportation; (vii)  Achieving a gradual reduction of the excessive dependence of developing countries’ economies on the export of a few commodities; (viii)  Promoting and developing resource-based industries in developing countries; (ix)  Ensuring proper management of natural resources with a view to guaranteeing sustainable development.

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Instruments, policies and measures 58.  Instruments, policies and measures should cover the following: (a)  International commodity agreements and arrangements. Negotiations between producers and consumers on concluding strengthened, effective and more efficient international agreements or arrangements, including study groups, should be promoted. In this regard, urgent attention should be paid to the agreements on cocoa and coffee. Health matters, technology transfer and services associated with the production, marketing and promotion of commodities should be incorporated or strengthened in commodity negotiations and international commodity agreements (b)  Access to markets. Dismantling of barriers, which restrict the access of developing country commodity products in primary and processed forms to developed countries’ markets, and improving developing country access to technology. (c)  Diversification. Resources for processing, marketing, distribution and transportation and horizontal diversification, including crop substitution, should be increased. A special fund for LDCs and African countries should be set up to assist them to that end. (d)  Compensatory financing. The need to maintain, improve and strengthen existing compensatory financing mechanisms, namely the IMF-CCFF, the ACP-EEC STABEX, and the Swiss schemes, and the desirability of other developed countries introducing similar schemes in order to relieve the chronic insufficiency of finance needed to meet export earnings shortfalls. Measures to be adopted in this field should lead to the establishment of a universal commodity-related compensatory financing system covering all countries and all commodities, operating on highly concessional terms and conditions and ensuring sufficient and timely disbursement of resources. This system should provide long-term commodity-specific finance to tackle the root causes of the shortfalls and to enhance processing and diversification in the commodity sector. These questions, as well as actions taken or required in the area of compensatory financing of export earnings shortfalls, should be kept under continuous review in UNCTAD. The UNCTAD secretariat should follow developments in various compensatory financing schemes and their implications for the development of developing countries. (e)  The importance of a favourable external environment. Since policies of developed countries by and large determine the external environment, including world market conditions for commodities, these policies, including monetary and fiscal measures, both at the macro and the commodity level, must be revised to take into account their impact on developing countries. (f) National policy co-ordination and transparency. With a view to achieving policy co-ordination and increased transparency, cooperation among interested developing country commodity producers, as well as among commodity producers and consumers, should be strengthened. (g)  The common Fund for Commodities. The Conference should express strong support for the Common Fund for Commodities and welcome the commencement of operations of the Second Account. Countries which have not yet joined the Common Fund should, as soon as possible, accede to the Agreement Establishing the Common Fund for Commodities. Efforts should be speeded up by ICBs to elaborate project proposals, including proposals on diversification, to be submitted to the Common Fund for financing through the Second Account.

Role of UNCTAD 59.  UNCTAD should remain the principal forum for establishing a consensus on international commodity policy. It should therefore continue to promote and monitor international cooperation

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in the field of commodities. This includes periodic and global reviews on the situation of and prospects for commodities in order to be able to define possible courses of action at the national, regional and international level for submission to Governments for their consideration. A firm commitment and appropriate decisions concerning a strengthened international commodity policy should be taken at UNCTAD VIII. As a result, a special session of the Trade and Development Board should be convened to study ways and means of implementing the abovestated policies measures.

Sustainable development and the commodity sector 60.  Price levels for natural commodities and their synthetic competitors must fully reflect environmental costs and resource values. Technical and financial support should be extended to developing countries to improve the competitiveness of natural products with respect to synthetics and substitutes. Environmental concerns should not create obstacles to trade in commodities nor be used as a way to obtain trade concessions or access to natural resources. Standards in this area should not be devised unilaterally, but should be internationally negotiated. International co-operation should facilitate the transfer of technology for environmentally sound methods of commodity production and processing. Such technologies should be freely available to developing countries on terms and conditions, which reflect the importance of environmental protection for mankind. Additional international finance should be made available to develop technologies to cope with environmental problems specific to commodity production and processing in developing countries.

PART TWO BROAD POLICY OBJECTIVES 61.  The policies proposed for development co-operation in relation to UNCTAD VIII aim to promote economic growth, technological capabilities and accelerated development in developing countries. To this end, it would be necessary to strengthen national, international and multilateral action for a healthy and equitable world economy, as well as to adopt policies for achieving the efficient allocation and use of human and economic resources. In line with the basic mandate of UNCTAD, the focus should be on international action and multilateral co-operation. 62. Good management and structural reforms at the national level—both in developed and developing countries—and at the international level are closely interrelated: better management at the international level has a positive influence on economic management at the national level and vice-versa. 63.  Good management at the global level requires an efficient and equitable international economic system. There should be an agreed system of rules for international trade and economic relations in general, as well as co-ordination of macro-economic policies with the participation of all countries concerned; further, the effects of national economic policy measures on the international economy and on global development should be taken into account. Good management requires the resolution of conflicts between economic actors, even the powerful. This demands the strengthening of the mechanisms for resolving disputes in the areas of trade, investment, intellectual property, and the environment. 64.  The international community must also show solidarity with the world’s poor. This calls for international measures to alleviate problems of poverty and unequal income distribution in the world economy, implying flows of concessional resources, favourable treatment in trade matters for developing countries and a correction of malfunctioning markets. Good management involves management of the world’s natural resources and ecological systems for future generations.

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Traditional concepts of economic efficiency should be reviewed to take into account the impact of economic activities on the environment, and international co-operation should be strengthened, including through the adoption of multilateral rules based on equitable burden sharing to better conserve the environment. 65.  Clearly, the difficulties of good domestic management are not exclusive to developing countries. The developed countries also have serious problems, as demonstrated by huge fiscal deficits and protectionism, as well as wasted resources. Moreover, the international impact of the absence of good management in the rich countries is much more serious than in the case of poor countries. 66.  In considering national action, attention must continue to be focused on the policies of the developed countries. Nevertheless, it is recognized that developing countries, responsible for their own development, would have the task of breaking out of the recessionary inertia of the 1980s and of speeding up their development. They should continue to transform their economies on an environmentally sustainable basis, pursue good management and use resources efficiently. Their main concern would be to enable their peoples to meet their basic subsistence needs while encouraging them to participate more actively in the development process. 67.  Recognizing that there are no universal solutions, developing countries should continue to adopt policies best suited to their individual requirements and objectives while keeping within the domestic social consensus, in order to correct all facets of their respective financial, monetary, economic and technical problems. Their quest for accelerated economic growth must integrate the pursuit of economic efficiency with their broader social objectives, including equity and environmentally sound policies. Developing countries also have to face the challenge of adjusting to the dynamic changes in the world economy, and to become internationally competitive by transforming their productive structures. 68.  Due to rapid changes in world technology and new emerging trends in the development process, industrial restructuring acquires increasing importance as a long-term multi-dimensional process to enhance and facilitate the growth and development of developing countries. In this context, national and international macroeconomic policies, the mobility of capital both internally and externally, access to markets, coherence between national trade and investment policies and the mobilization of investments to promote competitiveness and the development of developing countries are significant in directing the course of industrial restructuring. 69.  Developed countries have a major responsibility for adopting sound national and international policies in the use of resources because of their greater impact on the world economy and on the economic development of developing countries. The experience of the previous decades has shown that developing countries are vulnerable to the national and international actions of developed countries. Developing countries can only succeed if these policies and actions are supportive of accelerated and sustainable development. 70.  Developed countries should seek the most efficient means of real resources transfers—both financial and technological—to developing countries, taking as their criterion the genuine needs of the recipient countries. Developed countries should shoulder their responsibility for structural adjustment and make the necessary transition in the international distribution of labour, production facilities, and allocation of resources, particularly in those areas (for example in agriculture and textiles) where such action would stimulate economic growth in developing countries. Elimination of trade-distorting subsidies and reduction of fiscal deficits in developed countries would also contribute to a more rational allocation of resources—national and international. Developed countries have a duty to replenish and sustain the global environment in proportion to their responsibility for damage done to the environment.

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71.  In undertaking reform programmes and in seeking to become integrated into the international economic arena, the countries of Eastern and Central Europe should take into account the needs of developing countries so that existing trade levels are maintained and prospects for their expansion opened up. 72.  The United Nations Programme of action for African Economic Recovery and Development (UNPAAERD) 1986-1990 has provided a unique framework of international economic cooperation and solidarity with the objective of reversing Africa’s worsening social and economic conditions. UNCTAD should continue, within its mandate, to provide assistance to African countries, including continued analysis and research relating to problems of interest to Africa, as well as technical cooperation programmes in the region.

PART THREE  LEAST DEVELOPED COUNTRIES 73.  UNCTAD VIII should express satisfaction over the adoption of the Programme of Action for the Least Developed Countries for the 1990s by the Second United Nations Conference on the Least Developed Countries held in 1990, and call upon the international community to implement the Programme fully and expeditiously. It should urge the developed countries to provide adequate support to complement domestic efforts and policies of LDCs within the framework of the Programme of Action. 74.  (a) UNCTAD VIII should call upon the developed countries to: (i) implement their commitments to provide the LDCs with a significant and substantial increase in the level of highly concessional and non-debt-creating external financial resources, including compensation for the economic consequences of unforeseen external events; towards this end, donor countries should redouble their efforts to reach their ODA targets established in the Programme of Action; (ii) reduce the debt stock and debt-servicing burden of the LDCs, including debt due to multilateral financial institutions; for this purpose: - all developed country donors which have not yet implemented debt relief programmes should, as a matter of urgency, take steps to cancel or provide equivalent relief on all LDCs ODA debt; - the developed country creditors should agree to cancellation of all LDCs’ bilateral official debts, including the non-concesional part of this debt; - appropriate measures should be taken to alleviate the multilateral debt of LDCs, and new multilateral financing should be on concessional terms only; - LDCs with overdue financial obligations should be helped to clear their arrears and be provided with finances required for adjustment programmes; - additional resources should be provided to reduce LDCs’ commercial debt through, inter alia, implementation of debt buy-back and conversion schemes; - UNCTAD should convene, in collaboration with the relevant multilateral institutions and development funds, LDCs, donor countries, creditors, and NGOs, an expert group meeting to review the experience gained of mechanisms used so far for commercial debt reduction in the LDCs and to explore further initiatives which could be taken to help LDCs eliminate their commercial debt; (b)  As external trade is seen in the Programme of Action as a vehicle for net resource flows to LDCs, the Uruguay Round of multilateral negotiations should result in substantially improved market access for exports of LDCs. In this connection, UNCTAD VIII should call

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upon the international community to implement measures contained in the Programme of Action, in particular: (i) advanced implementation of MFN concessions of particular interest to LDCs made by the contracting parties to the GATT: (ii) enhanced access for products of LDCs through the elimination of tariff and non-tariff barriers; (iii) the fullest possible liberalization of trade in textiles negotiated in the Uruguay Round; (iv) GSP schemes should be improved by increasing the range of products covered or the tariff concession, applying flexible rules of origin, special terms of ceilings, and greater long-term stability and predictability in the management of GSP schemes; (v) developed countries are strongly urged to take steps to simplify procedures and help LDCs take full advantage of the GSP schemes; (vi) the results in the TRIPS negotiations in the Uruguay Round should not further constrain technological capacity building, particularly with regard to access to technology by the LDCs; therefore, the LDCs should be exempt from any additional obligations beyond those already undertaken in existing intellectual property conventions in order to provide them with adequate flexibility in meeting the immense challenge they face in their efforts for technological transformation; (c)  As stressed in the Programme of Action, the international community should intensify its support for LDCs’ efforts towards diversification, increased processing and increased participation in the marketing of their products by providing adequate financial and technical assistance; (d)  The International Monetary Fund is called upon to facilitate LDCs’ access to the resources of its CCFF on concessional terms; the EEC and Switzerland are requested to increase the resources of their compensatory programmes, and other developed countries to establish similar programmes; (e)  The twin problems of the LDCs’ pervasive poverty and environmental degradation have to be tackled simultaneously to provide a basis for long-term sustained growth and sustainable development. The United Nations Conference on Environment and Development should provide measures to enable the LDCs to pursue their efforts to incorporate environmental dimensions into their development objectives and policies. In order to fully benefit from such measures, the LDCs would require financial and technical support to strengthen their human, institutional and technological capacities; (f)  Urgent and sustained implementation by the international community of the measures outlined in paragraph 105 of the Programme of Action is called for in order to assist LDCs to overcome their technological backwardness and improve scientific skills and R and D capabilities for acquiring, adapting and absorbing modern technology; (g) The General Assembly decided that regular monitoring of the progress on the Programme of Action should be undertaken at three levels, namely national, regional and global, and that the Trade and Development Board of UNCTAD should consider annually the review of progress at the global level. Country review mechanisms such as UNDP Round Tables and World Bank Consultative Groups would continue to constitute the backbone of the country review process. In this connection, the need for the following should be stressed: (i) organizing country review meetings on a more systematic and regular basis; (ii) assisting LDCs in strengthening their capacity to ensure their leadership role in the country review process;

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(iii) establishing strong links between the follow-up at the national and the global levels; (iv) for the Trade and Development Board to take corrective measures, when necessary, to ensure the realization of the objectives of the Programme of Action.

PART FOUR INSTITUTIONAL MATTERS: ADAPTING UNCTAD TO A CHANGING INTERNATIONAL ECONOMIC AND POLITICAL ENVIRONMENT 75.  The recent events and developments in the international economic and political environment have opened up possibilities for a new era of partnership among nations. In this new era, the development problematique constitutes a major challenge for international peace and security, and has therefore to be tackled with vigour and determination. UNCTAD, as a universal and democratic forum with a central mandate on trade and development issues, has a major role to play in these endeavours. In this context, UNCTAD VIII provides an opportunity to impart a new impetus to the development co-operation dialogue by reaffirming UNCTAD’s mandate and carrying forward, in a decisive manner, the necessary institutional adaptation in the context of the ongoing reform of the economic and social sectors of the United Nations. 76.  Revitalizing UNCTAD’s role and effectiveness in the emerging world should be viewed as a continuous process leading to improved mechanisms for the consideration of all interrelated development issues and for enhancing UNCTAD’s role in a strengthened international trading system. The success of institutional revitalization will fundamentally depend on the political will of members States and on their commitment to fully utilize the possibilities and means offered by UNCTAD as a forum for constructive dialogue and negotiations conducive to the adoption of measures that can be implemented in a pragmatic fashion through reinforced and more operational mechanisms. 77.  Institutional revitalization should thus strengthen UNCTAD’s functions regarding global analysis and policy co-ordination, negotiation and technical co-operation, as follows: (a)  Global analysis and policy co-ordination: (i) The identification and analysis of emerging relevant issues in a rapidly changing world needs to be viewed as a major and integral element of UNCTAD’s regular activities. (ii) UNCTAD should continue to carry out a global analysis of the growing interdependence of issues and nations, and evaluate in particular the impact of such interdependence on the development prospects of developing countries. In order for UNCTAD to make a more effective contribution to policy coordination on these issues, appropriate institutional arrangements should be established, including ministerial meetings of the Board. (iii) As an essential part of its role in global analysis and policy coordination, UNCTAD is expected to formulate strategies comprising national and international policy measures required for enhancing the development prospects of developing countries. Such strategies would normally comprise short, medium and long-term policy measures. (iv) The global analysis of interdependence by UNCTAD should comprise a systematic review of the policies and measures agreed upon at other multilateral financial and trade institutions (IMF, World Bank, GATT, etc.) in order to assess their implications for developing countries. (b)  Negotiations and follow-up: (i) New mechanisms and criteria need to be devised for promoting negotiation, which ought to be seen as the culmination of a process of dialogue and co-operation.

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(ii) In addition to conferences aimed at achieving broad consensus on development co-operation, the negotiation of specific agreements with well-defined objectives, and open to all interested countries, should be promoted. (iii) In fulfillment of UNCTAD’s mandate and its role of global policy coordination, decisions and agreements reached in UNCTAD should contribute to decision-making in other international fora and there should be greater interaction between UNCTAD and other institutions. (iv) The participation at UNCTAD meetings of high-level officials involved in decision-making on economic issues should be encouraged. (v) Effective surveillance and follow-up mechanisms should be established so that decisions and resolutions adopted in UNCTAD are translated into concrete action. Such mechanisms would need to apply to broad issues falling within its mandate as well as to specific issues for which UNCTAD has a follow-up responsibility. (c)  Technical co-operation for developing countries: (i) Technical co-operation has been growing in importance among UNCTAD’s endeavours, and needs to be action-oriented and further strengthened and expanded. (ii) To this end, there is a need to further enhance the links and cross-fertilization between the secretariat’s operational capacity to provide technical co-operation on one hand, and its functions in the field of research and analysis on the other. These two sets of activities ought indeed to be viewed as mutually supportive and equally relevant. (iii) Technical co-operation should play an important role in enabling developing countries to derive maximum benefits from international agreements related to UNCTAD’s areas of concern. (iv) Regular consultations and co-operation between UNCTAD and development and financial institutions should be enhanced so as to ensure the optimization of technical cooperation projects. (v) A strengthened and meaningful technical co-operation programme will require political support and increased extra budgetary financial contributions from member States, particularly developed countries. Closer co-operation between UNCTAD and UNDP should be encouraged. 78.  In order for UNCTAD to discharge its functions effectively in the new, rapidly changing world, it is of utmost importance that the independence of analysis and initiative of the secretariat be preserved, and that greater dynamism and flexibility in methods of operation of the intergovernmental machinery be introduced. For the same reasons, strengthening mutual support between UNCTAD and other programmes and agencies of the United Nations system, particularly the regional economic and social commissions and sub-regional institutions, should be pursued. Furthermore, UNCTAD should benefit from the potential role of relevant non-governmental actors. 79.  Greater dynamism and flexibility in the methods of operation of the group system should be envisaged. To this end, the present structure of groups will need to be complemented with flexible mechanisms such as ad hoc, issue-oriented groupings, which should be open to all those who express interest in these issues and should be operationally transparent. At the same time greater intra-group and cross-group communication could contribute to further enhancing dynamism and flexibility. Action in this regard could also include a greater involvement of regional groups in debates and negotiations so as to bring more effectively the specific national and regional perspectives to such debates and in negotiations, thereby forging more durable and meaningful multilateral solutions. 80.  In this context, the Group of 77 should be strengthened in its negotiations by enhancing its role and cohesiveness as a mechanism for political co-ordination on the main overall interests,

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objectives and policy proposals of developing countries. In doing this, the Ministers, on the basis of common interest, reiterate their commitment to preserving the solidarity and enhancing the negotiating capacity of the Group of 77. 81.  The Group of 77 reaffirms the role of the Group of 24 as the principal forum for coordinating the views of developing countries on international monetary and financial issues. The analyses undertaken by the Group of 24 serve as useful guidance to the Group of 77 in dealing with these issues. They call for intensified interaction between the two groups to enable the developing countries in UNCTAD to benefit more effectively from the activities of the Group of 24 in relation to monetary and financial questions. 82.  In the context of global interdependence, UNCTAD, as a multilateral organization, should act as a catalyst for building a new international consensus between developed and developing countries around the fundamental principles that should govern international economic relations.

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8.  Ministerial Meeting of the Group of 77, Midrand, South Africa, 28 April 1996, in preparation for UNCTAD IX in Midrand, South Africa, from 27 April to 11 May 1996 a.  The Midrand Declaration 1.  We, the Ministers of the Group of 77 and China, met in Midrand, Republic of South Africa, on 28 April 1996. We express our deep appreciation to the Government and people of South Africa for hosting UNCTAD IX and for making arrangements for our Ministerial Meeting. 2.  We recall that the Group of 77 and China have played a significant role in promoting the interests of the developing countries in various international forums, including UNCTAD. We express our commitment to further enhancing the solidarity and cohesiveness of the Group of 77 and China by establishing more effective and flexible coordination to meet the challenges of development, taking into account the various approaches contained in the different regional Ministerial Declarations of the Group of 77 and China. 3.  In recent years, the world economy has experienced far-reaching changes,  resulting in part from such complex phenomena as globalization and liberalization. The twin processes of liberalization and globalization are shaping a new system of international economic relations in which the changing patterns of production, investment and trade, the global span of finance and the central role of technology are increasingly dominant. The market mechanism has become the pre-eminent instrument for the allocation of resources but is unable to resolve all existing development challenges. Many opportunities for growth and development are inherent in these changes. However, developing countries, due in large part to various constraints beyond their control, could well find themselves excluded from full participation in this process and from its benefits. 4.  To ensure further policy coherence at the international level, we call for full and effective participation of the developing countries in the process of decision-making and in the resolution of world economic problems through strengthened multilateralism. We also call for the improvement of macroeconomic policy coordination on a global basis aimed at promoting sustained growth and development of the developing countries. 5.  We reaffirm the continuing relevance and role of UNCTAD as the principal forum of the United Nations General Assembly for the integrated treatment of development and interrelated issues in the areas of trade, finance, investment, services, commodities, technology, sustainable development and the promotion of international economic relations conducive to development. It should continue its analysis of global interdependence issues. As we approach the new millennium, UNCTAD, as a universal forum for intergovernmental deliberations, negotiations and consensus building, should be at the forefront of international efforts to promote the development of developing countries, particularly the least developed and small vulnerable economies. 6.  In view of the new world realities and challenges, there is a pressing need to reform and revitalize UNCTAD, in both its operational and institutional aspects, so that it may continue to better serve the interests of the developing countries. We should ensure that UNCTAD makes a meaningful contribution to improving the conditions of life of all of our peoples. In this respect, we recognize the need to review the implementation of the policies and decisions of the relevant intergovernmental bodies of the system and promote coordination between UNCTAD and other international organizations, in particular WTO and the Bretton Woods institutions. 7.  In devising an appropriate and adequate work programme for UNCTAD, without losing its important global macroeconomic analysis functions, in the  coming years the main thrust of

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UNCTAD’s work should be along two complementary axes. From its unique development perspective, UNCTAD should contribute to the preparation of the agenda for future multilateral negotiations. Secondly, it should focus on the delivery of practical services to member States in the field of technical cooperation and advice in such areas as trade, negotiations, commodities, investment promotion, enterprise development, trade and environment, trade efficiency and services. 8.  The eradication of poverty in large parts of the developing world, especially in least developed countries, low-income countries and other small vulnerable economies, is an ethical, social, political and economic imperative for the international community. In addition to the necessary national action, it also requires significant international cooperation involving private and public sector institutions. In this respect, UNCTAD should play a decisive role in seeking solutions to the problems of poverty, taking into account the results of the World Summit on Social Development. 9.  UNCTAD should continue to analyse the issue of external debt which affects many developing countries, with a view to formulating integrated proposals for these countries in order to find comprehensive and durable solutions to debt and debt-service problems aimed at accelerating their economic growth and development. UNCTAD should also reinforce technical cooperation in this matter. 10.  We affirm the importance of open and flexible economic cooperation among developing countries (ECDC) in all its forms, modalities, and geographic scopes as a strategy of growth and development. 11.  The Uruguay Round Agreements and the establishment of the World Trade Organization (WTO) have boosted confidence in the multilateral trading system. However, its credibility and sustainability are being threatened by emerging recourse to unilateral and extraterritorial measures. Environmental and social conditionalities should not constitute new obstacles to market access for developing countries. 12.  We express our deep concern at the continuing use of coercive economic measures against developing countries, through, inter alia, unilateral economic and trade sanctions, which are in clear contradiction with international law. In this respect, we object to the new attempts aimed at extra-territorial application of domestic law, which constitute a flagrant violation of the United Nations Charter and of WTO rules. 13.  We call for a renewed political commitment to free trade and agree that the Uruguay Round Agreements should be fully implemented in letter and spirit. The universality of WTO, which is of great importance to strengthening and improving the multilateral trading system, must also be realized as soon as possible. Moreover, developing countries seeking accession to the WTO and/ or those which are in the early stages of their integration into the international trading system should be given the opportunity to achieve accession on balanced terms consistent with WTO rules, as well as the level of  their economic development, trade, and financial and developmental needs. 14. We call on the Conference to make positive contributions to the Singapore Ministerial Meeting of the WTO due to be held in December 1996 by transmitting its assessment of challenges and opportunities arising from the Uruguay Round Agreements from a development perspective. This should include, inter alia, new and emerging issues seen from the same perspective in order to ensure that the benefits of the evolving multilateral trading system promotes sustained economic growth and sustainable development by including further trade liberalization in the areas of interest to developing countries. 15.  The present situation calls for real partnership and promotion of international cooperation to harness the positive impulses of globalization and liberalization and to forestall the negative

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implications. UNCTAD IX provides an exceptional opportunity to reinvigorate the dialogue on development and international economic cooperation with a view to revitalizing the development of developing countries through a genuine partnership. All Governments should spare no effort to seize the opportunity of forging a real global partnership aimed at ensuring international peace and development. 16.  The international community should promote concrete policies, measures and actions to achieve the objectives of sustained growth and sustainable development. We reiterate, once again, our commitment to the objectives of international peace and development, underlining our conviction that no peace can be achieved without development. 17.  We trust that the spirit of South Africa will inspire the continuous and constructive dialogue between all member States of UNCTAD with the ultimate objective of achieving equitable and sustainable development and prosperity for all.

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9.  Ministerial Meeting of the Group of 77, Marrakech, Morocco, 16 September 1999, in preparation for UNCTAD X in Bangkok, Thailand, from 12 to 19 February 2000 a.  The Marrakech Declaration 1.  We, the Ministers of the Group of 77 and China, met in Marrakech, Kingdom of Morocco, on 14-16 September 1999, in preparation for the tenth session of the United Nations Conference on Trade and Development (UNCTAD X) to be held in Bangkok, Thailand, from 12 to 19 February 2000. We express our deep appreciation to the Government and people of Morocco for hosting our Ministerial Meeting. 2.  We affirm our commitment to promoting the interests of the developing countries in the various international forums, of which UNCTAD X will be the first major multilateral economic event of the new millennium. 3.  We reaffirm the role of UNCTAD as the principal forum of the United Nations for the integrated treatment of development and interrelated issues in the areas of trade, money and finance, investment, technology, commodities, competition and sustainable development. The significance of this role has increased in an era characterized by the complex relationship between globalization and development and by the inherent imbalances in the structure of the international systems governing development, trade and finance. The recent monetary and financial crises have shown how contagious they can be in countries and regions, with far-reaching negative effects on trade and economic growth. The differential reach and impact of globalization has generated economic asymmetries, both at the global and national levels, and poses new challenges to our development aspirations. Many developing countries, particularly the LDCs and the structurally weak and vulnerable and small economies, have faced difficulties in their efforts to integrate effectively into the world economy, and have suffered the consequences of globalization. 4.  We consider UNCTAD X, therefore, an occasion to review and reinvigorate international economic cooperation with a view to enhancing the development of developing countries and to providing fresh orientations for a development paradigm consistent with the exigencies of the new millennium. Globalization should be a powerful and dynamic force for strengthening cooperation and accelerating growth and development. It presents opportunities, as well as risks and challenges. Globalization is a process, which can be uneven and unpredictable, but if it is properly harnessed and managed, the foundations for enduring and equitable growth at the international and national levels can be laid. National efforts need to be complemented by intensified international cooperation in order to reverse the marginalization and manage the risks, overcome the challenges and seize the opportunities created by globalization. 5.  We call on the international community to consider a new approach to international development cooperation based on growth, stability and equity with the full participation and integration of developing countries in the globalizing world economy. The success of our national efforts requires supportive international frameworks, premised on a new development policy consensus, which incorporates lessons learned from recent experience. This new policy should aim at the creation of more equitable and effective international economic structures in finance, trade and transfer of technology, as well as address the endemic problems of debt and transfer of resources, financial vulnerability, declining terms of trade in primary commodities, and restricted access to developed country markets. To this end, there is a need for greater coherence in global economic policy-making and more participatory decision-making. There is also a need for greater

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coordination, coherence and concerted action among international institutions to promote growth and development in developing countries. 6.  Solidarity in action is needed to eliminate poverty and to avoid the marginalization of a large part of the world’s population, especially women and children and other vulnerable groups, and to ensure equal opportunities for all. In this respect, it is necessary to implement fully and expeditiously the agreed commitments and outcomes of the major United Nations conferences and summits of the 1990s. 7.  The smooth functioning of the international financial markets is a key factor for the external financing of our countries. The influx of foreign capital stimulates economic activity and complements domestic investment. The Asian financial crisis has highlighted the deficiencies of the existing international system. These deficiencies require a vigorous international response aimed at establishing a new international financial architecture. UNCTAD should contribute, in close consultation and cooperation with other competent entities, with proposals that guarantee the full participation of the developing countries. These proposals should include, among other aspects, reforms of the monitoring and regulation systems, improved response capabilities for dealing with the emergence and spread of financial crises, and should give the developing countries greater flexibility and autonomy in the management of capital flow policies. The discussions on the reform of the global financial architecture should place more emphasis on financing for development, in addition to greater financial stability. It is also important that these reforms should include greater participation by the developing countries in the decision-making processes of the international financial institutions, consistent with the growing weight of these countries in international trade and investment flows and the significant impact the reforms will have on them. 8.  We express grave concern over the decline in levels of ODA to less than one-third of the internationally agreed target of 0.7 per cent of GNP of donor countries. The budget constraints of the countries of the Development Assistance Committee (DAC) can no longer be advanced as a reason for such a dramatic decline in ODA, as many developed countries have reduced budget deficits or enjoy unprecedented surpluses. This trend in ODA flows should be reversed as a matter or urgency. We reiterate that the agreed principle of non-conditionality should be followed when development assistance is provided. 9.  The burden of external debt continues to be one of the main obstacles to the achievement of the social and economic development objectives of the developing countries. The heavy debt of the HIPCs, the majority of which are also LDCs, continues to be a cause for great concern. Current conditions make it necessary for a high percentage of the gross domestic product to be devoted to debt-service payment, with the consequent risks for social and political stability. UNCTAD should continue to study and propose strategies with a view to arriving at a lasting solution to the problem of the external debt of the developing countries, which also covers the elimination of the structural causes of indebtedness. These proposals should comprise various types of solution, which take into account the payment capacity of each country. 10.  We welcome the recent initiative on debt reduction undertaken in the context of the G-7 Cologne Summit; it needs to be implemented speedily, from additional resources, to give real hope to the world’s poorest countries. However, the new initiative may prove to be insufficient to support globally agreed targets for poverty reduction by the year 2015. We express concern that relief is still attached to performance under the Enhanced Structural Adjustment Facility (ESAF). Such reform programmes should be designed and developed with a view to enhancing economic development and poverty reduction. The Cologne initiative should be flexibly interpreted by the international financial institutions to the full benefit of all debtors without discrimination, and appropriate resources should be devoted to reduce considerably the stock of debt and its servicing, while bearing in mind that debt relief measures should safeguard social, economic and

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political stability in developing countries. Furthermore, the debt problems of middle-income countries need to be addressed, through, inter alia, the expanded use of debt swaps and conversion and more generous refinancing terms. 11.  We see the liberalization of international trade under WTO rules as a powerful and dynamic force for accelerating growth and development. We are strongly committed to persevering in the pursuit of liberal and open trade policies, which integrate the development dimension. The challenge for the Third WTO Ministerial Conference is to make resolute progress along the path towards an open international trading system whose benefits are equitably distributed. 12.  We note with great concern, however, that the benefits of the existing multilateral trading system continue to elude developing countries. Progress towards full liberalization in sectors of particular interest to them is lagging behind, and significant imbalances between rights and obligations exist in multilateral trade agreements (MTAs), as well as in conditions of market access. The persistence of these anomalies could erode the confidence of developing countries in the multilateral trading system and strengthen the hand of those who would wish to retreat into misguided protectionist policies and approaches. 13.  We therefore attach utmost importance to addressing the issues and difficulties faced by developing countries that have arisen in the course of the implementation of the WTO MTAs. In this way developing countries can achieve a share in the growth of international trade commensurate with their economic development needs. The non-realization of benefits by many developing countries in areas of interest to them has resulted from the failure of major trading partners to fully and faithfully meet their obligations in these areas, particularly textiles and clothing. We therefore urge that the question of the implementation of Marrakech Agreements and Decisions be addressed and resolved at Seattle by the Third Ministerial Conference of the WTO. 14.  In particular, the special and differential provisions in the WTO MTAs, many of a ‘best endeavour’ nature, which have largely remained unimplemented, must be operationalized if the developing countries are to derive the expected benefits. 15.  We believe that the negotiations provided for under the ‘Built-in Agenda’ should be launched without delay responding to the priorities of developing countries: -   In agriculture, the objective should be to incorporate the sector within normal WTO rules, addressing the particular problems of predominantly agrarian and Small Island developing economies and net food-importing developing countries. -   Negotiations on trade in services should be carried out within the existing architecture of GATS and aim at the liberalization of sectors of special interest to developing countries and the movement of natural persons, while taking account of the impact of electronic commerce. -   The mandated reviews under the WTO MTAs ought to redress imbalances and to ensure that provisions in favour of developing countries are effectively implemented. 16.  We call upon developed countries to demonstrate a firm and unequivocal commitment to opening their markets to the exports of developing countries, and to provide duty free and quota free access for the exports of the least developed countries. This should not affect WTO members’ existing commitments relating to preferential schemes. Any future negotiations should address the elimination of tariff peaks and tariff escalation and should introduce further disciplines to prevent the abuse of measures such as antidumping, countervailing duties and safeguard actions, sanitary and phytosanitary regulations and technical barriers to trade, as well as to prevent the apparent revival of the use of voluntary export restraints. The work programme on the harmonization of non-preferential rules of origin should be achieved rapidly, to attain simplified, harmonized and more transparent rules.

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17.  We will collectively pursue a positive agenda for future multilateral trade negotiations which should also pay particular attention to such issues as transfer of technology, appropriate safeguards for developing countries, credit for autonomous liberalization, export finance, commodity markets and the integration of the developing countries into the multilateral trading system on equitable terms. These negotiations should make operational the provisions under the TRIPs Agreement relating to the transfer of technology, to the mutual advantage of producers and users of technological knowledge and seek mechanisms for a balanced protection of biological resources and disciplines to protect traditional knowledge; enable developing countries under the TRIMs Agreement and the Agreement on Subsidies and Countervailing Measures to use measures necessary to implement their policies for development and export diversification and upgrading. 18.  The Singapore Ministerial Declaration confirmed that ILO is the competent body to set and deal with all issues relating to labour standards. We therefore firmly oppose any linkage between trade and labour standards. We are also against the use of environmental standards as a new form of protectionism. We believe that issues relating to such standards should be dealt with by the competent international organizations and not by the WTO. 19.  We are convinced of the need for differential and more favourable treatment of developing countries. This includes assistance to developing countries to help overcome transitional costs and to allow time for achieving development goals and enhancing competitiveness. The concept of special and differential treatment should be reviewed and strengthened to take account of the changing realities of world trade and of globalized production, and must be accompanied by capacity-building, enhanced market access and measures taken by industrialized countries to encourage their enterprises and institutions to transfer technology and know-how and invest in developing countries. 20.  Eliminating trade barriers will not be enough to accelerate the integration of developing countries into the multilateral trading system. We therefore call upon the international community to expand technical cooperation and capacity-building programmes, and to provide support for overcoming supply-side deficiencies and improving the trade infrastructure in developing countries, particularly the LDCs and small economies. There is a need to strengthen their export sectors and stimulate the positive contribution, which the commodity sector can make to development through diversification. Implementation of activities within the integrated framework for trade-related technical assistance endorsed by the 1997 WTO high-level meeting on LDCs’ trade development needs to be accelerated, and we call on our development partners to provide the necessary resources for this objective. 21.  Further, we call on the international community to give serious consideration to the proposals adopted by the LDCs’ Coordinating Workshop convened in South Africa in June 1999. 22.  We note the importance for all countries of consistency between national trade policies and the multilateral trade agreements. In this regard, we express our concern at: -   the continuing use of coercive economic measures against developing countries, through, inter alia, unilateral economic and trade sanctions which are in contradiction with international law, in particular new attempts aimed at extraterritorial application of domestic law, which constitute a violation of the United Nations Charter and of WTO rules; and that -   the preferential trade access granted to some of our countries continues to be tied to conditions not related to trade. We believe that these harmful practices, which conflict with WTO rules, should be eliminated. 23.  The universality of the World Trade Organization should be achieved as soon as possible in order to strengthen the multilateral trading system. We strongly believe that appropriate assistance should be made available to developing countries seeking accession. They should be offered terms that do neither exceed nor are unrelated to the commitments of developing country and

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LDC members of WTO. We urge that all WTO members refrain from placing excessive or onerous demands on applications from developing countries. Therefore, there is a need for a transparent, streamlined and accelerated accession process that is in keeping with WTO rules and disciplines. 24.  We recognize the importance of regional and subregional integration. Such arrangements facilitate trade and investment flows, economies of scale, economic liberalization and the integration of their members into the system of international economic relations within a framework of open regionalism, enabling progress towards a more open multilateral system. 25. We attach importance to achieving greater complementarity in international economic policy making. The international institutions involved should pursue mutually supportive policies which would enable developing countries derive maximum benefit from the Multilateral Trade Agreements, while respecting the rights of developing countries enshrined in these Agreements. 26.  The issue of commodities continues to occupy a priority place on the development agenda, inasmuch as the revenue from exports of these products continues to be of cardinal importance. UNCTAD needs to carry out analytical studies and provide technical cooperation to support our countries in the horizontal and vertical diversification of the goods we produce for export. There is a need to strengthen the export sector and stimulate the positive contribution, which the commodity sector can make to development, and the international community is urged to further support the Common Fund for Commodities, including fulfilment of the pledges for contributions. 27. Recognizing the important contribution of foreign direct investment to our growth and development, and the modernization of our production processes, we welcome investment in productive activities in our economies, both to create jobs and share skills, technology and know-how with our peoples, and to do business and form partnerships with our enterprises so that all enterprises can be globally competitive. We call on major home countries to expand their guarantee facilities for investment in especially LDCs, and we urge the Multilateral Investment Guarantee Agency (MIGA) to provide preferential premiums for investors from developing countries that have no guarantee systems of their own. Further study of issues related to the development dimensions of international investment agreements is needed. We encourage the development of viable and internationally competitive enterprises in developing countries and we will continue to support cooperative arrangements for enterprise networking across regions and subregions. UNCTAD, in its activities on small and medium-sized enterprises, should in cooperation with other relevant organizations assist developing countries in their efforts to develop women entrepreneurship. 28.  We reiterate the importance of expanding the opportunities and channels for transfer of technology and know-how to developing countries. There is a need to analyse the impact of existing multilateral trade agreements on access to technology. There is also a need to implement commitments, embodied in existing international agreements, related to technology transfers to developing countries. We believe that the transfer of technology should not be restricted on an arbitrary or discriminatory basis, especially to developing countries. Rather, the international community should establish principles and guidelines for the sharing of knowledge and technology for development. 29.  The information revolution is transforming the conduct of business. The capacities of developing countries to participate effectively in electronic commerce need to be strengthened. There is also need for analysis of the implications of electronic commerce on trade and development prospects for developing countries. The fiscal, legal and regulatory aspects of electronic commerce should be analysed.

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30.  We welcome the fact that some developing countries are acquiring new potential by becoming important foreign investors and actors in international trade. Thus, there are greater possibilities for Economic Cooperation between Developing Countries (ECDC) to increase investment and mutual trade, as well as close industrial and technological cooperation. ECDC at the regional, subregional and interregional levels is important for linking our economies into viable economic spaces necessary for stimulating dynamic trade and investment growth. We welcome the successful conclusion of the second round of negotiations on the Global System of Trade Preferences among Developing Countries (GSTP) and invite participant countries to join efforts in deepening, speeding up and expanding the GSTP to enhance its impact and to examine possible ways of rationalizing the process of negotiations for a third round. 31.  The South Summit of the year 2000 (in Havana) should be an important landmark towards enhancing North-South cooperation and ECDC and make recommendations to meet the challenges of the new millennium. 32.  The capacities of UNCTAD should be brought to bear in defining a new development paradigm based on sustained economic growth and sustainable development and providing orientations for development strategies and policies of the future. In this regard, we propose that UNCTAD devote the high-level segment of the sessions of the Trade and Development Board to debate on new strategies for development. UNCTAD should be provided with the necessary resources to become the driving-force behind the new consensus for development. 33.  UNCTAD has a vital role to play in shedding light on emerging trends and shaping policies in the areas of trade, competition, investment, technology, electronic commerce, environment and finance for development, and on such issues as providing greater market access, easing the debt burden, and promoting financial flows, FDI, technology and capacity-building for human resources. UNCTAD should continue to provide assistance to developing countries in the analysis of international trade issues and in the formulation of their positive agenda for future deliberations and negotiations in the WTO. UNCTAD should also provide analytical inputs on international economic and trade issues so as to facilitate the effective participation of developing countries in multilateral discussions and negotiations. UNCTAD’s development perspective is particularly appropriate for building consensus and developing appropriate guidelines and principles on emerging economic issues. 34.  In this context, UNCTAD’s work should contribute to the identification and application of special measures to deal with the situations of developing countries, among which are the least developed, landlocked and transit countries and small developing island States, and structurally weak, vulnerable and small economies. 35.  UNCTAD’s technical cooperation activities are an essential complement to its analytical and policy work, providing practical and direct benefits to recipient countries and also serving as a conduit for the assimilation of development experiences at the country and regional levels into more coherent and development-friendly policy approaches at the international level. Technical cooperation activities, encompassing policy advice, training and capacity-building programmes, should be demand-driven and emanate from the core competencies of UNCTAD. We are appreciative of the extra-budgetary contributions of donor countries and urge their continuing support, including for the Trust Fund for LDCs. Also, additional funds should be made available for technical assistance in order to continue financing the participation of national experts of developing countries in the expert meetings, taking into account the special needs of LDCs. 36.  We look forward to an elaboration of the different possible modalities for the establishment, within UNCTAD, of a centre with teaching and support capability for the developing countries, as proposed in the Plan of Action.

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37.  We reiterate our firm commitment, in accordance with the United Nations Charter and the principles of international law, to the promotion of international peace and security, the elimination of foreign occupation and the economic prosperity of all nations. We express our readiness to cooperate with others in achieving these objectives, which would ensure a better world for present and future generations. 38. These are challenging times, especially for the developing countries. Yet there are also opportunities for building the foundations of a more equitable and dynamic system of international economic relations. Working in concert with our development partners in a constructive dialogue at UNCTAD X, we can and we will seize these opportunities to make progress towards a world of prosperity and equity of all peoples.

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10.  Ministerial Meeting of the Group of 77, São Paulo, Brazil, 11–12 June 2004, in preparation for UNCTAD XI, São Paulo, Brazil, from 13 to 18 June 2004 a.  The São Paulo Declaration We the Ministers of the Member States of the Group of 77 and China meeting in São Paulo, Brazil, on 11 and 12 June 2004 for the commemoration of the fortieth anniversary of the Group of 77, Having reviewed on the eve of UNCTAD XI the achievements of the Group of 77 and the challenges facing it over 40  years of commitment to the cause of development; and having assessed the complex and fast changing world economy and the evolving international economic relations in the face of new challenges and opportunities, Reaffirming the common aspirations, unity and solidarity that led to the adoption of the Joint Declaration of the Seventy-seven developing countries at the conclusion of the first session of the United Nations Conference on Trade and Development, on 15 June 1964 in Geneva, and the Charter of Algiers on the occasion of the First Ministerial Meeting of the Group of 77, on 25 October 1967 in Algiers, Algeria, Recognizing the continued expansion of its membership from 77 to more than 130 countries today, Reaffirming the positive approach that guides the work and the role of the Group in dealing with international economic and development issues, and the principles of cooperation and non-confrontation, on the basis of interdependence of nations and the shared values and common destiny of mankind, solemnly declare the following: 1.  The establishment of the Group of 77 at the first UN Conference on Trade and Development (UNCTAD) was a historic turning point as the developing countries found a common platform to voice their concerns and form consensus to advance their economic interests. By acting collectively, developing countries acquired a degree of strength to influence the international agenda that they would not have been able to achieve individually. 2.  The Group continues to strive for equity and justice in international economic relations in the belief that this can build a really solid foundation for world peace and contribute to a stable and prosperous world. 3.  The fact that the Group was born alongside UNCTAD reflects the acknowledgment that the establishment of an equitable international trade regime has been a central issue to the development agenda. Subsequently, the Group brought its collective will to bear on the pursuit of common goals in the related fields of, inter alia, finance, foreign direct investment, capital markets, external debt, food, agriculture, industrialization, intellectual property rights, social development, health, education, sustainable development, science and technology, and information and communication technology. The institutional development of the Group of 77 led to the creation of chapters to defend and promote the interests of developing countries within the organizations of the UN system, including the Bretton Woods Institutions. 4.  The Group of 77 continues to exercise a significant influence in enhancing economic and social multilateral diplomacy. Among its major achievements are its contributions to the successful negotiation of the Generalized System of Preferences (GSP), the Charter of Economic Rights and Duties and the Integrated Programme for Commodities including the Common Fund. The Group also played an important role in the adoption of internationally agreed targets for the transfer of resources to developing countries. Initiatives taken by the Group led to the creation of

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new institutions like UNIDO and IFAD, and the formulation of new rules, guidelines, norms, principles and a comprehensive framework of cooperation on a whole new range of economic and social issues. Real landmarks in this regard have been the launch and development of South-South cooperation, the holding of UN major conferences and summits and the adoption by the UN General Assembly of the Declaration and Programme of Action for the Establishment of a New International Economic Order. 5.  The Group of 77 has also made a notable contribution to the effective functioning of the United Nations system. The Group has played a leading role in strengthening of the UN system in addressing global issues, particularly in the economic and social fields. The Group stresses the continued need to integrate the development dimension at the heart of international decision and rule making and in addressing the global processes. 6.  The main strengths of the Group of 77 have been its unity and solidarity, its vision of fair and equitable multilateral relations, the commitment of its member States to the well-being of the peoples of the South, as well as their commitment to mutually beneficial co-operation. 7. We emphasize the historical importance of the First South Summit of the Group held in Havana, Cuba, in April 2000, which adopted the Havana Declaration and Programme of Action that undertook to pursue a sharply focused action-oriented agenda, geared to implementing a number of high-priority initiatives within specified timeframes. The effective implementation of the Havana Programme of Action requires the necessary resources and the collective efforts of the Members of the Group in this regard. 8.  The High-level Conference on South-South Cooperation, held in Marrakech, Morocco, in December 2003, adopted the Marrakech Declaration and the Marrakech Framework for the Implementation of South-South Cooperation, which reaffirmed the commitment of the members to South-South cooperation and identified specific measures and initiatives to achieve this goal. We reaffirm our commitment to the implementation of these measures and initiatives and to expediting the achievement of the time-bound objectives contained in the Marrakech Framework for the Implementation of South-South Cooperation. 9. South-South cooperation has always been regarded as an effective tool to maintain and strengthen our solidarity and unity. Through South-South cooperation, including at the regional and subregional level, developing countries have been able to avail themselves of the opportunities that lie beyond their borders for enhancing the welfare of their people. We note with satisfaction the progress made so far by the Perez-Guerrero Trust Fund for Economic and Technical Cooperation among Developing Countries (PGTF) in support of South-South cooperation. We welcome the initiatives launched and undertaken by members of the Group aimed at poverty eradication and promotion of social development. 10. We express appreciation for the work of the South Centre and in this regard resolve to strengthen the Centre as a think-tank of the countries of the South. 11.  Several items that were on the agenda of the Group of 77 in 1964 remain valid, such as the asymmetries of the multilateral trading system, the transfer of resources between developing and developed economies, including the insufficient flows of official development assistance and the debt burden, the volatility of commodity markets and the dismantling of protectionist barriers to the markets of developed countries. Moreover, new issues such as sustainable development, social development and equity and inclusion, the increased frequency of financial crises, trade subsidies, in particular in agricultural products, the role of information and communication technologies and illicit international transactions demand a concerted global response from the international community. 12.  The expectations of greater global security and a just and non-discriminatory international economic and social order have not been realized. The world today is beset by acute economic

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and social problems, many of them structural in nature. International economic relations also continue to be marked by uncertainty and imbalances, with marginalization of developing countries and in particular the least developed. The Group has expressed its deep concern about the tendency by developed countries to take decisions that affect the world economy outside the multilateral framework of the United Nations system and without giving full considerations to the interests of developing countries. 13.  We stress the importance of strengthening multilateralism and the United Nations system in the face of growing unilateralism as well as attempts to put in place new regimes and rules limiting the policy space available to developing countries and their choices for macro-economic policy making. The developing countries can meet this challenge by acting collectively. 14.  The process of globalization and liberalization has produced uneven benefits among countries. The international disciplines and obligations are also increasingly encompassing rules that frame development policy choices of developing countries. These developments, which have had negative economic and social effects, underscore the importance of ensuring policy space for developing countries to advance national development objectives based on their development, financial and trade needs. The liberalization of trade policy regimes should not intrude on national policy space. This calls for development strategies that would ensure an optimal balance between efficiency and equity. In this process, the role of the State is critical in defining national needs and priorities. This also calls for the ‘governance of globalization’ which places development at the very centre of global concerns, including with respect to corporate social responsibility. There is a need to integrate the development dimension into international economic processes and rule making. The opportunity offered by the ICT revolution must be utilized to bridge both the digital and development divide. 15.  Developing countries must be assisted to effectively participate and respond to the challenges and derive benefits from international trade and multilateral trade negotiations. A  development-friendly international economic environment should be ensured within which fuller and beneficial integration of developing countries into the world economy can be facilitated. This will make an important contribution to the realization of the Millennium Development Goals, including a multilateral trading system which is truly open, equitable, rule-based, predictable and non-discriminatory and which takes on board core interests and concerns of developing countries. The Group of 77 is concerned that the negotiations so far have not met the expectations of developing countries. Developed countries are invited to demonstrate the required political will to fulfil the commitments that they undertook in Doha, particularly that development will be at the forefront of multilateral trade negotiations. Thus, the important objective of the Doha Declaration, which has placed the needs and interest of developing countries at the heart of the Doha Work Programme, must be vigorously and continuously pursued with a view to bringing about concrete, identifiable and implementable development-oriented outcomes from multilateral trade negotiations on the whole range of issues of particular concern to developing countries. Facilitating the accession of developing countries to the WTO remains a major objective. 16.  We emphasize, the importance of the strengthening and attainment of the universality of the World Trade Organization and, in this context, call for accelerating the accession process without political impediments and in an expeditious and transparent manner for developing countries applying to the World Trade Organization, and also the provision of technical assistance by the World Trade Organization and the United Nations Conference on Trade and Development, within their mandates, thereby contributing to the rapid and full integration of those countries into multilateral trading system. 17.  The Group of 77 stresses the importance for all countries of consistency between national trade policies and the multilateral trade agreements. In this regard, we reiterate our concern and call for the elimination of the continuing use of unilateral coercive economic and trade measures

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against developing countries such as economic and trade sanctions that are in contradiction with the UN Charter and WTO rules. 18.  Convinced of the importance of enhancing South-South trade, we welcome the decision to revive the Global System of Trade Preferences among Developing Countries (GSTP), established in 1989, and to launch the third round of negotiations aimed at integrating and furthering the objectives of the GSTP agreement. The third round should ensure equitable, meaningful, and mutual advantageous contributions to the GSTP to enhance South-South trade. 19.  We are concerned about the adverse effects of domestic support and subsidies granted to the production and export of commodities by some developed countries that cause distortions in international trade and undermine trade opportunities. 20.  The Ministers, concerned about the adverse effects of domestic support and subsidies granted to the production and export of cotton by some developed countries that cause distortions in international trade and undermine trade opportunities while worsening the economic and social situation of the LDCs that are cotton producers and exporters, also urge those developed countries to expeditiously complete, as far as cotton is concerned, the elimination of both export subsidies and production-related domestic support. 21.  As the focal point within the United Nations for the integrated treatment of trade and development and interrelated issues in the areas of finance, technology, investment and sustainable development, and with its interrelated functions comprising research and policy analysis, intergovernmental deliberations and consensus building and technical cooperation, UNCTAD is pre-eminently placed to respond to the current and emerging challenges facing developing countries. The mandate and functions of UNCTAD give the institution a special role in the overall configuration of multilateral institutions. Recent decisions of the General Assembly to request UNCTAD to contribute not only to the implementation of the outcomes of major conferences but also to review the progress in the implementation of the commitments made and of the agreement reached and to include UNCTAD in the high-level dialogue of ECOSOC with the Bretton Woods Institutions and the WTO are welcomed. UNCTAD XI is another milestone both in the life of UNCTAD and in that of the Group of 77, which continue to benefit from the multi-disciplinary activities of the organization. The consensus reached in Sao Paulo, and its reaffirmation of the Bangkok Plan of Action, provide the framework for UNCTAD’s work in the next four years. The main theme and the four subthemes of UNCTAD XI represent a solid basis to build upon and expand in a forward looking direction aimed at further strengthening UNCTAD at its twelfth session in 2008. The international community is invited to support UNCTAD in all its areas of work. 22.  The Group stresses the need for international rules to allow policy space and policy flexibility for developing countries, as they are directly related to the development strategies of national governments. The Group further emphasizes the need for policy space to formulate development strategies that take into account national interests and differing needs of countries, which are not always taken into account by international economic policy making in the process of integration with the global economy. 23.  We attach high priority to the reform of the United Nations and we reiterate our willingness to actively participate in the negotiations for the strengthening of the Organization, in order that it efficiently responds to the current and future challenges including the requirements, concerns and interests of developing countries, which constitute the vast majority of its membership. We reaffirm that such negotiations should be aimed at strengthening multilateralism, endowing the Organization with a substantive capacity to fully and effectively meet the purposes and principles enshrined in the Charter, and to consolidate its democratic character and its transparency in the discussion and implementation of decisions of Member States.

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24. We remain committed to the Millennium Development Goals and other internationally agreed development goals and multilateral commitments and initiatives aimed at poverty eradication. In this regard, we call upon the international community and the United Nations system to fully and speedily achieve the Millennium Development Goals and other development goals set out in the major United Nations conferences and summits as well as in their respective reviews. The Group further emphasizes the need for international development cooperation to take fully into account national development strategies of developing countries. 25.  The Group of 77 is determined to work actively for the success of the high-level plenary meeting to be held at the commencement of the 60th United Nations General Assembly, in 2005, with the participation of the Heads of State and Government to review progress made in the fulfilment of all the commitments made in the United Nations Millennium Declaration, including the internationally agreed development goals and the global partnership required for their achievement, and the progress made in the integrated and coordinated implementation, at the national, regional and international levels, of the outcomes and commitments of the major United Nations conferences and summits in the economic and social fields. We stress that if the Millennium Development Goals are to be achieved by 2015, there is an urgent need to ensure a genuine Global Partnership for Development, which requires increased commitment and implementation on the part of developed countries. 26.  Considering the achievements of the Group of 77 over the last 40 years and bearing in mind that globalization in the 21st century should and needs to be fully inclusive and equitable, we need to consolidate and accelerate the gains achieved through the realization of the mandate of the Group of 77 including, amongst other things, the necessity to ensure delivery of the Millennium Development Goals and the goals contained in the outcomes of the major UN Conferences and Summits in the economic and social fields, 27.  We stress the importance of strengthening cooperation and coordination between the Group of 77 and China and the Non-Aligned Movement through the JCC for the promotion of the common priorities of the developing countries and South-South cooperation. 28.  The North-South dialogue and negotiations require genuine cooperation for development through global partnership. It is in this spirit that the current and future challenges can be resolved. We call upon developed countries to show the same determination in this respect as the Group of 77 has been doing over the years so that the development of all nations can be achieved, in particular those of developing countries. We stress the importance of the early conclusion of ongoing efforts to strengthen the participation and representation of developing countries in global economic governance. It is only in this way that multilateralism will achieve its full potential. 29.  We reaffirm our commitment to the Declaration on the Right to Development as contained in General Assembly resolution 41/128 of 4 December 1986, and encourage its full and effective implementation. 30.  Responding to both current and emerging challenges requires adaptation to the realities of today’s world. The Group of 77 recognizes the role that civil society and the business community can play as important partners in promoting the development objectives and goals of developing countries. A more systematic relationship and cooperation with relevant stakeholders supportive of the development process will be pursued. 31.  The forthcoming Second South Summit in 2005 will be the occasion to assess the implementation of the Havana Programme of Action and the Marrakech Framework for the Implementation of South-South Cooperation. 32.  We recognize and acknowledge the special needs of the least developed countries, the small island developing States, and the landlocked developing countries within a New Global

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Framework for transit transport cooperation for landlocked and transit developing countries and reaffirm our continued support for their endeavours in every regard, particularly in their efforts to achieve the Millennium Development Goals and the implementation of the Brussels Programme of Action, the Barbados Programme of Action and the Almaty Programme of Action. 33.  We support the efforts of African countries to address the challenges of poverty eradication and development through the implementation of NEPAD. 34.  The Group of 77 reiterates the necessity of the access of all developing countries to information and communication technologies, which is essential in promoting sustainable development and achieving the Millennium Development Goals. In this regard, we stress the importance of the effective preparation and participation of all developing countries in the second phase of the world Summit on the Information Society due to be held in Tunis from 16 to 18 November 2005. 35.  We firmly reject the imposition of laws and regulations that entail extraterritorial consequences and all other forms of coercive economic measures, including unilateral sanctions against developing countries, and reiterate the urgent need for their immediate repeal. We underline that those measures undermine the principles enshrined in the Charter of the United Nations and international law and are in contradiction with the principles of the multilateral trading system and WTO rules and also constitute a serious threat to the freedom of commerce, navigation and investment. Therefore, we call upon the international community to reject those measures and promote their total elimination. 36.  We recognize the severe negative impact of foreign occupation on efforts towards sustainable development and poverty eradication and reaffirm in this regard our commitment, along with the international community, to address this matter and to exert efforts to ameliorate the economic, social and environmental conditions in areas affected by it. 37.  We express our appreciation and gratitude to Brazil and its people for the excellent organization and hosting of the Special Ministerial Meeting on the occasion of the 40th anniversary of the Group of 77 and the warm hospitality, which was bestowed on us in the city of São Paulo.

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11.  Ministerial Declaration of the Group of 77 on the occasion of UNCTAD XII, Accra, Ghana, 20 April 2008 a.  The Accra Declaration 1.  We, the Ministers of the member States of the Group of 77 and China, met in Accra, Ghana, on 20 April 2008 on the occasion of the twelfth United Nations Conference on Trade and Development. We express our appreciation and gratitude to the Republic of Ghana and its people for the excellent organization and hosting of the Ministerial Meeting and the warm hospitality which has been bestowed on us in the city of Accra since our arrival. 2.  We reaffirm the central role of UNCTAD as the focal point within the United Nations for the integrated treatment of trade and development and interrelated issues in the areas of finance, technology, investment and sustainable development. UNCTAD is pre-eminently placed to respond to the current and emerging challenges facing developing countries. The mandate and functions of UNCTAD give the Organization a special role in the overall configuration of multilateral institutions and the United Nations system. In this regard, we call for the strengthening of UNCTAD’s three pillars (research and analysis, consensus-building and technical cooperation) and the intergovernmental machinery. We urgently call for the maintenance of the existing intergovernmental structure of UNCTAD comprising three commissions, one of which should be devoted to globalization to give advice to developing countries on issues relating to the challenges of globalization. 3.  We recognize UNCTAD’s unique orientation and its commitment to serving the goal of development and are assured that it will continue to play a vital role in providing insights on strategic and systemic issues. The three pillars of UNCTAD must work in an integrated and holistic manner to contribute directly to the global debate on development as we move towards the 2015 review meeting on the Millennium Development Goals (MDGs). That occasion presents us with an excellent opportunity to further enhance the role of the United Nations in international economic governance, and its centrality in development in the United Nations agenda. 4. We underscore the importance of strengthening multilateralism and the United Nations system in the face of growing unilateralism. We also reject one-size-fits-all policies and rules limiting the policy space available to developing countries and their ability to choose appropriate economic policies. Recognizing our commitments to international obligations, we reaffirm that policy space is necessary to fully implement them in a manner best suited to our diverse national circumstances and conditions. 5.  We reaffirm the Bangkok Plan of Action and the São Paulo Consensus, UNCTAD XII constitutes an excellent occasion to, building on this basis, review and reinvigorate international economic cooperation with a view to enhancing the development of all developing countries and to providing a development-oriented policy paradigm, policy dialogue, and consensus-building. The Conference can advance this aim by galvanizing support for a more development-friendly global economic, trade and financial system. We call on development partners to continue to strengthen the North-South dialogue in pursuit of a shared development agenda. 6.  We appreciate the importance of achieving the internationally agreed development goals, as outlined at previous United Nations summits and other forums. Furthermore, we look forward to the General Assembly high-level event on the Millennium Development Goals with a focus on Africa in September 2008 to review progress made in the fulfilment of all the commitments set out in the United Nations Millennium Declaration. We therefore welcome the United Nations Secretary-General’s initiative to scale up efforts to achieve the MDGs to enable the

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‘bottom billion’ to finally escape the poverty trap. In this context, we welcome the setting-up of the MDG Africa Steering Group, as it draws together United Nations agencies and other key partners to address systematically the special needs of African countries in their pursuit of development. 7.  The current global institutional architecture for global economic governance requires fundamental reforms to provide an adequate framework for dealing with the realities of today’s international economic and financial relations and to respond to the needs of the vast majority of the poor. Progress must be made in enhancing the coherence of the international economic architecture, particularly the interplay of the multilateral trading system and the international financial and monetary systems. There is a need for more inclusive and transparent governance of global economic relations, with an adequate voice and participation of developing countries in international economic decision-making. We therefore call on UNCTAD to give policy recommendations on all trade and development-related matters, including those sectors being pursued in the WTO negotiations. This will help developing countries maximize development gains from multilateral trading system. 8.  We are particularly concerned that the Doha Round negotiations in the WTO have not concluded yet and met the expectations of developing countries. All WTO members should uphold and reiterate their commitment for WTO to promote an open, equitable, rule-based, predictable, non-discriminatory and development-friendly multilateral trading system. They must demonstrate their political will and shared interest in achieving the success of the Doha Round and the realization of its development agenda, with the necessary special and differential treatment for developing countries. The Doha Round should therefore also facilitate the beneficial integration of developing countries, particularly LDCs, into the multilateral trading system, and its final results should ensure fair, equitable and realizable commitments. The specific and particular needs of LDCs must be addressed appropriately to fulfill promises made at Doha and at subsequent trade negotiation forums. We also support the Maseru LDC Ministerial Declaration and urge the international community to address the needs of LDCs. We call on UNCTAD to strengthen and prioritize its effort to help all developing countries derive development gains from their participation in the multilateral trading system and trade negotiations. 9. The Doha Round should bring about improvements in multilateral rules that address and remove existing asymmetries and enhance the fairness and equity of the multilateral trading system. In this light, the centrality of agriculture needs to be stressed: the fundamental basis for the existence of a fair and balanced trade in agriculture is the removal of the distortions currently present in agricultural trade. Agricultural domestic support granted for agricultural production by some developed countries must be effectively and substantially reduced, in accordance with the Doha mandate. Moreover, the Doha Round must eliminate all forms of export subsidies. We urge those developed countries providing subsidies for the cotton section to eliminate expeditiously both export subsidies and production-related domestic support, particularly with a view to fully addressing the concerns of cotton producers in Africa. The possible adverse impacts on LDCs and net food-importing developing countries of a WTO agreement, including implementation costs and other concerns, must be adequately addressed. Aid for Trade should be adequately funded through additionality and predictability of resources, to ensure that the needs of all developing countries, particularly LDCs, are met. 10.  The North-South dialogue and negotiations, including triangular cooperation as a means of simultaneously promoting South-South and North-South cooperation, require genuine cooperation for development through global partnership. The growing number and complexity of North-South trade agreements, such as bilateral free trade agreements (FTAs) and economic partnership agreements (EPAs) between the African, Caribbean and Pacific (ACP) countries and

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the European Union, point to the importance of ensuring coherence for sustainable development and a positive interface between regional trade agreements (RTAs) and the multilateral trading system, as well as with national development strategies of developing countries, so that these agreements more effectively contribute to the attainment of the MDGs and poverty eradication. RTAs should be compliant with WTO rules, taking into account their development dimension. North-South RTAs should not result in additional burdens for developing countries, particularly for LDCs. 11.  We emphasize the importance of strengthening WTO universality and accession. The accession process should be accelerated without political impediments and in an expeditious and transparent manner for developing countries, especially for LDCs applying to join the Organization. This would contribute to the rapid and full integration of these countries into the multilateral trading system. UNCTAD’s unique role in and quality assistance for WTO accession should be strengthened and prioritized. 12.  We note with concern that recent escalations in food and grain prices have caused social destabilization and market instability in several of our member States. Collective urgent measures at the global level are required to assure the world of adequate food security and stable food and grain markets. Renewed attention is required for the development of the agricultural sector, particularly in Africa and the net food-importing developing countries. 13.  We call on UNCTAD to help developing countries address the impact of commodity dependence, as well as the diversification of production structures in economies dependent on a few commodities. Domestic commodity diversification efforts need to be supported by specific actions by the international community to address the productive capacity deficiencies of commodity-dependent countries, particularly the LDCs. UNCTAD has been, and should remain, at the forefront of efforts to resolve the trade and development problems associated with commodity dependence. Policy options should be developed to garner assistance for commodity-dependent developing countries through UNCTAD’s pillars in order to mainstream commodity policies into their national and regional development strategies. 14.  We underscore the importance of the Arusha Declaration and Plan of Action on African Commodities (2005), the African Union Trade Ministers’ declaration on UNCTAD XII (2008), the outcome of the pre-UNCTAD XII Brasilia Conference on the Global Initiative on Commodities (2007), the Arusha outcome of the expert meeting of LDCs (2007) in preparation for UNCTAD XII and General Assembly resolution 61/190, and request the support of the international community for their full implementation. We also underscore the importance of achieving a development-oriented outcome within the context of the Doha Round of negotiations. The work programme emerging from UNCTAD XII should culminate in the setting-up of an effective intergovernmental mechanism (e.g. multi-year meetings of experts) on commodities to evolve a consensus on viable strategies and accordingly advise the Trade and Development Board (TDB). 15.  We express concern over the current subprime financial and credit crisis as well as the recent financial market instability and their adverse impact on the development prospects of developing countries, including the latter’s access to crucial finance and credits. These situations require a vigorous international response to ensure that the sustained growth of the world economy and the development efforts of developing countries are not severely affected. In this respect, we also highlight the need for the establishment of a new international financial architecture which guarantees the full participation of developing countries, including through reforms of the monitoring and regulatory systems. This architecture should further improve response capabilities for dealing with the emergence and spread of financial crises, and should give developing countries greater flexibility and autonomy in the management of capital flows. The discussions on the reform of the international financial architecture should place greater emphasis on the

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democratization of international economic decision-making, enhanced measures to mitigate excessive volatility, and financing for development. 16.  We are concerned about the decline in levels of official development assistance (ODA) to less than one-third of the internationally agreed target of 0.7 per cent of the Gross National Product (GNP) of donor countries. We reiterate the need to meet, in an expeditious manner, the internationally agreed targets for ODA of 0.7 per cent of GNP of donor countries to developing countries and of an additional 0.15 per cent to 0.2 per cent of GNP to the least developed countries by 2015, in accordance with the Monterrey Consensus and the renewed commitments undertaken in various subsequent forums. We reiterate the call made by the leaders of the Group of 77 and China at the Second South Summit in 2005 in Qatar for the establishment of an effective monitoring mechanism to ensure that the internationally agreed ODA targets, most recently those established for Africa, are met. 17.  We look forward to the Follow-up International Conference on Financing for Development to Review the Implementation of the Monterrey Consensus, later this year at Doha, Qatar. This should contribute, inter alia, to building consensus on a durable solution to developing countries’ external debt problems, including through debt relief from developed country creditors. The review should also address ways and means of addressing the long-term needs and challenges in the area of development financing, inter alia, by ensuring a conducive global environment for development. 18.  We call on UNCTAD to assist developing countries in addressing the development dimension of intellectual property and the trade-related aspects of intellectual property rights, including improvements in the transfer of technology to developing countries, the development dimension and implications of the establishment and enforcement of intellectual property rights, as well as protection of traditional knowledge, genetic resources and folklore and fair and equitable benefit-sharing. We further call on the international community to continue its efforts towards a balanced international intellectual property system, in accordance with the Development Agenda of the World Intellectual Property Organization. 19.  We call on UNCTAD to take a proactive role in addressing the trade and development dimension of the new and emerging issues of energy, climate change and migration. With regard to energy, we acknowledge the need to address the issue of renewable sources of energy, including biofuels. Special attention must be paid to the maintenance of food security while producing biofuels. Moreover, we are fully committed to the effective follow-up to the United Nations Climate Change Conference (Bali, 2007). Finally, we recognize the challenges posed by migration; however, developing countries need to be enabled to derive development-friendly benefits from it. Special attention to these issues is needed, because of their bearing on development efforts. 20.  We recognize the increased relevance of South-South cooperation, both as a strategy in support of development efforts of developing countries and as a means of enhancing the participation of developing countries in the emerging global economy. We reaffirm commitments to implement fully the Havana Programme of Action, the Marrakech Framework of Implementation of South-South Cooperation and the Doha Plan of Action, which, taken together, represent a comprehensive framework for intensified cooperation among developing countries. 21. We welcome General Assembly resolution 62/209 for the convening of a High-level Conference on South-South Cooperation in commemoration of the 30th Anniversary of the adoption of the Buenos Aires Plan of Action, and welcome in this regard the generous offer made by the Government of Argentina to host this event in the first half of 2009. We look forward to the follow-up in 2008 to the Buenos Aires Plan of Action (1978) for promoting and implementing TCDC, and its success, and to the outcome of the Ministerial Meeting of the Africa-South America Summit, to be held in Marrakech (Morocco) in June 2008.

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22.  We welcome the progress made in the third round of the Global System of Trade Preferences (GSTP), as an important instrument for South-South trade. In this regard, we take note of the efforts of the participants in the Third Round of the GSTP towards the successful conclusion of the negotiations by the end of 2008. 23.  We firmly reject the imposition of laws and regulations that entail extraterritorial consequences and all other forms of coercive economic measures, including unilateral sanctions against developing countries. We urge the international community to adopt urgent and effective measures to eliminate the use of such measures. 24.  Support to the Palestinian people must be sustained by analysing and alleviating the adverse economic impact of the prolonged Israeli occupation and conflict conditions, with a view to ending the occupation and achieving a sovereign, economically viable and independent Palestinian State. In this regard, UNCTAD’s programme of assistance to the Palestinian people should intensify its policy advice and related operational activities and dedicate adequate resources to its activities in this regard. 25.  Recognizing the different levels of development and size of economies among the developing countries, we call on UNCTAD to enhance its work on the special problems of LDCs, African countries, small island developing countries, structurally weak, vulnerable and small economies and the related problems and challenges faced by middle-income countries. In addition, we call on UNCTAD to provide appropriate support to facilitate the implantation of the Brussels Programme of Action for the Least Developed Countries, the Barbados Programme of Action and the Mauritius Strategy. We recognize the special needs of the landlocked developing countries (LLDCs), and call on the UNCTAD to continue to address those needs and provide appropriate support for the comprehensive and timely implementation of the Almaty Ministerial Declaration and Programme of Action. All efforts must be made to ensure that the outcome of the Mid-term Review of the Implementation of the Almaty Programme of Action to be held in 2008 contributes to establishing efficient transport systems and integration of LLDCs into the international trading system and addressing the challenges and problems faced by transit developing countries. We also take note of the Ulaanbaatar Declaration. 26.  We reiterate the need to continue strengthening the capabilities of the Group of 77 and China to address today’s challenges and opportunities through, inter alia, further enhancing coordination among the various chapters based in the various United Nations host cities at both the formal and informal levels, and strengthening coordination and cooperation with relevant South institutions, including through the use of modern technology, so that the collective wisdom and experience of the Group could be brought to bear in addressing the international agenda, inter alia through multilateral negotiations. In accordance with the Second South Summit outcomes, the Group should continue to explore ways to establish an open-ended working group to study possible ways and means of strengthening the G77 and China and its Secretariat, including identifying common modalities to facilitate inter-chapter cooperation as well as innovative approaches to address resource and personnel requirements of the G77 Secretariat so that it may meet the needs of the entire Group of 77 and China. 27.  We call on the donors to increase their contribution to UNCTAD in order to enable it to effectively discharge its mandate for the benefits of all developing countries. 28.  We welcome and endorse the generous offer of the Government of Qatar to host UNCTAD XIII in 2012. 20  April 2008, Accra, Ghana

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Ministerial Declaration of the Group of 77 on the occasion of UNCTAD XII, Accra, Ghana, 23 April 2008 Corrigendum Please replace paragraphs 12, 14 and 25 with the following paragraphs: 12.  We note with concern that recent escalations in food and grain prices have caused social and political destabilization and market instability in several of our member States. Collective urgent measures at the global level are required to assure the world of adequate food security and stable food and grain markets. Renewed attention is required for the development of the agricultural sector, particularly in Africa and the net-food-importing developing countries. 14.  We underscore the importance of the Arusha Declaration and Plan of Action on African Commodities (2005), the African Union Trade Ministers’ declaration on UNCTAD XII (2008), the outcome of the pre-UNCTAD XII Brasilia Conference on the Global Initiative on Commodities (2007), the Arusha outcome of the expert meeting of LDCs (2007) in preparation for UNCTAD XII and General Assembly resolution 61/190, and request the support of the international community for their full implementation. We also underscore the importance of achieving a development-oriented outcome within the context of the Doha Round of negotiations. We call on the Secretary-General of the United Nations to urgently establish a subprogramme on commodities at UNCTAD during the current UNCTAD work programme, taking into account the recommendations of regional and international organizations; and we invite UNCTAD members to establish a commodity-specific intergovernmental machinery, in the form of a multi-year committee or a group of experts entrusted with the monitoring of the above-mentioned programme. The subprogramme on commodities should take into account work being undertaken in regional/international organizations, including the World Trade Organization. 25.  We recognize the different levels of development and size of economies among the developing countries, and call on UNCTAD to enhance its work on the special problems of LDCs, African countries, small island developing States, structurally weak, vulnerable and small economies and the related problems and challenges faced by middle-income countries. In addition, we call on UNCTAD to provide appropriate support to facilitate the implementation of the Brussels Programme of Action for the Least Developed Countries, the Barbados Programme of Action and the Mauritius Strategy. We recognize the special needs of the landlocked developing countries (LLDCs), and call on UNCTAD to continue to address those needs and provide appropriate support for the comprehensive and timely implementation of the Almaty Ministerial Declaration and Programme of Action. All efforts must be made to ensure that the outcome of the Mid-term Review of the Implementation of the Almaty Programme of Action to be held in 2008 contributes to establishing efficient transport systems and integration of LLDCs into the international trading system and addressing the challenges and problems faced by transit developing countries. We also take note of the Ulaanbaatar Declaration.

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12.  Ministerial Declaration of the Group of 77 on the occasion of UNCTAD XIII, Doha, Qatar, 23 April 2012 a.  The Doha Declaration 1.  We, the Ministers of the member States of the Group of 77 and China, met in Doha, Qatar, on the occasion of the thirteenth United Nations Conference on Trade and Development (UNCTAD). We express our appreciation and gratitude to the State of Qatar and its people for the excellent organization and hosting the Ministerial Meeting and the warm hospitality that has been bestowed on us in the city of Doha since our arrival. 2.  We also express our appreciation to the Secretary-General of the United Nations Conference on Trade and Development for the secretariat’s continued support extended to the Group, which has enhanced our effectiveness, especially the Geneva Chapter. There is an organic and symbiotic link between UNCTAD and the Group of 77 and China, and we look forward to the continuing strengthening of this bond. We reaffirm our commitment to strengthen our ability as a Group to collectively promote our interests. 3.  We also reaffirm the central role of UNCTAD as the focal point within the United Nations for the integrated treatment of trade and development and interrelated issues in the areas of finance, technology, investment and sustainable development. UNCTAD is pre-eminently placed to respond to the current and emerging global challenges facing developing countries. We call for the strengthening of UNCTAD’s three pillars; research and analysis, consensus-building, and technical cooperation, as well as the intergovernmental machinery. We underscore the need of further enhancing the role of the United Nations in international economic and financial governance, and its centrality on the global development agenda. 4. Since our last meeting in Accra, Ghana, on the occasion of the twelfth United Nations Conference on Trade and Development, events have highlighted challenges and opportunities facing the international community. The global economic, financial and trading system, including the multilateral trading system, remains unbalanced. The global economic and financial crisis has revealed new vulnerabilities. High volatility of food and energy prices is a persistent challenge, global inequality remains, and many are still in the abyss of poverty. The threat from climate change seems to grow more pressing, even more so when combined with the effects of other man-made environmental degradation. 5.  To reaffirm the Accra Accord, greater focus is required in development policy on building productive capacities while avoiding the use of economics as a tool to achieve political ends. Policy space for developing countries remains constrained. There continues to be a need to move away from the one-size-fits-all approach to development, which remains persistent. 6.  On the other hand, opportunities have emerged in the international community for the elaboration and articulation of more effective approaches to development cooperation. Information and communications technology has made the world smaller and has made it easier to share experiences and best practices. 7.  These challenges and opportunities have highlighted the need for continued and strengthened solidarity among developing countries, and the need to further enhance and strengthen the Group. We recognize that we face common external and systemic threats to our efforts to improve the economic and social welfare of all our citizens. This recognition enables us as developing countries to demonstrate our solidarity as the embodiment of South-South cooperation to act more effectively. We reiterate that South-South cooperation does not replace, but rather complements North-South cooperation, and along with triangular cooperation, may contribute

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to inclusive and sustainable growth and development. This includes addressing the persistent challenges whose solution has continued to be elusive, while affording developing countries, in particular least developed countries (LDCs), greater opportunity to overcome the new challenges to development. 8.  The Group therefore needs to focus on how to mitigate crises or avert the fallout, and more importantly, how to achieve the development levels needed to create a truly balanced world and propel itself into a new level of development by addressing systemic and entrenched inequalities, including in the areas of information and communications technology, as well as the Internet. The expeditious and effective transfer of appropriate technology and the promotion of innovation in developing countries remain important, in particular in addressing the existing digital divide. 9.  As part of the response, the Group needs to be a proactive force in the global effort to solve global issues. It needs to build on its solidarity and maximize its competitive advantage. Our collective capacity to address the main constraints to a better future for our people—such as poverty, hunger, food insecurity, unemployment, inequality, energy insecurity and lack of access to renewable energy and relevant technologies, the adverse effects of climate change, imbalances in global trade, the spread of communicable diseases, inadequate technology transfer and reforms of the international trade and financial architecture, should be enhanced. The United Nations’ contribution to the global effort should be consistent with the profile, needs and development goals of the peoples of the South. Fresh and clear ideas are needed to address the needs and challenges of developing countries, in particular LDCs, as they graduate from every step of the development process. We also underline that the enhanced and effective role of the State is crucial to lead and promote development. 10. On this basis, the key message of UNCTAD XIII is of particular resonance in today’s world: that in order to build sustainable and inclusive development the international community should enhance its support to development. In this direction, we must ensure that the approach to development is one that takes into account the needs, priorities and objectives of individual developing countries and its peoples.

From Doha to the future: Towards more effective approaches to development 11.  We recognize that in order for the Group to play its rightful role in the international community, it must be better equipped, in terms of ideas and in terms of capacity. The objective is a simple one: to accelerate development to make the world a better place for humanity—through the articulation and pursuit of ideas and initiatives to make the global economic and financial system, and models for development, more effective and more rooted in the experiences and priorities of developing countries. 12.  We must work collectively as a Group to redefine the development agenda. Through the force of our ideas, and through the effectiveness of our action, we must remain resolute as we continue to pursue the Millennium Development Goals and bring about development goals after 2015 that will enable us to realize a more prosperous and better future for humanity. In this regard, we reiterate the need to meet, in an expeditious manner, the internationally agreed targets for official development assistance of 0.7 per cent of gross national product (GNP) of donor countries to developing countries and of an additional 0.15 per cent to 0.2 per cent of GNP to the LDCs by 2015 as well as further enhance the resources for the LDCs. 13.  We must articulate a more comprehensive and contemporary view of the global economic and development situation. In so doing, we must update our platform. We must continue to show that ours is a Group of ideas, of pragmatism and of effective action. As we refine and redefine development in the post-2015 world, we should engage with our partners and stakeholders that will support us in our development needs. It is vital that the international community work towards achieving the graduation of half of the LDCs by 2020, as envisioned in the Istanbul

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Programme of Action. In short, we should reposition ourselves to adapt to the global changes as well as to continue improving the standard of living in developing countries. To achieve this, we need the support and assistance of our key partners, such as UNCTAD and the South Centre, as well as through new partnerships with other multilateral and regional institutions, and other stakeholders that share our causes. 14.  This work also requires that the global economic and financial system post-2015 will be an architecture that is truly fair, democratic and supportive of sustainable development. In this regard, the impact of the current global economic and financial crises needs to be addressed, while reform of global economic and financial governance structures with the participation of all is crucial. It is therefore imperative that the global monetary and financial system fully supports sustainable development, and that the multilateral trading system truly ensures that trade, among other factors, serves as an engine for development. 15. We express serious concern at the lack of progress in the Doha Round of World Trade Organization (WTO) negotiations. All WTO members should uphold and reiterate their commitment for WTO to promote an open, equitable, rules-based and predictable multilateral trading system, with development as a core element of WTO’s work. The Group of 77 and China reiterates the call for the necessary flexibility and political will required to break the current impasse in the negotiations and conclude in a balanced, ambitious, comprehensive and development-oriented outcome of the Doha Development Agenda, with the necessary special and differential treatment for developing countries, in particular LDCs. We emphasize the importance of facilitating accession to WTO. The accession process should be accelerated without political impediments and in an expeditious and transparent manner for developing countries. This would contribute to the rapid and full integration of these countries into the multilateral trading system. 16.  While preserving our policy space, the Group shall endeavour to fight against all threats to economic growth and development, including all forms of protectionist measures and unilateral economic pressures, especially by the leading industrial economies. 17. We express concern about the adoption of unilateral actions that are not consistent with International Laws, Rules and Principles of the World Trade Organization. These measures harm the exports and impede the full achievement and further enhancement of the economic and social development of all countries, particularly the developing countries. Therefore, we firmly reject the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic, financial and trade measures, including unilateral sanctions against developing countries. We urge the international community to take urgent and effective measure to eliminate the use of such measures. 18.  Likewise, attention should be given to analysing and monitoring how subsidies of developed countries have historically affected and continue to undermine the development of productive capacities in the agricultural sector of developing countries. 19.  We reaffirm the need for the Government of the Argentine Republic and the United Kingdom of Great Britain and Northern Ireland to resume negotiations in accordance with the principles and the objectives of the United Nations Charter and the relevant resolutions of the General Assembly, in order to find, as soon as possible, a peaceful solution to the sovereignty dispute relating to ‘the Question of the Malvinas Islands’, which seriously damages the economic capacities of the Argentine Republic and the need for both parties to refrain from taking decisions that would imply introducing unilateral modifications in the situation while the Islands are going through the process recommended by the General Assembly. 20.  We reaffirm the need to find a peaceful solution to the sovereignty issues facing developing countries, including among others the disputes over Chagos Archipelago, including Diego Garcia, which was unlawfully excised from the territory of Mauritius in violation of international law and United Nations General Assembly resolution 1514 (XV) of 14 December 1960 and 2066 (XX) of 16 December 1965. Failure to resolve these decolonization and sovereignty issues would

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seriously damage and undermine the development and economic capacities and prospects of developing countries. 21.  The Palestinian people continue to endure hardships on daily basis as a result of the occupation. We are alarmed by the harsh economic conditions and the Israeli-imposed illegal measures, which include closure, blockade and destruction of property, appropriation of Palestinian natural resources and land, and restrictions on movement. All of these measures aim to prevent the Palestinians from pursuing economic development, sustaining their basic needs, and violate the basics of human rights in the occupied territory of Palestine.

Building from Doha: strengthened capacities for a stronger Group 22.  Along the way to 2015, we have an important double golden jubilee. In 2014, we will celebrate the fiftieth anniversary of the Group of 77 and China. We will also celebrate the fiftieth anniversary of UNCTAD. In its almost 50 years of existence, the Group has accomplished much. As the world has changed, the Group of 77 and China in Geneva needs to continue to evolve to strengthen the Group and enhance its impact. Likewise, UNCTAD has accomplished much. Yet so much more remains to be done. 23.  The double golden jubilee should recall, recognize and build on past accomplishments, and should be celebrated in a forward-looking spirit. The Group should bring together in Geneva—the birthplace of the Group of 77 and China, and UNCTAD—an unprecedented assembly of leaders and intellectuals to recommit the international community to the ideals of development and a better future for all. 24.  We recognize that our endeavour is ambitious, and that it will not be easy. In order to embark on such an ambitious task, it is necessary to build on the most important resource of the Group—its people, its solidarity and capacity to act united. We therefore resolve that the Group should embark on a major program of capacity-building measures to strengthen the Group as a whole and reinforce the Group’s role as a united and influential force in multilateral for a and global economy. 25. We therefore strongly encourage all Chapters of the Group to undertake specific capacity-building initiatives in partnership with the relevant institutions and organizations, be they multilateral or regional organizations and think tanks, to strengthen their capacity to generate new ideas, build consensus around them and operationalize them through the multilateral process. This should include enhanced training of negotiators of the Group in strategic planning, negotiations and consensus-building. 26.  We also encourage closer coordination by all Chapters to strengthen their work, and that of the Group of 77 and China, by making use of new means of communication, to enhance the sharing of information, experience and expertise, as well as consolidating negotiating positions. 27.  We also look forward to the Group working more closely with UNCTAD, South Centre, and other development-oriented think tanks and regional organizations to build further the intellectual capacity of the Group. In this regard, we encourage the New York and Geneva Chapters to initiate immediately the organization of an annual senior-level forum of officials and intellectuals, on the sidelines of the annual substantive session of the Economic and Social Council, for the exchange of innovative ideas on development issues, which could then directly contribute to the broader work of the Group of 77 and China. 28.  We also look forward to the Group engaging with the various entities of the United Nations system, including the regional commissions, as well as other international organizations, regional organizations and development banks, and other think tanks in the South, to enrich and deepen the work of the Group. Such interaction can include, but not be limited to, capacity-building activities, substantive dialogue and other activities consistent with advancing the interests and the priorities of the Group.

CHAPTER III MEETINGS OF THE GROUP OF 77 IN PREPARATION FOR THE CONFERENCE ON INTERNATIONAL ECONOMIC COOPERATION

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1.  Group of 19 of the Group of 77, Paris, 28 April 1976 a. Statement The Group of 19 Developing Countries participating in the Conference on International Economic Cooperation (CIEC) at the end of the third session of its Commissions and on the eve of UNCTAD IV at Nairobi declares: 1. UNCTAD IV constitutes, since the 7th Special Session of the United Nations General Assembly, the first international event on a world-wide basis where all members of the international community will be called upon to demonstrate by joint action their political determination to achieve the common goals towards the establishment of the New International Economic Order. 2.  The Group of 19 expected UNCTAD IV to achieve significant progress in finding solutions to economic problems of importance to the international community and particularly to the developing countries. 3.  In its participation in CIEC, the Group of 19—being an integral part of the Group of 77—is guided and inspired by the Manila Declaration and Programme of Action. 4.  The Group of 19 had hoped that the discussions held with the developed countries during the initial stages of the work of CIEC in a propitious atmosphere and which had led to a clear identification of the solutions to the problems would lay the foundation for the future work of the Conference. However, the Group of 19, having submitted concrete proposals in various fields for achieving the objectives of CIEC without receiving so far positive reactions or constructive counter-proposals, expresses its dissatisfaction with the slow pace of progress of the Paris conference. This is mainly due to the lack of positive political will on the part of a few developed countries which are delaying the process of understanding and cooperation to which all developing countries and most of the developed countries are committed. 5.  The Group of 19 categorically states that the on going work in Paris should in no way preclude or delay the adoption of the decisions at the Nairobi Conference. 6.  Indeed the Group of 19 is convinced that, unless substantial results at the IVth UNCTAD are reached, the future of the dialogue in CIEC intended to address the problems identified by the Ministerial Conference and to further international economic cooperation for the benefit of all countries and peoples would be jeopardized. On the other hand, if UNCTAD IV succeeds in its endeavours, the chances of success at CIEC would be greatly enhanced.

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2.  Group of 19 of the Group of 77, Paris, 9 June 1976 a. Statement The Group of 19 developing countries participating in CIEC declared on 28th April 1976 their conviction that unless substantial results were achieved at the IV UNCTAD, the future of the dialogue in CIEC would be jeopardized. While the governments of the developing countries have not yet concluded their evaluation of the results of UNCTAD IV, their preliminary assessment is that these fall short of the expectations of the Group of 77 as expressed in the Manila Declaration and Programme of Action. In some important areas, no decisions were taken at all. Some of the explanatory statements made by certain industrialized countries cast doubt on the prospects of effective implementation of important resolutions adopted. On the other hand, the G-19 is encouraged by the unequivocal support of the position of developing countries by many other participating countries. The G-19 considers that the present phase of the dialogue in Paris should continue and that a full assessment of the situation should be made at the mid-year review conference in July. The G-19 is of the opinion that the dialogue within CIEC in Paris provides the industrialized countries with a further opportunity to demonstrate a political will to find concrete and adequate solutions to economic problems confronting the developing countries, with the full recognition of inter-relationship between issues being examined in the Commissions of CIEC. Search for solutions to many of these problems will proceed at the same time in other forums and the dialogue in Paris should contribute to the success of these efforts.

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3.  Group of 19 of the Group of 77, Paris, 17 July 1976 a.  Statement by Mr Manuel Pérez-Guerrero I have been asked by the Group of 19 Developing Countries participating in CIEC to give expression to their disappointment that the mandate given last week by the senior officials to the Commissions to finalize their work programme during July session has not been fully carried out. The Group of 19 had expected that the completion of this task would enable the Commissions in the second phase of CIEC to work on a programme which should result in a significant advance in international economic cooperation and make a substantial contribution to the economic development of the developing countries. This expectation has not been realized inasmuch as that agreement was not forthcoming from the side of the developed countries on two central issues:  protection of the purchasing power of export earnings of developing countries and debt problems of developing countries. The lack of agreement was due to the negative attitude of several participants from the side of the developed countries resulting from the absence of political will needed at this juncture for launching the Commissions’ work during the action oriented phase of CIEC. In this situation, the Group of 19 hopes that the consultations which the two Co-Chairmen of CIEC have been asked to undertake will result in the finalization of the work programme thus enabling the Commissions to resume their work.

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4.  Group of 19 of the Group of 77, Paris, 13 September 1976 a. Statement The G-19 has given its approval to the work programme—in spite of its misgivings towards some of its formulations and the fact that it does not meet all the concerns of the Group—as a basis for the continuation of the dialogue during the action oriented phase with the aim of reaching the objectives set out last July in the Communiqué of the Senior Officials Meeting. To this end, it is essential that the political will to make the CIEC a success, as reaffirmed in the communiqué, will henceforth be effectively guiding its work. The Group of 19 will present its proposals, covering the various items on the work programme and fully reflecting the position and interests of the developing countries. In this context, the Group has in mind not only the questions of the debt of the developing countries and of the protection of the purchasing power of the developing countries export earnings, but any item on the work programme, the consideration of which ‘should lead to proposals for an equitable and comprehensive programme for international economic cooperation including agreements, decisions, commitments and recommendations to be submitted for approval to the Ministerial Conference’.

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5.  Group of 77, New York, 16 December 1976 a. Communiqué1 1. Following the decision of the countries participating in the Conference on International Economic Cooperation not to convene the concluding Ministerial Meeting on 15 to 17 December 1976 and to hold that meeting in the first part of 1977, the Group of 77 met at United Nations Headquarters in New York, on 16 December 1976, to consider the situation. The Group took note of that decision. 2.  The Group also noted that, as Minister Pérez Guerrero, the Co-Chairman of the Conference, stated to the press: ‘The developing countries of the Group of 19 were prepared to meet on the original dates, but they have accepted the postponement in view of the argument advanced that at this time some industrialized countries of the Group of 8 are not able to assume the political position which will ensure the success of the Conference and that early in the next year the prospects appear favorable. The initiative for the postponement did not come from the Group of 19 but it arose from the Group of 8.’ 3.  The developing countries had agreed to participate in the restricted Conference on International Economic Cooperation on the understanding that it would seek to translate into action the agreements and understandings reached at the sixth and seventh special sessions of the General Assembly and also seek new areas of agreement on issues affecting the world economy. The developing countries expected the Conference to lead to concrete action to resolve the fundamental problems arising from the inequitable economic relations between the developed and the developing countries make a significant contribution to the development of the developing countries and thereby promote the prosperity of all nations, the ultimate objectives of the New International Economic Order. This expectation was reinforced by the consensus reached at the seventh special session of the General Assembly for concrete action to resolve the economic problems of the developing countries in certain specific areas. 4.  The developing countries have become increasingly concerned that after a whole year, during which their economic conditions have continued to deteriorate no progress has been registered at the Conference on International Economic Cooperation, despite the fact that the Conference was to have submitted its final conclusion to the General Assembly in December 1976. 5.  The developing countries have presented detailed and specific proposals for concrete action in all the areas of the work of the Conference. There has been no positive response to these proposals from the developed countries; the few proposals put forward by them were limited in nature. 6.  It is in this perspective that the General Assembly, in its resolution 31/14, has expressed its deep concern and disappointment at the failure of the Conference to achieve any concrete results so far, and its profound concern at the adverse effect which the failure of the Conference will have on international economic cooperation. The Assembly has urged all the participants in Paris, especially the developed countries, to ensure the success of the Conference and to respond positively to the proposals put forward by the developing countries. 7.  While taking note of the postponement of the concluding Ministerial Meeting, the Group of 77 affirms the hope and expectation of the developing countries that positive and concrete results in all areas under consideration at the Conference will be forthcoming at the meeting which 1.

A/31/462 of 20 December 1976.

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should be held in the early part of 1977. The Group expects the developed countries also to demonstrate the necessary political will and vision required to achieve substantial and real progress in the dialogue and to promote solutions to the grave and urgent problems affecting the developing countries and the world economy. The Group of 77 reiterates its conviction that the achievement of substantive and concrete results in all areas of major concern is a prerequisite for the success of the Conference. The developing countries will not be prepared to consider marginal results on peripheral issues as constituting such a success. 8.  The Group of 77 also attaches great importance to the achievement of substantive results in the negotiations taking place in other forums, particularly in the current negotiations on commodities, including on the establishment of a common fund, the multilateral trade negotiations and the forthcoming Ministerial Meeting of the Trade and Development Board on the problem of indebtedness of the developing countries. 9.  The Group of 77 wishes to emphasize once again the central role of the United Nations, especially the General Assembly, in the field of international economic cooperation. The General Assembly decided in its resolution 31/14 ‘to consider during its present session the results of the concluding Ministerial Meeting of the Conference on International Economic Cooperation’, which has now been postponed to the early part of next year. In view of this, the Group of 77 considers that the present session of the General Assembly should not be closed on the scheduled date. A resumed meeting of the thirty-first session of the General Assembly should be convened in the early part of 1977 to consider the results of the concluding Ministerial Meeting of the Conference on International Economic Cooperation and other relevant negotiations which are under way. 10.  In this context, the Group of 77 expressed the general desire to consider convening a meeting of the developing countries at an appropriately high political level to assess the situation and to coordinate their strategy.

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6.  Group of 19 of the Group of 77, Paris, 5 May 1977 a. Statement The Conference on International Economic cooperation has been under way for well over one year. The concluding Ministerial Meeting is only three weeks away. This meeting was postponed from last December in the general expectation that early in 1977 the industrialized countries would be in a position to demonstrate a new spirit of cooperation and the necessary political will to achieve significant and concrete results in Paris. Unfortunately, the encouraging statements that were made on the occasion of the launching of the present final and decisive state of CIEC have not been reflected in the positions of the industrialized countries during the on-going negotiations. This is a matter of great concern to the Group of 19 and to all developing countries. There has been an effort to attribute to CIEC undue credit for limited developments that have taken place elsewhere. The Group of 19 has also noted with concern the attempt to redefine and restrict the role and scope of CIEC. This is contrary to the agreed goals set by the Conference to achieve in the areas under consideration ‘concrete results which would constitute a significant advance in international economic cooperation and make a substantial contribution to the economic development of the developing countries’. The comprehensive and equitable programme of international economic cooperation emerging from CIEC must include adequate measures, comprising agreements, decisions, commitments and recommendations, addressing the major concerns of the developing countries in such areas as the Integrated Programme for Commodities and the establishment of the Common Fund, Energy, Protection of the Purchasing Power of the export earnings of developing countries including protection of their accumulated assets in developed countries. Indebtedness Transfer of Resources, Access to Markets, Infrastructure, Industrialization, Food, Transfer of Technology, and related international financial and monetary problems. The measures that have been indicated by industrialized countries fall far short of the magnitude of the problems confronting the developing countries. More enduring the far-reaching solutions commensurate with those problems are required to ensure healthy and beneficial effects on the entire world economy. The interests of the whole international community demand that CIEC should not fail to achieve its objectives, so as to avoid grave consequences for the world economy and a serious set-back to the relations between developing and industrialized countries. Every effort should therefore be made to take full advantage of this unique opportunity provided by CIEC the results of which will be considered by the United Nations General Assembly at its resumed 31st session. The Group of 19 reaffirms its determination to pursue the common efforts of the developing countries to resolve their serious economic problems and to advance towards the establishment of the New International Economic Order. It expresses the hope that the industrialized countries will join in this endeavour through effective and timely cooperation.

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7.  Group of 19 of the Group of 77, Paris, 31 May 1977 a.  Statement by Mr Manuel Pérez-Guerrero The Group of 19 having heard with attention and interest the statements delivered by the Ministers of the Group of 8, has asked me to convey its impressions and feelings at this moment of the Conference. The Group has decided that this statement will be its only one before entering the negotiations, but asks the Chairman to leave open Point 4 of the Agenda, until after these negotiations have been completed. The Group of 19, while concurring with the Group of 8 that the North-South Dialogue did not begin and will not end in Paris, believes that this Conference should constitute a turning point in international economic relations: The recognition of interdependence and the political commitment to organize it on a just, fair and equitable, and therefore lasting, basis must be the attitude with which we should approach our negotiating task. We all know that this calls for changes in the structure of the present system and that this required political determination. We are not expecting miracles, but we are looking for some fundamental changes and not for some isolated gestures, most of which are not yet clear, aiming at dealing with short-term problems. It is obvious that the measures that have been announced are not commensurate with the magnitude of the grave problems which are developing countries face. We are realistic, but the stakes are high. We think that this opportunity should be fully utilized and that we should get down to meaningful negotiations immediately. Our general reaction to the statements we heard yesterday is mixed but, in any case, these statements are far below our expectations. We have heard that there should be a more just and equitable international economic system. We assume that this statement referred to what we call the New International Economic Order. We noted that a number of concepts have been expressed in this regard, including a reference to the changes that are required in the international monetary system, which, to a very large extent, is in disarray. There are references in the fields of energy and raw materials to security of supply and availability. On the other hand, no positive proposals have been made concerning basic interests of the developing countries such as the protection of the purchasing power of the export earnings of these products and access to markets and technology. We have heard proposals regarding the protection of private foreign investments in our countries but have not heard positive response to the need to implement an effective code of conduct for transnational corporations. We note that there are positive references regarding energy development and transfer of appropriate energy technology to the developing countries. We have taken note that the United States has committed itself to real progress in key areas of the MTN, to seek areas of more favourable treatment for developing countries’ products in 1977 and to substantially increase the volume of its aid programme over the next five years. We would like a more precise statement in this regard. What we want is predictability. The target of 0.70 per cent serves that purpose. We also take note that Japan has committed itself to more than double the volume of its development assistance in five years, and that reference was made by some delegations to the special action they envisage. We welcome the announcement made by he Canadian Minister on the new measures which that country will carry out in the fields of debt relief and food aid and which are of a specific nature. Mr Chairman, the Group of 19 has identified on many occasions which subjects should be resolved in this conference. Most of them were dealt with, if at all, only in general and rather vague terms. Useful and positive proposals have been presented in an isolated fashion by individual industrialized countries, but in most cases, they have not enjoyed the full support of the

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Group of 8.  We would like to see these commitments being undertaken by all members of that Group. In our statement of May 5, 1977, we referred to eleven major concerns of ours, which this Conference should not fail to address, besides others that have been under its consideration. Only one of them—infrastructure, particularly for Africa—may be considered to have been dealt with positively. Mr Chairman, it is not our intention to pass final judgement on this situation which we are facing today here. We are here in a spirit of cooperation and we sincerely hope that further negotiations in these next two days will yield meaningful and concrete results. We hope that from these negotiations we will come up with significant and substantial agreements regarding these and other matters of great importance to all the developing countries. Further efforts on the part of the industrialized countries will be required to this end.

CHAPTER IV SPECIAL MINISTERIAL CONFERENCES AND OTHER HIGH-LEVEL MEETINGS OF THE GROUP OF 77

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1. First Ministerial Meeting of the Intergovernmental Group of Twenty-Four on International Monetary Affairs, Caracas, 6–7 April 1972 a. Communiqué* The inaugural Ministerial Meeting of the Group of 24 was convened in Caracas on 6–7 April 1972, on the invitation of the Government of Venezuela. The Minister of Finance of Venezuela, Pedro R. Tinoco, hijo, was unanimously elected Chairman of the Meeting and the Minister of Finance of Ceylon, N.M. Perera and the Governor the Central Bank of Algeria, M.S. Mostefai were also unanimously elected Vice-Chairmen. The purpose of the Meeting was to establish the position of the developing countries on the several fundamental issues concerning the reform of the international monetary system within the terms of reference specified in the declaration and working programme of Lima. Mr Pierre-Paul Schweitzer, Managing Director of the IMF, and Mr Manuel Perez-Guerrero, Secretary-General of UNCTAD, also attended the meeting. The Ministerial Meeting was preceded by a meeting of the Deputies of the Intergovernmental Group in Caracas from 3–5 April, under the Chairmanship of Carlos Rafael Silva of Venezuela with Lal Jayawardena of Ceylon as Vice-Chairman and S.B. Falegan of Nigeria as Rapporteur. Mr Silva reported to the Ministers on the work of the Deputies. The Intergovernmental Group of 24 was constituted as a result of a mandate given in Lima by the Group of 77 to their Chairman, to consult Member Governments on the establishment of an intergovernmental group on monetary issues. On the basis of these consultations the Group of 24 was accordingly constituted and held its preliminary meeting at the level of Deputies in Geneva in February 1972. The Ministerial Group reviewed various substantive and procedural issues facing the international monetary system at the present time. It expressed its dissatisfaction that important decisions affecting the International Monetary System have been taken by a small number of developed countries to the exclusion and neglect of the interests of the rest of the international community, and that these decisions have adversely affected the economies of developing countries. The Group, therefore, considered that the most important task facing it at this moment is to provide for fundamental improvements in the decision-making process regarding international monetary issues. The Group agreed that the institution for decision-making on international monetary matters should be the International Monetary Fund. The members of the Intergovernmental Group unanimously decided to support the creation of a Committee of the Board of Governors of the IMF to advise the Board on issues related to the reform of the international monetary system. The Committee should be composed of 20 Governors, each selected from a constituency that appoints or elects an Executive Director, in a manner to be determined by each constituency. The representation of developing countries in this Committee should not be less than that in the present Board of Executive Directors. Such a Committee would represent a satisfactory compromise between the participation of the entire membership of the fund in decision-making, and the need to limit numbers to levels that would promote effective consultation and negotiation. The Group of 24 at Ministerial level will establish contact with the Governors representing developing countries in this Committee, once set up, to consider arrangements for adequate coordination with the Group of 24.

*

Karl P. Sauvant, The Collected Documents of the Group of 77 (Dobbs Ferry, New York: OCEANA Publications, 1982), Volume V, pp. 298–299.

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The Ministerial Meeting also examined the issues connected with the next activation of SDRs from the standpoint of the Articles of Agreement of the IMF according to which the actuation of SDRs would depend on the long term global needs for liquidity. The Group concluded that the international monetary experience of recent years is not sufficiently representative to constitute a reliable basis for predicting the future course of evolution of international liquidity. Furthermore, it considered that recent developments in the pattern of holdings of international liquidity, while tending to increase difficulties surrounding technical judgement in this area, should nevertheless be taken account of in determining the magnitude of liquidity creation. In the Iight of these considerations the Ministerial Meeting strongly supported the idea of a new activation of SDRs as from 1 January, 1973. The Group recognized that the magnitude of SDRs creation should at all times be determined by the liquidity needs of the world economy. At the same time they were convinced that the SDRs mechanism should be used to channel additional development finance to developing countries. Since the SDR system has enabled the developed countries to acquire additional international liquidity without the expenditure of real resources, there is a strong case for transferring some portion of these savings to developing countries. The Group accordingly gave its fullest endorsement to the establishment of a link between SDRs and additional development finance. The Group urged that this principle be accepted by the international community at the forthcoming UNCTAD and be followed up by appropriate action by the International Monetary Fund and its members. The Group expressed its dissatisfaction with the present system of determining Fund Quotas as this does not reflect the relative economic positions of Fund Members. It further recognized the necessity for modifying the present basis for the distribution of SDRs as between developed and developing countries. The Group agreed to meet again before the annual meeting of the IMF and IBRD, on the invitation of its chairman after previous consultations with member countries.

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2.  Ministerial Meeting of the Group of 77, New York, 11–14 March 1980 a.  Communiqué 1.  The Ministers of the States members of the Group of 77 met at New York from 11 to 14 March 1980. They had a comprehensive and extremely useful exchange of views on the items on the agenda for their meeting. 2.  The Ministers emphasized the importance of a unified and common position of the developing countries on all aspects relating to the new round of global negotiations for international economic co-operation for development. The Ministers also stressed the need to promote economic co-operation among developing countries with a view to contributing to their individual and collective self-reliance. 3.  The Ministers reiterated their view that the present period is a particularly difficult one in the evolution of the international economic situation and in the negotiations with the developed countries, and they noted with concern the aggravation of the negative trends in international economic relations, with increasingly harmful effects on the developing countries. They regarded present crisis as stemming from the underlying structural maladjustments and fundamental disequilibrium in the world economy and from the persistent lack of equity in international economic relations. 4. The Ministers reaffirmed their view that the existing international economic system was unable to provide adequate and equitable support to the development of the developing countries to enable those countries to play an effective role in international decision-making, or to ensure an efficient functioning of the world economy. 5.  The Ministers noted that multilateral economic negotiations between developed and developing countries were presently stalemated on a number of key issues. A  series of international conferences, such as the fifth session of the United Nations Conference on Trade and Development, the Third General Conference of the United Nations Industrial Development Organization and the negotiations in the Committee of the Whole Established under General Assembly Resolution 32/174, since its inception, have not succeeded in providing the necessary breakthrough on internationally agreed measures to promote the rapid economic and social development of developing countries. 6.  The global negotiations, therefore as outlined by the General Assembly at its thirty-fourth session, are aimed at concrete agreements for the solution of international economic problems within the framework of the restructuring of international economic relations in favor of developing countries. The global negotiations should result in steady global economic development, in particular the accelerated progress of developing countries, especially the least developed countries. The results of the global negotiations should encompass concrete, comprehensive and global solution of the major issues in the fields of raw materials, energy, trade, development, money and finance and, for this purpose, the negotiations should be action-oriented and proceed in a simultaneous manner in order to ensure a coherent and integrated approach to all issues under negotiations. 7.  The Ministers approved the document by the senior officials, submitted to the ministerial meeting, in respect of the draft agenda for the global negotiations (see annex I). The Ministers authorized the Group of 77 at New York to negotiate, within the framework of the document, with other groups in order to reach agreement in the Committee of the Whole on the draft agenda for the global negotiations for adoption by the General Assembly at its special session in August-September 1980. The Ministers took note of the fact that the first Economic Summit of

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the Organization of African Unity, was scheduled to be held in April 1980. The Ministers directed the Group of 77 at New  York to give careful consideration to proposals emanating from the Economic Summit, as well as those from other summit meetings and high-level meetings of specialized bodies of developing countries and of regional and subregional bodies of Africa, Asia and Latin America, with a view to incorporating them in the agenda for the global negotiations. 8. The Ministers approved the document submitted by the senior officials (see annex II) in respect of the procedures and time frame for global negotiations and authorized the Group of 77 at New York to negotiate with other groups within that framework. 9.  In view of the importance of the issues to be considered therein, the Ministers re-emphasized the need to convene the special session of the General Assembly in August/September 1980 at a high political level so as to ensure the necessary authority for the adoption of major decisions aimed at the solution of development problems and the urgent establishment of the New International Economic Order. 10. The Ministers considered matters relating to economic co-operation among developing countries and approved the document submitted by the senior officials on this subject (see annex III). 11.  The Ministers received a progress report on preparations for the new international development strategy. In view of the fact that the global negotiations should contribute to the implementation of the strategy, they emphasized the need to accelerate these preparations with a view to finalizing the new strategy in time for the special session of the General Assembly. The Ministers further emphasized the need for the Group of 77 to accord priority during the next few weeks to the task of formulating its position on policy measures, as an early presentation of the position of the Group of 77 on policy measures, will facilitate the negotiations on the goals and objectives of the strategy. 12.  The Ministers noted with interest the convening by the Secretary-General of the United Nations, on March 27 1980, of a Pledging Conference on the United Nations Interim Fund for Science and Technology for Development for the years 1980 and 1981. They appealed to all Governments and in particular to those of the developed countries, to contribute generously to the Interim Fund. 13.  The Ministers considered once again the importance of the right of exploring and exploiting the resources of the seabed beyond the limits of national jurisdiction for the benefit of mankind as a whole, and took into particular consideration the interest of developing countries in this respect. They noted that negotiations to create an international régime and machinery for the exploration and exploitation of the resources of the seabed beyond the limits of national jurisdiction for the benefit of mankind as a whole were in progress at the current session of the Third United Nations Conference on the Law of the sea. They expressed their conviction that unilateral legislation on sea-bed mining beyond the limits of national jurisdiction and other related matters would be contrary to the well-established principles of negotiations, would have considerable negative impact upon the successful conclusion of the Conference and would endanger other economic negotiations and affect the interest of the international community. The Ministers reaffirmed and reiterated their position on the matter, as contained in their resolution No. I, adopted on 29 September 1979.1

1.

For the text of the resolution, see A/34/611, annex, of 23 October 1979, and A/CONF. 62/94 of 19 October 1979.

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Annex I Draft agenda for the round of global negotiations 1.  The special session of the Genera Assembly in 1980 will launch, as agreed by the Assembly at its thirty-fourth session, a new round of global and sustained negotiations on international economic co-operation for development, such negotiations being action-oriented and proceeding in a simultaneous manner in order to ensure a coherent and integrated approach to the issues under negotiation. 2.  Agreement should be reached by the international community on concrete and mutually reinforcing measures designed to ensure new, comprehensive and global solutions in the fields outlined in the agenda, on the basis of the principles guiding the establishment of the New International Economic Order, for the purpose of securing a more rapid development of developing countries and for the restructuring of international economic relations. This should contribute, inter alia, to sustained global economic development and structural and institutional changes in the world economy. Special attention will be given to meeting the particular problems and needs of the least developed countries and, where appropriate, to those of land-locked, island and most seriously affected developing countries. 3.  The global negotiations will deal with all the issues in an interrelated manner and in a manner, which will not disrupt ongoing negotiations in other fora, but will reinforce and draw upon them. The negotiations under way in other fora, in turn, should not disrupt the global negotiations. In the event of any impasse in ongoing negotiations, the issues will be brought for negotiation within the framework of the global round. 4.  The global negotiations, by providing specific and concrete solutions to major issues, will also make significant contribution to the implementation of the international development strategy for the third United Nations Development Decade. 5.  The negotiations will cover the major issues in the fields on raw materials, energy, trade, development, money and finance. The proposals of the senior officials to the ministerial meeting in respect of the draft agenda for the global negotiations are outlined below. The presentation of the agenda items under different chapters has been made for practical reasons and does not prejudge the organization and structure of the global negotiations.

A. Raw materials 1.  On the items on raw materials, the global negotiations should complement ongoing negotiations within the framework of the Integrated Programme for Commodities and the Common Fund, which is a key instrument to attain the agreed objectives of the Programme: (a)  Improvement in and protection of the purchasing power of the unit value of primary commodities and raw material exports of developing countries; (b) Increased local storage and processing of raw materials produced by developing countries; (c) Compensatory financing of developing countries shortfalls in raw materials export earnings; (d)  Increased share of developing countries in the trade, transport, marketing and distribution of their primary commodities.

B. Energy 1.  The question of energy should be dealt with bearing in mind its interrelationship with other issues in the global negotiations relating to international economic co-operation for development

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as agreed by the General Assembly at its thirty-fourth session. Each one of these issues, as well as all of them taken together, should be dealt with in a comprehensive and integrated manner. 2.  The international community, in particular the developed countries, will have to achieve rapid and substantial progress in the transition from the present hydrocarbons-based international economy to one primarily based on new and renewable sources of energy, in which hydrocarbons are reserved for non-energy and non-substitutable uses. 3.  In the light of the growing scarcity of hydrocarbons and the problems related to it, including the need for urgent measures to be undertaken by the international community to alleviate the financial burden of developing countries resulting from the rise in cost of their net energy imports, the global negotiations should concentrate on: (a)  Effective conservation measures, particularly in developed countries (rationalization of consumption); (b)  Measures by the international community to meet the growing requirements of developing countries for all forms of energy on a priority basis; (c)  Provision of financial and technical resources, as well as technology for the development of new and renewable as well as conventional sources of energy in order to increase its availability; (d)  Exploration and development of indigenous energy resources in energy deficient developing countries; (e)  Improvement and protection of the purchasing power of the unit value of developing countries energy exports; (f)  Increased participation of developing countries in transportation and downstream activities in the field of energy.

C. Trade 1.  In the effort to adapt the rules and principles governing international trade and adopt appropriate measures to facilitate structural changes to meet the requirements of development of developing countries, the global negotiations should concentrate on: (a)  Protectionism, structural adjustment policies and access by developing countries to the markets of developed countries; (b)  Increase in and protection of the purchasing power of the export earnings of developing countries; (c) Shipping.

D. Development 1.  Development of food and agricultural production and diversification of production in developing countries and international co-operation to enhance their capacity to overcome their short-term and structural problems in this field: (a)  Transfer of resources; (b)  Research and transfer of technology. 2.  The establishment of an effective system of world food security, including food aid, emergency food reserve and an early conclusion of the new international grain arrangement. 3.  Urgent, concerted and sustained international action to assist the least developed countries to overcome their serious structural problems through, inter alia, the establishment of an international fund for the development of the least developed countries.

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4.  Restructuring of world industry including its deployment in favor of developing countries; (a)  Implementation of the Lima Target2 and the elaboration of disaggregated targets; (b)  Implementation of the Industrial Development Decade in Africa; (c)  Adjustment policies; (d)  Strengthening of the UNIDO system of consultation. 5.  International industrial financing, including the creation of a North-South global fund for the promotion of industrialization of developing countries. 6.  Transfer of technology to developing countries, including the adaptation and application of such technology and establishment of appropriate mechanisms for these purposes. 7.  Effective, adequate and long-term arrangements for the United Nations Financing System for Science and Technology for Development. 8.  Technical and financial support for development of infrastructure in developing countries including the implementation of the Transport and Communications Decade in Africa.

E.  Money and finance 1.  The global negotiations should lead to a net transfer of resources in real terms and a reform of the international monetary system, which would be equitable and responsive to the development requirements of the developing countries, and should concentrate on the following: I. Net transfer of resources in real terms to developing countries to promote their development: (a) Bilateral official development assistance: Volume and quality; (b) Multilateral assistance: Volume, terms and conditions, and mechanisms; (c) Urgent relief assistance fund in favor of the least developed countries in addition to measures adopted by UNCTAD in Conference resolution 122 (V); (d) Special relief measures in favor of the most seriously affected, land-locked and island developing countries; (e) Additional flows, including non-concessional flows, and access to capital markets and massive transfers of resources; related institutional arrangements and mechanisms which may be required; (f) Debt problem of developing countries, including, as appropriate, its cancellation, outlines for future renegotiation operations of interested developing countries as well as related institutional arrangements; (g) Improvement of balance-of-payments financing of developing countries: Improvement in the functioning of the existing IMF facilities, including liberalization of conditionality provisions and creation of new facilities. II.  Reform of the international monetary system to make it equitable and responsive to the development requirements of developing countries, through the adoption of appropriate policies and measures, in particular in the following fields: (a) Guaranteeing the real value and safeguarding the financial assets of developing countries; (b) Effective and equitable participation of the developing countries in the decision-making process; 2.

See A/10112.

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(c) Amending, as required, the Articles of Agreement of the International Monetary Fund and the World Bank, in accordance with the needs of developing countries. III.  (a) Compensation to developing countries for the effects of inflation imported from developed countries; (b) Measures by the international community to alleviate the financial burden of developing countries resulting from price rises in their imports, such as capital and manufactured goods, raw materials, energy, food, services and technology.

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ANNEX II Procedures and time frame for the new round of global negotiations 1.  For the purpose of the global negotiations, the special session of the General Assembly should convene a United Nations conference on global negotiations for international economic co-operation for development; 2.  The Conference should have universal participation, at a high political level, and should be the forum for conducting the negotiations with a view to ensuring a simultaneous, coherent and integrated approach to all issues under negotiations; 3.  The Conference should result in a ‘package agreement’, to the implementation of which all participating States would be committed; 4.  The Conference should function in accordance with procedures it would determine; these might include the creation of ad hoc groups for the purpose of facilitating detailed negotiation of the elements of the package; 5.  The Conference should meet throughout at United Nations Headquarters at New York; 6.  The Conference should start functioning on 5 January 1981 and should conclude its final session by 11 September 1981; 7.  The Conference should have the highest priority in respect of facilities and services to be provided by the United Nations Secretariat; 8. Appropriate arrangements would have to be made to ensure the effective support of the Secretariats of relevant organs, organizations and bodies of the United Nations system; 9.  Special invitations for attendance at the Conference should be extended to intergovernmental, specialized, regional and subregional organizations of developing countries relevant to the task of the Conference.

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ANNEX III Economic cooperation among developing countries 1.  The Ministers emphasized the urgent need to strengthen mutual co-operation among developing countries, in accordance with the spirit of the Mexico programme,3 by the early implementation of the First Short Medium-Term Action Plan for Global Priorities on Economic Co-operation among Developing Countries adopted at Arusha,4 as well as resolution No 7 adopted at the Sixth Conference of Heads of State or Government of Non-Aligned Countries,5 held at Havana from 3 to 8 September 1979. 2.  The Ministers reaffirmed that the intensification and strengthening of integrated co-operation was not only highly desirable and achievable in all fields, but would contribute to the individual and collective self-reliance of the developing countries, and also to their unity and solidarity in negotiations with developed countries on the restructuring of international economic relations. 3.  The Ministers underlined that, whereas activities relating to economic co-operation among developing countries were currently being undertaken on a bilateral and multilateral basis, in subregional and regional bodies and in some international fora, there were other important areas of those activities, which were not adequately covered and had not been sufficiently explored. In concrete terms, therefore, the implementation of activities of economic co-operation among developing countries should be further encouraged and intensified in a coherent and comprehensive collective framework for mutual co-operation. 4.  The Ministers took note of the efforts being made for the implementation of the Arusha programme for Collective Self-Reliance by the Group of 77. They further underlined the importance of giving full and prompt support, by all concerned, including that of the United Nations system as and when requested, to the implementation of the Arusha programme, which identifies, inter alia, measures in favor of the least developed countries, land-locked countries and island developing countries. They gave full support to the interregional meetings to be held at Geneva, from 17 March to 3 April 1980, with a view to giving effect of these efforts. 5.  The Ministers welcomed resolution No. 7 adopted at Havana, entitled ‘Policy guidelines on the reinforcement of collective self-reliance between developing countries’, and agreed that the resolution should also be the basis for urgent and substantial forward movement of economic co-operation among developing countries. In this respect, they also underlined that this would contribute to the strengthening of their negotiating position for the global negotiations. 6.  In this context, the Ministers also welcomed the decisions taken at the Fifty-fifth Conference of OPEC, held in Caracas, ‘to accord priority to the other developing countries in securing the supply of oil for their domestic requirements, on the basis of member countries official prices, and reaffirmed its commitment to ensure that these countries do not incur prices beyond these official OPEC prices’ and took note with interest of the ideas for further co-operation among developing countries which emerged from that and subsequent meetings. 7.  The Ministers affirmed that the questions of trade, different sources and forms of energy, raw materials, food, technology and other related matters in the field of economic co-operation among developing countries should be considered each and all in an integrated and coherent approach. 8.  The Ministers considered that an assessment and evaluation, and action-oriented recommendations would be required in respect of activities already being undertaken, those which have been accepted, such as the Arusha Programme and the resolution adopted at Havana, and 3. 4. 5.

See A/C.2/31/7, part one. See TD/236. For the text of the resolution, see A/34/542, annex.

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such other areas of activities of economic co-operation among developing countries as have so far not been explored for covered. 9.  To this end, the Ministers agreed to set up an open-ended ad hoc intergovernmental group at the expert and/or political level with the task of elaborating appropriate action-oriented recommendations for the early and effective implementation of the objectives of economic co-operation among developing countries, including those identified in previous paragraphs. The Intergovernmental Group should meet in June 1980 at a venue to be determined later. The Ministers further agreed to review economic co-operation among developing countries at their meeting in September 1980, taking into account, inter alia, a report of their ad hoc intergovernmental group. 10.  The Ministers pledged themselves to do their utmost to enhance their efforts to promote mutual co-operation.

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3.  Ministerial Meeting of the Group of 77, New York, 21–22 August 1980 a. Communiqué 1.  The Ministers of the States members of the Group of 77 met at United Nations Headquarters on the eve of the eleventh special session of the General Assembly, convened to assess the progress made in the establishment of the New International Economic Order and to take appropriate action for the promotion of the development of the developing countries, in particular, through the adoption of the New International Development Strategy for the Third United Nations Development Decade and the launching of the global negotiations for international economic co-operation for development. 2.  The Ministers reviewed the international economic situation. They noted with deep concern that no substantial progress had been achieved in the implementation of, and in negotiations for bringing about the establishment of the New International Economic Order, the aim and objectives of which had been embodied in the Declaration and the Programme of Action on the Establishment of a New International Economic Order adopted by the General Assembly at its sixth special session (resolutions 3201 (S-VI) and 3202 (S-VI)). They noted with serious preoccupation that in certain cases there had been even a tendency on the part of the developed countries to slide back from earlier agreements. Even though some limited progress had been achieved on some issues, this had been grossly inadequate. The lack of progress was due to the failure of the developed countries to display adequate political will, even on issues requiring urgent and non-postponeable action. Hence the historic importance of the special session which will be grappling with the economic and political issues arising from this situation. 3.  Developing countries have been with increasing intensity pointing out the stresses and strains on their economies, which have now assumed alarming and critical proportions. The economic situation of the large majority of developing countries had increasingly deteriorated during the last decade. The economies of the least developed countries had either collapsed or were on the verge of doing so. Other developing countries, particularly the most seriously affected, the land-locked and the island developing countries, were facing unprecedented economic problems, for the solution of which the assistance of the international community was indispensable. The Ministers deplored the fact that adequate, effective and timely measures had not been taken by the developed world and that their response had been inadequate and halting. 4.  The world economic crisis had now assumed unparalleled dimensions and was of a greater magnitude than the crisis that the world had faced at the time of the sixth special session, particularly in regard to the chronic imbalances in international payments, a substantial slow-down in world economic activity and growth, accompanied by the sharp deterioration in the terms of trade of developing countries, growing protectionism, high levels of unemployment, underemployment and inflation, as well as new constraints on export earning capacity, the growing burden of external indebtedness, persistent mass poverty in developing countries, insecurity and insufficiency of food supplies and inadequate level of transfer of real resources to them all, contributing to increased world economic instability. The aggravation of these negative trends in the world economy had a profoundly asymmetrical impact, since the economies of the developing countries were the main victims owing to their vulnerability and lack of capacity to make the requisite adjustments. In this connection, they pointed out the imperative need for simultaneous and parallel action to resolve short-term, medium-term and long-term problems.

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5.  The root causes of this situation were the inequities and inadequacies of the existing international economic system. The interdependence among nations had increase to an extent that no one country, or group of countries, could isolate themselves and remain unaffected by upheavals and turmoil in any part of the world. 6.  The Ministers reaffirmed that sustained and accelerated development of the developing countries could be ensured only through a fundamental restructuring of existing international economic relations, inter alia, by the adoption of the new rules and principles governing international trade, financial and monetary matters, which would ensure active participation and a just, equitable and effective role for developing countries in international decision-making and management. 7.  The Ministers urged the international community, in particular the developed countries, to take urgent steps on a priority basis to implement the agreed upon special measures for the least developed countries, including resolution 122 (V) of the United Nations Conference on Trade and Development1 and, in particular, the Immediate Action Programme (1979–1981). The Ministers also expressed the hope that the Substantial New Programme of Action for the 1980s will be finalized, adopted and supported by the international community, in particular developed countries at the United Nations Conference on the Least Developed Countries in 1981. 8.  The Ministers were of the view that measures agreed upon for alleviating the problems of the most seriously affected, land-locked and island developing countries should be urgently implemented and speedy follow-up action taken on the relevant resolutions adopted by the General Assembly. 9.  The Ministers took note with great interest of the suggestions made by the Secretary-General in his address to the Economic and Social Council at its second regular session for 1980 for overcoming the critical economic situation of many developing countries. The Ministers expressed the view that these suggestions needed further elaboration for consideration and appropriate action at the thirty-fifth session of the General Assembly. 10.  The Ministers emphasized the importance of the finalization and adoption at the eleventh special session of the General Assembly of a New International Development Strategy that would be coherent and comprehensive and would comprise concerted measures in all sectors of development. They regretted, however, that major differences still remained on issues of crucial importance to the developing countries in regard to the goals and objectives and policy measures of the Strategy. They urged the developed countries, during the special session to engage in meaningful negotiations leading to agreements that would permit such a Strategy to be an effective instrument for the implementation of the New International Economic Order commensurate with the challenges of development for the Third Development Decade. 11.  The Ministers stressed the imperative need to launch at the eleventh special session of the General Assembly a round of global and sustained negotiations on international economic co-operation for development in accordance with the negotiations provided the only means for the international community to deal with the various problems affecting the present international economic system and to agree upon measures and time-bound programmes in a coordinated and comprehensive manner. They noted that, in accordance with the directives contained in their communiqué of 14 March 1980, the Group of 77, at United Nations Headquarters, had engaged in serious negotiations in the Committee of the Whole to finalize the agenda, procedures and time-frame for the proposed global negotiations. They deeply regretted the fact that no agreement had so far been reached on those issues. 1.

See Proceedings of the United Nations Conference on Trade and Development, fifth Session, vol. I, Report and Annexes (United Nations publications, Sales No.E.79.II D.14), part one, sect. A.

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12.  The Ministers noted with great concern the harmful effects of the arms race and the growing international tension on the development efforts of the developing countries and on international economic co-operation. They called for concrete progress towards the goals of general and complete disarmament under effective international control, including the urgent implementation of disarmament measures, which would release substantial additional resources that could be utilized for social and economic development, particularly for the benefit of the developing countries. 13.  The Ministers reiterated the importance of strengthening economic and technical co-operation among developing countries. In that connection, they noted with appreciation the successful meetings held recently such as the Interregional Meeting on Economic Cooperation among Developing Countries held at Geneva in March-April 1980 and the Meeting of the Ad-Hoc Intergovernmental Group on Economic Co-operation among Developing countries, held at Vienna in June 1980. The Ministers affirmed that the Lagos Plan of Action for the implementation of the Monrovia Strategy for the Economic Development of Africa, as well as the Final Act, adopted by the First Economic Summit of the Organization of African Unity, convened at Lagos, Nigeria, in April 1980, was an historic landmark in giving a greater practical content to the implementation of co-operation in the African region. They were determined to work resolutely for the progressive and speedy implementation of the Mexican Programme, the Arusha Programme for Collective Self Reliance2 and resolution 7, adopted by the Sixth Conference of Heads of State or Government of Non-Aligned countries at Havana, entitled ‘Policy guidelines on the reinforcement of collective self-reliance among developing countries’ (see A/34/542, annex, sect. VI. A). They were convinced that the new horizons in economic and technical co-operation among developing countries and the designing of mechanisms which would reflect their collective interests would cement their unity and solidarity, thereby contributing both to their collective self-reliance and to significant improvements in their bargaining position with the developed world. They viewed economic and technical cooperation among developing countries as the key element in strengthening the role of the developing countries in the implementation of the New International Economic Order. 14.  The Ministers, considering the gravity of the current economic situation, expressed the hope that in spirit of co-operation, interdependence and mutual benefit, all industrialized countries would approach the negotiations at the special session with a sense of purpose and the political will indispensable to the success of the negotiations. They emphasized in this regard that the failure of the special session would have far-reaching adverse consequences for international economic co-operation, development, economic justice and stability, world peace and security. 15.  The Ministers expressed their resolve to continue to work within the framework of the efforts of the Group of 77 towards the implementation of the New International Economic Order for the successful conclusion of the special session and for the realization of the tasks entrusted to it by the General Assembly at its thirty-fourth session.

2.

Ibid, annex VI.

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4.  Ministerial Meeting of the Negotiating Committee on the Establishment of a Global System of Trade Preferences among Developing Countries, Belgrade, 11–13 April 1988 a. Agreement on the Global System on Trade Preferences among Developing Countries (GSTP) Preamble The States parties to this Agreement, Recognizing that economic co-operation among developing countries is a key element in the strategy of collective self-reliance and an essential instrument to promote structural changes contributing to a balanced and equitable process of global economic development and the establishment of the New International Economic Order; Recognizing also that a Global System of Trade Preference (hereinafter referred to as ‘GSTP’) would constitute a major instrument for the promotion of trade among developing countries members of the Group of 77, and the increase of production and employment in these countries; Bearing in mind the Arusha Programme of Collective Self-Reliance, the Caracas Programme of Action and the Declarations on GSTP adopted by the Ministers of Foreign Affairs of the Group of 77 in New  York in 1982, and the Ministerial meetings on GSTP in New Delhi in 1985, in Brasilia in 1986 and in Belgrade in 1988; Believing that the establishment of the GSTP should be accorded high priority as a major instrument of South-South co-operation, for the promotion of collective self-reliance as well as for the strengthening of world trade as a whole; have agreed as follows:

CHAPTER I INTRODUCTION Article 1 Definitions For the purpose of this Agreement: (a) ‘Participant’ means: (i)  Any member of the Group of 77 listed in annex I which has exchanged concessions and has become party to this Agreement in accordance with its articles 25, 27 or 28. (ii)  Any sub-regional/regional/inter-regional grouping of developing countries members of the Group of 77 listed in annex I which has exchanged concessions and has become party to this Agreement in accordance with its articles 25, 27 or 28; (b)  ‘Least developed country’ means a country designated as such by the United Nations; (c)  ‘State’ or ‘country’ means any state or country member of the Group of 77. (d)  ‘Domestic producers’ means physical or juridical persons established in the territory of a participant which are engaged in production of commodities and manufactures, including industrial, agricultural, extractive or mining products, in their raw, semi-processed or processed forms in that territory. Furthermore, for the purpose of determining ‘serious injury’ or ‘threat of serious injury’, the term ‘domestic producers’ in this Agreement shall mean domestic

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producers as a whole of like or similar products, or those of them whose collective output of the products constitutes a major proportion of the total domestic production of those products. (e) ‘Serious injury’ means significant damage to domestic producers, of like or similar products resulting from a substantial increase of preferential imports in situations, which cause substantial losses in terms of earnings, production or employment unsustainable in the short term. The examination of the impact on the domestic industry concerned shall also include an evaluation of other relevant economic factors and indices having a bearing on the state of the domestic industry of that product. (f)  ‘Threat of serious injury’ means a situation in which a substantial increase of preferential imports is of a nature to cause ‘serious injury’ to domestic producers, and that such injury, although not yet existing, is imminent. A determination of threat of serious injury shall be based on facts and not on mere allegation, conjecture, or remote or hypothetical possibility. (g)  ‘Critical circumstances’ means the emergence of an exceptional situation where massive preferential imports are causing or threatening to cause ‘serious injury’ difficult to repair and which calls for immediate action. (h)  ‘Sectoral agreements’ means agreements amongst participants regarding the removal or reduction of tariff, non-tariff and para-tariff barriers as well as other trade promotion or co-operative measures for specified products or groups of products closely related in end use or in production. (i)  ‘Direct trade measures’ means measures conducive to promoting mutual trade of participants such as long- and medium-term contracts containing import and supply commitments in respect of specific products, buy-back arrangements, state trading operations, and government and public procurement. (j) ‘Tariffs’ means custom duties stipulated in the national tariff schedules of the participants. (k) ‘Non-tariffs’ means any measure, regulation, or practice, other than ‘tariffs’ and ‘para-tariffs’, the effect of which is to restrict imports, or to significantly distort trade. (l)  ‘Para-tariffs’ means border charges and fees, other than ‘Tariffs’, on foreign trade transactions of a tariff-like effect which are levied solely on imports, but not those indirect taxes and charges, which are levied in the same manner on like domestic products. Import charges corresponding to specific services rendered are not considered as para-tariff measures.

CHAPTER II GLOBAL SYSTEM OF TRADE PREFERENCES Article 2 Establishment and aims of the GSTP By the present Agreement, the participants establish the GSTP to promote and sustain mutual trade, and the development of economic co-operation among developing countries, through exchange of concessions in accordance with this Agreement.

Article 3 Principles The GSTP shall be established in accordance with the following principles: (a)  The GSTP shall be reserved for the exclusive participation of developing countries members of the Group of 77;

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(b)  The benefits of the GSTP shall accrue to the developing countries members of the Group of 77 who are participants in accordance with article 1 (a); (c)  The GSTP shall be based and applied on the principle of mutuality of advantages in such a way as to benefit equitably all participants, taking into account their respective levels of economic and industrial development, the pattern of their external trade and their trade policies and systems; (d)  The GSTP shall be negotiated step by step, improved and extended in successive stages, with periodic reviews; (e)  The GSTP shall not replace, but supplement and reinforce, present and future subregional, regional and interregional economic groupings of developing countries of the Group of 77, and shall take into account the concerns and commitments of such economic groupings; (f)  The special needs of the least developed countries shall be clearly recognized and concrete preferential measures in favour of these countries should be agreed upon; the least developed countries will not be required to make concessions on a reciprocal basis; (g) The GSTP shall include all products, manufactures, and commodities in their raw, semi-processed and processed forms; (h) Intergovernmental subregional, regional and interregional groupings for economic co-operation among developing countries members of the Group of 77 may participate, fully as such, if and when they consider it desirable, in any or all phases of the work on the GSTP.

Article 4 Components of the GSTP The GSTP may, inter alia, consist of the following components: (a)  arrangements relating to tariffs; (b)  arrangements relating to para-tariffs; (c)  arrangements relating to non-tariff measures; (d) arrangements relating to direct trade measures including medium and long-term contracts; (e)  arrangements relating to sectoral agreements.

Article 5 Schedules of concessions The tariff, para-tariff and non-tariff concessions negotiated and exchanged among participants shall be embodied in schedules of concessions which shall be annexed to and form an integral part of this Agreement.

CHAPTER III NEGOTIATIONS Article 6 Negotiations 1.  The participants may hold from time to time rounds of bilateral/plurilateral/multilateral negotiations with a view to the further expansion of the GSTP and the fuller attainment of its aims.

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2.  The participants may conduct their negotiations in accordance with any or a combination of the following approaches and procedures: (a)  Product-by-product negotiations; (b)  Across-the-board tariff reductions; (c)  Sectoral negotiations; (d)  Direct trade measures, including medium and long term contracts.

CHAPTER IV COMMITTEE OF PARTICIPANTS Article 7 Establishment and functions 1.  A  committee of participants (hereinafter referred to as the ‘Committee’) shall be established, upon entry into force of this Agreement, consisting of the representatives of the Governments of the participants. The Committee shall perform such functions as may be necessary to facilitate the operation and further the objectives of this Agreement. The Committee shall be responsible for reviewing the application of this Agreement and the instruments adopted within its framework, monitoring the implementation of the results of the negotiations, carrying out consultations, making recommendations and taking decisions as required, and, in general, undertaking whatever measures may be required to ensure the adequate implementation of the objectives and the provisions of this Agreement. (a)  The Committee shall keep under review the possibility of promoting further negotiations for the enlargement of the schedules of concessions and for the enhancement of trade among participants through other measures and may at any time sponsor such negotiations. The Committee shall also ensure prompt and complete dissemination of trade information in order to promote trade among participants; (b)  The Committee shall review disputes and make recommendations thereon in accordance with article 21 of this Agreement; (c)  The Committee may establish such subsidiary organs as may be necessary to the effective discharge of its functions; (d)  The Committee may adopt appropriate regulations and rules as may be necessary to the implementation of this Agreement. 2.  (a) The Committee shall endeavour to ensure that all its decisions are taken by consensus; (b)  Notwithstanding any measures that may be taken in compliance with paragraph 2(a) of this article, a proposal or motion before the Committee shall be voted on if a representative so requests; (c)  Decisions shall be taken by two-thirds majority on matters of substance and a simple majority on matters of procedure. 3.  The Committee shall adopt its rules of procedure. 4.  The Committee shall adopt financial rules and regulations.

Article 8 Co-operation with international organizations The Committee shall make whatever arrangements are appropriate for consultation or co-operation with the United Nations and its organs, in particular United Nations Conference on

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Trade and Development (UNCTAD) and the specialized agencies of the United Nations, as well as intergovernmental, subregional, regional and interregional groupings for economic co-operation among developing countries members of the Group of 77.

CHAPTER V GROUND RULES Article 9 Extension of negotiated concessions 1.  Except as provided for in paragraphs 2 and 3 of this article, all tariff, para-tariff and non-tariff concessions, negotiated and exchanged among participants in the bilateral/plurilateral negotiations shall, when implemented, be extended to all participants in the GSTP negotiations on a most-favoured-nation (MFN) basis. 2.  Subject to Rules and Guidelines prescribed in this regard, participants parties to direct trade measures, sectoral agreements or agreements on non-tariff concessions may decide not to extend the concessions linked to such agreements to other participants. Such non-extension shall not have a detrimental impact on the trade interests of other participants, and when it has such an effect, the matter shall be submitted to the Committee for consideration and decision. Such agreements shall be open to all participants in the GSTP through direct negotiations. The Committee shall be informed of the initiation of negotiations on such agreements as well as on their provisions once concluded. 3.  Notwithstanding the provisions of paragraphs 1 and 2 of this article, participants may grant tariff, non-tariff and para-tariff concessions applicable exclusively to exports originating from participating least developed countries. Such concessions, when implemented, shall apply in equal measures to all participating least developed countries. If after granting of any exclusive right it proves detrimental to the legitimate trading interest of other participants, the matter may be brought to the Committee for a review of such arrangements.

Article 10 Maintenance of the value concessions Subject to terms, conditions or qualifications that might be set out in the schedules containing the concessions granted, a participant shall not impair or nullify these concessions, after entry into force of this Agreement, through the application of any charge or measure restricting commerce other than those existing prior thereto, except where such charge corresponds to an internal tax imposed on a like domestic product, an anti-dumping or countervailing duty, or fees commensurate with the cost of services rendered, and except any measures authorized under articles 13 and 14.

Article 11 Modification and withdrawal of concessions 1.  Any participant may, after a period of 3  years from the day the concession was extended, notify the Committee of its intention to modify or withdraw any concession included in its appropriate schedule. 2.  The participant intending to withdraw or modify a concession shall enter into consultation and/or negotiations, with a view to reaching agreement on any necessary and appropriate

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compensation, with participants with which such concession was initially negotiated and with any other participants that have a principal or substantial supplying interest as may be determined by the Committee. 3.  Should no agreement be reached between the participants concerned within six months of the receipt of notification and should the notifying participant proceed with its modification or withdrawal of such concessions, the affected participants as determined by the Committee may withdraw or modify equivalent concessions in their appropriate schedules. Any such modification or withdrawal should be notified to the Committee.

Article 12 Withholding or withdrawal of concessions A participant shall at any time be free to withhold or to withdraw in whole or in part any item in its schedule of concessions in respect of which it determines that it was initially negotiated with a State which has not become, or has ceased to be, a participant in this Agreement. A participant taking such action shall notify the Committee and, upon request, consult with participants that have a substantial interest in the product concerned.

Article 13 Safeguard measures A participant shall be able to take safeguard measures to ward off serious injury or threats of serious injury to domestic producers of like or similar products, which may arise as a direct consequence of unforeseen substantial rise of imports enjoying preferences under the GSTP. 1.  Safeguard measures shall be in accordance with the following rules: (a)  Safeguard measures should be consistent with the aims and objectives of the GSTP. These measures should be applied in a non-discriminatory fashion among the participants in the GSTP. (b)  Safeguard measures should be in effect only to the extent and for such time as may be necessary to prevent or remedy such injury. (c)  As a general rule and except in critical circumstances, all safeguard measures shall be taken after consultation between interested participants. Participants intending to take such safeguard measures will be required to demonstrate to the satisfaction of the concerned parties within the Committee the serious injury or threat thereof justifying such measures. 2.  Safeguard action to ward off serious injury or a threat of injury should be in accordance with the following procedures: (a) Notification:  Any participant intending to take safeguard measures should notify the Committee of its intention, and the Committee shall circulate this notification to all participants. Upon receipt of such notification, interested participants intending to enter into consultations with the initiating participants shall so notify the Committee within 30 days. In critical circumstances when delay could cause damage which would be difficult to repair, action may be taken provisionally without prior consultations, on the condition that consultations shall be effected immediately after taking such action; (b)  Consultation: Interested participants should enter into consultations for the purpose of reaching an agreement as to the nature of the safeguard measures to be taken, or already taken, and its duration, and as to compensation or the renegotiation of concessions. These consultations should be concluded within three months of receipt of the original notification. Should these consultations not lead to an agreement satisfactory to all parties within the time

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period specified above, the matter should be referred to the Committee for resolution of the issue. Should the Committee fail to resolve the issue within four weeks of the date of its having been referred to it, the parties affected by the safeguard action have the right to withdraw equivalent concessions or other obligations under GSTP of which the Committee does not disapprove of.

Article 14 Balance-of-payments measures If a participant faces serious economic problems during the implementation of the GSTP, such participant shall be able to take measures to meet serious balance-of-payments difficulties. 1.  Any participant, which finds it necessary to institute or intensify quantitative restrictions or other measures limiting imports concerning products or areas where concessions have been offered with a view to forestalling the threat of or stopping a serious decline in its monetary reserves, shall endeavour to do so in order to prevent or remedy such difficulties, in a manner which preserves, as much as possible, the value of negotiated concessions. 2.  Such action shall be notified immediately to the Committee which shall circulate such notification to all participants. 3.  Any participant which takes action according to paragraph 1 of this article shall afford, upon request from any other participant, adequate opportunity for consultations with a view to preserving the stability of the concessions negotiated under the GSTP. If no satisfactory adjustment is effected between the participants concerned within three months of such notification, the matter may be referred to the Committee for a review.

Article 15 Rules of origin Products contained in the schedules of concessions annexed to this Agreement shall be eligible for preferential treatment if they satisfy the Rules of Origin, which shall be annexed to and form an integral part of this Agreement.

Article 16 Procedures relating to the negotiations of long-term and medium-term contracts among interested participants in the GSTP 1.  Within the framework of this Agreement, long-term and medium-term contracts involving import and export commitments in respect to specific commodities or products may be entered into among participants. 2.  To facilitate the negotiation and conclusion of such contracts: (a)  exporting participants should indicate the commodities or products for which they may be prepared to undertake supply commitments together with an indication of the quantities that may be involved; (b)  importing participants should indicate the commodities or products for which they could envisage undertaking import commitments and, where possible, an indication of the quantities that may be involved; and (c)  The Committee will provide assistance for the multilateral exchange of information provided under (a)  and (b)  above and for bilateral and/or multilateral negotiations among

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interested exporting and importing participants for the purpose of concluding long-term and medium-term contracts. 3. Participants concerned should notify the Committee of the conclusion of long-term and medium-term contracts as soon as possible.

Article 17 Special treatment for least developed countries 1.  In accordance with the Ministerial Declaration on the GSTP, the special needs of the least developed countries shall be clearly recognized, and concrete preferential measures in favour of these countries shall be agreed on. 2.  To become a participant a least developed country shall not be required to make concessions on a reciprocal basis, and such participating least developed country shall benefit from the extension of all tariff, para-tariff and non-tariff concessions exchanged in the bilateral/plurilateral negotiations which are multilateralized. 3.  Participating least developed countries should identify their export products for which they may wish to seek concessions in the markets of other participants. Technical assistance by the United Nations and other participants in a position to do so, including the provision of relevant information relating to trade in the products concerned and the major developing import markets, together with market trends and prospects and trade regimes of the participants, should be provided to these countries on a priority basis to assist them in this task. 4.  Participating least developed countries may, with respect to export products and markets identified under paragraph 3 above, make specific requests to other participants for tariff, para-tariff and non-tariff concessions and/or direct trade measures, including long-term contracts. 5.  Special consideration shall be given to exports from participating least developed countries in the application of safeguard measures. 6.  The concessions sought in respect to these products may include: (a)  duty-free access, particularly for processed and semi-processed goods; (b)  the removal of non-tariff barriers; (c)  the removal, where appropriate, of para-tariff barriers; (d)  the negotiation of long-term contracts with a view to assisting participating least developed countries to achieve reasonable levels of sustainable exports of their products. 7.  Participants shall sympathetically consider requests from participating least developed countries for concessions sought under paragraph 6 above and shall endeavour, wherever possible, to meet such requests, in whole or in part, as a manifestation of concrete preferential measures to be agreed on in favour of participating least developed countries.

Article 18 Subregional, regional and interregional groupings Tariff, para-tariff and non-tariff preferences applicable within existing subregional, regional and interregional groupings of developing countries notified and registered in this Agreement shall retain their essential character, and there shall be no obligation on the members of such groupings to extend, nor the right of other participants to enjoy the benefits of such preferences. The provisions of this paragraph shall apply equally to the preferential agreements concluded with a view to creating subregional, regional and interregional groupings of developing countries and to future subregional, regional and interregional groupings of developing countries that will be

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notified as such and duly registered in this Agreement. Furthermore, these provisions shall apply in equal measures to all tariff, para-tariff and non-tariff preferences which may in the future become applicable within such subregional, regional or interregional groupings.

CHAPTER VI CONSULTATIONS AND SETTLEMENT OF DISPUTES Article 19 Consultations 1.  Each participant shall accord sympathetic consideration to, and shall afford adequate opportunity for, consultations regarding such representations as may be made by another participant with respect to any matter affecting the operation of this Agreement. 2.  The Committee may, at the request of a participant, consult with any participant in respect of any matter for which it has not been possible to find a satisfactory solution through such consultation under paragraph 1 above.

Article 20 Nullification or impairment 1.  If any participant should consider that another participant has altered the value of a concession embodied in its schedule or that any benefit accruing to it directly or indirectly under this Agreement is being nullified or impaired as the result of the failure of another participant to carry out any of its obligations under this Agreement or as the result of any other circumstance relevant to the operation of this Agreement, the former may, with a view to the satisfactory adjustment of the matter, make written representations or proposals to the other participants which it considers to be concerned, which thus approached shall give sympathetic consideration to the representations or proposals made to them. 2.  If no satisfactory adjustment is effected between the participants concerned within 90 days from the date on which such representation or request for consultation was made, the matter may be referred to the Committee which shall consult with the participants concerned and make appropriate recommendations within 75 days from the date the matter was referred to the Committee. If still no satisfactory adjustment is made within 90 days after the recommendations were made, the aggrieved participant may suspend the application of substantially ­equivalent concession, or other obligations of the GSTP which the Committee does not disapprove of.

Article 21 Settlement of disputes Any dispute that may arise among the participants regarding the interpretation and application of the provisions of this Agreement or any instrument adopted within its framework shall be amicably settled by agreement between the parties concerned in line with article 19 of this Agreement. In the event of failure to settle a dispute, it may be referred to the Committee by a party to the dispute. The Committee shall review the matter and make a recommendation thereon within 120 days from the date on which the dispute was submitted to it. The Committee shall adopt appropriate rules for this purpose.

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CHAPTER VII FINAL PROVISIONS Article 22 Implementation Each participant shall take such legislative or other measures as may be necessary to implement this Agreement and the instruments adopted within its framework.

Article 23 Depositary The Government of the Socialist Federal Republic of Yugoslavia is hereby designated as the depositary of this Agreement.

Article 24 Signature This Agreement shall be open for signature at Belgrade, Yugoslavia, from 13 April 1988 until the date of its entry into force in accordance with article 26.

Article 25 Definitive signature, ratification, acceptance or approval Any participant referred to in article 1 (a) and in annex I of this Agreement which has exchanged concessions may: (a)  At the time of signing this Agreement, declare that by such signature it expresses its consent to be bound by this Agreement (definitive signature); or (b)  After signing this Agreement, ratify, accept or approve it by the deposit of an instrument to that effect with the depositary.

Article 26 Entry into force 1.  This Agreement shall enter into force on the thirtieth day after 15 States referred to in article 1 (a) and in annex I of the Agreement from the three regions of the Group of 77, which have exchanged concessions have deposited their instruments of definitive signature, ratification, acceptance, approval in accordance with article 25, paragraphs (a) and (b). 2.  For any State which deposits an instrument of ratification, acceptance, approval or accession or a notification of provisional application after the conditions for entry into force of this Agreement have been met, it shall enter into force for that State on the thirtieth day after such deposit or notification. 3.  Upon entry into force of this Agreement the Committee shall set a final date for the deposit of instruments of ratification, acceptance, or approval by states referred to in article 25. This date shall not be later than three years following the date of entry into force of this Agreement.

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Article 27 Notification of provisional application A signatory which intends to ratify, accept or approve this Agreement but which has not yet been able to deposit its instrument, may within sixty days after the Agreement enters into force notify the depositary that it will apply this Agreement provisionally. The provisional application shall not exceed a period of two years.

Article 28 Accession Six months after this Agreement enters into force in accordance with the provisions of this Agreement it shall be open to accession by other members of the Group of 77 who shall have complied with the conditions provided for in this Agreement. To this end the following procedures shall apply: (a)  The applicant shall notify its intention of accession to the Committee; (b)  The Committee shall circulate the notification among the participants; (c)  The applicant shall submit an offer list to the participants and any participant may table a request list to the applicant; (d)  Once the procedures under (a), (b) and (c) above have been completed, the applicant shall enter into negotiations with the interested participants with a view to reaching agreement on its list of concessions. (e)  Application for accession from a least developed country shall be considered taking into account the provision for special treatment for least developed countries.

Article 29 Amendments 1.  Any participant may propose an amendment to this Agreement. The Committee shall consider and recommend the amendment for adoption by the participants. An amendment shall become effective 30 days after the date on which two-thirds of the participants, in article 1 (a), have notified the depositary of their acceptance. 2.  Notwithstanding provisions of paragraph 1 of this article: (a)  Any amendment concerning: (i) The definition of membership stipulated in article 1(a); (ii) The procedure for amending this Agreement; shall enter into force after its acceptance by all participants in accordance with article 1 (a) of this Agreement. (b)  Any amendment concerning: (i) The principles stipulated in article 3; (ii) The base of consensus and any other bases of voting mentioned in this Agreement; shall enter into force after its acceptance by consensus.

Article 30 Withdrawal 1.  Any participant may withdraw from this Agreement at any time after its entry into force. Such withdrawal shall be effective six months from the day on which written notice thereof is received

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by the depositary. That participant shall simultaneously inform the Committee of the action it has taken. 2.  The rights and obligations of a participant which has withdrawn from this Agreement shall cease to apply as of that date. After that date, the participants and the withdrawing participant shall jointly decide whether to withdraw in whole or in part the concessions received by the latter from the former and vice versa.

Article 31 Reservations Reservations may be made in respect of any of the provisions of this Agreement provided they are not incompatible with the object and purpose of this Agreement and are accepted by the majority of the participants.

Article 321 Non-application 1.  The GSTP shall not apply as between participants if they have not entered into direct negotiations with each other and if either of them at the time either accepts this Agreement does not consent to such application. 2.  The Committee may review the operation of this article in particular cases at the request of any of the participants and make appropriate recommendations.

Article 33 Security exceptions Nothing in this Agreement shall be construed to prevent any participant from taking any action which it considers necessary for the protection of its essential security interests.

Article 34 Annexes 1.  The annexes form an integral part of this Agreement and a reference to this Agreement or to one of its chapters includes a reference to the annexes relating thereto. 2.  The annexes to this Agreement shall be: (a)  Annex I—Participants in the Agreement. (b)  Annex II—Rules of Origin. (c)  Annex III—Additional Measures in Favour of Least Developed Countries (d)  Annex IV—Schedules of Concessions DONE at Belgrade, Yugoslavia, on the thirteenth day of April, one thousand nine hundred and eighty-eight, the texts of this Agreement in the Arabic, English, French and Spanish languages being equally authentic. IN WITNESS WHEREOF the undersigned, being duly authorized thereto, have signed this Agreement on the dates indicated.

1.

This article can only be invoked in exceptional circumstances duly notified to the Committee.

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5.  Meeting of the Ministers for Foreign Affairs of the Members States of the Group of 77 on the occasion of the Twenty-fifth anniversary of the establishment of the Group of 77, Caracas, Venezuela, 21–23 June 1989 a. The Caracas Declaration The Ministers of Foreign Affairs of the member countries of the Group of 77 met at Caracas, Venezuela, from 21 to 23 June 1989, on the occasion of the twenty-fifth anniversary of the creation of the Group. They reviewed the evolution of the world economy during the past 25 years, the achievements of the Group and the difficulties it has encountered in its effort to restructure international economic relations on a just and equitable basis. They assessed the transformations taking place in the world economy and international economic relations, analyzed opportunities and challenges that those changes pose for international economic co-operation for development, and charted out a strategy and course of action for meeting these challenges. They also provided guidance for intensifying co-operation under the Caracas Programme of Action, and for improving the organizational effectiveness of the Group.

I. LOOKING TO THE FUTURE: CALL FOR THE REVITALIZATION OF THE NORTH-SOUTH DIALOGUE The Ministers of the member countries of the Group of 77 issued the following communiqué: 1.  On the threshold of the twenty-first century, the member countries of the Group of 77 are faced with a world situation that, though highly complex and uncertain, provides a unique opportunity for giving a renewed thrust to international co-operation for development. 2.  The member countries of the Group are pursuing development objectives in a very unfavourable external environment. The least developed among them are facing special difficulties. Many of these countries are undergoing strenuous efforts of adjustment, which are exacting heavy social and political costs. 3.  Developing countries are pursuing wide-ranging policy reforms and are ready to integrate with the world much more freely than in the past. A more open and co-operative world economy is vital for the success of their effort. 4.  A promising process of reduction of global political tensions has been under way in the last few years. This provides a propitious setting for new initiatives. The improvement in the international political climate should be consolidated by extending it to all the regions of the world and through a search for a prompt and enduring solution to the major international economic and social problems, particularly those affecting developing countries. 5.  This should be in keeping with contemporary reality, in particular the full recognition of the compulsions of global interdependence. Today’s problems can be solved only by nations acting together, not by each of them going its own way. No country or group of countries, however powerful it may be, can isolate itself from the consequence of global social, economic and environmental problems or succeed, without detriment to its own interest, in shifting the burden of solving these problems to the weaker members of the international community. 6.  A multilateral, concerted and comprehensive approach is vital for finding and implementing truly effective and lasting solutions to contemporary problems; this cannot be achieved through partial, shortsighted and unilateral measures and mechanisms. Arbitrary unilateral actions can

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only have the effect of sapping confidence, undermining the multilateral system and process and adversely affecting the development prospects of developing countries. 7.  The member countries of the Group of 77 reaffirm their deep commitment to solving economic, social, cultural and humanitarian international problems through international co-operation, as envisaged in the Charter of the United Nations, thereby contributing to the achievement of international peace and security. 8.  They reaffirm their right and aspiration to share equitably in world growth and progress, particularly in the benefits of modern science and technology, with a view to improving the lot of their peoples. 9.  It is in times of crisis that international solidarity is most essential, even imperative. A serious and constructive dialogue between developed and developing countries is urgently called for if the international community is to avoid an irreversible breakdown of the international economic system. The Group of 77 reaffirms its readiness and commitment to such a dialogue. It urges the developed countries to reciprocate. In this regard, there is an urgent need to forge a consensus centred on growth and development. Such an understanding should lead to effective co-operative action in the interrelated areas of money, finance, trade, external debt and development. 10.  The Ministers hereby declare their resolve to take advantage of every possible opportunity in the coming years to promote systematic action and foster dialogue. The Caracas Declaration provides a useful and timely contribution to this endeavour, as part of the efforts which the Group will continue to make, particularly at the special session of the General Assembly devoted to international economic co-operation, to be held in April 1990, and in the elaboration of an international development strategy for the l990s.

II.  GROUP OF 77 AND THE PROMOTION OF INTERNATIONAL ECONOMIC CO-OPERATION FOR DEVELOPMENT 1.  The creation of the Group of 77, 25 years ago, was the result of the collective perception of developing countries that their problems are shared and common and originate in the inherently inequitable pattern of international economic relations. It represented their resolve to remedy this situation through international co-operation based on a mutuality of interests. In its objectives, the Group of 77 reflected the principles and purposes of the Charter of the United Nations and the conviction that maintaining international peace and security requires the resolution of international economic social and humanitarian problems. The Group therefore reaffirms the validity and supreme necessity of restructuring international economic relations on a just and equitable basis. It shall continue to place abiding faith in multilateral co-operation in the forums of the United Nations. 2.  Since its inception on the occasion of the first session of the United Nations Conference on Trade and Development in June 1964, the activities of the Group of 77 have vastly expanded. In these 25 years it has not only become a major actor in international economic relations, but also a prime initiator of ideas, concepts and proposals relating to development co-operation. Its increasing role is a clear affirmation of the belief of newly emerging countries that political freedom, to be effective and meaningful, must be translated into economic independence and must result in an improvement in the living standards of their people. Together with the Movement of Non-Aligned Countries, the Group has come to symbolize the underlying unity and solidarity of developing countries and represents their common world view on international economic issues. 3.  In the past 25 years, the Group of 77 has taken a number of initiatives to promote economic co-operation for the development of developing countries. It has had important achievements to its credit, the most notable of which was the consensus adoption of the Declaration and the

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Programme of Action on the Establishment of a New International Economic Order at the sixth Special Session of the General Assembly—an objective that remains valid and relevant. 4.  The constructive attitude exhibited by the Group of 77 did not receive an adequate response from the developed countries. This has, in many cases, resulted in a lack of implementation of agreements and commitments reached by consensus. The Group is convinced of the validity of its approach and shall continue with its efforts to promote dialogue and co-operation at every opportunity. 5.  The Group of 77 has attached fundamental importance to promoting economic co-operation among developing countries. Such co-operation is necessary to reduce the vulnerability of the developing countries to external factors and to maximize complementarily to accelerate the development of their economies. The Caracas Programme of Action adopted in 1981 is a major effort to translate these objectives into practical co-operative action. The Group renews its commitment to intensify co-operation among developing countries to work towards the attainment of collective self-reliance. 6.  The developing countries have always been conscious of their own responsibility in the development of their economies. The success of their efforts, however, requires supportive external conditions. They have therefore striven to improve the international economic environment in order to make it conducive to development. 7.  In spite of the constraints faced by them, they have made significant gains in their economic and social development. However, because of a marked deterioration in external conditions, there has been a major setback to their development efforts during the 1980s. Living conditions in many developing countries are lower than they were at the beginning of the decade. In many countries, economic and social infrastructure painfully built over the years has been seriously eroded, thus impairing their economic growth and development prospects. The burden of adjustment has been disproportionately high for developing countries and is exacting unacceptably high social and political costs. Absolute poverty has increased in many parts of the world. 8.  Official development assistance continues to stagnate at less than half of the internationally accepted targets. Foreign direct investment and commercial bank lending have fallen sharply. The developing countries are facing the problems of massive external debt, a decline in commodity prices to unprecedentedly low levels, deteriorating terms of trade and increasing protectionism in the markets of developed countries. All these have resulted in the paradoxical phenomenon of a reverse transfer of resources from developing to developed countries. Monetary conditions have demonstrated a tendency to instability and exchange rate misalignments. Major imbalances still persist, adding to the element of uncertainty. The international economic situation has continued to be characterized by systemic deficiencies and asymmetries, as well as structural imbalances. The developing countries have borne the brunt of the sluggish growth conditions, thereby further widening the economic, technological and scientific gap between developed and developing countries. 9.  During much of the 1980s, the North-South dialogue has remained muted. Multilateral economic co-operation was rendered ineffective at the time it was required most. Major industrialized countries have often not paid due regard to the far-reaching consequences of their policy postures for the rest of the world, in particular the developing countries. 10.  The least developed among the developing countries, facing formidable structural handicaps, experienced extreme deterioration in their overall socio-economic situation during the 1980s, in spite of significant domestic policy measures undertaken by them pursuant to the Substantial New Programme of Action for the 1980s adopted by the United Nations Conference on the Least Developed Countries. The effects of their adverse external economic climate—characterized, inter alia, by an inadequate flow of external assistance, a dramatic decline in the terms of trade of their products, a mounting debt to gross domestic product ratio

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have been further compounded by the failure to implement the recommendations of the Substantial New Programme of Action and its mid-term review. To this end, the Group of 77 underscores the significance of enhanced international efforts to reactivate the growth and development of the least developed countries, and emphasizes the importance of the Second United Nations Conference on the Least Developed Countries to be held in 1990 in adopting a substantial plan of action for the sustained development of the least developed countries for the l990s. 11.  The land-locked and island developing countries also continue to suffer from unique problems and inherent disadvantages that have a negative impact on their development. The Group stresses the importance of urgent action by the international community to address the particular problems and special needs of these countries. 12.  The current economic situation in Africa, characterized by the low level of economic growth, calls for a more effective implementation of commitments by developed countries between now and the end of 1990, in order to enable the development and economic growth objectives contained in the United Nations Programme of Action for African Economic Recovery and Development 1986-1990 to be carried out. To this effect, the orthodox structural adjustment programmed currently in force should be reviewed and replaced by other more viable alternatives that would take full account of the social, political and economic realities of Africa, restore growth, and facilitate its long-term development. 13.  The Group of 77 emphasizes the urgency of the full implementation of the Special Plan of Economic Co-operation for Central America, in support of the efforts being made under the Esquipulas-II Agreements to achieve peace and development in the region. 14.  The Group of 77 reiterates that colonialism, neo-colonialism, interference in the internal affairs of other States, apartheid, racism and all forms of racial discrimination, foreign aggression, occupation, domination, exploitation and destabilization constitute fundamental obstacles to the economic and social development of developing countries. The Group reaffirms its commitment to take effective measures individually and collectively to put an end to such practices. 15.  In southern Africa, the situation continues to be gravely affected by the policies of political and economic destabilization and acts of aggression pursued by the South African apartheid regime against front-line and other neighbouring States. The international community should exert greater pressure on the apartheid regime to abolish its abhorrent policies and immediately stop its acts of destabilization and aggression. The international community should at the same time increase assistance to these countries to enable them to implement their economic recovery and development programmes. Furthermore, the apartheid regime should also be compelled to act in accordance with Security Council resolution 435 (1978) to enable the people of Namibia to control their resources and destiny. 16.  The Palestinian people have continued to live within the hardships of the Israeli occupation, which has deprived them of their land and their natural and other resources and has led to a deterioration of their living conditions. The struggle of the Palestinian people to attain their political, social and economic freedom and their-right to development calls for action by the international community to give their utmost support to the heroic intifadah of the Palestinian people. Furthermore, the Arab people in the Syrian Golan and in parts of southern Lebanon are still under Israeli military occupation, which has deprived them of their land and other resources, thus impeding their economic and social development. The Group of 77 is eager to see the termination of this occupation. 17.  The Group of 77 calls upon the international community to adopt urgent and effective measures in order to eliminate the use of coercive measures, including blockades, embargoes and the freezing of assets, against developing countries, which have been on the rise and have taken new forms. 18.  The factors operating in the world economy in recent years have threatened to accentuate the polarization between North and South. It is not possible to sustain a world divided between the

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haves and the have-nots. No country can isolate or immunize itself from the negative impact of this inherently unstable situation. A  world economic structure based on self-perpetuating inequalities cannot last forever. It must be transformed through co-operative international action. 19. The international political climate has improved significantly. Encouraging progress has been made towards finding solutions to regional and global conflicts. There has been a ferment of economic and political ideas in many parts of the world. These provide a propitious setting for new initiatives. On the other hand, if emerging economic compulsions are not adequately accommodated, the resulting strains may very well undermine the current trends towards global peace and harmony. 20.  The current relaxation of tension is a window of opportunity for the international community. It is based on the realization of the impending threat to the survival of the human species posed by the nuclear arms race, degradation of the environment and such other non-military threats to security as hunger, squalor, disease, illiteracy, gross economic inequality both within and among nations, and natural and man-made disasters. The solution of such vast and complex problems calls for a concerted and coherent approach within a multilateral framework. 21.  International economic structure is becoming increasingly multi-polar. At the same time, there is a trend of integration of the economies of developed countries. Socialist countries are in the process of carrying out wide-ranging reforms aimed at a closer integration of their economies with the mainstream of the world economy. Many developing countries are also ready to integrate with the world economy more freely than in the past. Several developing countries are also endeavouring to strengthen their regional integration processes. Success of these integration strategies requires a much more open and co-operative world economy. At the same time it is imperative that unified and integrated markets of developed countries be outward looking and enhance rather than diminish the market access of developing countries. 22.  The modern technological revolution, particularly in information and communication technologies, has made the nations of the world more interdependent and world economic issues more interrelated than ever before. The implications of the macro-economic policies of major economic powers travel beyond their national boundaries and affect the economies of all countries, particularly developing countries. The co-ordination of these policies should be more broadly based and compatible with the growth and development needs of all countries, in particular the developing countries. Moreover, current economic and social problems have become so complex that it is beyond the capacity of a single nation or group of nations to solve them in isolation. It is, therefore, essential to ensure equitable and collective management of global interdependence with a view to achieving socially just, economically sound, sustained development. 23.  These tasks facing the international community are feasible only if they are undertaken in the context of an expanding and growing world economy. It is, therefore, necessary to forge a global consensus on growth and development and to work out a package of policies that can restore the world economy to vigorous growth conditions, and, in particular, assist in the eradication of absolute poverty. 24.  Growth in the world economy can be lasting and self-sustaining only if all its constituent parts grow in harmony. The existence, at the same time of underutilized capacity in developed countries and vast potential demand in developing countries calls for a bold initiative for substantial injection of purchasing power in the developing countries. This should be effected by a greatly enhanced flow of confessional financial resources and a substantial degree of debt reduction. These steps will not only accelerate development in developing countries but will also improve the prospects of the world economy. 25.  As a first step, the net transfer of resources from developing countries must be reversed to stop depriving the economies of developing countries of the investment and capital needed to

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develop and modernize their productive capacity and to address the legitimate social needs of their populations. 26.  The attainment as quickly as possible of the internationally agreed targets for official development assistance (ODA) adopted by the General Assembly two decades ago is of vital importance. The emergence and intensification of the debt crisis has shown the international financial system to be inadequate to transfer a sufficient volume of resources on adequate terms and conditions to developing countries, as well as that commercial lending cannot substitute for official and multilateral flows of resources. 27. Emphasizing that many developing countries are devoting a considerable share of their scarce resources to the development of their human resources, the Group stresses the need to continue to strengthen and expand the human resources base of developing countries. Their capacity to face the challenges of development and accelerated technological changes in order to achieve sustained development, calls for the support of the international community for the efforts of developing countries in this area, fully in accordance with their national priorities and plans. 28.  Multilateral financial co-operation for development should be oriented towards sustained and durable economic growth and development of all developing countries, in accordance with their objectives and priorities. Such co-operation should take into account their social needs as well as their long-term requirements for socio-economic transformation and development in addition to their short-term fiscal and financial management needs. 29.  As part of the efforts to increase the flows of resources to developing countries, industrialized countries should give incentives for increasing foreign investment in developing countries complementing domestic capital in accordance with the laws, objectives and priorities of the latter. 30.  The debt crisis has attained serious political and economic dimensions and has emerged as one of the main obstacles to growth and development in the developing countries. It needs to be resolved in the spirit of shared responsibility and on the basis of an integrated and comprehensive strategy. The Group of 77 calls for a substantial and timely reduction of the stock and service of external debt of developing countries, as well as a significant flow of new financial resources commensurate with their economic needs. For many low-income countries, the resumption of development requires a substantial cancellation of their debt burden. With a view to solving the severe debt crisis and preventing the aggravation and proliferation of the external indebtedness of developing countries, the international community should undertake measures in the interrelated areas of trade, money and finance. 31.  In this connection, the Group of 77 expressed its appreciation to the important initiative of His Highness the Amir of Kuwait during the forty-third session of the General Assembly with a view to solving the problem of debts of developing countries. 32.  A substantial increase in the export earnings of developing countries should be facilitated, inter alia, through consolidation and broadening and strict implementation of special and differential treatment, unrestricted access of their products to markets of developed countries, elimination of protectionism and of other measures taken by developed countries such as production and export subsidies, improved terms of trade and fostering of a stable and remunerative international commodity market and transfer of technology that would enable developing countries to expand and diversify their productive base. 33. The international trading system should be strengthened and improved, with a view to making it more responsive to the trade and development needs of developing countries. The Group of 77 attaches great importance to the Uruguay Round of trade negotiations as a means of strengthening the multilateral trading system. It hopes that the subjects and issues of particular

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interest to developing countries will be given full attention so that there is a balanced outcome resulting in enhanced export prospects for developing countries in consonance with their trade and development needs and aspirations. In this context, the Group of 77 welcomes the agreement recently reached in the Uruguay Round towards the liberalization of trade in agriculture. The Group of 77 urges on the developed countries to fully respect the agreement reached during the seventh session of UNCTAD that the observance of multilaterally agreed commitments with respect to trade in goods should not be made conditional on receiving concessions in other areas. 34.  Members of the Group of 77 will continue to make every possible effort to prevent the deterioration of the environment. The Group reaffirmed its commitment to the strengthening of international co-operation on protection of the environment, which required a global, multilateral effort within the forums of the United Nations to address the problems in all its aspects. The concept of sustainable development must necessarily include meeting the basic needs of peoples of developing countries, maintaining adequate levels of growth for attaining their social and economic objectives and improving the quality of life in a healthy, safe and clean environment. The concept of sustainable development should not be used as a pretext for additional conditionality in the policies of multilateral development and financial institutions. They emphasized that poverty and environmental degradation are closely interrelated and that environmental protection must therefore be viewed as an integral part of the development process and cannot be considered in isolation from it. Excessive pressures on natural resources on account of poverty and rising population have given rise to problems such as land degradation, deforestation and desertification, which need to be addressed with a sense of urgency along with efforts to deal with global environment problems. In this context, the Group emphasized the importance of supportive measures in favour of developing countries in any arrangement for concerted multilateral co-operation for the protection of the environment. There is an urgent need for the international community to set aside net additional financial resources for environmental co-operation, which should, inter alia, be used to give access to and permit the transfer of environmentally safe technologies. Alternative technologies should be made available to the developing countries on concessional terms. Since developed countries account for the bulk of the production and consumption of environmentally damaging substances, they should bear the main responsibility in the search for long-term remedies for global environment protection and should make the major contribution to international efforts to reduce consumption of such substances. The Group reiterates that measures taken at the international level should take full account of the existing asymmetry in global production and consumption patterns and should consciously seek to redress it. 35.  The Group of 77 welcomes Brazil’s offer to host the proposed second world conference on environment and development. 36.  The Group of 77 is of the view that significant opportunities have arisen for giving a new thrust to the development dialogue and breathing new life into the mechanisms and modalities of international economic co-operation. The Group is determined to avail itself of every opening for serious and meaningful dialogue in a spirit of mutual interest and human solidarity. In this context, it is determined to make its contribution to broadening international understanding and promoting international co-operation through the special session of the General Assembly and the elaboration of an international development strategy for the l990s, the forthcoming eighth session of UNCTAD and such other political level meetings, including summit gatherings of developed and developing countries, as may be organized. 37.  At the special session of the General Assembly, the Group will endeavour to reach agreement with the developed countries on the lines of action for resolving in an integrated way some of the pressing problems of its member countries, including money, finance, resource flows, trade, commodities, external debt and development, taking due account of the existing asymmetry and incorporating in the deliberations the special needs and circumstances of the developing

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countries. The objective will be at least to reach a consensus on the nature of the problems, on the approach required to solve them, and on the principles and modalities to be applied. This will indeed be the earliest possible opportunity of resuming the North-South dialogue on a comprehensive basis, in all seriousness and with a sense of purpose. The process of the elaboration of an international development strategy for the 1990s should enable these objectives to be pursued in a long-term perspective. At the same time, it should provide a coherent framework for international co-operation and an opportunity for Governments to undertake specific commitments.

III. ECONOMIC AND TECHNICAL CO-OPERATION AMONG DEVELOPING COUNTRIES 1.  Since its creation in 1964, the Group of 77 has sought to promote economic co-operation among the developing countries. The Ministers reaffirmed their commitment to strengthening economic co-operation among developing countries to work towards the attainment of collective self-reliance. 2.  The Caracas Programme of Action on economic co-operation among developing countries, adopted in May 1981, was an expression of the aspirations of developing countries and a reflection of their desire to promote such co-operation as a complement of North-South co-operation and as an integral part of the collective action of the Group aimed at the restructuring of international economic relations and at the establishment of the new international economic order. It marked the beginning of a new phase of such co-operation, providing a blueprint of measures in eight sectors with a well-defined mechanism for implementation and follow-up. The activities of the Programme have suffered as a consequence of the financial and economic structural obstacles faced by developing countries and of imbalances affecting international economic relations. Despite the many difficulties encountered in its implementation, the Programme remains an essential tool for the promotion of economic co-operation among developing countries. The Ministers stressed the need to intensify co-operation there under. 3.  The Ministers noted that the present international situation posed difficulties and opportunities to the promotion of South-South co-operation. On the one hand, programmes of economic co-operation among developing countries tended to be a casualty of the worsening economic situation of developing countries, which constrained their means of payment and forced them to focus on immediate needs. On the other hand, the increased protectionism of the North and the lack of repercussions of the economic dynamism in the North on developing countries, along with the emergence of new opportunities for complementarities such as the ones afforded by surplus manufacturing and investment capabilities, provided a renewed relevance to economic co-operation among developing countries. 4.  The Ministers expressed their satisfaction that the agreement on a Global System of Trade Preferences among Developing Countries had come into force in April 1989. They appealed to those signatories of the agreement who had not yet ratified it to do so at the earliest opportunity. They also underlined the need to start the second round of negotiations under the system as soon as possible. These negotiations could consider the question of providing some financial underpinning for trade conducted under the Global System. 5.  The Ministers emphasized the need to give the necessary priority to intensifying co-operation in the sector of science and technology, including the transfer of technology, which is one of the most promising areas where economic co-operation among developing countries should be strengthened. They welcomed the fact that the Center for Science and Technology of the Non-Aligned and other Developing Countries would become operational shortly. They expressed the hope that the Center would become an important and dynamic instrument to promote scientific and technological development of developing countries.

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6.  The Ministers also emphasized the necessity to give high priority to the sectors of trade and technical co-operation among developing countries in order to promote a much more effective utilization of the technical capacities of the developing countries. The Ministers welcomed the work carried out by the International Center for Public Enterprises of Developing Countries (ICPE), particularly in providing technical assistance to enterprises of developing countries. 7.  The Ministers took the view that activities in economic co-operation among developing countries should be selected after a clear and in-depth assessment of the economic benefits that they would yield to the participating countries, and that emphasis should be placed on those sectors and activities that would produce concrete and tangible results, without neglecting the efforts that need to be undertaken towards the full implementation of the recommendations regarding all the sectors of the Caracas Programme of Action. 8. The Ministers agreed that increased attention should be given to all levels of economic co-operation among developing countries: bilateral, subregional, regional and global. 9.  The Ministers welcomed the work being carried out by non-governmental organizations in developing countries in support of the Caracas Programme of Action. 10.  The Ministers took note of the positive results of the meetings of the representatives of chambers of commerce and industry of member countries of the Group of 77 and the regional meetings of the chambers, and encouraged them to further develop concrete modalities to enhance their mutual co-operation. The Ministers also welcomed the valuable work carried out by the Association of State Trading Organizations of member countries of the Group of 77. 11.  The Ministers recognized the work undertaken by the South Commission and expressed their expectation that it will provide a valuable contribution to increased awareness of the international community, in particular in terms of international co-operation requirements in support of economic co-operation among developing countries. 12.  The Ministers acknowledged with satisfaction the continuous support of UNCTAD, the United Nations Industrial Development Organization, and the United Nations Development Programme and its special unit on technical co-operation among developing countries towards the implementation of the Caracas Programme of Action as well as the Buenos Aires Programme of Action for technical co-operation among developing countries and to respond positively to the requests presented by the different chapters of the Group of 77. The Ministers also called upon the Group’s chapters to actively seek such support from the organizations concerned. 13.  The Ministers expressed their support for the work of the International Fund for Agricultural Development and stressed that, on the basis of its present structure, ways and means should be agreed upon to secure a sound and largely self-sustaining financial base for the Fund, thus ensuring the effective pursuit of its mandate long into the future. 14.  The Ministers reaffirmed the validity of the mandate given by the twelfth ministerial meeting to the Intergovernmental Follow-up and Co-ordination Committee to adopt concrete recommendations to ensure the implementation of the Caracas Programme of Action. They requested that the Intergovernmental Committee meet at Kuala Lumpur, Malaysia, from 31 July to 5 August 1989, to submit to the thirteenth annual meeting of the Ministers of Foreign Affairs of the Group of 77 a report that should include specific recommendations on the following: (a)  Additional steps that need to be taken to enhance the implementation of the Caracas Programme of Action; (b)  The new role and function of the Intergovernmental Committee in the light of the decision adopted by the eleventh annual meeting of the Ministers for Foreign Affairs to biennialize the Committee’s meetings:

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(c)  Increased participation in economic co-operation among developing countries of enterprises, from the public and private sectors as well as research and training institutes (d)  Concrete measures for enhancing the efficiency of the supporting mechanisms of the Caracas Programme of Action, including a review, assessment and proposals for updating the priority sectors: (e) Concrete suggestions for the harmonization and integration wherever possible of the respective sectors of the Caracas Programme of Action and the Action Programme for Economic Co-operation of the Non-Aligned Movement; (f)  Utilization of the Perez-Guerrero Trust Fund and appropriate steps to be taken so as to realize the full benefits for which the Fund was set up, including the review of the guidelines and criteria for utilizing the Fund as well as adjustments in the appointment dates of the members of the Committee of Experts, designated for a two-year period, so that renewal of half of the members takes place every year in order to strike a proper balance between continuity and rotation. 15. In order for the Intergovernmental Committee to fulfil its mandate, the Ministers urged member countries to ensure participation of competent senior officials of the respective Ministry in charge of economic co-operation among developing countries and heads of national focal points, as envisaged in the Programme of Action. 16.  The Ministers were of the view that there is a need to strengthen co-operation among developing countries in sectoral areas identified in the Caracas Programme of Action, as well as other areas related to development. Such efforts could be pursued in the contest of the harmonization of efforts between the mutual co-operation programme of the Movement of Non-Aligned Countries and the Group of 77 in the light of the review outlined in paragraph 14 (d) above. 17.  The Ministers agreed on the following measures regarding the Perez-Guerrero Trust Fund, with a view to ensuring its full utilization: (a)  Regional groups of the Group of 77 in New York should designate urgently the new members of the Committee of Experts of the Perez-Guerrero Trust Fund; (b)  The core of assistants of the Chairman of the Group of 77 will provide continuing support for the work of the Committee, in order to ensure a permanent operating and follow-up capability in identifying, selecting and recommending projects as well as in assisting the Chairman in monitoring the implementation of the approved projects; (c)  The Chairman of the Group of 77 in New York should approach directly, in consultation with concerned Governments, organizations and institutions in developing countries capable of preparing projects eligible for financing under the Perez-Guerrero Trust Fund. Such an approach must go beyond sending invitations to submit project proposals. In carrying out this task, which should take place under the co-ordination of appropriate authorities and designated focal points of developing countries, the participation of the members of the Committee of Experts should be sought in order to benefit from their experience and expertise; (d)  The Chairman of the Group of 77 should request UNDP to provide financial support for the participation of the experts to the Fund’s Committee meetings. Until this project becomes fully operational, an interim financial arrangement out of the Trust Fund resources will be set up in order to ensure the presence of experts at the Fund’s meetings, up to a maximum of two meetings a year. The state of implementation of this paragraph should be reviewed by the meeting of the Intergovernmental Follow-up and Co-ordination Committee, at which appropriate decisions would be taken.

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IV. ORGANIZATIONAL EFFECTIVENESS OF THE GROUP OF 77 1. The annual meeting of the Ministers for Foreign Affairs of the Group of 77, held at the Headquarters of the United Nations in New York prior to the beginning of the substantive work of the regular session of the General Assembly, shall have a duration of one day and will be in the form of an exchange of views on major priority issues. Such an exchange of views should be well prepared, with a draft agenda agreed upon in advance. 2.  This Ministerial meeting shall be preceded by an annual meeting of the Group of 77, of a duration of two days, with the participation of the chairpersons of the various chapters of the Group, who shall introduce a report on their activities during the past year and make concrete recommendations for the consideration of the Ministers. Such a meeting should result in the adoption of a declaration on the relevant topics or agenda items before the General Assembly 3.  The Ministers of the Group of 77 shall, as necessary, continue to hold preparatory meetings prior to important international conferences. 4.  After each session of the General Assembly and of other relevant organs, organizations and bodies of the United Nations system, the Group of 77, in the various chapters shall hold short meetings in order to assess the results of such sessions, in the light of the goals and objectives assigned to the Group by its States members. 5.  At the beginning of each calendar year, each chapter of the Group of 77 should consider, as appropriate, with a view to harmonizing procedures and strengthening co-ordination among them, electing one chairperson and two vice-chairpersons, acting under the exclusive authority of the former, for a one-year mandate, in accordance with its regional distribution. 6.  Taking into account the increasing number of meetings within the United Nations system and their technical character, the Group of 77, in each chapter, shall designate co-ordinators on main themes or issues requiring experience and expertise. The co-ordinators shall assist the chairperson in the elaboration of draft positions, proposals or other documents, and report regularly to the Group of 77 for its consideration, through the existing working structure. 7.  Meetings of the Group of 77 at the ambassadorial level, as at the delegate/expert level, should continue to be called more often, on all issues requiring their respective attention and decision. 8.  In order to strengthen co-ordination and communication, and to ensure consistency between the various chapters of the Group of 77, the respective chairperson shall communicate and co-ordinate the positions of the Group on all relevant issues and activities. The services and facilities available at the Office of the Chairperson in New York should be fully utilized by all chapters.

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6.  Meeting of the Ministers for Foreign Affairs of the Member States of the Group of 77 on the occasion of the Thirtieth anniversary of the establishment of the Group of 77, New York, 24 June 1994 a.  Ministerial Declaration We, the Ministers of Foreign Affairs of the Member States of the Group of 77, meeting in New York on June 24, 1994, on the occasion of the thirtieth anniversary of the founding of the Group of 77: Extending on this auspicious occasion, a warm welcome to the Republic of South Africa as the newest member of the Group of 77 and looking forward to important contributions that a united, democratic and non-racial South Africa will make towards the achievement of our common goals; Having reviewed the progress achieved by the Group of 77 and the difficulties it has encountered in the past thirty years; assessed the transformations taking place in the world economy and international economic relations; analysed the implications, as well as opportunities and challenges that these changes hold for developing countries; Strongly reaffirming the provisions contained in the Joint Declaration adopted on 15 June 1964 by the Seventy-seven developing countries, on the occasion of the first session of UNCTAD, as well as the Charter of Algiers adopted at the First Ministerial Meeting of the Group of 77 on 25 October 1967, solemnly declare the following: 1.  The founding of the Group of 77, thirty years ago, was the result of the collective perception by the developing countries that their problems are shared and common, and of the need for joint action in accordance with the principles and objectives of the U.N. Charter, in the face of the inequitable pattern of international economic relations. The evolution of the Group of 77 is intimately linked with the United Nations system and a clear manifestation of the importance it attaches to multilateral cooperation. 2.  In these thirty years the Group of 77 has not only become a major actor in international economic relations, but also a prime initiator of ideas, concepts and initiatives relating to development and international cooperation. 3.  The expectations for greater global security, and a just, equitable and non-discriminatory international economic order have not been realized. The world today is beset by acute economic and social problems, many of them structural in nature, requiring urgent redress by the international community. We regret that the interdependent world economy continues to be marked by uncertainty, imbalances and recession, as well as the continuing overall marginalization of developing countries. We also note with concern the tendency on the part of developed countries to take decisions that affect the world economy outside the multilateral framework of the United Nations system, without giving full consideration to the interests of developing countries. The need to democratize international relations is more pressing than ever. 4.  Over the past three decades, insufficient financial flows, ODA levels remaining well below the 0.7 per cent of GNP targets, lack of foreign investment, inequities of the international trading system, depressed commodity prices, and the debt crisis, have attained serious political and economic dimensions and have emerged as the main obstacles to growth and development in the developing countries. Closely interlinked with these problems has been the aggravation of widespread poverty, made even more onerous by structural adjustment programmes. Most developing nations are engaged in courageous policies to restructure their economies, despite an unfavourable external environment. We therefore call for intensification of efforts by the international community to address these issues and take concrete measures to help solve them.

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5.  We express the hope that the commitments assumed through the conclusion of the Uruguay Round in Marrakech, Morocco on 15 April 1994, although not reflecting the totality of the aspirations of developing countries, will help constitute an open, stable, predictable, equitable and transparent multilateral trading system. In this context, we reiterate the need to abolish unilateral and arbitrary commercial practices and measures, noting with concern the persistence of certain trends aimed at developing and encouraging new forms of protectionism and distortions, in particular the attempt to introduce social and environmental clauses to the international trade regime. We also stress the need for steps to be taken to provide adequate compensation to those developing countries adversely affected by the new multilateral trade regime. 6.  We reiterate our profound concern at the persistent critical economic situation in Africa and the deteriorating economic conditions in the least developed countries, particularly in view of inadequate international support. 7. We call for full and effective participation of the developing countries in the process of decision-making and in the resolution of world economic problems through strengthening multilateralism and implementing an effective mechanism of multilateral macroeconomic policy coordination on a global basis aimed at promoting equitable growth in the world economy. We strongly believe that sustained economic growth and development, particularly of developing countries, constitute the main objective, which must be pursued as a priority by the international community. 8.  We attach high priority to the revitalization and strengthening of the role of the United Nations in promoting international cooperation for economic and social development. We strongly believe that the United Nations should be encouraged to develop its full potential in the area of international economic cooperation and should be endowed with the requisite resources to contribute to solving the serious economic and social problems facing the developing countries in their efforts to achieve sustained economic growth and development. In this regard, we also emphasize the need to reinforce even further the importance and relevance of UNCTAD and to revitalize its activities and functions in the field of international cooperation conducive to development. 9.  We call for the full implementation of the commitments to international cooperation as contained in General Assembly resolutions, especially the Declaration on International Economic Cooperation, in particular the Revitalization of Economic Growth and Development of the Developing Countries adopted at the Eighteenth Special Session, the International Development Strategy for the Fourth United Nations Development Decade, the Declaration on the Right to Development, the United Nations New Agenda for the Development of Africa in the 1990s, the Programme of Action for the Least Developed Countries for the 1990s, the Cartagena Commitment adopted by UNCTAD VIII, the Rio Declaration on Environment and Development and Agenda 21 adopted by the United Nations Conference on Environment and Development, and other UNCED-related agreements and follow-up conferences. We welcome the United Nations Convention on the Law of the Sea which enters into force on 16 November 1994 and hope that the forthcoming adoption of the resolution relating to the implementation of Part XI of the Convention during the resumed session of the forty-eighth General Assembly will ensure early realization of the universal participation in the Convention. 10.  We attach the highest priority to the initiative for an Agenda for Development as an instrument to promote an action-oriented consensus for economic growth and development. We reaffirm the critical need for an integrated approach to development as well as for coordinated and effective international cooperation. Moreover, we stress that it is the responsibility of each country to define its national goals, objectives and priorities in its development process, and therefore, actions aimed at introducing new conditionalities in redefining the basis of international

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cooperation should be avoided. The international community should support and supplement the national efforts of developing countries. 11.  We reaffirm our strong commitment to strengthen South-South cooperation as an integral part of the strategy of the developing countries to achieve economic growth. We call upon the international community to provide effective support to programmes on economic and technical cooperation among developing countries. A number of initiatives and projects have been launched within the framework of South-South Cooperation, the full potential of which remains far from being realized. We reiterate our conviction that South-South cooperation and individual and collective self-reliance of our countries are essential means for enhancing our negotiating power and sustaining our solidarity and cohesion. The Caracas Programme of Action on Economic Cooperation among Developing Countries remains an essential framework for our common efforts and adequate steps should be taken for its implementation. We welcome the momentum gained in recent years and progress achieved by the regional and sub-regional economic cooperation and integration efforts undertaken by developing countries and we commit ourselves to a reinvigorated effort of South-South cooperation at the interregional level. 12.  We express our determination and commitment to bring the action of the Group of 77 to a new level of commitment, to strengthen its institutional effectiveness with a view to consolidating common positions of our Group on all the issues and activities of the United Nations system related to the goals and objectives stated above. To this end: (a)  Each Chapter will have a liaison office to be funded by voluntary contributions from its members and other modalities approved by each Chapter; (b)  The Chairman for each Chapter will serve for one year; (c)  Two meetings of the Chapters will be held each year: one at the beginning of the year to establish the priority issues for coordination and a second one to assess the implementation of established objectives for the period. A  Chapter meeting may be called at the Ministerial level, as necessary. 13.  We welcome the establishment of the Joint Coordinating Committee between the Group of 77 and the Non-Aligned Movement which will contribute to enhanced coordination and complementarity between the respective programmes of our Group and the Non-Aligned Movement on South-South and North-South cooperation. 14.  In the light of the unsatisfactory state of the global economy, we reaffirm the urgent need for a constructive dialogue between the North and the South as an instrument for the strengthening of international cooperation and the promotion of economic growth and development of developing countries. We wish to stress that such a dialogue should be based on the economic imperative of common interests and benefits, and reflect genuine interdependence. 15.  We reaffirm our commitment to continue to contribute to strengthening the role of the United Nations in the promotion of peace and development. Indeed, development is a prerequisite for lasting peace. The realization of the right to development as a basic human right should be given utmost priority. 16.  We hope that the forthcoming Summits and Conferences such as the International Conference on Population and Development, the World Summit for Social Development, the Fourth World Conference on Women and the United Nations Conference on Human Settlements (Habitat II) to which the we attach great priority, will contribute to a greater understanding of the development problems of the developing countries and help evolve a global consensus and mobilize adequate resources to address them effectively. 17.  We hereby declare our firm resolve to build upon the above goals and objectives of the Group of 77 for the year 2000 and beyond and reaffirm our determination to pursue our actions towards the achievement of the universal right to development of all nations and peoples. In issuing this

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declaration on behalf of one hundred thirty developing nations and China, we appeal to the leaders of the G-7 meeting in Italy next July, to contribute to address the above challenges urgently and with boldness.

b.  Ministerial Statement on ‘An Agenda for Development’ 1.  The initiative for an Agenda for Development is a timely endeavour. It provides the opportunity to embark on a process of constructive dialogue and political mobilization with a view to creating a true and equitable partnership on development issues, which the Group of 77 considers of crucial importance, particularly in response to shifts of emphasis and priority away from development within the United Nations. There is a need to adhere to the priorities of the U.N. system in favour of development initiatives and needs. 2.  The Group of 77 is committed to multilateralism. The United Nations, because of its universal character and democratic principles, has a crucial role to play in international cooperation and the promotion of economic growth and development. This should be at the heart of an Agenda for Development. 3.  An Agenda for Development should have a clear substantive content and specific action. It should, in particular seek to promote effective implementation of the existing commitments and agreements in the area of international economic and social development. It should seek to reverse the prevailing fragmented approach to development. It should take into account the priorities of the developing countries, and the need to ensure a supportive external environment. It should recognize that economic growth and development in the developing countries are of mutual interest to developing and developed countries for the strengthening of the global economy. Indeed, growth in developing and developed countries have a positive mutual co-relation. Also the inherent mutuality of benefit and common concern would mean that developed countries would need the cooperation of developing countries to deal with transborder issues of common interest. An Agenda for Development should be based on the fundamental right to development and the recognition that development is also an indispensable prerequisite for peace. 4.  The gap between developed and developing countries continues to widen. It reflects the marginalization of developing countries in the control over the main determinants of international trade, money, finance, technology, information and communication flows. An effective partnership between developed and developing countries should address these fundamental imbalances. This requires, on the part of developed countries, a new attitude and greater responsiveness to the needs of the developing countries. 5.  Economic growth is the mainspring of development. An acceleration of the rate of economic growth is essential for expanding the resource base of developing countries and hence for economic, technical and social transformation. It generates the required financial, physical, human and technological resources, which are the pillars of development. 6.  External factors are an indispensable complement in the strengthening of the steps taken in the internal sphere. The external imperatives of economic growth are many and can be critical in determining success or failure of domestic efforts of developing countries. However, the debate on international cooperation for development should not dictate prescriptions on macro-economic policy making for developing countries and on areas exclusive to domestic policies. Development must take into account country specificities as is evident from the varied examples of economic success stories and failures. 7.  Essentially, development is about the improvement of the quality of life, eradication of hunger, disease and illiteracy and securing employment for all. Its primary objective must be to eradicate poverty and satisfy the basic needs of all people, including nutrition, health and housing. Education and training which play a critical role in the development of human resources should

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be pursued in such a way that everyone is given an equal opportunity to participate actively and productively in the development process. The improvement of the role and status of women is also essential to development. It is recognized that development is essentially a dynamic process, that it is and should be people centred. In this connection, the negative effects of structural adjustment policies that divert resources away from social priorities, including health and education should be firmly addressed. An Agenda for Development must fully address itself to these challenges and should also propose practical initiatives for the eradication of poverty in the formulation and implementation of structural adjustment programmes. 8.  An Agenda for Development should clearly specify the role of the United Nations. It should also analyse the relationship of the United Nations with the specialized agencies, and the Bretton Woods institutions which are an integral part of the United Nations system, and clearly identify the division of labour with regard to policies and activities, to enhance effective action in the economic, social and related fields within the U.N. system and the regional commissions, taking into account the need for effective coordination among them. 9.  An Agenda for Development should also focus on action-oriented recommendations to deal with the critical economic situation of Africa, which requires a greater degree of commitment and implementation of concrete measures, and take into account the specific needs and requirements of the Least Developed Countries. It should also address the specific constraints of land-locked developing countries and Small Island developing states. 10. Other critical areas of action on which an Agenda for Development should focus are, inter alia:

Trade liberalization 11.  An Agenda for Development should forge an international consensus on the mutual benefits of global trade liberalization as an effective means for international cooperation for development and to give impetus to renewed efforts already undertaken over the last decade to build upon the advocacy of trade liberalisation and avoidance of protectionist policies. There should, above all, be consistency and coherence between proclaimed adherence to trade liberalisation and implementation of specific trade policies. 12.  The recent conclusion of the Multilateral Trade Negotiations of the Uruguay Round dispelled the possibilities of fragmentation of the international trading system. Our expectation is that the new agreements will bring about a halt and ultimate abolition of unfair trade practices in keeping with multilateral trade agreements, including trade restrictions on products of the developing countries. The transition from GATT to the World Trade Organization should take place smoothly. The WTO’s dispute settlement mechanism should prevent and/or redress unilateral actions of a protectionist nature. The continued attempts to introduce social and environmental clauses in the international trade regime would have a negative impact on economic growth and development in developing countries; one the one hand, they represent protectionism in disguise, and on the other, they would transfer an unbearable social burden on developing countries. There should be a built-in mechanism to provide adequate compensation to those developing countries adversely affected by the new multilateral trade regime.

Financial Flows 13.  An Agenda for Development should focus on a wide range of issues, which directly or indirectly affect not only the flows of foreign direct investment but also other forms of investment, loans and official development assistance. The international community faces a crisis of ODA characterized by a stagnation, and even reduction, in aid budgets, a trend that is contrary to the agreed target of 0.7 per cent of GNP. Even specific commitments undertaken such as those at Rio  have not been forthcoming. The Agenda for Development should seek to forge a

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new international consensus on the question of financial flows, taking into consideration, the effectiveness of and increase in the volume of resources for ODA and the promotion of international compliance with internationally agreed commitments for new and additional resources for development cooperation. The creation of a sound environment for international financial flows should be shared goals of the international community. 14.  The debt burden continues to remain a major constraint on development efforts of many developing countries including the least developed countries, which continue to experience severe debt service difficulties. More debt relief should be provided, including cancellation of debts, debt reduction, and more generally, innovative schemes. An effective international debt strategy is yet to be devised and implemented. 15.  More specifically what is required is the adoption of policies that would ensure (a) adequate flow of concessional finance to developing countries particularly low income ones; (b)  stimulation of other capital flows, including foreign direct investment; (c) effective reduction of the debt burden of developing countries and reversal of net negative flow of resources (d) SDR creation and allocation for development.

Role of Science and Technology in Development 16.  An Agenda for Development must consider the fundamental role played by science and technology in economic development. The Agenda should identify ways and means: a) to enhance the mechanisms within the United Nations to address science and technology issues; b) to include the consideration of the respective roles of the State and the private sector in promoting scientific development as a basis for technological development; c) to improve the transfer of technology, including environmentally sound technologies, on preferential and concessional terms; d) to promote long-term technological cooperation and partnership between holders of technologies and potential users; e) to improve the endogenous capacities of developing countries to develop, assess, encourage and utilize such technologies through, inter alia, research and development, education and training; f) to enhance access of small and medium sized enterprises to technology; g) to facilitate for developing countries effective access and transfer of technology that is publicly owned or under public domain.

Economic and Technical Cooperation among Developing Countries 17.  An Agenda for Development should seek to secure adequate support from the developed countries and from the U.N.  system to activities and programmes on Economic Cooperation among Developing Countries (ECDC) and Technical Cooperation among Developing Countries (TCDC).

Regional Economic Integration 18.  An Agenda for Development should address the importance of regional economic integration. Regional integration should be regarded as complementary to multilateralism. The concept of ‘open regional integration’ would strengthen reciprocal ties between growing economic interdependence at the regional level and the building up of a more open and transparent international economy. The process towards regional integration must ensure that its does not lead to new protectionist barriers or exclusionary trade policies. 19.  The above elements constitute an initial contribution by the Group of 77 to an Agenda for Development, which will be submitted to the Economic and Social Council. They are meant to serve as guidelines to the Secretary-General who should be encouraged to present, on the basis of the mandate contained in General Assembly resolution 48/166, a revised report on an Agenda for Development, which should contain action-oriented recommendations and concrete ­proposals for consideration by the General Assembly at its forty-ninth session.

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7.  Meeting of the Ministers for Foreign Affairs of the Member States of the Group of 77 on the occasion of the Fortieth anniversary of the establishment of the Group of 77, São Paulo, Brazil, 11–12 June 2004 a.  Ministerial Declaration can be found in Chapter II, 10(a) of this Volume 8.  Special Ministerial Meeting of the Group of 77 on the United Nations Reform, Putrajaya, Malaysia, 29 May 2006 a.  Ministerial Statement We, the Ministers of Foreign Affairs of the Group of 77 and China meeting in Putrajaya, Malaysia, on 29 May 2006, having reviewed developments in the follow up to the 2005 World Summit Outcome in the areas of United Nations System Wide Coherence, Management and Secretariat Reform, Mandate Review and on providing predictable financial resources to the United Nations, state the following: 1.  We reaffirm our determination to further strengthen the role, capacity, effectiveness and efficiency of the United Nations in the field of development, and thus improve its performance, in order to realize the full potential of the organization, in accordance with the purposes and principles of the Charter of the United Nations, and to respond more effectively to the needs of Member States and in particular to the new global challenges facing the United Nations in the twenty-first century and in this regard we emphasize the need for creating an enabling environment for development and enhance global political will to assist developing countries to achieve their development goals and that to achieve the internationally agreed development goals including the Millennium Development Goals we must succeed in mainstreaming development as the central pillar of the United Nations agenda. 2.  We stress that the outcomes of all major United Nations summits and conferences have laid the foundations to promote development, commitments have been made, including on systemic issues, all that is now needed is the full implementation of all commitments made at all the major United Nations summits and conferences in the economic, social and related fields. 3.  We strongly believe that the United Nations should be provided with the needed support to develop its full potential in the field of international development cooperation. To that end, the realization of the right to development should be given utmost priority by the United Nations. We emphasize that the full implementation of all commitments made at the major United Nations conferences and summits in the economic, social and related fields, should be integrated and equitably mainstreamed into the work and activities of the United Nations, including the right to development, the environmental and social corporate responsibility and accountability and policy space. The United Nations system should examine ways to take account of these agreed principles in its process of decision-making. 4.  We emphasize that given its universality and legitimacy, the United Nations is the apex of multilateralism. Nothing should be done to undermine its pluralism and its diversity. 5. We attach utmost importance to the full implementation of development commitments, including those relating to the strengthening of the Economic and Social Council, made in the

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outcomes of the major United Nations conferences and summits in the economic, social and related fields, including the World Summit Outcome. We are concerned at the slow progress in the process of consultations initiated to implement the 2005 World Summit Outcome decisions on development and call upon the developed countries to demonstrate political will so as to reach substantive agreements on development follow-up and strengthening of the Economic and Social Council.

System Wide Coherence 6.  We emphasize that the System Wide Coherence process must be aimed at strengthening multilateralism and promoting equity and development including development cooperation in the United Nations. This should be achieved through an enhanced global partnership for development, including more effective assistance to developing countries. 7.  We emphasize that there is a need to establish an effective and comprehensive accountability and monitoring mechanism to track the implementation by developed countries of commitments undertaken in the major United Nations conferences and summits in the economic, social and related fields and various inter-governmental bodies, to support national development strategies of developing countries. 8.  We further emphasize that the United Nations is the premier international organisation and system, addressing sustainable development in its three components: namely economic development, social development and environment protection. In that regard, its role should be strengthened so as to cover the normative, analytical, policy and operational aspects of development, bearing in mind that the normative work of the organization is the outcome of an inter-governmental decision making process and is addressed to the full membership of the United Nations. 9.  We stress that the fundamental characteristics of the operational activities for development of the United Nations system must be, inter alia, their universal, voluntary and grant nature, their neutrality and their multilateralism, as well as their ability to respond to the development needs of recipient countries in a flexible manner. 10.  We emphasize that the United Nations General Assembly resolution entitled ‘Triennial comprehensive review of operational activities for development of the United Nations system’, A/RES/59/250 constitutes the policy framework agreed at the inter-governmental level for the operational activities of the United Nations system and that the System Wide Coherence process must take into account these periodic reviews, at the inter-governmental level. 11.  We note with concern that the multilateral development system lacks good global governance. There is a need to substantially improve coherence in mandates and roles, accountability and representation. Therefore, we support an analysis of the entire multilateral architecture. The System Wide Coherence process should focus on areas where better coordination and coherence is needed. Total or immediate restructuring of the United Nations activities or architecture should not constitute a goal in itself. Efficiency and effectiveness is not always guaranteed by the collapse or merging of institutions. The research and studies that will be undertaken by experts on the System Wide Coherence process should focus on the major reasons hindering the achievement of the internationally agreed development goals including the MDG’s. This process should show due regard for the political sensitivities of mandates and should not be a pretext to eliminate political mandates. 12.  We stress that the System Wide Coherence process must take into account national conditions, and ensuring respect for national ownership, strategies and sovereignty. Greater policy space must be given to the developing countries to enable national development strategies to be comprehensively nationally owned. The United Nations work in development must be fully aligned and complementary to nationally owned development goals. The concept of coherence has to be considered in terms of the policy and institutional framework of the United Nations and

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should take into account the different approaches which currently exist in the pursuit of national development strategies. 13.  We underscore that the United Nations should continue to have a holistic and comprehensive approach towards development. The System Wide Coherence process should also address areas such as trade, finance and macro-economic policy. Therefore the System Wide Coherence process should not limit the United Nations role into niche issues. 14.  We emphasize that one of the fundamental reforms required would be for the United Nations, which is the most representative global organization, to mobilize the highest political commitment, and to provide policy directions and guidance to the Bretton Woods Institutions, the World Trade Organization and other relevant organizations and institutions that have an impact in the development of many countries. Key to promoting good governance at the international level would be the active voice and effective participation by developing countries in the international decision-making processes, in particular the Bretton Woods Institutions, which is central to promoting the legitimacy, relevance and effectiveness of the international financial system and international financial institutions. 15.  We stress that the System Wide Coherence process should enhance inter-governmental oversight and coordination, including through the strengthening of the role of the Economic and Social Council in that regard. 16.  We underscore that any changes that might need to be introduced to the current system, both at the country level, or at the level of the headquarters, should not lead to additional financial burden to developing countries or to unnecessary administrative costs or unwieldy management structures. Such changes should not disrupt on-going development plans and activities. The one-size fits all approach should not be applied. Diversity, different levels of development, cultural differences as well as regional and sub-regional specificities require implementation changes at the country level based on a case by case basis, taking into account national priorities and strategies and with the consent of the government concerned. 17.  We stress that the United Nations system both at the headquarters and at the country level, with regards to the delivery of mandated activities and efficient management should be fully accountable to the Member States. The oversight role of Member States over the mandated activities of different governing bodies of the funds and programmes of the United Nations should be strengthened further. 18.  We stress that the objective to achieve System Wide Coherence should not be a cost cutting exercise. Reductions in administrative expenses should be redirected to programmes in each country. The principles of cost recovery should be harmonized, and its proceeds retained and spent on development programmes. 19.  We underscore that financial resources should have the characteristics of predictability, sufficiency, flexibility and sustainability. For the last three decades, in general, unpredictability, insufficiency and inflexibility and unsustainability of financial resources have characterized the United Nations funds, programmes and agencies at the country level, thus crippling their ability to implement programmes successfully. The United Nations should avoid shifting resources from development activities to other activities which are donor-driven and not in line with the priorities of developing countries. We stress that core resources because of their untied nature should continue to be the bedrock of the operational activities and these resources should not be diverted away from core issues of development to donor driven priorities. The challenge of the gap between development mandates and resources needs to be given priority. 20.  We reaffirm that the resident coordinator system, within the framework of national ownership, has a key role to play in the effective and efficient functioning of the United Nations system at the country level, including in the formulation of the common country assessment and the

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United Nations development Assistance Framework, and is a key instrument for the efficient and effective coordination of the operational activities for development of the United Nations system. 21.  We reiterate the important role of UNCTAD as the focal point within the United Nations for the integrated treatment of trade and development and interrelated issues in the areas of finance, technology, investment and sustainable development. We commit ourselves and call upon the international community to work towards the strengthening of UNCTAD, to enhance its contribution in its three major pillars, namely consensus building, research and policy analysis, and technical assistance especially through increased core resources of UNCTAD. We further reiterate the need to operationalize the new functions mandated by UNCTAD XI in the areas of policy space, corporate responsibility and new and emerging fields of information and communication technology and to reinvigorate its intergovernmental machinery. 22.  We underline the important role of the United Nations Regional Commissions to further contribute, within their respective mandates to the review of progress made in the implementation of and follow-up to the outcomes of major United Nations conferences and summits in the economic, social and related fields at regional level. In this regard, we stress the need to provide the necessary resources, particularly through the United Nations regular budget, for the Regional Commissions, in order to enable them to fulfill their mandates effectively.

Secretariat and Management Reform 23.  We reaffirm our strong support to the United Nations, and to all collective efforts aiming at enhancing its ability to fully implement its mandates and to ensure the effective delivery of all its programmes, in particular in the social and economic development field. We firmly believe that the legitimacy and viability of any reform measures depend ultimately on the broad support of Member States of the United Nations, as well as of the United Nations staff who dedicate themselves to the values and principles of the Organization. We emphasize that measures to reform the United Nations should respond to the unique intergovernmental, multilateral and international character of the United Nations. We call on the Secretary-General to fully implement General Assembly resolution 60/260 on ‘Investing in the United Nations:  for a stronger Organization worldwide’, and stress that proposals that were not endorsed by the General Assembly should not be re-submitted. 24.  We affirm that the sovereign equality of Member States, as enshrined in the Charter of the United Nations, must be respected, including throughout the reform process, irrespective of the contributions that individual Member States make to the budgets of the Organization. Any attempt to change the governance arrangements exercised through the General Assembly, its Main Committees and subsidiary and expert bodies or to exclude some Member States from contributing to the decision-making processes in the Organization contradicts the spirit and letter of the Charter. We support the provisions of General Assembly resolution 60/260 which upholds the role of Member States, through the relevant Main Committee of the General Assembly, in the consideration of budgetary and administrative matters. 25.  We strongly support the oversight role performed by the General Assembly, as well as its relevant intergovernmental and expert bodies, in the planning, programming, budgeting, monitoring and evaluation. We reaffirm that the reform efforts are not intended to change the intergovernmental, multilateral and international nature of the organization but should strengthen the ability of Member States to perform this oversight and monitoring role. We stress the right of the entire membership of the United Nations to pronounce on the administration of the Organization, including on its budgetary matters. 26.  We stress the importance of ensuring that the Secretariat meets the highest standards of accountability, transparency, integrity and ethical conduct. We therefore urge the Secretary-General as a matter of priority to define accountability in the Organization, establish

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clear accountability mechanisms to the General Assembly, and propose parameters for the application of accountability and instruments for its rigorous enforcement. 27.  We welcome the management reforms adopted so far by the General Assembly. We stress that reform of human resources management, Administration of Justice, and procurement should reflect the international character of the Organization. In this regard, we: (i)  support a more fair and transparent system of internal justice where staff members are held accountable for wrongdoings, irrespective of their nationality and seniority. We stress that corrective measures have be taken to prevent and address any instances of mismanagement, fraud and corruption, whilst ensuring that due process is followed; (ii)  underscore the need to provide concrete measures to ensure greater market access by businesses from developing countries in United Nations procurement; and (iii)  stress the need for establishing clear mechanisms to increase the representation of developing countries in the Secretariat, in particular in the senior echelons where positions in practice have invariably been held by nationals from a few countries.

Mandate review 28.  We recognize the efforts by the Secretary-General to facilitate the mandate review exercise, which is intended to ‘strengthen and update’ the programme of work of the Organization and enable it to deliver it’s existing and new mandates more effectively. We stress that the one time review is limited to mandates originating from decisions adopted by the Principal Organs of the United Nations that are older than five years and have not been renewed since. Mandates that are older than five years and have been reaffirmed in the past five years do not fall within the scope of the exercise. The review should fully respect the politically sensitive mandates. 29.  We stress that setting the priorities of the Organization, as reflected in legislative decisions, remains the prerogative of Member States. We emphasize that the exercise should not change the inter-governmental nature of the decision-making, oversight and monitoring processes, or r e-define the roles and responsibilities of various Organs of the United Nations as identified by the Charter. We further stress that such an exercise is not aimed at cutting the costs of the Organization or to reduce the budget levels and fund more activities from within the existing resources. We agree that any savings that may result from the outcome of the exercise should be redirected to the activities of the Organization in the development area. 30.  We underscore the importance of addressing the implementation of mandates and assessing the reasons for less than full or non-implementation. We also believe that Member States should be willing to increase the financial and human resources that have been allocated to programmes if the lack of resources hinders the full implementation of mandates or activities. In this regard, we reaffirm our commitment to ensure that mandates, in particular those related to development, receive adequate resources. We urge all Member States to illustrate their commitment to the Organization through a willingness to provide adequate resources to all mandate programmes and activities, especially those related to development.

Providing predictable financial resources to the United Nations 31.  We emphasize that the Secretary General should receive adequate and predictable resources to undertake effectively the numerous tasks entrusted to the United Nations, as mandated by Member States. We regret the exceptional and unprecedented measure of restricting the expenditures of the Organization by authorizing the Secretary-General only to enter into expenditures limited to fifty per cent of the approved budget of 2006. We underline that the measure imposed upon the Organization has adversely affected programme delivery in the Organization. We stress that this limit on the expenditure of the Organization shall be automatically lifted upon the

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request of the Secretary General at the appropriate time. We call on all Member States to act accordingly. 32.  We agree that the financial stability of the United Nations should not be jeopardized. We believe that efforts to use the size of financial contributions to push for the adoption of certain proposals are counterproductive and violate the obligations of Member States to provide resources for the Organization, as enshrined in its Charter, and in accordance with the principle of capacity to pay.

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9.  Special Meeting of the High-level Panel of Eminent Personalities of the South on the occasion of the celebration of the Fiftieth anniversary of the establishment of the Group of 77 Algiers, Algeria, 30 May 2014 a. Algiers’ appeal on a global partnership for development through renewed international cooperation In accordance with the relevant mandate of the Thirty-seventh Annual Meeting of the Ministers of Foreign Affairs held in New York on 26th September 2013, the High-level Panel of Eminent Personalities of the South was convened for the first time in the African Region on the eve of the Third South Summit, to be held in Africa in 2015. In this context, the Panel met in Algiers (Algeria), on 30 May 2014, to address the future role of South-South cooperation, as well as, the development agenda of the Group of 77 and adopted the following appeal: 1.  The Panel stressed that the Group of 77, for the five past decades, has proved to be a vital mechanism for strengthening the Global South negotiating capacity by providing new approaches to policy decisions and actions of the South in the international arena in the light of evolving realities, as well as imparting a political, strategic direction for the South on southern perspectives concerning the major global issues which must be addressed by developing countries, in the context of the great challenges they face. 2.  The Panel emphasized that, even though the world has undergone far-reaching changes in the past five decades, and although significant progress has been made in many important fields of development, developing countries continue to face serious development challenges. These challenges are exacerbated by an unfavorable international economic environment and by the lack of reform of the institutions of global economic and financial governance. In addressing these challenges, the Panel affirmed that the principle of common but differentiated responsibilities, as well as the right to development are the basic foundations of the post-2015 Global Partnership for Sustainable Development. 3.  The Panel accordingly underscored the need for a strengthened and scaled-up global partnership for development, based on the recognition of national leadership and ownership of development strategies. It emphasized that international cooperation must be enhanced including the fulfillment of commitments to internationally agreed official development assistance; debt relief; market access; capacity building and technical support, including technology transfer. The Panel also stressed the need to further mainstream sustainable development at all levels, integrating economic, social, and environmental aspects and recognizing their inter-linkages, in order to achieve sustainable development in all its dimensions. The Panel also noted that most of the multilateral, institutions involved in development cooperation are part of the current international cooperation architecture, working within the confines of the donor-dominated system, policy frameworks and principles. The Panel noted that the cardinal principle of equitable geographical representation, which is critical to the proper functioning of the United Nations Organization, has been ignored; and as a result many United Nations recognized regions, and in particular the African region have been excluded from the management of the environmental governance. The Panel urged the international community to urgently address this situation. 4.  In this context, the Panel stressed that the strengthening of the United Nations and of its role in international cooperation for development is essential if it is to respond to current and future challenges and opportunities emanating from the process of globalization. The Panel recognized that the United Nations needs to improve its capabilities and capacities to fully implement its mandate and to ensure the effective delivery of its programmes in the social and economic development field.

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5.  The Panel urged the South’s Partners to seize the opportunity of the 70th anniversary of the establishment of the United Nations Organization which will coincide with the second commitment period for mitigating and adapting to climate change of the Annex I countries of the United Nations Framework Convention; to launch a Global Partnership for Sustainable Development through renewed international cooperation based on equity and the long term strategic interest of mankind. To this end, the Panel welcomed the initiative of Algeria to convene in conjunction with the 70th session of the United Nations General Assembly in New York, in partnership with the President of the Non-Aligned Movement and the President of the Group of 77 in New York and with the participation of the Presidents of G77 Chapter a meeting of the Joint Coordination Committee of the Non-Aligned Movement and the Group of 77 at ministerial level. 6.  The Panel also stressed the strategic importance of South-South cooperation and noted that the existing international financing for development system, structures, rules and regulations, accounting system, procurement, disbursement and delivery mechanisms are all built for the North-South paradigm of financing for development. These instruments have proven to be ill-suited for facilitating the various forms and sources of financing for South-South cooperation. The Panel reiterated that the G-77 must lead in shaping a new multilateral structure and consolidated system of financing for South-South cooperation, based on the South’s own terms of engagement that is suited to accommodate various sources and forms of South-South financing through the multilateral system. 7. In this context, the Panel highlighted the critical importance for developing countries of ensuring that the conceptual framework underlying South-South cooperation responds to the new and numerous common challenges faced by developing countries, through the exploration of new ways of thinking and new modalities, in line with evolving realities, thereby making it an important pillar to further strengthen South-South cooperation. 8. In conclusion, the Panel recommended that concrete initiatives and measures, should be action-oriented, as the main aim is to strengthen further the role of the Group of 77 in building its own South-South cooperation architecture. A f urther aim is to foster a more development-friendly international architecture that supports South-South cooperation as a strategy to sustain development efforts of developing countries enabling them to participate in the global economy. In this context, the Panel strongly recommended the consolidation of existing mechanisms of South-South cooperation and called for the establishment of the United Nations specialized agency for South-South Cooperation to be located in a developing country. 9.  The Panel mandated its Chair to present this appeal to the G77 Commemorative Summit to be held in Santa Cruz, Bolivia on 14, 15 June 2014, as well as to the Thirty-eighth Annual Meeting of the Ministers of Foreign Affairs of the Group of 77 to be held in September 2014 and to the Secretary-General of the United Nations Organization. The Panel recommended that preparations for the Third Regular South Summit of the Group of 77 to be held in Africa in 2015 should be launched as soon as possible. The Panel also agreed to meet on a regular basis to address strategic issues related to South-South and North-South cooperation within the context of the Development Platform of the South. 10.  The Panel expressed its deep appreciation to the Government of Algeria for hosting this first session of the High-level Panel of Eminent Personalities of the South that took place for the first time in the African Region, and commended the Executive Secretary of the Group of 77 at the UN Headquarters in New York for his valuable contribution and continued support to the ongoing work of the Panel.

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10.  Ministerial Meeting of the Joint Coordination Committee (JCC) between the Group of 77 and the Non-Aligned Movement on the occasion of the celebration of the Fiftieth anniversary of the establishment of the Group of 77, Algiers, Algeria, 30 May 2014 a.  Joint Communiqué We, the Presidents of the Non-Aligned Movement and the Ministerial Conference as well as the Group of 77 in New York and other United Nations chapters gathered on the occasion of the historical meeting of the Joint Coordination Committee of the Non-Aligned Movement and the Group of 77, convened for the first time at Ministerial level in Algiers, on 30th May 2014 to celebrate jointly the commemoration of the 50th anniversary of the establishment of the Group of 77, declare that: The conditions in the international political, economic, financial, social and environmental arena that underpinned the adoption in 1955 of the ‘Bandung Declaration’ and in 1964 of the ‘Joint Declaration of the Seventy-Seven Developing Countries’ are still prevailing. The continued deterioration of the world political, social, economic, financial and environmental situation is increasingly affecting the countries of the South. Therefore, the vision, principles, objectives of the Non-Aligned Movement as well as the rationale for the creation of our Group of 77, fifty years ago are still as valid today, and indeed more valid, than at that time. The Bandung Communiqué recognized the urgency of promoting economic development in the Asia-Africa region and recommended that there should be prior consultation of participating countries in international forums with a view, as far as possible, to furthering their mutual economic interest. In response to this call, seventy-seven countries meeting in Geneva on 15 June 1964 adopted a joint declaration and pledged to promote equality in the international economic and social order and promote the interests of the developing world, declared their unity under a common interest and defined the Group as ‘an instrument for enlarging the area of co-operative endeavor in the international field and for securing mutually beneficent relationships with the rest of the world.’ Responding also to the Bandung call, the first Ministerial Meeting of the Group of 77 held in Algiers in October 1967 adopted the Charter of Algiers that established the principles and objectives of unity and solidarity of the developing countries and their determination to strive for economic and social development, individually or collectively. Fifty-nine years after Bandung and fifty years after Geneva, we reaffirm the ideals and aims contained in these historic visionary statements. The Non-Aligned Movement is the principal political platform representing the developing countries in multilateral fora, in particular the United Nations Organization and the Group of 77 is the principal economic forum providing the means for the countries of the South to articulate and promote their collective economic interests and enhance their joint negotiating capacity on all major international economic issues within the United Nations system, and promote South-South cooperation for development. The objectives and principles of these two unique fora of solidarity of the South are mutually supportive and should be continuously reinforced. To this end, we have agreed to meet for the first time, in Algiers, the birthplace of the first ministerial meeting of the Group of 77, at ministerial level, in the framework of the Joint Coordination Committee of the Non-Aligned Movement and the Group of 77 to mark and celebrate the 50th Anniversary of the establishment of the Group of 77. We pledge to spare no effort to continue the tradition of a previous generation of our countries on building national sustainable development and uniting at the international level to struggle for a just and fair international order in the world economy that supports the countries of the South in achieving their legitimate objectives of sustainable development

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including sustained economic growth, full employment, social equity, provision of basic goods and services to their people, protection of the environment and living in harmony with Nature. Therefore, we pledge to continue and intensify our struggles for a fair and just international economic order oriented towards the fulfillment of the development needs and priorities of the countries of the South. Call on 133 Heads of State and Government of the Member States of the Group of 77 to actively take part in the historical Summit of the Group of 77 to be held on 14-15 June 2015 in Santa Cruz, Plurinational State of Bolivia, and to provide the highest possible political impetus for the countries of the South to articulate, promote and defend their collective economic, financial, social and environmental interests and enhance their joint negotiating capacity on all major international sustainable development issues within the United Nations system, and promote South-South cooperation. We welcome and fully support the initiative of Algeria to convene, in partnership with the Presidents of the Non-Aligned Movement, the Group of 77 in New York and other G77 Chapters, a meeting at ministerial level of the Joint Coordination Committee of the Non-Aligned Movement and the Group of 77, in New York in September 2015, on the occasion of the commemoration of the 60th anniversary of the adoption of the Bandung Communiqué, to celebrate the 70th anniversary of the establishment of the United Nations Organization and to shape the way of an enhanced coordination on economic and environmental issues, including climate change, on the agenda of the United Nations system. Signed: Ramtane Lamamra President of the NAM-Ministerial Conference, Minister of Foreign Affairs of Algeria

Signed: Signed: Mohammad Javad Zarif Sacha Llorentty Soliz President of NAM, Minister of Chair of the G-77 in Foreign Affairs of the Islamic New York Republic of Iran

Signed: Ittiporn Boonpracong Chair, G-77 Nairobi, Chapter

Signed: Signed: Ahmed Sayyad Abdul Azeez Aliyar Lebbe Chair, G-77 Paris Chapter Chair, G-77 Vienna Chapter

Signed: Karim Wissa For / The Chair, G-77 Washington Chapter (G-24)

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11. Commemorative Summit on the occasion of the Fiftieth anniversary of the establishment of the Group of 77, Santa Cruz de la Sierra, Plurinational State of Bolivia, 14 and 15 June 2014 a.  Santa Cruz Declaration Part I Overall context 1.  We, the Heads of State and Government of the member States of the Group of 77 and China, have gathered in the city of Santa Cruz de la Sierra, Plurinational State of Bolivia, for the commemoration of the fiftieth anniversary of the establishment of the Group. 2.  We commemorate the formation of the Group of 77 on 15 June 1964 and recall the ideals and principles contained in the historic Joint Declaration of the Seventy-Seven Developing Countries, signed at the end of the first session of the United Nations Conference on Trade and Development (UNCTAD), held in Geneva. 3.  We recall that the first ever statement of the Group of 77 pledged to promote equality in the international economic and social order and promote the interests of the developing world, declared their unity under a common interest and defined the Group as ‘an instrument for enlarging the area of cooperative endeavour in the international field and for securing mutually beneficent relationships with the rest of the world’. 4.  We also recall the first Ministerial Meeting of the Group of 77, held in Algiers from 10 to 25 October 1964, at which the Group adopted the Charter of Algiers, which established the principles of unity, complementarity, cooperation and solidarity of the developing countries and their determination to strive for economic and social development, individually or collectively. 5.  We highlight that the Group of 77 has provided the means for the countries of the South to articulate and promote their collective social and economic interests and enhanced their joint negotiating capacity within the United Nations system, and note with satisfaction that the Group has established a permanent secretariat at United Nations Headquarters in New York and chapters in Geneva, Nairobi, Paris, Rome, Vienna and the Group of 24 in Washington, D.C., and that its membership now stands at 133 member States. 6.  We also recall the successful holding of the first South Summit of the Group of 77 and China in Havana in April 2000 and the second South Summit in Doha in June 2005, at which the status of the Group of 77 and China was elevated to the level of Heads of State and Government and at which important declarations and plans of action were adopted that have guided our Group and constitute the fundamental basis for the construction of a new world order and an agenda owned by the countries of the South for the establishment of a more just, democratic and equal system that benefits our peoples. 7.  We pledge to continue the tradition of our countries on building national development and uniting at the international level, towards the establishment of a just international order in the world economy that supports developing countries achieve our objectives of sustained economic growth, full employment, social equity, provision of basic goods and services to our people, protection of the environment and living in harmony with nature. 8.  We are proud of the legacy and great achievements of the Group of 77 and China in defending and promoting the interest of the developing countries over the past 50 years, which have contributed gradually to greater strength and influence on economic, social and environmental issues.

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We pledge to build on this foundation and continue making progress towards a world order that is just, equitable, stable and peaceful. Major landmarks in this regard have been the adoption by the United Nations General Assembly of the Declaration on the Establishment of a New International Economic Order in 1974, the Declaration on the Right to Development in 1986 and several other historic declarations that recognize and address the needs and interests of developing countries and constitute an utmost priority. 9.  We believe in the peaceful settlement of conflicts through dialogue. 10.  We also note that, despite five decades of achievements, there are still serious shortfalls in fulfilling our Group’s objectives, and that our countries individually and collectively now face ongoing and emerging challenges, including the slowdown of the global economy and its effects on our countries and the lack of adequate systemic action and accountability to address the causes and effects of the global financial and economic crises, thus creating the risk of continuing with the pattern of crisis cycles. 11.  We also note the gaps in many of our countries in meeting the needs of employment, food, water, health care, education, housing, physical infrastructure and energy of our people, as well as the looming environmental crisis, including the negative impacts of climate change in developing countries, the increasing shortage of drinking water and the loss of biodiversity. 12.  We stress that imbalances in the global economy and the inequitable structures and outcomes in the trading, financial, monetary and technological systems led to the establishment of our Group. Nevertheless, these imbalances still prevail today in some ways with even more adverse effects on developing countries. Therefore, we pledge to continue and intensify our efforts to strive for a fair, just and equitable international order oriented towards the fulfilment of the development needs of developing countries. 13.  We emphasize that the rationale for the establishment of our Group 50 years ago remains actual and valid, and indeed more valid, than at that time. We therefore rededicate ourselves and our countries to strengthening and expanding the unwavering efforts of the Group of 77 and China in all fields towards greater achievement and for the betterment of the lives of our people. 14.  We affirm that the twenty-first century is the time for the countries and the peoples from the South to develop their economies and societies in order to fulfil human needs sustainably, in harmony with nature and respect for Mother Earth and its ecosystems. We agree to build on our traditional values and practices of solidarity and collaboration for mutual benefit and on the strength of our people, to achieve progress in our countries and in South-South cooperation. 15.  We emphasize that our major priorities are promoting sustained, inclusive and equitable economic growth, creating greater opportunities for all, reducing inequalities, raising basic standards of living, fostering equitable social development and inclusion, and promoting the integrated and sustainable management of natural resources and ecosystems that supports, inter alia, economic, social and human development while facilitating ecosystem conservation, regeneration and restoration and resilience in the face of new and emerging challenges. 16.  We reaffirm that the main strength of the Group of 77 has been and will be its unity and solidarity, its vision of fair, just and equitable multilateral relations, the commitment of its member States to the well-being and prosperity of the peoples of the South as well as our commitment to mutually beneficial cooperation. 17.  We emphasize that each country has the sovereign right to decide its own development priorities and strategies and consider that there is no ‘one size fits all’ approach. We stress the need for international rules to allow policy space and policy flexibility for developing countries, as they are directly related to the development strategies of national Governments. We further emphasize the need for policy space to enable our countries to formulate development strategies expressing

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national interests and differing needs which are not always taken into account by international economic policymaking in the process of integration with the global economy. 18.  We are concerned about the current state of the global economy and the state of global economic governance and the need for strong recovery. We believe that the world is confronted with the worst financial and economic crisis since the Great Depression, and we are alarmed by the adverse effects this crisis is having especially on developing countries. We believe the crisis has highlighted long-standing systemic fragilities and imbalances in the global economy, and further exposed the inadequacy and undemocratic nature of global economic governance. New attempts must now be made to establish proper global economic governance, with the full voice, representation and participation of developing countries in discussions and decision-making. 19.  We recognize the high importance of sustaining social protection and fostering job creation even in times of economic crisis, and take note with satisfaction of the encouraging examples of policies that allow countries to reduce poverty, increase social inclusion and create new and better jobs in recent years. 20.  We view with concern the increased concentration and the asymmetric distribution of wealth and income in the world, which have created wide inequality between developed and developing countries. This level of inequality is unjustifiable and cannot be tolerated in a world where poverty is still prevalent, resources are being depleted and environmental degradation is increasing. We call for global actions to reduce inequalities at all levels. We also pledge to address inequality in our own countries. 21.  We note with concern the influence of large corporations, mainly from developed countries, on the global economy, and its negative effects on the social, economic and environmental development of some developing countries, particularly regarding the barriers this may pose for the entry of new enterprises in the global market. In this regard, we call for concrete measures from the international community to address these negative effects and to promote international competition and increased market access for developing countries, including policies that foster the growth of small and medium-sized enterprises in developing countries, the removal of trade barriers that inhibit value addition in origin countries, such as tariff peaks and tariff escalation, as well as capacity-building on competition law, tax policy regulations and social corporate responsibility. 22.  We emphasize that transnational corporations have a responsibility to respect all human rights and should refrain from causing environmental disasters and affecting the well-being of peoples. 23.  We recognize the progress achieved in sustainable development at the regional, national, subnational and local levels and we reaffirm the importance of supporting developing countries in their efforts to eradicate poverty by empowering the poor and people in vulnerable situations, promoting developing sustainable agriculture as well as full and productive employment and decent work for all, complemented by effective social policies, including social protection floors. 24.  We fully respect the principles and purposes of the Charter of the United Nations and international law, particularly as they relate to equality among States, respect for the independence of States, national sovereignty, territorial integrity and non-interference in the internal affairs of States, and stress that those principles and purposes inspire our full commitment to multilateralism and the search for a more just and equitable international economic system that offers opportunities to raise the standard of living of our peoples. 25.  We are deeply aware that decades after political independence, some developing countries are still in the grip of economic dependence on the structures and vagaries of the global economy and on the developed countries and their economic entities. Such dependence, especially by poor and vulnerable countries, limits the extent of our real political independence as well. Therefore, we pledge to unite our efforts to continue striving for economic independence and to gather under

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the umbrella of the Group of 77 and China as well as other organizations of the South to make progress on this. 26.  We recall the decisions taken at the second South Summit in Doha (2005) to work to ensure that programmes and policies designed in the context of globalization fully respect the principles and purposes of the Charter of the United Nations and international law, particularly as they relate to equality among States, respect for the independence of States, national sovereignty, territorial integrity and non-interference in the internal affairs of States, and to stress that those principles and purposes inspire our full commitment to multilateralism and the search for a more just and equitable international economic system that offers opportunities to raise the standard of living of our peoples. 27.  We also recall the decision taken at the Group of 77 and China Summit in Doha (2005) to work towards the realization of the right to self-determination of peoples living under colonial or other forms of alien domination or foreign occupation, which adversely affects their social and economic development, and to call on the international community to take all necessary measures to bring an end to the continuation of foreign occupation, in accordance with the purposes and principles of the Charter of the United Nations and international law. 28.  We reaffirm that indigenous peoples have the right to maintain and strengthen their distinct political, legal, economic, social and cultural institutions, while retaining their right to participate fully, if they so choose, in the political, economic, social and cultural life of the State. In this regard, we emphasize the need to respect and safeguard indigenous cultural identities, knowledge and traditions in our countries.

Part II Development in the national context Approaches for sustainable development 29.  We stress the need to further mainstream sustainable development at all levels, integrating economic, social and environmental aspects and recognizing their interlinkages, so as to achieve sustainable development in all its dimensions. 30.  We reaffirm that there are different approaches, visions, models and tools available to each country, in accordance with its national circumstances and priorities to achieve sustainable development in its three dimensions, which is our overarching goal (United Nations Conference on Sustainable Development). In some countries there is an approach of ‘living well’ as holistic development aimed at achieving the material, cultural and spiritual needs of societies in a context of harmony with nature. 31.  We acknowledge that the Earth and its ecosystems are our home and we are convinced that, in order to achieve a just balance among the economic, social and environmental needs of present and future generations, it is necessary to promote harmony with nature and the Earth. We also recognize that ‘Mother Earth’ is a common expression for planet Earth in a number of countries and regions, which reflects the interdependence that exists among human beings, other living species and the planet we all inhabit. 32.  We welcome the celebration held in 2011 of the twenty-fifth anniversary of the Declaration on the Right to Development, which is a major landmark document that establishes the right of developing countries to act to achieve development and the right of people to participate in and benefit from development. 33.  In this context, we reaffirm that development is a comprehensive economic, social, cultural and political process that aims at the constant improvement of the well-being of the entire

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population and of all individuals on the basis of their active, free and meaningful participation in development and in the fair distribution of benefits resulting therefrom as recognized in the Declaration on the Right to Development. 34.  We further reaffirm the proclamation in the Declaration on the Right to Development that the right to development is an inalienable human right by virtue of which every person and all peoples are entitled to participate in, contribute to and enjoy economic, social, cultural and political development, in which all human rights and fundamental freedoms can be fully realized as recognized in the Declaration.

Improving the practice of democracy 35.  We consider that democracy is a universal value based on the freely expressed will of the people to determine their own political, economic, social and cultural systems and their full participation in all aspects of their lives. We reaffirm that while all democracies share common features, there is no single model of democracy and that democracy does not belong to any country or region, and further reaffirm the necessity of due respect for sovereignty, unity and territorial integrity and the right to self-determination, and the rejection of any attempt to break down constitutional and democratic order legitimately established by the peoples. 36.  We call for an end to the use of media in any way that might disseminate distorted information against States members of the Group of 77 in complete disregard of the principle of international law. 37.  We express our deep indignation and rejection with regard to the facts related to the surprise withdrawal of over flight and landing permits for the presidential aircraft on which President Evo Morales Ayma of the Plurinational State of Bolivia and his party were travelling on 2 July 2013. These facts constitute unfriendly and unjustifiable acts that have also put at serious risk the safety of President Morales. We make public our greater solidarity and demand clarification of facts.

National sovereignty and benefits over natural resources 38.  We affirm that States have, in accordance with the Charter of the United Nations and the principles of international law, the sovereign right to exploit their own resources pursuant to their own environmental and developmental policies, and the responsibility to ensure that activities within their jurisdiction or control do not cause damage to the environment of other States or of areas beyond the limits of national jurisdiction. 39.  We also reaffirm that the right of peoples and nations to permanent sovereignty over the natural wealth and resources must be exercised in the interest of their national development and of the well-being of the people of the State concerned. 40.  While emphasizing the sovereignty of our countries and peoples over their natural wealth, we are also aware of our duty to conserve and sustainably manage and use these resources and ensure the conditions for nature and ecosystems to have the capacity to regenerate, for the benefit of present and future generations. We also recognize that the sustainable use of natural resources is an effective way to achieve economic growth while reducing poverty and environmental degradation. 41.  We take note of and respect the decisions of some countries that decided to nationalize or to reclaim control of their natural resources in order to obtain greater benefits for their people, especially the poor, and to invest in the economic diversification, industrialization and social programmes.

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42.  We urge that technical and capacity-building assistance be provided to developing countries at the international, regional and national levels to support them in obtaining the maximum benefits from the extraction and use of those resources in line with sustainable development, taking into account the full exercise of the sovereign right of our countries over their natural resources.

Eradication of poverty 43.  We recognize that poverty is an affront to human dignity and stress that poverty eradication is the greatest global challenge facing the world today, and we attach the highest priority to poverty eradication in the United Nations post-2015 development agenda to be supported by effective and adequate means of implementation and strengthened global partnership for development, and which entails, among other objectives, the promotion of employment and decent work for all, the improvement of access to social services, the eradication of illiteracy and diseases as well as integrated, coordinated and coherent national and regional strategies. 44.  We express our deep concern for the constraints on the fight against poverty arising from the crises, in particular the world financial and economic crisis, the continuing food insecurity, the volatility of capital flows and the extreme volatility of commodity prices, energy accessibility and the challenges posed by climate change to developing countries. 45.  We further stress that, in order to enable Governments of developing countries to effectively eradicate poverty, developing countries must ensure national ownership of their own development agenda, which entails preserving their own policy space backed by a strong political commitment to reduce poverty in line with their national priorities and circumstances. As such, Governments of developing countries must formulate their own development strategies to assist the poor through policies and actions, including on, but not limited to, strong, sustained and inclusive economic growth, the generation of employment as a priority, in particular for the young population, the improvement of the provision of universal and affordable access to basic services, the provision of a well-designed social protection system, the empowerment of individuals to seize economic opportunities, and measures to ensure the protection of the environment. 46.  We recall the United Nations Convention against Corruption, which is the most comprehensive and universal instrument on corruption, and we recognize the need to continue promoting ratification of or accession to the Convention and its full implementation. We also recognize that fighting corruption at all levels is a priority and that corruption is a serious barrier to effective resource mobilization and allocation and diverts resources away from activities that are vital for poverty eradication and sustainable development. 47.  We take note with appreciation of the ancestral and traditional values of some of our peoples such as the Andean principles of Ama Suwa (‘do not be a thief’), Ama Llulla (‘do not be a liar’) and Ama Qhilla (‘do not be lazy’), which in accordance with all human rights and fundamental freedoms contribute to efforts to prevent and tackle corruption.

Reducing inequality 48.  We emphasize that the problem of inequality is even more acute today than ever because of the prevalence of extreme wealth while poverty and hunger continue to exist and this is aggravated, inter alia, by unsustainable patterns of consumption and production mainly in developed countries. We affirm that any benefit from economic growth has to be equitably shared and must benefit the people in vulnerable situations in our communities, and we therefore call once again for concerted actions to reduce inequalities at all levels.

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49.  We are gravely concerned at the inadequacy of measures to narrow the widening gap between the developed and the developing countries, and within countries, which has contributed to, inter alia, deepening poverty and has adversely affected the full enjoyment of all human rights, in particular in developing countries. 50.  We also note with concern that high levels of inequality within and among countries continue to have a negative impact on all aspects of human development and are especially harmful to people in vulnerable situations who are affected by intersecting inequalities. We therefore urge countries, including through the support of international cooperation, to scale up efforts to provide equal access to opportunities and outcomes to all levels of society in accordance with national policies. 51.  We understand that sustainable development involves a change in the order of priorities from the generation of material wealth to the satisfaction of human needs in harmony with nature. The excessive orientation towards profit neither respects Mother Earth nor takes into account human needs. The continuation of this unequal system will lead to further inequality.

Sustained and inclusive economic growth 52.  We affirm that sustained, inclusive and equitable economic growth is necessary to eradicate poverty, provide jobs and raise the living standards of our people and generate public revenues to finance social policies. We note that historical evidence has shown that no country has ever achieved constant improvements in living standards and human development without sustaining a steady pace of economic growth. We therefore urge the international community and the United Nations to assist developing countries in attaining high and adequate economic growth over a sustained period. 53.  We also realize that high economic growth, although necessary, is not sufficient in itself. We realize that economic growth must be sustained and inclusive by generating jobs and lifting the incomes of peoples in vulnerable situations, especially the poor and the most in need. Economic growth should also be environmentally and socially sound and, to achieve this, developing countries require, among other sources, financial and technological support from developed countries according to national plans.

Creation of employment 54.  We express the view that the capacity to generate full employment and decent work is fundamentally linked to reviving and enhancing productive development strategies, through adequate finance, investment and trade policies. In this regard, we reaffirm the need for significant mobilization of resources from a variety of sources and the effective use of financing, in order to give strong support to developing countries in their efforts to promote sustainable development. We also stress the need to maintain coherence between macroeconomic and job creation policies in order to ensure inclusive and resilient global economic growth. 55.  We are deeply concerned about the continuing high levels of unemployment and underemployment, particularly among young people, and affirm our commitment to reducing unemployment through employment-intensive macroeconomic and development policies. We affirm the need to launch an intergovernmental process, within the United Nations, to include the issue of youth employment and youth concerns in the current process of the post-2015 development agenda. We also affirm the importance of ensuring decent livelihoods for farmers in our countries. 56.  We affirm the need to launch an intergovernmental process within the United Nations to develop a global strategy on improving employment skills and generating youth employment.

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Providing basic services for our people 57.  We are concerned that there remains a substantial and increasing gap between the world’s rich and poor, which is due not only to an unequal distribution of income, but also to unequal access to basic resources and services, which hinders the creation of economic opportunities for all. 58.  We recognize that the State has an essential role to play to ensure that basic services are accessible to all and to address the unequal and discriminatory distribution of and access to them. 59. We also reaffirm our resolve to act to implement the right of our people to access basic services. 60.  We reaffirm our commitments regarding the human right to safe drinking water and sanitation, to be progressively implemented and realized for our populations with full respect for national sovereignty. 61.  We call upon donor countries and international organizations to advance in the provision of financial resources, capacity-building and technology transfer, through international assistance to and cooperation with developing countries, in order to scale up efforts to provide safe, clean, accessible and affordable drinking water and sanitation for all.

Access to public health and medicines 62.  We recognize that universal health coverage means that everyone has access, without discrimination, to a set of basic medical services of promotion, prevention, cure and rehabilitation that meet the needs and are determined nationally, as well as to essential quality, safe, affordable and effective medicines while ensuring that the use of these services does not entail serious economic difficulties for users, especially people in vulnerable situations. 63. We also recognize that many developing countries do not have the financial or human resources or the infrastructure to implement the right of everyone to the enjoyment of the highest attainable standard of physical and mental health. Therefore, we call upon developed countries and relevant international organizations to provide the adequate financial resources and technology to developing countries that will complement their efforts to have policies and measures that provide universal health coverage and basic health services for all. 64.  We note with great concern that non-communicable diseases have become an epidemic of significant proportions, undermining the sustainable development of member States. In that sense, we acknowledge the effectiveness of tobacco control measures for the improvement of health. We reaffirm the right of member States to protect public health and, in particular, to ensure universal access to medicines and medical diagnostic technologies, if necessary, including through the full use of the flexibilities in the Doha Declaration on the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) and Public Health. 65.  We recall paragraph 142 of the outcome document of the United Nations Conference on Sustainable Development, in which Heads of State and Government reaffirmed the right to use, to the fullest extent, the provisions contained in the TRIPS Agreement, the Doha Declaration on the TRIPS Agreement and Public Health, the decision of the General Council of the World Trade Organization (WTO) of 30 August 2003 on the implementation of paragraph 6 of the Doha Declaration and, when formal acceptance procedures are completed, the amendment to article 31 of the TRIPS Agreement, which provide flexibilities for the protection of public health, and in particular to promote access to medicines for all and encourage the provision of assistance to developing countries in this regard. We affirm the importance of taking advantage of the use of TRIPS flexibilities in order to promote the people’s health and access to medicines. We call upon developed countries to fully respect the right of developing countries to make full use of TRIPS

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flexibilities and to refrain from taking actions, including trade measures, to prevent or dissuade developing countries from exercising this right. 66.  We are concerned about the increasing problem of antimicrobial resistance to existing drugs, including those against tuberculosis and malaria. As a result, increasing numbers of patients, especially in developing countries, face the prospect of dying from preventable and/or treatable diseases. We urge the international health authorities and organizations, especially the World Health Organization (WHO), to take urgent action and to work together upon request with developing countries that do not have adequate resources to address this problem.

Agricultural development and food security 67.  We recall that food security and nutrition are essential elements for achieving sustainable development and express concern that developing countries are vulnerable to, among others, the adverse impacts of climate change, further threatening food security. 68.  We reaffirm that hunger is a violation of human dignity and call for urgent measures to be taken at the national, regional and international levels to eliminate it. We also reaffirm the right of everyone to have access to safe and nutritious food in accordance with their right to adequate food and the fundamental right to be free from hunger, in order to develop and maintain their full physical and mental capacities. We also acknowledge that food security and nutrition are essential to sustainable development and have become a pressing global challenge and, in this regard, we further reaffirm our commitment to enhancing food security and access to adequate, safe and nutritious food for present and future generations in line with the Five Rome Principles for Sustainable Global Food Security, adopted on 16 November 2009, including for children under the age of 2, and through, as appropriate, national, regional and global food security and nutrition strategies. 69.  We denounce that subsidies and other market distortions driven by developed countries have seriously affected the agricultural sector of developing countries, limiting the ability of this key sector to significantly contribute to the eradication of poverty and to sustained, inclusive economic growth and equitable, sustainable development, food security and rural development. We call for the immediate elimination of all forms of agricultural subsidies and other market-distorting measures taken by developed countries that are not in compliance with WTO rules. We urge developed countries to show flexibility and political will to adequately address these fundamental concerns of developing countries in the Doha Round of trade negotiations. 70. We reiterate our commitment to conclude multilateral disciplines on fisheries subsidies which give effect to the WTO Doha Development Agenda and the Hong Kong ministerial mandates to strengthen disciplines on subsidies in the fisheries sector, including through the prohibition of certain forms of fisheries subsidies that contribute to overcapacity and over fishing, recognizing that appropriate and effective special and differential treatment for developing and least developed countries should be an integral part of the WTO fisheries subsidies negotiation, taking into account the importance of the sector to development priorities, poverty reduction, and livelihood and food security concerns. 71.  We emphasize the need to strengthen the capacity of our countries, especially through international cooperation, to safeguard and enhance our people’s nutrition through the promotion of their productive cultural and environmental practices. 72.  We also emphasize the urgent need to increase efforts at the national, regional and international levels to address food security and agriculture development as an integral part of the international development agenda. We demand sustained funding and increased targeted investment to enhance world food production and call for new and additional financial resources from all sources to achieve sustainable agriculture development and food security.

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73.  We further emphasize the need to strengthen the agricultural sector as part of the post-2015 agenda with its means of implementation, to achieve food security, stressing the importance of including the knowledge, practices and technologies of indigenous peoples, rural communities and small- and medium-scale farmers in national, regional and international strategies aimed at achieving food security. 74.  We welcome the adoption by the General Assembly of resolution 68/177 on the right to food and resolution 68/233 on agricultural development, food security and nutrition. We also welcome the Second International Conference on Nutrition, organized by the Food and Agriculture Organization of the United Nations (FAO) and WHO, to be held at FAO headquarters in Rome from 19 to 21 November 2014, which aims to approve the nutrition policy framework for the coming decades and to determine priorities for international cooperation in the field of nutrition in the short and medium term. 75.  We welcome the decision of the Director General of FAO to appoint for the second year Evo Morales Ayma, President of the Plurinational State of Bolivia, and Nadine Heredia Alarcón, First Lady of Peru, as Special Ambassadors of Quinoa, recognizing their leadership and commitment in the fight against hunger and malnutrition and that the Bolivian and Peruvian Governments showed the world the benefits and quality of that Andean food source. 76.  We reaffirm that quinoa’s biodiversity and nutritional value make it central to providing food security and nutrition and to eradicating poverty, as well as to promoting the traditional knowledge of the Andean indigenous peoples, contributing to the achievement of food security, nutrition and poverty eradication and raising awareness of their contribution to social, economic and environmental development, and sharing good practices on implementation. 77.  We call for the creation of conditions for the development of economic opportunities for the benefit of small-scale and family farmers, peasant and indigenous peoples and communities, and the creation of options for connecting them with consumers, as part of the national strategies for the realization of the right to food. 78.  We recognize the positive role of small-scale and family farmers, including women, cooperatives, indigenous peoples and local communities in developing countries, and their knowledge and practices, in the conservation and sustainable use of seeds, agrobiodiversity and biodiversity associated with food production of present and future generations. 79.  We stress the need to address the root causes of excessive food price volatility, including its structural causes, at all levels, and the need to manage the risks linked to excessively volatile prices in agricultural commodities and their consequences for global food security and nutrition, as well as for small-scale farmers and poor urban dwellers. 80.  We call for the prioritization of development in the WTO Doha Round of negotiations in accordance with the Doha Development Agenda, including food security. We call for the promotion of the livelihoods of small-scale farmers and rural development in developing countries. In this context, we urge WTO members to adopt a permanent solution to the issue of public stock holding and food security for developing countries, as agreed by the WTO Ministerial Decision adopted in Bali, Indonesia, in 2013, as soon as possible.

Sustainable family farming 81.  We declare that family farms and small farms are an important basis for sustainable food production aimed at achieving food security (General Assembly resolution 66/222). In this framework, support should be given to the economic activities of sustainable family farming, taking into account the traditional knowledge of such farmers, in order to improve their situation and development, in particular promoting their access to financial services, productive resources and agricultural inputs such as land, seeds, appropriate technology, transport and information.

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82.  We will promote comprehensive and complementary national and regional actions for production, access and consumption based on integral, multisectoral and participatory planning, reassessing and strengthening sustainable family farming, small-scale farmers, indigenous peoples and Afro-descendants.

Industrialization and infrastructure 83.  We affirm that industrial development and value addition, together with science, technology and innovation, are, among others, essential elements for developing countries to attain higher development levels in a sustained way, as the industrialization process can generate higher productivity, more jobs and skills and positive spill over effects on the economy. Therefore, we urge developed countries to assist developing countries in boosting industrialization in their development strategies and policies and in promoting inclusive sustainable industrial development, in accordance with their national interests. 84.  We note that many developing countries are still overly dependent on commodities and that they should explore industrial diversification strategies by, inter alia, enhancing value-adding productive capacities. 85.  We call on relevant international organizations and request international cooperation mechanisms to provide adequate assistance to developing countries, including through technology transfer, to develop their capacities to design and implement industrialization strategies and policies, in accordance with their national priorities. 86.  We call for the international trading system to respect and reinforce the policy space of developing countries for the promotion and growth of our industrial development and for the design and implementation of our industrial strategies. In this regard, we call for the revision of all rules within the world trading system that affect the policy space of developing countries. 87.  We affirm that the development of reliable and affordable infrastructure, regional connectivity, and its appropriate interlinkage through science, technology and innovation, including transport, roads, energy and telecommunications, as well as the promotion of market access for exports coming from developing countries, are essential elements in improving the quality of life of our people and in the sustainable development of our countries. 88.  In this regard, we urge developed countries and international organizations, in accordance with internationally agreed commitments, to provide adequate financial assistance to support the transfer of reliable and affordable technologies and to promote capacity-building, taking into account national priorities. 89.  We urge developed countries to provide technical assistance, technology transfer and financial resources to enable our countries to industrialize and develop our infrastructure in ways that are environmentally sustainable. 90. We emphasize in this regard the importance of technical assistance for industrial development  in member States with the aim of adopting cleaner, resource-based and energyefficient sustainable consumption and production patterns, including cleaner fossil fuel technologies. 91.  We welcome the initiative of the Plurinational State of Bolivia, as Chair of the Group of 77 and China, to organize the Meeting of Ministers of Industrialization and counterparts on the issue of governance of natural resources and industrialization, in coordination with the United Nations Industrial Development Organization (UNIDO), the Economic Commission for Latin America and the Caribbean, the Economic Commission for Africa, the Economic and Social Commission for Asia and the Pacific and the Economic and Social Commission for Western Asia, to take place in Tarija, Plurinational State of Bolivia, in August 2014.

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92. We welcome the Lima Declaration:  Towards Inclusive and Sustainable Industrial Development, which was adopted at the fifteenth session of the General Conference of UNIDO, held in Lima in December 2013, as an important step in our common endeavours to achieve sustainable development and the eradication of poverty.

Inclusion of women in development 93.  We recall the outcome of the United Nations Conference on Sustainable Development, reaffirm the vital role of women and the need for full and equal opportunities for their participation and leadership in all areas of sustainable development, and decide to accelerate the implementation of our respective commitments in this regard as contained in the Convention on the Elimination of All Forms of Discrimination against Women, as well as in Agenda 21, the Beijing Declaration and Platform for Action, the United Nations Millennium Declaration and the Programme of Action of the 1994 International Conference on Population and Development. 94.  We also recognize that the potential of women to engage in, contribute to and benefit from sustainable development as leaders, participants and agents of change has not been fully realized. We support prioritizing measures to promote gender equality and the empowerment of women and girls in all spheres of our societies. We resolve to unlock the potential of women as drivers of sustainable development through many measures and commit to creating an enabling environment for improving the situation of women and girls everywhere, particularly in rural areas and local communities and among indigenous peoples and ethnic minorities. 95.  We are committed to ensure equal rights and opportunities for women in political and economic decision-making and resource allocation, to give women equal rights with men to economic resources, and to ensure access to education, finance, information and communications technologies, markets, legal assistance and other basic services, including health-care services, including safe, effective, affordable and acceptable modern methods of family planning. 96.  We recall our respective commitments under General Assembly resolution 61/143 and other relevant resolutions on this matter, recognize that violence against women seriously violates all human rights of women, and therefore agree to take action to eliminate all forms of violence, including feminicide and discrimination against women and girls, by means of a more systematic, comprehensive, multisectoral and sustained approach, adequately supported and facilitated by strong institutional mechanisms and financing, through national action plans, including those supported by international cooperation and, where appropriate, national development plans, including poverty eradication strategies and programme-based and sector-wide approaches. 97.  We reaffirm the commitment to work together towards a post-2015 development agenda with a gender perspective. 98.  We urge the need to tackle critical remaining challenges for women and girls through a transformative and comprehensive approach and call for gender equality and the empowerment of women and girls to be reflected as a stand-alone sustainable development goal and to be integrated through targets with inclusive policies to overcome poverty and foster social and economic development in our countries.

Indigenous peoples 99.  We urge efforts towards the implementation of the rights of indigenous peoples to their lands, natural resources, identity and culture, in accordance with national legislation. We reaffirm our respective commitments to implement our legal obligations, including, as appropriate, Convention No. 169 of the International Labour Organization, as well as to promote the implementation of the United Nations Declaration on the Rights of Indigenous Peoples.

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100.  We reaffirm the value and the diversity of the cultures and the forms of social organization of indigenous peoples and their holistic traditional scientific knowledge, innovations and practices, which play a significant role in strengthening the livelihoods of the local populations, ensuring food security and addressing climate change. 101.  We stress the importance of indigenous peoples in the achievement of sustainable development in developing countries and their critical role in the social, economic and political processes of our countries, while strengthening the local views and values referred to as the holistic views of Mother Earth. 102.  We reaffirm the importance of the role of collective action and the efforts of indigenous and local communities in conserving biodiversity, considering their critical role in the stewardship and sustainable management of natural renewable resources. 103.  We consider that mitigation of and adaptation to climate change are contingent upon different sociocultural contexts, taking particular account of indigenous peoples and local communities and their traditional knowledge systems and practices, including their holistic view of community and environment, as a major means of adapting to climate change. 104.  We call for strengthening the interscientific dialogue between traditional and indigenous knowledge systems with modern sciences in the context of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services and of the conceptual framework of ‘Living well in balance and harmony with Mother Earth’, approved by the Platform. 105.  We welcome the convening of the high-level plenary meeting of the sixty-ninth session of the General Assembly, to be known as the World Conference on Indigenous Peoples, to be held in New York on 22 and 23 September 2014, with the purpose of sharing insights and best practices on the implementation of the United Nations Declaration on the Rights of Indigenous Peoples. The action-oriented outcome document of this Conference should contribute to the realization of the rights of indigenous peoples and the pursuit of the objectives of the Declaration, and promote the achievement of all internationally agreed development goals. 106. We take note of the Special Declaration on the Coca Leaf of the Heads of State and Government of the Latin American and Caribbean States within the framework of the Summit of Heads of State and Government of the Community of Latin American and Caribbean States, held in Havana on 29 January 2014, which acknowledges the importance of preserving the cultural and traditional practices of indigenous peoples in the context of respecting all their human and fundamental rights, in conformity with the relevant international instruments. In this context, the Heads of State and Government recognize coca leaf chewing (akuliku, or chacchado) as an ancestral cultural manifestation of the people of the Andean region that must be respected by the international community and express interest in knowing the results of scientific research conducted by renowned institutes and universities of the international community on the properties of the coca leaf.

Part III South-South cooperation 107.  We reaffirm the Nairobi outcome document of the High-level United Nations Conference on South-South Cooperation, therefore recognize the importance and different history and particularities of South-South cooperation, and reaffirm our view of South-South cooperation as a manifestation of solidarity among peoples and countries of the South that contributes to their national well-being, their national and collective self-reliance and the attainment of internationally agreed development goals, including the Millennium Development Goals. South-South cooperation and its agenda have to be set by countries of the South and should continue to be guided by the

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principles of respect for national sovereignty, national ownership and independence, equality, non-conditionality, non-interference in domestic affairs and mutual benefit. 108.  We reaffirm the importance of strengthening South-South cooperation, especially in the current international economic environment, and reiterate our support for South-South cooperation as a strategy to sustain the development efforts of developing countries and as a means of enhancing their participation in the global economy. We reiterate the position of the Group that South-South cooperation is a complement to, rather than a substitute for, North-South cooperation and reaffirm that South-South cooperation is a collective endeavour of developing countries based on the principle of solidarity and premises, conditions and objectives that are specific to the historic and political context of developing countries and to their needs and expectations, and that as such, South-South cooperation deserves its own separate and independent promotion, as reaffirmed in the Nairobi outcome document. In this context, we stress that South-South cooperation and its agenda must be driven by the countries of the South. As such, South-South cooperation, which is critical for developing countries, requires long-term vision and a global institutional arrangement, as envisioned by the Second South Summit. 109.  We welcome the convening of the High-level Panel of Eminent Personalities of the South in Natadola, Fiji, from 7 to 9 May 2013, in accordance with the relevant mandate of the second South Summit. We also welcome the Panel’s conclusions and recommendations on the future landscape of South-South cooperation as an important contribution to the further development of the Development Platform for the South. We reiterate the framework and principles of South-South cooperation first endorsed by the Ministers for Foreign Affairs of the Group of 77 at their 32nd annual meeting, held in New York on 26 September 2008, which the Panel also used as a basis for their discussions. 110.  We welcome the conclusion of the third round of the Global System of Trade Preferences, which is a tool to promote and strengthen South-South trade integration, and call upon more developing countries to participate in the Global System. 111.  We also note and welcome the increase in regional cooperation initiatives that concretely manifest South-South cooperation and integration in various areas, such as finance, banking, trade, health care and food production. We hope that these initiatives will benefit not only the participants of the regional programmes but also other developing countries. We call for further initiatives in the future, as well as concrete ways in which developing countries can share experiences and good practices so as to spread these South-South initiatives. 112.  We encourage our countries to exchange experiences and best practices with regard to the equal access by all to basic services. 113. We stress that the High-level Committee on South-South Cooperation of the General Assembly is the central multilateral policymaking body in the United Nations system to review and assess global and system-wide progress and support for South-South development cooperation, including triangular cooperation, and to provide overall guidance on future directions. 114.  We also stress that South-South cooperation, as an important element of international cooperation for development, is not a substitute for, but is rather a complement to, North-South cooperation and its agenda has to be set by countries of the South. We support the integration of South-South and triangular cooperation in the policies and strategic framework of funds and programmes of the United Nations system, as well as its strengthening through the system-wide provision of additional resources, including through financial and human resources to the United Nations Office for South-South Cooperation, and recognize that the Office, currently hosted by the United Nations Development Programme (UNDP), constitutes a separate entity with a distinct legal nature, entrusted with the coordination on a global and United Nations system-wide basis for promoting and facilitating initiatives related to South-South cooperation for development.

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115. In this regard, we request the establishment of a more formalized and strengthened inter-agency mechanism for the United Nations Office for South-South Cooperation, with a view to encouraging joint support for South-South and triangular initiatives, as well as sharing information on development activities and results achieved by various funds, agencies and organizations in support of South-South and triangular cooperation. 116.  We also call upon the United Nations development system to promote transfer of technologies from developed countries for the benefit of developing countries to address issues of poverty eradication and sustainable development, and in this context encourage, when possible, technology cooperation among the countries of the South. 117.  We acknowledge the role played by the South Centre in supporting the Group of 77. We call upon the members of the Group to further support the Centre and call upon the Centre to expand its activities for the benefit of developing countries. We encourage organizations of developing countries, including the South Centre, to come up with ideas and suggest action plans to further operationalize South-South cooperation.

Part IV Global challenges Global partnership for development 118.  We stress the need for a new and stronger commitment by developed countries to international cooperation aimed at supporting the fulfilment of the development aspirations of developing countries. As part of the Millennium Development Goals, a commitment was made to a global partnership for development, which was the international cooperation dimension of the Millennium Development Goals framework. However, we note with concern the significant shortfall in the partnership under the Goals, which contributed to the lack of achievement of many goals and targets. We therefore call for the urgent implementation of all commitments under the global partnership for development so as to overcome the gaps identified in the reports of the Millennium Development Goals Gap Task Force. 119.  We also call upon leaders of the developed countries to agree and commit to a new phase of international cooperation through a strengthened and scaled-up global partnership for development, which should be the centrepiece and anchor for both the sustainable development goals and the post-2015 development agenda. Such an enhanced global partnership should include the issues of providing financial resources to developing countries, official development assistance, debt relief and debt restructuring, trade, technology transfer and greater participation of developing countries in global economic governance.

Official development assistance 120.  We reaffirm that official development assistance remains the main source of international financing for many developing countries and that it is essential as a catalyst for development, facilitating the achievement of national development objectives, including the unfinished business of the Millennium Development Goals, the sustainable development goals and the post-2015 development agenda, in accordance with paragraph 246 of the outcome document of the United Nations Conference on Sustainable Development (‘The future we want’). 121.  We stress that developed countries must meet and scale up their existing official development assistance commitments and targets made, inter alia, in the United Nations Millennium Declaration, the Monterrey Consensus, the 2005 World Summit outcome, the Doha Declaration on Financing for Development and in relevant forums. An enhanced predictable and sustainable

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flow of official development assistance is essential to meet the regular development challenges as well as the new and emerging challenges in developing countries, in particular in least developed countries. We recall the unfulfilled commitment made by developed countries at the meeting held in Gleneagles, United Kingdom of Great Britain and Northern Ireland. 122.  We urge the developed countries to fulfil their commitment to provide 0.7 per cent of gross national income for official development assistance for developing countries as well as to achieve the target of 0.15 to 0.20 per cent of gross national income for official development assistance to the least developed countries and to increase the target to 1 per cent of gross national income by 2030. We express our deep concern that official development assistance commitments remain unfulfilled. 123.  The global financial and economic crisis cannot be an excuse to avoid fulfilling existing aid commitments by developed countries and to make further commitments. An effective response to the economic crisis requires timely implementation of existing aid commitments and an urgent and unavoidable need for donors to fulfil them. We therefore call upon developed countries collectively to fulfil their official development assistance commitments and to raise overall levels further, keeping in mind that the developing countries will require new, additional and sustainable financial resources to a significant extent and amount in order to implement a wide range of development activities. 124.  We stress the need for ensuring new and additional financial support to developing countries as a key means of implementation for achieving the Millennium Development Goals and the forthcoming sustainable development goals. Financial assistance should be made available without conditionalities, since development strategies should be country-led and take into account the specific conditions, needs and priorities of developing countries. It should be based on the principle of common but differentiated responsibilities, with North-South cooperation at its core and South-South and triangular cooperation as a useful complement. 125.  We stress that official development assistance is a key source for financing the development of developing countries that should be used in accordance with their national developmental priorities without conditionalities, and express our deep concern about the attempt made by donor countries, outside United Nations forums, to redefine official development assistance by including other sources of financing that are not linked or related to the development of developing countries, with the objective of disguising the drop in official development assistance flows not based on their agreed commitments, which are still pending fulfilment.

External debt 126.  We are concerned that, with the global economic crisis, the economies of increasing numbers of developing countries are being affected and that some countries are becoming more vulnerable to new external debt problems or even crises. Addressing the external debt problems of developing countries is thus an important part of international cooperation and the enhanced global partnership for development. 127.  We are of the view that debt crises tend to be costly and disruptive and are usually followed by large cuts in public spending and a decline in economic growth and employment. These crises affect developing countries more deeply and those that are heavily indebted are unable to return to the path of growth without international assistance. We recognize the importance of debt relief, including debt cancellation, debt restructuring, debt moratorium and debt audit procedures. Debt restructuring processes should have as their core element a determination of real payment capacity so that they may not adversely affect economic growth and the fulfilment of the unfinished business of the Millennium Development Goals, the sustainable development goals and the post-2015 development agenda. In this regard, we reiterate the urgent need for the international community

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to examine options for an effective, equitable, durable, independent and development-oriented international debt resolution mechanism, and call upon all countries to promote and contribute to the discussions within the United Nations and other appropriate forums with that objective. 128.  We also recall that sovereign debt management has been a crucial issue for developing countries in past decades and recent years. Recently, a new concern has emerged relating to the activities of vulture funds. Recent examples of the actions of vulture funds in international courts have revealed their highly speculative nature. Such funds pose a risk to all future debt-restructuring processes, both for developing and developed countries. We therefore stress the importance of not allowing vulture funds to paralyse the debt-restructuring efforts of developing countries, and that these funds should not supersede a State’s right to protect its people under international law. 129.  We express serious concern about the substantial increase in the financial stability risks of many developed economies and, in particular, their high structural fragilities in financing sovereign debt created as a result of transferring private risk to the public sector. In this regard, we call for urgent and coherent solutions to reduce sovereign risk in developed economies in order to prevent contagion and to mitigate its impact on the international financial system and on developing countries. 130.  We stress the need to ensure that the economic and monetary policies implemented by developed countries do not affect global aggregate demand and liquidity, owing to the objective of finding surplus in their balance of payments, with negative results in the reduction of global revenues in developing countries.

Reforming the global financial architecture 131.  We affirm the need for reform of the international financial architecture so that we have a financial and monetary system that reflects the realities of the twenty-first century, including a properly regulated international financial sector that reduces and discourages speculative investment, in order for capital markets to be mobilized to achieve sustainable development and play a constructive role in the global development agenda. 132.  We also note the continuation of fundamental problems in the global financial and monetary system, including lack of regulation to ensure financial stability, the problems of the reserve currencies, the volatility in currency exchange rates, the speculative and large cross-border flows of capital and the insufficiency or unavailability of liquidity for developing countries in need of financial resources that face foreign exchange shortfalls or require resources to generate sustainable growth and development. We call for a programme of reforms, with full voice, representation and participation of developing countries, to address these problems. 133.  We note with concern that financial deregulation and financial liberalization have given rise to the massive expansion of speculative financial flows and derivatives trading. The financial and economic crisis of 2008 has illustrated that international finance has created an economy of its own, which has become increasingly disconnected from the real economy of production, direct investment, job creation and wage growth. The adverse effects of financialization include volatile capital flows, excessive commodity and food price fluctuations, rapid shifts in exchange rates and boom-bust cycles of financial crisis and economic recession. 134.  We urge that the reform process of the governance structure of the Bretton Woods institutions be finalized as soon as possible and be much more ambitious, and that an accelerated plan be established for further reforms in representation, participation and parity of voting power for developing countries in the decision-making process within the Bretton Woods institutions and in all discussions on international monetary reform and in the operation of the new arrangements for special drawing rights in the International Monetary Fund (IMF), on the basis of

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criteria that truly reflect its mandate in the field of development and with the participation of all stakeholders in an equitable, transparent, consultative and inclusive process. In this regard, we call on the General Assembly to launch a process to reform the international financial and monetary system. 135.  We support exploration of the establishment of a United Nations intergovernmental mechanism under the General Assembly, as an entity responsible for monitoring the performance of the global economic and financial system in a comprehensive and sustainable manner. It is important that this mechanism monitor the impact of certain international financial flows and policies that are systemically important to prevent the spread of economic and financial crisis among countries.

Reforming the credit rating system 136. We stress that international efforts to reregulate the financial sector should include the credit rating agencies. Governments should limit their regulatory reliance on credit rating agencies and reform legal regimes to hold them liable for negligent behaviour in order to suppress conflicts of interest and ensure integrity, accountability and transparency. 137.  We also stress the need for a more transparent international credit rating system that takes fully into account the needs, concerns and peculiarities of developing countries, especially heavily indebted developing countries. In this regard, we express concern about the extent of soundness of the methodology used by the major credit rating agencies. We emphasize that greater transparency and competition among rating agencies is necessary to avoid oligopolistic tendencies and their negative effects. We reiterate that an inadequate assessment of the solvency of debtors has the potential to cause or exacerbate crises, rendering the financial system more vulnerable. It is necessary to continue the discussions at the United Nations and other venues on the role of credit rating agencies, with a view to proposing concrete policies aimed at reducing dependency on them by enhancing their supervision and increasing transparency and competition through the establishment of independent assessment mechanisms.

Global economic governance 138.  We affirm that the current world financial and economic crisis and its consequences for development have exposed the gaps and failures in global economic governance, including within the international financial institutions, and the urgent need for a global, universal and integrated response by the international community. We note with deep concern that seven years after the outbreak of the global crisis, there has been little progress made to strengthen the systemic, regulatory and structural aspects of the global financial system. Moreover, the lack of participation by developing countries in general in global economic issues and governance persists; this is a matter of grave concern because the workings of the global system affect all countries, and this democratic deficit has even more serious consequences for developing countries when the global economy is slowing down or in recession. 139.  We strongly call on the international community to redress the democratic deficit in global economic governance and provide developing countries their rightful place and participation in the governance and decision-making of all the institutions and forums where discussions and decisions are taken on global economic and financial issues. 140.  We affirm that efforts to reform the international financial architecture should therefore be seriously strengthened, should be internationally coordinated and should lead to the full participation of developing countries in international financial and economic decision-making and norm-setting. We call for comprehensive reform of the Bretton Woods institutions, including

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enhancement of the voting powers of developing countries in a time-bound manner, in order to enable greater equity between developed and developing countries and to eliminate all types of conditionalities tied to aid. 141.  We call for the urgent completion of the 2010 IMF quota formula reform in order to ensure that the quotas and governance of IMF better reflect the relative weight of emerging and developing countries in the global economy. However, the redistribution of voting rights to reflect reality alone will not resolve the structural problems of financial instability and the lack of liquidity for developing countries in need to generate the necessary sustainable growth and development. Also the reform should encompass liquidity creation, including improvement in the special drawing rights for developing countries. IMF must provide more comprehensive and flexible financial responses to the needs of developing countries, without imposing procyclical conditionalities and respecting their need for adequate policy space. Furthermore, leading personnel of the Bretton Woods institutions must be designated on the basis of their individual merits, through an open and fair process of selection. As long as IMF does not reflect the new realities in the global economy and its Director General keeps being designated through a process that lacks any transparency, its legitimacy will remain questionable. 142.  We stress the need to hold a follow-up international conference on financing for development in 2015 to review the implementation of the Monterrey Consensus and the Doha Declaration with a view to contributing to the post-2015 development agenda process. 143.  While respecting the purposes and the principles of the Charter of the United Nations and the intergovernmental nature of the Organization, we recognize the important role of the United Nations in providing an intergovernmental forum, including through international conferences and summits for universal dialogue and consensus on global challenges with the due participation of relevant stakeholders. 144.  We reaffirm the central position of the General Assembly as the chief deliberative policymaking and representative organ of the United Nations, as well as the role of the Assembly in global matters of concern to the international community, as set out in the Charter of the United Nations.

Strengthening and reorienting the United Nations 145.  We reaffirm our commitment to increase the participation of developing countries in the decision-making bodies of multilateral institutions in order to render them more consistent with the current geopolitical reality. 146.  We stress the importance of the central role of the United Nations in global economic governance, which aims at enhancing the global partnership for development with a view to creating a supportive and enabling global environment for the attainment of sustainable development and to ensuring financial and economic stability. In this context, the General Assembly and a strengthened Economic and Social Council could both act to mitigate the impact of the international financial and economic crisis and to ensure the right of developing countries to policy space for sustainable development. 147.  We stress that strengthening of the United Nations and its role in international cooperation for development is essential to respond to current and future challenges and opportunities emanating from the process of globalization. We recognize that the United Nations needs to improve its capabilities and capacities to fully implement its mandates and to ensure the effective delivery of its programmes in the social and economic development fields. In this regard, we urge the Secretary-General to further strengthen the development pillar of the whole Organization, including its Development Account.

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148.  We urge developed countries to show real political will, so that in the process of reform of the United Nations, including the strengthening and revitalization of the General Assembly as an emblem of global sovereignty, it can improve its capabilities and capacities to fully implement its mandates and ensure the effective delivery of its programme in the social, environmental and economic development fields. 149.  We stress that strengthening of the United Nations and its role in international cooperation for development is essential to respond to current and future challenges and opportunities emanating from the process of globalization. Within this context, we express our concern over the growing imbalance between assessed and voluntary contributions in the proposed programme budgets of the Organization. We also stress that the level of resources to be approved by the General Assembly of the United Nations must be commensurate with all mandated programmes and activities in order to ensure their full and effective implementation. 150.  We reaffirm that any United Nations Secretariat and management reform efforts, including on the budget process, must not seek to change the intergovernmental, multilateral and international nature of the Organization, but must strengthen the ability of Member States to perform their oversight and monitoring role, and that prior consideration and approval by Member States is essential in all cases where the measures to be implemented fall under the prerogatives of the General Assembly, and in this regard we recall resolution 66/257. We also reiterate the need to increase the representation of developing countries and the representation of women from developing countries, in particular at the senior levels, and to improve geographic distribution in the Secretariat and transparency in the recruitment process. 151.  We call for continued efforts to reform the United Nations, including the revitalization of the General Assembly and a comprehensive reform of the Security Council, which correspond to the collective interests of developing countries. 152.  We express concern over budget cuts that have a negative impact on the implementation of mandates approved by the intergovernmental bodies of the United Nations, particularly in the development pillar, and the growing imbalance between assessed and voluntary contributions. 153. We call for greater transparency, accountability and oversight by Member States with respect to voluntary and extrabudgetary resources. It is important that resources from voluntary and extrabudgetary contributions be used to support all priorities agreed to by Member States and that they be used strictly in accordance with the intergovernmentally agreed financial regulations and rules of the Organization. 154.  We underscore the central role of the United Nations in global economic governance, as a truly universal and inclusive multilateral forum with unquestioned legitimacy, convening power and normative frameworks. We emphasize the important role that the General Assembly should play in the appointment of the Secretary-General of the United Nations upon the recommendation of the Security Council in accordance with Article 97 of the Charter. In this regard, we stress that the process of selection of the Secretary-General should be inclusive of all Member States, as well as more transparent. Furthermore, we believe that regional rotation, as well as respect for equitable geographical representation, should be taken into account during selection and appointment processes. 155.  We also recognize the importance of increasing the number of nationals from developing countries at the senior level in the Secretariat, in particular in the Senior Management Group.

Technology transfer, science and innovation for development 156.  We believe that science, knowledge and technology integration and innovation should be instruments for promoting peace and people’s sustainable development, well-being and happiness and that they should thus be oriented towards the promotion of the empowerment of the

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poor, the eradication of poverty and hunger, and the promotion of solidarity and complementarity among and within peoples so that they may live well in harmony with Mother Earth. 157.  We express our concern that science, technology and innovation can be abused as instruments to limit and undermine countries’ sovereignty, sustainable development and poverty eradication. 158.  We call for an end to the use of information and communication technologies, including social networks, in contravention of international law and in detriment to any State, in particular members of the Group of 77 or their citizens. 159.  We reaffirm that technology plays a key role in addressing development challenges across a wide scope of issues, including in food and agriculture, water and sanitation, climate change, energy, industry, chemicals and waste management. Technology transfer, technology integration and the development and promotion of endogenous technologies are important for developing countries to engender economic growth in an environmentally sustainable manner. We call on developed countries to implement their commitments to transfer technology to developing countries and provide access to technology on favourable terms, including concessional and preferential terms, to enable the developing countries to shift to a more sustainable development path. 160.  It is imperative that developed countries recommit themselves to the objective of technology transfer as one of the major components, along with finance, capacity-building and trade, of provision of the means of implementation towards sustainable development for developing countries, and to take actions to bridge the technological gap. We call for the early establishment by the United Nations system of a technology facilitation mechanism that promotes the development, transfer and dissemination of clean and environmentally sound technologies, including cleaner fossil fuel technologies. 161.  We call for regulations and policies on intellectual property to be placed within a development framework, whereby intellectual property rights are oriented towards the promotion of balanced social, economic and environmental development. In this regard, we support the measures taken by developing countries to promote the implementation of the World Intellectual Property Organization (WIPO) Development Agenda recommendations of 2007. We reiterate our call, made in paragraph 8 (vii) of the 2005 Doha Plan of Action adopted at the second South Summit of the Group of 77, for WIPO to continue to include in its future plans and activities, including legal advice, a development dimension that includes promoting development and access to knowledge for all, pro-development norm-setting, harmonization with the Convention on Biological Diversity rules, establishing development-friendly principles, and the transfer and dissemination of technology. 162.  We also reiterate that the TRIPS Agreement of WTO contains flexibilities, and that it is the right of developing States members of WTO to make use of such flexibilities, as confirmed in the 2001 Declaration on the TRIPS Agreement and Public Health of WTO, and we support the use of these flexibilities in our countries, with the aim of promoting health, education and economic and social development. We note with great interest and appreciation that some developing countries have successfully made use of some TRIPS flexibilities to promote the use of generic medicines, which are lower in cost and thus greatly increase access to medicines at affordable prices. We reject attempts by any developed country or business interest to pressure developing countries not to exercise their right to make use of TRIPS Agreement flexibilities for social and development purposes and express our solidarity with those developing countries that have come under such pressure. 163.  We stress the need to protect the knowledge of developing countries, indigenous peoples and local communities with regard to genetic resources, biodiversity and traditional knowledge, and especially from continuing attempts by persons or companies to patent such resources and

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knowledge without the approval of the countries, indigenous peoples and communities concerned. 164.  We call for intensified efforts by our negotiators and policymakers to establish legal mechanisms, internationally or nationally, to prevent biopiracy by requiring disclosure of the country of origin and proof of benefit-sharing arrangements by applicants for such patents. We also call for strong provisions and effective mechanisms for technology transfer, including appropriate treatment of intellectual property, in the international climate change regime in the United Nations Framework Convention on Climate Change.

Trade 165.  We believe that trade in the context of appropriate policies and rules can be an important tool for economic development. Because of the continuing global financial and economic crisis, there has been a decline in trade growth, which has had a severe impact on many developing countries as the result of the fall in export revenues, trade barriers and trade-distorting subsidies in developed countries, and restricted access to trade finance and reduced investment in production diversification and in the promotion of exports and remains a matter of concern. It is essential to establish and uphold a universal, fair, rules-based, open, pro-development, non-discriminatory, inclusive and equitable multilateral trading system that contributes to growth, sustainable development and employment, particularly for developing countries. 166.  We call for a timely and successful conclusion to the Doha Round of multilateral trade negotiations, which must fully respect its development mandate and place the needs and priorities of developing countries at its centre. Following the WTO Ministerial Conference in Bali in 2013, we call for an inclusive and transparent negotiating process and the prioritizing of the interests and issues of developing countries in the post-Bali programme. We view with concern that some developed countries members of WTO are more interested in gaining market access to developing countries, while they are themselves not willing to take adequate measures to eliminate or reduce protectionism in their agriculture sector or to provide more market access to developing countries. 167. We reiterate that developed countries should provide effective, sustainably financed trade-related technical assistance and capacity-building tailored to the specific needs and constraints of developing countries, including through the Enhanced Integrated Framework of WTO, in order to address the supply-side and trade-related infrastructure and productive capacity constraints of least developed countries. Likewise, it is crucial for developing countries to have access to financial and technical assistance for capacity-building in order to implement effectively the new WTO Trade Facilitation Agreement. In this context, special focus must be given, among other elements, to those projects and programmes oriented towards developing and strengthening corridors for reducing costs in international transit. 168.  We emphasize the importance of facilitating accession to WTO. The accession process should be accelerated without political impediment and in an expeditious and transparent manner for developing countries, in full compliance with WTO rules. This would contribute to the rapid and full integration of developing countries into the multilateral trading system. 169.  We believe that trade rules, in WTO or in bilateral and regional trade agreements, should enable developing countries to have sufficient policy space so that they can make use of policy instruments and measures that are required for their economic and social development. We reiterate our call for the effective strengthening of the special and differential treatment and less than full reciprocity principles and provisions in WTO so as to broaden the policy space of developing countries and enable them to benefit more from the multilateral trading system. We also call for bilateral trade and investment agreements involving developed and developing countries to have

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sufficient special and differential treatment for developing countries to enable them to retain adequate policy space for social and economic development.

Migration 170.  We consider that the nexus between migration and development must be addressed comprehensively, mindful of the economic, social and environmental dimensions and include a cultural and human perspective. We recognize the need to address this issue through international, regional or bilateral cooperation and dialogue and through a comprehensive, balanced, coordinated and coherent approach, recognizing the role and responsibilities of countries of origin, transit and destination in promoting and protecting effectively the human rights and fundamental freedoms of all migrants and their families, especially those of women and children, regardless of their migration status. 171.  We note that despite progress in discussion and dialogue and cooperation at the international level, migration remains inadequately reflected in development frameworks, development agendas and sectoral policies at both the national and global levels. Therefore, we are exploring the possibility of a legally binding convention on migration and development to improve the governance of international migration and to protect and promote the human rights of migrants and their contribution to development, regardless of their migratory status. 172.  We acknowledge the important role that migrants play as partners in the development of origin, transit and destination countries, and the need to enhance the protection of all human rights and fundamental freedoms of migrant workers and their families. We also stress the need to continue to consider the recognition of the qualifications and competencies of migrants and their access to low-cost financial services for remittances.

Climate change 173.  We affirm that the United Nations Framework Convention on Climate Change is the primary international, intergovernmental forum for negotiating the global response to climate change. In this regard, we stress that the international response to climate change must fully respect the principles, provisions and ultimate objective of the Convention, in particular the principles of equity and of common but differentiated responsibilities and respective capabilities. 174. We reiterate that fulfilling the ultimate objective of the United Nations Framework Convention on Climate Change will require strengthening the multilateral, rules-based regime under the Convention and therefore further reaffirm the importance of continuing the negotiations on climate change under the Convention in accordance with its principles and provisions and of adopting, in 2015, a protocol, another legal instrument or an agreed outcome with legal force under the Convention applicable to all parties. 175.  We recall that climate change is one of the most serious global challenges of our times. We underscore the fact that developing countries continue to suffer the most from the adverse impacts of climate change, the increasing frequency and intensity of extreme weather events and the impact of response measures, even though they are the least responsible for climate change. Accordingly, we call for developed countries to take the lead in responding to climate change. Climate change threatens not only the development prospects of developing countries and their achievement of sustainable development but also the very existence and survival of countries and societies. 176.  We recognize that low-lying and other small island countries, developing countries with low-lying coastal, arid and semi-arid areas or areas liable to floods, drought and desertification, and developing countries with fragile mountainous ecosystems are particularly vulnerable to the adverse effects of climate change.

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177.  We reaffirm the importance of implementing the Warsaw international mechanism for loss and damage associated with climate change impacts adopted at the nineteenth session of the Conference of the Parties to the United Nations Framework Convention on Climate Change, held in Warsaw from 11 to 23 November 2013 (decision 2/CP.19). We also recognize the urgency of taking concrete steps during this year, ahead of the twentieth session of the Conference of the Parties, to be held in Lima, for the immediate operationalization of the mechanism. 178.  We stress that the developed countries, given their historical responsibility, need to take the lead in addressing this challenge in accordance with the principles and provisions of the United Nations Framework Convention on Climate Change, particularly the principles of common but differentiated responsibilities and respective capabilities and equity, and provide financial and technological support to developing countries in a transparent, adequate and predictable manner under a modality of monitoring, reporting and verification. 179.  We reiterate that the extent to which developing countries will effectively implement their commitments under the United Nations Framework Convention on Climate Change will depend on the effective implementation by developed countries of their commitments under the Convention related to financial resources and transfer of technology and will take fully into account that economic and social development and poverty eradication are the first and overriding priorities of developing countries. 180.  We stress the need to urgently close the ambition gap, and express concern about the lack of fulfilment of commitments by developed countries. In addressing this gap, the focus must not be limited to mitigation only but also address gaps relating to finance, technology and support for capacity-building, balanced with a focus on adaptation to climate change. We emphasize that developed countries must take robust and ambitious mitigation commitments, with ambitious quantitative targets for limiting and reducing emissions, as required by science and mandated by the United Nations Framework Convention on Climate Change. 181.  We reiterate the urgency of expediting the process of operationalizing the Green Climate Fund and for its early capitalization, and call upon developed countries to meet the goal of mobilizing $100 billion each year by 2020 to address the needs of developing countries. 182.  We affirm our support for the success of the meeting to be held in Venezuela ahead of the twentieth session of the Conference of the Parties, to be held in Lima, and reaffirm the need to achieve progress in negotiations towards an ambitious, balanced, fair and effective agreement under the United Nations Framework Convention on Climate Change, in accordance with its principles and provisions, to be agreed in 2015 and to enter into force in 2020 and that actually contributes to the stabilization of the climate system.

Biological diversity 183. We reaffirm the recognition contained in the outcome document of the United Nations Conference on Sustainable Development about the severity of global biodiversity loss and degradation of ecosystems, and emphasize that these undermine global development, affecting food security and nutrition, the provision of and access to water, and the health of the rural poor and of people worldwide, including present and future generations. This highlights the importance of the conservation of biodiversity, enhancing habitat connectivity and building ecosystem resilience. 184.  We recognize the importance of the role of the collective actions of the indigenous people and local communities for the protection, use and conservation of biodiversity. We also reaffirm that the traditional knowledge, innovations and practices of indigenous peoples and local communities make an important contribution to the conservation and sustainable use of biodiversity and that their wider application can support social well-being and sustainable livelihoods. We

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further recognize that indigenous peoples and local communities are often most directly dependent on biodiversity and ecosystems and thus are often most immediately affected by their loss and degradation. 185. We welcome the important outcomes of the eleventh meeting of the Conference of the Parties to the Convention on Biological Diversity, held in Hyderabad, India, in October 2012, especially the commitment to doubling biodiversity-related international financial flows to developing countries by 2015 and at least maintaining this level until 2020 to contribute to the achievement of the Convention’s three objectives. We also call upon the parties to the Convention to review progress made in this context at the twelfth meeting of the Conference of the Parties towards adopting a final target for resource mobilization. 186.  We welcome the realization of the joint briefing held on 30 October 2013 by the United Nations Environment Programme, WIPO, the United Nations Educational, Scientific and Cultural Organization, UNDP, UNCTAD, the secretariat of the International Treaty on Plant Genetic Resources for Food and Agriculture and the secretariat of the Convention on Biological Diversity on the implementation of the objectives of the Convention, including actions taken to promote access to genetic resources and the fair and equitable sharing of benefits arising from their utilization and associated traditional knowledge. We note that similar interactions should be encouraged, recognizing the respective mandates of the organizations involved, and call upon all Member States, in particular developed countries, to speed up the process for the ratification of the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from Their Utilization to the Convention on Biological Diversity. 187.  We note with deep concern the unprecedented increase in poaching and illegal trade in wildlife and their products in all regions, in particular of elephant tusks and rhinoceros horns. We stress that this trend is detrimental to ecological balance, promotes crime within and across borders and must be halted with a sense of urgency to avoid reversing decades of conservation gains. We therefore strongly condemn poaching and crimes related to illicit trafficking in wildlife, and agree to enhance international cooperation in accordance with the Convention on International Trade in Endangered Species of Wild Fauna and Flora and other relevant agreements to curb such practices, address the demand and supply of wildlife and its products and increase the capacity of communities affected by such trafficking to pursue sustainable livelihood opportunities.

Forests 188.  We highlight the social, economic and environmental benefits of forests to people and the contributions of sustainable forest management to the objective of sustainable development. We support cross-sectoral and cross-institutional policies promoting sustainable forest management (United Nations Conference on Sustainable Development), and recognize the importance of the holistic, integral and alternative approaches for the sustainable management of forests developed under the climate change negotiations. 189.  We note the outcome of the tenth session of the United Nations Forum on Forests, held in Istanbul, Turkey, from 8 to 19 April 2013, and underscore the importance of the four global objectives on forests for the international community as a whole and in particular for developing countries. The fourth global objective is especially relevant for developing countries since it identifies the need to reverse the reduction in official development assistance and to mobilize new and additional financial resources for the implementation of sustainable forest management. In fulfilling the fourth global objective, it is essential to respect the principle of common but differentiated responsibilities between developed and developing countries. In this regard, we urge developed countries to exercise strong political will and flexibility to contribute to the achievement of sustainable forest management.

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190.  We call for the establishment of a new global forest fund in line with the principles of sustainable development. We consider that this is necessary in order to channel the funds needed by developing countries to sustainably manage their forests.

Desertification, land degradation and drought 191.  We reaffirm that desertification, land degradation and drought represent serious concerns for developing countries. International action is, therefore, urgently required to address these challenges. We emphasize the great importance of the United Nations Convention to Combat Desertification, particularly in Africa, stressing that desertification, land degradation and drought undermine the three dimensions of sustainable development. We reiterate that addressing desertification, land degradation and drought enables countries to deal with several global policy challenges, such as food security, adaptation to climate change and forced migration. In this context, we note the eleventh session of the Conference of the Parties to the United Nations Convention to Combat Desertification, held from 16 to 27 September 2013 in Windhoek. 192.  We reiterate the need for cooperation through the sharing of climate and weather information and forecasting and early warning systems related to desertification, land degradation and drought, as well as to dust storms and sandstorms, at the global, regional and subregional levels. In this regard, we invite States and relevant organizations to cooperate in the sharing of related information and forecasting and early warning systems.

Oceans and seas 193.  We stress the importance of the conservation and sustainable use of the oceans and seas and of their resources for sustainable development, including through their contributions to poverty eradication, sustained economic growth, food security and the creation of sustainable livelihoods and decent work, while at the same time protecting biodiversity and the marine environment and addressing the impacts of climate change. We therefore commit to protect and restore the health, productivity and resilience of oceans and marine ecosystems, to maintain their biodiversity, enabling their conservation and sustainable use for present and future generations, and to deliver on all three dimensions of sustainable development.

Internet governance, including the right to privacy 194.  We view with dismay that some countries have recently been undertaking extensive, arbitrary and unlawful surveillance and/or interception of communications, including extraterritorial surveillance and/or interception of communications as well as the collection of personal data, including on a mass scale, on people and institutions in other countries, including on political leaders, senior officials and various government departments and agencies, as well as citizens. We call for the ending of such activities, which violate the human right to privacy of individuals and have a negative impact on the relations between countries. In this regard, we all call for intergovernmental entities to discuss and review the use of information and communications technologies to ensure that they fully comply with international law, including human rights law, in accordance with the purpose and principles of the Charter of the United Nations. 195.  We welcome the NETmundial Global Multistakeholder Meeting on the Future of Internet Governance held in São Paulo, Brazil, on 23 and 24 April 2014, and take note of its outcome document. 196.  We emphasize the important opportunities provided by information and communications technologies, including social media and related infrastructure, as a vehicle to promote better

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understanding among nations and the achievement of internationally agreed upon development objectives. 197.  We recognize at the same time that the illegal use of information and communications technologies has a negative impact on nations and their citizens. In this regard, we express our strong rejection of the use of information and communications technologies in violation of international law, including the right to privacy, and of any action of this nature directed against any Member State, in particular a State member of the Group of 77. 198.  We further underscore the importance of ensuring that the use of such technologies should be fully compatible with the purposes and principles of the Charter of the United Nations and international law, in particular the principles of sovereignty, the non-interference in internal matters and the internationally recognized rules of civil coexistence among States. 199.  In this regard, we take note with concern of the information published in international media about the objectives of the so-called ‘ZunZuneo’ network, which would constitute an illicit use of new information and communications technologies. 200.  We therefore reiterate our commitment to intensifying international efforts directed at safeguarding cyberspace and promoting its exclusive use for the achievement of peaceful purposes and as a vehicle to contribute to both economic and social development, and highlight that international cooperation, in full respect of human rights, is the only viable option for fostering the positive effects of information and communications technologies, preventing their potential negative effects, promoting their peaceful and legitimate use and guaranteeing that both scientific and technological progress is directed at preserving peace and promoting the welfare and development of our societies.

Millennium Development Goals 201.  We express our commitment to strengthening efforts to achieve the Millennium Development Goals by 2015 and to taking a leading role in shaping the international development agenda during the post-2015 period. We call upon the international community to redouble all efforts for the accelerated achievement of the Goals by 2015 through concrete measures. 202.  We note the progress achieved so far in reaching the Millennium Development Goals but are concerned about the unevenness and gaps in achievement and about the vast socioeconomic and environmental challenges that remain in developing countries. We reiterate that the Goals remain critical for meeting the basic needs of people in developing countries, many of which are not on track to achieving them by 2015. 203.  We underscore the central role of the global partnership for development and the importance of Millennium Development Goal No. 8 in achieving all the Goals and that without substantial international support and systemic changes, several of the Goals will not be achieved in many developing countries by 2015. We call upon the international community to intensify its efforts to provide enhanced means of implementation to developing countries through a renewed global partnership based on the collective quest to eradicate poverty and deprivation.

Sustainable development and sustainable development goals 204.  We recall and reaffirm the statement made by world leaders in the outcome document of the United Nations Conference on Sustainable Development, ‘The future we want’, that poverty eradication is the greatest global challenge facing the world today and an indispensable requirement for sustainable development. 205.  We reiterate that eradicating poverty, changing unsustainable patterns of consumption and production, promoting sustainable patterns of consumption and production, and protecting and

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managing the natural resource base for economic and social development are the overarching objectives of and essential requirements for sustainable development. We also reaffirm the need to achieve sustainable development by promoting sustained, inclusive and equitable economic growth, creating greater opportunities for all, reducing inequalities, raising basic standards of living, fostering equitable social development and inclusion, and promoting integrated and sustainable management of natural resources and ecosystems that supports, inter alia, economic, social and human development while facilitating ecosystem conservation, regeneration and restoration and resilience in the face of new and emerging challenges. 206.  We stress that sustainable development goals should address and be focused on the integration of the three dimensions of sustainable development (economic, social and environmental) and be guided by the outcome document of the United Nations Conference on Sustainable Development, respecting all the Rio Principles and taking into account different national circumstances, capacities and priorities. 207.  We reaffirm that the outcome document of the United Nations Conference on Sustainable Development is the basis for the work of the Open Working Group of the General Assembly on Sustainable Development Goals. We underscore the importance for the sustainable development goals to build upon and complement the Millennium Development Goals in making progress towards the overarching objective of achieving poverty eradication. 208.  We stress that progress in realizing the Millennium Development Goals, the sustainable development goals and the post-2015 development agenda will depend on progress in creating a pro-development, international, enabling environment and delivering the relevant means of implementation, particularly in the areas of finance, trade, technology and capacity-building, to developing countries. 209.  We reaffirm that the guiding principles of the sustainable development goals must be based on all principles set out at the major United Nations summits and conferences in the social, environmental and economic fields, bearing in mind those set out in, among others, the Rio Declaration on Environment and Development, Agenda 21 and the Plan of Implementation of the World Summit on Sustainable Development, and those arising from the United Nations Conference on Sustainable Development (2012), the International Conference on Financing for Development (2002) and the World Summit for Social Development (1995), and be consistent with international law. The process and outcome of the Open Working Group of the General Assembly on Sustainable Development Goals should fully respect all the Rio Principles, in particular the principle of common but differentiated responsibilities. The sustainable development goals should contribute to the full implementation of the outcomes of all the major summits in the economic, social and environmental fields. 210.  We reaffirm the recognition that planet Earth and its ecosystems are our home and that ‘Mother Earth’ is a common expression in a number of countries and regions, and note that some countries recognize the rights of nature in the context of the promotion of sustainable development. We are convinced that in order to achieve a just balance among the economic, social and environment needs of present and future generations, it is necessary to promote harmony with nature. We call for a holistic, integrated approach to sustainable development, which may include, among others, the recognition by some countries of the principles mentioned above, to guide humanity to live in harmony with nature and lead to efforts to restore the health and integrity of the Earth’s ecosystems. 211.  We welcome the interactive dialogue of the General Assembly on Harmony with Nature, held on 22 April 2013, to commemorate International Mother Earth Day. At the event, different economic approaches were discussed in the context of sustainable development, to promote a more ethical basis for the relationship between humanity and Earth, as was the need to promote the sustainable use of natural resources, bearing in mind the importance of exploring the

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adoption and implementation of policies to build national developmental strategies that promote a better distribution of benefits, going beyond the mere production of raw commodities, pursuant to General Assembly resolution 67/214. 212.  We stress that the report of the Open Working Group of the General Assembly on Sustainable Development Goals must be the result of an inclusive intergovernmental process. Thus, we reaffirm our commitment to actively engaging in such negotiations. 213.  We underscore the need to define adequate means of implementation for each and every sustainable development goal, as well as the need for a dedicated sustainable development goal on the strengthened global partnership for sustainable development containing broader commitments on the means of implementation and international cooperation for sustainable development.

Post-2015 development agenda 214.  We reaffirm the centrality of a just, transparent and inclusive intergovernmental negotiation process in the establishment of the post-2015 development agenda, as decided at the special event towards achieving the Millennium Development Goals, held in 2013. We stress that this intergovernmental negotiation process will need to focus on its modalities and substantive aspects to arrive at a negotiated and agreed outcome document, taking fully into account the outcomes of the various follow-up processes mandated at the United Nations Conference on Sustainable Development, as well as of the major summits and conferences related to the social, economic and environmental fields. 215.  Recalling the statement made at the United Nations Conference on Sustainable Development that poverty eradication is the greatest global challenge and an indispensable requirement for sustainable development, we emphasize that poverty eradication must remain the central and overarching objective of the post-2015 development agenda. We strongly support the view that the post-2015 development agenda should reinforce the commitment of the international community to eradicate poverty by 2030. 216.  We underline the need for a coherent approach to the post-2015 development agenda, which should reinforce the commitment of the international community to poverty eradication and the integration of the three dimensions of sustainable development in a balanced manner with the contributions of the Open Working Group of the General Assembly on Sustainable Development Goals, the financing for development process, the Intergovernmental Committee on Experts for Sustainable Development Financing, the process to develop options for a United Nations technology facilitation mechanism and other relevant processes. 217.  We reaffirm that the post-2015 development agenda must fully adhere to the Rio Principles, in particular the principle of common but differentiated responsibilities. 218.  We underscore the importance of strengthening the global partnership for development, to be based on quantified and time-bound targets, consistent with Millennium Development Goal No. 8 and in accordance with the principle of common but differentiated responsibilities in the post-2015 development agenda. North-South cooperation remains the core of this partnership and South-South and triangular cooperation are a useful complement to North-South cooperation. Strengthened commitment from developed countries is therefore required to enhance international cooperation and scale up support for developing countries. We emphasize the need for developed countries to urgently fulfil the official development assistance commitments they have made, individually and collectively, including the target of allocating 0.7 per cent of their gross national product to official development assistance by 2015 and the target of allocating between 0.15 and 0.20 per cent of their gross national product to official development assistance for least developed countries. 219.  We emphasize that the post-2015 development agenda must meaningfully address issues of reform of the institutions of global economic governance in order to strengthen the voice and

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participation of developing countries in decision-making in these institutions. We also note that the global economic, financial and trading systems remain imbalanced, to the disadvantage of developing countries, and in this regard we stress the importance of identifying, in the post-2015 development agenda, the weaknesses and imbalances of these global systems and of proposing actions for improvements with the aim of supporting the development agenda and the programmes of developing countries. 220.  We affirm the need for a sound implementation mechanism for the post-2015 agenda to ensure development resources for the attainment of goals. In this regard, we call for the intensification of development financing, for the establishment and improvement of mechanisms of technology transfer and for the enhancement of efforts to build the capacities of developing countries. 221.  We call for a responsible accountability approach to be adopted on the question of partnerships involving the United Nations, particularly as regards participation of the private sector, civil society and philanthropic entities. In this regard, we reaffirm the need to enhance transparency, coherence and sustainability, as well as accountability to Member States, in United Nations partnerships, and stress the need to ensure that procedures exist for the consideration and approval of any such initiatives by Member States in the General Assembly, in order to preserve the intergovernmental nature of the United Nations. 222.  We emphasize that the post-2015 development agenda should be an agenda for development, and in this context it is important to advance economic, social and environmental development in a comprehensive, balanced and coordinated manner. This agenda should be broader than that of the Millennium Development Goals and aim to include areas, issues and groups of populations that are key to achieving sustainable development. 223.  We also stress the importance for the post-2015 development agenda, if it is to be global in nature and universally applicable to all, to fully respect the development policy space of developing countries to make use of policy tools and measures that are required to implement their policies for poverty eradication and other developmental plans and programmes. We also stress that the post-2015 development agenda should promote rapid, sustained and inclusive economic growth in developing countries as a key requirement for eradicating poverty and hunger and reducing inequalities within and among countries.

Part V Particular needs of developing countries in special situations 224.  We recall the special needs of Africa, the only continent currently not on track to achieve the internationally agreed development goals, including the Millennium Development Goals. We recognize that, while economic growth is returning, there is a need to sustain the recovery, which is fragile and uneven, to face the ongoing adverse impacts of multiple crises on development and the serious challenges these impacts pose to the fight against poverty and hunger, which could further undermine the achievement of the internationally agreed development goals, including the Goals in Africa. 225.  We express profound concern about the fact that the commitment to doubling aid to Africa by 2010, as articulated at the summit of the Group of Eight held in Gleneagles, United Kingdom, was not entirely reached, and in this regard we stress the need to make rapid progress in order to fulfil that and other donors’ commitments to increase aid through a variety of means, including the provision of new additional resources, the transfer of technology and the building of capacity of African countries, and to support their sustainable development. We call for continued support for Africa’s development initiatives, including Agenda 2063 (a continental strategic vision and priority framework for socioeconomic development), the New Partnership for Africa’s

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Development and the Programme for Infrastructure Development in Africa. On the other hand, we welcome the support that some developing countries have extended to Africa through South-South and triangular cooperation programmes. 226.  We express concern for the situation in the least developed countries, which continues to deteriorate as a consequence of ongoing multiple and mutually exacerbating global crises. The global financial and economic crisis currently under way is clearly undermining development in the least developed countries. The modest development gains that these countries have made over the years are being reversed, pushing a larger number of their people into extreme poverty. Many least developed countries continue to lag in meeting most of the internationally agreed development goals, including the Millennium Development Goals. We emphasize the need for the full and effective implementation of the commitments made in the Programme of Action for the Least Developed Countries for the Decade 2011-2020. We further underline the critical need to realize expeditiously a renewed and strengthened global partnership for the least developed countries in order to overcome their structural challenges, eradicate poverty, achieve internationally agreed development goals and enable half the number of least developed countries to meet the criteria for graduation from the category by 2020. 227.  We recall that the unique and particular vulnerabilities of small island developing States have been acknowledged by the international community at various United Nations meetings, including those held in Rio de Janeiro (1992), Barbados (1994), Johannesburg (2002) and Mauritius (2005), and note with concern that insufficient steps have been taken at the international level to address the vulnerabilities and effectively support the sustainable development efforts of such States. We recall that climate change and sea level rise pose the greatest threat to the survival and viability of small island developing States and to their efforts to achieve sustainable development goals, and call on the international community to commit itself to urgently increasing international cooperation to support those efforts, particularly through increased financial resources, capacity-building, transfer of technology and know-how, and increased participation of small island developing States in international economic decision-making. We welcome the decision to convene the third International Conference for Sustainable Development of Small Island Developing States, to be held in 2014, in Apia, and call for enhanced efforts to assist small island developing States in implementing the Programme of Action for the Sustainable Development of Small Island Developing States and the Mauritius Strategy for the Further Implementation of the Programme of Action for the Sustainable Development of Small Island Developing States. We commit to work towards a strong outcome for the Apia conference that supports Small Island developing States in their sustainable development needs and aspirations. 228.  We recognize the special needs of and challenges faced by landlocked developing countries caused by these States’ lack of territorial access to the sea, which is aggravated by their remoteness from world markets, and also express concern about the fact that the economic growth and social well-being of landlocked developing countries remain very vulnerable to external shocks and to the multiple challenges the international community faces, including the financial and economic crisis and climate change. We stress the need for the international community to enhance development assistance to landlocked developing countries to help them overcome their vulnerabilities, build resilience and set themselves on a path of sustainable social and economic development. We reaffirm the need to urgently address the special development needs of and challenges faced by landlocked and transit developing countries through their genuine partnership with sufficient support and cooperation from the international community for the effective implementation of priorities of the Almaty Programme of Action and its successor programme. We welcome the decision of the General Assembly to hold a comprehensive ten-year review conference of the Almaty Programme of Action in 2014, and call upon the international community

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to critically consider the special needs of and the challenges faced by landlocked developing countries, and to help develop priorities for a new, more comprehensive, common action-oriented framework of landlocked developing countries for the next decade. 229.  We recognize that middle-income countries still face significant development challenges, and underline that, despite the recent progress achieved and the efforts made by middle-income countries, 75 per cent of the world’s poor population lives in those countries. The achievement of the internationally agreed development goals, including the Millennium Development Goals, as well as the achievement of full employment and the creation of jobs for youth, the diversification of their economies, and the development of technologies continue to be huge challenges for middle-income countries. We underline the increasing solidarity and role played by middle-income countries in the area of South-South cooperation in support of the development efforts of other developing countries. We also note the outcomes of the High-Level Conference of Middle-Income Countries organized by Costa Rica and UNIDO in June 2013. 230.  We stress the need for the United Nations development system to ensure that it addresses the diverse and specific development needs of middle-income countries in a coordinated manner through, inter alia, an accurate assessment of the national priorities and needs of these countries, taking into account the use of variables that go beyond per capita income criteria and recognizing the multidimensional nature of development and poverty, and through adequate, systemic and better-focused support in accordance with national plans. 231.  We reiterate our call for the immediate and full withdrawal of Israel, the occupying Power, from the Occupied Palestinian Territory, including East Jerusalem, and the occupied Syrian Golan to the line of 4 June 1967 and from the remaining Lebanese occupied land. We reaffirm our support for a Middle East peace process aimed at achieving a comprehensive, just and lasting peace in the region, in accordance with the relevant United Nations resolutions, including Security Council resolutions 242 (1967), 338 (1973), 425 (1978) and 1850 (2008), and the principle of land for peace. In this context, we also reaffirm our support for the Arab Peace Initiative adopted by the Council of the League of Arab States in March 2002. 232. We stress the need for the early realization by the Palestinian people of their right to self-determination and to the independence of their State of Palestine to allow for their stability, prosperity and development towards the achievement of the Millennium Development Goals, to which all peoples are entitled. We express support for the efforts of the Palestinian people to achieve independence and welcome in this regard the submission by the State of Palestine of its application, on 23 September 2011, for full membership in the United Nations, and notes the adoption by the General Assembly of resolution 67/19 of 29 November 2012, by which it accorded to Palestine non-member observer State status in the United Nations. We continue to support the admission process of the State of Palestine to become a full member of the United Nations as soon as possible. We recall that 2014 was declared the International Year of Solidarity with the Palestinian people. 233.  We condemn the ongoing Israeli military occupation of the Palestinian Territory, including East Jerusalem, and the illegal actions by the occupying Power that continue to cause civilian casualties, socioeconomic and humanitarian hardship and destruction to Palestinian properties, infrastructure and agricultural lands, and to undermine the contiguity, unity and integrity of the Territory. 234.  We express deep concern about the further decline of the social and economic conditions of the Palestinian people, particularly in the besieged Gaza Strip, as a result of the illegal Israeli practices, including construction of settlements and the Wall and the imposition of a blockade and hundreds of checkpoints. We call upon Israel, the occupying Power, to cease immediately all illegal measures impairing the Palestinian economy and development, including, in particular, the inhumane and illegal blockade imposed on the Gaza Strip and restrictions on the movement of persons and goods, including commercial trade throughout, into and out of the Occupied

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Palestinian Territory, and to make reparation for all damages caused to Palestinian properties, institutions and infrastructure. We reiterate our call upon the international community to continue providing much needed developmental and humanitarian assistance to the Palestinian people during this critical period, particularly for reconstruction and economic recovery in the Gaza Strip. 235.  We reaffirm the inalienable rights of the Palestinian people and of the population of the occupied Syrian Golan over their natural resources, including land, water and energy resources, and demand that Israel, the occupying Power, cease the exploitation, damage, cause of loss or depletion and endangerment of the natural resources in the Occupied Palestinian Territory, including East Jerusalem, and in the occupied Syrian Golan. 236.  We reaffirm the need for the Governments of Argentina and the United Kingdom to resume negotiations in accordance with the principles and objectives of the Charter of the United Nations and the relevant resolutions of the General Assembly, in order to find, as soon as possible, a peaceful solution to the sovereignty dispute relating to the question of the Malvinas Islands, which seriously damages the economic capacities of Argentina, and the need for both parties to refrain from taking decisions that would imply introducing unilateral modifications in the situation while the islands are going through the process recommended by the General Assembly. 237.  We reaffirm the need to find a peaceful solution to the sovereignty issues facing developing countries, including the dispute over the Chagos archipelago, including Diego Garcia, which was unlawfully excised by the United Kingdom from the territory of Mauritius, prior to independence, in violation of international law and General Assembly resolutions 1514 (XV) of 14 December 1960 and 2066 (XX) of 16 December 1965. Failure to resolve these decolonization and sovereignty issues would seriously damage and undermine the development and economic capacities and prospects of developing countries. In this regard, we note with great concern that despite the strong opposition of Mauritius, the United Kingdom purported to establish a ‘marine protected area’ around the Chagos archipelago, which contravenes international law and further impedes the exercise by Mauritius of its sovereign rights over the archipelago and the right of return of Mauritius citizens who were forcibly removed from the archipelago by the United Kingdom. 238.  We take note of the Havana Declaration adopted at the Second Summit of the Community of the Latin American and Caribbean States, held on 28 and 29 January 2014. 239.  We reaffirm our firm rejection of the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions, against developing countries, and reiterate the urgent need to eliminate them immediately. We emphasize that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. We therefore call on the international community to adopt urgent and effective measures to eliminate the use of unilateral coercive economic measures against developing countries. 240.  We express our rejection of unilateral lists and certifications by some developed countries affecting developing countries, in particular those referring to terrorism, drug trafficking, trafficking in persons and others of a similar nature. 241.  We reiterate our call, made at the second South Summit, organized by the Group of 77 and China and held in Doha in 2005, for the Government of the United States of America to put an end to the economic, commercial and financial embargo against Cuba, which, in addition to being unilateral and contrary to the Charter of the United Nations and international law, as well as to the principle of neighbourliness, causes huge material losses and economic damage to the people of Cuba. We urge strict compliance to the relevant resolutions of the General Assembly on this matter. We also take note that in the Havana Declaration, the Heads of State and Government

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of the Community of the Latin American and Caribbean States reaffirmed their strongest rejection of the implementation of unilateral coercive measures and once again reiterated their solidarity with Cuba, while reaffirming their call upon the Government of the United States to put an end to the economic, commercial and financial blockade imposed on that sisterly nation for more than five decades. They rejected the inclusion of Cuba in the list of States sponsors of terrorism published by the State Department of the United States, and requested that an end be put to that unilateral practice. 242.  We reaffirm our rejection to the unilateral economic sanctions imposed on the Sudan, which have a negative impact on the development and prosperity of the people of the Sudan, and in this regard call for an immediate lifting of those sanctions.

CHAPTER V HIGH-LEVEL CONFERENCES OF THE GROUP OF 77 ON SOUTH-SOUTH CO-OPERATION

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1.  Conference on Economic Co-operation among Developing Countries, Mexico City, 13–22 September 1976 a. Final Report Introduction (i)  Collective self-reliance, as a means for the achievement of the fundamental objectives of the developing countries in relation to the establishment of the New International Economic Order, is an imperative of history to which all developing countries have committed themselves. Its basic premise is the determination of the developing countries to develop their economics in accordance with their own needs and problems and on the basis of their national aspirations and experiences. Its main vehicle is the fostering of economic co-operation among themselves, aimed at reinforcing their political and economic independence and their collective economic strength, in fulfillment of the objectives of the New International Economic Order. (ii)  Collective self-reliance is not a call to return to outmoded concepts or to self-destructive confrontation among nations. On the other hand, it is not realistic to expect that co-operation between developing and developed countries, i.e co-operation between parties unequal in economic opportunities and power, can result in equitable and just relationships. International co-operation for development, within the context of global interdependence, must therefore be premised on the collective self-reliance of the developing countries. (iii)  Despite the attainment of political independence by a large number of developing countries since the Second World War, economic dependence and vulnerability, bequeathed by past colonial bondage and present inequitable relationships, still persist. (iv)  Furthermore, colonialism, imperialism, racism, foreign aggression and occupation remain in many parts of the world. The vast majority of mankind living in the developing countries shares in but a small proportion of the world’s trade, finance, industry and technology, while a minority controls and consumes a disproportionately high percentage of global resources. The present economic order and the classical models of economic growth have not only failed to redress this imbalance but have accentuated the gap between the developed and the developing countries. The crises of poverty, malnutrition, unemployment and illiteracy still afflict an increasingly greater number of peoples in the developing countries, particularly the newly independent, the least developed, the landlocked, the most seriously affected as well as the island and other geographically disadvantaged countries. Such a situation calls into question the viability of the present international order, and indeed poses a real threat to global peace and stability. (v) The governments and peoples of developing countries shall continue to mobilize their resources in support of their common struggle against colonialism, foreign aggression and occupation, racism, apartheid and all forms of foreign domination and exploitation, so as to put an immediate end to these major obstacles to development. They reiterate their unswerving support for the heroic struggles of the peoples of Namibia, Zimbabwe, Azania and Palestine to achieve their liberation and to regain effective control over their natural resources and economic activities. They are determined to exercise full permanent sovereignty over their wealth, natural resources and economic activities and the right to restitution and full compensation for the exploitation and depletion of and damages to the natural and all other resources of the peoples, countries and territories subjected to those practices. (vi)  They shall continue to insist on the provision and augmentation of special assistance to the newly independent countries and national liberation movements recognized by the OAU, as well as the provision of adequate compensation to the peoples and Governments of Zambia,

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Mozambique, Angola, Botswana, Lesotho and Swaziland, whose economies are adversely effected by the struggle against the racist regimes in Zimbabwe, Namibia and Azania. (vii)  Despite all those obstacles, the developing countries now possess, among themselves, the human and material resources needed for their self-reliant national development, that can restore to their peoples a sense of justice and human dignity. It is this realization, which has motivated the developing countries to make concerted efforts to translate their inherent potential into an objective reality. It is this consciousness, which has inspired them to initiate the struggle of the establishment of the New International Economic Order. In this context, it was noted with appreciation that major efforts have been undertaken by some developing countries in providing financial and other assistance to other developing countries to mitigate their economic difficulties. (viii)  In the short history of that struggle, the passage by the United Nations General Assembly at its special session of the Declaration and Programme of Action on the Establishment of a New International Economic Order, and by the General Assembly at its twenty-ninth session of the Charter of Economic Rights and Duties of States, are important landmarks. Nevertheless, the developed countries still refuse to respond adequately to the just demands of the developing countries, notably their demands for debt relief, increased resource transfers for development – particularly increase in the resources of international financial organization- protection of the purchasing power of their export earnings and improvement in access to markets, capital and technology. As long as no satisfactory solutions are found to these problems, mutually beneficial co-operation for development will be seriously impeded. The developing countries are determined, therefore, to concentrate their unified efforts on the attainment of their objectives in the ongoing negotiations in all international fora, in particular in UNCTAD, GATT and the Paris Conference on International Economic Co-operation, and to break the impasse at that Conference. (ix)  As an essential element of the struggle to establish the New International Economic Order, the developing countries have focused their political will and common efforts to the fashioning of a comprehensive programme of economic co-operation among themselves, based on collective self-reliance. (x)  In promoting economic co-operation among themselves, the developing countries are conscious of the different levels of development among the various developing countries and particularly of the needs of the least developed among them. They are therefore determined to foster measures and arrangements, which take account of the different needs and interests of the developing countries. They affirm this as an important principle in promoting collective self-reliance as well as the context of their negotiations with the developed world. (xi)  Over the past few years, a series of conferences, held in the context of the Non-Aligned Movement as well as the Group of 77, have succeeded in identifying, in broad outline, a Programme for Economic Co-operation among Developing Countries, at the subregional, regional and global levels, directed towards the maximum utilization of their own resources, potentials and complementarities and the establishment of new co-operative relationship among themselves. (xii)  The Conference welcomed the Programme of Action on Economic Co-operation adopted at the Fifth Summit Conference of the Non-Aligned Countries in Colombo, and appreciated the understanding that other developing countries desirous to be associated with it may participate as appropriate and contribute to its successful implementation. (xiii) Within the framework of all these endeavours the present Conference on Economic Co-operation among Developing Countries constitutes a historic and decisive step forward. This is the first time that the countries members of the Group of 77 have met primarily for the purpose of deliberating upon and adopting concrete action-oriented measures and operational mechanisms of the implementation of their Programme for Economic Co-operation among Developing

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Countries, with a view to consolidating their unity and solidarity and strengthening their collective bargaining power. (xiv)  Inspired and guided by the results attained through the dedicated and collective efforts of all developing countries at precious Meetings and Conferences, the developing countries members of the Group of 77 solemnly declare their political commitment to pool their efforts in a spirit of solidarity to secure the implementation of the Programme for Economic Co-operation among Developing Countries, adopted at the Third Ministerial Meeting of the Group of 77 at Manila, and the Programme of Action for Economic Co-operation adopted at the Fourth and Fifth Summit Conferences of Non-Aligned Countries. To this end, the Conference herewith decides to adopt the followings Measures for Economic Co-operation among Developing Countries.

Measures for Economic Cooperation among Developing Countries I.  Strengthening of subregional, regional and interregional economic co-operation and integration 1.  The Group of 77 invites existing secretariats of subregional and regional groupings, as well as those to be established, to hold a meeting in 1977 with the assistance of UNCTAD, the regional commissions and other United Nations organizations. This meeting would draw up guidelines for: (a)  Measures of support of concomitant action at the interregional level to be implemented by the developing countries as a whole; (b)  Establishment of links among such groupings; (c)  Facilitation of participation in co-operation and integration schemes of countries that are at present outside such schemes; (d)  Consideration of a possible mechanism or a consultive body, whichever is appropriate, to co-ordinate and promote their activities with regard to the above-mentioned areas. 2.  Multilateral financial institutions of the developing countries in close co-operation with secretariats of subregional and regional groupings and institutions as well as appropriate bodies of the United Nations system, should undertake the identification, preparation, promotion and financing of inter-country projects in all fields of economic co-operation among developing countries.

II.  Trade and related measures A.  Establishment of a global system of trade preferences among developing countries 3.  A global system of trade preference exclusively among developing countries should be established, with the objective of promoting the development of national production and mutual trade. 4.  To this end, the UNCTAD secretariat should undertake a detailed study on the various aspects of such a system, taking full account of existing experiences and of the need for co-operation with other related schemes in developing countries and in co-operation with GATT and the regional commissions of the United Nations. This study should be submitted to an appropriate machinery of the Group of 77 and include: (a) The examination of appropriate principles governing tariff and non-tariff preference, stages and techniques for negotiating and implementing such a system, taking into account the special feature of the economies of the participating countries and the need for devising

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special measures and applying non-reciprocity in favour of the least developed countries and such measures as would enable these countries to share in technological progress and increase their productive capacity; (b) The evaluation of the guidelines contained in the relevant paragraphs of the Tokyo Declaration, with a view to their possible application as appropriate; (c)  The identification of specific trade opportunities, including trade opportunities in commodities, with potential for immediate realization; (d)  An evaluation of the relationship between such a system and co-operation in other areas, particularly long-term purchase countries, production, transportation, marketing and distribution, and payments arrangements; (e)  The identification of appropriate provisions regarding transnational cooperation operating in developing countries in order to ensure that preferential measures will benefit national development. Co-operation with the United Nations Centre on Transnational Corporations shall also be requested for the conduct of this study; (f) A  close examination of the interests of existing subregional and regional integration grouping with a view to taking them fully into account within the global scheme. The various preference schemes at the subregional, regional and interregional level should operate in mutually reinforcing and complementary manner.

B.  Measures for trade co-operation 5.  The UNCTAD secretariat and regional commissions should undertake studies in co-operation with the state trading and other appropriate organizations of developing countries, taking into account the work being done under the existing programmes of developing countries: (a) Development of joint import procurement policies. This study should investigate the ways, means and machinery for implementing joint import procurement policies, methods and arrangements for the purchase of goods, technology and services from developed countries; (b)  Establishment of a trade information and joint market research system among developing countries. This study should identify ways and means for co-operation in the collection and exchange of trade information; (c)  Co-operation among State trading organizations in such fields as import of products of common interest, joint export promotion activities, and the promotion of mutual trade through such direct measures as long-term purchase and supply commitments, where appropriate. 6.  These studies should be submitted to an appropriate machinery of the Group of 77.

C.  Co-operation in the field of commodities and raw materials 7.  In view of the developing countries’ total commitment to the Integrated Programme for Commodities, in the form envisaged in the Manila Declaration and Programme of Action, the Intergovernmental Group of Non-Aligned and Other Developing Countries on Raw Materials and the Working Group of the Group of 77 on the Integrated Programme for Commodities should co-ordinate jointly the preparation for the participation in the negotiations to be carried out under this Programme. Arrangements should also be made for inviting all developing countries to give expression to their commitment to this Programme by making specific pledges for contributions to the Common Fund if possible before the commencement of the negotiations in UNCTAD. Joint proposals on all relevant aspects of the Common Fund shall be formulated prior to the meetings scheduled in UNCTAD with a view to the earliest possible establishment of the Fund.

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8.  The Plenipotentiary Conference on the establishment of the special fund for the financing of buffer stocks envisaged in resolution 4 of the Dakar Conference on Raw Materials should be convened if the negotiations within UNCTAD on the establishment of a Common Fund fail to yield satisfactory results. 9.  Further investigations should be undertaken within the framework of existing programmes, with a view to the formulation of appropriate policies and measures for strengthening and supporting existing producers’ associations and for establishing new ones. Developing countries who have not yet joined producers’ associations are urged to do so. 10.  The Council of Producers’ Associations should become operational as soon as possible. To this effect, producers’ associations established at the initiative of developing countries should formulate appropriate proposals regarding relevant features of this Council. These associations are also invited to consider necessary steps for joining the Council upon its establishment. 11.  The preparatory Committee entrusted with the implementation of resolution No.6 of the Dakar Conference shall meet as soon as possible in order to finalize the statutes for the Council of Producers’ Associations so that a Conference of Plenipotentiaries can be convened immediately thereafter for the approval of the statutes of the Council. 12.  Studies should be undertaken by the UNCTAD secretariat and the regional commissions on possibilities for; (a)  The establishment of multinational marketing enterprises; (b)  The establishment of commodities exchanges located in and controlled by the developing countries. 13.  Consultations should be organized by an appropriate machinery of the Group of 77 between developing producer and consumer countries on individual commodities according to a specific timetable. The Council of Producers’ Associations should assist in this task.

III.  Measures in the fields of production, infrastructure and services A.  Co-operation in the field of production 1.  Food, agriculture and fisheries 14.  An appropriate machinery of the Group of 77, in co-operation with the Food and Agriculture Organization of the United Nations (FAO), the World Food Council, other appropriate institutions and the appropriate organizations of the developing countries, taking into account the work being done under existing programme of the developing countries, should co-ordinate the preparation and evaluation of studies and make recommendations on the possibilities of: (a)  Increase in agricultural output and food production through co-operative action on a subregional, regional and interregional basis; (b)  Co-operative ventures between present and/or potential food exporting developing countries, and other developing countries in a position to do so in terms of finance, technology and markets; (c)  Co-operation in multinational projects such as in the production and processing of food and of food supplements of high protein content, in the manufacture of fertilizers, insecticides, seed production, other agricultural inputs and agro-industries; (d) Co-operation in and reinforcement of the existing projects for counteracting desertification; (e)  The joint construction of water and irrigation systems, and joint transport, marketing, distribution and storage facilities and the formulation and analysis of investment projects therefore;

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(f) Co-operation at the subregional, regional and interregional levels for reorienting the structure of their agriculture, where appropriate, towards increased production of food for consumption in developing countries; (g)  The feasibility of bulk purchases of agricultural inputs on a multinational basis; (h)  Establishing of food security stocks to stabilize supplies and prices for food imports of developing countries; (i)  Co-operation in the field of agrarian reform; (j)  Collaborative research and development including the transfer of agricultural technology among developing countries; (k)  Establishing multinational enterprises among developing countries for the joint utilization and marketing of the living resources of the sea and inland waters, the supply of fishing vessels and other necessary equipment, the exchange of information and technical know-how in the fisheries industry by using existing and new research centres and by organizing training courses etc.

2. Industrialization 15. An appropriate machinery of the Group of 77 in co-operation with the United Nations Industrial Development Organization (UNIDO), other appropriate institutions and the appropriate organizations of the developing countries, taking into account the work being done under existing programmes of the developing countries should co-ordinate the preparation of studies and make recommendations on the possibility of: (a)  Establishing a consultative committee for the purpose of developing global strategies for the industrial development of the developing countries, including the possibility of harmonizing national sub-regional, regional and inter-regional economic policies and plans as appropriate; (b)  Establishing a system of consultation among developing countries in specific sectors of production to increase their share in world industrial output; (c)  Undertaking inventories of natural and human resources of the developing world; (d)  Establishing multinational industrial enterprises, including the elaboration of multinational project inventories; (e)  Co-operation in project formulation, design and development and in industrial promotion; (f)  Co-operation in the management of public enterprises; (g)  Sub-regional, regional and interregional specialization in industry through long- term agreements; (h)  Methods for adopting appropriate policies for the control and regulation of the activities of transnational corporations and the suppression of restrictive business practices; (i)  Coordinating approaches, within the framework of national, subregional, regional and interregional policies, in respect of private foreign investment.

B.  Cooperation in infrastructure 1. Transport 16. An appropriate machinery of the Group of 77 should, with the aim of strengthening co-operation among developing countries, co-ordinate the formulation of a global strategy covering the various aspects of transport and make recommendations for its implementation, particularly through the following measures: (a)  The establishment and or reinforcement of multinational transport facilities, services and enterprises;

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(b)  The establishment of exclusive liner conferences and joint shipping services by the developing countries at the subregional, regional and interregional levels; (c) The improvement and strengthening of existing transport facilities and arrangements among developing countries, and the establishment of training centres at the national, subregional, regional and interregional levels; (d)  The preparation by UNCTAD of a study on the trade and development aspects of transport and transit problems of the developing landlocked and island countries. Also the improvement and expansion by coastal countries, wherever appropriate, of transit facilities and access to and from the sea to landlocked countries. To this end, the coastal countries and the landlocked countries concerned should pool their efforts for the joint implementation of transport projects through bilateral consultations; (e)  Joint action for ratification and accession, and the implementation of the United Nations Convention on a Code of Conduct for Liner Conferences; (f)  United action to ensure financing, through multilateral or regional financial institutions, for multinational projects for road, railway, shipping and air linkages among developing countries and in particular those serving the developing land-locked and island countries; (g)  Joint action for the establishment of preferential and promotional freight rates for developing countries imports and exports, particularly for non-traditional goods; (h) Joint action to solve the problem of port congestion, and to improve their operation, through mutual co-operation; (i)  Joint action to develop containerization on the basis of developing countries needs; (j) Joint action for the immediate operation of the United Nations special fund for the land-locked developing countries and for the implementation of specific measures in favour of the developing island countries. 17. UNCTAD, the Inter-Governmental Maritime Consultative Organization (IMCO), the International Civil Aviation Organization (ICAO), the United Nations Department of Economic and Social Affairs, the regional commissions of the United Nations, multilateral financial institutions, regional and subregional organizations and other international organizations concerned should support these activities.

2. Telecommunications 18.  An appropriate machinery of the Group of 77 should co-ordinate interregional co-operation among developing countries in this field, and make recommendations for the expansion and integration of existing telecommunications channels so as to create and strengthen an effective network of subregional, regional and interregional telecommunications for the setting up at the subregional, regional and interregional levels of training, test and development centres; for the establishment of uniform maintenance and operational procedures regarding the telecommunications networks at the various levels; and for concerted action vis-à-vis international financial institutions to ensure financing for multinational projects of developing countries in this field. 19.  The International Telecommunications Union (ITU), the regional commissions of the United Nations, multilateral financial institutions, regional and subregional organizations and other international organizations concerned should support these activities.

C.  Co-operation in services 1. Insurance 20.  An appropriate machinery of the Group of 77 should co-ordinate efforts leading to the setting up of joint insurance and reinsurance arrangements among developing countries, in order to

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reduce foreign exchange outflows, spread risks, reduce dependence on developed countries transnational corporations, and increase bargaining power vis-à-vis the insurance markets of developed countries. UNCTAD, the regional commissions of the United Nations, as well as other relevant organizations, should support these activities.

2. Tourism 21.  Committees should be established on a subregional, regional and interregional basis, with a view to coordinating national policies, encouraging the harmonious and rational development of tourist trade, and maximizing benefits for developing countries.

IV.  Monetary and Financial measures Monetary and financial co-operation The Conference decides on the following measures: 22.  The Group of 77 will consider: (a)  The strengthening and improvement of existing clearing and payments arrangements and the promotion of new ones at the subregional regional and interregional levels; (b)  The establishment of links among existing payments schemes; (c) The establishment of an interregional payments arrangement open to all developing countries; (d)  Measures to promote and facilitate the flow of resources among developing countries, and from developed to developing countries and multilateral financial institutions of developing countries, including the suitability of interest subsidy schemes; (e) The promotion of active co-operation among central banks of developing countries aiming at preserving the real value of their monetary reserves. To this end, appropriate groups of experts will be convened by the Group of 77 to examine these issues and report their findings for consideration by the Group of 77 by the end of 1977. 23.  The Group of 77 will carry out complete studies on: (a)  The possibility of establishing a Developing Countries Payments Union (DPU), taking into account the articles of agreement to be submitted by Egypt and other relevant proposals; (b)  The mechanisms for the possible establishment of a liquidity unit exclusively for use among developing countries; (c)  The possibility of establishing a countervailing currency backed by the economic potential of developing countries; (d)  The possibility of establishing and operating a Bank of Developing Countries, which could undertake the general activities of commercial and merchant banking. The study should include the proposed statutes for such a multinational banking enterprise and its legal status within individual countries; (e)  The ways and means of strengthening the existing subregional regional and interregional development funds and financial institutions of developing countries, and on the promotion of new ones; (f)  The possibility of establishing subregional, regional and interregional export credit and export guarantee schemes; (g)  The creation of consortia and special links among financial institutions of developing countries for the financing of large-scale projects.

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To this end, groups of experts chosen by the appropriate machinery of the Group of 77 should study these issues and report their findings for consideration by the Group of 77 by the end of 1977. 24.  The continuation of the efforts by developing countries to reach, within the framework of their national policies, possible coordinated approaches for the treatment of private foreign investments in order to strengthen their bargaining position in this field. 25.  The identification and implementation of the measures to promote and encourage investment among developing countries, taking into account inter alia, the particular nature of these investments as well as the need to increase the flow of resources among developing countries. 26.  The Group of 77 will as appropriate make necessary arrangements for recording, coordinating and disseminating information on financial flows and financial co-operation policies among developing countries at the bilateral and multilateral levels. 27.  The Group of 77 will take all necessary steps to achieve the fullest co-ordination of developing countries’ positions regarding the reform of the international monetary system, other important financial questions and balance-of-payments management; to play a greater role in the existing international organizations. The Group of 77 will strengthen its negotiating position and take all the necessary steps with a view to achieving the restructuring of the international monetary system.

V.  Measures in field of science, technology and technical co-operation A.  Measures of cooperation in science and technology 1.  Unification of positions at the international level 28.  The Group of 77 through its appropriate machinery should establish common positions in regard to the United Nations Conference on Science and Technology for Development and to further develop common positions for the establishment of a Code of Conduct on the Transfer of Technology the revision of the Paris Convention for the Protection of industrial property and other international negotiations in this field. 29.  The Group of 77 considers that the United Nations Conference on Science and Technology for Development should be held in a developing country; and that the Secretary-General of the Conference should come from a developing country.

2.  Technology centres 30.  The establishment of national centres where not already existing, for transfer and development of technology as a basis of co-operation among developing countries, should be encouraged. 31.  The establishment of subregional centres and regional centres, such as the Asian and African Centres on the Transfer and Development of Technology, as well as interregional centres, such as the proposal Centre for Science and Technology for Developing Countries at Lima, Peru, in order to promote the implementation of the common strategy of co-operation in the field of science and technology. Regarding the Lima Centre, developing countries are invited to participate at the Plenipotentiary Conference to be convened early in 1977 by the host country to consider and adopt the statutes of the Centre together with its programme of work. Studies should be coordinated by the appropriate machinery of the Group of 77, in order to promote the establishment of these centres, with assistance of relevant organizations, such as the United Nations, UNCTAD, UNIDO, the World Intellectual Property Organization (WIPO), FAO and the regional commissions of the United Nations. 32. The establishment of inter-regional technology centres for specific sectors, such as the Regional Co-operative Pharmaceutical Production and Technology Centres (RCOPPTECs). Studies should be coordinated by the appropriate machinery of the Group of 77 on specific

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critical sectors for developing countries; the elaboration of action-oriented recommendation; and the setting up of necessary arrangements for the coordinating of the various functions of the centres. Assistance in these endeavours should be secured, as necessary, from the relevant international organizations and institutions within the United Nations system. 33.  Detailed studies should be undertaken by the Group of 77 for the establishment of technology information and data banks at the national, subregional, regional and interregional levels as appropriate. In this process, assistance should be secured, as necessary, from the relevant organizations and institutions within the United Nations system, such as the Department of Economic and Social Affairs of the United Nations, UNESCO, UNIDO, WIPO, FAO and the United Nations Centre on Transnational Corporations.

3.  Policy measures among developing countries 34.  The appropriate machinery of the Group of 77 should co-ordinate the elaboration of common measures in the field of science and technology, inter alia, through national, subregional, regional and interregional centres. These measures should include: (a)  The development of technology transfer and development policies. The centres for technology should assist in the elaboration of plans, policies, laws and regulations as a framework to the transfer and development of technology integrated in the overall development strategy, with the assistance of the relevant organizations and institutions within the United Nations system, such as UNCTAD, UNIDO, WIPO, FAO, the Department of Economic and Social Affairs of the United Nations, etc.; (b)  Use of preferential arrangements on the transfer and development of technology among developing countries; (c)  Remedial action on the outflow of skilled personnel from developing countries to developed countries; (d)  Collaboration in the establishment within the United Nations system of a consultative group on appropriate technology.

B.  Measures in the field of training, education, human resources and employment 35.  The appropriate machinery of the Group of 77 should co-ordinate actions, inter alia, towards: (a)  The establishment of mechanisms for the exchange of experiences and information on educational and training systems and programmes, in particular in relation to priority needs and existing capabilities; (b)  The establishment of joint curriculum and training programmes and centres. Support by the relevant United Nations organizations and institutions should be secured, as necessary; (c) Implementation of the decisions adopted by the Conference on International Women’ Year in Mexico. In this connection, national strategies should be established for full participation of women in the process of development; (d) The encouragement of the exchange of manpower, as appropriate among developing countries; (e)  Developing common positions for the implementation of decisions and recommendations of the World Employment Conference and of the proposals of the Group of 77 in that Conference.

C.  Technical co-operation among developing countries 36.  The appropriate machinery of the Group of 77 should co-ordinate the preparation and evaluation of studies and make recommendations for the adoption of practical measures aimed at

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initiating, expanding and strengthening technical cooperation among developing countries. In particular, these measures should include: (a)  Development and strengthening of the institutions and arrangements dealing with technical co-operation in developing countries, at the national, sub-regional, regional and inter-regional levels, including the establishment of focal points within the developing countries; (b)  Concerted action within the United Nations system particularly in the United Nations Development Programme, the World Bank  –International Development Association and other international organizations, in order to secure increased participation by developing countries consultancy services in programmes sponsored by these institutions. (c) Support for the full implementation of the decision on ‘New Dimensions’ within the framework of UNDP and other international organizations; (d)  Making full use of existing and potential technical capabilities of developing countries, giving preferences to services and equipment provided by them, and to this end, in particular, the setting up of a Project Development Facility; (e) Unifying positions for the forthcoming United Nations Conference on Technical Co-operation among Developing Countries to be held in Argentina in 1977.

D. Other fields 1.  Public enterprises 37.  Take steps for the early ratification of or accession to the statutes of the International Centre of Public Enterprises in Developing Countries at Ljubljana, Yugoslavia and the early elaboration by the Centre of programmes for training, education, consultation, exchange of information and documentation.

2. Health 38.  The appropriate machinery of the Group of 77 should co-ordinate studies and activities towards: (a)  Unified action within the World Health Organization on the development of international health policies and practices; (b)  Creation of arrangements and mechanisms for co-operation in the field of health and medicine.

3.  Research and information 39.  The appropriate machinery of the Group of 77 should co-ordinate studies and activities towards promoting co-operation and co-ordination among the national and multinational research institutions of developing countries, and ensuring their full participation in the system to be established.

4. Energy 40.  The appropriate machinery of the Group of 77 should co-ordinate studies and activities towards promoting scientific and technological co-operation among developing countries for: (a)  The production and use of nuclear energy for peaceful purposes; (b)  The research and development of various forms of energy, among others, solar energy, wind energy, biogas energy and geothermal energy.

VI.  Global mechanisms and arrangements for the implementation of the programme of economic co-operation among developing countries 41.  The Conference considers that there is a need for an appropriate global framework to ensure speedy, effective and regular implementation of the measures of co-operation among developing

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countries, taking into account the need for making full use of existing mechanisms and avoiding duplication efforts. 42.  To this end, the Conference recommends that ministerial meetings of the Group of 77 should, inter alia, be entrusted with the following tasks: (a)  To review and evaluate the implementation of the measures envisaged in the Programme of Economic Co-operation among Developing Countries, at the various levels and in different fields, and to adopt additional measures for such implementation; (b)  To co-ordinate and harmonize the position of the Group of 77 in all international fora of interest to the Group as a whole. 43.  The Conference therefore recommends that the next Ministerial Meeting of the Group of 77 should be held immediately before the ministerial session of the Trade and Development Board scheduled in 1977, and that this meeting should decide on the date of the next meeting, and determine the frequency, regularity and level of future meetings.

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2.  The Caracas Programme of Action on Economic Cooperation among Developing Countries adopted by the High-level Conference on Economic Cooperation among Developing Countries, Caracas, Venezuela, 13–19 May 1981 a.  The Caracas Programme of Action The Meeting of Ministers of Foreign Affairs of the Group of 77, held in New York in September 1980, agreed ‘to convene a conference of developing countries at a high level in 1981 in order to intensify and ensure the implementation of various programmes and decisions on economic cooperation among developing countries in a concrete and coherent manner’. The main events on this matter held prior to this high-level conference were the following: the Third Ministerial Meeting of the Group of 77 held in Manila from January 26 to February 7, 1976; the Conference on Economic Cooperation among Developing Countries of the Group of 77, held in Mexico City from 13 to 22 September 1976; the Fourth Ministerial Meeting of the Group of 77, held in Arusha from 12 to 16 February 1979; the Sixth Conference of Heads of State or Government of the Non-Aligned countries, held in Havana from 3 to 9 September 1979; the Ministerial Meeting of the Group of 77 held in New York from 11 to 14 March 1980, and the Meeting of the Ad-Hoc Intergovernmental Group on Economic Cooperation among Developing Countries, held in Vienna from 3 to 7 June 1980. Moreover, other meetings which are closely related to this matter are the United Nations Conference on Technical Cooperation among Developing Countries, held in Buenos Aires from 30 August to 12 September 1978, and meetings on Economic Cooperation among Developing Countries held in the context of United Nations fora. The Ministers entrusted the Group of 77 in New York to make necessary arrangements for the preparations of the High-level Conference. This preparatory work included ad hoc technical meetings of officials responsible at the national level for the operational aspects of activities of Economic Cooperation among Developing Countries. In pursuance of this mandate, the Group of 77 in New York established the terms of reference for the technical meetings of experts that were held from 16 to 27 March 1981 in Geneva, Vienna and Rome. The experts were entrusted with the task of forwarding practical and concrete recommendations, to be presented in operational terms within a time-bound framework, in order to facilitate the effective implementation of the various sections of the Vienna Report. To this end, the recommendations were to include reference to the necessary follow-up action. The recommendations of the technical meetings of experts were considered by a meeting of senior officials, held in Vienna from 13 to 16 April 1981, in preparation of the High-level Conference. This meeting, according to the terms of reference set by the Group of 77, reviewed and integrated these recommendations and dealt with questions of an intersectoral nature such as some TCDC matters of broader scope and those related to the levels of implementation and mechanisms for coordinating, monitoring and follow-up action and evaluation. The preparatory work of this Conference was based primarily on the report of the Ad-Hoc Intergovernmental Group on Economic Cooperation among Developing Countries held in Vienna from 3 to 7 June 1980, which had been endorsed by the Ministerial Meeting of the Group of 77 in September 1980, the conclusions of which represent an important stage in the process leading to concrete and balanced implementation of actions in the field of economic cooperation among developing countries. The conclusions of the Meeting of Senior Officials were presented to the High-level Conference held in Caracas from 13 to 19 May 1981.

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I.  INTRODUCTION The Group of 77 held a High-Level Conference on Economic Cooperation among Developing Countries, in Caracas, Venezuela, from 13 to 19 of May, 1981. The Conference is convinced that, amidst the difficulties and uncertainties arising from the present world situation, this is the appropriate moment to renew, accelerate and strengthen cooperative efforts and solidarity among developing countries, based on mutual interest and a more rational use of available resources. In this context, the Group of 77 reiterated its firm commitment to the principle of collective self-reliance, and stressed that economic cooperation among developing countries is an integral part of the collective action of the Group for the restructuring of international economic relations and the establishment of the New International Economic Order. The current global economic crisis is a reflection of the underlying structural maladjustment and the persisting lack of equity in international economic relations. The lack of progress in negotiations on the restructuring of international economic relations and the establishment of the New International Economic Order is due to the intransigent attitudes adopted by some developed countries which have shown a regrettable lack of political will. This has been manifested particularly in the state of negotiations to launch the new round of global negotiations on international economic cooperation for development. This same attitude was also adopted by one developed country at the last session of the Third United Nations Conference on the Law of the Sea. Against this background, it is all the more timely and necessary for the developing countries to strengthen the cohesion and solidarity among themselves. The Conference reaffirmed that economic cooperation among developing countries is not a substitute to global economic cooperation between developing and developed countries, nor should it in any way replace or relieve the industrialized countries from their responsibilities and commitments towards developing countries. As long as the industrialized world persists in its present attitudes and policies, which do not respond to the needs of the developing countries, the present international economic system, which is based on injustice, inequality, exploitation and dependence, will continue to adversely affect the development prospects of the developing countries as well as the future of the whole world. The world economic crisis places severe constraints on the development prospects of developing countries. The policy of the developed countries has been to seek to overcome their chronic economic difficulties by passing on the costs of their adjustment to the developing countries, causing instability and disruption in the economies of the latter and compelling many of them to resort, among other measures, to additional and onerous indebtedness merely to survive. At the same time, most of the developed countries have strongly resisted the structural changes in their economies that are necessary to eliminate the underlying causes of the present crisis. Deterioration of relations between the great powers, aggravation of international tensions, the intensification of the arms race, colonialism, interference in internal affairs, apartheid, racism, racial discrimination and all forms of foreign aggression, occupation, domination, hegemony, expansionism and exploitation are having a further negative impact on the grave structural problems that afflict the economies of the developing countries. Economic cooperation among developing countries offers the opportunity to take full advantage of existing and potential complementarities in their economies. The program of cooperation identifies these possibilities in the fields of trade, technology, food and agriculture, energy, raw materials, finance, industrialization and technical cooperation. All developing countries should be in a position to benefit equitably from a practical evidence of solidarity. In this regard, special attention should be paid to countries in greater need, particularly the Least Developed Countries, so that they can effectively participate and benefit from programmes of economic cooperation among developing countries in all fields of such cooperation. The success of the forthcoming

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United Nations Conference on the Least Developed Countries is, therefore, of particular importance to the Group of 77. Cooperative efforts among developing countries are by no means new. Several programme have already been agreed upon and implemented to varying degrees, as evidenced in the actions taken in the various subregional, regional and interregional groupings. Resolute action is now required to ensure the implementation of the Programme of Economic Cooperation among Developing Countries adopted at this meeting in a concrete, coherent, integrated and time-bound manner, a programme that will have mutually beneficial results for all developing countries members of the Group of 77. In order to ensure the effective implementation of the Programme of Action agreed upon, the Conference has decided to set up appropriate mechanisms of coordination, monitoring, follow-up and evaluation as reflected in detail in this document. These efforts appear ambitious as is the enterprise to which the Group of 77 is now giving a new and sustained impulse. This Conference is a manifestation of the developing countries’ recognition of the potential of cooperation among themselves. Many indeed are the potentially important fields that naturally lend themselves to fruitful action at the subregional, regional and interregional levels. The implementation and follow-up of the Programme agreed upon by the Conference will give developing countries a better knowledge of where the possibilities of practical and balanced results lie, in order to achieve the balanced development of their countries and to improve the economic and social conditions of their peoples.

II.  SECTORAL CONCLUSIONS TRADE Expansion of Trade among Developing Countries 1.  The High-Level Conference on Economic Cooperation among Developing Countries noted that in recent years trade among developing countries had expanded more rapidly than their trade with developed countries. In this connection, the Conference therefore recommended that developing countries commit themselves to continue this expansion of trade among themselves and at a significant rates, and to adopt adequate commercial policy measures at the national as well as at the regional and inter-regional levels, to ensure that this objective is fully realized. While welcoming the continued expansion of trade among developing countries, the Conference recognized the importance of establishing suitable targets for trade expansion and, to this end, recommended that studies being undertaken in this regard in UNCTAD should be concluded as promptly as possible and, in any event, during 1981. The Conference also recommended that the implementation of the objective of the expansion of trade among developing countries should be reviewed periodically. 2.  The Conference felt that expansion of trade among developing countries and consideration of issues related thereto would be facilitated by dissemination of adequate data on trade flows and market opportunities and by the promotion of the necessary trade financing. The Conference noted Arusha Action Plan’s recommendation on a trade information system with new emphasis on mutual trade among developing countries. The Conference recommended that the trade information system could be considerably assisted by more effective use of existing trade information in the sub-regional, regional and interregional institutions. The Conference therefore recommended that necessary action should be taken in order to ensure the early implementation of the proposed project on a Trade Information System (TIS) being prepared by UNCTAD. 3.  The Conference recommended the further promoting of cooperation among developing countries in the field of marketing network, through setting up of branches, technical and commercial

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offices, exhibitions, department stores, warehouses and other forms of cooperation in the field of marketing, in the mutual interest of the countries concerned and in accordance with their national legislation. 4.  In connection with the role of long-term agreements in strengthening the production capacities of developing countries and expanding their mutual trade, the Conference recommended that Governments of developing countries adopt all necessary measures within the framework of their economic policies in order to assist in the conclusion of such agreements.

Global System of Trade Preferences (GSTP) among Developing Countries 5.  The Conference noted that, in spite of a favourable growth rate in the trade between developing countries in the recent past, in 1976 these countries imported only 27.5 per cent of commodities and 10.5 per cent of manufactures from among themselves, out of which the shares of interregional trade were only 9.9 per cent and 3.3 per cent respectively. The statistics of trade among developing countries by country and product compiled by UNCTAD showed that in a number of SITC headings (4 digit) relating to both agricultural products and manufactures, the developing countries imported the bulk of their requirements from developed countries, despite the existing production capabilities and export potential among developing countries. The Conference, therefore, concluded that the analysis of trade data in UNCTAD had fully substantiated the recommendation of the Ministers at Arusha that the Global System of Trade Preferences (GSTP) among developing countries would constitute a major instrument for the promotion of trade, production and employment among developing countries. The Conference, however, stressed that the GSTP, when established, should result in equitable benefits for all participating developing countries. Moreover, it would supplement and not replace present and future sub-regional and regional preferential arrangements, which would also need to be strengthened. 6.  The Conference noted that considerable analytical and preparatory work had already been carried out in UNCTAD to enable necessary steps to be undertaken for early establishment of the GSTP. The Conference agreed that there was now a need to devise the detailed modalities, rules and procedures for commencement of the negotiations. These rules would have to be based on the principles and guidelines for the GSTP established in the Arusha Action Plan and further elaborated at the Interregional Meeting of Governmental Experts of Developing Countries on ECDC held in Geneva in 1980. It also agreed that such negotiating modalities and rules should be simple and sufficiently flexible so as to ensure maximum participation in the negotiations. It noted further that another meeting of governmental experts was scheduled in UNCTAD for continuing preparatory work in July 1981. The Conference believed that, relying on the preparatory work already undertaken, it would be possible at this meeting to make substantial progress towards completing the work of drawing up the rules. The Conference recommended that as soon as possible after completion of the preparatory work another meeting of an appropriate high level should be held to finalize and approve the rules and launch the negotiations at the earliest.

State Trading Organizations (STOs) 7.  The Conference stressed the need for a regular exchange of information among STOs in order to promote effectively trade and other forms of cooperation among such organizations. The Conference also took note of the work being carried out by the UNCTAD Secretariat in connection with a handbook on STOs. It recommended that this handbook should be completed and distributed as soon as possible and that STOs should provide UNCTAD with the necessary information for the regular updating and improvement of the handbook. 8.  The Conference welcomed the symposium being organized by UNCTAD in association with ITC and the International Centre for Public Enterprises (ICPE) in Ljubljana, Yugoslavia, in

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November 1981 at the headquarters of ICPE, for Heads of STOs of developing countries to consider, inter alia, a programme for mutual trade development and other forms of cooperation among their STOs, such as the establishment of long-term supply and purchase commitments. The Conference also welcomed the meeting of State Trading Organizations of the Asian Group scheduled to be held in Jakarta in October 1981 in collaboration with the UNCTAD Secretariat. In preparing a programme of cooperation among STOs, the Ljubljana symposium should pay special attention to cooperation with regard to import procurement from the developed countries, i.e. cooperation among purchasing agents of different developing countries and by larger exporting-importing developing countries undertaking operations on behalf of countries interested in smaller quantities. The Conference recommended that such meetings aiming to foster ECDC should be organized by developing countries at the subregional, regional and interregional levels on a regular basis to keep under review their joint efforts and to orient the work being undertaken by the international community to promote cooperation among STOs as well as in other fields of ECDC.

Multinational Marketing Enterprises (MMEs) 9.  The Conference took note of the list of product groups as agreed to by the Group of 77 and selected by regional and interregional meetings of governmental experts of developing countries for the promotion of multinational marketing enterprises at the regional and interregional levels in pursuance of provisions of section (c) of the Arusha Action Plan, and recommended that such lists should be given wide publicity so as to facilitate contacts among parties concerned. It recommended also that technical and financial assistance should be provided on an urgent basis to intensify ongoing preparations and to support the process of sectoral negotiations envisaged at the regional and interregional levels for the establishment of this type of enterprise. 10.  The Conference recommended that producers-exporters associations should become fully involved in the promotional work to be undertaken in relation to MMEs. 11.  In the light of the action programme for the promotion of MMEs adopted at Arusha, the Conference stressed the need for Governments of interested countries to mobilize their own public and private producers and exporters, as the case may be, to become involved in this process of sectoral negotiations.

National Enterprises, Joint Ventures and Improved Utilization of Existing Capacities in the Field of Services 12.  The Conference recommended that action in the field of services should be envisaged at two levels. First, at the subregional and regional levels, where efforts should mainly be geared towards assistance to developing countries, particularly the least developed, land-locked and island developing countries, in setting up national enterprises or adopting any other relevant measures in order to solve their particular problems. The assistance of specialized organizations of developing countries at the sub-regional and regional levels offered the possibility in the short run to establish cooperation links among such organizations, to develop a regular exchange of information among them and to ensure the participation in their cooperative efforts of all parties concerned, including suppliers and users of the services in question. In addition to action in this respect, and as a result of such links, the Conference recommended that work should also be undertaken through expert groups for the identification of existing capacities and their level of utilisation, as required, to be proposed for adoption in support of such countries. The Group of 77 in Geneva should take steps for the preparation and convening of these expert groups. 13.  The second level of action evisaged was of an interregional character. It was stressed that the trade potential of the developing countries was particularly significant but that its realities and

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development was being hindered by the lack of adequate transportation, communications shipping and insurance facilities. The Conference considered that an effective way of dealing with existing obstacles in this respect was to establish links at the interregional level among sub-regional and regional organisations with responsibilities in the sectors concerned. The Conference recommended that, at this level, expert groups should be convened by the Group of 77 in Geneva not later than 1982 in order to identify problems encountered, establish priorities and suggest possible measures leading to appropriate action.

Technical Cooperation among Developing Countries (TCDC) in the Field of Trade 14. Regarding the fostering of technical cooperation in the area of trade, the Conference expressed the importance of resorting to means such as research and training centres of multinational scope, as identified in the Buenos Aires TCDC Conference. The Conference recommended in this regard more active exchange of information among the secretariats of the various subregional and regional economic groupings of developing countries.

TECHNOLOGY National, Subregional, Regional and Interregional Technology Institutions 15. The Conference reiterated that cooperation in the field of technology among developing countries is of critical importance as it constitutes an essential factor in the promotion and development of a sound programme of action in the other fields of economic cooperation among developing countries. 16.  The Conference stressed the importance of the implementation of the Vienna Programme of Action on Science and Technology for Development, which comprises programme areas on cooperation among developing countries in this field. The Conference, in this context, instructed the Group of 77 in New York to pursue vigorously action in this regard, in view of the central role it will have to play for such implementation. 17.  The Conference noted with concern, however, that, in spite of the repeated appeals of the Group of 77, negotiations for the solution of the important questions still pending in Annexes I and II of the Vienna Programme of Action on Science and Technology for Development have not been undertaken. The Conference, felt, therefore, that the absence of a solution which would take into account the interest and needs of developing countries renders insufficient the implementation of the Vienna Programme of Action. The Conference called, in this context, for the opening of those negotiations as soon as possible and instructed the Group of 77 in New York to act accordingly. 18.  In order to provide information on engineering and technological capacities available and required and to develop programmes of cooperation among developing countries, the Conference recommended the following actions: a) To establish and maintain an up-to-date inventory of the existing capabilities in the national, subregional, regional and interregional technology institutions and agencies in the developing countries. The Group of 77 in Vienna should formulate a detailed questionnaire to be circulated to all developing countries in which each country may indicate the available research and development facilities. b) To formulate, on the basis of the information so obtained, cooperative arrangements among technological research and development institutions in specific areas. In this connection, it is proposed that specific experts groups be organized to identify problems of common

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interest and select projects for joint and cooperative action. This question should be dealt with by the meeting of heads of national science and technology agencies referred to in Paragraph 26. c)  To strengthen technological information among developing countries using existing international information system such as RITLA in Latin America, UNIDO, UNCTAD, UNESCO, UNDP and WIPO at the international level and other such systems that may be created, for the collection, analysis and dissemination of information on the engineering and technological capabilities available in the institutions and which could be made available for other countries. d)  To strengthen existing, establishing where necessary, national agencies dealing with science and technology matters. e)  To encourage and promote initiatives on the part of developing countries for twinning arrangements between such institutions.

Flow of Technology among Developing Countries 19.  In order to make available to all developing countries specific technologies and capacities acquired by some developing countries, the Conference recommended the following action: a)  Each developing country should compile available information on a broad range of technologies covering both hardware and software, the latter being embodied in the form of institutional knowledge, experience of pilot plant or semi-commercial plant operation, technological know-how and availability of facilities for training purposes. b)  A systematic compilation of information should be made available to countries and institutions that will be responsible for specific sectors, as well as to international organisations, and regional organisations, such as transfer of technology centres and interested economic commissions. c)  Visits of experts from governmental organisations, technical institutions in specific industrial sectors to other developing countries should be organized so as to promote and develop specific cooperation projects on bilateral and multilateral basis. d)  Actions necessary for promoting scientific and technical cooperation among developing countries should be identified and, in this context, appropriate reciprocal preferential treatment arrangements should be established, without prejudice to national legislation. e)  International organisations are requested to promote, organize and provide support for such inter-country facilities and exchange of information, including projects mutually agreed upon. Depending on the level of cooperation they could also facilitate obtaining favourable terms and conditions including granting of preferential treatment in technology transfers, without prejudice to national legislation.

Solution of Specific Technological Problems Through Joint Efforts and Creation of Networks of Scientific and Technological Institutions 20.  In order to develop joint programmes between those countries that have specific experience and expertise in specified sectors of industry and to assist others in regard to testing of raw materials, providing them with know-how and designs where necessary on products and processes and also to develop joint programmes in research and development efforts, including harmonization of policies, the Conference recommended the following action: a)  To establish action committees in the selected sectors to act as promoters and catalysts of technological development, convenors of meetings of interested institutions, agencies and countries and to generally serve as points of reference for technological problems in these sectors for other developing countries.

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b)  In order to facilitate the implementation of the above task the relevant international organisations should provide appropriate assistance to promote technological cooperation among developing countries. c)  To establish networks of scientific and technological institutions for mutual benefit and to facilitate harmonization of strategies and programmes through the exchange of information and experience in the field of scientific and technological development. This issue should be considered by the meeting of heads of national science and technology agencies envisaged in paragraph 26.

Exchange of Information and Experiences in the Field of Technology 21.  In order to make available to other developing countries information and experience gathered by some through in-depth monitoring of technological problems related to absorption, adaptation and innovation of technology, the Conference recommended the following action: a)  To request relevant United Nations bodies and national, subregional, regional and interregional technological institutions to give priority in their work programmes to monitoring experiences in regard to absorption, adaptation and innovation and report to their governing bodies for further action. b) To encourage the exchange of technical personnel in these areas, including through regional and other international organisations concerned. c)  To convene expert meetings to exchange experience obtained in this phase of monitoring in specific sectors, highlighting in particular the investigations made. d)  To encourage the use of relevant experience to enhance endogamous technical capacities of developing countries, including capabilities for the maintenance of capital equipment.

Cooperation in the Areas of Technological Innovation and Research in Advanced Technologies 22.  With the purpose of monitoring and analysing the potentialities and implications of technological advances and breakthroughs such as genetic engineering, biotechnology and microprocessors in order to alert the developing countries to take appropriate measures and for preparing national level actions to cope with the problem of technology choice, technology use, in accordance with their basic development objectives, the Conference recommended the following action: a)  Continuous monitoring, assessment and analysis of the potentialities and implications of advanced technologies should be undertaken by national and regional institutions within developing countries. The relevant international organisations should also be requested to analyse and assess continuously the potentialities and implications of such technologies. b)  Experts from developing countries should review such potentialities and implications of advanced technologies for the benefit of developing countries and prepare the plan of action to develop required technological capacities. c) Developing countries which have a certain technological capacity in these areas are requested to disseminate pertinent information and assist other developing countries in providing facilities developed by them in regard to training of skills, advisory services and pertinent information. d)  International organisations such as UNIDO, UNESCO, UNCTAD and UNCSTD should cooperate in promoting and developing research and development facilities and institutional mechanisms whereby the necessary technical skills could be acquired by the developing countries through securing expertise from developed countries.

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e)  Joint efforts should be made in determining well in advance the type and extent of the technological capacities that would be required in the future by developing countries.

Cooperative Efforts for Enhancing Negotiating Power of the Developing Countries in Regard to Technology Suppliers 23.  Bearing in mind the importance of the experiences existing in developing countries with regard to the transfer of technology and in order to strengthen the negotiating capacities in the developing countries based on the experience of other developing countries in this field and to enable them to secure just and equitable terms in the acquisition of technologies from developed countries, the Conference recommended the following action: a)  The strengthening of cooperation in the field of industrial property and of national regulations that govern the transfer of technology, the analysis and compilation of these regulations, the exchange of information and experience, and the establishment of cooperative relations among national, subregional and regional organisations that are competent in this field. b)  The collection and dissemination of information to interested governments on the terms and conditions, and consequent elaboration of model contracts for the transfer of technology from the developed countries. c)  Organization of training programmes. d)  Compilation and analysis of laws and regulations dealing with the importation of technologies, their absorption and use in the developing countries. e)  Promotion of the utilisation of services of appropriate technical consultancy organisations of developing countries for evaluating and overseeing the implementation of projects in other developing countries involving technology supplies by developed countries. In addition: f)  Developing countries should, when appropriate, conduct joint negotiations for the purchase or transfer of specific technologies required from the industrialized countries including establishment of multinational organisations or associations for this purpose. g)  The Technological Information Exchange System (TIES), under the auspices of UNIDO, should be strengthened and enlarged to include other developing countries. h)  The existing association of national technological registries in the developing countries should be encouraged. i) UNIDO, UNCTAD, UNESCO, WIPO, UNCSTD, and other appropriate organisations should be requested to provide the necessary secretariat facilities, organize technical meetings of the developing countries and to facilitate the exchange of information among these countries on the basis of the experiences acquired. j)  A meeting of experts of interested national organisations should be convened to review the experience in dealing with the problems of the acquisition of technologies before the end of 1982.

Steps to Overcome Constraints to the Transfer of Technology among Developing Countries 24.  In order to formulate measures to overcome constraints, which hamper a greater flow of technology among the developing countries, the Conference recommended the following action: a) Developing countries should prepare technology profiles for products and processes, which will be of interest to other developing countries.

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b)  A bulletin containing information on technology surveys and research, technology transfer contracts and laws and available technologies should be published periodically. c)  Developing countries and the international organisations should be requested to provide assistance in comparing experience to identify their respective comparative advantages. d)  Specific steps and measures through agreements or other arrangements on the interregional, regional, subregional and bilateral levels to facilitate transfer of technology as well as promoting the increased procurement of technology from developing countries should be undertaken. e)  Financial investment and services needed to facilitate the speedy transfer of technology among developing countries should be enhanced.

Cooperation in Research and Development for New Technology in Energy 25.  In order to organize and promote cooperation in research and development efforts in developing new technologies for energy, including alternative technologies in energy intensive applications for rapid economic development of developing countries, and promote cooperation among developing countries in the use of applications of such development in their technological infrastructure, the Conference recommended that developing countries should jointly undertake research and development efforts, organize programmes for efficient utilization of energy and exchange of technical experts. 26.  In order to ensure and enhance the implementation of the relevant measures agreed above, including those referred to in 18 (b), 18 (d), 20 (a), 20 (c), 21 (c), and 23 (j), the Conference recommended that a meeting of heads of national science and technology agencies of the developing countries should be held. The heads of national science and technology agencies should direct the actions to be pursued by the Group of 77 as a result of their meeting. The Group of 77 in Vienna should prepare and convene the meeting of heads of national science and technology agencies early in 1982.

FOOD AND AGRICULTURE Cooperative Action in Food and Agriculture Production 27.  The Conference noted with concern the critical food situation facing developing countries. Many countries confront a situation where imports have tended to grow rapidly in the face of shrinking real foreign exchange earnings with a consequent aggravation of their indebtedness. Others have been faced with the lack of assured sources of supply from developed countries, which has further compounded the economic situation of these developing countries. It also expressed great concern that food is being increasingly used by some developed countries as a political weapon. Forecasts on the food and agriculture situation, including fisheries, for the present decade and beyond present very disquieting prospects. The Conference urged the international community to take urgent and concerted action. 28.  Reiterating that cooperation in the sector of food and agriculture should be accorded priority in ECDC, the Conference recommended that urgent and concrete measures should be taken to make full use of potential production capacities of developing countries with a view to accelerating food production and attaining national and collective self-reliance. 29.  The Conference recommended that an increase in joint food production capacities of developing countries should be attained through cooperative arrangements on mutually beneficial terms, including joint ventures, in areas of land, water and manpower resources. a)  Countries with shared water resources should, with full respect to each other’s interests, enter into cooperative actions aimed at optimum and rational utilization and conservation of

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water resources. Developing countries with requisite know-how, technical, and/or financial resources should cooperate with other developing countries in planning, designing and implementation of such joint undertakings. b) Cooperation should be encouraged among countries with extensive land and other resources and those endowed with requisite technological know-how, management capacities and finance, to make optimum and rational use of land resources for maximizing production of food and other agricultural commodities.

Cooperative Action to Food Security 30.  Besides the cooperative efforts required to increase agricultural production and productivity as the most important instruments to attain greater national and collective self-reliance in food supplies, reduce dependence on the world food market and food aid, and diminish and proportion of foreign exchange earnings used for food imports, the Conference recommended that: a)  Developing countries, subject to their national policies, should take cooperative action to establish a scheme for acquiring and maintaining food reserves including infrastructure arrangements (viz. Storage, marketing, transportation and port facilities and institutions for stock management and distribution), utilizing as far as possible locally available construction materials and designs. b) The above-mentioned scheme should be composed of a network of sub-regional and regional food reserves and financial arrangements. In the establishment of these reserves, the experience of some regional reserves already established, such as in the ASEAN, or under way as in the SAHEL, could be used. c)  In order to meet the food needs of developing countries, vulnerable to food shortages, those countries which find themselves in a situation which allows them to do so should make contributions in cash, kind and technical expertise for the improvement of infrastructures, expansion of storage and marketing facilities, improvement of communications, and inland transportation and stock management institutions. The least developed countries should be given this assistance on concessional terms. d)  A group of experts should be convened to prepare a project on a scheme for acquiring and maintaining food reserves which could include, inter alia, institutional and financial arrangements, and present its conclusions to the Group of 77 not later than the end of 1981.

Cooperative Action for the Production and Supply of Agricultural Inputs 31.  The Conference recommended that cooperative arrangements for the production and supply of critical agricultural inputs should include, inter alia, the following: a)  Joint assessment of the requirements of developing countries for critical agricultural inputs and identification of countries with the potential for producing them. b)  Establishment of joint ventures and other cooperative measures for production and marketing of agricultural inputs, such as fertilizers, pesticides, agricultural machinery and implements as well as improved seed and livestock breeds. The experience of some action mechanisms already established in regional economic organisations, could be used. c)  Developing countries which have the potential for producing agricultural inputs should be given preference by other developing countries in the acquisition of agricultural inputs, and thus encourage them to start manufacturing or to produce larger quantities. Producing and consuming countries should reach agreement on terms and conditions under which inputs would be produced and delivered on reciprocally advantageous basis.

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d)  Consultations on specific issues among managers and technicians should be organized and deal particularly with the implementation of cooperative measures in the fields of production and marketing of critical agricultural inputs.

Cooperative Action in Fisheries 32.  Cooperation in the fisheries sector shall be based upon the new legal regime of the oceans emerging from the Third United Nations Conference on the Law of the Sea. The Conference on ECDC recommended that cooperation in fisheries should aim at rapidly increasing the output and supplies of fish and fish products as a means of increasing total food supplies. In this regard the Conference recommended that this cooperation may include: a)  Joint production of fishery equipment, including the building of fishing vessels. b)  Exchange and transfer of modern fishery technologies for inland water fish production and marine aquaculture. c) Cooperative research in improved techniques for industrial processing and use of fish products. d)  Technical cooperation in institution building and the overall organization and management of fishery resources, and training fisherman and technical personnel. e)  Cooperation in the development of improved techniques in small-scale fishing, and in the organization of the sector with a view to increasing its production and benefits. f)  Joint action for the promotion of trade in fish and fish products in international markets. g)  Cooperation against pollution of the marine environment, lakes and rivers.

Cooperative Action in Management of Natural Resources 33.  The Conference recommended that cooperation in improved ecological management with a view to securing rational exploitation and development of natural resources, especially rangelands, forestry and wild life, and in using forests as a renewable source of energy should be strongly promoted.

Cooperative Action in Research and Development, and Transfer of Technology in Food and Agriculture 34.  The Conference recommended that cooperation in research and development and transfer of technology among developing countries should include areas such as: a)  Planning for increased food and agricultural production with emphasis on assessments of medium-to-long-term outlook at regional and subregional levels, and formulation of cooperative activities in food and agriculture by economic integration grouping of developing countries. b)  Soil and water management. c)  Optimizing use of fertilizers and other agricultural inputs. d)  Development of new technologies and their adaptation and extension to specific conditions of developing countries. e)  Development of human resources, including as a priority continuous training programmes, to ensure adequate staffing at national levels, and raising the productivity in the agricultural sector. f)  Prevention of food losses, inter-country projects for the development of high-yielding varieties and production and distribution of improved seeds and exchange of new germ plasms. g)  Control of pests and diseases with particular reference to intensification of joint efforts and programmes to combat trypanosomiasis and onchocerciases in Africa and strengthening of

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regional programmes and projects for the control of locust, rinderpest and African swine fever, and others. h)  Control of desertification, particularly through intensification of ongoing programmes and projects dealing with assessments of soil degradation, destocking of abused grazing lands and ecological management of arid and semi-arid range of forest lands. i)  Research and development for new and renewable sources of energy as well as their commercial application in food productions and integrated rural development. j)  The above cooperation, based on mutual contributions and shared financing as well as in the sharing of the results thereof, should include research at national or regional institutions, collaborative research by two or more countries, collaborative training facilities including study tours by farmers and exchange of experts and including also attachments of research and scientists, among the developing countries.

Cooperation in Rural Development 35. Recalling inter alia the objectives and Programme of Action as adopted by the World Conference on Agrarian Reform and Rural Development, that was held in Rome in 1979, the Conference recommended that economic and technical cooperation among developing countries in activities affecting rural development should be promoted particularly through: a)  Exchange of experience and expertise gained in planning and implementing programmes of agrarian reform and rural development. b)  Exchange of experience and information on people’s participation, rural organisations and integration of women in rural development. c)  Setting up Regional Centres for Integrated Rural Development among interested developing countries.

Cooperative Action in Trade 36.  With a view to increasing trade in food and other agricultural commodities among developing countries, the Conference recommended that: a)  Cooperation between trading organisations should be developed. b)  Food-exporting developing countries should take concrete measures to accord priority, without prejudice to their national interests or to their existing commitments, to food-importing developing countries in securing their food supplies so as to meet their net domestic requirements. c)  The possibility of cooperation in exchanging agricultural input supplies in exchange for raw materials should also be explored. d)  Producer’s associations of developing countries should play a role in promoting multinational production enterprises, by, inter alia, the establishment of Action Committees, the preparation of feasibility studies and the organization of symposia and other meetings in order to bring together all interested parties. e)  Consultations such as those recommended in paragraph 31 (d) should be regularly held to examine the various areas of trade cooperation in the field of food and agriculture. f)  Food imports of developing countries from developed countries should be assessed against the potential of other developing countries, which can produce and supply these commodities. Projects could be prepared by the potential producing countries in conjunction with food importing countries to meet the needs of the latter. These projects should identify requirements of resources both financial and technical.

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37.  The Group of 77 in Rome is entrusted with the task of convening a meeting in 1982 or as soon as possible thereafter, that would analyze the measures agreed above related to ECDC in the field of food and agriculture with a view to enhancing their implementation.

ENERGY 38.  It has been recognized by the international community that it has entered a transition period away from excessive reliance on hydrocarbons as a source of energy towards a more diversified pattern of energy consumption. Excessive and wasteful consumption of energy in the industrialized countries coupled with the fact that oil was used more than any other source of energy as a result of artificially low maintained prices led to rapid depletion of oil resources as well as a relative scarcity of hydrocarbons. 39.  Energy plays a crucial role in the development of the developing countries. In order to ensure an organized and orderly energy transition period as referred to above and give the required support to the development process, notwithstanding the responsibilities of developed countries for conservation, as they are consumers of more than 80 per cent of energy, it will be necessary, inter alia, to strengthen cooperation among developing countries in the field of energy. 40. Without prejudice to national interests and commitments, a comprehensive set of short, medium and long-term measures and steps have to be adopted in areas such as national energy deficits, development of new energy sources, uneven geographical distribution of exploration and resource evaluation efforts, efficient use of energy, development of appropriate technologies, processing and downstream activities, information and training, as well as the other measures related to energy referred to in this section, in compliance with the principle of full and permanent sovereignty of States over their natural resources.

Priority of Energy-supplies to Developing Countries 41.  With regard to the recommendation that ‘Energy-exporting developing countries should take concrete measures to accord priority, without prejudice to their national interest or to their existing commitments, to the other developing countries in securing their energy supplies through direct contracts between the Government of the exporting and importing countries or their respective agencies at the official prices so as to meet their net domestic requirements’ the Conference welcomed the fact that it was being carried out. 42.  The Conference recommended that a meeting of concerned State agencies and enterprises to be held in Vienna in the first half of 1982 should explore the ways and means to further strengthen coordination among developing countries in energy development, supplies and rationalization of energy consumption, and promote direct Government to Government deals. 43.  The Conference also recommended that the same meeting should look at the following fields with a view to explore additional areas where economic cooperation among developing countries can be achieved: a)  Ways and means to make fuller use of existing refining capacities in developing countries with a view to exchange output between refineries in order to meet their consumption patterns, without prejudice to national interests, commitments and overall refinery economics. b)  Taking into account the present capacities and product mix of refineries in the developing countries, as well as an assessment of their future refinery imbalances, in the preparation of studies to be completed within a period of one year on the possibility of utilizing excess refining capacity and the establishment of regional refineries. In carrying out these studies, particular attention must be given to the least developed countries.

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c)  Taking appropriate steps to establish linkages for distribution and consumption of energy among developing countries, so as to minimize the overall transport costs as well as avoid disruption in the supply of energy to developing countries. 44.  It was recommended that energy could be exchanged, if required and to the extent possible, from one of its forms to another on a subregional, regional and interregional basis, as appropriate, in the following fields: a)  Electricity (energy and load charge) by means of establishment of international grids between national electricity networks in order to minimize investments and exploitation costs. Furthermore, these grids must be systematically developed in order to promote the development of large-scale power plants. b)  Other sources of energy exchange of energy should be extended to other sources of energy such as coal, nuclear, including feedstock, gas, solar, geothermal and wind power, tidal power, wave power and thermal gradient of the sea, biomass conversion, fuelwood, charcoal, peat, energy from drought animals, oil shale, tar sands and hydropower.

Evaluation of Energy Potential in Developing Countries, Joint Efforts for Exploration and Exploitation of Additional Sources of Energy in the Energy-importing Developing Countries 45.  The Conference considered that there were two aspects to this problem, namely, the technical and the financial. In this regard it stressed the importance of strengthening technical and financial cooperation among developing countries and recommended that: a)  Technological expertise already existing in some developing countries may be made available to other developing countries on preferential terms. To this end, an inventory of available technologies should be developed without prejudice to national interest and legislation. The meeting of heads of national science and technology agencies envisaged in paragraph 26 of the chapter on technology should take up this question and agree on a course of action. b)  Without prejudice to national interest and legislation and on the basis of according incentives to investment, full use should be made of relevant information regarding different schemes and projects with the purpose of reducing costs and facilitating the undertaking of investments in the energy sector in he developing countries. This matter is to be taken up by the meeting of experts recommended in paragraphs 52 and 53 (b). c)  The possibilities of exchanging information and the existing experiences in cooperation matters for the exploration and development of new reserves of conventional energies should be studied.

Expansion of Developing Countries Capacities in Transportation, Refining Processing and other Downstream Activities 46. It was agreed that increased exchange of technical information and closer coordination among developing countries was necessary in order to enable the successful establishment and operation of joint ventures in energy-related activities. 47.  The Conference recommended that these projects or joint ventures should be based on sound economic considerations and that guarantees for the investments of other developing countries also in such projects or joint ventures should be provided. It was recommended that in projects where financial resources and/or expertise were being provided for by developing countries, a preferential treatment without prejudice to national legislation should be given to these countries

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in carrying out such projects. To this end, it was felt that the recommendation contained in paragraph 52 could provide a useful basis to monitor developments in this regard.

Establishment of Multinational Enterprises in Energy and Energy related Capital Equipment 48.  The Conference recommended that: a)  An inventory be made of information of those developing countries already producing energy-related capital goods, such as drilling, production and storage equipment, pipelines and electrical equipment, as well as equipment and parts for refineries and petrochemical plants. b)  Pooling and fuller utilization of existing capacities of developing countries in the production of capital goods should be achieved to the fullest extent possible for the mutual advantage of developing countries. c)  Multinational enterprises for capital goods for engineering, consulting and related services in the energy sector should be established. Interested countries should coordinate their efforts towards the establishment of these multinational enterprises. In order to encourage this activity, preferential treatment should be accorded to other developing countries in setting up such enterprises.

Development and Exploitation of New and Renewable Sources of Energy 49.  The Conference recommended that: a)  A group of experts should be convened to study the problems and recommend ways and means of stimulating cooperation among developing countries in the development and exploitation of new and renewable sources of energy, and in particular in research and development, taking into account the experience acquired by the developing countries at the national and regional levels, as well as make an evaluation of the potential contribution in the short and long-term of such sources of energy to the development of the developing countries. This group of experts should also prepare a comprehensive set of recommendations in the field of training and development of personnel of developing countries in new and renewable sources of energy. This should include, inter alia, exchange of personnel, sharing of experiences, and the establishment of national centres of multinational scope for training and research; it will take fully into account the specific offers coming from some developing countries of placing at the disposal of other developing countries the technological progress related to new and renewable sources of energy which were put forward at the regional preparatory meetings of the U.N. Conference on new and renewable sources of energy, as well as the principles of cooperation contained in regional action plans set out by these meetings. b)  The above group of experts should be convened by the High-level Meeting referred to in (e) below. c)  The developing countries should negotiate, inter alia, at the United Nations Conference on New and Renewable Sources of Energy appropriate support and assistance from developed countries and international organizations for the implementation of a programme of research and development and diffusion of renewable energy technology. d) The developing countries should make the maximum use of the forthcoming United Nations Conference on New and Renewable Sources of Energy in formulating recommendations suited for their rapid economic development.

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e)  Following the conclusion of the UN Conference on New and Renewable Sources of Energy, a High-level Meeting should be organized to agree on a plan of action for cooperation among developing countries in utilizing new and renewable sources of energy in fields such as biomass, hydro-power, solar, wind and tidal energy.; This High-Level Meeting should be convened by the Group of 77 in New York.

Cooperation in improving Productivity in Drilling, Reservoir Engineering, Refining Technology, for Hydrocarbons 50.  The Conference recommended that the proposed meeting of concerned State agencies and enterprises referred to in paragraph 42 should agree on steps to prepare an inventory, and develop the appropriate methodology, in order to facilitate and strengthen the development and cooperation, and to make full use of existing and potential capabilities of developing countries in areas such as improving productivity in drilling, reservoir engineering, refining technology and other related activities, and consider to this effect the establishment of an institutional framework.

Cooperation in Peaceful Uses of Nuclear Energy 51.  The Conference recommended the following: a)  To enhance cooperation and exchange of nuclear information among developing countries on a bilateral, regional, and multilateral basis in various aspects of nuclear energy. b)  That the Group of 77 should formulate the Group’s position in preparation for the United Nations Conference for the Promotion of International Cooperation in the Peaceful Uses of Nuclear Energy for Economic and Social Development, to be convened in the first half of 1983, so as to ensure that the Conference is enabled to discuss all aspects of the development of nuclear energy of interest to the developing countries, as well as for working for the elimination of discriminatory treatment against developing countries in international cooperation in the field. The Group of 77 in New York and Vienna should continue their efforts to attain the above-mentioned objectives.

Exchange of Information and Experiences in the Energy Sector 52.  The Conference recommended that developing countries should regularly exchange information on the various aspects related to energy production and utilisation in the developing countries, particularly in regard to demand and supply, technical matters, energy use, conservation, and energy-related technologies. To this end, a meeting of experts on energy information systems should convene in Vienna in the second half of 1981 in order to examine this question and suggest the modalities of a practical information procedure and network on the question, taking into account existing national and regional information centres. The Group of 77 in New York was entrusted with the preparation of this meeting.

Cooperation in Manpower Training in all Fields of Energy 53.  The Conference recommended that: a)  The facilities of existing training institutions in developing countries should be expanded and, if appropriate, new ones created in developing countries, with the cooperation of competent organisations, in order to meet the increasing training requirements of developing countries for finding and developing indigenous energy resources, particularly in relation to the

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skills required for negotiation and management of energy exploration and exploitation projects. In this connection, it was felt that necessary action be taken in regard to: (i)  exchange of experts and personnel; (ii)  exchange of information; (iii)  in-plant training facilities; (iv)  other actions conducive to strengthening ECDC and TCDC in this area; (v)  preparation of an inventory of relevant institutions in developing countries. b)  A meeting of Experts be convened early in 1982, to examine TCDC in the above-mentioned areas including: training and manpower development, development of subregional, regional and interregional centres of excellence in technology; cooperation among institutions in developing countries engaged in similar activities; collective cooperation in consultancy and technical advisory services; and mutual contribution, including shared financing, to the organisation of research and development with participation in the results thereof. Arrangements for the convening of this meeting should be prepared by the Group of 77 in New York.

Action in Support of Developing Countries Struggle Against Apartheid and Social Discrimination 54. The Conference, notwithstanding the difficulties in fully implementing the oil embargo against South Africa because of the lack of evidence of genuine link between vessel and flag of registry, agreed to fully and effectively implement the oil embargo against South Africa and invited the Group of 77 to take appropriate steps. 55.  The Conference, noting that many developing countries observe a total oil embargo against Israel as a sanction against Israeli policies and practices in the occupied Arab territories, agreed that the Group as a whole shall not undermine the efforts of these countries and invited those developing countries who have not yet imposed an oil embargo against Israel to consider ways and means of actively and effectively supporting the action of the developing countries who observe the oil embargo against Israel.

RAW MATERIALS 56.  The continuous deterioration of the terms of trade of developing countries places severe constraints on their development efforts. Besides the permanent erosion of the purchasing power of their raw materials exports earnings, developing countries are adversely affected by wide and continuous short-term fluctuation of raw materials prices, mainly due to speculation, including sale of strategic reserves by developed counties, lack of financial resources preventing developing countries from maintaining their own national reserves, consumption boycotting, disorder in international markets, and by depressed raw materials price levels, which sometimes do not cover their production costs and which do not reflect their share in the final products values and are not remunerative to producers. 57.  Sustained efforts have been made to overcome the various problems related to raw materials, particularly within the Integrated Programme for Commodities. Although agreement has been reached on the establishment of the Common Fund, only limited progress has been made in the negotiation of commodity agreements as well as in dealing with other elements of the Integrated Programme for Commodities. 58.  In order to provide adequate support to the developing process, it is necessary to enhance economic cooperation among developing countries in the field of raw materials, particularly through a comprehensive set of measures and steps designed to, inter alia, the stabilization of raw materials, prices at levels remunerative in real terms to producers, improvement of the raw

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materials export earnings purchasing power, and increased participation of developing countries in the processing, marketing, distribution and transshipment activities of primary products in their raw and processed forms.

Prevention of Fluctuations in the Price of Raw Materials 59.  The Conference recommended that: a) Developing countries should sign and ratify the Agreement establishing the Common Fund as soon as possible to enable the Agreement to enter into force not later than April 1982 as envisaged in the Agreement. The Conference decided to endorse the agreement reached in the New Delhi Conference of the Ministers of Foreign Affairs of the Non-Aligned Countries that the Headquarters of the Common Fund for Commodities should be located in a developing country. The Conference took note of the Philippines offer as permanent site of the Headquarters of the Common Fund; b)  While following a commodity by commodity approach and therefore taking due account of the specific conditions of each commodity in the international market, priority consideration should be given by interested developing countries to measures of supply management which could be supplemented by stocking arrangements, including the setting up of appropriate mechanisms to ensure remunerative and stable export earnings to developing countries for their commodity export. The Group of 77 in Geneva should organize meetings of interested producing countries to consider appropriate, supply management measures particularly in products in which the developing countries have the bulk of the share of world production. Where necessary these meetings should be hosted by individual producing countries; c)  With a view to fostering further cooperation between raw material producing developing countries, existing developing countries producer associations should be strengthened, and new associations should be established as appropriate. The secretariat of the existing producer’s associations should provide technical assistance in the setting up of new producer’s associations. Developing countries concerned should, in the context of their producer’s associations, take urgent steps towards the entry into force of the Statute of the Council of Producer’s Associations; d)  Full consideration should be given to the study to be prepared by the group of experts of the Non-Aligned Countries on the proposal by Madagascar for the setting up of a stabilization fund; e)  In any of the arrangements made in (b) above as well as in considering the measures and actions already mentioned, due attention should be given to the position of developing importing countries which lack commodities; f)  While recognizing the importance of enhancing primary commodity trade among developing countries, priority should also be given to trade in manufactures among such countries in view of its potential for the expansion of trade and their economic development.

Mutual Assistance in Developing, Exploiting and Processing of Developing Countries Raw Materials Resources 60.  The Conference recommended that a study should be carried out by an expert group to be convened by the Group of 77 in Geneva, on possible arrangements for the preparation of joint projects and other suitable modalities for further developing, exploiting and processing raw material resources of developing countries. It also recommended that develop0ing countries should intensify efforts in order to increase participation in the processing, research and development for new uses, distribution and marketing and transshipment activities of primary products in their raw and processed forms.

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Priority of Raw Materials Supplies to Developing Countries 61. The Conference explored the different ways and means to achieve a better coordination among the developing countries in order to safeguard their interest and secure their raw materials supplies on a priority basis. To this end it recommended that: a)  As far as measures related to marketing of indigenous raw materials in developing countries are concerned, raw material-exporting developing countries should take concrete measures, such as preference in allocation of quotas, where such quotas are in force, to accord priority, without prejudice to their national interests or to their existing commitments, to other developing countries in securing their raw materials supplies, so as to meet their net domestic requirements. Raw material-importing developing countries should also accord similar priorities, without prejudice to their material interests or to their existing commitments to developing countries while making purchases to cover their import requirements in raw materials. b)  In their procurement of commodities, developing countries should establish direct contacts with suppliers from developing countries with a view to avoiding intermediation from developed countries, including transnational corporations. In this connection relevant arrangements should be established as appropriate. The aforementioned expert group should present specific proposals in this regard. c)  Developing countries should take measures to promote the consumption of products of developing countries, including perishable commodities. 62.  The Conference recommended that the Group of 77 should intensify its consultations and coordination within the framework of the Integrated Programme for Commodities with a view to strengthening mutual support. 63.  The Conference recommended that the mechanism and arrangements to promote financial cooperation among developing countries should make provision, inter alia, for the adequate financing of projects geared towards increasing the participation of the developing countries in the processing, marketing, distribution and transshipment of raw materials. 64.  The Conference recommended that the Group of 77 in Geneva examine and present proposals for the developing countries to correct distorted information leaked by the developed countries in the international commodity markets, with a view to improving their position in such markets and, in this regard, it expressed the importance of carrying out a closer surveillance.

FINANCE Assistance in Alleviating the Balance of Payments Problems of Developing Countries 65. Many developing countries are experiencing severe balance-of-payments problems because of, inter alia, lack of basic infrastructure, the deterioration in their terms of trade in the past decade, and also because of the slow growth of their share of the markets in the world economy. A full response to this problem requires action at the global level and such action must be vigorously pursued. In this connection the Conference recommended that developing countries should coordinate their positions in the relevant international fora and that developing countries themselves take concerted action in this area unilaterally in the spirit of solidarity and in pursuance of the principles of self-reliance through institutions of the developing countries. 66.  The Conference recommended: a) the enlargement of existing financing facilities administered by some developing countries and

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b)  the examination, in the context of paragraph 79, of the feasibility of a financing facility to meet the balance of payments problems, with contributions from interested developing countries and administered by them. 67.  The Conference recognized that efforts in this direction should in no way limit, nor be a substitute for the expansion of resources available from the existing multilateral institutions. It was recommended that developing countries should intensify collective efforts in international fora to ensure that developed countries join the developing countries in establishing a mechanism to alleviate the financial burdens imposed on the developing countries on account of oil price adjustment and the continued inflation of the prices of their imports of goods and services from developed countries and that a group of experts be established to meet in Baghdad during the second half of 1981 in order to work out the modalities of such mechanisms. 68.  The Conference recommended that developing countries concerned should seek increases in the capital of existing regional and subregional development banks comprising industrialized and developing countries. In this context, they should increase their share in such capital and so increase their participation in the decision-making processes of these financial institutions. Membership in these banks should be enlarged to include all interested developing countries of the region as well as other developing countries wishing to be contributors, and the structures and lending programmes should more closely respond to the real needs of the developing countries, including, inter alia, their need for financing of pre-investment projects. Furthermore, developing countries should support, within these regional and subregional development-financing institutions, the establishment of facilities designed to undertake equity investment and promote co-financing of equity investment, in particular from other developing countries. 69.  The Conference agreed that these recommendations should be examined in light of the particular circumstances and procedures of each institution. 70.  The Conference recommended that financial flows among developing countries, both governmental and private, should be stimulated through a series of policies and measures, among which the following deserve immediate attention: a)  Governmental and semi-governmental institutions of developing countries should increase their deposits in other developing country banks particularly those operating in international markets. Developing countries should encourage their institutions to increase their participation in the banks of developing countries on the basis of commercial practices; b)  Special attention should be given to the setting up of regional and interregional trade development banks as well as to strengthening existing regional ones, broadening the fields of operation and encouraging the participation of all countries concerned within the region. The Conference recommended that work on the establishment of an Export Credit Guarantee Facility should continue within UNCTAD; c)  Bilateral, subregional and regional payment arrangements should be reinforced and linkages among themselves should be devised in order to facilitate interregional payment arrangements; d) Developing countries should encourage their institutions to take fuller advantage of opportunities existing in the developing countries’ financial and capital markets, including negotiated credits and equity investments; e)  Developing countries should increase their participation in the purchase of financial instruments issued by national governments, central banks, and public and private companies of other developing countries in the international capital markets, on the basis of commercial practices. It was also suggested that the financial authorities in developing countries with a strong position in international capital markets should assist other developing countries in securing greater access to financial resources from these sources through such means as syndicated loans.

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71.  The Conference recommended that interested developing countries maintain a favourable economic environment, in conformity with their national legislation, policies and economic systems, conducive to bilateral and multilateral financial cooperation among themselves through a range of investment incentives, inter alia, joint venture agreements, as well as other instruments designed to enhance the soundness and attractiveness for an increased flow of capital among themselves. Treaties to avoid double taxation would greatly facilitate this increased flow. It was recommended that to achieve the foregoing objectives, relevant measures should be elaborated by a technical group of experts. 72.  The Conference recommended the improvement of the institutional framework among developing countries to ensure greater awareness of the investment opportunities, and proposed that the appropriate authorities should meet at an early date to exchange information and elaborate their details. 73.  The Conference recognizing the valuable work done by the Group of 24 and by the experts of the Group of 77, recommended that this work should continue and in particular that the Group of 24 should give greater attention to monetary and financial aspects within the programme of ECDC.

Financial Support for Development 74.  The Conference recommended the establishment of a technical group of experts to study the ways and means for the dissemination among developing countries of relevant information about development projects undertaken in developing countries in order to enable other developing countries to participate in tendering of these projects through international competitive bidding. 75. In international competitive bidding the Conference recommended that, for development projects to be executed in their territories or financed by them, developing countries should take appropriate measures to eliminate the disadvantages faced by bidders from developing countries vis-à-vis those from the developed countries. These measures should include, inter alia, the provision of information on the conditions of the bidding on a timely and prompt basis, as well as special treatment consistent with national practice. 76.  The Conference recommended that preferential treatment should also be extended to suppliers from developing countries in the context of government procurement taking into account cost, quality and the time factor. 77.  The Conference considered that the contribution of ECDC to financing development goes beyond the transfer of resources and should be considered as a process of mutual benefit and it discussed, inter alia, the following points: a)  The need for an adequate flow of resources for development financing should be addressed by developing countries also within the framework of ECDC. The financing requirements of developing countries imply an increased commitment for the transfer of additional resources from the industrialized countries if the targets set forth in the Third International Development Strategy are to be met. The amount and modalities of development financing from developed countries has been inadequate. During the past decade financial cooperation among developing countries for development has been notably increased. However, it was mentioned that further possibilities of cooperation are open on a bilateral and multilateral basis. In this regard, several proposals, which had been made, were noted. b)  It was considered that utilization of financial and other resources should be devoted to the priority sectors of the developing countries such as energy, infrastructure, raw materials, agriculture, capital goods, trade and transport in accordance with their national plans and programmes.

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c)  A number of financial activities might contribute to strengthening the development perspectives of developing countries. Flexibility in institutional arrangements would be helpful to accommodate different possibilities of action. 78.  The Conference recommended that financing should be available for projects and activities, which would lead to the further expansion of ECDC, and that this could be facilitated by strengthening the links between existing regional and subregional institutions. 79.  The Conference recommended that a Group of Experts be established to examine the proposals made by the Non-Aligned Movement and the Group of 77, and to propose concrete measures by the end of 1981 for financial cooperation in the field of development financing, inter alia, the entry into force of the Non-Aligned Solidarity Fund, and the bank for developing countries as indicated by the Group of 77 Ministerial Meeting at Arusha in 1979.

INDUSTRIALIZATION Collation and Dissemination of Information 80. In order to facilitate technological flows and industrial cooperation between developing countries in specific sectors and projects by correlating mutual capabilities and capacities with requirements, the Conference recommended the following action: a) Publish periodically, with the assistance of a competent international organization or agency, an industrial bulletin which would contain, inter alia, the following information: i)  details of new industrial capacity and the type of assistance or cooperation required; ii)  details of requirements for modernization and strengthening of existing industrial units (good, services, technology); iii)  sources of technology, industrial equipment and other inputs; b)  Consider the desirability of creating an association and organizing periodic meetings of national chambers of commerce and/or industry, or equivalent national bodies, as a means of increasing the flow of information and cooperation in the construction of new industrial projects and modernization of existing units; c)  Establish a system for the exchange of information on: i)  national policies relating to industrialization including priorities, targets, manpower training and appropriate financing; ii)  the activities of transnational corporations operating in developing countries, especially those involved in the production of industrial manufactures; iii)  technical and financial specifications relating to contracts with the developed countries so as to reduce costs and strengthen negotiating capacity of developing countries.

Cooperation in the Construction of New Industrial Projects and Modernization of Existing Units 81.  In order to help create favourable conditions conducive to joint ventures, multinational production enterprises or other practical ways of cooperation as may be decided by interested developing countries in a particular industrial sector, the Conference recommended the following action: a)  Establishment of projects of industrial cooperation involving transfer of technology and setting up of joint ventures aimed at promoting self-reliance by utilizing complementarities in skills, capabilities and markets and other relevant resources, and with due reference to the priority sectors, such as: i)  raw materials

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ii)  fisheries, agriculture and agro-industries iii)  mining and mineral processing iv)  petrochemicals, chemicals, fertilizers and pharmaceuticals v)  intermediate and capital goods industries vi) textiles vii)  forest-based industries viii)  building materials ix)  power generation b)  Specific consideration to further the implementation of the interregional programme on pharmaceuticals, as well as to other projects of a similar nature; c)  Application of technology directed towards increasing the energy-efficiency of industrial processes and equipment; d)  Promotion and encouragement of joint ventures and agreements to increase the potential of energy resources of developing countries on bilateral, subregional and regional levels; e)  Establishment of an appropriate mechanism to encourage the interchange of experience and information on projects executed in a developing country for the construction of similar units in other developing countries; f)  Promotion of trade fairs and industrial exhibitions to propagate the capabilities of developing countries particularly in the priority sectors. In order to achieve this purpose, the following was recommended: i)  any developing country with an established national fair specializing in one or more branches of industry, particularly the capital goods industry, should consider the possibility of opening such an exposition to other countries from the Group of 77; ii)  the announcement of such an initiative will be made utilizing diplomatic or other channels at least 18 months in advance; iii)  the host country will advise any existing national research and development institution dealing with the industrial fields concerned to organize, as appropriate, seminars or symposia in collaboration with the counterpart institutions in the developing countries to be held during the fair; iv)  other developing countries wishing to participate in such fairs will be awarded the usual facilities of international expositions; v)  developing countries should be so represented as to facilitate exploratory negotiations concerning joint ventures. g)  Identification of sectors in which joint ventures could respond to urgent needs in the developing countries at the bilateral, subregional, regional and interregional levels, and establishment of priorities and undertaking of corresponding feasibility studies in order to promote and implement specific projects.

Enhancement of Industrial Capacities through Joint Efforts 82.  In order to join efforts in all fields of industrialization, particularly in those areas where individual national resources are inadequate or where joint efforts are more likely to promote the overall development of developing countries, the Conference recommended the following action: a)  Harmonizing the potential of existing national, subregional, regional and interregional institutions dealing with project preparation, including training for promoting economic

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cooperation among developing countries. A coordinating mechanism among such institutions would allow: i) a better integration of the work of the national organizations responsible for the pre-investment activities; ii)  the improvement of the pre-investment process in the developing countries through the exchange of information and experiences in this fields; iii)  the strengthening of the negotiating capacity of developing countries in all aspects related to industrial projects; iv)  the improvement of the knowledge about alternative technological options in order to achieve a better utilization of resources; v)  the harmonization of pre-investment policies so as to facilitate joint ventures among developing countries; vi)  the achievement of a higher efficiency of the organizations responsible for the financing of industrial studies by improving its human resources, and administrative and operational capabilities; b)  Establishment of a system of cooperation and coordination among developing countries on specific industrial sectors, at the regional, subregional and interregional levels. These meetings will bring together, by industrial sector, those involved in production. The meetings, which should be held periodically, will assist developing countries to: •  become aware of the current situation in the different branches of industry; •  get to know the capacities and requirements of each country. Such meetings should result in: •  the drawing up of agreements on exchange of manufactured and semi-manufactured goods; •  feasibility studies for joint projects; c)  Assist requesting developing countries, particularly the least developed countries, in specific tasks concerning identification, preparation or evaluation of industrial projects through the utilization of existing expertise in other developing countries. To this end: i)  interested developing countries could directly approach other members of the Group of 77 in New  York indicating their requirement for consultancy or other services for identification of industrial opportunities, preparation, and evaluation of specific projects; ii)  other developing countries in a position to do so would submit names of national experts, or organizations and enterprises through their missions in New  York to the requesting country who will make appropriate selections; d)  Setting up of task forces of national experts or organizations for assistance in specific industrial projects. The functioning of such a mechanism would be reviewed after two years of its operation; e)  Compilation by the developing countries of a directory aimed at facilitating industrial cooperation among themselves in specific industrial sectors correlating mutual cooperation and capacities with their requirements; f) Discussion and coordination of matters of mutual interest among developing countries  prior to their attending the meetings organized within the UNIDO System of Consultations; g)  Coordination by focal points with international financial institutions in undertaking feasibility studies and financing new industrial infrastructures.

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Cooperation in the Development of Human Resources for Industrialization 83.  With respect to cooperation in the development of human resources for industrial development, the Conference recommended the following action: a)  The cooperation of UNIDO and other relevant international organizations be sought in the publication of information on training facilities that developing countries can provide from 1982 onwards as well as their immediate requirements for training in industrial skills that cannot be met locally. b)  A high-level meeting be held early in 1982 of officials responsible for industrial manpower training to identify specific areas of cooperation which could lead to: i)  the conclusion of arrangements-agreements at the subregional, regional and interregional levels in developing human resources; ii)  the preparation of long-term programmes of cooperation for the exchange of experience and skills, and to improve and coordinate national centres of excellence for industrial training and management; iii)  the strengthening of existing institutions and establishing of new ones in priority areas, for which financing will be sought from UNDP as well as regional and interregional financial institutions. c) Other action-oriented measures be undertaken at national and international levels for the: i)  establishment of a machinery, preferably through the cooperation of regional economic commissions or other relevant regional organizations, UNIDO as well as UNESCO, to facilitate placement in appropriate institutions between interested countries; ii)  encouragement of free movement of surplus trained manpower among developing countries through mutually beneficial arrangements between interested countries; iii)  establishment of scholarships and financial grants to pay for the cost of counterpart training; iv)  consolidation and integration of fellowship and scholarship programmes for technical manpower training; v) encouragement of regional or multinational specialized training and research institutions; vi)  Organization of course, seminars and other training facilities designed to improve the technical and managerial capacity of developing countries in dealing with problems inherent in industrial development. For this purpose, arrangements should be made with national, sub-regional, regional and interregional institutions. 84.  The Group of 77 in Vienna is entrusted with the task of convening a meeting in 1982 or as soon as possible thereafter, that would analyze the measures agreed above related to ECDC in the field of industrialization with a view to enhancing their implementation.

TECHNICAL COOPERATION AMONG DEVELOPING COUNTRIES (TCDC) 85.  The Conference reaffirmed the important role of technical cooperation among developing countries as an instrument for the promotion and implementation of ECDC, and in this respect reaffirmed the pertinent recommendations contained in the Buenos Aires Plan of Action. 86. With a view to promoting the reinforcement of TCDC, the Conference furthermore recommended: a)  Priority utilization of the skills and opportunities available in the developing countries;

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b)  Undertaking a study aimed at drawing up a model contract defining the conditions for recruiting experts from the developing countries. A group of experts shall be convened to study this matter prior to the end of 1982; c)  Creating or reinforcing the TCDC systems at the national level, in cooperation with the ECDC focal points, with a view to gathering, processing and disseminating information concerning the methods, knowledge and experience acquired and opportunities available in matters pertaining to TCDC; d)  Increasing cooperation and cooperation among the national TCDC system so as to study the methods, which will ensure optimum use of the human and financial resources available for TCDC at the bilateral, regional and international levels. 87.  The Conference took note of the UNDP project for a Development Information Network (DIN) for information flows among developing countries in support of economic and technical cooperation among developing countries and requested the Group of 77 in New York to review progress made on the implementation of the project, with a view to ensuring that this proposed project would contribute to the attainment of the objectives of economic and technical cooperation among developing countries. 88.  The Conference recommended that, to the above ends, a biennial meeting of the heads of national technical cooperation agencies of the Group of 77 be convened, in accordance with the provisions contained in the mechanisms for coordination agreed to in this Conference. This meeting will also be entrusted with the task of helping in the follow-up, monitoring and evaluation of the recommendations in the field of TCDC adopted in the Conference in the areas of trade, technology, food and agriculture, energy, raw materials, finance and industrialization. 89.  The ECDC Programme is carried out at the subregional, regional and interregional levels. Where regional or subregional groupings exist, the global programme adopted at the Caracas Conference would not duplicate or hinder the ongoing activities of the groupings concerned but would rather usefully complement them. It embraces a variety of activities, which require a global coordination scheme to help ensure its effective implementation. The Group of 77 should thereby be strengthened and its informal character preserved. This scheme is hereafter set forth.

III.  MECHANISMS FOR COORDINATION, MONITORING, FOLLOW-UP ACTIONS AND EVALUATION Review, Policy Making and General Follow-up 1.  Intergovernmental Follow-up and Co-ordination Committee1. a.  This Committee will be made up of senior officials, preferably responsible for ECDC, with the participation of the heads of the national focal points and will: i)  review periodically the progress made in the implementation of the ECDC programme; ii)  review periodically the programme and calendar of activities; iii)  agree on measures designed to give more impetus to the implementation of activities within the ECDC programme, when so required;

1.

Subsequently renamed as the Intergovernmental Follow-up and Coordination Committee on South-South Cooperation by decision of the Thirty-fifth Annual Meeting of Ministers for Foreign Affairs of the Group of 77 held at UN Headquarters in New York on 23 September 2011.

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iv)  recommend the Annual Ministerial Meeting new policy guidelines designed to impart greater operationality and coherence to the Programme; v)  report to the Ministers on any significant matter relating to the Programme. b.  The Follow-up and Coordination Committee will meet once a year. c.  The Committee will make use, inter alia, of the information of various ECDC activities to be collated by the Chairmen of the Group of 77 and the Regional Coordinators of the Group of all United Nations Centres, at their meetings held twice a year.

2.  Sectoral Review Meetings a.  These meetings will be made up of high level officials of the sectors concerned and will: i) review the substantive progress made in each of the sectors comprising the ECDC Programme; and take or recommend, as appropriate, necessary action. ii) report thereon to the Ministers of the Group of 77, through the Intergovernmental Follow-up and Coordination Committee. b.  These meetings will generally take place at intervals of approximately two years. The meetings mentioned above, under 1 and 2, will take place in developing countries members of the Group of 77, on the basis of a rotation between its Regional Groups, as far as practicable.

3.  The Annual Ministerial Meetings The Annual Ministerial Meetings, held in New York at the beginning of the regular sessions of the United Nations General Assembly, would concentrate their attention preferably every second year on a thorough review and appraisal of the activities within the ECDC Programme and provide for the necessary guidance and take other decisions, as required, with respect to policy issues and operational matters and for further strengthening of ECDC.

Operational Level—Modalities and Mechanisms At the operational level, the Programme will resort to various modalities or mechanisms, such as: i)  Groups of experts and other similar meetings ii)  Meetings of heads of national agencies iii)  Action Committees and other similar instruments iv)  National Research and Training Centres of Multinational Scope. Some of these mechanisms are intended to identify and facilitate the operational actions required. Others are designed to implement such actions. When not otherwise decided in the Programme, initiative in this field will correspond to the governments concerned.

Preparations and Support for the Coordination Activities in ECDC a)  The Group of 77 in New York in close collaboration and consultation with the representatives of the developing country hosting the next meeting of the Follow-up and Coordination Committee, as well as with the other chapters of the Group, will coordinate and take the appropriate action on: i)  Functional questions, including the scheduling and convening of meetings and the elaboration of their agenda, as appropriate; ii)  gathering and dissemination of pertinent information; iii)  reproduction and distribution of documents, as well as other coordinating activities that might be required.

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b)  The Group of 77 will make the necessary arrangements to provide its Chairman with the required support assistance for ECDC purposes only. To that effect: i)  The Chairman should be assisted by a small ‘core’ of assistants nominated by governments as follows: one from each of the three Regional Groups, one from the country in-charge of the Group of 77, one from the country where the meeting of the Follow-up and Coordinating Committee was last held, and one from the country where that Committee will hold its next meeting; this arrangement will tend to ensure a proper balance between continuity and rotation. The assistants will be officials from their respective Permanent Missions to the United Nations in New York fully assigned and paid by their respective governments. The selection of these assistants would be done in consultation with the Group of 77. They will be assigned to assist its Chairman in the field of ECDC, including the preparation of the meetings of the Follow-up and Coordination Committee. ii)  The Group of 77 would facilitate the access of the Chairman to: a)  The United Nations agencies and regional commissions, in order to ensure the best possible supporting, technical and administrative services. b)  Other pertinent intergovernmental organizations. c)  The research and other relevant organizations of the developing countries in order to obtain on a regular basis their cooperation and studies and collection of data of interest to the Group of 77.

Financing of ECDC Supporting Activities 1.  The costs involved in convening experts groups and other meetings concerning ECDC, wherever these cannot be met through an international organizations, are expected to be met by the country hosting the meeting. 2.  The Member States of the Group of 77 will pursue vigorously all actions required to ensure full compliance with the commitments undertaken for the implementation and support of ECDC activities within organizations of the United Nations System, and trust that developed countries members of such organizations will fully honour those commitments. 3.  Moreover, the Group of 77 should seek appropriate decisions in the United Nations and other international organizations to ensure that these organizations devote a specific part of their budgets to the support of ECDC programme as elaborated by developing countries. 4.  An estimate should be prepared of the approximate annual costs to be borne by the Group of 77, as those arising from collection, collation, printing and distribution of documents and information regarding meetings of experts groups. 5.  In the meantime, the Group of 77 in New York will authorize its Chairman to establish in his name a ‘Group of 77 Account for ECDC’ to finance, as required, under the modalities to be determined by that Group, the activities referred to in paragraph 4 above. Contributions to this account would be voluntary, freely determined by each contributing country. However, it is suggested that the minimum on contribution should be US$1,000.00. Special voluntary contributions may be received to facilitate equitable opportunity for countries interested in taking up the duties of hosting meetings.

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ANNEX-I Table on the follow-up meetings envisaged in the recommendations of the Final Report of the High-level Conference on ECDC with the corresponding schedule The following timetable contains the tentative dates of the meetings as well as the objectives of the corresponding follow-up actions. It is organized by quarters (3rd quarter 1981, 4th quarter 1981, and 1982) so as to present some flexibility to those responsible for its preparation and the convening of the meetings, namely the governments concerned or the Group of 77 in New York or in other United Nations centres, as appropriate. This relates to the order in which these meetings should be held since some of them may result in others that cannot be anticipated. Each follow-up meeting should agree on its work programme, which should be of short duration to maintain the momentum towards the attainment of the ultimate objective agreed to. Depending on the matter under consideration, groups of experts and other similar follow-up actions should normally conclude their work within ten working days, and, whenever possible, in one meeting. Allowance could be made for one further meeting, if necessary, to finalize its work with agreed conclusions, after the necessary consultations with national authorities. Provisions for the financing of these meetings should be made in accordance with the conclusions of the Conference, making good use of the resources available within the United Nations system as far as practicable.

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ANNEX-II Resolution of Thanks Adopted by Acclamation at the Closing Meeting of the Conference The Conference, Grateful to the people and Government of Venezuela for their hospitality and their gracious welcome and for the excellent organization of the High-level Conference on Economic Cooperation among Developing Countries, held at Caracas from 13 to 19 May 1981, Gratified by the personal interest manifested by His Excellency Mr Luis Herrera Campins, President of the Republic of Venezuela, in the proceedings, Expressing its appreciation of the diligent and competent manner in which the High-level Conference on ECDC was organized and conducted, 1.  Expresses its warm thanks to the people and Government of Venezuela for their hospitality and for all their efforts, which greatly contributed to the success of the Conference; 2.  Pays a tribute to His Excellency Mr. Luis Herrera Campins, President of the Republic of Venezuela, whose opening address was an immense inspiration to the work of the Conference; 3.  Compliments the President of the Conference, Mr. José Alberto Zambrano Velasco, Minister for Foreign Affairs of the Republic of Venezuela, for his skill and competence in conducting the deliberations; 4.  Decides that as a tribute to and an expression of gratitude for Venezuela’s contribution to the promotion of economic cooperation among developing countries, the Programme of Action adopted by the Conference will be officially entitled ‘Caracas Programme of Action’.

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3.  The Cairo Declaration on Economic Cooperation among Developing Countries adopted by the High-level Meeting on Economic Cooperation among Developing Countries, Cairo, 18–23 August 1986 a.  The Cairo Declaration* 4.  High-level Conference on South-South Cooperation, Marrakech, Morocco, 16–19 December 2003 a.  Marrakech Declaration on South-South Cooperation We, the participants at the High-level Conference on South-South Cooperation held in Marrakech, Morocco, from 16 to 19 December 2003, guided by the provisions of the Havana Programme of Action adopted by the First South Summit held in Havana, Cuba, 10–14 April 2000, and having reviewed the progress made in South-South Cooperation, 1.  Recognize that South-South cooperation is not an option but an imperative to complement North-South cooperation in order to contribute to the achievement of the internationally agreed development goals, including the Millennium Development Goals. South-South cooperation is about the tremendous force of solidarity, with which we can overcome even the biggest challenges. While we continue to recognize North-South cooperation as fundamental for our development and expect solidarity, understanding, cooperation and real partnership from the North, express the conviction that development remains our primary responsibility. 2.  Reaffirm our commitment to South-South cooperation and undertake to further strengthen it in different areas, including information and communication technology, trade, investment, finance, debt management, food, agriculture, water, energy, health and education and transit transport as well as in related North-South issues. We undertake to enhance and expand exchange of resources, experiences and know-how in these areas to make South-South cooperation contribute to economic growth and sustainable development. 3.  Express the conviction that the South-South cooperation is more needed today than ever. No single country, even the most advanced among developing countries, has much hope of reaching individually expected growth and development and influencing outcomes of international agenda. But, collectively, our countries can play a more effective role in achieving development objectives and in shaping international relations. 4.  Agree to work towards ensuring necessary interface between the modalities for North-South and South-South cooperation, which should converge in the search for the same development objectives, including the attainment of the Millennium Development Goals. In this regard, we undertake to make South-South cooperation an efficient tool to contribute to the achievement of the internationally agreed development goals. 5.  Recognize that the experience of developing countries has varied widely. Some developing countries have demonstrated strong achievements in various domains of development, while on others setbacks have also been registered in different spheres of economic and social fields.

*

See Chapter VII, 5(a) of this volume.

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6.  Recognize that South-South cooperation has experienced successes and failures, which are linked, in a broad sense, to the external international environment, which influenced development policies and strategies. In the fifties and sixties, South-South cooperation has evolved and been developed in the context of the common struggle of developing countries to reach development and growth. The institutions for South-South cooperation were developed in this period, including G77 and NAM. These and other multilateral organizations, including UNCTAD, UNDP and other institutions of the UN system, helped formulate and articulate southern needs and concerns, and provided a framework for fruitful North-South dialogue and mutually beneficial relationships. In this context, we reiterate the importance of more direct cooperation between the Group of 77 and NAM in order to promote South-South cooperation through concrete initiatives and projects in all fields of interest to the countries of the South. 7.  Reaffirm the importance of strengthening South-South cooperation and, in this regard, welcome the recent initiative taken by the Asian-African Sub-regional Organizations Conference (AASROC) in Bandung, Indonesia, from 29-30 July 2003 to establish a New Strategic Partnership for promoting South-South cooperation, which is to be launched during the Asian-African Summit in Indonesia in 2005, through, inter alia, strengthening consultations among the secretariats of sub-regional organizations. 8.  Stress that the economic growth in several developing countries and the strengthening of their domestic capabilities can have strong impacts on the scope and effectiveness of South-South cooperation. Several developing countries have now diversified economies and rely on well-trained human resources. Current trends in international trade and investment liberalization as well as the increasing regional and economic integration offer new opportunities and challenges for South-South cooperation. Several developing countries play and active role in the transfer of knowledge and experience as well as in the creative expansion of technologies aimed at increasing productivity and competitiveness. 9. Aware that the South has both the desire and potential to move South-South cooperation within and beyond regional and subregional boundaries. Market proximity, similarity in products and processes and business cultures affinity that can offer investors from developing country greater opportunities for a new wave of South-to-South trade and investment are added advantages. 10. Note with satisfaction that international community has recognized the importance of South-South cooperation in various United Nations Conferences and Summits and underscore the need for strengthening the support by the United Nations system for such cooperation. Recently, the International Conference on Financing for Development, held in Monterrey in March 2002 and the World Summit on Sustainable Development, held in Johannesburg in August 2002, encouraged South-South cooperation, including through triangular cooperation. In this regard, we support UNDP’s mandate in the implementation of technical cooperation and capacity building activities to achieve sustainable development. 11.  Recognize the value of triangular cooperation as a useful arrangement in international cooperation. Such arrangements should be encouraged so that the expertise of developing countries, with the financial support of developed countries, can be used to assist other developing countries, especially the LDCs, the LLDCs and SIDS bearing in mind their different levels of development. Recognize also the importance of the triangular cooperation modalities involving international organizations, which contribute in a positive manner to the development needs of developing countries. 12.  Recognize that NGOs, business community, foundations, universities and other development actors are emerging as key partners and have contributed significantly to meet development challenges and objectives in both developed and developing countries. This implies the emergence of new system of relations with and among international cooperation actors, which

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undoubtedly will influence international cooperation policies and modalities in both North and South countries. Therefore, we decide to take into consideration these important developments in designing strategies and procedures for international cooperation, including South-South cooperation. 13.  Reaffirm the importance of building bridges across the South, which has always been our objective since the inception of South-South cooperation. Stress therefore that our aim today must be to further strengthen and widen those bridges to reach our development objectives and to be able to integrate into the world economy and influence the processes that shape the new international economic relations of the 21st century. In this context, the South needs to conduct its own analysis and design and implement its own policies to address the challenges of the world economy. We reiterate our determination to take the necessary measures, including the identification of resources and design appropriate follow up mechanisms to make full use of South-South cooperation. 14. Underline that with the rapid integration of markets, mobility of capital and significant increases in investment flows around the world and overall process of globalization have opened new challenges and opportunities. But the benefit and costs of globalization are unevenly distributed with developing countries facing economic and social difficulties in meeting this challenge. Furthermore, there is a growing recognition that economic liberalization does not lead automatically and universally to social and economic benefits. 15.  Recognize that the asymmetries of the emerging international economic order, the governance of international affairs, the current situation of the world economic and other global issues have unfavorable effects on developing countries, giving rise to economic and social instability. We encourage efforts to increase the participation of developing countries in global economic governance, thus allowing those countries to benefit from globalization and better cope with its unfavorable effects. 16.  Mindful of the slow pace of global economic recovery and absence of a global coordinated approach to address the negative consequences of cyclical financial crises, we call for concerted efforts to enhance the coherence of global economic systems and their effectiveness in supporting development. 17.  Note with concern that many commitments made at the UN conferences and summits in the economic and social fields have not yet been fully implemented. In this context, we also express concern that international economic environment, markedly characterized by cyclical financial crises, external debt problems, insufficient levels of ODA, instability in commodity markets, the current uncertainty of the evolution of the multilateral trading system and disparities in foreign direct investment flows and income distribution worldwide, are not conducive to the achievement of the Millennium Development Goals. 18.  Remain concerned that despite several initiatives undertaken over the past decade, the debt crisis persists as a major impediment the development of our countries. We reiterate the urgent need for the international community, particularly donor countries and international institutions to adopt effective, comprehensive and equitable solutions to the debt crisis in a time-bound fashion. In this regard, we call for the speedy, effective and full implementation of the enhanced Heavily Indebted Poor Countries Initiative. 19.  The WTO Ministerial Conference held in Cancun from 09 to 14 September 2003, though a setback in the implementation of the Doha development agenda, demonstrated the urgent need for a better representation of the developing country’s interests in the international trading system and great solidarity amongst our countries to achieve this goal. In this regard, we undertake to display the highest degree of unity and solidarity in global issues towards a greater articulation of our concerns and interests.

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20.  Reaffirm that South-South trade should be enhanced and further market access from developing countries must continue to stimulate South-South trade, including through the launching of new round of negotiations within the Global System of Trade Preferences among Developing Countries (GSTP) which could take place on the occasion of UNCTAD-XI in Sao Paulo in June 2004. 21.  Stress our support to UNCTAD as the focal point within the United Nations for the integrated treatment of trade and development and the interrelated issues in the areas of finance, technology, investment and sustainable development, we welcome the decision of the General Assembly in its resolution 57/270B to make UNCTAD key player in the follow-up mechanism of the Monterrey Consensus. We commit ourselves to working together to make UNCTAD XI (Sao Paulo, Brazil, 14-18 June 2004) a successful global endeavor involving all actors and stakeholders in development. UNCTAD-XI will provide a major opportunity to address the asymmetries and inequalities in the international marketplace, the structural limitations, inadequate supply capacities and vulnerabilities of developing countries to the external economic financial environment and help to put in place a development oriented multilateral trading system. We count on UNCTAD support in particular in the area of trade and development. 22.  Express concern that the ongoing fluctuations in commodity prices and declining terms of trade continue to impede development and growth in many commodity-dependent countries hindering them from achieving the Millennium Development Goals. While underlining the importance of international cooperation, including South-South cooperation to address the concerns of commodity-dependent developing countries, we undertake to strengthen our efforts in the process of commodity diversification to overcome supply constraints. 23.  Aware that the new trend towards a greater liberalization of trade has opened up fresh opportunities for trade and investment in developing countries. The countries of the South must therefore work to strengthen Regional Economic Groupings as well as South-South cooperation. Therefore, we undertake to further strengthen Subregional and Regional Economic Groupings as well as interregional arrangements to promote South-South commercial cooperation. 24.  Emphasize vigorously the need to promote access to and transfer of knowledge and technology to developing countries, including information and communication technology. We welcome the convening of the World Summit on the Information Society, to be held in two stages: Geneva 2003 and Tunisia 2005. We regard this as a unique opportunity to find effective and innovative ways to use the potential of information and communication technologies at the service of the development of the developing countries. We call on all countries to participate actively in the preparatory process of the second stage of the Summit to take place in Tunisia in November 2005 and in the conference itself. We invite all Member States and call on the ITU, with the effective support of the United Nations and its specialized agencies, to maintain and strengthen its commitment to the process, in accordance with relevant General Assembly resolutions. 25.  Commend the dedication of African leaders and people in the implementation of NEPAD, which aims to foster a genuine partnership for the development of Africa; we commit ourselves to support the implementation of NEPAD through South-South cooperation. We strongly support the ongoing efforts by the international community to assist Africa in the implementation of NEPAD and call upon donors, the United Nations System, civil society and the private sector to further contribute effectively to the implementation of NEPAD. 26.  Reaffirm the need to address the special concerns of the Least Developed Countries and call for the effective and timely implementation of the Brussels Programme of Action for the Decade 2001-2010. In this regard, taking advantage of economic complementarities among developing countries, we resolve to promote initiatives in favor of LDCs in the context of South-South cooperation, including through, inter alia, triangular mechanisms to better benefit the LDCs. In this

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context, the LDCs ministerial conference with the Chairman of G-77 held at Rabat, Kingdom of Morocco, from 24 to 25 June 2003 has generated a momentum, which needs to be built on. 27. Welcome the Almaty Programme of Action adopted at the United Nations Ministerial Conference of Landlocked and Transit Developing Countries and the Donor Community on Transit Transport Cooperation, held in Almaty on 28 and 29 August 2003, which addresses the special needs of landlocked developing countries within a New Global Framework for transit transport cooperation for Landlocked and transit developing countries, and call on all stakeholders to fully and effectively implement the Almaty Programme of Action. 28.  While stressing the significant challenges posed by the vulnerabilities of SIDS, we call on the international community, especially the bilateral and multilateral donors to honor and renew their commitments to the Barbados Programme of Action and all efforts being undertaken by SIDS, including through South-South cooperation, to attain the Millennium Development Goals (MDGs). We also urge their full support and effective participation in the International Meeting to be hosted by the Government of Mauritius in 2004 to comprehensively review the Barbados Programme of Action for SIDS. 29.  Reaffirm the importance of South-South solidarity, and in this regard we firmly reject the imposition of laws and regulations with extraterritorial impact and all other coercive measures, including unilateral sanctions against developing countries, which contribute in impeding their economic growth and development and are inconsistent with the principles of international law, UN Charter and the principles of the multilateral trading system. 30.  Reaffirm our commitments to strengthen our efforts to implement the programmes and plans of action for South-South cooperation previously adopted at the South Conferences and Summit, in particular the Havana Programme of Action. In this context, we have identified priorities, for immediate implementation in the areas of regional cooperation, trade and investment, food and agriculture, water, health in particular HIV/AIDS pandemic, malaria, tuberculosis and other communicable diseases, education and information and communication technology, including through sharing of best practices. We commit ourselves to the implementation of these priorities and initiatives identified at the High-level Conference on South-South cooperation and to ­expediting the achievement of the time-bound objectives contained therein. 31.  Convey our appreciation and gratitude to the Kingdom of Morocco and its people for the excellent organization and hosting of the High-level Conference on South-South Cooperation and the warm hospitality, which were bestowed on us in the city of Marrakech.

b.  The Marrakech Framework of Implementation of South-South Cooperation The Participants at the High-level Conference on South-South Cooperation held in Marrakech, Morocco, from 16 to 19 December 2003, having adopted the Marrakech Declaration on South-South Cooperation, guided by the provisions of the Havana Programme of Action, and while stressing that the implementation of South-South Cooperation depends upon its adequate integration in national, subregional and regional and international cooperation policies and strategies, agree on the implementation of the following measures and initiatives: 1.  Undertaking a study, with the support of UNDP, on the potential of intensifying interactions between business agents in developing countries, both from the private and the public sector, including recommendations on ways of fully exploring the potential of joint ventures in different areas. Such study will be presented for discussion and recommendation to a Symposium to be held at the margin of the Second South Summit in 2005 with the aim of analyzing existing joint ventures among the countries of the South, identifying ways and means to enhance such joint ventures and establish a South database on joint ventures.

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2.  Continuing support for the exchange of expertise and experiences among research institutions and universities in developing countries and the establishment of a South-South Network of such institutions and universities that promote education, technical skills development and technology transfer through exchange of programmes, students and academia, provision of scholarships and grants for education and training. 3.  Working toward achieving the objectives of eradicating illiteracy with the development of projects on basic education using the experience and know-how of some developing countries, including through triangular cooperation. 4. Supporting the establishment of an International Voluntary Digital Solidarity Fund as an  innovative mechanism to contribute towards building of an inclusive Global Information Society and to the implementation of the Digital Solidarity Agenda set forth in the Plan of Action adopted at the World Summit on Information Society held in Geneva from 10 to 12 December 2003. 5.  Enhancing coordination and joint negotiating positions on major issues of the multilateral trading negotiations, in particular the Doha Work Programme. In this regard, mechanisms could be identified to share information among the developing countries and build capacity. 6.  Working together to address constraints in cross-border movement of services suppliers from countries of the South to markets of developed countries as this is crucial to the expansion of exports and for poverty reduction. 7.  Supporting UNCTAD’s role in policy analysis and consensus building to assist the South in identifying and evolving development benchmarks in multilateral negotiations. 8.  Promoting investment among developing countries, including through bilateral agreements (BITS), the sharing of experiences towards capacity building in investment promotion and information sharing on investment opportunities. 9.  Convening, no later than 2005, a G-77 Conference on Physical Infrastructures for Development with the aim of addressing South-South cooperation in this area, given the experiences of different regions and in this regard requesting the IFCC to discuss the scope and venue of this Conference and make recommendations to the Annual Ministerial Meeting of G-77. 10.  Urging members of the GSTP to fully benefit from this instrument for the revitalization of South-South trade and strengthen its effectiveness, by expediting the ratification of tariff commitments negotiated during its second round and continuing work in progress in Geneva on a third round of negotiations, which could be launched on the occasion of UNCTAD-XI, in Sao Paulo, in June 2004. 11.  Supporting activities and measures, in particular in the framework of WTO related to the access to markets of developed countries of products of developing countries, taking into account, inter alia, the needs of LDCs and highly indebted developing countries to overcome their critical situation. 12. Facilitating and supporting the accession of all developing countries that applied to the WTO, on the basis of transparent conditions, and emphasizing that no country should be prevented from participating in the multilateral trading system and its accession to the WTO should not be hindered on account of non-trade related considerations and that candidates for accession should not be requested to have commitments beyond those of members. 13.  Exchanging experiences and expertise in the area of agricultural production with the aim of enhancing productivity and food security, and supporting, in this context, the Special Programme of Food Security (SPFS) undertaken under the auspices of FAO, in which South-South cooperation is a fundamental component and undertaking to fully use its potential in order to enhance solidarity among developing countries and to allow developing countries to benefit from the experiences and expertise of other developing countries in food production. In this context,

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encouraging other funds, agencies and programmes of the United Nations to initiate or strengthen similar efforts in their respective fields of actions and responsibilities. 14.  Promoting cooperative actions among developing countries aimed at dealing with the commodity issues, with the support of UNCTAD, FAO and the Common Fund for Commodities. 15.  Supporting the holding of an International Seminar on Food Security to be held in the second half of 2004 in Brazil. 16. Working towards a greater South-South cooperation to successfully combat HIV/AIDS pandemic, malaria, tuberculosis and other communicable diseases, including sharing of experiences, expertise and best practices, as well as cooperative arrangements in procurement of preventive and curative drugs, giving special attention to the offers of cooperation made by some developing countries including concerning medical personnel and exploring triangular cooperation. 17.  Using fully the potential of South-South cooperation in following up the implementation of the Decision of August 30th, 2003 on paragraph 6 of the Doha Declaration on TRIPS and Public Health, to be incorporated in the TRIPS Agreement. 18. Urging the international community to support efforts by the countries of the South in addressing the challenges posed by HIV/AIDS. 19. Supporting the implementation of the South-South Healthcare Delivery Programme and urging for broader collaboration of partners and countries of the South while acknowledging efforts made by some developing countries in the supply of medical personnel. 20.  Participating in the Training Resource Platform developed by UNCTAD in the area of trade and development, aiming at strengthening training capacities in developing countries. 21. Sharing experiences and expertise on programmes especially related to women and children. 22.  Supporting and participating in the launching, in the first part of 2004, of the e-tourism initiative designed by UNCTAD to assist developing countries in the promotion of tourism. 23.  Developing South-South cooperation on debt management with the support of relevant organizations including UNCTAD, using experiences and expertise of developing countries to benefit other developing countries especially the highly indebted poor developing countries. 24.  Acknowledging the need to enlarge the involvement of developing countries in joint efforts to overcome extreme poverty and, in this context, taking note of the initiatives undertaken by the developing countries, including those announced at the fifty-eighth session of the General Assembly. 25.  Inviting the Special Unit for South-South Cooperation to work with developing countries to formulate and help implement joint and mutually beneficial programmes to respond to the urgent needs of the developing countries, and also inviting the UNDP to ensure that the South-South dimension is mainstreamed in all its activities. In this regard, taking note with interest of the concrete recommendations of the High-level Meeting of Pivotal Partners of South-South and Triangular Cooperation held in November 2003 in Hangzhou, China. 26.  Supporting the convening of a Water Forum with a view to promote the exchange of scientific and technological know-how and the sharing of experiences and best practices among developing countries, after the consideration of this issue by the Commission on Sustainable Development. 27.  Supporting the strengthening of the UNDP Special Unit for South-South Cooperation as a focal point for South-South cooperation within the United Nations System, including through enhancing its capacity to coordinate South-South issues in the United Nations system, which would allow the Unit to adequately map experiences and promote and support initiatives in the domain of South-South cooperation.

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28.  Establishing and strengthening regular mechanisms of consultations, communication, and sharing of information and experiences among regional and sub-regional economic groupings as well as development supportive networks. 29.  Ensuring the full use of triangular cooperation and the engagement of relevant international and regional organizations as well as a full involvement of business community and civil society to strengthen South-South cooperation. 30.  Supporting existing platforms of cooperation concluded between African and Asian countries and between African and Latin American countries as effective tools in the implementation of the United Nations Convention to Combat Desertification, in particular with regard to exchange of expertise. 31.  Supporting the United Nations General Assembly’s High-level Committee on South-South Cooperation to explore possibilities of expanding South-South cooperation programmes within the UN system. 32. Encouraging greater consultation and cooperation among national TCDC units at the regional level where appropriate in order to enhance effective and efficient undertaking of programmes and projects. 33. Encouraging the strengthening and periodic updating of the WIDE Electronic databank operated by UNDP Special Unit on South-South Cooperation, in coordination with governments, allowing for wide diffusion of and access to the information contained therein, including experiences, best practices and potential partners in South-South cooperation. 34.  Supporting bilateral initiatives undertaken by some developing countries for debt cancellation to benefit LDCs and in this regard encouraging other developing countries to also undertake further initiatives to strengthen solidarity with this most vulnerable group of developing countries. 35.  Continuing also all initiatives aimed at enhancing market access for the products of export interest to the LDCs and calling for further similar initiatives by developing countries 36.  Promoting initiatives in favour of the least developed countries in the context of South-South cooperation by implementing projects in areas such as human and productive capacity building, technical assistance, exchange of best practices, particularly in issues relating to health, education, professional training, environment, science and technology, trade, investment and transit transport cooperation. 37.  Encouraging, in the framework of implementation of the Almaty Programme of Action, the landlocked developing countries and the transit developing countries to continue intensifying their collaboration and cooperation through existing transit arrangements and agreements among them. In this regard, calling on donor countries and multilateral financial and development institutions to ensure effective implementation of Almaty Programme of Action by providing LLDCs and transit developing countries with appropriate financial and technical assistance. 38.  Enhancing policies to support SIDS efforts to meet the significant challenges posed by their structural vulnerabilities, and calling on the international community to honour and renew their commitments to the Barbados Programme of Action and to support all efforts being undertaken by SIDS, including through South-South cooperation, to attain the international development goals, including those contained in the Millennium Declaration. 39.  Continuing to pay special attention to the situation of post-conflict developing countries, in particular LDCs, with a view to enabling them to rehabilitate and reconstruct, as appropriate, political, social and economic infrastructures and to assist them in achieving their development priorities. 40.  Intensify South-South cooperation for the preservation, protection and promotion of traditional knowledge, genetic resources and folklore and the building of consensus in relevant

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international fora and the development of legally binding international instruments on intellectual property rights regarding these issues. 41.  Promoting cooperation in the exchange of scientific and technological know-how in sourcing, efficient management, preservation and sustainable use of water, in accordance with the existing and relevant provisions of international law. 42.  Supporting the holding of an International Forum on Development from 16 to 17 February 2004 in Doha, Qatar, to exchange views on achieving development objectives and addressing related challenges. 43.  Supporting consultations and continuous exchange of views among developing countries on issues which are the subject of the high-level United Nations events as well as on other emerging issues relevant to development. 44.  Taking immediate steps to expand the resources of the Perez-Guerrero Trust Fund (PGTF). 45. Strengthening the substantive capacity of the G-77 Secretariat (Office of the Chairman) through the payment by the members of the Group of 77 on a regular basis and in a timely manner of their financial contributions. 46.  Strengthening the South Centre as a think-tank of the countries of the South to undertake research programmes to support their negotiations. 47.  Urging all Member States to make special contributions to the G-77 Special Fund for the follow-up and implementation of the outcome decisions of the Group as established by Heads of State and Government in Havana. 48.  Recommending to the IFCC-XI to establish an open-ended intergovernmental study group which will convene a workshop among developing countries to address the viability of the proposed G-77 Trade and Development Bank and to submit a report for consideration on the outcome through the Annual Ministerial Meeting of the G-77 to the Second South Summit in 2005. 49.  Strengthening cooperation and coordination between the G-77 and the NAM in promoting South-South Cooperation by requesting the Joint Coordinating Committee (JCC) to meet more regularly to discuss issues of common interest in the field of South-South cooperation where synergies could be explored. 50.  Establishing under the responsibility of the Chair of G-77 of an open-ended Follow-up Group to South-South Cooperation, which should report to the Annual Ministerial Meeting of the G-77 on the implementation of South-South cooperation.

CHAPTER VI ANNUAL MEETINGS OF MINISTERS FOR FOREIGN AFFAIRS OF THE MEMBER STATES OF THE GROUP OF 77

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1.  First Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 29 September 1977 a.  Ministerial Declaration The Ministers for Foreign Affairs of the States members of the Group of 77 met on 29 September 1977, at United Nations Headquarters in New York, and issued the following Declaration: We, the Ministers for Foreign Affairs of the States members of the Group of 77 1.  Note with satisfaction that since its inception the Group of 77 has worked with vigour and determination for the development of developing countries and towards an equitable and just international economic order through the restructuring of international economic relations. The Declaration and Programme of Action on the Establishment of a New International Economic Order and the Charter of Economic Rights and Duties of States marked turning points in the pursuit of this objective; 2.  Note with particular satisfaction that the positive results so far achieved by the Group of 77 have been primarily due to its unity and solidarity. The members of the Group of 77 recognize that, notwithstanding the diversity of interests in the Group arising primarily from the different levels of economic and social development, its strength lies in its political unity which results from common aspirations and purpose and its identity of fundamental interests. We, therefore, do solemnly reaffirm our commitment to maintain, strengthen and further develop our unity and solidarity; 3. Note that international economic relations continue to suffer from the consequences of an inequitable and unjust economic system and lack of real progress towards the restructuring of international economic relations, which is indispensable for the establishment of the New International Economic Order; 4.  Note with serious concern the ever-widening gap between developed and developing countries and the lack of adequate and resolute efforts on the part of developed countries to reverse this trend. To mention only a few areas:  no concrete action has been taken to meet the just demands of the developing countries to improve their terms of trade; inflation generated in developed countries has, through international trade and the international monetary system, produced universal negative effects with disruptive consequences on the economies and development of the developing countries; no effective or serious solutions have been forthcoming concerning the problems of commodities, debt, balance of payments, protection of the purchasing power of the developing countries, trade, transfer of technology, increase in the flow of real resources, and access to capital markets. The renewed trend towards protectionism in the developed countries is a cause of deep concern because of its negative impact on the export earnings of developing countries and on their terms of trade, employment policies and development efforts. This lack of real progress and the unwillingness on the part of developed countries seriously to commit themselves to solving these and other pressing problems was clearly demonstrated in the results of the Conference on International Economic Co-operation; 5. Reaffirm our strong belief that urgent, more vigorous and concrete steps and actions still remain to be taken, collectively and individually, by all the members of the international community to end without delay colonialism, imperialism, neo-colonialism, interference in internal affairs, apartheid, racial discrimination and all forms of foreign aggression and occupation, which constitute major obstacles to the economic emancipation of the developing countries. We stress that it is the duty of all States effectively to support and extend assistance to the countries, territories and peoples subjected to, and affected by, these practices so as to restore their national

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sovereignty, territorial integrity and all other inalienable and fundamental rights, including the right to self-determination, in order to enable them to achieve independence, and to promote development and international co-operation, peace and security. We also urge all countries to refrain from participating in, encouraging or promoting, in any way, any investment or economic activities aimed at trade, or exploitation of any resources, or investments in economic activities in the territories subjected to the aforementioned practices; 6. Reaffirm the inalienable right of developing countries to full and permanent sovereignty over their natural resources and all economic activities, including the right of nationalization according to their national laws; 7. Reiterate the commitment of the developing countries to condemn, reject and resist all forms of threats or coercive and discriminatory economic policies and practices, including restrictions on the transfer of advanced technology, either direct or indirect, against individual or groups of developing countries by the developed countries; 8. Continue to view with deep concern the negative aspects of the activities of transnational corporations, including their corrupt practices, in developing countries and in particular their collaboration with minority, racist and apartheid regimes; 9. Emphasize that the restructuring of the international economic system and the accelerated and sustained development of the developing countries are in the interest of the international community and are essential to the continued prosperity of the economies of the developed countries. However, despite the recognition by the international community of the need for the New International Economic Order, very few concrete measures have been agreed upon by the developed countries for its establishment. So far, these measures have been fragmented and limited in scope. The developed countries bear a particular responsibility with regard to the attainment of this goal. The developed countries must demonstrate the necessary political will in this regard; 10.  Urge the developed countries to pay special and urgent attention to the particular and pressing needs and requirements of the least developed, land-locked, most seriously affected and island developing countries, and to implement within specific time-frames the special measures and decisions adopted in their favour by the organs, organizations and other bodies of the United Nations system; 11. Emphasize that the developing countries will continue to strive towards individual and collective self-reliance through economic and technical co-operation among themselves and a collective approach to matters of common interest; 12.  Reaffirm the positive role that producers’ associations play within the framework of international economic co-operation for the development of the developing countries; 13.  Believe that full and effective participation of the developing countries in the decisionmaking process in the organs, organizations and other bodies of the United Nations system on all questions of interest to developing countries, wherever they may be discussed, is of crucial importance for the achievement of concrete and positive results for the promotion of international co-operation for the development of developing countries; 14.  Reaffirm the urgent need for the restructuring of the economic and social sectors of the United Nations system so as to make it more effective and responsive to the requirements for the establishment of the New International Economic Order and, in that context, reiterate the proposals submitted by the Group of 77 to the Ad Hoc Committee on the Restructuring of the Economic and Social Sectors of the United Nations System, including the proposal for the establishment of a post of Director-General for Development and International Economic Co-operation; 15.  Stress the need that all negotiations of a global nature relating to the establishment of the New International Economic Order take place within the framework of the United Nations system, which is the only appropriate and fully representative forum for these negotiations. The

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General Assembly should provide at its current and future sessions guidelines for the conduct of negotiations in the appropriate bodies within the United Nations system, with a view to reaching concrete and positive results within specific time frames; 16. Call upon the developed countries in this context to display full political readiness to achieve concrete agreements at the forthcoming negotiations in the United Nations Conference on Trade and Development on the establishment of the common fund in accordance with resolution 93 (IV) of the Conference1 and on the debt problems of the developing countries; Call for the convening of a special session of the General Assembly in 1980 in order to assess the progress made in the various forums of the United Nations system in the establishment of the New International Economic Order and, in the light of that assessment, to take appropriate action for further promotion of the development of developing countries and international economic co-operation, including the adoption of the new international development strategy.

1.

See Proceedings of the United Nations Conference on Trade and Development, Fourth Session, vol. I, Report and Annexes (United Nations publication, Sales No. E.76.II.D.10), part one, sect. A.

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2.  Second Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 29 September 1978 a.  Ministerial Declaration The Ministers for Foreign Affairs of the States members of the Group of Seventy-seven, meeting at the outset of the thirty-third session of the General Assembly, reviewed the evolution of the international economic situation and the state of negotiations with the developed countries relevant to the establishment of the New International Economic Order, and issued the following Declaration: 1.  In reaffirming the Declaration adopted by them on 29 September 1977, the Ministers note with great satisfaction the ever growing and deepening unity and solidarity of the Group of Seventy-seven, notwithstanding the different levels of economic and social development of member States. They further note the increase in activities and programmes of action for economic and technical co-operation among developing countries, demonstrating the common purpose of the member States of the Group of Seventy-seven and their determination to contribute, through measures of collective self-reliance, to the establishment of the New International Economic Order. They express their intention to continue and intensify contacts and consultations among developing countries with a view to elaborating their common positions in negotiations with the developed countries. 2.  The Ministers reiterate their strong belief that urgent, more vigorous and concrete steps and actions still remain to be taken, collectively and individually, by all the members of the international community to end without delay colonialism, imperialism, neo-colonialism, interference in internal affairs, apartheid, racial discrimination and all forms of foreign aggression and occupation, which constitute major obstacles to the economic emancipation of the developing countries. They stress that it is the duty of all States effectively to support and extend assistance to the countries, territories and peoples subjected to, and affected by, these practices so as to restore their national sovereignty, territorial integrity and all other inalienable and fundamental rights, including the right to self-determination, in order to enable them to achieve independence, and to promote development and international co-operation, peace and security. They also urge all countries to refrain from participating in, encouraging or promoting, in any way, any investment or economic activities aimed at trade, or exploitations of any resources, or investments in economic activities in the territories subjected to the aforementioned practices; 3.  The Ministers view with grave concern the continuing deterioration of the international economic situation and its inherent dangers and note that the inequities of the present global economic system have not only persisted but have significantly worsened, owing largely to the adverse economic policies of the major industrialized countries. They note in this connection that developing countries continue to suffer from the adverse effects of fluctuations in commodity prices, uncertainty from continuing exchange rate instability, inflation in the developed countries, growing protectionism against exports of developing countries by developed countries, increasing debt burdens, deteriorating terms of trade, lack of adequate access to capital markets and technology, and increasing balance-of-payments difficulties, the failure of developed countries to meet the official development assistance target as well as the lack of action to solve the special problems and meet the pressing needs of the least-developed, land-locked, island and most seriously affected developing countries as well as the newly independent ones among them. 4.  The Ministers deeply regret that there has been no real progress in negotiations towards the restructuring of international economic relations, which is indispensable for the establishment of

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the New International Economic Order, and particularly in negotiations on important areas relevant thereto, such as the Integrated Programme for Commodities and the common fund for commodities, multilateral trade negotiations, transfer of resources, international monetary reform, debt and industrialization of developing countries including transformation of the United Nations Industrial Development Organization into a specialized agency. They further view with serious concern the fact that discussions having a substantive bearing on important international economic questions affecting the vital interests of developing countries, such as those relating to the multilateral trade negotiations, continue to take place without their participation, and without due regard to those interests. 5.  The Ministers firmly consider the stalemate in most of these negotiations to be a consequence of the continued absence of adequate political will on the part of most developed countries, particularly the major industrialized ones, to engage in the genuine and meaningful negotiations required for the establishment of the New International Economic Order. 6.  In this context the Ministers consider that the recent breakdown in the work of the Committee of the Whole on the establishment of the New International Economic Order set up under General Assembly resolution 32/174, and the failure even to agree on the way in which to fulfil its mandate really reflects the reluctance of developed countries to come to grips with the indispensable structural and other changes in international economic relations, which are vital not only to the interest of developing countries, but indeed to the future of the world community. The Ministers stress therefore the fact that the primary condition for success in the work of the Committee is the demonstration by all developed countries of their genuine political will to enter into negotiations with developing countries in order to achieve real progress, through concrete decisions, on the issues before the Committee. 7.  The Ministers strongly reaffirm that the United Nations system is the only framework within which all negotiations of a global nature relating to the establishment of the New International Economic Order should take place. In this regard, and reaffirming the need for equal participation of all countries in the decision-making process, they emphasize the central role of the General Assembly. 8.  The Ministers reiterate the unrelenting commitment of the developing countries to the New International Economic Order and reaffirm the readiness of developing countries for genuine dialogue and negotiations with developed countries on all issues pertaining to its establishment. They expect that deliberations and negotiations at the current session of the General Assembly as well as in other forums, in particular the United Nations Conference on Trade and Development and the forthcoming United Nations Conference on Science and Technology for Development, will result in significant progress towards the establishment of the New International Economic Order. 9.  In this context, the Ministers stress the need for the current session of the General Assembly to determine, in accordance with the principles and objectives of the New International Economic Order, policy guidelines for the preparation of the new international development strategy with the full participation and involvement of all States. In this regard, the strategy should, within the framework of consistent and specific goals and objectives include commitments to implement concrete measures within specific time frames. 10.  The Ministers emphasize the need for a new international order in the field of information as an important component of the efforts led by the developing countries to forge new international relations in general and in particular to establish the New International Economic Order. To this end they express their determination to strengthen individually and collectively their mass communications media. Furthermore they call on the information media in developed countries to support the principles and objectives of the New International Economic Order. The Office of Public Information of the United Nations Secretariat and other international information services

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should increase their activities in all fields of interest to developing countries, in particular in the economic field, in conformity with the objectives of the New International Economic Order. 11.  The Ministers for Foreign Affairs call upon all developed countries to fulfill meaningfully their roles in negotiations relating to the establishment of the New International Economic Order, so that real progress may be achieved before the special session of the General Assembly to be held in 1980, thus creating favourable conditions for its success and for successfully launching the new international development strategy.

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3.  Third Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 27–29 September 1979 a.  Ministerial Declaration The Ministers for Foreign Affairs of the States members of the Group of 77 held their third meeting in New York, from 27 to 29 September 1979, and issued the following Declaration: 1.  The Ministers for Foreign Affairs of the Group of 77, meeting in the midst of a particularly difficult period in the evolution of the international economic situation and in the negotiations with the developed countries, note with grave concern the aggravation of the negative trends in international economic relations, with increasingly harmful effects on the developing countries. 2.  The Ministers consider that the world economy is currently in the most serious crisis since the end of the Second World War. This crisis stems from the underlying structural maladjustments and fundamental disequilibrium in the world economy as evidenced by the failure of the developed countries to control their internal imbalances and by their refusal to recognize the rights of the developing countries in international economic relations. They stress that this crisis is also the result of the persistent lack of equity in international economic relations, which are characterized by inequality. 3. The ad hoc decisions and policy measures taken in developed countries have, therefore, been inadequate in solving the problems of those countries and have worsened those of the developing countries. Thus, the protectionist measures which have been introduced by developed countries or groupings of developed countries and which have been rendered in some cases more stringent during the current year have aggravated the imbalances in world trade and the international monetary and financial system and have been detrimental not only to the economies of developed countries themselves, but mainly to the economies of the developing countries. 4.  The Ministers note with deep concern that the disproportionately large share of the burden of adjustment in the world economy that has been cast on the developing countries through these and other measures has aggravated even further the position of those countries. The long outstanding problems faced by developing countries in the areas of, inter alia, trade, commodities, money and finance, technology, to which the Ministers drew the attention of the international community in their previous Declaration, are not only still present but, in many cases, have become more acute. Instead of contributing effectively to the solution of these problems and in an attempt to create division and discord among the developing countries as well as to perpetuate the status quo, the developed countries are pressing for new concepts, such as access to supplies, graduation, selectivity, the utilization of a ‘global strategy for basic needs’ and the concept of differentiation. The Ministers are of the view that the introduction of such new concepts would, in addition to distorting the concept of co-operation, lead to shifting the focus of the international community away from genuine international economic problems and the negotiations on the establishment of the New International Economic Order and would distort national development priorities. The Ministers believe that such concepts are incompatible with the aspirations, unity and solidarity of the developing countries and they therefore reject them. 5.  The Ministers consider that the existing international economic system is still unable to provide adequate and equitable support to the development of the developing countries, to enable those countries to play an effective role in international decision-making, or to ensure an efficient functioning of the world economy. 6.  The Ministers note with satisfaction the agreements reached at the United Nations Conference on Science and Technology for Development on some issues, in particular the institutional and

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financial issues. However, they note with regret that on some other important questions no decisions were taken. Furthermore, they consider that the dialogue which the developing countries have been striving to conduct with the developed countries in most other international fora to bring about, in accordance with the objectives of the New International Economic Order, genuine solutions to the imbalances in world economic relations and in the international institutional framework, has met, to the regret of the Foreign Ministers, with great resistance from most developed countries. Hence negotiations in theses fora, during the current year, did not produce adequate results, commensurate with the magnitude of the problems, due to the negative attitude of most developed countries. The Ministers express disappointment at the outcome of the Fifth United Nations Conference on Trade and Development. The Committee of the Whole established under General Assembly resolution 32/174 has so far produced limited results. The Preparatory Committee for the New International Development Strategy was unable to make progress since developed countries were adopting a delaying attitude indicative of a lack of willingness to take firm commitments for the development of the developing countries in the 1980s. The multilateral trade negotiations have been concluded without the developing countries being enabled to participate fully in them and derive equitable benefits in accordance with the Tokyo Declaration. The Ministers observe with deep concern a hardening of attitude and an increasingly inward-looking posture by the advanced nations, which, if no reversed, could seriously damage international economic co-operation. 7.  The Ministers take note with satisfaction of the views and recommendations of the Sixth Summit Conference of Heads of State or Government of Non-Aligned Countries held at Havana, relating to economic problems. 8.  Despite the present stalemate in the negotiations, the Ministers reaffirm the continuing readiness of the developing countries for genuine action-oriented dialogue with developed countries which should be based on the principles and objectives contained in the Declaration and Programme of Action of the New International Economic Order and in the Charter of Economic Rights and Duties of States and be aimed at structural changes in international economic relations. Developed countries should, in that context, recognize not only the need for a genuine interdependence of nations but also the interrelationship of issues and the necessity for simultaneous progress on different planes. They should also recognize that the economic crisis has universal effects and hence there is a necessity for equal and full participation of all countries in the solution of international economic problems. 9.  While calling for the urgent and fundamental restructuring of the present institutional framework for international economic negotiations, in order to enable effective participation of all States on a basis of equality in the decision-making process, the Ministers strongly reaffirm that the United Nations system is the only framework within which all negotiations of a global nature relating to the establishment of the New International Economic Order should take place. In that regard, they emphasize the central role of the General Assembly as the supreme organ of the United Nations system in the economic and social fields. 10.  The Ministers reiterate the proposal made by the Group of 77 at the last meeting of the Committee of the Whole, on the basis of the recommendations of the Sixth Conference of Heads of State or Government of Non-Aligned Countries, aiming at the launching within the United Nations of a round global negotiations on international economic co-operation for development with the full participation of all States and within a specified time-frame. They, in particular, reiterate the conviction of developing countries that such negotiations should be action oriented and allow for an integrated simultaneous approach to major issues in the field of raw materials, energy, trade, development, money and finance. They emphasize that such negotiations should not involve any interruption of the negotiations in other fora of the United Nations system but should reinforce and draw upon them. They emphasize that the Committee of the Whole should

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perform the functions of preparatory committee and should submit to the special session of the General Assembly in 1980 its final report containing recommendations on the establishment of the global negotiations. Furthermore, they believe that the global negotiations should make a significant contribution to the implementation of the International Development Strategy for the third United Nations Development Decade. The Ministers call on the developed countries to demonstrate a positive and constructive attitude towards this proposal in order to enable the General Assembly at its thirty-fourth session to adopt it, it being understood that the success of the proposed negotiations will be conditional mainly upon a clear commitment by those countries to engage in genuine negotiations in the context of the establishment of the New International Economic Order. 11.  The Ministers recall that, on the basis of a proposal submitted by the Group of 77, the General Assembly decided to hold, in 1980, a special session. They emphasize again that the special session should assess the progress made in the various fora of the United Nations system in the establishment of the New International Economic Order and, in the light of that assessment, to take appropriate action for further promoting the development of developing countries and international economic co-operation. The Ministers believe that the General Assembly at its forthcoming special session should adopt the International Development Strategy for the third United Nations Development Decade. It should also, at the same session, launch the round of global negotiations on international economic co-operation for development proposed by the Group of 77. 12.  The Ministers consider that the basic structural and economic problems facing the least developed countries are so severe that extraordinary additional measures, especially designed as an integral feature of the New International Economic Order, are required. In this regard, the Ministers call on the international community to implement fully the Comprehensive New Programme of Action for the Least Developed Countries adopted at the Fifth United Nations Conference on Trade and Development. 13.  The Ministers consider also that there is a need for specific action to overcome economic problems arising from the handicaps facing the land-locked and island developing countries as well as the economic problems facing the most seriously affected countries. In this regard, they call on the international community to implement the resolutions and decisions adopted within the United Nations system in favour of those categories, including the resolutions adopted at the Fifth United Nations Conference on Trade and Development. 14.  The Ministers reaffirm the inalienable right of developing countries to full and permanent sovereignty over their natural resources and all economic activities, including the right of nationalization according to their national legislation. Furthermore, and in view of recent developments, they reiterate the commitment of the developing countries to condemn, reject and resist all forms of threats, including any military threats, or coercive actions and discriminatory economic policies and practices either direct or indirect against individual or groups of developing countries by developed countries. 15.  The Ministers reaffirm their strong belief that urgent, more vigorous and concrete steps and actions still remain to be taken, collectively and individually by all the members of the international community to end without delay colonialism, imperialism, neo-colonialism, interference in internal affairs, apartheid, racism, racial discrimination and all forms of foreign aggression, occupation, domination, hegemony, expansionism and exploitation which constitute major obstacles to the economic emancipation of the developing countries. They stress again that it is the duty of all States effectively to support and extend assistance to the countries, territories and peoples still subjected to, and affected by, these practices so as to restore their national sovereignty, territorial integrity and all other inalienable and fundamental rights, including the right to self-determination, in order to enable them to achieve interdependence, and to promote development and international co-operation, peace and security. They urge all countries to refrain

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from participating in, encouraging or promoting, in any way, any investment or economic activities aimed at trade, or exploitation of any resources, or investments in economic activities in the territories subjected to the aforementioned practices. The Ministers reiterate their unswerving support for the heroic struggle of the peoples of Namibia, Zimbabwe, South Africa, Palestine and the occupied Arab territories to achieve their liberation and to regain effective control over their natural resources and economic activities. The Ministers also declared their solidarity with the front lines States that, as a consequence of their support to the liberation movements of southern Africa, suffer military aggressions from the racist régimes. 16.  The Ministers reaffirm the unity of the aspirations and the purposes of the member countries of the Group of 77 as well as the identity of their fundamental interests. In this regard, they note with satisfaction that the solidarity and unity of the Group of 77 have been strengthened despite attempts by external forces to divide the group. Given the seriousness of the problems confronting the developing countries, they deem it vitally necessary further to strengthen and develop their unity and solidarity which will enable them to have an even greater impact in international economic negotiations. 17. The Ministers accordingly underline the vital importance of initiatives which member Governments of the Group of 77 take to accelerate the development and transformation of their economies through enhanced economic and technical co-operation among themselves on the basis of collective self-reliance. These initiatives include co-operation in the sphere of the supply of exportable primary products and commodities, participation in joint projects among developing countries for the creation of production and processing capacities in key sectors, organization of research and development within developing countries in key areas on a collective basis with shared financing and participation in the results thereof, increased financial assistance among developing countries, and the channeling of an increasing part of the funds invested abroad by developing countries in other developing countries. Within the framework of their national policies and legislations, the recipient developing countries are urged to take steps in order to ensure the security of investments in other developing countries and to grant especially favourable treatment to those investments. In the opinion of the Ministers, the strengthening of the Group of 77 will also enhance the collective bargaining strength and countervailing power of the developing countries, the need for which they recognize. They reaffirm that such countervailing power flows from the individual and collective self-reliance of the developing countries and that the basis of collective self-reliance rests on the intensification and strengthening of economic linkages and co-operation among developing countries. The Ministers, therefore, reiterate the firm intention of their Governments to give the highest priority to implementing programmes of economic and technical co-operation among themselves, based, inter alia, on the Manila Declaration and Programme of Action, the Mexico City Programme, the Buenos Aires Plan of Action, and the Arusha Programme of Action, as an essential element in the establishment of the New International Economic Order. 18.  The Ministers note with satisfaction the policy guidelines on the reinforcement of collective self-reliance among the developing countries adopted at the Sixth Summit Conference of Heads of State or Government of Non-Aligned Countries held at Havana, Cuba, the implementation of which would be of key significance in the further intensification of the solidarity of the developing countries leading to the early and successful achievement of the objectives of the economic and social development of developing countries through the establishment of the New International Economic Order.

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4.  Fourth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 29–30 September 1980 a.  Ministerial Declaration 1.  The Ministers for Foreign Affairs of the States members of the Group of 77 held their fourth annual meeting at United Nations Headquarters to review and assess the results of the eleventh special session of the General Assembly, to prepare for the consideration of issues at the thirty-fifth regular session of the General Assembly and to review the progress made since their meeting in March 1980 in the field of economic co-operation among developing countries. 2.  The Ministers recalled that the initiative for the launching of a new round of global negotiations was taken by the Sixth Summit Conference of Heads of State of Non-Aligned Countries held at Havana. The Ministers noted with satisfaction the support for the launching and for the success of the global negotiations reiterated at recent high-level meetings of developing countries, in particular the First Organization of African Unity Economic Summit, held at Lagos, the Sixth SELA Ministerial Meeting held at Caracas, and the Eleventh Islamic Conference of Foreign Ministers held at Islamabad. 3.  The Ministers are pleased with the declaration of OPEC, at its tri-ministerial meeting held recently at Vienna, in favour of the launching and successful conclusion of a new round of global negotiations. 4.  The Ministers recalled that, in the communiqué dated 22 August 1980 (A/S-11/19), of the Ministerial Meeting of the Group of 77, they had emphasized that the failure of the special session would have far-reaching adverse consequences for international economic co-operation, development, economic justice and stability, world peace and security. The Ministers had also expressed, in that communiqué, the hope that, in a spirit of co-operation, interdependence and mutual benefit, all industrialized countries would approach the negotiations at the special session with a sense of purpose and the political will indispensable to the success of the negotiations. 5.  The Ministers expressed deep disappointment and serious concern at the failure of the eleventh special session of the General Assembly to achieve its objectives. The negotiations during the special session have confirmed and proved beyond doubt that the main impediment towards progress in the establishment of the new international economic order is the opposition on the part of many developed industrialized countries to measures for restructuring the international economic system with a view to ensuring equity, justice and stability in global economic relations. This is evident in the fact that three developed industrialized countries did not find it possible to join the rest the States Members of the United Nations in an agreement on procedures for the global negotiations, which the Group of 77 had, in a spirit of compromise, decided to accept, and on which it had appeared that a consensus was possible. These three countries must bear the responsibility for the failure of the eleventh special session to reach the necessary agreements to launch the global negotiations. 6.  The Ministers commended the solidarity, unity and the strength as well as patience, displayed by the Group of 77 in the conduct of the negotiations during the eleventh special session. At each stage, the Group of 77 had approached the negotiations in a spirit of flexibility, co-operation and compromise while safeguarding the concept of the global negotiations as expounded by the General Assembly at its thirty-fourth session. 7.  The Group of 77 remains prepared to renew and to continue the negotiating process and, at the thirty-fifth regular session, will not be found wanting in efforts to complete the preparatory work for the new round of global negotiations, provided that the developed countries display

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the necessary readiness and political will. The Ministers expect that a positive attitude by all developed countries, in particular by the few who have held up the negotiations so far, during the thirty-fifth regular session will permit the launching of the global negotiations in January 1981. 8.  The Ministers noted the consensus reached on the text of the international development strategy for the third United Nations development decade, to come into effect and be implemented from 1 January 1981. They recommended that the strategy be adopted by the General Assembly at its thirty-fifth regular session. The Ministers expressed the view that the successful conclusion of the global negotiations will make a significant contribution to the implementation of the strategy. 9. The Ministers urged speedy implementation of the measures called for by the General Assembly in resolution S-11/4, adopted at its eleventh special session, in order to meet the critical economic situation of the least developed countries. The Ministers underlined the need for concrete steps to be taken in the current session of the General Assembly to reinforce preparations for the United Nations Conference on the Least Developed Countries. 10.  The Ministers took note of the adoption by the General Assembly at the eleventh special session of resolution S-11/3, entitled ‘Suggestions by the Secretary-General to overcome the critical economic situation of many developing countries,’ and called for effective follow-up action by the Secretary-General with a view to consideration by the Assembly at its thirty-fifth session. 11.  The Ministers stressed that the present difficulties and uncertainties in international economic relations and the stalemate in negotiations between developed and developing countries require renewed efforts to promote and strengthen economic co-operation among developing countries as an indispensable element both of the accelerated development of developing countries and of strengthening their negotiating power in their relations with the rest of the world. In this context, they considered, in accordance with the decision taken by the Ministerial Meeting of the Group of 77 held in March 1980, the report of the Meeting of the Ad Hoc Intergovernmental Group on Economic Co-operation among Developing Countries, held at Vienna from 3 to 7 June 1980. 12.  The Ministers endorsed the report of the Ad Hoc Intergovernmental Group and the conclusions and recommendations contained therein, and expressed the view that they represented an extremely useful basis for further progress in the area of economic co-operation among developing countries. The Ministers particularly underlined the conclusion contained in the report that economic co-operation among developing countries, particularly in trade, raw materials, energy, food, industrialization, technology and finance would be one of the best means by which, the integration and collective self-reliance among developing countries could be greatly consolidated. 13.  In the context of economic co-operation among developing countries, the Ministers expressed satisfaction at the willingness of other developing countries to take concrete measures to assist in meeting the development needs of the least developed countries on a priority basis. The Ministers strongly emphasized the need for particular attention being given to the least developed countries within the framework of economic co-operation among developing countries and urged that special efforts should be undertaken to ensure that all least developed countries can actively participate and benefit from programmes of economic co-operation among developing countries in various fields. 14.  The Ministers therefore agreed to convene a conference of developing countries at a high level in 1981 in order to intensify and ensure the implementation of various programmes and decisions on economic co-operation among developing countries in a concrete and coherent manner.

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15.  To this end, the Ministers entrusted the Group of 77 in New York to make necessary arrangements for the preparation of the conference. This preparatory work should include ad hoc technical meetings of officials responsible at the national level for the operational aspects of activities of economic co-operation among developing countries in each of the areas. 16.  The Ministers noted with interest the ideas for further co-operation among developing countries, which emerged from the fifty-fifth Conference of OPEC, held at Caracas, and subsequent meetings. In particular, the Ministers noted with great interest that the proposal for an OPEC development agency was under consideration and that it will be placed before the OPEC summit meeting together with other proposals. 17.  The Ministers recalled paragraph 13 on economic co-operation among developing countries of the communiqué dated 22 August 1980. The Ministers considered that a major and significant contribution in the field of economic co-operation among developing countries has been made in the recent joint Declaration of the Presidents of Mexico and Venezuela on an energy co-operation programme for Central American and Caribbean countries. The Ministers strongly affirmed that the institution of such a programme as well as the existing subregional and regional arrangements among developing countries would lead to significant reinforcement of collective self-reliance among developing countries.

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5.  Fifth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 28–29 September 1981 a.  Ministerial Declaration 1. The Ministers of Foreign Affairs of the Group of 77 held their fifth annual meeting in New York, from 28 to 29 September 1981, to review developments that had taken place since they last met in September 1980 and prepare for the thirty-sixth regular session of the General Assembly. 2.  The Ministers expressed their deep concern at the alarming worsening of the international situation, both in political and economic fields and the lack of progress in the establishment of the New International Economic Order. They noted with equal concern that the continued deterioration of economic conditions in the world, with its grave consequences for the economies of the developing countries, which revealed a crisis of a structural nature, had become one of the most serious and potentially disruptive political problems of our times. They regretted that a few developed countries still lacked the positive political will to undertake without delay deliberate and concerted measures designed to achieve effective and equitable solutions to the present world economic crisis. They were convinced of the need for perseverance in the building of mutual confidence among all members of the international community with a view to restructuring the existing international economic order and lessening international political tensions. 3.  The Ministers reviewed the economic performance of the developing countries during the past year. They expressed their deep concern at the fact that the world economic crisis had resulted in a further erosion of their terms of trade, high levels of inflation, a considerable increase in the cost of capital and international credit as reflected in the unprecedented increase in interest rates -it had been determined that an increase in 1 per cent in interest rate would result in further indebting developing countries by $US 20 billion- insufficient and declining demand for their exports, rising protectionism and continued rigid and unfavourable terms for transfer of technology, disrupting their economic growth and leading to sharp increases in external deficits and indebtedness. It had therefore become imperative for the international community to take effective action for the resolution of these grave problems, which would contribute to the attainment of the goals and objectives of the International Development Strategy for the Third United Nations Development Decade. 4.  The Ministers expressed their deep concern over the critical food situation being experienced in developing countries at large, and in Africa in particular. They urged developed countries, international agencies and institutions and others that were able to do so to provide food assistance as quickly as possible and to grant increased development assistance to help the developing countries become self-sufficient in food production through, inter alia, an early establishment of a world food security net. The Ministers urged the early replenishment of the resources of the International Fund for Agricultural Development. They stressed that there was a direct link between the shortage of food and the barriers to food exports from developing countries imposed by certain developed countries. 5. The Ministers were disturbed at the emergence of certain trends that ran counter to the common objectives of multilateral economic co-operation. Among these they were particularly concerned by the excessive emphasis given to bilateralism at the expense of multilateral co-operation, as well as to the so called free international market forces and the role of transnational corporations, while recourse to protectionist measures on the part of developed countries was on the increase. The Ministers also expressed their concern at the tendency to condition

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international economic co-operation by East-West considerations, thereby aggravating existing tensions, at the expense of the development of the developing countries. These and other trends, as reflected, inter alia, in the enormous waste of resources on armaments, jeopardized the search for a better and more secure future for the present and coming generations. 6.  The Ministers pointed to the serious implications of the erosion of multilateral economic co-operation as evidenced, inter alia, in general by the inadequate transfer of real financial resources for development and, in particular, by the slowing down of official development assistance, the uncertainties regarding voluntary contributions to different programmes and funds of the United Nations system and the declining support for global and regional multilateral development financial institutions, in particular the International Development Association. In this context, the Ministers firmly reiterated the need for continued and strengthened commitment to a further enhancement of multilateral co-operation through, inter alia, substantially higher levels of public multilateral flows of finance for development, particularly in areas which were critically important for the development of the developing countries. 7.  The Ministers recalled the initiative taken by the developing countries regarding global negotiations on international economic co-operation for development, which had been endorsed by the international community at the thirty-fourth session of the General Assembly. In this context, they also recalled the firm attachment to this initiative, which would lead to a qualitatively new stage in the restructuring of international economic relations through the establishment of a New International Economic Order. They reaffirmed that only a global and integrated approach to the present world economic problems, with the participation of all States, would contribute to the restructuring of international economic relations through agreed solutions that would be lasting and equitable for all. The Ministers underlined the urgency of launching global negotiations and expressed their concern that this continued to be jeopardized mainly by one country. The Ministers expressed the hope that this country, recognizing the shared belief that all countries stood to benefit from its outcome, would join the broad support for global negotiations by the international community. 8. The Ministers underlined the importance of the results of the High-level Conference on Economic Co-operation among Developing Countries, held at Caracas from 13 to 19 May 1981, the convening of which had been decided at their last meeting in September 1980. The Caracas Conference, which followed other important meetings on Economic Co-operation among Developing Countries, was designed to take practical measures in this field and agree on mechanisms that would ensure their implementation and follow-up. The Ministers were of the opinion that the Caracas Conference had achieved fully this objective and stressed the importance of carrying out effectively the provisions contained in the Caracas Programme of Action. They noted with satisfaction that the first steps towards this end had already been taken. The Ministers reaffirmed their conviction that increased economic co-operation among developing countries was of critical importance to all members of the Group of 77, to whom this new impulse towards collective self-reliance would yield balanced and lasting benefits, consolidating their solidarity and enhancing their negotiation position with the developed countries. 9.  The Ministers stressed the importance of continued support, particularly through technical assistance and financing by organs, organizations and bodies of the United Nations system, to economic co-operation among developing countries. They also stressed that past decisions in this regard provided the necessary legislative basis for this support. 10.  The Ministers took note with interest of the results of the United Nations Conference on New and Renewable Sources of Energy, held at Nairobi from 10 to 21 August 1981. They did, however, express regret that agreement could not be reached on some of the fundamental issues. The Ministers, therefore, stressed the need for a further effort by the international community, particularly by the developed countries, to agree as soon as possible on the institutional mechanisms

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and measures for the additional transfer of financial resources required for fully carrying out the Nairobi Programme of Action, and for an effective contribution to the energy transition as defined in that Programme. 11.  The Ministers, stressing the importance of meeting the critical economic situation of the least developed countries, took note of the positive outcome of the United Nations Conference on the Least Developed Countries, held in Paris from 1 to 14 September 1981, and urged all countries and multilateral institutions to take immediate and appropriate steps for the implementation of the Substantial New Programme of Action for the Least Developed Countries for the 1980s, adopted at the Conference. They also recommended that for effective follow-up, monitoring and implementation of the Substantial New Programme of Action adequate resources should be made available to the concerned agencies of the United Nations system. 12.  The Ministers also discussed specific question of interest to the Group of 77. As a result of these discussions: (a)  The Ministers expressed their expectation that the Development Information Network would be implemented without further delay. The Ministers underlined the need for improving and strengthening the flows of information among developing countries, especially within the framework of economic co-operation among developing countries, in order to ensure the coherence and increasing coverage of activities undertaken under the Caracas Programme of Action. (b)  The Ministers took note of the common position on a code of conduct for transnational corporations adopted by the developing countries in the Commission on Transnational Corporations. They recognized that it was important for the Chairman of the Group to continue to inform the Group of 77 as a whole in New York on the results achieved in the forthcoming negotiations on the subject, recognized and the need to ensure the participation of all developing countries at a later stage and facilitate the adoption of a universal code of conduct for transnational corporations. (c)  The Ministers, while regretting that no decisions had been taken on the long-term arrangements for the Financing System on Science and Technology for Development during the resumed third session of the Intergovernmental Committee on Science and Technology for Development, stressed the necessity that negotiations be held during the thirty-sixth session of the General Assembly on this matter to enable the Financing System to become fully operational as from 1 January 1982, in accordance with General Assembly resolution 34/218. (d)  In noting the results of the United Nations Conference on New and Renewable Sources of Energy, the Ministers recommended that the high-level meeting foreseen in paragraph 49 (e)  of the Caracas Programme of Action on Economic co-operation among Developing Countries should be convened in the first quarter of 1982, and that it should, inter alia, consider and make recommendations to the Group of 77 on the establishment of a Centre for Research and Development on New and Renewable Sources of Energy based on the proposal submitted by Jamaica at the Nairobi Conference. (e)  The Ministers emphasized the importance of an early conclusion of the protracted negotiations regarding the convention on the law of the sea and expressed the hope that the ensuing year would, as envisaged, see the conclusion and signing of that convention. The Ministers urged all members of the international community to co-operate in the attainment of this goal. (f)  The Ministers agreed on the need for all countries that had not yet done so to take expeditiously the necessary measures towards the early entry into force of the agreements establishing the Common Fund for Commodities and individual commodity agreements. The Ministers welcomed the agreement reached at the High-Level Conference on Economic Co-operation among Developing Countries, held at Caracas, that the headquarters of the Common Fund for

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Commodities should be located in a developing country. The Ministers took note of the offer by the Philippines of a permanent site for the headquarters of the Common Fund. (g)  The Ministers took note of the report of the Group of Experts on the preparatory work relating to the Global System of Trade Preferences and called for the convening of a meeting of senior officials in early 1982 to finalize and approve the rules for the launching of negotiations to establish the Global System of Trade Preference, in accordance with the Caracas Programme of Action. (h)  The Ministers recalled that the Conference on the Revision of the Paris Convention for the Protection of Industrial Property should take all appropriate measures to eliminate the abuses of the monopoly of the patentee, such as the lack or insufficiency of exploitation of the patent inside the country which had granted the protection. The Ministers believed that the proposed article 5A, as submitted to the Conference in the basic proposals, was a balanced article and regretted that some developed countries seemed not to be in a position to live up to their commitments. The Ministers requested the developing countries members of the Paris Union to maintain the Group of 77 in Geneva informed on the results achieved in the second session of the Conference on the Revision of the Paris Convention. 13. The Ministers expressed deep concern that the fourth session of the United Nations Conference on an International Code of Conduct on the Transfer of Technology had not completed its work and recommended that all efforts should be made in order that the Code might be adopted by the General Assembly at its thirty-seventh session.

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6.  Sixth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 6–8 October 1982 a.  Ministerial Declaration The Ministers for Foreign Affairs of the Group of 77 held their sixth annual meeting at United Nations Headquarters, New York, on 6, 7, and 8 October 1982 to review the world economic situation and international co-operation for development since their last meeting in September 1981, and to prepare for the thirty-seventh regular session of the General Assembly. The Ministers also carried out an in-depth review of issues relating to the strengthening of co-operation among developing countries.

I 1.  The Ministers made an appraisal of the economic situation of the developing countries and the negative impact of the world crisis on their development process. In this connection, they reaffirmed that the slowing-down of activities and of economic growth, the increased deficit in the balance of payments of the developing countries, the deterioration of their terms of trade, the pernicious effects of high interest rates on the servicing of their external debt and on their access to international capital markets, the drying up of flows of multilateral assistance on concessional terms, the harshening of the terms of financial and technical assistance, the uncertainty, precariousness and inadequacy of food aid, the protectionist barriers constantly being raised against the exports of developing countries and the subsidies that cause a disruption of the markets, seriously hampering the export possibilities of the developing countries, the inequitable terms of transfer of technology, the increasing outflow of trained personnel towards developed countries, the impediments and restrictions imposed on the access of developing countries to the international capital markets, the organized manipulation of prices of raw materials, constitute serious obstacles to the economic growth of the developing countries, to the servicing of their external debt, to the procurement of their essential imports of food, industrial products, energy and technology and to fair remuneration for their exports. These were symptoms of deep crisis requiring urgent and effective measures on the part of the international community. 2.  The Ministers expressed deep concern at the alarming deterioration of the international situation in both the political and the economic fields and reiterated their conviction that what the international community is facing is a structural crisis with a global impact in that it affects all sectors of activity and all countries. In this connection, they noted with concern that this crisis, which is immune to traditional cures, remains one of the most serious political problems of the day and a potential source of instability and insecurity. 3.  The Ministers noted with grave concern that the world economic crisis is aggravated owing to an accelerated arms race, which constitute a serious threat to international security, to world economic stability and, most of all, to the development of developing countries. They reaffirmed the existence of the undeniable link between peace, and development and imperative need to halt the arms race, thereby releasing valuable additional resources which could be used for the development of the developing countries and could contribute to the well being and property of all. 4.  The Ministers deplored the fact that, at a time when the deepening and widening of the world economic crisis demands a concerted and systematic search for innovative and lasting solutions, some developed countries, which are among the most powerful, persist in resorting to arbitrary unilateral decisions which have an adverse affect on the world economy and refusing to enter into genuine negotiations. The Ministers noted with concern that such a refusal found expression at

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both the global and the sectoral levels, as is abundantly clear from the undue delays in launching the global negotiations, and the lack of decisive progress in a number of ongoing sectoral negotiations and in the serious decline in the level of the resources of the various international development and financial institutions. They were of the view that this refusal contravenes the very spirit of multilateral economic co-operation and the goals which the international community set itself through the Declaration and the Programme of Action on the Establishment of a New International Economic Order, the Charter of Economic Rights and Duties of States and the International Development Strategy for the Third United Nations Development Decade. 5.  The Ministers regretted the negative attitude of some developed countries in not acknowledging and accepting that the emergence of the developing countries as full partners in world economic relations would constitute a positive and significant contribution to the solution of the present crisis. 6.  The Ministers were concerned at the hardening of certain negative trends, which run counter to the objectives of multilateral co-operation and weaken the United Nations system, which is the framework for the organization and conduct of such co-operation. In this connection, they expressed particular concern at the excessive emphasis being given by a few industrialized countries to bilateralism at the expense of multilateral co-operation, at the so-called free play of international market forces and at the role of transnational corporations The Ministers denounced attempts to subordinate international co-operation to strategic objectives or to considerations connected with East-West relations, thus aggravating the existing tensions and creating even more impediments to the development of developing countries. 7.  The Ministers noted with concern that the tendency of certain developed countries, taking advantage of their predominant position in international economy, to adopt economic measures to exert coercive or political pressures against members of the Group of 77, was adding an element of injustice and insecurity in international economic relations. 8.  The Ministers strongly affirmed the legitimacy of the intensification, adoption and application of economic sanctions and others measures in the struggle against apartheid, racism, all forms of racial discrimination and colonialism which constitute major obstacles to the emancipation of developing countries and peoples. In this regard, they emphasized the rights of developing countries, individually and collectively, to adopt such sanctions and other measures. 9.  The Ministers reaffirmed their strong belief that urgent, more vigorous and concrete steps and actions still remain to be taken, collectively and individually, by all the members of the international community to end without delay colonialism, imperialism, neo-colonialism, interference in internal affairs, apartheid, racism, all forms of racial discrimination and all forms of foreign aggression, occupation, domination, hegemony, expansionism and exploitation which constitute major obstacles to the economic emancipation of the developing countries. They stressed again that it is the duty of all States to support effectively and extend assistance to the countries, territories and peoples still subjected to, and affected by, these practices so as to restore their national sovereignty, territorial integrity and all other inalienable and fundamental rights, including the right to self-determination, in order to enable them to achieve independence, and to promote development and international co-operation, peace and security. They urged all countries to refrain from participating in, encouraging or promoting, in any way, any investment or economic activities aimed at trade, or exploitation of any resources, or investments in economic activities in the territories subjected to the aforementioned practices. The Ministers reiterated their unswerving support for the heroic struggle of the peoples of Namibia, South Africa, Palestine and the occupied Arab territories to achieve their liberation and to regain effective control over their natural resources and economic activities. The Ministers also declared their solidarity with the front-line States that, as a consequence of their support to the liberation movements of southern Africa, suffer military aggressions from the racist régime.

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10.  The Ministers expressed deep concern at the undermining of international co-operation for development, an adverse trend expressed most strongly in the form of policies pursued by some developed countries with regard to multilateral development financing institutions, a decrease in official development assistance and a steady decline in voluntary contributions to United Nations funds and programmes, particularly the United Nations Development Programme. The Ministers reaffirmed the imperative need for a renewed commitment to the strengthening of multilateral economic co-operation, particularly through a substantial increase in the flow of multilateral official development finance. 11. The Ministers urged that international financial institutions, such as the International Monetary Fund and the World Bank, play a larger catalytic role in assisting the process of recovery in developing countries through such measures as a substantial increase in structural adjustment and programme lending, expanded balance-of-payments support with low conditionality and the institution of a medium-term facility on concessional terms. 12.  The Ministers deeply regretted the present policies of credit restrictions and withdrawal of bank funds applied by some developed countries in their financial-credit relations with the developing countries, which, together with the increase in interest rates to unforeseen levels, as a result of national policies which are incongruent with the international economic situation, has aggravated the critical lack of financial resources of the developing countries and seriously jeopardizes the continued functioning of the international financial system. 13.  The Ministers reaffirmed that inherent in the diversity of the developing countries were prospects and opportunities for economic complementarity that were as yet unexplored. They noted that that factor made for greater unity among the members of the Group of 77 and stressed that it should not be used by the developed countries to create arbitrary or discriminatory divisions among developing countries. The Ministers reiterated their condemnation of attempts to do so, such as graduation and differentiation, which constitute a real threat to international co-operation for development and the negotiations themselves. 14.  The Ministers drew attention to the extremely important political initiative taken by the developing countries in their proposal for global negotiations. The Ministers reaffirmed their commitment and expressed regret that, after three years, no consensus had been reached in this regard. They also reaffirmed that the global negotiations as accepted by the entire international community at the thirty-fourth session of the General Assembly, remained the appropriate framework for dealing with world economic and development problems in a coherent, integrated and simultaneous manner through a process of genuine negotiation in which the General Assembly would have a central role. 15.  The Ministers recalled the proposal submitted by the Group of 77 on 31 March 1982 and stressed the special importance of that proposal as a basis for realistic compromise on the immediate launching of the global negotiations. 16.  The Ministers welcomed as a favourable development the fact that developed countries, particularly those which had participated in the Summit Conference at Versailles, also considered the launching of global negotiations to be a major political objective. They expressed the hope that that declaration of intent would be accompanied by a real political will on the part of the developed countries for the effective launching of the global negotiations. 17.  The Ministers took note of the amendments made by the industrialized countries to the proposal submitted by the Group of 77. They strongly appealed to the developed countries to respond favourably to the recent proposals of the Group of 77, submitted on 30 June 1982, the response to which they still await. The Ministers expressed the hope that such response will be received as soon as possible so as to enable the global negotiating process to get under way without further delay. 18.  In that connection, the Ministers were of the opinion that the convergence of views expressed within the international community on the major political importance of the global negotiations

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should serve as a stimulus for the immediate launching of those negotiations and for removing the remaining obstacles to them during the thirty-seventh session of the General Assembly. 19.  The Ministers pointed out that General Assembly resolution 34/138 provided that the global negotiations should not involve any interruption of, or have any adverse effect upon, the negotiations in various United Nations forums. In this context, the Ministers therefore reiterated the need for urgent concurrent efforts in fields that were of critical importance for the developing countries, such as raw materials, food energy, financial flows and trade, at forthcoming conferences and meetings of the United Nations system. They stressed that, without prejudice to the adoption and the implementation of long-term and structural changes and the launching of the global negotiations, concrete emergency action, to benefit all developing countries, should be taken on the most pressing economic questions which present a short-term threat to the international community. The Ministers pledged their intention to continue to participate in the search for negotiated solutions, thus enabling the developing countries to participate more effectively in the reactivation of international economic activities. They urged the developed countries to take the necessary initiatives to remove the external bottlenecks that now tend to asphyxiate the economies of the developing countries. 20.  The Ministers once again drew the attention of the international community to the critical economic situation of the least developed countries, which are facing serious socio-economic difficulties and profound structural problems. They reaffirmed the imperative need for urgent and effective implementation of the Substantial New Programme of Action for the 1980s for the Least Developed Countries. In this context, the Ministers renewed their urgent appeal directed to all countries and multilateral institutions to take immediate concrete and adequate measures to implement the Programme with a view to promoting a self-sustained process of socio-economic development of the least developed countries. The Ministers likewise recommended that sufficient resources be ensured for the competent United Nations bodies so as to make possible their contribution to the effective implementation of the Substantial New Programme of Action. 21.  In view of the evident and increasing dangers threatening the world, the Ministers urged the other members of the United Nations to resolve together to discharge our common responsibility in reaffirmation of the spirit of international solidarity. They are convinced that in order to avert the breakdown of the international economy, it is necessary more than ever to take determined convergent steps towards the laying down of a sound basis for the world economy. The Ministers emphasized that such a joint endeavour should bring about mutual trust, as they share the conviction that it could only lead to an outcome that would be beneficial to every nation, and would result in a genuine convergence of positions which would be action-oriented and would aim at ensuring the survival and betterment of mankind. This rallying call is voiced by the developing countries at the United Nations because it aims at uniting the efforts of all at this crucial moment.

*** 22.  The Ministers also discussed questions of specific interest to the States members of the Group of 77. As a result of those discussions: (i)  The Ministers emphasized the particular importance of the forthcoming sixth session of the United Nations Conference on Trade and Development to be held at Belgrade in 1983, as it would undertake an integrated review of world development and its impact on the trade and development of developing countries. They also attached importance to active participation in the Ministerial Meeting of the Group of 77 to be held in Buenos Aires prior to the sixth session, in order that the Conference might find constructive responses to all of the important issues concerning trade, development and related issues in their interactions and their interrelationship on the basis of the provisional agenda adopted by the Trade and Development

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Board at its twenty-fourth session. The Ministers appealed to all developed countries to adopt a positive and constructive attitude and, in the spirit of co-operation, interdependency and mutual benefit in particular, requested those among them which had thus far blocked the adoption of decisions during major negotiations to demonstrate the necessary political will in order to make the sixth session a genuine success. The Ministers expressed their appreciation to the Government of Argentina for hosting the Ministerial Meeting of the Group of 77 to prepare for the sixth session and to the Government of Yugoslavia for hosting the Conference. (ii)  The Ministers stated that the Ministerial Meeting of the Contracting Parties to GATT provided an opportunity to focus the attention of the international community on the functioning of the multilateral trading system and to improve it in the interest of all nations. They invited every country to take advantage of that meeting in order to begin a restructuring of GATT, so as to reverse the negative trends, which had emerged in that institution. In the context of the forthcoming Ministerial Meeting, they affirmed that GATT should not become involved in new normative tasks in the services, investment policy and high-technology goods sectors, which would not only be detrimental to the interests of developing countries in international markets, but would hamper efforts aimed at reforming GATT in order to adapt it more closely to the needs and interests of the developing countries. The Ministers urged the developing countries to intensify their preparations for the Ministerial Meeting of GATT, so as to ensure that their problems would be given priority attention and would receive appropriate and lasting solutions. iii)  The Ministers endorsed the Ministerial Communiqué of the Intergovernmental Group of Twenty Four regarding international monetary and financial matters, issued at Toronto on 3 September 1982. They noted with satisfaction that despite the regrettable failure of a major donor country to meet its commitments, several countries have moved positively towards funding the sixth replenishment of the International Development Association. They urged that the third installment be fully released and that negotiations on the seventh replenishment should ensure a substantial increase of resources in real terms without any distortions in the original framework of the Association. The Ministers emphasized that the International Monetary Fund must respond adequately to the requirements of the developing countries, inter alia, by at least a doubling of its quotas, and by reversing the trends towards stricter conditionality often unsuited to the needs of the developing countries. The Ministers emphasized the importance of a substantial expansion in concessional lending by multilateral financing and development institutions, particularly the World Bank, for the development of energy resources of developing countries, not merely a reallocation of existing resources. They also stressed the importance of the establishment of the Energy Affiliate of the World Bank, with a rational decision-making structure. The Ministers stressed that developing countries should take collective initiatives in this regard. (iv) The Ministers reaffirmed their support of the Consensus of 1970 of the Governing Council of United Nations Development Programme. In this regard, they expressed their deep concern at the negative position of some developed countries regarding, inter alia, the financial resources and mode of operation of the Programme, as expressed in the first meeting of the Intersessional Committee of the Whole of the United Nations Development Programme Governing Council, and agree to closely coordinate the position of the developing countries. (v)  The Ministers emphasized the importance of food and agriculture as an area of high priority for the developing countries in their efforts to achieve self-reliant development and expressed deep concern over the worsening of the already critical food situation faced by most of the developing countries, particularly the least developed countries. In this regard the

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Ministers noted with great concern the continuing deteriorating food situation in Africa. They reiterated the urgent need for eradication of hunger within the shortest possible time both by the early establishment of a global food security system and by increased assistance to developing countries in the food and agricultural sector by developed countries and relevant international organizations. The Ministers reaffirmed the need to resume talks on an International Grains Agreement and to pursue efforts to set up developing countries-owned food reserves. The Ministers further expressed deep concern at the disruptive market practices applied by certain developed countries against developing countries through a system of trade barriers and export subsidies which continue to prevent the full utilization of the food production capacity of the developing countries and cause a serious decrease in global food production. (vi)  The Ministers expressed their profound regret that once again no agreement had been reached on the long-term arrangements for the United Nations Financing System for Science and Technology for Development, established by the General Assembly on 1 January 1982. They deplored the fact that an increasing number of developed countries were manifesting opposition towards the establishment of such a system, which has been adopted by consensus and which represented one of the principal attainments of the United Nations Conference on Science and Technology for Development, held at Vienna in August 1979. They expressed the view that such opposition, which had developed, despite the solemn appeal of the SecretaryGeneral of the United Nations, was deeply injurious to international co-operation for development and constituted a serious obstacle to United Nations action. The Ministers made a further urgent appeal, aimed especially at the developed countries which had adopted a negative attitude towards the establishment of the Financing System, to reconsider their position in a constructive and positive light so as to allow a final agreement on the long-term arrangements for the Financing System to be reached in the early weeks of the thirty-seventh session of the General Assembly. In this context, the Ministers commended the continuing efforts of the Goodwill Mission to facilitate the agreement on the establishment of the United Nations Financing System for Science and Technology for Development. (vii)  The Ministers reaffirmed the importance of the Nairobi Programme of Action for the Development and Utilization of New and Renewable Sources of Energy as a framework for international action to develop and promote new and renewable sources of energy in developing countries. In taking note of the recommendations of the Interim Committee on New and Renewable Sources of Energy, which had met at Rome from 7 to 18 June 1982, the Ministers again emphasized the importance of mobilizing additional financial resources, especially within the United Nations system, and of developing institutional structures to ensure that responsibility for the new and renewable sources of energy sector would be specifically exercised through inter alia, an identifiable Intergovernmental Committee, a secretariat and appropriate co-ordination machinery. (viii) The Ministers, without prejudice to and with due respect for the positions of the Members of the Group of 77, took note of the prevailing tendency in favour of the signature and early entry into force of the United Nations Convention on the Law of the Sea, which established a new legal order for the rational use of the seas and the oceans as an instrument of justice, peace, development and international co-operation of States. The Ministers, at the same time, reiterated that any unilateral action or multilateral agreement concerning activities in the area of the international sea-bed in disregard of the legal régime contained in the Declaration of Principles Governing the Sea-Bed and the Ocean Floor of 1970 and of the rules agreed to by the United Nations Conference on the Law of the Sea, would be devoid of international validity and would lead to appropriate measures in defense of the interests of all States in the utilization of that area as a common heritage of mankind. The Ministers urged

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that the General Assembly allocate the necessary resources to enable the Preparatory Commission and the International Tribunal for the Law of the Sea to discharge their mandate under the Convention, effectively and expeditiously. (ix)  The Ministers underlined the importance of international co-operation in the field of peaceful uses of nuclear energy, on the basis of the inalienable right of all States, without discrimination, to develop, acquire and use nuclear technology, equipment, materials and services for the peaceful uses of nuclear energy and to determine their peaceful nuclear programmes in accordance with their national priorities, needs and interests. The Ministers recognized the political and economic significance of the United Nations Conference for the Promotion of International, Co-operation in the Peaceful Uses of Nuclear Energy, to be held in August/September 1983, and reaffirmed the need to expedite preparatory works for the Conference. The Ministers resolved that the developing countries should continue to take an active part in preparation for the Conference and hoped that it would adopt the principles and appropriate ways and means for international co-operation in the peaceful uses of nuclear energy. (x)  The Ministers reaffirmed the need for all countries that had not yet done so to take expeditiously the necessary measures toward the early entry into force of the Agreement Establishing the Common Fund for Commodities and individual commodity agreements. The Ministers welcomed the agreement reached at the High-level Conference on Economic Co-operation among Developing Countries, held at Caracas, that the headquarters of the Common Fund for Commodities should be located in a developing country. The Ministers took note of the standing offer by the Government of the Philippines of a permanent site for the headquarters of the Common Fund for Commodities.

II 1.  The Ministers reaffirmed the increasing importance of and their full political support for economic co-operation among developing countries. They expressed their strong support for the strategy of collective self-reliance as both a dynamic factor for developing the distinctive potential of the developing countries and a means of enhancing their negotiating power vis-à-vis the developed countries. 2.  The Ministers emphasized that economic co-operation among developing countries, while neither a pre-condition nor a substitute for the negotiations between developing and developed countries, was an essential part of the efforts of the developing countries to establish the New International Economic Order. 3.  They expressed their profound belief that diversification and expansion of economic relations among developing countries with the aim of strengthening their collective self-reliance had become all the more necessary with the worsening of the structural crisis besetting the world economy, which hit the developing countries particularly hard. 4. The Ministers noted with satisfaction the progress made in implementing the Caracas Programme of Action on Economic Co-operation among Developing Countries, in particular the encouraging results of the 11 meetings of high-level officials/experts held during 1982, the sizeable initial contributions to the Group of 77 Account for ECDC, the activities of the Core of Assistants to the Chairman of the Group of 77 in New York and the designation by more than 50 member States of national focal points for ECDC. 5.  They also noted with satisfaction the ‘Manila Follow-up Action for ECDC’ adopted at the first meeting of the Intergovernmental Follow-up and Co-ordination Committee for ECDC and endorsed the recommendations contained therein aimed at full and effective implementation of the Caracas Programme of Action.

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6.  The Ministers emphasized the need for the holding at an early date of the sectoral follow-up meetings as envisaged in the Caracas Programme of Action and called on all member countries to come forward to offer venues for these meetings as well as other meetings which might arise from the follow-up of those already held. They also reiterated the importance of the participation of the largest possible number of interested countries in those meetings. The Ministers agreed that a revised calendar of meetings relating to the implementation of the Caracas Programme of Action should be drawn up by the Chairman of the Group of 77 in New York in close co-ordination with Chairmen of other Group of 77 chapters. The Ministers emphasized the need for further strengthening of co-ordination between the Group of 77 in New York and other chapters through the establishment of effective channels of communication and distribution of information. The Ministers appealed to the members to contribute generously to the ‘ECDC Account’ in order to facilitate full implementation of the Caracas Programme of Action. They also emphasized the importance of the work of the Core of Assistants to the Chairman of the Group of 77 and, reiterating their thanks to the Governments which have facilitated their availability and participation, they endorsed the recommendations made by the Intergovernmental Follow-up and Co-ordination Committee regarding the work of the Core. 7.  The Ministers adopted a ‘Ministerial Declaration on the Global System of Trade Preference Among Developing Countries’ and invited all developing countries to participate fully in the system, which is aimed at promoting a substantial expansion in trade relations among developing countries. In this context, the Ministers urged the UNCTAD secretariat to provide all necessary administrative and technical support for the conduct of the negotiations on the global system of trade preferences and its implementation. 8.  The Ministers underlined the importance of promoting collective self-reliance among developing countries in the field of energy by way of concrete regional and subregional arrangements among them. 9.  Taking into account that the non-aligned countries have also been undertaking ECDC activities, the Ministers took note with satisfaction of the full support given to the implementation of the Caracas Programme of Action on ECDC by the Ministerial Meeting of the Coordinating Bureau of the Non-Aligned Countries, held at Havana in June 1982. The Ministers noted with satisfaction the recommendations concerning the harmonization of the implementation of the Caracas Programme of Action and the Non-Aligned Action Programme for ECDC contained in the final declaration of the Havana Ministerial Meeting of the Coordinating Bureau of the Non-Aligned Countries and in the report of the ‘Manila Follow-up Action’ adopted in August 1982. They recommended that the Chairmen of the Group of 77 and of the Non-Aligned Movement should act together to undertake a study of ways and means for facilitating effective co-ordination and harmonization of the implementation of the two Programmes. 10.  The Ministers reiterated that ECDC was a matter within the purview of the developing countries, but that, at the same time, the support of developed countries and international organizations was necessary for its implementation. Those concepts were recognized in relevant United Nations resolutions, in particular United Nations Conference on Trade and Development resolutions 127 (V), which had been adopted by consensus and endorsed by the General Assembly in resolution 34/196 of 19 December 1979. 11.  The Ministers considered the question of ECDC activities in the United Nations system, particularly in UNCTAD and reviewed the problems raised by developed countries in this respect. In this connection, the Ministers reiterated their support for ECDC activities in UNCTAD, particularly in the three priority areas, Global System of Trade Preferences, State Trading Organizations and Multinational Marketing Enterprises. They deplored the position taken by some developed countries in UNCTAD on ECDC activities, and strongly urged these

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countries to respect their commitments under the various resolutions and decisions on ECDC adopted within the United Nations system. 12.  They reaffirmed the importance, which the Group of 77 attached to action to ensure that decisions taken within organizations of the United Nations system for the support of ECDC activities were respected, and reiterated their confidence that the developed countries which were members of those organizations would give full effect to such decisions. 13.  The Ministers emphasized that the implementation of ECDC required sustained and vigorous attention and reiterated their decision to carry out an in-depth review of the subject every two years.

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7.  Seventh Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 6–7 and 10 October 1983. a.  Ministerial Declaration The Ministers for Foreign Affairs of the Group of 77 held their seventh annual meeting at United Nations headquarters, New York, on 6, 7 and 10 October 1983 to review the world economic situation and the state of international co-operation for development since their last meeting in October 1982, and to prepare for the thirty-eighth session of the General Assembly. The Ministers also undertook a thorough review and appraisal of the implementation of the Caracas Programme of Action on Economic Co-operation among Developing Countries.

I 1.  The Ministers noted with grave concern that the world economy was engulfed in the most pervasive and dangerous crisis since the 1930s and that the negative impact of the crisis, which originated in some of the major industrialized countries, had been the greatest on developing countries. They observed that by any indicator of economic growth, the situation in developing countries, particularly that of the least developed countries, was critical and alarming. They found that the development process in the developing countries had been severely disrupted and had virtually come to a halt in many. They also noted with profound disquiet the fact that a harsh adjustment process had been imposed on the developing countries. They stressed the heavy toll that the inadequate and inequitable international trade, monetary and financial system had inflicted on the economies of developing countries, with consequent stagnation, and even decline, of growth. They noted that international trade had entered a period of stagnation and retrogression, asphyxiated by commodity price volatility, growing protectionist barriers and the burden of foreign debt, thus making it impossible for the developing countries to sustain their required levels of economic activity. The Ministers expressed concern at the painful steps that had consequently been forced on many of their Governments for curtailing drastically the size of their development programmes. 2.  The Ministers deeply regretted the lack of progress towards the establishment of the New International Economic Order. In this context, they recalled with a profound sense of disappointment that the fact that the principal industrialized countries had not yet responded to the counter proposals of the Group of 77 put forth more than 15 months ago to launch the global negotiations. They deplored the fact that, after more than four years of strenuous negotiations in which the Group of 77 had shown a continuous spirit of accommodation and flexibility, it had not been possible to launch the Global Round of Negotiations, owing to the continued lack of political will of some developed countries. In the same vein, they also deplored the lack of real progress obtained in UNCTAD VI. The Ministers also expressed their concern at the lack of agreement on immediate measures in favour of developing countries, as envisaged in General Assembly resolution 37/252 of 21 December 1982. 3.  The Ministers reiterated that the deterioration of economic conditions in the world was primarily a consequence of underlying structural maladjustments in virtually all areas of the international economic system and that unless urgently resolved, the present world economic crisis would not only worsen, but would seriously endanger global peace and stability. 4.  In order to surmount the crisis, both the immediate and structural problems of the world economy and of the existing international economic order needed to be addressed fully and in an integrated manner. Adequate responses would require the adoption of appropriate and concerted

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policies by the international community, particularly by the developed countries in view of their responsibility for the current crisis. In this context a global and integrated approach was required that reflected the interdependence of developed and developing countries and the interrelated character of problems affecting the international economic system. A strengthening of international monetary and financial co-operation directed at rapid and sustained development, particularly of developing countries, was among the essential steps to be taken for overcoming the immediate and structural problems of the international economy and in order for domestic efforts to yield positive results. 5.  The Ministers reaffirmed that the global and structural character of the current economic crisis called for global solutions and that no country or group of countries, however powerful, was in a position to pull the world economy out of its present crisis single-handedly and put it on a healthy course of recovery, growth and development. They also noted that though recent indications pointed to some alleviation of economic stagnation in certain developed countries, a sustained long-term recovery was nowhere in sight. They stressed that there could not be a sustained and lasting recovery without a restructuring of the current world economic system. 6.  The Ministers strongly affirmed the legitimacy of the intensification, adoption and application of economic sanctions and other measures in the struggle against apartheid, racism, all forms of racial discrimination and colonialism, which constituted major obstacles to the emancipation of developing countries and peoples. In this regard, they emphasized the rights of developing countries, individually and collectively, to adopt such sanctions and other measures, as was reaffirmed in the recent regional conferences on action against apartheid held at Manila in 1982 and at Caracas in 1983. 7.  The Ministers reaffirmed their strong belief that urgent more vigorous and concrete steps and actions still remained to be taken collectively and individually, by all the members of the international community in order to end, without delay, colonialism, imperialism, neo-colonialism, interference in internal affairs, apartheid, racism, all forms of racial discrimination and all forms of foreign aggression, occupation, domination, hegemony, expansionism and exploitation, which constituted major obstacles to the economic emancipation of the developing countries. They stressed again that it was the duty of all States to support effectively and extend assistance to the countries, territories and peoples still subjected to and affected by those practices, so as to restore their national sovereignty, territorial integrity and all other inalienable and fundamental rights, including the right to self-determination, in order to enable them to achieve independence and to promote development and international co-operation, peace and security. They urged all countries to refrain from participating in, encouraging or promoting, in any way, any investment or economic activities aimed at trade with or exploitation of any resources or investment in economic activities in the territories subjected to the aforementioned practices. The Ministers reiterated their unswerving support for the heroic struggle of the peoples of Namibia, South Africa, Palestine and the occupied Arab territories to achieve their liberation and to regain effective control over their natural resources and economic activities. The Ministers also declared their solidarity with the front-line States that, as a consequence of their support to the liberation movements of southern Africa, had suffered military aggressions from the racist régime. 8.  The Ministers urged all countries to make a determined effort to take joint action towards the establishment of a sound and just basis for the world economy for the benefit of all in a constructive spirit of international solidarity, understanding and mutually beneficial co-operation to ensure the survival and welfare of humanity. 9.  Keeping the above in mind, as well as the outcome of international gatherings held since their last meeting on global economic co-operation, the Ministers called for appropriate joint action

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and positive response from all in the following areas for the restructuring and reactivation of the world economy and accelerated growth and development in developing countries: (a)  The Ministers reiterated that the Global Round of Negotiations continued to be a matter of utmost importance to the developing countries and expressed their determination to pursue it vigorously through a coherent, integrated and simultaneous treatment of the issues involved. They emphasized that the Global Round of Negotiations envisaged in General Assembly resolution 34/138 of 14 December 1979 should be launched at the thirty-eighth session of the General Assembly on the basis of the two-phase approach formulated by the Seventh Summit meeting of Non-Aligned Countries held at New Delhi in March 1983, and endorsed by the Fifth Ministerial Meeting on the Group of 77 held at Buenos Aires. (b)  The Ministers reaffirmed that immediate measures in favour of the developing countries in areas of critical importance to them should be agreed upon to contribute to the easing of their present economic problems, in accordance with the Programme of Immediate Measures of the Seventh Non-Aligned Summit and the relevant decisions of the Fifth Ministerial Meeting of the Group of 77. In view of the seriousness of the problems and their urgent nature, those measures needed to be adopted without further delay in the conferences and meetings of the United Nations system. In this context, the efforts that had been undertaken at UNCTAD VI should be pursued. At its thirty-eighth session the General Assembly could play an important role in providing the necessary impetus and direction within the United Nations system. (c)  The Ministers stressed that the convening of an intergovernmental international conference on money and finance for development, with universal participation, should be vigorously pursued, as proposed by the Seventh Non-Aligned Summit and endorsed by the Fifth Ministerial Meeting of the Group of 77. The Ministers stressed that intensive preparation would be necessary in that regard. The existing international monetary and financial system was outdated and inequitable and required comprehensive reform. They recognized that the harmonization of various proposals recently put forward in that connection could contribute to the early convening of such international conference. (d)  The Ministers further stressed that the immediate measures, including an international conference on money and finance for development should be acted upon without any prior conditions and should become, as appropriate and in accordance with the relevant decision of the Seventh Non-Aligned Summit and the Buenos Aires Platform, an integral part of the Global Negotiations once they were launched. (e)  The Ministers expressed serious concern at the aggravation of the world economic crisis through an accelerated arms race that jeopardized the world economy and the development process of the developing countries. They called for halting of the arms race and effective disarmament measures that would release valuable additional resources for the purposes of development beneficial to all. They reiterated the need for the sincere commitment of the international community to the disarmament process, which has an undeniable linkage with the development of the developing countries. (f)  The Ministers expressed their deep concern that some developed countries were resorting more and more frequently to the application of coercive and restrictive measures of increasing scope as an instrument for exerting political pressure on some developing countries, and reaffirmed that all developed countries should refrain from applying trade restrictions, blockades, embargoes and other economic sanctions incompatible with the provisions of the Charter of the United Nations and in violation of undertakings contracted multilaterally, as well as bilaterally, against developing countries as a form of political coercion that affect their economic, political and social development.

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(g) The Ministers also noted the ongoing trends that erode the basis of multilateral co-operation and called for the support of the international community, particularly the developed countries, for a new multilateralism founded on the systematic co-ordination of policies involving all groups of countries on a global basis, aimed at promoting equitable growth and affecting orderly structural changes in the world economy. (h)  The Ministers called for a stronger and more vibrant United Nations system, which alone could effectively handle the complex and interrelated problems facing the international community today. Faith in the United Nations system needed to be reiterated through concrete, effective and forward-looking commitment on the part of all Member States. (i)  The Ministers expressed concern at the hardening of attitudes towards multilateral aid, which has severely disrupted the development programmes financed by international agencies in the developing countries. They called for a substantial increase in the flow of multilateral official development assistance and other multilateral finance on a continued and assured basis on terms that developing countries could afford. (j)  The Ministers reiterated the importance of the operational activities for development of the United Nations system and emphasized the need for attaching priority to that area of activity in the plans and programmes of the United Nations. They noted with concern the declining resources available for operational activities, resulting in the disruption of the development activities supported by the organizations of the United Nations system in developing countries and called for substantial and real increases in the flow of resources for operational activities and, in particular, for the United Nations Development Programme (UNDP) to maintain and increase the effectiveness of the operational programmes of the United Nations system. Therefore, the Ministers urged all Governments, especially those of developed countries, to contribute substantially to the operational activities of the United Nations system at the forthcoming Pledging Conference of the United Nations. The Ministers endorsed the Declaration of the Group of 77 on operational activities, made at Geneva on 28 July 1983. (k)  The Ministers expressed their disappointment at the slow pace of implementation of the Substantial New Programme of Action for the 1980s for the Least Developed Countries. They called upon the international community to implement fully and effectively the Substantial New Programme of Action and provide financial assistance to the least developed countries in amounts and terms corresponding to their immediate and long-term development needs. (l)  The Ministers expressed the view that international financial institutions, particularly the World Bank, the International Monetary Fund (IMF) and the regional development banks, should play a greater role in assisting the development process in the developing countries through appropriate measures. They also noted the important role those institutions could play to relieve the developing countries of their debt burden. The Ministers affirmed their determination to vigorously pursue the policy measures set out in the Buenos Aires Platform with regard to monetary and financial issues. They urged Governments of developed countries, the international financial institutions and the United Nations system to take immediate, appropriate and effective actions in this vital area in order to, inter alia, halt the present reverse transfer of financial resources and ensure a substantial increase in liquidity and reserves to the developing countries, accelerate the flows of concessional and other multilateral financial flows and restructure their debts in a manner compatible with their economic and social development. They noted with concern the recent measures adopted by the IMF that had the effect of stiffening conditionality and adversely affected ODA flows to developing countries. They also expressed particular concern at the recent decision of the Interim Committee of the IMF to reduce access to IMF quotas. (m)  The Ministers urged an early conclusion of the negotiations on replenishment of IDA VII and stressed that the replenishment should be in the order of $US 16 billion, as assessed by

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the World Bank, in order to achieve a substantial increase in financial flows to all its recipient countries particularly the least developed countries. (n)  The Ministers called for closer co-ordination between the Group of 77 and the Group of 24 to promote the interests of the developing countries in multilateral negotiations in various international fora. They noted the idea of holding a conference of Ministers of Foreign Affairs, Finance and Trade to discuss, in an integrated manner, the position of the Group in the fields of money, finance and trade in international negotiations and agreed that further consultations would be held on the matter among members. (o)  The Ministers emphasized the need for implementation of the Integrated Programme of Commodities and in this connection urged all concerned to facilitate early conclusion of the international commodity agreements. They welcomed the decision of UNCTAD VI that the operations of the Common Fund for Commodities should commence on 1 January 1984 and urged all States which have not done so to ratify the Common Fund Agreement as a matter of priority to enable the Fund to commence operations on that date. (p)  The Ministers noted the decision taken at UNCTAD VI regarding the complementary financing facility and reiterated the need for speeding up the preparatory process for a negotiating conference on a complementary facility for commodity-related shortfalls in export earnings. They also reaffirmed that the purchasing power of the developing countries export earnings must be protected and that action in this regard was vital not only for their own development but also for the recovery of the world economy. (q)  The Ministers reaffirmed that developed countries should establish specific time-bound programmes for the elimination of all protectionist measures, including subsidies, which prejudiced the trading opportunities of developing countries. Any action programmes would take into account the relevant interests of those developing countries currently enjoying special advantages and would meet the need for finding ways and means of protecting their interests. The Ministers further expressed deep concern at the disruptive market practices applied by certain developed countries against developing countries through, inter alia, a system of trade barriers and export subsidies that continued to prevent the full utilization of the production and export capacity of the developing countries in various agricultural products, particularly food. They also reiterated the need to continue and accelerate negotiations on protectionism and structural adjustment being held by the Trade and Development Board with a view to achieving the objectives in this field included in the Buenos Aires Platform. In this context, they noted the UNCTAD VI decision regarding halting and roll-back of protectionism and expressed hope that the decision would be implemented in its letter and spirit. (r) The Ministers noted the action taken by some countries to implement Trade and Development Board resolutions 165 (S-IX) of 11 March 1978 and urged the developed countries to implement fully and expeditiously the agreement therein for the conversion of all outstanding bilateral financial assistance loans into grants for the least developed countries. (s)  The Ministers expressed serious concern at the deteriorating food and agriculture situation in many developing countries, especially in Africa. They called for increased international financial and technological assistance to supplement the national efforts of those countries in the field of food and agriculture aimed at eradication of hunger and malnutrition as soon as possible and latest by the year 2000. They also called for an increase in the flow of resources for investment for the development of indigenous production and research capacities of developing countries in food and agriculture. The Ministers called for immediate establishment of a food security system, inter alia, through a system of developing-country-owned food reserves, and for an increase in the targets of the International Emergency Food Reserve and of the Food Aid Convention. They also called for appropriate steps to guarantee developing countries, particularly the least developed countries, minimum and immediate food

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supplies in times of worldwide shortages. The Ministers strongly recommended the use of food as an instrument of political pressure and cautioned against any kind of conditionality for supply of food aid. They decided that the food and agricultural issues should be kept at the centre of the global agenda. (t)  The Ministers stressed the importance of the forthcoming process of review and appraisal of the International Development Strategy for the Third United Nations Development Decade and the convening of the session of the Committee of Universal Membership for the Review and Appraisal of the Implementation of the International Development Strategy for the Third United Nations Development Decade in 1984. They expressed disappointment at the failure of the developed countries to demonstrate the political will and firm commitment necessary for the implementation of the Strategy. They considered that, in the context of the aforementioned process, the international community should endeavour to identify the real causes for the lack of compliance with the policy measures contained in the Strategy and with the goals and objectives therein and to propose necessary corrective measures in order for the instrument to contribute effectively to the development of developing countries and to the establishment of the New International Economic Order. (u)  The Ministers urged the appropriate follow-up action envisaged in General Assembly resolution 37/251 during the thirty-eighth session of the General Assembly to remove the constraints on the development of the energy resources of the developing countries through the necessary financial and technological support. (v)  The Ministers welcomed the progress that had been made in regard to the establishment of long-term institutional and financial arrangements for the United Nations Financing System for Science and Technology for Development and strongly urged all countries to make fullest effort at the thirty-eighth session of the General Assembly to ensure the successful finalization of outstanding issues, with a view to bringing the long-term arrangements into immediate and effective operation. (w) The Ministers noted that, despite more than six years of negotiations on the United Nations Code of Conduct for Transnational Corporations, some developed countries had made virtually impossible the completion of the Code of Conduct. This was particularly evident in the attitude taken by them regarding the final package prepared by the Chairman of the special session of the Commission on Transnational Corporations. The Ministers did not consider that it would be conducive to a successful conclusion of the Code to accept that package simply as a new basis for further negotiations. Any action taken in the course of the General Assembly at its thirty-eighth session, including the possible decision to resume negotiations on the Code would take those considerations into account. (x)  The Ministers reaffirmed that the brain drain had serious negative economic, political and social implications for developing countries and urged all States Members of the United Nations, particularly the developed ones, to fully participate in the efforts to formulate and implement a set of policies and measures in this regard in order to mitigate its adverse effects on the developing countries.

II 1. The Ministers reaffirmed their full support for Economic Co-operation among Developing Countries (ECDC) and reiterated their conviction that it constituted an integral and essential part of the efforts of the developing countries to restructure international economic relations with a view to realizing the full potentials of the developing countries to bring about rapid social and economic development and to establishing the New International Economic Order. They emphasized that ECDC was not a substitute for co-operation between developed and developing countries, nor in

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any way relieved the developed countries of their responsibilities and commitments in support of the development efforts of developing countries on the basis of equity and mutual interest. 2.  The Ministers reaffirmed their support for the strategy for collective self-reliance, reiterated their belief that self-reliant development was essential for ensuring genuine independence of the developing countries and also for reducing the vulnerability of the developing countries to the effects of adverse international economic crises and outside pressures. They were convinced that given the current global economic difficulties, the developing countries should pursue more vigorously than ever before the objective of strengthening their collective self-reliance. 3. The Ministers welcomed the Declaration on Economic Co-operation among Developing Countries, as well as the resolution on future activities on ECDC and organization of the Group of 77, adopted at the Fifth Ministerial Meeting in Buenos Aires, and they reiterated the commitment made to take, on a priority basis, all necessary measures through national policies and programmes to promote ECDC. 4.  The Ministers also welcomed the Declaration on Collective Self-Reliance among Non-Aligned and Other Developing Countries, adopted at the Seventh Conference of Heads of State or Government of Non-Aligned Countries. 5.  The Ministers noted with satisfaction the progress achieved at the Second Meeting of the Inter-Governmental Follow-up and Co-ordination for ECDC (IFCC-II), held at Tunis from 5 to 10 September 1983, aimed at full and effective implementation of the Caracas Programme of Action, and endorsed the ‘Tunis follow-up action for ECDC’. They expressed their thanks to the Government of Tunisia for hosting IFCC-II and welcomed with thanks the offer of the Government of Columbia to host the Third Meeting of the Inter-Governmental Follow-up and Co-ordination Committee for ECDC (IFCC-III). 6. The Ministers favourably evaluated the growing awareness of the imperative need for strengthening and broadening ECDC and the important progress that had been achieved in promotion of ECDC at bilateral, subregional, regional and interregional levels, including raising national interest and awareness in favour of economic co-operation among developing countries through all available means. 7.  Nevertheless, the Ministers recognized the obstacles that more advanced stages of economic co-operation among developing countries could encounter and therefore emphasized the importance for the developing countries to adopt further policy measures at various levels. In this context, the Ministers requested the Chairman of the Group of 77 in New York to explore and propose to the Group, within the framework of the Caracas Programme of Action, the Buenos Aires Platform and the Tunis Follow-up Action for ECDC, ways and means to carry out action-oriented activities. 8.  The Ministers reviewed the progress made in implementing the Caracas Programme of Action on ECDC and commended the significant efforts made in holding 18 technical meetings over the past two years. They expressed their appreciation to the Governments that hosted various meetings within the framework of the Caracas Programme of Action considering this a concrete and valuable contribution to the promotion of ECDC. They noted that the implementation of the Caracas Programme of Action was entering a new and more action-oriented phase directed towards generating tangible, concrete and mutually beneficial results, which called for the developing countries to impart fresh impetus to achieve full and accelerated implementation of the Caracas Programme of Action. Accordingly, the Ministers: a)  Emphasized the need for holding the remaining technical and follow-up meetings under the Caracas Programme of Action, as scheduled, and decided that all those meetings should be completed by the end of June 1984. Efforts should be made to hold appropriate sectoral review meetings during 1984 and 1985, as recommended by the Second Meeting of the

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Inter-Governmental Follow-up and Co-ordination Committee. They reiterated the need for and the importance of widest possible participation by members of the Group in those meetings and urged the members to make special efforts to send experts to those technical meetings. b)  Reiterated the importance of adopting appropriate modalities and mechanisms at the operational level, such as Action Committees, as highlighted in the IFCC-II, meetings of heads of national agencies, experts groups and other similar meetings, and national research and training centres of multinational scope, for the implementation of the Caracas Programme of Action in particular fields. They welcomed the decision to form such intergovernmental bodies and urged interested member countries and, as the case might be, their enterprises and institutions, to take concrete action in this regard. c)  Stressed the role of national focal points as pivotal mechanisms and strongly supported the action recommended by the Second Inter-Governmental Follow-up and Co-ordination Committee to strengthen their role. The Ministers noted with satisfaction that the overwhelming majority of the members of the Group had already designated national focal points and urged those members that had not done so to designate their national focal points and to make them operational as soon as possible. d) Stressed the vital role of systematic exchange of information in the promotion and strengthening of Economic Co-operation among Developing Countries and called on the members to work actively towards the establishment of the Multi-Sectoral Information Network as one of the highest priorities for further action on ECDC, in accordance with the recommendations of the Second Meeting of the Inter-Governmental Follow-up and Co-ordination Committee. e)  Noted with satisfaction that a large number of members had notified their intention to participate in the negotiations on the Global System of Trade Preferences (GSTP). They invited all developing countries that had not done so to join those negotiations urgently with a view to enabling the GSTP Negotiating Committee to take effective measures for early conclusion of the negotiations. In this context, the Ministers requested the secretariat of the United Nations Conference on Trade and Development to provide full support for the conduct of these negotiations. f)  Expressed strong support for the strengthening of financial and monetary co-operation among developing countries and urged the continuation and intensification of efforts to explore avenues for the promotion of such co-operation. In this context, they agreed that early follow-up action should be taken by the Chairman of the Group of 77 in New York for the implementation of the recommendations adopted at IFCC-II, taking into account the views expressed in that meeting, and invited interested countries to participate in this action. g)  Noted that the draft statute of the Association of State Trading Organizations had been elaborated and would come into force as soon as the required minimum number of 15 State trading organizations from developing countries had signed it. They expressed the hope that the Association would be established at the earliest possible date, preferably before the end of the current year. h)  Recognized the importance of producers’ associations as one of the means for developing countries to effectively secure fair and remunerative prices for their exports and to increase their export earnings. They stated that the adoption of firm and concerted measures by producers’ associations, the strengthening of these associations and the establishment of new ones would be an effective contribution towards that end. i)  Stressed the importance of pursuing further efforts with regard to the harmonization of ECDC programmes of the Group of 77 and the Non-Aligned Movement as a continuing exercise.

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j)  Emphasized that closer co-ordination among all chapters of the Group of 77, including the Group of 24, was vital to the efficacious implementation and follow-up of the Caracas Programme of Action and decided that the recommendations of IFCC-II to that end should be observed. k)  Considering that harmonization of the tenure of the Chairmen of various chapters of the Group of 77 could be useful, called for urgent consultations in this regard by the members of the Group and decided that serious consideration should be given to the matter at IFCC-III for submission of appropriate recommendations to the Ministers of Foreign Affairs at their next annual meeting in 1984 in New York. l)  Expressed their appreciation to the members who had contributed to the ECDC account and appealed to all members to contribute generously to this account. m)  Also appealed to Governments to try to ensure that the full complement of the Core of Assistants was provided to the Chairman of the Group of 77 in New York on a full-time basis to enable him to discharge effectively his increased responsibilities towards implementation of the Caracas Programme of Action, as recommended by IFCC-II. In this context, they expressed their appreciation for the useful work being carried out by the Core of Assistants, and reiterated their thanks to the Governments that had seconded those officials to assist the Chairman of the Group of 77 in New York, as provided for under the Caracas Programme of Action. n)  In view of the increased responsibilities for implementation of the Caracas Programme of Action, which at the current stage would often require inputs from specialists, invited Governments to provide, at their expense, the Chairman of the Group in New  York with experts to perform temporary tasks. o)  Emphasized the role of and the need for greater co-ordination among the economic groupings of the developing countries for promotion and strengthening of Economic Co-operation among Developing Countries, bearing in mind the value of their practical and operational experiences for the effective implementation of the Caracas Programme of Action. (p)  Recognizing the importance of the contribution that the organizations and research institutes of developing countries could and had been making towards the promotion of Economic Co-operation among Developing Countries, they stressed that there should be greater co-operation and co-ordination between the Group of 77 and those organizations and institutions towards the implementation of the Caracas Programme of Action. (q)  Requested the organizations and bodies of the United Nations system to take effective measures to support implementation of the recommendations of IFCC-II to further strengthen co-operation between the Group and those organizations and bodies for the promotion of ECDC and the implementation of the Caracas Programme of Action. (r) Decided to monitor closely the developments with regard to the promotion of ECDC aimed at the implementation of the Caracas Programme of Action and to carry out a further in-depth review of the matter in 1985.

III 1.  The Ministers reaffirmed the importance of the continuous strengthening of the unity and solidarity of the developing countries in their efforts towards the establishment of the New International Economic Order. 2.  The Ministers decided that the twentieth anniversary of the establishment of the Group of 77 should be commemorated by the Group on 15 June 1984.

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8.  Eighth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 26–28 September 1984 a.  Ministerial Declaration 1.  The Ministers for Foreign Affairs of the Group of 77 held their 8th annual meeting at United Nations Headquarters from 26 to 28 September 1984, in the year marking the twentieth anniversary of the establishment of the Group of 77, and issued the following declaration. 2.  The Ministers reviewed the activities and achievements of the Group of 77 over 20 years of common efforts. They stressed their satisfaction that the Group had emerged as a major factor on the international economic scene. They reaffirmed the unwavering unity of the Group, born out of the convergence of the historical interests of its members, and its determination to pursue efforts aimed at the establishment of a more just and equitable system of international economic relations based on a democratic framework. 3.  The Ministers reaffirmed the continuing validity of the principles guiding the Group of 77. They also reiterated their commitment to and the continuing relevance of the Declaration and the Programme of Action on the Establishment of a New International Economic Order (General Assembly resolutions 3201 (S-VI) and 3202 (S-VI)) and to the Charter of Economic Rights and Duties of States (Assembly resolution 3281 (XXIX)), which had been adopted 10 years earlier on the initiative of the developing countries. 4.  The Ministers reaffirmed the strong commitment of their Governments to the principles and objectives of the Charter of the United Nations, as well as their full support to the United Nations and its central role as a unique forum for negotiations and international economic co-operation. They expressed their deep concern at the rapid erosion of the principles and norms governing the United Nations system and at the increasing attempts by some major economic powers to replace concerted actions of a universal scope with bilateral and sectoral uncoordinated approaches and thus undermine multilateralism. In this regard, they also expressed their determination to resist all such attempts and to continue working towards strengthening the democratization of the decision-making procedures in the multilateral forums. 5.  The Ministers reaffirmed their commitment to uphold the principles of self-determination and independence and to resist the imposition of models or patterns of social and economic development alien to their own traditions and national aspirations. In this context, and reaffirming the principle of permanent sovereignty over their natural resources and the right of each country to choose freely its political, economic and social system, the Ministers renewed their condemnation of the recourse to political and economic coercion against developing countries and reiterated the need to adopt appropriate actions to avoid implementation of such practices. 6.  The Ministers reaffirmed their strong belief that urgent, more vigorous and concrete steps and actions remained to be taken, collectively and individually, by all the members of the international community in order to end, without delay, colonialism, imperialism, neo-colonialism, interference in internal affairs, apartheid, racism, all forms of racial discrimination and all forms of foreign aggression, occupation, domination, hegemony, expansionism and exploitation, which constituted major obstacles to the economic emancipation of the developing countries. They stressed again that it was the duty of all States to support effectively and extend assistance to the countries, territories and peoples still subjected to and affected by those practices, so as to restore their national sovereignty, territorial integrity and all other inalienable and fundamental rights, including the right to self-determination, in order to enable them to achieve independence and to promote development and international co-operation, peace and security.

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7.  Recognizing the link among disarmament, peace and development, the Ministers reaffirmed their urgent appeal to halt the arms race and to use the resources thus released for the development of the developing countries. 8.  The Ministers expressed grave concern at the critical state of the world economy. While the economic recovery in developed countries remained uneven and its durability was in no way guaranteed, most developing countries continued to experience stagnant or declining growth rates. The developing countries continued to be confronted with an adverse external environment characterized by declining commodity prices, sharp exchange-rate fluctuations, deterioration in the terms of trade, increased protectionism, very high real interest rates, crushing debt burdens, reverse transfer of financial resources, decline of official development assistance (ODA) in real terms and the resource crisis experienced by the multilateral development financing institutions. The Ministers observed that the ever-widening gap between the developed and developing countries was a result of the inequities and inequalities inherent in the existing system, and that the crisis was not merely a cyclical phenomenon but the manifestation of deep-rooted structural imbalances and disequilibrium. Therefore, they observed that sustained and balanced growth of the international economy required an equitable adjustment process. 9.  The Ministers reiterated their deep concern at the devastating repercussions that the current international economic crisis was having on the economies of the developing countries and the peoples of those areas. They emphasized the urgent need for the international community to undertake actions to overcome this crisis and to secure harmony, equity and justice in international relations and the restructuring of the world economy. 10.  The Ministers expressed their concern with the policies adopted by some developed countries and international financial institutions that affected the development prospects of developing countries, threatening to exacerbate the magnitude and scope of the present international economic crisis, with unpredictable consequences. 11.  They also deplored the continued impasse in international economic negotiations resulting from the fact that some developed countries were not living up to their commitments. They particularly regretted attempts to erode the international consensus for development that had existed and attempts, in some areas, to deny such a consensus. In this regard, they called upon developed countries for the renewal of a positive interest in development issues capable of transforming the sterile dialogues, through genuine political will, into serious negotiations to provide constructive and lasting solutions of development problems. 12.  The Ministers reaffirmed their belief in the concept of interdependence as a basis of mutually beneficial co-operation among all countries. They regretted that, while acknowledging interdependence, some developed countries continued to follow policies detrimental and damaging to developing countries. They reiterated that interdependence should lead to co-operative endeavours for the benefit of all countries and should eliminate the widening gap between the developed and developing countries. 13.  The Ministers reaffirmed their full commitment to global negotiations in accordance with General Assembly resolution 34/138 and further reaffirmed the continuing validity and relevance of the strategy adopted at the Seventh Conference of Heads of State or Government of Non-Aligned Countries, held at New Delhi (see A/38/132-S/15675 and Corr. 1 and 2), and endorsed by the Group of 77 at its Fifth Ministerial Meeting, held at Buenos Aires, and they renewed their call on developed countries to show genuine political will to enable the launching of those negotiations. The Ministers deplored the fact that, in spite of the pragmatic, constructive and flexible attitude consistently displayed by the Group of 77 and its positive efforts made during consultations on the subject of the launching of global negotiations, the achievement of this important objective had not been possible because of the lack of political will of a few developed countries. In this regard, the Ministers entrusted the Group of 77 in New York to assess the situation in order to

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determine the appropriate steps to be taken during the thirty-ninth session of the General Assembly. 14.  The Ministers expressed profound concern at the critical economic situation in Africa, which was aggravated by the combined impact of an adverse international economic situation and by persistent drought, desertification and other natural disasters. They were convinced that, if not reversed, current trends could considerably worsen the situation, thus endangering the economic and social fabric of African countries, and thereby hampering the prospects for their rehabilitation and sustained development. They expressed their solidarity with the African countries and expressed their determination to give priority to the issue at the current session of the General Assembly. They therefore urged the international community, particularly the developed countries and international financial institutions, to adopt and implement concrete and effective measures to support the effort of the African countries in dealing with the short-and long-term aspects of the crisis. 15.  The Ministers reaffirmed the need to keep food and agricultural issues at the centre of the global agenda and expressed their conviction that international action to deal with food and agricultural problems in developing countries should be considered in a comprehensive manner in their technical, economic, commercial, financial, social, cultural and political dimensions as well as in their immediate short-term and long-term perspectives. They emphasized the priority they attached to the early eradication of hunger and malnutrition and to the attainment of self-sufficiency in food production in developing countries. To this end, they strongly urged the international community, especially developed donor countries and multilateral financial institutions, to increase their assistance at an adequate level to enable the developing countries, particularly the least developed and low-income food-deficit developing countries, to achieve the agreed upon targets for the food and agricultural sectors set out in the International Development Strategy for the Third United Nations Development Decade. 16.  The Ministers stressed the need for urgent action to address the deteriorating situation of developing countries in the field of commodities. In this connection, they reiterated that further efforts should be made to bring the Common Fund for Commodities into early and effective operation and to seek the full implementation of the Integrated Programme for Commodities. 17.  The Ministers also expressed deep concern at the disruptive market practices applied by certain developed countries, incompatible with their international commitment, which continued to prevent the full utilization of the production and export capacity of the developing countries in various agricultural products, particularly food. 18.  The Ministers reiterated, within efforts aimed at restructuring the international economic system, their determination to continue pressing for the restructuring of the international trading system to ensure the economic developmental needs of the developing countries and to facilitate an increased share of developing countries in the sustained growth of international trade. To this end, they urged developed countries to implement, in favour of developing countries, existing international trade liberalization commitments as a necessary first step towards the establishment of a just and equitable multilateral trading system. The Ministers also urged developed countries to resist domestic protectionist pressures, the use of export subsidies and other disruptive practices, and to adopt urgent measures towards achieving a substantially improved market access for exports from developing countries. In this regard, they called for early implementation of the work programme on protectionism and structural adjustment agreed upon by the Trade and Development Board. They affirmed the need for stability in the Generalized System of Preferences and called upon preference-giving countries to ensure the continuity, improvement and broadening of their Generalized System of Preferences schemes and to avoid the introduction into the system of discriminatory measures, including those applied under the concept of graduation.

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19.  The Ministers regretted that the outcome of the Fourth General Conference of the United Nations Industrial Development Organization was not successful in spite of the goodwill shown by developing countries. They urged the developed countries to adopt a more positive attitude, during the thirty-ninth session of the General Assembly, in the consideration of the issue of industrialization. 20.  The Ministers expressed grave concern at the decline in the flow of resources for development financing and at the reverse transfer of capital to the developed countries. They urged the developed countries and the international financial institutions to remedy this grave situation by a massive mobilization of resources for the developing countries and by contributing to a reform of the monetary and financial system to permit the equitable and efficient operation of the world economy. 21.  The Ministers reiterated the importance of convening the International Conference on Money and Finance for Development with universal participation, proposed at the Seventh Conference of Heads of State or Government of Non-Aligned Countries and endorsed by the Group of 77 at its Fifth Ministerial Meeting, at Buenos Aires, and towards this end initiating the necessary preparatory process and urged developed countries to respond in a positive and constructive manner with a view to convening the Conference in early 1985. The Ministers stressed the need for the Secretary-General to immediately undertake consultations with Governments on the convening of the Conference. They expressed appreciation for the initiative taken by the Chairman of the Non-Aligned Movement in setting up an Expert Group to examine the substantive and procedural aspects of the proposed Conference. The Ministers took note of the report of the Expert Group. They decided to invite their Governments to examine that document. 22.  The Ministers recognized that the external debt problems of developing countries were manifestations of the malfunction of the international economic system and felt that there was an urgent need to initiate a multilateral political dialogue between developing debtor countries and developed creditor countries in order to resolve the debt problems. They stated that those countries and concerned international banks, together with the international financial institutions, were jointly responsible for finding lasting solutions that would not only provide immediate debt relief, but would also cover lower interest rates, terms and conditions of debt rescheduling, appropriate conditionality, protectionist barriers, export earnings, commodity export shortfalls and sufficient financial flows. They urged the Governments of developed countries, the concerned international banks and international financial institutions to co-operate fully with the developing countries in seeking a global and comprehensive solution to the debt problems and to ensure resumption of development so that countries were not forced into insolvency with the risks that would entail for international co-operation, peace and security. 23.  The Ministers emphasized the imperative need to implement immediate measures in favour of developing countries -as envisaged in General Assembly resolution 38/200- through concrete actions carried out within the framework of the United Nations system. 24.  The Ministers expressed grave concern at the seriously deteriorating economic situation in the least developed countries, many of which had been experiencing a negative growth rate for several years now. They underlined the imperative need for providing those countries with the necessary support, including adequate ODA, in order to revitalize and accelerate their development process. In that context, they strongly urged the international community to contribute positively to the success of the mid-term global review on the implementation of the Substantial New Programme of Action for the 1980s for the Least Developed Countries (SNPA) in 1985 with a view to achieving its full and effective implementation. They also urged that all outstanding bilateral ODA loans by developed countries to the least developed countries be converted into grants without delay.

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25.  The Ministers reiterated the full validity of the goals and objectives of the International Development Strategy for the Third United Nations Development Decade and the need to achieve them and to implement and strengthen the policy measures of the strategy. They expressed deep regret at the inconclusive outcome of the work of the Committee on the Review and Appraisal of the Implementation of the International Development Strategy for the Third United Nations Development Decade established by the General Assembly, as a consequence of the inflexible attitude assumed by some developed countries. They urged developed countries to fulfill their commitments in regard to the Strategy, including an early completion of a meaningful mid-term review and appraisal. 26.  The Ministers reiterated the high priority which they attached to the early and successful completion of the ongoing negotiations for the establishment of long-term arrangements for the United Nations Financing System for Science and Technology for Development, and urged all countries, particularly developed countries, to finalize promptly the financial arrangements to enable the launching of the System. 27.  Taking into account the crucial and important role of human resources development and technical co-operation and training in the development process of the developing countries, the Ministers took note with appreciation and decided to give early and favourable consideration to the proposal for convening a United Nations conference on human resources development to discuss all dimensions of the subject on a multi-disciplinary basis. 28.  In reviewing the recent evolution of economic co-operation among developing countries, the Ministers stressed its overriding importance as a means of achieving collective self-reliance, of affirming their economic independence and of reducing their vulnerability, thus contributing to the establishment of the new international economic order. 29.  The Ministers expressed satisfaction at the progress made in economic co-operation among developing countries. They especially noted that the technical meetings envisaged in the Caracas Programme of Action (see A/36/333, annex) had now been completed and that the developing countries were now ready to develop specific projects at the subregional, regional and interregional levels in order to put their common objectives and programmes into practice. The Ministers welcomed the outcome of the 3rd meeting of the Intergovernmental Follow-up and Co-ordination Committee recently held at Cartagena, Colombia, and endorsed its recommendations.

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9.  Ninth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 2–4 October 1985 a.  Ministerial Declaration 1.  The Ministers of Foreign Affairs of the Group of 77 held their 9th annual meeting at United Nations Headquarters, New York, from 2 to 4 October 1985, to review developments in the world economic situation since their last meeting in September 1984, to prepare for the fortieth session of the General Assembly and to review recent developments in economic co-operation among developing countries. 2. The Ministers renewed their commitment to and reiterated the continuing validity of the Declaration and the Programme of Action on the Establishment of a New International Economic Order (General Assembly resolutions 3201 (S-VI) and 3202 (S-VI) of 1 May 1974) and the Charter of Economic Rights and Duties of States (General Assembly resolution 3281 (XXIX) of 12 December 1974). They reaffirmed their determination to pursue in a united manner their efforts towards restructuring the present system of international economic relations, on a just and equitable basis. In this context, they stressed the central role of the United Nations as a unique universal forum for negotiations, which, on the occasion of the fortieth anniversary of the United Nations, should receive the required political impetus with a view to promoting solutions to international economic and social problems in the interest of the international community as a whole and the prosperity of all its constituent parts. They reiterated their commitment to the principles and objectives of the Charter of the United Nations and recalled in that context that the Charter highlighted the promotion of well being and economic progress of all nations as cornerstones of peace. They also stressed the importance of the preservation of the democratic nature of the General Assembly on the basis of the sovereign equality of States. 3. The Ministers agreed with the assessment of the world economic situation made by the Ministerial Meeting of the Non-Aligned Countries held at Luanda in September 1985, and welcomed the recommendations and initiatives adopted at that Meeting. 4.  Taking into account the increasingly interdependent character of global economic relations, the Ministers expressed their deep concern at the continuing decline in multilateralism and urged all Governments to recommit themselves to the strengthening of the multilateral framework for negotiations and international economic co-operation for development. 5.  The Ministers reaffirmed their full commitment to global negotiations in accordance with General Assembly resolution 34/138 of 14 December 1979 and further reaffirmed the continuing validity and relevance of the strategy adopted at the seventh Conference of Heads of State or Government of Non-Aligned countries, held at New Delhi (see A/38/132-S/15675 and Corr.1 and 2), and endorsed by the Group of 77 at its 5th Ministerial Meeting, held at Buenos Aires, and they renewed their call to developed countries to show genuine political will to enable the launching of global negotiations. 6.  The Ministers reaffirmed that urgent, more vigorous and concrete steps and actions should be taken individually and collectively by all the members of the international community to end without delay colonialism, imperialism, neo-colonialism, interference in internal affairs, apartheid, racism and all forms of racial discrimination, foreign aggression, occupation, domination, hegemony, expansionism and exploitation, which constituted major obstacles to the economic emancipation of the developing countries and peoples. The Ministers also reaffirmed the rights of all countries, territories and peoples subjected to or affected by those condemned practices to restitution and full compensation for the exploitation, depletion, loss

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or damages to their natural and all other resources. The Ministers reiterated their unswerving support for the heroic struggle of the peoples of Namibia, South Africa, Palestine, Lebanon and the occupied Arab territories to achieve their liberation and regain full and effective sovereignty and control over their natural and all other resources and economic activities. The Ministers further reaffirmed their solidarity with and support for front-line and other neighbouring States that suffer military aggression, terrorism and economic destabilization by the racist régime of South Africa. They stressed again that it was the duty of all States to support effectively and extend assistance to the countries, territories and peoples still subjected to and affected by those practices, so as to restore their national sovereignty, territorial integrity and all other inalienable and fundamental rights, including the right to self-determination, in order to enable them to achieve independence and to promote development and international co-operation, peace and security. 7.  The Ministers expressed their deep concern that some developed countries were resorting more and more frequently to the application of coercive measures of increasing scope as an instrument for exerting political and economic pressure on some developing countries, and reaffirmed that those developed countries should refrain from applying such measures. They decided that the Group of 77 should continue to undertake appropriate action in the General Assembly in order to eradicate those practices. 8.  The Ministers reiterated that peace, disarmament and development were closely interrelated. They expressed their grave concern at the accelerating arms race. On the occasion of the fortieth anniversary of the establishment of the United Nations, they called for a halting of the arms race and effective disarmament measures and the beginning of a new peaceful, just and equitable international development era, utilizing, inter alia, valuable additional resources thus released for the purpose of development beneficial for all. 9.  The Ministers expressed deep concern at the present state of the world economy. The uneven and fragile recovery in some developed countries had not touched the fundamental and acute problems of developing countries whose economies have continued to deteriorate, thus exposing them further to the uncertainty that characterized the global economy in general and the economies of the developing countries in particular. The limited recovery in some developed countries could not dispel that uncertainty, particularly because the resolution of structural problems facing the world economy, including the urgent need for reactivation of the economies of the developing countries, continued to be ignored. Developing countries continued to be disproportionately affected by an adverse external environment manifested, among other factors, by volatility of critical economic variables and in inconsistent macro-economic policies pursued by some major developed countries: sharp exchange-rate fluctuations, high real rates of interest, the severe fall in commodity prices, the serious deterioration in the terms of trade of developing countries, increased protectionist pressures, the reverse transfer of resources from developing countries, crushing debt burdens, the restrictive adjustment process demanded by financial and development institutions, the decline in official development assistance in real terms and severe resource inadequacy experienced by multilateral development and financial institutions. The Ministers noted that the continued existence of those unfavourable external conditions for the development of developing countries not only created insurmountable obstacles to their economic and social development, but also threatened their economic, political and social stability. 10.  The Ministers regretted the continued and growing practice by a small group of developed countries, acting outside the multilateral framework of the United Nations system, of taking decisions that were of concern to the entire world and that were vital to the future of the international monetary, financial and trading systems. In that regard, international monetary, financial and trading institutions should devise mechanisms to enforce policy co-ordination with the full participation of developing countries.

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11.  The Ministers reiterated the importance of convening an international conference on money and finance for development with universal participation, as proposed by the seventh Conference of Heads of State or Government of Non-Aligned Countries and endorsed by the Group of 77 at its 5th Ministerial Meeting at Buenos Aires. 12.  The Ministers expressed grave concern that the economic and social situation in Africa was continuing to deteriorate, further exacerbated by famine, drought and desertification, thereby endangering the lives of millions of Africans, the social fabric of their societies and their development prospects. They noted with deep concern the tremendous increase in the external debt of African countries and the heavy and unbearable burden of debt-servicing that had led to the paradoxical situation where, despite the prevailing critical economic situation of the continent, African countries found themselves net exporters of capital to the developed countries and international financial institutions. Furthermore, the Ministers noted that the deteriorating prices for primary commodities and declining flows of official development assistance to the region had adversely affected the ability of African countries to meet their development objectives as well as their other financial obligations. 13.  (a) The Ministers examined the issue of external debt of the developing countries and recognized that this problem was a direct consequence of the prevailing world economic environment reflective of the existing inequalities and unjust international economic order. They expressed their profound concern over the debt crisis and the crushing debt-servicing burden of the developing countries, which had to be viewed in a global context and in terms of their negative impact on the development of the developing countries. (b)  They emphasized that the problem of the external debt of developing countries could no longer be viewed only in its narrow technical aspects or its economic characteristics alone but had also assumed serious political and social dimensions, aggravated by the drastic impact of the imbalances in the international monetary, financial and trading system, thus requiring political treatment and a global approach involving debtor developing countries and creditor developed countries, as well as international financial and banking institutions that all have a shared responsibility in the solution of the debt problem of developing countries. (c)  They also emphasized with profound concern the adverse political, economic and social impact on developing countries resulting from the enormous and increasingly unbearable burden of servicing their growing foreign debt, exacerbated notably by the negative impact of the adjustment process, lack of access to financial markets, high real interest rates, exchange rate fluctuations, reverse flow of financial resources from developing to developed countries, stagnation and even decline in official development assistance in real terms and deteriorating terms of trade of developing countries, together with sharp falls in commodity prices as well as escalating protectionism in the developed countries. (d) They stressed that developing countries had undertaken strenuous adjustment efforts demanded by the international financial and banking institutions, inter alia, through the International Monetary Fund (IMF) conditionality that had resulted in enormously high social and economic costs, unemployment and recession, and had led to the impairment of their capacity to grow and develop. (e)  Such adjustment undertaken in an increasingly adverse economic environment was leading in several countries to a vicious circle of growing impoverishment, social damage and political instability. (f)  While recognizing the international obligations contracted by debtor countries in relation to debt, the Ministers reaffirmed, however, that under the present circumstances the financial obligations undertaken by developing countries with creditors from developed countries and multilateral financial institutions have become unbearable, moreover, unless urgent, just and

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durable solutions are found by the international community, these obligations may become, for some of them, beyond the capacities of their economies. They furthermore stated that under no circumstances would they neglect to accord top priority to the well being of their peoples, the strengthening of the social fabric, the political stability of their countries and their economic development. 14.  The Ministers noted with deep concern the continuing violation by developed countries of the rules, norms and principles of the international trading system, including the proliferation of protectionist measures and trading arrangements outside of and inconsistent with the General Agreement on Tariffs and Trade (GATT) and increasing resort by developed countries to protectionist measures as well as bilateralism and sectorization in order to restrict imports from developing countries. They also noted with concern the increasing use by developed countries of ‘anti-dumping’ measures and countervailing duty action against developing countries as well as the use of export subsidies and exorbitant use of safeguard clauses, resulting in harassment and distortion to trade. They called on the developed countries urgently to implement the commitments undertaken by them at the GATT Ministerial Meeting in 1982 and at the United Nations Conference on Trade and Development (UNCTAD) at its sixth session, which were of particular relevance to the development and trade needs of the developing countries. They further reaffirmed that the principle of special and differential treatment for developing countries enshrined in the Tokyo Declaration of September 1973 should continue to be upheld. They called upon preference-giving countries to ensure the continuity, improvement and broadening of their General System of Preferences Schemes and to avoid the introduction into the system of any discriminatory measures, including those applied under the so-called concept of graduation. They also called for strict adherence to the accepted rules, norms and principles of the multilateral trading system and in that regard emphasized the need for returning trade in textiles to the GATT régime. 15.  The Ministers expressed their deep concern at the present state of world trade in commodities, which was characterized basically by market instability, excessive and continuing deterioration in prices, and the virtual non-participation of developing countries in the processing, distribution and marketing of these products. They also expressed serious concern at recent attempts to question the validity and relevance of commodity agreements with economic clauses. 16.  The Ministers expressed grave concern at the deteriorating socio-economic situation of the least developed countries. They noted that, because of structural constraints, those countries were the least endowed to withstand external shocks. Consequently, the effects of the global economic crisis on these countries have been particularly severe. The socio- economic performance of the least developed countries on aggregate lagged far behind that of the rest of the world. The cumulative burden of adverse climatic conditions, natural disasters and the continued deterioration in the relative prices of their exportable commodities, together with a reduced net overall flow of resources in real terms, made their recovery efforts infinitely more difficult. Their debt-servicing obligations currently constituted a major hindrance to the development process and those obligations were growing. The severity of the socio-economic situation of the least developed countries demanded a comprehensive response from the international community directed towards both short-term recovery and long-term development. 17.  The Ministers reaffirmed the need to keep food and agricultural issues at the center of the global agenda, and expressed their conviction that international action to deal with food and agricultural problems in developing countries should be considered in a comprehensive manner in its technical, economic, commercial, financial, social, cultural and political dimensions, as well as in its immediate short-term and long-term perspectives. They emphasized that realization of the commitment of the international community to the early eradication of hunger and malnutrition by the year 2000 at the latest had priority importance for the developing countries. In this

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context, they called for sustained and effective international support for the attainment of self-sufficiency in food production and development of agriculture in developing countries. To this end, they strongly urged the international community, especially developed donor countries and multilateral financial institutions, to increase their assistance up to the level needed to enable the developing countries, particularly the least developed and low-income food-deficit developing countries, to achieve the agreed targets for the food and agricultural sectors set out in the International Development Strategy for the Third United Nations Development Decade. They strongly appealed for a conclusion of negotiations on the replenishment of the International Fund for Agricultural Development (IFAD) at adequate levels and without any further delay. The Ministers also expressed deep concern at the restrictive market practices applied by certain developed countries, which continued to prevent the full utilization of the production and export capacity of the developing countries with regard to various agricultural products, particularly food. 18.  The Ministers welcomed the recent conversion of the United Nations Industrial Development Organization (UNIDO) into a specialized agency of the United Nations system. They emphasized the importance of the role to be played by UNIDO as a specialized agency in the industrial development of the developing countries. They expressed the hope that the transition period will be concluded, as envisaged, by the end of 1985.

II 19.  Taking into account the global and increasingly interdependent character of international economic and development problems, the Ministers stressed that negotiations on the interrelated questions of money, finance, debt, transfer of resources, trade and development, including the special problems of the least developed countries, should be addressed urgently and that concrete, effective and forward-looking measures should be taken without delay. 20.  The Ministers entrusted the Group of 77 in New York with making an early assessment of further efforts necessary to reactivate the negotiations to implement the two-phase approach, as adopted at the seventh Summit of the Non-Aligned Countries in New Delhi and endorsed by the 5th Ministerial Meeting of the Group of 77 in Buenos Aires with a view to achieving the launching of global negotiations. 21.  While noting that African Governments and peoples themselves recognized that their development was primarily their own responsibility, the Ministers stressed the need for the international community to support fully the individual and collective efforts undertaken by African Governments for short-, medium- and long-term development of the continent. In this regard, they welcomed the encouraging response of the international community to the emergency aspects of the crisis in Africa. Further, the Ministers urged that effective measures be taken by the international community to address the structural causes of the current critical economic situation in Africa and to prevent its recurrence by assisting in the implementation of the priority five-year Programme of Action for Africa’s Economic Development, adopted at the twenty-first session of the Assembly of Heads of State and Government of the Organization of African Unity (OAU) at Addis Ababa in July 1985, and by fully implementing the Declaration on the Critical Economic Situation in Africa, annexed to General Assembly resolution 39/29 of 3 December 1984. In this context, the Ministers endorsed the appeal made by the Assembly of Heads of State and Government of OAU at its twenty-first session to convene a special session of the General Assembly to deal with the critical economic situation in Africa. 22.  The Ministers reiterated the continuing validity and importance of the goals and objectives of the International Development Strategy for the Third United Nations Development Decade and the need to implement policy measures for their attainment. They noted the outcome of the

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Committee on Review and Appraisal of the Implementation of the International Development Strategy for the Third United Nations Development Decade in which the Group of 77 had invested considerable efforts. They expressed the hope that the spirit of co-operation that marked the outcome of the Committee would lead to the adoption of urgent and concrete steps by the developed countries in the implementation of the policy measures. 23.  The Ministers reaffirmed that the effective multilateral economic co-operation will be necessary in order to address, in an integrated approach, the interrelated areas of money, finance, debt, trade and development. 24.  The Ministers called for initiation during the fortieth session of the preparatory process necessary for the convening of the international conference on money and finance for development, and called on the Group of 77 in New York to take the necessary steps, utilizing, in that regard, all studies and proposals that may assist in the undertaking of such a preparatory process. 25. The Ministers urged the Governments of creditor developed countries and international financial and banking institutions, in a spirit of shared responsibility, to engage with debtor developing countries in a political dialogue to jointly find mutually agreed, equitable and durable solution to the debt problem of developing countries. Such a solution should address, inter alia, the following: (a)  Co-responsibility among the Governments of creditor developed countries and debtor developing countries, as well as international financial and banking institutions; (b)  Equity and equality among developed and developing countries in the distribution of the costs of the economic adjustments process, reinitiation of financing for development and lower interest rates, significantly improved access to markets, standstill and roll-back of protectionism, stabilization of commodity markets and fair and remunerative prices; (c)  Limiting debt-servicing payments to a percentage of export earnings compatible with the development needs and the economic and social requirements of each country; (d)  Stretching out of payment, grace and consolidation periods; (e)  Easing of the conditionality applied, inter alia, by IMF; (f)  In particular, special treatment to the poorer and least developed countries in the solution of their serious external debt problems. In addition, the Ministers noted that progress in the implementation of Trade and Development Board resolution 165 (S-IX) of 11 March 1978 had been inadequate and called for its full and urgent implementation. The Ministers also supported the decision of the 21st OAU Summit calling for an urgent international conference on the external indebtedness of African countries to provide an overall and lasting solution to this problem. The Ministers stressed the interlinkages that exist between the issues of money, finance, debt and trade and considered that debt crisis of developing countries is one of the main issues before the General Assembly at its fortieth session and, consequently, special emphasis should be given to this problem with a view to taking appropriate and concrete action. 26. The Ministers recommended that, in international trade issues, consultations and co-ordination should be held among developing countries in order to keep them within the scope of an appropriate comprehensive strategy dealing with the interrelated international economic issues. 27.  The Ministers stressed the need for urgent action to address the deteriorating situation of developing countries in the field of commodities. They reaffirmed the priority of the early entry into effective operation of the Common Fund for Commodities and deplored the fact that some developed countries have impaired the viability of the Fund through their non-participation. The

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Ministers urged all countries, particularly developed countries that have not yet done so, to become parties to the Common Fund Agreement, thus contributing to the full implementation of the Integrated Programme for Commodities. 28.  The Ministers noted with deep concern that implementation of the Substantial New Programme of Action for the 1980s for the Least Developed Countries, adopted in 1981, has been painfully slow. Aid to the least developed countries, far from rising towards the agreed target of 0.15 per cent of donors’ gross national product, had been stagnating at 0.08 per cent. The Ministers reaffirmed the full validity of the Programme of Action to enable the least developed countries to overcome structural difficulties and to achieve sustained and self-reliant development and, accordingly, stressed the imperative need for full and timely realization of the goals and objectives of the Programme of Action. In that context, they stressed the special importance of the meeting for the mid-term global review of the implementation of the Programme of Action held at Geneva from 30 September to 11 October 1985, and emphasized the particular need for adopting an action-oriented and comprehensive set of measures directed towards the full and effective implementation of the Programme of Action. They reaffirmed their full support for the success of the global review and urged all Governments to participate in the exercise with that objective in mind. 29.  The Ministers noted with concern that very few significant initiatives had so far been taken for the implementation of specific actions in favour of island developing countries in accordance with the relevant resolutions of the General Assembly and UNCTAD. The Ministers welcomed the decision of the General Assembly contained in resolution 39/212 of 18 December 1984 requesting the Secretary-General of the United Nations, in co-operation with the organs, organizations and bodies of the United Nations system, to explore the possibility of organizing a follow-up meeting of an interregional nature with the participation of representatives of island developing countries and other interested countries. The Ministers expressed their support for the holding of that meeting and proposed that it take place preferably in 1986. They urged all island developing country States members of the Group of 77 to work towards making the meeting a success. 30.  The Ministers noted with great concern that deterioration in the economic social and financial position of the land-locked developing countries, and recommended that the concrete measures contained in the relevant resolutions adopted by the United Nations system should be strictly adhered to, with a view to overcoming the difficult problems and structural constraints that hamper the development efforts to those countries. 31.  The Ministers noted with concern that so far efforts had not been successful in bringing into effect the long-term arrangements for the United Nations Financing System for Science and Technology for Development. They reiterated the high priority they attached to the establishment of a financing system as envisaged by the General Assembly in resolution 37/244 of 21 December 1982. They also expressed their readiness to consider all relevant proposals that would enable the implementation of a sound and viable financing system for science and technology for development. To that end, they urged all countries, particularly developed countries, to exert greater effort towards the early launching of the system. 32. The Ministers expressed their deep concern that prolonged negotiations on the United Nations code of conduct on transnational corporations had so far not resulted in the completion of the formulation of the code. They urged developed countries that had not yet done so to demonstrate political will during the reconvened special session of the Commission on Transnational Corporations in January 1986, taking into account the flexibility and political will demonstrated by the Group of 77 so far, to enable the successful completion and adoption of a meaningful code. 33.  The Ministers took note of the report of the World Conference to Review and Appraise the Achievements of the United Nations Decade for Women: Equality, Development and Peace held

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at Nairobi in July 1985, welcomed the adoption of the forward-looking strategies and called for their effective implementation. 34.  The Ministers expressed grave concern at the sharp reduction in disbursement and programme delivery by the multilateral financial institutions and the organs, organizations and bodies of the United Nations system engaged in operational activities for development. That adverse situation, coming in the wake of the reverse transfer of resources from developing to developed countries and a reduction of official development assistance in real terms, seriously impaired the development efforts of developing countries. In that context, they noted with particular disappointment the consequences for the poorest developing countries of the replenishment of the International Development Association at a reduced level and reduced contributions to regional development banks. They also expressed deep concern at the growing tendency of some developed countries to make conditional their voluntary contribution to United Nations operational activities for development. 35. The Ministers expressed their concern and dissatisfaction at the trend in the setting of assessed contributions to the United Nations system, by which developing countries, taken as a group, were being called upon to pay a greater share of the costs, despite their serious economic difficulties and reduced capacity to pay. 36.  The Ministers reaffirmed the importance of paying adequate attention to development in the social sectors as an integral part of economic development. They expressed concern at the devastating impact that the global economic crisis and the adjustment policies were having on the health, education, population, and housing sectors as well as on the welfare and the nutrition situations in many areas of the developing world, particularly among children, the poor and other vulnerable groups. They accordingly underscored the necessity of adopting specific measures supportive of the efforts being made at the national level in the social sectors, particularly those aimed at the poor and other vulnerable groups.

III 37.  The Ministers reaffirmed their full political support for economic co-operation among developing countries and reiterated their conviction that it constituted an integral and essential part of the efforts of the developing countries to restructure international economic relations with a view to realizing the full potential of the developing countries to bring about rapid social and economic development and to establishing the new international economic order. They emphasized that economic co-operation among developing countries was neither a pre-condition nor a substitute for co-operation between developed and developing countries, nor did it in any way relieve the developed countries of their responsibilities and commitments in support of the development efforts of developing countries on the basis of equality and mutual interest. 38.  The Ministers reaffirmed their belief in the strategy for collective self-reliance. They reiterated their conviction that as both a dynamic factor for developing the distinctive potential of the developing countries and as a means of enhancing their negotiating power vis-à-vis the developed countries, self-reliant development was essential for reducing the vulnerability of the developing countries to the effects of adverse international economic environment. They were convinced that given the current global economic difficulties, the developing countries should pursue more vigorously than ever before the objective of strengthening their collective self-reliance and reiterated their determination to make greater efforts, through action-oriented measures that would regenerate the momentum for the implementation of the Caracas Programme of Action with a full sense of solidarity and realism. 39.  While noting with satisfaction that, over the years, economic co-operation among developing countries had improved and acquired considerable momentum, the Ministers acknowledge the

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need for further concrete action in the area of economic co-operation among developing countries at the bilateral, subregional, regional and interregional levels. 40. The Ministers took note with satisfaction of the outcome of the fourth Meeting of the Intergovernmental Follow-up and Co-ordination Committee, held at Jakarta from 19 to 23 August 1985, and endorsed its recommendations, taking into consideration the views expressed or communicated regarding specific projects. 41.  The Ministers noted with interest the comprehensive discussion on the evaluation of the state of the implementation of the Caracas Programme of Action, the frank and realistic approach followed in the assessment, and the constructive suggestions made at the fourth Meeting of the Intergovernmental Follow-up and Co-ordination Committee to enhance further the implementation process. 42.  The Ministers, recognizing the need to achieve the necessary concrete results in the context of the original aims of the Caracas Programme of Action, emphasized the necessity, in implementing the Programme, of focusing in the immediate future on an indicative list of projects on the basis of the work already carried out. In this regard, importance should be attached to the implementation of already-approved projects, such as the multisectoral information network pilot project. 43.  Within the context of the collective fundamental objectives of the Caracas Programme of Action and in order to expedite its implementation, the Ministers also attached importance to member States’ initiating more specific projects for the promotion of economic co-operation among developing countries. 44.  The Ministers stressed the importance of strengthening the supporting mechanisms as they were instrumental to the implementation of the Caracas Programme of Action. 45.  In order to enhance the implementation of the Caracas Programme of Action and translate economic co-operation among developing countries into a more concrete form, the Ministers decided to convert the next meeting of the Intergovernmental Committee into a high-level meeting to evaluate the present situation of the implementation process and decide on the future course of action. They stressed that the high-level meeting should be very well prepared for, and that it should be of both a political and a technical nature to ensure the adoption of concrete decisions. 46.  The Ministers stressed the importance of the early completion of the formulation of the guidelines and modalities for the operation of the much needed financial resources of the trust fund for the economic co-operation among developing countries. To that end, the task should be concluded as soon as possible in the first half of 1986. 47.  Taking into account the important role of technical co-operation and training in the development process of the developing countries, the Ministers reiterated the vital role of technical co-operation among developing countries as an instrument for the promotion and implementation of economic co-operation among developing countries. 48.  The Ministers reiterated the importance of the Global System of Trade Preferences for the expansion of trade among developing countries in keeping with the Declaration adopted by them in 1982. They welcomed the decisions taken by the Ministerial Meeting of the Developing Countries on the Global System of Trade Preferences held at New Delhi in July 1985, which had provided significant political impetus to negotiations for the establishment of the System and had resulted in concrete progress on such specific issues as the fixing of a framework to enable the launching of the first round of negotiations in May 1986 and its conclusion not later than 1 May 1987. 49.  The Ministers stressed the importance of the intergovernmental and regional groupings, training centres of multinational scope and research institutes for economic and technical

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co-operation among developing countries, and stressed the need for the enhancement of cooperation between the Office of the Chairman of the Group of 77 in New York and these organizations and institutions. 50.  The Ministers stressed the importance of the role of organizations and bodies of the United Nations system, in the promotion of economic and technical co-operation among developing countries and reiterated the need for further incorporation of programmes for economic and technical co-operation among developing countries in their mainstream activities, including medium-term plans, and endorsed the recommendations of the fourth Meeting of the Intergovernmental Committee in this regard.

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10.  Tenth Annual Meeting of Ministers of Foreign Affairs of the Member States of the Group of 77, New York, 29 September–1 October 1986 a.  Ministerial Declaration 1.  The Ministers for Foreign Affairs of the Group of 77 held their 10th annual meeting at United Nations Headquarters from 29 September to 1 October 1986. 2.  The Ministers welcomed the important initiatives and recommendations adopted at the eighth Conference of Heads of States or Government of Non-Aligned Countries, held at Harare from 1 to 7 September 1986, with a view to resolving the major problems besetting the world economy, and particularly the developing countries. 3.  The Ministers were convinced that the activities of the Group of 77 would greatly benefit from those decisions and guidelines and decided to pursue those relevant to its work at the forty-first session of the United Nations General Assembly. 4.  The Ministers expressed grave concern at the deepening of the world economic crisis and its devastating consequences for the economies of developing countries. 5.  They regretted that the absence of political will on the part of some developed countries had prevented the United Nations from dealing effectively with the urgent world economic problems and issues confronting the international community, and developing countries in particular. The development problems was sought to be relegated to the background, to the detriment of the interests of the developing countries and to the neglect of their most pressing concerns. There was an increasing tendency on the part of a small group of developed countries to take decisions that are of concern to the entire world economy without taking due consideration of the interests of developing countries and also outside of the multilateral framework of the United Nations system and from the perspective of their national policies. In this context, they called for the full and effective participation of the developing countries in the international process of decision-making in the resolution of the world economic problems. They also called upon developed countries to undertake urgent steps and measures to ensure that their macro-economic policies are compatible with the goals and objectives of the development of developing countries. 6.  The Ministers reiterated the importance of the United Nations as the central forum for dialogue and negotiations on issues relating to international co-operation for development and called upon all States to respect the democratic principles as embodies in the Charter of the United Nations. The Ministers therefore called upon developed countries to enter into serious and meaningful negotiations with the developing countries, within the framework of the United Nations, in order to overcome the present economic crisis and to achieve the goals and objectives of the international consensus for development through, inter alia, the implementation of the Declaration and the Programme of Action on the Establishment of a New International Economic Order, General Assembly resolution 34/138 on global negotiations relating to international economic co-operation for development and the International Development Strategy for the Third United Nations Development Decade, and in order to ensure full compliance with the provisions of the Charter of Economic Rights and Duties of States. 7.  The Ministers expressed deep concern at the financial crisis of the United Nations, which had placed in jeopardy the ability of the Organization to carry out its mandated programmes and undermined the very essence of multilateralism. They called upon all States to fulfill their obligations flowing from the Charter. They noted the efforts made to overcome the crisis. They also noted that the Group of High-Level Intergovernmental Experts to Review the Efficiency of the Administrative and Financial Functioning of the United Nations had concluded its work and

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submitted its report. They urged all members of the United Nations to work constructively during the forty-first session of the General Assembly to achieve the common goal of improving the overall administrative and financial efficiency of the Organization. 8.  The Foreign Ministers were of the view that the persistence of the world economic crisis underlined the urgency of pursuing efforts aimed at the restructuring of international economic relations in order to achieve sustainable world economic growth and development, especially in the developing countries. In this regard, the Ministers reiterated the necessity that every effort should be made in order to rapidly establish the new international economic order. They stressed that the increasing interdependent character of the world economy and the interrelationship of problems urgently require the exploration of various options for reaching agreement at the political level between developed and developing countries in order to promote co-operative action, thus contributing to a balance and equitable world economic growth and development. 9.  Taking into account the gravity of the prevailing situation, urgent action is required on the problems currently confronting the international economy, including the reform of the international monetary, financial and trading systems in the interests of both developed and developing countries. An integrated approach would be necessary in the interrelated area of money, finance, external debt, resource flows, trade and development. The Ministers stressed the need for the immediate initiation of the preparatory process for the convening of the International Conference on Money and Finance for Development and called upon developed countries to be forthcoming in their responses towards this proposal. 10.  The Ministers expressed deep concern at the deteriorating debt situation of developing countries, which has become one of the most critical problems of the international economy. They welcomed the inscription of the item ‘External debt crisis and development’ on the agenda of the forty-first session of the General Assembly and expressed their confidence that a substantive and in depth discussion of this issue would facilitate concerted action involving debtor developing countries and creditor developed countries as well as financial and banking institutions that would contribute to the achievement of a global political solution to the external debt crisis of developing countries, which would also avoid its aggravation and prevent future recurrence and spread, and would promote growth and development. 11.  The Ministers expressed grave concern over the alarming levels reached in the net transfer of resources from developing countries to developed countries and stressed the urgent need to reverse this trend. They emphasized that the need to promote sustained growth and development in developing countries in order to overcome the fundamental problems of poverty, unemployment and indebtedness would require active steps towards increasing capital flows of development finance, with a view to at least doubling present levels of the financial flows by the end of the decade and reversing the deflationary process which has resulted in the contraction of the world economy. 12.  The agreement on the new round of multilateral trade negotiations recently reached at Punta del Este by the Contracting Parties to the General Agreement on Tariffs and Trade and the agreement on the immediate implementation of the commitments on stand-still and roll-back of protectionist measures should be reinforced by parallel developments conducive to the restructuring of the international monetary and financial system in order to provide stable and supportive monetary conditions and to promote the sustained growth and development of the world economy, particularly of developing countries. 13.  The Ministers reaffirmed the important role of the United Nations Conference on Trade and Development in international economic co-operation in trade and development and stressed that the Conference at its seventh session should address key international economic issues of money, finance, development, commodities, international trade, external debt, including their interrelationship, and achieve concrete progress through action-oriented measures in these and other

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areas of its mandate. They urge all countries to promptly agree on the agenda, date and venue of the Conference so that it takes place during 1987. 14.  The Ministers emphasized that the continued severity of the socio-economic situation of the least developed countries demanded intensified efforts from the international community directed towards both short-term recovery and long-term development. They appealed to the international community and relevant multilateral organizations to take effective and time-bound measures for implementation of the Substantial New Programme of Action for the 1980s for the Least Developed Countries, including the conclusions and recommendations agreed at the mid-term global review meeting. 15.  The Foreign Ministers noted with satisfaction that during the special session of the General Assembly on the critical economic situation in Africa, the international community recognized the need to provide the additional external resources necessary for Africa’s economic recovery. In this context, they appealed to the international community and regional and interregional financial and monetary institutions to urgently mobilize the necessary funds and take appropriate measures for the total and effective implementation of the United Nations Programme of Action for African Economic Recovery and Development 1986–1990. The Ministers supported the call contained in the decision of the twenty-second Conference of Heads of State and Government of the Organization of African Unity for the holding of an international conference on Africa’s external debt. 16.  The Ministers reiterated their continued and unswerving support for the struggle against apartheid and expressed their solidarity with its victims and with those neighbouring countries suffering from aggression and economic destabilization by the racist régime of Pretoria. They once again urged the international community to impose comprehensive and mandatory economic sanctions against the racist régime of Pretoria, in accordance with Chapter VII of the Charter of the United Nations. In this connection, the Ministers welcomed the establishment by the eighth conference of Heads of State or Government of non-aligned Countries of the ‘Action for resisting invasion, colonialism and apartheid Fund’, and urged the international community to support and generously contribute to the Fund. The Ministers reaffirmed that urgent, more vigorous and concrete steps and actions should be taken individually and collectively by all the members of the international community to end without delay colonialism, occupation, domination and exploitation, which constituted major obstacles to the economic emancipation of the developing countries and peoples. The Ministers also reaffirmed the rights of all countries, territories and peoples subjected to or affected by those condemned practices to restitution and full compensation for the exploitation, depletion, loss of damages to their natural and all other resources. They reiterated their unswerving support for the heroic struggle of the peoples of Namibia, South Africa, Palestine, Lebanon and the occupied Arab territories to achieve their liberation and regain full and effective sovereignty and control over their natural and all other resources and economic activities. The Ministers further called upon the international community to adopt urgent and effective measures in order to eliminate the use of coercive measures against developing countries, which have been on the rise and have taken new forms. 17. The Ministers reaffirmed the pivotal role of collective self-reliance. Its achievement has gained greater urgency in the context of the unfavourable international economic environment. They expressed their full support to the conclusions and recommendations of the High-level Meeting of the Group of 77 on Economic Co-operation Among developing Countries, held at Cairo, Egypt from 18 to 23 August 1986, as embodied in the Cairo Declaration and the final report, which emphasized that perceived economic benefits must become the basis of economic co-operation among developing countries so that it can become self-sustaining, self-generating and self-financing. The Ministers expressed their satisfaction at the results of the Ministerial Meeting of the Negotiating Committee on the Global System of Trade

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Preferences, held at Brasilia on 22 and 23 May 1986, and reaffirmed their conviction that the conclusion of the negotiations on the global system of trade preferences within the agreed time-frame will offer a significant opportunity to enhance trade among developing countries. The Ministers also emphasized the need for integrating economic cooperation among developing countries in national policy-making. They stressed that economic co-operation among developing countries is both an integral part of, as well as a vehicle for, the establishment of a new international economic order. In this regard, they affirmed their determination to urgently and energetically work to this end.

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11.  Eleventh Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 28–30 September and 1 October 1987 a.  Ministerial Declaration 1.  The Ministers for Foreign Affairs of the Group of 77 held their eleventh Annual Meeting at United Nations Headquarters in New York from September 28 to 30, and on 1 October 1987. 2.  The Ministers expressed their deep concern over the worsening of the world economic situation, and its devastating effects on the economies of developing countries, which continue to face a grave crisis. In many developing countries the development process has been severely retarded. There is a widespread debt crisis, primary commodity prices have fallen to unprecedented levels. Real interest rates are extraordinarily high, exchange rates volatile. The flow of financial resources, including official development assistance (ODA), has been much reduced and in fact developing countries suffer substantial net outflows. Investment in infrastructure machinery and human resources has been drastically cut. Societies and political systems are under acute strain. The least developed countries, island and land-locked developing countries are the most seriously affected because of their structural vulnerability. 3.  The Ministers expressed their concern that the major market-economy countries pursue unilateral policies that widen the gap between North and South. Instead of implementing realistic policies to enhance global economic co-operation, the industrial countries are abdicating their responsibilities behind dogmatic assertions of faith in market forces and unrealistic assessments of the countries’ ability to cope with the adverse external economic environment. They stressed the need for developing and developed countries to engage in serious and comprehensive negotiations aimed at an improvement in the economic situation of developing countries that will largely benefit the economy of the entire world. They also called upon developed countries to undertake urgent steps and measures to ensure that their macroeconomic policies are compatible with the goals and objectives of the development of developing countries. 4.  The Ministers, while reaffirming the continuity validity of the goals and objectives of the International Development Strategy for the Third United Nations Development Decade and its mid-term review process, and emphasizing that the strategy continued to be a key element for the realization of the objectives of the new international economic order, expressed disappointment that the goals and objectives of the strategy remain largely unfulfilled. They called for the requisite political will and greater commitment on the part of developed countries to implement the policy measures in the Strategy. They also called for the initiation of the preparatory process for the elaboration and adoption of an International Development Strategy for the Fourth United Nations Development Decade. Such a process should consist inter alia, of, a review and appraisal of the Third United Nations Development Decade. They invited the United Nations system to be fully involved in the preparatory process. 5.  The Ministers stressed that the firm determination of the developing countries to pursue the dialogue has contributed substantially to the results of the seventh session of the United Nations Conference on Trade and Development (UNCTAD) in the areas of debt problems, resources for development and related monetary questions, commodities, international trade and problems of the least developed countries. They expressed the hope that this constructive result, though limited in view of the gravity of the problems confronting developing countries, can contribute, if matched with the necessary political will of the developed countries, to the advancement of multilateral co-operation towards the promotion of growth and development. The Ministers

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reaffirmed their full commitment to the mandate of UNCTAD as based on General Assembly resolution 1995 (XIX). 6.  The Ministers expressed deep concern about the negative impact of new forms of conditionality imposed on developing countries by developed countries and Bretton Woods institutions as well as on the international economic relations. They stressed that the most serious development in the trade policy area in recent years has been the tendency on the part of some developed countries to seek linkages between trading goods and other matters such as developing countries’ policies with regard to foreign direct investment, protection of intellectual property, services and fair labour standards. Trade, which is a means of self-reliant development, is in danger of becoming an instrument in the hands of certain developed countries for imposing unacceptable linkages on developing countries dependent on trade. They stressed that observance of multilaterally agreed commitments with respect to trade in goods should not be made conditional on receiving concessions in those areas. 7.  The Ministers considered that the International Monetary Fund (IMF) and the World Bank should review their policies and practices so they actively contribute to a new financial and monetary system, more equitable, democratic and supportive of development efforts of developing countries. The conditionality criteria of international financial institutions should take into account, among other things, adverse changes in the external environment that affect the prospects for achieving necessary adjustment with adequate rates of growth and for protecting the poor segments of the population, as well as the necessary resources for development and the periods required for adjustment with growth. The Ministers stressed the need for an integrated approach in the interrelated areas of money, finance, external debt and resource flow, and in this connection they urged the convening of an international conference on money and finance for development with universal participation. 8.  The Ministers stressed that developing countries had undertaken strenuous adjustment efforts demanded by the international financial and banking institutions, inter alia, through IMF conditionality, that had resulted in enormously high social, political and economic costs, unemployment and recession, and had led to the impairment of their capacity to grow and develop. They emphasized that growth-oriented adjustment programmes should be targeted to mitigate social costs as well as deterioration in capital structure. They called for an increased co-operation between IMF, the World Bank and other multilateral financial institutions in such a way that it does not lead to cross-conditionality. 9.  The macroeconomic policies pursued by some developed countries on matters that are of concern to the entire world and vital to the future of the international monetary, financial and trading systems run contrary to the economic and social development objectives of developing countries. They emphasized the need to apply effective multilateral surveillance in order to ensure an equitable and symmetrical international adjustment, as well as the co-ordination of the major countries’ macroeconomic policies, thus favouring growth and the development of the developing countries. 10.  The Ministers noted that, instead of a meaningful and comprehensive policy initiative to enhance global economic co-operation, there has emerged a new tendency in some developed countries to play down the influence of the external economic environment on the development process and to insist on the primacy of domestic policy reform based on the efficacy of the spontaneous market forces alone. Such an approach, not even applied by its major proponents, is inadequate to address development problems, carried the seeds of social and political instability and ignores the complexity of the contemporary world economy. Such an approach also enables the transnational corporations to move freely goods, raw materials, services, data and capital across national frontiers, at their discretion. The Ministers called upon the international community to join its forces and engage in dialogue to work out the characteristics and mechanisms

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of a comprehensive international economic system, based on the principles of equity, justice, harmony and universality and on the sovereign rights of States, in order to attain the new international economic order and giving full recognition to the interdependence between money, finance, trade and development and keeping in mind its central objectives of development, growth, employment, and social progress. 11.  The Ministers expressed deep concern at the deteriorating debt situation of developing countries, which has become one of the most critical problems of the international economy, increasing instability in world financial markets and distorting resource and trade flows. It has also become a major impediment for the sustained growth and development of developing countries, negatively affecting the ability of debtor developing countries to invest, import and achieve their economic and social development goals. Least developed and poorer countries are even more critically affected because of their particularly fragile and vulnerable economic basis. While reiterating the aspiration of debtor developing countries to meet their commitments related to external indebtedness, the Ministers reaffirmed that the external debt of developing countries cannot be serviced or repaid under present international conditions and without sustained economic development, and without further damage to the development process of developing countries. 12.  The Ministers stressed that the approach of the developed creditor countries to the debt problems continued to be inequitable, asymmetrical and partial and has so far failed to provide a meaningful strategy commensurate with the scale and nature of the debt crisis, thus leading to the adoption of unilateral measures by an increasing number of developing debtor countries in order to stem further deterioration of their economic, social and political fabric. Therefore, they also stressed the need for the international community urgently to adopt a new political strategy based on shared responsibility to bring about a durable, development-oriented and global solution to the external debt problem of developing countries, taking into account the guidelines contained in resolution 41/202 and the results of the seventh session of UNCTAD. The Ministers urged the General Assembly at its forty-second session to explore and define suitable mechanisms and/or options aimed at devising policy approaches and measures conducive to a prompt, viable and durable solution to the external debt problem of developing countries. 13.  The Ministers stressed that in order to achieve a permanent solution to the crisis of external indebtedness of developing countries with creditor developed countries, commercial banks and multilateral financial institutions, it is imperative, inter alia, to: a)  Reduce substantially the debt overhang and services by, inter alia, reducing interest rates, converting debt into grants, rescheduling terms and conditions that do not lead to an increase in the debt burden, and benefiting from discounts in the secondary markets; b)  Undertake recycling of huge surpluses present in developed countries, increase public and private resource flows to developing countries on a multi-annual and predictable basis, including ODA, as well as resources from international financial institutions, and halt and reverse the net transfer of resources to developed countries; c)  Ensure the increased access of developing countries’ exports to international markets by the removal of the protectionist barriers in the developed countries as well as achieving just and remunerative prices for the exports of developing countries, and a transparent and direct link between external debt and export earnings; d)  Achieve a just and direct link between the payment of external debt and relevant factors of debt-servicing capacity, such as exports earnings, terms of trade, import requirements, GDP growth. 14.  The Ministers stressed that in the absence of a jointly developed debt strategy and even the necessary will on the part of the creditor developed countries, multilateral financial institutions

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and commercial banks to put one together, debtor developing countries may be increasingly forced to suspend the servicing of their debt temporarily in order to permit a recovery in the levels of their economic activity and of their foreign exchange reserves. 15.  The Ministers stressed their concern over the alarming levels reached in the net transfer of resources from developing countries, resulting from increased debt services, sustained deterioration in the terms of trade of developing countries and the reduced access to international financial resources. They also expressed concern over the decline in both concessional and non-concessional lending by the international financial institutions. This trend has halted and in some cases retarded the development process causing a deterioration of the standard of living of the peoples of the developing countries. As a result, per capita incomes are lower today in the developing countries than they were at the beginning of the decade. In 1986, 850 million people lived in countries that experienced no increase in per capita output. They emphasized the need to promote sustained growth and development in developing countries in order to overcome the fundamental problems of poverty, unemployment and indebtedness. 16.  The Ministers reaffirmed the urgent need for concerned action for a substantial increase in the flows of financial resources for development on an assured, continuous and predictable basis consistent with the growth requirements of the world economy and meeting, in particular, the needs of the developing countries. They deplored the fact that the ODA target of 0.7 per cent of GNP and the ODA targets under the Substantial New Programme of Action for the 1980s for the Least Developed Countries remained unfulfilled. They urged all developed countries to take the necessary steps for the implementation of the provisions of the International Development Strategy for the Third United Nations Development Decade and the Substantial New Programme of Action concerning ODA for the least developed countries, in compliance with the recommendations of the Task Force on Concessional Flows. The Ministers also called for a substantial increase in the financial resources of the multilateral institutions, together with a review of their lending policies in order to promote additional lending and growth. They urged developed countries and international financial institutions to increase the flow of resources in real terms to African countries in accordance with the decisions contained in the United Nations Programme of Action for African Economic Recovery and Development 1986–1990. The Ministers expressed the hope that the ongoing discussions in the Development Committee on the adequacy of resource transfers to all developing countries to enhance the momentum of their development would contribute to further progress on this issue. 17.  The Ministers noted that the international trade system is gravely jeopardized and its principles and rules are frequently ignored or eluded. They deplored the further intensification of protectionist measures, the erection of new tariff and non-tariff barriers and other restrictions and quotas and emphasized the need for improved export conditions for developing countries. They called upon the developed countries immediately to apply the stand-still and roll-back commitments to which they subscribed in the Declaration of Punta del Este, as well as the principle of special and differential treatment for developing countries in accordance with their developmental, financial and trade needs. They also called on developed countries to observe fully all General Agreement on Tariffs and Trade (GATT) provisions, including most-favoured-nation treatment. They also expressed concern that the same developed countries are considering the introduction of trade legislation that goes against the spirit of fairness of the international trade system and reinforces protectionist tendencies, and called upon those countries to refrain from adopting such legislation. 18.  The Ministers pointed out that subsidies for agricultural exports and the protectionist practices that certain developed countries apply in the agricultural sector engender an artificial accumulation of excess stocks on the world market and do not serve the purposes of world food security, to the extent that the developing countries’ output may be eliminated from

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domestic and international markets. They reaffirmed also that developing countries have a right to protect their domestic markets from agricultural products benefiting from such subsidies. The Ministers agreed that negotiations in GATT should urgently proceed in order that an early agreement is reached on an international programme to reform and liberalize international trade in agriculture. In the interim the Ministers urged that developed countries observe stand-still and roll-back regarding subsidy programmes that distort world agricultural trade. 19.  The Ministers expressed deep concern at the excessive and continued downward trend in the prices of commodities exported by developing countries, including the recent decline in real terms of oil prices, and the worsening of their terms of trade. In examining the policy measures agreed upon at the seventh session of UNCTAD, they concluded that, although they fall short of expectations, developing countries should implement them without delay. They also welcomed the prospect of an early entry into force of the agreement of the Common Fund for Commodities and the Integrated Programme for Commodities, and appealed to all those countries that have not yet done so to sign and ratify the agreement. 20.  The Ministers stressed the need to conclude the negotiations on the elaboration of a universally applicable code of conduct of transnational corporations and called upon developed countries to show flexibility to enable its early conclusion and adoption. They expressed the appreciation and support for the work and activities of the Centre on Transnational Corporations, including studies in the areas of the environment, services and transnational banks. They also stressed that any administrative rearrangement or any change in reporting procedures taking place in the United Nations should not affect the Centre’s autonomy and capacity to fulfill its programmes as mandated. 21.  The Ministers expressed concern that the economic situation of African countries had worsened and that their short- and longer-term prospects remained bleak in spite of the tremendous efforts at policy reform consistent with the commitments undertaken, often at severe political and social costs, particularly in the Sudano-Saharan countries affected by drought and desertification. In this regard they expressed deep concern that the developed countries had so far failed to provide the expected support, particularly the required financial resources for the implementation of the United Nations Programme of Action for African Economic Recovery and Development 1986–1990 adopted by the General Assembly in its resolution S-13/2. They noted with regret that while Africa is implementing programmes of recovery, it is also experiencing an increasing rate of net transfer of resources to the developed countries and multilateral financial institutions, specially IMF. They, therefore, called on the international community, in particular the developed countries, to fulfill their commitments, taking into account, inter alia, the alarming debt and debt-service burden and the collapse of commodity prices. They also called on the international community substantially and urgently to increase, in real terms, the resource flows through bilateral and multilateral financial institutions to Africa, on highly concessional terms. They further invited the developed countries to take appropriate measures to increase the private flows to Africa, including those from commercial banks. 22.  The Ministers pointed out that, because of the very fragile and vulnerable economic infrastructures of the least developed countries, the adverse international economic environment has a much more devastating effect on their economies. They strongly appealed to the international community and in particular the developed countries, multilateral, international regional and subregional financial institutions, to implement urgently, fully and effectively the 1981 Substantial New Programme of Action and recommendations and conclusions agreed upon during the mid-term global review in 1985, and to transfer substantial additional external resources to the least developed countries on terms corresponding to their immediate and long-term development needs.

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23.  The Ministers noted the specific needs and acute problems of the developing, land-locked and island developing countries whose unique problems and inherent disadvantages have a particularly negative impact on their development. They called upon the donor community, the multilateral and development financial institutions to provide additional and adequate technical and financial resources for capital input in infrastructural development and other measures required to alleviate their specific transit transport and communications problems. They invited the transit countries to intensify co-operation with the land-locked developing countries to alleviate transit problems in accordance with the relevant United Nations conventions and resolutions. 24.  The Ministers stressed that major environmental problems are of a global character and cautioned against directing all prescriptions to the developing countries, whose contribution to the causes and solutions can only be marginal. They stressed the need for increasing and strengthening multilateral technical and financial assistance to developing countries in their concrete programmes of environmental protection. While recognizing the interrelationship between environment, population and development, taking into account scientific and technological developments, they emphasized further that the readiness of developing countries for environmental protection can only be implemented effectively with simultaneous efforts to solve the problems of world poverty, debt, international inequality and development in general. They expressed deep concern that international financial institutions would translate environmental issues into additional conditionality since this approach, rather than helping, might bring about additional difficulties in implementing environmental as well as economic and social programmmes; they stressed that insufficient financing is the key obstacle to the promotion of greater effectiveness of developing countries’ efforts in the restoration and protection of the environment. They stressed further the importance of enhancing the activities of the United Nations in environmental protection. In this context due consideration should be given to those activities of transnational corporations which have a negative effect on the environment, with a view to analyzing ways and means to regulate them adequately. They further underlined that the main threat to the environment and human life itself is nuclear weapons and the danger of a global nuclear war. 25.  The Ministers expressed their concern over the marginal participation of developing countries in the new scientific and technological revolution. They reiterated their strong commitment to the implementation of the Vienna Programme of Action on Science and Technology for Development, which provides comprehensive guidance for the work of the United Nations system in this field. They were of the view that the United Nations has the crucial role to play in promoting international co-operation in the field of science and technology for development in order to ensure that developing countries fully benefit from new scientific achievements. Development is a fundamental right of humanity as a whole and can only be achieved through, inter alia, the elimination of all obstacles and limitations that will prevent the developing countries from having access to the latest scientific and technological knowledge. The Ministers called for the early completion of the negotiations on the code of conduct for the transfer of technology. They once again expressed their full support to the activities of the Centre for Science and Technology for Development as an autonomous unit and to the Advisory Committee for Science and Technology for Development. They also stressed that any administrative rearrangement or any change in reporting procedures that takes place in the United Nations should not affect the Centre’s autonomy and capacity to fulfill its programme as mandated. 26.  The Ministers reaffirmed their continued support and faith in multilateralism within the framework of the United Nations system, which is the most appropriate instrument for dialogue and negotiation. They expressed their concern over the lack of political will as well as over the increasing tendency on the part of some developed countries to continue to take decisions that are of concern to the entire world economy without taking due account of the interests of developing countries and also outside the multilateral framework of the United Nations system and from the

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perspective of their own national interests. They reiterated the need to implement fully the declaration and programme of action for the establishment of a new international economic order, resolution 34/138, on the launching of global negotiations, the International Development Strategy for the Third United Nations Development Decade and the full implementation of the provisions of the Charter of Economic Rights and Duties of States, in order to achieve the goals of the Charter of the United Nations. 27.  The Ministers expressed deep concern over the ongoing financial crisis of the United Nations being a reflection of attempts aimed at undermining multilateralism, which endanger the ability of the Organization to fulfill the purposes for which it was created. To this end they once again urged Member States to comply with the provisions of the Charter of the United Nations, in particular those related to their financial obligations. 28.  The Ministers emphasized the need for a balanced implementation of resolution 41/213 at the intergovernmental and Secretariat levels, in order to provide an environment conductive to a harmonious and efficient deliberation by the Special Commission on the In-depth Study of the United Nations Intergovernmental Structure and Functions in the Economic and Social Fields established by the Economic and Social Council in its decision 1987/112. They noted the need to have a timely, orderly, integrated and well coordinated implementation of that resolution, which would take into account the interests of developing countries in order not to jeopardize the development-oriented programmes and activities of the United Nations, nor pre-empt the decisions that the General Assembly will take on the basis of the Economic and Social Council Special Commission. The Ministers recalled also that the study would constitute the main basis for the final implementation of resolution 41/213 in the economic and social sectors and that any other previous actions undertaken in that regard should be adjusted accordingly. 29.  The Ministers reaffirmed their deep commitment to strengthening economic co-operation among developing countries and to the Caracas Programme of Action, and stressed the need for its revitalization as an instrument of collective self-reliance in the implementation of the declaration and programme of action for the establishment of a new international economic order. 30. The Ministers endorsed the report of the Intergovernmental Follow-up and Co-ordination Committee Meeting, held at Havana from 7 to 12 September 1987, on the implementation of the Caracas Programme of Action, which provides a significant opportunity to enhance South-South co-operation. They noted the request made by the Committee to the Chairman of the Group of 77 to carry out consultations on the possibility of biennializing the meetings of the Intergovernmental Follow-up and Co-ordination Committee. The Ministers decided that the meetings of the Committee should henceforth be held every two years beginning in 1989. They also decided to consider economic co-operation between developing countries in depth during their twelfth Annual Meeting in 1988 and to continue afterwards their biennial in-depth consideration of such co-operation. 31.  The Ministers endorsed the recommendation adopted by the Committee at its sixth meeting on the projects contained in the report of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/TCDC. They requested the Chairman of the Group of 77 in New York to be guided by the observations contained in the report of the Committee’s sixth meeting regarding the recommended projects. They stressed the importance of abiding by the guideline for the utilization of the Perez-Guerrero Trust Fund for ECDC/TCDC as contained in the report of the Cairo High-Level Meeting on ECDC in 1986. They invited the Chairman of the Group of 77 in New York to try and ensure that the report of the Committee of Experts was submitted well in advance before meetings of the Intergovernmental Follow-up and Co-ordination Committee for adequate consideration by Member States. 32.  The Ministers welcomed the Pyongyang declaration and plan of action on South-South cooperation adopted at the Extraordinary Ministerial Conference of Non-Aligned Countries on South-South Co-operation held in June 1987, and expressed support to the efforts made by the

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Movement of Non-Aligned Countries to strengthen economic co-operation among non-aligned and other developing countries. 33.  The Ministers took note with appreciation of the establishment of the South Commission under the chairmanship of His Excellency Mr Julius Nyerere, first President of the United Republic of Tanzania, and his appointment of members of the Commission as a positive development in the field of South-south co-operation. They expressed confidence that the South Commission would make a valuable contribution to South-South co-operation, urged all developing countries to give their unswerving support to the work of the Commission and invited the Chairman of the Group of 77 in New York to establish as appropriate the necessary consultations for co-operation with the South Commission. 34.  The Ministers welcomed the initiative taken by some members to organize TCDC project programming activities. They recommended further exchanges of information and experience among developing countries on their capacity to participate on TCDC and stressed the need to strengthen national focal points. The Ministers reiterated also the importance of undertaking consultations with the view to launching the Action Committee on Inter-enterprise Co-operation. They called for the early completion in the drafting of a model contract for recruitment of experts and the implementation of the multisectoral information network project. The Ministers expressed their support for the recommendation to hold the Third Biennial Meeting of Directors of TCDC National Agencies before the seventh meeting of the Intergovernmental Follow-up and Co-ordination Committee. 35.  The Ministers reiterated the need for a harmonization between the activities undertaken by the Group of 77 and the Movement of Non-Aligned Countries regarding the promotion of economic and technical co-operation among developing countries. In this regard, they acknowledged the need for more active co-operation in the areas of technology and food agriculture, and the use of the Centre for Science and Technology of the non-aligned and other developing countries as a clearing-house for information on technical and scientific capacities of developing countries. 36.  The Ministers stressed the relevance of the efforts to increase transfer of technology among developing countries, and considered the co-operation among the members of the Group of 77 in this field, giving due account to the needs of the least developed countries as a step towards the implementation of the Caracas Programme of Action. 37.  The Ministers welcomed the offer to host the First Meeting of Representatives of Chambers of Commerce and Industry of Developing countries of the Group of 77 in Brazil and the Consultative Meeting of Non-Aligned and Other Developing Countries on External Debt in Morocco. 38.  The Ministers expressed their satisfaction at the progress achieved in the negotiations on the global system of trade preferences, one of the most significant examples of South-South cooperation. They took particular note of the preparatory measures that will enable participating countries to move very soon into the actual stage of exchange of trade concessions. They expressed hope that the first round would be followed by the signing of the framework agreement on the definitive establishment of the global system of trade preference, and of the protocols incorporating the results of the first round, to be annexed to the framework agreement. They welcomed the offer of Yugoslavia to host the next Ministerial Meeting of the Negotiating Committee of the Global System of Trade Preferences. 39.  The Ministers reiterated their continued and unswerving support for the struggle against apartheid and expressed their solidarity with its victims and with those neighbouring countries suffering from aggression and economic destabilization by the racist régime of Pretoria. They once again urged the international community to impose comprehensive and mandatory

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economic sanctions against the Pretoria régime in accordance with Chapter VII of the Charter of the United Nations. The Ministers reaffirmed that urgent, more vigorous and concrete steps and actions should be taken individually and collectively by all the members of the international community to end without delay colonialism, occupation, domination and exploitation, which constitute major obstacles to the economic emancipation of the developing countries and peoples. The Ministers also reaffirmed the rights of all countries, territories and peoples subjected to or affected by those condemned practices to restitution and full compensation for the exploitation, depletion, loss or damages to their natural and all other resources. They noted particular difficulties being experienced by the Palestinian people, whose living conditions have been deteriorating as a result of the Israeli occupation and who urgently need to be liberated from occupation to enable them to develop their national economy, and the similar conditions of the people of South Africa and Namibia, including the countries of the front-line States whose painstakingly developed infrastructure and legitimate development programmes are undermined by the South African régime’s policy of destabilization. Therefore, they reiterated their unswerving support for the heroic struggle of the peoples of Namibia, South Africa, Palestine, Lebanon and the occupied Arab territories. The Ministers further called upon the international community to adopt urgent and effective measures in order to eliminate the use of coercive measures against developing countries, which have been on the rise and have taken new forms. 40.  The Ministers once again underlined that development can only be attained in an atmosphere of international peace and co-operation and stressed the direct relationship between peace, disarmament and development. The Ministers reiterated their appeal for the immediate halting of the arms race and an urgent adoption of disarmament measures that would release human, material, technological and financial resources badly needed for development. In this context, they noted the outcome of the International Conference on the Relationship between Disarmament and Development, held in New York from 24 August to 11 September 1987, which established for the first time the close and multidimensional relationship between disarmament and development. They reaffirmed the urgency to devise measures or mechanisms to reallocate resources liberated through disarmament efforts into development objectives, and stressed that this should be the next step. They further noted with regret that the participation of developed countries in the conference was not universal. 41.  The Ministers recalled the importance of the proclamation of 1987 as the International Year of Shelter for the Homeless and noted that the General Assembly had decided to devote two plenary meetings during its forty-second session to the observance of the International Year of Shelter for the Homeless on Monday, 12 October 1987. The Ministers appealed to the international community and the United Nations system to extend their support, paying special attention to measures that would improve the shelter and neighbourhoods of the poor and disadvantaged in the implementation of the global strategies for shelter to the year 2000.

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THE COLLECTED DOCUMENTS OF THE GROUP OF 77

12.  Twelfth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 28–30 September 1988 a.  Ministerial Declaration 1.  The Ministers for Foreign Affairs of the Group of 77 held their twelfth annual meeting at United Nations Headquarters from 28 to 30 September 1988. 2. The Ministers agreed with the assessment of the world economic situation made by the Ministerial Meeting of the Movement of Non-aligned Countries held at Nicosia in September 1988, and welcomed the recommendations and initiatives adopted at that meeting. 3.  The Ministers expressed concern over the uncertain situation of the world economy and its grave consequences for the developing countries. They noted that the expansion registered in terms of gross domestic product (GDP) growth is unevenly distributed between developed and developing countries and stressed the importance of achieving a sustained and equitable growth, in order to eliminate the delinking of growth rates between developed and developing countries. 4.  The Ministers expressed grave concern at the precarious condition of developing countries arising mainly from acute debt problems, increasing protectionism, deteriorating terms of trade and continuous decline in the financial flows leading to a halt in the development process expressed, inter alia, by stagnation in real per capita income and the deterioration of the basic social indicators of the developing countries. 5. The Ministers expressed deep concern that the economic and social costs of prolonged retrenchment has caused what has been referred to by the multilateral financial institutions as ‘an adjustment fatigue’. The developing countries continued to be adversely affected by the external conditions. Living standards have been well below the levels that prevailed at the beginning of the decade. Prolonged stagnation in real per capita income, greater property and social unrest are risks that the developing countries are facing as a result of such a situation. The Ministers reaffirmed that the strenuous adjustment efforts undertaken by developing countries as demanded by the international financial institutions had continued to result in unacceptably high social, political and economic costs, and had led to the impairment of their capacity to grow and develop and in declining indexes of well-being and quality of life. 6.  The Ministers emphasized that the current state of the world economy amply demonstrated the urgent need to reactivate the dialogue between developed and developing countries. An integrated approach has therefore become even more necessary in the interrelated areas of money, finance the external debt, trade and development. They further stressed that, to be really effective, the process of economic consultation and co-ordination should be broad-based, should take into account the developing countries’ concerns and be carried out with their active participation so that a truly global and integrated package of policies could be worked out for sustained growth and development of the world economy in the interest of all countries. 7.  In this context, the Ministers called for the convening of a special session of the General Assembly devoted to ‘The reactivation of Economic Growth and Development of Developing Countries’, to be held at the highest level at the earliest possible date, but not later than 1990. 8.  The Ministers noted with deep concern that if the low rates of growth that have characterized the international economy during the 1980s prevail into the 1990s, they will aggravate the already serious economic and social problems of indebted developing countries and hamper restoration of significant growth rates in developing countries. They reiterated that the International Development Strategy for the Fourth United Nations Development Decade should contain

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commitments and propose specific policy actions aimed at resolving these problems, reactivating development, combating poverty and improving living conditions of the people. 9.  The Ministers noted that the debt crisis is entering its seventh year and remains unabated. They reaffirmed their deep concern about this situation and stressed that it continues to be a major political issue and an obstacle to the development of the developing countries. They reiterated that the current approach to the debt problem continued to be inequitable, asymmetrical and partial. The debt crisis has led to the fact that the external debt of the developing countries cannot be serviced under present international conditions without further damage to the development process of the developing countries. The Ministers, therefore, stressed the need for the international community urgently to find a political solution based on the shared responsibility of developed creditor countries, debtor developing countries, commercial banks and international financial institutions, to bring about a durable, development-oriented and global solution to the external debt problem of the developing countries. The Ministers took note with appreciation of the recent Trade and Development Report (1988) which contained recommendations with a view to lessening the crippling debt burden encouraging the economic development and boosting world trade. They urged creditor developed countries, banks and other international financial creditor institutions to consider seriously these recommendations. The Ministers expressed their willingness to continue the efforts and the work accomplished in the United Nations in keeping the debt crisis under constant review. In this context, they urged once again the General Assembly at its forty-third session to explore and define a suitable mechanism and/or options and devise policy approaches and measures conducive to a prompt, viable and durable solution to the external debt problems of the developing countries. 10.  They also noted with deep concern the alarming level that had continued to exist in the net transfer of resources from developing countries to developed countries and multilateral institutions, resulting from increased debt services, sustained deterioration in the terms of trade of developing countries and the reduced access to international financial resources. They stressed the need for urgent actions to be taken by the international community to reverse this trend, which is adversely affecting the level of domestic investment and impeding the growth potential of developing countries. 11.  The Ministers reiterated the imperative need for the convening of an international conference on money and finance for development with universal participation, with the objective of reforming the international monetary and financial system so as to make it truly stable, multilateral, equitable and responsive to the development needs of developing countries. They supported the call by the Group of 24 for the creation of a Representative Committee of Ministers as an effective step in preparing such a conference. 12.  The Ministers noted with concern the sharp fall in resource flows to developing countries since 1982, in particular the stagnation in the levels of official development assistance at less than half of the internationally agreed targets and cessation of commercial flows. In this respect, they noted that further co-operative and mutually reinforcing efforts are required of the Governments, multilateral institutions and commercial banks, for restoring the flow of development financing to desirable levels. 13.  The Ministers noted further that the international trade situation is also worrisome to the developing countries, whose terms of trade in the 1980s have worsened in comparison to the previous decade and whose share of the markets has declined. The commodity prices continued to be low, particularly since 1982, and demonstrated a high degree of instability and unpredictability, while the prices of the manufactured goods imported by developing countries from developed countries continued to rise, further worsening the balance of trade between developed and developing countries. The urgent reversal of the trend of rising protectionism and other measures taken by developed countries that distort international trade, such as tariff and non-tariff barriers

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THE COLLECTED DOCUMENTS OF THE GROUP OF 77

as well as production and export subsidies, would benefit the developing countries and, by way of consequence, the world economy as a whole. The Ministers emphasized the crucial importance of the meeting for a mid-term review of the Uruguay round of negotiations, scheduled for next December, and expressed their hope that it will substantially contribute to such reversal. 14.  The Ministers noted that despite the adoption of the United Nations Programme of Action for African Economic Recovery and Development 1986–1990 and the tremendous efforts and sacrifices made by the African countries, the economic situation of those countries remain critical. In this context, the Ministers took note of the results of the Ad Hoc Committee of the Whole of the General Assembly on the mid-term review of the implementation of the United Nations programme of action on the economic recovery and development of Africa held in New York from 12 to 23 September 1988. They called upon the developed countries for the urgent and speedy implementation of the recommendations agreed upon on this occasion. The Ministers expressed their deep concern about the heavy debt burden faced by the African economies. They considered that the African indebtedness crisis calls for the urgent adoption of a co-operative strategy as referred to in paragraph 9 above, based on the shared responsibility of all parties concerned and oriented towards the reactivation of the economic growth and long-term development of the continent which will duly take into account the African capacities to pay. The Ministers expressed their full support to the African common position on the African external indebtedness adopted by the third extraordinary Organization of African Unity Summit held at Addis Ababa in December 1987. They called upon the creditor developed countries to respond urgently and positively to the proposal of convening an international conference on the African external indebtedness. 15.  The Ministers welcomed the adoption by the United Nations General Assembly of resolution 42/231 and urged the international community to support the full implementation of the special plan of economic co-operation in Central America in support of the efforts being made under the Esquipulas II agreements to achieve peace and development in the Central American region. 16.  The Ministers noted with grave concern the continuing economic crisis in the least developed countries, which are economically the weakest among the developing countries and are faced with the most formidable structural problems. The structural deficiencies of these countries, while greatly contributing to extreme economic and social difficulties, have also made them particularly vulnerable to their highly adverse external environment characterized, inter alia, by the historically low level of commodity prices, the mounting debt-to-GDP ratio and inadequate external financial flows. Despite the increased attention given by the international community and the international organizations to finding a lasting solution to the problems of the least developed countries, mainly through the adoption in 1981 of the Substantial New Programme of Action for the 1980s for the least developed countries, there has been significant deterioration in the overall socio-economic situation of these countries since 1981. The African least developed countries, in particular, were severely hit by drought and desertification resulting in widespread famine and further deepening of impoverishment. Other least developed countries also suffered immensely due to recurrence of natural disasters, often on an unprecedented scale. These disasters have considerably reduced the potential for agricultural production, the main source of least developed countries value added, and led to the reorientation of efforts to relief and rehabilitation activities rather than pursuit of development programmes. The Ministers expressed their apprehension that the present untenable situation prevailing in the least developed countries and the increasingly adverse external environment are highly likely to destabilize their societies. The Ministers expressed satisfaction at the domestic policy measures undertaken by least developed countries in pursuance of Substantial New Programme of Action, in spite of numerous formidable constraints. They called for an urgent and full implementation of the recommendations of the Substantial New Programme

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of Action, and its mid-term global review, and the measures contained in the Final Act of the seventh session of the United Nations Conference on Trade and Development. Reiterating their endorsement of the convening of the United Nations Conference on Least Developed Countries to be held in Paris in 1990 at a high level, the Ministers underscored the need for an adequate preparatory process for that Conference. 17.  The Ministers recognized the specific needs and acute problems of the land-locked and island developing countries, and called upon the international community and, in particular, the developed countries, international organizations and multilateral and, development financial institutions to take urgent and effective measures to respond positively to the specific needs of these countries. 18. The Ministers expressed their concern about the impact of the application of new and advanced technologies in the present international division of labour, and especially the widening of the technological gap between developing and developed countries, with strong negative effects for developing countries. They were of the view that the United Nations has to foster international co-operation multilaterally for effective and efficient transfer of new technologies to developing countries and for their absorption in those countries. 19.  The Ministers reaffirmed the link between restructuring of the United Nations intergovernmental structure and functions in the economic and social fields and its secretariat support structure, and the strengthening of the United Nations in these fields as well as the improvement of the capacity of the United Nations system better to respond to the growing needs of developing countries. They welcomed the adoption of Economic and Social Council resolution 1988/77 on the revitalization of the Economic and Social Council, which was adopted as the result of the initiative of the Group of 77. The Ministers also considered the financial crisis of the United Nations. In this context they affirmed that the continuation of such a crisis would seriously impair the full implementation of General Assembly resolution 41/213. 20.  The Ministers expressed their concern at the continuous environmental degradation and its consequent impact on human health, on ecosystems and the process of development. They also expressed concern that different forms of destruction and contamination of the environment are the consequences of the activities and operations whose origins are often outside the developing world. The developing countries are facing the risk, cost and effects of such actions. The Ministers underlined their conviction that effective and lasting protection of the environment can be ensured only by a reactivation of the development process of developing countries, by removing the external constraints to such reactivation and creating a supportive external economic environment. The Ministers reiterated that any measures undertaken at the international level should take full account of the existing inequities in the global patterns of production and consumption and the need to redress them, as well as the need for ensuring additionality of resources, and eschewing conditionality in the guise of environmental protection in the policies of multilateral development and financial institutions. In particular, the Ministers pointed out their concern at the growing traffic of toxic and dangerous products and wastes and their dumping in developing countries. They called upon developed countries to adopt strong measures at the domestic level both administrative and legislative, in order to prevent such traffic. They also called upon the international community for the adoption of comprehensive and effective international measures, including legal instruments, for the elimination of the traffic. The Ministers recognized the endeavours currently undertaken by the United Nations for the control and halting of the environmental degradation and urged developed countries to spare no efforts for the restoration of the environmental balance and to take concrete measures in all areas, inter alia, traffic and dumping of toxics and dangerous products and wastes, dumping of nuclear wastes, seas contamination, protection of the ozone layer, pollution and climate calamities, such as drought.

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THE COLLECTED DOCUMENTS OF THE GROUP OF 77

21.  The Ministers extended full support to the objectives of the Global Strategy for Shelter to the Year 2000 to continue to take appropriate action at national and international level to sustain the momentum generated during the programme for the International Year of Shelter for the Homeless and to continue implementing concrete and innovative programmes aimed at improving the shelter and neighbourhoods of the poor and disadvantaged. 22.  The Ministers reiterated their continued and unswerving support for the struggle against apartheid and expressed their solidarity with its victims and with those neighbouring countries suffering from aggression and economic destabilization by the racist régime of Pretoria. They once again urged the international community to impose comprehensive and mandatory economic sanctions against the Pretoria régime in accordance with Chapter VII of the Charter of the United Nations. The Ministers reaffirmed that urgent, more vigorous and concrete steps and actions should be taken individually and collectively by all the members of the international community to end without delay colonialism, occupation, domination and exploitation, which constitute major obstacles to the economic emancipation of the developing countries and peoples. The Ministers also reaffirmed the rights of all countries, territories and peoples subjected to or affected by those condemned practices to restitution and full compensation for the exploitation, depletion, loss or damages to their natural and all other resources. They noted with particular concern the difficulties being experienced by the Palestinian people, whose living conditions have been deteriorating as a result of the Israeli occupation and who urgently need to be liberated from occupation to enable them to develop their national economy, and the similar conditions of the people of South Africa and Namibia, including the front-line States, whose painstakingly developed infrastructure and legitimate development programmes are undermined by the South African régime’s policy of destabilization. Therefore, they reiterated their unswerving support for the heroic struggle of the peoples of Namibia, South Africa, Palestine, Lebanon and the occupied Arab territories. The Ministers further called upon the international community to adopt urgent and effective measures in order to eliminate the use of coercive measures, including blockades, embargoes and freezing of assets, against developing countries, which have been on the rise and have taken new forms. 23.  The Ministers reaffirmed their continued support and faith in multilateralism within the framework of the United Nations system, which is the most appropriate instrument for dialogue and negotiation. They expressed their concern over the lack of political will as well as over the increasing tendency on the part of some developed countries to continue to take decisions that are of concern to the entire world economy without taking due account of the interests of developing countries and also outside the multilateral framework of the United Nations system and from the perspective of their own national interests. They reiterated the need to implement fully the declaration and programme of action for the establishment of a new international economic order, resolution 34/138 on the launching of global negotiations, the International Development Strategy for the Third United Nations Development Decade and the full implementation of the provisions of the Charter of Economic Rights and Duties of States, in order to achieve the goals of the Charter of the United Nations. 24.  The Ministers recalled the imperative need further to expand and deepen economic and technical co-operation among developing countries as an integral part of the effort to promote a restructuring of international economic relations. 25.  The Ministers welcomed the adoption of the final text of the Agreement on the Global System of Trade Preferences by the Ministerial Meeting on the Global System of Trade Preferences among Developing Countries, which was held at Belgrade from 6 to 13 April 1988, and which constitute an historical event for the Group of 77. 26.  They noted with satisfaction that the Agreement has so far been signed by 48 member countries of the Group of 77. The Ministers urged the signatory countries to ratify the Agreement as

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soon as possible to enable its efficient implementation and made an appeal to all other member countries desirous of acceding to the Agreement to proceed with the preparation for the next round of negotiations. 27.  The Ministers took note of the report of the Chairman of the Group of 77 on the activities undertaken in the framework of ECDC by member countries as well as by the Office of the Chairman of the Group of 77 in the context of the implementation of the pertinent recommendations adopted by IFCC VI held at Havana in September 1987. They also took note of the status of the implementation of the Perez Guerrero projects adopted by IFCC VI and invited the Chairman of the Group of 77 to ensure the early implementation of the projects which are being finalized on the basis of the respective guidelines for those projects and to make a further report to the next IFCC on the status of their implementation. 28.  The Ministers recommended that further steps should be taken to ensure the implementation of the Caracas Programme of Action and that new ways and means should be explored to this effect. They urged IFCC VII, which will be held in 1989, to submit to the special ministerial meeting that will commemorate the twenty-fifth anniversary of the creation of the Group of 77, as referred to in paragraph 29 below, specific proposals in this regard. 29.  The Ministers requested the Chairman of the Group of 77 to submit to IFCC VII recommendations on the new role and function of the IFCC in the light of the decision adopted by the eleventh ministerial meeting to biennialize IFCC meetings. 30.  The Ministers noted that the year 1989 will mark the twenty-fifth anniversary of the creation of the Group of 77. They considered that this historic event deserves special attention. On this occasion they decided to hold a special meeting at the ministerial level. The Ministers invited the Chairman of the Group of 77 to conduct the necessary consultations with the Member States of the Group on the venue and date of such a meeting and to establish a small working group, which shall begin its work as of January 1989, with the mandate to ensure the necessary preparations for this meeting and to elaborate concrete recommendations, taking into account that the Special Ministerial Meeting will assess the progress achieved by the Group, and consider ways and means to enhance its efficiency and to ensure the implementation of its goals and objectives for the 1990s.

576

THE COLLECTED DOCUMENTS OF THE GROUP OF 77

13.  Thirteenth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 28 September 1989 a.  No Declaration issued.

14.  Fourteenth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 3 October 1990 a.  Ministerial Declaration 1.  The Ministers for Foreign Affairs of the Group of 77 held their fourteenth annual meeting on 3 October 1990 in New York. 2.  The Ministers were pleased to welcome the unity of both parts of Yemen and wished them success in their new statehood. They also requested the international community to assist the newly united country in the promotion of its socio-economic structures for the prosperity of its people. 3.  The Ministers welcomed the independence of Namibia and noted that this would contribute to the emergence of a better climate for peace and security in Southern Africa. The Ministers expressed their satisfaction at the admission of Namibia as the 128th member of the Group of 77. 4.  The Ministers reiterated the principles and objectives set forth in the Caracas Declaration adopted in 1989, on the occasion of the twenty-fifth anniversary of the creation of the Group, including the pending recommendations regarding its organizational effectiveness. These principles and objectives remain valid and should be assiduously pursued and implemented. 5.  The Ministers emphasized the importance of carrying forward the consensus embodied in the Declaration on international economic co-operation, in particular the revitalization of the economic growth and development of the developing countries, adopted by the Eighteenth Special Session of the General Assembly on 1 May 1990. This agreement constitutes a step forward a renewed North-South dialogue on key areas of international co-operation for development. While recognizing the paramount importance of the political will and commitment of all countries to guarantee the implementation of the Declaration, they stressed that this will require full and effective use of the United Nations system. To this effect, broad-ranging measures, including effective review mechanisms, should be considered at the forty-fifth session of the General Assembly in its consideration of an item entitled ‘Implementation of the commitments and policies of international development co-operation agreed upon in the Declaration on International Economic Co-operation, in particular the Revitalization of Economic Growth and Development of the Developing Countries’, in accordance with resolution 1990/54 adopted by the Economic and Social Council at its second regular session. The Ministers likewise emphasized that all countries should implement the Declaration through national policies and enhanced international cooperation aimed at the reactivation of economic growth and development of developing countries. 6.  The Ministers expressed their strong hope that the Declaration and the Plan of Action adopted by the Heads of State or Government at the World Summit for Children on 30 September 1990 would be urgently and fully implemented.

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7.  The Ministers noted that after seven years of sustained growth in the developed countries and major adjustment efforts in many developing, the stagnation and decline in much of the developing world continued in 1989 and the first part of 1990. In this connection, the Ministers underlined the importance of adopting and implementing the International Development Strategy for the Fourth United Nations Development Decade as a primary instrument to overcome the stalemate of the 1980s. 8.  The Ministers highlighted the importance of solving social problems in developing countries as a necessary condition for the revitalization of economic growth and development of those countries. They noted that the ultimate goal of economic development is the elimination of all factors, which prevent social and economic advancement of all human beings. Therefore, steps should be taken to improve the human condition and to maximize the full potential of all members of the society, including women and youth, in those countries through the implementation of domestic/national and international policies directed towards the eradication of poverty and hunger, improvement in the quality of human resources by promoting education and training, increased employment opportunities and higher labor productivity in both rural and urban areas, higher levels of nutrition and improved health, housing, as well as other social services. The Ministers particularly stressed that measures should be taken to counteract the negative effects of the economic conditions which prevailed during the past decade which had made inevitable in many cases the enforcement of structural adjustment programmes which particularly affected the vulnerable groups of people. 9.  The Ministers reiterated the view that although development is primarily a responsibility of the developing countries themselves, in an increasingly interdependent world, it also depends on a favorable international economic environment. They noted that interdependence affects countries differently, that is, in accordance with their capacity and relative impact on the world economy and that it can either reinforce the economic policies for development of the developing countries or counter them and cause their failure. This poses new risks and challenges to new development strategies for developing countries and makes a strong case for international co-operation for development. They further stressed the need for strengthening multilateral macroeconomic surveillance aimed at the correction of major economic and financial imbalances within the world economy. In addition, they emphasized that the increasing internationalization of the world economy required an equitable and effective mechanism of multilateral macroeconomic policy coordination which should allow for greater participation of developing countries and take into account their needs and concerns. 10.  The Ministers took note of the profound economic and political changes taking place in the Eastern European countries and expressed their hope that the dynamic integration of those countries into the world economy will lead to more commercial opportunities and investment flows to developing countries. They emphasized that the new developments in East-West relations should be closely monitored to guard against further marginalization of the developing countries, particularly in trade and transfer of technology or the danger of reduced availability of resources for the development of the developing countries and the erosion of the benefit for debt relief recently secured by some of them. In this regard, the Ministers welcomed the decision taken by the United Nations Economic and Social Council at the initiative of the Group of 77 to convene a Special Ministerial Meeting of the Council in 1991 devoted to ‘the impact of the recent evolution of East-West relations on the world economy, in particular on economic growth and development of developing countries’ to be held in Geneva on 4–5 July 1991. They noted that this event, the first of its kind, deserves careful preparation by the Group of 77 and therefore called upon the developing country members of the Council as well as observers to be represented at this meeting at the ministerial level, to ensure the presentation of the views of the developing countries at the highest level.

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THE COLLECTED DOCUMENTS OF THE GROUP OF 77

11.  The Ministers stressed that the Uruguay Round provides a unique opportunity to promote a truly open, credible, dynamic and durable multilateral trading system. Reiterating the need for a successful and balanced outcome of the Round which should promote in particular the developmental aspirations of developing countries, they emphasized that this opportunity must be seized by the international community in order to generate a new consensus, within the United Nations system, on all aspects of international economic co-operation in the field of trade and development. This consensus should promote both benefits for all its Members States and opportunities for a meaningful participation of developing countries in the international economy. Furthermore, they noted that the prevalent movement towards integration of new economic blocs in Europe and elsewhere should be directed towards greater openness of the world markets and should redound to the benefit of all countries. They further stressed that this process should not, in any way, add to the tendency towards unilateralism, bilateralism and other forms of protectionism and discrimination, which already seriously restrict access of exports from developing countries to the markets of developed countries, impeding the revitalization of their economic growth and development. 12.  The Ministers emphasized that the external indebtedness of developing countries remains a major hindrance to economic growth and development. They further stressed that in order to achieve a broad and durable solution to the debt problem, prompt, innovative and ample measures should be taken to significantly reduce the stock and service of all types of debt of all categories of debtor developing countries and to prevent the proliferation of the problem of indebtedness. Otherwise, the great efforts made so far by the governments of these countries to resume vigorous economic growth and sustained development, and to avoid political instability and social turmoil will prove unfruitful. In this connection, the Ministers reiterated the need for considering the establishment of an advisory committee on debt and development, as well as a possibility of establishing an international debt facility within the multilateral institutions. 13.  The Ministers emphasized the critical role of concessional external resources for the development of the developing countries. They called upon the developed countries to redouble their efforts to implement their undertakings to attain the agreed international target of devoting 0.7 per cent of gross national product to official development assistance. They also urged the developed countries to enhance the quantity and quality of their aid. 14.  The Ministers noted that, in the last decade, the sharp decline in the flow of resources to developing countries, their severe external indebtedness, deterioration in their terms of trade, depressed international commodity prices, and continued protectionism and other trade measures taken by the developed countries, both individually and collectively, have resulted in a substantial net transfer of resources from developing countries. They further noted that this transfer is rapidly increasing and has become the main obstacle to resumed economic growth and development as well as to political stability of developing countries. They stressed that urgent and immediate measures are required to halt and reverse this phenomenon. 15.  The Ministers urged developed countries to take concrete action aimed at improving the access to their markets for items of export interest to developing countries. The Ministers stressed that the trade policy reforms being undertaken by developing countries would be frustrated unless the developed countries took positive structural adjustment measures providing larger export possibilities to developing countries. 16.  The Ministers noted the persisting commodity problems caused by the continued deterioration in the terms of trade which had resulted in further reduction in export earnings of developing countries, and in Africa in particular. The efforts of these countries to diversify the commodity sector need to be supported. 17.  The Ministers emphasized the importance of achieving adequate levels of industrialization in developing countries as one of the main ways to assure the reactivation of their economic

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growth and development. The Ministers also pointed out the necessity of properly assisting the different stages of industrialization in all developing regions, mainly through the strengthening of industrial infrastructures, the modernization of production capabilities, and the improvement of training techniques. At the same time, in selecting patterns of industrialization, the developing countries should take into account the possibilities of generating employment, human resource development and the ability to incorporate new and emerging technologies. In this connection, the Ministers urged that developed countries, as well as international organizations, should support the efforts made by developing countries to improve their levels of industrialization by providing sufficient financial resources, and opening the domestic markets of developed countries to manufactured exports coming from developing countries. 18.  The Ministers stressed that the development and enhancement of endogenous capacities of developing countries in the fields of science and technology are crucial for the economic growth and development of those countries. Effective modalities for unimpeded access to and transfer of technology, particularly on concessional and preferential terms, to developing countries must be set up. Multilateral and bilateral cooperation schemes, including joint programmes of research and development, should be strengthened or initiated. The intellectual property rights system should not be used to create further constraints on access to technology and transfer of technology to developing countries. Therefore, any new regime of intellectual property rights should take into account the developmental concerns of developing countries and their increased need to have an unimpeded access to foreign technologies. The Ministers expressed their strong concern over multilateral and unilateral measures adopted by the developed countries that hinder the free flow of technology to the developing countries. Such measures reinforce the restricted access to technology, in particular of the new and emerging ones, and contribute to deepening the gap between industrialized and developing nations. They are contrary to the principles of free trade and inconsistent with the purpose of promoting development in the developing countries and making the world economy more efficient and more competitive. 19.  The Ministers reaffirmed their conviction that there is, at present, more than ever before, a pressing need for a global framework of rules and principles aimed at promoting the access to, diffusion, and transfer of technology at fair and equitable terms and conditions, both at the intergovernmental and inter-enterprise levels. Therefore, the Ministers reiterated their willingness to resume negotiations on an international code of conduct on the transfer of technology and were of the view that the United Nations Conference on an International Code of Conduct on the Transfer of Technology should be reconvened as early as possible. 20.  The Ministers reiterated the special importance of food and agriculture in the development of the developing countries. They further noted that food and agricultural production in developing countries should expand to create a basis for more rapid industrialization and diversification of their economic structures, to redress growing imbalances in world production and enable them to become more self-reliant in the production of their basic foodstuffs. The Ministers also stressed that in order to achieve that goal, the main exporting developed countries shall avoid adverse effects on the economies of the developing countries while formulating and implementing their domestic agricultural policies and reverse the disquieting rise in protectionism, including export subsidies, taking into account the need to provide special and differential treatment for developing countries considering their food security objectives and the need to avoid potentially adverse effects on their countries, specially the net food importing ones. 21.  The Ministers stressed that the continued expansion of illicit production, consumption and trafficking of narcotic drugs and psychotropic substances requires the adoption of urgent measures by the international community. Those measures should include drastic reduction and eventual elimination of demand in the main consumer centers accompanied by crop substitution programmes and measures to strengthen international co-operation to facilitate trade flows and

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creation of expanded opportunities for trade, investment, in order to provide access to international markets for crop substitution products and other goods produced by countries affected by illicit production and processing of narcotic drugs and for further strengthening their international capacity to produce exportable goods. They further stressed that the financial and banking systems should be prevented from money laundering activities of capital flows stemming from illicit traffic in drugs, and effective action must be taken to impede the diversion of raw materials and other specific chemicals to the illegal manufacture of narcotic drugs. They also called for the international community to take into account the problems of transit countries and of those engaged in licit production. In this regard, the Ministers endorsed the Political Declaration and called for the full implementation of the Global Programme of Action adopted by the seventeenth special session of the General Assembly, devoted to the question of international co-operation against illicit production, supply, demand, trafficking and distribution of narcotic drugs and psychotropic substances. 22.  The Ministers reaffirmed their commitment to the strengthening of international co-operation for the protection and enhancement of the environment. Accordingly, the development dimension in its relation to environment should be of high priority. Therefore, a supportive international economic environment for the developing countries is essential. Moreover, development requires coordinated efforts in the North and South, in accordance with the capabilities of each country, with a view to promoting better standards of living, which are not harmful to the environment. The Ministers noted that, since the main cause of the deterioration of the environment is the unsustainable patterns of production and consumption of developed countries, they have the main responsibility to combat world pollution; therefore, those countries should increase their endeavors in order to help developing countries in their efforts to deal with their own environmental problems, many of which originate form and have strong links to poverty. The Ministers re-emphasized the importance of international co-operation to provide the developing countries with new and additional financial resources, as well as ensured access to, and transfer of environmentally sound technologies on concessional and non-commercial terms without imposing any forms of conditionality. In this context, they stressed that negotiations on any convention, umbrella agreement or instrument on environment should include these provisions from the outset. Under no circumstances, should environmental considerations be used to justify the imposition of any form of restrictions, which adversely affect the developing countries. The Ministers stressed that the success of the 1992 United Nations Conference on Environment and Development will depend on the strict and full compliance by the developed countries with the commitments agreed upon on these issues in General Assembly resolution 44/228. The Ministers agreed to convene a preparatory ministerial meeting of the Group of 77 prior to the United Nations Conference on Environment and Development in 1992, as recommended by the Ninth Conference of Heads of State or Government of the Movement of Non-Aligned Countries held from 4–7 September 1989. 23. The Ministers reaffirmed the principles of universality, multilateralism, voluntary/grant nature, neutrality, non-conditionality and flexibility in meeting the technical cooperation requirements of developing countries. The Ministers pointed to the importance of meeting increasing resource needs of developing countries in regard to the operational activities for development. The Ministers stressed that the way to achieve this objective is through substantial and urgent increase in real terms of the overall level of resources for operational activities for development of the United Nations system on a continuous, predictable and assured basis, bearing in mind the special need for providing grant resources to programmes and projects in low-income countries, particularly the LDCs. They emphasized that resources of United Nations system operational activities should be utilized for projects and programmes of developing countries only. They further stressed that the developing countries should assume full responsibility for the execution of projects funded by the United Nations system in order to ensure that they are managed in an

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integrated manner, to strengthen national capacities and to ensure the long-term sustainability and wide impact of projects in the development process. In this connection, greater flexibility should be allowed the developing countries in their selection of executing entities. Moreover, the Ministers emphasized that the developing countries have the sole responsibility for the programming of operational activities in accordance with their national plans, objectives and strategies for development. In this regard, the Ministers stressed the need for the full implementation of General Assembly resolution 44/211. 24.  The Ministers noted that the supply of energy is vital to the acceleration of growth and development of the developing countries. In this connection, the international community should explore ways and means of overcoming the adverse effects of energy price fluctuations on developing countries. The Ministers also stressed the necessity of developing and utilizing new and renewable sources of energy to effectively address the energy problems of all the countries, particularly those of the developing countries, in accordance with the fundamental objective of the Nairobi Programme of Action. 25.  The Ministers welcomed the establishment of the secretariat and the Special Fund of the International Decade for Natural Disaster Reduction and called upon member States of the United Nations and member countries to make generous contributions to this Fund, to allow the secretariat to attain the objectives assigned to the Decade. 26. The Ministers reaffirmed the special needs and vulnerabilities of the Least Developed Countries and called for continued and specific attention of the international community, in particular with regard to commitments on ODA, debt reduction and market access. The Ministers expressed their deep concern over the unabated development crisis in the Least Developed Countries. They noted that during the decade of 1980s the most formidable structural handicaps of LDCs combined with unfavourable external constraints to development continued to seriously impede their socio-economic development. In this context, the Ministers took note of the positive outcomes of the Second United Nations Conference on Least Developed Countries held in Paris from 3 to 14 September 1990 which adopted a new programme of action identifying the areas for national efforts and specific international support measures required to help the LDCs. The Ministers expressed their firm conviction that the international community would continue to pay serious attention to the special needs of the Least Developed Countries fully implementing the commitment undertaken in the new programme of action with regard, among others, to ODA, debt reduction, market access and commodities. 27.  The Ministers reiterated the need to address the specific problems and needs of land-locked developing countries, particularly with regard to reducing the costs of their access to and from the sea and world markets, improving the quality, efficiency and reliability of transport facilities, diversifying their economies and increasing financial resources and technical cooperation to promote the above-mentioned activities. In this context, the Ministers stressed the need and importance of cooperation between land-locked and transit developing countries. 28.  The Ministers noted that the specific problems of island developing countries and the growing incidence of natural disasters retarded their growth and development and increased their susceptibility to economic impulses from the global economic environment. The need for the international community, particularly the donor countries and the United Nations system to address the specific problems of the islands developing countries was therefore emphasized. 29.  The Ministers stressed that despite efforts undertaken by developing countries to promote economic and technical co-operation among themselves, the objectives set forth by the Caracas Programme of Action on ECDC needed to be further pursued and accomplished. In this context, they called upon the donor countries as well as United Nations organizations in all their programmes to extend their support to theses efforts to strengthen the collective sufficiency of the developing countries.

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30.  The Ministers expressed their appreciation to the South Commission on the conclusion of its work. The Ministers took note of the report entitled ‘Challenge to the South’ of the South Commission and agreed to bring the report to the attention of the forty-fifth session of the General Assembly. 31.  The Ministers noted with grave concern that the Arab territories in Palestine, Syrian Golan and parts of southern Lebanon are still under Israeli occupation which deprives their people of their land and the sovereignty over their natural resources, thus impeding their economic and social development. In this context, the Ministers affirmed the urgent need to see the termination of this occupation. 32.  The Ministers called upon the international community to adopt urgent and effective measures in order to eliminate the use of coercive measures, which have been on the rise and have taken new forms, including blockades, embargoes, and the freezing of assets of developing countries which have not been authorized by the competent organs of the United Nations. 33.  The Ministers viewed UNCTAD VIII, to be held in Latin America in 1991, as an important opportunity to agree on policies and measures in the foregoing areas, with the objective of accelerating the growth and development of developing countries and thus contributing to a healthy, secure and equitable world economy. They expressed the hope that UNCTAD VIII would advance understanding, action and co-operation in those areas and also result in a strengthened role for UNCTAD. They looked forward to concerting their efforts towards these ends at their regular ministerial meeting in preparation for the Conference.

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15.  Fifteenth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 30 September 1991 a.  Ministerial Declaration 1.  The fifteenth annual meeting of the Ministers of Foreign Affairs of the Group of 77 was held in New York on 30 September 1991. 2.  The Ministers welcomed the admission to membership of the United Nations of the Democratic People’s Republic of Korea, the Republic of Korea, Federated States of Micronesia and the Republic of the Marshall Islands, as well as Estonia, Latvia and Lithuania. The admission of these new members strengthens the ideal of universality of the United Nations. 3.  The Ministers took note with appreciation of the results of the Tenth Ministerial Conference of the Non-Aligned Movement held in Accra, Ghana, from 2 to 7 September 1991. 4.  The Ministers welcomed the Special High-Level Meeting of the Economic and Social Council held in Geneva on 4 to 5 July 1991 on the subject: ‘Impact of the recent evolution of East-West relations on the growth of the world economy, in particular on the economic growth and development of the developing countries, as well as on international economic cooperation’, and the useful contribution to the preparation of this meeting from the Colloquium held in Algiers from 4 to 6 May 1991. The Ministers noted with satisfaction the assurances given by the developed countries and multilateral financial institutions that assistance given to the Eastern European countries would not be at the expense of the developing countries. 5.  The Ministers expressed grave concern over the continuing deterioration of the economic and social situation in most developing countries, which is due largely to the adverse international economic environment. The Ministers also noted with concern that the inadequate fiscal and monetary policies of the major industrialized countries continue to have a serious adverse impact on the prospects for growth and development in the developing countries. They urged that the tendency towards the marginalization of the developing countries should be reversed and that conditions be created to spur growth and development on a wide front, particularly in developing countries. 6.  The Ministers reiterated that recent developments in the international political and economic scene have strengthened their resolve to implement the goals and objectives of the Group of 77 as enunciated in past Ministerial Declarations, in particular the Caracas Declaration of June 1989. 7.  The Ministers expressed concern at the concerted effort being made to introduce conditionalities -political, social and economic—in redefining the basis for international economic cooperation. The Ministers stressed that the development path followed by a country is a product of a complex interplay of historic, social, geographic and cultural factors. Each country has to define for itself its national goals, objectives and priorities in its struggle to eradicate poverty and accelerate growth and development, in the full exercise of its sovereign rights. The Ministers stressed that the role of international cooperation is to support and supplement the national efforts of developing countries. In this connection, the Ministers questioned the assumptions underlying the methodology of a recent development publication of a United Nations agency, which seeks to impose a uniform perspective of growth and development oblivious to the diversity and uniqueness of each country. 8.  The Ministers underlined the importance and relevance of the landmark resolutions adopting the declaration of the Eighteenth Special Session of the General Assembly on International Economic Cooperation, in particular the Revitalization of Economic Growth and Development

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of the Developing Countries, and the International Development Strategy for the Fourth United Nations Development Decade. They reiterated the need for political will on the part of developed countries for the effective implementation of their commitments embodied in these resolutions. 9.  The Ministers reiterated that in an increasingly interdependent world the goals of sustained economic development of developing countries are overwhelmingly dependent on a favorable international economic environment. The Ministers expressed their view that the emerging global economic order should provide for more equitable economic opportunities for all nations, important features of which should be the strengthening of a free, open and non-discriminatory multilateral trading system, effective macroeconomic coordination, and fiscal discipline to ensure stable conditions conducive to development in the world economy. In this context, the coordination of international macroeconomic policies should be broadened to take into account the concerns of all countries, in particular developing countries. Such coordination should be directed towards global economic growth and social development so as to achieve equitable distribution of the fruits of progress through an expanded world economy. 10.  The Ministers recognized that economic and social development is a goal, which is also an essential element for ensuring lasting peace and security. Noting the recent changes, which have occurred in the international political situation, they stressed that the economic development of developing countries has become more urgent than ever in order to achieve an equitable and universal new international economic order. In this connection, they reaffirmed that there is an urgent need to resume the North-South dialogue on a constructive basis as an instrument for the promotion of the economic growth and development of developing countries. 11.  The Ministers welcomed the proposal of the Secretary-General of the United Nations for an international conference on the financing of development and expressed the hope that this proposal would be given concrete shape during the forty-sixth regular session of the General Assembly. 12.  The Ministers noted the role of the United Nations in the promotion of peace and security and emphasized the need to make the United Nations system more responsive to the development needs, objectives and priorities of the developing countries. 13.  The Ministers took note of the measures for reform and restructuring of the United Nations in the economic, social and related fields and reiterated the important role of the United Nations in international economic cooperation in promoting the development of developing countries and resolved to strive to make the United Nations more democratic, effective and efficient to enable the Organization to meet new challenges. In all its intergovernmental structures the United Nations must promote a more equitable and balanced representation of its members to reflect its increased membership and the ideal that its decision-making process be made more democratic and transparent. 14.  In regard to the agenda item of the United Nations General Assembly on the strengthening of coordination of humanitarian emergency assistance, the Ministers stressed that the discussion and outcome should be based on a clear definition of the types of emergency situations, on respect for the fundamental principles of national sovereignty, on the basis of the request and consent of the affected country, on the allocation of new and additional financial resources for this purpose, taking into consideration the existing structure within the U.N. system in this field, and bearing in mind United Nations General Assembly resolutions in this regard. To this end, they stressed the need for a concerted effort by the developing countries to coordinate and harmonize their position on this item.

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15.  The Ministers emphasized that the problem of the external debt and debt servicing of developing countries continues to impose severe constraints on their economic growth and development. The servicing of this huge external debt has drained badly needed resources for investment. It has also led to a situation where every year there is an increasing net transfer of resources from developing to developed countries. The response of the international community to the debt problem has been sporadic, piecemeal and inadequate. The Ministers stressed that only a comprehensive and durable solution to the external debt problem which would take into account the need to significantly reduce the stock and service of all types of debt to all types of debtor countries and include anticipatory measures to prevent the proliferation of the debt problem, would lead to the alleviation of this burden on the developing world. In the absence of such measures the efforts being made by developing countries for their accelerated development would be thwarted and bring in its wake the greater risk of social and political turmoil. In this respect, the Ministers emphasized that a durable solution must include strengthening and liberalization of the international trading system as the most important source of real growth and development and, therefore, of the resources necessary for debtor countries to face their financial obligations. They also took note of recent debt reduction measures and initiatives as an important step towards a durable solution of the external debt problem, and emphasized the need for similar arrangements to be extended to all indebted developing countries. At the same time they reiterated the advisability of seeking innovative and creative ideas for the solution of the external debt problem in an International Advisory Commission on Debt and Development under the aegis of the SecretaryGeneral of the United Nations. 16.  The Ministers emphasized that concessional finance is vital for developing countries. They urged developed countries to work towards realizing their commitment of attaining the internationally agreed target of 0.7 per cent of GNP as official development assistance. 17.  The declining flow and scarcity of resources, the Ministers reiterated, was a matter of grave concern. In this connection, they noted that commercial financial flows to developing countries have virtually come to a halt. Moreover, the flow of foreign direct investment to developing countries has declined and in the past decade foreign direct investment has been predominantly directed towards the triad—EEC, Japan and North America. While a large number of developing countries have taken important measures for reform and liberalization of their economies, these efforts have not been matched by a corresponding increase in the level of foreign direct investment in these countries. 18.  The Ministers reiterated that the present international monetary system which is based on the dominant role of the major developed countries is in need of reform. They expressed serious concern over the lack of progress in efforts to effect meaningful reform and to restructure the international monetary and financial system. The International Monetary Fund should ensure efficient multilateral surveillance particularly over balance of payments trends and exchange policies of the major developed countries. They called for a broadening of participation in the process of coordination of global economic and monetary policies. 19.  The Ministers reiterated their conviction that a free, open and nondiscriminatory international trading system is necessary for the economic prosperity and development of all countries especially the developing countries. They noted with concern that world trade with regard to the products exported by developing countries continued to be characterized by market instability, a sharp and continuous decline in prices of those products, restricted access to the markets of developed countries and upsurge of protectionism, unfair competition, production and export subsidies by developed countries and in some cases price-fixing by some transnational corporations. The Ministers agreed that international trade will function best in an environment of growth and dynamism in the world economy. There is a need for policies and measures to be directed in the first place to arresting and reversing negative trends particularly those apparent in

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the last decade. International organizations in the field of trade should be strengthened to play their part in the achievement of these objectives. The strengthening of the trading system also requires the resolution of a number of ongoing issues, some of which are of special interest to developing countries and are crucial to the development process. 20.  The Ministers reaffirmed their commitment to a successful conclusion of the Uruguay Round of trade negotiations within the GATT so as to avoid the negative consequences of failure, which would surely fall upon developing countries. Only an early, fully comprehensive and balanced outcome of the negotiations, taking into account the interests of all parties, specially the needs and concerns of developing countries can ensure a new era of growth for the world as a whole. To that end, they particularly urged the developed countries to comply with the commitments undertaken in the Punta del Este Declaration and at the Ministerial Meetings of Montreal and Brussels, and called upon all developing countries to strengthen their mutual understanding and solidarity in the negotiating process of the Uruguay Round. 21.  The Ministers reaffirmed the important role of UNCTAD, with its universal character and its development mandate, in international economic cooperation and in forging multilateral solutions in the interconnected areas of money, finance, trade, commodities and development. The Ministers expressed concern that the commitments undertaken in the Final Act of UNCTAD VII have not been adequately implemented. They noted that UNCTAD VIII, to be held in Colombia, in 1992, will take place at a singularly complex juncture, involving both opportunities and challenges for advancing international cooperation for development. UNCTAD VIII, with its development oriented agenda, will provide a privileged opportunity to restore a fruitful dialogue on development taking into account global political, economic and technological changes of the recent past and the close interrelationship between inter alia trade, investment, technology and sustainable development. The Ministers strongly hoped that their partners from the developed world would use the unique opportunity of UNCTAD VIII to achieve a maximum positive action-oriented outcome. The concrete results of the Conference will breathe new life into the development dialogue, give a much needed impetus to multilateral economic cooperation and impart fresh vigor to UNCTAD’s work on national and international policy-making. The Ministers reaffirmed the continuing validity of the UNCTAD mandate and considered that the strengthening of UNCTAD in its three basic functions  – global analysis, conceptual innovation, policy coordination; negotiations; and technical assistance- will be instrumental to the revitalization of the development process of the developing countries. 22.  The Ministers expressed their concern that the persistent commodity problems caused by the deterioration in the terms of trade and increased protectionism have adversely affected commodity-exporting developing countries. They stressed the exceptional importance that international trade in commodities has for the world economy and in particular their dominant influence on the development of the majority of developing countries. They stressed the need for the international community to support developing countries in their efforts to improve processing, marketing, distribution and transportation of commodities so as to continue the process of diversification and restructuring of their economies. 23.  The Ministers reaffirmed the importance of the Integrated Programme of Commodities and to this end noted the commodity development programmes of the Common Fund for Commodities, which go a long way in facilitating technological innovation to meet the challenges of substitution and competitiveness posed by the rapid achievements of science and technology. The Ministers called upon all countries that have ratified the Agreement establishing the Common Fund to ensure that both accounts of the Common Fund become fully operational as soon as possible. They also urged those countries who have not yet ratified the Agreement to rethink their

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position. The Ministers called upon the international community to increase funding for the Common Fund for Commodities. 24.  The Ministers observed that only one international commodity agreement is in force in economic terms. The Ministers called for an early renegotiation, reactivation and revitalization, as appropriate, of international commodity agreements to enhance price support measures for developing countries dependent on the export of commodities. 25.  The Ministers stressed that science and technology is crucial for the promotion of economic growth and development of developing countries. The benefits of science and technology can be optimized by jointly promoting and strengthening endogenous capacities of developing countries and by evolving effective modalities for the access to and transfer of technology on concessional and preferential terms. The Ministers expressed concern at the increasing trend to hinder the free flow of technology to developing countries. These measures, whether unilateral or multilateral, widen the chasm between developed and developing countries and are contrary to the principles of free trade and not in consonance with the basic aim of promoting development in the developing countries by increasing efficiency and competitiveness. 26.  The Ministers noted that no significant progress has been made in the implementation of the Vienna Programme of Action on Science and Technology for Development adopted in 1979. In this context, they called on all countries, especially developed ones as well as on the international development institutions, to seriously consider the establishment of a United Nations financing system for science and technology for development as envisaged in the Vienna Programme of Action. 27.  The Ministers reaffirmed that food and agriculture, inter alia, adequate production and food security, have special importance in the development of developing countries. They highlighted the importance of ensuring developing countries’ access to markets in the context of a full liberalization of agricultural trade and the supply of the inputs necessary for production, taking into consideration the interests of the net food importing developing countries. They also stressed that an increase in agricultural production in developing countries can be a basis for industrial growth and diversification of their economic structure. The Ministers called upon the international community particularly the Food and Agriculture Organization of the United Nations, to closely monitor further development in the global food situation with a view to responding adequately and timely to the needs of developing countries. The Ministers called on all donor countries to ensure the maintenance of food assistance and to increase its share of aid channeled through the World Food Programme to enable the Programme to continue its activity in support of development and in meeting emergency food needs of developing countries. The Ministers reaffirmed that the right to food is a universal human right and should be guaranteed to all people and should not be used as an instrument of political pressure. 28.  The Ministers reiterated that the adequate supply of energy is vital to the acceleration of growth and development of the developing countries. The Ministers called upon all countries to assist the developing countries in developing their energy resources. The international community should explore ways and means of overcoming the adverse effects of energy price fluctuations on developing countries. In view of their crucial importance for all countries, it is necessary to develop new and renewable sources of energy in accordance with the objectives of the Nairobi Programme of Action. 29.  The Ministers expressed deep concern over the continued deterioration of the economic and social situation in the least developed countries. They further noted that over the past decade most of the least developed countries have experienced negative growth rates and suffered from inadequate international development assistance to implement their programmes of economic development and structural transformation. The Ministers expressed their appreciation to many developed and other countries and to international organizations for their contribution to

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mitigating the exceptionally grave situation in the least developed sub-Saharan countries, and emphasized that this drive should be continued and expanded. Referring to the serious vulnerabilities of the least developed countries, the Ministers reaffirmed the special needs of these countries and called for full implementation of the Programme of Action for the Least Developed Countries for the 1990s as well as other concrete measures in specific areas considered important to spur growth and development in these countries on a sustained basis. 30.  The Ministers reaffirmed that people are central to all development activities and that human resource development is an essential means of achieving economic and social development goals. They urged that the development of human resources should be undertaken in an overall, well conceived and integrated approach, taking into account such areas as health, nutritional improvements, education and training as well as creating more opportunities for employment. In this regard, human resource development should be designed for purposes of realizing the potential capabilities, skills and self reliance to meet the growing manpower requirements of the developing countries. 31.  The Ministers emphasized the importance of achieving adequate levels of industrialization in developing countries as one of the main ways to assure the reactivation of their economic growth and development. They pointed out the necessity to properly assist the different stages of industrialization of developing countries. They noted that the target established at the Lima Conference of 25 per cent of world manufacturing value added is far from being achieved by the developing countries. They called for the application of the principle of comparative advantage for the phasing out of industrial units in the developed countries in areas in which the developing countries’ industries are more efficient and to this end called upon developed countries to eliminate protectionist measures in support of their uncompetitive industries. 32.  The Ministers expressed concern over the continued deterioration of the economic situation in most African countries. They noted that Africa’s dependence on few commodities for its export income, the declining terms of trade for commodities and the mounting debt burden have created a vicious circle from which it has become very difficult for Africa to extricate itself. Africa’s external debt has increased considerably since 1982 and currently stands at over $270 billion dollars. The Ministers drew the attention of the international community that five years after the adoption of the United Nations Programme of Action for African Economic Recovery and Development (UNPAAERD) by the U.N. General Assembly, the economic crisis facing African countries presently has not significantly been any different from what it was. In view of the critical economic situation in Africa, the Ministers appealed to the international community to give adequate support to the implementation of a new agenda of international economic cooperation with Africa for the 1990s, designed to achieve the accelerated transformation, integration and growth of the African economies based on measurable goals and targets within a well defined time frame and with built-in monitorable performance criteria. 33.  The Ministers recalled all previous decisions of the Group of 77 concerning the land-locked developing countries and noted with concern that the measures taken so far have not been sufficient to tackle the serious problems faced by these countries. They reiterated the need to address the specific problems of these developing countries with regard to reducing the costs of their access to and from the sea and world markets. They stressed the need for the international community to assist and improve the quality, efficiency and reliability of transport facilities, diversify their economies and increase financial resources and technical cooperation to promote the above mentioned activities. In this context, the Ministers stressed the need and importance of cooperation between landlocked and transit developing countries. 34.  The Ministers recognized the acute problems faced by island developing countries arising from their small size, remoteness, high exposure to natural disasters, limitations in transport and communications, great distances from market centers, limited availability of fresh water, heavy

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dependence on imports, depletion of their non-renewable resources and shortage of administrative personnel. They noted that the specific problems of island developing countries and the growing incidence of natural disasters retarded their growth and increased their susceptibility to the hostile economic environment, and expressed the need for the international community, particularly the donor countries and the United Nations system to address the specific problems of these island developing countries. 35. The Ministers reaffirmed the principles of universality, multilateralism, voluntary/grant nature, neutrality, non-conditionality and flexibility in meeting the technical cooperation requirements of developing countries. The Ministers pointed to the importance of meeting increasing resource needs of developing countries in regard to the operational activities for development. They stressed that the way to achieve this objective is through substantial and urgent increase in real terms of the overall level of resources for operational activities for development of the United Nations system on a continuous, predictable and assured basis bearing in mind the special needs of the LDCs. They further stressed that the developing countries should assume full responsibility for the execution of projects funded by the United Nations system in order to ensure that they are managed in an integrated manner, to strengthen national capacities and to ensure the long-term sustainability and wide impact of projects in the development process. In this connection, greater flexibility should be allowed the developing countries in their selection of executing entities. Moreover, the Ministers emphasized that the programming of operational activities must be in full accord with the priorities, objectives, national plans and development strategies of developing countries, who are solely responsible for their definition. In this regard, the Ministers stressed the need for the full implementation of General Assembly resolution 44/211. 36.  The Ministers noted that rapid population growth in developing countries may be a constraint on their development efforts. The international community should support the national policies and programmes of all countries, especially developing countries, taking into account the sovereign right of all countries to formulate, adopt and implement their population policies, mindful of their culture, values and traditions, as well as their social, economic and political conditions. Such population programmes should be accompanied by improvements in the quality of human resources and expansion of job opportunities. In this regard, the Ministers welcomed the convening of the International Conference on Population and Development in 1994. 37.  The Ministers noted with great concern the refusal of Israel to comply with U.N. resolutions to put an end to its occupation of Arab territories in Palestine, Syrian Golan and parts of Southern Lebanon, and the continuation of the Israeli occupation authorities in establishing settlements in those territories and bringing in new Jewish immigrants depriving the indigenous people of their land and sovereignty over their natural resources, thus impeding their economic and social development and the peace process in the Middle East. In this context, the Ministers affirmed the urgent need to see the termination of this occupation. Taking into account the recent developments on the Middle East question, the Ministers called for a halt to these settlements activities and the removal of these settlements from all occupied Arab territories. 38.  The Ministers noted the evolving situation in South Africa, which has so far led to the repeal of some major apartheid laws. Taking into account the on-going efforts to end violence in South Africa, the Ministers called for more initiatives to address the undemocratic constitution that is now in place. In this regard the Ministers supported the call to speed up the process of negotiations through the establishment of appropriate interim measures to oversee the period of transition to a democratic South Africa as well as the convening of a democratically elected Constituent Assembly to draft a new constitution. The Ministers, noting that the current level of changes in South Africa are not yet profound and irreversible, further noted the necessity of maintaining pressure against South Africa in order to expedite the initiation of real negotiations. The Ministers further called for continued assistance to the democratic forces in South Africa.

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39.  The Ministers called upon the international community to adopt urgent and effective measures to eliminate the use of coercive economic measures, in particular against developing countries, as a means of forcibly imposing the will of one state on another, a trend which persists and has taken new forms, as evident in blockades, embargoes and the freezing of assets of developing countries. The Ministers noted that these coercive measures have not been authorized by the relevant organs of the United Nations. 40.  The Ministers expressed their support for resolution 13/2 adopted at the thirteenth session of the Commission on Human Settlements and endorsed at the second regular session of the Economic and Social Council in 1991, that it is highly opportune to convene, possibly in 1997, a United Nations conference on human settlements (HABITAT II) to review past policies and decide on a strategy and guidelines for future action. Planning and development of human settlements can greatly enhance social and economic development, and thereby contribute to alleviating poverty and promoting sustainable development. 41.  In the context of the restructuring and revitalization of the United Nations in the economic, social and related fields, the Ministers welcomed the establishment of the new United Nations Drug Control Programme and expressed their desire that the programme be strengthened. 42.  The Ministers reiterated the importance of social matters within the system of the United Nations. They stressed the need for a concerted effort by developing countries to coordinate and harmonize their positions in this area. In this regard, the Ministers welcomed the possibility of convening a world summit for social development. 43. The Ministers stressed the historic importance of the United Nations Conference on Environment and Development to be held in Rio de Janeiro, Brazil, in June 1992. The holding of this Conference has raised expectations, particularly in developing countries, that environmental issues and development will be treated in an integrated manner, and the hope of all citizens on our planet for a sustainable lifestyle in a clean, safe and healthy environment. 44.  The Ministers reaffirmed the provisions, which include commitments, principles and objectives, contained in General Assembly resolution 44/228 and stressed that these should be integrated in the outcome of the United Nations Conference on Environment and Development. They reiterated that international cooperation should support and supplement national policies and efforts of developing countries in pursuance of their sustainable development. Any meaningful participation of developing countries in international efforts regarding the protection and enhancement of the environment is dependent upon the revitalization of their growth and development. 45.  The Ministers highlighted the strains to the environment being imposed by unsustainable patterns of production and consumption in the developed countries. The developed countries have the main responsibility for environmental degradation and must take remedial action accordingly. 46.  In this regard, the Ministers emphasized that new and additional financial resources should be made available to the developing countries and that environmentally sound technologies must be transferred to them on preferential and non-commercial terms to enable them to address environmental concerns. 47. The Ministers stressed the importance of the final stages of the preparatory process for UNCED, in particular PREPCOM IV, which should reach final decisions on all issues for recommendation to UNCED 1992. They expressed the hope that the outcome of the Conference, embodying a declaration of principles, programme of action, a framework convention on climate change, a convention on biological diversity and suggestions for institutional arrangements, would be balanced and match the expectations, particularly in developing countries, raised by this Conference.

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48.  The Ministers stressed that in addition to efforts undertaken by developing countries to promote economic and technical cooperation among themselves, the objectives set forth by the Caracas Programme of Action on ECDC need to be further pursued and accomplished. In this context, they called upon donor countries as well as the United Nations organizations in all their programmes to extend their support to these efforts to strengthen the collective self-reliance of the developing countries. The Ministers also stressed the importance of urgent consideration of the implementation of the recommendations contained in the South Commission report ‘The Challenge to the South’. 49.  The Ministers took note of the postponement of the Eighth Meeting of the Intergovernmental Follow-up and Coordination Committee on ECDC (IFCC-VIII), which was scheduled to take place in September 1991. In this connection, the Ministers requested the Chairman of the Group of 77 in New York to immediately undertake the necessary consultations with Member States to find a host for the meeting. In the event that no offer to host the meeting is received by the end of April 1992, the Chairman of the Group of 77 is expected to undertake the necessary measures for convening IFCC-VIII at a suitable date, preferably in August 1992 in one of the regional commissions or in New York.

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16.  Sixteenth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 1 October 1992 a.  Ministerial Declaration 1.  The sixteenth annual meeting of the Ministers of Foreign Affairs of the Group of 77 was held in New York on 1 October 1992. 2.  The Ministers welcomed the admission to membership of the United Nations of Armenia, Azerbaijan, Bosnia and Herzegovina, Croatia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, San Marino, Slovenia, Tajikistan, Turkmenistan and Uzbekistan. The admission of these new members strengthens the ideal of universality of the United Nations. 3.  The Ministers also welcomed the admission of the Republic of the Marshall Islands as full member of the Group of 77. 4.  The Ministers reaffirmed the Tehran Declaration: Towards a New Partnership for Development, adopted by the Seventh Ministerial Meeting of the Group of 77 on 23 November 1991 held in the Islamic Republic of Iran to prepare for UNCTAD VIII. 5. The Ministers welcomed the results of the Tenth Conference of the Heads of State or Government of the Non-aligned countries held in Jakarta from September 1–6, 1992, and noted their importance for the forty-seventh session of the General Assembly.

Introduction 6.  The Ministers for Foreign Affairs of the Member States of the Group of 77 agreed that the widening gap between developed and developing countries is one of the most urgent problems threatening the international community and that the present juncture in history is a defining moment which provides a unique opportunity for strengthening international cooperation for development. 7.  They stressed that urgent concerted efforts by the whole of the international community are necessary to put into practice in the international economic system the agreements and commitments reached in the economic, social and related fields of the United Nations system. 8.  The Ministers highlighted the efforts being undertaken by their own countries towards these goals and called upon developed countries to exert the necessary political will to fulfil their obligations in this regard, thus creating the conditions necessary for economic and social development for all peoples. 9.  The Ministers, reaffirming their abiding commitment to the purposes and principles enshrined in the United Nations Charter and the internationally accepted right to development, stressed that the United Nations system has a vital role to play in the attainment of key development objectives, especially in the developing countries. In this context, they stressed the importance of concerted efforts to enhance the capacity and the effectiveness of the United Nations system in order to make it more responsive to the development needs, priorities and objectives of the developing countries.

Economic and social environment 10.  The Ministers underlined that with increasing interdependence of nations, the increasing globalization, the worldwide movement towards market-oriented reform, the goal of sustained

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economic development of developing countries is overwhelmingly dependent on a favorable international economic environment. The promotion of economic growth and development through international cooperation will enable the attainment of the welfare of the present and future generations of mankind and will also bring rich dividends in strengthening peace and security. 11.  The Ministers expressed grave concern over the continuing deterioration of the world economy, in particular, the economic and social situation in most developing countries which is due largely to the prevailing international economic environment which remains heavily weighted against the developing countries. Efforts by the developing countries to foster growth and development continue to be frustrated by denial of market access, the disturbing trend in the negative flow of global financial resources, insufficiency of foreign investment flows, a crushing debt burden, restrictions on the transfer of technology and the inequities in the global, monetary, financial and trade systems. These factors have further compounded the predicament of the Least Developed Countries. They urged that the tendency towards the marginalization of the developing countries should be reversed and in this context, stressed that a high-level political agreement between the developed and developing countries is required to redress this situation. They reaffirmed that there is an urgent need to resume the North-South dialogue on a constructive basis as an instrument for the promotion of the economic growth and development of developing countries in order to achieve a just and equitable international economic order. 12.  The Ministers expressed their view that the emerging global economic order should provide for more equitable economic opportunities for all nations, important features of which should be the strengthening of a free, open and non-discriminatory multilateral trading system, effective macro-economic coordination, and fiscal discipline to ensure stable conditions conducive to development in the world economy. In this context, the coordination of international macroeconomic policies should be broadened to take into account the concerns of all countries, in particular developing countries. Such coordination should be directed towards global economic growth and social development so as to achieve equitable distribution of the fruits of progress through an expanded world economy. The trend towards new and often unrelated conditionalities must be reversed. 13.  The Ministers noted that the recent positive changes in the political sphere have opened a real opportunity for social and economic issues to be addressed in a more comprehensive way. In this context, they reaffirmed the importance and continued validity of the Eighteenth Special Session Declaration, the International Development Strategy for the Fourth Development Decade, the Cartagena Commitment of UNCTAD VIII, the United Nations New Agenda for the Development of Africa (UN-NADAF), the Programme of Action for the Least Developed Countries for the 1990s and the various consensus agreements and conventions, especially Agenda 21, which were adopted during UNCED process. The Ministers reiterated the need for political will on the part of developed countries for the effective implementation of their commitments embodied in relevant documents, particularly in the areas of financial resources and transfer of technology. 14.  The Ministers noted that in the years ahead different facets of the developmental consensus will be discussed during the forthcoming conferences, namely the International Conference on Population and Development, the Conference on Human Rights, the World Conference on Women and the envisaged Summit on Social Development. The Ministers underlined the importance of the convening of an international conference on the Financing of Development. 15.  They expressed concern that the increasing needs of Central and Eastern Europe and the newly independent States for external resources are affecting the availability of resources to the developing countries. In this context, the Ministers recalled the assurances given by the developed countries and the multilateral financial institutions during the High-level Meeting of ECOSOC held in Geneva on 4–5 July 1991 that assistance to be given to the Central and Eastern

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European countries would not be at the expense of the developing countries. The Ministers stressed that those needs should be met from additional resources and not at the expense of resources earmarked for the developing countries.

ECOSOC and restructuring 16.  The Ministers welcomed the holding of a High Level Segment in a revised format with Ministerial participation at the 1992 Substantive Session of Economic and Social Council from July 6–8, 1992. 17.  The Ministers took note of the measures for restructuring and revitalization of the United Nations in the economic, social and related fields and resolved to make the United Nations more democratic, effective and efficient to enable it to meet new challenges. They reaffirmed that in this context, General Assembly resolution 45/264 provided the guiding principles and guidelines for the successful outcome of this important exercise and must continue to be the basis of reference for further steps in such process. This effort should also take into account the thrust and principles contained in S-18/3 adopted at the Eighteenth Special Session of the General Assembly, resolutions 45/199 and 46/235 and other relevant resolutions. They stressed that the restructuring and revitalization endeavours must preserve the democratic principles which underpin the decision making process of the United Nations.

International Trade 18.  The Ministers welcomed the successful outcome of UNCTAD VIII as reflected in the final document, ‘A New Partnership for Development: The Cartagena Commitment’, and stressed the importance of its expeditious and effective implementation. They reiterated their conviction that a free, open, transparent, rule-based and non-discriminatory international trading system can provide an effective and viable basis for the promotion of equitable development and economic prosperity of all countries. 19.  The Ministers identified freer access to the developed countries’ markets as an indispensable means of taking full advantage of international trade which they consider as the most important vehicle for advancing the economic growth and sustaining the momentum of development of the developing countries. In pursuit of these central objectives the developing countries have initiated various supportive trade policy measures including the adoption of unilateral trade liberalization measures. The Ministers expressed the hope that the emerging regional trading arrangements are open and transparent so as to contribute towards enhancing multilateral trade and cooperation. Moreover, developed countries are resorting increasingly to unilateral protectionist measures in clear violation of the rules of international trade. They further observed that it was ironic that these protectionist measures are taking place at a time when the developing countries have accepted the need to liberalize their trade regimes and to integrate their economies in the global system of trade and finance. 20.  The Ministers called for the successful and balanced outcome of the Uruguay Round of Multilateral Trade Negotiations at the earliest. A principal objective of developing countries in these negotiations is to bring about further liberalization and expansion of world trade through, inter alia, the dismantling of protectionist measures specially the discriminatory restrictions imposed on certain exports of the developing countries. Although the main thrust of these negotiations has in recent months been in respect of new issues, every effort should be made to ensure that the Uruguay Round is concluded by fully taking into account the concerns and interests of developing countries in all sectors. They further noted that if the opportunities afforded by the

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Uruguay Round are missed, it will constitute a severe blow to multilateralism. They therefore called on all countries and in particular the developed countries to resolve their differences speedily and conclude the round of negotiations in a transparent, balanced and expeditious manner. In this context, they urged the developed countries to avoid aggravating the severe economic difficulties facing the developing countries by pursuing reprehensive trade practices, including corrupt practices. They called for an early adoption of a binding international instrument aimed at ending such trade practices.

Commodities 21.  The Ministers emphasized that the dominant feature of the present world commodity economy was that of structurally distorted markets and persistently low and declining real commodity prices. They believed that the solution to the commodity problem called for urgent measures to be taken in conformity with the Integrated Programme for Commodities. They therefore urged that producers and consumers continue to explore ways and means of reinforcing their cooperation. Full and active participation in international commodity agreements and arrangements should be pursued with a view to achieving more efficient international commodity cooperation and assisting the diversification of the economies of commodity-dependent developing countries. There is a sense of urgency to improve market conditions and to achieve higher levels of processing, marketing, distribution and transportation of commodities. Concrete programmes are needed to be drawn up for maximum utilization of the Common Fund for Commodities. The Ministers took note of the proposal for convening an international conference on commodities as well as of the decision by UNCTAD VIII (Cartagena Commitment) to launch a process of consultations on the possibility of convening such a conference.

External Debt of Developing Countries 22.  The Ministers emphasized that the problem of the external debt and debt servicing of developing countries continues to impose severe constraints on their economic growth and development. The servicing of their huge external debt has drained badly needed resources for investment. It has also led to a situation where there is an increasing substantial transfer of resources from developing to developed countries. The response of the international community to the debt problem has been sporadic, piecemeal and inadequate. The Ministers stressed that only a comprehensive and durable solution to the external debt problem which would take into account the need to significantly reduce the stock and service of all types of debt to all types of debtor countries and include anticipatory measures to prevent the proliferation of the debt problem, would lead to the alleviation of this burden on the developing world. In the absence of such measures the efforts being made by developing countries for their accelerated development would be thwarted and bring in its wake the greater risk of social and political turmoil. In this respect, the Ministers emphasized that a durable solution must include strengthening and liberalization of the international trading system as the most important source of real growth and development and, therefore, of the resources necessary for debtor countries to face their financial obligations. They also took note of recent debt reduction measures and initiatives as an important step towards a durable solution of the external debt problem, and emphasized the need for similar arrangements to be extended to all indebted developing countries. They stressed the continued consideration and wider application of innovative measures, such as debt-for-equity swaps, debt swaps for the protection of nature and debt-for-development swaps as contributions towards addressing the external debt problems of all indebted developing countries. Moreover, low income countries which

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have continued to service their debts at considerable sacrifice to themselves must be provided some relief for example in the form of balance of payments support. At the same time they reiterated the advisability of seeking innovative and creative ideas for the solution of the external debt problem.

Monetary and Financial System 23.  The Ministers reiterated that the present international monetary system which is based on the dominant role of the major developed countries is in need of systemic and institutional reform. They expressed serious concern over the lack of progress in efforts to effect meaningful reform and to restructure the international monetary and financial system. The International Monetary Fund should ensure efficient multilateral surveillance particularly over balance of payments trends and exchange policies of the major developed countries. They called upon developed countries to democratize consultations as well as the decision-making process in the multilateral financial institutions so that broadened participation will ensure that the interests and needs of development of developing countries would be adequately represented. 24.  The Ministers noted that a major source of capital flows for the developing countries have been the multilateral financial institutions comprising the World Bank, the International Monetary Fund and the regional development banks. The net transfer from these institutions as a group has been falling off rapidly and in some cases developing countries are facing the prospect of a net transfer financial outflow in favor of these institutions.

Development Finance 25.  The Ministers stressed the failure of the international financial system to furnish adequate development finance over the years, thus leaving the developing countries with serious financial problems. In this context, the Ministers underlined the importance of convening an international conference on Financing of Development. 26.  Sharp contraction in external commercial flows and virtual stagnation in Official Development Assistance (ODA) at less than half the agreed target level of 0.7 per cent Gross National Product, a commitment which they first made nearly 20 years ago, have had a major adverse impact on development prospect. The negative net transfer of resources from the developing countries can also be reduced and reversed by a significant increase in new capital flows to the developing countries. They urged developed countries, which have not done so, to fulfill their commitment of attaining the internationally agreed target of 0.7 per cent of GNP as Official Development Assistance by the year 2000. 27.  The Ministers stressed that the provision of additional, concessional resources to low-income countries is a matter of particular importance. In this context they called for the increase in real terms of resources available under the tenth replenishment of IDA, taking into account the growing needs of low-income countries for concessional finance. Similarly, additional financial flows under the Structural Adjustment Facility (SAF) and the Enhanced Structural Adjustment Facility (ESAF) should provide medium-term concessional flows to low-income countries. They also stressed the importance of achieving the highest possible level for the Fourth Replenishment of the International Fund for Agricultural Development (IFAD).

Foreign direct investment 28.  The Ministers stressed that foreign direct investment was an important source of capital and financial flows to developing countries. In this regard, they called on developed countries to

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encourage such flows, through appropriate measures, to developing countries. They also recognized the vital role TNCs played as a vehicle of foreign investment.

U.N. Operational Activities for Development 29.  The Ministers recognized the need to rationalize the operational arm of the UN system with a view to ensuring greater effectiveness and optimum delivery of programmes. They reaffirmed the principles of universality, multilateralism, voluntary/grant nature, neutrality, non-conditionality and flexibility in meeting the technical cooperation requirements of developing countries. The Ministers emphasized the vital importance of meeting increasing resource needs of developing countries in regard to the operational activities for development. They stressed that the way to achieve this objective is through substantial and urgent increase in real terms of the overall level of resources for operational activities for development of the United Nations system on a continuous, predictable and assured basis bearing in mind the special needs of the LDCs. They further stressed that the developing countries should assume full responsibility for the execution of projects funded by the United Nations system in order to ensure that they are managed in an integrated manner, to strengthen national capacities and to ensure the long-term sustainability and wide impact of projects in the development process. Moreover, the Ministers emphasized that the programming of operational activities must be in full accord with the priorities, objectives, national plans and development strategies of developing countries, who are solely responsible for their definition. Any attempts to impose conditionalities which violate the basic principle of neutrality of multilateral assistance must be rejected. Financial contributions should be untied. The Ministers stressed the need for the full implementation of relevant resolutions of the General Assembly.

Environment and Development 30.  The Ministers stressed that the environment is the common concern of all humanity and therefore its problems should be redressed through multilateral cooperation, based on common but differentiated responsibilities, common endeavours and a balanced perspective. Such cooperation should ensure that protection of the environment, economic growth and development, and poverty eradication be mutually reinforcing. Therefore, it is imperative that environmental and developmental concerns must be integrated. Towards this end, they urged that all states cooperate in promoting a supportive and conducive atmosphere that would result in sustained economic growth and development for all countries. The developed countries having acknowledged the main responsibility that they bear in the international pursuit of sustainable development, in view of the pressures their societies place on the global environment and because of the technologies and financial resources they command must fulfil their responsibility. 31.  The Ministers also stressed that the lasting solution to the global environmental problems lies in the concept of sustainable development. While sustainable development has been recognized by the international community, the challenge remains to translate this concept into workable strategies and policy measures that can gain the support of all. The Ministers reiterated the need for political will on the part of developed countries for the effective implementation of their commitments embodied in Agenda 21, particularly in the areas of financial resources and transfer of technology. 32.  The Ministers were of the view that the developing countries have the sovereign right to use their own natural resources in keeping with their developmental and environmental objectives and priorities. They therefore urged developed countries and international institutions not to use environmental considerations or conditionalities as an excuse for interference in the internal affairs of the developing countries, nor should this be used to introduce any forms of conditionality in aid or development financing, or to impose trade barriers affecting the export and development effort of the developing countries.

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33.  While welcoming the outcome of the UNCED in Rio de Janeiro, the Ministers emphasized that the results will only be meaningful if adequate, new and additional financial resources are to be made available for the implementation of the Programme of Action of Agenda 21. They noted the reaffirmation of the commitments of developed countries to achieve UN target of 0.7 per cent of GNP for ODA and, to the extent that they have not yet achieved that target, agreed to augment their aid programmes in order to reach that target as soon as possible or by the year 2000. In this context, they also stressed the imperative need for the developed countries and multilateral financial institutions to implement these commitments by granting adequate development assistance to developing countries. 34.  They also welcomed the recommendation to the UN General Assembly on the establishment, in accordance with Article 68 of the Charter, of a High Level Commission on Sustainable Development. This Commission would help enhance international cooperation for sustainable development and also, on a priority basis, monitor financial and technology flows to developing countries. By monitoring the implementation of programmes in developed countries it would be possible to ensure the adequacy of the environmental space required by the developing countries for their economic and social advancement. They believed that the Commission should be convened as soon as possible in order to ensure that the follow-up of the Rio Conference will meet the expected hopes and aspirations of all countries. In this regard, the Ministers welcomed the decision taken at the UNCED at Rio de Janeiro of convening a pledging conference for initial commitments by the developed countries to be held during the forty-seventh session of the General Assembly and expressed the hope that developed countries would make significant commitments to this end. 35.  The Ministers welcomed the decision of the United Nations Conference on Environment and Development aimed at the adopting of an international Convention to combat desertification, in particular in Africa. They stressed the importance of the establishment by the forty-seventh session of the United Nations General Assembly of an open-ended intergovernmental negotiating Committee for the elaboration and adoption of such international Convention before June 1994. They called upon the developed countries as well as the relevant International Organizations to pay due regard to the elaboration of this international Convention, which should contain appropriate commitments.

Science and Technology 36.  The Ministers stressed that science and technology is crucial for the promotion of economic growth and development of developing countries. The benefits of science and technology can be optimized by jointly promoting and strengthening endogenous capacities of developing countries and by evolving effective modalities for the access to and transfer of technology on concessional and preferential terms. The Ministers expressed concern at the increasing trend to hinder the free flow of technology to developing countries. They urged the developed countries to improve the access of developing countries to new technologies on fair and reasonable terms and to foster their dissemination and use. 37.  The Ministers urged the continuing implementation of the Vienna Programme of Action on Science and Technology for Development and called on all countries, especially developed ones, as well as on the international development institutions, to consider seriously the reinvigoration of the United Nations financing system for science and technology for development as envisaged in the Vienna Programme of Action. 38.  The Ministers, welcoming the establishment of the Commission on Science and Technology for Development, underlined its important role in promoting science and technology, specially in developing countries.

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Energy 39.  The Ministers reiterated that the adequate supply of energy is vital to the acceleration of growth and development of the developing countries. The Ministers called upon all countries to assist the developing countries in developing their energy resources. The international community should explore ways and means of overcoming the adverse effects of energy price fluctuations on developing countries. In view of their crucial importance for all countries, it is necessary to develop new and renewable sources of energy in accordance with the objectives of the Nairobi Programme of Action. The Ministers welcomed the establishment by the 1992 substantive session of ECOSOC of the Committee on Natural Resources and the Committee on New and Renewable Sources of Energy and Energy for Development.

Industrialization 40.  The Ministers believed that industrialization remains a dynamic instrument of growth essential to accelerating economic and social development particularly in the developing countries. They noted that during the previous decade, world industrial production had been developing unevenly, with some developing countries undergoing a decline in real growth. They pointed out the necessity to properly assist the different stages of industrialization of developing countries. They noted that the target established at the Lima Conference of 25 per cent of world manufacturing value added is far from being achieved by the developing countries. They called for the application of the principle of comparative advantage for the phasing out of industrial units in the developed countries in areas in which the developing countries’ industries are more efficient and to this end called upon developed countries to eliminate protectionist measures in support of their uncompetitive industries. 41.  The Ministers emphasized the imperative need to keep industrialization issues at the center of global attention, and its role in the reactivation of the development of the developing countries.

Food and Agriculture 42.  The Ministers reaffirmed that food and agriculture including, inter alia, adequate production and food security, have special importance in the development of developing countries. They highlighted the importance of ensuring developing countries’ access to markets in the context of a full liberalization of agricultural trade, including progressive reduction of export subsidies in developed countries, and the supply of the inputs necessary for production, taking into consideration the interests of the net food importing developing countries. They also stressed that an increase in agricultural production in developing countries can be a basis for industrial growth and diversification of their economic structure. To that end, they considered that financial cooperation and investment should form part of national policies and programmes for international cooperation. The Ministers called upon the international community particularly the Food and Agriculture Organization of the United Nations, to closely monitor further development in the global food situation with a view to responding adequately and timely to the needs of developing countries. The Ministers called on all donor countries to ensure the maintenance of food assistance and to increase its share of aid channeled through the World Food Programme to enable the Programme to continue its activity in support of development and in meeting emergency food needs of developing countries. The Ministers reaffirmed that the right to food is a universal human right and should be guaranteed to all people and should not be used as an instrument of political pressure. 43.  The Ministers reiterated that within the food and agriculture sector, national food strategies remain a very useful means for advancing food production, food self-reliance and better access

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to food. In this context, they welcomed the efforts being made and assistance provided by the Food and Agriculture Organization, the World Bank, the World Food Programme, the Regional Development Banks, the International Fund Agricultural Development and United Nations Development Programme in this field and encouraged to improve food strategy cooperation and coordination among multilateral agencies. 44.  The Ministers welcomed the Geneva Declaration on the Economic Advancement of Rural Women and called for its implementation. They also welcomed the convening of the forthcoming international conference on nutrition in Rome.

Human Resource Development 45.  The Ministers reaffirmed that people are central to all development activities and that human resource development is an essential means of achieving economic and social development goals. They urged that human resource development should be undertaken in an overall, well conceived and integrated approach, taking into account such areas as health, nutritional improvements, education and training as well creating more opportunities for employment. In this regard, human resource development should be designed for purposes of realizing the potential capabilities, skills and self-reliance to meet the growing manpower requirements of the developing countries. 46.  The Ministers reaffirmed that eradication of illiteracy and providing education for all should remain a top priority with a view to reaching the goal of eradicating illiteracy by the year 2000. In this context the Ministers welcomed the efforts undertaken by UNESCO in various Member States, which have resulted in the decline of worldwide illiteracy rates in real terms. Noting the results of the recently concluded International Conference on Education, the Ministers stressed the need for incorporating the cultural dimension in the educational and development policies being pursued by Member States.

UNDP in the field of Human Development 47.  While welcoming the efforts of UNDP in the field of human development, the Ministers believed that the incursion into areas beyond the mandate and competence of UNDP has proved to be divisive and not constructive. Therefore, they called upon UNDP to strictly observe its mandate and continue its productive activities in assisting developing countries to achieve their development goals, taking into account General Assembly resolutions related to patterns of consumption and qualitative indicators for development.

Social Development 48.  The Ministers further reaffirmed the goals set forth in the United Nations Declaration on Social Progress and Development adopted in United Nations General Assembly resolution 2542 (XXIV) and the need to effectively implement them in order to achieve a more just and equitable social order. They also welcomed with satisfaction ECOSOC resolution E/1992/27 which recommends to the General Assembly the convening of a World Summit for Social Development at the level of Heads of States and/or Government in early 1995.

Population 49.  The Ministers underlined the importance attached to the relationship between population and development and the need for all countries to strengthen the level of awareness of population issues. In this context, the international community should support the national policies and programmes of all countries, especially developing countries, taking into account the sovereign

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right of all countries to formulate, adopt and implement their population policies, mindful of their culture, values and traditions, as well as their social, economic and political conditions. Such population programmes should be accompanied by improvements in the quality of human resources and expansion of job opportunities. In this regard, the Ministers welcomed the planned convening of the International Conference on Population and Development in 1994 in Cairo.

Human Settlements 50.  The Ministers reaffirmed the importance of providing adequate shelter for the well-being of the people. They expressed their keen desire that the forty-seventh session of the General Assembly may take a decision to hold the Second International Conference on Human Settlements (Habitat II) in 1997. In this context, they welcomed the efforts made and assistance provided by UNCHS.

South-South Cooperation 51.  To take a concerted action in the negotiations with the North, it is necessary to prepare realistic guidelines for joint action, to revitalize the Group and strengthen its cohesion and solidarity. 52.  The Ministers were of the view that as an indispensable corollary to efforts in the North-South context, South-South cooperation based on the concept of collective self-reliance must also be intensified. They were further of the view that the development of concrete, practicable and mutually beneficial economic and technical cooperations among the developing countries, not only opens up new avenues for growth and reduces undue dependence vis-à-vis the North, but also constitutes an integral element of any strategy towards enhancing international economic cooperation. They emphasized that success in South-South cooperation will lend greater credibility and added strength to efforts in attaining a new, just and equitable international economic order. In this context and in order to accelerate the implementation of projects of common interest to developing countries, an evolutionary and flexible approach is appropriate, whereby groups of interested countries, as core groups, initiate cooperation in such projects, which are open to all developing countries. They were of the view that if these groups of core countries are ready to implement projects of mutual benefit, such initiatives should be encouraged, particularly where they contribute to strengthening the collective self-sufficiency of the developing world. 53.  The Ministers stressed that in addition to efforts undertaken by developing countries to promote economic and technical cooperation among themselves, the objectives set forth by the Caracas Programme of Action on ECDC need to be further pursued and accomplished. In this context, they called upon the donor countries as well as the United Nations organizations in all their programmes to extend their support to these efforts to strengthen the collective self-reliance of the developing countries. 54.  The Ministers welcomed the results of the Fifth Meeting of Representatives of Chambers of Commerce and Industry of Developing Countries, held in Jakarta, 16–20 February 1992, to promote South-South trade, industrial cooperation, investment and joint ventures. 55.  The Ministers were of the view that cooperation between the business communities of the developing countries should be expanded to both, strengthen their self-reliance, as well as to reduce their dependency on the developed countries. The Ministers acknowledged that the Global System on Trade Preferences among Developing Countries (GSTP) was an important vehicle for expanding trade among developing countries and urged that efforts be made to strengthen it. The Ministers took note with appreciation of the Tehran Declaration on Launching the Second Round of GSTP Negotiations, and thanked the Government of the Islamic Republic of Iran for hosting the GSTP Ministerial Meeting on launching the Second Round. They called upon interested

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members of the Group of 77 to participate in the Second Round of GSTP Negotiations and to the work of the Negotiating Committee with a view to acceding to the Agreement on GSTP and to carry forward the exchange of trade concessions. They endorsed the Tehran Declaration’s request for the Perez-Guerrero Trust Fund, UNCTAD, UNDP and other intergovernmental organizations to provide financial and other support for the conduct of the Second Round of GSTP Negotiations and the implementation of its results. The Ministers welcomed the offer of the Republic of Cuba to host the Ministerial Meeting of the Negotiating Committee for the Second Round of GSTP Negotiations to be concluded, in principle, in July 1994. 56.  The Ministers took note of the postponement of the Eighth Meeting of the Intergovernmental Follow-up and Coordination Committee on ECDC (IFCC-VIII). In this connection, the Ministers requested the Chairman of the Group of 77 in New York to undertake the necessary measures for convening IFCC-VIII at a suitable date, preferably in the first half of 1993 in one of the regional commissions or in New York.

Critical economic situation in Africa 57.  The Ministers expressed concern over the continued deterioration of the economic situation in Africa. Despite concerted efforts undertaken jointly by the countries of Africa and the international community, economic and social conditions actually worsened in most African countries, especially in the Sub-Saharan region. And, the goals set by the United Nations Programme of Action for African Recovery and Development (UNPAAERD) 1986–1990, were far from being realized. 58.  They noted that the continuing critical economic situation in Africa was rooted in many sources which include, inter alia, chronic indebtedness, commodity dependency, collapse of commodity prices, structural deficiency and an inability to mobilize adequate resources for economic growth and sustained self-reliant development. 59. The Ministers fully supported the United Nations New Agenda for the Development of Africa (UN-NADAF) in the 1990s, which was adopted by the 46th UN General Assembly, renewing the commitment of the international community to achieve self-sustaining socio-economic growth and development in Africa. 60.  The Ministers called upon the international community and especially the developed countries, the United Nations and the multilateral finance and development institutions, to fully support the new agenda and to take appropriate measures to implement the commitments undertaken in it. 61.  The Ministers expressed grave concern over the adverse impact of the continuing deterioration of the economic situation in Africa on the socially disadvantaged sectors, particularly the children. They appealed to the international community, in particular the developed countries, the international and regional organizations, the specialized agencies of the United Nations system, and non-governmental organizations to participate actively in the international conference for assistance to the African children scheduled to be held in Dakar, from 25 to 27 November 1992.

Least Developed Countries 62.  The Ministers expressed deep concern over the continued deterioration of the economic and social situation in the least developed countries. They further noted that over the past decade most of the least developed countries have experienced negative growth rates and suffered from inadequate international development assistance to implement their programmes of economic development and structural transformation. Referring to the serious vulnerabilities of the least developed countries, the Ministers reaffirmed the special needs of these countries and called for

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full implementation of the Programme of Action for the Least Developed Countries for the 1990s as well as other concrete measures in specific areas considered important to spur growth and development in these countries on a sustained basis. The Ministers stressed the need for additional resource flows following the enlargement of the group of LDCs on application of new set of criteria.

Land-locked developing countries 63.  The Ministers recalled all previous decisions of the Group of 77 concerning the land-locked developing countries and noted with concern that the measures taken so far have not been sufficient to tackle the serious problems faced by these countries. They reiterated the need to address the specific problems of these developing countries with regard to reducing the costs of their access to and from the sea and world markets. They stressed the need for the international community to assist and improve the quality, efficiency and reliability of transport facilities, diversify their economies and increase financial resources and technical cooperation to promote the abovementioned activities. In this context, the Ministers stressed the need and importance of cooperation between landlocked and transit developing countries.

Island developing countries 64.  The Ministers recognized the acute problems faced by small island developing countries arising from their geographic configuration and location, high exposure to natural disasters, limitations in transport and communications, great distances from market centers, limited availability of fresh water, heavy dependence on imports, depletion of their non-renewable resources and shortage of administrative personnel. They noted that the specific problems of small island developing countries and the growing incidence of natural disasters retarded their growth and increased their susceptibility to the hostile economic environment, and expressed the need for the international community, particularly the donor countries and the United Nations system to address the specific problems of these island developing countries. In this regard, they welcomed the recommendation contained in Agenda 21 for a global conference on the sustainable development of small island states to be held in 1993. 65.  The Ministers noted with great concern the refusal of Israel to comply with U.N. resolutions to put an end to its occupation of Arab territories in Palestine, Syrian Golan and parts of Southern Lebanon, and the continuation of the Israeli occupation authorities in establishing settlements in those territories and bringing in new Jewish settlers depriving the Arab people of their land and sovereignty over their natural resources, thus impeding their economic and social development and hindering the peace process in the Middle East. In this context, the Ministers affirmed the urgent need to see the termination of this occupation. Taking into account the recent developments on the Middle East question, the Ministers called for a halt to these settlement activities and the removal of all these settlements from all occupied Arab territories including Jerusalem. 66.  The Ministers took note of the recent developments that have taken place in South Africa. They expressed their satisfaction over the repeal and amendments of some of the basic discriminatory laws, the convening of the Patriotic United Front Conference in October 1991 and the Convention for a Democratic South Africa (CODESA). However, they expressed concern on the discontinuation of negotiation process under CODESA framework. They strongly urged the South African regime to create a climate conducive to peaceful negotiation and free political activity, by repealing all remaining discriminatory laws, releasing all political prisoners as well as facilitating the return of all political exiles. The Ministers, noting that the present level of change in South Africa is not yet profound and irreversible, stressed the necessity of maintaining

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pressure against South Africa for the total eradication of apartheid and establishing a democratic and non-racial South Africa. 67.  The Ministers called upon the international community for the immediate elimination of the use of coercive economic measures against developing countries which have not been authorized by the relevant organs of the United Nations or are inconsistent with the principles contained in the United Nations Charter as a means of forcibly imposing the will of one state on another.

NAM and G-77 68.  The Ministers reiterated the need to strengthen coordination between the activities of the Group of 77 and the Non-Aligned Movement for promoting economic and technical cooperation among developing countries. In this regard, the Ministers welcome the proposal of the NAM to establish a Joint Coordination Committee between both of them for the purpose of harmonizing, consolidating, and integrating whenever possible the sectors of the Action Programme for Economic Cooperation among Developing Countries (APEC) and the Caracas Programme of Action of the Group of 77 (CPA). In this context, the Ministers entrusted the Chairman of the Group of 77 to conduct appropriate consultations with the Chairman of NAM.

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17.  Seventeenth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 5 October 1993 a.  Ministerial Declaration 1.  The seventeenth annual meeting of the Ministers for Foreign Affairs of the Group of 77 was held in New York on 5 October 1993. 2.  The Ministers welcomed the admission to membership of the United Nations of Andorra, Czech Republic, Eritrea, Monaco, Slovak Republic and the Former Yugoslav Republic of Macedonia. The admission of these new members strengthens the ideal of universality of the United Nations. 3.  The Ministers also welcomed the admission of the Federated States of Micronesia as full member of the Group of 77.

I Development and International Economic Cooperation 4.  The Ministers expressed deep concern over the continued uncertain prospects of global economic recovery and its grave consequences for the developing countries. The Ministers underlined that the continued existence of unfavourable external conditions, such as slow economic growth and inconsistent macroeconomic policies pursued by developed countries, not only created obstacles to the economic and social development of developing countries but also threatened their economic, political and social stability. 5.  The Ministers regretted that developed countries still lacked the political will to achieve effective and equitable solutions to the world economic stagnation. They also regretted the tendency on the part of a group of developed countries to take decisions of global concern outside the multilateral framework of the United Nations system that affect the world economy without giving full consideration to the interests of developing countries. 6.  The Ministers called for the full and effective participation of the developing countries in the process of decision-making and in the resolution of world economic problems through strengthening multilateralism founded on a systemic coordination of policies on a global basis aimed at promoting equitable growth in the world economy. They emphasized that the increasing internationalization of the world economy required an equitable and effective mechanism of multilateral macroeconomic policy coordination which should allow for greater participation of developing countries and take into account their needs and concerns. 7.  The Ministers reaffirmed the need for a constructive dialogue between the North and the South as an instrument for the promotion of the economic growth and development of developing countries. They stressed that such a dialogue should be conducted based on the economic imperative of mutuality of interests and benefits, genuine interdependence and equitable sharing of responsibilities. To this end, close collaboration and coordination between the Group of 77 and the Non-Aligned Movement is essential in order to ensure complementarity of efforts. 8.  The Ministers emphasized the need for a full and timely implementation of the Declaration on International Economic Co-operation, in particular the Revitalization of Economic Growth and Development of the Developing Countries through national policies and enhanced international co-operation aimed at the reactivation of economic growth and development of developing countries. They also reaffirmed the importance and continued validity of the International Development

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Strategy for the Fourth Development Decade, the Cartagena Commitment of UNCTAD VIII, the United Nations New Agenda for the Development of Africa in the 1990s, the Programme of Action for the Least Developed Countries for the 1990s and the outcome of the UNCED process, as well as the Declaration on the World Conference on Human Rights held in Vienna on 14–25 June 1993 which, inter alia, endorsed the right to development. 9.  The Ministers reiterated their concern that the increasing needs of Central and Eastern Europe for external resources are affecting the availability of resources to the developing countries. They regretted that despite the assurances given by developed countries and the multilateral financial institutions that the assistance to be given to the Central and Eastern European countries would not be at the expense of developing countries, the resources have decreased. The Ministers stressed that those needs should be met from additional resources and not at the expense of resources earmarked for the developing countries. 10.  The Ministers expressed concern at the continued actions aimed at introducing new conditionalities in redefining the basis of international economic cooperation. The Ministers were of the view that each country has to define for itself its national goals, objectives and priorities in its development process. They stressed that the role of international community is to support and supplement the national efforts of developing countries.

Agenda for Development 11.  The Ministers expressed their concern that the United Nations has not been attaching the priority it should to development issues. They stressed the critical need for an integrated approach to development. In this context, they underscored the importance of the initiative of an agenda for development, as a means for giving renewed momentum to a dialogue on the development issues under the premise that favourable economic and social conditions can contribute to strengthen peace and stability, and that the United Nations should promote the impetus towards the solution of global problems in an integrated manner. 12.  To this end, they reaffirmed their commitment to strengthen the role of the United Nations system in the promotion of economic and social development, and invited all parties to initiate a constructive dialogue on development issues at the present session of the General Assembly, in response to the Secretary-General’s invitation for a lively and fruitful discussion of his preliminary report on Agenda for Development.

International Trade 13.  The Ministers stressed the critical need for an equitable, secure, non-discriminatory and predictable international trading system, which should enhance trade and development possibilities of developing countries and facilitate an increased share of these countries in international trade. To this end, they urged developed countries to implement international trade liberalization measures as a necessary step towards the establishment of a just and equitable multilateral trading system. The Ministers stressed that the trade policy reforms being undertaken by developing countries would be frustrated unless the developed countries took positive structural adjustment measures providing larger export possibilities to developing countries. 14.  The Ministers also reiterated the need for a prompt, successful and balanced outcome of the Uruguay Round. The result of these negotiations should promote the development aspirations of developing countries. In particular, the negotiations must ensure the substantial enhancement of market access for developing country exports and the immediate halting and rolling back of protectionism that distorts world trade in textiles and agriculture. They also stressed that any agreement on intellectual property rights should fully reflect the levels of development of developing countries and their development aspirations.

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15.  The Ministers deplored the intensification of protectionist measures outside of and inconsistent with the General Agreement on Tariffs and Trade (GATT). They also noted with concern the increasing use by developed countries of ‘anti-dumping’ measures and countervailing duty action against developing countries, the use of export subsidies, the persistence of high tariff and non-tariff measures affecting developing country exports. They called for strict adherence to the accepted rules, norms and principles of the multilateral trading system. 16.  The Ministers called on the developed countries to urgently implement the commitments undertaken at the United Nations Conference on Trade and Development at its eighth session, which were of particular relevance to the development and trade needs of the developing countries. The Ministers stressed that the firm determination of the developing countries to pursue the dialogue contributed substantially to the results of UNCTAD VIII. They reiterated the hope that this constructive result can contribute, if matched with the necessary political will of the developed countries, to the advancement of multilateral co-operation towards the promotion of growth and development. 17.  The Ministers noted with concern the continued deterioration of the terms of trade of commodity exporting countries as a result of low prices of commodities and protectionism. To this end, the Ministers recalled the decision by UNCTAD VIII to launch a process of consultations on the possibility of convening an international conference on commodities and underlined the urgency of such a conference. The Ministers also called upon the international community to support the efforts of developing countries to diversify their commodities sectors. 18.  The Ministers paid particular attention to the intensification and geographical concentration of economic integration processes, especially since the end of the 1980s. They noted that UNCTAD VIII had identified the evolution and consequences of the emerging enlarged economic spaces and regional integration processes as one of the priorities within the area of global interdependence. They stressed the need to ensure that the integration arrangements, particularly those which have a major impact on global trade, impart dynamism to world trade, enhance trade and development possibilities of developing countries and strengthen the international trading system in conformity with the GATT. 19. The Ministers affirmed the need to improve the Generalized System of Preferences and called upon preference-giving countries to ensure the continuity and broadening of their Generalized System of Preferences schemes and to avoid the introduction into the system of discriminatory measures. 20.  The Ministers called upon the international community for the immediate elimination of the use of coercive economic measures against developing countries which have not been authorized by the relevant organs of the United Nations or are inconsistent with the principles contained in the United Nations Charter as a means of forcibly imposing the will of one state on another.

External Debt of Developing Countries 21.  The Ministers expressed deep concern that the development efforts of developing countries, in particular the provision for essential social and economic services, including housing, education and health, are severely hampered by the imperative need to set aside a substantial portion of national budgets for the servicing of external debt. 22.  The Ministers underscored that the debt burden had an adverse impact on the economies of the developing countries. This situation was further exacerbated by the negative effect of the structural adjustment process, flow of financial resources from developing to developed countries, unpredictability of the international financial system, decline in official development assistance, deteriorating terms of trade of developing countries and sharp falls in commodities prices as well as escalating protectionism in the developed countries. The Ministers, therefore, stressed

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that the reduction in the stock and service of debt should be a central element in addressing the debt problem of developing countries. 23.  The Ministers emphasized that the problem of the external debt of developing countries should not be viewed only in its narrow technical aspects but also in its serious political and social dimensions, aggravated by the drastic impact of the imbalances in the international monetary, financial and trading system, thus requiring political treatment involving debtor countries and creditor countries, as well as international institutions that have a shared responsibility in the solution of the debt problem of developing countries. The Ministers therefore urged those countries and institutions to find an effective, comprehensive, equitable, development-oriented and durable solution to the debt problem of developing countries with a view to substantially reducing the debt and debt services of developing countries. This approach should also cover all types of debt and debtor developing countries. Special consideration should be given to low- and middle-income countries, which, despite an adverse financial situation, continue to meet their debt obligations in a timely fashion. 24. In this context, the Ministers also emphasized that a solution of the debt problem must include strengthening and liberalization of the international trading system as the most important source of real growth and development and, therefore, of the necessary resources for debtor countries to face their financial obligations. They also stressed the continued consideration and wider application of innovative measures, such as debt-for-equity swaps, debt swaps for the protection of nature and debt-for-development swaps as contributions towards addressing the external debt problem of developing countries.

Monetary and Financial System 25.  The Ministers reiterated that the International Monetary Fund (IMF) and the World Bank should be purely economic, neutral and non-conditional institutions and should review their policies and practices so they actively contribute to a new financial and monetary system, more equitable and supportive of development efforts of developing countries. They expressed their serious concern over the lack of progress in efforts to effect meaningful reform and to restructure the international monetary and financial system, in order to democratize the decision-making process in the multilateral financial institutions so that the interests and needs of developing countries would be adequately represented. 26.  The Ministers emphasized the importance of closer and continued coordination between the Group of 77 and the Group of 24 within the framework of the multilateral financial institutions in order to promote the interests of the developing countries in multilateral negotiations.

Development Finance 27.  The Ministers expressed their concern over the diminishing levels of development finance to developing countries further aggravated by the outflow of resources resulting from debt services and sustained deterioration in the terms of trade. Such resources are essential to meet the investment and capital requirements of developing countries to address the development needs of their populations. In this context, the Ministers reiterated the importance of convening an international conference on the financing of development. 28.  The Ministers reaffirmed the urgent need for concerted action for a substantial increase in the flows of financial resources for development on an assured, continuous and predictable basis consistent with the growing requirements of the developing countries. They deplored the fact that the minimum ODA target of 0.7 per cent of GNP and the minimum ODA targets for the Least Developed Countries remained largely unfulfilled. The Ministers also called for a substantial increase in the financial resources of the multilateral institutions, together with a review of their lending policies in order to promote additional lending and growth.

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29.  The Ministers recalled that the provision of additional concessional resources to low-income countries is a matter of particular importance. They underlined the need for increasing in real terms the resources available under the tenth replenishment of IDA, taking into account the growing needs of low-income countries for concessional finance. Similarly, additional financial flows under the Structural Adjustment Facility (SAF) and the Enhanced Structural Adjustment Facility (ESAF) should provide medium-term concessional flows to low-income countries.

Foreign Direct Investment 30.  The Ministers underscored the importance of foreign direct investment as a mechanism for economic growth and development in developing countries. In this context, they recognized that many developing countries are undergoing extensive economic reforms to establish a positive investment climate. They stressed that as part of their efforts to increase the flow of resources to developing countries, industrialized countries should provide greater incentives for foreign investment in developing countries.

Environment and Development 31.  The Ministers welcomed the outcome of the first substantive session of the Commission on Sustainable Development, which would help enhance international cooperation towards the implementation of Agenda 21 and monitor financial and technology flows to developing countries, in order to ensure that the follow-up of the Rio Conference will meet the hopes and aspirations of all countries. In this respect, the Ministers stressed the importance of ensuring that the means of implementation of the Rio decisions are fully honoured and met. 32.  In this connection, they also welcomed the establishment of the inter-sessional open-ended ad-hoc working groups on financial resources and transfer of technology, comprised of experts nominated by governments and which, in full respect of the procedures and mandate of the Commission on Sustainable Development, will contribute to the full implementation of Agenda 21. 33.  They reaffirmed that sustainable development is of paramount concern to developing countries, and therefore asserted that Agenda 21 and the Rio Declaration demonstrated a global commitment to assist the developing countries in both accelerating development and in improving their environment. 34.  With respect to the work of the Commission on Sustainable Development, the Ministers reaffirmed that the multi-year thematic programme of work should be strictly adhered to, so that the Commission may consider, within an agreed chronological framework, all its cross-sectoral and sectoral issues with a view to the overall review of the implementation of Agenda 21 to be undertaken in 1997. 35.  The Ministers emphasized that the readiness of developing countries for environmental protection can only be implemented effectively with simultaneous efforts to solve the problems of world poverty, debt, international equality and by a reactivation of the development process of developing countries through the removal of the external constraints to such reactivation and by creating a supportive external economic environment. The concept of sustainable development must necessarily include the meeting of basic needs of peoples of developing countries and maintaining adequate levels of growth for the quality of life in a healthy, safe and clean environment. 36.  They stressed that insufficient financing is the key obstacle to the promotion of greater effectiveness of developing countries’ efforts in the protection of the environment. The Ministers re-emphasized the importance of international co-operation to provide the developing countries with new and additional financial resources without imposing any forms of conditionalities. In

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this regard, they reiterated the need for political will on the part of developed countries for the effective implementation of their commitments embodied in Agenda 21 in the area of financial resources. 37.  The Ministers stressed that the development and transfer of environmentally sound technologies are essential components of a successful strategy for sustainable development. Therefore, it is important to emphasize that effective modalities be agreed upon for the creation, development, favorable access to and transfer of environmentally sound technologies to developing countries on favourable terms, including concessional and preferential terms. This agreement should include the establishment in developing countries of international, regional and subregional environmental technology centres, and the dissemination of information on existing environmentally sound technologies. 38.  The Ministers endorsed fully the positions adopted by the Group of 77 and China during the Special Participants’ Meeting of the Global Environmental Facility held in Washington, D.C. in September 1993, particularly on the issue relating to the functions of the Participants’ Assembly, Decision-making, the Role of the Trustee, the Chairmanship of the Management Board, the functional independence of the Secretariat, and the procedures for legal adoption of the text to be agreed upon in Cartagena, Colombia, in December 1993. 39.  The Ministers called for a cautious approach to the proposal for ‘carbon-dioxide taxes’ which could produce various constraints to the development of developing countries. 40. The Ministers also welcomed the establishment of the Intergovernmental Negotiation Committee to elaborate an International Convention to combat desertification in those countries experiencing drought and/or desertification, in particular in Africa. They called upon the developed countries as well as the relevant international organizations to pay due regard to the elaboration of this Convention, which should contain appropriate commitments. They stressed the importance of the elaboration and adoption of such an international convention before June 1994.

Science and Technology 41.  The Ministers noted the paramount importance of science and technology for development in the developing countries. They expressed their concern over the marginal opportunity available to the developing countries to participate in the current scientific and technological revolution. They asserted that development is a fundamental right of humanity and can only be achieved through the elimination of all obstacles and limitations that will prevent the developing countries from having access to the latest scientific and technological knowledge. They noted in particular that the obstruction of the transfer of technology in pursuit of political goals constituted a serious impediment to their enjoyment of this right, thus endangering the development of the developing countries. 42.  They expressed their full support to the activities of the United Nations on science and technology and stressed that any administrative rearrangement in the Organization should enhance its capacity to fulfil its programmes in this matter. The Ministers were also of the view that the United Nations has a crucial role to foster international co-operation multilaterally for the effective and efficient transfer of new technologies to developing countries. They stressed that the development and enhancement of endogenous capacities of developing countries in the fields of science and technology are vital for the economic growth and development of those countries. In this regard, UNCTAD has played a major role in identifying major issues arising from the transfer of technology to developing countries and the obstacles thereto. 43.  The Ministers also considered the need to establish cooperative linkages that would facilitate the exchange of information and experiences among developing countries in the field of technology, including biotechnology. In this regard, the Ministers welcomed the concrete initiative taken

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by African countries for the establishment of an African Agency for Biotechnology in Algiers and emphasised the importance of such an initiative and urged the U.N. system, developed countries and developing countries to provide support to this Agency. 44.  The Ministers urged the continuing implementation of the Vienna Programme of Action on Science and Technology for Development and called on all countries, especially developed ones, as well as the international development institutions, to consider seriously the reinvigoration of the United Nations Financing System for Science and Technology for Development as envisaged in the Vienna Programme of Action. The Commission on Science and Technology for Development is to play a key role in providing, inter alia, a global framework for the assessment of scientific and technological progress and its impact on developing countries.

Industrialization 45.  The Ministers stressed the need to sustain the industrialization of developing countries in view of the critical role it plays in accelerating economic and social development. They took note of the impact of structural reforms on the industrial sector and the uneven growth and development of global industrial production leading to the de-industrialization of many developing countries. They highlighted the importance of finding innovative measures for revitalizing the industrial sector considering the current state of the international economy. 46.  Cognizant of the important role played by the industrial sector in the overall economic development of developing countries, the Ministers saw the need to strengthen UNIDO’s co-ordinating role within the United Nations system with respect to industrial development in order that it can better serve the needs of developing countries in their pursuit of industrial development. They called on relevant international organizations to co-operate closely with UNIDO on matters involving industrial development, considering the cross-sectoral nature of industrialization. 47.  The Ministers took note with appreciation of the current efforts made by UNIDO to reorient its priorities and reform its structure in order to contribute more efficiently to equitable and sustainable development in general and to better satisfy the industrialization demands of the developing countries in particular. They urged both developed and developing countries to extend their full support to UNIDO in its revitalization efforts. 48.  The Ministers emphasized Economic Cooperation among Developing Countries (ECDC) as a critical element in the industrialization process of developing countries, particularly in areas such as the promotion of small-and medium-scale industries, industrial technology and information and industrial human resources development. They urged the donor countries and UNIDO as executing agency to augment their resources allocated to ECDC activities in the field of industrialization.

Population and Development 49.  The Ministers reaffirmed that the question of population cannot be considered in isolation and should be closely integrated to development. In this regard, there is a need for all countries to strengthen the level of awareness of its people on population issues. The international community should support the national policies and programmes of all countries, especially developing countries, taking into account the sovereign right of all countries to formulate, adopt and implement their population policies, mindful of their social, economic and political conditions. Such population programmes should aim at improvements in the quality of human resources and expansion of job opportunities. In this regard, the Ministers underlined the importance of the International Conference on Population and Development on 5 to 13 September 1994 in Cairo, as a means to achieve concrete improvements in international cooperation in this field, and to formulate a programme of action containing a set of recommendations on population and

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development for the next decade and beyond. The Ministers welcomed the spirit and efforts aimed at the successful outcome of the Cairo Conference and its preparatory process and they called further upon all States to actively participate and constructively contribute to the process.

Human Settlements 50.  The Ministers reaffirmed their full support to the objectives of the United Nations Conference on Human Settlements (Habitat II) in 1996 as a way to take appropriate action at national and international level aimed at alleviating the conditions of the poor and disadvantaged. They also stressed the importance of the Global Strategy for Shelter to the Year 2000.

Social Development 51.  The Ministers reiterated their full commitment to the World Summit on Social Development, which will take place in Copenhagen in 1995. They reaffirmed that their countries will participate in the preparatory process at the highest possible level, and hoped that the outcome of the Summit will bring effective and real solutions to eliminate poverty and unemployment, and to strengthen social cohesion. In the present conditions it is difficult to establish a unique, universal and uniform strategy for social development, so it is essential to take into account cultural and socio-economic aspects, as well as the inside dynamic of each society. In this regard, the Ministers reaffirmed the necessity to have regional meetings as part of the preparatory process for the World Summit 52.  The Ministers considered that the World Summit for Social Development is an important opportunity to build upon the outcome of the United Nations Conference on Environment and Development by consolidating and strengthening the linkage between poverty, environment, and development and enhancing the promotion of a real and substantive international cooperation strategy.

Education 53.  The Ministers reaffirmed that eradication of illiteracy and providing education for all should remain a top priority goal. They stressed that a high priority should be given to the education of girls and women particularly in the rural areas. The Ministers noted with appreciation the efforts undertaken under the leadership of UNESCO, which have contributed to the reduction in worldwide illiteracy rates in real terms. 54.  Noting the results of the system-wide efforts undertaken to follow-up the recommendations of UNCED and particularly Agenda 21, the Ministers reaffirmed the key-role of education and training in addressing environmental problems and in moving towards sustainable development. In this context, they noted the contribution that UNESCO has made to the creation of awareness as well as endogenous capacities in developing countries, particularly through its activities in environmental education and information. 55.  The Ministers reaffirmed that in today’s increasingly interdependent world, worldwide sharing of knowledge and information is vital for finding solutions to development problems and for advancing towards the common welfare of mankind. In this context, they welcomed the initiative taken by UNESCO to help to tap the wealth of information available, to refine it through research and to share new found solutions with others through exchange networks, university training arrangements (UNITWIN) and UNESCO chairs programme, in its fields of competence. 56.  The Ministers reaffirmed that development of human resources is crucial for achieving economic and social development goals. They urged that education and training which play a key

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role in human resources development should be designed to empower individuals with creative abilities, skills and self-reliance so that they participate actively and productively in the development process.

UN Operational Activities for Development 57.  The Ministers reiterated the importance of the operational activities for development of the United Nations system and emphasized neutrality, non-conditionality and the purely economic role of all operational organs and the need to attach priority to that area in the plans and programmes of the United Nations. They noted with concern the declining resources available for operational activities, resulting in the disruption of the development activities supported by the organizations of the United Nations system in developing countries. That adverse situation, coming simultaneously with the reduction of official development assistance seriously impairs the development efforts of developing countries. The Ministers therefore called for substantial and real increase in the flow of resources for operational activities for development on a continuous, predictable and assured basis. The Ministers reaffirmed the principles of universality, multilateralism, neutrality, non-conditionality and flexibility in meeting the technical cooperation requirements of developing countries. They reaffirmed the need for the full implementation of relevant resolutions of the General Assembly in this field. 58.  The Ministers firmly opposed the extension of the functions of the United Nations Resident Coordinators to the political sphere. In this regard, they expressed concern over proposals aimed at distorting the legitimate nature of the U.N.  field offices, which deal with U.N.  operational activities for development, whose mandates are clearly outlined in relevant General Assembly resolutions.

Critical Economic Situation in Africa 59.  The Ministers reiterated their profound concern at the persistent critical economic situation in Africa. They were convinced that, if not reversed, current trends could considerably worsen the situation, thus endangering the economic and social conditions of African countries and hampering the prospects for their rehabilitation and development. They expressed their solidarity with the African countries and urged the international community, particularly the developed countries, to adopt and implement concrete and effective measures to support the efforts of the African countries in the process of economic reforms and development. 60.  They noted with deep concern the critical conditions in the external debt of African countries and the heavy and unbearable burden of debt-servicing that had led to the paradoxical situation where African countries found themselves net exporters of capital to the developed countries and international financial institutions. Furthermore, the Ministers noted that the deteriorating prices for primary commodities, insufficient foreign investment and declining flows of official development assistance to the region has adversely affected the ability of African countries to meet their development objectives as well as their other financial obligations. 61. The Ministers reiterated their full support to the United Nations New Agenda for the Development of Africa in the 1990s which was adopted by the forty-sixth session of the U.N. General Assembly, renewing the commitment of the international community to achieve self-sustaining socio-economic growth and development in Africa. The Ministers called upon the international community and especially the developed countries, the United Nations and the multilateral finance and development institutions, to support the New Agenda and to take appropriate measures to implement the commitments undertaken in it, including financial contributions for the establishment of the Diversification Fund for African Commodities.

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Least Developed Countries 62.  The Ministers expressed deep concern at the continued deterioration of the economic, social and ecological situation of the Least Developed Countries and urged all countries and multilateral institutions to take urgent and appropriate measures to reverse the trend. In this context, they called upon the International Community to take necessary steps in order to fully implement the Programme of Action for the Least Developed Countries for the 1990s. They underlined the imperative need for providing those countries with necessary support, including adequate official development assistance, in order to revitalize their development process. They called for total cancellation of all bilateral official debt as well as urgent and effective measures for substantial reduction of LDCs debt stock and debt service burden owed to multilateral financial institutions and commercial creditors. They also called for improved market access for the products from the LDCs. They recommended that for effective follow-up, monitoring and implementation of the Programme of Action adequate resources should be made available to the concerned agencies of the United Nations system.

Land-Locked and Transit Developing Countries 63.  The Ministers noted with great concern the deterioration in the economic, social and financial position of the land-locked and transit developing countries, and recommended that the concrete measures contained in the relevant resolutions adopted by the United Nations system should be strictly adhered to, with a view to overcoming the difficult problems and structural constraints that hamper the development efforts of those countries. They called upon the donor community, the multilateral and development financial institutions to provide additional and adequate technical and financial resources for capital input and infrastructural development and other measures required to alleviate their specific transit transport, management and communications problems in accordance with the relevant United Nations resolutions.

Small Island Developing States (SIDS) 64. The Ministers stressed the importance of the Global Conference on the Sustainable Development of Small Island Developing States, to be held in Barbados from 25 April to 6 May 1994, as a further step in the implementation of the commitments of Agenda 21 made at the June 1992 Earth Summit in Rio de Janeiro. They noted that the specific problems of Small Island Developing States, including adaptation to the adverse effects of climate change, growing incidence of natural and other man-made disasters and vulnerability to external economic shocks, served to heighten their susceptibility to the hostile economic environment. In this regard, the Ministers called upon the international community, in particular the donor countries and the United Nations system, to provide the necessary financial and technical resources to support the implementation of a SIDS-specific ‘programme of action’ aimed at addressing the specific vulnerabilities, constraints and obstacles to the sustainable development of these economically and ecologically fragile and vulnerable States. To ensure the success of the Global Conference, the Ministers strongly recommended that a resumed preparatory session of the Preparatory Committee for the Global Conference for the Sustainable Development of Small Island Developing States be held prior to April 1994 to reach agreement on the ‘programme of action’.

II. Restructuring of the United Nations 65.  The Ministers reiterated the importance of the United Nations as the central forum for dialogue and negotiations on issues relating to international co-operation for development and called upon all States to respect the democratic principles as embodied in the Charter of the United

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Nations. They also called for a stronger United Nations system to handle the complex and interrelated problems facing the world economy, in due coordination with the multilateral financial institutions. They expressed deep concern at the financial crisis of the United Nations, which has placed in jeopardy the ability of the Organization to carry out its mandated programmes and which undermines the very essence of multilateralism. 66.  The Ministers reaffirmed that the General Assembly resolution 45/264 provided the guiding principles and guidelines for the restructuring and revitalization of the United Nations system in the economic, social and related fields. This effort should also take into account the thrust and principles contained in S-18/3 adopted at the Eighteenth Special Session of the General Assembly, resolutions 45/199 and 46/235 and other relevant resolutions. Within this framework, the Ministers took note of the ongoing negotiations and reaffirmed their commitment to achieving a consensus agreement on further measures for reform, aiming at improving the division of labour between the General Assembly, ECOSOC and the governing bodies of the United Nations development programmes and funds, and ensure the financing of the operational activities of the United Nations system on a continuous, predictable and assured basis, to enhance the effectiveness of the work of these organs.

Reform of the U.N. Secretariat 67.  The Ministers noted that the resolution 47/212B of the General Assembly established important guidelines that the Secretary-General should take into account in the implementation of the reform of the Secretariat of the United Nations. The Ministers expressed special interest in the follow-up of the guidelines aimed at strengthening the capacity of the Secretariat to support the U.N. activities in the economic and social fields. Among them, utmost importance was attached to the areas of science and technology, transnational corporations and technical cooperation. The Ministers agreed to follow with interest the future evaluation of the real impact of the reform in these specific areas.

III. South-South Cooperation 68.  The Ministers reaffirmed their commitment to Economic Cooperation among Developing Countries (ECDC) and reiterated their conviction that it constitutes an integral and essential part of the efforts of the developing countries to promote economic growth, technological capacities and accelerated development. They also reiterated their conviction that South-South cooperation not only is a means of taking advantage of existing and potential complementarities in the economies of developing countries, but can also contribute to restructuring international economic relations and to strengthening the world economy. The Ministers furthermore noted with satisfaction that in the past few years there has been a robust resurgence of interest, willingness and determination among developing countries in South-South cooperation. The new expectations, in turn, have sparked a strong movement to introduce into the South-South cooperation process fresh and novel approaches and modalities in keeping with changing global circumstances so that South-South cooperation could be rendered more dynamic and realistic. They also reiterated their conviction that as a means of enhancing their negotiating power vis-à-vis the developed countries, South-South Cooperation was essential to reduce the vulnerability of the developing countries to the effects of adverse international economic environment. 69.  The Ministers appealed to the members to contribute generously to the ‘ECDC Account’ in order to facilitate the implementation of the Caracas Programme of Action. For those that have not contributed a special appeal is made to do so and to those who have already contributed an appeal is made to increase their contributions. They also emphasized the need for strengthening the Office of the Chairman of the Group of 77 and the importance of the work of the Core of Assistants. They invited the Chairman of the Group of 77 to take all necessary measures to that purpose.

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70.  The Ministers stressed the importance of continued support, particularly through technical assistance and financing by the United Nations system, to Economic Cooperation among Developing Countries. They reiterated that ECDC was a matter of recognized importance in relevant United Nations resolutions and stressed the importance of the role of organizations and bodies of the United Nations system in the promotion of economic and technical co-operation among developing countries. 71. The Ministers endorsed the outcome of the Eighth Meeting of the Intergovernmental Follow-up and Coordination Committee for Economic Cooperation among Developing Countries, held at Panama City from 30 August to 3 September 1993, and endorsed its recommendations. The Ministers agreed that the Panama meeting had achieved its objectives aimed at the reactivation of the Caracas Programme of Action on Economic Cooperation among Developing Countries and stressed the importance of carrying out the recommendations made by the Committee. They expressed their thanks to the Government of Panama for hosting the IFCC-VIII. 72.  The Ministers emphasized the importance of holding sectoral follow-up meetings as envisaged in IFCC-VIII recommendations. They called on Member States to come forward to offer venues to these meetings as well as other meetings that might arise from IFCC-VIII and provide their full support for the implementation of the recommendations of these meetings. The Ministers further endorsed the decision by IFCC-VIII to establish an intersessional mechanism in the years when IFCC is not in session and urged Member States to participate at these meetings. They invited the Chairman of the Group of 77 to take all necessary measures to that purpose. 73.  The Ministers stressed the need for integrating economic co-operation among developing countries in national policy-making and stressed the role of national focal points as pivotal mechanisms of the Caracas Programme of Action.

IV. Palestine 74.  The Ministers considered the recent development concerning the question of Palestine and took note of the momentous event of 13 September 1993. They regarded the signing of the Declaration of Principles on Interim Self-Government Arrangements between the Palestine Liberation Organization and the Government of Israel as an important first step. In this regard, they reaffirmed that this important step should lead to the achievement of a just, lasting and comprehensive peace in the Middle East based on Security Council Resolutions 242, 338, 425 and on the formula of ‘Land for Peace’. 75.  The Ministers reaffirmed their support of the Palestinian people as they strive to attain their inalienable rights, including the right to establish an independent State on the Palestinian occupied territory, including Arab Jerusalem. They also reaffirmed the permanent responsibility of the United Nations towards the Question of Palestine. The Ministers called upon the international community, especially the developed countries, the U.N.  and multilateral finance and development institutions, to fully support the implementation of the agreement in all possible ways. In this regard, they welcomed the recent initial commitments made.

V. South Africa 76.  The Ministers took note of the recent developments that have taken place in South Africa, including the positive measures taken within the multi-party negotiating forum, particularly the establishment of 27 April 1994 as the date for South Africa’s first democratic and non-racial elections and the endorsement of the reintegration of Walvis Bay and the off-shore islands into Namibia. They also expressed the hope that the Transitional Executive Council will become functional as soon as possible so as to further facilitate the resolution of the outstanding transitional and constitutional issues. However, the Ministers expressed deep concern about the escalation of political

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violence in South Africa. They were of the view that it was the primary responsibility of all governments to maintain security for all their citizens and therefore called upon the South African authorities to ensure conditions of peace, stability and personal security. They also urged the other various parties concerned to do their utmost to bring the ongoing violence to an end. In response to the appeal made by the broad spectrum of the people of South Africa on lifting of all economic sanctions, the Ministers, recognized this reality, and, in consonance with this wish, called upon the international community at large and the United Nations in particular to respond positively to this appeal and to lift all sanctions, with the exception of those relating to the arms embargo and nuclear matters. The Ministers called upon the international community to continue to provide financial and other assistance to those countries in Southern Africa, which continue to suffer from the adverse effects of past acts of aggression and destabilization in the region.

VI. NAM and G-77 77.  The Ministers welcomed the results of the Meeting of the Standing Ministerial Committee for Economic Cooperation of the Movement of the Non-Aligned Countries held in Bali, Indonesia, from 10 to 13 May 1993. 78.  The Ministers endorsed with satisfaction the support given to the implementation of the Caracas Programme of Action on ECDC by the Standing Ministerial Committee for Economic Cooperation of the Non-Aligned Movement. The Ministers also endorsed the recommendations concerning the harmonization of the implementation of the Caracas Programme of Action on Economic Cooperation among Developing Countries and the Action Programme for Economic Cooperation of the Non-Aligned Countries, as contained in the final report of the IFCC-VIII. 79.  The Ministers considered that there is an increasing need to further strengthen coordination and cohesiveness between the Group of 77 and the Non-Aligned Movement for the purpose of deliberating various international issues, in particular within the United Nations system, and in order to ensure complementarity of efforts. In this context, they firmly believed that the Joint Coordinating Committee (JCC) between the Group of 77 and the Non-Aligned Movement could best accommodate these functions. They directed the Chairman of the Group of 77 to continue his consultations with the Chairman of the Coordinating Bureau of the Non-Aligned Movement as well as with Member States of the Group in order to operationalize the Committee during 1994. They mandated the Chairman of the Group of 77 to take all necessary steps for that purpose, including those agreed upon by the IFCC-VIII. 80.  The Ministers were of the view that in the context of harmonization of efforts between the programmes of NAM and the Group of 77 there was a need to strengthen co-operation among developing countries in sectoral areas related to development.

VII. Humanitarian Issues 81. The Ministers underscored that the implementation of decisions by the United Nations should, as far as possible, seek to minimize the negative impact on the innocent civilian population of affected countries, as well as the adverse economic impacts on third countries.

VIII. XXX Anniversary of the Group of 77 82.  The Ministers were convinced that the XXX anniversary of the creation of the Group of 77 on 15 June 1994 constitutes an opportunity to reaffirm the resolve of the Group to implement its goals and objectives in the light of the new challenges facing developing countries. The Ministers invited the Chairman of the Group of 77 to conduct appropriate consultations with a view to deciding how this important event should be commemorated on 15 June 1994, including the possibility of convening a special meeting of the Group of 77 at an appropriate level.

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18.  Eighteenth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 30 September 1994 a.  Ministerial Declaration 1.  The Eighteenth Annual Meeting of the Ministers for Foreign Affairs of the Group of 77 was held in New York on 30 September 1994. 2.  The Ministers welcomed the admission of the Republic of Bosnia and Herzegovina as full member of the Group of 77. 3.  The Ministers reviewed the developments, since their last meeting, in the international economic situation and the activities undertaken in the context of the development agenda of the United Nations. The Ministers expressed concern at the slow, uncertain and unbalanced growth of the global economy. Such growth patterns adversely affect the economic and social conditions in developing countries. The Ministers also expressed concern at the increase in protectionist tendencies in the developed countries, and the stagnation and decline in ODA flows. 4.  The Ministers emphasized that, to facilitate national efforts in developing countries aimed at economic and social progress, international development cooperation needs to be targeted at creating a more favourable international economic environment for the development efforts of the developing countries so as to facilitate investment flows to developing countries, for trade opportunities and improved terms of trade, transfer of technology, official development assistance, movement of factors of production and availability of commercial credit. They regretted that the processes and mechanisms of decision-making pertaining to these issues did not adequately involve or take into account the interests of the developing countries. 5. In this context, the Ministers reiterated the high priority they attach to the initiative of An Agenda for Development, reaffirmed the Statement on An Agenda for Development adopted by the Special Ministerial Meeting of the Group of 77 held at United Nations Headquarters in New York on 24 June 1994 on the occasion of the 30th anniversary of the Group, and emphasized the need for the Secretary-General’s revised report on An Agenda for Development, duly taking into account the Ministerial Statement of 24 June 1994, to propose action-oriented measures focusing on economic growth and development. The Agenda should recognize the role of development in contributing not only to human welfare but also to long-term peace and stability, and acknowledge that long-term development will minimize the need for preoccupation with damage control and emergency action. The Agenda for Development should integrate the strategies, mechanisms and means of cooperation and implementation agreed upon or being negotiated in U.N. conferences. 6.  The Ministers stressed that an Agenda for Development must strengthen the role of the United Nations in the area of international economic policy-making and coordination. To fulfill this role, an Agenda for Development must enhance the relationship between the U.N. and the specialized agencies, including the Bretton Woods institutions, and other multilateral institutions for the promotion of sustained economic growth and development that particularly addresses the problems faced by developing countries. 7.  The Ministers stressed that the UNCTAD should continue to provide inputs relating to the development dimension in international trade policy-making and implementation. 8.  The Ministers stressed, that at a time when there is growing awareness of the need to support at the national level a combination of governmental action and market based policies, participative and democratic decision-making and governance, similar approaches need to be adopted with respect to international economic decision-making and functioning. The Ministers expressed concern at actions aimed at introducing new conditionalities in redefining the basis

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of international economic cooperation They also expressed concern at the potential for conditionality and intrusiveness in concepts such as ‘sustainable human development’ and ‘human security’. Each country has to define its national goals, objectives and priorities in its development process. They stressed that the role of the international community is to support and supplement the national efforts of developing countries. 9. The Ministers welcomed the increase in private financial flows to developing countries. However, they noted that these flows were mainly short-term and concentrated in a few countries and a few sectors. For the influence of these flows to be more significant in their impact on development, equitable growth, eradication of poverty and generation of full employment, it is essential that these flows be more widespread across countries and sectors. The international community must address itself to the issue of facilitating this through suitable incentive mechanisms and catalytic action instead of merely leaving this to competition among developing countries and their competitive changes in policy parameters and incentive structures. 10.  The Ministers emphasized the urgent need for a substantial expansion in ODA. The commitment undertaken by the developed countries to allocate 0.7 per cent of their GNP to developing countries has still not been fulfilled. The global partnership for sustainable development entered into during the recent years was based on the provision to the developing countries of substantial, new and additional financial resources to meet their huge sustainable development requirements. The Ministers noted with deep concern that ODA in 1993 declined by US$ 6 billion. They expressed their concern that environmental policies and measures have become a conditionality on existing levels of assistance, even while the developed countries continue to threaten the environment through their unsustainable production and consumption patterns. In this context, the Ministers were of the view that the UNCED and UNCED-related international agreements would require the mobilisation of substantial, new and additional resources for meaningful implementation, instead of a recourse to merely reordering priorities and reallocating national and ODA budgets and called upon the developed countries to take the necessary measures for increased ODA flows to the developing countries. Steps should also be taken for SDR creation and allocation for development. In this context, the Ministers reiterated the urgent need for convening an international conference on financing for development. 11. The Ministers welcomed the adoption of the Programme of Action for the Sustainable Development of Small Island Developing States at the Global Conference for the Sustainable Development of Small Island Developing States, as well as the adoption of the International Convention to combat desertification in those countries experiencing serious drought and/or desertification, particularly in Africa, and called for their full implementation by the international community. 12.  The Ministers reiterated the need for more effective measures for reduction of the debt and debt-servicing burden of the developing countries including cancellation of such debt. The reverse transfer of resources on this account negatively affected the ability of the developing countries to generate growth, and to take measures aimed at social development, including through provision of housing, education, health and nutrition. This was further exacerbated by the slow growth in the international economy. The Ministers reiterated the urgent need for an effective, comprehensive and equitable, development-oriented and durable solution to the debt problem of the developing countries. Any approach should cover all types of debt, including multilateral debt, and debtor developing countries. In addition, innovative measures such as debt for equity swaps, debt for social development swaps, debt for environment swaps, etc. should be considered and applied effectively. The Ministers took note with satisfaction of the Non-Aligned Movement’s initiative on debt and development and requested that the report and recommendations of the meeting be discussed in the framework of JCC and considered at the present session of the General Assembly.

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13. The Ministers welcomed the signing of the Uruguay Round Agreements at Marrakech (Morocco) in April 1994 and reiterated the need for their timely ratification. They stressed the need for continued evaluation of implementation of these Agreements to ensure increased market access and expansion of world trade for all countries, particularly the developing countries. In this regard, the Ministers emphasized the importance of commitments pertaining to special and differential measures to mitigate any adverse effects arising from the implementation of the Round. In this context, the Ministers welcomed the offer made by the government of Singapore to host the first Ministerial Conference of the WTO and affirmed the view that Singapore would be an appropriate venue for the first conference. The World Trade Organization, in its functioning, should contribute to a rule-based, predictable and non-discriminatory multilateral trading system and uphold the rights and interests of the weaker trading partners. It is necessary that appropriate monitoring measures be established to ensure that, in the implementation of the Uruguay Round, the interests of developing countries are adequately protected. Compensation should be provided to the developing countries facing difficulties. Attempts to bypass and undermine multilaterally agreed liberalisation of trade through resort to unilateral actions and demands for concessions, over and beyond those agreed to in the Round, as well as attempts to use environmental and social concerns for protectionist purposes must be resisted. In this context, they also noted with concern the increasing use by developed countries of ‘anti-dumping’ measures and countervailing duty action against developing countries. Trade policy cannot be an arbiter of all issues and the principles of nondiscrimination and comparative advantage, which are an inalienable basis of international trade, must be sustained. An over-burdening of the agenda of the WTO is likely to put the international trading system at risk and jeopardize the growth prospects of all countries. In the process of their increasing integration with the world economy, the developing countries will have special needs in terms of access to resources, markets and technology. Differential measures, including preferences, assistance and compensation had to be an essential part of this new enhanced interdependence. 14.  The Ministers emphasized the need for more effective measures to upgrade science and technology capabilities in the developing countries. Their own experience and situation makes them equipped to develop and adapt technologies suited to their resource endowments and needs. Technology flows cannot be left only to the private sector. In this context, measures should be taken for facilitating access to technologies and know-how on preferential and concessional terms, including to new technologies. Information on and flows of environmentally sound technologies must be promoted. Barriers should be removed to the access to and transfer of technologies to the developing countries. In this regard, the Ministers highlighted that the UN system should have a more active role in this area. In this context they stressed that UNCTAD should be provided with adequate resources to fulfil its mandate. 15.  The Ministers called upon the international community for the immediate elimination of the use of coercive-economic measures against developing countries which have not been authorized by the relevant organs of the United Nations or are inconsistent with the principles contained in the United Nations Charter as a means of forcibly imposing the will of one state on another. 16.  The Ministers welcomed the outcome of the International Conference on Population and Development held in Cairo from 5 to 13 September 1994, and stressed the importance of the interlinkage between population, sustained economic growth and sustained development. They called for the implementation of the recommendations contained in Cairo Programme of Action on the national, regional and international levels. 17.  The Ministers underscored the vital importance of the role of both the international community and the United Nations system in mobilizing the necessary resources for the implementation of the Program of Action. They highlighted the necessity of establishing a mechanism to follow up the implementation of the Programme of Action.

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18.  The Ministers reiterated the position of the Group of 77 adopted on the Programme of Action for the World Summit for Social Development, and emphasized the need for the draft Declaration and the draft Programme of Action to be adopted at the World Summit for Social Development in March 1995, which respects the global approach to the eradication of poverty, the generation of productive employment and enhancement of social integration to fully reflect the concerns and interests of developing countries, particularly the commitment to put the needs of people at the centre of development and international cooperation, in the elaboration of objectives and commitments to be agreed during the third session of the Preparatory Committee. 19.  The Ministers emphasized the importance of the Fourth World Conference on Women. They called for a Platform for Action conducive to the creation of an enabling environment for the empowerment of women. 20.  The Ministers reaffirmed the importance to developing countries of the operational activities for development of the United Nations system. They regretted the recent tendency of these activities of entering into controversy on account of non-economic and non-development factors. Operational activities for development of the U.N. system should carry out their activities within the framework of their mandates, taking into account the national specificities of the developing countries, and avoid any threat to their own universal acceptability and credibility. Within this framework, they urged the need for more resources to be made available for operational activities on a continuous, predictable and assured basis. They also stressed the need for institutions that were involved in implementation of financial and technical cooperation programmes, to be distinct from those involved in overall policy making and coordination. 21.  The Ministers reiterated their profound concern at the persistent critical economic situation in Africa and the deteriorating economic conditions in the least developed countries and urged the international community, particularly developed countries and the U.N. system, to adopt and implement concrete and effective measures to support the efforts of these countries in the process of economic reforms and development. They also called upon the international community to increase its assistance to these countries in their efforts towards the diversification of their economies. 22.  The Ministers expressed their concern that structural adjustment programmes often have adverse effects on the social sectors, in particular, education, health, nutrition and on employment. In this respect, the Ministers called for the provision of effective means including new and additional financial resources targeted at social sector development. They also called on the international financial institutions to enhance their assistance to developing countries implementing reform programmes in establishing social safety nets. 23.  The Ministers reaffirmed their commitment to South-South Cooperation as a necessary and viable strategy for greater collective self-reliance for national, regional and global development, and as a major mechanism for the promotion of growth and accelerated development. The dynamism introduced through such cooperation would also contribute to strengthening the world economy and restructuring of international economic relations. The U.N. system and the developed countries should support such cooperation, including through financial and technical assistance. To that end, the Ministers called upon the United Nations to consider convening an International Conference on South-South Cooperation in 1996. They also noted with interest that ‘Partners in Population and Development:  a South-South initiative’, was launched within the framework of the International Conference on Population and Development. 24.  The Ministers approved the report of the Committee of Experts of the Perez-Guerrero Trust Fund (PGTF) for Economic and Technical Cooperation among Developing Countries, presented in accordance with the mandates of IFCC-VIII, and approved its recommendations. They expressed their satisfaction with the results so far achieved by the PGTF and agreed to explore

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THE COLLECTED DOCUMENTS OF THE GROUP OF 77

ways and means to further expand the resources of this unique funding mechanism for ECDCTCDC projects, in particular, through recourse to an increase of core capital through contributions from both developing and developed countries, as well as intergovernmental and non-governmental institutions and organizations. They equally agreed to extend the tenure of office of the members of the Committee of Experts to a three year period. 25.  The Ministers welcomed the operationalization of the Joint Coordinating Committee (JCC) between the Group of 77 and the Nonaligned Movement in June 1994 on the occasion of the 30th anniversary of the Group of 77. 26.  The Ministers reiterated the need for strengthening the U.N. to enable it to contribute more effectively to development. The United Nations, with its universal membership, had a critical and inalienable role in the area of consensus building for international economic and development cooperation. The views and consensus expressed in this forum should be taken into account by different institutions and agencies in devising their assistance and operation programmes. In this context, the Ministers called for a reinvigorated effort by the U.N. system and the international community to promote development. This would require the necessary focus on sustained and accelerated economic growth and development, while keeping in mind the requirements of the supporting infrastructure including through social and national structures, a favourable international economic environment and international development cooperation. Developing country concerns must be integrated into all deliberations of global trade, finance and technology cooperation. The emphasis should be on the substance of the measures required rather than a preoccupation with reforming merely the structures of cooperation and interaction or developing new terminologies which do not contribute to tackling the problems at hand and lead not to development, but only to conditionalities. 27.  The Ministers noted the initiation of Palestinian self-government arrangements in the Gaza strip and Jericho area and called for the speedy extension of Palestinian self-government arrangements to encompass the entire occupied territories in implementation of the Declaration of Principles on Interim Self-Government Arrangements. In that regard, they reaffirmed their support of the Palestinian people as they strive to attain their inalienable rights, including the right to establish an independent State on their national soil, including Jerusalem. They also reaffirmed the permanent responsibility of the United Nations towards the question of Palestine. They emphasized the need for international assistance to support Palestinian development efforts in the economic and social fields. 28. The Ministers also reaffirmed their support for the peace process initiated at the Peace Conference on the Middle East held at Madrid, which aimed at achieving a comprehensive, just and lasting peace in the Middle East based on Security Council resolutions 242 (1967), 338 (1973) and 425 (1978) and the principle of land for peace.

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19.  Nineteenth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 29 September 1995 a.  Ministerial Declaration 1.  The Nineteenth Annual Meeting of the Ministers for Foreign Affairs of the Group of 77 was held in New York on 29 September 1995. 2.  The Ministers expressed the view that the occasion of the 50th Anniversary of the United Nations provided a historic opportunity for all Member States of the United Nations to work towards fulfilling the purposes and principles of the Charter with renewed vigor and effectiveness in order to ensure a better life for all peoples, the eradication of poverty as well as reducing inequalities and gaps in living standards among nations and promoting development. They were convinced this remained the critical challenge for mankind as it entered the 21st century. Towards this end, the Ministers emphasized that in a world characterized by deepening interdependence and the globalization and the liberalization of the world economy, which presents both opportunities and challenges in terms of positive growth impulses and negative shocks, peace and security cannot be ensured in the absence of sustained economic growth and development, particularly in developing countries. 3.  In reviewing developments in the world economic situation, the Ministers noted that there exist some positive trends in the world economy but continued to express concern at the slow and unbalanced growth of the global economy. They also expressed concern at the continuing adverse external economic environment for development characterized by increased protectionist tendencies in and unilateral actions by the developed countries, the worsening terms of trade of developing countries, stagnation and decline in ODA flows, restrictions on access to technologies critical to development, the inadequate allocation of resources of international financial institutions and volatile financial flows to developing countries linked, among others, to instability in global capital markets and fluctuations in exchange rates. Moreover, they noted with concern that the income gap between the developed and developing countries continued to widen. They stressed the need for these trends to be reversed decisively. 4.  The Ministers stressed that international cooperation for development should be aimed at creating an international economic environment which supports and facilitates the national efforts of developing countries aimed at renewing sustained economic growth and development. Essential to this was the need for continuous macroeconomic policy coordination at the international level to foster the sustained growth of the world economy and for international economic decision-making processes to be transparent and involve fully the developing countries. At the same time, they stressed the critical need for developed countries and developing countries to engage in a comprehensive and constructive dialogue on all key development issues and to foster a genuine partnership for development. The early fulfillment of agreed international commitments and targets on development, which, in turn, required the provision of adequate resources, was deemed necessary. They reiterated that without adequate resources the development commitments agreed at the various international conferences and meetings on development would remain unfulfilled. 5.  They also expressed concern at actions aimed at introducing new conditionalities for international economic cooperation, thereby undermining the sovereignty of nations. Development prospects were being constrained by attempts to introduce non-economic conditionalities on trade, ODA and technology transfer, even as resources for development were declining and developing countries faced restrictions on market access of commodities, manufactures and services.

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6.  The Ministers also called upon the international community for the immediate elimination of coercive economic measures against developing countries which have not been authorized by the relevant organs of the UN or are inconsistent with the principles contained in the UN Charter as a means of forcibly imposing the will of one state on another. 7.  The Ministers also stressed the urgent need to alleviate the impact of economic sanctions on the humanitarian needs of the targeted population, by examining and addressing such impact. 8. The Ministers affirmed their commitment to negotiate an action-oriented Agenda for Development which reflects the major concerns of developing countries in particular the need to implement existing international commitment for development, restoring both the issue of development to the heart of the UN agenda and the centrality of the UN in promoting international cooperation for development, and creating a balance between UN activities for development and its other activities, and providing for an increased commitment to the development of developing countries as well as for increasing international resources for development. In this regard, they noted the state of negotiations on the Agenda and urged all members of the Group to continue close coordination on all outstanding issues. 9.  The Ministers called upon all States to assert the requisite political will to ensure an open, rule-based, equitable, secure, non-discriminatory, transparent and predictable multilateral trading system with the aim of achieving the complete integration of the developing countries into the world economy and the new international trading system. They reiterated the need for full implementation of the Uruguay Round Agreement and also called upon Member States, especially the developed countries, to implement fully the commitments agreed upon in the Final Act. In this regard, they also stressed that the Final Act confers special and differential treatment for developing countries, in particular the least developed countries and the net food importing countries. The Ministers further encouraged Member States who have not done so to submit, as appropriate, the WTO Agreement for the consideration of their respective authorities with a view to seeking approval of the Agreement in accordance with their national procedures. 10.  They rejected unilateral actions of a protectionist nature, particularly those implemented after the Marrakech accords, which are inconsistent with multilateral trade agreements and emphasized the important role of the World Trade Organization (WTO) in contributing to a rule-based, predictable and non-discriminatory multilateral trading system. The Ministers also emphasized the need to use existing dispute settlement mechanisms of the WTO in order to resolve any trade controversies that may arise. They further stressed the need for positive measures to ensure that developing countries secure a greater share in international trade commensurate with the needs of their economic development, and for measures to mitigate any negative and adverse effects on the developing countries from the implementation of the Agreement, including through compensation, enhanced market access provisions and financial assistance towards structural economic transformation. 11.  The Ministers noted with satisfaction that the Government of the Republic of Singapore would host the First Ministerial Review Conference of the World Trade Organisation in December 1996. 12.  The Ministers recognized sub-regional and regional economic cooperation as an important means for expanding trade and investment opportunities as well as the transfer of technology. They stressed the need for a strong commitment by the international community to pursue regional economic cooperation within the framework of an open, equitable, non-discriminatory and rule-based multilateral trading system. 13.  They further rejected the use of disguised protectionist measures in the form of new concepts seeking to link domestic standards relating to environment, labor laws, human rights, and other

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social issues, through the application of arbitrary trade measures and bilateral pressures against developing countries. 14.  The Ministers urged the international community particularly the developed countries and international organizations to fulfill their commitments on the transfer of substantial new and additional financial resources and technology to the developing countries to meet their development challenges and implement existing development commitments. 15.  The Ministers stressed that such resource mobilization for development must be reinforced by reductions in military expenditures in developed countries, including in the fields of production, stockpiling and developing all types of weapons, in particular nuclear weapons and other weapons of mass destruction, along the guidelines agreed upon in the context of global disarmament and the priorities set forth by the Tenth Special Session of the General Assembly devoted to disarmament, and thus the channeling of resources released for supporting the developing countries in their efforts to promote social and economic development. 16.  The Ministers while welcoming the increase in private foreign financial flows to many developing countries, stressed the importance that such flows, particularly foreign investment, be increasingly directed towards all developing countries and towards increasing productive capacity, as well as be aimed at enhancing economic growth and opportunities in developing countries. They also urged the international community to consider establishing transparent measures for monitoring short-term private flows so as to stimulate further investments in productive activities and to safeguard developing countries from the adverse effects of volatility in such flows. In this regard, they noted the increased vulnerability of developing countries to external shocks due to the increased integration of the world economy, and their economic liberalization efforts. Capital exporting countries must also enable, facilitate and promote foreign direct investment flows to developing countries, through incentives as well as through removal of barriers to import of goods and services from these countries. While paying due attention to the role of transnational corporations (TNCs) in the field of investment, they stressed that efforts should be pursued to guarantee that capital flows emanating, inter alia, from TNCs should correspond to the national policies and priorities of the host country. 17.  The Ministers regretted that despite the implementation of several approaches undertaken over the past decade by the international community, the debt crisis continues to persist as one of the main constraints for the development of developing countries, including for the least developed countries, and for those at the lower, lower-middle and middle-income levels. They reiterated the urgent need for the international community, particularly the donor countries and international financial institutions to adopt an effective, comprehensive and equitable, once-and-for-all development oriented and durable solution to the debt problem of the developing countries, including debt reduction and increased concessional financial flows for the least developed countries and Africa. At the same time, they stressed that structural adjustment policies must not divert resources away from social priorities in debtor countries. 18.  The Ministers noted that many developing countries had adopted economic reforms under the structural adjustment programmes (SAPs) of the Bretton Woods institutions. These reforms have been accompanied by adverse and significant social costs. They therefore called for a review of the programmes aimed at ameliorating the social and other costs of adjustment through appropriate poverty eradication measures and effective measures to address social priorities. 19.  The Ministers noted that the efforts of developing countries to mobilize domestic resources for development needed to be supplemented by external resources commensurate with their development needs. In this regard, the Ministers expressed concern over the growing trend within the United Nations system regarding the diversion of the resources and the shifting of the priorities to other countries at the expense of developing countries.

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20.  The Ministers reiterated the urgent need for a substantial expansion of official development assistance (ODA) in view of the declining levels of such assistance over recent years. In this regard, they strongly urged compliance with internationally agreed targets of ODA and commitments for new and additional resources, particularly the fulfilment by the donor countries who had failed to do so of the 0.7 per cent of their GNP by the year 2000 and commitments reflected in Agenda 21. They also expressed concern over attempts to reduce levels of ODA. They also stressed the need for qualitative improvements in ODA by the donor countries, inter alia, through reduced costs of repayment. 21. The Ministers reiterated the urgency of convening a United Nations Conference on the Financing of Development and welcomed the recommendation recently made in this regard by the Secretary-General, contained in his report on an Agenda for Development. 22.  The Ministers stressed the importance to developing countries of access to science and technology in order to sustain their economic growth and development. Hence, the need for developing countries to participate in, benefit from and contribute to the rapid advances in science and technology was underscored. The Ministers called upon the international community to help developing countries strengthen and develop their endogenous capacities and capabilities in science and technology, including in the area of environmentally sound technologies and new and emerging technologies. They also called for removing all barriers on access to technology and stressed that the transfer of technology should not be left solely in the hands of the private sector or based on market prices, and should enhance the productivity and competitiveness of the developing countries in the world market as well as improve the quality of life, health and the environment. In this context, they stressed the importance of the Commission on Science and Technology for Development. They further called for the establishment of and/or strengthening national technology information centres in developing countries and their networking on regional and global levels to promote technology research, development and dissemination among developing countries. 23.  The Ministers stressed the critical importance of effective follow up to landmark UN conferences held since 1990 to ensure that the commitments, recommendations and measures agreed to at those conferences are implemented as soon as possible. In this process, it is essential to ensure the thematic unity of the outcome of each conference while ensuring a coordinated approach on cross cutting issues. They endorsed the decision adopted in this regard in the substantive session of the Economic and Social Council in June-July 1995 and further reiterated the need to ensure that each functional commission was treated on an equal footing. The size and composition of the commissions involved in the follow up to conferences such as the Population Commission and the Commission for Social Development should be brought on a par with others such as the Commission on Sustainable Development and the Commission on Human Rights. The Economic and Social Council should also develop its work programme and make recommendations regarding those of the functional commissions to ensure a coordinated follow up. 24.  The Ministers reaffirmed their commitment to realizing the goals for children set out in the Declaration and Plan of Action adopted at the World Summit for Children and restated most recently at the World Summit for Social Development. 25.  The Ministers stressed the need for prompt and full implementation of the commitments and recommendations of the United Nations Conference on Environment and Development (UNCED), which have more relevance today than ever before. In this regard, they stressed that such implementation should not contradict the right of developing countries to benefit fully from the utilization of their resources vital for sustained economic growth and development. They also urgently called on the international community, particularly the developed countries, to fulfill all their commitments contained in Agenda 21. 26.  They expressed their profound regret that the developed countries have failed to fulfill the commitments they made at UNCED and renewed their call on developed countries to fulfill their

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commitments to provide adequate, predictable, new and additional financial and other resources towards this end. They also reaffirmed the important role that the Bretton Woods and other international financial institutions should play in this regard. They also stressed that developed countries should take concrete measures for the transfer of environmentally sound technologies to developing countries on favourable terms, including on concessional and preferential terms. 27.  They emphasized the importance of implementing the recommendation of the International Conference on Population and Development into action at all levels, and that such implementation would require new and additional resources. 28.  The Ministers reiterated the importance of convening a Global Conference on Migration and Development bearing in mind the recommendations of the General Assembly, and reaffirmed the need for international cooperation and concerted responses to the plight and predicament of migrant workers and their families. Towards this end, they encouraged all countries to become party to the UN Convention on the Protection of Migrant Workers and Their Families. 29.  The Ministers stressed that in order for developing countries to implement the decisions under the Convention on Biological Diversity, priority should be given to the access and transfer of appropriate biotechnologies, and to a more constructive and cooperative approach by developed countries with developing country partners for the equitable sharing of benefits from the use of biological resources. In this context, they consider the need to examine ways and means for the effective protection, compensation and use of traditional forest related knowledge, innovations and practices of forest dwellers, indigenous people and other local communities, as well as fair and equitable sharing of benefits arising from such knowledge, innovations and practices. The Ministers also supported the idea to enhance the scope of the debate with regard to this issue in different fields. The Ministers also welcomed the generous offer of the Government of Indonesia to host the COP-2 of the Convention on Biodiversity in November 1995 and urged member states to participate actively in the Conference. 30.  The Ministers underscored their determination to adhere to the principles and fulfill the commitments contained in the Declaration of the World Summit for Social Development and emphasized the importance of implementing the Programme of Action aimed at eradication of poverty, enhancement of productive employment and reduction of unemployment, and to foster social integration. 31. The Ministers welcomed the convening of the First Conference of the Parties on the Framework Convention on Climate Change and the decisions agreed and noted that it was a first step in the process which must lead to concrete initiatives aimed at the full implementation of the Convention. They urged Annex 1 parties to fulfil their obligations under the Convention, particularly the provision of new and additional resources and the transfer of environmentally sound technologies on preferential and concessional basis. 32.  The Ministers urged all Member States of the UN to accelerate the process of signature and ratification of the International Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification, particularly in Africa, with a view to expediting the entry into force and full and effective implementation of the Convention and its regional annexes. There is a need for the international community to provide substantial financial resources and other forms of active support for the efforts of all affected developing country parties, particularly those in Africa, and the least developed countries, to combat desertification and mitigate the effects of drought. 33.  The Ministers welcomed the entry into force of the UN Convention of the Law of the Sea and invited countries that have not done so to accede to it. They looked forward to the successful outcome of the forthcoming Meeting of the States Parties to the Convention, including the establishment of the International Tribunal for the Law of the Sea. The Ministers noted the recent successful conclusion of the United Nations Conference on Straddling Fish Stocks and Highly

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Migratory Fish Stocks as an essential contribution towards conservation and sustainable use of marine living resources, and in particular expressed satisfaction at the recognition in the Agreement adopted by the Conference of the special requirements of developing States in relation to the conservation, management and development of fisheries for those stocks. 34.  The Ministers welcomed the holding of the Fourth World Conference on Women in Beijing and recognized the important role of women in economic and social development. The Ministers confirmed their commitment to the implementation of the Platform for Action, as adopted in Beijing, to achieve equality, development and peace for all, which will require adequate mobilization of resources at the national and international levels, as well as new and additional resources to the developing countries from all available funding mechanisms. 35. The Ministers fully supported the United Nations Conference on Human Settlements (Habitat II) and its preparatory process. They recognized the two themes of crucial importance for the implementation of the Global Plan of Action:  ‘Sustainable Human Settlements in an Urbanized World’ and ‘Adequate Shelter for All’. Achieving adequate shelter for all is central to the socio-economic development and stability of human settlements and a basis for sustainable development. The Ministers expressed the hope that the deliberations and decisions of Habitat II would lead to greater attention to the problems of human settlements as well as increase international cooperation in this field. The Ministers reaffirmed the Global Strategy for Shelter to the year 2000 adopted by the General Assembly in 1988 to address the problem of lack of access to safe and adequate shelter and sanitation and called on Member States and the international community to provide much greater level of financial and other forms of support to implement the Global Strategy for Shelter to the year 2000 and the outcome of the United Nations Conference on Human Settlements. 36.  The Ministers stressed the need for enhanced international mechanisms for the provision of humanitarian and financial assistance to refugees and host countries and promote appropriate shared responsibility. 37.  The Ministers reiterated their deep concern at the persistent critical socio-economic situation in Africa and the deteriorating economic conditions and regretted that four years after its adoption, the United Nations New Agenda for the Development of Africa in the 1990s (UN-NADAF) remains largely unimplemented. The Ministers expressed disappointment at the failure of the international community, particularly the developed countries, to implement measures to support the development efforts of the countries in Africa as called for, among others, under UN-NADAF and reiterated during the High-Level Segment of the Economic and Social Council on the Development of Africa and the implementation of UN-NADAF. They called upon the international community to increase its assistance to these countries while stressing that the continent’s economic and social development depends primarily on the efforts of the African countries themselves and hoped that the mid-term review of the implementation of UN-NADAF would reinvigorate the international commitment to the development of Africa. 38.  The Ministers expressed their deep concern at the deteriorating socio-economic condition of the Least Developed Countries (LDCs) and called for priority action on the many international development commitments towards LDCs, especially those contained in the Paris Declaration and the Programme of Action for LDCs for the 1990s. In this regard, the Ministers expressed their hope that the High-level Intergovernmental Meeting of the Mid-term Global Review of the Implementation of the Programme of Action for the Least Developed Countries for the 1990s will be able to recommend new and additional measures for the full and timely implementation of the Programme of Action. 39.  The Ministers called on the international community to give special attention and support to the special development problems and needs of the land-locked developing countries, particularly through technical cooperation with and financial assistance by developed countries, and

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multilateral financial development institutions to enable these countries to effectively participate in a rapidly globalizing world economy. They also noted that as transit developing countries faced serious economic problems their efforts at developing a viable transit infrastructure also needed financial and technical support from the international community. 40.  The Ministers called on the international community to give special priority to the implementation of the Programme of Action for the Sustainable Development of Small Island Developing States, and in particular underlined the urgency of new and additional resources to achieve this. 41.  The Ministers reaffirmed the importance of the operational activities for development of the UN system in assisting socio-economic progress of all developing countries, and stressed that such activities should be carried out in accordance with the mandates established by the General Assembly, and within the framework of national priorities of the developing countries and in accordance with national priorities. They expressed disappointment at the continuing decrease in resources available for the UN operational activities for development, and reiterated their call on developed countries to increase their pledges for the financing of the UN operational activities for development on a continuous, predictable and assured basis. 42.  They emphasized that improvement in the effectiveness and efficiency of the operational activities for development required an urgent increase in the allocation of resources by donor countries on a continuous, predictable and assured basis. In that context, they also reaffirmed that those attempts to continue revising for funding mechanism, reforming the institutional structure and management at the field level or even unifying the administrative capacities of the Funds and Programs, not only undermine the capabilities of each Fund and Program, but also the decline in the availability of resources as the main concern for the fulfilment of agreed objectives and targets. 43.  The Ministers emphasized the need for international institutions to attain a truly democratic and international character in terms of equal participation of all members in their decision-making processes in order to meet the challenges of sustaining economic growth and development in the context of the globalization of the world economy and deepening economic interdependence among nations. In this context, they recognized that the UN, being the most important universal institution must, in accordance with the purposes and principles of the Charter, play a central and active role in shaping international cooperation for economic growth and development, and examining the issue of development using an integrated approach. They stressed that the mandate of the UN in development and economic matters must be fully exercised and balance ensured in its consideration of development issues vis-à-vis peace-keeping and other issues. The Ministers strongly believed that this mandate could only be strengthened through the political will and cooperation of Member States, including the provision of additional resources aimed at strengthening the UN structures dealing with development to ensure the full implementation of their mandates. 44.  The Ministers looked forward to the review to be undertaken at the fiftieth session of the General Assembly on the reforms and revitalization in the economic and social fields and stressed that such was less likely to be successful as long as some major contributors refrained from paying their assessed contributions unconditionally, in full and on time. The Ministers also stressed the need to correct the negative impact of these reforms and to improve the participation of developing countries both in the decision-making process within the governing bodies of the Funds and Programmes of the UN system as well as within the secretariats of the organizations of the U.N. system. 45.  The Ministers thus recognized the need for the General Assembly being the highest intergovernmental mechanism for policy formulation and appraisal on matters relating to the economic, social and related fields, to exert more decisively its policy leadership on these issues as provided

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for in the United Nations Charter. In this regard, they stressed the comprehensive mandate of the United Nations on economic and social issues as stated in the Charter and rejected the notion of division of labour or comparative advantage of specific institutions in the field of development. Moreover, they stressed that ECOSOC’s role, as reflected in the Charter and recent General Assembly resolutions, must be fully exercised. 46.  The United Nations Conference on Trade and Development (UNCTAD) is the sole entity in the United Nations system dealing with trade and development questions in a comprehensive manner. It is therefore an important focal point within the United Nations for the integrated treatment of development and interrelated issues. The Ministers therefore attached particular importance to the strengthening of UNCTAD in order to enable this institution to exercise fully its development mandate, particularly with the creation of WTO, in the light of the globalization of the international economy and the deepening economic interdependence among states, and the implications of these phenomena on the prospects of economic growth and development of the developing countries, in particular the least developed countries and the countries of Africa. The Ministers also stressed that UNCTAD had attained greater relevance in the present context after the conclusion of the Uruguay Round and the creation of WTO, which has reinforced the need for a policy-oriented forum or institutions with a strong trade and development perspective. They therefore reaffirmed their strong commitment to strengthen UNCTAD and urged the international community to support fully the strengthening of UNCTAD. 47. The Ministers welcomed the appointment of Ambassador Rubens Ricupero, the new Secretary-General of UNCTAD, and were confident that the Secretary-General of the United Nations will provide him with full support to enable him to carry out his tasks. They further welcomed the hosting of the ninth session of UNCTAD by the government of the Republic of South Africa in Johannesburg from 26 April to 11 May 1996, and looked forward to UNCTAD IX as a means towards strengthening UNCTAD’s mandate on trade and development and as a forum for generating important contributions and initiatives for development. 48.  The Ministers also emphasized the renewed urgency for promoting the industrialization as a key element for the economies of the developing countries as a whole, and the essential role of the United Nations Industrial Development Organization (UNIDO) in that regard. They believed the role of UNIDO has gained increasing relevance as a result of the globalization of production and the growth of related trade, investment and technology flows, and the implications of these developments on the industrialization of developing countries. They reiterated their resolve to strengthen and support UNIDO in fulfilling its development-oriented programmes. 49.  The Ministers further resolved to strengthen the regional economic commissions, which they recognized as valuable development-oriented focal points of the UN system at the regional level and in assisting countries in each region in the implementation of the recommendations of major conferences on development. They stressed the role of these commissions in assisting the General Assembly, through ECOSOC and in conjunction with other specialized agencies to undertake its action- and policy-oriented work in the economic and development field. It was therefore deemed necessary that ECOSOC enhance coordination with and among these bodies. The Ministers called on the UN system, including the Bretton Woods institutions, to support the work of the regional economic commissions. 50.  In the light of the increasing role of these institutions in enhancing the development process and international development cooperation, which is the basis for peace and security, the Ministers pledged to enhance the roles and contributions of these organizations, specialized agencies and regional commissions with regard to the development process. 51.  The Ministers called for greater interaction and coordination between the Bretton Woods institutions and other bodies of the U.N. system, including its specialized agencies and organizations at the policy level. This should be considered, on a priority basis, in the context of the

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Agenda for Development, as called for in General Assembly resolution 47/181. In this regard, the Ministers stressed the need for a review and redefinition of the mandate and functions of the Bretton Woods institutions, including the democratization of their governance and promoting more participative and transparent internal decision-making mechanisms. 52.  The Ministers reaffirmed that South-South cooperation was an integral element of international cooperation for development as well as an essential basis for collective self-reliance and economic growth and development. They therefore recognized the need for developing countries to exploit actively all opportunities for expanding South-South Cooperation and the need to examine in-depth how the Caracas Programme of Action (CPA) and the Action Programme on Economic Cooperation (APEC), could complement and reinforce each other. They also emphasized the need to revitalize the implementation of the Global System of Trade Preferences among developing countries (GSTP), especially with regard to the conclusion of the Second Round of GSTP Negotiations. They also recognized that the post-Cold war era offered new opportunities and challenges for South-South cooperation at all levels. 53.  They also reaffirmed that South-South cooperation is not a substitute for but is complementary to North-South cooperation. They therefore stressed that it was in the interest of the international community, particularly of the developed country partners, to support South-South cooperation, through financial and other means. In this regard, they called upon the United Nations to consider convening an international conference on South-South cooperation not later than 1997. 54.  The Ministers emphasized the increasing importance and complementarity of economic and technical cooperation among developing countries as a means of supporting the development efforts of these countries and ensuring their effective participation in the emerging global economic order that is increasingly shaped by the forces of globalisation and economic liberalization. In this regard, they welcomed the adoption of New Directions by the High-level Committee on the Review of TCDC and also the increased allocation by the Executive Board of UNDP of resources for such activities. They urged the Administrator of UNDP to continue to preserve the separate identity of the Special Unit for TCDC and to provide the necessary resources to enable the Unit to carry out its responsibilities. 55.  The Ministers recognized the importance of the role and activities of the South Centre and reiterated their commitment to support the Centre. In this regard, they welcomed the entry into force of the Agreement to Establish the Center and invited all members of the Group who had not done so to consider ratifying the Agreement. They also welcomed the positive outcome of the First Session of the Council of Representatives held in Geneva on 18 and 19 September 1995, and invited the South Centre to strengthen further its relationship and cooperation with the Group of 77. 56.  The Ministers approved the report of the Committee of Experts of the Perez-Guerrero Trust Fund (PGTF) presented in accordance with the mandates of IFCC-VIII, and approved its recommendations. They expressed satisfaction with the results achieved by PGTF and agreed to explore ways and means to expand its resources. They also congratulated the South Centre, the first recipient of the G-77/UNDP award on ECDC/TCDC. 57.  The Ministers welcomed the generous offer made by the Government of the Republic of the Philippines to host the ninth session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-IX), to be held in Manila from 9 to 12 February 1996. In this regard, the Ministers urged Member States of the Group of 77 to participate actively and to be represented at a high level given the importance of this meeting. 58.  The Ministers also noted with satisfaction the outcome of the Sectoral Review Meeting on Energy, held in Jakarta, Indonesia from 5–7 September 1995 and welcomed the generous offer

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made by the Government of Guyana to host the Sectoral Review Meeting on Food and Agriculture to be held in Georgetown, from 15–19 January 1996, and urged members of the Group of 77 to participate actively at that meeting. 59.  The Ministers commended the Chairmen of the Group of 77 and the Coordinating Bureau of the Non-Aligned Movement in operationalizing the Joint Coordinating Committee of the Group of 77 and the Non-Aligned Movement (JCC). They stressed that coordination and cooperation between these two groups is needed in order to advance the position of the developing countries in various multilateral issues and reaffirmed their commitment to continue such coordination through the JCC. 60.  The Ministers welcomed the demarche of the co-chairmen of the JCC to the G7 meeting at Halifax in which the position of developing countries on major development issues and the G-77 Agenda for Development were conveyed. In this regard, the Ministers stressed the importance that developed countries partners, including the G-7, take fully into account the views and interests of the developing countries in their deliberations and decision-making on global economic issues. 61.  The Ministers underscored that the occasion of the Eleventh Conference of Heads of State or Government of the Non-Aligned Countries to be held in Cartagena de Indias, Colombia, on October 18–20, 1995 will offer a new and historic opportunity to reinvigorate the joint actions and strategies of the developing countries on international issues and to provide further political impetus to the coordination and cooperation between the Non-Aligned Movement and the Group of 77. 62.  The Ministers noted the initiation of Palestinian self-government arrangements in the Gaza strip and Jericho area and called for the speedy extension of Palestinian self-government arrangements to encompass the entire occupied territories in implementation of the Declaration of Principles on Interim Self-Government Arrangements. In that regard, they reaffirmed their support of the Palestinian people as they strive to attain their inalienable rights, including the right to establish an independent State on their national soil, including Jerusalem. They also reaffirmed the permanent responsibility of the United Nations towards the question of Palestine. They emphasized the need for international assistance to support Palestinian development efforts in the economic and social fields. The Ministers also reaffirmed their support for the peace process initiated at the Peace Conference on the Middle East held at Madrid, which aimed at achieving a comprehensive, just and lasting peace in the Middle East based on Security Council resolutions 242 (1967), 338 (1973) and 425 (1978) and the principle of land for peace. 63.  The Ministers expressed concern over the serious financial situation of the United Nations due to the failure of Member States, in particular some major contributors, to meet their financial obligations in full and on time under the Charter. This has adversely affected the Organization’s capability to implement fully the programmes and activities which Member States have entrusted to it, particularly those in the development field, and also to meet its financial obligations. 64.  The Ministers reaffirmed the legal obligation of Member States to bear the expenses of the Organization and the requirement to pay their assessed contributions in full and on time in accordance with the Charter of the United Nations. While recognizing the need to extend sympathetic understanding to those that are temporarily unable to meet their financial obligations as a consequence of genuine economic difficulties, in all other cases, the Ministers appealed to the membership, in particular some major contributors, to exert every effort to pay all their dues unconditionally, in full and on time.

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20.  Twentieth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 27 September 1996 a.  Ministerial Declaration 1.  The Twentieth Annual Meeting of the Ministers for Foreign Affairs of the Group of 77 and China was held in New York on 27 September 1996. 2.  The Ministers underlined the emergence of the Group of 77 and China as a major force in world affairs and its constructive contributions over the past three decades to development and international economic cooperation. The Ministers reiterated the need for increasing cooperation within the Group of 77 and China to define mid-term and long-term strategies to further mobilize collective strength through well coordinated positions and approaches with a view to safeguarding the overall interests of developing countries, and enhancing the Group’s joint negotiating capacity on all major development issues in the U.N. system, recognizing that developing countries, as a whole, are still confronted with many shared and common problems and challenges flowing from the deepening interdependence among nations and accelerated globalization of the world economy. 3.  The Ministers expressed their firm commitment to the continuing validity and relevance of the objectives and principles of the Group of 77 and China. They reaffirmed their resolve to pursue the objectives and principles contained in the joint Declaration adopted by the Special Ministerial Meeting commemorating the 30th anniversary of the founding of the Group of 77 held in New York on 24 June 1994. 4.  In reviewing developments in the world economic scene, the Ministers recognized the importance, inter-alia, for world economic growth and expansion of trade, of the economic progress made by a number of members of the Group and the increased importance of the Group in world economic affairs. At the same time, they expressed concern that other members of the Group continue to face severe difficulties and experience sluggish or even negative economic growth. They stressed the urgency and importance of heightened international support for the developing countries, particularly the African, and the least developed countries, in order to broaden their opportunities for growth and development. 5.  The Ministers stressed that the processes of globalization and liberalization bring challenges and opportunities which affect virtually all countries, but in strikingly different ways. Benefits in some countries contrast with instability and marginalization in others, particularly in developing countries. Such an uneven trend requires renewed partnership and the fulfillment of international cooperation commitments in order for developing countries to effectively benefit from the process of globalization and liberalization. This process must be managed on the basis of principles of non-discrimination and avoidance of measures and unfair competitive advantage as well as the recognition to the need for safeguard and preferential treatments of developing countries. 6.  The Ministers reiterated their concern that the special needs and vulnerabilities of Small Islands Developing States (SIDS) continue to create barriers for these countries to effectively participate in a rapidly globalizing world economy. The Barbados Programme of Action should be considered in this regard as a most comprehensive tool for the international community to address this and other serious problems facing SIDS. The Ministers expressed concern that, although great efforts have been undertaken by SIDS at the national level, there has not been commensurate support at the international level. They renewed their call for a strengthening of efforts at the international level in the implementation and follow-up of the Barbados Programme of Action.

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7.  The Ministers called on the international community to give special attention and support to address the special development problems and needs of the Land-locked developing countries, particularly through technical cooperation with and provision of financial assistance by developed countries, and multilateral financial institutions to enable these countries to effectively participate in a rapidly globalizing world economy. In this regard, the Ministers further recognized that transit developing countries faced serious economic problems and that their efforts at developing a viable transit infrastructure also needed financial and technical support from the international community. 8.  The Ministers urged the international community, particularly the developed countries, to foster an equitable and favourable international economic and financial environment in order to help eradicate poverty, promote sustained economic growth and sustainable development in developing countries, through the elimination of trade barriers and restrictions to market access, increasing and improving the quality of Official Development Assistance, encouraging and supporting the flow of investment and appropriate technologies to developing countries and improving their access to capital from international financial institutions and commercial sources. 9.  The Ministers expressed concern over the widening gap between the developed and developing countries and the continued uncertain prospects of global economic recovery and its consequences for developing countries. They stressed the need for concerted multilateral action to achieve the objectives of the United Nations Charter, both in resolving economic and social problems as well as in promoting peace and security. To this end, they called for the full and effective participation of the developing countries in the process of decision-making and in the resolution of world economic problems through strengthening of multilateralism aimed at promoting economic growth and development. 10.  The Ministers called upon the developed countries to desist from taking any measures aimed at introducing new conditionalities in international economic cooperation, in particular those relating to trade and the environment, labour standards, ODA and technology transfer, and restrictions on market access for the commodities, manufactures and services of developing countries, particularly in the light of dwindling resources for development cooperation. 11.  The Ministers reiterated the urgent need for a substantial expansion of official development assistance (ODA) in view of the declining levels of such assistance in recent years. In this regard, they strongly urged compliance with internationally agreed targets of ODA and commitments for new and additional resources, particularly the fulfillment by the donor countries who had failed to do so of the 0.7 per cent of their GNP for developing countries by the year 2000 and commitments reflected in Agenda 21 and 0.15 per cent for the least developed countries in accordance with the Paris Declaration and Programme of Action adopted in September 1990. They also expressed concern over the reduction of ODA, particularly the contraction of ODA in real terms for the African and Least Developed Countries. They also stressed the need for qualitative improvements in ODA by the donor countries, inter alia, through reduced costs of repayment. They reiterated also the urgency of convening a United Nations Conference on the Financing of Development and welcomed the recommendation recently made in this regard by the Secretary-General, contained in his report on an Agenda for Development. 12.  The Ministers expressed their deep concern over the chronic financial situation of the United Nations due to the failure of Member States, in particular some major contributors to comply with their financial obligations in full, on time and without conditions. Its magnitude is unprecedented and have virtually left the Organization teetering on the brink of insolvency and therefore represents the most acute threat to multilateral cooperation for development, it has also resulted in the delay of the reimbursement of the troop contributing countries, particularly those of the developing countries.

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13.  The Ministers reaffirmed the legal obligation of Member States to bear the expense of the Organization in accordance with the Charter of the United Nations and the requirements to pay their assessed contributions in full and on time and without conditions. While recognizing the need to extend sympathetic understanding to those that are temporarily unable to meet their financial obligations as a consequence of genuine economic difficulties, in all other cases, the Ministers appealed to members of the United Nations, in particular some major contributors, to exert every effort to pay all their dues unconditionally, in full and on time. 14.  The Ministers reaffirmed that the principle of the ‘capacity to pay’ is fundamental in the assessment of the Member States contributions to the United Nations. The Ministers further stressed that the developing countries should not be assessed a rate higher than the capacity to pay as a result of any adjustments in the scale. The Ministers noted that the current floor assessment has resulted in a serious departure from the principle of the capacity to pay for a large number of small member states from developing countries. They urged the 51st session of the General Assembly to lower the floor rate and to give due consideration to the difficulties of LDCs and other developing countries. 15.  The Ministers also reaffirmed that the principle contained in the special scale of assessments established in resolution 3101 (XXVIII) for the apportionment of the costs of peacekeeping operations must be adopted on a permanent basis. In this regard, they stressed that the scale for the financing of these operations must clearly reflect the special responsibilities of the permanent members of the Security Council and economic situation faced by other countries or groups of countries, particularly developing countries. The Ministers further stressed that the establishment of a ceiling and a floor for the Permanent Members of the Security Council is totally unacceptable. 16.  The Ministers expressed concern at the continuing financial cutbacks to an already severely limited programme budget of the United Nations which has continued to threatened the very functioning of the United Nations and would adversely affect the Organization’s capability to implement fully the programmes and activities which Member States have entrusted to it, particularly in the field of international and regional cooperation for development. In this regard, the Ministers stressed the need for the reform process of the United Nations, to strengthen, rather than weaken the implementation of all approved programmes and activities and related secretariat support structures. 17.  The Ministers reaffirmed the priorities of the Group of 77 and China in the work of the Organization which are based on the principles of peace, development, equality and justice. The Ministers reiterated that development should remain high on the agenda of the international community and an integral part for the work of the United Nations System. 18.  The Ministers acknowledged, with appreciation the initiatives of the Secretary-General and Secretariat aimed at boosting international cooperation for economic and social development in spite of the difficult circumstances and the deep financial constraint. In this regard, they expressed their concern in the decline of resources devoted to that end. The Ministers reiterated their support for the international civil service and the need to improve the conditions of service so that the United Nations can attract and maintain the best staff at the service of the whole international community on the widest possible geographical representation and on gender balance and equity. 19.  The Ministers expressed the urgent need for the international community to call upon certain developed countries to immediately eliminate laws and regulations with adverse extra-territorial impacts and other forms of coercive economic measures against developing countries. They emphasized that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, inter-alia, sovereign equality of States, non-intervention and non-interference in their internal affairs, but also severely menace the freedom of trade and

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investment, which are also spelled out in many international legal instruments, including the principles establishing the World Trade Organization. 20.  The Ministers reaffirmed that in an increasingly globalized and interdependent world it is essential to revitalize the dialogue between the developed and developing countries to strengthen global cooperation for development based on mutual benefit and shared responsibilities. They further reaffirmed that the international community must accept the imperative needs for global partnership if peace and prosperity are to be effectively advanced. 21.  The Ministers underlined that the General Assembly resolution 50/122 entitled ‘Renewal of the dialogue on strengthening international economic cooperation for development through partnership’, could serve as an essential mechanism to further strengthen the efforts of the international community in implementing the agreed commitments and outcomes of the major United Nations conferences as well as in implementing relevant major United Nations resolutions. The dialogue could also serve as a mechanism to discuss emerging and urgent issues relevant to the strengthening of global partnership for development. In this respect, the Ministers stressed the importance of achieving a successful conclusion to the forthcoming first high-level dialogue on the social and economic impact of globalization and interdependence and their policy implications, as envisaged in that resolution. 22.  The Ministers stressed the critical importance of effective follow-up to landmark UN conferences and summits held since 1990, namely the World Summit for Children, the Second United Nations Conference of the Least Developed Countries, the United Nations Conference on Environment and Development, the World Conference on Human Rights, the Global Conference on the Sustainable Development of Small Island Developing States, the World Conference on Natural Disaster Reduction, the International Conference on Population and Development, the World Summit for Social Development, the Fourth World Conference on Women, and the United Nations Conference on Human Settlements. The commitments, recommendations and measures agreed to at those conferences must be implemented as soon as possible. In this regard, it is especially important to fully honour the commitments pertaining to the financing of actions envisaged in the conferences, as well as establishing effective institutional mechanisms for follow-up action. In regard to the latter aspect, the Ministers welcomed the adoption of resolution 1996/39 by the 1996 substantive session of the Economic and Social Council which will contribute to the United Nations system’s ability to implement the decisions taken at the Conferences. 23. The Ministers reiterated their commitment to negotiate an action-oriented Agenda for Development which responds to the urgent demands for international cooperation for development, restore the imperative of development as a central concern in the international agenda, and strengthen the role and performance of the United Nations in the economic and social fields. An Agenda for Development should contain specific, concrete and pragmatic proposal which could be translated into action and could be operationalized, based on the global priorities set by the Plans of Action of the UN major conferences and summits. In this regard, they noted the status of negotiations on the Agenda and supported the General Assembly decision 50/45 that the Ad-Hoc Open-Ended Working Group of the General Assembly on an Agenda for Development, should continue its work in the 51st session of the Assembly, with a view to concluding its work on the elaboration of the Agenda as soon as possible. They urged all other Members States to commit themselves to make every effort to continue working together in order to achieve a meaningful Agenda for Development. The Ministers stressed the importance that, during the intersessional period until the next session of the Working Group, the document on an Agenda for Development could benefit from an appropriate analysis and substantive inputs provided by the South Centre. 24.  The Ministers observed that while environmental problems of developed countries are associated with unsustainable patterns of consumption and production, those afflicting developing

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countries are, to a large extent, the results from poverty and underdevelopment and of their technical and financial limitations. They stressed the need for prompt and full implementation of all their commitments and recommendations of the United Nations Conference on Environment and Development (UNCED), which have more relevance today than ever before. In this regard, they stressed that such implementation should not contradict the right of developing countries to benefit fully from the utilization of their resources, which are vital for sustained economic growth and sustainable development. They expressed grave concern, in particular that four years, after the UNCED, the provision of new and additional financial resources, the transfer of environmentally sound technologies on concessional and preferential terms, scientific and technical cooperation and the appropriate dissemination of information have not materialized. They pointed out that the existing Global Environment Facility (GEF) resources are far from being adequate. In this context, they also urgently called on the international community, particularly the developed countries, to fulfill all their commitments contained in Agenda 21, including of the major conventions arising from the UNCED process. They also emphasized that the forthcoming Special Session of the General Assembly for an overall review and appraisal of the implementation of Agenda 21 should provide a unique opportunity for the international community to analyze the main obstacles hindering the effective implementation of Agenda 21 and put forward concrete proposals to address these issues, to ensure that the new global partnership for sustained economic growth and sustainable development in all countries, particularly the developing countries, as envisaged at the Rio Summit, shall be transformed into reality as soon as possible. 25.  The Ministers reaffirmed the urgency to assert the required political will to ensure an open, rule-based, equitable, secure, non-discriminatory, transparent and predictable multilateral trading system with the aim of achieving the complete integration of the developing countries into the world economy and the new international trading system. They reiterated the need for full implementation of the Uruguay Round Agreement and also called upon Member States, especially the developed countries, to implement fully the commitments agreed upon in the Final Act, including measures to mitigate adverse consequences on the developing countries. In this regard, the Ministers expressed the importance of the First Ministerial Conference of the World Trade Organization to be held in Singapore in December 1996. They also stressed that the Final Act confers special and differential treatment for developing countries, in particular the least developed countries and the net food importing countries. They further rejected the use of disguised protectionist measures in the form of new concepts seeking to link domestic standards relating to environment, labor laws, and other issues, through the application of arbitrary trade measures and bilateral pressures against developing countries. They also emphasized the importance of ensuring the universality of the World Trade Organization and, in this context called for expedition in accession process of applying developing countries that are not members of the General Agreement on Tariffs and Trade. They furthermore underscored that in the review of the application for membership no political consideration should be invoked to impede accession of the developing countries. 26.  The Ministers expressed grave concern at the continuing adverse external economic environment for development characterized by, inter alia, increased protectionist tendencies in and unilateral coercive actions by the developed countries. 27.  The Ministers expressed their concern over attempts to overload the agenda of the nascent World Trade Organization, as it could adversely affect the carefully balanced package of rights and obligations negotiated in the context of the Uruguay Round agreements. The Ministers cautioned that the introduction of environmental labeling or social clauses in the international trade regime would have a negative impact on economic growth and development, and would impose an unjustifiable economic and social burden on the developing countries. They underscored that the essential priority should be the implementation and fulfillment of these agreements and the

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adoption of measures to mitigate adverse consequences on the developing countries. The Ministers underlined that UNCTAD should continue to facilitate the integration of developing countries in the international trading system in a complementary manner with the World Trade Organization and to promote development through trade and investment. 28.  The Ministers regretted that despite the adoption of several approaches undertaken over the past decade by the international community, the debt crisis continues to persist as one of the main constraints for the development of developing countries, especially the least developed countries, and for those at the lower, lower-middle and middle-income levels. They reiterated the urgent need for the international community, particularly the creditor countries and international financial institutions to adopt an effective, comprehensive and equitable, once-and-for-all development oriented and durable solution to the debt problem of the developing countries, including debt reduction and increased grants and concessional financial flows, in particular for the least developed countries and Africa. They stressed the urgency for the Joint IMF and World Bank meeting in October 1996 to produce a definitive action in addressing effectively the multilateral debts of developing countries. At the same time, they also stressed that structural adjustment policies must not divert resources away from social priorities in debtor countries. 29.  The Ministers noted that the funding of multilateral financial institutions through their various concessional mechanism have proved insufficient against the requirements of development. They called upon the donor-developed countries to increase substantially the capital base of the World Bank and the IMF and to meet their commitments under the eleventh replenishment of the International Development Association (IDA). The Ministers also called on the developed countries to increase resources for the International Fund for Agricultural Development, the Global Environment Facility (GEF), the Structural Adjustment Facility (SAF) and the Enhanced Structural Adjustment Facility (ESAF) and expressed their support for the transformation of the ESAF into a permanent IMF facility. 30.  The Ministers urged the international community to reaffirm its commitment to seek lasting solutions to the severe challenges facing the African continent with special attention to, among others, regional and subregional cooperation and integration, durable solution to Africa’s external debt problem, diversification of African economies, more access to trade and market opportunities, resource flows, and transfer of technology. The Ministers welcomed the Mid-Term Review of the United Nations New Agenda for Development of Africa in the 1990s (UN-NADAF) at which Africa and the international community renewed their commitment to and adopted a set of recommendations on a new measures aimed at giving further impetus to the implementation of the New Agenda in the spirit of partnership. The mid-term review acknowledged positive changes that are taken place in the region during the last few years. This, notwithstanding, the socio-economic situation in Africa remained critical and to consolidate the positive achievements it is necessary for the international community to continue to support Africa’s efforts through the provision of new and additional resources and by ensuring a favourable external economic environment. The Ministers confirmed that the United Nations System-wide Special Initiative for Africa should be a complement to UN-NADAF which could contribute to its implementation. 31.  The Ministers urged the full and effective implementation of the Habitat Agenda and the strengthening of the role and functions of the United Nations Centre for Human Settlements (HABITAT), taking into account the necessity for the Centre to focus on well-defined and thoroughly-developed objectives and strategic issues. They reaffirmed their commitment to the full and progressive realization of the right to adequate housing as provided for in international instruments. In this regard, they recognize the particular needs of women, children and youth for safe, healthy and secure living conditions. To this end, the Ministers pledged their support for the successful implementation of the Habitat Agenda and its Plan of Action. Regarding the

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implementation of the Habitat Agenda, they fully recognized the contribution of the regional and national action plans prepared for this Conference. The Ministers expressed satisfaction at the leading role played by the Group of 77 and China in the elaboration and adoption of the Istanbul Declaration and the Habitat II Agenda. They commended the Chairmen of New York and Nairobi Chapters for the outstanding contributions of the Group of 77 and China to the Habitat II Conference. 32.  The Ministers expressed strong support for the World Food Summit to be held at the FAO Headquarters in Rome, from 13 to 17 November 1996. They attach great importance to this event since it is the first time that the world leaders will meet to debate and renew their political commitment to eradicate hunger, malnutrition and address the issue of food security for all peoples, through the adoption of policies and actions at the national, subregional, regional and international levels. Despite important decisions adopted at the World Food Conference in 1974, nearly 800  million men, women and children, particularly in the developing countries, suffer from hunger and chronic malnutrition, and 200 million children under the age of 5 suffer from acute protein deficiencies. Thus, they urged Governments attending the Summit to adopt policies and concrete measures to avert this grave situation in order to prevent social and humanitarian crisis in the near future. 33.  The Ministers fully recognized that people’s health is central to economic and social development. Not only are people the prime movers in that process, but also without promoting and protecting their health, there is no hope of achieving development objectives. The Ministers urged that within the nations most affected by poverty and disease, and especially by the new and emerging diseases, there is need for renewed efforts by development partners in investing in the agenda for health for all, as promoted by WHO. In a growing climate of globalization, the health of one part of the world affects the other, and it becomes increasingly necessary to work in partnership to invest in the health of the world’s population. 34.  The Ministers stressed the fact that 1996 is the International Year for Eradication of Poverty and that the General Assembly declared the Years from 1997 to 2006 as the First Decade for the Eradication of Poverty. In this context, the Ministers reaffirmed that the goal of eradicating poverty in the world is an ethical, social, political and economic imperative which can only be achieved through a multidimensional and integrated approach. They also emphasized that the commitments agreed at the World Summit for Social Development should be fully implemented. To this end they look forward to the Special Session of the General Assembly in the year 2000 which will review and appraise the outcome of the Summit, with a view to considering further initiatives on the eradication of poverty. 35.  The Ministers recognized the need to focus international efforts and policies to address the root causes of poverty and to provide for the basic needs of all. These efforts should include the elimination of hunger and malnutrition; the provision of food security, education, employment and livelihood, primary health care services, safe drinking water and sanitation, and adequate shelter; and participation in social and cultural life. The Ministers also recognized that the feminization of poverty has become a significant problem, special priority will be given to the needs and rights of women and children, who often bear the greatest burden of poverty, and to the needs of vulnerable and disadvantaged groups and persons. 36.  The Ministers recognized that education is a human right and an essential tool for achieving the goals of equality, development and peace. The Ministers urged the international community to implement the relevant recommendations of all the international conferences concerning the question of education with the aim of eradicating illiteracy all over the world. 37.  The Ministers also recognized that non-discriminatory education without distinction as to race, national origin, gender, age or disability would benefit all and thus ultimately contribute to more equal relationships between women and men. Literacy of women is an important key to

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improving health, nutrition and education in the family and to empowering of women to participate in decision making in societies. 38. The Ministers recalled their commitment to achieve the Universal Ratification on the Convention on the Rights of the Child, and the universal signing of the World Declaration on the Survival, Protection and Development of Children and its Plan of Action, as well as their effective implementation. 39.  The Ministers emphasized the importance to prevent and eliminate all forms and manifestations of violence against women and girls. 40.  The Ministers recognized the need to develop the fullest potential of girls and women of all ages, ensure their full and equal participation in building a better world for all and enhance their role in the development process. 41.  The Ministers looked forward to due consideration by the General Assembly at its 51st session of the recommendation of the Economic and Social Council, on the adoption of the United Nations Declaration on Crime and Public Security. 42.  The Ministers fully recognized that the new forms of criminal activities of international drug trafficking organizations call for enhanced international cooperation as well as a renewal of the international commitment to fight against these menaces, and require the formulation of new strategies, approaches and objectives that, respectful of the sovereignty of States, can deal more effectively with the international operations of those involved in the illegal traffic of drugs and arms, the diversion of precursors and essential chemicals, and money laundering through financial and non-financial operations. In order to promote international cooperation to deal with this critical question, the Ministers fully support the convening of a Special Session of the General Assembly on Drug Abuse and Illicit Trafficking. 43. The Ministers reaffirmed the importance of the contributions of the Non-Governmental Organizations to the work of the United Nations, and look forward to the examination by the General Assembly, at its fifty-first session, of the question of the participation of NGOs in all areas of work of the United Nations in the light of the experience gained through the arrangements for consultation between the non-governmental organizations and the Economic and Social Council. 44.  The Ministers reaffirmed the vital importance of strengthening and revitalizing the United Nations system as a means of enhancing international economic cooperation. In this regard, they recognized the importance of the deliberations of the High-Level Working Group on Strengthening of the United Nations system, particularly with regard to the General Assembly and the Secretariat, as well as the significance of the adoption of General Assembly resolution 50/227 on the restructuring and revitalization of the United Nations in the economic, social and related fields. They emphasized the urgency of the prompt and full implementation of its provisions relating to increasing resources for operational activities for development; the establishment of new funding modalities; the reaffirmation of the distinct roles of the Economic and Social Council and the General Assembly in the economic and social fields; the need for enhancing the role to the General Assembly in policy making; making the substantive session of Economic and Social Council more focused and action-oriented; and enhancing the annual policy dialogue in order to ensure a full exchange of views between the U.N. system and the Bretton Woods Institutions. The overall objective of any restructuring and revitalization should be to place the issue of development at the forefront of the agenda of the United Nations. 45.  The Ministers congratulated the Chairman for his effective coordination and harmonization of the views of the Group in the deliberations and negotiations at the different working groups of the General Assembly particularly those dealing with the further revitalization and restructuring of the United Nations in the economic, social and related fields, the UN financial crisis,

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elaboration of an Agenda for Development and the strengthening of the United Nations system. They reiterated their commitment to continue cooperating with other regional groups to pursue the process of reform and revitalization of the United Nations. 46.  The Ministers reaffirmed their commitment to strengthen the role of the United Nations in the promotion of development of various United Nations institutions, programmes, funds and specialized agencies that serve the development objectives of developing countries. To this end, they strongly reaffirmed their commitment to support and strengthen the role of the United Nations system in the field of development by enabling relevant institutions, particularly UNDP, UNICEF, UNCTAD, UNIDO, FAO, UNESCO and the United Nations Centre for Human Settlements, to continue playing their leading roles in their respective fields of competence. 47.  The Ministers stressed that enhancing collaboration between the United Nations and the Bretton Woods institutions requires full and effective participation of developing countries in the decision making processes of these institutions. They also underline that policy dialogue at the intergovernmental level on global macroeconomic policy issues should be an important element in promoting coherence, while encouraging a plurality of analyses and views, on issues related to sustained economic growth and development. The Ministers emphasized that such collaboration should be based on the principles of neutrality and non-conditionality. They underscored that new mechanisms of cooperation between the Bretton Woods Institutions and other bodies of the United Nations system through, inter alia, participation in relevant meetings, information gathering, information exchange, research and policy analysis should be encouraged and pursued on a systematic basis. The multilateral financial institutions and the World Trade Organization should be invited to prepare reports and studies on relevant themes such as multilateral external debt, challenges and opportunities of global financial integration, financing for development and functioning of the multilateral trading system, in order to enhance discussions at the United Nations General Assembly and at the Economic and Social Council. 48.  The Ministers welcomed the outcome of UNCTAD IX which reaffirmed UNCTAD’s mandate as the principal organ of the United Nations General Assembly and the focal point within the United Nations for the integrated treatment of development and interrelated issues in the areas of trade, finance, technology, investment and sustainable development. As a universal forum in the service of the development, UNCTAD is well placed to contribute to new and emerging issues, such as investment and enterprise, while continuing to deal with persistent problems. The Ministers, therefore, reaffirmed their strong commitment to strengthen UNCTAD and urged the international community to provide UNCTAD with the political and financial support to enable it to fully discharge its mandate. The Ministers welcomed the mandate given to UNCTAD to identify and analyze implications for development of issues relevant to a possible multilateral framework on investment, taking into account the interests of the developing countries. The Ministers also stressed the need for UNCTAD to continue its activities regarding Small Island Developing States and other small vulnerable economies as mandated by relevant General Assembly resolutions and the United Nations Global Conference on the Sustainable Development of Small Island Developing States. 49.  The Ministers reaffirmed the continued urgency to promote industrialization as a dynamic instrument essential to the rapid economic and social development of developing countries, contributing to the eradication of poverty and the creation of productive employment. They emphasized that in a globalized world economy with wide-ranging implications for the prospects of economic growth and development of the developing countries, the strengthening of their industrial base, in particular in African and the least developed countries, has become imperative. The role of United Nations Industrial Development Organization (UNIDO) has therefore assumed greater relevance and importance. They underscored the role of UNIDO as an independent specialized agency with a central coordinating role within the United Nations system in the field of

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industrial development. They noted with satisfaction the completion of the reform process undertaken successfully by UNIDO which has enhanced its effectiveness as a global forum for supporting and promoting industrial development and a provider of specialized technical cooperation services. The Ministers reiterated their strong commitment to strengthen and support UNIDO in exercising fully its development mandate, and urged this organization to facilitate better access to its work for those developing countries who are not members. 50.  The Ministers recognized sub-regional and regional economic cooperation as an important means of expanding trade and investment opportunities as well as the transfer of technology. They stressed the need for a strong commitment by the international community to pursue regional economic cooperation within the framework of an open, equitable, non-discriminatory and rule-based multilateral trading system. In this regard, the Ministers noted that the regional economic commissions provide a valuable forum and mechanism to promote and strengthen regional cooperation. The regional economic commissions should enhance regional cooperation between their member states in economic, social and related activities and strengthen the relationships in these areas both among themselves and with other countries of the world. They resolved to strengthen the regional economic commissions, which they recognized as valuable development oriented focal points of the U.N. system at the regional level and in assisting countries, in particular the smaller economies of the regions, in the implementation of the recommendations of major conferences on development. 51.  The Ministers reaffirmed their commitment to further strengthen South-South cooperation and reiterated their convictions that it constitutes an integral and essential part of the efforts of the developing countries to promote economic growth, increase technological capacities and accelerate development. In this regard new political and economic realities call for a greater partnership for pursuing new opportunities for strengthening South-South cooperation. 52. While noting that there has been an increased interest and willingness to strengthen South-South cooperation, the Ministers asserted that further efforts were needed to ensure that its goals were materialized. In this respect, the Ministers noted the importance of establishing national focal points to coordinate the activities of South-South cooperation at the national level. The Ministers reiterated their convictions that South-South cooperation should be promoted by sharing development experiences among developing countries. 53.  The Ministers recognized the importance of the great role and activities of the South Centre and reiterated their support for the Centre. In this regard, they welcomed the entry into force of the Agreement to Establish the Center and invited all members of the Group who had not done so to consider acceding this Agreement. They encouraged likewise the South Centre to strengthen further its working relationship, collaboration and its presence at the United Nations with a view to supporting the Group of 77. The Ministers also invited all Members of the Group of 77 and China to support financially the Centre with the goal of reaching the target for the capital fund entirely with the contributions from the South in order to enable the Centre to fulfill efficiently its mandate. 54.  The Ministers welcomed the implementation of the decision by the Non-Aligned Summit in Cartagena on 18–20 October 1995 to establish a Non-Aligned Movement Centre for South-South Technical Cooperation in Indonesia. 55.  The Ministers underlined the vital role of energy and energy efficiency, particularly for sustained economic growth and development of developing countries and, encouraged the members of the Group to enhance their cooperation in this field through, inter alia, joint investments and projects, in all sources of energy including in the area of conventional, non-conventional and renewable energy, in the context of South-South cooperation. In this connection, they called upon the developed countries and the Multilateral Financial Institutions to support such activities by the provision of financial, technical and technological resources.

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56.  The Ministers reaffirmed that the General System of Trade Preferences (GSTP) constitutes an important element to further expand trade liberalization and inter-regional cooperation among developing countries. In this regard, the Ministers expressed their hope that the Second Negotiations on the GSTP could be concluded this year. The Ministers stressed the importance for negotiations in the GSTP to aim at widening its scope as envisaged in the agreement. 57.  The Ministers stressed that ECDC/TCDC has matured into an integral aspect of the historical process of international cooperation for development. They reiterated that ECDC provides a natural bridge for the effective participation of the developing countries in the global economy. They underlined the importance of implementing a more strategic focus for TCDC and for selecting priority issues as stipulated in the New Directions for TCDC, adopted by General Assembly resolution 50/199, as a means for harnessing the significant capacities that exist in the developing world. In this regard, there is a need to effect a closer operational integration between TCDC and ECDC. They therefore underlined the importance for the harmonization of the Action Programme on Economic Cooperation (APEC) and the Caracas Programme of Action (CPA). The Ministers appreciated the support provided by UNDP/the Special Unit for TCDC to the Office of the Chairman of the Group of 77 in New York and encouraged UNDP/and its Special Unit for TCDC to continue and expand this cooperation with the Group of 77 for the benefit of all developing countries. 58.  The Ministers approved the report of the 11th Committee of Experts of the Perez-Guerrero Trust Fund (PGTF) presented in accordance with the guidelines for the utilization of PGTF, and approved its recommendations. They expressed satisfaction with the results achieved by PGTF and agreed to explore ways and means to expand its resources. 59.  The Ministers congratulated the Third World Network (TWN), the second recipient of the G-77/UNDP award on ECDC/TCDC, for its contribution to the advancement of South-South Cooperation and its valuable support to the Group of 77 at various United Nations Centres. 60.  The Ministers also welcomed the outcome of the Round Table held in New York on 25th September 1996 and called on the Chairman to undertake specific measures to strengthen the institutional effectiveness of the Group of 77 and China and report to the 21st Ministerial Meeting on this matter, including proposals on the recommendations made by the Round Table. 61.  The Ministers commended the Chairmen of the Group of 77 and China and the Non-Aligned Movement on their coordination and cooperation through the Joint Coordinating Committee of the Group of 77 and China and the Non-Aligned Movement (JCC), on the various fields of activities. 62.  The Ministers expressed their concern at the stalled peace process in the Middle East and urgently called for international support to reactivate and complete the peace process from the point it was stopped at, emphasizing the necessity to respect all agreements, guarantees and commitments reached during previous stage of the peace talks. They also reaffirmed their support to the Palestinian people in their efforts to achieve their inalienable rights, including their right to establish an independent state on their national soil, including Jerusalem. They reaffirmed further the permanent responsibility of the United Nations in dealing with the question of Palestine. At the same time, the Ministers reaffirmed their support for the peace process initiated at the Peace Conference on the Middle East held in Madrid which aimed at achieving a comprehensive, just and lasting peace in the region on the basis of Security Council resolutions 242 (1967), 338 (1973), and 425 (1978) and the principle of land for peace. In this context, the Ministers called on Israel to comply with all United Nations resolutions to put an end to its occupation of all Palestinian and other Arab territories including the Syrian Golan and South Lebanon. They reemphasized the need for international assistance to support Palestinian development efforts in the economic and social fields in their pursuit of sustainable development, and called on the international donor community to deliver the financial assistance pledged to the Palestinian Authority.

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63.  The Ministers called on the international community to provide special economic assistance in support of consolidation of the peace process and economic recovery of Angola and other developing countries that are facing similar problems, taking into account the provisions of General Assembly resolution 48/182. 64.  The Ministers recognized that although natural disasters are universal, the occurrence of these phenomena in developing countries often caused dramatic devastation in terms of human lives, property and infrastructure and that some of these phenomena are likely to be exacerbated by climate change, to the further detriment of the vulnerable developing countries. They stressed the need for concrete measures to reduce the vulnerability of these societies to natural disasters, and urged the international community to give adequate support, both financially and technically, to the efforts of the developing countries in terms of enhancing national capacities to cope with these natural phenomena. In this regard, they reaffirmed their support to the International Decade for Natural Disaster Reduction as a distinct framework for action which facilitates, among others, the effective integration of disaster reduction into sustainable development planning. 65.  The Ministers noted with interest the ongoing process of ratification of the Convention to Combat Desertification in those countries experiencing serious drought and/or desertification, and expressed the hope that the Convention will enter into force before the end of 1996. In this respect, they expressed their deep concern regarding the status of the negotiations on the mandate, role and functions of the Global Mechanism, which shall mobilize and channel the resources to the affected developing countries. The Ministers urged the International Community, particularly the developed countries, to give their financial and technical support to the implementation of the Convention showing their firm political will and commitment in establishing sustainable human resources development schemes in those areas that, because of land degradation processes, are stricken today by absolute poverty and famine, and those areas vulnerable to drought and/or desertification where, if no urgent measures are taken today, will very soon enlarge the domains of poverty, famine, social and environmental degradation. The Ministers welcomed also the offer made by the Government of Italy and the FAO to host the First Session of the Conference of the Parties in Rome in 1997. 66.  The Ministers noted the status of deliberations and negotiations in the various ad hoc working groups of the General Assembly dealing with the reform and the revitalization of the United Nations during the Fiftieth Session of the Assembly and expressed their resolve to exert every effort to bring the intergovernmental deliberations and negotiations to an expeditious and successful conclusion. 67.  The Ministers welcomed the offer made by the Government of Costa Rica to host, in January 1997, a South-South Conference on Finance, Trade and Investment, with the primary focus on identifying innovative strategies for accelerating the pace of economic and financial cooperation among developing countries. In this context, the San Jose Conference will accelerate the implementation of the Caracas Programme of Action keeping in mind the new realities of the developing world. They also expressed the hope that this conference will draw up a new concrete plan of action that would enable developing countries governments, the private sector, the business community, and other civil society organizations involved in promoting South-South cooperation to respond effectively to the challenges and opportunities which are presented by globalization and economic liberalization. 68. The Ministers looked forward to the South-South Conference on Finance, Trade and Investment in San Jose, Costa Rica as a welcome and timely opportunity to further solidify the views and positions of the Group of 77 and China on outstanding issues before the General Assembly as well as other relevant multilateral fora.

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69.  The Ministers pledged to continue working together in a more cohesive and harmonious manner with a view to enhancing coordination and interaction of the Chapters of the Group of 77 and China in all relevant multilateral fora. They are committed to harmonize their efforts, to bring greater coherence and further consolidate their unity towards a better interaction among developing countries. In this spirit, they resolved to continue their concerted effort to help bring about a more equitable, prosperous and secure world in which all nations, large and small, weak and powerful, share in the blessings of peace, development and cooperation.

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21.  Twenty-first Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 26 September 1997 a.  Ministerial Declaration 1.  The Twenty-first Annual Meeting of the Ministers for Foreign Affairs of the Group of 77 was held in New York on 26 September 1997. 2.  The Ministers addressed issues of interests to the Group of 77 covering areas such as global, economic situation, development and international economic cooperation, international trade, external debt of developing countries, financing for development, follow-up of United Nations major conferences and summits, industrialization, environment and development, critical economic situation in Africa, critical situation in the Middle East, reform of the United Nations, the United Nations financial situation and South-South cooperation.

Global Economic Situation 3.  The Ministers, while welcoming the continued growth of global economy, noted some of the problem factors, in particular that: the world economy has not generated adequate employment and alleviation of poverty in the developing countries; the gap between the rich and the poor is growing among and within countries; volatile short term capital flows and rapid and sudden withdrawal of portfolio investments may create structural problems for the development of developing countries. 4.  The Ministers noted that increased global competition does not automatically bring about faster growth and development nor does growth automatically reduce inequality. The liberalization of an economy in itself is not sufficient assurance that growth and development will follow. This depends on implementation of an enabling international environment, which can promote growth with equity. 5.  The Ministers noted that evidence is mounting that slow growth and rising inequalities are becoming a more permanent feature of the world economy. In future trade negotiations, it is essential to restore balance and to accelerate the liberalization of trade sectors of interests to developing countries.

Development and International Economic Cooperation 6.  In reviewing developments in the world economic scene, the Ministers recognized the importance, inter alia, for world economic growth and expansion of trade. In this regard they noted the economic progress made by a number of members of the Group and the increased importance of the Group in world economic affairs. They also recognized that developing countries, as a whole, are still confronted with many shared and common problems and challenges flowing from the deepening interaction among nations and accelerated globalization and liberalization of the world economy. In this context, they expressed concern on the increased vulnerability of developing countries to unfavorable external economic environment and that many members of the Group continue to face severe difficulties and experience sluggish or even negative economic growth. They stressed the urgency and importance of heightened international support for the developing countries, particularly the African, and the least developed countries, in order to broaden their opportunities for sustained economic growth and development. 7.  The Ministers stressed that the processes of globalization and liberalization bring challenges and opportunities which affect virtually all countries, but in unequal ways. Liberalization has

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occurred in an uneven manner with obvious discrimination against areas in which the developing countries can achieve comparative advantage. Perceptions of an unfair multilateral trading system creates the threat of a potential backlash against globalization in developing countries. This could reverse beneficial reform and provoke a roll back of the achievements of economic integration. Such an uneven trend requires renewed partnership and the fulfillment of international cooperation commitments in order for developing countries to effectively benefit from these processes. This process must be managed on the basis of principles of non-discrimination and avoidance of measures that lead to unfair competition, as well as the recognition to the need for safeguard and preferential treatment of developing countries. In the context of liberalization, developed countries should lead in the liberalization of all factors of production particularly labour. 8.  The Ministers were deeply concerned about the recent fluctuations in the currencies of some members of the Group caused by, inter-alia well-coordinated speculative activities to destabilize currencies for self-serving purposes and the negative impact of these fluctuations on their economic stability, growth, trade and development process. They are convinced that strengthened regional and multilateral cooperation have a central role to play in preventing such negative impact on growth and development. 9.  The Ministers regretted that developed countries still lacked the political will to achieve effective and equitable solutions to the world economic growth. They also regretted the tendency on the part of a group of developed countries to take decisions of global concern outside the multilateral framework of the United Nations system that affect the world economy without giving full consideration to the interests of developing countries. 10.  The Ministers called for the full and effective participation of the developing countries in the process of decision-making, standard setting and in the resolution of world economic problems through strengthening multilateralism aimed at promoting equitable growth in the world economy. They emphasized that the increasing globalization and liberalization of the world economy required an equitable and effective mechanism of multilateral macroeconomic policy coordination which should allow for greater participation of developing countries and take into account their needs and concerns. They underscored the urgent need for the United Nations to play a more active role and to exert policy leadership on development issues and international development cooperation. 11.  The Ministers called upon the developed countries to desist from taking any measures aimed at introducing new conditionalities in international economic cooperation, in particular those relating to trade and the environment, labour standards, official development assistance (ODA) and technology transfer, and restrictions on market access for the commodities, manufactures and services of developing countries, particularly in the light of dwindling resources for development cooperation. 12.  The Ministers expressed the urgent need for certain developed countries to immediately eliminate laws and regulations with adverse extra-territorial impacts and other forms of coercive economic measures including unilateral sanctions against developing countries. They emphasized that such action not only undermine the principles enshrined in the Charter of the United Nations and international law, inter alia, sovereign equality of States, non-intervention and non-interference in their internal affairs, but also severely menace the freedom of trade and investment, which are also spelled out in many international legal instruments, including the principles establishing the World Trade Organization. 13.  The Ministers also expressed their grave concern over the impact of sanctions on civilian population and development capacity in targeted countries and therefore urged the international community to establish sanctions only in strict conformity with the Charter of the United Nations

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with clear objectives, clear time frame, provision for regular review, precise conditions for their lifting and never to use them as a form of punishment or otherwise exact retribution. 14.  The Ministers welcomed the conclusion and adoption of the Agenda for Development, which provides a comprehensive and fundamental framework on principles, objectives, policy actions and institutional arrangements on international cooperation for development in the medium and long-term. They underscored the imperative of political commitment to effectively implement and operationalize this Agenda. 15.  The Ministers stressed the importance of the ‘Renewal of a dialogue on strengthening international economic cooperation for development through partnership,’ which could serve as an essential mechanism to discuss emerging and urgent issues relevant to the strengthening of global partnership for development to further strengthen the efforts of the international community in implementing the agreed commitments and outcomes of the major United Nations resolutions. 16.  The Ministers recognized that the Least Developed Countries (LDCs) are the weakest partners in the international community with the most formidable development problems. In a world economy, which is increasingly being shaped by the processes of globalization and liberalization, the LDCs are marginalized from the mainstream of the world economy. The Ministers expressed their deep concern at the sluggish growth of the LDCs’ economies. The LDCs have not been able to attract any significant amount of foreign investment, their debt burden has increased while external assistance has diminished. While supply-side constraints are an important impediment to development in the LDCs, the poor economic performance of these countries is also attributed to external factors such as a dwindling flow of ODA, depressed commodity prices and the debt crisis. It was also recognized that in order to benefit from and sustain the wide range of structural and economic reforms being undertaken by them as well as for laying down of infrastructure, an increased flow of external resources was required. The Ministers, thus, called upon all major donors to reverse the downward trend of assistance to LDCs and fulfil the agreed target of ODA as soon as possible. The Ministers further called upon the international community to implement fully the Programme of Action for the LDC’s for 1990’s in order to accelerate growth and development process in those countries. They also stressed the importance of initiating preparations for the Third UN Conference on LDCs, proposed to be held in 2000, which would offer a scope to comprehensively deal with the overall development problems of the LDCs. 17.  The Ministers called on the international community to give special attention and support to the special development problems and needs of the Land-locked developing countries, particularly through technical cooperation and financial assistance by developed countries, and multilateral financial institutions to enable these countries to effectively participate in a rapidly globalizing world economy and international trade. They also noted that transit developing countries faced serious economic problems and that their efforts at developing a viable transit infrastructure also needed support from the international community. In this context, the Ministers welcomed the outcome of the third meeting of governmental experts from land-locked and transit developing countries and representatives of donor community. 18.  The Ministers recognized the Barbados Programme of Action as a comprehensive tool for the international community to address serious problems faced by the Small Island Development States (SIDS) in achieving sustainable development. They expressed concern that there has not been commensurate support by the international community to implement this Programme of Action. In noting the importance to the SIDS of the full and comprehensive review of the Barbados Programme of Action scheduled to be held in 1999, the Ministers welcomed the decision of the Nineteenth Special Session of the General Assembly to hold a two-day special session immediately preceding the fifty-fourth session for an in-depth assessment and appraisal of the implementation of the Programme of Action. The Ministers renewed their call for continued

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support and strengthening of efforts at the international level to assist SIDS in the implementation and follow-up of the Barbados Programme of Action. 19.  The Ministers are convinced that women’s empowerment and their full participation on the basis of equality in all spheres of society, including participation in the decision-making process and access to power, are fundamental for the achievement of equality, development and peace. 20.  The Ministers accorded high priority, in accordance with national plans, to the implementation and follow-up of the Beijing Declaration and the Platform for Action adopted by the Fourth World Conference on Women. They stressed that the Platform for Action is the most practical means for the achievement of the Nairobi Forward-Looking Strategies to advance the goals of equality development and peace for all women worldwide. The Ministers also took note of the efforts by the United Nations System to follow-up the outcome of the Beijing Conference and welcomed the initiatives of mainstreaming a gender perspective into all policies and programmes. They expressed their commitment to intensify the ongoing efforts addressing the various critical areas of concern and called upon the international community to continue supporting the developing countries, particularly the Least Developed Countries in their efforts to implement the Platform for Action. 21.  The Ministers emphasized that sub-regional and regional cooperation is an important means of expanding trade and investment opportunities as well as the transfer of technology. The United Nations regional commissions should enhance regional cooperation between their member states in economic, social and related activities and strengthen the relationships in these areas both among themselves and with other countries of the world. They resolved to work for the strengthening of the regional commissions, which they recognized as valuable development oriented focal points of the United Nations system at the regional level. They stressed the need for a strong commitment by the international community to support regional economic cooperation within the framework of an open, equitable, non-discriminatory and rule-based multilateral trading system. In this regard, the Ministers noted that the regional commissions provide a valuable forum and mechanism to promote and strengthen regional cooperation. 22.  The Ministers warmly welcomed the decision of the Government of the United Kingdom to rejoin UNESCO and urged other member States to take the necessary steps to achieve the universality of the organization. The Ministers are convinced that providing lifelong education for all, assisting in the advancement, transfer and sharing of knowledge, ensuring the free flow of information and the development of communication capacities, and promoting cultural development as well as preserving the cultural heritage of humankind, which are within the mandate of UNESCO, are necessary components of development. 23.  The Ministers stressed the fact that Eradication of Poverty based on sustained economic growth, social development, environmental protection and social justice requires the equal involvement of both women and men as agents and beneficiaries of people-centered sustainable development. In this context, the Ministers reaffirmed that the goal of eradicating poverty in the world is an ethical, social, political and economic imperative, which can only be achieved through a multidimensional and integrated approach. 24.  The Ministers underscored the fact that provision of education, health services, water, particularly safe drinking water, sanitation and adequate shelter posed major constraints to economic and social development in developing countries. They called upon the international community to support national initiatives of these countries in addressing those constraints with special attention to the needs and rights of women and children and disadvantaged groups and persons. 25.  The Ministers reaffirmed that the holding of a Special Session of the General Assembly in 1998 devoted to the strengthening of International Cooperation against the illicit production,

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sale, demand, trafficking and distribution of narcotic drugs and psycho-tropic substances and related activities will make a significant contribution to the effectiveness of the United Nations and Member States in the fight against this global problem.

International Trade 26.  The Ministers stressed the critical need for an equitable, secure, non-discriminatory and predictable multilateral trading system, which should enhance trade and development possibilities of developing countries and facilitate an increased share of these countries in international trade. To this end, they urged developed countries to avoid all forms of protectionist tendencies and implement international trade liberalization measures as a necessary step towards the establishment of a just and equitable multilateral trading system. The Ministers stressed that the trade policy reforms being undertaken by developing countries would be frustrated unless the developed countries took positive structural adjustment measures providing larger export possibilities to developing countries. In this context, the Ministers underscored the need for supporting the developing countries in the process of implementation of various agreements relating to trade and development. 27. The Ministers urged that commitments undertaken in respect of trade liberalization by developed countries in areas of export interest to developing countries such as textiles and agriculture, be implemented so as to genuinely enhance their market access. They expressed concern at the high incidence and resort by developed countries to antidumping and countervailing duty measures to unfairly target developing country exports and the use of technical barriers, environmental and social concerns for protectionist purposes. The Ministers urged that both in respect of traditional areas of trade as well as new areas being covered by WTO, the special needs interest and circumstances of developing countries be integrated. 28. The Ministers recognizing the role of the United Nations Conference on Trade and Development (UNCTAD) as the principal forum of United Nations General Assembly for the integrated treatment of development and related issues in the areas of trade, finance, technology, investment and sustainable development, were convinced that the Tenth Session of the United Nations Conference on Trade and Development (UNCTAD-X), to be held in Bangkok, Thailand, in the year 2000 would provide a good opportunity to advance global partnership for economic cooperation for the next millennium. The Ministers attach great importance to UNCTAD’s role in supporting developing countries in the context of the ongoing and future trade and development negotiations. They further reiterated their strong commitment to strengthen and support UNCTAD so that it will fully carry out its trade and development mandate. 29.  The Ministers emphasized the importance of ensuring the universality of the World Trade Organization (WTO) and, in this context called for expeditious accession without political impediment for applying developing countries that are not members of the World Trade Organization and also for ensuring transparency.

External Debt of Developing Countries 30.  The Ministers underscored that the debt burden had an adverse impact on the economies of the developing countries. They expressed deep concern that the development efforts of developing countries, in particular the provision for essential social and economic services, including housing, education and health, are severely hampered by the imperative need to set aside a substantial portion of national budgets for the servicing of external debt. This situation was further exacerbated by the negative effect of the structural adjustment process, flow of financial resources from developing to developed countries, unpredictability of the international financial system, and conditionalities by international financial institutions including denying some developing

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countries access to their resources on political grounds, decline in official development assistance, deteriorating terms of trade of developing countries and sharp falls in commodities prices as well as escalating protectionism in the developed countries. It was further noted that the various debt relief measures have not gone deep enough to alleviate substantially the burden of debt and debt servicing of developing countries. The Ministers, therefore, stressed the urgent need for effective, equitable, development oriented and durable solution to the external debt and debt servicing problems of developing countries. 31.  The Ministers stressed the need for a further enhancement of the Naples terms by the Paris Club, including debt cancellation. They also noted the need to take decisive steps aimed at substantially reducing bilateral official debts through their cancellation or writing off. They further stressed the urgency for a swift implementation of the Heavily Indebted Poor Countries (HIPC), debt initiative by the World Bank and the IMF, as well as the need to implement the Initiative’s eligibility criteria flexibly so as to ensure sufficient coverage of concerned countries. 32.  The Ministers underscored the importance of foreign direct investment (FDI) as an instrument for economic growth and development in developing countries. In this context, they recognized that many developing countries are undergoing extensive economic reforms to establish a positive investment climate. They stressed that as part of their effort to increase the flow of resources to developing countries, industrialized countries should provide greater incentives for foreign investment in developing countries. The Ministers reiterated the Group’s position that FDI cannot replace ODA.

Financing for Development 33.  The Ministers stressed the need for strong commitment by the International community for mobilizing adequate resources for the effective contribution to accelerate sustained economic growth in the developing countries. The Ministers expressed deep concern for the evident lack of political will by the developed countries and in this regard they urged for a re-commitment by these countries on the financing of development process in developing countries. 34.  The Ministers reiterated the urgent need for a substantial increase of official development assistance (ODA) in view of the declining levels of such assistance in recent years. In this regard, they strongly urged compliance with internationally agreed targets of ODA and commitments for new and additional resources. In particular they urged the developed countries to provide 0.7 per cent of their GNP to developing countries by the year 2000 and commitments reflected in Agenda 21 as well as 0.15 per cent for the least developed countries in accordance with the Paris Declaration and the programme of Action adopted in September 1990. 35.  The Ministers recalled the recent adoption by the General Assembly and the Economic and Social Council of the United Nations of several resolutions relating to the need to strengthen collaboration between the United Nations and the Bretton Woods Institutions in the achievement of the goals of development cooperation. 36.  In this context, the Ministers called for the convening an International Conference on financing of development with a broad agenda. They decided that the Group of 77 shall pursue this matter when the item comes up for consideration in the Second Committee of the General Assembly. The Group should act in close collaboration with the Group of 24 having in mind that, to assure its success, the international conference should be prepared as soon as possible.

Follow-up of United Nations Major Conferences and Summits 37.  The Ministers stressed the critical importance of effective follow-up to landmark United Nations conferences and summits held since 1990, namely the World Summit for Children, the Second United Nations Conference of the Least Developed Countries, the United Nations

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Conference on Environment and Development, the World Conference on Human Rights, the Global Conference on the Sustainable Development of Small Island Developing States, the World Conference on Natural Disaster Reduction, the International Conference on Population and Development, the World Summit for Social Development, the Fourth World Conference on Women, the United Nations Conference on Human Settlements, the World Food Summit and UNCTAD IX. The Commitments, recommendations and measures agreed to at those conferences must be implemented as soon as possible. In this regard, it is especially important to fully honour the commitments pertaining to the financing of actions envisaged in the conferences, as well as establishing effective institutional mechanisms for follow-up action. 38.  The Ministers called upon the developed countries to fulfil their commitments for the implementation and follow-up of decisions and recommendations set forth in the programmes of Action and relevant documents adopted at the major Untied Nations Conferences and Summits held in this decade. The Ministers also expressed grave concern at the fact that commitments made by the developed countries at the highest levels are not being honoured. The Ministers also cautioned against any approach, which seeks to implement selectively the outcomes of the Summits, thereby excluding the international community’s obligations in areas such as providing greater markets access, easing the debt burden, and promoting financial flows and technology transfers.

Industrialization 39.  The Ministers reaffirmed the continued urgency to promote industrialization as a dynamic instrument for the rapid economic and social development of developing countries, contributing to the eradication of poverty and the creation of productive employment. Recognizing that the efforts of the developing countries in implementing their policies and strategies of industrialization could not succeed without an favorable international environment, the Ministers called for enhanced international cooperation to enhance technology transfer, market access, financial flows and capacity building in support of the developing countries in their process of industrialization. 40. The Ministers underscored the role of the United Nations Industrial Development Organization (UNIDO) as an independent specialized agency with a central coordinating role within the United Nations system in the field of industrial development and reiterated their strong commitment to strengthen and support UNIDO in exercising fully its development mandate. They noted with satisfaction the completion of the reform process undertaken successfully by UNIDO which aimed at enhancing its effectiveness as a global forum for supporting and promoting industrial development and a provider of specialized technical cooperation services. The Ministers warmly welcomed the decision of the Government of the United Kingdom to remain in UNIDO and urge other member States to take the necessary steps to ensure the universality of the Organization.

Environment and Development 41.  The Ministers noted the outcome of the Nineteenth Special Session for Overall Review and Appraisal of the Implementation of Agenda 21 (UNGASS). The Ministers further noted with deep concern that the outcome of UNGASS had shown that there has been little progress in achieving the Earth Summit’s goals, primarily due to a failure by the developed countries to fulfil their obligations in regard to provision of new and additional financial resources and the transfer of technology. They expressed deep concern that the overall trends with respect to sustainable development are worse today than they were in 1992, and the developing countries are most vulnerable to environmental degradation and various disasters, which come with it. The Ministers

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emphasized that the efforts by the developing countries towards achieving sustainable development objectives, can only be effective with simultaneous efforts towards accelerating sustained economic growth and development of developing countries through, inter-alia, the creation of an enabling external economic environment conducive to the development process in particular in the fields of finance, technology transfer, debt and trade. 42. The Ministers reiterated the urgency to accelerate the comprehensive implementation of Agenda 21. In this regard, they stressed that such implementation should not contradict the right of the developing countries to benefit fully from the utilization of their resources, which are vital for sustained economic growth and development. The Ministers called on the developed countries to fulfill all their commitments contained in Agenda 21, which require them to halt their own destructive impacts on the global environment while assisting the developing countries in combating such threat. 43.  The Ministers stressed that insufficient financing is the key obstacle to the promotion of greater effectiveness of developing countries’ efforts in the protection of the environment. They reemphasised the importance of international cooperation to provide the developing countries with new and additional financial resources without imposing any forms of conditionalities. In this regard, they reiterated the need for political will on the part of developed countries for the effective implementation of their commitments embodied in Agenda 21 in the area of financial resources. In this connection, they pointed out that the existing Global Environment Facility (GEF) resources are far from being adequate. They therefore stressed that GEF resources should be increased and that there should be more flexibility in the disbursement of its resources in order to enable more countries to benefit from it. 44.  The Ministers stressed that the development and transfer of environmentally sound technologies are essential components of a successful strategy for sustainable development. Therefore, it is important to emphasize that effective modalities be agreed upon for the creation, development, favourable access to and transfer of environmentally sound technologies to developing countries on favourable terms, including concessional, preferential and grant terms. This arrangement should include the establishment in developing countries of international, regional and subregional technology centres, and the dissemination of information on existing environmentally sound technologies. 45.  The Ministers welcomed the convening of the First Conference of the Parties to the United Nations Convention to Combat Desertification in those countries experiencing serious drought and/or desertification, particularly in Africa. Furthermore, the Ministers welcomed the impressive 108 ratifications so far, and urged other countries, which have not yet ratified the Convention to do so as soon as possible. They also stressed that all environmental conventions including the Convention to Combat Desertification should enjoy equal treatment. In this context, they emphasized that the establishment of an independent financial mechanism, which benefit from its own resources is imperative for the implementation of the First Conference of the Parties to the Convention to Combat Desertification. 46.  The Ministers expressed concern over the weakening of the United Nations Environment Programme (UNEP). They reaffirmed their commitment to strengthen UNEP as the leading global environmental organization and urged developed countries to support UNEP with adequate and predictable financial resources. The Ministers expressed their resolve not to countenance any measure that would weaken UNEP in any form.

Critical Economic Situation in Africa 47.  The Ministers reiterated their profound concern at the persistent critical economic situation in Africa. They were convinced that, if not reversed, current trends could considerably worsen

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the situation, thus endangering the economic and social conditions of African countries and hampering the prospects for their rehabilitation and development. They expressed their solidarity with the African countries and urged the international community, particularly the developed countries and the United Nations system, to adopt and implement concrete and effective measures to support the efforts of the African countries in the process of economic reforms and development. 48.  The Ministers noted with deep concern the critical conditions in the external debt of African countries and the heavy and unbearable burden of debt-servicing that had led to the paradoxical situation where African countries found themselves net exporters of capital to the developed countries and international financial institutions. Furthermore, the Ministers noted that the deteriorating prices for primary commodities, insufficient foreign investment and declining flows of official development assistance to the region has adversely affected the ability of African countries to meet their development objectives as well as their other financial obligations. 49.  The Ministers urged the international community to reaffirm its commitment to resolving the severe problems facing the African continent. This should include a durable solution to Africa’s external debt problem, diversification of African economies, more access to trade and market opportunities, resource flows, and transfer of technology. The Ministers welcomed the Mid-Term Review of the United Nations New Agenda for Development of Africa in the l990s (UN-NADAF) at which Africa and the international community renewed their commitment to and adopted a set of recommendations on new measures aimed at giving further impetus to the implementation of the New Agenda in the spirit of partnership. The Ministers also welcomed the Secretary-General’s special initiative on Africa launched on March 1996 as one of the means of operationalizing the Mid-Term Review of the United Nations New Agenda for Development of Africa in the 1990s.

Critical Situation in the Middle East 50.  The Ministers expressed their concern over the deteriorating economic and social situation of the Palestinian people as a result of the continued illegal Israeli policies and action in the Occupied Palestinian Territory, including Jerusalem, particularly settlement activities, the closure of the Palestinian territory and the withholding of Palestinian revenues. In this context, the Ministers stressed the need to preserve the territorial integrity of all of the Occupied Palestinian Territory to guarantee the freedom of movement of persons and goods, and to respect the fundamental human rights of the whole population in the territory. The Ministers reemphasized the need for international assistance to support Palestinian development efforts in the economic and social fields in the pursuit of sustainable development, and called on the international donor community to deliver the financial assistance pledged to the Palestinian Authority. 51.  The Ministers expressed their concern at the stalled peace process in the Middle East and the persistence of the Israeli occupation of the Palestinian territory, including Jerusalem and other Arab territories, which gravely deteriorate the living conditions of the Arab population under occupation, as well as negatively affect the national efforts to achieve sustained economic growth and sustainable development in the region. In this context, the Ministers urgently called for the implementation of the agreements reached and for international support to reactivate and complete the peace process from the point it was stopped at, emphasizing the necessity to respect all agreements, guarantees and commitments reached during previous stage of the peace talks. They also reaffirmed their support to the Palestinian people in their efforts to achieve their inalienable rights, including the right to establish their own independent state on their national soil, including Jerusalem. They reaffirmed further the permanent responsibility of the United Nations in dealing with the Question of Palestine. At the same time, the Ministers reaffirmed their support for the Peace Process initiated at the Peace Conference on the Middle

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East, held in Madrid, which aimed at achieving comprehensive, just and lasting peace in the region, on the basis of Security Council resolutions 242 (1967), 338 (1973) and 425 (1978), and the principle of ‘Land for Peace’. The Ministers, further, called on Israel to comply with all United Nations resolutions to put an end to its occupation of all Palestinian territory, including Jerusalem and other Arab territories including the Syrian Golan and South Lebanon.

Reform of the United Nations 52.  The Ministers reiterated the importance of the United Nations as the central forum for dialogue and negotiations on issues relating to international cooperation for development and called upon all States to respect the principles and purposes as embodied in the Charter of the United Nations. They also called for a stronger United Nations system to handle the complex and interrelated problems facing the world economy, in due coordination with the multilateral financial institutions. They expressed deep concern at the financial crisis of the United Nations, which has placed in jeopardy the ability of the Organization to fully implement its mandated programmes and which undermines the very essence of multilateralism. 53.  The Ministers expressed a high political importance to the strengthening of the role of the United Nations in promoting international cooperation for economic and social development. The Ministers strongly believed that the United Nations should be allowed to develop its full potential in the field of international economic cooperation. To that end, the realization of the right to development should be given utmost priority by the United Nations. 54.  The Ministers observed that the reform of the United Nations is an ongoing process. Proposals for reforms have been considered in the context of the Open-Ended High Level Working Group on the Strengthening of the United Nations system, resolution 50/227 and the Secretary-General’s reform proposals. In this regard, the Ministers welcomed the efforts of the Secretary-General in the ongoing process of the reform and took note of his report entitled ‘Renewing the United Nations’ A Programme for Reform,” presented on 16 July 1997. The Ministers stated that the Group of 77 will study this report and take a position in due course. 55.  The Ministers strongly endorsed the statement of principles on UN reforms adopted by the 22nd Meeting of the Chairmen/Coordinators of the Chapters of the Group of 77 held in Geneva from 7 to 9 July 1997. In this context the Ministers reaffirmed these principles as follows: (i)  The reform process must strengthen the UN’s ability to fulfil its role and functions in the development field, with the General Assembly providing the leadership to ensure the fulfillment of the social and economic goals enunciated in the United Nations Charter; (ii)  The reform process should be carried out with the primary objective of strengthening the capacity of the Organization to address development issues and to respond effectively to the development needs of developing countries. It should not be motivated by the aim of downsizing the United Nations and achieve savings; (iii)  The developmental tasks of the United Nations are of fundamental importance and may not be treated as secondary to its peacekeeping, human rights and humanitarian functions. Managerial measures to reduce overlap of functions, eliminate redundancies and minimize fragmentation are exceedingly important, but must be subservient to the larger goals of the reform process; (iv)  The United Nations must carry out its mandated, comprehensive role in the economic and social areas. This includes policy analysis, consensus building, policy formulation and coordination, and delivery of technical assistance to developing countries; (v)  The United Nations General Assembly’s role in the area of macro-economic policy formulation and coordination has to be strengthened and the core economic issues must be restored to the top of the United Nations’ agenda;

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(vi)  The United Nations, by virtue of its universal membership, is the most credible organization for performing developmental tasks. Assumption of some of these tasks, especially economic policy formulation and coordination, by limited groups outside the UN system is not the best way of ensuring equitable economic growth and development. Equally, the tendency to have these functions performed by organizations within the UN system with ‘weighted’ means of decision-making, on the misleading grounds of ‘comparative advantage’, is neither sustainable nor beneficial in the long run; (vii)  All reform proposals must aim at giving greater effect to the principles of transparency, pluralism, and democracy, which are the unique strengths of the United Nations. This means ensuring the availability of multiple perspectives/analyses on critical socio-economic issues and the strengthening of democratic decision-making processes; (viii)  The functioning of organizations within the United Nations system which do not fully observe democratic norms should be comprehensively reviewed. The decision-making process of the Bretton Woods Institutions should be reformed to allow for greater democracy, universality and transparency; (ix)  The reform of the Secretariat should be undertaken in accordance with the relevant United Nations resolutions. These resolutions stress that restructuring of the Secretariat should proceed with the objective of enhancing the effective implementation of the objectives of the Charter; emphasize the prerogative of the General Assembly in the creation, transfer and abolition of posts; assert the principle of equitable geographical representation in the staffing of the Secretariat; and preclude the monopoly on senior posts of any States or group of States; (x)  A primary pre-requisite for enhancing United Nations effectiveness is to have stable, predictable and adequate financing for the United Nations. Member States must fulfil their legal obligations to pay their contributions promptly, in full and without conditions, in accordance with Article 17 of the Charter, and take concrete actions to clear their arrears within a reasonable and defined time frame and without any conditionalities.

The United Nations Financial Situation 56.  The Ministers expressed their deep concern over the chronic difficult financial situation of the United Nations due to the failure of Member States, in particular some major contributors to comply with their financial obligations in full, on time and without conditions. Its magnitude is unprecedented and have virtually left the Organization teetering on the brink of insolvency and therefore represents the most acute threat to multilateral cooperation for development, it has also resulted in the delay of the reimbursement of the troop contributing countries, particularly those of the developing countries. 57.  The Ministers reaffirmed the legal obligation of Member States to bear the expense of the Organization in accordance with the Charter of the United Nations and the requirements to pay their assessed contributions in full and on time and without conditions. While recognizing the need to extend sympathetic understanding to those that are temporarily unable to meet their financial obligations as a consequence of genuine economic difficulties, in all other cases, the Ministers urged members of the United Nations, in particular some major contributors, to exert every effort to pay all their dues unconditionally, in full and on time. 58.  The Ministers reaffirmed that the principle of the ‘capacity to pay’ is fundamental in the assessment of the Member States contributions to the United Nations. The Ministers further stressed that the developing countries should not be assessed a rate higher than the capacity to pay as a result of any adjustments in the scale. The Ministers noted that the current floor assessment has resulted in a serious departure from the principle of the capacity to pay for a large number of small member States from developing countries.

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59.  The Ministers also reaffirmed that the principle contained in the special scale of assessments established in resolutions 1874 (S-IV) of 27 June 1963 and 3101 (XXVIII) of 11 December 1973 for the apportionment of the costs of peacekeeping operations must be adopted on a permanent basis. In this regard, they stressed that the scale for the financing of these operations must clearly reflect the special responsibilities of the permanent members of the Security Council and economic situation faced by other countries or groups of countries, particularly developing countries. In this context, the Ministers further stressed that the establishment of a ceiling and a floor for the Permanent Members of the Security Council is totally unacceptable. 60.  The Ministers reiterated their concern at the continuing financial cutbacks to an already severely limited programme budget of the United Nations which has continued to threaten the very functioning of the United Nations and would adversely affect the Organization’s capability to implement fully the programmes and activities which Member States have entrusted to it, particularly in the field of international and regional cooperation for development. In this regard, the Ministers stressed the need for the reform process of the United Nations, to strengthen, rather than weaken the implementation of all approved programmes and activities and related secretariat support structures.

South-South Cooperation 61.  The Ministers reaffirmed their commitment to Economic and Technical Cooperation among Developing Countries (ECDC/TCDC) and reiterated their conviction that it constitutes an integral and essential part of the efforts of the developing countries to promote economic growth, technological capacities and accelerated development. They also reiterated their conviction that South-South cooperation not only is a means of taking advantage of existing and potential complementarities in the economies of developing countries, but can also contribute to restructuring international economic relations and to strengthening the world economy. 62.  The Ministers furthermore noted with satisfaction that in the past few years there has been a robust resurgence of interests, willingness and determination among developing countries in South-South cooperation. The new expectations, in turn, have sparked a strong movement to introduce into the South-South cooperation process strategic and innovative approaches and modalities in keeping with changing global circumstances so that South-South cooperation becomes more dynamic and realistic. In this regard, the Ministers supported the Asian-Africa cooperation framework as a mechanism to strengthen South-South Cooperation and particularly welcomed the outcome of the Asia-Africa Forum II held in Bangkok 11–13 June 1997. They also reiterated their conviction that as a means of enhancing their negotiating power vis-à-vis the developed countries, South-South cooperation was essential to reduce the vulnerability of the developing countries to the effects of adverse international economic environment. 63.  The Ministers recognized the increased relevance and importance of South-South cooperation in the current international economic climate. They therefore reiterated their support for South-South cooperation both as a strategy in support of the development efforts of the developing countries and as a means of ensuring their equitable participation in the emerging global economic order. They also endorsed the measures identified by the Meeting of Chairmen/ Coordinators of the G-77 Chapters held in Geneva in July 1997 aimed at strengthening South-South cooperation as a strategic element in the overall economic development strategy of the Group. 64.  The Ministers endorsed the decisions of the tenth session of the High-level Committee on Technical Cooperation among Developing Countries, held in New  York from 5–9 May 1997, which called upon the international community to provide the necessary, adequate financial and technical support to enable the developing countries to implement the recommendations

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contained in the report on New Directions Strategy for TCDC which emphasized the need to focus on high priority issues such as trade and investment, production and employment, poverty eradication, environment and macroeconomic management that are likely to have a major impact on the developing countries. In this regard, they urged the UN system to address effectively and operationalize the implementation of recommendations contained in the New Directions Strategy as well as to expand the utilization of TCDC modality in the operational activities for development of the United Nations system. 65.  The Ministers emphasized the increasing importance and complementarity of economic and technical cooperation among developing countries as a means of supporting the development efforts of these countries and ensuring their effective participation in the emerging global economic order that is increasingly shaped by the forces of globalization and economic liberalization. They urged the United Nations system to foster closer linkages on policy and operational aspects between TCDC and ECDC. In this regard, they welcomed the adoption of New Directions by the High-level Committee on the Review of TCDC and urged the Administrator of the United Nations Development Programme (UNDP) to continue to preserve the separate identity of the Special Unit for Technical Cooperation among Developing Countries and to increase its resources to enable the Unit to carry out its responsibilities and mandate. 66. The Ministers restated the request by the tenth High Level Committee of Technical Cooperation among Developing Countries that the Administrator of UNDP in consultations with the organizations and agencies of the United Nations system to submit the recommendations on the guidelines for the review of policies and procedures concerning TCDC to the Fifty-second session of the United Nations General Assembly. 67.  The Ministers appealed to the members to contribute generously to the ‘ECDC Account’ in order to facilitate the implementation of the Caracas Programme of Action. For those that have not contributed a special appeal was made to do so and to those who have already contributed an appeal was made to increase their contributions. 68.  The Ministers recognized the importance of the role and activities of the South Centre and reaffirmed their continued support to the Centre. In this regard, they welcomed the fact that 25 countries had acceded to the Agreement to Establish the Centre and invited all members of the Group who had not done so to consider ratifying the Agreement. They also welcomed the valuable contribution of the Centre to the work of the Group of 77 and called on developing countries to support financially the Centre. The Ministers also invited all Members of the Group of 77 to financially support the Centre with the goal of reaching the target for the capital fund entirely with the contributions from the South in order to enable the Centre to fulfill efficiently its mandate. 69.  The Ministers approved the report of the Twelfth Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund (PGTF) presented in accordance with the guidelines for the utilization of PGTF, and approved its recommendations. They expressed satisfaction with the results achieved by PGTF and agreed to explore ways and means to expand its resources. 70.  The Ministers strongly encouraged developing countries that are in a position to provide support, to contribute generously to organizations and funds which are involved in promoting SouthSouth cooperation, including the United Nations Trust Fund on South-South Cooperation, the Perez-Guerrero Trust Fund, and the Global System of Trade Preferences among Developing Countries (GSTP) including the South Centre. 71.  The Ministers welcomed the outcome of the South-South Conference on Trade, Investment and Finance held in San Jose, Costa Rica, from 13 to 15 January 1997 and emphasized the need to ensure an effective follow up of the San Jose Declaration and Plan of Action and other related sectoral meetings, as well as the importance of holding sectoral follow-up meetings as envisaged

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in the Caracas Programme of Action for Economic Cooperation among Developing Countries. They called on Member States to come forward to offer venues to these meetings as well as other meetings that might arise from the Intergovernmental Follow-up and Coordination Committee on ECDC (IFCC-X) and provide their full support for the implementation of the recommendations of these meetings. 72.  The Ministers expressed their full support for convening a South Summit at an appropriate date in the near future, as called for in the San Jose Declaration on South-South Cooperation. 73.  The Ministers expressed their full support of the view to enhancing coordination and interaction among the Chapters of the Group of 77 through consultations and exchanging of information among the various Chapters on a regular basis as identified in the final Communiqué adopted by the Meeting of Chairman/Coordinators of the Group of 77 Chapters held in Geneva in July this year.

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22.  Twenty-second Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 25 September 1998 a.  Ministerial Declaration 1.  The Twenty-second Annual Meeting of the Ministers for Foreign Affairs of the Group of 77 was held in New York on 25 September 1998. 2.  The Ministers welcomed the admission of Turkmenistan as a full member of the Group of 77. 3.  The Ministers addressed issues of interest to the Group of 77 covering areas such as global economic situation, globalization and liberalization, development and international economic cooperation, renewal of the dialogue, eradication of poverty, financing for development, official development assistance, external debt of developing countries, micro-credit, international trade, industrialization, reform of the United Nations, development account, environment and development, Habitat and UNEP, Follow-up to the United Nations major conferences and summits, United Nations operational activities for development, the least developed countries, the critical economic situation in Africa, the critical situation in the Middle East, the financial situation, administrative and budgetary issues of the United Nations and South-South Cooperation.

Global Economic Situation 4.  The Ministers noted that while the momentum of development of some economies in a number of regions is still being maintained, many countries have experienced significant slow-downs, while others have plunged into devastating economic crisis and deep recession with bleak prospects for the near future; this has resulted in an increase in the number of people living in poverty whilst the poorest and most vulnerable developing countries have plummeted into acute poverty and destitution putting intolerable pressures on their political and social fabric; at the same time, the gap between developed and developing countries continue to widen. The Ministers expressed their grave concern over the unfavourable international economic environment and stressed the urgency and importance of strengthening international economic cooperation and supporting the developing countries in order to achieve sustained economic growth and sustainable development.

Globalization and Liberalization 5.  The Ministers stressed that the process of globalization and liberalization brings risk, grave challenges and also opportunities, which affect virtually all countries but in unequal ways. The Ministers expressed their concern that the developing countries are still vulnerable to the external economic shocks in the process of globalization and are not sufficiently competitive to integrate their economies in the global economy. With their access to markets, financial resources and technology severely limited, their economic growth has been stifled. Moreover, in the process of international economic decision-making where they should be able to obtain redress for their deprivations, they are, however, increasingly marginalized. The Ministers recognized that in order to ensure that the process of globalization and liberalization serve their development needs, the developing countries have to gear themselves to take advantage of these opportunities and to define their strategies to counter the negative effect of globalization by formulating a workable and positive agenda with the view of ensuring that the process of globalization promotes equity and benefit for all. The Ministers noted the need for comprehensive action to mitigate the adverse impact of all aspects of globalization for developing countries.

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6.  The Ministers were deeply concerned that many developing countries in particular in Africa and the LDCs have continued to be marginalized from the process of globalization and are, therefore, unable to derive benefits from it, and they urged the international community to strengthen actions aimed at integrating the countries into the global economy. 7. The Ministers recognized the grave risks associated with globalization, which have been exemplified by the economic crisis and the financial turbulence that have afflicted many countries in different regions. The affected economies have been crippled by financial and economic shocks due to factors such as volatile short-term capital flows, irresponsible speculative trading in currencies and the movement of vast amounts of capital in and out of countries at a staggering speed. The Ministers noted that the crisis was spreading beyond a single region and there was a real danger that it could induce a global recession or even a depression. The Ministers further recognized that this crisis should serve as a warning to all countries and that, for most developing countries, the risks inherent to globalization are some time greater than its benefits. The lessons learned from the recent financial crisis should be carefully analyzed and utilized to enhance national, regional and international actions to prevent any future crisis. The Ministers therefore underlined the need to strengthen the international financial system and to undertake appropriate global measures to minimize the systemic risk attached to globalization particularly in the financial and capital market. 8.  The Ministers greatly appreciated the efforts undertaken by those countries affected by the crisis to mitigate its social impact particularly on the weak and most vulnerable sectors of society. They called on the international community to do its utmost to assist the efforts of developing countries in this regard.

Development and International Economic Cooperation 9.  The Ministers underscored the need to revive and promote a more meaningful North- South dialogue on economic cooperation and development. The two pillars of international cooperation—solidarity as defined by moral imperatives and shared experiences on one hand, and the utilitarian rationale of multilateralism on the other, have been steadily undermined as market forces has become the principal driving force and the unfair competition has become the hallmark of the evolving economic system. Attempts to revitalize debates over the past years have failed to either define a forward-looking agenda or to mobilize the political will of developed countries to honour their past as well as recent commitments. As a consequence, the current situation is characterized by the lack of recognition of the commonality in economic interests and the relegation of international cooperation, at the time when its relevance should be underscored. 10.  The Ministers called for the full and effective participation of the developing countries in the process of decision-making, standard setting and in the resolution of world economic problems through strengthening multilateralism aimed at promoting equitable growth in the world economy. They emphasized that the increasing globalization and liberalization of the world economy required an equitable and effective mechanism of multilateral macroeconomic policy coordination which should allow for greater participation of developing countries and take into account their needs and concerns. They underscored the urgent need for the United Nations to play a more active role in development issues and international cooperation for development. 11.  The Ministers expressed the urgent need for certain developed countries to immediately eliminate laws and regulations with adverse extra-territorial impacts and other forms of coercive economic measures including unilateral sanctions against developing countries. They emphasized that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, inter-alia sovereign equality of States, non-intervention and noninterference in their internal affairs, but also severely menace the freedom of trade and

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investment, which are also spelled out in many international legal instruments, including the principles establishing the World Trade Organization. 12.  The Ministers also expressed their grave concern over the impact of economic sanctions on civilian population and development capacity in targeted countries and therefore urged the international community to exhaust all peaceful methods before resorting to sanctions, which should only be considered as a last resort. If necessary these sanctions must be established only in strict conformity with the Charter of the United Nations with clear objectives, clear time frame, provision for regular review, precise conditions for their lifting and never be used as a form of punishment or otherwise exact retribution. 13.  The Ministers recalled paragraph 179 of the Final Document of the Twelfth Summit of the Non Aligned Movement in Durban, South Africa, in which a deep concern was expressed over the air attack against El-Shifa pharmaceutical factory in the Sudan on 20 August 1998. They recognized that such act could have negative impact on the economic and social development of the concerned country. 14.  The Ministers called on the international community to give special attention and support to the special development problems and needs of land-locked countries, particularly through technical cooperation and financial assistance by developed countries, and multilateral financial institutions to enable these countries to effectively participate in a rapidly globalizing world economy and international trade. They also stressed that transit developing countries face serious economic problems and that their efforts at developing, maintaining and improving viable transit infrastructures in order to promote trade and investment in their respective regions, also needed support from the international community. 15.  The Ministers expressed concern at the erosion of development cooperation and noted the need to reinvigorate it in order to address the new requirements of developing countries in the context of the new phenomenon of globalization and liberalization. In this regard, official concessional development assistance, special and differential treatment for developing countries and transfer of technology on concessional and preferential terms, remained valid and were crucial if developing countries were to succeed in eradicating poverty and accelerating economic growth in a sustainable manner, including progress in the social sectors and protection of the environment. In this context they noted the close linkage between the prosperity of developing and developed countries and the potential of developing countries as locomotives of growth. They urged developed countries to make the necessary investments for the realization of this potential. 16.  The Ministers reiterated their recognition of the role of the United Nations Conference on Trade and Development (UNCTAD) as the principle forum of the United Nations for the integrated treatment of development and related issues in areas of trade, finance, investment and sustainable development. They emphasized the importance of strengthening UNCTAD’s capacity in macro-economic analysis, consensus building, technical assistance and in supporting developing countries in their preparations for the ongoing and future trade-related negotiations. In this context, the Ministers recognized the importance of UNCTAD X, to be held in Thailand in the year 2000, as an opportunity to address development challenges and to respond effectively to the development needs and priorities of developing countries in ways that ensures growth with equity at the international level. They also reiterated the mandate of the International Trade Center (ITC) and stressed the essential restoration of its current budgetary and administrative arrangements and emphasized the role of UNCTAD in this regard.

Renewal of the Dialogue 17.  The Ministers noted with satisfaction the convening of the first High Level Dialogue on the theme of the social and economic impacts of globalization and interdependence and their policy

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implications on 17–18 September 1998. The Ministers agreed that the two day High-Level Dialogue contributed to increasing the awareness and understanding on the issues of globalization and expressed their hope that it would pave the way for further consideration of the issues with the purpose of evolving modalities for minimizing the negative impacts and maximizing the benefits of globalization for the developing countries, in particular the Least Developed Countries. They believed that the dialogue could serve as a useful forum to discuss the global emerging issues to strengthen international cooperation for development through genuine partnership. In this context, they recommended that the High-Level Dialogue be held once every two years with a theme to be decided through intergovernmental consultations a year prior to the dialogue.

Eradication of Poverty 18.  The Ministers recalled the proclamation by the United Nations General Assembly of the first United Nations Decade for the Eradication of Poverty (1997–2006) with the objective of eradicating absolute poverty and substantially reducing overall poverty through national action and international cooperation. They further endorsed the Assembly’s recognition that eradicating poverty is an ethical, social, political and economic imperative of humankind. The Ministers however expressed concern that two years into the Decade, the incidence of poverty was globally on the rise instead of falling and that gains made in poverty eradication had in some instances been reversed and, in many other cases, seriously threatened. 19.  The Ministers reaffirmed the commitment of their countries to eradicating poverty and raising the standard of living of their people. The Ministers emphasized the importance of harnessing the development potential of globalization and libelarization with the aim of contributing to the eradication of poverty and the achievement of sustained economic development in the developing countries. They called for decisive and concerted action by the international community to assist developing countries in their efforts to reduce poverty globally during the first United Nations Decade for the Eradication of Poverty. 20.  They also called for an overview of the implementation of the first United Nations Decade for Eradication of Poverty including an analysis of the constraints and lacuna faced by the developing countries in eradicating poverty, with the view to evolving concrete measures to address these constraints.

Financing for Development 21.  The Ministers underlined the vital role of financing for development for fostering economic development of the developing countries and emphasized that the current lack of adequate financial resources for development is the most debilitating constraint on development. The Ministers therefore underlined the importance of addressing the various issues of financing for development more squarely with the aim of devising a comprehensive approach that revitalizes international development cooperation. In this context, the Ministers stressed that the holding of an international conference on financing for development has become even more compelling than before. Furthermore, the Ministers underlined the need to agree on the scope and agenda of the conference during the fifty-third session of General Assembly and for the Group of 77 to take appropriate steps to prepare a common position in this regard. 22.  The Ministers called for the establishment of an open-ended Working Group, as provided in resolution 52/179, in the fifty-third regular session of the General Assembly. They noted the need for developing countries to begin working on evolving a common position on issues such as adequacy and predictability of financial resources for development, security and real growth in such flows in order to meet their expanding requirements. At the same time there is a need to increase international liquidity through SDR allocation and expand the resource base of the

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BWIs, to consider debt relief, systemic issues, regulation of international capital markets both at the creditors and borrowers ends, to curb speculative pressures and establish more objective criteria to be followed by private credit rating agencies.

Official Development Assistance 23.  The Ministers noted with deep concern the continuing decline of the official development assistance (ODA), which is a major external source for financing development and is a crucial input for infrastructure and social sector development in developing countries where private capital flows may either be inadequate or not available. The Ministers strongly urged the reversing of the decline in official development assistance and they also urged the compliance with the internationally agreed ODA target of 0.7 per cent and the fulfillment of commitments on new and additional resources. The Ministers urged the developed countries to allocate 0.15 per cent to 0.2 per cent within the existing target of their gross national product (GNP) to the Least Developed Countries in accordance with the Paris Declaration and the programme of action for the LDCs to enable them to have a realistic chance of building their capacity in order to successfully integrate into the global economy.

External Debt of Developing Countries 24.  The Ministers emphasized that the perennial problem of external indebtedness and its debilitating overhang continues to be a major drain on resources for development. Over half of the developing countries continue to be saddled by insurmountable debt burdens that greatly inhibit their sustained economic growth and sustainable development. The Ministers noted that the current financial turbulence in some parts of the world has aggravated the external indebtedness problems of some of these countries. The Ministers also noted with concern that the implementation of HIPC has been constrained by the failure to secure adequate resources to implement this initiative and therefore, they called upon the international community to explore ways and means for its speedy implementation. The Ministers stressed that the eligibility criteria should be made flexible and inclusive. 25.  The Ministers noted that both low and middle-income developing countries who are similarly mired in indebtedness, also require new initiatives to facilitate their development. While a number of measures and policies adopted in the past including rescheduling have been helpful in alleviating the immediate situation, they have not achieved a durable solution. Thus, in any such discussion on debt, the ‘once and for all’ debt reduction policy arrangements should be seriously considered so as to speed up the release of financial resources for development. 26.  The Ministers also urged the intensification of measures on the conversion of debt to promote development investments in accordance with the priorities and needs of developing countries.

Microcredit 27.  The Ministers welcomed the outcome of the Microcredit Summit, held in Washington, D.C., from 2 to 4 February 1997, which through its Declaration and Plan of Action launched a global campaign to reach 100 million of the world’s poorest families especially women of those families, with credit for self-employment and other financial and business services, by the year 2005. They recognized that microcredit programmes, through providing accessibility to small capital to people living in poverty in many countries, have led to their increasing participation in the mainstream economic and political processes in their societies. They further recognized that, in addition to its role in the eradication of poverty, microcredit programmes have also been a contributing factor to the social and human development process through the

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empowerment of women for the attainment of a better social justice. The Ministers encouraged the development of new micro-lending institutions as well as the strengthening and expanding of existing ones so that the outreach of credit is extended to a greater number of people who are currently living in poverty, and that the progress to reach the goal of the Microcredit Summit is accelerated.

International Trade 28.  The Ministers stressed the critical need for an equitable, secure, non-discriminatory and predictable multilateral trading system, which should enhance trade and development opportunities of developing countries and facilitate an increased share of these countries in international trade. To this end, they urged developed countries to avoid all forms of protectionist tendencies and to implement international trade liberalization measures as a necessary step towards the establishment of a just and equitable multilateral trading system. The Ministers stressed that the trade policy reforms being undertaken by developing countries would be frustrated unless the developed countries took positive structural adjustment measures providing larger export possibilities to developing countries. In this context, the Ministers underscored the need for supporting the developing countries in the process of implementation of various agreements relating to trade and development. 29.  The Ministers noted that while the Uruguay Round and World Trade Organization (WTO) have achieved some progress in market access, their benefit especially in areas of export interest to the developing countries, has been disappointing. Therefore, challenges facing the multilateral trading system rest on whether developed countries can effectively carry forward the ‘built in agenda’, which is the legacy of the Uruguay Round, as has been amplified by the Singapore Ministerial Conference. This comprises many areas crucial to developing countries such as the questions of market access, including the pursuit of market-access opportunities for LDCs, the furthering of the reform process in agriculture and the implementation of the Textile and Clothing agreement particularly with regard to the integration of textile and clothing to the WTO framework. The Ministers noted the deliberations and the Ministerial Communiqué on market access issued at the High Level Segment of the Economic and Social Council as a valuable first step and called on all countries to build on the outcome. 30.  The Ministers noted that it was imperative that developing countries consult closely on issues relating inter-alia to the full implementation of existing commitments, built in agenda, the agenda emerging from the first and second Ministerial Conferences and the multisectoral round agenda with a view to coordinating positions where possible, if necessary through task forces on issues based coalitions. Specifically the Ministers cautioned that extraneous issues with no direct relevance to trade, such as labour issues, which should be discussed in the appropriate agency—the ILO—should not be introduced into the agenda of the World Trade Organization (WTO). The Ministers also stressed that environmental issues should not be used as a pretext for disguised restrictions to trade. They further urged that all efforts be made to ensure that the international trading system fully reflects the development perspective by ensuring implementation of the provisions for special and differential treatment for developing countries, particularly in providing sufficient adjustment time to make commitments on further liberalization in other areas where the competitiveness of developing countries is still incipient. They called for genuine and accelerated liberalization in sectors of interest to them such as textiles, clothing and agricultural products. They called on the international community to ensure that further negotiations in services respond more fully and in a more balanced manner to the development needs and levels of developing countries, particularly in sectors of interest such as the liberalization in the Movement of Natural Persons into developed countries, so as to enhance participation of developing countries in trade in services. The Ministers emphasized the importance of undertaking reviews of

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the various agreements including TRIPs, TRIMS, and the Dispute Settlement Agreement as envisaged in those agreements. They further called for the rationalization of TRIPs with the provision of the CBD to ensure protection for biodiversity, traditional and indigenous knowledge and farmers rights; and to evolve measures to tackle biopiracy and to ensure that benefits of biodiversity are fully shared with developing countries. They also cautioned against discretionary and protectionist use of measures such as antidumping, countervailing duties, rules of origin and technical barriers of trade. 31.  The Ministers also noted that various World Trade Organization (WTO) agreements are coming up for review in the near future. The developing countries should launch preparations for this review process in time and present concrete proposals and enhance their coordination during this process. New issues and proposals on the WTO agenda presented by the developed countries require careful study and analysis by the South. It is important for developing countries to develop a positive agenda that would include sectors of interest to them, such as agricultural products where tariffs in developed markets remain high, and the accelerated implementation of the Textiles Agreements. 32.  The Ministers emphasized the importance of the strengthening and attainment of the universality of the World Trade Organization (WTO) and, in this context, they called for accelerating the accession process without political impediments and in an expeditious and transparent manner for developing countries applying to the World Trade Organization, and also the provision of technical assistance by the World Trade Organization and the United Nations Conference on Trade and Development (UNCTAD), within their mandates, thereby contributing to the rapid and full integration of those countries into the multilateral trading system.

Industrialization 33. The Ministers reaffirmed the continued urgency of promoting industrialization as a dynamic instrument for the acceleration of economic and social development and as a key contributor to the eradication of poverty and the creation of productive employment in the developing countries. The Ministers expressed satisfaction at the continuing revitalization and transformation of United Nations Industrial Development Organization (UNIDO). The Ministers urged the relevant agencies of the United Nations system, in particular UNIDO and UNCTAD to intensify their collaboration in investment promotion, technology transfer and enterprise development to support the development efforts of developing countries. The Ministers called upon the international community including the relevant organizations and bodies of the United Nations and in particular UNIDO to support the implementation of the Programme for the Second Industrial Development Decade for Africa so as to enable African countries to promote industrialization. 34.  The Ministers expressed their appreciation for the invaluable support provided by UNIDO and UNDP in the brainstorming meeting organized by the Group of 77 and China on 10–11 September 1998 in New York to promote analysis and technical discussions on issues related to the United Nations Framework Convention on Climate Change and the Kyoto Protocol. The Ministers strongly supported the key role of UNIDO in promoting sustainable industrial development and the transfer of environmentally sound technologies to developing countries and in supporting their efforts to promote sustainable development. They welcomed the efforts of UNIDO to decentralize its activities to provide more effective and responsive integrated services at the field level. They called upon all member states to renew and strengthen their political and financial support to the Organization to enable it to carry out is new mandate. In this regard, the Ministers urged the Government of the United States of America to honour its obligations to UNIDO by effecting prompt and full payment of its outstanding assessed contributions to the Organization.

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Reform of the United Nations 35.  The Ministers reiterated the high importance they attached to the strengthening of the role of the United Nations in promoting international cooperation for economic and social development, and they expressed their strong belief that the United Nations should be allowed to develop its full potential towards the attainment of that goal. 36.  The Ministers reaffirmed that reform proposals and measures must be fully consistent with the medium-term plan, which constitutes the principal policy directive of the Organization. The main objective of the reform proposals and measures should be to enable the United Nations to implement fully all mandated programmes and activities. 37.  The Ministers noted that the proposal on time limits of new initiatives would have far-reaching implications on the existing Regulations and Rules Governing Programme Planning, the Programme Aspects of the Budget, the Monitoring of Implementation and the Methods of Evaluation. In this regard, they stressed on the need for the Committee for Programme and Coordination, Advisory Committee on Administrative and Budgetary Questions, and the Fifth Committee to consider this proposal in all its aspects, before consideration and action by the General Assembly. 38.  Regarding the reform proposal on results-based budgeting, the Ministers noted this proposal would lead to a radical departure from current programme planning and budgetary practices and procedures, which have been repeatedly reaffirmed by the General Assembly. They stressed the need for thorough consideration, by the Advisory Committee on Administrative and Budgetary Questions and the Fifth Committee, of the more detailed report that the Secretary-General was requested to submit on this proposal. Therefore, no action should be taken by the Secretariat to implement results-based budgeting until the General Assembly decides on the appropriate action on this matter. 39.  The Ministers recognized the importance of reinforcing the United Nations for the challenges of the new millennium and in this context they stressed the need to keep under close intergovernmental oversight and review the implementation of the decisions adopted by the General Assembly in its resolutions 52/12 A and B with regards to the reform proposals presented by the Secretary-General in his report, ‘Renewing the United Nations: A Program for Reform’, as well as a continuous assessment of their implications. While implementing those decisions, they also stressed the need to take into account the views expressed by Member States during the process of consideration of those decisions, including those subjects and aspects where the overwhelming majority coincided in formulating precise and clear guidelines. In this regard, they reiterated the statement of principles on UN reform of the Group of 77 which, inter-alia, stressed that reform process should be carried out with the primary objective of strengthening the capacity of the United Nations to address development issues and to respond effectively to the development needs of developing countries. 40.  The Ministers noted the designation of the fifty-fifth session of the General Assembly as the ‘Millennium Assembly’ as the occasion, which could provide opportunity to renew political support for the United Nations, and to strengthen the case of multilateralism in particular in the areas of international cooperation for development. The Ministers invited the Secretary-General to take fully into account the needs and priorities of the developing countries in preparing the Millennium Assembly and to conduct preparatory work in an open, democratic and transparent manner. The Ministers called upon the General Assembly of the United Nations to reach a decision on the various organizational aspects of the Millennium Assembly, including its agenda, at its fifty-third session. 41.  The Ministers reaffirmed their support for Habitat and UNEP and their current location. They called on developing countries to examine the report of the United Nations Task Force on

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Environment and Human Settlements with a view to evolving a common position on its recommendations.

Development account 42.  The Ministers welcomed the establishment of a new section in the United Nations regular budget on the development account by General Assembly resolution 52/220. They emphasized that the Development Account should be subject to the provisions of General Assembly resolution 52/235. They underlined that this new section should also be governed in full compliance with the current and future medium-term plan, and with the relevant regulations and rules of the United Nations and budgetary procedures, in terms of preparation, consideration, and evaluation by the mandated bodies. 43.  The Ministers stressed that the funds available in the development account should be utilized for the sole purpose of intensifying the activities of the United Nations for sustained economic growth and sustainable development, based on the programmes approved in the medium-term plan. In this regard, they further stressed that the sustainability of the development account should not be pursued through unjustifiable and unsound measures without taking into account the views expressed by the developing countries. 44.  The Ministers expressed their concern at the initiative to categorize the various programmes and activities of the United Nations as non-programme costs based on arbitrary assumptions, which would adversely affect the ability of the Organization to perform its mandated programmes and activities. Noting that all the United Nations activities are under programme, they urged the Secretary-General not to undertake any such review without satisfying the questions raised by member states. 45.  The Ministers underlined that the proposed economy measures should not result in a reduction in the overall level of the regular budget or the staffing level. In this regard, they stressed that adequate resources should be provided for full implementation of mandated programmes and activities. Furthermore, the Ministers underscored that there should be no imposition of any ceiling to the overall level of the regular budget of the United Nations.

Environment and Development 46.  The Ministers reiterated the importance of the achievement of the goals of sustainable development and the full and effective implementation of Agenda 21. While recognizing that a number of positive results have been achieved, in particular in the fulfillment of commitments by developing countries, they were deeply concerned about the lack of fulfillment of international commitments voluntarily undertaken by industrialized countries at the Rio Summit, in particular those relating to the provisions of new and additional financial resources and the transfer of environmentally sound technology to developing countries on favourable, concessional and preferential terms. 47. The Ministers underscored the importance of the effective follow-up to the Barbados Programme of Action and welcomed the convening of a two days special session of the General Assembly in 1999 for the comprehensive review of the SIDs Programme of Action and urged that a review should provide concrete recommendations for the further implementation of the Programme of Action. 48.  The Ministers expressed their commitment to strengthen institutional effectiveness within the United Nations system and the relevant international bodies to promote the programme of action and called the early ratification of the Kyoto Protocol to the United Nations Framework Convention on Climate Change. 49.  The Ministers expressed concern over the increased vulnerability of the developing countries to natural disasters, which have negative effects on the population, the economy and the

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environment. The Ministers called upon the international community to have a mechanism for cooperation in order to prevent and mitigate the negative impacts of natural disasters for the next millennium.

Habitat and UNEP 50.  The Ministers expressed their concern over the declining funding resources for UNEP and Habitat and urged developed countries to support both institutions with adequate, stable and predictable financial resources to enable them to carry-out their mandated activities.

Follow-up to United Nations Major Conferences and Summits 51.  The Ministers noted that international consensus has been forged on a range of priority issues for the international community including inter-alia, environment and development, social development, population and development, women and development, habitat and food. At the same time, it was a matter of concern that resources for the implementation of this consensus commitment agreed upon at the conferences and summits were declining. While efforts were being made to enhance coordination and improve follow-up to the Conference outcomes, the Ministers noted that effective follow-up to the Conference outcomes also necessitates effective measures in the area of means of implementation. They also noted that efforts to identify a set of basic indicators to evaluate progress in follow-up to conferences would need to be broad based and cover all aspects of Conference outcomes, including means of implementation. 52.  The Ministers welcomed the result of the twentieth special session of the United Nations General Assembly on the World Drug Problems, in particular the adoption of the Declaration on the Guiding Principles of Demands Reduction and Action Plan against Illicit Manufacture, Trafficking and Abuse of Amphetamine-type Stimulants and their Precursors, which will contribute to attaining a truly balanced and comprehensive approach to the drug problems. Furthermore, the Ministers encouraged the implementation of such Declaration and Action Plan. 53.  The Ministers reiterated the importance of the Programme of Action of the International Conference on Population and Development, and urged the international community to provide the necessary resources for the implementation of the Programme of Action and called for concerted efforts to ensure the success of the Special Session of the General Assembly in 1999, for the review and appraisal of the implementation of the Programme of Action of the International Conference on Population and Development. 54.  The Ministers stressed the importance of the Special Sessions of the General Assembly on the Implementation of the Outcome of the World Summit for Social Development and Further Initiatives, and the Fourth World Conference on Women, to be held in the year 2000. The Ministers highlighted that both the preparatory and review processes should foster the full implementation of the Programme of Action of the World Summit for Social Development and the Platform for Action of the Fourth World Conference on Women. 55.  The Ministers stressed the importance of holding the General Assembly Special Session in the year 2001 for the overall review and appraisal of the implementation of the outcome of the Habitat II and the need to ensure that the modalities for such review should contribute to the further implementation of the Habitat Agenda.

United Nations Operational Activities for Development 56. The Ministers stressed that the forthcoming Triennial Comprehensive Policy Review of Operational Activities of the United Nations system must result in the enhancement of the role of the United Nations in developmental activities. They were of the view that the Triennial

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Comprehensive Policy Review of the Operational Activities must address the issue of placing the funding of the programmes and funds on a predictable, assured, and continuous basis, commensurate with the increasing needs of developing countries. They noted with appreciation the growing contribution of a large number of developing countries to the core resources of the United Nations Funds and Programmes which clearly demonstrated their continued faith and commitment to the work of those bodies. They called on traditional donor countries to increase substantially their contributions to the core resources of the United Nations Funds and Programmes in order to immediately meet the objectives set. The Ministers also stressed that the reforms of the United Nations, and those undertaken by the United Nations Funds and Programmes including in the context of the funding strategies, must safeguard the essential characters of the United Nations operational activities which are of universality, neutrality, multilateralism, voluntary and grant nature, and responding to the needs of developing countries in a flexible manner. The Ministers stressed that in order to enhance the effectiveness of the United Nations Funds and Programmes, it is crucial that they are provided with adequate and predictable resources. They also called on the United Nations Funds and Programmes to take effective steps to include SouthSouth cooperation within their programmes of assistance. Furthermore, they urged the United Nations Funds and Programmes to increase their procurement of goods and services from developing countries. They stressed the need for the United Nations Funds and Programmes to intensify their coordination with regional commissions, especially during the programming stages, to optimize the potential contribution of the regional commissions in the operational activities of the United Nations system.

Least Developed Countries 57. The Ministers recognized that the Least Developed Countries (LDCs) were the weakest members in the international community with the most formidable development problems. In a world economy increasingly being shaped by the processes of globalization and liberalization, the LDCs were marginalized from the mainstream. The Ministers expressed their deep concern at the sluggish growth of the LDCs economies. They have been by-passed by foreign investment, their debt burden continued to increase while the external assistance diminished further. In order to benefit from and sustain the wide range of structural and economic reforms undertaken by the LDCs, it is necessary to increase the flow of external resources as well as to support LDCs efforts in capacity building and infrastructure development. The Ministers, therefore, urged the developed countries to reverse the downward trend of assistance to LDCs and fulfill the internationally agreed target of ODA as soon as possible. The Ministers further called upon the international community to implement fully the Programme of Action for the LDCs for 1990’s in order to accelerate growth and development processes in those countries. They also stressed the importance of initiating preparations for the Third United Nations Conference on LDCs, scheduled to be held in the year 2001, which would offer a scope to comprehensively deal with the overall development problems of the LDCs, including a new, practical and action oriented Programme of Action for the first decade of the Twenty-first century. 58.  The Ministers expressed their concern at the continued marginalization of the LDCs. They declared that arresting and reversing this trend and promoting expeditious integration into the world economy, constituted an ethical imperative for the international community. They expressed their determination to work together towards further enhanced market access for their exports within the context of supporting the efforts of LDCs at capacity building. They welcomed the initiatives taken by the WTO in cooperation with other organizations to implement the Plan of Action for the LDCs, including through effective follow-up to the High-level Meeting on Integrated Initiatives for LDCs Trade Development, held in October 1997. They recognized that full implementation of the Plan of Action required further progress towards duty-free imports

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from LDCs. They also invited the UNCTAD, ITC, UNDP, UNIDO, the World Bank, IMF, WTO and other relevant organizations to provide enhanced technical assistance to help strengthen the supply capacity of the LDCs and to help them to take the fullest possible advantage of trading opportunities arising from globalization and liberalization. They urged the developed countries to ensure that the necessary funds are made available to the organization to secure implementation of the Integrated Framework for Trade Related Technical Assistance to the LDCs, adopted in October 1997.

Critical Economic Situation in Africa 59.  The Ministers noted that the socio-economic and political situation in Africa remained critical due to a combination of factors including conflicts, diseases and unfavourable external economic conditions. They emphasized the need to fully implement the commitments and undertakings aimed at addressing the root causes of poverty and crisis in Africa and ensuring long-term stability and peace and sustained economic growth and development. In this regard, they welcomed the report of the Secretary-General to the Security Council and the General Assembly of 13th April 1998 on The causes of conflict and the promotion of durable peace and sustainable development in Africa (A/52/871-S/1998/318) and its recommendation as a further impetus to mobilize resources for African development. 60.  The Ministers, in particular, called on the United Nations system and the international community to enhance support for Africa’s own efforts at economic transformation and development through a combination of measures, including capacity building, duty-free and guaranteed market access for goods of export interest to Africa the promotion of foreign direct investment, debt reduction, aid restructuring and increased official development assistance (ODA). 61.  They reiterated their support to the various initiatives on African development and urged the synergy of the implementation of all these initiatives within the framework of the review processes of the United Nations New Agenda for the Development of Africa in the 1990s (UNNADAF), as outlined in the relevant resolutions and decisions of the General Assembly and the Economic and Social Council respectively.

Critical situation in the Middle East 62.  The Ministers expressed their concern over the deteriorating economic and social situation of the Palestinian people as a result of the continued illegal Israeli policies and actions in the Occupied Palestinian Territory, including Jerusalem, particularly settlement activities, the closure of the Palestinian territory and the withholding of Palestinian revenues. In this context, the Ministers stressed the need to preserve the territorial integrity of all of the Occupied Palestinian Territory, to guarantee the freedom of movement of persons and goods, and to respect the fundamental human rights of the Palestinian people. The Ministers reemphasized the need for international assistance to support Palestinian development efforts in the economic and social fields, and called on the international donor community to deliver the financial assistance pledged to the Palestinian Authority. 63.  The Ministers expressed their deep concern at the stalled peace process in the Middle East and the persistence of the Israeli occupation of the Palestinian Territory, including Jerusalem, and the other Arab territories, which gravely deteriorate the living conditions of the Arab population under occupation, as well as negatively affect the national efforts to achieve sustained economic growth and sustainable development in the region. They further expressed grave concern over the escalating Israeli policies of building and expanding settlements in the Occupied Palestinian Territory, including Jerusalem and the occupied Syrian Golan, in violation of international law, relevant United Nations resolutions and the Fourth Geneva Convention, of 12

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August 1949. They reaffirmed their support to the Palestinian people in their effort to achieve their inalienable rights, including their right to establish an independent state on their national soil, including Jerusalem. They also reaffirmed their support for the Middle East peace process, aimed at achieving a comprehensive, just and lasting peace in the region on the basis of Security Council resolutions 242 (1967), 338 (1973), and 425 (1978) and the principle of land for peace. In this context the Ministers urgently called for the implementation of the agreements reached and international support to reactivate and complete the peace process from the point where it was stopped at, emphasizing the necessity to respect all agreements, pledges and commitments reached during previous stage of the peace talks. The Ministers reaffirmed further the permanent responsibility of the United Nations towards the Question of Palestine, and called upon Israel to comply with all relevant United Nations resolutions and to put an end to its occupation of Palestinian Territory, including Jerusalem, and the other Arab territories including the Syrian Golan and South Lebanon.

The Financial Situation, Administrative and Budgetary Issues of the United Nations 64.  The Ministers reiterated their deep concern over the difficult and chronic financial situation of the Organization and reaffirmed that the primary cause of the financial difficulty continues to be the failure on the part of certain developed countries to pay their assessed contributions to the regular budget and peace keeping operations budgets in full, on time and without conditions. 65.  The Ministers underscored the intergovernmental nature of the United Nations and reaffirmed the legal obligation of Member States to bear the expenses of the Organization in accordance with the relevant provisions of the Charter and the requirements to pay assessed contributions and arrears in full, on time and without conditions. In this regard, the Ministers recognized the need to extend sympathetic understanding to Member States who are temporarily unable to meet their financial obligations as a consequence of genuine economic difficulties. 66.  The Ministers reaffirmed that the principle of the ‘capacity to pay’ is the fundamental criterion in the apportionment of the expenses of the United Nations. The Ministers further stressed that the developing countries should not be assessed at a rate higher than the capacity to pay as a result of any adjustments in the scale. 67.  The Ministers also reaffirmed that the principles contained in the special scale of assessments established in resolutions 1874 (S-IV) of 27 June 1963 and 3101 (XXVIII) of 11 December 1973 for the apportionment of the costs of peacekeeping operations must be adopted on a permanent basis. In this regard, they stressed that the scale for financing these operations must clearly reflect the special responsibilities of the permanent members of the Security Council and economic situation faced by other countries or groups of countries, particularly the developing countries. In this context, the Ministers further stressed that the establishment of a ceiling and a floor for the Permanent Members of the Security Council is totally unacceptable. Furthermore, the Ministers recalled that the economically less developed countries have limited capacity to contribute towards the budgets of peacekeeping operations. 68. The Ministers also reiterated their concern over the continuing financial cutbacks to an already severely limited programme budget of the United Nations which has continued to threaten the very functioning of the United Nations and could adversely affect the Organization’s capability to implement fully the programmes and activities which Member States have entrusted to it, in accordance with the medium-term plan for 1998–2001 and with special emphasis on international and regional cooperation for development. In this regard, the Ministers stressed the need for the reform process of the United Nations, to strengthen, rather than weaken the implementation of all mandated programmes and activities and related secretariat support structures. They

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expressed deep concern with the high vacancy rate, especially in economic areas, which hampered programme delivery and should not be allowed to continue in the future. 69. The Ministers resolved that the existing budgetary procedures as contained in General Assembly resolution 41/213 should be fully respected and implemented in all its aspects. The proposed programme budget outline and the proposed programme budget of the United Nations should be submitted strictly in accordance with this resolution. Moreover, the Ministers reaffirmed that equal priorities should be given to all programmes and activities of the United Nations as agreed in the medium-term Plan and other General Assembly resolutions. 70.  The Ministers emphasized the importance of the General Assembly resolution 52/226 and expressed their concern with the negligible share of the developing countries in the United Nations procurement. They also emphasized that the United Nations procurement should be on as wide a geographical basis as possible with preferential treatment to the developing countries. The Ministers further underlined that the United Nations supplier rosters should be representative of the membership of the Organization. 71.  The Ministers reaffirmed that all mandated programmes and activities of the United Nations should be performed by international civil servants in accordance with articles 100 and 101 of the United Nations Charter. They emphasized that gratis personnel should be phased out by February 1999, in accordance with General Assembly resolutions 52/234 and 52/248.

South-South Cooperation 72.  The Ministers reaffirmed their commitment to Economic and Technical Cooperation among Developing Countries (ECDC/TCDC) and reiterated their conviction that it constitutes an integral and essential part of the efforts of the developing countries to promote economic growth, technological capacities and accelerated development. They also reiterated their conviction that South-South cooperation is not only a means of taking advantage of existing and potential complementarities in the economies of developing countries, but can also contribute to restructuring international economic relations and strengthening the world economy. 73.  With a view to intensifying the expanding South cooperation, the Ministers called on developing countries to explore cooperation in areas such as biotechnology, information and communication technologies, infrastructure development, making GSTP more effective, improving trade credit facilities for intra South trade, promotion of intra South technology transfers and FDI. Specifically they called for the consideration of the establishment of an Infrastructure Fund to facilitate and accelerate development of infrastructure in developing countries, including exploration of modalities for financing of such fund from all possible sources. 74.  In this context, the Ministers welcomed the offer made by the Government of Indonesia to host, from 2nd to 4th December 1998, a High Level Meeting in Bali on Subregional and Regional Economic Cooperation, with the primary focus on identifying innovative strategies for accelerating the pace of trade, investment, financial and technical cooperation among the subregional economic groupings of the developing countries. In this context, the Bali Meeting will accelerate the implementation of the Caracas Programme of Action keeping in mind the new realities of the developing world. They also expressed the hope that this meeting will draw up a concrete plan of action that would enable developing countries to respond effectively to the challenges and opportunities which are presented by globalization and economic liberalization. The Ministers invited all members of the Group of 77 to participate actively and to send their high level representation to that meeting. 75.  The Ministers welcomed the holding of the First India—The Group of 77 and China—Trade Fair and Business Summit in New Delhi, India, 14–27 November 1998 and expressed the hope that the Fair would intensify trade, investment, and technological interaction among the countries of the South.

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76.  The Ministers stressed that ECDC/TCDC has matured into an integral aspect of the historical process of international cooperation for development. They reiterated that ECDC/TCDC provides a natural bridge for the effective participation of the developing countries in the global economy. In this regard, there is a need to effect a closer operational integration between TCDC and ECDC. The Ministers appreciated the support provided by the UNDP/the Special Unit for TCDC to support the implementation of the CPA and encouraged UNDP/and its Special Unit for TCDC to continue to expand this cooperation with the Group of 77 for the benefit of all developing countries. Furthermore, the Ministers welcomed the General Assembly decision to commemorate the twentieth anniversary of the Buenos Aires Plan of Action on 7 October 1998 and invited all countries and the United Nations system to participate very actively at this commemoration as well as at the exhibition on South-South cooperation. 77.  The Ministers noted with appreciation the outcome of the High Level Advisory Meeting on the South Summit held in Jakarta from 10 to 11 August 1998 and in this context decided to hold the South Summit in the year 2000. The Ministers welcomed the generous offer of the Government of Cuba to host the Summit and invited the Chairman of Group of 77 in close cooperation with the host country to undertake preparations for the Summit, devising its modalities, including timing, agenda and other necessary arrangements required for the Summit. 78.  The Ministers approved the financial statement for 1998 and appealed to the members of the Group of 77 to contribute generously to the ‘ECDC Account’ in order to facilitate the implementation of the Caracas Programme of Action. For those that have not contributed yet, a special appeal was made to do so, and to those who have already contributed an appeal was made to increase their contributions. 79.  The Ministers approved the report of the Thirteenth Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund (PGTF) presented in accordance with the guidelines for the utilization of PGTF, and approved its recommendations. They expressed satisfaction with the results achieved by PGTF and commended the Chairman’s efforts to expand the PGTF resources in close cooperation with the UNDP. They also called for timely briefings on the functioning of the PGTF for approved projects and dissemination of guidelines for the utilization and disbursement of funds. 80.  The Ministers commended the pledge made by the Chairmen/Coordinators of the Group of 77 at their annual meeting to strengthen their coordination and to work together in a more cohesive and harmonious manner with a view to enhancing interaction of the various Chapters of the Group of 77 in all multilateral fora. In this context, the Ministers recalled the initiative by the Chapters to strengthen the institutional effectiveness of the Group of 77 in all chapters through the establishment of liaison offices in accordance with the decision taken by the Special Ministerial Meeting of the Group of 77 held in June 1994. While welcoming the decision taken recently by the Group of 24 in Washington D.C. to establish its own permanent secretariat, the Ministers emphasized the importance for the Chairman of the Group of 77 in New York to implement the decision taken by the Chairmen/Coordinators of the Chapters in June 1996 aiming at setting up a permanent secretariat within the Office of the Chairman as mandated by the Twentieth Ministerial Meeting, and invited the Chairman of the Group of 77 to report to the next ministerial meeting on the matter. 81.  The Ministers were convinced that the celebration of the 35th anniversary of the establishment of the Group of 77 on 15 June 1999 constitutes an opportunity to reaffirm the commitment of the Group of 77 to implement its goals and objectives in the light of the new challenges facing developing countries. The Ministers invited the Chairman of the Group of 77 to conduct appropriate consultations with a view to deciding on how this important event should be commemorated in 1999, including the possibility of convening a special meeting of the Group of 77 at an appropriate level.

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23.  Twenty-third Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 24 September 1999 a.  Ministerial Declaration 1.  The Twenty-third Annual Meeting of the Ministers for Foreign Affairs of the Group of 77 was held in New York on 24 September 1999. 2.  The Ministers, availing themselves of the occasion of the 35th anniversary of the Group of 77, reflected on the emergence of the Group as a major force in world affairs and on the constructive role it has played in development and international economic cooperation and in consensus building on these issues over the past three and a half decades. They reaffirmed their commitment to the principles and objectives that have guided the Group over the years and the spirit of mutual support and solidarity that has prevailed among its members and determined to strengthen the unity and solidarity of the Group in the continuing pursuit of its objectives. 3.  The Ministers pledged to work towards a clearer definition of long-term strategies of the Group and, in this regard, underscored the historic importance of the South Summit to be held in Havana, Cuba, from 12 to 14 April 2000. They undertook to further mobilize the collective strength and solidarity of developing countries through strengthening South-South cooperation as well as enhancing the Group’s negotiating capacity on all major development issues. The Ministers also expressed their determination to work towards a new and decisive role for the United Nations on global economic and development issues in keeping with the Charter.

Role of the United Nations 4.  On the eve of a new century and millennium, the Ministers reiterated the importance of the UN as the central forum for dialogue, negotiations and policy making on issues relating to development and international economic cooperation and called upon all States to respect the principles and purposes embodied in the Charter of the United Nations. They advocated a stronger United Nations system to handle the complex and interrelated problems facing developing countries. They stressed the need to further enhance the coordination between the UN and the multilateral financial and trade institutions. In this regard, they emphasized that the UN, the most universal organization, must play a key role in international economic policy-making. They also emphasized that the leading international trade and financial institutions must take into account the policy framework adopted by the UN and should ensure that their policies are in conformity with the developmental objectives of developing countries. They also stressed the crucial role of the UN in facilitating development through operational activities. The Ministers welcomed the high level dialogues between the Economic and Social Council and the Bretton Woods Institutions, which have taken placed in the last years. 5.  The Ministers renewed their determination to strive, through the United Nations and other fora, for a world characterised by justice, equity and genuine human solidarity. They also reaffirmed their commitment to the full realisation of the right to development and stressed that this should be accorded the utmost priority by the United Nations in the twenty-first century. 6.  The Ministers welcomed the proclamation by the United Nations General Assembly of the year 2001 as the year of Dialogue among Civilizations and stressed the importance of this initiative as a means of enhancing understanding of diverse cultures and promoting cultural interaction in a globalising era.

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Global Economic Situation 7.  The Ministers noted with grave concern that the international economic environment continues to be unfavourable for the developing world. They observed that developing countries as a whole experienced a deceleration in economic growth in recent years. While there were individual cases of continued growth in different regions, many countries witnessed debilitating slow-downs while others experienced devastating economic crisis and deep recession with bleak prospects in the near future. 8.  The Ministers noted with concern the widening gap between the developed and developing countries and the continued uncertain prospects of global economic recovery and its consequences for developing countries. They stressed the need for concerted multilateral actions to achieve the objectives of the United Nations Charter in solving economic and social problems and in promoting peace and security. They therefore called for the establishment of a just international economic order and for measures to ensure the full and effective participation of developing countries in the process of decision-making aimed at resolving world economic problems. The Ministers further called for a renewal of political will and of the spirit of international partnership in development and for the creation of an enabling international economic environment in order to support developing countries’ efforts to achieve sustained economic growth and sustainable development while reaffirming the leading roles of national governments in the development process of each country.

Globalisation and interdependence 9.  The Ministers pointed out that the differential reach and impact of globalisation has generated economic asymmetries both at the global and national levels and posed new challenges to the development aspirations of developing countries. Many developing countries, particularly the least developed countries and the structurally weak and vulnerable and small economies have faced difficulties in their efforts to integrate effectively into the world economy and have suffered the consequences of globalisation. The Ministers observed that the impact of these processes was increasingly pronounced in the areas of finance and trade and at the same time noted that the effects were also extending to the social and cultural domains. They called for further analysis and evaluation of the possible implications of these trends for developing countries in the 21st Century. 10.  On the other hand, the Ministers emphasized that globalisation should be a powerful and dynamic force for strengthening cooperation and accelerating growth and development. It presents opportunities, as well as risks and challenges. Globalisation is a process, which can be uneven and unpredictable, but if it is properly harnessed and managed, the foundations for enduring and equitable growth at the international and national levels can be laid. National efforts need to be complemented by intensified international cooperation in order to reverse the marginalisation and manage the risks, overcome the challenges and seize the opportunities created by globalisation. 11.  The Ministers observed that the global economy continues to be characterized by growth in flows of trade, finance, information and technology, which has led to increased interdependence among countries. However, the impact of globalisation and interdependence was highly uneven. They expressed deep concern regarding the marginalisation of a large number of developing countries, which were thus being denied the benefits of these processes. They stressed that most developing countries continued to face problems of access to markets, capital and technology and many grappled with the structural transformation necessary for meaningful integration into the world economy. They emphasized that the ability to exploit new opportunities was determined inter alia, by technological and institutional capacities to access the global markets. They strongly

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urged that the central focus of international development efforts should be the creation of an enabling international economic environment in which the developing countries would be able to acquire the requisite capacities to successfully compete and benefit from globalization. 12.  The Ministers further observed that globalization, and the increasing interdependence that it engenders, necessitate effective governance that focuses primarily on: (a) the democratisation of international economic decision-making; (b) the integrated consideration of trade, finance and developmental issues by international institutions, (c) the reform of the international financial architecture and (d) the problem of marginalization. 13.  The Ministers noted that the recent financial crisis in Asia has exposed weaknesses in the international financial system. They voiced concern about the lack of surveillance and regulation of international currency trading, as well as the volatility of the international financial system, which have a detrimental impact on global financial and economic stability. Therefore, the Ministers emphasized the need to strengthen the global financial architecture, including with regard to the prevention, management and resolution of financial crises in a timely and effective manner, with a view to achieving a more stable, manageable, transparent and development-oriented international financial system. 14.  The Ministers also noted that the financial crisis has reinforced the need for serious global efforts to establish more stringent rules and regulations on short-term capital flows in order to maintain and promote stability in the international financial system. These efforts include the strengthening of the ‘lender of last resort’ function and the establishment of mechanisms through which multilateral financial institutions, regional banks and institutions, and major economies can rapidly restore calm to financial markets in the event of a crisis. 15. The Ministers stressed the necessity for the international community to consider new approaches to international development cooperation, based on growth, stability and equity with the full participation and integration of the developing countries in the globalising world economy. They also attached great importance to the efforts aimed at increasing awareness and common understanding on how the international community should address the challenges and opportunities of globalisation. In this regard, they expressed their strong support for the holding of the next biennial High-Level Meeting on the Renewal of the Dialogue on the Strengthening International Cooperation for Development.

International Trade 16.  The Ministers welcomed the outcome of the Ninth Ministerial Meeting of the Group of 77 Preparatory to UNCTAD X, held in Marrakech, Morocco, from 13 to 16 September 1999 and called on developing countries to continue coordinating their position on trade issues at the forthcoming sessions of UNCTAD. 17.  The Ministers committed themselves to working together to make UNCTAD X a system-wide endeavour involving all actors in development in all its dimensions. They considered that UNCTAD X, being the first major UN conference in the new millennium, will be able to define a new development paradigm based on growth, stability and equity with full participation and integration of developing countries in the globalised economy and to make globalization an effective tool for the development of all countries. 18.  The Ministers considered the liberalization of international trade under WTO rules as a powerful and dynamic force for accelerating growth and development. They reaffirmed their commitment to persevere in the pursuit of liberal and open trade policies that integrate the development dimension. They considered that challenge for the Third WTO Ministerial Conference is to make resolute progress along the path towards an open international trading system whose benefits are equitable distributed.

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19.  The Ministers noted with great concern, however, that the benefits of the existing multilateral trading system continue to elude developing countries. Progress towards full liberalization in sectors of particular interest to them is lagging behind, and significant imbalances between rights and obligations exist in multilateral trade agreements (MTAs), as well as in conditions of market access. They stated that the persistence of these anomalies could erode the confidence of developing countries in the multilateral trading system and strengthen the hand of those who would wish to retreat into misguided protectionist policies and approaches. 20.  The Ministers therefore attached utmost importance to addressing the issues and difficulties faced by developing countries that have arisen in the course of the implementation of the WTO MTAs. In this way developing countries can achieve a share in the growth of international trade commensurate with their economic development needs. The non-realization of benefits by many developing countries in areas of interest to them has resulted from the failure of major trading partners to fully and faithfully meet their obligations in these areas, particularly textiles and clothing. They therefore urged that the question of the implementation of Marrakech Agreements and Decisions be addressed and resolved at Seattle by the Third Ministerial Conference of the WTO. 21. In particular, the Ministers stressed that special and differential provisions in the WTO MTAs, many of a ‘best endeavour’ nature, which have largely remained unimplemented, must be operationalised if the developing countries are to derive the expected benefits. 22.  The Ministers stressed that the negotiations provided for under the ‘Built-in Agenda’ should be launched without delay responding to the priorities of developing countries: o  In agriculture, the objective should be to incorporate the sector within normal WTO rules, addressing the particular problems of predominantly agrarian and Small Island developing economies and net food-importing developing countries. o  Negotiations on trade in services should be carried out within the existing architecture of GATS and aimed at the liberalization of sectors of special interest to developing countries and the movement of natural persons, while taking account of the impact of electronic commerce. o  The mandated reviews under the WTO MTAs ought to redress imbalances and to ensure that provisions in favour of developing countries are effectively implemented. 23.  The Ministers called upon developed countries to demonstrate a firm and unequivocal commitment to opening their markets to the exports of developing countries, and to provide duty free and quota free access for the exports of the least developed countries. This should not affect WTO members’ existing commitments relating to preferential schemes. Any future negotiations should address the elimination of tariff peaks and tariff escalation and should introduce further disciplines to prevent the abuse of measures such as antidumping, countervailing duties and safeguard actions, sanitary and phytosanitary regulations and technical barriers to trade, as well as to prevent the apparent revival of the use of voluntary export restraints. The work programme on the harmonization of non-preferential rules of origin should be achieved rapidly, to attain simplified, harmonized and more transparent rules. 24.  The Ministers undertook to collectively pursue a positive agenda for future multilateral trade negotiations which should also pay particular attention to such issues as transfer of technology, appropriate safeguards for developing countries, credit for autonomous liberalization, export finance, commodity markets and the integration of developing countries into the multilateral trading system on equitable terms. These negotiations should make operational the provisions under the TRIPs Agreement relating to the transfer of technology, to the mutual advantage of producers and users of technological knowledge and seek mechanisms for a balanced protection of biological resources and disciplines to protect traditional knowledge; enable developing

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countries under the TRIMs Agreement and the Agreement on Subsidies and Countervailing Measures to use measures necessary to implement their policies for development and export diversification and upgrading. 25.  The Ministers reiterated that the Singapore Ministerial declaration confirmed that ILO is the competent body to set and deal with all issues relating to labour standards. They therefore firmly opposed any linkage between trade and labour standards. They were also against the use of environmental standards as a new form of protectionism. They asserted that issues relating to such standards should be dealt with by the competent international organizations and not by the WTO. 26.  The Ministers remained convinced of the need for differential and more favourable treatment of developing countries. This includes assistance to developing countries to assist them in overcoming transitional costs and to allow time for achieving development goals and enhancing competitiveness. The concept of special and differential treatment should be reviewed and strengthened to take account of the changing realities of world trade and of globalised production, and must be accompanied by capacity-building, enhanced market access and measures taken by industrialized countries to encourage their enterprises and institutions to transfer technology and know-how and invest in developing countries. 27.  The Ministers stressed that eliminating trade barriers will not be enough to accelerate the integration of developing countries into the multilateral trading system. They therefore called upon the international community to expand technical cooperation and capacity-building programmes, and to provide support for overcoming supply-side deficiencies and improving the trade infrastructure in developing countries, particularly the LDCs and small economies. There is a need to strengthen their export sectors and stimulate the positive contribution that the commodity sector can make to development through diversification. The Ministers addressed implementation of activities within the integrated framework for trade-related technical assistance endorsed by the 1997 WTO high-level meeting on LDCs trade development needs to be accelerated and called on the developed countries to provide the necessary resources for this objective. 28.  The Ministers further called on the international community to give serious consideration to the proposals adopted by the LDCs’ Coordinating Workshop convened in South Africa in June 1999. 29.  The Ministers noted the importance for all countries of consistency between national trade policies and the multilateral trade agreements. In this regard, they expressed concern at: o  The continuing use of coercive economic measures against developing countries, through, inter-alia, unilateral economic and trade sanctions which are in contradiction with international law, which constitute a violation of the United Nations Charter and of WTO rules; and that o  The fact that the preferential trade access granted to some developing countries continues to be tied to conditions not related to trade. They affirmed that these harmful practices, which conflict with WTO rules, should be eliminated. 30.  The Ministers underlined that the universality of the World Trade Organization should be achieved as soon as possible in order to strengthen the multilateral trading system. They stated that appropriate assistance should be made available to developing countries seeking accession. They should be offered terms that neither exceed nor are unrelated to the commitments of developing country and LDC members of WTO. They urged that all WTO members refrain from placing excessive or onerous demands on applications from developing countries. The Ministers, therefore, stressed the need for a transparent, streamlined and accelerated accession process that is in keeping with WTO rules and disciplines. 31.  The Ministers recognized the importance of regional and sub regional integration. They noted that arrangements facilitate trade and investment flows, economies of scale, economic

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liberalization and the integration of their members into the system of international economic relations within a framework of open regionalism, enabling progress towards a more open multilateral system. 32.  The Ministers attached importance to achieving greater complementarity in international economic policy making. The international institutions involved should pursue mutually supportive policies which would enable developing countries to derive maximum benefit from the Multilateral Trade Agreements, while respecting the rights of developing countries enshrined in these Agreements. 33.  The Ministers emphasised that the issue of commodities continues to occupy a priority place on the development agenda inasmuch as the revenue from exports of these products continues to be of cardinal importance. UNCTAD needs to carry out analytical studies and provide technical cooperation to support developing countries in the horizontal and vertical diversification of the goods they produce for export. The Ministers pointed to the need to strengthen the export sector and stimulate the positive contribution that the commodity sector can make to development, and urged the international community to further support the Common Fund for Commodities, including fulfilment of the pledges for contributions. 34.  Recognizing the important contribution of foreign direct investment to growth and development in developing countries, and to the modernization of their production processes, the Ministers welcomed investment in productive activities in the economies of developing countries, both to create jobs and share skills, technology and know-how with the peoples, and to do business and form partnerships with enterprises of the developing world so that all enterprises can be globally competitive. They called on major home countries to expand their guarantee facilities for investment in developing countries especially LDCs, and urged the Multilateral Investment Guarantee Agency (MIGA) to provide preferential premiums for investors from developing countries that have no guarantee systems of their own. They noted that further study of issues related to the development dimensions of international investment agreements is needed. The Ministers encouraged the development of viable and internationally competitive enterprises in developing countries and pledged their continued support for cooperative arrangements for enterprise networking across regions and sub regions. They called on UNCTAD, in its activities on small and medium-sized enterprises, and in cooperation with other relevant organizations, to assist developing countries in their efforts to develop women entrepreneurship. 35.  The Ministers reiterated the importance of expanding the opportunities and channels for transfer of technology and know-how to developing countries. They stressed the need to analyse the impact of existing multilateral trade agreements on access to technology. There is also a need to implement commitments, embodied in existing international agreements, related to technology transfer to developing countries. They stated that the transfer of technology should not be restricted on an arbitrary or discriminatory basis, especially to developing countries. Rather, the Ministers stressed that the international community should establish principles and guidelines for the sharing of knowledge and technology for development 36.  The Ministers noted that the information revolution is transforming the conduct of business. The capacities of developing countries to participate effectively in electronic commerce need to be strengthened. There is also need for analyses of the implications of electronic commerce on trade and development prospects for developing countries. The Ministers noted that fiscal, legal and regulatory aspects of electronic commerce should be analysed. 37.  The Ministers welcomed the fact that some developing countries are acquiring new potential by becoming important foreign investors and actors in international trade. Thus, there are greater possibilities for Economic Cooperation between Developing Countries (ECDC) to increase investment and mutual trade, as well as enhance industrial and technological cooperation. ECDC at the regional, sub regional and interregional levels is important for linking the economies of

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developing countries into viable economic spaces necessary for stimulating dynamic trade and investment growth. They welcomed the successful conclusions of the second round of negotiations on the Global System of Trade Preferences among Developing Countries (GSTP) and invited participating countries to join efforts in deepening, speeding up and expanding the GSTP to enhance its impact and to examine possible ways of rationalizing the process of negotiations for third round.

Financing for Development 38.  The Ministers underlined the crucial importance of financing to the success of the development process. They called for a new global partnership to be entered into at the highest level in order to place the financing for development on a sound and predictable footing. They expressed their appreciation for the outcome of the deliberations of the Ad Hoc Open-ended Working Group of the General Assembly on Financing for Development, which they considered as a valuable input toward the building of such a partnership. The Ministers urged a strong commitment by the international community to mobilizing adequate resources to facilitate sustained economic growth in developing countries. In this regard, they stressed the need for convening a high-level international conference on financing for development in the year 2001 in order to give effect to these objectives. The Ministers therefore called upon the international community to expedite the process of preparation of the Conference, particularly as regards its scope, agenda, format and modalities. They stressed that the agenda of the Conference should allow for a holistic and integrated coverage of all issues relevant to financing for development. They decided that the Group of 77 should actively pursue a collective and coordinated position on this matter in close cooperation with the Group of 24.

ODA and External Debt of Developing Countries 39.  The Ministers noted that developing countries continue to make strenuous efforts to mobilize domestic resources for development. They however underscored that such efforts need to be supplemented by external resources in order to effectively address their development requirements. The Ministers expressed concern at the erosion of development cooperation and underlined the need to reinvigorate it in order to address the new requirements of developing countries in the context of the new phenomenon of globalisation and liberalization. In this context, they noted the close linkage between the prosperity of developing and developed countries and the potential of developing countries as locomotives of growth. They urged developed countries to make the necessary investments including the mobilization of new and additional financial resources for the realization of this potential. 40.  The Ministers also noted with concern the continued and significant decline of ODA in recent years, which reached a low of 0.22 per cent of GNP, representing less than one third of 0.7 UN target. They reiterated the urgent need for a substantial increase of official development assistance (ODA). In this regard, they strongly urged compliance with internationally agreed ODA targets and with commitments for new and additional resources. In particular, they urged the developed countries to provide 0.7 per cent of their GNP to developing countries by the year 2000 as per commitments reflected in Agenda 21 as well as 0.15 per cent for the least developed countries in accordance with the Paris Declaration and the Programme of Action adopted in September 1990. 41. The Ministers expressed regret that despite several initiatives undertaken over the past decade by the international community, the debt crisis persists as one of the main constraints for the development of developing countries, including the least developed countries, and for those at the lower, lower-middle and middle-income levels. They reiterated the urgent need for the

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international community, particularly the donor countries and international financial institutions to adopt an effective, comprehensive and equitable, once-and-for-all development-oriented and durable solution to the debt problem of the developing countries, including debt reduction and increased concessional financial flows for all developing countries. At the same time, they stressed that structural adjustment policies must not divert resources away from social priorities in debtor countries. 42.  The Ministers welcomed the recent decision of the seven most industrialized countries (G7) to improve the Heavily Indebted Poor Countries (HIPC) initiative and to grant additional debt relief. They called for more concerted efforts to achieve rapid progress towards faster and deeper debt relief through flexible implementation of eligibility criteria and increased contributions to the HIPC trust fund, and other viable and effective modalities for its funding, as well as for other measures to ensure a permanent exit from unsustainable debt burden of developing countries. 43. While noting the latest initiatives to find a solution for the indebtedness of the Highly Indebted Poor Countries (HIPC), the Ministers underlined the need for a durable solution of the external debt problems of the middle-income developing countries which were seriously crippling their efforts for sustained economic growth and sustainable development. They emphasized the important role such countries play in the global economy. and called for debt reduction policy arrangements for these countries to speed up the release of the financial resources for development. The Ministers further called for intensification of measures on the conversion of external debt of the middle-income developing countries to promote development investments in accordance with the priorities and needs of those countries.

Microcredit 44. The Ministers reiterated their support for the global campaign launched by the 1997 Microcredit Summit to reach 100  million of the world’s poorest families, especially for the women of those families with credit for self-employment, and other financial and business services, by the year 2005. They welcomed the holding of the Meeting of Councils in Abidjan, Cote d’Ivoire on June 24 to 26, 1999. They noted the favourable impact of microcredit in promoting the eradication of poverty in countries where it is being implemented. The Ministers also recognised its role in the empowerment of women and its positive impact on poor families and reiterated the call for increased funding of this valuable initiative.

Follow-up of the United Nations major conferences and summits 45.  The Ministers stressed the critical importance of effective follow up to landmark UN conferences held since 1990 to ensure that the commitments, recommendations and measures agreed to at these conferences are implemented as soon as possible. They noted the significant achievements made by developing countries in honouring their commitments. However, they expressed concern that the efforts of developing countries to fully implement their commitments are hampered by the lack of provision of sufficient and necessary external resources. This was further compounded by the impact of the recent South East Asian financial and economic crisis, which has global implications. 46.  At the same time, the Ministers noted with grave concern the lack of political will on the part of the international donor community to implement their conference commitments. They urged developed countries to fulfil their commitments for the full implementation and follow-up of decisions, recommendations and targets set forth in the Programmes of Action and relevant documents adopted at the major United Nations Conferences and Summits held in this decade. They called for enhanced efforts on the part of the developed countries to provide concrete assistance for poverty eradication in accordance with the outcomes of the conferences and summits. They

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also cautioned against attempts to selectively implement the outcomes of the conferences and summits, thereby excluding the international community’s obligations in areas such as providing greater market access, easing the debt burden, and promoting financial flows, and technology transfers. 47.  The Ministers called for the establishment of effective financing mechanisms to mobilize international resources to assist developing countries in implementing their commitments undertaken within the programmes of action adopted at the major United Nations Conferences and Summits. 48.  The Ministers underlined the necessity for early substantive preparations for the five-year review of the implementation of the United Nations Conference on Human Settlements (Habitat II), with a view to attaining meaningful results. In particular, they looked forward to progress in the implementation of commitments in regard to the means of implementation. The Ministers expressed the hope that preparation for the review would identify the challenges and constraints in meeting such commitments and evolve mechanisms to address them.

Environment and Development 49.  The Ministers reiterated the urgency of accelerating the comprehensive implementation of Agenda 21. They further emphasized the importance of ensuring that all global environmental measures and programmes are based on international dialogue and/or consensus and should not constitute a means of arbitrary or unjustifiable barriers or a disguised restriction that may inhibit economic growth. In this regard, they stressed that such implementation should not contradict the right of the developing countries to benefit fully from the utilization of their resources that are vital for sustained economic growth and sustainable development. The Ministers called on the developed countries to fulfil all their commitments contained in Agenda 21, which require them to halt their own destructive impact on the global environment while assisting the developing countries in combating environmental threats by providing new and additional financial resources and by the transfer of technology. In this context, they reaffirmed the principle of common but differentiated responsibilities. 50.  The Ministers stressed that the development and transfer of environmentally sound technologies are essential components of a successful strategy for sustainable development. Therefore, it is important to emphasize that effective modalities be agreed upon for the creation, development, favourable access to and transfer of environmentally sound technologies to developing countries on favourable terms, including concessional, preferential and grant terms. These arrangements should include the establishment in developing countries of international, regional and sub regional technology centres, and the dissemination of information on existing environmentally sound technologies. 51. In the context of the implementation of the Convention to Combat Desertification, the Ministers noted that the efforts to prevent and control desertification remain insufficient. They expressed concern about the lack of financial resources and the incomplete functioning of the Global Mechanism. They called upon the international community, in particular donor countries and the international development cooperation system to provide technical scientific and financial support for the implementation of the Convention. The Ministers welcomed the Third Conference of the Parties of the Convention to Combat Desertification to be held in Brazil next November in order to address ways and means for the full implementation of the Convention. 52.  The Ministers stressed the urgent need for the international community to address the issue of natural disaster prevention and to adopt adequate measures for disaster reduction as an integral component of sustainable development strategies and policies at all levels. In this context, they urged continued and full implementation of General Assembly resolutions 52/200 and

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53/185 and Economic and Social Council resolution 1999/46 on international cooperation to reduce the impact of the El Niño phenomenon as an integral part of successor arrangements to the International Decade for Natural Disaster Reduction. 53.  The Ministers welcomed the Kyoto Protocol on legally binding commitments for the Parties to the Framework Convention on Climate Change to reduce their emission of Greenhouse Gases as contained in Annex-B of the Kyoto Protocol. They urged developed countries to undertake urgent and effective steps to implement these commitments including domestic action. Emission trading for implementation of such commitments can only commence after issues relating to the principles, modalities etc. of such trading, including the initial allocation of emission entitlement on an equitable basis to all countries has been agreed upon by the Parties to the Framework Convention on Climate Change. The Ministers categorically reject all attempts by some developed countries to link their ratification of the Kyoto Protocol with the question of participation by developing countries in the reduction of Greenhouse Gases emissions. The Ministers also called for immediate measures to provide the developing countries with necessary financial resources and clean technology to enable them to meet their existing commitments under the Framework convention on Climate change, including inter-alia, inventorization of national emissions and dissemination of knowledge of climate change. The ministers also urged developed countries to avoid misuses of the ‘flexibility mechanisms’ envisaged in the Kyoto Protocol to evade, inter- alia, domestic commitments to reduce greenhouse gas emissions. 54.  The Ministers acknowledged that the depletion of the ozone layer poses a serious threat to the whole world. They urged the Parties to the Protocol to comply with the requirements and to phase out the production and consumption of regulated ozone depleting substances (ODS’s) in accordance with the phase out schedules agreed to by countries in terms of the Protocol. The Ministers also urged Parties to the Protocol to comply with its requirements, including those relating to the phasing out of the consumption of regulated ozone depleting substances, and assistance to affected producers in developing countries. 55.  The Ministers noted the need for full implementation of the provisions of the Convention on Biological Diversity. In this context, they looked forward to the early and successful conclusion of the negotiations on a Biosafety Protocol. 56.  The Ministers recognized the important work of the Intergovernmental Forum on Forests, the successor to the Intergovernmental Panel on Forests, in advancing the Forest Principles and took note of the outcome of IFF III, held in Geneva in May 1999. In this regard, the Ministers called for a successful round of negotiations at the final session of the IFF in February 2000. The Ministers called upon the developed countries to implement their commitments particularly as set out in Chapters 33 and 34 of Agenda 21 in the context of IPF and IFF, and to continue to support policy deliberations and concrete actions building upon the forest principles adopted in Rio. 57.  The Ministers underscored the need for early substantive preparations for the 10-year review of the implementation of the outcome of the UN Conference on Environment and Development with a view to attaining meaningful results. Specifically, they noted the lack of progress in implementation of commitments at the international level, particularly in areas such as enhanced concessional financial resources and transfer of environmentally sound technology on concessional terms, which was evident at the Rio+5 in 1997 and expressed the hope that preparations for the 10 year review would focus on identifying challenges and constraints in meeting such commitments and evolve mechanisms and measures to remedy this.

Habitat and UNEP 58.  The Ministers noted with satisfaction the adoption by the General Assembly of resolution 53/242 on the ‘Report of the Secretary-General on Environment and Human Settlements’ and

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underlined its importance to the process of reform and rejuvenation of the United Nations in these areas, with particular reference to the roles of the United Nations Environment Programme (UNEP) and the United Nations Centre for Human Settlements, UNCHS (Habitat). They therefore called for an effective and speedy implementation of the resolution with a view, inter alia, to enhancing the role, capacities, effectiveness and efficiency of these institutions. 59.  The Ministers expressed their concern over the declining funding resources for UNEP and Habitat and urged developed countries to support both institutions with adequate, stable and predictable financial resources to enable them to carry out their mandated activities.

Development and International Economic Cooperation 60.  The Ministers expressed the urgent need for certain developed countries to immediately eliminate laws and regulations with adverse extra-territorial impacts and other forms of coercive economic measures including unilateral sanctions against developing countries. They emphasized that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, inter-alia sovereign equality of States, non-intervention and noninterference in their internal affairs, but also severely menace the freedom of trade and investment, which are also spelled out in many international legal instruments, including the principles establishing the World Trade Organization. 61.  The Ministers also expressed their grave concern over the impact of economic sanctions on the civilian population and development capacity in targeted countries and therefore urged the international community to exhaust all peaceful methods before resorting to sanctions, which should only be considered as a last resort. If necessary these sanctions must be established only in strict conformity with the Charter of the United Nations with clear objectives, clear time frame, provision for regular review, precise conditions for their lifting and never be used as a form of punishment or otherwise exact retribution. 62.  The Ministers recalled paragraph 179 of the Final Document of the Twelfth Summit of the Non-Aligned Movement in Durban, South Africa, in which deep concern was expressed over the air attack against El-Shifa pharmaceutical factory in the Sudan on 20 August 1998. They recognised that such an act has had a negative impact on the economic and social development of the concerned country and expressed their continued solidarity and support of its demand for a just and fair consideration of the matter in accordance with the Charter of the United Nations and International Law.

Science and Technology 63.  The Ministers stressed the importance to developing countries of access to science and technology in order to promote their economic growth and sustainable development. They therefore underscored the need for developing countries to participate in, benefit from, and contribute to, the rapid advances in science and technology. The Ministers called upon the international community to help developing countries strengthen and develop their endogenous capacities and capabilities in science and technology, including in the area of environmentally sound technologies and new and emerging technologies. In this context they stressed the need to strengthen the work of the ECOSOC Commission of Science and Technology for Development, including through review of its working methods, as well as to enhance its contributions to the efforts of developing countries in this area. 64.  The Ministers also urged the removal of all barriers on access to technology and stressed that the transfer of technology is a commitment made by the governments of developed countries in various fora, and thus should not be left solely in the hands of the private sector or based on market prices, but should enhance the productivity and competitiveness of the developing

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countries in the world market as well as improve the quality of life, health and the environment. They further called for the establishment of national technology information centres in developing countries and for strengthening their networking on regional and global levels to promote technology research, development and dissemination among developing countries. In this context, they stressed the importance of considering ways and means of further promoting science and technology development and coordination in and among developing countries.

Industrialization 65.  The Ministers reaffirmed the continued urgency of promoting industrialization as a dynamic instrument for the acceleration of economic and social development and as a key contributor to the eradication of poverty and the creation of productive employment in the developing countries. The Ministers called upon the international community including the relevant organizations and bodies of the United Nations and in particular UNIDO to support the implementation of the Programme for the Second Industrial Development Decade for Africa so as to enable African countries to promote industrialization. 66.  The Ministers strongly supported the key role of UNIDO in promoting sustainable industrial development and the transfer of environmentally sound technologies to developing countries and in supporting their efforts to promote sustainable development. They welcomed the efforts of UNIDO to decentralize its activities to provide more effective support to development. They called upon all member states to renew and strengthen their political and financial support to the Organization to enable it to carry out its new mandate. In this regard, the Ministers urged the Government of the United States of America to honour its obligations to UNIDO by effecting prompt and full payment of its outstanding assessed contributions to the Organization.

Operational activities for Development 67.  The Ministers underscored the importance of the role of the United Nations in Operational Activities for Development. They called on all developing countries to effectively participate in the work of Executive Boards of the United Nations Funds and Programmes. They stressed the need to ensure that the funding for operational activities for development is placed on a predictable assured, and continued basis, commensurate with the increasing needs of developing countries. They noted with regret that despite the introduction of multiple reform measures, including the Multi-Year Funding Frameworks the financial situation of core resources of the Funds and Programmes remained unstable and precarious. They noted with appreciation the contribution of a number of developing countries to core resources of Funds and Programmes that demonstrated their faith and commitment to the work of these bodies. They called on traditional donor countries to increase substantially their contributions to these core resources in order to immediately meet the objectives set. They reiterated that the reforms of the United Nations, and decisions taken by the UN Funds and Programmes, including in the context of funding strategies, must safeguard the essential characteristics of UN operational activities, which are universality, neutrality, multilateralism, voluntary and grant nature, and responding to the needs of developing countries in a flexible manner. In this context, the ministers reiterated the role of national governments in establishing the priorities in their respective countries as well as their central coordinating role. While noting the efforts of the Funds and Programmes to generate increased resources, they stressed that such resources can only complement the resources provided by donor countries. Furthermore, such resources should be provided in accordance with the priorities agreed to at the Boards. and should not in any manner distort the priorities of the UN operational agencies, funds and programmes. 68.  The Ministers called on agencies, funds and programmes to take effective steps to fully utilize the South-South cooperation modality within their programmes of assistance. Furthermore,

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they urged them to increase the procurement of goods and services from the developing countries.

Humanitarian Assistance 69.  The Ministers stressed the need to maintain clear distinctions between humanitarian assistance and other activities of the United Nations. They rejected the so-called right of humanitarian intervention, which had no basis in the UN Charter or in international law. 70. The Ministers stressed the need for scrupulously respecting the Guiding Principles of Humanitarian Assistance outlined in the Annex to General Assembly resolution 46/182. They emphasized that these principles are valid, time-tested and must continue to be fully observed. They noted that the response of international community to humanitarian emergencies was neither sufficient nor geographically balanced. They called on the developed countries to provide adequate resources for humanitarian assistance and eschew political considerations in the provision of such assistance. They also stressed the need for humanitarian assistance to be additional to development assistance. 71.  The Ministers urged the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) to effectively develop and utilize the capacities existing in developing countries, which are available closer to the site of a disaster and often at a lower cost. 72.  The Ministers took note of the 1999 Agreed Conclusions of ECOSOC on Special Economic, Humanitarian and Relief Assistance, and called for effective and speedy implementation of the measures outlined therein to address the transition phase which follows natural disasters and complex humanitarian emergencies in the context of transition from relief to rehabilitation, reconstruction and development of the countries affected.

The Financial Situation, Administrative and Budgetary Issues of the United Nations 73.  The Ministers reaffirmed the legal obligation of Member States to bear the expenses of the Organisation in accordance with the Charter of the United Nations and the requirements to pay their assessed contributions in full and on time and without conditions. While recognizing the need to extend sympathetic understanding to those that are temporarily unable to meet their financial obligations as a consequence of genuine economic difficulties, the Ministers urged all others, in particular the major contributor, to pay their assessed contributions unconditionally, in full and on time. 74.  The Ministers reiterated their deep concern over the difficult and chronic financial situation of the Organisation and reaffirmed that the primary cause of the financial difficulty continues to be the failure on the part of certain developed countries, in particular the major contributor, to pay their assessed contributions to the regular budget and peacekeeping budgets in full, on time and without conditions. 75.  The Ministers reaffirmed that the principle of the ‘capacity to pay’ is the fundamental criterion in the apportionment of the expenses of the United Nations. The Ministers further stressed that the developing countries should not be assessed at a rate higher than the capacity to pay as a result of any adjustments in the scale. 76.  The Ministers also reaffirmed that the principles contained in the special scale of assessments established in resolutions 1874 (S-IV) of 27 June 1963 and 3101 (XXVIII) of 11 December 1973 and 43/232 of 1 March 1989 for the apportionment of the costs of peacekeeping operations must be adopted on a permanent basis. In this regard, they stressed that the scale for financing these operations must clearly reflect the special responsibilities of the permanent members of the Security Council and economic situation faced by other countries or groups of countries,

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particularly the developing countries. In this context, the Ministers further stressed that the establishment of a ceiling and a floor for the Permanent Members of the Security Council is totally unacceptable. Furthermore, the Ministers recalled that the economically less developed countries have limited capacity to contribute towards the budgets of peacekeeping operations. 77.  The Ministers expressed concern that due to the continuing cash flow deficit in the regular budget, internal cross borrowing from the peacekeeping budgets had to be resorted to in order to finance the regular budget expenses. This practice continues to put undue financial difficulties on the developing countries that provide troops and equipment. The developing countries that contribute troops and equipment continue to subsidize the Organisation through the late and irregular reimbursement of their financial dues. This extraordinary practice cannot be allowed to continue indefinitely. The Ministers also express concern at the late and irregular reimbursement to developing countries that provide troops and equipment to various peacekeeping operations, which is due to the nonpayment of assessed contributions by some Member States. 78.  The Ministers underscored that there shall not be any ceiling on the budget of the United Nations and that resources proposed by the Secretary-General should be commensurate with all mandated programmes and activities in order to ensure their full implementation. In this context, the Ministers expressed concern on the decrease in the Secretary-General’s budget proposal for the biennium 2000–2001 in relation to the budget outline approved by the General Assembly in its resolution 53/206, which was a result of a very delicate balance among all Member States. They stressed the need to carefully review the budget proposal in the light of the approved budget outline taking into account all the legislative mandates approved for the biennium 2000–2001. 79.  The Ministers underlined that the budget proposals should be submitted in accordance with the budgetary procedure established in resolution 41/213 and the regulations and rules of the Organisation. They reaffirmed that the priorities established by Member States in the medium-term plan, in particular those relating to development activities, should be fully respected and implemented. 80.  The Ministers emphasized the need for early conclusion of the negotiations on the modalities for the Development Account. They reiterated that the funds available in the Development Account should be utilized for the sole purpose of enhancing the activities of the United Nations for sustained economic growth and sustainable development, based on the programmes approved in the medium-term plan. The Ministers underlined that the Development Account is a part of the regular budget and should, therefore, be governed by the medium-term plan, regulations and rules of the Organisation and established budgetary practice. They further underscored that the implementation of the Development Account should not result in the reduction neither of the overall of resources of the programme budget nor of the staff level. 81.  The Ministers reiterated that the proposal on time limits for new initiatives would have far reaching implications for the United Nations and the Member States. In this regard, they stressed the need for an in-depth examination of the proposal by the Committee for Programme and Coordination, the Advisory Committee on Administrative and Budgetary Questions and the Fifth Committee, in all its aspects, before its consideration and action by the General Assembly. 82.  Regarding the reform proposal on results-based budgeting, the Ministers noted this proposal would lead to a radical departure from current programme planning and budgetary practices and procedures which have been repeatedly reaffirmed by the General Assembly. They stressed the need for thorough consideration, by the Advisory Committee on Administrative and Budgetary Questions and the Fifth Committee, of the more detailed report that the Secretary-General was requested to submit on this proposal. Therefore, no action should be taken by the Secretariat to implement results-based budgeting until the General Assembly decides on the appropriate action on this matter. 83.  The Ministers expressed concern at the negligible share of the developing countries in the United Nations system of procurement. They emphasized that the United Nations procurement

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should be on as wide a geographical basis as possible with preferential treatment for the developing countries. The Ministers further underlined that the United Nations supplier roster should be representative of the membership of the Organisation. 84.  The Ministers reaffirmed that all mandated programmes and activities of the United Nations should be performed by international civil servants in accordance with articles 100 and 101 of the United Nations Charter. They emphasized that all gratis personnel should be completely phased out in accordance with the relevant General Assembly resolutions. 85.  The Ministers underscored the importance of the United Nations Office at Nairobi, as the only United Nations Centre in the developing world. They stated that as a matter of principle, the United Nations Office at Nairobi should have the same status as United Nations Offices at Geneva and Vienna. In this regard, they expressed concern at the low number of meetings held at the United Nations Office at Nairobi and emphasized the need for the establishment of a permanent interpretation service at that Office.

Critical Economic Situation in Africa 86.  The Ministers reiterated their profound concern at the persistent critical economic situation in Africa. They were convinced that, if not reversed, current trends could considerably worsen the situation, thus endangering the economic and social conditions of African countries and hampering the prospects for their rehabilitation and development. They urged the international community, particularly the developed countries and the United Nations system, to adopt and implement concrete and effective measures to support the efforts of the African countries in the process of economic development with due consideration for the specificities of African economies. 87.  The Ministers noted with deep concern the critical conditions of the external debt of African countries and the heavy and unbearable burden of debt-servicing that had led to the paradoxical situation where some African countries are net exporters of capital to the developed countries and international financial institutions. Furthermore, the Ministers noted that the deteriorating prices for primary commodities, insufficient foreign investment and declining flows of official development assistance to the region has adversely affected the ability of African countries to meet their development objectives as well as their other financial obligations. 88.  The Ministers took note of the agreed conclusions of the Coordination Segment of the 1999 substantive session of the Economic and Social Council on: the Development of Africa: implementation and coordinated follow-up by the United Nations system of initiatives on African Development and stressed the importance of establishing a linkage between the discussion and conclusion of the said Coordination Segment and the preparatory work for the Council’s highlevel segment on African development and the final review of the United Nations New Agenda for the Development of Africa in the 1990s (UNNADAF) scheduled before and in the year 2002 respectively. In this regard, they called on the Secretary-General to commission an independent evaluation to identify the achievements and shortcomings encountered in realizing the priorities and targets contained in UNNADAF and recommend future actions, including the consideration of successor arrangements.

Situation in the Middle East 89.  The Ministers noted with interest the recent developments in the region related to the Middle East Peace Process. They also expressed their concern over the persistence of the difficult economic and social situation of the Palestinian people as a result of the continued occupation and

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illegal Israeli policies and actions in the Occupied Palestinian Territory, including Jerusalem, particularly settlement activities, and the closure of the Palestinian Territory. In this context, the Ministers stressed the need to preserve the territorial integrity of all of the Occupied Palestinian Territory, to guarantee the freedom of movement of persons and goods, and to respect the fundamental human rights of the Palestinian people. The Ministers re-emphasised the need for international assistance to support Palestinian development efforts in the economic and social fields, and called on the international donor community to deliver the financial assistance pledges to the Palestinian Authority. 90. The Ministers reaffirmed their support for the Middle East peace process, aimed at achieving a comprehensive, just and lasting peace in the region on the basis of Security Council resolutions 242 (1967), 338 (1973), and 425 (1978) and the principle of land for peace. They further reaffirmed their support to the Palestinian people in their effort to achieve their inalienable rights, including their right to establish an independent state on their national soil, including Jerusalem. In this context the Ministers urgently called for the full and speedy implementation of the agreements reached and for international support to reactivate and complete the peace process from the point where it was stopped at, emphasizing the necessity to respect all agreements, pledges and commitments reached during previous stage of the peace talks. The Ministers expressed their deep concern at the stalled peace process on the Lebanese-Israeli and Syrian-Israeli tracks, and at the persistence of the Israeli occupation of the Palestinian Territory, including Jerusalem, and the other Arab territories, which gravely deteriorate the living conditions of the Arab population under occupation, as well as negatively affect the national efforts to achieve sustained economic growth and sustainable development in the region. They further expressed grave concern over the escalating Israeli policies of building and expanding settlements in the Occupied Palestinian Territory, including Jerusalem and the occupied Syrian Golan, in violation of international law, relevant United Nations resolutions and the Fourth Geneva Convention, of 12 August 1949. The Ministers reaffirmed further the permanent responsibility of the United Nations towards the Question of Palestine, and called upon Israel to comply with all relevant United Nations resolutions and to put an end to its occupation of Palestinian Territory, including Jerusalem, and the other Arab territories including the Syrian Golan and South Lebanon.

Least Developed Countries 91.  The Ministers expressed their deep concern at the deteriorating socio-economic condition of the Least Developed Countries (LDCs) and called for priority action on the many international development commitments towards LDCs, especially those contained in the Paris Declaration and the Programme of Action for LDCs for the 1990s. 92.  In this regard, the Ministers stressed the importance of the Third United Nations Conference on the Least Developed Countries (LDC III) to be held in the year 2001 and urged that every opportunity be used during the preparatory process and at the Conference to give further impetus to the implementation of the commitments in the Programme of Action for LDCs, especially in areas of physical and institutional infrastructure, human resource development, technology and market access. They expressed the conviction that the Conference should result in strong and effective actions and binding global and country-level commitments to end the plight of LDCs and their populations.

Land-Locked and Transit Developing Countries 93.  The Ministers called on the international community to give special attention and support to the special development problems and needs of the land-locked developing countries to enable

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these countries to effectively participate in a rapidly globalising world economy. They also noted that as transit developing countries faced serious economic problems in their efforts at developing a viable transit infrastructure also needed financial and technical support from the international community. In this connection they welcomed the agreed conclusions and recommendations of the Meeting of Intergovernmental Experts from Landlocked and Transit Developing Countries and Representatives of the Donor Countries and Financial and Development Institutions held in New York from 23 to 26 August, 1999 and urged their full implementation. Specifically, they called upon the international community to provide landlocked and transit developing countries with appropriate financial and technical assistance in the form of grants or concessional loans for the construction, maintenance and improvement of their transport, storage and other transit related facilities.

Small Islands Developing States 94.  The Ministers reiterated their concern that the special problems and vulnerabilities of Small Islands Developing States (SIDS), in particular lack of market access and absence of special and differential treatment, which continue to create barriers for these countries to effectively participate in a rapidly globalising world economy. The Ministers expressed concern that, although great efforts have been undertaken by SIDS at the national level, there has not been commensurate support at the international level. They renewed their call for strengthening of efforts at the international level in the implementation and follow-up of the Barbados Programme of Action. The Minister emphasized the urgent need to maximize international support through, inter-alia, strengthening the existing institutional arrangements, mobilizing new, additional and external resources, improving coordination mechanism so as to focus and harmonize support for SIDS priorities.

South-South Cooperation 95.  The Ministers noted that in the past two decades scientific and technical competence has grown in countries of the South to create a significant complementarity between them. They stressed that these circumstances underscored the need for developing countries to work together to overcome their shared vulnerabilities and disadvantages, and to maximize the benefit that could accrue to them from the process of globalisation. The impressive progress made by several developing countries, in one field or another, has opened up new vistas for complementarities in production and trade. Large and growing domestic markets, considerable human and natural resources and the inherent creativity and skills are all part of the enormous potential that could be used by the South to mutual benefit and advantage of all. They underlined that shared developmental concerns made it imperative to address basic needs of our people for food and drinking water, health and sanitation, shelter, education and employment. Sophisticated and advanced technologies now exist to meet these needs in a cost effective manner, and as developed countries are not likely to be interested in these objectives, it was necessary that developing countries should come to their own help. They also stressed their commitment to share the usable knowledge developed in high-technology fields like: biotechnology, computers, information technology, remote sensing, oceanography, food processing and preservation, health, and appropriate housing. At the same time the Ministers recognized the increasingly widening gap in science and technology, between the developed and developing countries and called on the developed countries to implement the commitments undertaken by them, including in the recent cycle of global conferences, to transfer technology on an urgent basis and on concessional terms to developing countries. The Ministers noted the importance of triangular arrangements in the context of South-South cooperation.

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96.  The Ministers recognized the increased relevance and importance of South-South cooperation in the current international economic climate. They therefore reiterated their support for South-South cooperation both as a strategy in support of the development efforts of the developing countries and as a means of enhancing participation of developing countries in the emerging global economy. 97.  The Ministers also emphasized the increasing importance and complementarity of economic and technical cooperation among developing countries as a means of supporting the development efforts of these countries and ensuring their effective participation in the emerging global economic order that is increasingly shaped by the forces of globalisation and economic liberalization. In this regard, they welcomed the outcome of the Eleventh Session of the High-level Committee on the Review of TCDC held in New  York from 1 to 4 June 1999 and urged the Administrator of UNDP to continue to preserve the separate identity of the Special Unit for TCDC and to provide the necessary resources to enable the Unit to carry out its responsibilities and mandates. 98. The Ministers welcomed the outcome of the Conference on Sub-regional and Regional Economic Cooperation held in Bali, Indonesia, in December 1998 and emphasized the need to ensure an effective follow up of the Bali Declaration and Plan of Action as well as the importance of holding sectoral follow-up meetings. They also called on Member States to come forward to offer possible venues for the 10th Session of Intergovernmental Follow-up and Coordination Committee on ECDC/TCDC (IFCC) in the year 2000 and to provide their full support for the implementation of the decisions and recommendations of such follow-up meetings. 99. In view of the important forthcoming WTO Ministerial Meeting to be held in Seattle, Washington (USA) in November 1999, and tenth session of UNCTAD to be held in Bangkok, Thailand, in February 2000, the Ministers agreed on the need to put in place appropriate mechanisms to facilitate the effective and enhanced participation of developing countries in future multilateral trade negotiations, particularly WTO, including inter-alia through enhanced information exchange and policy analysis by utilising the relevant expertise. 100.  The Ministers strongly encouraged developing countries that are in a position to do so, to provide support and contribute generously to organizations and funds that are involved in promoting South-South cooperation, including the United Nations Trust Fund on South-South Cooperation, the Perez-Guerrero Trust Fund, and the Global System of Trade Preferences among Developing Countries (GSTP). 101.  The Ministers reaffirmed that South-South cooperation is an integral element of international cooperation for development as well as an essential basis for collective self-reliance and economic growth and development. They therefore appealed to developing countries to explore actively all opportunities for expanding South-South Cooperation and to examine in-depth how the Caracas Programme of Action (CPA) of the Group of 77 and the Action Programme of Economic Cooperation (APEC) of the Non-Aligned Movement, could complement and reinforce each other. 102.  The Ministers welcomed the generous offer made by the Government of the Republic of Guyana to host, within the context of the preparatory process of the South Summit, a High-level Meeting of eminent personalities to be held in Georgetown from 22 to 23 November 1999, with a view to formulating recommendations for an agenda for the South that may serve as an input to the deliberations of the South Summit. 103.  The Ministers approved the financial statement for 1999 and appealed to the members of the Group of 77 to contribute generously to the ‘ECDC Account’ in order to facilitate the implementation of the Caracas Programme of Action. For those that have not yet contributed, the Ministers made a special appeal for them to do so, and to those who have already contributed an appeal was

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made to increase their contributions to allow the Group to meet the demands of a growing international agenda. 104. The Ministers approved the report of the Fourteenth Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund (PGTF), which was presented in accordance with the guidelines for the utilization of PGTF, and endorsed its recommendations. They expressed satisfaction with the results achieved by PGTF and commended the Chairman’s Fund raising campaign for 1999 with the view to expanding the PGTF resources in accordance with the relevant mandates. 105.  The Ministers commended the Chairmen of the Group of 77 and the Coordinating Bureau of the Non-Aligned Movement for promoting greater coordination among the Group of 77 and the Non-Aligned Movement through the Joint Coordinating Committee (JCC). They stressed that coordination and cooperation between these two groups is essential in order to strengthen and advance the position of the developing countries on various multilateral issues and reaffirmed their commitment to continue such coordination through the JCC. 106.  The Ministers welcomed the submission made by the Chairman of the G-77 to the G-8 meeting held last June in Cologne in which the positions of developing countries on major development issues were conveyed. In this regard, the Ministers stressed the importance that developed countries partners, including the G-8 take fully into account the views and interests of the developing countries in their deliberations and decision-making on global economic issues and invited the Chairman of the Group of 77 to continue conveying promptly such concerns and interests to the G-8. 107.  The Ministers declared their full support for the measures aimed at enhancing coordination and interaction among developing countries through consultations and exchanging of information among the various Chapters on a regular basis as identified in the final Communiqué adopted by the 26th Meeting of the Chairmen/Coordinators of the Group of 77 Chapters held in Geneva on 6–7 April 1999. 108.  The Ministers pledged to continue working together in a more cohesive and harmonious manner with a view to ensuring an effective follow up for the decisions to be taken by the first Group of 77 South Summit. In this regard, the Ministers stressed that the outcome of the Summit will significantly contribute to enabling the Group to effectively advance its interest in the work of the United Nations including through the Millennium Summit. Anticipating the challenges of the next century, the Ministers expressed their commitment to cooperate and further consolidate their unity for the benefit of developing countries. In this spirit, they resolved to continue their concerted efforts to help bring about a more equitable, prosperous and secure world in which all nations, large and small, weak and powerful may share the blessings of peace, development and cooperation. 109. The Ministers expressed their profound gratitude for the exemplary manner in which Guyana has assumed its role as presiding country of the Group of 77 for 1999 and welcomed and pledged their support to the Federal Republic of Nigeria, which will assume the Chairmanship of the Group of 77 for the year 2000.

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24.  Twenty-fourth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 15 September 2000 a.  Ministerial Statement We, the Ministers of Foreign Affairs of the Group of 77 and China convened at the Twenty-fourth Annual Meeting at United Nations Headquarters in New  York on 15 September 2000, 1.  Reaffirm the Declaration of the South Summit. We commit ourselves to the speedy and effective implementation of the Havana Programme of Action and Other Decisions of the Summit. 2.  Commend the government and people of Cuba for hosting the first ever South Summit, in Havana, 10–14 April 2000. We express our profound gratitude for the excellent arrangements that facilitated the success of the Summit. 3.  Deeply commend the inspiring leadership of the Chairman of G-77 in New York and the dedication of the staff of the secretariat in the preparation and organization of the South Summit and commit ourselves to the speedy and effective implementation of the provisions of the Institutional Follow-up of the Programme of Action of the South Summit aiming at upgrading the current structures of the Office of the Chairman of the Group of 77 into a compact Executive Secretariat in New York and urge all members States to generously support the ongoing process by meeting timely their annual financial contributions as agreed in the Havana Programme of Action. 4.  Express appreciation of our Heads of State and Government on the efforts of the five Heads of State and Government to facilitate the implementation of the Other Decisions of the Summit. 5.  Decide to establish an Ad-hoc open-ended Working Group of the Group of 77 to discuss modalities for the implementation and follow-up of the Havana Programme of Action and Other Decisions. The mandate of the Working Group includes preparation of recommendations on the operationalization of all decisions of the Summit as well as on the proposals contained in the present and final versions of the report of the five Heads of State and Government. We request the Working Group to submit its report to the Chairman of the Group of 77 in New  York by February 2001. 6.  Welcome the progress achieved at the First Intergovernmental Preparatory Committee for the Third United Nations Conference on the LDCs held in New  York 24–28 July 2000. We fully endorse the proposal for convening a meeting of the Preparatory Committee to consider the pending issues in addition to the two sessions initially approved by the General Assembly. We urge the international community to take special initiatives for the LDCs, particularly in regard to the eradication of poverty, equitable implementation of the WTO Agreements, capacity building, free access to their exports in the world markets, debt cancellation, increased ODA and incentives for FDI flows to the LDCs. 7.  Reaffirm our commitment to the success of the International Intergovernmental High-Level Event on Financing for Development to be held in 2001. Members of the Group should continue to actively and effectively participate in the proceedings of the Preparatory Committee as well as the regional meetings, and the conference itself with the view to address national, international and systemic issues relating to financing for development in a holistic manner. We also call for the active participation of all stakeholders in the said conference with a view to ensuring enhanced financing for development, as well as to make international financial system development-oriented, including through broad-based participation of developing countries.

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8.  Emphasize the importance of the five-year review of the Habitat Agenda to be held in June 2001. We will endeavour to enhance coordination among members of the Group with a view to presenting a unified position in the preparatory process and the special session. 9.  Stress our commitment to the success of the 2001 Special Session of the General Assembly on the Ten-year review of the implementation of the Programme of Action of the World Summit for Children. The Group should participate fully in the process and Special Session with a view to improving the lives of children in developing countries. 10.  Reiterate the importance of the World Conference against Racism, Racial Discrimination, Xenophobia and Related Intolerance to be held in South Africa from 31 August to 7 September 2001. We commit ourselves to the success of the preparatory process and the conference, and call on the international community to contribute towards the achievement of the goals of this conference. 11.  Express our deep concern on the spread of HIV/AIDS and other contagious diseases all over the world, particularly in developing countries and sub-Saharan Africa. We welcome the adoption of UNGA resolution A/RES/54/283 which calls for special session of the General Assembly to review and address the problems of HIV/AIDS in a comprehensive manner. We call for the holding of the event at appropriate time taking into account the urgency of addressing this problem and the need to ensure effective and full participation by all countries. 12.  Express concern on the lack of progress on the implementation of principles and commitments of Rio, particularly in areas such as concessional financial resources and transfer of Environmentally Sound Technologies (ESTs) on concessional terms. We emphasize the need that preparation for Rio +10 should focus on identifying challenges and constraints in meeting such commitments, principles and evolving mechanisms and measures to remedy the situation. We stress that the review of Rio +10 should not lead to renegotiation of Agenda 21 but to the identification of areas where further actions are needed and the source of finance to facilitate their implementation. 13.  Call for an intergovernmental process to consider and develop appropriate guidelines and rules of engagement of the private sector with the United Nations system, including the UN Secretary-General’s Global Compact Initiative. 14.  Reiterate our deep concern over the difficult and chronic financial situation of the United Nations, primarily caused by the failure of a few developed countries, in particular the major contributor, to pay their assessed contributions to the regular budget and peacekeeping budgets in full, on time and without conditions. 15.  Reaffirm that the principle of the ‘capacity to pay’ is the fundamental criterion in the apportionment of the expenses of the United Nations, and in this context, stressed that developing countries should not be assessed at a rate higher than their capacity to pay as a result of any adjustments in the scale. 16.  Reiterate that the current principles and guidelines for the apportionment of the expenses of peacekeeping operations approved by the General Assembly should constitute the basis for any discussions on the peacekeeping scale. 17.  Underscore that resources proposed by the Secretary-General for the budget of the United Nations should be commensurate with all mandates programmes and activities in order to ensure their full implementation. 18.  Stress that there should be a balanced allocation of time for all administrative and budgetary issues of the United Nations to be considered during the fifty-fifth session of the General Assembly. 19.  Approve the report of the Fifteenth Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund (PGTF) (Doc. G-77/AM (XII)/2000/2), which was presented in accordance with the

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guidelines for the utilization of PGTF, and endorse its recommendations. We commend the leadership of the Chairman of the Committee of Experts for his continued commitment and express our satisfaction with the results achieved by PGTF. 20.  Approve the financial statement of the ECDC Account of the Group of 77 (Doc. G-77/AM (XII)/2000/3) as presented by the Chairman of the Group of 77. We appeal to all members of the Group of 77 to contribute generously to the ECDC Account in accordance with the decision contained in the Havana Programme of Action adopted by the South Summit held in Havana, Cuba, from 10 to 14 April 2000.

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25.  Twenty-fifth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 16 November 2001 a.  Ministerial Declaration The twenty-fifth Annual Meeting of the Ministers for Foreign Affairs of the Group of 77 was held in New York on 16 November 2001. We, the Ministers, declare our full commitment to the South Summit Declaration and the Havana Programme of Action as the two guiding documents of the South, reflecting the interests and concerns of the developing countries. We also reaffirm our commitment to the Millennium Declaration and call upon the international community and the United Nations system to fully and speedily implement the provisions set out in that Declaration and in other major United Nations conferences and summits and their respective reviews, in particular those related to development and achieving the goal of poverty eradication. We reviewed global developments and the state of international cooperation. We, guided by the principles and purposes of the United Nations Charter and by full respect for the principles of international law, adopted the following declaration:

I.  UPCOMING CONFERENCES AND MEETINGS Financing for Development 1.  We welcome the decision of the United Nations General Assembly to convene the International Conference on Financing for Development at the summit level under the auspices of the United Nations in Monterrey, Mexico, from 18 to 22 March 2002. We appreciate the generous offer of the Government of Mexico to host this Conference and pledge to spare no efforts in working for a successful outcome. 2. We emphasize the importance of all items in the substantive agenda of the International Conference on Financing for Development, namely: mobilizing domestic financial resources for development; mobilizing international resources for development—foreign direct investment and other private flows; trade; increasing international financial cooperation for development through, inter alia, ODA; debt; addressing systemic issues: enhancing the coherence and consistency of the international monetary, financial and trading systems in support of development for the comprehensive international cooperation for financing for development. 3.  We believe that in the process of financing for development the Monterrey Conference represents a unique historical opportunity for forging a broad-based consensus on the reform of the international financial, monetary and trade architecture, with a view to making it more transparent, representative, participatory and supportive of the long-term development of developing countries. Such reform must aim at establishing a favourable environment for promoting accelerated and sustained growth and development, particularly in developing countries and for the equitable and effective participation of developing countries and their institutions in the governance of the global economic, financial, monetary and trade system. In this context, we welcome the active involvement of the World Bank, the International Monetary Fund and the World Trade Organization as partners as well as the civil society and business sector with the United Nations in the financing for development process. We look forward to their continued collaborative involvement in the lead-up to the Conference and the implementation of its outcome.

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4.  We further urge that decisive actions be undertaken by the international community to support the development of developing countries in accordance with their national plans and programmes including through strengthened partnership between the North and the South. In this regard, we call for action to expand initiatives to support countries in their efforts to attract foreign investment. We call for action to address trade concerns of developing countries, including substantially improved market access and the removal of tariff and non-tariff barriers including subsidies by developed countries in areas of export interest to developing countries such as the agricultural sector as well as textile and clothing, taking into account the interest of the net-food importing countries. We also call for action to find a lasting solution to the external debt of developing countries, including through debt reduction arrangements for middle-income developing countries and the speedy and full implementation of the HIPC-II initiative and reverse the decline of ODA, to reach the internationally agreed set target of 0.7 per cent of GNP and the 0.15–0.20 per cent target for LDCs, in addition to new and additional resources.

World Summit on Sustainable Development (Rio +10) 5.  We reiterate the urgency of accelerating the comprehensive implementation of Agenda 21, and therefore, attach a great importance to the preparation of the World Summit on Sustainable Development, to be held in Johannesburg, South Africa, in 2002 and its preparatory process. We consider that this Summit should provide the international community with a unique and exceptional opportunity for sober reflection and objective stocktaking. We reiterate that the comprehensive review of the implementation of Agenda 21 should focus on the identification of areas where further efforts are needed to implement Agenda 21 and other outcomes of the United Nations Conference on Environment and Development, and taking action-oriented decisions in those areas. We firmly believe that this Summit should aim at the removal of the obstacles impeding the implementation of Rio commitments and provide, in particular, the developing world with adequate financial and technological support. 6.  We underline that the Summit, including its preparatory process, should ensure a balance between economic development, social development and environmental protection, as these are interdependent and mutually reinforcing components of sustainable development. 7.  We also express the hope that the Johannesburg Summit should achieve a renewed political commitment and support from the international community for the full implementation of the provisions of the Agenda 21, the Rio principles and all the international agreements emanating from it. The Summit should set concrete measures and specific timetable for the implementation of Agenda 21, particularly as far as the means of implementation are concerned. In this regard, we stress the urgent need to achieve substantive progress in areas of priority to the developing world, most notably, provision of requisite financial resources, technology transfer and capacity building. We reiterate the importance of the principle of common but differentiated responsibilities enshrined in Agenda 21 as well as other subsequent instruments and affirm that it should continue to be the guiding principle and framework for the full implementation of Agenda 21 and all outcomes of WSSD. 8.  We welcome the recommendation report of the IFCC-X meeting in Tehran to organize a coordination meeting of the Group of 77 and China at the ministerial level on WSSD in 2002, to precede the meeting of the Preparatory Committee at the ministerial level to be held in Indonesia in 2002.

United Nations Forum on Forests 9.  We are committed to actively participating in the first Ministerial Meeting during the second session of the United Nations Forum on Forests (UNFF) to be held in San Jose, Costa Rica in

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March 2002. We reiterate our commitment to the UNFF process and to the implementation of the Programme of Action and Multi-year Programme of Work (MYPOW). We urge the international community to strengthen its commitment to this process by providing adequate financial resources, facilitating the transfer of environmentally sound technologies and increasing capacity-building programmes to all developing countries, in order to effectively implement the programme of action and the MYPOW.

World Food Summit 10.  We express our strong concern with the level of food insecurity and under-nutrition affecting a vast proportion of populations in numerous developing countries, and the slow progress towards halving the number of hungry people by the year 2015 as agreed at the 1996 World Food Summit and reaffirmed by the Millennium Declaration of 2000. We welcome the establishment of a Trust Fund in FAO, which will serve as a catalyst for enhancing food production and improving access to food in developing countries. We call on the international community to contribute generously to the Trust Fund. 11.  We express our strong support to FAO regarding the World Food Summit: five years later to be held in June 2002. We express hope that the outcome will be positive and results-oriented and that adequate resources will be made available to ensure an effective implementation of the decisions adopted at that meeting. We call on the Heads of State and Government to participate in the World Food Summit: five years later.

International Ministerial Meeting of Land-locked and Transit Developing Countries and Donor Countries and Financial and Developmental Institutions on Transit Transport Cooperation 12.  We fully support the recommendation adopted at the Fifth Meeting of Governmental Experts of Land-locked and Transit Developing Countries and Representatives of Donor Countries and Financial and Developmental institutions held in New York from 30 July to 3 August 2001, to convene in 2003 in Kazakhstan an International Ministerial Meeting of Land-locked and Transit Developing Countries and Donor Countries and Financial and Developmental Institutions on Transit Transport Cooperation in order to give emphasis to the development of efficient transit transport system.

World Summit on Information Society 13.  We consider ICT as one of the key tools to the development of the developing countries. We stress vigorously the need to promote access to and transfer of knowledge and technology to developing countries, including information technology. We also emphasize the required resources to narrow the technology gap and the widening digital divide between the North and the South. In this context, we welcome the convening of the World Summit on the Information Society in two phases, the first in Geneva in 2003 and the second in Tunis in 2005 and encourage participation at the intergovernmental preparatory process of the Summit, and attendance at the Summit at the highest possible level. We invite all Governments to actively participate in the preparatory process of the Summit.

Second World Assembly on Ageing, Spain, April 2002 14. We welcome the convening of the Second World Assembly on Ageing to be held in Madrid, Spain in April 2002, and assure our commitment to achieve a revised plan of action on ageing in line with the social, cultural, economic and demographic realities of the new

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century, with particular attention to the needs and perspectives of older people in developing countries.

Special session of the General Assembly on Children 15.  We welcome the convening of the special session of the General Assembly on Children, to be held at United Nations Headquarters, in New York, in May 2002, and express our commitment to achieving a successful outcome.

II. RECENTLY HELD UNITED NATIONS AND INTERNATIONAL CONFERENCES Third United Nations Conference on the Least Developed Countries 16.  We recognize that the political will and commitment generated at the global level require to be sustained for providing the basis for a supportive external environment and the consequent successful implementation of economic development programmes in LDCs. We resolve to cooperate among ourselves and with the development partners with this end in view. Effective measures have to be taken for assisting the LDCs in the following priority areas, i.e., building up productive, human and institutional capacities, enhanced market access, increased ODA flows of appropriate quality and FDI flows and effective relief from the crushing debt burden. Measures also need to be taken so that these countries in particular are not marginalized in the digital age. 17.  We considered the Programme of Action for the Least Developed Countries, which was set to start, as of this very year, to proceed with the development of LDCs for the decade 2001–2010. The Programme of Action contains a wide range of measures and actions in various areas, which are modest and achievable. As for the role of developing countries, we declare our readiness, within the framework of South-South cooperation, to advance the objectives of the Programme of Action with a view to accelerating growth and development and eradication of poverty in the LDCs, as well as to work in partnership with all the stakeholders to make globalization work for the LDCs. 18.  We emphasize that the commitments under the Programme of Action need new resources, over and above what is already available and on the table. It is within this framework that we call on the developed countries as well as the United Nations system and other multilateral organizations to undertake what is needed to live up to their commitments. We emphasize the dire need for active intergovernmental follow up and implementation of the agreed decisions and measures.

Habitat 19.  We reaffirm the importance attached by the international community to the Habitat Agenda, the Istanbul Declaration and Declaration on Cities and Other Human Settlements in the New Millennium and reiterate the urgency of accelerating the implementation of the provision of these three instruments. We note the result of the twenty-fifth United Nations General Assembly special session for an overall review and appraisal of the implementation of the Habitat Agenda. 20. We welcome the efforts to achieve the two most important objectives of the Habitat Agenda: ‘adequate shelter for all’ and ‘sustainable human settlements development in an urbanizing world’. We call for more action in order to overcome challenges, particularly with regard to the following objectives: wider and more effective involvement of Habitat partners in the implementation of the Habitat work programmes, especially the private and public sectors; better

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coordination between the UNCHS and other relevant United Nations agencies; active strategy for financial resource mobilization; greater mobility of the Centre to promote more dynamic cooperation, both regional and international; and greater linkages between the normative and operational work of Habitat, leading to pilot projects as necessary.

Twenty-sixth Special Session of the General Assembly on HIV/AIDS 21.  We acknowledge the ‘Declaration of Commitment on HIV/AIDS’ adopted at the twenty-sixth special session of the General Assembly, and note with grave concern that the HIV/AIDS epidemic continues to constitute a global emergency, which undermines social and economic development throughout the world, particularly in developing countries. We emphasize the need to have an urgent, coordinated and sustained global response to address the epidemic through prevention, care, support and treatment. We urge the international community to complement efforts of developing countries through concrete incremental steps in increasing international development assistance, including through contributions to the Global AIDS Fund, commensurate with the magnitude of the problem to reach an overall target of annual expenditure of 7 to 10 billion US dollars at the national and international level to combat HIV/AIDS, and through measures to ensure that needed resources are made available, particularly from donor countries, taking into account the urgency and gravity of the HIV/AIDS epidemic. We reaffirm the right of developing countries to have access to affordable medicine, including anti-retroviral medicine, to combat the epidemic and in this context, emphasize that international rules on intellectual property rights should not prevent developing countries from protecting the health of their populations.

The World Conference against Racism, Racial Discrimination, Xenophobia and Related Intolerance (WCAR) 22.  We welcome the outcome of the World Conference against Racism and Racial Discrimination and call for the realization of its objectives. We also commend the international community for recognizing that slavery, slave trade, including trans-Atlantic slave trade, are crimes against humanity. We recognize that the legacies of slavery, slave trade, colonialism, foreign occupation, genocide and other forms of servitude have manifested themselves in poverty, underdevelopment, marginalization, social exclusion and economic disparities. 23.  We express our commitment to the accelerated implementation of the World Conference against Racism and Racial Discrimination Declaration and Programme of Action, adopted by the World Conference against Racism, Racial Discrimination, Xenophobia and Related Intolerance, in September 2001. In this regard, we reiterate our opposition to all forms of racism, racial discrimination, xenophobia and related intolerance in various parts of the world and express deep concern on the resurgence of contemporary forms of racism, racial discrimination, xenophobia and related intolerance in various parts of the world. We reaffirm that all forms of racism and xenophobia as well as foreign occupation constitute serious violations of human rights, which should be rejected through all political and legal means. We condemn all forms of racism and discrimination spread through the new communications technology, including the Internet.

United Nations Conference on the Illicit Trade in Small Arms and Light Weapons in All Its Aspects 24.  We believe that the problem of the illicit manufacture, transfer and circulation of small arms and light weapons and their excessive accumulation and uncontrolled spread had a wide range of humanitarian and socio-economic consequences and posed a serious threat to peace, security, stability and sustainable development at the national, regional and international levels.

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25.  We welcome the successful conclusion of the United Nations Conference on Illicit Trade in Small Arms and Light Weapons in All Its Aspects and the adoption of the Programme of Action to Prevent, Combat, and Eradicate the Illicit Trade in Small Arms and Light Weapons in All Its Aspects. We call on the States and relevant governmental organizations at the international and regional levels to undertake initiatives to promote the implementation of the Programme of Action.

Seventh Conference of the Parties to the United Nations Framework Convention on Climate Change 26. We note the outcome of the seventh Conference of the Parties to the United Nations Framework Convention on Climate Change held in Marrakech, Morocco, from 29 October to 9 November 2001, which finalized the operational details of the Kyoto Protocol opening the way to widespread ratification by Governments and for the Protocol’s early entry into force. We also welcome the Marrakech Ministerial Declaration as an input to the preparatory process of the World Summit on Sustainable Development, especially as regards the contribution that action on climate change can make to sustainable development and emphasize the importance of providing adequate financial resources, capacity-building, technology innovation and transfer to developing countries and cooperation with the biodiversity and desertification conventions.

Fifth Conference of the Parties to the United Nations Convention to Combat Desertification 27.  We note the outcome of the Fifth Conference of the Parties of the United Nations Convention to Combat Desertification and emphasize its linkage to sustainable development and poverty eradication. We call for urgent action to establish a funding mechanism for the Convention, through opening the GEF to become its financial mechanism during its forthcoming second Assembly to be held in China in October 2002.

WTO Ministerial Meeting 28.  We note the conclusions of the World Trade Organization Ministerial Conference held at Doha from 9 to 14 November 2001 and await a thorough assessment by the Group of its outcome from the perspective of developing countries. 29.  We stress the critical need for an equitable, secure, non-discriminatory and predictable multilateral trading system contributing to the enhancement of trade and development opportunities of developing countries and facilitating an increased share of these countries in international trade. As the focal point with the United Nations for the integrated treatment of trade and development, UNCTAD should continue to examine these issues and to build a consensus for the reformulation of policies and options in this direction.

III. OTHER MAJOR ISSUES AND DEVELOPMENTS 30. We express our grave concern over the tragic and dangerous situation in the occupied Palestinian territory, including Jerusalem, which has gravely deteriorated the economic and social conditions of the Palestinian people, and has negatively affected stability and development in the region as a whole. We call for the immediate and total freeze of settlement activities in the occupied Palestinian territory, including Jerusalem, and in the occupied Syrian Golan, an end to the Israeli siege of Palestinian towns and villages and all other forms of collective punishment, as well as the return to the negotiating table. We reaffirm our support to the Palestinian people in their effort to achieve their inalienable rights, including the right to establish an

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independent State on their national soil, including Jerusalem. We also call for an end to Israeli violations of Lebanese sovereignty and territorial integrity. We reaffirm our support for the Middle East peace process, aimed at achieving a comprehensive, just and lasting peace in the region on the basis of Security Council resolutions 242 (1967) and 338 (1973) and the principle of land for peace. 31.  We firmly reject the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries, and reiterate the urgent need to eliminate them immediately. We emphasize that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. We, therefore, call on the international community neither to recognize these measures nor apply them. 32.  We express our grave concern over the impact of economic sanctions on the civilian population and development capacity in targeted countries and therefore urge the international community to exhaust all peaceful methods before resorting to sanctions, which should only be considered as a last resort. If necessary, these sanctions must be established only in strict conformity with the Charter of the United Nations with clear objectives, clear time frame, provisions for regular review, precise conditions for their lifting and never be used as a form of punishment or otherwise to exact retribution. 33.  We welcome the New Partnership for Africa’s Development (NEPAD) adopted in July 2001 by the 37th Summit of the Organization of African Unity held in Lusaka (Zambia) and express our support to it while calling upon the international community to provide the required help with a view to meeting the objectives contained therein. 34.  We, recalling paragraph 16 of the South Summit Declaration and United Nations General Assembly resolution 55/210 which welcome the proposal to establish a World Solidarity Fund as a mechanism contributing to poverty eradication, and taking note with appreciation of the United Nations Secretary-General’s report on the subject, request the United Nations General Assembly to take the appropriate measures for the operationalization of this Fund. 35.  We emphasize that there is a need to enhance infrastructure development in developing countries, which will spur sustained economic growth. For this purpose, we urge the international community to create a dedicated multilateral mechanism of international financing for the development of infrastructure in developing countries. 36.  We call upon the international community to provide the necessary assistance to landmine clearance operations, as well as to the rehabilitation of the victims and their social and economic integration into the land mine affected countries. We express concern over the residues of the Second World War in particular in the form of landmines, which cause human and material damage and obstruct development plans in some developing countries. We demand that the States responsible for laying the mines outside of their territories assume responsibility for the landmines, cooperate with the affected countries to get rid of them and to contribute defraying the cost of clearance and provide compensation for any ensuing losses and for reclaiming the affected areas for productive purposes.

IV. NORTH-SOUTH DIALOGUE 37.  We reiterate the necessity of international cooperation to strengthen the commitment to multilateralism, while emphasizing effective North-South dialogue aimed at reinvigoration of international development cooperation geared to development and increasing democratization of global economic decision-making structure, as enshrined in the South Summit Declaration and the Havana Programme of Action. In this context we stress the importance of conveying promptly the G-77 concerns and interests to their developed partners by the Chairman of the Group of 77,

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including through meetings of G-8, and request our partners to facilitate such a process, through regular consultations.

V.  SOUTH-SOUTH COOPERATION 38.  We remain fully committed to the spirit of the Group of 77 to act in unity and solidarity, based on cherished principle of consensus, and in a transparent, inclusive and participatory manner. We reaffirm the increased importance of South-South cooperation in the current international economic climate. We therefore reiterate our support for South-South Cooperation both as a strategy in support of the development efforts of the developing countries and as a means of enhancing participation of developing countries in the global economy that is increasingly shaped by the forces of globalization and economic liberalization. 39. We approve the Report of the Tenth Meeting of the Intergovernmental Follow-up and Coordination Committee on ECDC (IFCC-X) (G-77/AM (XIII)2001/2), held in Tehran, from 18 to 22 August 2001, and welcome the Tehran Consensus as the positive outcome of IFCC-X. We commend the Government of the Islamic Republic of Iran for hosting this successful meeting in Tehran, and express our profound gratitude for the excellent arrangements and facilities provided. We also welcome the generous offer of Venezuela to host IFCC-XI in 2003 as agreed in IFCC-X in Tehran. 40.  We also emphasize the increasing importance and complementarities of economic and technical cooperation among developing countries. In this regard, we welcome the outcome of the Twelfth Session of the High-Level Committee on the Review of Technical Cooperation among Developing Countries held in New York from 29 May to 1 June 2001 and urge the Administrator of UNDP to continue to preserve the separate identity of the Special Unit for TCDC and to provide the necessary resources to enable the Unit to carry out its responsibilities and mandates. 41.  We note with appreciation the initiatives and steps already undertaken by the Chairman of the Group of 77 regarding the preparation of the South-South High Level Conference on Science and Technology as well as the High Level Conference on South-South Cooperation to be held in the year of 2003, and invite Member States to generously offer venues for hosting of these important conferences. 42.  We take note of the G-77 Chairman’s report on the Extraordinary Consultative Meeting of the Group of 77 on the activities of the Chamber of Commerce and Industry of Developing Countries (G-77 CCI) held in Tehran on 18 August 2001 on the occasion of IFCC-X and urge the Member States to convey to the Chairman of the Group of 77 as soon as possible their views on the proposed project by the G77 CCI for the establishment of a Trade and Development Bank. 43. We take note of the recommendations and conclusions contained in the Report of the High-level Advisory Group of Eminent Personalities and Intellectuals on Globalization and its Impact on Developing Countries (G-77/AM(XIII)2001/3), held in Geneva from 12 to 14 September 2001. 44.  We reiterate the importance attached by the Group of 77 to the implementation and follow-up of the South Summit outcome. We welcome the progress achieved thus far in this regard in the framework of the Ad-hoc open-ended Working Group of the Group of 77 established by the Twenty-fourth Annual Meeting of Ministers for Foreign Affairs of the Group of 77. We agree that the Ad-hoc open-ended Working Group of the Group of 77 should continue to function as a mechanism of regular reviewing and monitoring of the overall process. We commend the inspiring leadership of the Islamic Republic of Iran as the Chairman of the Group of 77 for the year 2001 in New  York and the dedication of the secretariat as well as the dedication of the G-77 Chapters in implementing the Programme of Activities for the Follow-up and Implementation of the South Summit Outcome in 2001, adopted by the Group of 77 on 9 April 2001.

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45. We approve the Financial Statement of the ECDC Account of the Group of 77 (G-77/ AM(XIII)/2001/5) and urge Member States to continue to provide financial resources as agreed in the Havana Programme of Action in order to strengthen the current structures of the Office of the Chairman of the Group of 77 and invite the Member States to contribute generously to the Special Fund to facilitate the effective implementation of the South Summit outcome. 46.  We approve the report of the Sixteenth Meeting of the Committee of Experts of the PerezGuerrero Trust Fund (PGTF) (G-77/AM(XIII)/2001/4), which was presented in accordance with the guidelines for the utilization of PGTF, and decide to extend from three to four years the term of office of members of the Committee of Experts whose term begins in 2002 and thereafter. We commend the leadership of the Chairman of the Committee of Experts for his continued commitment and express our satisfaction with the results achieved by PGTF. 47.  We express our appreciation to the five heads of State and Government of the implementation group on the conclusion of its work entrusted to them by the South Summit. 48. We request the ad hoc open-ended working group established by the 24th Ministerial Meeting of the Group of 77 on 15 September 2000, to carry out its mandate and to present as soon as possible a report on its work through the Chairman of the Group of 77. 49.  We reiterate our commitment to the implementation of the first-ever South Summit and, with a view to addressing the challenges identified in this Declaration, call for closer consultation and cooperation among all member States as we continue the review of activities and preparation leading to the Second South Summit in 2005.

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26.  Twenty-sixth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 19 September 2002 a.  Ministerial Declaration We, the Ministers of Foreign Affairs of the Group of 77, guided by the principles and purposes of the United Nations Charter and by full respect for the principles of international law, convened at the Twenty-sixth Annual Meeting at the United Nations Headquarters in New  York on 19 September 2002, adopted the following declaration: 1.  We welcome the admission of the Republic of Palau as a full member of the Group of 77. 2.  We pledge to work towards achieving the goals and objectives of the Group of 77 and China and, in this regard, underscore the historic importance of the South Summit held in Havana, Cuba, from 12 to 14 April 2000. We undertake to further mobilize the collective strength and solidarity of developing countries through strengthening South-South cooperation as well as enhancing the Group’s negotiating capacity and its institutional effectiveness at various international fora with the aim, inter alia, of fostering an effective North-South dialogue. 3.  We reaffirm our commitment to the Millennium Declaration and call upon the international community to fully and speedily implement the provisions therein as well as those set out in major United Nations conferences and summits and their respective reviews, particularly those related to the promotion of sustained economic growth, sustainable development and poverty eradication. In this regard, we underscore the need to take concrete and immediate actions to fulfil the commitments and achieve the goals contained in the Doha Ministerial Declaration, the Monterey Consensus and the Johannesburg Plan of Implementation and Declaration on Sustainable Development so as to eradicate poverty, bridge the gap between developed and developing countries, advance sustainable development and promote a fully inclusive and equitable globalization.

I.  Global economic situation 4.  We believe that globalization and the revolution in information and communication technologies present opportunities and challenges for developing countries. While globalization and information and communication technologies have the potential to stimulate economic growth and, if properly managed, could deliver higher living standards to people and improve social well being, we note, however, with great concern, that the economic problems that affect most of our countries constitute the major threat to our future stability and growth. The financial and economic crisis we are presently witnessing is global in its causes and its implications. Its negative impact is being felt most severely by developing economies. This points to the need to improve the international financial, monetary and trade systems in a democratic and transparent way thereby ensuring the greater participation of developing countries. 5.  We are fully aware that the benefits and costs of globalization are unevenly distributed, with developing countries experiencing special difficulties in meeting challenges, including poverty eradication, lack of financial resources and technology, digital divide, financial crisis, exclusion and inequality within and among societies. 6.  We note with grave concern that the international economic environment continues to be unfavourable for the developing world. We also note with concern the widening gap between the developed and developing countries and the continued slowdown and uncertainties of the global economy and its consequences for the South. We, therefore, call for an equitable international

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economic order and for measures to ensure developing countries participate in and benefit from globalization, in particular through their full and effective participation in the process of decision-making aimed at resolving world economic problems. We further call upon the leading industrialized countries to adopt timely and appropriate macro-economic policies and measures to increase economic growth and ensure greater global stability. We also call for a renewal of political will and of the spirit of international partnership in development and for the creation of an enabling international economic environment and the adoption of effective measures in order to support developing countries’ efforts to achieve sustained economic growth, sustainable development and the strengthening of their democratic systems while reaffirming the leading roles of national governments in the development process of each country. 7.  We emphasize that there is a need to enhance infrastructure development in developing countries, which will spur sustained economic growth. For this purpose, we urge the international community to create a dedicated multilateral mechanism of international financing for the development of infrastructure in developing countries.

II. Role of the United Nations 8.  We reaffirm our commitment to the principles and purposes of the United Nations Charter and international law as well as to the strengthening of multilateralism. We reiterate the importance of the United Nations as the central forum for dialogue, negotiations and policy-making on issues relating to development and international economic cooperation. We advocate a stronger United Nations system to effectively contribute to the achievement of the development goals and objectives of developing countries. 9.  We emphasize that the United Nations, the most universal Organization, must play a key role in international economic policy-making and global economic and development issues. We stress the need to further enhance the coordination between the United Nations and the international monetary, financial and trade institutions. We also emphasize that the leading international trade, monetary and financial institutions must take into account the policy framework adopted by the United Nations and should ensure that their policies are in conformity with the developmental objectives of developing countries. We emphasize the need for trade, monetary and financial institutions to be reformed so as to make them more responsive to the needs and concerns of developing countries. 10.  We declare our firm resolve and commitment to strengthening the role of the United Nations in the promotion of peace, security and development. In this regard, the right to development, a basic human right, should be given utmost priority.

III. Follow-up of the United Nations major conferences and summits 11.  We stress the critical importance of follow-up to United Nations major conferences and summits held since 1990 to ensure that the commitments, recommendations and measures agreed to at these conferences are implemented as soon as possible. We note the significant achievements made by developing countries in honouring their commitments. However, we express concern that the efforts of developing countries to fully implement their commitments are hampered by the lack of provision of new and additional financial resources, transfer of technology and capacity building. 12. We welcome the outcome of the World Summit for Sustainable Development held in Johannesburg, South Africa, from 26 August to 4 September 2002, and call for its expeditious and balanced implementation. We welcome the reaffirmation by the international community, through the Johannesburg Plan of Implementation and the Declaration on Sustainable

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Development, of the importance of economic development, social development and environmental protection as interdependent and mutually reinforcing pillars of sustainable development. We emphasize that poverty eradication, changing consumption and production patterns and the protection of the natural resource base remain the key requirements for the achievement of sustainable development. We underscore that the implementation of sustainable development as envisioned in Agenda 21 and the outcomes of the Summit will require strengthened institutional mechanisms, enhanced cooperation between developed and developing countries and strong political commitment by the international community. We therefore urge developed countries and relevant major groups to fulfil their commitment to the full implementation of the Summit outcomes and to the fulfillment of the targets and goals set. 13.  We, while welcoming with great satisfaction the decision of the World Summit for Sustainable Development to establish the World Solidarity Fund to contribute to the eradication of poverty and the promotion of human and social development in the developing countries, urge the General Assembly at its fifty-seventh session to finalize the modalities for the operationalization of the Fund bearing in mind the role of Governments as well as civil society and the private sector in mobilizing resources for the Fund’s programmes and activities. 14. We emphasize the need for the full implementation of the outcome of the World Food Summit: Five Years Later” held in Rome in June 2002, in the context of the achievement of the Millennium Development Goals of halving, by the year 2015, the proportion of people who suffer from hunger and in efforts to eradicate poverty. 15.  We acknowledge the special needs of Small Island developing States in the context of sustainable development. We therefore endorse the decision to undertake a full and comprehensive review of the implementation of the Barbados Programme of Action for the sustainable development of Small Island developing States in 2004 in accordance with the Johannesburg Plan of Implementation. 16.  We reiterate the need to address the special needs and problems of the Landlocked Developing Countries. In this context, welcome the decision by the General Assembly contained in its resolution 56/180 to convene an International Ministerial Meeting of Landlocked and Transit Developing Countries and Donor Countries and Financial and Development Institutions on Transit Transport Cooperation in 2003 and fully support its effective preparation and organization. 17.  We welcome the outcome of the World Conference against Racism, Racial Discrimination, Xenophobia and related intolerance, held in Durban, South Africa, in September 2001 and call for the implementation of its objectives. We commend the international community for recognizing that slavery and slave trade, colonialism, foreign occupation, genocide and other forms of servitude have manifested themselves in poverty, underdevelopment, marginalization, social exclusion and economic disparities. We reaffirm that all forms of racism and xenophobia as well as foreign occupation constitute serious violations of human rights, which should be rejected through all political and legal means. We also commend the Conference for having agreed on the New Partnership for Africa’s Development (NEPAD) as a framework within which among others, remedial measures for redressing the legacies of these practices could be addressed and called for the formulation of similar programmes for descendants of slaves in the African Diaspora. In this regard we express our commitment to the accelerated implementation of the Durban Declaration and Programme of Action, adopted by the World Conference against Racism. We also emphasize the need for the establishment of complementary international standards to strengthen and update international instruments against racism, racial discrimination, xenophobia and related intolerance. 18. We welcome the establishment by the General Assembly of the Office of the High Representative for the Least Developed Countries, land-locked developing countries and small island developing States, and call upon the international community to fully implement the

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Programme of Action for the Least Developed Countries for the Decade 2001–2010 and the Brussels Declaration adopted by the Third United Nations Conference on Least Developed Countries on 20 May 2001.

IV. Means of implementation: role of developed countries 19.  We note that developing countries continue to make strenuous efforts to mobilize domestic resources for development. We, however, underscore that such efforts need to be supplemented by external resources, which should be provided without any condition, in order to effectively address their development requirements. We express our concern at the erosion of development cooperation and underline the need to reinvigorate it in order to address the new requirements of developing countries in the context of globalization and liberalization. In this context, we note the close linkage between the prosperity of developing and developed countries and the potential of developing countries as locomotives of growth. We urge developed countries to take concrete steps to mobilize new and additional financial resources and facilitate greater flows of FDIs as committed in the outcomes of UN major conferences and summits for the realization of this potential. We also urge the implementation of paragraph 44 of the Monterey Consensus concerning the proposal to use SDR allocations for development purposes. 20.  We note with concern the continued and significant decline of official development assistance (ODA), which reached a low of 0.22 per cent of GNP, representing less than one-third of 0.7 United Nations target. We further reiterate the urgent need for a substantial increase of ODA and in this regard, we strongly urge compliance with internationally agreed ODA targets and with commitments for new and additional resources. In particular, we urge the developed countries to make concrete efforts to achieve the target of 0.7 per cent of their GNP as ODA to developing countries as reaffirmed at the International Conference on Financing for Development, and effectively implement their commitment on ODA to the least developed countries as contained in paragraph 83 of the programme of action for LDCs for the decade 2001–2010. We further urge developed countries to make available the increased ODA commitment announced at the International Conference of Financing for Development and reaffirmed at the World Summit for Sustainable Development to the implementation of sustainable development objectives as set out in the Johannesburg Plan of Implementation. 21.  We express regret that despite several initiatives undertaken over the past decade by the international community, the debt crisis persists as one of the main constraints for the development of developing countries, including middle-income countries. We reiterate the urgent need for the international community, particularly the developed donor countries and international financial institutions to adopt an effective, comprehensive and equitable, once-and-for-all development-oriented and durable solution to the debt problems of developing countries, including debt cancellation and increased concessional financial flows for all developing countries, as well as through debt for sustainable development swaps. In this regard, we welcome the decision reached in Monterrey for future determinations of debt sustainability to also include consideration of a country’s ability to achieve the Millennium Development Goals.

V.  Trade and development 22.  Trade is one of the most important sources to foster development. A universal, rule-based, open, non-discriminatory and equitable multilateral trading system, as well as meaningful trade liberalization, can substantially stimulate development worldwide. Therefore it is essential to place the needs and interests of developing countries at the heart of the WTO agenda and facilitate the accession of developing countries to the WTO on fair and reasonable terms, taking into

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account the particularities of each country. We stress the importance of enhanced and predictable market access for products of export interest of developing countries, through tariff reductions, the removal of tariff peaks and escalations and the elimination of trade-distorting policies, protectionist practices, non-tariff barriers and agricultural subsidies. We also express concern over the high incidence of anti-dumping measures and reiterate that they should not be used for protectionist purposes. 23.  We call for the full and faithful implementation of the Uruguay Round Agreements and emphasize the need to address expeditiously the implementation issues and concerns of developing countries. Regarding the implementation of existing WTO agreements and decisions, we emphasize the need to address in particular the difficulties and resource constraints that developing countries face in fulfilling their obligations under those agreements and decisions. We further call for the strengthening of the special and differential provisions in favour of the developing countries to make them more precise, effective and operational. We also call for the review of the Trade-Related Investment Measures (TRIMS) and Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreements from a development dimension with a view to minimizing any negative aspects of these agreements on the development of developing countries. 24.  We further reiterate the important role that UNCTAD has to play in helping developing countries to integrate into the world economy in areas of special interest such as investment, enterprise development and technology, trade, in goods and services, commodities and services infrastructure for development and trade efficiency. In this regard, we call for taking concrete steps to strengthen UNCTAD and its capacity to assist developing countries in trade and development-related issues, including through the provision of new and additional resources, and in the implementation of the Doha work programme.

VI. Operational activities for development 25.  We underscore the importance of the role of the United Nations in Operational Activities for Development. We call on all developing countries to effectively participate in the work of Executive Boards of the United Nations Funds and Programmes. We stress the need to ensure that the funding for operational activities for development is placed on a predictable, assured and continued basis, commensurate with the increasing needs of developing countries including through channeling a portion of the ODA pledged in Monterrey for the operational activities of the United Nations. In this regard, we express concern at the withholding by one major donor of their contribution to the core resources of UNFPA. We reiterate that the reforms of the United Nations, and decisions taken by the United Nations funds and programmes, including in the context of funding strategies, must safeguard the essential characteristics of United Nations operational activities, which are universality, neutrality, impartiality, multilateralism, voluntary and grant nature, and responding to the needs of developing countries in a flexible manner. In this context, we reiterate the role of national governments in establishing the priorities in their respective countries as well as their central coordinating role. While noting the efforts of the Funds and Programmes to generate extra resources from the donor community, we stress that such resources can only complement the centrality of core resources provided by donor countries. Furthermore, such resources should be mobilized in accordance with the agreed priorities and should not be, in any manner, subject to preconditions which distort the mandates set by the General Assembly and other respective governing bodies. Moreover, we call on agencies, funds and programmes to take effective steps to fully utilize the South-South modality within their programmes of assistance. We also urge them to increase the procurement of goods and services from the developing countries.

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VII. Situation in Palestine and the Middle East 26.  We remain gravely concerned over the tragic and dangerous situation in the occupied Palestine territory, including Jerusalem, which has resulted in the grave deterioration of the economic and social conditions of the Palestinian people, and has negatively affected stability and development in the region as a whole. We call for the immediate and complete cessation and end to settlement activities in the occupied Palestinian territory, including Jerusalem, and in the occupied Syrian Golan an end to the recent Israeli occupation and siege of Palestinian cities, towns and villages, which are in violation of international law, relevant United Nations resolutions and the Fourth Geneva Convention of 12 August 1949, and all forms of collective punishment against the Palestinian people, as well as the return to the negotiation table. We also call for the immediate Israeli withdrawal from the occupied Palestinian territory, including Jerusalem, and from the occupied Syrian Golan to the line of 4 June 1967, and from all the other Arab occupied territories. We reaffirm our support to the Palestinian people in their effort to achieve their inalienable rights, including their right to establish an independent state on their national soil, including Jerusalem. We also call for an end to Israeli violations of Lebanese sovereignty and territorial integrity. 27.  We reaffirm our support for the Middle East peace process started in Madrid in 1991, and aimed at achieving a comprehensive, just and lasting peace in the region, in accordance with Security Council resolutions 242 (1967), 338 (1973) and 425 (1978) and the principle of land for peace. In this context, we support the peace initiative adopted by the Arab Summit in Beirut in March 2002.

VIII. The New Partnership for Africa’s Development (NEPAD) 28.  We welcome and fully support the New Partnership for Africa’s Development (NEPAD) adopted by the Organization of African Unity (OAU) in Lusaka in July 2001 which is a holistic and integrated development initiative for the economic and social regeneration of Africa. 29.  We stress the urgent need to follow through on the declarations of support from the United Nations, the World Bank, the International Monetary Fund, the European Union and the G-8, to assist Africa to implement NEPAD. 30. We welcome the adoption of the UN Declaration on the New Partnership for Africa’s Development (NEPAD) by the high-level meeting of the General Assembly on 16 September 2002.

IX. South-South cooperation 31.  We recognize the increased relevance and importance of South-South cooperation in the current international economic climate. We, therefore, reiterate our support for South-South cooperation both as a strategy in support of the development efforts of the developing countries and as a means of enhancing participation of developing countries in the emerging global economy. 32.  We invite the Administrator of the UNDP and the Executive Board to strengthen the TCDC Unit as the United Nations focal point for South-South cooperation through the preservation of this separate identify and the provision of adequate resources to ensure the full implementation of decisions of the South Summit under the sphere of competence and to enable it to carry out its relevant mandates and responsibilities. 33.  We reiterate our strong commitment to fully implementing the outcome of the South Summit held in Havana, Cuba, from 10 to 14 April 2000. Regarding the status of the implementation process of the South Summit outcome, we reiterate our firm commitment to speed up the implementation process in the sphere of competence of each chapter. We welcome the progress made so far in the implementation process despite lack of resources and call upon member States to

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contribute generously to the special fund established in accordance with the provisions of the Havana Programme of Action in order to facilitate the implementation process. 34.  We reaffirm the importance of the implementation of the Havana Programme of Action and follow-up of the South Summit and, in this context, reiterate that the ad hoc open-ended working group establish during its twenty-fourth annual meeting should continue to function as a mechanism of regular reviewing and monitoring of the overall process. In this regard, we reiterate the need to effectively and speedily revitalize the work of this group. 35.  We reiterate our firm commitment to further strengthening South-South cooperation, taking into account the proposals set out in the Havana Programme of Action. As stressed by the South Summit, South-South cooperation is increasingly important, both as a strategy in support of development and as a means of ensuring the effective participation of developing countries in the emerging global economic order. We believe that there is a need to consolidate ongoing efforts, to further increase resources, and to identify priority areas for South-South cooperation, especially in the field of regional and sub-regional economic cooperation, including inter alia the implementation of the Johannesburg Plan of Implementation. These priority areas should be included in the cooperation among developing countries to enhance their understanding of complex global economic, environmental and social issues and to formulate joint strategies. We are very confident that the 11th session of the Intergovernmental Follow-up and Coordination Committee on ECDC (IFCC-XI) to be held in 2003 in Caracas will be a major event and an excellent opportunity to establish those priority areas for South-South cooperation as well as to reassert developing countries’ solidarity and their desire and ability to act together. 36.  We stress the importance to developing countries of access to science and technology in order to promote their economic growth and sustainable development. We, therefore, underscore the need for developing countries to participate in, benefit from, and contribute to, the rapid advances in science and technology, including in the area of environmentally sound technologies, new and emerging technologies, including biotechnology, information and communication technology (ICT) and safe drinking water technologies. In this context, we welcome the generous offer made by the United Arab Emirates to host the South-South High-level Conference on Science and Technology in Dubai from 27 to 30 October 2002 in accordance with the Havana Programme of Action, and we call on developing countries to participate actively at this Conference in order to formulate a South-South platform for the promotion of science and technology in the South. 37. We stress the crucial importance of the Global System of Trade Preferences among Developing Countries (GSTP) as an instrument for promoting South-South cooperation and trade in this context. We recall the decision of the Havana Summit to consider further deepening and expansion of the GSTP in order to enhance its effectiveness, as well as to review the implementation and the performance and impact of the Global System of Trade Preferences (GSTP) among developing countries. We request UNCTAD to continue its support for the operations of the GSTP Agreements. 38. We approve the Financial Statement of the ECDC Account of the Group of 77 (G-77/ AM(XIV)/2002/4). We express concern over the precarious financial situation of the ECDC Account and the fact that since the Havana Summit only 26 countries have paid their contributions in full. In this context, we appeal to all member States of the Group of 77 to contribute generously to the ECDC Account as decided by the South Summit in order to support the implementation of the annual programme of work of the Group of 77 and to ensure continuity of the smooth functioning of the Office of the Chairman. 39.  We approve the report of the Seventeenth Meeting of the Committee of Experts of the PerezGuerrero Trust Fund (PGTF) (G-77/AM(XIV)/2002/2), which was presented in accordance with the guidelines for the utilization of PGTF. We note with satisfaction the progress made so far by

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the PGTF in support of South-South cooperation projects and call upon all members of the Group of 77 as well as the United Nations system to support the expansion of resources of the Trust Fund. We commend the leadership of the Chairman of the Committee of Experts for his continued commitment and leadership in the Fund’s activities.

X.  Other major issues and developments 40.  We welcome the proposal for the establishment of an international humanitarian fund, mindful of the ideas expressed on the issue during the International Conference on Financing for Development and at the World Summit for Sustainable Development. 41.  We recall that HIV/AIDS is a major challenge for developing countries. We believe that the response to the epidemic should be based on an integrated approach of prevention and treatment policies. We urge the international community to contribute new and additional resources to initiatives in the area of health, including the Global Fund to Fight HIV/AIDS, Tuberculosis and Malaria. Efforts should also be carried out to provide access to and affordability of medicines including anti-retroviral drugs in line with the Declaration on the TRIPS Agreement and public health, adopted at the Fourth WTO Ministerial Conference, held in Doha. 42.  We firmly reject the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries, and reiterate the urgent need to eliminate them immediately. We emphasize that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. We, therefore, call on the international community neither to recognize these measures nor apply them. 43.  We express our grave concern over the impact of economic sanctions on the civilian population and development capacity in targeted countries, and therefore urge the international community to exhaust all peaceful methods before resorting to sanctions, which should only be considered as a last resort. If necessary, these sanctions must be established only in strict conformity with the Charter of the United Nations with clear objectives, a clear time frame, provisions for regular review, precise conditions for their lifting and never be used as a form of punishment or otherwise to exact retribution. 44.  We call upon the international community to minimize the adverse effects of United Nations economic sanctions on third parties. In this regard, we emphasize the responsibility of targeted countries to fully implement the provisions of all relevant Security Council resolutions. 45.  We call upon the international community to provide the necessary assistance to landmine clearance operations, as well as to the rehabilitation of the victims and their social and economic integration into the landmine affected countries. We express concern over the residues of the Second World War in particular in the form of landmines, which cause human and material damage and obstruct development plans in some developing countries. We demand that the States responsible for laying the mines outside of their territories assume responsibility for the landmines, cooperate with the affected countries to get rid of them and to contribute defraying the cost of clearance and provide compensation for any ensuing losses and for reclaiming the affected areas for productive purposes. In this context, we express support for the demining assistance in the south of Lebanon.

XI. The financial situation, administrative and budgetary issues of the United Nations 46.  We note the improvement in the financial situation of the Organization and express concern that there are still considerable outstanding contributions and arrears.

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47.  We reaffirm the legal obligation of Member States to bear the expenses of the Organization in accordance with the Charter of the United Nations and the requirements to pay their assessed contributions in full and on time and without conditions. While recognizing the need to extend sympathetic understanding to those that are temporarily unable to meet their financial obligations as a consequence of genuine economic difficulties, we urge all others, in particular the major contributor, to pay their assessed contributions unconditionally, in full and on time. 48.  We reaffirm that the principle of the ‘capacity to pay’ is the fundamental criterion in the apportionment of the expenses of the United Nations. We stress that the special difficulties faced by some developing countries should be fully taken into account and that the decisions of the General Assembly on the agenda item ‘Scale of assessment’ must be responsive to such difficulties. We stand fully committed to support the requests of these developing countries. 49.  We encourage the promotion of an intergovernmental dialogue in order to explore measures to improve the financial situation of the Organization that can have a positive impact. In this regard, we stress that any attempt to change the current methodology of calculating the arrears under Article 19 of the Charter that could adversely affect a large number of developing countries, is not desirable and should be discouraged. 50.  We express concern that internal cross-borrowing from the peacekeeping budgets to finance the regular budget continues to put undue financial difficulties on the developing countries that provide troops and equipment. We also express concern at the late and irregular reimbursement to developing countries that provide troops and equipment to various active and liquidated peacekeeping operations, which is due to the non-payment of assessed contributions by some Member States. 51.  We reaffirm that all mandated programmes and activities of the Organization should be adequately financed in order to ensure its full implementation. In this regard, we expect that in the decisions to be taken during the fifty-seventh session of the General Assembly on the implementation of the regular budget 2002–2003, the outline for the next budget 2004–2005 and other related budgetary issues, the demands and areas of concern of the Group of 77 and China should be adequately and effectively addressed. 52.  We express concern at the inadequate share of the developing countries in the United Nations system of procurement. We emphasize that the United Nations procurement should be on as wide a geographical basis as possible with preferential treatment for the developing countries. We further underline that the United Nations supplier roster should be representative of the membership of the Organization.

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27.  Twenty-seventh Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 25 September 2003 a.  Ministerial Declaration We, the Ministers of Foreign Affairs of the Group of 77 and China, guided by the principles and objectives of the United Nations Charter and by the provisions of the Havana Declaration and Plan of Action adopted by the South Summit, convened at the Twenty-seventh Annual Meeting at the United Nations Headquarters in New York on 25 September 2003, adopted the following declaration: 1.  We welcome the admission of the Democratic Republic of Timor-Leste as a full member of the Group of 77. 2.  We reaffirm our commitment to the Millennium Declaration and call upon the international community to fully and speedily implement the provisions set out therein and in other major United Nations conferences and summits. 3.  We pledge to continue to work towards achieving the goals and objectives of the Group of 77 and China and, in this regard, underscore the historic importance of the Fortieth Anniversary of the establishment of the Group of 77 to be commemorated in June 2004. 4.  We reaffirm our commitment to the strengthening of multilateralism and emphasize the need to work towards a key and decisive role of the United Nations in international economic policy-making and global and economic development issues and effectively contribute to the achievement of the development goals and objectives of developing countries in keeping with the provisions of the United Nations Charter. 5.  We welcome General Assembly resolution 57/270 B on the integrated and coordinated implementation of and follow-up to the outcomes of the major United Nations conferences and summits in the economic and social fields, and call for its immediate and full implementation. We note with particular satisfaction that the General Assembly stressed the importance of regular review of the progress made in the implementation of the commitments undertaken in major United Nations Conferences and Summits, as well as of indicator for the assessment of the progress made in the achievement of the Millennium Development Goals, in particular Goal number eight on Global Partnership for Development. We look forward to the holding of a major United Nations event in 2005 for a comprehensive review of the progress achieved in implementing all the commitments made in the Millennium Declaration. We stress the importance of undertaking such a review in a balanced manner in terms of respective commitments of developing and developed countries.

Global Economic Situation 6. Globalization presents opportunities, challenges and risks for developing countries. The impact of globalization on development has been mixed and a large number of developing countries has not benefited from it. Economic disparities between developed and developing countries far from decreasing have increased. In this regard, we note with grave concern that the international economic environment continues to be unfavorable for the developing world. 7. We believe that for developing countries to benefit from globalization new approaches to international development cooperation are needed, which place development at the heart of international relations and ensure full participation and integration of developing countries in the world economy. In this regard, we emphasize the need for an enabling international environment

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conducive to development, including through the reform of the international financial architecture with a view to achieving greater transparency and increased participation of developing countries. 8.  We reemphasize the need for a more favorable environment for economic growth of developing countries. Therefore, we further call upon the most advanced industrial countries to continue to take positive macro-economic measures to stimulate and ensure greater stability of the world economy. We call also for an effective coordination of macroeconomic policies among developed countries as essential to ensuring economic growth and the predictability of financial flows to developing countries, thus reducing their vulnerability to financial crisis and contagion.

Financing for Development 9.  We note that developing countries continue to make strenuous efforts to mobilize domestic resources for development. Such efforts need to be supplemented by external resources, which should be provided without any condition, in order to effectively address their development requirements. We express our concern at the erosion of development cooperation and underline the need to reinvigorate it in order to address the new requirements of developing countries in the context of globalization and liberalization. In this context, we urge developed countries to take concrete steps to mobilize new and additional financial resources and facilitate greater flows of FDIs to developing countries, and in this regard implement their commitments undertaken in the outcomes of UN major conferences and summits. 10.  We confirm the need to establish new innovative financial mechanisms to support the efforts of developing countries to achieve sustained economic growth, poverty eradication, sustainable development and strengthening their democratic systems, by raising new resources for productive investment and creating employment in order to provide answers to our people’s legitimate needs while reaffirming the leading roles of national governments in the development process of each country. 11. We note with concern the trend of declining Official Development Assistance (ODA) in recent years, which reached a low of 0.22 per cent of GNP, representing less than one third of 0.7 UN target. We reiterate the urgent need for a substantial increase of ODA and strongly urge compliance with internationally agreed ODA targets and with commitments for new and additional resources. 12.  We express regret that despite several initiatives undertaken over the past decade by the international community, the debt crisis persists as one of the main constraints for the development of developing countries. We reiterate the urgent need for the international community, particularly the developed donor countries and international financial institutions to adopt an effective, comprehensive and equitable solution to the problem of the debt crisis in time-bound fashion. 13. We welcome the high-level dialogue with the Bretton Woods institutions and the World Trade Organization held on 14 April 2003 by the ECOSOC as first step of the follow-up of Monterrey Consensus and look forward to the holding in October 2003 by the General Assembly of the High-level Dialogue on financing for development.

International Trade 14.  We are disappointed that the Fifth WTO Ministerial Conference at Cancun failed to produce an agreement that would have addressed the interests and concerns of developing countries. In Cancun, developing countries played a fundamental role in the negotiations. We reaffirm our commitment to display the same degree of unity of purpose and solidarity in further negotiations under the Doha WTO Round. We look forward to the continuation of the WTO process in which specific areas of interest for developing countries, such as improving market access for our

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products, special an differentiated treatment and the phasing out of agricultural subsidies, among others, remain at the core of multilateral trade negotiations. 15.  We emphasize the importance of an open, rule-based multilateral trading system for the promotion of economic development, the facilitation of developing countries’ integration into the global economy, and the eradication of poverty worldwide. 16. We are committed to pursuing the reform and strengthening of the multilateral trading system in a manner that promotes development. In this respect it is essential to place the development needs of developing countries at the heart of the WTO agenda. We stress the importance of enhanced and predictable access to developed country markets for products of export interest to all developing countries. We also express concern over the high incidence of anti-dumping measures and non-tariff barriers and reiterate that they should not be used for protectionist purposes. In this regard, we call for the full implementation of the Doha Ministerial Decisions as a necessary step in enhancing the Multilateral Trade System. 17.  We emphasize the need to address expeditiously the implementation issues and concerns of developing countries as part of the Doha negotiation round. We further call for the strengthening of the special and differential provisions to make them more precise, effective and operational, so as to enable developing countries to effectively take account of their development needs, including food security. The special and differential treatment should be reviewed and strengthened to take account of the changing realities of world trade and globalized economy, and must be accompanied by capacity-building and enhanced market access. This should include, inter alia, assistance to help developing countries overcoming transitional costs and to allow time for achieving development goals and enhancing competitiveness. 18.  We underline that the objective of the universality of the World Trade Organization should be pursued with great determination in order to strengthen the multilateral trading system and resist any attempt to undermine it. Further recalling the provisions of the Monterrey Consensus and Johannesburg Programme of Implementation, we emphasize the need to facilitate the accession of all developing countries that apply for the membership in WTO, including landlocked developing countries and taking into account the particularities of each country. We call also for an expeditious implementation of the Guidelines adopted by the General Council for the accession of the Least Developed Countries. 19.  We commend the efforts of the Group in formulating a common position through the adoption on 22 August 2003 of the Group of 77 Declaration on the Fifth WTO Ministerial Conference, which has reflected the concerns and interests of developing countries towards ensuring a multilateral trading system that is responsive to the needs and concerns of developing countries. 20.  We regret that despite continuously increasing prices paid by consumers, prices received by developing country commodity exporters have been declining steadily over the past several years. There is a need to redress this imbalance, which combined with other adverse conditions, including unfavourable market access or market entry conditions and competition from subsidized production in developed countries, places a heavy burden on developing commodity–exporting countries, particularly least developed countries. In this regard, while stressing the importance to empower commodity producers in developing countries to insure themselves against risk, we underscore the need for reforming the existing facilities to respond to the needs of commodity-dependant developing countries. 21.  We stress our support to UNCTAD as the focal point within the United Nations for the integrated treatment of trade and development and the interrelated issues in the areas of finance, technology, investment and sustainable development, we welcome the decision of the General Assembly in its resolution 57/270B to include UNCTAD in the Monterrey Consensus follow-up mechanism. We commit ourselves to working together to make UNCTAD XI (Sao Paulo, Brazil,

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14–18 June 2004) a successful global endeavour involving all actors and stakeholders in development. We are confident that UNCTAD-XI will afford the international community an opportunity to address the asymmetries and inequalities in the international marketplace, the structural limitations, inadequate supply capacities and vulnerabilities of developing countries to the external economic financial environment and help to put in place a development oriented multilateral trading system.

Sustainable Development 22. We reaffirm our commitment to the outcome of the World Summit on Sustainable Development and stress the importance of economic development, social development and environmental protection as interdependent and mutually reinforcing pillars of sustainable development. To this end we urge developed countries and relevant major groups to fulfill their commitment to the full and expeditious implementation of the targets and goals set in the Johannesburg Plan of Implementation. 23. We underscore the importance of the Commission on Sustainable Development as the high-level forum for sustainable development within the United Nations. We welcome the outcome of the Commission’s eleventh session held from 28 April to 9 May 2003, in particular the new programme of work and organizational modalities. We underscore that the programme of work of the Commission should advance the implementation of Agenda 21 and the Johannesburg Plan of Implementation. 24.  We note the outcomes of the recently held meetings of the Global Environment Facility (GEF), United Nations Forum on Forests (UNFF), and the Sixth Conference of the Parties to the United Nations Convention to Combat Desertification (COP-6). In this context, we emphasize the importance of providing adequate financial resources, capacity building, technology innovation and transfer to developing countries and cooperation with other relevant instruments particularly the biodiversity, desertification, and climate change conventions. 25.  We note with grave concern that the HIV/AIDS epidemic continues to constitute a global emergency, which undermines social and economic development throughout the world, particularly in developing countries. We emphasize the need to have an urgent, coordinated and sustained global response to address the epidemic through prevention, treatment and care. We strongly support the ‘Declaration of Commitment on HIV/AIDS’ adopted at the Twenty-sixth special session of the General Assembly, and call for its immediate implementation. We welcome the United Nations high-level meeting on HIV/AIDS in this regard. We reaffirm the right of developing countries to have access to affordable medicine, including anti-retroviral medicine, to combat the epidemic and, in this context, emphasize that international rules on intellectual property rights should not prevent developing countries from designing and implementing national public health policies to protect their populations. In this regard, we are encouraged by the decision reached recently on the issue of access to medicines by WTO members with insufficient or no manufacturing capacities in the pharmaceutical sector. We also welcome the efforts by the international community, including the recent G8 initiative in this regard and the Fifteenth International Conference on HIV/AIDS to be held in Thailand in 2004, to address effectively the urgency and gravity of the HIV/AIDS epidemic. 26.  We stress vigorously the need to promote access to and transfer of knowledge and technology to developing countries, including information and communication technology. We welcome the convening by United Nations of the World Summit on the Information Society, to be held in two stages: Geneva 2003 and Tunisia 2005. We regard this as a unique occasion for all the key actors of the international community to develop a common approach towards the use of information technologies for the benefit of development and to attain a better understanding of this technological revolution and its social, cultural and economic impact. The need to abridge the

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digital gap, for equitative access to information and expertise, for further involvement of our countries in a transparent and democratic management system of the global information network and the convenience of achieving consensus on ethical standards and principles instrumental in the development of a genuine information society, stand among the major challenges to be dealt with.

Social Development 27.  We reiterate the crucial importance of achieving the internationally agreed goals of social development, in particular those identified in the World Summit for Social Development, including through an increased and untied assistance from the international community for this purpose. We believe that the international community bears the responsibility to fulfil its commitments and implement the adopted decisions, in order to achieve the social development goals for the well being of the present and future generations.

The Programme of Action for the Least-developed countries 28.  We note with deep concern the weak implementation of the Programme of Action for the Least Developed Countries for the Decade 2001–2010 and call upon the international community to fully implement it. We urge the developed countries, bilateral and multilateral donors to honor their commitments in this regard in order to assist the Least-Developed countries in their development efforts. We also urge developed countries and international financial institutions to intensify support for national poverty reduction strategies.

The New Partnership for Africa’s Development (NEPAD) 29. We commend the dedication of African leaders and people in the implementation of NEPAD, which aims to foster a genuine partnership for the development of Africa; we strongly support the ongoing efforts by the international community to assist Africa in the implementation of NEPAD, and call upon the United Nations System, civil society and private sector to contribute effectively to the implementation of NEPAD, including through South-South cooperation. 30.  We welcome the establishment by the Secretary-General of the Office of the Special Advisor on Africa (OSSA) with the responsibility to coordinate the United Nations support to Africa, guide reporting on Africa and coordinate global advocacy in support of NEPAD and call on the General Assembly to ensure that adequate resources are allocated to this office to allow it to fulfill its mandate.

The Barbados Programme of Action—Ten-year Review 31.  We note with concern the unsatisfactory progress of implementation of the Programme of Action for the sustainable development of Small Island Developing States (SIDS) and call on the international community, especially the bilateral and multilateral donors to honour and renew their commitments to the Programme of Action and all efforts being undertaken by SIDS to attain the Millennium Development Goals (MDGs). We also urge their full support and effective participation in the International Meeting hosted by the Government of Mauritius in 2004 to comprehensively review the Programme of Action for SIDS.

The Almaty Programme of Action 32.  We welcome the International Ministerial Conference of Landlocked and Transit Developing Countries and Donor Countries and International Financial and Development Institutions on

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Transit Transport Cooperation held in Almaty from August 28–29, 2003. We express our strong support for the implementation of the Almaty Programme of Action aimed at addressing the special needs of landlocked developing countries and establishing a new global framework for action for developing efficient transit transport systems in landlocked and transit developing countries, taking into account the interests of both landlocked and transit developing countries. We stress the importance of enhanced and predictable access to developed country markets for landlocked developing countries in accordance with paragraph 33 of the Almaty Programme of Action.

Other major issues and developments 33.  We reiterate the commitment of our countries to eradicate poverty and hunger, and raise the standard of living of our people, including through their right to food security. We recognize that poverty is a major cause of food insecurity and instability in developing countries. In this context, we call for decisive and concrete action by the international community to assist developing countries in their efforts to reduce poverty globally during the First United Nations Decade for the Eradication of Poverty. 34.  We welcome the setting up in February 2003 of the World Solidarity Fund (WSF) as a trust fund of UNDP to contribute to the eradication of poverty and invite the UNDP Administrator to take further measures to operationalize the Fund by establishing on an urgent basis the high-level committee to define the strategy of the Fund and to mobilize the financial resources. In this regard, we stress the role of Governments, civil society and private sector in mobilizing resources for the World Solidarity Fund. 35.  We welcome the fact that the Group of 77 in Vienna has developed a common position on issues of central significance to the negotiation of a Convention against Corruption and is actively involved in the negotiation process. We consider that those negotiations should lead to the elaboration of a convention, which is comprehensive, strong, and effective in providing for international cooperation in the struggle against corruption, including through adequate measures as regards mutual legal assistance, extradition, prevention, seizure and recovery of assets. 36.  We firmly reject the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries, and reiterate the urgent need to eliminate them immediately. We emphasize that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. We, therefore, call on the international community neither to recognize these measures nor apply them. 37.  We express our grave concern over the impact of economic sanctions on the civilian population and development capacity in targeted countries, and therefore urge the international community to exhaust all peaceful methods before resorting to sanctions, which should only be considered as a last resort. If necessary, these sanctions must be established only in strict conformity with the Charter of the United Nations with clear objectives, a clear time frame, provisions for regular review, precise conditions for their lifting and never be used as a form of punishment or otherwise to exact retribution. In this regard, we call upon all parties involved to make every responsible effort to fully implement the provisions of all relevant Security Council resolutions in order to reach the lifting of sanctions as soon as possible. 38.  We welcome Security Council resolution 1506 of 12 September 2003 by which the sanctions imposed on Libya have been permanently lifted and commend the constructive efforts that Libya undertook in order to reach this positive result. We reiterate our demand for the lifting of all unilateral sanctions imposed against Libya as a means of political coercion in contravention to the UN resolutions, in particular General Assembly resolution 57/5 of 16 October 2002 and we

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support Libya’s demand for compensations on human and material damages caused by these sanctions. 39.  We call upon the international community to provide the necessary assistance to landmine clearance operations, as well as to the rehabilitation of the victims and their social and economic integration into the landmine affected countries. We express concern over the residues of the Second World War in particular in the form of landmines which cause human and material damage and obstruct development plans in some developing countries. We demand that the States responsible for laying the mines outside of their territories assume responsibility for the landmines, cooperate with the affected countries to get rid of them and to contribute defraying the cost of clearance and provide compensation for any ensuing losses and for reclaiming the affected areas for productive purposes. In this regard, we express support for the assistance in the demining efforts in the south of Lebanon and call on Israel to provide the United Nations with all the maps and information on the location of the landmines that it has planted in the south of Lebanon during its occupation which are hindering the development and rehabilitation of the south of Lebanon and preventing the agricultural exploitation of vast areas of rich agrarian land. 40.  We welcome the proposal made by Tunisia to the 58th session of the General Assembly to adopt a resolution declaring an International year of Sports and Physical Education in the service of peace and development. 41. We welcome the decision taken by the Conference of the Parties of the United Nations Convention to Combat Desertification at its sixth session in Havana, designating GEF as a financial mechanism of the Convention and call upon the United Nations to declare 2004 as the International Year of Deserts and Desertification with the view to raising awareness on the phenomenon of desertification and protecting biodiversity of deserts as well as indigenous and local communities and traditional knowledge of affected countries.

South-South Cooperation 42.  We recognize the increased relevance of South-South cooperation in the current international economic climate. We, therefore, reiterate our support for South-South cooperation both as a strategy in support of the development efforts of the developing countries and as a means of enhancing participation of developing countries in the emerging global economy. We affirm the importance of strengthening South-South Cooperation in the UN System, including funds and programmes and specialized agencies involved in South-South cooperation and, in this regard, we support the strengthening of the Special Unit for South-South Cooperation and we call on the UNDP to provide the Special Unit for South-South Cooperation with necessary support to enable it to fulfil its mandate. 43.  We welcome the offer made by the Kingdom of Morocco to host the High-level Conference on South-South cooperation in Marrakech from 16 to 19 December 2003 in accordance with the Havana Programme of Action and call developing countries to participate actively at ministerial level in order to ensure success of the Conference. We consider the High-level Conference on South-South Cooperation an important landmark in our collective effort to increase the momentum and intensity of development cooperation. In this context, we welcome the regional preparatory meetings as well as the initiative of holding a forum of NGOs and private sector on the occasion of the Conference.

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28.  Twenty-eighth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 30 September 2004 a.  Ministerial Declaration We, the Ministers of Foreign Affairs of the Group of 77 and China convened on the occasion of the Twenty-eighth Annual Meeting at United Nations Headquarters in New York on 30 September 2004, reaffirmed the Ministerial Declaration on the occasion of the fortieth anniversary of the Group of 77 at São Paulo, Brazil, on 11–12 June 2004, reviewed the developments in the international economic situation and the activities undertaken in the context of the development agenda of the United Nations, and adopted the following Declaration: 1.  We welcome the adoption of General Assembly resolution 58/291 of 6 May 2004 on the integrated and coordinated implementation of and follow-up to the outcomes of the major UN conferences and summits in the economic and social fields, which decided to convene in New York in 2005, a High-level plenary meeting to undertake a comprehensive review of the progress made in the fulfillment of all the commitments contained in the Millennium Declaration, including the internationally agreed development goals and the global partnership required for their achievement. We emphasize that the Event should focus on development and that the preparatory process for the 2005 event should be inclusive, open-ended and transparent and the outcome of the event to be a composite document, intergovernmentally negotiated through such a process.

Globalization 2.  Globalization presents opportunities, challenges and risks for developing countries. We note with deep concern that the processes of globalization and liberalization have produced uneven benefits among and within countries, and that the world economy has been characterized by slow and lopsided growth and instability. The income gap between developed and developing countries has widened, and poverty has increased in many developing countries. We therefore believe that there is a need for a global strategy to prioritize the development dimension into global processes in order for developing countries to benefit from the opportunities offered by globalization. An enabling external economic environment for development requires greater coherence between the international trading, monetary and financial systems. 3.  We emphasize the need for the international trading system to allow for legitimate policy space necessary for developing countries to pursue a pro-active, strategic mix of trade and development policies suited to their initial conditions, dynamic comparative advantage and changing needs and circumstances. It is particularly important to take into account the need for an appropriate balance between national policy space and international disciplines and commitments in the area of finance, development and trade when deciding collectively on future disciplines and commitments and on the implementation and interpretation of existing ones. 4.  We call upon developed countries to conduct their macroeconomic and trade policies in a way that enhances the opportunities of developing countries to reduce the existing income gap and to meet the Millennium Development Goals (MDGs) and other development goals. Effective macroeconomic policy coordination among the major industrial countries and mechanisms that contribute to greater stability of exchange rates among the major currencies and financial flows to developing countries would be helpful in this regard. 5.  We welcome the report of the World Commission on Social Dimension of Globalization and urge the General Assembly and other organs and bodies of the UN system to give full

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consideration to the proposals and recommendations contained therein with a view to contributing to make globalization inclusive and equitable for all world’s people.

International trade 6.  We reaffirm the objectives contained in the Millennium Declaration of upholding and safeguarding of an open, universal, equitable, rule-based, predictable and non-discriminatory multilateral trading system in promoting development and poverty eradication. In this regard, we stress, inter alia: o  The importance of increased and effective market access and entry conditions in developed countries for agriculture, manufactures and services exports of developing countries, as a pre-requisite for assuring development gains from the international trading system and negotiations. o  Special and differential treatment should form an integral part of all aspects of negotiations. All existing provisions under the WTO Agreements on special and differential treatment should be expeditiously reviewed with a view to strengthening them and making them more precise, effective and operational. Likewise all outstanding implementation-related issues and concerns raised by developing countries should also be addressed as a priority with commercially meaningful outcomes. 7.  We note with satisfaction that WTO Members agreed at the General Council on 1 August 2004 to a framework for further negotiations under the Doha Work Programme. The successful final outcome of the Doha Work Programme would depend on the manner in which negotiations take into account the interest and concerns of developing countries and in a process that is transparent and inclusive. 8.  We welcome the outcome of the UNCTAD XI Ministerial Meeting held in São Paulo, Brazil, from 13 to 18 June 2004 which, inter alia, draws specific attention to the shrinking policy space available to developing countries to pursue development objectives and elaborates policy responses required to ensure that globalization is responsive to and serves the development needs of the developing countries, reaffirms the role of UNCTAD as the focal point in the UN system for trade and development-related issues and calls for strengthening of the UNCTAD mandate to enable it to provide policy analysis and serve as a forum for consensus-building in other areas, including the area of corporate responsibility and new and dynamic sectors such as ICT and creative industries. We emphasize the importance of the agreements reached at UNCTAD XI to provide a positive impetus to the ongoing WTO negotiations in pursuance of the Doha Work Programme. 9.  We note with great concern that a large number of developing countries, particularly LDCs and commodity-dependent countries, continue to remain marginalized in international trade and the trading system and are still vulnerable to external shocks. The commodity sector continues to be the mainstay of the economy of many developing countries in terms of the generation of income, savings and foreign exchange, as well as employment and livelihood, particularly for the poor and women. Special attention thus needs to be paid to the sector both by developing countries and by the international community, including through the provision of development assistance, the reform of the multilateral trading system, securing competitive conditions in commodity markets, and addressing price instability and declining terms of trade through both governmental action and market based instruments. We stress in particular the need for enhanced, equitable and predictable market access for commodities of key importance to developing countries, addressing the problems of oversupply, setting up operational compensatory financing schemes, and the creation of a new International Diversification Fund.

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10.  We emphasize, the importance of the strengthening and attainment of the universality of the World Trade Organization and, in this context, call for accelerating the accession process without political impediments and in an expeditious and transparent manner for developing countries applying to the World Trade Organization, and also the provision of technical assistance by the World Trade Organization and the United Nations Conference on Trade and Development, within their mandates, thereby contributing to the rapid and full integration of those countries into multilateral trading system.

Financing for development 11. We urge developed countries to assist developing countries in their efforts to attain the Millennium Development Goals as well as other development goals by providing adequate technical and financial assistance, in line with the internationally agreed targets for official development assistance of 0.7 per cent of GNP to developing countries and 0.15 per cent to 0.2 per cent of GNP to least developed countries. This needs to be linked to efforts to improve the quality and effectiveness of aid, through better coordination, closer integration with national development strategies, greater predictability and stability, and genuine national ownership. 12.  We deeply regret that despite some initiatives undertaken over the past years, the external debt burden persists as one of the main constraints for the development of developing countries, including middle-income countries. We firmly reiterate the urgent need for the international community to adopt an effective, comprehensive, equitable, durable, and development-oriented solution to the debt problems of developing countries, particularly through total debt cancellation and increased concessional financial flows, as well as through debt for sustainable development swaps. 13.  We note with concern the unsatisfactory nature of the existing institutional arrangements for dealing with international tax matters, institutional arrangements that do not adequately address the concerns or represent the interests of developing States. We reiterate the urgent need for an inclusive, participatory and representative UN intergovernmental framework for international cooperation in tax matters. 14.  We confirm the need to establish new innovative financial mechanisms to support the efforts of developing countries to achieve sustained economic growth, poverty eradication, sustainable development and strengthening their democratic systems, by raising new resources for productive investment and creating employment in order to provide answers to our people’s legitimate needs while reaffirming the leading roles of national governments in the development process of each country. 15.  We recognize the imperative need of mobilizing the international community and of generating additional resources for development so as to contribute towards the achievement of the Millennium Development Goals as well as other development goals. In particular, we endorse efforts underway concerning the identification of new and alternative sources of funding, to be channeled to developing countries in a stable, transparent and predictable manner, with a view to eradicating poverty and hunger and promoting development with equity. In this regard, we welcome the declaration arising from the world leaders meeting on ‘Action on Hunger and Poverty’, convened by the President of Brazil, Luiz Inácio Lula da Silva, which was held in New York on September 20th 2004, and look forward to follow up actions that will have concrete effects over those important issues.

Sustainable development 16.  We reaffirm our commitment to the full implementation of Agenda 21 and the JPOI adopted at the World Summit on Sustainable Development. We underscore that the fulfillment of the

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goals set in the JPOI will require increased provision of means of implementation and a strengthened North-South cooperation based on the principle of common but differentiated responsibilities. We therefore urge the international community to fulfill its commitment to the full and expeditious provision of the means of implementation. We emphasize the importance for the CSD13 and its preparatory meeting, to discuss policy options and possible actions to address the constraints and obstacles in the process of implementation identified during the review year, in particular the provision of means of implementation, with the view to take policy decisions on practical measures and options to expedite implementation of the provisions of the JPOI in the thematic cluster of water, sanitation and human settlement. 17.  We note that the meetings of UNFF identified the lack of the provision of means of implementation notably; inadequate technical, technological and financial resources as a major constraint for developing countries to promote sustainable forest management (SFM) and to implement IPF/IFF proposals for action. In this regard, UNFF5 will provide a unique opportunity for the international community to address this issue in an effective manner. 18.  We note with concern the unavailability of funds for financing the projects under the operational program 15 of the GEF and in this regard the provision of adequate financial resources by the international community, in particular in the GEF-3 as well as in its next replenishment, is of utmost necessity. 19.  We welcome the decision of the 8th Special session of the GC/GMEF of UNEP to launch the process of preparation of the strategic plan on technology support and capacity building. We emphasize that this plan is to be effective and action-oriented with clear timetables and targets and sufficient resources for its implementation. This plan should be country-driven and address the priority needs of countries in the environmental field, based on the mandate of UNEP and in close cooperation with the relevant UN agencies and programmes and GEF. 20.  We reaffirm our support for UN General Assembly resolutions on promoting an integrated management approach to the Caribbean Sea within the context of sustainable development. 21.  We welcome the proclamation of the year 2006 as the International Year of Deserts and Desertification. 22.  Having considered the importance of the United Nations Convention to Combat Desertification in attaining the Millennium Development Goals as well as its role in achieving sustainable development in developing countries, we urge the developed partners to raise their political and financial support so far extended to this Convention from a mere development aid instrument to an indispensable partnership framework whose overall objective is to contribute to the improvement of the global environment of our planet and to sustainable development of dry lands where hundreds of millions of people live.

South-South cooperation 23. We reiterate that South-South cooperation is an imperative to complement North-South cooperation in order to contribute to the achievement of the internationally agreed development goals, including the MDGs. We recognize that it is also an effective tool to maintain and strengthen solidarity and unity in order to enhance the welfare of developing countries. 24.  We call for the implementation of the Havana Programme of Action and of the Marrakech Framework for the Implementation of South-South Cooperation that, taken together, represents a comprehensive framework for intensified cooperation among developing countries. 25.  We welcome the decision adopted in June 2004 in Sao Paulo to launch the third round of negotiations under the Global System of Trade Preferences among Developing Countries (GSTP), based on the principle of mutuality of advantage.

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26.  We stress and reaffirm the central role of the South Centre as the think tank of the countries of the south, and in this regard, call on member states, donor countries, international financial institutions including the Bretton Woods Institutions and the private sector to strengthen the financial base of the Centre by providing it with financial resources. 27. We welcome the progress made by the Asian-African Sub-Regional Organizations Conference (AASROC) held in Bandung, Indonesia, in July 2003 and in Durban, South Africa, in August 2004 to establish the New Asia Africa Strategic Partnership (NAASP) as an expression of the new political will of Africa and Asia to achieve a better future. We also look forward to the convening of the Asian-African Summit to be held in Indonesia in April 2005 in conjunction with the Commemoration of the Golden Jubilee of the 1955 Asian-African Conference. 28.  We express our satisfaction for the results achieved so far by the Perez-Guerrero Trust Fund (PGTF) in promoting South-South cooperation projects and we strongly encourage developing and developed countries to pledge contributions to the PGTF on the occasion of the annual UN pledging conference to be held in New  York in early November 2004 in accordance with the Group’s decision. 29.  We recall the decision of the High-Level Conference on South-South Co-operation held in Marrakech, Morocco from December 16–19, 2003, where it was agreed to establish an open-ended intergovernmental study group to address the viability of the proposed G-77 Trade and Development Bank and in that context reiterates the decision recommending to the IFCC-XI to address this issue. 30. We approve the Financial Statement of the ECDC Account of the Group of 77 (G-77/ AM(XVI)/2004/3). We express concern over the precarious financial situation of the ECDC Account and the fact that since the Havana Summit only 36 countries have paid their contributions in full. In this context, we appeal to all member States of the Group of 77 to contribute generously to the ECDC Account as decided by the South Summit in order to support the implementation of the annual programme of work of the Group of 77 and to ensure continuity of the smooth functioning of the Office of the Chairman. 31.  We approve the Report of the Nineteenth Meeting of the Committee of Experts of the PerezGuerrero Trust Fund for ECDC/TCDC (G-77/AM(XVI)/2004/2), which was presented in accordance with the guidelines for the utilization of PGTF, and also decide to extend from four to five years the term of office of the members of the Committee of Experts. We note with satisfaction the progress made so far by the PGTF in support of South-South cooperation projects and call upon all members of the Group of 77 as well as the United Nations system to support the expansion of resources of the Trust Fund. We commend the Chairman of the Committee of Experts for his continued commitment and leadership in the Fund’s activities.

ICPD +10 32.  We reaffirm the Programme of Action of the International Conference on population and Development. We are confident that the commemorative event to mark its 10th anniversary will provide an opportunity for consolidation of the international community’s efforts for implementation of ICPD. We emphasize the need for assisting the efforts of the developing countries through provision of sufficient financial resources, technical assistance and capacity building activities for achieving the goals and targets contained in the Programme of Action.

International migration and development 33.  We underscore that international migration is emerging as a very important global issue that should be considered as a priority in the UN agenda, with a view to identifying and implementing the appropriate ways and means to maximize its benefits. We welcome the General Assembly

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decision to convene a high level dialogue on international migration and development in 2006 with a view to discuss the various development related aspects of international migration and how it could better help the developing countries in meeting their development needs and the early realization of the internationally agreed development goals. In this regard, there is a need to enhance international cooperation on migration issues and make further efforts, including through appropriate mechanisms, to ensure that the human rights and dignity of all migrants and their families are respected and protected. 34.  We welcome with appreciation the initiative of the Government of Peru to host a Special International Conference at the Ministerial level, during the first semester of 2005 in Lima, Peru, of Developing Countries with substantial international migrant flows.

NEPAD 35.  We commend the dedication of the leaders and the people of Africa for the implementation of the New Partnership for Africa’s development (NEPAD), which represents the collective determination and commitment of Africa to place its countries irrevocable on the road to sustainable economic and social development by taking control of its own development and by fighting poverty. We also welcome the endorsement of NEPAD by the United Nations General Assembly, the United Nations Economic and Social Council, the United Nations Secretary-General as well as the support of the G8 and the EU amongst others. We recognize the importance of these steps in achieving one of the most important goals of NEPAD, namely the establishment of a new relationship based on partnership and mutual responsibility and accountability between Africa and the international community, to overcome the continent’s marginalization. 36.  We fully endorse NEPAD and strongly support its implementation. We call on the United Nations and the international community, as well as civil society and the private sector to contribute effectively to the implementation of NEPAD, including through South-South cooperation. 37.  We express our support for the work of the Office of the Special Advisor on Africa and the discharge of its responsibilities and calls on the United Nations entities to mobilize and provide the necessary resources to fully fund the activities of the office in support of NEPAD.

SIDS 38. We reiterate the importance of the implementation of the Programme of Action for the Sustainable Development of Small Island Developing States. We welcome the preparations being undertaken for the International Meeting for a full and comprehensive review of the Barbados Programme of Action to be held from 10–14 January 2005 in Mauritius. In this regard, we urge the donor community to contribute generously to the Voluntary Trust Fund to enable the full and effective participation of SIDS in the international meeting. We invite the international community to participate at the highest level and we seek their full support for the implementation of the outcome of the Mauritius International Meeting.

LLDCs 39.  We recognize the special problems and needs of landlocked developing countries within a New Global Framework for transit transport cooperation for landlocked and transit developing countries. In this regard, we call for the full and effective implementation of the Almaty Programme of Action. We also stress the need for the implementation of the São Paulo Consensus adopted at the UNCTAD XI in São Paulo, Brazil on 18 June 2004, in particular paragraphs 66 and 84 thereof, by the relevant international organizations and donors in a multi-stakeholder approach.

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LDCs 40.  We underline the weak implementation of the Brussels Programme of Action for the Least Developed Countries (LDCs) for the Decade 2001–2010 and urge the LDCs development partners to undertake increased efforts and speedy measures with a view to meeting the goals and targets of the programme of action in a timely manner.

Social Development 41.  We reiterate our commitment to the implementation of the Copenhagen Declaration and Programme of Action which recommended actions to create, in a framework of sustained economic growth, sustainable development and international cooperation, a national and international environment favourable to social development, eradicating poverty, enhancing productive employment, achieving full employment and fostering social integration. We commit ourselves to the outcome of the 24th Special Session of the General Assembly, entitled ‘World Summit for Social Development and beyond: achieving social development for all in a globalising world’, held in Geneva, 26 June to 1 July 2000, which constituted a step forward for the promotion of social development for all at the national and international levels. In this regard, we underline the significance of the forthcoming 43rd Session of the Commission for Social Development, 9–18 February 2005, which will mark the tenth anniversary of the adoption of the Copenhagen Declaration and Programme of Action and we welcome the decision to convene a high-level plenary meeting during the forty-third session.

HIV/AIDS Pandemic 42.  We reaffirm the importance of health as indispensable for sustainable development, and in this regard, we remain deeply concerned that HIV/AIDS, tuberculosis, malaria and other communicable diseases continue to threaten the achievement of economic and social development goals of developing countries. We remain concerned over the scourge of the HIV/AIDS pandemic, and encourage the continued engagement by the international community in this matter, as manifested by the General Assembly High-Level Plenary meetings held on 22 September 2003 on New York. We welcome the successful outcome of the Fifteenth International Conference on HIV/AIDS held in Bangkok, Thailand on 11–16 July 2004. We welcome the Kathmandu Declaration adopted by the Ministerial Regional Conference on ‘Accelerating the Momentum to Fight Against HIV/AIDS I South Asia’ held from 3–4 February 2003 in Kathmandu, Nepal, in co-operation with the United Nations Children’s Fund (UNICEF) and UNAIDS. 43.  We welcome the Doha Declaration on the TRIPS Agreement and Public Health which clearly recognised that the TRIPS Agreement should be interpreted in a manner supportive of the right to protect public health, in particular, to promote access to medicine for all. We reiterate the need for greater international co-operation and flow of assistance, in particular from developed countries, in the fight against the pandemic, the need for according priority to multilateral approaches and also for directing adequate resources to the Global Fund for its augmentation and urgent disbursement to all countries in need.

Racism and Racial Discrimination 44.  We welcome the progress made in the implementation of the outcome of the World Conference against Racism, Racial Discrimination, Xenophobia and Related Intolerance (WCAR), held in Durban, South Africa, in September 2001 and call for the implementation of its objectives. We commend the international community for recognising that slavery and slave trade, including Trans-Atlantic slave trade, are crimes against humanity. The Conference also recognised that

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legacies of slavery, slave trade, colonialism, genocide and other forms of servitude have manifested themselves in poverty, underdevelopment, marginalisation, social exclusion and economic disparities. We also commend the Conference for having agreed on NEPAD as a framework within which amongst other, remedial measures for redressing the legacies of these practices could be addressed and call for the formulation of similar programmes of reparations to descendants of slaves in the African Diaspora. 45.  We express our commitment to the effective follow-up and implementation of the Durban Declarations and Programme of Action, adopted by the World Conference Against Racism, Racial Discrimination, Xenophobia and Related Intolerance. In this regard, we welcome the Commission on Human Rights Resolution 2002/68 and General Assembly 57/195 creating the necessary mechanisms and guiding the effective follow up to and implementation of the Durban Declaration and Programme of Action. We reiterate our opposition to all forms of racism, racial discrimination, xenophobia and related intolerance and express our deep concern on the resurgence of contemporary forms of racism, racial discrimination, xenophobia and related intolerance in various parts of the world. We also reiterate that all forms of racism, racial discrimination, xenophobia as well as foreign occupation and related intolerance, constitute serious violations of human rights, which should be rejected through all political and legal means. We condemn the misuse of the new communications technologies, including the Internet for inciting racial hatred and intolerance. 46.  We note with appreciation the establishment of appropriate mechanisms for the comprehensive follow-up to the WCAR and the effective implementation of the Durban Declaration and Programme of Action. We note that the process of the development of complementary international standards to strengthen and update international instruments against racism, racial discrimination, xenophobia and related intolerance, will commence in January 2005 in Geneva. We call on all the members of the United Nations to meet their commitment for the universal ratification of the International Convention on the Elimination of All Forms of Racial Discrimination (ICERD) by 2005.

Strengthening of the United Nations 47.  We attach high priority to the reform of the United Nations and we reiterate our willingness to actively participate in the negotiations for the strengthening of the Organization, so that it can efficiently respond to the current and future challenges including those concerns and interests of developing countries, which constitute the vast majority of its membership. We reaffirm that such negotiations should be aimed at strengthening multilateralism, providing the Organization with a substantive capacity to fully and effectively meet the purposes and principles enshrined in the Charter, and at consolidating its democratic character and its transparency in the discussion, and implementation of decisions of Member States. 48.  We note with deep concern that currently UNEP and UN-Habitat are over 90 per cent funded through extra-budgetary resources leading to unpredictable, unreliable and unstable funding and thus affecting their planning and programme delivery. We therefore call on the Secretary-General to significantly increase regular budget funding to the two programmes to enable them to discharge their mandates effectively. 49. We welcome efforts to modernize and expand facilities at the United Nations Office at Nairobi. However, we emphasize that there should be substantial programmatic efforts to bring in line the functional, institutional and financial arrangement of this Office with those of similar UN Offices at Geneva and Vienna. In addition, we call on UNEP and UN-Habitat to adhere to the headquarters rule to ensure full utilization of the administrative and conference facilities at Nairobi.

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Other major issues and developments 50.  We express our satisfaction with the launching of the preparatory process of the 2nd phase of the World Summit on the Information Society by the first preparatory meeting held in Hammamet, Tunisia, from 24 to 26 June 2004 and call for widest possible attendance and active participation in the Summit to be held in Tunis from 16 to 18 November 2005. We reiterate the importance of the active participation of all countries at the highest level as well as the relevant stakeholders in the Summit in order to reach a common understanding of the information society, contribute to bridging the digital divide and giving a chance for all to benefit from the opportunities thus offered. 51.  We take note with satisfaction of the establishment of the World Solidarity Fund in accordance with resolution 57/265 of the General Assembly, welcome the convening of the High-level Committee of the Fund and urge donor countries, international organizations, the private sector, relevant institutions, foundations and individuals to contribute to the Fund for the mobilization of the financial resources required for the immediate and effective operationalization of the World Solidarity Fund in order to allow it to contribute to the achievement of the Millennium Development Goals, particularly poverty eradication. 52.  We welcome the progress made by Venezuela to establish the International Humanitarian Trust Fund with a first deposit of US$30 million and call for support to this initiative to assist developing countries in their efforts to improve the welfare and standard of living of their people. 53.  We call upon the international community to provide the necessary assistance to landmine clearance operations, as well as to the rehabilitation of the victims and their social and economic integration into the landmine affected countries. We express concern over the residues of the Second World War in particular in the form of landmines, which cause human and material damage and obstruct development plans in some developing countries. We demand that the States responsible for laying the mines outside of their territories assume responsibility for the landmines, cooperate with the affected countries to get rid of them and to contribute defraying the cost of clearance and provide compensation for any ensuing losses and for reclaiming the affected areas for productive purposes. In this regard, we express support for the assistance in the demining efforts in the south of Lebanon and call on Israel to provide the United Nations with all the maps and information on the location of the landmines that it has planted in the south of Lebanon during its occupation which are hindering the development and rehabilitation of the south of Lebanon and preventing the agricultural exploitation of vast areas of rich agrarian land. 54.  We note that the First Review Conference of the Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti-Personnel Mines and on their Destruction, is scheduled to be held in Nairobi, Kenya from November 29 to December 3, 2004, and urge participation at the ‘Nairobi Summit 2004 on a Mine-Free World’ at the highest level. 55.  We firmly reject the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries, and reiterate the urgent need to eliminate them immediately. We emphasize that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. We, therefore, call on the international community neither to recognize these measures nor apply them. 56.  We call upon the Government of the United States of America to put an end to the economic, commercial and financial embargo against Cuba which, in addition to being unilateral and contrary to the UN Charter and international law, and to the principle of neighbourliness, causes huge material losses and economic damage to the people of Cuba. We urge strict compliance with the Resolutions 47/19, 48/16, 49/9, 50/10, 51/17, 52/10, 53/4, 54/21, 55/20, 56/9, 57/11 and 58/7 of the United Nations General Assembly and express deep concern over the widening of the extra-territorial nature of the embargo against Cuba and over continuous new legislative

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measures geared to intensifying it. We therefore express concern and reject the new measures recently implemented by the US government, aimed at tightening the embargo. Those measures constitute a violation of Cuba’s sovereignty and a massive violation of the rights of its people. 57.  We express deep concern over the imposing of unilateral sanctions against Syria by the United States Government and consider the so-called ‘Syria Accountability Act’, contrary to International Law and a violation of the purposes and principles of the United Nations Charter, and call upon the United States Government to null and void that act, and to resort to dialogue between the two countries based on respect and mutual interest for the best of the two nations and their peoples. 58. We reject the unilateral economic and financial sanctions imposed on the Sudan by the Government of the United States of America, and call for the immediate end of those sanctions. 59.  We also express our deep concern over the air attack against the Elshifa Pharmaceutical Factory in the Sudan on 20 August 1998, and its negative impact on that country’s economic and social development. We express our support and solidarity with the Sudan for its demand for a just and fair consideration of the matter by the United Nations on the basis of international law.

Situation in Palestine and the Middle East 60.  We recognize the situations, special needs and suffering of peoples living under foreign occupation, especially when exacerbated by expansionism and settler colonialism, and we note that such situations have been reflected in the outcome documents of the major United Nations conferences and summits in the economic and social fields. We reaffirm in this regard the permanent sovereignty of peoples living under foreign occupation over their natural resources. We remain specifically concerned over the continuing tragic and dangerous situation in the Occupied Palestinian Territory, including East Jerusalem, which has resulted in the further grave deterioration of the social and economic conditions of the Palestinian people. In this regard, we call for increased assistance and support to the Palestinian people until the realization of their national independence and their exercise of sovereignty in their State, Palestine, with East Jerusalem as its capital. 61.  We call for the immediate and complete cessation and end to settlement activities in the Occupied Palestinian Territory, including East Jerusalem, and in the occupied Syrian Golan. In this regard we express grave concern over Israel’s ongoing construction and expansion of illegal settlements as well as its unlawful construction of its expansionist Wall in the Occupied Palestinian Territory, including in and around East Jerusalem. This has involved the illegal confiscation and destruction of Palestinian land and resources, the destruction of the livelihood of tens of thousands of protected Palestinian civilians, and the illegal, de facto annexation of expansive areas of Palestinian land. 62.  We also call for the immediate Israeli withdrawal from the Occupied Palestinian Territory, including East Jerusalem, and the occupied Syrian Golan to the line of 4 June 1967 and the other Arab occupied territories. We reaffirm our support for the Middle East peace process started in Madrid in 1991, and aimed at achieving a comprehensive, just and lasting peace in the region, in accordance with Security Council resolutions 242 (1967), 338 (1973) and 425 (1978) and the principle of land for peace. In this context, we support the peace initiative adopted by the Arab Summit in Beirut in March 2002. 63.  We call for the full implementation of the Roadmap Peace Plan for the Israeli-Palestinian track by the concerned parties. 64.  We support the inalienable right of Lebanon to utilize its waters in accordance with international law and in particular to ensure the social and economic needs of its population in the liberated areas and villages. We also call on Israel to end its air violations of Lebanese sovereignty and other violations that severely damage the security situation, which is a critical factor in promoting the tourism industry and the economy.

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29.  Twenty-ninth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 22 September 2005 a.  Ministerial Statement 1. The Ministers of Foreign Affairs of the Group of 77 and China met in New  York on 22 September 2005 for the Twenty-Ninth Annual Meeting of Ministers, chaired by the Honourable K. D. Knight, MP, Minister of Foreign Affairs and Foreign Trade of Jamaica, in his capacity as Chairman of the Group of 77. 2.  The Ministers recalled the successful convening of the Second South Summit of the Group of 77 and China, held from 12 to 16 June 2005, in Doha, Qatar. They expressed their appreciation to the Government of Qatar for hosting the Summit and reaffirmed their commitment to work towards the full implementation of the Doha Declaration and the Doha Plan of Action, in particular the strengthening of South-South Cooperation, including through regional and interregional cooperation and called upon the international community, including the international financial institutions, to support the efforts of developing countries, inter alia, through triangular cooperation. 3.  The Ministers noted that arrangements for the establishment of the South Fund for Development and Humanitarian Assistance were being drafted by a national committee appointed by the State of Qatar and that a Report would be submitted to the Chairman of the Group no later than January 2006. 4.  The Ministers welcomed the convening of the Panel of Experts to elaborate a Development Platform for the South in Kingston, Jamaica, from 29 to 30 August 2005, as mandated by the Second South Summit. They took note of the progress report (Doc. G-77/AM(XVII)/2005/8) by the Chairman of the Group of 77 on the preparation of the Platform and agreed that the Chairman should continue his efforts in consultation with the South Centre and other relevant institutions on arrangements for completing the Platform. 5.  The Ministers reviewed developments in the international economic environment and activities undertaken in the context of the development agenda of the United Nations, in particular the 2005 World Summit Outcome and the Meeting on Financing for Development held during the High-level Plenary Meeting of the General Assembly on 14 September 2005. They reaffirmed their commitment to the MDGs and the other internationally agreed development goals, while reiterating the call for development partners to fulfil their obligations, especially in the context of the global partnership for development. 6.  The Ministers noted that while the development cluster of the 2005 World Summit Outcome fell short of the expectations of the G-77 and China, there were positive elements which could be used as a platform for actively promoting the implementation of commitments made in previous UN summits and conferences and decided that special efforts would be made during the current session of the General Assembly towards advancing these objectives. They drew particular attention to the decision of some donor countries to establish timetables for the attainment of the 0.7 per cent target of GNP for ODA and the emphasis placed on the need for a timely, effective, comprehensive and durable solution to the debt problems of developing countries. They expressed regret that there was not a more expansive treatment of trade issues and also expressed concern about the inadequate treatment of systemic inequities in international economic relations, in particular the slow progress in enhancing the voice and participation of developing countries in the Bretton Woods Institutions, which operate to the detriment of developing countries. The Ministers also drew attention to the importance of ensuring the full implementation of recom-

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mendations such as those for research and development in science and technology and in strengthening health systems in developing countries. 7.  The Ministers stressed the importance in the reform of the United Nations for a strong and empowered Economic and Social Council (ECOSOC) to promote implementation of the development agenda and promote international economic cooperation. 8.  The Ministers emphasized the importance of sending a strong political message to the WTO Ministerial Meeting in Hong Kong later this year for special attention to be paid to the development dimension of trade in all areas of the negotiations. 9.  The Ministers reiterated the significance of increased financing for development, including the need to meet the long-standing target of 0.7 per cent of GNP for ODA to developing countries, wider and deeper debt relief to developing countries, as well as ongoing efforts aimed at identifying additional, innovative sources of financing. In this regard, they welcomed the offer of the State of Qatar to host the follow-up Conference to the International Conference on Financing for Development in 2007. 10.  The Ministers welcomed the progress report by the Chairman of the Group of 77 on the G-77 Chamber of Commerce and Industry (G-77 CCI), contained in document G-77/AM(XVII)/2005/6/ REV.1 and approved its recommendations. The Ministers agreed that the outcome of the process would be submitted by the Chairman of the Group of 77 to the Annual Ministerial Meeting of the Group in September 2006 for consideration and appropriate action. 11.  The Ministers approved the Report of the Twentieth Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/TCDC (Doc.G-77/AM(XVII/2005/2), which was presented in accordance with the guidelines for the utilisation of the PGTF and endorsed its recommendations. The Ministers commended the Chairman of the Committee of Experts for his continued commitment and expressed their satisfaction with the results achieved by the PGTF and invited member states to participate in the UN Pledging Conference to be held in New York on 11 November 2005. 12.  The Ministers approved the Financial Statement of the ECDC Account of the Group of 77 (Doc.G-77/AM(XVII)/2005/3) for 1 January – 31 August 2005, as presented by the Chairman of the Group of 77 and urged those member states that have not yet done so to make special efforts to pay their outstanding contributions. 13.  The Ministers welcomed the election of the Republic of South Africa to the Chairmanship of the Group of 77 in 2006.

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30.  Thirtieth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 22 September 2006 a.  Ministerial Statement 1.  The Ministers of Foreign Affairs of the Member States of the Group of 77 and China met in New York, at the United Nations Headquarters, on 22 September 2006 on the occasion of their 30th Annual Meeting. 2.  The Ministers stressed the importance of the implementation of the Outcome of the Second South Summit held in Doha, State of Qatar, from 12 to 16 June 2005. They committed themselves to the effective implementation of the Doha Plan of action as well as the outcomes of various follow-up meetings and conferences convened by the Group of 77 since the First South Summit held in Havana, Cuba from 10–14 April 2000. 3.  The Ministers reaffirmed the outcome of the Special Ministerial Meeting of the Group of 77 and China convened in Putrajaya, Malaysia on 29 May 2006 regarding the measures to reform and strengthen the United Nations, including its Secretariat, and reiterated the common position reflected in the G77 Ministerial Statement adopted by the Special Ministerial Meeting. The Ministers stressed the importance of ensuring that the interests of developing countries are reflected in the outcome of the negotiations to strengthen the United Nations. 4.  The Ministers expressed serious concern over the suspension of negotiations which jeopardizes the delivery on the development promises of the Doha Round for developing countries and call upon the developed countries to demonstrate flexibility and political will necessary for breaking the current impasse in the negotiations. They recognized the mandates contained in the Doha Ministerial Declaration, the WTO General Council decision of August 1, 2004 and the Hong Kong Ministerial Declaration. The Ministers called for a prompt resumption of the negotiations to place the needs and interests of developing countries, and in particular least developed countries, at the heart of the Doha Work Programme, which called for the successful and timely completion of the Doha round of trade negotiations with the fullest realization of the development dimensions of the Doha Work Programme. 5.  The Ministers stressed the importance of facilitating the accession of all developing countries, in particular the LDCs, that apply for membership in the World Trade Organisation (WTO), consistent with its criteria and taking into account their development level, bearing in mind paragraph 21 of General Assembly resolution 55/182 and subsequent developments, and called for the effective and faithful application of the WTO guidelines on accession by the LDCs. 6.  The Ministers stressed the urgent need for comprehensive reform of the international financial architecture towards enhancing the voice and participation of developing countries and welcomed the Memorandum of Understanding between the Chairman of G-77 and the Chairman of G-24 signed in Singapore on 14 September 2006 regarding, inter alia, the need for the effective voice, representation and participation of developing countries in the international decision making process, in particular in the international financial institutions. 7.  The Ministers reaffirmed their commitment to strengthen the role of United Nations in the area of development and poverty eradication. In this regard, they emphasized the need to strengthen ECOSOC and the importance of the operationalization of its new functions as mandated by the 2005 World Summit. They called for early conclusion of General Assembly consultations on the ECOSOC strengthening resolution and underscored the need for allocating additional resources for these new functions.

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8.  The Ministers reiterated the significance of increased financing for development, including the need to meet the long-standing target of 0.7 per cent of GNP for ODA to developing countries, wider and deeper debt relief to developing countries, as well as ongoing efforts aimed at identifying additional, innovative sources of financing. 9.  The Ministers called upon developed countries to ensure that information on their efforts to increase the volume of official development assistance is made available to the relevant United Nations intergovernmental bodies, including through making best use of sources such as the Development Assistance Committee of the Organization for Economic Cooperation and Development. 10.  The Ministers welcomed the holding of the Meeting of Ministers of Science and Technology of the Member States of the Group of 77 held in Angra dos Reis, (Rio de Janeiro), Brazil on the 3rd September 2006, and in this regard commended the Government of Brazil for organizing the meeting. They also welcomed the decision to launch the Consortium on Science, Technology and Innovation for the South (COSTIS) in accordance with the mandate of the Second South Summit (paragraph 35 of Doha Plan of Action). 11.  The Ministers also welcomed the holding of the 2nd Experts Meeting of the Action Committee on Raw Materials (ACRM) in Abuja, Nigeria from 1st to 3rd August 2006 and stressed the need for action to facilitate the realization of the objectives of the ACRM. 12. The Ministers further welcomed the ongoing preparations for the Ministerial Forum on Water Resources Management to be held in Muscat, (Sultanate of Oman) in the first semester of 2007 in accordance with the mandate of the Marrakech Framework for Implementation of South-South Cooperation (paragraph 26). In this context, the Ministers warmly welcomed the generous offer by the Government of the Sultanate of Oman to host this forum. 13.  The Ministers stressed the importance of the full implementation of the Almaty Programme of Action and in this regard noted the convening of the First Summit Meeting of LLDCs on 14th September 2006 in Havana, the Republic of Cuba. 14.  The Ministers stressed the full and timely implementation of the Cotonou Strategy for the Further Implementation of the Brussels Plan of Action for the Least Developed Countries for the Decade 2001–2010. 15.  The Ministers welcomed the offer of the State of Qatar to host the first follow-up Conference to review the implementation of the outcome of the International Conference on Financing for Development, which will be held in Doha between 2008 and 2009. 16.  The Ministers welcomed the convening, in New York, on 14 and 15 September 2006, of the High-Level Dialogue on International Migration and Development, which provided an opportunity for discussing the multidimensional aspects of international migration and development. They called for an appropriate follow-up of the High-Level Dialogue within the United Nations. 17.  The Ministers reiterated the urgent need to further strengthen the Special Unit for South-South Cooperation in accordance with the General Assembly resolution 60/212 as the U.N System coordinating body for South-South Cooperation. They expressed their appreciation for the ongoing joint efforts by the Group of 77 and the Special Unit for South-South Cooperation to revitalize South-South cooperation. 18.  The Ministers welcomed the report by the Chairman of the Group of 77 on the G-77 Chamber of Commerce and Industry (G-77CCI), and approved its recommendations as contained in paragraphs 21 and 22 (document G-77/AM(XVIII)/2006/3). 19. The Ministers stressed the urgency of the operationalization of the South Fund for Development and Humanitarian Assistance as reiterated in paragraph 3 of their Ministerial Statement adopted on 22 September 2005. They welcomed the substantial contribution made by the State of Qatar and the generous contributions by India and the People’s Republic of China.

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They requested the Chairman of the Group of 77 to undertake urgent consultations to submit for consideration by the Group before the end of 2006 the proposed guidelines of operation of the South Fund for Development and Humanitarian Assistance. 20.  The Ministers warmly welcomed the generous contribution by the esteemed Government of the Sultanate of Oman of 1 Million US dollars to the South Summit Special Fund established by the First South Summit in order to assist the full implementation and follow-up of the outcome of the South Summits in accordance with paragraph 104 of Doha Plan of Action. They also invited other Member States to contribute to the Special Fund as decided by the Second South Summit. 21.  The Ministers approved the Report of the Twenty-first Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/TCDC (PGTF) contained in document G-77/ AM(XVIII)/2006/2 and endorsed its recommendations. The Ministers commended the Chairman of the PGTF Committee of Experts for his continued commitment and expressed their satisfaction with the results achieved by the PGTF and invited Member States to participate in the UN Pledging Conference to be held in New York on 7 November 2006. The Ministers empowered the Chairman of the PGTF Committee of Experts to finalize and sign the agreement with IFAD as well as other similar agreements and to this end appointed him as Chairman of PGTF. 22.  The Ministers approved the Financial Statement of the ECDC Account of the Group of 77 contained in document G-77/AM(XVIII)/2006/8, as presented by the Chairman of the Group of 77 and urged those Member States that have not yet done so to make special efforts to pay their outstanding contributions. 23.  The Ministers firmly rejected the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries, and reiterate the urgent need to eliminate them immediately. They emphasized that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. They, therefore, called on the international community neither to recognize these measures nor apply them. 24.  The Ministers condemned the Israeli aggression launched against Lebanon. They remained deeply concerned about the economic, humanitarian, social and environmental consequences of the Israeli aggression. They considered the systematic and widespread destruction of Lebanon’s towns, villages, cities, and national infrastructure; compounded with the destruction of the economy’s productive sectors, amounted to billions of dollars. The forgone gains and the opportunity cost in terms of development make this amount even higher. They, furthermore, called upon the international community to provide the necessary assistance to the Lebanese government and to the Lebanese people to help them achieve the early recovery and the subsequent rehabilitation and reconstruction of Lebanon. 25.  The Ministers also called for the immediate Israeli withdrawal from the Occupied Palestinian Territory, including East Jerusalem, and the occupied Syrian Golan to the line of 4 June 1967 and the other Arab occupied territories. They reaffirmed their support for the Middle East peace process started in Madrid in 1991, and aimed at achieving a comprehensive, just and lasting peace in the region, in accordance with Security Council resolutions 242(1967), 338(1973) and 425(1978) and the principle of land for peace. In this context, we support the peace initiative adopted by the Arab Summit in Beirut in March 2002. 26.  The Ministers condemned the ongoing and intensifying Israeli military campaign against the Palestinian people, which has resulted in the loss of civilian lives and the vast destruction of Palestinian properties, infrastructure and agricultural lands. The Ministers reiterated their deep concern at the intensifying hardships being faced by the Palestinian people as the result of the Israeli aggression, as well as at the increasing financial and political isolation being imposed on the Palestinian Authority by some members of the international community in the aftermath of

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the Palestinian legislative elections held in January 2006. They called upon Israel, the occupying Power, to refrain from withholding tax revenue transfers due to the Palestinian Authority, which is deepening the financial crisis of the Authority, and they also called on Israel to repair the damages caused to the Palestinian properties and infrastructure. They called upon the international community to provide much needed assistance to the Palestinian people. 27.  The Ministers expressed their deep appreciation to South Africa for the excellent work and tireless efforts as Chair country of the Group of 77. 28.  The Ministers welcomed the election of Pakistan to the Chairmanship of the Group of 77 in 2007. .

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31.  Thirty-First Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 27 September 2007 a.  Ministerial Declaration 1.  The Ministers of Foreign Affairs of the Group of 77 and China, guided by the principles and objectives of the United Nations Charter and by the provisions of the Havana Declaration and Plan of Action and the Doha Declaration and Plan of Action met on the occasion of the Thirty-first Annual Meeting at United Nations Headquarters in New York on 27 September 2007, reviewed the developments in the international economic situation and the activities undertaken in the context of the development agenda of the United Nations and adopted the following declaration: 2.  The Ministers remained fully convinced of the imperative to continue to act in solidarity and unity for a peaceful and prosperous world that responds to their aspirations. They reaffirmed their full commitment to the principles and objectives of the Group of 77 and China, and to protect and promote their collective interests through genuine international cooperation for development. 3.  The Ministers examined the diverse challenges faced by Developing countries and noted with grave concern that the international economic environment continues to be unfavourable for the developing world. The Ministers expressed their concern about the expected deceleration in the world economy in 2007 and the vulnerability of developing countries to any slow down in the global economy and to the volatility of the international commodity and financial markets. The Ministers also noted that widening global macroeconomic imbalances and inequities in global economic governance have kept many of the world’s people and nations inside the vicious circle of poverty. 4.  The Ministers reaffirmed that economic and social development are the centerpiece of the objectives and operational activities of the UN. The achievement of the Internationally Agreed Development Goals (IADG), including the Millennium Development Goals (MDGs), should continue to be the over-arching framework of the development activities of the UN system. The Ministers reiterated the need to fully implement all agreed commitments from all the major United Nations Summits and Conferences in the economic, social and related fields. The Ministers further emphasized the need for a strengthened global partnership for development, based on the recognition of national leadership and ownership of development strategies. 5.  The Ministers noted with deep concern that the lack of effective implementation of the internationally agreed development goals, including the MDGs, remains the Achilles Heel of the development agenda and stressed that securing the effective and full implementation of the agreed goals and commitments must be the highest priority. Building on General Assembly resolution 60/265 the United Nations should develop an intergovernmental consensus for the establishment of effective mechanisms to review and follow-up the implementation of MDGs and IADGs. 6.  The Ministers welcomed the operationalization by the General Assembly of resolution 61/16 on the strengthening of ECOSOC and expressed their satisfaction with the outcome of the Annual Ministerial Review and the launch of the Development Cooperation Forum during the substantive session of the Economic and Social Council held in Geneva from 1 to 28 July 2007. They took note of the presentations made by six developing countries in the first Annual Ministerial Review and invited the developed countries to make presentations on their MDGs strategies, particularly on Goal 8, during the Annual Ministerial Review 2008.

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7.  The Ministers reiterated the significance of increased financing for development, including the need to meet the long-standing target of 0.7 per cent of GNP for ODA to developing countries. 8.  The Ministers called upon developed countries to ensure that information on their efforts to increase the volume of Official Development Assistance is made available to the relevant United Nations intergovernmental bodies. 9.  The Ministers renewed the commitment to continuing to discuss innovative mechanisms for financing for development and acknowledged the progress made in this area and the value of developing innovative sources of financing from various sources on public, private, domestic and external bases in order to increase and supplement traditional sources of financing and invited countries to consider contributing in this regard. 10.  The Ministers reiterated the urgent need for the international community to adopt an effective, equitable, durable and development-oriented solution to the debt problems of developing countries, particularly through total debt cancellation and increased concessional financial flows. 11.  The Ministers reaffirmed the high priority that developing countries attach to the Financing for Development process as a valuable opportunity to secure support for our common vision and views for addressing global financial and trade constraints faced by most developing countries. The Ministers welcomed the Follow-up International Conference on Financing for Development to Review the Implementation of the Monterrey Consensus, scheduled to be held in Doha in the Second half of 2008. The Ministers reiterated their expectation that the Review Conference should assess progress made, reaffirm goals and commitments, share best practices and lessons learned, and identify obstacles and constraints encountered, actions and initiatives to overcome them and important measures for further implementation, as well as new challenges and emerging issues. They urged the Review conference to follow-up the implementation of the outcome of the first International Conference on Financing Development, held in Monterrey and adopt necessary measures for the strengthening of the review and follow-up mechanism for the realization of the commitments made. 12.  The Ministers stressed the commitment contained in the Monterrey Consensus to broaden and strengthen the voice and participation of developing countries in international economic decision making and norm setting and to that end stressed the importance of continuing efforts to reform the international financial architecture so as to enhance the effective participation of these countries in international decision making. They noted that enhancing the voice and participation of developing countries in the Bretton Woods Institutions remains a continuous concern, and in this regard called for further and effective progress. 13.  The Ministers called for the reform of the global financial architecture and global economic governance to ensure that global policies and processes in finance, trade, investment and technology are development-oriented and fully address the needs and concerns of developing countries. 14.  The Ministers reiterated that developing countries should have the required policy space to formulate their development strategies in keeping with national development policies, strategies and priorities to reflect national priorities and the particular circumstances of each country. 15.  The Ministers expressed concern over the stalemate in the Doha Round of trade negotiations which jeopardizes the delivery of development promises for the developing countries. The Ministers called on developed countries to demonstrate the flexibility and political will required to break the current impasse in the negotiations. They recognized the mandates contained in the Doha Ministerial Declaration, the WTO General Council decision of August 1, 2004 and the Hong Kong Ministerial Declaration to meaningfully integrate the developing countries into the multilateral trading system and called for the early resumption and timely completion of the

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Doha Round of trade negotiations, with the fullest realization of the development dimensions of the Doha Work Programme. 16.  The Ministers stressed the importance of facilitating the accession of all developing countries, in particular the LDCs that apply for membership in the World Trade Organization (WTO), without political impediments, in an expeditious and transparent manner and with full observance of the principles of special and differential treatment for developing countries. 17.  The Ministers stressed the need to strengthen UNCTAD, the focal point within the United Nations for the integrated treatment of trade and development issues, as a vital component of the international economic system, to fully implement its mandate for policy analysis and policy advice, its indispensable role for forging consensus building on development matters, and its activities in technical assistance and capacity building. The Ministers looked forward to the convening of the UNCTAD XII from 20 to 25 April 2008 in Accra, Ghana. 18.  The Ministers emphasized that it is essential to adopt appropriate measures to overcome the technological gap between developing and developed countries and to work towards arrangements that facilitate the process of technology transfer. In this regard, the Ministers noted with concern the restraints imposed on access to technology, especially advanced technologies and certain aspects of TRIPS which are adversely affecting the developmental needs of developing countries, particularly in sectors such as health and education. 19. The Ministers firmly rejected the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries, and reiterate the urgent need to eliminate them immediately. They emphasized that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. They, therefore, called on the international community neither to recognize these measures nor apply them. 20.  The Ministers recognized the special needs of Africa, the only continent currently not on track to achieve the Internationally Agreed Development Goals including the Millennium Development Goals, and called for the full and timely implementation of all commitments made so as to enable African countries to enter the mainstream of the world economy. 21.  The Ministers reaffirmed the special needs of and underscored the need to address the challenges faced by Least Developed Countries, Landlocked Developing Countries, and Small Island Developing States. In this regard, the Ministers urged the international community and the UN system to address those needs and vulnerabilities and take urgent and concrete action to fulfill their commitments, through the full and effective implementation of the Brussels Programme of Action for the Least Developed Countries, for the Decade 2001–2010, the Almaty Programme of Action, the Barbados Programme of Action and the Mauritius Strategy for the Further Implementation of the Programme of Action for the Sustainable Development of Small Island Developing States. 22.  The Ministers also reaffirmed the special needs and challenges faced by countries emerging from conflicts. In this regard, the Ministers urged the international community and the UN system to address these needs and challenges and take urgent and concrete action in the area of financial assistance and technical support and infrastructure development, in order to achieve the internationally agreed development goals including the MDGs. 23.  The Ministers also called for continued support for the development efforts of low-income developing countries in addressing their social, economic and developmental needs including through the provision of technical, financial and other forms of assistance, promotion of and strengthening of partnerships and cooperation arrangements at all levels. 24.  The Ministers called for continued support for the development efforts of middle-income developing countries, including through targeted and substantial technical assistance, and the

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promotion of new partnerships and cooperation arrangements, including bilateral arrangements, as well as by working in competent multilateral, regional and international fora, in support of national development strategies. 25.  The Ministers expressed their concern over the increased frequency and scale of natural disasters in recent years which have resulted in massive loss of life and long-term negative social, economic and environmental consequences for countries, particularly developing countries. They called upon the international community, particularly developed countries and the relevant international organizations to increase their assistance to affected States, including by supporting efforts towards enhancing their national and regional capacities for implementation of plans and strategies for preparedness, rapid response, recovery and development. The Ministers also reiterated that humanitarian assistance should be rendered upon the request of the affected States, and reaffirmed that in this regard the Guiding Principles for the provision of humanitarian assistance, as contained in the annex to General Assembly resolution 46/182, must be respected. 26.  The Ministers recognized that Climate Change poses serious risks and challenges particularly to developing countries and therefore demanded urgent global action and response. In this regard, the Ministers reaffirmed the Rio Principles, in particular Principle 7 on the Common but Differentiated Responsibilities. All three pillars of sustainable development, namely economic development, social development and environmental protection, should be addressed in an integrated, coordinated, interdependent and mutually reinforcing manner. The ministers also recognized the need to identify new, additional and predictable resources, as well as additional innovative resources for financing for development, as a special assistance to those developing countries adversely affected by climate change. 27.  The Ministers looked forward to the 13th Session of the Conference of the Parties to the United Nations Conventions on Climate Change and the Third Session of the Meeting of the Parties to the Kyoto Protocol, to be held in Bali, Indonesia, in December 2007. 28.  The Ministers also welcomed the initiative of the President of the 61st session of the General Assembly to convene a thematic debate on climate change from 31st July to 2 August 2007 and the initiative of the Secretary-General to convene a High-level event on climate change on 24 September 2007. 29.  The Ministers recognized further the challenge posed by desertification and land degradation and resolve to support and strengthen the implementation of the United Nations Convention to Combat Desertification in those countries experiencing serious drought and/or desertification, particularly in Africa to address causes of desertification and land degradation, as well as poverty resulting from land degradation. The Ministers called upon the international community to increase its assistance to such countries by providing additional and predictable financial resources as well as technical support in order to combat desertification and land degradation. 30.  The Ministers recalled the discussions that took place during the High Level Dialogue on Migration held at the UN Headquarters in September 2006 and took note of the First Global Forum on Migration and Development held in Brussels in July 2007. The Ministers welcomed the initiative of the Government of the Philippines to host the Second Global Forum on Migration and Development to be held in Manila in October 2008 and strongly urged all countries to strengthen the protection of the human rights of all migrants and reiterated their determination to continue to address the challenges and opportunities that migration presents to countries of origin, transit and destination. 31.  The Ministers expressed their grave concern at the continuing devastation caused by the HIV/AIDS pandemic, particularly in developing countries and call for the full implementation of the Declaration of Commitment on HIV/AIDS ‘Global Crisis—Global Action’ adopted at the twenty-sixth special session of the General Assembly in 2001 and the Political

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Declaration on HIV/AIDS adopted at the General Assembly High-Level Meeting on HIV/ AIDS in 2006. 32.  The Ministers emphasized the critical importance of both national and international efforts to achieve universal access to prevention, treatment and care, stressed the need for funding at the international level to help developing countries overcome lack of resources and reaffirmed the right of countries to employ the flexibilities outlined in the World Trade Organization’s Agreement on Trade Related Aspects of Intellectual Property Rights to promote access to medicines for all including the production of generic antiretroviral drugs and other essential drugs for AIDS-related infections. 33.  The Ministers reaffirmed their strong support to the United Nations, and to all collective efforts aiming at enhancing its ability to fully implement its mandates and to ensure the effective delivery of all its programmes, in particular in the social and economic development field. The Ministers firmly believed that the legitimacy and viability of any reform measures depended ultimately on the approval of Member States of the United Nations. The Ministers emphasized that measures to reform the United Nations should respond to the unique intergovernmental, multilateral and international character of the United Nations. 34.  The Ministers reaffirmed the importance of the Triennial Comprehensive Policy Review of operational activities, through which the General Assembly establishes key system wide policy orientation for the development cooperation and country-level modalities of the UN system. The Ministers also reaffirmed that the TCPR should determine the course of action for UN operational activities and should not be superseded or preempted by other processes. 35.  The Ministers firmly rejected attempts to politicize the operational activities for development of the UN system and underscored the importance of the principles of neutrality and impartiality in the provision of development assistance. 36.  The Ministers affirmed their willingness to remain constructively engaged in the ongoing intergovernmental integrated consideration of the report of the High-Level Panel on the United Nations system wide coherence and the report of the Secretary General on its recommendations. 37.  The Ministers affirmed that the sovereign equality of Member States, as enshrined in the Charter of the United Nations, must be respected, including throughout the reform processes, irrespective of the contributions that individual Member States make to the budget of the Organization. Governance arrangements and decision making process exercised through the General Assembly, its main committees and subsidiary bodies are the sole responsibility of Member States in accordance with the United Nations Charter. They upheld the role of Member States, through the relevant Main Committees of the General Assembly, in the consideration of budgetary and administrative matters. 38.  The Ministers strongly supported the oversight role performed by the General Assembly, as well as its relevant intergovernmental and expert bodies, in the planning, programming, budgeting, monitoring and evaluation. 39.  The Ministers reaffirmed that the financial stability of the United Nations should not be jeopardized by arbitrary measures. The Ministers stressed that any efforts to use financial contributions to push for the adoption of certain proposals are counterproductive and violate the obligations of Member States to provide resources for the Organization, as enshrined in its Charter, and in accordance with the principle of capacity to pay. 40.  The Ministers noted with deep concern that the United Nations Development Account represents only 0.37 per cent of the overall proposed regular budget for the biennium 2008–2009 and the Ministers therefore decided to increase it significantly during the 62nd session of the General Assembly and thereon.

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41.  The Ministers stressed the importance of ensuring that the Secretariat meets the highest standards of accountability, transparency, integrity and ethical conduct. The Ministers therefore urged the Secretary-General as a matter of priority to define accountability in the Organization, establish clear accountability mechanisms to the General Assembly, and proposed parameters for the application of accountability and instruments for its rigorous enforcement. 42.  The Ministers stressed the need for transparency and clear mechanisms in the recruitment process and to increase the representation of developing countries in the Secretariat, in particular at the senior level with due respect to equitable geographical distribution. 43.  The Ministers recognized the increased relevance of South-South Cooperation in the current international economic environment and reiterated their support for South-South Cooperation both as a strategy in support of the development efforts of developing countries and as a means of enhancing the participation of developing countries in the emerging global economy. The Ministers reaffirmed their commitments to fully implement the Havana Programme of Action, the Marrakech Plan of Implementation of South-South cooperation and the Doha Plan of Action that, taken together represent a comprehensive framework for intensified cooperation among developing countries. 44.  The Ministers reaffirmed the importance of strengthening South-South Cooperation in the United Nations system, including in the funds, programmes and specialized agencies involved in South-South Cooperation and in this regard, the Ministers supported the strengthening of the Special Unit for South-South Cooperation and called on the UNDP to provide the Special Unit for South-South Cooperation with necessary support to enable it to fulfill its mandate. 45.  The Ministers stressed that South-South Cooperation is not a substitute for North-South Cooperation and reiterated that South-South cooperation is an imperative to complement North-South Cooperation in order to contribute to the achievement of the Internationally Agreed Development Goals, including the Millennium Development Goals. The Ministers recognized that it is also an effective tool to maintain and strengthen solidarity and unity in order to enhance the welfare of developing countries. 46. The Ministers welcomed the recommendation made by the High Level Committee on South-South Cooperation held in New York from 29 May to 1st June 2007, to convene a United Nations Conference on South-South cooperation in commemoration of the 30th anniversary of the adoption of the Buenos Aires Plan of Action, and in this regard the Ministers welcomed the generous offer made by the Government of Argentina to host the Conference. 47. The Ministers looked forward to the early operationalization of the South Fund for Humanitarian Assistance and Development and called for greater efforts in this regard. 48.  The Ministers noted the efforts for the elaboration of the Development Platform of the South in accordance with the relevant mandate of the Second South Summit and welcomed the convening of the Second Meeting of Experts on the Development Platform to be held in New York from 18 to 19 October 2007. 49.  The Ministers welcomed the ongoing preparations for the Ministerial Forum on Water to be held in Muscat, (Sultanate of Oman) from 22 to 24 March 2008. 50.  The Ministers welcomed the generous offer by the Government of the Dominican Republic to host a Ministerial Forum on Sports, Culture and Development in 2008. 51. The Ministers approved the Report of the Twenty-second Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/TCDC (PGTF) contained in document G-77/AM(XIX)/2007/2 and endorsed its recommendations. The Ministers commended the Chairman of the PGTF for his continued commitment and expressed their satisfaction with the results achieved by the PGTF and invited Member States to participate in the UN Pledging Conference to be held in New York on 12 November 2007.

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52.  The Ministers approved the Financial Statement of the ECDC Account of the Group of 77 contained in document G-77/AM(XIX)/2007/4, as presented by the Chairman of the Group of 77 and urged those Member States that have not yet done so to make special efforts to pay their outstanding contributions. 53.  The Ministers reiterated their call for the immediate withdrawal of Israel, the occupying Power, from the Occupied Palestinian Territory, including East Jerusalem, and the occupied Syrian Golan to the line of 4 June 1967 and from other occupied Arab territories. They reaffirmed their support for the Middle East peace process begun in Madrid in 1991 and aimed at achieving a comprehensive, just and lasting peace in the region, in accordance with Security Council resolutions 242 (1967), 338 (1973) and 425 (1978) and the principle of land for peace. In this context, they also reaffirmed their support for the Arab Peace Initiative, renewed by the Arab Summit in Riyadh in March 2007 and for all the positive efforts being exerted in this regard. 54. The Ministers condemned the ongoing Israeli military campaign against the Palestinian people in Occupied Palestinian Territory, including East Jerusalem, which has resulted in the loss of civilian lives and the vast destruction of Palestinian properties, infrastructure and agricultural lands. The Ministers expressed deep concern about the further decline of the social and economic conditions of the Palestinian people over the past year particularly in the Gaza strip, as a result of the illegal Israeli practices including its illegitimate construction of settlements, wall and bypass roads. They called upon Israel, the occupying Power, to cease immediately all illegal measures impairing the Palestinian economy, including in particular restrictions on the movement of persons and goods throughout and into and out of the Occupied Territory and to release all remaining tax revenues due to the Palestinian Authority and to make reparation for all damages caused to Palestinian properties, institutions and infrastructure. They reiterated their call upon the international community to provide much-needed assistance to the Palestinian people during this critical period. 55.  The Ministers expressed support for the assistance in the demining efforts and cluster bombs clearance in the south of Lebanon and called on Israel to provide the United Nations with all the maps and information on the location of the landmines that it has planted in the south of Lebanon during its occupation and its 2006 aggression against Lebanon, as well as to provide information on the cluster bomb strike locations, which are hindering the development and rehabilitation of the south of Lebanon and preventing the agricultural exploitation of vast areas of rich agrarian land. The ministers request Israel to assume responsibility for the landmines laying and cluster bombs usage in the south of Lebanon and assume defraying the cost of clearance as well as providing compensation for Lebanon for any ensuing losses and for reclaiming the affected areas in the south of Lebanon for productive purposes. 56.  The Ministers supported the inalienable right of Lebanon to utilize its waters in accordance with international law, in particular to ensure the social and economic needs of its population in the liberated areas and villages. They called on Israel to end its air violations of Lebanese sovereignty and other violation that severely damage the security situation which is a critical factor in promoting the tourism industry and the economy. The Ministers emphasized Lebanon’s concerns resulting from the continued detention of Lebanese prisoners and detainees by Israel and the related security risks that could set back the development efforts of Lebanon. 57.  The Ministers expressed their deep appreciation to Pakistan for the excellent work and tireless efforts as the Chair country of the Group of 77 and China. 58.  The Ministers welcomed the election of Antigua and Barbuda to the Chairmanship of the Group of 77 and China in 2008.

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32.  Thirty-second Annual Meeting of Ministers for Foreign Affairs of the Group of 77, New York, 26 September 2008 a.  Ministerial Declaration The Ministers of Foreign Affairs of the Group of 77 and China met in New York, at the United Nations Headquarters, on 26 September 2008 on the occasion of their Thirty-second Annual Meeting. The Ministers reviewed the progress of the world economy and the challenges in economic development and social progress of developing countries, and adopted the following Declaration: 1.  The Ministers, after reviewing the world economic situation, recognized that while some developing countries are making progress, a majority of countries are still confronted by many shared and common problems and great challenges. The international community is challenged by multiple inter-related and mutually reinforcing crises, driven significantly by a severely unbalanced international economic system including a global food crisis, a financial crisis, an energy crisis, a climate crisis and environment crisis as well as a crisis of confidence in some international institutions. 2.  In this regard, the Ministers noted with deep concern that the lack of effective implementation of the internationally agreed development goals including the MDGs remains the Achilles Heel of the UN development agenda and stressed that securing the effective and full implementation of the agreed goals and commitments must be of the highest priority. The Ministers urge development partners to demonstrate a similar alacrity in implementing their part of the commitments whether in external debt, development assistance, financing, trade, technology transfer and other areas of cooperation. Building on General Assembly resolution 60/265, the United Nations should develop an intergovernmental consensus for the establishment of effective mechanisms to review and follow up the implementation of MDGs and IADGs. 3.  The Minister reaffirmed that hunger constitutes a violation of human dignity and called for urgent measures at the national, regional and international levels for its elimination. They also reaffirmed the right of everyone to have access to safe and nutritious food consistent with the right to food and the fundamental right of everyone to be free from hunger, so as to be able to fully develop and maintain his or her physical and mental capacities. 4. The Ministers reaffirmed that economic and social development is the centerpiece of the objectives and operational activities of the United Nations. The achievement of the IADGs including the MDGs should continue to be the over-arching framework of the development activities of the UN system. The Ministers reiterated the need to fully implement all agreed commitments from all the major United Nations summits and conferences in the economic, social and related fields. They further emphasized the need for a strengthened global partnership for development, based on the recognition of national leadership and ownership of development strategies. 5.  The Ministers expressed their deep concern at the declining trend of ODA level since 2006. They observed that ODA has fallen by 5 per cent in real terms for 2006 and by a further 8.4 per cent in real terms in 2007 and noted that if current trends persist, it would seriously hurt developing countries. The Ministers reiterated the significance of increased financing for development including the need to meet the long-standing target of 0.7 per cent of GNP for ODA to developing countries and 0.2 per cent of GNP to the least developed countries by 2010. 6.  The Ministers stressed the need to provide ODA as a direct budgetary support and without any conditionality. International support measures should also aim at improving the quality of

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development aid, including its sectoral balance, with greater emphasis on building productive capacities in developing countries. 7.  In addition, the Ministers recalled that the increase in ODA promised to Africa by the G8 at Gleneagles which amounted to an additional US $ 25 billion per year by 2010 has not yet materialized. They strongly recommended for much larger and sustained increases in ODA to reach the target of $50 billion increase in real terms which was the goal set at the 2005 G-8 Summit in Gleneagles. 8.  The Ministers reiterated the urgent need for the international community to adopt an effective, equitable, durable and development-oriented solution to the debt problems of developing countries, particularly LDCs, including through total debt cancellation, without discrimination or conditionalities, and increased concessional financial flows. 9.  The Ministers expressed their serious concern over the failure in July of the talks of the WTO Doha Round that may preclude finishing negotiations this year and considered it a serious setback for the Doha Round and called upon the developed countries to demonstrate the flexibility and the political will necessary for breaking the current impasse in the negotiations, and they reaffirmed the need to strictly adhere to the development mandate of the Doha Ministerial Declaration, the decision of the General Council of the World Trade Organization of 1 August 2004 and the Hong Kong Ministerial Declaration, which place development at the heart of the multilateral trading system. 10.  The Ministers reiterated that a successful Doha Round is crucial for sustaining strong trade growth and making the sharing of its benefits more inclusive for developing countries. They stressed that agriculture must continue to be at the centre of the negotiations. They reiterated their call for the elimination of trade distorting subsidies by developed countries. It will provide a window for opportunities to move on agricultural trade reforms to reduce the food prices impact on many developing countries especially the poorest among them. The Ministers emphasized the need for aid for trade to strengthen trade logistics and improve developing countries competitiveness and ability to benefit from trade opportunities and also emphasized that Aid for Trade should be adequately funded through additional and predictable resources, to ensure that the needs of all developing countries, particularly LDCs, are met. 11.  The Ministers stressed the importance of facilitating the accession of all developing countries, in particular the LDCs that apply for membership in the World Trade Organization (WTO), without political impediments, in an expeditious and transparent manner and with full observance of the principles of special and differential treatment for developing countries. 12.  The Ministers welcomed the outcome of UNCTAD 12, in particular ‘The Accra Accord’ which reiterated UNCTAD’s importance as the focal point within the UN for the integrated treatment of trade and development and the interrelated issues of finance, investment, technology and sustainable development and the need to fully implement its mandate for policy analysis and policy advice which is indispensable for forging consensus building on development. 13.  The Ministers emphasized that it is essential to adopt appropriate measures to overcome the technological gap between developing and developed countries and to work towards arrangements that facilitate the process of technology transfer. In this regard, the Ministers noted with concern the restraints imposed on access to technology, especially advanced technologies and certain aspects of TRIPS which are adversely affecting the developmental needs of developing countries, particularly in sectors such as health and education. 14.  The Ministers also expressed their deep concern on the increasing inequality between developed and developing countries since most developing countries have been deprived of financial investment despite the different reforms and policies they have undertaken to create a more attractive investment climate. The reform policies are often constrained by conditionalities imposed by the international Financial Institutions. There is a need for conscious policy

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measures to facilitate FDI to developing countries, including investment guarantee schemes favorable trade access, production and supply agreements, local processing and marketing of raw materials and commodities. 15.  The Ministers expressed concern at the continued increased in the net outflow of resources from developing countries due to growing trade deficits in developed countries and capital flight. The Ministers were particularly concerned that in many cases such outflows far exceeded the development finances provided by the international community. 16.  The Ministers called for a comprehensive reform of the international financial architecture to broaden and strengthen the voice and participation of developing countries in international economic decision making and norm setting and, to that end, stressed the importance of continuing efforts to reform the international financial architecture so as to enhance the effective participation of these countries in international decision making. They noted that, despite modest efforts, enhancing the voice and participation of developing countries in the Bretton Woods Institutions remains a continuous concern, and in this regard called for further and effective progress. 17.  The Ministers expressed concern over the current subprime financial and credit crisis as well as the recent financial market instability and their adverse impact on the development prospects of developing countries, including the latter’s access to crucial finance and credits. These crises require a vigorous coordinated international response to ensure that the sustained growth of the world economy and the development efforts of developing countries are not severely affected. 18.  The Ministers reaffirmed the high priority that developing countries attach to the Financing for Development process as a valuable opportunity to secure support for their common vision to address the global financial and trade constraints faced by most developing countries. They welcomed the Follow-up International Conference on Financing for Development to Review the Implementation of the Monterrey Consensus, scheduled to be held in Doha from 29 November to 2 December 2008. The Ministers urged the Review Conference to follow-up the implementation of the outcome of the first International Conference on Financing for Development held in Monterrey and to adopt necessary measures to strengthen the review and follow-up mechanisms for the realization of the commitments made. 19.  The Ministers renewed the commitment to continuing to discuss innovative mechanisms for financing for development and acknowledged the progress made in this area and the value of developing innovative sources of financing from various sources on public, private, domestic and external bases in order to increase and supplement traditional sources of financing and invited countries to consider contributing in this regard. 20. The Ministers reiterated the commitment taken in the relevant United Nations General Assembly resolutions to operationalize the World Solidarity Fund, and recalled the request made by the Second South Summit held in Doha, Qatar, from 12 to 16 June 2005, to operationalize the World Solidarity Fund and called upon donors countries, countries in a position to do so, international organizations, the private sector and individuals, to contribute to the Fund in order to enable it to start its activities and to allow it to contribute to the achievement of the internationally agreed development goals, including the MDGs, particularly poverty eradication. 21.  The Ministers firmly rejected the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries, and reiterated the urgent need to eliminate them immediately. They emphasized that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. They, therefore, called on the international community neither to recognize these measures nor apply them.

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22.  The Ministers reaffirmed that eradication of poverty is the greatest global challenge facing the world today. They reiterated the importance of developing countries determining their own food security strategies in their efforts to eradicate poverty and hunger. They noted regional initiatives taken by G77 Member States in this regard, including the holding of the Presidential Summit in Managua, Nicaragua on Food, Security and Sovereignty and the African Summit in Sharm-El-Sheik. 23.  The Ministers stressed that the global food, financial and energy crises, constituted a major multi-dimensional challenge for development and the achievement of the Internationally Agreed Development Goals including the Millennium Development Goals. 24.  The Ministers expressed their deep concern at the sharp rise in global food prices and underline that the global food crisis poses a serious challenge to the fight against poverty and hunger, as well as to the efforts by developing countries to attain food security and achieve the objectives of halving the number of undernourished people by 2015 and other internationally agreed development goals, including MDGs. They reiterated that the global food crisis has multiple and complex causes and that its consequences requires a comprehensive, coordinated and sustained response in the short, medium, and long-term by the international community and national governments. They also emphasized the need for global mechanisms to serve as an early warning system on food security to prevent the recurrence of food crises. 25.  They emphasized that achieving food security would require strengthening and revitalizing the agriculture sector in developing countries, including through the empowerment of small and medium scale farmers, technical assistance, access to and transfer of technology and exchange of knowledge and experience. They further emphasized that subsidies and other market distortions by developed countries have severely harmed the agricultural sector in developing countries, thereby limiting the ability of this key sector to contribute meaningfully to poverty eradication and sustained economic growth, food security and rural development. 26.  The Ministers recognized the severity and urgency of the global food crisis. The Ministers underscored the need for the United Nations, with its universal membership, to play a leading role in addressing the crisis. They welcomed the holding of the FAO High-level Conference on ‘World Food Security: the Challenges of Climate Change and Bioenergy’ in Rome from 3 to 5 June 2008. They reiterated their call upon all donors of the United Nation system to increase their assistance for developing countries, in particular least developed countries and those that are most negatively affected by high good prices. They also noted the initiative of the Secretary-General of the United Nations to establish a High-Level Task Force on the Global Food Crisis, and called on the Task Force to intensively engage with the General Assembly and the ECOSOC and relevant international organizations. 27.  The Ministers welcomed initiatives to convene a Special Meeting of the United Nations General Assembly devoted to the issue of poverty eradication and on food security and consider taking the issue of agriculture development and food security before the closure of its 63rd session. 28.  The Ministers reiterated that developing countries should have the required policy space to formulate their development strategies in keeping with national development policies, strategies and priorities to reflect national priorities and the particular circumstances of each country. 29.  The Ministers acknowledged that the global nature of climate change calls for the widest possible cooperation by all countries and their participation in an effective and appropriate international response, in accordance with their common but differentiated responsibilities and respective capabilities and their social and economic conditions. In this regard the Ministers reiterated that UNFCCC and its Kyoto Protocol remain the central multilateral framework for cooperative action to address climate change.

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30.  The Ministers remained deeply concerned that the developing countries, in particular LDCs, SIDS and African countries, face increased risks from the negative effects of climate change and further stressed the need to urgently address adaptation needs related to such effects. 31.  The Ministers reaffirmed that responses to climate change should be coordinated with social and economic development in an integrated manner, with a view to avoiding adverse impact on the latter, taking into account the legitimate priority needs of developing countries for the achievement of sustained economic growth and the eradication of poverty. They welcomed the decisions adopted during the 13th Conference of the Parties to UNFCCC held in Bali and called for urgent global action to address climate change in accordance with the principle of common but differentiated responsibilities. They particularly urged developed countries to undertake ambitious and enhanced commitments under the Kyoto Protocol in subsequent commitment periods. They also urged the international community to assist developing countries to address the consequences of climate change particularly through new, additional and predictable financial resources, capacity building, and access to and transfer of technology. 32.  The Ministers called for the full and effective implementation of the commitments, programmes and targets contained in the Barbados Programme of Action and the Mauritius Strategy for Implementation and welcomed the decision taken by the General Assembly at its 62nd session to review, at its sixty-fifth session, progress made in addressing the vulnerabilities of Small Island Developing States through the implementation of the Mauritius Strategy for Implementation. 33.  The Ministers called on the international community and the United Nations system to fully support Caribbean States in their efforts to gain international recognition of the Caribbean Sea as a special area in the context sustainable development, recognizing the importance of the Caribbean Sea to present and future generations and to the heritage and the continuing economic well-being and sustenance of people living in the area, and the urgent need for the countries of the region to take appropriate steps for its preservation and protection, with the support of the international community. 34.  The Ministers welcomed the successful outcome of the Ninth Meeting of the Conference of the Parties to the Convention on Biological Diversity (COP-9) held in Bonn from 19 to 30 May 2008 particularly the adoption of a decision for the elaboration of a multiyear plan of action on South-South cooperation on biodiversity for development. They noted the urgent need to meet the three objectives of the Convention and their target of reducing biodiversity loss by 2010 and welcomed the decision by the COP calling for a high level special event in conjunction with the sixty-fifth session of the General Assembly to mark the International Year of Biodiversity in 2010. 35.  The Ministers recognized further the challenge posed by desertification and land degradation and resolve to support and strengthen the implementation of the United Nations Convention to Combat Desertification in those countries experiencing serious drought and/or desertification, particularly in Africa to address causes of desertification and land degradation, as well as poverty resulting from land degradation. They noted the recently adopted Ten-year Strategic Plan to make the Convention a systemic and worldwide response to global environmental issues affecting land and its ecosystems. The Ministers urged major policy interventions and commitment by the international community in terms of prioritizing investment in land and sustainable land management, in accordance with national circumstances, so as to prevent and reverse land degradation and desertification, thereby achieving the MDG goals particularly eradicating poverty and hunger. 36.  The Ministers welcomed the offer made by the Government of Brazil to host in 2012 a World Summit on Sustainable Development to review the 20-year progress achieved in the implementation of the outcomes of the United Nations Conference on Environment and Sustainable Development, held in Rio de Janeiro, on 3–14 June 1992, including the World Summit on Sustainable Development held in Johannesburg, South Africa, on 26 August-4 September 2002.

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37.  The Ministers expressed their concern over the increased frequency and scale of natural disasters in recent years which have resulted in massive loss of life and long-term negative social, economic and environmental consequences for countries, particularly developing countries. They called upon the international community, particularly developed countries and the relevant international organizations to increase their assistance to the affected States, including by supporting efforts towards enhancing their national and regional capacities for implementation of plans and strategies for preparedness, rapid response, recovery and development. The Ministers also reiterated that humanitarian assistance should be rendered upon the request of the affected States, and reaffirmed that in this regard the Guiding Principles for the provision of humanitarian assistance, as contained in the annex to General Assembly resolution 46/182, must be respected. 38.  The Ministers recognized the special needs of Africa, the only continent currently not on track to achieve the Internationally Agreed Development Goals including the Millennium Development Goals, and called for the full and timely implementation of all commitments made so as to enable African countries to enter the mainstream of the world economy. 39.  The Ministers reaffirmed the special needs of and underscored the need to address the challenges faced by Least Developed Countries, Landlocked Developing Countries, and Small Island Developing States. In this regard, the Ministers urged the international community and the UN system to address those needs and vulnerabilities and take urgent and concrete action to fulfill their commitments, through the full and effective implementation of the Brussels Programme of Action for the Least Developed Countries for the Decade 2001–2010, the Almaty Programme of Action, the Barbados Programme of Action and the Mauritius Strategy for the Further Implementation of the Programme of Action for the Sustainable Development of Small Island Developing States. 40.  The Ministers recognized the special challenges and needs of the Least Developed Countries particularly in the face of new and emerging challenges. The Ministers fully supported the convening of the Fourth UN Conference on LDCs, in accordance with paragraph 114 of the Brussels Programme of Action, towards the end of the current decade. The Ministers stressed that the Fourth UN Conference on LDCs will represent an important opportunity for the LDCs and their partners to critically review past performance, especially in areas of failures and weak implementation, and develop a new common action-oriented strategic framework for the next decade for effectively assisting the LDCs in their development efforts in a growingly complex and changing circumstances; 41.  The Ministers also reaffirmed the special needs and challenges faced by countries emerging from conflicts. In this regard, the Ministers urged the international community and the UN system to address these needs and challenges and take urgent and concrete action in the area of financial assistance and technical support and infrastructure development, in order to achieve the internationally agreed development goals including the MDGs; 42.  The Ministers also called for continued support for the development efforts of low-income developing countries in addressing their social, economic and developmental needs including through the provision of technical, financial and other forms of assistance, promotion of and strengthening of partnerships and cooperation arrangements at all levels. 43.  The Ministers called for continued support for the development efforts of middle-income developing countries, including through targeted and substantial technical assistance, and the promotion of new partnerships and cooperation arrangements, including bilateral arrangements, as well as by working in competent multilateral, regional and international fora, in support of national development strategies. In this regard, the Ministers welcomed the Third International Ministerial Conference on Developmental Cooperation with Middle-Income Countries that took place in Windhoek, Namibia, from 4 to 6 August 2008.

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44. The Ministers welcomed the initiative of the Government of the Philippines to host the Second Global Forum on Migration and Development to be held in Manila in October 2008 and strongly urged all countries to strengthen the protection of the human rights of all migrants and reiterated their determination to continue to address the challenges and opportunities that migration presents to countries of origin, transit and destination. 45.  The Ministers expressed concern over rapid urbanization and reaffirmed their commitment to consider an enhanced approach to achieving the Cities Without Slums Initiative mentioned in the United Nations Millennium Declaration by upgrading existing slums, improving access to water and sanitation and creating policies and programmes, according to national circumstances, to forestall the growth of future slums, and in this regard invite the international donor community and multilateral and regional development banks to support the efforts of developing countries, inter alia, through increased voluntary financial assistance. 46.  The Ministers reaffirmed their strong support to the United Nations, and to all collective efforts aiming at enhancing its ability to fully implement its mandates and to ensure the effective delivery of all its programmes, in particular in the social and economic development field. The Ministers firmly believed that the legitimacy and viability of any reform measures depended ultimately on the approval of Member States of the United Nations. The Ministers emphasized that measures to reform of the United Nations should respond to the unique intergovernmental, multilateral and international character of the United Nations. 47.  The Ministers recognized the need, consistent with the United Nations Convention against Corruption, to abide by the principles of proper management of public affairs and public property, fairness, responsibility and equality before the law and the need to safeguard integrity and to foster a culture of transparency, accountability and rejection of corruption, and in this regard, call for international cooperation and technical assistance, inter alia, through the United Nations system, in support of national, sub regional and regional efforts to prevent and combat corrupt practices and the transfer of assets of illicit origin, consistent with the principles of the United Nations Convention against Corruption and also invited the Member States to work on the identification and tracing of financial flows linked to corruption, the freezing or seizing of assets, derived from corruption and the return of such assets, consistent with the United Nations Convention against Corruption, and encourages the promotion of human and institutional capacity-building in this regard. 48.  The Ministers reaffirmed the importance of the Triennial Comprehensive Policy Review (TCPR) of operational activities, through which the General Assembly establishes key system wide policy orientation for the development cooperation and country-level modalities of the UN system. The Ministers also reaffirmed that the TCPR should determine the course of action for UN operational activities and should not be superseded or preempted by other processes. 49.  The Ministers firmly rejected attempts to politicize the operational activities for development of the UN system and underscored the importance of the principles of neutrality and impartiality in the provision of development assistance. 50.  The Ministers affirmed that the sovereign equality of Member States, as enshrined in the Charter of the United Nations, must be respected, including throughout the reform processes, irrespective of the contributions that individual Member States make to the budget of the Organization. Governance arrangements and decision making process exercised through the General Assembly, its Main Committees and subsidiary bodies are the sole responsibility of the Member States in accordance with the United Nations Charter. They upheld the role of the Member States, through the relevant main committees of the General Assembly, in the consideration of budgetary and administrative matters. 51.  The Ministers reaffirmed the principle of ‘capacity to pay’ as the fundamental criterion in the apportionment of the expenses of the United Nations and thus rejected the establishment of artificial ceilings during the elaboration of the scale of assessments.

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52.  The Ministers strongly supported the oversight role performed by the General Assembly, as well as its relevant intergovernmental and expert bodies, in the planning, programming, budgeting, monitoring and evaluation. 53.  The Ministers reaffirmed that the financial stability of the United Nations should not be jeopardized by arbitrary measures. The Ministers stressed that any efforts to use financial contributions to push for the adoption of certain proposals are counterproductive and violate the obligations of the Member States to provide resources for the Organization, as enshrined in its Charter, and in accordance with the principle of capacity to pay. 54.  The Ministers strongly reaffirmed the legal obligation of all member states to bear the financial expenses of the UN, in accordance with the Charter, and urged all member states to pay assessed contributions on time, in full and without conditions. They also stressed that the special and genuine difficulties faced by some developing countries that prevent them from meeting temporarily their financial obligations should be fully taken into account and that the decisions of the General Assembly on the agenda item ‘Scale of assessments’ must be responsive to such difficulties. 55.  The Ministers believe that the strengthening of the United Nations and its role in international cooperation for development is essential to respond to current and future challenges and opportunities emanating from the process of globalization. They are of the view that the United Nations needs to improve its capabilities and capacities and, in this regard, they welcome the efforts by the Secretary-General to strengthen the development pillar of the whole organization. 56.  The Ministers stressed the importance of ensuring that the Secretariat meets the highest standards of accountability, transparency, integrity and ethical conduct. The Ministers, therefore, urged the Secretary-General as a matter of priority to define accountability in the Organization, establish clear accountability mechanisms to the General Assembly, and proposed parameters for the application of accountability and instruments for its rigorous enforcement. 57.  The Ministers expressed concern at the inadequate share of the developing countries in the United Nations system of procurement. They emphasized that the United Nations procurement should be on as wide a geographical basis as possible with preferential treatment for the developing countries. They further underlined that the United Nations supplier roster should be representative of the membership of the Organization. 58.  The Ministers stressed the need for transparency and clear mechanisms in the recruitment process and to increase the representation of developing countries in the Secretariat, in particular at the senior level with due respect to equitable geographical distribution. 59.  The Ministers reiterated their call for the immediate withdrawal of Israel, the occupying Power, from the Occupied Palestinian Territory, including East Jerusalem, and the occupied Syrian Golan to the line of 4 June 1967 and from other occupied Arab territories. They reaffirmed their support for the Middle East peace process, begun in Madrid in 1991, aimed at achieving a comprehensive, just and lasting peace in the region, in accordance with Security Council resolutions 242 (1967), 338 (1973) and 425 (1978) and the principle of land for peace. In this context, they also reaffirmed their support for the Arab Peace Initiative adopted at the Arab Summit in Beirut, renewed by the Arab Summits held in Riyadh in March 2007 and in Damascus in March 2008, and for all the positive efforts being exerted in this regard, including the Annapolis Conference held on 27 November 2007. 60. The Ministers condemned the ongoing Israeli military campaign against the Palestinian people in Occupied Palestinian Territory, including East Jerusalem, which has resulted in the loss of civilian lives and the vast destruction of Palestinian properties, infrastructure and agricultural lands. The Ministers expressed deep concern about the further decline of the social and economic conditions of the Palestinian people, particularly in the besieged Gaza Strip, as a result of

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the illegal Israeli practices, including its illegitimate construction of settlements, the wall and bypass roads and the imposition of closures. They called upon Israel, the occupying Power, to cease immediately all illegal measures impairing the Palestinian economy, including, in particular, restrictions on the movement of persons and goods throughout, into and out of the Occupied Territory and to release all remaining tax revenues due to the Palestinian Authority and to make reparation for all damages caused to Palestinian properties, institutions and infrastructure. They reiterated their call upon the international community to continue providing much needed developmental and humanitarian assistance to the Palestinian people during this critical period. 61.  The Ministers expressed support for the assistance in the demining efforts and cluster bombs clearance in the south of Lebanon. They further expressed their deep concern about the lack of financial resources for carrying out the remaining demining and clearance of mines and cluster munitions in the south of Lebanon, and called upon the international donors and the United Nations system to provide the appropriate and adequate financial resources to the Mine Action Coordination Center South Lebanon in order to allow it to perform its task. The Ministers reiterated their call on Israel to provide the United Nations with all the maps and information on the location of the landmines that it has planted in the south of Lebanon during its occupation and its 2006 aggression against Lebanon, as well as to provide information on the cluster bomb strike locations, which are hindering the development and rehabilitation of the south of Lebanon and preventing the agricultural exploitation of vast areas of rich agrarian land. The Ministers requested Israel to assume responsibility for the landmines laying and cluster bombs usage in the south of Lebanon and assume defraying the cost of clearance as well as providing compensation for Lebanon for any ensuing losses and for reclaiming the affected areas in the south of Lebanon for productive purposes. 62.  The Ministers supported the inalienable right of Lebanon to utilize its waters in accordance with international law, in particular to ensure the social and economic needs of its population in the liberated areas and villages. They called on Israel to end its air violations of Lebanese sovereignty and other violations that severely damage the security situation which is a critical factor in promoting the economy and tourism industries. 63.  The Ministers reiterated the increasing importance of South-South cooperation and called for a more energetic effort to deepen and enhance South-South cooperation, including triangular cooperation, bearing in mind that such cooperation is not a substitute to North-South cooperation. The Ministers reaffirmed the role of South-South cooperation in the overall context of multilateralism as a continuing process vital to confront the challenges faced by the South. In this context, they stressed that the current international architecture for development cooperation needs to be reformulated and welcomed the convening of the High-level Conference on South-South Cooperation to be held in 2009, which should be held at the highest possible level, including the Heads of States and Governments. In this context the Ministers welcomed the adoption of the fourth cooperation framework for South-South Cooperation. 64. The Ministers welcomed the ‘Yamoussoukro Consensus’ as the outcome of the Twelfth Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-XII), held in Yamoussoukro, Côte d’Ivoire, from 10 to 13 June 2008, particularly the launching of the Development Platform for the South and the South Fund for Development and Humanitarian Assistance. The Ministers commended the Government of Côte d’Ivoire for hosting this successful meeting in Yamoussoukro, and expressed their profound gratitude for the excellent arrangements, warm welcome and hospitality. 65.  In this context, the Ministers welcomed the conceptual framework and the set of principles for South-South cooperation contained in the ‘Yamoussoukro Consensus’, and in this regard

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stressed the following elements that should guide the Group during the preparatory process for the High-level UN Conference on South-South Cooperation: a.  South-South cooperation is a common endeavour of peoples and countries of the South and must be pursued as an expression of South-South solidarity and a strategy for economic independence and self-reliance of the South based on their common objectives and solidarity; b.  South-South cooperation and its agenda must be driven by the countries of the South; c.  South-South cooperation must not be seen as a replacement for North-South cooperation. Strengthening South-South cooperation must not be a measure of coping with the receding interest of the developed world in assisting developing countries; d.  Cooperation between countries of the South must not be analyzed and evaluated using the same standards as those used for North-South relations; e.  Financial contributions from other developing countries should not be seen as Official Development Assistance from these countries to other countries of the South. These are merely expressions of solidarity and cooperation borne out of shared experiences and sympathies; f. South-South cooperation is a development agenda based on premises, conditions and objectives that are specific to the historic and political context of developing countries and to their needs and expectations. South-South cooperation deserves its own separate and independent promotion; g. South-South cooperation is based on a strong, genuine, broad-based partnership and solidarity; h. South-South cooperation is based on complete equality, mutual respect and mutual benefit; i. South-South cooperation respects national sovereignty in the context of shared responsibility; j.  South-South cooperation strives for strengthened multilateralism in the promotion of an action-oriented approach to development challenges; k. South-South cooperation promotes the exchange of best practices and support among developing countries in the common pursuit of their broad development objectives (encompassing all aspects of international relations and not just in the traditional economic and technical areas); l.  South-South cooperation is based on the collective self-reliance of developing countries; m.  South-South cooperation seeks to enable developing countries to play a more active role in international policy and decision-making processes, in support of their efforts to achieve sustainable development; n. The modalities and mechanisms for promoting South-South cooperation are based on bilateral, sub-regional, regional and interregional cooperation and integration as well as multilateral cooperation. 66.  The Ministers recalled the request made by the heads of state and government at the Second South Summit held in Doha, Qatar from 12 to 16 June 2005 inviting ‘the Secretary-General, in consultation with Member States, to take concrete measures to further strengthen the Special Unit for South-South Cooperation as a separate entity and a focal point for South-South cooperation within the United Nations system as reaffirmed by General Assembly resolution 58/220 of 23 December 2003, so as to enable it to carry out its full responsibility, in particular through mobilization of resources for the advancement of South-South cooperation including through triangular cooperation’

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67.  The Ministers welcomed the cooperation initiatives and the substantial financial contributions made by some G77 countries, including OPEC countries based on the solidarity and principles of friendship among States. They also welcomed initiatives on financial contributions by other G77 members in the energy sector including those related to renewable energy. In this regard, they encouraged Member States to consider supporting and engaging in mechanisms of cooperation including at relevant regional or sub-regional levels, as appropriate. 68.  The Ministers welcomed the generous offer and the ongoing preparations for the Ministerial Forum on Water to be held in Muscat, Sultanate of Oman, from 23 to 25 February 2009. 69.  The Ministers welcomed the successful outcome of the 15th Ministerial Conference of the Non-Aligned Movement held on 29 and 30 July 2008 in Tehran, Islamic Republic of Iran, which addressed a range of fundamental concerns and interests of developing countries. 70.  The Ministers approved the Report of the Twenty-third Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/TCDC (PGTF) contained in document G-77/ AM(XX)/2008/2 and endorsed its recommendations. The Ministers commended the Chairman of the PGTF for his continued commitment and expressed their satisfaction with the results achieved by the PGTF and invited Member States to participate in the UN Pledging Conference to be held in New York on 10 November 2008. 71.  The Ministers approved the Financial Statement of the ECDC Account of the Group of 77 contained in document G-77/AM(XX)/2008/4, as presented by the Chairman of the Group of 77 and urged those Member States that have not yet done so to make special efforts to pay their outstanding contributions. 72.  The Ministers expressed their deep appreciation to Antigua and Barbuda for its able leadership and for the excellent work and tireless efforts as the Chair country of the Group of 77 for 2008. The Ministers also commended the efficient work and continued valuable support provided by the secretariat of the Group of 77 in New York to the Chair country and to the Member States. 73.  The Ministers welcomed the election of the Republic of the Sudan to the Chairmanship of the Group of 77 for 2009.

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33.  Thirty-third Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 25 September 2009 a.  Ministerial Declaration The Ministers of Foreign Affairs of the Member States of the Group of 77 and China met at the United Nations Headquarters in New York on 25 September 2009 on the occasion of their 33rd Annual Meeting to review the world economic situation and to address the development challenges facing developing countries, and adopted the following Declaration: 1.  The Ministers expressed their concern over the multiple inter-related and mutually exacerbating current global crises, in particular the world financial and economic crisis, the volatile energy prices, the food crisis and the challenges posed by climate change, which could further undermine the achievement of the internationally agreed development goals, including the Millennium Development Goals. 2.  The Ministers stressed that the current financial and economic crisis as well as the failures and gaps in the international financial governance have served to underscore the urgent need for the UN to assume a central and proactive role in international economic issues. 3.  The Ministers noted that the crisis has further highlighted the urgent need for a substantive and comprehensive reform of the international economic and financial system and architecture, including policies, mandates, scope and governance, to better enable it to respond and prevent financial and economic emergencies, effectively promote development and equitably serve the needs of Member States, particularly developing countries. International financial institutions in particular must have a clear development orientation. They called on all Member States to participate in an open, inclusive and transparent dialogue for a new international economic and financial system and architecture that would ensure, inter alia, adequate policy space to developing countries. 4.  The Ministers recalled the estimation by the World Bank of the significant shortage of $ 1 trillion that developing countries are facing in 2009. They underscored the importance of allocating new and additional resources, as a matter of priority, to developing countries to appropriately address the adverse impacts of the crisis. 5.  The Ministers welcomed the recognition by the international community for the need for more coordinated and comprehensive response to mitigate the negative impact of the global financial crisis in particular for developing countries as well as the overdue necessary structural reform needed to prevent future economic turmoil as contained in the outcome document of the ‘United Nations Conference on the World Financial and Economic Crisis and its impact on Development’, which was held at the United Nations Headquarters in New York from 24 to 30 June 2009. They expressed their disappointment over the lack of concrete measures or time-bound commitments to meet specific needs relating to development assistance, trade, finance, markets access, debt, and sustainable development. 6.  The deepening crisis threatens to negatively affect the indebtedness of developing countries. This growing indebtedness limits the ability of these States to enact the appropriate fiscal measures to mitigate the impact of the crisis or engage in development financing. We affirm that the appropriate measures must be taken to address the impact of the crisis on the indebtedness of developing states and to avoid a new debt crisis. 7.  The Ministers reiterated the urgent need for the international community to adopt an effective, equitable, durable and development-oriented solution to the debt problems of developing

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countries, particularly LDCs, including through total debt cancellation, without discrimination or conditionalities, and increased concessional financial flows. 8.  The Ministers emphasized in this regard the importance of the General Assembly open–ended Working Group established according to its resolution 63/305 and underscored the need to immediately commence substantive consideration of all issues contained in the outcome document of the ‘UN Conference on the World Financial and Economic Crisis and its Impact on Development’. They further emphasized that the Working Group should make concrete recommendations to the General Assembly as early as possible on actions to redress the structural failures of the international financial and economic system, and mitigate the impact of the crisis on development. 9.  The Ministers reaffirmed the high priority that developing countries attach to the Financing for Development process as a valuable opportunity to secure support for their common vision to address major development finance constraints faced by all developing countries. In this regard, they called for the speedy implementation of all commitments contained in the Monterrey Consensus and in the Doha Declaration on Financing for Development. They also emphasized the need for continued strengthening of the FfD follow-up process and therefore committed to actively participate in the High-level Dialogue on Financing for Development scheduled to be held in New York on 23 and 24 November 2009. 10.  The Ministers expressed their serious concern over the talks of the WTO Doha Round that may preclude finishing negotiations this year and considered it a serious setback for the Doha Round. They reiterated the call to the developed countries to demonstrate the flexibility and the political will necessary for breaking the current impasse in the negotiations with a view to concluding the Round by 2010. They reaffirmed the need to strictly adhere to the development mandate of the Doha Ministerial Declaration, the decision of the General Council of the World Trade Organization of 1 August 2004 and the Hong Kong Ministerial Declaration, which place development at the heart of the multilateral trading system. 11.  The Ministers urged developed countries to take measures to increase investment flows, particularly foreign direct investments, to developing countries and avoid protectionist measures, which impede such flows. The Ministers reaffirmed their commitment to a universal, ruled based, open, non-discriminatory and equitable multilateral trading system. 12.  The Ministers stressed the importance of facilitating the accession of all developing countries, in particular the LDCs that apply for membership in the World Trade Organization (WTO), without political impediments, in an expeditious and transparent manner and with full observance of the principles of special and differential treatment for developing countries. 13.  The Ministers reaffirmed that hunger constitutes a violation of human dignity and called for urgent measures at the national, regional and international levels for its elimination. They also reaffirmed the right of everyone to have access to safe and nutritious food consistent with the right to food and the fundamental right of everyone to be free from hunger, so as to be able to fully develop and maintain his or her physical and mental capacities. 14.  The Ministers reaffirmed that eradication of poverty is the greatest global challenge facing the world today. They reiterated the importance of developing countries determining their own food security strategies in their efforts to eradicate poverty and hunger. They noted regional initiatives taken by G-77 Member States in this regard, including the holding of the Presidential Summit in Managua, Nicaragua on Food, Security and Sovereignty and the African Summit in Sharm-El-Sheik. 15.  The Ministers stressed the urgent need for the international community, particularly the developed countries, to take effective measures to allocate new and additional resources to assist developing countries to respond efficiently to both the imminent and long-term challenges of food security. The Ministers reaffirmed the importance of developing strategies for South-South

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cooperation in providing emergency responses, and in structuring actions to overcome the current food crisis. 16.  The Ministers welcomed the convening of the World Summit on Food Security by the Food and Agriculture Organization of the United Nations from 16 to 17 November 2009, and expressed the hope that the Summit will translate the political will and the commitment to address these important issues. 17.  The Ministers noted with deep concern that the lack of effective implementation of the internationally agreed development goals including the MDGs remains the Achilles Heel of the UN development agenda and stressed that securing the effective and full implementation of the agreed goals and commitments must be of the highest priority. The Ministers urged development partners to demonstrate a similar alacrity in implementing their part of the commitments whether in external debt, development assistance, financing, trade, technology transfer and other areas of cooperation. Building on General Assembly resolution 60/265, the United Nations should develop an intergovernmental consensus for the establishment of effective mechanisms to review and follow up the implementation of MDGs and IADGs. 18.  The Ministers reaffirmed that economic and social development is the centerpiece of the objectives and operational activities of the United Nations. The achievement of the internationally agreed development goals including the MDGs should continue to be the over-arching framework of the development activities of the UN system. The Ministers reiterated the need to fully implement all agreed commitments from all the major United Nations summits and conferences in the economic, social and related fields. They further emphasized the need for a strengthened global partnership for development, based on the recognition of national leadership and ownership of development strategies. In this regard, they welcomed the decision by the General Assembly to hold a UN Summit on the MDGs in 2010, as agreed by resolution 63/302. 19.  The Ministers recognized the special needs of Africa, the only continent currently not on track to achieve the internationally agreed development goals including the Millennium Development Goals, and called for the full and timely implementation of all commitments made so as to enable African countries to enter the mainstream of the world economy. 20.  The Ministers reaffirmed the political declaration on ‘Africa’s development needs: state of implementation of various commitments, challenges and the way forward’, adopted at the High-level Meeting of the General Assembly on 22 September 2008. They recalled the commitment of all States to establish a monitoring mechanism to follow up on all commitments related to the development of Africa as contained in the political declaration on ‘Africa’s development needs’ and stressed that all commitments to and by Africa should be effectively implemented and given appropriate follow-up by the international community and Africa itself. 21.  The Ministers reaffirmed the special needs of and underscored the need to address the challenges faced by Least Developed Countries, Landlocked Developing Countries, and Small Island Developing States. In this regard, the Ministers urged the international community and the UN system to address those needs and vulnerabilities and take urgent and concrete action to fulfill their commitments, through the full and effective implementation of the Brussels Programme of Action for the Least Developed Countries for the Decade 2001–2010, the Almaty Programme of Action, the Barbados Programme of Action and the Mauritius Strategy for the Further Implementation of the Programme of Action for the Sustainable Development of Small Island Developing States. The Ministers looked forward to the General Assembly High level Meeting to review the Mauritius Strategy in 2010. 22.  The Ministers recognized the special challenges and needs of the Least Developed Countries particularly in the face of new and emerging challenges. The Ministers fully supported the convening of the Fourth UN Conference on LDCs, in accordance with paragraph 114 of the Brussels Programme of Action towards the end of the current decade. The Ministers stressed that the

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Fourth UN Conference on LDCs will represent an important opportunity for the LDCs and their partners to critically review past performance, especially in areas of failures and weak implementation, and develop a new common action-oriented strategic framework for the next decade for effectively assisting the LDCs in their development efforts in a growingly complex and changing circumstances. 23.  The Ministers called for continued support for the development efforts of middle-income developing countries, including through targeted and substantial technical assistance, and the promotion of new partnerships and cooperation arrangements, including bilateral arrangements, as well as by working in competent multilateral, regional and international fora, in support of national development strategies. In this regard, the Ministers welcomed the Third International Ministerial Conference on Developmental Cooperation with Middle-Income Countries that took place in Windhoek, Namibia, from 4 to 6 August 2008, and the subsequent adoption of General Assembly resolution 62/223 on development cooperation with middle-income countries. 24.  The Ministers also called for continued support for the development efforts of low-income developing countries in addressing their social, economic and developmental needs including through the provision of technical, financial and other forms of assistance, promotion of and strengthening of partnerships and cooperation arrangements at all levels. 25.  The Ministers also reaffirmed the special needs and challenges faced by countries emerging from conflicts. In this regard, the Ministers urged the international community and the UN system to address these needs and challenges and take urgent and concrete action in the area of financial assistance and technical support and infrastructure development, in order to achieve the internationally agreed development goals including the MDGs. 26.  The Ministers acknowledged that the global nature of climate change calls for the widest possible cooperation by all countries and their participation in an effective and appropriate international response, in accordance with their common but differentiated responsibilities and respective capabilities as well as their social and economic conditions. In this regard, the Ministers reiterated that UN Framework Convention on Climate Change and its Kyoto Protocol remains the central multilateral framework for cooperative action to address climate change. 27.  The Ministers also urged developed countries to undertake ambitious and enhanced commitments under the Kyoto Protocol in subsequent commitment periods. They also urged the international community to assist developing countries to address the consequences of climate change, particularly through new, additional and predictable financial resources, capacity building, and access to and transfer of technology. 28.  The Ministers reaffirmed that responses to climate change should be coordinated with social and economic development in an integrated manner, with a view to avoiding adverse impact on the latter, taking into account the legitimate priority needs of developing countries for the achievement of sustained economic growth and the eradication of poverty. In this context, the Ministers look forward to the positive outcomes of the Fifteenth Session of the Conference of the Parties to the United Nations Framework Conventions on Climate Change and the Fifth Session of the Meeting of the Parties to the Kyoto Protocol, to be held in Copenhagen, Denmark from 7 to 18 December 2009. 29.  The Ministers stressed the importance of improving understanding of the impact of climate change on the ocean and the need to consider the ocean dimensions to inform adaptation and mitigation strategies. In this regard, the Ministers expressed appreciation to the Government of Indonesia for the holding of the World Ocean Conference in Manado, Indonesia from 11 to 15 May 2009, which adopted the ‘Manado Ocean Declaration’, and underlined the need for an integrated coastal and ocean management approach in adapting to the effects of climate change on the ocean.

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30.  The Ministers looked forward to the successful outcome of the forthcoming Tenth Meeting of the Conference of the Parties to the Convention on Biological Diversity (COP-10), which will be held from 18 to 29 October 2010 in Nagoya, Japan. 31.  The Ministers also welcomed COP-9 Decision IX/33 calling for a high-level special event in conjunction with the sixty-fifth session of the General Assembly to mark the International Year of Biodiversity in 2010 and invites all the members to be represented at the highest level possible at the high-level segment of the 65th session of the United Nations General Assembly to be held in New York on 20 September 2010 with participation of Heads of State and Government convened to celebrate the International Year on Biodiversity. 32.  The Ministers also welcomed COP-9 Decision IX/25 for the elaboration of a Multi-year Plan of South-South Cooperation on Biodiversity for Development to be submitted to COP-10. In this context, the Ministers expressed their support to the ongoing efforts by the Executive Secretary of the CBD Secretariat towards the elaboration of a Multi-year Plan of South-South Cooperation in close collaboration with the Chair of the Group of 77 and welcomed the convening of consultative preparatory meetings of the Steering Committee to be held in Montreal, Canada on 29 October 2009 and in Khartoum, Republic of the Sudan, in early 2010. 33.  The Ministers expressed their concern over the increased frequency and scale of natural disasters in recent years which have resulted in massive loss of life and long term negative social, economic and environmental consequences for countries, particularly developing countries. They called upon the international community, particularly developed countries and the relevant international organizations to increase their assistance to the affected states, including by supporting efforts towards enhancing their national and regional capacities for implementation of plans and strategies for preparedness, rapid response, recovery and development on earthquakes, tsunamis, landslides, and volcanic eruptions, and extreme weather events such as heat waves, severe droughts and floods, sand and dust storms. 34.  The Ministers welcomed the progress achieved by the UN Forum on Forests (UNFF) on the process to enhance international cooperation and means of implementation for sustainable forest management and the achievement of the global objectives on forest, in particular to improve access to and mobilization of international financial resources in this field for developing countries. Furthermore, the Ministers called for an expeditious formal adoption and implementation of the decisions of the UNFF to, inter alia, make recommendations on the establishment of a voluntary global forest fund. 35.  The Ministers recognized further the challenge posed by desertification and land degradation and resolve to support and strengthen the implementation of the United Nations Convention to Combat Desertification in those countries experiencing serious drought and/or desertification, particularly in Africa to address causes of desertification and land degradation, as well as poverty resulting from land degradation. In this context, the Ministers looked forward to the successful outcome of the Ninth Session of the Conference of the Parties to be held in Buenos Aires, Argentina from 21 September to 2 October 2009. 36.  The Ministers welcomed the outcome of the Seventeenth Session of the Commission on Sustainable Development (CSD-17) on the thematic issues ‘Africa, Agriculture, Drought and Desertification, Land and Rural Development’. In this regard, the Ministers reaffirmed the need to implement the decisions and commitments contained in this document. 37. The Ministers expressed their support to convene a World Summit on Sustainable Development in Brazil in 2012 to review the 20-year progress achieved in the implementation of the outcomes of the United Nations Conference on Environment and Sustainable Development, held in Rio de Janeiro, on 3–14 June 1992, including the World Summit on Sustainable Development held in Johannesburg, South Africa, on 26 August-4 September 2002.

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38. The Ministers welcomed the adoption of the ECOSOC Ministerial Declaration on ‘Implementing the Internationally Agreed Goals and Commitments in regard to Global Public Health’ and called upon the international community to implement it in order to achieve global public health for sustainable development. 39.  The Ministers firmly rejected the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries, and reiterated the urgent need to eliminate them immediately. They emphasized that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. They, therefore, called on the international community neither to recognize these measures nor apply them. 40.  The Ministers reiterated the commitment taken in the relevant United Nations General Assembly resolutions to operationalize the World Solidarity Fund, and recalled the request made by the Second South Summit held in Doha, Qatar, from 12 to 16 June 2005, to operationalize the World Solidarity Fund and called upon donors countries, countries in a position to do so, international organizations, the private sector and individuals, to contribute to the Fund in order to enable it to start its activities and to allow it to contribute to the achievement of the internationally agreed development goals, including the MDGs, particularly poverty eradication. 41.  The Ministers valued and supported the initiative by H.E. President Zine El Abidine Ben Ali, President of the Republic of Tunisia, calling for proclaiming 2010 a ‘World Youth Year’, and for organizing during the same year, under the auspices of the United Nations, and in cooperation with the concerned international organizations, a world youth conference to be attended by young people from all parts of the world and which shall focus on youth issues and be crowned with the issuing of an international pact, to serve as a close tie uniting all young people of the world in their commitment to the common universal values. 42.  The Ministers reaffirmed the need to fulfill all official development assistance commitments including the commitments made by many developed countries to achieve the target of 0.7 per cent of gross national product for official development assistance to developing countries by 2015 and to reach the level of at least 0.5 per cent of gross national product for official development assistance by 2010, as well as a target of 0.15 to 0.20 per cent of gross national product for official development assistance to least developed countries. 43.  The Ministers strongly urged all countries to strengthen the protection of the human rights of all migrants and reiterated their determination to continue to address the challenges and opportunities that migration presents to countries of origin, transit and destination. 44.  The Ministers reaffirmed the need to address and promote conditions for cheaper, faster and safer transfer of remittances in both source and recipient countries, bearing in mind that remittances cannot be considered as a substitute for foreign direct investment, official development assistance, debt relief or other public sources of finance development. 45.  The Ministers noted the results of the High-level Dialogue on International Migration and Development in September 2006 in New York, held for purpose of discussing the multidimensional aspects of international migration and development, which recognized the relationship between international migration, development and human rights. In this context, the Heads of State and Government welcomed the decision of the General Assembly to hold a one-day informal thematic debate in 2011 on international migration and development and the new High-level Dialogue on International Migration in 2013. 46.  The Ministers called for combating and penalizing corruption in all its forms as well as the laundering of proceeds of corruption, preventing the transfer of illicitly acquired assets, and

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working for the prompt return of such assets through asset recovery consistent with the principles of the UN Convention against Corruption, and in this regard the Ministers stressed the need for transparency in financial institutions, inviting work on the identification and tracing of financial flows linked to corruption, the freezing or seizing of assets derived from corruption and the return of such assets, consistent with the Convention, and encouraging the promotion of human and institutional capacity-building in this regard. The Ministers called for active participation in the Third Session of the Conference of the States Parties of the UN Convention against Corruption to be held in Doha, Qatar, from 9 to 13 November 2009. 47.  The Ministers of the States Parties to the Mine Ban Convention recognized the significance of the Second Review Conference and expressed their appreciation for the commitment of Colombia to prepare and host that Conference to be held in Cartagena, from 30 November to 4 December 2009. Furthermore, they welcomed the regional conferences and workshops in preparation for the Conference and appreciated the efforts of the host States in that regard. 48.  The Ministers affirmed that the sovereign equality of Member States, as enshrined in the Charter of the United Nations, must be respected, including throughout reform processes, irrespective of the contributions that individual Member States make to the budget of the Organization. Governance arrangements and decision-making process exercised through the General Assembly, its Main Committees and subsidiary bodies are the sole responsibility of the Member States in accordance with the United Nations Charter. They upheld the role of the Member States, through the relevant main committee of the General Assembly, in the consideration of budgetary and administrative matters. 49.  The Ministers reaffirmed that the Fifth Committee of the General Assembly is the sole Main Committee of the organization entrusted with responsibilities for administrative, financial and budgetary matters. In this regard, the Ministers requested that any budgetary, financial, and administrative related matters including those being dealt with in connection with the establishment of a peacekeeping operation or a special political mission be discussed solely in the framework of the Fifth Committee, in conformity with the UN Charter. 50.  The Ministers strongly supported the oversight role performed by the General Assembly, as well as its relevant intergovernmental and expert bodies, in the planning, programming, budgeting, monitoring and evaluation. They reaffirmed that any Secretariat and management reform efforts, including on its budget process, must not intend to change the intergovernmental, multilateral and international nature of the organization, but must strengthen the ability of Member States to perform their oversight and monitoring role. They also reaffirmed the right of the entire membership of the United Nations to pronounce on the administration of the Organization, including on its budgetary matters. 51.  The Ministers further reaffirmed the principle of ‘capacity to pay’ as the fundamental criterion in the apportionment of the expenses of the United Nations and rejected any change to the elements of the current methodology for the preparation of the scale of assessments aimed at increasing the contributions of developing countries. In this regard, they emphasized that the core elements of the current methodology of the scale of assessment, such as base period, Gross National Income, conversion rates, low per capita income adjustment, gradient, floor, ceiling for Least Developed Countries and debt stock adjustment must be kept intact and are not negotiable. 52.  The Ministers stressed that the current maximum assessment rate, or ceiling, had been fixed as a political compromise and is contrary to the principle of the capacity to pay and a fundamental source of distortion in the scale of assessments. In this context, they urged the General Assembly to undertake a review of this arrangement, in accordance with paragraph 2 of General Assembly resolution 55/5 C. 53.  The Ministers affirmed that the current principles and guidelines for the apportionment of the expenses of peacekeeping operations approved by the General Assembly in its relevant

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resolutions should constitute a basis for any discussion on the peacekeeping scale. In this regard, the Ministers stressed that the peacekeeping scale must clearly reflect the special responsibilities of the permanent members of the Security Council for the maintenance of peace and security. The Ministers also recalled that the economically less developed countries have limited capacity to contribute towards the budgets of peacekeeping operations. In this context, the Ministers emphasized that any discussion on the system of discounts applied to the peacekeeping scale should take into account the conditions of developing countries whose current positions must not be negatively affected. 54.  The Ministers reaffirmed that the financial stability of the United Nations should not be jeopardized by arbitrary measures. The Ministers stressed that any efforts to use financial contributions to push for the adoption of certain proposals are counterproductive and violate the obligations of the Member States to provide resources for the Organization, as enshrined in its Charter. 55.  The Ministers strongly reaffirmed the legal obligation of all member states to bear the financial expenses of the UN, in accordance with the Charter, and urged all member states to pay assessed contributions on time, in full and without conditions. They also stressed that the special and genuine difficulties faced by some developing countries that prevent them from meeting temporarily their financial obligations should be fully taken into account and that the decisions of the General Assembly on the agenda item ‘scale of assessments’ must be responsive to such difficulties. 56.  The Ministers stressed that the level of resources to be approved by the General Assembly must be commensurate with all mandated programmes and activities in order to ensure their full and effective implementation. They also reaffirmed the priorities of the Organization as approved by the General Assembly and the need for the Secretary-General to reflect these priorities when presenting proposed programme budgets. 57.  The Ministers reiterated that there is a need to strike a balance in reflecting the agreed priorities of the Organization in the allocation of resources to the United Nations regular budget, which is persistently to the detriment of the development activities. 58.  In this context, the Ministers stressed that the strengthening of the United Nations and its role in international cooperation for development is essential to respond to current and future challenges and opportunities emanating from the process of globalization. They recognized that the United Nations needs to improve its capabilities and capacities to fully implement its mandates and to ensure the effective delivery of its programmes in the social and economic development field. In this regard, they urge the Secretary-General to further strengthen the development pillar of the whole organization, including its development account. 59.  The Ministers stressed the importance of ensuring that the Secretariat meets the highest standards of accountability, transparency, integrity and ethical conduct. The Ministers, therefore, urged the Secretary-General, as a matter of priority, to define accountability in the Organization, establish clear accountability mechanisms to the General Assembly, and propose parameters for the application of accountability and instruments for its rigorous enforcement. 60.  The Ministers expressed concern at the inadequate share of the developing countries in the United Nations system of procurement. They emphasized that the United Nations procurement should be on as wide a geographical basis as possible with preferential treatment for the developing countries. They further underlined that the United Nations supplier roster should be representative of the membership of the Organization and underscored the need to implement concrete measures to ensure greater market access by businesses from developing countries in United Nations procurement. 61.  The Ministers stressed the need to increase the representation of developing countries, in particular at the senior levels, and to improve geographic distribution in the Secretariat and more transparency in recruitment process.

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62.  The Ministers reaffirmed the importance of the Comprehensive Policy Review of Operational Activities, through which the General Assembly establishes key system-wide policy orientation for the development cooperation and country-level modalities of the UN system. The Ministers also reaffirmed that the TCPR should determine the course of action for UN operational activities and should not be superseded or preempted by other processes. 63.  The Ministers reaffirmed their willingness to continue to engage constructively in the intergovernmental negotiations on system–wide coherence through the Joint Coordinating Committee of G-77 and NAM during the 64th Session of the General Assembly and reiterated their preference of an integrated process on all issues under discussion, with a view to achieving equal levels of progress in all areas as stated in General Assembly resolution 63/311. 64.  The Ministers firmly rejected attempts to politicize the operational activities for development of the UN system and underscored the importance of the principles of neutrality and impartiality in the provision of development assistance. 65.  The Ministers reiterated their call for the immediate withdrawal of Israel, the occupying Power, from the Occupied Palestinian Territory, including East Jerusalem, and the occupied Syrian Golan to the line of 4 June 1967 and from the remaining Lebanese occupied land. They reaffirmed their support for the Middle East peace process, begun in Madrid in 1991, aimed at achieving a comprehensive, just and lasting peace in the region, in accordance with Security Council resolutions 242 (1967), 338 (1973) and 425 (1978) and the principle of land for peace. In this context, they also reaffirmed their support for the Arab Peace Initiative adopted at the Arab Summit in Beirut, renewed by the Arab Summits held in Riyadh in March 2007 and in Damascus in March 2008, and in Doha in March 2009. 66. The Ministers condemned the ongoing Israeli military campaign against the Palestinian people in Occupied Palestinian Territory, including East Jerusalem, which has resulted in the loss of civilian lives and the vast destruction of Palestinian properties, infrastructure and agricultural lands. The Ministers expressed deep concern about the further decline of the social and economic conditions of the Palestinian people, particularly in the besieged Gaza Strip, as a result of the illegal Israeli practices, including its illegitimate construction of settlements, the wall and bypass roads and the imposition of blockade closures. They called upon Israel, the occupying Power, to cease immediately all illegal measures impairing the Palestinian economy, including, in particular, restrictions on the movement of persons and goods throughout, into and out of the Occupied Territory and to release all remaining tax revenues due to the Palestinian Authority and to make reparation for all damages caused to Palestinian properties, institutions and infrastructure. They reiterated their call upon the international community to continue providing much needed developmental and humanitarian assistance to the Palestinian people during this critical period particularly for the reconstruction and economic recovery in the Gaza Strip. 67.  The Ministers expressed support for the assistance in the demining efforts and cluster bombs clearance in the south of Lebanon. They further expressed their deep concern about the lack of financial resources for carrying out the remaining demining and clearance of mines and cluster munitions in the south of Lebanon, and called upon the international donors and the United Nations system to provide the appropriate and adequate financial resources to the Mine Action Coordination Center South Lebanon in order to allow it to perform its task. The Ministers reiterated their call on Israel to complete the submission to the United Nations of adequate information on these mines and cluster munitions, as well as all remaining maps related to their locations, which are hindering the development and rehabilitation of the south of Lebanon and preventing the agricultural exploitation of vast areas of rich agrarian land. The Ministers requested Israel to assume responsibility for the landmines laying and cluster bombs usage in the south of Lebanon and assume defraying the cost of clearance as well as providing compensation for Lebanon for any ensuing losses and for reclaiming the affected areas in the south of Lebanon for productive purposes.

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68.  The Ministers supported the inalienable right of Lebanon to utilize its waters in accordance with international law, in particular to ensure the social and economic needs of its population in the liberated areas and villages. They called on Israel to end its air violations of Lebanese sovereignty and other violations that severely damage the security situation which is a critical factor in promoting the economy and tourism industries. 69.  The Ministers reaffirmed the importance of strengthening South-South Cooperation especially in the current international economic environment and reiterated their support for South-South Cooperation as a strategy to sustain the developments efforts of developing countries and a means of enhancing their participation in the emerging global economy. They reiterated the principles of South-South Cooperation as adopted by the Twelfth Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-XII), which was held from 10 to 13 June 2008 in Yamoussoukro, Côte d’Ivoire and stressed that such principles should guide the Group in the preparation of the UN Conference on South-South Cooperation. 70.  In this context, the Ministers welcomed the conceptual framework and the set of principles for South-South cooperation contained in the ‘Yamoussoukro Consensus’, and in this regard stressed the following elements that should guide the Group during the preparatory process for the High-level UN Conference on South-South Cooperation: a.  South-South cooperation is a common endeavour of peoples and countries of the South and must be pursued as an expression of South-South solidarity and a strategy for economic independence and self-reliance of the South based on their common objectives and solidarity; b.  South-South cooperation and its agenda must be driven by the countries of the South; c.  South-South cooperation must not be seen as a replacement for North-South cooperation. Strengthening South-South cooperation must not be a measure of coping with the receding interest of the developed world in assisting developing countries; d.  Cooperation between countries of the South must not be analyzed and evaluated using the same standards as those used for North-South relations; e. Financial contributions from other developing countries should not be seen as Official Development Assistance from these countries to other countries of the South. These are merely expressions of solidarity and cooperation borne out of shared experiences and sympathies; f. South-South cooperation is a development agenda based on premises, conditions and objectives that are specific to the historic and political context of developing countries and to their needs and expectations. South-South cooperation deserves its own separate and independent promotion; g. South-South cooperation is based on a strong, genuine, broad-based partnership and solidarity; h. South-South cooperation is based on complete equality, mutual respect and mutual benefit; i. South-South cooperation respects national sovereignty in the context of shared responsibility; j.  South-South cooperation strives for strengthened multilateralism in the promotion of an action-oriented approach to development challenges; k. South-South cooperation promotes the exchange of best practices and support among developing countries in the common pursuit of their broad development objectives (encompassing all aspects of international relations and not just in the traditional economic and technical areas);

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l.  South-South cooperation is based on the collective self-reliance of developing countries; m.  South-South cooperation seeks to enable developing countries to play a more active role in international policy and decision-making processes, in support of their efforts to achieve sustainable development; n. The modalities and mechanisms for promoting South-South cooperation are based on bilateral, sub-regional, regional and interregional cooperation and integration as well as multilateral cooperation. 71.  The Ministers reaffirmed their commitments to fully implement the Havana Programme of Action, the Marrakech Plan of Implementation of South-South Cooperation and the Doha Plan of Action that taken together represent a comprehensive framework for intensified cooperation among developing countries. 72. The Ministers reiterated their support for the upcoming High-level United Nations Conference on South-South Cooperation, pursuant to General Assembly Resolutions 62/209 and 63/233 to be held in Nairobi, Kenya, and called for active participation in this conference. In this regard, they expressed appreciation to the Government of Kenya and welcomed the efforts of the UN High Level Committee on South-South Cooperation. The Ministers reiterated the principles on which South-South Cooperation is based, which were adopted by the Foreign Ministers of the Group of 77 and China, at their annual meeting in New York on 26 September 2008. 73. The Ministers reiterated their support to ongoing South-South initiatives undertaken by developing countries and called on Member States to expand their efforts towards strengthening South-South cooperation projects in accordance with the mandate of the Second South Summit. In this context, the Ministers requested the Chairman of the Group of 77 to take necessary steps for the operationalization of the South Fund for Development and Humanitarian Assistance launched on the occasion of IFCC-XII. The Ministers further called on Member States to host sectoral conferences in various fields of cooperation as well as advisory meetings of eminent personalities to update the Development Platform for the South as mandated by the Second South Summit held in Doha, Qatar from 12 to 16 June 2005. 74.  The Ministers welcomed the successful outcome of the First G-77 Ministerial Forum on Water Resources in Muscat (Sultanate of Oman) from 23 to 25 February 2009 and expressed their appreciation to the Government and the people of the Sultanate of Oman for hosting the Forum and for making all the necessary arrangements for reaching a successful outcome. 75. The Ministers welcomed the ongoing preparations by the Academy of Sciences for the Developing World (TWAS) to convene, in collaboration with UNESCO, a meeting of Ministers of Science and Technology of the Member States of the Group of 77 within the framework of the World Science Forum 2009 on 4 November 2009 in Budapest, Hungary and invited Ministers in-charge of science and technology and national academies of sciences and other relevant research institutions in Member States to participate actively in said meeting. The Ministers took note of the efforts by TWAS towards the operationalization of the Consortium on Science, Technology and Innovation for the South (COSTIS), in accordance with the mandate of the Second South Summit held in Doha, Qatar from 12 to 16 June 2005 and the decision by the Meeting of the Ministers of Science and Technology of the Member States of the Group of 77 held in Angra dos Reis, Rio de Janeiro, Brazil, on 3 September 2006. 76.  In this context, the Ministers look forward for the successful preparation and holding of the Thirteenth Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-XIII) to be held in 2010 in Asia in preparation for the Third South Summit. 77.  The Ministers mandated the Chairman of the Group of 77 to undertake consultations with a view to convening the Third South Summit to be held in 2010 in Africa. The Ministers also

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invited the Chairman to mark the commemoration of the 45th anniversary of the establishment of the Group of 77 at an appropriate occasion in 2009. 78. The Ministers approved the Report of the Twenty-fourth Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/TCDC (PGTF) contained in document G-77/AM(XXI)/2009/2 and endorsed its recommendations. The Ministers commended the Chairman of the PGTF for his continued commitment and expressed their satisfaction with the results achieved by the PGTF. In light of the substantial decrease in the interest earnings of the Fund caused by the current world financial situation as reported by the Chairman of the PGTF, the Ministers appealed to every Member State to make a significant one-time contribution to the PGTF on the occasion of the UN Pledging Conference for Development Activities to be held in New York on 9 November 2009. 79.  The Ministers approved the Financial Statement of the ECDC Account of the Group of 77 contained in document G-77/AM(XXI)/2009/4, as presented by the Chairman of the Group of 77 and urged those Member States that have not yet done so to make special efforts to pay their outstanding contributions. 80.  The Ministers expressed their deep appreciation to the Republic of the Sudan for its able leadership and for the excellent work and tireless efforts as the Chair country of the Group of 77 for 2009. As 2009 proved to be a challenging year for all developing countries, the commitment shown by the Republic of the Sudan as Chair country in pursuing the goals and objectives of the Group of 77 was a source of profound gratitude. The Ministers also commended the efficient work and continued valuable support provided by the secretariat of the Group of 77 in New York to the Chair country and to the Member States and congratulated the Executive Secretary of the Group of 77 for the achievement award presented to him during the opening ceremony of the Ministerial Meeting in recognition of his outstanding performance, his continued commitment and dedication to the goals and objectives of the Group of 77. 81.  The Ministers warmly welcomed the election by acclamation of the Republic of Yemen to the Chairmanship of the Group of 77 for 2010.

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34.  Thirty-fourth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 28 September 2010 a.  Ministerial Declaration The Ministers of Foreign Affairs of the Member States of the Group of 77 and China met at the United Nations Headquarters in New  York on 28 September 2010 on the occasion of their Thirty-fourth Annual Meeting to address the development challenges facing developing countries, and adopted the following Declaration: 1.  The Ministers remained fully convinced of the imperative of continuing to act in solidarity and unity for a peaceful and prosperous world that responds to their countries’ developmental aspirations. They, therefore, reaffirmed their full commitment to the principles and objectives of the Group of 77, and to protect and promote their collective interests through genuine international cooperation for development. 2.  The Ministers expressed their concern over the multiple inter-related and mutually exacerbating current global crises, in particular the world financial and economic crisis, the volatile energy prices, the food crisis and the challenges posed by climate change, which could further undermine the achievement of the internationally agreed development goals, including the Millennium Development Goals. 3.  The Ministers welcomed the convening of the High Level Plenary meeting on the Millennium Development Goals (MDGs) held at the United Nation Headquarters in New York from 20 to 22 September 2010 that adopted the outcome document entitled ‘Keeping the promise—United to achieve the Millennium Development Goals’. While also welcoming the progress made in some areas since 2005 they expressed their deep concern that such progress falls far short of what is needed, and urged developed countries to allocate new and additional resources to support the efforts of developing countries in meeting the MDGs as well as to urgently fulfill their commitments, in particular under MDG8. 4.  The Ministers reaffirmed the fact that the ongoing world financial and economic crisis has reversed many important developmental gains in developing countries and threatens to seriously undermine the achievement of the Millennium Development Goals by 2015. They recalled that the crisis in the financial sector spread to the global economy, causing, inter alia, declines in GNP, a fall in world trade and a rapid rise in unemployment. 5.  The Ministers stated in that regard that the global financial and economic crisis is not over and the recovery is uneven and uncertain, and there is no guarantee that the relapse will not occur. The systemic problems facing the global economy have to be resolved, including through the full accomplishment of the reform of the global financial system and architecture. There are still major and unfulfilled objectives, including the provision of development financing on a predictable manner to developing countries, the provision of funds to meet the urgent needs of developing countries arising from the effects of the crisis, and explore the possibility of the establishment of an international debt arbitration and debt workout mechanism. 6.  The Ministers were of the view that the Ad Hoc Open-ended Working Group of the General Assembly to follow up on the issues contained in the Outcome of the UN Conference on the World Financial and Economic and its Impact on Development will continue its work. 7.  The Ministers further highlighted the urgent need for a substantive and comprehensive reform of the international economic and financial system and architecture, including policies, mandates, scope and governance, to better enable it to respond and prevent financial and economic emergencies, effectively promote development and equitably serve the needs of Member States,

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particularly developing countries. International Financial Institutions in particular must have a clear development orientation. The Ministers called on all Member States to participate in an open, inclusive and transparent dialogue for a new international economic and financial system and architecture. 8.  The Ministers, having in mind the worst financial and economic crisis since the great depression that still remains and recognizing its severe impact that continues affecting developing countries, particularly the least developed, being also deeply worried of additional negative impacts as part of the second wave of the crisis happening now while signifying also a serious threat to developing countries in the years to come, recommended to hold a Follow-up Conference on the Financial and Economic Crisis and its Impact on Development for 2012. 9.  The Ministers emphasized that resorting to protectionism in any of its form, particularly by developed countries, endangers efforts towards global economic recovery, as well as the development prospects of developing countries. 10.  The Ministers stated that the current crisis demonstrates the urgent need for introducing internationally harmonized norms and standards for financial regulation and supervision, so that financial leverage and regulatory arbitrage does not endanger the stability of the global system. In this regard, they strongly urged against the use of financial protectionism by developed countries. 11.  The Ministers called for a new and significant, general SDR allocation, in the current basic period, to meet liquidity needs and promote development. Thus regular allocations of SDRs should also be undertaken. 12.  The Ministers believed also in enhanced regional and sub-regional efforts as sub-regional development banks, regional and sub-regional reserve currency arrangements, and regional and sub-regional integration initiatives, which may have an important complementary role in liquidity provision and development. 13.  The Ministers reaffirmed that appropriate measures must be taken to mitigate the negative effects of the crisis on the indebtedness of developing countries and to avoid a new debt crisis. Those measures should not be limited to the full use of the existing mechanisms, but should also include the provision of increased funds for debt rollover, innovative debt swap criteria, and increased concessionalities. They added that the joint Debt Sustainability Framework of the International Monetary Fund and the World Bank should be put under continued review with a coordinated and cooperative approach and a full inclusion of the views of developing countries, in an open and transparent manner. 14.  The Ministers stressed the critical importance of Official Development Assistance (ODA) as both a complement to other sources of financing and as a catalyst for development, facilitating the achievement of national development objectives, including the MDGs. The global crisis cannot be an excuse to avoid existing aid commitments. The Ministers stressed that an effective response to the current economic crisis requires timely implementation of existing aid commitments and that there is an urgent and unavoidable need for donors to fulfill them. Developed countries must meet and scale-up their existing bilateral and multilateral official development assistance commitments and targets. 15.  The Ministers reaffirmed the need for developed countries to urgently fulfill all their official development assistance commitments in particular the commitment to reach the target of 0.7 per cent of gross national product for official development assistance to developing countries by 2015 and to reach the level of at least 0.5 per cent of gross national product for official development assistance by 2010, as well as a target of 0.15 to 0.20 per cent of gross national product for official development assistance to least developed countries.

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16.  In order to fully harness the potential of trade it is important to uphold a universal, rules-based, open, non-discriminatory and equitable multilateral trading system that contributes to growth, sustainable development and employment, particularly for developing countries. In this context, developed countries should resist all protectionist measures and tendencies, affecting developing countries, including agricultural subsidies and non-tariff barriers to trade, and to rectify any trade distorting measures already taken, recognizing the right for developing countries to fully utilize their policy space consistent with WTO commitments. Developed countries should also demonstrate the flexibility and political will necessary for breaking the current impasse in the negotiations, with a view to concluding the Round as soon as possible to achieve an early and development oriented outcome. The early conclusion of the Round would provide much needed impetus to international markets, contributing to consolidate the recovery and establish the foundations of sustained growth. 17.  The Ministers stressed the importance of facilitating the accession of all developing countries, in particular the LDCs that apply for membership in the World Trade Organization (WTO), without political impediments, in an expeditious and transparent manner and with full observance of the principles of special and differential treatment for developing countries. 18.  The Ministers recognized that innovative mechanisms of financing can make a positive contribution in assisting developing countries to mobilize additional resources for development on a stable, predictable and voluntary basis. They reiterated that such financing should be disbursed in accordance with the priorities of developing countries, should not unduly burden them, and should neither substitute nor negatively affect the level of traditional sources of development financing, including ODA. While highlighting the considerable progress in innovative sources of financing for development, they also considered it important to scale up present initiatives and develop new mechanisms. As work is expanded and new initiatives undertaken, they stressed that priorities should remain focused, namely, on providing additional, stable and supplementary resources to traditional development financing. 19.  The Ministers stated that the United Nations is the only global body with universal membership and unquestioned legitimacy and is therefore well positioned to address global economic governance with the objective of reaching sustainable and socially balanced economic development. The role of the UN in global economic governance should thus be strengthened. For the United Nations to fulfill its role in global economic governance, the political will of all Member States to commit to the UN processes, to multilateralism and its underlying values is critical. Member States must commit to working in solidarity on coordinated and comprehensive global responses to global economic governance issues and to undertaking actions aimed at strengthening the role of the UN Development System in responding to global crises and their impact on development. For this the UN must also be equipped with the necessary resources and capabilities to effectively and quickly address global challenges. 20.  The Ministers stated that there was a need for a more coherent, and effective response of the UN on issues related to global economic governance. In that regard, an appropriate follow-up mechanism should be established within the UN to bridge the gap between policy making and implementations of commitments in that area. 21.  The Ministers recognized that addressing the root causes of persistent and increasing social and economic inequalities remains a significant challenge in fostering a more peaceful, prosperous and sustainable future. The Ministers reaffirmed the need for approaches aimed at reversing growing disparities and inequalities between rich and poor, both among and within countries. In this regard, the Ministers looked forward to the report of the Secretary General based on resolution 62/213 assessing the implications of inequality for development during the sixty-fifth session of the General Assembly.

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22.  The Ministers reaffirmed that economic and social development as well as environmental sustainability are the centerpieces of the objectives and operational activities of the United Nations. The achievement of the IADGs including the MDGs should continue to be the over-arching framework of the development activities of the UN system. 23.  The Ministers reiterated the need to fully implement all agreed commitments from all the major United Nations summits and conferences in the economic, social and environmental fields. They further emphasized the need for a strengthened and scaled up global partnership for development, based on the recognition of national leadership and ownership of development strategies. 24.  The Ministers recognized the special needs of Africa, the only continent currently not on track to achieve the Internationally Agreed Development Goals including the Millennium Development Goals, and called for the full and timely implementation of all commitments made so as to enable African countries to achieve the MDGs by 2015. The Ministers recalled the commitment of all States to establish a monitoring mechanism to follow up on all commitments by the international community related to the development of Africa as contained in the political declaration on ‘Africa’s development needs’ and stressed that all commitments to Africa should be effectively implemented and given appropriate follow-up by the international community and Africa itself. They underlined the importance of accelerating sustainable broad-based economic growth, which is pivotal to bringing Africa into the mainstream of the global economy. To this end, they underscored the urgency of addressing the special needs of Africa based on a partnership among equals, and underlined the need to provide new additional resources, technology transfer, as well as capacity building to African countries, and to support their sustainable development. 25.  The Ministers recognized the special challenges and needs of the Least Developed Countries particularly in the face of new and emerging challenges. The Ministers expressed grave concern that, with just five years to go before 2015, the least developed countries are lagging behind in meeting many of the MDG targets. They therefore called on developed countries to honour the full, timely and effective implementation of all commitments related to the MDGs with special focus on accelerated delivery of existing MDG8 commitments to ensure that all the MDGs are attained by all LDCs by 2015. In this regard, the Ministers looked forward to a successful outcome of the Fourth United Nations Conference on Least Developed Countries to be held in Istanbul in 2011. The Ministers stressed that the Conference should make a thorough review of the implementation of the Brussels Programme of Action and for defining a new generation of ambitious, comprehensive, targeted and results-oriented support measures to establish a new partnership between the least developed countries and their development partners for the next decade, with effective arrangements for follow-up, review and monitoring of the implementation of the new programme of action for the least developed countries. 26.  The Ministers reiterated their recognition of the special needs of and challenges faced by the landlocked developing countries caused by their lack of territorial access to the sea, aggravated by the remoteness from world markets and also the concern that the economic growth and social well-being of land-locked developing countries remain very vulnerable to external shocks as well as the multiple challenges the international community faces including the financial and economic crisis, and climate changes, and stressed the need for the international community to enhance development assistance to landlocked developing countries to help them overcome their vulnerabilities, build resilience and set themselves on a path of sustainable social and economic development. They therefore reaffirmed the need to urgently address the special development needs of and challenges faced by the landlocked developing countries through the full, timely and effective implementation of the Almaty Programme of Action, as contained in the Declaration on the midterm review of the Almaty Programme of Action.

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27.  The Ministers welcomed the convening of the high-level meeting held at the United Nations Headquarters in New York on 24–25 September 2010 that adopted the political declaration, on progress made in addressing the vulnerabilities of Small Island developing States through the implementation of the Mauritius Strategy for the Further Implementation of the Barbados Programme of Action. The Ministers noted with concern that despite the acknowledged unique and particular vulnerabilities of SIDS insufficient steps have been taken at the international level to address these vulnerabilities and effectively support the sustainable development of SIDS. In this regard, the Ministers urged the international community, in particular developed countries, to honour and scale up their commitments to support the sustainable development of SIDS including those contained in the BPOA and MSI and further called on developed countries to provide new, additional and predictable financial resources, technology transfer on favorable terms and capacity building to SIDS. 28. The Ministers called for enhanced international support for the development efforts of middle-income developing countries, including through technical assistance, the promotion of new partnerships and cooperation arrangements, including bilateral arrangements, the provision of resources, the transfer technology and the creation of capacity-building, while taking into account their national priorities and development policies. 29.  The Ministers also called for continued support for the development efforts of low-income developing countries in addressing their social, economic and developmental needs including through the provision of technical, financial and other forms of assistance, promotion of and strengthening of partnerships and cooperation arrangements at all levels. 30.  The Ministers acknowledged that the global nature of climate change calls for the widest possible cooperation by all countries and their participation in an effective and appropriate international response, in accordance with their common but differentiated responsibilities and respective capabilities as well as their social and economic conditions. In this regard, the Ministers reiterated that UN Framework Convention on Climate Change and its Kyoto Protocol remains the central multilateral framework for cooperative action to address climate change. Ministers further stressed that the process of work under the UNFCCC must be open, party-driven, inclusive and transparent. 31.  The Ministers urged developed countries to undertake ambitious and enhanced commitments under the Kyoto Protocol in subsequent commitment periods and to ensure that there is no gap between the first and subsequent commitment periods. They also urged the international community to assist developing countries to address the consequences of climate change, particularly through new, additional and predictable financial resources, capacity building, and access to and transfer of technology. 32.  The Ministers looked forward to positive outcomes at the sixteenth Conference of the Parties (COP16) and the sixth Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP6) to be held in Cancun, Mexico, from 29 November to 10 December 2010. 33. The Ministers welcomed with appreciation South Africa’s commitment to host the 17th Conference of the Parties (COP 17) to the United Nations Framework Convention on Climate Change (UNFCCC) and the seventh Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP7) in 2011. 34.  The Ministers took note of the offer made by the Government of the State of Qatar to host in 2012 the 18th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP18) and the eighth Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP8) while at the same time the Ministers will not be prejudging the final decision by the Asian group in the UNFCCC.

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35.  The Ministers expressed their concern over the increased frequency and scale of natural disasters in recent years which have resulted in massive loss of life and long term negative social, economic and environmental consequences for countries, particularly developing countries. They called upon the international community, particularly developed countries and the relevant international organizations to increase their assistance to the affected states, including by supporting efforts towards enhancing their national and regional capacities for implementation of plans and strategies for preparedness, rapid response, recovery and development on earthquakes, tsunamis, landslides, and volcanic eruptions, and extreme weather events such as heat waves, severe droughts and floods, sand and dust storms. 36.  The Ministers welcomed the convening of the High level Meeting of the United Nations General Assembly on the International Year of Biodiversity on the 22nd of September 2010. They noted the urgent need to meet the three objectives of the Convention and their target of reducing biodiversity loss in the Strategic Plan of the Convention on Biological Diversity for the Period 2011–2020. 37. The Ministers looked forward to a successful and comprehensive outcome at the Tenth Meeting of the Conference of the Parties to the Convention on Biological Diversity (COP10), including the adoption of the Access and Benefit Sharing (ABS) Protocol, which will be held from 18 to 29 October 2010 in Nagoya, Japan. 38.  The Ministers welcomed the ongoing efforts by the CBD Secretariat to finalize the draft Multi-Year Plan of Action for South-South Cooperation on Biodiversity for Development as mandated by COP-9 and looked forward to its adoption at the Tenth Meeting of the Conference of the Parties to the Convention on Biological Diversity (COP-10). In this context, they welcomed the convening of the First Forum on South-South Cooperation on Biodiversity to be held in Nagoya, Japan, on 17 October 2010, and commended the CBD Secretariat for establishing a strategic partnership with the Group of 77 in the field of South-South cooperation. 39.  The Ministers recognized the challenge posed by desertification and land degradation and resolved to support and strengthen the implementation of the United Nations Convention to Combat Desertification in countries experiencing serious drought and/or desertification, particularly in Africa to address causes of desertification and land degradation, as well as poverty resulting from land degradation. 40.  The Ministers urged developed countries to provide new, adequate and predictable financial resources to ensure the full and effective implementation of the Convention and the ten year strategic Plan and Framework to enhance the implementation of the Convention (2008–2018). The Ministers also called for continued efforts to raising the awareness of desertification, land degradation and drought at all levels through the celebration of the United Nations Decade for Deserts and the Fight against Desertification 2010–2020. 41.  The Ministers reiterated their support to strengthening political commitment and action at all levels to effectively implement the global objectives on forest and sustainable forest management of all types of forests in order to reduce the loss of forest cover and improve the livelihoods of those that depend on forests through the development of a comprehensive and more effective approach to financing activities including the establishing of a voluntary global forest fund. They looked forward to positive outcomes of the work of the open-ended intergovernmental ad hoc expert Group on Financing the sustainable forest management. 42.  The Ministers called on the international community and the United Nations system to fully support Caribbean States in their efforts to gain international recognition of the Caribbean Sea as a special area in the context sustainable development, recognizing the importance of the Caribbean Sea to present and future generations and to the heritage and the continuing economic well-being and sustenance of people living in the area, and the urgent need for the countries of

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the region to take appropriate steps for its preservation and protection, with the support of the international community. 43.  The Ministers stressed the need to cooperate at global and regional levels with a view to preventing and managing dust/sand storms including in sharing related information, forecasting and early warning system. The Ministers stressed that combating sand and dust storms demands financial support and the transfer of technology from developed countries to developing countries. 44.  The Ministers emphasized the urgent need to increase efforts at the national, regional and international levels to address food security and agriculture development as an integral part of the international development agenda. They underlined the need for sustained funding and increased targeted investment to enhance world food production and called for new and additional financial resources from all sources to achieve sustainable agriculture development and food security. 45.  The Ministers emphasized the importance of addressing energy issues, including access to affordable energy, energy efficiency, as well as sustainability of energy sources and use, as part of global efforts for the achievement of the Millennium Development Goals and the promotion of sustainable development. 46.  The Ministers supported the implementation of national policies and strategies to combine as appropriate the increased use of new and renewable energy sources and low emission technologies, more efficient use of energy, greater reliance on advanced energy technologies, including cleaner fossil fuel technologies and the sustainable use of traditional energy resources, as well as promoting access to modern, reliable, affordable and sustainable energy services; and enhancing national capacities to meet the growing energy demand, as appropriate, supported by international cooperation in this field, and by promoting the development and dissemination of appropriate, affordable and sustainable energy technology, as well as the transfer of such technologies on mutually agreed terms. 47.  The Ministers reiterated their support to the convening of a World Summit on Sustainable Development in Brazil in 2012 to review the 20-year progress achieved in the implementation of the outcomes of the United Nations Conference on Environment and Sustainable Development, held in Rio de Janeiro, on 3–14 June 1992, including the World Summit on Sustainable Development held in Johannesburg, South Africa, from 26 August to 4 September 2002. 48. The Ministers welcomed the initiative of the UN General Assembly to proclaim the International Year of Youth: Dialogue and Mutual understanding (12 August 2010–11 August 2011) and called on all countries and all relevant stakeholders, including civil society, the private sector and international cooperation agencies, to participate actively in all activities related to the year and the United Nations Conference on Youth. 49.  The Ministers acknowledged the adoption by the General Assembly of its resolution 64/289 on the system-wide coherence, which provide a comprehensive review of the current status of the work of the UN regarding the operational activities for development. They reiterated the fact that the fundamental characteristics of the UN operational activities for development must remain, among others, their universal, voluntary and grant nature, their neutrality, their accountability and their multilateralism, and called on the UN development system to respond to the development needs of programme countries in a flexible and transparent manner. 50.  The Ministers reaffirmed that the operational activities should be carried out for the benefit of recipient countries, at the request of those countries and in accordance with their own policies and priorities for development. Strengthening the role and capacity of the UN development system to assist countries in achieving their development goals requires continued improvement in its effectiveness, efficiency, coherence and impact, along with a significant increase in resources.

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51.  The Ministers also reaffirmed the key importance of national ownership and national leadership, and underscored the fact that there is no ‘one size fits all’ approach to development and that development assistance by the United Nations development system should be able to respond to the varying demands of programme countries and should be in alignment with their national development plans and strategies in accordance with established mandates. 52.  The Ministers welcomed the intergovernmental meetings of programme country pilots held in Kigali, from 19 to 21 October 2009, and in Hanoi, from 14 to 16 June 2010, took note with appreciation of the Kigali and Hanoi declarations, and in this regard also took note of the progress made by ‘delivering as one’ countries in their own country led evaluations. The Ministers looked forward to receiving the outcome of the independent evaluation of lessons learned from the ‘delivering as one’ pilots, covering all aspects of the initiative, at the sixty-sixth session of the General Assembly, in accordance with GA resolution 64/289. 53.  The Ministers welcomed the establishment of the United Nations Entity for Gender Equality and the Empowerment of Women (UN Women), through the adoption of General Assembly resolution 64/289 on system-wide coherence, and pledged their full support to its operationalization, based on the principle of universality, which will strengthen the United Nations’ ability to support the achievement of gender equality and the empowerment of all women in the world. 54.  The Ministers affirmed that the sovereign equality of Member States, as enshrined in the Charter of the United Nations, must be respected, including throughout reform processes, irrespective of the contributions that individual Member States make to the budget of the Organization. Governance arrangements and decision-making process exercised through the General Assembly, its Main Committees and subsidiary bodies are the sole responsibility of the Member States in accordance with the United Nations Charter. They upheld the role of the Member States, through the relevant main committee of the General Assembly, in the consideration of budgetary and administrative matters. 55.  The Ministers reaffirmed that the Fifth Committee of the General Assembly is the sole Main Committee of the organization entrusted with responsibilities for administrative, financial and budgetary matters. In this regard, the Ministers requested that any budgetary, financial, and administrative related matters including those being dealt with in connection with the establishment of a peacekeeping operation or a special political mission be discussed solely in the framework of the Fifth Committee, in conformity with the UN Charter. 56.  The Ministers strongly supported the oversight role performed by the General Assembly, as well as its relevant intergovernmental and expert bodies, in the planning, programming, budgeting, monitoring and evaluation. They reaffirmed that any Secretariat and management reform efforts, including on its budget process, must not intend to change the intergovernmental, multilateral and international nature of the organization, but must strengthen the ability of Member States to perform their oversight and monitoring role. They also reaffirmed the right of the entire membership of the United Nations to pronounce on the administration of the Organization, including on its budgetary matters. 57.  The Ministers further reaffirmed the principle of ‘capacity to pay’ as the fundamental criterion in the apportionment of the expenses of the United Nations and, while recalling General Assembly resolution 64/248, rejected any change to the elements of the current methodology for the preparation of the scale of assessments aimed at increasing the contributions of developing countries. In this regard, they emphasized that the core elements of the current methodology of the scale of assessment, such as base period, Gross National Income, conversion rates, low per capita income adjustment, gradient, floor, ceiling for Least Developed Countries and debt stock adjustment must be kept intact and are not negotiable. 58.  The Ministers stressed that the current maximum assessment rate, or ceiling, had been fixed as a political compromise and is contrary to the principle of the capacity to pay and a

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fundamental source of distortion in the scale of assessments. In this context, they urged the General Assembly to undertake a review of this arrangement, in accordance with paragraph 2 of General Assembly resolution 55/5 C. 59.  The Ministers affirmed that the current principles and guidelines for the apportionment of the expenses of peacekeeping operations approved by the General Assembly in its relevant resolutions should constitute a basis for any discussion on the peacekeeping scale. In this regard, the Ministers stressed that the peacekeeping scale must clearly reflect the special responsibilities of the permanent members of the Security Council for the maintenance of peace and security. The Ministers also recalled that the economically less developed countries have limited capacity to contribute towards the budgets of peacekeeping operations. In this context, the Ministers emphasized that any discussion on the system of discounts applied to the peacekeeping scale should take into account the conditions of developing countries whose current positions must not be negatively affected. The Ministers stressed, in this regard, that no member of the Group of 77 and China who is not a permanent member of the Security Council, should therefore be categorized above level C. 60.  The Ministers reaffirmed that the financial stability of the United Nations should not be jeopardized by arbitrary measures. The Ministers stressed that any efforts to use financial contributions to push for the adoption of certain proposals are counterproductive and violate the obligations of the Member States to provide resources for the Organization, as enshrined in its Charter. 61.  The Ministers, in this context, rejected all unilateral coercive measures contrary to the international law, which obstruct and sometimes impede payments of assessed contributions from Members of the Group of 77 and China to the budgets of the Organization. 62.  The Ministers strongly reaffirmed the legal obligation of all member states to bear the financial expenses of the UN, in accordance with the Charter, and urged all Member States to pay their assessed contributions on time, in full and without conditions. They also stressed that the special and genuine difficulties faced by some developing countries that prevent them from meeting temporarily their financial obligations should be fully taken into account and that the decisions of the General Assembly on the agenda item ‘scale of assessments’ must be responsive to such difficulties. 63.  The Ministers stressed that the level of resources to be approved by the General Assembly must be commensurate with all mandated programmes and activities in order to ensure their full and effective implementation. They also reaffirmed the priorities of the Organization as approved by the General Assembly and the need for the Secretary-General to reflect these priorities when presenting proposed programme budgets. 64.  The Ministers reiterated that there is a need to strike a balance in reflecting the agreed priorities of the Organization in the allocation of resources to the United Nations regular budget, which is persistently to the detriment of the development activities. 65.  In this context, the Ministers stressed that the strengthening of the United Nations and its role in international cooperation for development is essential to respond to current and future challenges and opportunities emanating from the process of globalization. They recognized that the United Nations needs to improve its capabilities and capacities to fully implement its mandates and to ensure the effective delivery of its programmes in the social and economic development field. In this regard, they urge the Secretary-General to further strengthen the development pillar of the whole organization, including its development account. 66.  The Ministers stressed the importance of ensuring that the Secretariat meets the highest standards of accountability, transparency, integrity and ethical conduct. The Ministers, therefore, urged the Secretary-General, as a matter of priority, to fully implement General Assembly resolution 64/259.

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67.  The Ministers expressed concern at the inadequate share of the developing countries in the United Nations system of procurement. They emphasized that the United Nations procurement should be on as wide a geographical basis as possible with preferential treatment for the developing countries. They further underlined that the United Nations supplier roster should be representative of the membership of the Organization and underscored the need to implement concrete measures to ensure greater market access by businesses from developing countries in United Nations procurement. 68.  The Ministers stressed the need to increase the representation of developing countries, in particular at the senior levels, and to improve geographic distribution in the Secretariat and more transparency in recruitment process. 69.  The Ministers firmly rejected the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries, and reiterated the urgent need to eliminate them immediately. They emphasized that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. They, therefore, called on the international community neither to recognize these measures nor apply them. 70.  The Ministers reiterated their call for the immediate and full withdrawal of Israel, the occupying Power, from the Occupied Palestinian Territory, including East Jerusalem, and the occupied Syrian Golan to the line of 4 June 1967 and from the remaining Lebanese occupied land. They reaffirmed their support for a Middle East peace process aimed at achieving a comprehensive, just and lasting peace in the region, in accordance with Security Council resolutions 242 (1967), 338 (1973), 425 (1978) and 1850(2008) and the principle of land for peace. In this context, they also reaffirmed their support for the Arab Peace Initiative endorsed by the Arab Summit since March 2002. 71. The Ministers condemned the ongoing Israeli military campaign against the Palestinian people in the Occupied Palestinian Territory, including East Jerusalem, which has resulted in the loss of civilian lives and the vast destruction of Palestinian properties, infrastructure and agricultural lands. The Ministers expressed deep concern about the further decline of the social and economic conditions of the Palestinian people, particularly in the besieged Gaza Strip, as a result of the illegal Israeli practices, including construction of settlements and the Wall and the imposition of blockade and hundreds of checkpoints. They called upon Israel, the occupying Power, to cease immediately all illegal measures impairing the Palestinian economy and development, including, in particular, the inhumane and illegal blockade imposed on the Gaza Strip and restrictions on the movement of persons and goods, including commercial trade throughout, into and out of the Occupied Palestinian Territory and to make reparation for all damages caused to Palestinian properties, institutions and infrastructure. They reiterated their call upon the international community to continue providing much needed developmental and humanitarian assistance to the Palestinian people during this critical period particularly for the reconstruction and economic recovery in the Gaza Strip. 72.  The Ministers expressed support for the assistance in the demining efforts and cluster bombs clearance in the south of Lebanon. They further expressed their deep concern about the lack of financial resources for carrying out the remaining demining and clearance of mines and cluster munitions in the south of Lebanon, and called upon the international donors and the United Nations system to provide the appropriate and adequate financial resources to the Mine Action Coordination Center South Lebanon in order to allow it to perform its task. The Ministers reiterated their call on Israel to complete the submission to the United Nations of adequate information on these mines and cluster munitions, as well as all remaining maps related to their locations, which are hindering the development and rehabilitation of the south of Lebanon and preventing

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the agricultural exploitation of vast areas of rich agrarian land. The Ministers requested Israel to assume responsibility for the landmines laying and cluster bombs usage in the south of Lebanon and assume defraying the cost of clearance as well as providing compensation for Lebanon for any ensuing losses and for reclaiming the affected areas in the south of Lebanon for productive purposes. 73.  The Ministers supported the inalienable right of Lebanon to utilize its waters in accordance with international law, in particular to ensure the social and economic needs of its population in the liberated areas and villages. They called on Israel to end its air violations of Lebanese sovereignty and other violations that severely damage the security situation which is a critical factor in promoting the economy and tourism industries. 74.  The Ministers reaffirmed the importance of strengthening South-South Cooperation especially in the current international economic environment and reiterated their support for South-South Cooperation as a strategy to sustain the development efforts of developing countries as a means of enhancing their participation in the emerging global economy. They reiterated the principles of South-South Cooperation as adopted by the Twelfth Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-XII), which was held from 10 to 13 June 2008 in Yamoussoukro, Côte d’Ivoire. 75.  The Ministers reiterated their position that South-South cooperation is a complement to, rather than substitute for, North-South development cooperation. South-South cooperation is a collective endeavor of developing countries based on premises, conditions and objectives that are specific to the historic and political context of developing countries and to their needs and expectations and as such South-South cooperation deserves its own separate and independent promotion as reaffirmed in the Nairobi outcome document and the Development Platform for the South of the G-77. 76.  The Ministers welcomed the adoption of the UNGA resolution 64/222 of 21 December 2009, which reiterated the request made by the Heads of state and government at the Second South Summit held in Doha from 12 to 16 June 2005 inviting ‘the Secretary-General, in consultation with member states, to take concrete measures to further strengthen the Special Unit for South-South Cooperation as a separate entity and a focal point for South-South cooperation within the United Nations system as reaffirmed by General Assembly resolution 58/220 of 23 December 2003, so as to enable it to carry out its full responsibilities, in particular through of mobilization of resources for the advancement of South-South cooperation including through triangular cooperation.’ 77.  The Ministers welcomed the Nairobi outcome document of the High-level UN Conference on South-South Cooperation which was held from 1 to 3 December 2009 in Nairobi, and looked forward to its effective implementation. In this context, they reaffirmed the importance of strengthening the current UN institutional mechanisms for South-South cooperation and expressed their support to the ongoing process by the Joint Inspection Unit (JIU) to review the existing United Nations institutional arrangements in support of South-South and triangular cooperation including the role of Special Unit for South-South cooperation in accordance with the UNGA resolution 64/222 of 21 December 2009 and HLC Decision 16/1 of 4 February 2010. 78.  The Ministers stressed that the General Assembly High-level Committee on South-South Cooperation is the central multilateral policy-making body in the UN system to review and assess global and system-wide progress on and support for South-South development cooperation, including triangular cooperation, and to provide overall guidance on future directions. The Ministers urged all partners interested in supporting South-South cooperation to be guided by the principles and objectives for such cooperation established in such internationally agreed documents as the Buenos Aires Plan of Action on Technical Cooperation among Developing Countries that was adopted by General Assembly resolution 33/144 dated 19 December 1978 and

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the Nairobi Outcome Document on South-South Cooperation that was endorsed by GA resolution 64/222 dated 21 December 2009, as well as other relevant GA resolutions. 79.  In this context, the Ministers welcomed the convening of the South-South Global Assets and Technology Exchange Convention hosted by the United Nations Pavilion at the World Expo in Shanghai from 20 to 22 October 2010 as well as the convening by the Special Unit for South-South Cooperation of the Global South-South Development Expo in Geneva from 22 to 26 November 2010 hosted by the International Labor Organization (ILO). 80.  The Ministers welcomed the generous offer by the Government of the Libyan Arab Jamahiriya to host the G-77 Third South Summit and invited member states to host sectoral conferences and other high-level preparatory meetings prior to the South Summit. 81.  The Ministers also welcomed the generous offer by the Islamic Republic of Iran to host the Second Ministerial Forum on Water as well as the generous offer by the Syrian Arab Republic to host a Sectoral Meeting on Food and Agriculture. In this context, the Ministers also renewed their invitation to all member states of the Group of 77 to consider hosting the Thirteenth Session of the Intergovernmental Follow-up and Coordination Committee (IFCC-XIII) in preparation of the Third South Summit. 82.  The Ministers welcomed the launching on the occasion of the World Forum on Sciences in Budapest, Hungary on December 4th 2009 of the G77 Consortium on Science, Technology and Innovation (COSTIS) in partnership with UNESCO and urged the Director-General of UNESCO to provide necessary support for the operationalization of COSTIS and for the convening of the First General Conference of the Consortium, prior to the G-77 Third South Summit. 83.  The Ministers approved the Report of the Twenty-fifth Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/TCDC (PGTF) contained in document G-77/ AM(XXII)/2010/2 and endorsed its recommendations. The Ministers commended the Chairman of the PGTF for his continued commitment and expressed their satisfaction with the results achieved by the PGTF. In light of the substantial decrease in the interest earnings of the Fund caused by the current world financial situation as reported by the Chairman of the PGTF, the Ministers appealed to every Member State to make a significant one-time contribution to the PGTF on the occasion of the UN Pledging Conference for Development Activities to be held in New York on 8 November 2010. 84.  The Ministers approved the Financial Statement of the ECDC Account of the Group of 77 contained in document G-77/AM(XXII)/2010/3, as presented by the Chairman of the Group of 77 and urged those Member States that have not yet done so to make special efforts to pay their outstanding contributions. 85.  The Ministers expressed their deep appreciation to the Republic of Yemen for its able leadership and for the excellent work and tireless efforts as the Chair country of the Group of 77 for 2010. The Ministers also commended the efficient work and continued valuable support provided by the Executive Secretary of the Group of 77 in New  York to the Chair country and to the Member States. 86.  The Ministers warmly welcomed the election by acclamation of the Republic of Argentina to the Chairmanship of the Group of 77 for 2011. 87.  The Ministers welcomed the admission of the Republic of Tajikistan as a member of the Group of 77.

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35.  Thirty-fifth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 23 September 2011 a.  Ministerial Declaration The Ministers of Foreign Affairs of the Member States of the Group of 77 and China met at the United Nations Headquarters in New  York on 23 September 2011 on the occasion of their Thirty-fifth Annual Meeting. The Ministers reviewed the world economic situation and the development challenges faced by developing countries, and adopted the following Declaration: 1.  The Ministers, after reviewing the world economic situation, noted that while growth has been resilient in some developing countries, it remains lower than pre-crisis levels in most other developing countries. A majority of developing countries are still confronted by numerous shared and common problems and great challenges such as extreme poverty, global food crisis and continued food insecurity, high level of unemployment, external debt burden, lack of financial aid and climate change negative effects. Strong and sustained growth is critical to developing countries to meet the internationally agreed development goals including the Millennium Development Goals (MDGs). 2.  The Ministers also restated that the global financial and economic crisis is not over and the recovery is uneven and uncertain. The systemic problems facing the global economy have to be resolved, including through the full accomplishment of the reform of the global financial system and architecture. 3.  The Ministers, reaffirmed that having in mind the worst financial and economic crisis since the great depression that still remains and recognizing its severe impact that continues affecting developing countries, particularly the least developed, being also deeply worried of additional negative impacts as part of the second wave of the crisis happening now while signifying also a serious threat to developing countries in the years to come, reiterated the recommendation to hold a Follow-up Conference on the Financial and Economic Crisis and its Impact on Development for 2012, and they stressed that the Ad Hoc Open-ended Working Group of the General Assembly to follow-up on the issues contained in the Outcome of the United Nations Conference on the World Financial and Economic Crisis and its Impact on Development will continue its work. 4.  The Ministers noted that the crisis has affected developing countries, not only in economic terms, by, inter alia, the presence of barriers to trade as well as to finance in some of the anti-crisis measures taken by some developed countries, but also on social development, leading to major loss of jobs and difficulties of governments to finance social programmes that address poverty or provision of basic amenities which threaten the attainment of the internationally agreed development goals including the Millennium Development Goals. 5.  The Ministers expressed deep concern about the ongoing adverse impacts, particularly on development, of the world financial and economic crisis. In this context, the Ministers stressed the necessity to urgently address the problems, emphasizing that such a crisis should not be used under any circumstances as an excuse to slow down or not fulfill the obligations and commitments of the developed partners towards the developing countries. Additional substantial support is needed to address poverty, unsustainable external debt and apply solutions towards a durable response towards the climate change impact experienced by developing countries. 6.  The Ministers reaffirmed the urgent need for an effective response to the current economic crisis which requires timely implementation of existing aid commitments by developed countries. A  strengthened United Nations framework for enhancing coordination and complementarity

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should be at the centre of efforts to bridge this gap, building consensus on efficient and effective solutions for global economic, social and environmental issues. 7.  The Ministers expressed concern that the world financial and economic crisis continues to threaten the debt sustainability in some developing countries, inter alia, through its impact on the real economy and the increase in borrowing undertaken in order to mitigate the negative impacts of the crisis, and in that regard called upon all Governments to promote and contribute to the discussions, including within the United Nations and other appropriate forums, on the need and feasibility of new sovereign debt restructuring and debt resolution mechanisms that take into account the multiple dimensions of debt sustainability and its role on the achievement of the internationally agreed development goals, including the Millennium Development Goals. 8. The Ministers reaffirmed that economic and social development is the centerpiece of the objectives of the United Nations. The achievement of the internationally agreed development goals including the MDGs should continue to be the over-arching framework of the development activities of the UN system. The Ministers reiterated the need to fully implement all agreed commitments from all the major United Nations summits and conferences in the economic, social and related fields. They further emphasized the need for a strengthened global partnership for development, based on the recognition of national leadership and ownership of development strategies. 9.  The Ministers stated that the United Nations is the only global body with universal membership and unquestioned legitimacy and is therefore well positioned to address global economic governance with the objective of reaching sustainable and socially balanced economic development. The role of the UN in global economic governance should thus be strengthened. For the United Nations to fulfill its role in global economic governance, the political will of all Member States to commit to the UN processes, to multilateralism and its underlying values is critical. Member States must commit to working in solidarity on coordinated and comprehensive global responses to global economic governance issues and to undertaking actions aimed at strengthening the role of the UN Development System in responding to global crises and their impact on development. For this the UN must also be equipped with the necessary resources and capabilities to effectively and quickly address global challenges. 10.  In this regard, the Ministers welcomed the decision adopted by the General Assembly in its Resolution 65/94 to include in the provisional agenda of its sixty-sixth session, under the item entitled ‘Strengthening of the United Nations System’, a new sub-item, entitled ‘Central role of the United Nations system in global governance’. 11.  The Ministers stated that there was a need for a more coherent, and effective response of the UN on issues related to global economic governance. In that regard, an appropriate follow-up mechanism should be established within the UN to bridge the gap between policy making and implementation of commitments in that area. 12.  The Ministers took note with appreciation of the report A/65/866 on the review of the implementation of General Assembly resolution 61/16 on the strengthening of the Economic and Social Council and encouraged all Members States, the ECOSOC, the regional commissions and other entities of the United Nations system to consider the recommendations contained in this report. 13.  The Ministers stated that global governance should also be addressed within the context of a fair and inclusive globalization supported by strengthened multilateralism. Achieving more sustainable and balanced global growth will require close coordination of macroeconomic policy decisions with other areas of global governance, including those related to the multilateral trading system; aid architecture; external debt, poverty eradication and sustainable development,

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including climate change. In that regard, international financial institutions need a more coherent, representative, responsive and accountable governance, reflecting the realities of the twenty-first century. 14.  The Ministers took note of the recent developments in the Bretton Woods Institutions (BWIs), and called for an expeditious completion, as soon as possible, of a much more ambitious reform process of the governance structure of those Institutions and of an accelerated road map for further reforms on voice, participation and enhanced voting power of developing countries based on an approach that truly reflects its development mandate and with the involvement of all shareholders in an equitable, transparent, consultative and inclusive process. 15.  The Ministers reaffirmed that Official Development Assistance (ODA) remains essential as a catalyst for development, facilitating the achievement of national development objectives, including the MDGs. The global financial and economic crisis cannot be an excuse to avoid existing aid commitments by developed countries. An effective response to the ongoing economic crisis requires timely implementation of existing aid commitments and an urgent and unavoidable need for donors to fulfill them. 16.  The Ministers stressed that developed countries must meet and scale-up their existing bilateral and multilateral official development assistance commitments and targets made, inter alia, in the United Nations Millennium Declaration, the Monterrey Consensus, the 2005 World Summit Outcome, at the G8 summit in Gleneagles, in the Doha Declaration for Financing for Development and in other relevant fora. An enhanced predictable and sustainable flow of ODA is essential to meet the regular development challenges as well as the new and emerging challenges in developing countries, in particular in Least Developed Countries (LDCs) and other vulnerable developing countries. 17.  The Ministers reiterated that, as a group, developed countries are still far from achieving the longstanding goal of mobilizing 0.7 per cent of GNP in ODA to developing countries, including the target of 0.15–0.20 per cent of ODA to the LDCs. In order to meet agreed commitments and targets, the Ministers called the developed countries to establish clear and transparent timetables within their national budget allocation processes to reach the level of 0.7 per cent for ODA to developing countries, including the target of 0.15–0.20 per cent of ODA to the LDCs by 2015 at the latest. Notwithstanding the positive impact of debt relief on development, it should not be counted as part of the ODA contribution. The Ministers reaffirmed that the full implementation of these commitments will substantially boost the resources available to push forward the international development agenda and to assist developing countries to mitigate and more effectively respond to the crisis in accordance with their national strategies. 18.  The Ministers recognized that innovative mechanisms of financing can make a positive contribution in assisting developing countries to mobilize additional resources for development on a stable, predictable and voluntary basis. They reiterated that such financing should be disbursed in accordance with the priorities of developing countries, should not unduly burden them, and should neither substitute nor negatively affect the level of traditional sources of development financing, including ODA. While highlighting the considerable progress in innovative sources of financing for development, they also considered it important to scale up present initiatives and develop new mechanisms, as appropriate. As work is expanded and new initiatives undertaken, they stressed that priorities should remain focused, namely, on providing additional, stable and supplementary resources to traditional development financing. 19.  The Ministers stressed the importance of establishing an appropriate follow-up mechanism within the United Nations system to bridge the gap between policy making and implementation of commitments, particularly through the establishment of a Financing for Development Commission as a subsidiary body of ECOSOC. It is also important for Member States to support efforts to strengthen and further advance the Financing for Development process, which would

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help enhance coherence and consistency of the financial and trading systems to ensure they support the implementation of the internationally agreed development goals. 20.  The Ministers deemed it important to strengthen the concepts of national ownership and leadership of their development process and policy space. The Ministers reiterated that developing countries should have the required policy space to formulate their development strategies in keeping with national development policies, strategies and priorities to reflect the particular circumstances of each country. 21.  In this respect, it must be borne in mind that, in the context of the World Bank, client countries are the owners of their development policies and that selectivity in strategy and actions of that institution must be guided, first and foremost by developing countries’ priorities and preferences. 22.  The Ministers reiterated their call for a new and significant Special Drawing Rights (SDR) allocation at the beginning of the upcoming basic period, to meet liquidity needs and promote development. Hereon regular allocations of SDRs should also be undertaken. 23.  The Ministers also expressed their deep concern on the increasing inequality between developed and developing countries since most developing countries have been deprived of financial investment despite the different reforms and policies they have undertaken to create a more attractive investment climate. The reform policies are often constrained by conditionalities imposed by the international financial institutions. There is a need for conscious policy measures to facilitate foreign direct investment (FDI) to developing countries, including investment guarantee schemes, favorable trade access, production and supply agreements, local processing and marketing of raw materials and commodities. 24.  While recognizing that international capital flows depend largely on decisions taken by private actors, the Ministers called on developed countries to take measures to facilitate and redirect such flows to developing countries on a more predictable, stable and equitable manner. In particular, developed countries should take concrete steps to avoid financial protectionism and rectify any measures adopted in that regard during the crisis, including subsidies to ailing industries and sectors. Additional efforts should be taken to enhance private flows in support of development and maximize the development impact of FDI, particularly with regard to linkages with domestic production activities, transfer of technology and research and development activities. 25.  The Ministers stressed that additional substantial resources including short-term liquidity and long-term development financing and grants are needed in order to achieve the development goals, including in particular those related to health and education. In that regard, the United Nations system, including the Bretton Woods institutions and the World Trade Organization, should translate all commitments made at the major United Nations Conferences and Summits in the economic, social and related fields into action. 26.  The Ministers underlined that middle-income countries face significant challenges in their efforts to achieve the internationally agreed development goals, including the Millennium Development Goals. In this regard, it is of utmost importance that international support, through its various forms, is well aligned with national priorities to address the special development needs of middle-income countries. 27.  The Ministers also called for continued support for the development efforts of low-income developing countries in addressing their social, economic and developmental needs including through the provision of technical, financial and other forms of assistance, promotion of and strengthening of partnerships and cooperation arrangements at all levels. The Ministers highlighted that national averages based on criteria such as per capita income do not usually reflect accurately the actual particularities and special development needs of significant diverse middle income countries.

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28.  The Ministers reaffirmed that in order to fully harness the potential of trade it is important to uphold a universal, rules-based, open, non-discriminatory and equitable multilateral trading system that contributes to growth, sustainable development and employment, particularly for developing countries. In this context, developed countries should desist from all protectionist measures and tendencies, affecting developing countries, including agricultural subsidies and non-tariff barriers to trade, and rectify any trade distorting measures already taken. 29. The Ministers reiterated that developed countries should demonstrate the flexibility and political will necessary for breaking the current impasse in the Doha Round of negotiations, with a view to concluding an agreement as soon as possible to achieve an early and development-oriented outcome. The early conclusion of the Round would provide much needed impetus to international markets, contributing to consolidate the recovery and establish the foundations of sustained growth. 30. The Ministers emphasized the importance of UNCTAD XII, in particular ‘The Accra Accord’, which reiterated UNCTAD’s importance as the focal point within the UN for the integrated treatment of trade and development and the interrelated issues of finance, investment, technology and sustainable development, and the need to fully implement its mandate for policy analysis and policy advice which is indispensable for forging consensus building on development. The Ministers looked forward to the concrete and successful convening of UNCTAD XIII from 21 to 26 April 2012 in Doha, Qatar, under the theme ‘Development-centred globalization: Towards inclusive and sustainable growth and development’ as well as the Group of 77 and China Ministerial Meeting preparatory to UNCTAD XIII. 31.  The Ministers expressed their deep concern on the continuing shortfall of technology transfer, know-how and expertise towards developing countries. They emphasized the need to adopt appropriate measures to overcome the technological gap between developing and developed countries and to work towards arrangements that facilitate the process of technology transfer. Technology transfer to support economic and social development and the transfer of environmentally sound and clean technologies are key to advance the development efforts of the South. Developing countries should be enabled to develop their own technology with the support of the international community, including building local capacity to design and develop technologies. 32.  The Ministers emphasized the urgent need to increase efforts at the national, regional and international levels to address food security and agriculture development as an integral part of the international development agenda. They underlined the need for sustained funding and increased targeted investment to enhance world food production and called for new and additional financial resources from all sources to achieve sustainable agriculture development and food security. 33.  The Ministers reaffirmed that hunger constitutes a violation of human dignity and called for urgent measures at the national, regional and international levels for its elimination. They also reaffirmed the right of everyone to have access to safe and nutritious food consistent with the right to food and the fundamental right of everyone to be free from hunger, so as to be able to fully develop and maintain his or her physical and mental capacities. 34.  The Ministers emphasized that achieving food security would require strengthening and revitalizing the agriculture sector in developing countries, including through the empowerment of indigenous peoples, rural communities, small and medium scale farmers, providing technical and financial assistance, access to and transfer of technology, capacity building and exchange of knowledge and experience. The Ministers underscored that subsidies and other market distortions by developed countries have severely harmed the agricultural sector in developing countries, thereby limiting the ability of this key sector to contribute meaningfully to poverty eradication and sustained, inclusive and equitable economic growth, sustainable development, food security and rural development. The Ministers, therefore, called for the immediate elimination of all forms

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of agricultural subsidies and other market-distorting measures by developed countries. They urged the developed countries to demonstrate the necessary flexibility and political will to address meaningfully these key concerns of developing countries at the Doha Round of Trade Negotiations. 35.  The Ministers welcomed the adoption of resolution 15/2011 of July 2, 2011 of the thirty-seventh session of the General Conference of FAO recommending the declaration of the International Year of Quinoa in 2013, taking into account that the Conference noted the exceptional nutritional qualities of Quinoa, its adaptability to various growing conditions and potentially significant contribution to the fight against hunger and malnutrition, and in this regard, they reiterated their firm support to the resolution. 36.  The Ministers expressed their deep concern for the constraints on the fight against poverty arising from the current global crises, in particular the world financial and economic crisis, the world food crisis and continuing food insecurity, the energy crisis and the challenges posed by climate change to developing countries. They reiterated that special attention must be brought to the structural roots of poverty in the international system hindering the efforts of the developing countries in their fight against poverty. In this context, they reaffirmed that sustained and inclusive economic growth is essential for eradicating poverty and hunger, in particular in developing countries, and stressed that national efforts in this regard should be complemented by an enabling international environment aimed at expanding the development opportunities of developing countries. 37.  The Ministers reiterated that poverty eradication cannot be successfully achieved without the collective commitment and efforts of the international community. Therefore, international cooperation based on the recognition of national leadership and ownership of development strategies must be enhanced, including fulfillment of commitment of internationally agreed official development assistance, debt relief, market-access, capacity-building and technical support. 38.  The Ministers recognized that inequality within and among countries is a concern for all countries regardless of their level of development and that it represents a growing challenge with multiple implications for the realization of economic and social potential and the achievement of the internationally agreed development goals, including the Millennium Development Goals, and stressed the need to address the persistent and significant disparities between developed and developing countries and inequalities between the rich and the poor and between rural and urban populations. In this context, the Ministers reaffirmed the importance of greater consideration of the impact of social and economic inequalities in development, including in the design and implementation of development strategies. 39.  The Ministers firmly rejected the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries, and reiterated the urgent need to eliminate them immediately. They emphasized that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. They, therefore, called on the international community neither to recognize these measures nor apply them. 40.  The Ministers recalled the fact that the world has witnessed over the recent years an increase in frequency and intensity of disasters, and an increase in the number of people affected by humanitarian emergencies. Moreover, the continuing impact of climate change, the ongoing adverse impacts of financial and economic crisis, the global food crisis and continuing food insecurity are posing additional challenges to the humanitarian response system. The Ministers stressed the need to further strengthen the capacity, in particular of developing countries, to prepare for and respond to disasters, taking into account that building preparedness is a long-term investment that contribute to the saving of lives while at the same time reducing the need for humanitarian response. They called upon the United Nations system and the international community to assist developing countries in the enhancement of their existing humanitarian

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capacities, knowledge and institutions, including by, inter alia, through the transfer of technology, funding and expertise, in order to facilitate appropriate preparedness for and response to these increasing humanitarian emergencies. 41.  The Ministers also stressed that respect for sovereignty, territorial integrity and national unity of States must remain the overarching parameters in all efforts for coordination of humanitarian assistance. In this regard, they emphasized the primary role of the concerned State in the initiation, organization, coordination and implementation of humanitarian assistance. It is critical that affected States, donor countries, the UN system and other humanitarian organizations work together to provide much needed humanitarian assistance and development support, recognizing the primary role of the affected State. 42.  Ministers reaffirmed that, in order to ensure a smooth transition from relief to rehabilitation and development, emergency assistance must be provided in ways that will be supportive of recovery and long-term development and that emergency measures should be seen as a step towards sustainable development. 43.  Since funding remains a challenge in the context of increasing humanitarian emergencies, in particular in developing countries, the Ministers reiterated the need to promote and achieve effective, predictable, flexible and adequate funding through enhanced partnerships and strengthened financial mechanisms for humanitarian assistance. The Ministers emphasized the importance of ensuring equitable geographical representation within the UN relevant bodies. 44.  The Ministers reaffirmed that Member States must comply fully with their obligations under international humanitarian law, in particular the Fourth Geneva Convention of 12 August 1949 to protect and assist civilians in occupied territories and call the UN System and the international community to strengthen their efforts to provide and facilitate the humanitarian assistance to those civilians. 45. The Ministers welcomed the convening of the High-level Meeting on Youth held at the United Nation Headquarters in New  York on 25–26 July 2011 to address the theme:  ‘Youth: Dialogue and Mutual Understanding’, which adopted a substantive outcome document, recalling that it had originated from an initiative of the Group of 77 and China. 46.  The Ministers noted with concern that unemployment has become a global problem affecting youth worldwide, to which a global response is required. In this regard, they urged all Member States to undertake efforts towards the development of a global strategy aimed at effectively addressing youth unemployment. 47.  The Ministers welcomed the convening of the High-level Meeting of the General Assembly to commemorate the 10th Anniversary of the adoption of the Durban Declaration and Programme of Action held at the United Nations Headquarters in New York on 22 September 2011 to reaffirm the global political commitment to the full and effective implementation of the Durban Declaration and Programme of Action, and underlined the adoption of its political declaration entitled ‘United against Racism, Racial Discrimination, Xenophobia and Related Intolerance’. 48.  The Ministers reaffirmed the Durban Declaration and Programme of Action and the outcome document of the Durban Review Conference in 2009, and welcomed the progress made in many countries and many regions since 2001, including through enacting legislation while expressing their deep concern at the lack of full implementation, and called for the translation of commitment into concrete action and for the appropriate measures to implement the Durban Declaration and Programme of Action, as well as the outcome document of the Durban Review Conference, which constitute the most comprehensive international framework in the fight against racism, and strengthening the follow-up mechanisms. 49.  The Ministers welcomed the convening of the High Level meeting on Prevention and Control of Non-Communicable Diseases held at the United Nation Headquarters in New York on 19 to 20

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September 2011 that adopted a political declaration. In this regard, the Ministers called for strengthening international cooperation in the area of public health to promote access to comprehensive and cost-effective prevention, treatment and care programs for the integrated management of Non-Communicable Diseases, including increased access to affordable, safe, effective and quality medicines and diagnostics and other technologies. 50.  The Ministers noted with grave concern that Non-Communicable Diseases have become an epidemic of challenging proportions which undermines the sustainable development of Member States. They reaffirmed the right of Member States to protect public health and in particular to ensure access to medicines for all, diagnostic and medical technologies, including through the full use of TRIPS flexibilities, as confirmed by the Doha Declaration on the TRIPS Agreement and Public Health of 14 November 2001. 51. The Ministers welcomed the adoption of the General Assembly Resolution 65/198 of 21 December 2010 that decided to organize a high-level plenary meeting of the General Assembly, to be known as the World Conference on Indigenous Peoples, to be held in 2014, in order to share perspectives and best practices on the realization of the rights of Indigenous peoples, including to pursue the objectives of the United Nations Declaration on the Rights of Indigenous Peoples, and also invited Members States to fully participate in this event. The Ministers looked forward to the consultations on the modalities for the meeting, including on the participation of indigenous peoples in the conference. 52.  The Ministers urged the international community to address the challenges caused by international migration on the basis of common responsibility of all nations, genuine partnership and common understanding, in order to assure that international migration can contribute to the development of both origin and destination countries while minimizing the negative impacts. 53.  The Ministers called on all Member States to renew the political will to address the challenges and opportunities of international migration, both regular and irregular, in a balanced manner and to promote respect for and protection of human rights in the development and implementation of policies regarding migration. In this regard, they stressed the importance of Official Development Assistance and other sources of international resource mobilization to support the efforts of developing countries to eradicate poverty and promote the right of peoples to development, as a key instrument to control migration flows, which are motivated, inter alia, by the search for better welfare and job opportunities. 54.  The Ministers reaffirmed their strong support to the United Nations, and to all collective efforts aiming at enhancing its ability to fully implement its mandates and to ensure the effective delivery of all its programmes, in particular in the social and economic development field. The Ministers firmly believed that the legitimacy and viability of any reform measures depended ultimately on the approval of Member States of the United Nations. The Ministers emphasized that measures to reform of the United Nations should respond to the unique intergovernmental, multilateral and international character of the United Nations. 55. The Ministers reaffirmed that the quantity, quality and predictability of development assistance from the UN system constitute a central priority for developing countries. Additionally, the growing imbalance between core and non-core resources for operational activities must be addressed as a matter of urgency. They noted that the increasing shift from core to non-core funding tend to lead to fragmentation and can impair the effectiveness and efficiency of operational activities, as non-core resources are unpredictable, increase transaction costs, inefficiency, incoherence and fragmentation of the UN system, including at the country level, causing competition among organizations, as well as inviting them to divert from their respective mandates. Therefore, the Ministers called on donor countries to provide adequate financial resources in order to restore the balance between core and non-core

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funding resources as well as to ensure an expanding and adequate base of resources for development. 56.  The Ministers reaffirmed that strengthening the role and capacity of the UN development system to assist countries in achieving their development goals requires continued improvement in its effectiveness, efficiency, coherence and impact, along with a significant increase in resources. In that regard, the fundamental characteristics of the UN operational activities for development must remain, among others, the universal, voluntary and grant nature, the neutrality and the multilateralism, as well as their ability to respond to the development needs of programme countries in a flexible manner. Moreover, the operational activities should be carried out for the benefit of recipient countries, at the request of those countries and in accordance with their own national policies and national priorities for development. 57.  The Ministers stressed the importance for the entire UN system as well as the BWIs and bilateral donors to recognize the ownership of the concerned developing countries, align their cooperation programmes with the national development strategies of those countries and also harmonize, as appropriate, their individual cooperation programmes with a view to making the optimum contribution to the realization of national development strategies. 58. The Ministers reiterated their support for the United Nations Conference on Sustainable Development (UNCSD), to be held in Brazil in 2012, to review the implementation of the outcomes of the United Nations Conference on Environment and Sustainable Development, held in Rio de Janeiro, on 3–14 June 1992, including the World Summit on Sustainable Development held in Johannesburg, South Africa, from 26 August to 4 September 2002. The Ministers stated that an overview of the results achieved show that there are persistent implementation gaps, and many unfulfilled commitments by the international community. The challenges faced by developing countries, as a result, are intensified by the effects of the multiple and interrelated global crises, from which the world is still suffering, particularly food crisis, climate change, the global economic and financial crisis as well as energy crisis. These challenges are posing serious threats to the achievement of sustainable development and internationally agreed development goals, including the MDG’s. 59. The Ministers believed that the United Nations Conference on Sustainable development (UNCSD) and all its preparatory process in Rio in 2012 offer an important opportunity to deeply and frankly reflect on where we have failed and why. Assessing the progress to date and the remaining gaps in the implementation of the outcomes of the major summits on sustainable development, in our view, would show the failures and how to move forward without making the same mistakes again in dealing not only with the old but the new and emerging challenges. A fragmented approach has been adopted towards sustainable development. The unsustainability and over consumption in developed countries is negatively impacting the health of the Earth. The Ministers stressed the need for a more systemic and integrated approach of the three pillars of sustainable development, taking into consideration the negative impact of human activities in ecosystems dynamics and functioning. 60.  The Ministers concluded that the success of our common efforts is closely linked to the means available to ensure effective implementation and policy space for sustainable development. They reaffirmed that the issue of the means of implementation must be underscored, as a global responsibility, given the global nature of the challenges the world faces today. Therefore, the fulfillment of previous commitments and the provision of new and additional resources is crucial to enhance the United Nations capabilities in the area of implementation. In this regard, it is imperative to increase the United Nations regular budget resources allocated to all mandated development activities, including those related to sustainable development, in order to ensure predictable and adequate funding. 61.  The Ministers emphasized the importance of addressing energy issues, including access to affordable energy, energy efficiency, as well as sustainability of energy sources and use, as part

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of global efforts for the achievement of the Millennium Development Goals and the promotion of sustainable development. 62.  The Ministers supported the implementation of national policies and strategies to combine as appropriate the increased use of new and renewable energy sources and low emission technologies, more efficient use of energy, greater reliance on advanced energy technologies, including cleaner fossil fuel technologies and the sustainable use of traditional energy resources, as well as promoting access to modern, reliable, affordable and sustainable energy services; and enhancing national capacities to meet the growing energy demand, as appropriate, supported by international cooperation in this field, and by promoting the development and dissemination of appropriate, affordable and sustainable energy technology, as well as the transfer of such technologies on mutually agreed terms. 63. The Ministers maintained that the United Nations Framework Convention on Climate Change (UNFCCC) is the primary international, intergovernmental forum for negotiating the global response to climate change. In this sense, they recalled that an appropriate response to this challenge should address mainly the roots of the problem and not the consequences alone. 64. The Ministers underlined the fact that developing countries continue to suffer from the adverse impacts of climate change, and the increasing frequency and intensity of extreme weather events. They also recalled the challenges faced by developing countries from the impact of response measures. Climate change threatens not only the development prospects and the achievement of sustainable development, but also the very existence and survival of societies. 65.  The Ministers emphasized that the mandate for the Ad Hoc Working Group on Long-term Cooperative Action (AWG-LCA) is ‘to enable the full, effective and sustained implementation of the Convention through long-term cooperative action now, up to and beyond 2012’ as per the Bali Action Plan, and are committed to fulfilling it. They believe that the full and prompt implementation of Cancun, as well as finding appropriate solutions to issues not addressed at Cancun would be vital to fulfilling the mandate of the Bali Action Plan. On this basis, the AWG-LCA must continue its work with a view to presenting its results to the Conference of the Parties at its seventeenth session. 66.  The Ministers underlined the importance of mitigation as part of a balanced and ambitious outcome in Durban. They reiterated that appropriate treatment of mitigation, as determined in the Bali Roadmap, demanded a decision, at CMP 7, in Durban on establishing the commitments of the second commitment period under the Kyoto Protocol. In this regard, the Ministers expressed their concern that, current mitigation pledges from developed countries parties in the UNFCCC negotiations are not adequate enough to reduce global greenhouse gas emissions so as to hold the increase in global average temperature according with what is required by science, and they urged developed countries to raise their level of ambition. 67.  The Ministers reiterated the need for enhanced and urgent actions on the provision of financial resources and investments to support actions on mitigation, adaptation and technology cooperation to developing countries. The Ministers called for the full operationalization of the Standing Committee of the Financial Mechanism of the Convention, the Technology Mechanism and the Adaptation Committee in Durban. 68.  The Ministers reiterated their call on Parties included in Annex II of the Convention to intensify their efforts aimed at fulfilling their commitments on the provision of adequate, predictable, new and additional financial resources, enhancing technology development and transfer, meeting costs of adaptation, and strengthening capacity building in developing country Parties in accordance with articles 4, paragraphs 3, 4, and 5 of the Convention. The historical imbalance in financing to the detriment of adaptation must be redressed, and adaptation financing be treated in an equal manner as for mitigation. The Ministers recalled that according to Dec. 1/CP16, a significant share of new multilateral funding for adaptation should flow through the Green Climate Fund.

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69.  The Ministers recalled that the G77 and China had been a major force in the negotiation of the law of the sea as reflected in the United Nations Convention on the Law of the Sea (UNCLOS) The positions of the G77 and China remarkably influenced the consecration of some crucial law of the sea concepts inextricably linked to sustainable development: the exclusive economic zone (EEZ), where the coastal State enjoys sovereign rights over the natural resources, and the seabed and ocean floor beyond the limits of national jurisdiction (‘the Area’), the exploitation of the resources therein has to benefit mankind as a whole, irrespective of the geographical location of States, whether coastal or land-locked, and taking into particular consideration the interests and needs of developing States. 70.  In this regard, the Ministers recalled that General Assembly Resolution 2749 (XXV) and then UNCLOS crystallized in a conventional norm the principle of the Common Heritage of Mankind, to which the G77 and China had adhered from its inception, in 1967. 71.  The Ministers recognized that a major challenge to developing countries has arisen in the law of the sea:  the conservation and sustainable use of marine biodiversity beyond areas of national jurisdiction. The exploitation of and benefit from resources of a maritime area that is common heritage of mankind by a few is inconsistent with general principles of international law, including those on equity, as the Area and its resources are to benefit mankind as a whole. In this context, the Ministers stressed that the status quo is not an option. 72.  The Ministers emphasized that the basic principle enshrined in UNCLOS and in General Assembly Resolution 2749 (XXV) applicable to these resources is that of the common heritage of mankind, and that a specific legal regime for the biodiversity of areas beyond national jurisdiction needs to be developed in the form of an implementing agreement to UNCLOS based on that principle. Such an implementing agreement has to be negotiated as a package, and must encompass the conservation and sustainable use of marine biodiversity of areas beyond national jurisdiction, including genetic resources, the sharing of benefits taking into account intellectual property rights, scientific research, capacity building and the transfer of marine technology. 73.  The Ministers recognized the important outcomes of the tenth meeting of the Conference of the Parties to the Convention on Biological Diversity and the fifth meeting of the Conference of the Parties serving as the Meeting of the Parties to the Cartagena Protocol on Biosafety, held in Nagoya, Japan, from 18 to 29 October 2010 and from 11 to 15 October 2010, respectively, which represent a significant contribution to the comprehensive implementation of the three objectives of the Convention and took note with appreciation of the positive assessments of the performance of the Secretariat during COP 10. 74. The Ministers called for the implementation of the Strategic Plan for Biodiversity for 2011–2020 as the overarching biodiversity framework as well as the ongoing efforts aimed at translating the Aichi targets into national biodiversity strategies and actions plan. The Ministers took note of the adoption and opening of signature of the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits arising from their utilization. The United Nations Decade on Biodiversity for 2011- 2020 provides a unique opportunity to engage the people of the world in the battle to protect life on earth and they reaffirmed their commitment to spare no efforts for the successful implementation of the objectives of this decade. 75.  They reaffirmed the importance of the Multi-Year Plan of Action (MYPA) on South-South Cooperation on Biodiversity for Development to be adopted by the 11th meeting of the conference of the parties to the United Nations Convention on Biological Diversity to be held in Hyderabad, India in October 2012, as a major tool at the service of the biodiversity agenda. 76.  The Ministers recalled the disastrous effect desertification and land degradation continue to pose to all the regions of the world and the serious threat they represent to sustainable

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development at national, regional and global levels and called on the forthcoming COP 10 to be held in Changwon, Republic of Korea, on 10–21 October 2011, to take concrete measures. 77.  The Ministers expressed concern and solidarity over the situation in the horn of Africa region which was hit by the worst drought in sixty years leading to starvation, loss of crops and livestock. This reflects well the severity of drought and desertification problems and the imperative for action. 78.  The Ministers stressed that poverty, food security and desertification are intrinsically linked to each other and need to be tackled jointly. In this regard, the Ministers firmly called on all Parties to the United Nations Convention to Combat Desertification in those Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa (UNCCD), to fully support the implementation of the Convention in all its aspects, in particular by promoting the exchange of knowledge on best practices and lessons learned from global and regional cooperation in combating desertification, land degradation and drought. In this context, the Ministers took note with appreciation of the outcome of the African Regional Conference held in Algiers, Algeria from 7 to 9 September 2011 in preparation for COP 10 and took note of the Latin American and Caribbean regional meeting preparatory to COP 10 held in Mexico City, Mexico from 5 to 7 September 2011. 79.  The Ministers stressed the need to cooperate at global and regional levels with a view to preventing and managing dust/sand storms including in sharing related information, forecasting and early warning system. The Ministers stressed that combating sand and dust storms demands financial support and the transfer of technology from developed countries to developing countries. 80.  The Ministers also stressed that emphasis should also be given to mobilization and channeling of adequate and predictable financial resources as well as facilitating its direct access, in order to help mitigate the effects of desertification, land degradation and drought and improve the livelihoods of vulnerable people affected by these most urgent matters at national, sub-regional and regional levels. 81.  The Ministers welcomed the observance of 2011 as the International Year of Forests as a unique opportunity to raise public awareness how sustainable forest management contributes extensively to the achievement of the internationally agreed development goals, including the Millennium Development Goals, in particular with respect to poverty eradication and environmental sustainability, as well as global efforts to fight climate change and combat desertification and the conservation and sustainable use of biodiversity, along with numerous other benefits for the betterment of the livelihoods of people. 82.  The Ministers therefore reaffirmed the potential significant contribution of sustainable forest management to sustainable development and poverty eradication; the need to promote the implementation of the Non-Legally Binding Instrument on All Types of Forests and its four Global Objectives on Forests (GOFs); the importance of addressing financial gaps in sustainable forest management (SFM) by the establishment of a new Global Forest Fund in the framework of the United Nations, in line with the principles of sustainable development in order to address financing needs of countries to sustainably manage their forests, in particular developing countries with special needs and circumstances, including Africa, least developed countries, low forest cover countries, high forest cover countries, high forest cover low deforestation countries, medium forest cover countries and small island developing States; and called upon the Rio+20 conference to recognize all values of forests and their contribution to sustainable development, energy and food security, poverty reduction, land degradation and water conservation, biodiversity conservation and climate change. 83.  The Ministers recalled the special needs of Africa, the only continent currently not on track to achieve the internationally agreed development goals including the Millennium Development Goals. They recognized that, while economic growth is returning, there is a need to sustain the

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recovery, which is fragile and uneven, to face the ongoing adverse impacts of multiple crises on development and the serious challenges these impacts pose to the fight against poverty and hunger, which could further undermine the achievement of the internationally agreed development goals, including the MDGs in Africa. 84.  The Ministers expressed their profound concern that the commitment to doubling aid to Africa by 2010 as articulated at the summit of Gleneagles was not entirely reached and in this regard the Ministers stressed the need to make rapid progress in order to fulfill the Gleneagles and other donors’ commitments to increase aid through a variety of means, including the provision of new additional resources, technology transfer, as well as capacity building to African countries, and to support their sustainable development. On the other hand, the Ministers welcomed the support that some developing countries have extended to Africa through South-South and triangular cooperation programmes. 85.  The Ministers expressed their deep concern that the LDCs are the most off track in the achievements of the internationally agreed development goals including the MDGs, and are at the bottom of the HDI rankings and that LDCs have been unable to overcome their economic vulnerability and structurally transform their economies or build resilience against internal and external shocks and crisis. 86.  In this context, the Ministers took note of the outcome of the Fourth UN Conference on Least Developed Countries which was held in Istanbul, Turkey, from 10 to 13 May 2011. While noting that the Istanbul Programme of Action falls short of expectations, the Ministers emphasized on the full, timely and effectively integration and implementation of all the commitments and actions by the LDCs, their development partners and other relevant stakeholders. They considered that the overarching goal of the Istanbul Programme of Action should have been to enable at least half of LDCs to graduate by the end of its implementation. For this purpose, the Istanbul Programme of Action should commit to increasing and sustaining high-level economic growth, promoting sustainable development, addressing the impacts of multiple crises and emerging challenges through structural transformation. The Ministers further underlined the need for giving due priority to the LDCs’ issues and concerns in all major UN conferences including the United Nations Conference on Sustainable Development. 87.  The Ministers emphasized the need for the timely implementation of the duty-free and quota free market access, on lasting basis for all LDCs as expressed in the Istanbul Programme of Action. They stressed the importance of facilitating the accession of all developing countries, in particular the LDCs that apply for membership in the World Trade Organization (WTO), without political impediments, in an expeditious and transparent manner and with full observance of the principles of special and differential treatment for developing countries. 88.  The Ministers reiterated their recognition of the special needs of and challenges faced by the landlocked developing countries caused by their lack of territorial access to the sea, aggravated by the remoteness from world markets and also the concern that the economic growth and social well-being of land-locked developing countries remain very vulnerable to external shocks as well as the multiple challenges the international community faces including the financial and economic crisis, and climate changes, and stressed the need for the international community to enhance development assistance to landlocked developing countries to help them overcome their vulnerabilities, build resilience and set themselves on a path of sustainable social and economic development. They therefore reaffirmed the need to urgently address the special development needs of and challenges faced by the landlocked and transit developing countries through the full, timely and effective implementation of the Almaty Programme of Action, as contained in the Declaration on the midterm review of the Almaty Programme of Action. 89. The Ministers recalled that the unique and particular vulnerabilities of Small Island Developing States (SIDS) have been acknowledged by the international community since the

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United Nations Conference on Environment and Development in Rio de Janeiro (1992), the Global Conference for the Sustainable Development of Small Island Developing States in Barbados (1994), the World Summit on Sustainable Development in Johannesburg (2002) and the Mauritius International Meeting on Sustainable Development of Small Island Developing States (2005) and noted with concern that insufficient steps have been taken at the international level to address the vulnerabilities and effectively support their sustainable development efforts, including in achieving the internationally agreed development goals. 90.  The Ministers recalled that climate change and sea level rise pose the greatest threat to SIDS survival and viability and their efforts to achieve sustainable development goals and in this regard, called on the international community to commit itself to urgently increasing international cooperation to support those efforts particularly through increased financial resources, capacity-building, transfer of technology and know-how, and increased participation of SIDS in international economic decision-making. 91.  The Ministers reaffirmed that the Fifth Committee of the General Assembly is the sole Main Committee of the Organization entrusted with responsibilities for administrative, financial and budgetary matters. In this regard, the Ministers requested that any budgetary, financial, and administrative matters including those related to the establishment of a peacekeeping operation or a special political mission be discussed solely in the framework of the Fifth Committee, in conformity with the UN Charter. 92.  The Ministers strongly supported the oversight role performed by the General Assembly, as well as its relevant intergovernmental and expert bodies, in the planning, programming, budgeting, monitoring and evaluation. They reaffirmed that any Secretariat and management reform efforts, including on its budget process, must not intend to change the intergovernmental, multilateral and international nature of the organization, but must strengthen the ability of Member States to perform their oversight and monitoring role. They also reaffirmed the right of the entire membership of the United Nations to pronounce on the administration of the Organization, including on its budgetary matters. 93.  The Ministers further reaffirmed the principle of ‘capacity to pay’ as the fundamental criterion in the apportionment of the expenses of the United Nations and, while recalling General Assembly resolution 64/248, rejected any change to the elements of the current methodology for the preparation of the scale of assessments aimed at increasing the contributions of developing countries. In this regard, they emphasized that the core elements of the current methodology of the scale of assessment, such as base period, Gross National Income, conversion rates, low per capita income adjustment, gradient, floor, ceiling for Least Developed Countries and debt stock adjustment must be kept intact and are not negotiable. 94.  The Ministers stressed that the current maximum assessment rate, or ceiling, had been fixed as a political compromise and is contrary to the principle of the capacity to pay and a fundamental source of distortion in the scale of assessments. In this context, they urged the General Assembly to undertake a review of this arrangement, in accordance with paragraph 2 of General Assembly resolution 55/5 C. 95.  The Ministers affirmed that the current principles and guidelines for the apportionment of the expenses of peacekeeping operations approved by the General Assembly in its relevant resolutions should constitute a basis for any discussion on the peacekeeping scale. In this regard, the Ministers stressed that the peacekeeping scale must clearly reflect the special responsibilities of the permanent members of the Security Council for the maintenance of peace and security. The Ministers also recalled that the economically less developed countries have limited capacity to contribute towards the budgets of peacekeeping operations. In this context, the Ministers emphasized that any discussion on the system of discounts applied to the peacekeeping scale should take into account the conditions of developing countries whose current positions must not be

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negatively affected. The Ministers stressed, in this regard, that no member of the Group of 77 and China that is not a permanent member of the Security Council, should therefore be categorized above level C. 96.  The Ministers reaffirmed that the financial stability of the United Nations should not be jeopardized by arbitrary measures. The Ministers stressed that any efforts to use financial contributions to push for the adoption of certain proposals are counterproductive and violate the obligations of the Member States to provide resources for the Organization, as enshrined in its Charter. 97.  The Ministers, in this context, rejected all unilateral coercive measures contrary to the international law, which obstruct and sometimes impede payments of assessed contributions from Members of the Group of 77 and China to the budgets of the Organization. 98. The Ministers also expressed concern over the closure of the official bank accounts of Member States of the Group that has impaired proper functioning of the Missions as well as payment of Member States’ contributions to the Organization. In this regard, the Ministers stressed that the private nature of the banking system does not relieve the host country of its responsibility to ensure unrestricted banking services to Permanent Missions of the Member States of the Group in New York and urged the host country to fulfill its obligations accordingly. 99.  The Ministers strongly reaffirmed the legal obligation of all Member States to bear the financial expenses of the UN, in accordance with the Charter, and urged all Member States to pay their assessed contributions on time, in full and without conditions. They also stressed that the special and genuine difficulties faced by some developing countries that prevent them from meeting temporarily their financial obligations should be fully taken into account and that the decisions of the General Assembly on the agenda item ‘scale of assessments’ must be responsive to such difficulties. 100.  The Ministers stressed that the level of resources to be approved by the General Assembly must be commensurate with all mandated programmes and activities in order to ensure their full and effective implementation. They also reaffirmed the priorities of the Organization as approved by the General Assembly and the need for the Secretary-General to reflect these priorities when presenting proposed programme budgets. 101.  The Ministers expressed their concern on the budget cuts that are proposed for the biennium 2012–2013 that could impact negatively the implementation of mandates approved by the intergovernmental bodies particularly in the development pillar. 102.  The Ministers reiterated that there is a need to strike a balance in reflecting the agreed priorities of the Organization in the allocation of resources to the United Nations regular budget, which is persistently to the detriment of the development activities. In this regard, the Ministers also stressed that the Secretariat must strictly implement General Assembly mandates without exceptions and/or delays. 103.  In this context, the Ministers stressed that the strengthening of the United Nations and its role in international cooperation for development is essential to respond to current and future challenges and opportunities emanating from the process of globalization. They recognized that the United Nations needs to improve its capabilities and capacities to fully implement its mandates and to ensure the effective delivery of its programmes in the social and economic development field. In this regard, they urged the Secretary-General to further strengthen the development pillar of the whole organization, including its development account. 104.  The Ministers stressed the importance of ensuring that the Secretariat meets the highest standards of accountability, transparency, integrity and ethical conduct. The Ministers, therefore, urged the Secretary-General, as a matter of priority, to fully implement General Assembly resolution 64/259. 105.  The Ministers expressed concern at the inadequate share of the developing countries in the United Nations system of procurement. They emphasized that the United Nations procurement

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should be on as wide a geographical basis as possible with preferential treatment for the developing countries. They further underlined that the United Nations supplier roster should be representative of the membership of the Organization and underscored the need to implement concrete measures to ensure greater market access by businesses from developing countries in United Nations procurement. 106.  The Ministers stressed the need to increase the representation of developing countries, in particular at the senior levels, and to improve geographic distribution in the Secretariat and more transparency in recruitment process. 107.  The Ministers reiterated their call for the immediate and full withdrawal of Israel, the occupying Power, from the Occupied Palestinian Territory, including East Jerusalem, and the occupied Syrian Golan to the line of 4 June 1967 and from the remaining Lebanese occupied land. They reaffirmed their support for a Middle East peace process aimed at achieving a comprehensive, just and lasting peace in the region, in accordance with the relevant UN resolutions, including Security Council resolutions 242 (1967), 338 (1973), 425 (1978) and 1850 (2008) and the principle of land for peace. In this context, they also reaffirmed their support for the Arab Peace Initiative endorsed by the Arab Summit since March 2002. 108.  The Ministers stressed the need for the early realization by the Palestinian people of their right to self-determination and to the independence of their State of Palestine to allow for their stability, prosperity and development towards the achievement of the Millennium Development Goals (MDGs) to which all peoples are entitled. The Ministers expressed support for the efforts of the Palestinian people to achieve independence and welcomed in this regard the submission of Palestine’s application on 23 September 2011 for full membership in the United Nations. 109. The Ministers condemned the ongoing Israeli military occupation of the Palestinian Territory, including East Jerusalem, and the illegal actions by the occupying Power that continue to cause civilian casualties, socio-economic and humanitarian hardship, and destruction to Palestinian properties, infrastructure and agricultural lands, and to undermine the contiguity, unity and integrity of the Territory. 110.  The Ministers expressed deep concern about the further decline of the social and economic conditions of the Palestinian people, particularly in the besieged Gaza Strip, as a result of the illegal Israeli practices, including construction of settlements and the Wall and the imposition of blockade and hundreds of checkpoints. They called upon Israel, the occupying Power, to cease immediately all illegal measures impairing the Palestinian economy and development, including, in particular, the inhumane and illegal blockade imposed on the Gaza Strip and restrictions on the movement of persons and goods, including commercial trade throughout, into and out of the Occupied Palestinian Territory and to make reparation for all damages caused to Palestinian properties, institutions and infrastructure. They reiterated their call upon the international community to continue providing much needed developmental and humanitarian assistance to the Palestinian people during this critical period particularly for the reconstruction and economic recovery in the Gaza Strip. 111.  The Ministers reaffirmed the need for the Government of the Argentine Republic and the Kingdom of Great Britain and Northern Ireland to resume negotiations in accordance with the principles and the objectives of the United Nations Charter and the relevant resolutions of the General Assembly, in order to find, as soon as possible, a peaceful solution to the sovereignty dispute relating to ‘the Question of the Malvinas Islands’, which seriously damages the economic capacities of the Argentine Republic and the need for both parties to refrain from taking decisions that would imply introducing unilateral modifications in the situation while the islands are going through the process recommended by the General Assembly. 112.  The Ministers reiterated their position that South-South cooperation is a complement to, rather than substitute for, North-South cooperation and reaffirmed that South-South cooperation

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is a collective endeavor of developing countries based on principle of solidarity and premises, conditions and objectives that are specific to the historic and political context of developing countries and to their needs and expectations and as such South-South cooperation deserves its own separate and independent promotion as reaffirmed in the Nairobi outcome document of the United Nations Conference on South-South Cooperation held in Nairobi, Kenya from 1 to 3 December 2009, and the Development Platform for the South of the G-77 mandated by the Second South Summit of the Group of 77 held in Doha, Qatar, from 12 to 16 June 2005. 113.  The Ministers stressed that South-South cooperation and its agenda must be driven by the countries of the South. As such, South-South cooperation which is critical for developing countries requires long-term vision and a global institutional arrangement as envisioned by the Second South Summit. 114.  The Ministers reaffirmed the importance of strengthening South-South Cooperation especially in the current international economic environment and reiterated their support for South-South Cooperation as a strategy to sustain the development efforts of developing countries and also as a means of enhancing their participation in the global economy. They reiterated the frameworks and the principles of South-South Cooperation as endorsed by their Thirty-fourth Annual Meeting held in New York on 28 September 2010. 115.  The Ministers stressed that the General Assembly High-level Committee on South-South Cooperation is the central multilateral policy-making body in the UN system to review and assess global and system-wide progress on and support for South-South development cooperation, including triangular cooperation, and to provide overall guidance on future directions. The Ministers urged all partners interested in supporting South-South cooperation to be guided by the principles and objectives for such cooperation established in such internationally agreed documents as the Buenos Aires Plan of Action on Technical Cooperation among Developing Countries that was adopted by General Assembly resolution 33/144 of 19 December 1978 and the Nairobi Outcome Document on South-South Cooperation that was endorsed by General Assembly resolution 64/222 of 21 December 2009, as well as other relevant General Assembly resolutions. The Ministers therefore reiterated the Group’s position that any policy debate outside the UN system should be guided by the above agreed framework and the Yamoussoukro Consensus on South-South Cooperation. 116.  The Ministers reiterated the request made by the Heads of State and Government at the Second South Summit and stressed in General Assembly resolution 64/222 of 21 December 2009, inviting ‘the Secretary-General, in consultation with member states, to take concrete measures to further strengthen the Special Unit for South-South Cooperation as a separate entity and a focal point for South-South cooperation within the United Nations system as reaffirmed by General Assembly resolution 58/220 of 23 December 2003, so as to enable it to carry out its full responsibilities, in particular through mobilization of resources for the advancement of South-South cooperation including through triangular cooperation.’ In this context, the Ministers invited the UN Secretary-General as well as the Administrator of UNDP to take necessary measures to upgrade the Special Unit for South-South Cooperation in order to give it the visibility that it deserves as mandated by our Heads of State and Government. In this context, the Ministers mandated the Chair of G77 to initiate discussions on options to implement the South Summit relevant decision in light of the ongoing JIU review process during the sixty-sixth session of the United Nations General Assembly. 117.  The Ministers stressed that South-South cooperation should be explicitly incorporated into the operational programmes of all relevant bodies of the United Nations system and there should be coordination among various entities on the most effective way to support it. In this context, they welcomed the recent initiatives undertaken by various UN bodies to establish new units and work programmes to support and promote South-South cooperation and urged other entities of the United

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Nations system to intensify their efforts to include South-South cooperation in the mainstream of their activities. In this context, the Ministers reiterated the call to the UN funds and programmes as well as the specialized agencies to take concrete measures to mainstream support for South-South cooperation -including triangular cooperation- to help developing countries to develop capacities to maximize the benefits and impact of South-South and triangular cooperation. 118. The Ministers recognized the need to mobilize adequate resources for enhancing South-South cooperation and, in that context, invited all countries in a position to do so to contribute in support of such cooperation through, inter alia, the Pérez-Guerrero Trust Fund for Economic and Technical Cooperation among Developing Countries and the United Nations Fund for South-South Cooperation. In this context, the Ministers encouraged the Special Unit for South-South Cooperation to undertake additional resource mobilization initiatives to attract more financial and in-kind resources, while avoiding the proliferation and fragmentation of financing arrangements. 119.  The Ministers welcomed the launching of the G77 Global South-South Network of Scientific Institutions, namely the Consortium on Science, Technology and Innovation for the South (COSTIS) and congratulated the Chairman of the Group of 77 and the Executive Secretary of the Group of 77 in New York as well as the COSTIS Coordinator and Focal Point in Paris Chapter for their outstanding efforts and leadership in the operationalization of COSTIS. In this context, the Ministers recalled Decision 45 adopted by the 185th session of the Executive Board of UNESCO held in Paris on 5–21 October 2010 urging the Director-General of UNESCO ‘to provide necessary technical support for the operationalization of COSTIS and to cooperate with the G-77 in mobilizing the extra-budgetary resources needed for the implementation of such project and for the convening of the First General Conference of COSTIS prior to the G-77 Third South Summit’. 120.  The Ministers took note of Decision 39 adopted by the Executive Board of UNESCO at its 186th session held in Paris from 3 to 19 May 2011, entitled ‘Reactivation of the activities of the International Fund for the Promotion of Culture’ (IFPC), and stressed the urgent need and the importance of its full implementation by the Director-General of UNESCO, emphasizing the intellectual and operational autonomy of the IFPC. 121. The Ministers recalled that the Second South Summit mandated the Special Unit for South-South Cooperation and stressed the urgent need ‘to strengthen cooperative efforts to build and to utilize networks, institutional capacity and expertise in areas, such as science and technology, research and standards development and requested the Special Unit for South-South Cooperation in collaboration with the South Center to facilitate this objective.’ In this context, they also welcomed the convening, by the South Centre, of the brainstorming session on South-South Cooperation in Science and Technology and the future role of COSTIS held in Geneva on 8 July 2011 and encouraged the Special Unit and the South Centre to convene technical preparatory meetings in accordance with the above South Summit relevant mandate. They also welcome the ongoing efforts by the Chairman of the Group of 77 in New York to convene a G77 high-level meeting on science and technology for development on the occasion of the World Science Forum to be held in Budapest, Hungary on 16–19 November 2011. 122. The Ministers decided to rename the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries as the Intergovernmental Follow-up and Coordination Committee on South-South Cooperation (IFCC) and in this context invited the Asian Member States and other interested member countries of the Group of 77 to come forward with an offer of venue for hosting its thirteen session (IFCC-XIII) in 2012. They also invited Member States to host sectoral meetings in various fields of cooperation including South-South forums for parliamentarians, mayors, youth, media and civil society as envisaged in the Doha Plan of Action adopted by the Second South Summit held in Doha, Qatar from 12 to 16 June 2005.

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123.  The Ministers noted that, in view of the mounting and intractable challenges that developing countries face, more frequent high-level meetings of the Group on thematic/sectoral issues, and with action-oriented outcomes, might be required. To this end, the Ministers invited Member States of the G77 to make offers to host high-level meetings of the Group on these issues, as appropriate. 124. The Ministers recalled the Development Platform for the South, and invited countries, members of the Group of 77 to host meetings of the high-level panel of eminent personalities of the South with a view to updating the Platform taking into account the evolving realities and challenges facing the developing countries. 125.  The Ministers noted the postponement of the preparations for the Third South Summit and invited the Chairman of the Group of 77 to undertake consultations with Member States of the African region and other interested countries of the Group of 77 for the hosting of the Summit to be held at a convenient date. 126.  The Ministers recalled United Nations General Assembly resolution 58/220 of 23 December 2003 and decided that a draft decision be presented to the General Assembly at its sixty-sixth session proposing that, beginning in 2012, the observance of the United Nations Day for South-South Cooperation be changed from 19 December to 12 September, to mark the day in 1978 when the United Nations Conference on Technical Cooperation among Developing Countries adopted the Buenos Aires Plan of Action for Promoting and Implementing Technical Cooperation among Developing Countries in Buenos Aires, Argentina. 127. The Ministers approved the Report of the Twenty-sixth Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/TCDC (PGTF) contained in document G-77/AM(XXIII)/2011/2 and endorsed its recommendations. The Ministers commended the Chairman of the PGTF for his continued commitment and expressed their satisfaction with the results achieved by the PGTF. In light of the prevailing low level of interest earnings of the Fund caused by the current world financial situation as reported by the Chairman of the PGTF, the Ministers appealed to all Member States to make significant contributions to the PGTF on the occasion of the UN Pledging Conference for Development Activities to be held in New York on 8 November 2011. 128.  The Ministers approved the Financial Statement of the ECDC Account of the Group of 77 contained in document G-77/AM(XXIII)/2011/3, as presented by the Chairman of the Group of 77 and urged those Member States that have not yet done so to make special efforts to pay their outstanding contributions. 129.  The Ministers expressed their deep appreciation to the Argentine Republic for its able leadership and for the excellent work and tireless efforts as the Chair country of the Group of 77 for 2011. As 2011 proved to be a challenging year for all developing countries, the commitment shown by the Argentine Republic as Chair country in pursuing the goals and objectives of the Group of 77 was a source of profound gratitude. The Ministers also commended the efficient work and continued valuable support provided by the secretariat of the Group of 77 in New York to the Chair country and to the Member States and congratulated the Executive Secretary of the Group of 77 for the achievement award presented to him during the opening ceremony of the Ministerial Meeting in recognition of his outstanding performance, his continued commitment and dedication to the goals and objectives of the Group of 77. 130.  The Ministers warmly welcomed the election by acclamation of Algeria to the Chairmanship of the Group of 77 for 2012. 131. The Ministers welcomed the admission of the Republic of Nauru as a member of the Group of 77.

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36.  Thirty-sixth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 28 September 2012 a.  Ministerial Declaration The Ministers of Foreign Affairs of the Member States of the Group of 77 and China met at the United Nations Headquarters in New  York on 28 September 2012 on the occasion of their Thirty-sixth Annual Meeting. The Ministers reviewed the world economic situation and the development challenges faced by developing countries, and adopted the following Declaration: 1.  The Ministers, after reviewing the world economic situation, noted that the world financial and economic crisis, though originated in the developed world, continues to adversely affect developing countries, in economic and social terms, by, inter alia, competitive currency devaluation, the presence of barriers to trade as well as to finance in some of the anti-crisis measures taken by some developed countries, leading to major loss of jobs and difficulties of governments to finance social programmes that address poverty or provision of basic amenities which threaten the attainment of the internationally agreed development goals including the Millennium Development Goals (MDGs). 2.  The Ministers expressed deep concern about the adverse impacts, particularly on development, of the ongoing world financial and economic crisis. In this context, the Ministers stressed the necessity to urgently address the problems, emphasizing that such a crisis should not be used under any circumstances as an excuse to slow down or not fulfill the obligations and commitments of the developed partners towards the developing countries including commitments related to international development assistance. 3.  They reaffirmed the urgent need for an effective response to the current economic crisis which is not over and the recovery is uneven and uncertain. The systemic problems facing the global economy have to be resolved, including through the full accomplishment of the reform of the global financial system and architecture. 4. The Ministers reaffirmed that economic and social development is the centerpiece of the objectives of the United Nations. The achievement of the internationally agreed development goals including the MDGs should continue to be the over-arching framework of the development activities of the UN system. The Ministers reiterated the need to fully implement all agreed commitments from all the major United Nations summits and conferences in the economic, social and related fields. They further emphasized the need for a strengthened global partnership for development, based on the recognition of national leadership and ownership of development strategies. 5.  The Ministers expressed their commitment to strengthening efforts to achieve the Millennium Development Goals by 2015, and to start shaping the international development agenda post 2015. 6.  The Ministers expressed their deep concern for the constraints on the fight against poverty arising from the current global crises, in particular the world financial and economic crisis, the world food crisis and continuing food insecurity, the energy crisis and the challenges posed by climate change to developing countries. They reiterated that special attention must be brought to the structural roots of poverty in the international system hindering the efforts of the developing countries in their fight against poverty. In this context, they reaffirmed that sustained and inclusive economic growth is essential for eradicating poverty and hunger, in particular in developing countries, and stressed that national efforts in this regard should be complemented by an enabling international environment aimed at expanding the development opportunities of developing countries.

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7.  The Ministers reiterated that poverty eradication cannot be successfully achieved without the collective commitment and efforts of the international community. Therefore, international cooperation based on the recognition of national leadership and ownership of development strategies must be enhanced, including fulfillment of commitment of internationally agreed official development assistance, debt relief, market-access, capacity-building and technical support. 8.  The Ministers reiterated that eradicating poverty is the greatest global challenge facing developing countries today and addressing it as an indispensable requirement for sustainable development. They recalled the proclamation in 2007 of the United Nations Second Decade for the Eradication of Poverty 2008–2017 and the need for sustained, inclusive and equitable economic growth at all levels in order to successfully engage in addressing poverty and reach the MDGs. 9.  The Ministers stated that the United Nations is the only global body with universal membership and unquestioned legitimacy and is, therefore, well positioned to address global economic governance with the objective of reaching sustainable and socially balanced economic development. The role of the UN in global economic governance should thus be strengthened. For the United Nations to fulfill its role in global economic governance, the political will of all Member States to commit to the UN processes, to multilateralism and its underlying values is critical. Member States must commit to working in solidarity on coordinated and comprehensive global responses to global economic governance issues and to undertaking actions aimed at strengthening the role of the UN Development System in responding to global crises and their impact on development. For this the UN must also be equipped with the necessary resources and capabilities to effectively and quickly address global challenges. 10.  The Ministers took note of the recent developments in the Bretton Woods Institutions (BWIs), and called for an expeditious completion, as soon as possible, of a much more ambitious reform process of the governance structure of those Institutions and of an accelerated road map for further reforms on voice, participation and enhanced voting power of developing countries based on an approach that truly reflects its development mandate and with the involvement of all shareholders in an equitable, transparent, consultative and inclusive process. In this regard, the Ministers called on the UNGA to launch a process to reform the international financial and monetary system. 11.  The Ministers recognized that inequality within and among countries is a concern for all countries regardless of their level of development and that it represents a growing challenge with multiple implications for the realization of economic and social potential and the achievement of the internationally agreed development goals, including the Millennium Development Goals, and stressed the need to address the persistent and significant disparities between developed and developing countries and inequalities between the rich and the poor and between rural and urban populations. In this context, the Ministers reaffirmed the importance of greater consideration of the impact of social and economic inequalities in development, including in the design and implementation of development strategies. 12.  The Ministers stressed the importance of establishing an appropriate follow-up mechanism within the United Nations system to bridge the gap between policy making and implementation of commitments, particularly through the establishment of a Financing for Development Commission as a subsidiary body of ECOSOC. It is also important for Member States to support efforts to strengthen and further advance the Financing for Development process, which would help enhance coherence and consistency of the financial and trading systems to ensure they support the implementation of the internationally agreed development goals. 13.  The Ministers underlined that debt crises tend to be costly and disruptive and tend to be followed by cuts in public spending, affecting in particular the poor and vulnerable. They recognized the importance of debt relief, including debt cancellation and debt restructuring. In this regard, they reiterated the urgent need for the international community to examine options for an

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effective, equitable, durable, independent and development-oriented debt restructuring and international debt resolution mechanism and called upon all countries to promote and contribute to the discussions within the United Nations and other appropriate forums with that objective. 14.  The Ministers reaffirmed that Official Development Assistance (ODA) remains essential as a catalyst for development, facilitating the achievement of national development objectives, including the MDGs. The global financial and economic crisis cannot be an excuse to avoid fulfilling existing aid commitments by developed countries and to make further commitments. An effective response to the ongoing economic crisis requires timely implementation of existing aid commitments and an urgent and unavoidable need for donors to fulfill them. 15.  The Ministers stressed that developed countries must meet and scale-up their existing bilateral and multilateral official development assistance commitments and targets made, inter alia, in the United Nations Millennium Declaration, the Monterrey Consensus, the 2005 World Summit Outcome, at the G8 summit in Gleneagles, in the Doha Declaration for Financing for Development and in other relevant fora. An enhanced predictable and sustainable flow of ODA is essential to meet the regular development challenges as well as the new and emerging challenges in developing countries, in particular in Least Developed Countries (LDCs) and other vulnerable developing countries. 16.  The Ministers reiterated that, as a group, developed countries are still far from achieving the longstanding goal of mobilizing 0.7 per cent of GNP in ODA to developing countries, including the target of 0.15–0.20 per cent of ODA to the LDCs. In order to meet agreed commitments and targets, the Ministers called the developed countries to establish clear and transparent timetables within their national budget allocation processes to reach the level of 0.7 per cent for ODA to developing countries, including the target of 0.15–0.20 per cent of ODA to the LDCs by 2015 at the latest. Notwithstanding the positive impact of debt relief on development, it should not be counted as part of the ODA contribution. The Ministers reaffirmed that the full implementation of these commitments will substantially boost the resources available to push forward the international development agenda and to assist developing countries to mitigate and more effectively respond to the crisis in accordance with their national strategies. 17.  The Ministers recognized that innovative mechanisms of financing can make a positive contribution in assisting developing countries to mobilize additional resources for development on a stable, predictable and voluntary basis. They reiterated that such financing should be disbursed in accordance with the priorities of developing countries, should not unduly burden them, and should neither substitute nor negatively affect the level of traditional sources of development financing, including ODA. While highlighting the considerable progress in innovative sources of financing for development, they also considered it important to scale up present initiatives and develop new mechanisms, as appropriate. As work is expanded and new initiatives undertaken, they stressed that priorities should remain focused, namely, on providing additional, stable and supplementary resources to traditional development financing. 18.  The Ministers expressed their deep concern on the increasing inequality between developed and developing countries since most developing countries have been deprived of financial investment despite the different reforms and policies they have undertaken to create a more attractive investment climate. The reform policies are often constrained by conditionalities imposed by the international financial institutions. There is a need for conscious policy measures to facilitate foreign direct investment (FDI) to developing countries, including investment guarantee schemes, favorable trade access, production and supply agreements, local processing and marketing of raw materials and commodities, underlining the importance that foreign direct investment be in line with national development priorities. 19.  The Ministers emphasized the urgent need to increase efforts at the national, regional and international levels to address food security and agriculture development as an integral part of

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the international development agenda. They underlined the need for sustained funding and increased targeted investment to enhance world food production and called for new and additional financial resources from all sources to achieve sustainable agriculture development and food security. 20.  The Ministers reaffirmed that hunger constitutes a violation of human dignity and called for urgent measures at the national, regional and international levels for its elimination. They also reaffirmed the right of everyone to have access to safe and nutritious food consistent with the right to food and the fundamental right of everyone to be free from hunger, so as to be able to fully develop and maintain his or her physical and mental capacities. 21.  The Ministers emphasized that achieving food security would require strengthening and revitalizing the agriculture sector in developing countries, including through the empowerment of indigenous peoples, rural communities, small and medium scale farmers, providing technical and financial assistance, access to and transfer of technology, capacity building and exchange of knowledge and experience. The Ministers underscored that subsidies and other market distortions by developed countries have severely harmed the agricultural sector in developing countries, thereby limiting the ability of this key sector to contribute meaningfully to poverty eradication and sustained, inclusive and equitable economic growth, sustainable development, food security and rural development. The Ministers, therefore, called for the immediate elimination of all forms of agricultural subsidies and other market-distorting measures by developed countries. They urged the developed countries to demonstrate the necessary flexibility and political will to address meaningfully these key concerns of developing countries at the Doha Round of Trade Negotiations. 22.  The Ministers welcomed the adoption by consensus of General Assembly resolution 66/221 of 22 December 2011 that declares ‘2013 as the International Year of Quinoa’ as an initiative from the Plurinational State of Bolivia, and invited countries to support its implementation. In that regard, the Ministers expressed their commitment to promote the cultivation of quinoa to fight hunger, because of its nutritional properties. They also emphasized the importance of disseminating information on the qualities of this nutrient, by supporting research and development programs. 23.  The Ministers welcomed the decision of the Director-General of the Food and Agriculture Organization of the United Nations (FAO), appointing H.E. Mr Juan Evo Morales Ayma, President of the Plurinational State of Bolivia, as Special Ambassador to FAO for the International Year of Quinoa, to be observed by the United Nations in 2013, recognizing his leadership and commitment in the fight against hunger and malnutrition. The Ministers also support the organization of the International Committee for the Coordination of the International Year of Quinoa, which will promote programs and activities to ensure the success of the International Year of Quinoa. 24.  The Ministers stated that international trade is a vital tool to provide long-term sustainable growth. Due to the global financial and economic crisis, the decline in trade has had a severe impact on developing countries through the fall in exports and loss of export revenues, restricted access to trade finance and reduced investment in production diversification and in the promotion of exports. In order to fully harness the potential of trade, it is important to uphold a universal, rules-based, open, non-discriminatory and equitable multilateral trading system that contributes to growth, sustainable development and employment, particularly for developing countries. 25.  In this context, the Ministers urged developed countries to desist from all protectionist measures, especially those affecting developing countries, including tariff, non-tariff and other barriers to trade, in particular agricultural subsidies, and to rectify any such measures already taken. They called for the fulfillment of all commitments contained in the 2001 Doha Declaration for special and differential treatment for developing countries, bearing in mind the special needs of the least developed countries.

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26.  The Ministers strongly emphasized the necessity of a timely conclusion of the Doha Round of multilateral trade negotiations which fully respect its development mandate and take into account the needs and priorities of developing countries. The successful outcome of which would help to ensure growth in global trade, prevent protectionist measures, in particular in developed countries, and create new market access opportunities for developing countries. 27.  The Ministers called upon developed countries to implement effective trade-related technical assistance and capacity building to developing countries, particularly the least developed among them. They also called upon them to provide adequate support for the Enhanced Integrated Framework in order to address the supply-side and trade related infrastructure and productive capacity constraints to assist those countries to increase their exports and the value added and to enhance sustained growth and employment so as to lift more people out of poverty. 28.  The Ministers noted the outcome of UNCTAD XIII held in Doha, Qatar, from 21 to 26 April 2012, which reaffirmed the core mandate of UNCTAD defined in the Accra Accord, and confirmed the organization role as the focal point for an integrated treatment of trade and development and interrelated issues of finance, technology, investment and sustainable development, while enhancing synergies and complementarities with other UN and international organizations. They expressed the hope that the international community will fully support UNCTAD in its activities and encourage the organization to add its contribution in reaching more development goals during the next four years. 29.  The Ministers emphasized the need for the timely implementation of the duty-free and quota free market access, on lasting basis for all LDCs as expressed in the Istanbul Programme of Action. They stressed the importance of facilitating the accession of all developing countries, in particular the LDCs that apply for membership in the World Trade Organization (WTO), without political impediments, in an expeditious and transparent manner and with full observance of the principles of special and differential treatment for developing countries. 30.  The Ministers recognized that South-South trade should be further strengthened, and noted that enhanced market access between developing countries can play a positive role in stimulating South-South trade, and in this regard, inter alia, welcomed the conclusion of the third round of the Global System of Trade Preferences by the adoption on the 15th of December 2010 of the Sao Paulo Protocol and encouraged all developing countries that that have not yet done so to consider acceding to the GSTP and its protocols. 31.  The Ministers stressed the need to resist all protectionist measures and tendencies, especially those affecting developing countries, including tariff, non-tariff and other barriers to trade, in particular agricultural subsidies, and to rectify any such measures already taken, they recognized the right of countries to fully utilize their policy space and flexibilities consistent with World Trade Organization commitments, and called upon the World Trade Organization and other relevant bodies, including the United Nations Conference on Trade and Development, to continue monitoring protectionist measures and to assess their impact on developing countries. 32.  The Ministers called for the full implementation of the Marrakech Ministerial Decision on Measures Concerning the Possible Negative Effects of the Reform Programme on Least Developed and Net Food-importing Developing Countries by providing such countries with technical and financial assistance in order to meet their food needs. 33.  The Ministers expressed their deep concern on the continuing shortfall of technology transfer, know-how and expertise towards developing countries. They emphasized the need to adopt appropriate measures to overcome the technological gap between developing and developed countries and to work towards arrangements that facilitate the process of technology transfer. Technology transfer to support economic and social development and the transfer of environmentally sound and clean technologies are key to advance the development efforts of the South.

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Developing countries should be enabled to develop their own technology with the support of the international community, including building local capacity to design and develop technology. The Ministers stressed that advances in science and technology and easier access to latest technologies will certainly help developing countries achieve significant progress in areas as such agriculture, health, energy, trade, water and environmental protection. Advancement in these sectors in essence represents the internationally agreed development goals including MDGs. The ministers called for an early action in regard to a facilitation mechanism for the promotion, development, transfer and dissemination of clean and environmentally sound technologies as agreed to at the United Nations Conference for Sustainable Development. 34.  The Ministers urged the international community to address the challenges caused by international migration on the basis of common responsibility of all nations, genuine partnership and common understanding, in order to assure that international migration can contribute to the development of both origin and destination countries while minimizing the negative impacts. 35.  The Ministers called on all Member States to renew the political will to address the challenges and opportunities of international migration, both regular and irregular, in a balanced manner and to promote respect for and protection of human rights in the development and implementation of policies regarding migration. In this regard, they stressed the importance of Official Development Assistance and other sources of international resource mobilization to support the efforts of developing countries to eradicate poverty and promote the right of peoples to development, as a key instrument to control migration flows, which are motivated, inter alia, by the search for better welfare and job opportunities. 36.  The Ministers firmly rejected the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries, and reiterated the urgent need to eliminate them immediately. They emphasized that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. They, therefore, called on the international community neither to recognize these measures nor apply them. 37.  The Ministers reaffirmed their strong support to the United Nations, and to all collective efforts aiming at enhancing its ability to fully implement its mandates and to ensure the effective delivery of all its programmes and activities, in particular in the social and economic development field. The Ministers firmly believed that the legitimacy and viability of any reform measures depended ultimately on the approval of Member States of the United Nations. The Ministers emphasized that measures to reform of the United Nations should respond to the unique intergovernmental, multilateral international character and inclusive United Nations. 38.  The Ministers called for strengthening of the UN role in international economic and financial affairs, including its coordinating role in global economic governance. Likewise they stressed that it is important to promote greater cooperation between the UN and the international financial institutions. In that regard, they reiterated the central role played by the United Nations as a focal point for the financing for development follow-up process and the need to maintain that role to ensure the continuity and dynamism of the process, while reaffirming the need to further intensify the engagement of all stakeholders, including the United Nations system, the World Bank, the International Monetary Fund and the World Trade Organization, in the follow-up and implementation of the commitments made at Monterrey and Doha. 39.  The Ministers reaffirmed that the quantity, quality and predictability of development assistance from the UN system constitute a central priority for developing countries. Additionally, the growing imbalance between core and non-core resources for operational activities must be addressed as a matter of urgency. They noted that the increasing shift from core to non-core funding tend to lead to fragmentation and can impair the effectiveness and efficiency of operational

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activities, as non-core resources are unpredictable, increase transaction costs, inefficiency, incoherence and fragmentation of the UN system, including at the country level, causing competition among organizations, as well as inviting them to divert from their respective mandates. Therefore, the Ministers called on donor countries to provide adequate financial resources in order to restore the balance between core and non-core funding resources as well as to ensure an expanding and adequate base of resources for development. 40.  The Ministers reaffirmed that strengthening the role and capacity of the UN development system to assist countries in achieving their development goals requires continued improvement in its effectiveness, efficiency, coherence and impact, along with a significant increase in resources. In that regard, the fundamental characteristics of the UN operational activities for development must remain, among others, the universal, voluntary and grant nature, the neutrality and the multilateralism, as well as their ability to respond to the development needs of programme countries in a flexible manner. Moreover, the operational activities should be carried out for the benefit of recipient countries, at the request of those countries and in accordance with their own national policies and national priorities for development. In this regard, the Ministers looked forward to a successful conclusion of the negotiation of the Quadrennial Comprehensive Policy Review of the United Nations Operational Activities (QCPR) that recognizes the needs and priorities of developing countries. 41.  The Ministers stressed the importance for the entire UN system as well as the BWIs and bilateral donors to recognize the ownership of the concerned developing countries, align their cooperation programmes with the national development strategies of those countries and also harmonize, as appropriate, their individual cooperation programmes with a view to making the optimum contribution to the realization of national development strategies. 42.  The Ministers recalled the special needs of Africa, the only continent currently not on track to achieve the internationally agreed development goals, including the Millennium Development Goals. They recognized that, while economic growth is returning, there is a need to sustain the recovery, which is fragile and uneven, to face the ongoing adverse impacts of multiple crises on development and the serious challenges these impacts pose to the fight against poverty and hunger, which could further undermine the achievement of the internationally agreed development goals, including the MDGs in Africa. 43.  The Ministers expressed their profound concern that the commitment to doubling aid to Africa by 2010 as articulated at the Summit of Gleneagles was not entirely reached and in this regard the Ministers stressed the need to make rapid progress in order to fulfill the Gleneagles and other donors’ commitments to increase aid through a variety of means, including the provision of new additional resources, technology transfer, as well as capacity building to African countries, and to support their sustainable development. On the other hand, the Ministers welcomed the support that some developing countries have extended to Africa through South-South and triangular cooperation programmes. 44.  The Ministers expressed their concern for the situation in the LDCs which continues to deteriorate as a consequence of the ongoing multiple and mutually exacerbating global crises. The global financial and economic ongoing crisis is clearly undermining development in the LDCs. They recalled that the modest development gains that the LDCs made over the years are being reversed, pushing a larger number of their people to extreme poverty. Many LDCs continue to be lagging behind in meeting most of the internationally agreed development goals, including those contained in the Millennium Development Goals. 45. The Ministers reaffirmed that the full implementation of the commitments adopted in Istanbul at the Fourth UN Conference on Least Developed Countries which was held in Istanbul, Turkey, from 10 to 13 May 2011, will substantially boost the resources available to push forward

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the international development agenda and to assist developing countries to mitigate and more effectively respond to the crisis in accordance with their national strategies. 46. The Ministers recalled that the unique and particular vulnerabilities of Small Island Developing States (SIDS) have been acknowledged by the international community since the United Nations Conference on Environment and Development in Rio de Janeiro (1992), the Global Conference for the Sustainable Development of Small Island Developing States in Barbados (1994), the World Summit on Sustainable Development in Johannesburg (2002) and the Mauritius International Meeting on Sustainable Development of Small Island Developing States (2005) and noted with concern that insufficient steps have been taken at the international level to address the vulnerabilities and effectively support their sustainable development efforts, including in achieving the internationally agreed development goals. 47.  The Ministers recalled that climate change and sea level rise pose the greatest threat to SIDS survival and viability and their efforts to achieve sustainable development goals and, in this regard, called on the international community to commit itself to urgently increasing international cooperation to support those efforts particularly through increased financial resources, capacity-building, transfer of technology and know-how, and increased participation of SIDS in international economic decision-making. 48.  In this context, the Ministers called for enhanced efforts to assist SIDS in implementing the Barbados Programme of Action and the MSI. They also called for the UN System to support SIDS in keeping with the ongoing emerging challenges faced by SIDS in achieving sustainable development, and for the convening of the Third International Conference for Sustainable Development of SIDS in 2014. 49.  The Ministers reiterated their recognition of the special needs of and challenges faced by the landlocked developing countries caused by their lack of territorial access to the sea, aggravated by the remoteness from world markets and also the concern that the economic growth and social well-being of land-locked developing countries remain very vulnerable to external shocks as well as the multiple challenges the international community faces including the financial and economic crisis, and climate changes, and stressed the need for the international community to enhance development assistance to landlocked developing countries to help them overcome their vulnerabilities, build resilience and set themselves on a path of sustainable social and economic development. They, therefore, reaffirmed the need to urgently address the special development needs of and challenges faced by the landlocked and transit developing countries through the full, timely and effective implementation of the Almaty Programme of Action, as contained in the Declaration on the midterm review of the Almaty Programme of Action. 50.  The Ministers welcomed the decision of the General Assembly in its resolution 66/214 of December 2011, to hold a comprehensive ten-year review conference of the Almaty Programme of Action in 2014, which should be preceded, by regional and global as well as thematic preparations in a most effective, well-structured and broad participatory manner. Two meetings of the intergovernmental preparatory committee should be convened in early 2014. In this regard, the Ministers took note of the outcome of the Fourth Meeting of Trade Ministers of Landlocked Developing Countries and the High Level Global Thematic Meeting on International Trade, Trade Facilitation and Aid for Trade held in Almaty, Kazakhstan from 12–14 September 2012. 51. The Ministers recognize that middle-income countries still face significant development challenges and underline that despite the recent progress achieved and the efforts made by middle income countries, 75 per cent of the world’s poor population lives in those countries. The achievement of the internationally agreed development goals, including the Millennium Development Goals, as well as the creation of jobs for the youth, the diversification of their economies, and the development of technologies continue to be huge challenges for middle-income countries.

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52.  Furthermore the Ministers would like to underline the increasing solidarity and role played by middle-income countries in the area of South-South cooperation in support of the developing efforts of other developing countries. 53.  The Ministers welcomed the organization and celebration of the high-level event, held on May 17th, 2012, during the 11th session of the Permanent Forum on indigenous Issues, which commemorated the fifth anniversary of the adoption of the United Nations Declaration on the Rights of Indigenous Peoples, as set out in the General Assembly resolution 66/142 adopted by consensus. 54. The Ministers welcomed the adoption of General Assembly Resolution 66/296 of 17 September 2012 which decided the Organization of the High-level Plenary Meeting of the sixty-ninth of the General Assembly, to be known as the World Conference on Indigenous Peoples, to be held on 22 September 2014 and on the afternoon of 23 September 2014 in New York, which decides that the World Conference shall result in a concise, action-oriented outcome document, in order to share perspectives and best practices on the realization of the rights of Indigenous peoples, including to pursue the objectives of the United Nations Declaration on the Rights of Indigenous Peoples, as well as the participation of indigenous peoples in the Conference. 55.  The Ministers welcomed the outcome of the UN Conference on Sustainable Development, ‘The future we want’ and expressed their appreciation to the Government of Brazil for hosting successfully the Conference, in Rio de Janeiro from 20 to 22 June 2012. The Conference reaffirmed that poverty eradication is the greatest global challenge today. It also renewed essential commitments, reaffirmed fundamental principles in particular the principle of equity and common but differentiated responsibilities as set out in the Rio 1992 Declaration, and provided new direction for sustainable development. The Ministers urged the international community to further mainstream sustainable development at all levels, integrating economic, social and environmental aspects and recognizing their interlinkages so as to achieve sustainable development in all its dimensions. 56.  The Ministers called upon the General Assembly to successfully and expeditiously launch the follow-up processes agreed on in the United Nations Conference on Sustainable Development, by ensuring a balanced representation of developing countries, effective and full implementation of the outcomes of the conference, including effective institutional frameworks for sustainable development at all levels, as well as the provision of adequate means of implementation to developing countries. 57.  The Ministers affirmed that the United Nations Framework Convention on Climate Change (UNFCCC) is the primary international, intergovernmental forum for negotiating the global response to climate change. 58.  The Ministers recalled once again that climate change is one of the most serious global challenges of our times. They underlined the fact that developing countries continue to suffer the most from the adverse impacts of climate change, and the increasing frequency and intensity of extreme weather events. They also recalled the challenges faced by developing countries from the impact of response measures. Climate change threatens not only the development prospects and the achievement of sustainable development, but also the very existence and survival of countries and societies 59.  The Ministers stressed that the international community, particularly the developed countries, given their historical responsibility, need to take the lead in addressing this challenge within the United Nations Framework Convention on Climate Change (UNFCCC) and its principles and provisions, particularly, the principles of equity and common but differentiated responsibilities and respective capabilities, and provide financial and technological support to developing countries. The Ministers emphasized that a legally binding second commitment period under the Kyoto Protocol is critical and must be the key deliverable of the 18th meeting of the Conference

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of the Parties to the United Nations Framework Convention on Climate Change (COP 18) and the 8th session of the Conference of the Parties serving as the Meeting of the Parties to the Kyoto Protocol (CMP8) at Doha, and must be ambitious in terms of the emission reductions and shall begin on January 1, 2013, in order to avoid any gap between the first and the second commitment periods. Ministers stressed the need to urgently close the ambition gap, and expressed their concern with the lack of fulfillment of commitments by developed countries. They emphasized that developed countries must take robust and ambitious mitigation commitments, with ambitious quantitative emissions limitation reduction targets, as required by science and mandated by the Convention. 60.  In this context, the Ministers looked forward for a successful and comprehensive outcome at the COP 18/CMP 8, and stressed the importance of the full implementation of the delicate package endorsed in COP17/CMP 7 in Durban in all its aspects, including the achievement of a quality legal second commitment period for the Kyoto Protocol, the successful conclusion of the work of the AWGLCA, in line with the Bali Action Plan and the substantive progress made in the Cancun and Durban decisions, incorporating comparable ambitious targets for Annex-1 non-KP Parties, and addressing in a balanced and effective manner the issues of adaptation, mitigation, finance, technology and capacity building. 61.  The Ministers called on all Parties to preserve the architectures of the Convention and its Kyoto Protocol developed over almost two decades, and cautioned against any attempt to renegotiate or interpret the Convention or its principles, and warned against the unraveling of the international climate change architecture into a weaker regime based on ‘pledge and review’ for Annex I Parties. 62.  The Ministers considered that progress in the Durban Platform is critical for taking the Convention forward. However, work must ensure a strong linkage between mitigation, adaptation and means of implementation, in a balanced manner, as is reflected in the Convention. The Ministers held the view that all tracks under the Convention must progress in an expedite, ambitious and effective manner. Such progress should reflect the linkages between mitigation, adaptation and means of implementation. This relationship is embedded in the Convention. 63.  The Ministers called on all Annex-I Parties to fulfill their commitments relating to mitigation, adaptation, finance, technology transfer, capacity building under the UNFCCC and its Kyoto Protocol. 64.  The Ministers stressed that the treatment of climate change in IMO and ICAO needs to be coherent with UNFCCC and KP principles and provisions. 65.  The Ministers reaffirmed that desertification, land degradation, drought, dust and sand-storm represent a serious concern for developing countries, international action is, therefore, urgently required to address these challenges. They emphasized the great importance of the United Nations Convention to Combat Desertification, particularly in Africa (UNCCD) stressing that desertification, land degradation and drought (DLDD) corrode the three pillars of sustainable development. The Ministers reiterated that addressing DLDD enables countries to deal with several global policy challenges such as food security, adaptation to climate change and forced migration. In this context, the Ministers noted the outcome of the tenth session of the UNCCD held in Changwon, Republic of Korea, on 10–21 October, 2011. 66. The Ministers firmly called on all Parties to fully support the implementation of the Convention in all its aspects, in particular by promoting the exchange of knowledge on best practices and lessons learned from global and regional cooperation in combating desertification, land degradation and drought. 67.  The Ministers stressed that emphasis should also be given to mobilization and channeling of adequate and predictable financial resources as well as facilitating its direct access, in order to

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help address the effects of desertification, land degradation and drought and improve the livelihoods of vulnerable people affected by these most urgent matters at national, sub-regional and regional levels. 68.  The Ministers recognized the interrelationship between climate change, loss of biodiversity and desertification and the need to intensify efforts to combat desertification and promote sustainable land management, and stressed the need for enhanced cooperation and coordination among the Secretariats of the United Nations Convention to Combat Desertification, the United Nations Framework Convention on Climate Change and the Convention on Biological Diversity, while respecting their individual mandates. 69.  The Ministers expressed their concern about the devastating consequences of extreme weather phenomenon characterized by recurrent and long spells of drought, flooding, increasing frequency and severity of dust storms and sandstorms and their negative impact on the environment and the economy, and called for the adoption of appropriate policies in developing countries and the provision of financial resources and technology transfer from developed countries to address them. 70.  The Ministers expressed their commitment to strive to achieve a land degradation neutral world in the context of sustainable development, and urged member states to take urgent action to reverse desertification, land-degradation and drought, as appropriate, with the assistance of the United Nations system, relevant regional and international organizations, multilateral agencies, major groups, and other stake holders. They further urged the UN system, relevant regional and international organizations, multilateral agencies, major groups, and other stakeholders to contribute towards the achievement of land degradation neutral world. In accordance with the commitments made at the United Nations Conference on Sustainable Development, they resolved to take coordinated action nationally, regionally and internationally, in accordance with UNCCD to monitor, globally, land degradation and restore degraded lands in arid, semi-arid and dry subhumid areas and called for implementation, taking into account national priorities, circumstances and development strategies. 71.  The Ministers also expressed their support to enhance the scientific basis of the UNCCD, including the consideration of a regionally balanced intergovernmental scientific panel on desertification, land degradation and drought. 72.  The Ministers reaffirmed the intrinsic value of biological diversity, as well as the ecological, genetic, social, economic, scientific, educational, cultural, recreational and aesthetic values of biological diversity and its critical role in sustainable development and human well-being. They reiterated the severity of global biodiversity loss and degradation of ecosystems and emphasized that these undermine global development, affecting food security and nutrition, provision of and access to water, health of the rural poor and of people worldwide, including present and future generations mostly in developing countries. 73. The Ministers called for the implementation, as appropriate, of the Strategic Plan for Biodiversity for 2011–2020 as the overarching biodiversity framework as well as the ongoing efforts aimed at translating the Aichi targets into national biodiversity strategies and actions plan. The Ministers welcomed the adoption and opening of signature of the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits arising from their utilization and called for its early entry into force. They also called upon CBD COP-11 to enhance capacity of developing country Parties to the CBD in ensuring preparedness for implementing the provisions of the Nagoya Protocol. The United Nations Decade on Biodiversity for 2011- 2020 provides a unique opportunity to engage the people of the world in the battle to protect life on earth and they reaffirmed their commitment to spare no efforts for the successful implementation of the objectives of this decade. 74.  The Ministers reaffirmed their support for a successful outcome of the COP 11 of the United Nations Convention on Biological Diversity to be held in Hyderabad, India in October 2012 and,

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in this regard, noted the importance of the Multi-Year Plan of Action (MYPA) on South-South Cooperation on Biodiversity for Development to be considered by the 11th meeting of the Conference of the Parties to the United Nations Convention on Biological Diversity as a useful tool, which could supplement North-South and triangular cooperation, in making important contributions to the implementation of the Strategic Plan for Biodiversity 2011–2020. 75.  The Ministers welcomed the strategy for resource mobilization in support of the achievement of the three objectives of the Convention on Biological Diversity and stressed the importance of providing biodiversity financing. 76.  The Ministers reaffirmed the social, economic and environmental benefits of forest and the significant contribution of sustainable forest management to sustainable development and poverty eradication and the need for enhanced efforts to achieve the sustainable management of forests, reforestation, restoration and aforestation and the need to promote the implementation of the Non-Legally Binding Instrument on All Types of Forests and its four Global Objectives on Forests (GOFs), as well as the Ministerial Declaration of the high-level segment of the ninth session of the United Nations Forum on Forests on the occasion of the launch of the International Year of Forests. The Ministers stressed the importance of addressing financial gaps in sustainable forest management (SFM) by the establishment of a new Global Forest Fund in the framework of the United Nations, in line with the principles of sustainable development in order to address financing needs of countries to sustainably manage their forests, in particular developing countries with special needs and circumstances, including Africa, least developed countries, low forest cover countries, high forest cover countries, high forest cover low deforestation countries, medium forest cover countries and Small Island Developing States. They reaffirmed the need to support cross-sectoral and cross-institutional policies promoting sustainable forest management. They also highlighted the recognition in the Outcome Document of Rio + 20 ‘The future we want’ of the vital role of the United Nations Forum on Forests, with its universal membership and comprehensive mandate, in addressing forest-related issues in a holistic and integrated manner and promoting international policy coordination and cooperation to achieve sustainable forest management. 77.  The Ministers called on the international community and the UN system to fully support Caribbean States in their efforts to gain international recognition of the Caribbean Sea as a special area in the context of sustainable development, recognizing the importance of the Caribbean Sea to present and future generations and to the heritage and the continuing well being and sustenance of people living in the area, and the urgent need for the countries of the region to take appropriate steps for its preservation and protection, with the support of the international community. 78.  The Ministers emphasized the importance of addressing energy issues, including access to affordable energy, energy efficiency, as well as sustainability of energy sources and use, as part of global efforts for the achievement of the Millennium Development Goals and the promotion of sustainable development. 79.  The Ministers recalled that the G77 and China had been a major force in the negotiation of the law of the sea as reflected in the United Nations Convention on the Law of the Sea (UNCLOS) The positions of the G77 and China remarkably influenced the consecration of some crucial law of the sea concepts inextricably linked to sustainable development: the exclusive economic zone (EEZ), where the coastal State enjoys sovereign rights over the natural resources, and the seabed and ocean floor beyond the limits of national jurisdiction (‘the Area’), the exploitation of the resources therein has to benefit mankind as a whole, irrespective of the geographical location of States, whether coastal or land-locked, and taking into particular consideration the interests and needs of developing States. 80.  In this regard, the Ministers recalled that General Assembly Resolution 2749 (XXV) and then UNCLOS crystallized in a conventional norm the principle of the Common Heritage of Mankind, to which the G77 and China had adhered from its inception, in 1967.

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81.  The Ministers recognized that a major challenge to developing countries has arisen in the law of the sea: the conservation and sustainable use of marine biodiversity beyond areas of national jurisdiction. The exploitation of and benefit from resources of a maritime area that is common heritage of mankind by a few is inconsistent with general principles of international law, including those on equity, as the Area and its resources are to benefit mankind as a whole. In this context, the Ministers stressed that the status quo is not an option. 82.  The Ministers emphasized that the basic principle enshrined in UNCLOS and in General Assembly Resolution 2749 (XXV) applicable to these resources is that of the common heritage of mankind, and that a specific legal regime for the biodiversity of areas beyond national jurisdiction needs to be developed in the form of an implementing agreement to UNCLOS based on that principle. Such an implementing agreement has to be negotiated as a package, and must encompass the conservation and sustainable use of marine biodiversity of areas beyond national jurisdiction, including genetic resources, the sharing of benefits taking into account intellectual property rights, scientific research, capacity building and the transfer of marine technology. 83.  The Ministers expressed their concern over the increased frequency and scale of natural disasters in recent years, which have resulted in massive loss of life and long-term negative social, economic and environmental consequences for countries, particularly developing countries. As a result, millions of people are killed and millions are displaced. They reiterated how disaster impacts are undermining vulnerable livelihoods, countries economic growth and progress towards achieving the Millennium Development Goals. Moreover, these challenges have been compounded by the impact of the global economic and financial crisis, world food crisis and continuing food insecurity, energy crisis and the challenges posed by climate change. 84.  The Ministers called upon the international community, particularly developed countries and the relevant international organizations, to increase their assistance to the affected States, including by supporting efforts towards enhancing their national and regional capacities for implementation of plans and strategies for preparedness, rapid response, recovery and development in relation to natural disasters. They stressed that further efforts are needed in terms of the provision of new and additional financial resources and transfer of technology, from developed countries to developing countries, to promote the implementation of programs aimed at disaster risk reduction; and the enhancement of their national and regional capacities for the implementation of plans and strategies for prevention, including early warning systems, preparedness, rapid response, recovery and development in relation to natural disasters. 85.  The Ministers recognized the need to ensure the realization of the right to the highest attainable standard of physical and mental health, and resolved to strengthen health systems as well as to promote a multi-sectoral approach to address the health needs of the populations of developing countries. 86.  The Ministers recognized that the global burden of communicable and non-communicable diseases constitutes one of the major challenges for development in the twenty-first century, which undermines the sustainable development of Member States and, in this regard, further recognized the urgent need for greater measures at the global, regional and national levels to address communicable and non-communicable diseases. 87.  Ministers reaffirmed that the Fifth Committee of the General Assembly is the sole Main Committee of the Organization entrusted with responsibilities for administrative, financial and budgetary matters. In this regard, the Ministers requested that any budgetary, financial, and administrative matters including those related to the establishment of a peacekeeping operation or a special political mission be discussed solely in the framework of the Fifth Committee, in conformity with the UN Charter.

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88.  The Ministers strongly supported the oversight role performed by the General Assembly, as well as its relevant intergovernmental and expert bodies, in the planning, programming, budgeting, monitoring and evaluation. In this context, they renewed their commitment to strengthen the role of the Committee for Programme and Coordination (CPC) and encouraged Member States of the Group of 77 and China to fill all the vacancies of CPC assigned to the regional groups where they participate. The Ministers also urged the rest of the Membership of the United Nations to actively participate in the sessions of the CPC. 89. They reaffirmed that any Secretariat and management reform efforts, including on its budget process, must not intend to change the intergovernmental, multilateral and international nature of the Organization, but must strengthen the ability of Member States to perform their oversight and monitoring role and that prior Member Sates’ consideration and approval is essential in all cases where the measures to be implemented fall under the prerogatives of the General Assembly and in this regard recall resolution 66/257. They also reaffirmed the right of the entire membership of the United Nations to pronounce on the administration of the Organization, including on its budgetary matters and the need for a continuous interaction and dialogue between the Secretariat and the General Assembly aimed at fostering a positive environment for the negotiations, the decision-making process and the implementation of the reform measures. 90.  The Ministers reaffirmed the importance of the strategic framework as the principal policy directive of the Organization and that its content should fully reflect the mandates of Member States, including the United Nations financial rules and regulation. In this context, they stressed the need for Member States of the G77 to fully participate in the consideration of the proposed strategic framework for the biennium 2014–2015. 91.  The Ministers reaffirmed the commitment of the Group of 77 and China to the United Nations Secretariat and management reform, with a view to making the Organization more effective, representative, transparent, accountable, and responsive to the needs of the Member States. They highlighted that, for these reforms to be successful, they must be predicated on broad and inclusive consultations with the General Assembly and must reflect and strengthen the Member State-driven nature of the Organization. 92.  The Ministers stressed the need to submit for consideration and prior approval of the General Assembly, through its Fifth Committee, any proposal or measure related to the implementation of the recommendations of the report of the Change Management Team that fall within the purview of Member States in line with the provisions contained in General Assembly resolutions 64/259 and 66/257. 93.  The Ministers underlined that the current methodology for the preparation of the scale of assessments reflects changes in the relative economic situations of the United Nations Member States. The Ministers further reaffirmed the principle of ‘capacity to pay’ as the fundamental criterion in the apportionment of the expenses of the United Nations and rejected any change to the elements of the current methodology for the preparation of the scale of assessments aimed at increasing the contributions of developing countries. In this regard, they emphasized that the core elements of the current methodology of the scale of assessment, such as base period, Gross National Income, conversion rates, low per capita income adjustment, gradient, floor, ceiling for Least Developed Countries and debt stock adjustment must be kept intact and are not negotiable. 94.  The Ministers stressed that the current maximum assessment rate, or ceiling, had been fixed as a political compromise and is contrary to the principle of the capacity to pay and a fundamental source of distortion in the scale of assessments. In this context, they urged the General Assembly to undertake a review of this arrangement, in accordance with paragraph 2 of General Assembly resolution 55/5 C.

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95.  The Ministers affirmed that the current principles and guidelines for the apportionment of the expenses of peacekeeping operations approved by the General Assembly in its relevant resolutions should constitute a basis for any discussion on the peacekeeping scale. In this regard, the Ministers stressed that the peacekeeping scale must clearly reflect the special responsibilities of the permanent members of the Security Council for the maintenance of peace and security. The Ministers also recalled that the economically less developed countries have limited capacity to contribute towards the budgets of peacekeeping operations. In this context, the Ministers emphasized that any discussion on the system of discounts applied to the peacekeeping scale should take into account the conditions of developing countries whose current positions must not be negatively affected. The Ministers stressed, in this regard, that no member of the Group of 77 and China that is not a permanent member of the Security Council, should therefore be categorized above level C. 96.  The Ministers reaffirmed that the financial stability of the United Nations should not be jeopardized by arbitrary measures. The Ministers stressed that any efforts to use financial contributions to push for the adoption of certain proposals are counterproductive and violate the obligations of the Member States to provide resources for the Organization, as enshrined in its Charter. 97.  The Ministers, in this context, rejected all unilateral coercive measures contrary to the international law, which obstruct and sometimes impede payments of assessed contributions from members of the Group of 77 and China to the budgets of the Organization. 98. The Ministers also expressed concern over the closure of the official bank accounts of Member States of the Group that has impaired proper functioning of the Missions as well as payment of Member States’ contributions to the Organization. In this regard, the Ministers stressed that the private nature of the banking system does not relieve the host country of its responsibility to ensure unrestricted banking services to the Permanent Missions of the Member States of the Group in New York and urged the host country to fulfill its obligations accordingly. 99.  The Ministers strongly reaffirmed the legal obligation of all Member States to bear the financial expenses of the UN, in accordance with the Charter, and urged all Member States to pay their assessed contributions on time, in full and without conditions. They also stressed that the special and genuine difficulties faced by some developing countries that prevent them from meeting temporarily their financial obligations should be fully taken into account and that the decisions of the General Assembly on the agenda item ‘scale of assessments’ must be responsive to such difficulties. 100.  The Ministers stressed that the level of resources to be approved by the General Assembly must be commensurate with all mandated programmes and activities in order to ensure their full and effective implementation. They also reaffirmed the priorities of the Organization as approved by the General Assembly and the need for the Secretary-General to reflect these priorities when presenting proposed programme budgets. 101.  The Ministers reiterated that there is a need to strike a balance in reflecting the agreed priorities of the Organization in the allocation of resources to the United Nations regular budget, which is persistently to the detriment of the development activities. In this regard, the Ministers also stressed that the Secretariat must strictly implement General Assembly mandates without exceptions and/or delays. 102.  In this context, the Ministers stressed that the strengthening of the United Nations and its role in international cooperation for development is essential to respond to current and future challenges and opportunities emanating from the process of globalization. They recognized that the United Nations needs to improve its capabilities and capacities to fully implement its mandates and to ensure the effective delivery of its programmes in the social and economic

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development field. In this regard, they urged the Secretary-General to further strengthen the development pillar of the whole organization, including its development account. 103.  The Ministers stressed the importance of ensuring that the Secretariat meets the highest standards of accountability, transparency, integrity and ethical conduct. The Ministers, therefore, urged the Secretary-General, as a matter of priority, to fully implement General Assembly resolutions 64/259 and 66/257. 104.  The Ministers expressed concern at the inadequate share of the developing countries in the United Nations system of procurement. They emphasized that the United Nations procurement should be on as wide a geographical basis as possible with preferential treatment for the developing countries. They further underlined that the United Nations supplier roster should be representative of the membership of the Organization and underscored the need to implement concrete measures to ensure greater market access by businesses from developing countries in United Nations procurement. 105.  The Ministers stressed the need to increase the representation of developing countries, in particular at the senior levels, and to improve geographic distribution in the Secretariat and more transparency in recruitment process. 106.  The Ministers recalled the decision of the Heads of State and Government at the Second South Summit held in Doha, Qatar from 12 to 16 June 2005 to work to ensure that programmes and policies designed in the context of globalization fully respect the principles and purposes of the United Nations Charter and International Law, particularly as they relate to equality among States, respect for the independence of States, national sovereignty, territorial integrity and non-interference in the internal affairs of States, and to stress that those principles and purposes inspire our full commitment to multilateralism and the search for a more just and equitable international economic system that offers opportunities to raise the standard of living of our peoples. 107.  The Ministers recalled the decision of the Heads of State and Government at the Second South Summit held in Doha, Qatar on 12–16 June 2005, to work towards the realization of the right to self-determination of peoples living under colonial or other forms of alien domination or foreign occupation, which adversely affects their social and economic development, and to call on the international community to take all necessary measures to bring an end to the continuation of foreign occupation, in accordance with the purposes and principles of the UN Charter and international law. 108.  The Ministers reiterated their call for the immediate and full withdrawal of Israel, the occupying Power, from the Occupied Palestinian Territory, including East Jerusalem, and the occupied Syrian Golan to the line of 4 June 1967 and from the remaining Lebanese occupied land. They reaffirmed their support for a Middle East peace process aimed at achieving a comprehensive, just and lasting peace in the region, in accordance with the relevant UN resolutions, including Security Council resolutions 242 (1967), 338 (1973), 425 (1978) and 1850(2008) and the principle of land for peace. In this context, they also reaffirmed their support for the Arab Peace Initiative endorsed by the Arab Summit since March 2002. 109.  The Ministers stressed the need for the early realization by the Palestinian people of their right to self-determination and to the independence of their State of Palestine to allow for their stability, prosperity and development towards the achievement of the Millennium Development Goals (MDGs) to which all peoples are entitled. The Ministers expressed support for the efforts of the Palestinian people to achieve independence and welcomed in this regard the submission of Palestine’s application on 23 September 2011 for full membership in the United Nations. 110. The Ministers condemned the ongoing Israeli military occupation of the Palestinian Territory, including East Jerusalem, and the illegal actions by the occupying Power that continue to cause civilian casualties, socio-economic and humanitarian hardship, and destruction to

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Palestinian properties, infrastructure and agricultural lands, and to undermine the contiguity, unity and integrity of the Territory. 111.  The Ministers expressed deep concern about the further decline of the social and economic conditions of the Palestinian people, particularly in the besieged Gaza Strip, as a result of the illegal Israeli practices, including construction of settlements and the Wall and the imposition of blockade and hundreds of checkpoints. They called upon Israel, the occupying Power, to cease immediately all illegal measures impairing the Palestinian economy and development, including, in particular, the inhumane and illegal blockade imposed on the Gaza Strip and restrictions on the movement of persons and goods, including commercial trade throughout, into and out of the Occupied Palestinian Territory and to make reparation for all damages caused to Palestinian properties, institutions and infrastructure. They reiterated their call upon the international community to continue providing much needed developmental and humanitarian assistance to the Palestinian people during this critical period particularly for the reconstruction and economic recovery in the Gaza Strip. 112.  The Ministers reaffirmed the inalienable rights of the Palestinian people and of the population of the occupied Syrian Golan over their natural resources, including land, water and energy resources; and demanded that Israel, the occupying Power, cease the exploitation, damage, cause of loss or depletion, and endangerment of the natural resources in the Occupied Palestinian Territory, including East Jerusalem, and in the occupied Syrian Golan; 113.  The Ministers reaffirmed the need for the Government of the Argentine Republic and the United Kingdom of Great Britain and Northern Ireland to resume negotiations in accordance with the principles and the objectives of the United Nations Charter and the relevant resolutions of the General Assembly, in order to find, as soon as possible, a peaceful solution to the sovereignty dispute relating to ‘the Question of the Malvinas Islands’, which seriously damages the economic capacities of the Argentine Republic and the need for both parties to refrain from taking decisions that would imply introducing unilateral modifications in the situation while the islands are going through the process recommended by the General Assembly. 114. The Ministers reaffirmed the need to find a peaceful solution to the sovereignty issues facing developing countries, including among others the dispute over Chagos Archipelago, including Diego Garcia, which was unlawfully excised from the territory of Mauritius in violation of international law and United Nations General Assembly resolutions 1514 (XV) of 14 December 1960 and 2066 (XX) of 16 December 1965. Failure to resolve these decolonization and sovereignty issues would seriously damage and undermine the development and economic capacities and prospects of developing countries. 115.  The Ministers reiterated their position that South-South cooperation is a complement to, rather than substitute for, North-South cooperation and reaffirmed that South-South cooperation is a collective endeavor of developing countries based on principle of solidarity and premises, conditions and objectives that are specific to the historic and political context of developing countries and to their needs and expectations and as such South-South cooperation deserves its own separate and independent promotion as reaffirmed in the Nairobi outcome document. In this context, the Ministers stressed that South-South cooperation and its agenda must be driven by the countries of the South. As such, South-South cooperation which is critical for developing countries requires long-term vision and a global institutional arrangement as envisioned by the Second South Summit. 116.  The Ministers reaffirmed the importance of strengthening South-South Cooperation especially in the current international economic environment and reiterated their support for South-South Cooperation as a strategy to sustain the development efforts of developing countries and also as a means of enhancing their participation in the global economy. They reiterated the framework and the principles of South-South Cooperation as endorsed by their Thirty-fourth

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Annual Meeting held in New  York on 28 September 2010 and subsequently reiterated by the Thirty-fifth and Thirty-sixth Annual Ministerial Meetings. 117.  The Ministers stressed that the General Assembly High-level Committee on South-South Cooperation is the central multilateral policy-making body in the UN system to review and assess global and system-wide progress on and support for South-South development cooperation, including triangular cooperation, and to provide overall guidance on future directions. The Ministers urged all partners interested in supporting South-South cooperation to be guided by the principles and objectives for such cooperation established in such UN internationally agreed documents as the Buenos Aires Plan of Action on Technical Cooperation among Developing Countries that was adopted by General Assembly resolution 33/144 dated 19 December 1978 and the Nairobi Outcome Document on South-South Cooperation that was endorsed by General Assembly resolution 64/222 dated 21 December 2009, as well as other relevant General Assembly resolutions. The Ministers, therefore, reiterated the Group’s position that any policy debate outside the UN system should be guided by the above agreed frameworks as well as the Yamoussoukro Consensus on South-South Cooperation. 118.  The Ministers welcomed the decision 17/1 of the High Level Committee on South-South Cooperation, particularly the paragraph number 8 on renaming the former Special Unit by the current denomination of United Nations Office for South-South Cooperation, and in that regard, emphasized that the support of the United Nations system to South-South Cooperation could be scaled up through strengthening the United Nations Office on South-South Cooperation by providing human, financial and technical resources that will help the Office to keep pursuing its advisory role, providing substantive and strategic advice while giving capacity-building support through UNDP as well as others Funds and Programmes, enabling the Office to support the mainstreaming of South-South Cooperation across the United Nations development system. 119. The Ministers recognized the need to mobilize adequate resources for enhancing South-South cooperation and, in that context, invited all countries in a position to do so to contribute in support of such cooperation through, inter alia, the Pérez-Guerrero Trust Fund for South-South Cooperation and the United Nations Fund for South-South Cooperation. 120.  The Ministers welcomed the progress made in the operationalization of the Consortium on Science, Technology and Innovation for the South (COSTIS) and invited the member States of the Group of 77 to offer hosting technical preparatory meetings prior to the First General Conference of COSTIS. They also welcomed the convening by the Chairman of the Group of 77 of a High-level Meeting on South-South Cooperation in Science and Technology on the occasion of the World Forum on Science held in Budapest on 16 – 19 November 2011. 121.  The Ministers recalled ‘the Declaration adopted at its annual session on September 2011 regarding the International Fund for the Promotion of Culture followed by the unanimous decision of the 36th session of the General Conference on November 2011, the Minister requests UNESCO’s Director-General to earnestly relaunch the activities of the IFPC bearing in mind the full respect of Resolutions 18C/87 establishing the Fund at the 18th session of the General Conference in 1974 with a large “intellectual and operational autonomy” and 35C/48 adopted in 2009 by the 35th session of the General Conference stressing the intellectual and operational autonomy’ of the IFPC. 122.  The Ministers invited the Member States of the Group of 77 to come forward with an offer of venue for hosting the thirteenth session of the Intergovernmental Follow-up and Coordination Committee on South-South Cooperation (IFCC-XIII) in 2013. They also invited Member States to host sectoral meetings in various fields of cooperation including South-South forums for parliamentarians, mayors, youth, media and civil society and other thematic meetings as envisaged in the Doha Plan of Action adopted by the Second South Summit held in Doha, Qatar from 12 to 16 June 2005.

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123.  The Ministers noted that, in view of the mounting and intractable challenges that developing countries face, more frequent high-level meetings of the Group on thematic/sectoral issues, and with action-oriented outcomes, might be required. To this end, the Ministers invited Member States of the G77 to make offers to host regularly high-level meetings of the Group on key issues of interest to the South. 124. The Ministers recalled the Development Platform for the South, and invited countries, members of the Group of 77 to host brainstorming sessions of the high-level panel of eminent personalities of the South with a view to updating regularly the Platform taking into account the evolving realities and challenges facing the developing countries. 125.  The Ministers noted the preparations for the Third South Summit and invited the Chairman of the Group of 77 to continue his consultations with Member States of the Group of 77 for the hosting of the Summit to be held at a convenient date. 126.  The Ministers approved the Report of the Twenty-seventh Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund for South-South Cooperation (PGTF) contained in document G-77/AM(XXIII)/2012/2 and endorsed its recommendations. The Ministers commended the Chairman of the PGTF for his continued commitment and expressed their satisfaction with the results achieved by the PGTF. In light of the substantial decrease in the interest earnings of the Fund caused by the current world financial situation as reported by the Chairman of the PGTF, the Ministers appealed to every Member State to make a significant contribution to the PGTF on the occasion of the UN Pledging Conference for Development Activities to be held in New York on 14 November 2012. 127.  The Ministers approved the Financial Statement of the ECDC Account of the Group of 77 contained in document G-77/AM(XXIII)/2012/3, as presented by the Chairman of the Group of 77 and urged those Member States that have not yet done so to make special efforts to pay their outstanding contributions. 128.  The Ministers expressed their deep appreciation to Algeria for its able leadership and for the excellent work and tireless efforts as the Chair country of the Group of 77 for 2012. As 2012 proved to be a challenging year for all developing countries, the commitment shown by Algeria as Chair country in pursuing the goals and objectives of the Group of 77 was a source of profound gratitude. The Ministers also commended the efficient work and continued valuable support provided by the secretariat of the Group of 77 in New York to the Chair country and to the Member States and congratulated the Executive Secretary of the Group of 77 for the achievement award presented to him during the opening ceremony of the Ministerial Meeting in recognition of his outstanding performance, his continued commitment and dedication to the goals and objectives of the Group of 77. 129.  The Ministers warmly welcomed the election by acclamation of the Republic of Fiji to the Chairmanship of the Group of 77 for 2013.

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37.  Thirty-seventh Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 26 September 2013 a.  Ministerial Declaration The Ministers for Foreign Affairs of the Member States of the Group of 77 and China met at United Nations Headquarters in New  York on 26 September 2013 on the occasion of their thirty-seventh annual meeting. The Ministers reviewed the world economic situation and the development challenges faced by developing countries and adopted the following Declaration: 1.  The Ministers pledged to continue to work towards achieving the goals and objectives of the Group of 77 and, in this regard, underscored the historic importance of the fiftieth anniversary of the establishment of the Group of 77, to be commemorated in June 2014. 2.  The Ministers stressed the fact that the focus of the developing countries is to continue to find means to achieve their developmental objectives, in particular the attainment of the internationally agreed development goals, including the Millennium Development Goals. They also stressed the importance of elaborating a post-2015 development agenda that truly meets the needs of the developing world. 3.  In this context, they noted that the ongoing world financial and economic crisis was negatively affecting the growth prospects of many developing countries, in particular the least developed countries, reversing the development trends of the recent past and leading to an increased incidence of poverty and slower progress in poverty eradication. The Ministers noted that many developing countries, because of several challenges, were unable to mitigate impacts of the crisis on development. They reaffirmed that recovery was being threatened by new adverse circumstances, including protectionism measures, turbulence in the global financial markets and widespread fiscal strains. 4.  The Ministers emphasized that even though the world had undergone far-reaching changes in the past two decades and significant progress had been made in many important fields of development, through national as well as international efforts, developing countries continue to face serious challenges in eradicating poverty and advancing their levels of development. These challenges are being exacerbated by an unfavourable international economic environment and the lack of reform of institutions of global economic and financial governance. Ministers noted with concern that the number of people living in absolute poverty had increased in many developing countries. In facing these challenges, the Ministers affirmed that the principle of common but differentiated responsibilities and the right to development continue to remain relevant, and emphasized their central importance as the foundation of the current and post-2015 global development agenda, including in the context of the global partnership for development. 5.  The Ministers stressed that poverty eradication was the greatest global challenge facing the world today and an indispensable requirement for sustainable development. 6.  The Ministers expressed their deep concern for the constraints on the fight against poverty arising from the current global crises, in particular the world financial and economic crisis, the continuing food insecurity, volatility of capital flows and extreme volatility of commodity prices, the energy crisis and the challenges posed by climate change to developing countries. They reiterated that special attention must be brought to the structural roots of poverty in the international system, hindering the efforts of the developing countries in their fight against poverty. 7.  The Ministers further stressed that, in order to enable the Governments of developing countries to effectively eradicate poverty, developing countries must ensure national ownership of their own development agenda, which entails preserving their own policy space backed by a

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strong political commitment to reduce poverty in line with their national priorities and circumstances. As such, the Governments of developing countries must formulate their own development strategies to assist the poor through policies and actions including, but not limited to, the provision of universal and affordable access to basic services; the provision of a well-designed social protection system; the empowerment of individuals to seize economic opportunities; and measures to ensure the protection of the environment. 8.  The Ministers reiterated that policies and development efforts targeted at poverty eradication must be responsive to the challenges as well as the opportunities of sustainable development at both the international and national levels. In this regard, a supportive, fair financial architecture and international trading system as well as a genuine global partnership for sustainable development that includes clear-cut goals are crucial to complement the efforts of national Governments. 9.  The Ministers accordingly underscored the need for a strengthened and scaled-up global partnership for development, based on the recognition of national leadership and ownership of development strategies. They emphasized that international cooperation must be enhanced, including the fulfilment of commitments of internationally agreed official development assistance, debt relief, market access, capacity-building and technical support, including technology transfer. 10.  The Ministers underlined that debt crises tend to be costly, disruptive and followed by cuts in public spending, affecting developing countries, especially heavily indebted developing countries, and that no path to growth can be construed or fostered with unsustainable debt overhang. They recognized the importance of debt relief, including debt cancellation and debt restructuring. Debt-restructuring processes should have as their core element a determination of real payment capacity so that they may not compromise national growth perspectives. In this regard, they reiterated the urgent need for the international community to examine options for an effective, equitable, durable, independent and development-oriented debt restructuring and international debt resolution mechanism and called upon all countries to promote and contribute to the discussions within the United Nations and other appropriate forums with that objective. 11.  The Ministers recalled that sovereign debt management has been a crucial issue for developing countries, both as a cause for concern in past decades and as a strong point in more recent years owing to the activities of vulture funds. Recent examples of vulture funds’ actions in international courts have revealed their speculative and profit-seeking nature. These vulture funds pose a risk to all future debt-restructuring processes, for both developing and developed countries. The Ministers reiterated the importance of not allowing vulture funds to paralyse the debt-restructuring efforts of developing countries and that those funds should not supersede a State’s right to protect its people under international law. 12.  The Ministers expressed serious concern about the substantial increase in the financial stability risks of many developed economies and, in particular, their high structural fragilities in financing sovereign debt created as a result of transferring private risk to the public sector. In this regard, they called for urgent and coherent solutions to reduce sovereign risk in developed economies to prevent contagion and to mitigate its impact on the international financial system. 13.  The Ministers stressed the need for a more transparent international credit rating system that takes fully into account the needs, concerns and peculiarities of developing countries, especially heavily indebted developing countries. In this regard, the Ministers expressed concern about the soundness of the methodology used by the major credit-rating agencies. They emphasized that greater competition among rating agencies is necessary to avoid oligopolistic tendencies and their negative effects. The Ministers reiterated that inadequate assessments of the solvency of debtors have the potential to cause or exacerbate crises, rendering the financial system more vulnerable to cliff effects. Ministers stated that it was necessary to continue the discussions on the role of credit-rating agencies with a view to proposing concrete policies aimed at reducing dependency on them by enhancing their supervision and increasing competition through the

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establishment of independent assessment mechanisms. In this regard, the Ministers welcomed the convening of a General Assembly thematic debate on the role of credit-rating agencies in the international financial system on 10 September 2013 pursuant to General Assembly resolution 67/198. 14.  The Ministers reaffirmed that official development assistance (ODA) remains essential as a catalyst for development, facilitating the achievement of national development objectives, including the Millennium Development Goals. The global financial and economic crisis cannot be used as an excuse to avoid fulfilling existing aid commitments by developed countries or making further commitments. An effective response to the ongoing economic crisis requires the timely implementation of existing aid commitments and an urgent and unavoidable need for donors to fulfil them. 15.  The Ministers stressed that developed countries must meet and scale up their existing bilateral and multilateral official development assistance commitments and targets made, inter alia, in the United Nations Millennium Declaration, the Monterrey Consensus and the 2005 World Summit Outcome, at the G8 summit at Gleneagles, in the Doha Declaration for Financing for Development and at other relevant forums. An enhanced predictable and sustainable flow of ODA is essential in meeting the regular development challenges as well as the new and emerging challenges in developing countries, in particular in least developed countries. 16.  The Ministers expressed concern over the fact that for the second time ODA fell for two consecutive years and that developed countries were still far from achieving the long-standing goal of mobilizing 0.7 per cent of gross national product (GNP) as ODA to developing countries, including the target of 0.15 to 0.20 per cent of GNP to the least developed countries. They called upon developed countries to urgently fulfil the ODA commitments they had made, individually and collectively, including the timely implementation of all commitments under the global partnership for development so as to overcome the gaps identified in the latest MDG Gap Task Force Report. 17.  The Ministers stated that international trade was a vital tool for providing long-term sustainable growth. The decline in trade due to the global financial and economic crisis has had a severe impact on developing countries. The fall in exports and the loss of export revenues, trade barriers and trade-distorting subsidies in developed countries, restricted access to trade finance and reduced investment in production diversification and in the promotion of exports remain matters of concern. In order to fully harness the potential of trade, it is important to uphold a universal, rules-based, open, non-discriminatory and equitable multilateral trading system that contributes to growth, sustainable development and employment, particularly for developing countries. 18.  In this context, the Ministers underlined the necessity of a timely conclusion of the Doha Round of multilateral trade negotiations, which must fully respect its development mandate and take into account the needs and priorities of developing countries. The Ministers called for a balanced and tangible outcome of the Ninth Ministerial Conference of the World Trade Organization (WTO), to be held in Bali, Indonesia, in December 2013, in favour of developing countries, especially least developed countries. The outcome should deliver progress in the trade negotiations on agricultural products as well as development towards compliance with the Doha Development Agenda. 19.  The Ministers reiterated that developed countries should provide effective trade-related technical assistance and capacity-building tailored to the specific needs and constraints of developing countries. They also called upon the developed countries to provide adequate support for the Enhanced Integrated Framework for Trade-related Technical Assistance of WTO in order to address the supply-side and trade-related infrastructure and productive capacity constraints of least developed countries. Moreover, the international financial and trading systems should adopt

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and implement appropriate policy measures to facilitate foreign direct investment in developing countries, including investment guarantee schemes targeting productive sectors. 20.  The Ministers emphasized the importance of facilitating accession to WTO. The accession process should be accelerated without political impediment and in an expeditious and transparent manner for developing countries, in full compliance with WTO rules. This would contribute to the rapid and full integration of developing countries into the multilateral trading system. 21.  The Ministers expressed the view that the capacity to generate full employment and decent work are fundamentally linked to reviving and enhancing productive development strategies, through adequate finance, investment and trade policies. In this regard, they reaffirmed the need for significant mobilization of resources from a variety of sources and the effective use of financing in order to give strong support to developing countries in their efforts to promote sustainable development. They also stressed the need to maintain coherence between macroeconomic and job creation policies in order to ensure inclusive and resilient global economic growth. 22.  The Ministers expressed deep concern about the continuing high levels of unemployment and underemployment, particularly among young people, and stressed the need to launch an intergovernmental process, within the United Nations, to develop the global strategy on youth employment. 23.  The Ministers expressed their commitment to strengthening efforts to achieve the Millennium Development Goals by 2015 and shaping the international development agenda post-2015. The Ministers called upon the international community to redouble all efforts for the accelerated achievement of the Millennium Development Goals by 2015 through concrete measures. 24.  The Ministers noted the progress achieved so far in reaching the Millennium Development Goals. However, they expressed their concern with the unevenness of and gaps in the achievement and the vast socioeconomic and environmental challenges that remain in developing countries. They stressed that the Millennium Development Goals have provided a common vision and contributed to remarkable progress. In this context, the Ministers reiterated that the Millennium Development Goals remained critical for meeting the basic needs of people in developing countries, in particular in least developed countries, landlocked developing countries, small island developing States, African countries, conflict and post-conflict countries and countries under foreign occupation, many of which are not on track to achieve the Goals by 2015, as well as for addressing specific development challenges facing middle-income countries. 25.  The Ministers underscored the central role of the global partnership for development and the importance of Goal 8 in achieving the Millennium Development Goals. They recalled that without substantial international support and systemic changes, several of the Goals were likely to be missed in many developing countries by 2015. The Ministers called upon the international community to intensify its efforts to provide enhanced means of implementation to the developing countries through a renewed global partnership based on Goal 8 in the collective quest to eradicate poverty and deprivation. 26.  The Ministers welcomed the outcome of the special event of the General Assembly to follow up on efforts made towards achieving the Millennium Development Goals held on 25 September. 27.  The Ministers stressed the need to further mainstream sustainable development at all levels, integrating economic, social and environmental aspects and recognizing their interlinkages, so as to achieve sustainable development in all its dimensions. 28. The Ministers reaffirmed the outcome document of the United Nations Conference on Sustainable Development as the basis for the work of the Open Working Group on Sustainable Development Goals. The sustainable development goals should be a driver for the implementation and mainstreaming of sustainable development in the United Nations system as a whole. While the development of the sustainable development goals must not divert focus or effort from

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the achievement of the Millennium Development Goals, the Ministers stressed the need for a serious concerted effort in the Open Working Group towards developing a set of aspirational, concise, action-oriented and universally applicable sustainable development goals. They further underscored the fundamental importance for the sustainable development goals to build upon and complement the Millennium Development Goals, towards the overarching objective of achieving poverty eradication. 29.  The Ministers reaffirmed that the guiding principles of the sustainable development goals must be based on those enumerated in the Rio Declaration, Agenda 21 and the Johannesburg Plan of Implementation, and the United Nations Conference on Sustainable Development and be consistent with international law. The process and outcome of the Open Working Group should fully respect all Rio Principles, in particular the principles of sovereignty of States over their natural resources, and common but differentiated responsibilities. They therefore emphasized the need to increase efforts towards changing unsustainable patterns of consumption and production, with developed countries taking the lead. 30.  The Ministers reaffirmed that there are different approaches, visions, models and tools available to each country, in accordance with its national circumstances and priorities, to achieve sustainable development and poverty eradication in its three dimensions, and in this regard the Ministers noted that some countries recognize the rights of nature in the context of the promotion of sustainable development in harmony with nature. 31. The Ministers reaffirmed the outcome document of the United Nations Conference on Sustainable Development and welcomed the launch of the different follow-up processes agreed on in the outcome, including the establishment of the Open Working Group on Sustainable Development Goals, the High-level Political Forum on Sustainable Development and the Intergovernmental Committee of Experts on Sustainable Development Financing. The Ministers welcomed the recommendation in the report of the Secretary-General for the establishment of a global mechanism for technology facilitation, which is considered as a way forward to implement paragraph 273 of the outcome document of the United Nations Conference on Sustainable Development. 32.  The Ministers welcomed the interactive dialogue of the General Assembly on Harmony with Nature, held on 22 April 2013, to commemorate International Mother Earth Day. The participants discussed different economic approaches in the context of sustainable development to further a more ethical basis for the relationship between humanity and the Earth, pursuant to Assembly resolution 67/214. 33.  The Ministers welcomed the establishment of the High-level Political Forum, which replaces the Commission on Sustainable Development. The Ministers stressed the importance of its universal character and for the Forum to carry out the functions mandated for it by paragraph 85 of the outcome document of the United Nations Conference on Sustainable Development, entitled ‘The future we want’, in all aspects—economic, social and environmental—of sustainable development, and is consistent with the strengthening of the role of the Economic and Social Council, builds on the strengths and addresses the shortcomings of the Commission on Sustainable Development. 34.  The Ministers stressed that progress in achieving the sustainable development goals and realizing the post-2015 development agenda would depend on progress in creating an international enabling environment that is pro-development and in delivering the relevant means of implementation, particularly in the areas of finance, technology and capacity-building. 35.  The Ministers recalled that the initiative to strengthen the Economic and Social Council was aimed at making the Council more relevant, effective and responsive to current and emerging global sustainable development challenges as a central mechanism for coordinating the activities

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of the United Nations system with a relevant role in ensuring the implementation of its decisions in the activities of agencies, funds and programmes through their executive boards. In this regard, Ministers reiterated that a strengthened Economic and Social Council must stay focused on development and must remain the principal organ of the United Nations for coordination, policy review, policy dialogue and recommendations on issues relating to sustainable development, as well as for the implementation of international development goals, including the Millennium Development Goals, and coordinate the follow-up of the outcomes of the major United Nations conferences and summits. They recognized the key role of the Council in achieving the balanced integration of the three dimensions of sustainable development. Ministers noted with satisfaction the adoption of General Assembly resolution 68/1 on the review of resolution 61/16. 36.  The Ministers stressed that the post-2015 development agenda must be arrived at through transparent and inclusive intergovernmental negotiations under the auspices of the United Nations. In this regard, they noted with appreciation the decision taken at the special event of the General Assembly to follow up on the efforts made towards achieving the Millennium Development Goals to launch intergovernmental negotiations at the beginning of the sixty-ninth session of the Assembly for the adoption of the post-2015 development agenda. 37.  Recalling the affirmation by the United Nations Conference on Sustainable Development that poverty eradication is the greatest global challenge and an indispensable requirement for sustainable development, the Ministers emphasized that poverty eradication must remain the central and overarching objective of the post-2015 development agenda. In this regard, Ministers took note of the report of the Secretary-General on the Millennium Development Goals and the post-2015 development agenda entitled ‘A life of dignity for all:  accelerating progress towards the Millennium Development Goals and advancing the United Nations development agenda beyond 2015’ (A/68/202). They underlined their strong support for the call made by the Secretary-General in the report for ending poverty by 2030. 38.  The Ministers reaffirmed the Rio Declaration, Agenda 21, the Millennium Declaration, the Johannesburg Plan of Implementation, the Monterrey Consensus, the Doha Declaration on Financing for Development, the outcome of the United Nations Conference on the World Financial and Economic Crisis and Its Impact on Development and the outcome document of the United Nations Conference on Sustainable Development. They stressed that both the process and the outcome of the post-2015 development agenda must be fully consistent with the mandate of the United Nations Conference on Sustainable Development contained in its outcome document, entitled ‘The future we want’ and in accordance with the Rio Principles, in particular the principle of common but differentiated responsibilities. 39.  The Ministers emphasized that the post-2015 development agenda should be an agenda for development. Emphasizing that sustained and inclusive economic growth in developing countries is a key requirement for eradicating poverty and hunger and achieving the Millennium Development Goals, the Ministers stressed that the post-2015 development agenda should promote rapid and sustained economic growth in developing countries and fully preserve their developmental policy space and also integrate the three dimensions of sustainable development. 40.  The Ministers further stressed that the post-2015 development agenda must carry forward and finish the unfinished business of the Millennium Development Goals. The human development imperatives enshrined in the Millennium Development Goals—eradication of poverty and hunger, promoting universal education, promoting gender equality and empowerment of women, reducing infant mortality, improving maternal health and combating HIV/AIDS, malaria and other diseases—must remain at the heart of the post-2015 development agenda. 41.  The post-2015 development agenda should also address other challenges faced by developing countries, such as universal access to modern energy services, food security and nutrition, full and productive employment and decent work for all, skilled jobs and training, agriculture and

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rural development, building of productive capacity, sustainable cities and urban settlements and infrastructure development. 42.  The Ministers emphasized that the post-2015 development agenda must also meaningfully address the reform of the institutions of global economic governance in order to strengthen the voice of developing countries. 43.  Cautioning against the severe imbalance in the global consumption of resources and noting the adoption of the 10-year framework of programmes on sustainable consumption and production patterns, the Ministers called for the post-2015 development agenda to focus on changing the unsustainable patterns of consumption and production, with developed countries taking the lead. 44.  Noting with concern the significant shortfall in the global partnership for development under the Millennium Development Goals, which contributed to the lack of achievement of many goals and targets, the Ministers called for the urgent implementation of all commitments under the global partnership for development so as to overcome the gaps identified in the MDG Gap Task Force Report. They emphasized the need for developed countries to urgently fulfil the ODA commitments they have made, individually and collectively, including the target of 0.7 per cent of GNP as ODA by 2015, including 0.15 to 0.20 per cent of GNP as ODA for least developed countries. 45. The Ministers stressed that the intergovernmental negotiation process to elaborate the post-2015 development agenda, to be launched at the beginning of the sixty-ninth session of the General Assembly, will need to focus on the substantive aspects and goals, taking fully into account the outcomes of the various follow-up processes mandated by the United Nations Conference on Sustainable Development. The Ministers reaffirmed the centrality of the intergovernmental process in the establishment of the post-2015 development agenda. 46.  The Ministers stressed the importance of providing financial resources for the post-2015 development agenda. They underscored the importance of strengthening the global partnership for development consistent with Goal 8, to complete the unfinished Millennium Development Goals and to enhance this global partnership for the post-2015 development agenda. 47.  The Ministers recalled that the world financial and economic crisis of 2007–2008 and its subsequent consequences for development have underscored the gaps and failures in global economic governance, including within the international financial institutions, and the urgent need for a global, universal and integrated response by the international community. The 2010 International Monetary Fund (IMF) reform of the quota formula should be urgently completed in order to ensure that the IMF quotas and governance better reflect the relative weight of emerging and developing countries in the global economy. However, the redistribution of voting rights aimed at reflecting reality alone will not resolve the structural problems of financial instability and unavailability of liquidity needed by developing countries to generate the necessary sustainable growth and development. Furthermore, authorities of the Bretton Woods institutions must be designated on the basis of their individual merits through an open and fair process of selection. As long as IMF does not reflect the new realities in the global economy and its Director General keeps being designated through a process that lacks transparency, its legitimacy will remain questionable. 48.  The Ministers reiterated the need for an international financial architecture, one that reflects the realities of the twenty-first century, including a more, and properly, regulated international financial sector to reduce speculative investment so that capital markets can be mobilized to achieve sustainable development and play a constructive role in the global development agenda. They also noted the fundamental problems of financial stability and unavailability of liquidity for developing countries in need to generate the necessary sustainable growth and development. 49.  The Ministers underscored the importance of developing countries being equitably represented in these international financial institutions and have a strengthened voice in

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global economic governance. In the context of structural reform of the international financial institutions, there is an urgent need for macroeconomic coordination in order to achieve a long-lasting recovery and foster inclusive growth, job creation, poverty and hunger eradication and trade and development. They stressed the importance of the international financial institutions taking concrete steps to democratize their actions, including increasing the participation of developing countries. Moreover, it is critically important that the financial sector be transparent and properly regulated so that the capital markets can be mobilized to achieve sustainable growth. 50.  The Ministers welcomed the agreement to hold the sixth High-level Dialogue on Financing for Development on 7 and 8 October 2013. 51.  The Ministers reaffirmed paragraph 90 of the Doha Declaration on Financing for Development and stressed the need to hold a follow-up international conference on financing for development to review the implementation of the Monterrey Consensus and the Doha Declaration before 2015 with a view to contributing to the post-2015 development agenda process. 52.  The Ministers firmly rejected the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries, and reiterated the urgent need to eliminate them immediately. They emphasized that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. They therefore called upon the international community to neither recognize those measures nor to apply them. 53.  The Ministers emphasized the urgent need to increase efforts at the national, regional and international levels to address food security and agriculture development as an integral part of the international development agenda. They underlined the need for sustained funding and increased targeted investment to enhance world food production and called for new and additional financial resources from all sources to achieve sustainable agriculture development and food security. 54.  The Ministers welcomed the global launch of the International Year of Quinoa, 2013, which constituted the first step in an ongoing process of focusing world attention on the important role of quinoa, and urged the sharing of good practices on the implementation of activities for the Year, as indicated in the master plan of activities for the Year, entitled ‘A future sown thousands of years ago’, in support of the achievement of the internationally agreed development goals, including the Millennium Development Goals. They also welcomed the holding of the high-level panel on food security and nutrition on 20 February 2013. The biodiversity and nutritional value of quinoa make it central in providing food security and nutrition and eradicating poverty, as well as in promoting the traditional knowledge of the Andean indigenous peoples, contributing to the achievement of food security, nutrition and poverty eradication and raising awareness of their importance for social, economic and environmental development. 55.  The Ministers emphasized that the multiple and complex causes of the food crises that occur in different regions of the world, which affect developing countries, especially net food importers, and their consequences for food security and nutrition require a comprehensive and coordinated response in the short, medium, and long term by national Governments and the international community. They reiterated that the root causes of food insecurity are poverty and inequity and remained concerned that excessive volatile food prices pose a serious challenge to the fight against poverty and hunger and to the efforts of developing countries to attain food security and nutrition. 56.  The Ministers recalled that food security and nutrition are essential dimensions of sustainable development and expressed concern that developing countries are vulnerable to the adverse impacts of climate change, further threatening food security. The Ministers stressed that the

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attainment of food security and the move towards sustainable agriculture, including increased food production and agricultural investment, enhanced productive capacities, improved agricultural management and development and support for family farming and smallholder farmers in developing countries, are crucial issues for developing countries. Agriculture, which is broadly understood to include crop and livestock production, fisheries, and forestry, is the most important sector in many developing countries and is central to the survival of millions of people. The Ministers stressed the need to increase investment in agriculture and rural development, including through international cooperation, with a view to increasing the agricultural production of developing countries, many of which have become net food importers. 57.  The Ministers underscored the fact that agricultural subsidies and other trade distortions by developed countries had severely harmed the agricultural sector in developing countries, limiting the ability of this key sector to contribute meaningfully to poverty eradication, rural development and sustainable, sustained, inclusive and equitable economic growth. The elimination of such subsidies is a fundamental part of the global effort to promote agriculture and rural development and to eradicate poverty and hunger. 58.  The Ministers reaffirmed that market access to developing country agricultural products was equally important. In this regard, they stressed the necessity of a timely conclusion of the Doha Round of multilateral trade negotiations, which must fully respect its development mandate and take into account the needs and priorities of developing countries, including with regard to trade in agricultural products. A successful outcome of the Doha Round will help to ensure growth in global trade and create new market access opportunities for developing countries. 59.  The Ministers welcomed the adoption of General Assembly resolution 66/296 of 17 September 2012 on the organization of the high-level plenary meeting of the sixty-ninth session of the Assembly, to be known as the World Conference on Indigenous Peoples, to be held on 22 and 23 September 2014 in New York, in order to share perspectives and best practices on the realization of the rights of indigenous peoples, including pursuit of the objectives of the United Nations Declaration on the Rights of Indigenous Peoples. In the resolution, the Assembly decided that the World Conference should result in a concise, action-oriented outcome document and encouraged the participation of indigenous peoples in the Conference. The Ministers also took note of the outcome document of the Global Indigenous Preparatory Conference for the World Conference on Indigenous Peoples, held from 10 to 12 June 2013 in Alta, Norway. 60.  The Ministers stressed the central role of the United Nations in global economic governance, which essentially aims at enhancing the global partnership for development, with a view to creating a supportive and enabling global environment for the attainment of sustainable development as well as to ensure financial and economic stability. In this context, the General Assembly and a strengthened Economic and Social Council could both act to mitigate the impact of the international financial and economic crisis and to ensure developing countries’ right to policy space for sustainable development. 61.  The Ministers reaffirmed their view that moving towards a more legitimate and accountable global governance demands the inclusive representation, universal participation and the democratic process of the General Assembly. Efforts to reform the international financial architecture should therefore be seriously strengthened, internationally coordinated and lead to the full participation of developing countries in international financial and economic decision-making and norm-setting. The Ministers reiterated their support for a comprehensive reform of the Bretton Woods institutions, including enhancement of the voting powers of developing countries in a time-bound manner, which would enable greater equity between developed and developing countries. 62.  The Ministers underscored the need for the United Nations system to seriously address the introduction of new institutional arrangements to bring coherence and coordination among distinct sets of rules applying to various areas of economic activity. The United Nations system

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should address the linkage between economic globalization and sustainable development, in particular by identifying and implementing mutually reinforcing policies and practices that promote sustained, inclusive and equitable economic growth. 63.  The Ministers reaffirmed the importance of ensuring synergy between the work of United Nations agencies and the Bretton Woods institutions, WTO and other international organizations that deal with, among other development issues, trade, finance, labour and capital, intellectual property rights, health and technology. 64.  The Ministers stressed that the United Nations was the appropriate intergovernmental forum for the post-2015 development agenda. 65.  The Ministers reaffirmed the crucial importance of the quadrennial comprehensive policy review in providing guidance on the operational activities for development of the United Nations. In that context, the General Assembly had reaffirmed the principles and fundamental characteristics of operational activities and provided detailed policy guidance and an ambitious workload for the United Nations development system for the four-year period. The Ministers acknowledged and reaffirmed the call upon the United Nations development system in the context of the quadrennial comprehensive policy review to accord poverty eradication the highest priority and for all of the agencies of the system to make it the overarching and underlying objective of all their programmes and projects. 66.  The Ministers recalled that despite progress in discussion and dialogue and cooperation at the international level, migration remains inadequately reflected in development frameworks, development agendas and sectoral policies at both the national and global levels. The slow pace taken to address migration policies with the reality of human mobility at those levels will continue to expose migrants to negative public perceptions and inadequate protection of their rights. 67.  The Ministers held the view that addressing global migration as a global phenomenon was supportive of the achievement of the internationally agreed development goals, including the Millennium Development Goals. International migration and development mutually influence one another. The Ministers stressed that migration, if properly managed, can serve as a powerful catalyst for development, thereby benefiting communities of origin and destination, as recognized in the 1994 International Conference on Population and Development. In this context, the Ministers welcomed the convening of the high-level dialogue on international migration and development, held on 3 and 4 October 2013. 68.  The Ministers reaffirmed that technology plays a key role in addressing development challenges across a wide scope of cross-cutting sustainability dimensions, as in food and agriculture, water and sanitation, energy, industrial development and chemicals and waste management. They stressed that developing countries require increased access to technology on favourable terms, including concessional and preferential terms, in order to shift to a more sustainable development path. To help developing countries overcome certain obstacles to economic expansion and growth so as to achieve specific development goals, it is imperative that the international community take urgent action to bridge the technological divide so as to promote industrialization and inclusive growth across the developing world. 69.  The Ministers stressed that technology is one of the key means of implementation, along with finance, capacity-building and trade, and called for an early establishment of a technology facilitation mechanism that promotes the development, transfer and dissemination of clean and environmentally sound technologies. 70.  The Ministers recognized the need for South-South cooperation that allows emerging and long-standing energy producers of the global South to exchange knowledge, experiences and best practices among themselves on a sustained basis in an effort to address their energy challenges to achieve sustainable development.

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71.  The Ministers acknowledged the multifaceted nature of the linkages between culture and development. While the full extent of the linkages has yet to be explored, there is a growing consensus that strategies to achieve development goals have to be embedded in the cultural traditions of each society. The Ministers underscored that culture is both an enabler and a driver of development and reiterated the importance of ensuring that culture is recognized as such in the post-2015 development agenda. The Ministers called for continuous dialogue and negotiations to ensure the effective integration and mainstreaming of culture into social, environmental and economic development policies at all levels. 72.  The Ministers recalled the special needs of Africa, the only continent currently not on track to achieve the internationally agreed development goals, including the Millennium Development Goals. They recognized that, while economic growth is returning, there is a need to sustain the recovery, which is fragile and uneven, to face the ongoing adverse impacts of multiple crises on development and the serious challenges those impacts pose to the fight against poverty and hunger, which could further undermine the achievement of the internationally agreed development goals, including the Millennium Development Goals, in Africa. 73.  The Ministers expressed their profound concern that the commitment to doubling aid to Africa by 2010 as articulated at the Gleneagles summit meeting was not entirely reached, and in this regard they stressed the need to make rapid progress in order to fulfil the Gleneagles and other donors’ commitments to increase aid through a variety of means, including the provision of new additional resources, technology transfer and capacity-building to African countries, and to support their sustainable development. 74.  The Ministers called for continued support for African development initiatives, including the continental strategic vision framework for socioeconomic development, the New Partnership for Africa’s Development and the Programme for Infrastructure Development in Africa. 75.  On the other hand, the Ministers welcomed the support that some developing countries have extended to Africa through the South-South and triangular cooperation programmes. 76.  The Ministers expressed their concern for the situation in the least developed countries, which continues to deteriorate as a consequence of the ongoing multiple and mutually exacerbating global crises. The ongoing global financial and economic crisis is clearly undermining development in the least developed countries. They recalled that the modest development gains that the least developed countries made over the years are being reversed, pushing a larger number of their people to extreme poverty. Many least developed countries continue to be lagging behind in meeting most of the internationally agreed development goals, including the Millennium Development Goals. 77.  The Ministers emphasized the full and effective implementation of the commitments made in the Programme of Action for the Least Developed Countries for the Decade 2011–2020. The Ministers further underlined the critical need for realizing expeditiously the renewed and strengthened global partnership for the least developed countries in order to overcome their structural challenges, eradicate poverty, achieve internationally agreed development goals and enable half of the least developed countries to meet the criteria for graduation from the category by 2020. 78.  The Ministers recalled that the unique and particular vulnerabilities of small island developing States have been acknowledged by the international community since the United Nations Conference on Environment and Development, held in Rio de Janeiro, Brazil, in 1992, the Global Conference on the Sustainable Development of Small Island Developing States, held in Barbados in 1994, the World Summit on Sustainable Development, held in Johannesburg, South Africa, in 2002 and the International Meeting to Review the Implementation of the Programme of Action

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for the Sustainable Development of Small Island Developing States, held in Mauritius in 2005, and noted with concern that insufficient steps had been taken at the international level to address the vulnerabilities and effectively support sustainable development efforts, including in achieving the internationally agreed development goals. 79.  The Ministers recalled that climate change and sea-level rise pose the greatest threat to the survival and viability of small island developing States and their efforts to achieve sustainable development goals, and in this regard called upon the international community to commit to urgently increasing international cooperation to support those efforts, particularly through increased financial resources, capacity-building, transfer of technology and know-how and increased participation of small island developing States in international economic decision-making. 80. The Ministers welcomed the decision to convene the Third International Conference on Small Island Developing States in 2014 in Apia and the convening of regional and interregional meetings of small island developing States to prepare their priorities for the Conference. In this context, the Ministers took note of the outcome document of the interregional preparatory meeting, which took place from 26 to 28 July 2013 in Bridgetown, and called for enhanced efforts to assist small island developing States in implementing the Barbados Programme of Action and the Mauritius Strategy for the Further Implementation of the Programme of Action for the Sustainable Development of Small Island Developing States. 81.  The Ministers reiterated their recognition of the special needs of and challenges faced by the landlocked developing countries caused by their lack of territorial access to the sea, aggravated by the remoteness from world markets, their concern that the economic growth and social well-being of landlocked developing countries remain very vulnerable to external shocks as well as to the multiple challenges the international community is facing, including the financial and economic crisis and climate change, and stressed the need for the international community to enhance development assistance to landlocked developing countries to help them overcome their vulnerabilities, build resilience and set themselves on a path of sustainable social and economic development. They therefore reaffirmed the need to urgently address the special development needs of and challenges faced by the landlocked and transit developing countries through their genuine partnership, with sufficient support and cooperation from the international community for the effective implementation of priorities of the Almaty Programme of Action and its successor programme. 82.  The Ministers welcomed the decision of the General Assembly in its resolutions 66/214 and 67/222 to hold a comprehensive 10-year review conference on the implementation of the Almaty Programme of Action in 2014, which should be preceded by regional and global as well as thematic preparations in a most effective, well-structured and broad participatory manner. In this regard, the Ministers called upon the international community, including the United Nations system, development partners, international organizations, private sector institutions and academia to critically consider the special needs of and challenges faced by landlocked developing countries and to help develop priorities for a new, more comprehensive, common action-oriented framework for landlocked developing countries for the next decade. 83.  The Ministers recognized that middle-income countries still face significant development challenges and underlined that despite the recent progress achieved and the efforts made by middle-income countries, 75 per cent of the world’s poor population lives in those countries. The achievement of the internationally agreed development goals, including the Millennium Development Goals, the achievement of full employment and the creation of jobs for youth, the diversification of economies and the development of technologies continue to be huge challenges for middle-income countries. 84. Furthermore the Ministers underlined the increasing solidarity and role played by middle-income countries in the area of South-South cooperation in support of the development efforts of other developing countries.

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85. In this context, the Ministers took note of the outcomes of the high-level conference of middle-income countries on the theme ‘Challenges for sustainable development and international cooperation in middle-income countries: the role of networks for prosperity’, organized by the Government of Costa Rica and the United Nations Industrial Development Organization from 12 to 14 June 2013. 86.  The Ministers affirmed that the United Nations Framework Convention on Climate Change is the primary international intergovernmental forum for negotiating the global response to climate change. 87.  The Ministers recalled once again that climate change is one of the most serious global challenges of our times. They underscored the fact that developing countries continue to suffer the most from the adverse impacts of climate change, the increasing frequency and intensity of extreme weather events and the impact of response measures, even though they are the least responsible for climate change. Accordingly, they called for developed countries to take the lead in responding to climate change. Climate change threatens not only the development prospects of developing countries and their achievement of sustainable development, but also the very existence and survival of countries and societies. 88.  The Ministers stressed that the developed countries, given their historical responsibility, need to take the lead in addressing this challenge in accordance with the principles and provisions of the United Nations Framework Convention on Climate Change, in particular the principles of equity and common but differentiated responsibilities and respective capabilities, and to provide financial and technological support to developing countries. 89.  The Ministers noted the progress made towards addressing climate change at the eighteenth meeting of the Conference of the Parties to the United Nations Framework Convention on Climate Change, held in 2012 in Doha, through concrete decisions on remaining work under the Bali Action Plan, a plan of work under the Durban Platform and a second commitment period of the Kyoto Protocol, with a clear timeline. With respect to the second commitment period of the Kyoto Protocol, however, ambition is lacking; they hoped that its level would be enhanced in 2014 as agreed at the eighteenth meeting of the Conference of the Parties. 90.  The Ministers reiterated that the extent to which developing countries will effectively implement their commitments under the Convention will depend on the effective implementation by developed countries of their commitments under the Convention related to financial resources and transfer of technology and that economic and social development and poverty eradication are the first and overriding priorities of the developing countries. 91.  The Ministers noted the progress in the work of the Ad Hoc Working Group on the Durban Platform for Enhanced Action and emphasized that the outcome of the Working Group must enable further enhancement of the full, effective and sustained implementation of the Convention. Ministers reiterated that the work of the Working Group and its outcome must be in accordance with the objective, principles and provisions stipulated in the Convention, including the principles of equity and common but differentiated responsibilities and respective capabilities. The process under the Working Group must not lead to a reinterpretation or a rewriting of the Convention. 92.  The Ministers stressed the need to urgently close the ambition gap and expressed their concern with the lack of fulfilment of commitments by developed countries. In addressing this gap, the focus must not be limited to mitigation but must also include gaps relating to finance, technology and support for capacity-building. They emphasized that developed countries must make robust and ambitious mitigation commitments, with ambitious quantitative emissions limitation reduction targets, as required by science and mandated by the Convention. In this context, the Ministers looked forward to a successful and comprehensive outcome of the nineteenth session of the Conference of the Parties/ninth session of the Conference of the Parties serving as the meeting of the parties to the Kyoto Protocol.

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93.  The Ministers reaffirmed that desertification, land degradation and drought represent a serious concern for developing countries. International action is therefore urgently required to address the challenges. They emphasized the great importance of the United Nations Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa, stressing that desertification, land degradation and drought corrode the three dimensions of sustainable development. The Ministers reiterated that addressing desertification, land degradation and drought enables countries to deal with several global policy challenges, such as food security, adaptation to climate change and forced migration. In this context, the Ministers noted the holding of the eleventh session of the Conference of the Parties to the United Nations Convention to Combat Desertification from 16 to 27 September 2013 in Windhoek. 94.  The Ministers stressed the need to cooperate at the global and regional levels with a view to preventing and managing dust storms and sandstorms, including in the sharing of related information, forecasting and early warning. The Ministers stressed that combating such storms demands financial support and the transfer of technology from developed countries to developing countries. 95.  The Ministers reaffirmed that desertification, land degradation and drought represent a serious concern for developing countries. Addressing those phenomena will enable countries to deal with several global policy challenges, such as poverty eradication, food security and adaptation to climate change. While parties to the United Nations Convention to Combat Desertification should fully support the implementation of that Convention, the promotion of the exchange of knowledge on best practices and lessons learned from global and regional cooperation in combating desertification, land degradation and drought should be encouraged. They stressed that sustainable development goals and targets on desertification, land degradation and drought should address the drivers of those phenomena, as well as preventive and corrective measures. 96. The Ministers expressed their deep concern at the devastating consequences of cyclical drought and famine in Africa. 97.  The Ministers called upon the Global Environment Facility (GEF) to ensure equitable allocation of resources to the secretariat of the Convention to Combat Desertification and urge donors to continue its effective replenishment to ensure that it is adequately funded in order to allow sufficient and adequate allocation of resources to its land degradation focal area. 98.  The Ministers welcomed the important outcomes of the eleventh meeting of the Conference of the Parties to the Convention on Biological Diversity, held in Hyderabad, India, in October 2012, especially the commitment to doubling biodiversity-related international financial flows to developing countries by 2015 and maintaining at least that level until 2020 to contribute to achievement of the Convention’s three objectives. They also called upon parties to review progress in this context at the twelfth meeting of the Conference of the Parties towards adopting a final target for resource mobilization. 99.  The Ministers called upon parties to the Convention on Biological Diversity to expedite their national processes towards ratifying or acceding to the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from Their Utilization so as to ensure its early entry into force. 100.  The Ministers encouraged all Governments and all stakeholders to be ‘biodiversity champions’, in response to the Hyderabad Call for Action on Biodiversity, by pledging support for biodiversity at the national, regional or global levels for one or more of the Aichi targets. 101.  The Ministers stressed the need to include the financing mechanisms of the Convention on Biological Diversity and the Convention to Combat Desertification as part of sustainable development financing in the framework of the expert committee on sustainable development financing strategy and requested that the issues be properly elaborated by the committee.

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102. The Ministers noted the outcome of the tenth session of the United Nations Forum on Forests, held in Istanbul, Turkey, from 8 to 19 April 2013, and underscored the importance of the four global objectives on forests for the international community as a whole, in particular for developing countries. The fourth global objective is especially relevant for the developing countries, as it identifies the need to reverse the reduction of ODA and to mobilize new and additional financial resources from all sources, including public and private, for the implementation of sustainable forest management. In fulfilling the fourth global objective, it is essential to respect the principle of common but differentiated responsibilities between developed and developing countries. In this regard, the Ministers urged developed countries to exercise strong political will and flexibility to contribute to the achievement of sustainable forest management. 103.  The Ministers reiterated their call for the establishment of a new global forest fund in line with the principles of sustainable development. They considered this necessary in order to concentrate on the financing needs of developing countries to sustainably manage their forests, as well as to comply with their commitments under the non-legally binding instrument on all types of forests. The establishment of a global forest fund in the framework of the United Nations to address financing gaps in sustainable forest management takes on greater urgency in the follow-up to the United Nations Conference on Sustainable Development. The Ministers recognized and reiterated the significance of the non-legally binding instrument on all types of forests, adopted by the General Assembly in 2007 in resolution 62/98, which is the guide for all regions and countries when addressing conservation. 104.  The Ministers recalled that the Group of 77 and China had been a major force in the negotiation of the law of the sea as reflected in the United Nations Convention on the Law of the Sea. The positions of the Group of 77 and China remarkably influenced the consecration of some crucial law of the sea concepts that are inextricably linked to sustainable development, including the exclusive economic zone, where the coastal States enjoy sovereign rights over the natural resources and the seabed and ocean floor beyond the limits of national jurisdiction (‘the Area’). The exploitation of the resources therein has to benefit mankind as a whole, irrespective of the geographical location of States, whether coastal or landlocked, and take into particular consideration the interests and needs of developing States. 105.  In this regard, the Ministers recalled that General Assembly resolution 2749 (XXV) and then the United Nations Convention on the Law of the Sea crystallized in a conventional norm the principle of the ‘common heritage of mankind’, to which the Group of 77 and China had adhered from the inception of the Group in 1967. 106.  The Ministers recognized that a major challenge to developing countries has arisen with regard to the law of the sea, namely, the conservation and sustainable use of marine biodiversity beyond areas of national jurisdiction. The exploitation of and benefit from resources of a maritime area that is part of the common heritage of mankind by a few is inconsistent with general principles of international law, including those on equity, as the Area and its resources are to benefit mankind as a whole. In this context, the Ministers stressed that the status quo is not an option. 107. The Ministers emphasized that the basic principle enshrined in the United Nations Convention on the Law of the Sea and in General Assembly resolution 2749 (XXV) applicable to those resources is that of the common heritage of mankind, and that a specific legal regime for the biodiversity of areas beyond national jurisdiction needs to be developed in the form of an implementing agreement under the Convention based on that principle. Such an implementing agreement has to be negotiated as a package and must encompass the conservation and sustainable use of marine biodiversity of areas beyond national jurisdiction, including genetic resources, the sharing of benefits taking into account intellectual property rights, scientific research, capacity-building and the transfer of marine technology.

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108.  The Ministers expressed their support to the United Nations Programme of Assistance in the Teaching, Study, Dissemination and Wider Appreciation of International Law established by General Assembly resolution 2099 (XX) of 20 December 1965 for the purpose of contributing to greater knowledge of international law as a means of strengthening international peace and security and promoting friendly relations and cooperation among States. They recalled that the Programme and its components are one of the cornerstones of the efforts of the United Nations to promote international law and that jurists, academics, diplomats and other public officials from developing countries greatly benefit from the regional courses of international law, fellowships, publications and the Audiovisual Library of International Law. In the light of their concern about the lack of voluntary resources to support the activities of this important programme, the Ministers affirmed that all the components of the Programme of Assistance, including the regional courses in international law for Africa, Asia and Latin America and the Caribbean, the International Law Fellowship Programme, the Audiovisual Library of International Law, the Hamilton Shirley Amerasinghe Memorial Fellowship on the Law of the Sea, the seminars and regional training on international treaty laws and practice and legal publications and training materials, must be financed through the regular budget of the United Nations, starting from the biennium 2014–2015. 109.  The Ministers expressed their concern over the increased frequency and scale of natural disasters in recent years, which have resulted in massive loss of life and long-term negative social, economic and environmental consequences for countries, particularly developing countries. They reiterated how disaster impacts are undermining vulnerable livelihoods, countries’ economic growth and progress towards achieving the Millennium Development Goals. Moreover, those challenges have been compounded by the impact of the global economic and financial crisis, the world food crisis and continuing food insecurity, the energy crisis and the challenges posed by climate change. 110.  The Ministers reiterated their commitment and support to the guiding principles articulated in the annex to General Assembly resolution 46/182 of 19 December 1991, as the founding resolution of the framework for the provision of United Nations humanitarian assistance. They stressed that Member States, in cooperation with United Nations humanitarian organizations, should engage in the provision of humanitarian assistance in accordance with that resolution to promote greater respect for and full adherence to humanitarian principles, humanity, neutrality, impartiality and independence, while engaging in negotiations for and during humanitarian operations. The Ministers stressed the importance of adhering to the provisions of international human rights and humanitarian law when providing humanitarian assistance. 111.  The Ministers stressed the urgent need for the international community to ensure a predictable, flexible and adequate humanitarian funding mechanism for effective humanitarian assistance. While increased funding for humanitarian assistance, through partnerships and strengthened and flexible financial mechanisms, is important, the question of advancing stakeholder interest and accountability to people affected and donors within the concept of ‘value for money’ needs to be mirrored against the principles of good humanitarian donorship. In this regard, the Ministers stated that the specific role of financial institutions and the Central Emergency Response Fund and other funds during the preparatory and resilience and recovery phases should be explored further. The Ministers further stressed the urgent need to invest in early warning systems to mitigate the magnitude of disasters and encouraged continued flows of financial assistance to developing countries, with a view to reducing the existing risk and prevent the emergence of new risks. 112.  The Ministers reaffirmed that the Fifth Committee of the General Assembly is the sole Main Committee of the Organization entrusted with responsibilities for administrative, financial and budgetary matters. In this regard, the Ministers requested that any budgetary, financial, and

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administrative matters, including those related to the establishment of a peacekeeping operation or a special political mission, be discussed solely in the framework of the Fifth Committee, in conformity with the Charter of the United Nations. 113.  The Ministers reaffirmed that any Secretariat and management reform efforts, including on its budget process, must not be intended to change the intergovernmental, multilateral and international nature of the Organization, but must strengthen the ability of Member States to perform their oversight and monitoring role and that prior consideration by and approval of Member States is essential in all cases where the measures to be implemented fall under the prerogatives of the Assembly. In this regard, they recall resolution 66/257. They also reaffirmed the right of the entire membership of the United Nations to pronounce itself on the administration of the Organization, including on budgetary matters, and the need for continuous interaction and dialogue between the Secretariat and the General Assembly aimed at fostering a positive environment for the negotiations, the decision-making process and the implementation of the reform measures. 114.  The Ministers strongly supported the oversight role performed by the General Assembly, as well as its relevant intergovernmental and expert bodies, in planning, programming, budgeting, monitoring and evaluation. In this context, they renewed their commitment to strengthen the role of the Committee for Programme and Coordination. The Ministers also urged the rest of the membership of the United Nations to actively participate in the sessions of the Committee. 115.  The Ministers reaffirmed the importance of the strategic framework as the principal policy directive of the Organization and that its content should fully reflect the mandates of Member States, including the United Nations financial rules and regulations. 116.  The Ministers reaffirmed the commitment of the Group of 77 and China to the United Nations Secretariat and management reform, with a view to making the Organization more effective, representative, transparent, accountable and responsive to the needs of the Member States. The Ministers highlighted that, for those reforms to be successful, they must be predicated on broad and inclusive consultations with the General Assembly and must reflect and strengthen the Member State-driven nature of the Organization. 117.  The Ministers stressed the need to submit for consideration and prior approval of the General Assembly, through its Fifth Committee, any proposal or measure related to the implementation of the recommendations of the report of the change management team that fall within the purview of Member States in line with the provisions of General Assembly resolutions 64/259 and 66/257. 118.  The Ministers underlined that the current methodology for the preparation of the scale of assessments reflects changes in the relative economic situations of the Member States. The Ministers further reaffirmed the principle of ‘capacity to pay’ as the fundamental criterion in the apportionment of the expenses of the United Nations and rejected any change to the elements of the current methodology for the preparation of the scale of assessments aimed at increasing the contributions of developing countries. In this regard, they emphasized that the core elements of the current methodology of the scale of assessments, such as base period, gross national income, conversion rates, low per capita income adjustment, gradient, floor, ceiling for least developed countries and debt stock adjustment must be kept intact and are not negotiable. 119.  The Ministers stressed that the current maximum assessment rate, or ceiling, had been fixed as a political compromise and is contrary to the principle of the capacity to pay and is a fundamental source of distortion in the scale of assessments. In this context, they urged the General Assembly to undertake a review of this arrangement, in accordance with paragraph 2 of Assembly resolution 55/5 C. 120.  The Ministers affirmed that the current principles and guidelines for the apportionment of the expenses of peacekeeping operations approved by the General Assembly in its relevant

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resolutions should constitute the basis for any discussion of the peacekeeping scale. In this regard, the Ministers stressed that the peacekeeping scale must clearly reflect the special responsibilities of the permanent members of the Security Council for the maintenance of peace and security. The Ministers also recalled that the economically less developed countries have limited capacity to contribute towards the budgets of peacekeeping operations. In this context, the Ministers emphasized that any discussion of the system of discounts applied to the peacekeeping scale should take into account the conditions of developing countries, whose current positions must not be negatively affected. The Ministers stressed in this regard that no member of the Group of 77 and China that is not a permanent member of the Security Council should be categorized above level C. 121.  The Ministers reaffirmed that the financial stability of the United Nations should not be jeopardized by arbitrary measures. The Ministers stressed that any efforts to use financial contributions to push for the adoption of certain proposals are counterproductive and violate the obligations of the Member States to provide resources for the Organization, as enshrined in its Charter. 122.  The Ministers noted the agreement reached in General Assembly resolution 67/261 on the recommendations and conclusions of the Senior Advisory Group on troop-cost reimbursements and related issues subsequent to two successive interim awards, and in this regard underlined that it should lead to the revision of the troop-cost reimbursement rates at the earliest opportunity. 123.  The Ministers rejected all unilateral coercive measures contrary to international law, which obstruct and sometimes impede payments of assessed contributions from members of the Group of 77 and China to the budgets of the Organization. 124.  The Ministers strongly reaffirmed the legal obligation of all Member States to bear the financial expenses of the United Nations, in accordance with the Charter, and urged all Member States to pay their assessed contributions on time, in full and without conditions. They also stressed that the special and genuine difficulties faced by some developing countries that prevent them from meeting temporarily their financial obligations should be fully taken into account and that the decisions of the General Assembly on the agenda item ‘Scale of assessments’ must be responsive to such difficulties. 125.  The Ministers stressed that the level of resources to be approved by the General Assembly must be commensurate with all mandated programmes and activities in order to ensure their full and effective implementation. They also reaffirmed the priorities of the Organization as approved by the Assembly and the need for the Secretary-General to reflect those priorities when presenting proposed programme budgets. 126. The Ministers expressed concern about the budget cuts proposed for the biennium 2014–2015 that could have a negative impact on the implementation of mandates approved by the intergovernmental bodies, particularly in the development pillar, as well as the interpretation that the proposed cuts were made at the request of Member States through the budget outline resolution (67/248). The Ministers also expressed serious concern that changes were being introduced in the budget methodology and format without prior consideration and approval by the General Assembly. 127.  The Ministers reiterated that there was a need to strike a balance in reflecting the agreed priorities of the Organization in the allocation of resources under the United Nations regular budget, which is persistently to the detriment of the development activities. In this context, the Ministers expressed concern that the share of the regular budget allocated to special political missions has continuously increased, while the share of resources allocated to development activities has stagnated. They further reaffirmed that the Secretariat must strictly implement General Assembly mandates without exceptions and/or delays. 128.  In this context, the Ministers stressed that the strengthening of the United Nations and its role in international cooperation for development is essential in responding to current and future

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challenges and opportunities emanating from the process of globalization. They recognized that the United Nations needs to improve its capabilities and capacities to fully implement its mandates and to ensure the effective delivery of its programmes in the social and economic development field. In this regard, they urged the Secretary-General to further strengthen the development pillar of the whole Organization, including its Development Account. 129.  The Ministers expressed their concern over the growing imbalance between assessed and voluntary contributions in the proposed programme budget for 2014–2015. The Ministers stressed  that extrabudgetary resources should not replace regular and predictable funds from assessed contributions for the core activities of the Organization. It is equally important that resources from voluntary and extrabudgetary contributions be used to support and not reorient priorities agreed by Member States and be used strictly in accordance with the financial rules and regulations of the Organization. The Ministers called for greater transparency, accountability and oversight by Member States over voluntary and extrabudgetary resources. 130.  The Ministers stressed the importance of ensuring that the Secretariat meets the highest standards of accountability, transparency, integrity and ethical conduct. The Ministers therefore urged the Secretary-General, as a matter of priority, to fully implement General Assembly resolutions 64/259, 66/257 and 67/253. 131.  The Ministers expressed concern about the inadequate share of the developing countries in the United Nations system of procurement. They emphasized that United Nations procurement should be carried out on as wide a geographical basis as possible, with preferential treatment for the developing countries. They further underlined that the United Nations supplier roster should be representative of the membership of the Organization and underscored the need to implement concrete measures to ensure greater market access by businesses from developing countries in United Nations procurement. 132.  The Ministers reiterated the need to increase the representation of developing countries and the representation of women from developing countries, in particular at the senior levels, and to improve geographic distribution in the Secretariat and transparency in the recruitment process. 133.  The Ministers recalled the decision of the Heads of State and Government at the Second South Summit, held in Doha from 12 to 16 June 2005, to work to ensure that programmes and policies designed in the context of globalization fully respect the principles and purposes of the Charter and international law, particularly as they relate to equality among States, respect for the independence of States, national sovereignty, territorial integrity and non-interference in the internal affairs of States, and to stress that those principles and purposes inspire their full commitment to multilateralism and the search for a more just and equitable international economic system that offers opportunities to raise the standard of living of their peoples. 134.  The Ministers also recalled the decision of the Heads of State and Government at the Second South Summit to work towards the realization of the right to self-determination of peoples living under colonial or other forms of alien domination or foreign occupation, which adversely affects their social and economic development, and the decision to call upon the international community to take all necessary measures to bring an end to the continuation of foreign occupation, in accordance with the purposes and principles of the Charter and international law. 135.  The Ministers reiterated their call for the immediate and full withdrawal of Israel, the occupying Power, from the Occupied Palestinian Territory, including East Jerusalem, and the occupied Syrian Golan to the line of 4 June 1967 and from the remaining Lebanese occupied land. They reaffirmed their support for a Middle East peace process aimed at achieving a comprehensive, just and lasting peace in the region, in accordance with the relevant United Nations resolutions, including Security Council resolutions 242 (1967), 338 (1973), 425 (1978) and 1850 (2008)

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and the principle of land for peace. In this context, they also reaffirmed their support for the Arab Peace Initiative endorsed by the Arab Summit Conference since March 2002. 136.  The Ministers stressed the need for the early realization by the Palestinian people of their right to self-determination and the independence of their State of Palestine to allow for their stability, prosperity and development towards the achievement of the Millennium Development Goals, to which all peoples are entitled. The Ministers expressed support for the efforts of the Palestinian people to achieve independence and welcomed in this regard the submission of the State of Palestine’s application on 23 September 2011 for full membership in the United Nations, and noted the adoption by the General Assembly of resolution 67/19, which accorded to Palestine non-member observer State status in the United Nations. The Ministers continued to support the admission process of the State of Palestine to become a full member of the United Nations as soon as possible. 137. The Ministers condemned the ongoing Israeli military occupation of the Palestinian Territory, including East Jerusalem, and the illegal actions by the occupying Power that continue to cause civilian casualties, socioeconomic and humanitarian hardship and destruction of Palestinian properties, infrastructure and agricultural lands, and to undermine the contiguity, unity and integrity of the Territory. 138.  The Ministers expressed deep concern about the further decline of the social and economic conditions of the Palestinian people, particularly in the besieged Gaza Strip, as a result of illegal Israeli practices, including the construction of settlements and the wall and the imposition of a blockade and hundreds of checkpoints. They called upon Israel, the occupying Power, to cease immediately all illegal measures impairing the Palestinian economy and development, including, in particular, the inhumane and illegal blockade imposed on the Gaza Strip and restrictions on the movement of persons and goods, including commercial trade throughout, into and out of the Occupied Palestinian Territory and to make reparation for all damages caused to Palestinian properties, institutions and infrastructure. They reiterated their call upon the international community to continue providing much-needed developmental and humanitarian assistance to the Palestinian people during this critical period, particularly for reconstruction and economic recovery in the Gaza Strip. 139.  The Ministers reaffirmed the inalienable rights of the Palestinian people and of the population of the occupied Syrian Golan over their natural resources, including land, water and energy resources, and demanded that Israel, the occupying Power, cease the exploitation, damage, cause of loss or depletion and endangerment of the natural resources in the Occupied Palestinian Territory, including East Jerusalem, and in the occupied Syrian Golan. 140.  The Ministers reaffirmed the need for the Government of the Argentine Republic and the United Kingdom of Great Britain and Northern Ireland to resume negotiations in accordance with the principles and the objectives of the Charter and the relevant resolutions of the General Assembly in order to find, as soon as possible, a peaceful solution to the sovereignty dispute relating to ‘the question of the Malvinas Islands’, which seriously damages the economic capacities of the Argentine Republic and the need for both parties to refrain from taking decisions that would imply introducing unilateral modifications in the situation while the islands are going through the process recommended by the Assembly. 141.  The Ministers reaffirmed the need to find a peaceful solution to the sovereignty issues facing developing countries, including, among others, the dispute over the Chagos Archipelago, including Diego Garcia, which was unlawfully excised from the territory of Mauritius in violation of international law and General Assembly resolutions 1514 (XV) of 14 December 1960 and 2066 (XX) of 16 December 1965. Failure to resolve these decolonization and sovereignty issues would seriously damage and undermine the development and economic capacities and prospects of developing countries.

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142.  The Ministers reaffirmed the importance of strengthening South-South cooperation, especially in the current international economic environment, and reiterated their support for South-South cooperation as a strategy to sustain the development efforts of developing countries and also as a means of enhancing their participation in the global economy. The Ministers reiterated the Group’s position that South-South cooperation is a complement to, rather than substitute for, North-South cooperation and reaffirmed that South-South cooperation is a collective endeavour of developing countries based on the principle of solidarity and premises, conditions and objectives that are specific to the historic and political context of developing countries and to their needs and expectations, and as such South-South cooperation deserves its own separate and independent promotion, as reaffirmed in the Nairobi outcome document of the High-level United Nations Conference on South-South Cooperation. In this context, the Ministers stressed that South-South cooperation and its agenda must be driven by the countries of the South. As such, South-South cooperation, which is critical for developing countries, requires long-term vision and a global institutional arrangement, as envisioned by the Second South Summit. 143.  The Ministers welcomed the convening of a high-level panel of eminent personalities of the South in Natadola, Fiji, from 7 to 9 May 2013, in accordance with the relevant mandate of the Second South Summit. They welcomed the panel’s conclusions and recommendations on the future landscape of South-South cooperation as an important contribution to the further development of the Development Platform for the South. Ministers reiterated the framework and principles of South-South cooperation first endorsed at their thirty-second annual meeting, held in New York on 26 September 2008, which the panel used as a basis for their discussions. 144.  The Ministers stressed that the High-level Committee on South-South Cooperation of the General Assembly is the central multilateral policymaking body in the United Nations system for reviewing and assessing global and system-wide progress on and support for South-South development cooperation, including triangular cooperation, and for providing overall guidance on future directions. The Ministers urged all partners interested in supporting South-South cooperation to be guided by the principles and objectives for such cooperation established in such internationally agreed documents as the Buenos Aires Plan of Action for Promoting and Implementing Technical Cooperation among Developing Countries, adopted by the General Assembly in its resolution 33/134 of 19 December 1978, and the Nairobi outcome document, endorsed by the General Assembly in its resolution 64/222, as well as other relevant Assembly resolutions. The Ministers therefore reiterated the Group’s position that any policy debate outside the United Nations system should be guided by the above-mentioned agreed frameworks as well as the Yamoussoukro Consensus on South-South cooperation. Ministers also recommended dedicated structures and resources for South-South cooperation and regular reporting on related activities across the United Nations system. 145.  The Ministers recalled the decision of the High-level Committee in 2012 to rename the Special Unit for South-South Cooperation to the United Nations Office for South-South Cooperation, hosted by the United Nations Development Programme (UNDP), as a separate entity and coordinator for promoting and facilitating South-South and triangular cooperation for development on a global and United Nations system-wide basis. In this context, the Ministers considered that the renaming of the Unit was a step forward in supporting South-South cooperation, and recommended the development of collaborative arrangements between the funds and programmes and the United Nations Office for South-South Cooperation, including with a clear division of tasks and roles, as well as clear lines of reporting and accountability. The Office requires further strengthening, including through the provision of additional resources for its coordinating activities. In this context, the Ministers looked forward to the Secretary-General’s comprehensive report on measures to strengthen the Office, requested by the High-level Committee in its decision 17/1, including through the revision of the governance structure, secretariat support and financial assistance, which is of

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vital importance, so as to ensure more efficient and effective work procedures for the Committee and better delineation of responsibilities and interaction among all stakeholders. The Ministers also recommended that the Office be enabled to participate in the United Nations System Chief Executives Board for Coordination, in keeping with its status as a separate entity within the United Nations for global coordination and promotion of South-South and triangular cooperation for development on a United Nations system-wide basis, in accordance with General Assembly resolutions. The Ministers stressed that the Office is the articulator of South-South cooperation in the United Nations system and that UNDP should not duplicate, overlap or undertake the system-wide functions and responsibilities of the Office. In this context, the Ministers invited the Office to develop its own strategic framework for 2014–2017 in accordance with the mandate of the General Assembly, consistent with the principles, priorities and objectives set by Member States in the Buenos Aires Plan of Action, the Nairobi outcome document and other relevant General Assembly resolutions and South Summit outcomes, taking into consideration the outcome of the review of the report of the Joint Inspection Unit on South-South and triangular cooperation in the United Nations system (A/66/717), the evolving post-2015 United Nations agenda discussions, the Secretary-General’s operational guidelines on support to South-South cooperation, and other entities’ strategic plans. 146.  The Ministers reiterated General Assembly resolution 60/212, in which it designated the United Nations Fund for South-South Cooperation, managed by the United Nations Office for South-South Cooperation, as the main United Nations trust fund for promoting and supporting South-South and triangular cooperation. To this end, the Ministers supported efforts to upgrade the Fund into a fully functioning voluntary trust fund and to expand the core resources of the G-77 Pérez-Guerrero Trust Fund for Economic and Technical Cooperation among Developing Countries in accordance with the relevant General Assembly resolutions and South Summit decisions. 147.  The Ministers invited the member States of the Group of 77 to come forward with an offer to host the thirteenth session of the Intergovernmental Follow-up and Coordination Committee on South-South Cooperation in 2014. They also invited Member States to host sectoral meetings in various fields of cooperation, including South-South forums for parliamentarians, mayors, youth, media and civil society and other thematic meetings as envisaged in the Doha Plan of Action adopted by the Second South Summit. The Ministers invited the Chair of the Group of 77 to continue his consultations with Member States for the hosting of the Third South Summit, to be held on a convenient date. 148. The Ministers approved the report of the twenty-eighth meeting of the Committee of Experts of the Pérez-Guerrero Trust Fund and endorsed its recommendations. The Ministers commended the Chair of the Trust Fund for his continued commitment and expressed their satisfaction with the results achieved by the Trust Fund. In view of the substantial decrease in the interest earnings of the Trust Fund caused by the current world financial situation, as reported by the Chair of the Trust Fund, the Ministers appealed to every Member State to make a significant contribution to the Trust Fund on the occasion of the United Nations Pledging Conference for Development Activities, held in New York on 11 November 2013. 149. The Ministers approved the financial statement of the Economic Cooperation among Developing Countries Account of the Group of 77, as presented by the Chair of the Group of 77, and urged those Member States that had not yet done so to make special efforts to pay their outstanding contributions. 150.  The Ministers welcomed the admission of the Republic of Kiribati as a member of the Group of 77.

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38.  Thirty-eighth Annual Meeting of Ministers for Foreign Affairs of the Member States of the Group of 77, New York, 26 September 2014 a.  Ministerial Declaration 1.  The Ministers for Foreign Affairs of the Group of 77 and China met in New  York on 26 September 2014 for the Thirty-eighth Annual Meeting of Ministers, under the Chairmanship of the Plurinational State of Bolivia. 2. The Ministers recalled the successful convening of the Summit of Heads of State and Government of the Group of 77, in Santa Cruz de la Sierra, Bolivia, on 14 and 15 June 2014. They expressed their appreciation to the Government of the Plurinational State of Bolivia for hosting the Summit and reaffirmed their commitment to work towards the full implementation of the Declaration entitled ‘For a New World Order for Living Well’. 3. The Ministers welcomed the Joint Communiqué of the Presidents of the Non-Aligned Movement as well as the Group of 77 in New York, and other G77 Chapters, on the occasion of the celebration of the 50th anniversary of the establishment of the Group of 77, adopted in Algiers, Algeria, on 30th May 2014. Ministers, also welcomed the convening by Algeria, in partnership with the Presidents of the Non-Aligned Movement and the President of the Group of 77, of the second meeting of the Joint Coordination Committee (JCC) at Ministerial level, to be held in New York, on September 26th 2015, to mark the celebration of the 70th anniversary of the establishment of the United Nations Organization as well as the 60th anniversary of the Bandung Declaration. 4.  The Ministers welcomed the ‘Algiers Appeal on a Global partnership for development through renewed international cooperation’ adopted by the High Level Panel of Eminent Personalities of the South held in Algiers, Algeria, on 30 May 2014. 5. The Ministers noted the initiative announced by His Excellency, Mr Evo Morales Ayma, President of the Plurinational State of Bolivia, during the Summit of the Group of 77, to establish the Institute for South-South Integration, and his offer to host the Institute in Bolivia. Therefore, they requested the Chair of the G-77 in New York to undertake consultations on this initiative with the Member States and to report at its next annual ministerial meeting on the outcome of such consultations for appropriate follow-up action. 6.  The Ministers reaffirmed the Nairobi outcome document of the High-level United Nations Conference on South-South Cooperation, therefore recognize the importance and different history and particularities of South-South cooperation, and reaffirmed their view of South-South cooperation as a manifestation of solidarity among peoples and countries of the South that contributes to their national well-being, their national and collective self-reliance and the attainment of internationally agreed development goals, including the Millennium Development Goals. South-South cooperation and its agenda have to be set by countries of the South and should continue to be guided by the principles of respect for national sovereignty, national ownership and independence, equality, non-conditionality, non-interference in domestic affairs and mutual benefit. 7.  The Ministers reaffirmed the importance of strengthening South-South cooperation, especially in the current international economic environment, and reiterate our support for South-South cooperation as a strategy to sustain the development efforts of developing countries and as a means of enhancing their participation in the global economy. They reiterated the position of the Group that South-South cooperation is a complement to, rather than a substitute for, North-South cooperation and reaffirm that South-South cooperation is a collective endeavour of developing

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countries based on the principle of solidarity and premises, conditions and objectives that are specific to the historic and political context of developing countries and to their needs and expectations, and that as such, South-South cooperation deserves its own separate and independent promotion, as reaffirmed in the Nairobi outcome document. In this context, we stress that South-South cooperation and its agenda must be driven by the countries of the South. As such, South-South cooperation, which is critical for developing countries, requires long-term vision and a global institutional arrangement, as envisioned by the Second South Summit. 8.  The Ministers stressed that the High-level Committee on South-South Cooperation of the General Assembly is the central multilateral policymaking body in the United Nations system to review and assess global and system-wide progress and support for South-South development cooperation, including triangular cooperation, and to provide overall guidance on future directions. 9. In this regard, the Ministers welcomed decision 18/1 of the High-level Committee on South-South Cooperation and requested the establishment of a more formalized and strengthened inter-agency mechanism for the United Nations Office for South-South Cooperation, with a view to encouraging joint support for South-South and triangular initiatives, as well as sharing information on development activities and results achieved by various funds, agencies and organizations in support of South-South and triangular cooperation. 10.  The Ministers firmly affirmed that the report of the Open-Working Group on Sustainable Development Goals in its entirety should be preserved and should not be re-negotiated. In this sense, they stressed that this report shall be the basis for integrating SDGs into the Post- 2015 Development Agenda, as RIO + 20 also mandates. 11.  The Ministers underscored the importance of understanding poverty as a multidimensional phenomenon, and in this regard reaffirmed the need to end poverty in all its forms. 12.  Recalling the statement made at the United Nations Conference on Sustainable Development that poverty eradication is the greatest global challenge and an indispensable requirement for sustainable development, the Ministers emphasized that poverty eradication must remain the central and overarching objective of the post-2015 development agenda. The Ministers strongly supported the view that the post-2015 development agenda should reinforce the commitment of the international community to eradicate poverty by 2030. 13.  The Ministers underlined the need for a coherent approach to the post-2015 development agenda, which should reinforce the commitment of the international community to poverty eradication and the integration of the three dimensions of sustainable development in a balanced manner with the contributions of the Open Working Group of the General Assembly on Sustainable Development Goals, the financing for development process, the Intergovernmental Committee on Experts for Sustainable Development Financing, the process to develop options for a United Nations technology facilitation mechanism and other relevant processes. 14.  The Ministers reaffirmed that the post-2015 development agenda must fully adhere to the Rio Principles, in particular the principle of common but differentiated responsibilities. 15.  The Ministers underscored the importance of strengthening the global partnership for development, to be based on quantified and time-bound targets, consistent with Millennium Development Goal No. 8 and in accordance with the principle of common but differentiated responsibilities in the post-2015 development agenda. North-South cooperation remains the core of this partnership and South-South and triangular cooperation are a useful complement to North-South cooperation. Strengthened commitment from developed countries is therefore required to enhance international cooperation and scale up support for developing countries. They emphasized the need for developed countries to urgently fulfil the official development assistance commitments they have made, individually and collectively, including the target of

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allocating 0.7 per cent of their gross national product to official development assistance by 2015 and the target of allocating between 0.15 and 0.20 per cent of their gross national product to official development assistance for least developed countries. 16. The Ministers emphasized that the post-2015 development agenda must meaningfully address issues of reform of the institutions of global economic governance in order to strengthen the voice and participation of developing countries in decision-making in these institutions. They also noted that the global economic, financial and trading systems remain imbalanced, to the disadvantage of developing countries, and in this regard they stressed the importance of identifying, in the post-2015 development agenda, the weaknesses and imbalances of these global systems and of proposing actions for improvements with the aim of supporting the development agenda and the programmes of developing countries. 17.  The Ministers also stressed the importance for the post-2015 development agenda, if it is to be global in nature and universally applicable to all, to fully respect the development policy space of developing countries to make use of policy tools and measures that are required to implement their policies for poverty eradication and other developmental plans and programmes. They also stressed that the post-2015 development agenda should promote rapid, sustained and inclusive economic growth in developing countries as a key requirement for eradicating poverty and hunger and reducing inequalities within and among countries. 18.  The Ministers reaffirmed the centrality and primacy of the intergovernmental outcomes as the basis for the post-2015 development agenda. 19. The Ministers reiterated the need for a strong preparatory process leading to the Third International Conference on Financing for Development to be held in Addis Ababa in July 2015. The Ministers expressed their determination to achieve an ambitious outcome document given the need to review the progress in the implementation of the Monterrey Consensus and the Doha Declaration, reinvigorate and strengthen the financing for development follow-up process, identify obstacles encountered for the achievements of the goals therein and actions to overcome these constraints, as well as support the implementation of the post-2015 development agenda. 20.  The Ministers affirmed that technology is a key means of implementation, and that it is the most important lever of change for achieving sustainable development. Without a breakthrough in international cooperation in the field of technology, shifting to a more sustainable path will be very difficult and burdensome for developing countries. 21.  In this regard, the Ministers recalled the Rio+20 Outcome document, relevant GA resolutions, and Secretary General’s reports related to the possible arrangements for a facilitation mechanism to promote the development, transfer and dissemination of clean and environmentally sound technologies, and welcomed the convening of the four GA structured dialogues to consider those arrangements and present recommendations in this regard, including on possible modalities and organization of such mechanism. 22.  The Ministers further welcomed the summary prepared by the President of the General Assembly of the discussion and recommendations that emerged from the four structured dialogues on the possible arrangements for a technology facilitation mechanism. The Ministers emphasized the importance of continuing consultations in this regard with the aim of reaching a conclusion at the sixty-ninth session in the context of the post-2015 development agenda. 23.  The Ministers stressed the need to develop an enabling international environment to allow each and every country to pursue developmental objectives according to their own priorities with policies of their own choice. The Ministers reaffirmed that this should be the strategic objective of the post-2015 development agenda, and that this should be the transformational change we are aiming at producing: developing an international enabling environment for sustainable development, by addressing the questions of trade, reform of the international financial system, global economic governance, debt, repatriation of illicit funds, cooperation in the fields of finance and

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technology, in order to support the efforts of developing countries to achieve sustainable development. 24.  The Ministers stressed in this regard that all countries should assume their common but differentiated responsibilities, and warned that outsourcing these responsibilities to the private sector or the civil society is not acceptable, and shall not replace a renewed and strengthened global partnership for sustainable development. 25.  The Ministers highlighted the importance of disaster risk reduction as it has direct impacts on achieving sustainable development, especially in developing countries. They reaffirmed their support for the international efforts to develop the post-2015 framework for disaster risk reduction or Hyogo Framework for Action (HFA2), which will be adopted at the Third World Conference on Disaster Risk Reduction in Sendai in March 2015. They stressed that enhancing international cooperation on implementation of disaster risk reduction policies and strategies, in particular in developing countries, should be a crucial element in HFA2. 26.  The Ministers affirmed the need for reform of the international financial architecture so that the financial and monetary system reflects the realities of the twenty-first century, including a properly regulated international financial sector that reduces and discourages speculative investment, in order for capital markets to be mobilized to achieve sustainable development and play a constructive role in the global development agenda. 27. The Ministers urged that the reform process of the governance structure of the Bretton Woods institutions be finalized as soon as possible and be much more ambitious, and that an accelerated plan be established for further reforms in representation, participation and parity of voting power for developing countries in the decision-making process within the Bretton Woods institutions and in all discussions on international monetary reform and in the operation of the new arrangements for special drawing rights in the International Monetary Fund (IMF), on the basis of criteria that truly reflect its mandate in the field of development and with the participation of all stakeholders in an equitable, transparent, consultative and inclusive process. In this regard, they called on the General Assembly to launch a process to reform the international financial and monetary system. 28.  The Ministers called for the urgent completion of the 2010 IMF quota formula reform in order to ensure that the quotas and governance of IMF better reflect the relative weight of emerging and developing countries in the global economy. However, the redistribution of voting rights to reflect reality alone will not resolve the structural problems of financial instability and the lack of liquidity for developing countries in need to generate the necessary sustainable growth and development. Also the reform should encompass liquidity creation, including improvement in the special drawing rights for developing countries. IMF must provide more comprehensive and flexible financial responses to the needs of developing countries, without imposing procyclical conditionalities and respecting their need for adequate policy space. Furthermore, leading personnel of the Bretton Woods institutions must be designated on the basis of their individual merits, through an open and fair process of selection. As long as IMF does not reflect the new realities in the global economy and its Director General keeps being designated through a process that lacks any transparency, its legitimacy will remain questionable. 29.  The Ministers recalled that sovereign debt management has been a crucial issue for developing countries in past decades and recent years. Recently, a new concern has emerged relating to the activities of vulture funds. Recent examples of the actions of vulture funds in international courts have revealed their highly speculative nature. Such funds pose a risk to all future debt-restructuring processes, both for developing and developed countries. They therefore stressed the importance of not allowing vulture funds to paralyse the debt-restructuring efforts of developing countries, and that these funds should not supersede a State’s right to protect its people under international law.

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30.  The Ministers welcomed the adoption by the United Nations General Assembly of resolution 68/304 ‘towards the establishment of a multilateral legal framework for sovereign debt restructuring processes’, in particular the decision to elaborate and adopt, through a process of intergovernmental negotiations, as a matter of priority during its 69th session, a multilateral legal framework for sovereign debt restructuring processes with a view, inter alia, to increasing the efficiency, stability and predictability of the international financial system and achieving sustained, inclusive and equitable growth and sustainable development, in accordance with national circumstances and priorities. The Ministers renewed their determination to define the modalities for the intergovernmental negotiations and the adoption of the text of the multilateral legal framework at the main part of its sixty-ninth session, before the end of 2014. 31. The Ministers also reiterated that progress in realizing the Millennium Development Goals, the Sustainable Development Goals and the Post-2015 Development Agenda will depend on progress in creating a pro-development, international enabling environment and delivering the relevant means of implementation, which includes, among others, financial resources, technology development and transfer, on concessionary and preferential terms, capacity building and pro-development trade and economic policies. These means of implementation must be supported by actions from developed countries at the international level, such as quantitative time-bound financing targets beside those established for Official Development Assistance (ODA). 32.  The Ministers underscored the important role of ODA in leveraging and sustaining financing for development in developing countries and in facilitating the achievement of development objectives. 33.  The Ministers reaffirmed that Official Development Assistance remains the main source of international financing for many developing countries and that it is essential as a catalyst for development, facilitating the achievement of national development objectives, including the unfinished business of the Millennium Development Goals, the sustainable development goals and the post-2015 development agenda, in accordance with paragraph 246 of the outcome document of the United Nations Conference on Sustainable Development (‘The future we want’). 34. The Ministers recalled paragraph 142 of the outcome document of the United Nations Conference on Sustainable Development, in which Heads of State and Government reaffirmed the right to use, to the fullest extent, the provisions contained in the TRIPS Agreement, the Doha Declaration on the TRIPS Agreement and Public Health, the decision of the General Council of the World Trade Organization (WTO) of 30 August 2003 on the implementation of paragraph 6 of the Doha Declaration and, when formal acceptance procedures are completed, the amendment to article 31 of the TRIPS Agreement, which provide flexibilities for the protection of public health, and in particular to promote access to medicines for all and encourage the provision of assistance to developing countries in this regard. They affirmed the importance of taking advantage of the use of TRIPS flexibilities in order to promote the people’s health and access to medicines. They called upon developed countries to fully respect the right of developing countries to make full use of TRIPS flexibilities and to refrain from taking actions, including trade measures, to prevent or dissuade developing countries from exercising this right. 35.  The Ministers recalled the outcome of the 9th Ministerial Conference of the World Trade Organization held in Bali in December 2013, and stressed on the importance of implementing all aspects of the Bali package in a balanced manner, through an inclusive negotiating process in which the procedural issues of the Trade Facilitation agreement would be tackled in parallel with the agricultural pillar, including stocking for food security, and the post Bali work programme, taking into account the priorities of developing countries thereon, including the urgent priority to eliminate all forms of export subsidies, in accordance with the agricultural mandate of the Doha Round.

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36.  The Ministers condemned the brutal military aggression committed by Israel, the occupying Power, in July and August 2014 against the Palestinian civilian population in the Occupied Gaza Strip, which resulted in the killing of more than 2,150 Palestinians, including hundreds of children and women, and the injury of more than 11 000 Palestinians as a result of the lethal, indiscriminate and excessive use of force by Israeli occupying forces. The Ministers also condemned the wanton destruction committed by Israel of thousands of Palestinians homes; vital civilian infrastructure; business properties; mosques; schools, hospitals, public institutions, farms; and several UN facilities in Gaza. The Ministers deplored the systematic, grave breaches of international law, including international humanitarian and human rights law, committed by Israel in this regard. They called for accountability for these crimes and violations and called on the Security Council, in line with its Charter duty for the maintenance of international peace and security, to undertake serious follow-up efforts to bring an end to Israel’s impunity and to realize justice for the victims and to contribute to a peaceful and just solution of the Palestinian-Israeli conflict. 37.  The Ministers demanded the immediate and full lifting of the Israeli blockade imposed on the Gaza Strip, which constitutes the massive collective punishment of its inhabitants in grave contravention of international humanitarian and human rights law. The Ministers requested all members of the international community, the United Nations and other international organizations and non-governmental organizations to help provide the victims of the Israeli aggression in the Gaza Strip with the required humanitarian assistance on an urgent basis. They also reiterated their call upon the international community to continue providing much needed developmental and humanitarian assistance to the Palestinian people during this critical period particularly for reconstruction and economic recovery in the Gaza Strip. 38.  The Ministers expressed deep concern about the further decline of the social and economic conditions of the Palestinian people as a result of illegal Israeli practices, which include but are not limited to, the continuing colonization of Palestinian land by Israel, the occupying Power, in grave breach of international humanitarian law, the Rome Statute of the International Criminal Court as well as a flagrant violation of relevant United Nations resolutions and disrespect of the Advisory Opinion of the International Court of Justice. In this connection, the Ministers demanded a halt of Israel’s confiscation of Palestinian property and construction and expansion of Israeli settlements and the Wall. They also expressed grave concern over the frequent acts of violence, terror and incitement against Palestinian civilians and the destruction of the Palestinian properties by Israeli settlers in the Occupied Palestinian Territory, including East Jerusalem, and called for action to hold the perpetrators accountable for these crimes. 39.  The Ministers reaffirmed their unwavering support for the just cause of Palestine and solidarity with the Palestinian people. They reaffirmed their principled and longstanding support for the right of the Palestinian people to self-determination and the achievement of their legitimate national aspirations, including for freedom, independence, justice, peace and dignity in their independent State of Palestine, with East Jerusalem as its capital, and called for the exertion of the necessary efforts by the international community in support of these objectives in this International Year of Solidarity with the Palestinian People. 40.  The Ministers reiterated their call for the immediate and full withdrawal of Israel, the occupying Power, from the Occupied Palestinian Territory, including East Jerusalem, and the occupied Syrian Golan to the line of 4 June 1967 and from the remaining Lebanese occupied land. They reaffirmed their support for a Middle East peace process aimed at achieving a comprehensive, just and lasting peace in the region, in accordance with the relevant United Nations resolutions, including Security Council resolutions 242 (1967), 338 (1973), 425 (1978) and 1850 (2008) and the principle of land for peace. In this context, they also reaffirmed their support for the Arab Peace Initiative endorsed by the Arab Summit Conference since March 2002.

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41.  The Ministers reaffirmed the inalienable rights of the Palestinian people and of the population of the occupied Syrian Golan over their natural resources, including land, water and energy resources, and demanded that Israel, the occupying Power, cease the exploitation, damage, cause of loss or depletion and endangerment of the natural resources in the Occupied Palestinian Territory, including East Jerusalem, and in the occupied Syrian Golan. 42.  The Ministers reaffirmed the need for the Governments of the Argentine Republic and the United Kingdom of Great Britain and Northern Ireland to resume negotiations in accordance with the principles and the objectives of the United Nations Charter and the relevant resolutions of the General Assembly, in order to find, as soon as possible, a peaceful solution to the sovereignty dispute relating to ‘The Question of the Malvinas Islands’, which seriously damages the economic capacities of the Argentine Republic and the need for both parties to refrain from taking decisions that would imply introducing unilateral modifications in the situation while the islands are going through the process recommended by the General Assembly. 43.  Highlighting the right of the Member States of the Group of 77 to permanent sovereignty over their energy resources, the Ministers expressed that the operations carried out by companies not authorized by the Argentine Government in the Malvinas Islands area relating to the exploration of natural resources, especially hydrocarbon resources, are seriously detrimental to the sovereignty rights of the Argentine Republic over its continental shelf. 44.  In this regard, the Ministers recognized the right of the Argentine Republic to take legal actions with full respect for International Law and relevant resolutions against non-authorized hydrocarbon exploration and exploitation activities in the referred area. 45.  The Ministers reaffirmed the need to find a peaceful solution to the sovereignty issues facing developing countries, including the dispute over the Chagos Archipelago, including Diego Garcia, which was unlawfully excised by the United Kingdom from the territory of Mauritius, prior to independence, in violation of international law and General Assembly resolutions 1514 (XV) of 14 December 1960 and 2066 (XX) of 16 December 1965. Failure to resolve these decolonization and sovereignty issues would seriously damage and undermine the development and economic capacities and prospects of developing countries. In this regard, they noted with great concern that despite the strong opposition of Mauritius, the United Kingdom purported to establish a ‘marine protected area’ around the Chagos Archipelago, which contravenes international law and further impedes the exercise by Mauritius of its sovereign rights over the archipelago and the right of return of Mauritius citizens who were forcibly removed from the archipelago by the United Kingdom. 46.  The Ministers emphasized that transnational corporations have a responsibility to respect all human rights and should refrain from causing environmental disasters and affecting the well-being of peoples. 47.  The Ministers reaffirmed their firm rejection of the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions, against developing countries, and reiterate the urgent need to eliminate them immediately. They emphasized that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. The Ministers therefore called on the international community to adopt urgent and effective measures to eliminate the use of unilateral coercive economic measures against developing countries. 48.  The Ministers expressed their strongest rejection of the implementation of unilateral coercive measures and reiterate our solidarity with Cuba, while reaffirming their call upon the Government of the United States to put an end to the economic, commercial and financial blockade imposed on that sisterly nation for more than five decades. In particular, the Ministers called to put an end to the persecution of Cuba’s international financial transactions abroad, which has been exacerbated by the Office of Foreign Assets Control of the United States in recent years.

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49.  The Ministers reaffirmed their rejection to the unilateral economic sanctions imposed on the Sudan, which have a negative impact on the development and prosperity of the people of the Sudan, and in this regard called for an immediate lifting of those sanctions. 50.  The Ministers reaffirmed their rejection to the unilateral economic sanctions imposed on the Islamic Republic of Iran, which have a negative impact on the development and prosperity of the people of the Islamic Republic of Iran, and in this regard called for an immediate lifting of those sanctions. 51.  The Ministers recalled once again that climate change is one of the most serious global challenges of our times. They underscored the fact that developing countries continue to suffer the most from the adverse impacts of climate change, and the increasing frequency and intensity of extreme weather events and the impact of response measures, even though they are the least responsible for climate change. Accordingly, they called for developed countries to take the lead on responding to climate change. Climate change threatens not only the development prospects of developing countries and their achievement of sustainable development, but also the very existence and survival of countries and societies. 52.  The Ministers stressed that the developed countries, given their historical responsibility, need to take the lead in addressing this challenge in accordance with UNFCCC principles and provisions, particularly, the principles of equity and common but differentiated responsibilities and respective capabilities, and provide financial and technological support to developing countries. 53.  The Ministers reiterated that the extent to which developing countries will effectively implement their commitments under the UNFCCC will depend on the effective implementation by developed countries of their commitments under the Convention related to financial resources and transfer of technology and will take fully into account that economic and social development and poverty eradication are the first and overriding priorities of the developing countries. 54.  The Ministers reiterated their support for the success of the 20th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), to be held in Lima, Peru. The Ministers reaffirmed the need to achieve progress in Lima towards the adoption at the 21st Conference of the Parties to the UNFCCC in 2015 of a protocol, another legal instrument or an agreed outcome with legal force under the Convention that is in accordance with its principles and provisions, in particular CBDR, and that will strengthen the multilateral rules-based system. The Ministers also reiterated their support for constructive discussions at the Social Pre-COP meeting in Venezuela ahead of Lima. In this regard, the Ministers expressed their support to the Governments of Peru and Venezuela for the successful steering of the work of these meetings. 55.  The Ministers noted the progress in the work of the Ad hoc Working Group on Durban Platform (ADP) and emphasized that the outcome of Parties’ work under the ADP must enable us to further enhance the full, effective and sustained implementation of the Convention. Ministers reiterated that the work under the ADP and its outcome must be under the Convention and in accordance with the objective, principles and provisions stipulated in the Convention, including the principles of equity and common but differentiated responsibilities and respective capabilities. The process under the ADP must not lead to a reinterpretation or a rewriting of the Convention. 56.  The Ministers stressed the need to urgently close the ambition gap, and expressed their concern with the lack of fulfillment of commitments by developed countries in this regard. In addressing this gap, focus must not only be limited to mitigation but also include gaps relating to finance, technology and support for capacity building. They emphasized that developed countries must take robust and ambitious mitigation commitments, with ambitious quantitative emissions limitation reduction targets, as required by science and mandated by the Convention.

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57.  The Ministers reaffirmed the importance to respect the universal realization of the right of peoples to self-determination of peoples living under colonial or other forms of alien domination or foreign occupation, which adversely affects their social and economic development, respect for the independence of States, national sovereignty, unity and territorial integrity and non-interference in the internal affairs of States including through the use of the Information and Communication Technologies, in particular social networks, contrary to the principles of the International Law, for the effective guarantee and observance of human rights, enshrined in the Charter of the United Nations and embodied in the International Covenants on Human Rights and stress that the full respect of principles and purposes enshrined in the UN Charter and international low inspire our full commitment to multilateralism. 58.  The Ministers recalled the special needs of Africa, the only continent currently not on track to achieve the internationally agreed development goals, including the Millennium Development Goals. The Ministers recognized that, while economic growth is returning, there is a need to sustain the recovery, which is fragile and uneven, to face the ongoing adverse impacts of multiple crises on development and the serious challenges these impacts pose to the fight against poverty and hunger, which could further undermine the achievement of the internationally agreed development goals, including the Goals in Africa. 59.  The Ministers expressed profound concern about the fact that the commitment to doubling aid to Africa by 2010, as articulated at the summit of the Group of Eight held in Gleneagles, United Kingdom, was not entirely reached, and in this regard we stress the need to make rapid progress in order to fulfil that and other donors’ commitments to increase aid through a variety of means, including the provision of new additional resources, the transfer of technology to and the building of capacity in African countries, and to support their sustainable development. They called for continued support for Africa’s development initiatives, including Agenda 2063 (a continental strategic vision and priority framework for socioeconomic development), the New Partnership for Africa’s Development and the Programme for Infrastructure Development in Africa. On the other hand, they welcomed the support that some developing countries have extended to Africa through South-South and triangular cooperation programmes. 60.  The Ministers recalled the convening of the Third International Conference on Small Island Developing States (SIDS) in Apia, Samoa, from 1 to 4 September 2014 and welcomed the adoption of the Outcome Document titled ‘Small Island Developing States Accelerated Modalities of Action’—SAMOA Pathway, which represents the international community’s renewed political commitment to the sustainable development of SIDS and reaffirms that SIDS remain ‘a special case’ for sustainable development due to their unique and particular vulnerabilities. It also sets out new modalities for strengthened action on a range of SIDS challenges and priorities and demonstrates how partnerships with different stakeholders can be nurtured and utilized as one of the important means to implement the SAMOA Pathway. Reports on six Multi-stakeholder Partnership Dialogue sessions focusing on SIDS-specific partnership with a wide range of partners were an integral outcome of the conference and exemplified its partnership theme of ‘the sustainable development of SIDS through genuine and durable partnerships.’ 61.  The Ministers expressed their appreciation to the Government of the Independent State of Samoa for hosting the SIDS conference and reaffirmed their commitment to work with SIDS towards full implementation of the SAMOA Pathway to ensure its success. 62.  The Ministers recognized the special needs of and challenges faced by landlocked developing countries caused by these States’ lack of territorial access to the sea, which is aggravated by their remoteness from world markets, and also expressed concern about the fact that inclusive economic growth and social well-being of landlocked developing countries remain very vulnerable to external shocks and to the multiple challenges the international community faces,

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including the financial and economic crisis and climate change. They stressed the need for the international community to enhance development assistance to landlocked developing countries to help them overcome their vulnerabilities, build resilience and set themselves on a path of sustainable social and economic development. 63.  The Ministers reaffirmed the need to urgently address the special development needs of and challenges faced by landlocked and transit developing countries through their genuine partnership with sufficient support and cooperation from the international community for the effective implementation of priorities of the Almaty Programme of Action and its successor programme. They welcomed the decision of the General Assembly to hold a comprehensive ten-year review conference of the Almaty Programme of Action in 2014, and called upon the international community to critically consider the special needs of and the challenges faced by landlocked developing countries, and to help develop priorities for a new, more comprehensive, common action-oriented framework of landlocked developing countries for the next decade. 64.  The Ministers stressed the need for the United Nations development system to ensure that it addresses the diverse and specific development needs of middle-income countries in a coordinated manner through, inter alia, an accurate assessment of the national priorities and needs of these countries, taking into account the use of variables that go beyond per capita income criteria; recognizing the multidimensional nature of development and poverty and through an adequate and systemic and better focused support by the UN development system, according to national plans. 65.  The Ministers expressed concerns about the large and growing number of migrants, especially women and children, including those unaccompanied or separated from their parents, who place themselves in a vulnerable situation by attempting to cross international borders without the required travel documents, and recognized the obligation of States to respect the human rights and fundamental freedoms of all migrants and their families, especially those of women and children, regardless of their migration status. 66.  The Ministers expressed deep concern that international efforts to end the cycle of diseases such as HIV and AIDS pandemic and tuberculosis, malaria, and other neglected tropical diseases through prevention and treatment, and to promote mental health and wellbeing are being hampered by the appearance and spread of yet another tropical disease in the form of Ebola in the region of West Africa. 67.  The Ministers, considering the cross-border nature of the epidemic, the unprecedented infection rate of the disease, and the risk of its spread beyond borders and cognizant of the socio-economic impact of the epidemic on the development of the primarily affected countries, and further acknowledging that Ebola epidemic is a threat to health security at the national, sub regional, regional and global levels, thanked the international community for steps taken to date and support provided and request more assistance to those efforts. 68.  The Ministers requested the international community to provide the necessary assistance to build the capacity of Member States for surveillance, including but not limited to active case search, contact tracing and information sharing on the Ebola epidemic with the WHO, CDC, MSF, UNDP, UNICEF, UNFPA, IFRIC and other partners in a timely manner. 69.  The Ministers acknowledged the efforts of the Heads of State and Government of the Mano River Union countries in West Africa (Cote d’Ivoire, Guinea, Liberia and Sierra Leone) for their commitment and actions taken to stop the spread of the Ebola in their countries, and called on development partners and the entire international community to provide continued, sustained and relevant support to the efforts of the affected countries. In this regard, they encouraged all donors, particularly traditional donors, to enhance transparency in their ODA disbursements related to health issues, especially in this case.

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70.  The Ministers welcomed the adoption of General Assembly resolution 69/1 and in this regard remained convinced that global unity is the key to defeating Ebola, a common threat to global health. 71.  The Ministers welcomed the offer by the Government of Ecuador to host the Conference Habitat III in Quito in 2016 and, in that sense, decided to support the adoption of this decision by the General Assembly. 72.  The Ministers noted the forthcoming holding in Tarija, Bolivia, of the Meeting of Ministers of Industrialization and counterparts on the issue of governance of natural resources and industrialization, with the cooperation of the United Nations Industrial Development Organization (UNIDO), the Economic Commission for Latin America and the Caribbean, the Economic Commission for Africa, the Economic and Social Commission for Asia and the Pacific and the Economic and Social Commission for Western Asia. 73.  The Ministers welcomed the inauguration of the new suite of offices of the Group of 77 in the fifth floor of the Secretariat Building at the UN Headquarters by His Excellency, Mr Evo Morales Ayma, President of the Plurinational State of Bolivia. The Ministers noted with satisfaction this achievement which marked the permanent return of the G-77 office to the main Secretariat Building where it had been originally housed since 1982 before the initiation of the Capital Master Plan. 74.  The Ministers recalled the obligations of the Host country under the agreement of 26 June 1947 between the United Nations and the United States of America, and welcomed the adoption by consensus of General Assembly resolution 68/306 entitled ‘Enhancement of the administration and financial functioning of the United Nations’, which aims at addressing the issue of the arbitrary closure of bank accounts of Permanent Missions to the United Nations by some banking institutions, in order to find a permanent solution to the problem. 75.  The Ministers reaffirmed that the Fifth Committee of the General Assembly is the sole Main Committee of the Organization entrusted with responsibilities for administrative, financial and budgetary matters. In this regard, the Ministers requested that any budgetary, financial, and administrative matters, including those related to the establishment of a peacekeeping operation or a special political mission, be discussed solely in the framework of the Fifth Committee, in conformity with the Charter of the United Nations. 76.  The Ministers reaffirmed that any Secretariat and management reform efforts, including on its budget process, must not be intended to change the intergovernmental, multilateral and international nature of the Organization, but must strengthen the ability of Member States to perform their oversight and monitoring role and that prior consideration by and approval of Member States is essential in all cases where the measures to be implemented fall under the prerogatives of the Assembly. In this regard, they recall resolution 66/257. They also reaffirmed the right of the entire membership of the United Nations to pronounce itself on the administration of the Organization, including on budgetary matters, and the need for continuous interaction and dialogue between the Secretariat and the General Assembly aimed at fostering a positive environment for the negotiations, the decision-making process and the implementation of the reform measures. 77.  The Ministers strongly supported the oversight role performed by the General Assembly, as well as its relevant intergovernmental and expert bodies, in planning, programming, budgeting, monitoring and evaluation. In this context, they renewed their commitment to strengthen the role of the Committee for Programme and Coordination. The Ministers also urged the rest of the membership of the United Nations to actively participate in the sessions of the Committee. 78.  The Ministers reaffirmed the importance of the strategic framework as the principal policy directive of the Organization and that its content should fully reflect the mandates of Member States, including the United Nations financial rules and regulations.

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79.  The Ministers reaffirmed the importance of preserving the budget methodology, the established budgetary procedures and practices and the rules and regulations governing the budget process, and stressed that the level of resources to be approved by the General Assembly must be commensurate with all mandated programmes and activities in order to ensure their full and effective implementation. In this sense, they underlined that the existing recosting methodology is a fundamental and integral element of the budgetary methodology agreed in the General Assembly and affirmed that the existing recosting methodology ensures that mandated activities are not negatively impacted by currency fluctuations and inflation. 80.  The Ministers underlined that the current methodology for the preparation of the scale of assessments reflects changes in the relative economic situations of the United Nations Member States. The Ministers further reaffirmed the principle of ‘capacity to pay’ as the fundamental criterion in the apportionment of the expenses of the United Nations and rejected any change to the elements of the current methodology for the preparation of the scale of assessments aimed at increasing the contributions of developing countries. In this regard, they emphasized that the core elements of the current methodology of the scale of assessment, such as base period, Gross National Income, conversion rates, low per capita income adjustment, gradient, floor, ceiling for Least Developed Countries and debt stock adjustment must be kept intact and are not negotiable. 81.  The Ministers stressed that the current maximum assessment rate, or ceiling, had been fixed as a political compromise and is contrary to the principle of the capacity to pay and is a fundamental source of distortion in the scale of assessments. In this context, they urged the General Assembly to undertake a review of this arrangement, in accordance with paragraph 2 of General Assembly resolution 55/5 C. 82.  The Ministers affirmed that the current principles and guidelines for the apportionment of the expenses of peacekeeping operations approved by the General Assembly in its relevant resolutions should constitute a basis for any discussion on the peacekeeping scale. In this regard, the Ministers stressed that the peacekeeping scale must clearly reflect the special responsibilities of the permanent members of the Security Council for the maintenance of peace and security. The Ministers also recalled that the economically less developed countries have limited capacity to contribute towards the budgets of peacekeeping operations. In this context, the Ministers emphasized that any discussion on the system of discounts applied to the peacekeeping scale should take into account the conditions of developing countries whose current positions must not be negatively affected. The Ministers stressed, in this regard, that no member of the Group of 77 and China that is not a permanent member of the Security Council, should therefore be categorized above level C. 83.  The Ministers expressed their support to the United Nations Programme of Assistance in the Teaching, Study, Dissemination and Wider Appreciation of International Law established by General Assembly resolution 2099 (XX) of 20 December 1965 for the purpose of contributing to greater knowledge of international law as a means of strengthening international peace and security and promoting friendly relations and cooperation among States. They recalled that the Programme and its components are one of the cornerstones of the efforts of the United Nations to promote international law and that jurists, academics, diplomats and other public officials from developing countries greatly benefit from the regional courses of international law, fellowships, publications and the Audiovisual Library of International Law. In the light of their concern about the lack of voluntary resources to support the activities of this important programme, the Ministers reaffirmed that all the components of the Programme of Assistance, including the regional courses in international law for Africa, Asia and Latin America and the Caribbean, the International Law Fellowship Programme, the Audiovisual Library of International Law, the Hamilton Shirley Amerasinghe Memorial Fellowship on the Law of the Sea, the seminars and

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regional training on international treaty laws and practice and legal publications and training materials, must be financed through the regular budget of the United Nations, starting from the biennium 2014–2015. 84.  The Ministers called for a responsible accountability approach to be adopted on the question of partnerships involving the United Nations, particularly as regards participation of the private sector, civil society and philanthropic entities. In this regard, they reaffirmed the need to enhance transparency, coherence and sustainability, as well as accountability to Member States, in United Nations partnerships, and stressed the need to ensure that procedures exist for the consideration and approval of any such initiatives by Member States in the General Assembly, in order to preserve the intergovernmental nature of the United Nations. 85.  The Ministers approved the Report of the Twenty-ninth Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund for South-South Cooperation (PGTF) contained in document G-77/AM(XXVI)/2014/2 and endorsed its recommendations. The Ministers commended the Chairman of the PGTF for his continued commitment and expressed their satisfaction with the results achieved by the PGTF. In light of the substantial decrease in the interest earnings of the Fund caused by the current world financial situation as reported by the Chairman of the PGTF, the Ministers appealed to every Member State to make a significant contribution to the PGTF on the occasion of the UN Pledging Conference for Development Activities to be held in New York on 10 November 2014. 86.  The Ministers approved the recommendations of the Committee of Experts of the PGTF regarding management of project resources to support the activities of the Committee and empowered the Chairman of the PGTF to finalize and sign the relevant documents. 87.  The Ministers approved the Financial Statement of the ECDC Account of the Group of 77 contained in document G-77/AM(XXVI)/2014/3, as presented by the Chairman of the Group of 77 and urged those Member States that have not yet done so to make special efforts to pay their outstanding contributions. 88.  The Ministers welcomed the admission of the Republic of South Sudan as a member of the Group of 77. 89.  The Ministers warmly welcomed the election by acclamation of the Republic of South Africa to the Chairmanship of the Group of 77 for 2015.

CHAPTER VII SESSIONS OF THE INTER-GOVERNMENTAL FOLLOW-UP AND COORDINATION COMMITTEE ON SOUTH-SOUTH COOPERATION (IFCC)

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1.  First Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-I), Manila, Philippines, 23–28 August 1982 a.  Final Report ‘Manila Follow-Up Action for ECDC’ Introduction 1.  Pursuant to the Caracas Programme of Action, the First Meeting of the Intergovernmental Follow-up and Coordination Committee (IFCC-I) was held in Manila on 23–28 August 1982. 2.  The Meeting was attended by delegates from Algeria, Argentina, Bangladesh, Brazil, Burma, Burundi, Chile, Congo, Cuba, Ecuador, Egypt, Gabon, India, Indonesia, Iran, Iraq, Ivory Coast, Jamaica, Kenya, Kuwait, Laos, Libyan Arab Jamahiriya, Malaysia, Mozambique, Mexico, Nigeria, Pakistan, Peru, the Philippines, Republic of Korea, Romania, Saudi Arabia, Senegal, Sri Lanka, Sudan, Suriname, Thailand, Trinidad and Tobago, Tunisia, United Arab Emirates, United Republic of Tanzania, Uruguay, Venezuela, Vietnam, Yugoslavia and Zimbabwe. Mr Gamani Corea, Secretary-General of UNCTAD and Mr A.  Patmarajah, Special Representative of the Executive Director of UNIDO, also attended the Meeting.

Opening Ceremonies 3.  The meeting was opened by Honourable Carlos P. Romulo, Minister for Foreign Affairs of the Philippines. 4.  H.E. Ferdinand E. Marcos, President of the Republic of the Philippines, in a speech read for him by the Honourable Cesar E.A. Virata, Prime Minister of the Philippines, reviewed the activities so far undertaken to promote collective self-reliance among developing countries and reaffirmed the Philippines commitment to Economic Cooperation among Developing Countries (ECDC) 5.  The President underscored the need to strengthen economic cooperation among developing countries, particularly in the light of sharp world economic adjustments brought about by the policies of developed countries and which had resulted in prolonged recession, accompanied by unemployment, higher interest rates, decline in demand for goods and services, changing of commodity prices and erosion of export earnings of developing countries. 6.  While the President regarded ECDC as an important instrument for promoting economic cooperation among developing countries, he was also of the view that ECDC is an essential dimension to the North-South dialogue. He believed the developed and developing countries should get together in a genuine effort to find mutually acceptable solutions to reverse the trend towards collapse of the global economy. He mentioned that the forthcoming GATT Ministerial Meeting offered an occasion for developing countries to consult and explore the possibility of adopting a common position that would enable them to press for improvement of their trade with developed countries. He said that the G-77, for example, could express concern over the minimum interest rates on export credits recently imposed by the OECD countries. 7.  On the implementation of the Caracas Programme of Action, the President specifically suggested that the Global System of Trade Preferences (GSTP) should be launched as scheduled and that such undertaking should be provided effective technical and secretariat support. On the other

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ECDC projects in the Caracas Programme of action, he stressed the value of modest but practical programmes which could bring immediate benefits to developing countries. 8.  In her welcome address, the Honourable Imelda Romualdez Marcos, First Lady and Governor of Metropolitan Manila said that as developing countries continue their dialogue with each other, they may find a common cause and sympathy in the formation of a new human order based on a moral force which shall be the infrastructure to catalyze development. She further said that relations between nations should be based on justice, equity and human dignity instead of fear or subservience.

Agenda 9.  The Meeting adopted the Agenda.

Election of Officers 10. Honourable General Carlos P.  Romulo, Minister for Foreign Affairs and Leader of the Philippines Delegation was elected Chairman. H.E. Gabriel Martinez of Argentina and H.E. O. Ani of Nigeria were elected Vice-Chairmen.

Statement of Mr Abdelwahab Keramane, Chairman of the Group of 77 in New York 11.  In a statement delivered at the opening of the Meeting, the Chairman of the Group of 77, Mr Abdelwahab Keramane, said that in spite of many difficulties, many activities have been successfully undertaken in the field of South-South cooperation barely one year after the adoption of the Caracas Programme of Action. 12. He said further that many other activities must still be carried out and that the First Intergovernmental Follow-up and Coordination Committee was a good opportunity to examine measures needed to sustain the impetus given in this cooperation. He was hopeful that effective measures to implement the Caracas Programme of Action could be evolved in the months to come.

Statement of Mr Gamani Corea, Secretary-General of UNCTAD 13. In his statement, Mr Gamani Corea expressed satisfaction on the considerable progress attained by the Group of 77 in implementing the Caracas Programme of Action on ECDC particularly, the establishment of the Global System of Trade Preferences (GSTP) and cooperation among State Trading Organizations (STOs). In this regard, he assured the Meeting that UNCTAD will extend support services envisaged in the Declaration on the GSTP, provided the necessary mandate from the UNCTAD Trade and Development Board or the General Assembly is obtained. He likewise stressed that ECDC will strengthen the bargaining position of the Group of 77 at the forthcoming session of UNCTAD-VI in Belgrade. He likewise emphasized the need for the ratification of the Common Fund Agreement.

Organization of Work 14.  The Meeting agreed to establish two Working Committees to deal with agenda item entitled ‘Review and Assessment of the Implementation of the Caracas Programme of Action on Economic Cooperation among Developing Countries’. 15.  Working Committee I was to consider Reports of ECDC Sectoral Meetings and Working Committee II, ‘Follow-up Measures and Coordination’ and both Committees would at the same

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time consider recommendations to the Group of 77 Ministerial Meeting on ECDC including future programme and calendar of activities. 16.  It was agreed that the Vice-Chairmen would be the Chairmen of the Working Committees. 17.  The Bureau as constituted was assisted by the Core of Assistants to the Chairman of G-77 and representatives of the three regional groupings. The Chairman designated Minister of Budget, Honourable Manuel Alba of the Philippines as Acting Chairman of the Meeting.

Terms of Reference 18.  The Meeting recalled the relevant portion of the Caracas Programme of Action on the activities of the IFCC, as follows: (i)  review periodically the progress made in the implementation of the ECDC programme; (ii)  review periodically the programme and calendar of activities; (iii)  agree on measures designed to give more impetus to the implementation of activities within the ECDC programme, when so required; (iv)  recommend to the annual Ministerial Meeting new policy guidelines designed to impart greater operationality and coherence to the Programme; (v)  report to the Ministers on any significant matter relating to the Programme.

Documents 19. The Meeting had before it the Reports of the Sectoral Meetings and other preparatory documents.

Chapter I General Summary and Conclusions 20.  Part of the work focused on the methodology for the global evaluation of results obtained to date, especially the implementation and follow-up of the conclusions, suggestions and decisions made by the technical meetings which were already held since it was the first meeting of the Committee. 21.  The Committee reaffirmed the importance and political support given by all the governments of developing country members of the Group of 77 to the Caracas Programme of Action as a fundamental element for the promotion of South-South cooperation, the strengthening of collective self-reliance, as a means of reinforcing their solidarity and negotiating position on international economic issues and, as a means to reducing their vulnerability to pressures from developed countries. The Committee recognized the gravity of the international economic situation particularly the continuing deterioration of the economies of the developing countries and the persisting impasse in the North-South dialogue. Against this background the urgency of further strengthening ECDC was stressed. It was stressed that this joint effort complements but does not replace the efforts and action taking place in the North-South sphere, nor the responsibilities and obligations of the developed countries towards the developing countries, including the sphere of South-South cooperation. 22.  The Committee reaffirmed that the implementation of the Caracas Programme of Action was the responsibility of developing countries themselves. As an autonomous programme, their joint action on an interregional scale serves to simultaneously give impetus to the efforts being made on a regional and subregional scale. The Committee recognized that the unity of the Caracas

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Programme of Action demands continued supervision to ensure that its results should be felt in all sectors mentioned and that the benefits of cooperation reach all its members. It was recalled that the Programme itself has mechanisms to ensure their adaptation for the greater and varying needs and interests of all participating countries. 23.  The Committee emphasized the need to ensure and strengthen coordination between the Group of 77 in New York, whose specific responsibilities are mentioned in the Caracas Programme of Action, and chapters of the Group of77 in other cities such as Geneva, Vienna, Rome, and Paris, integrating to the fullest extent the participation of those chapters in all corresponding tasks included in the Caracas Programme of Action and the follow-up and implementation of its results. To this end, these chapters might seek financial support from the Group of 77 Account for ECDC for the purposes envisaged in the relevant item 4 of Section IV of Paragraph 89 of the Caracas Programme of Action. 24.  The Committee noted the important contribution that intergovernmental bodies of developing countries and international organization made and can continue to make to the implementation of the Programme. The assistance which certain non-governmental organizations may give was also mentioned. 25.  With reference to items 2 and 3, Section IV, Paragraph 89 of the Caracas Programme of Action, the Committee had before it the document entitled ‘Support Measures from International Organizations’. The Committee took careful note of the contents of this document and considered that it not only conveyed useful factual information on present support-measures from the United Nations System, but also incorporated valuable ideas on future possible arrangements. 26.  The Committee considered that the Group of 77 should continue to act in accordance with items 2 and 3, Section IV, Paragraph 89 of the Programme in terms of the on-going activities of the Group of77, specially now that the Caracas Programme of Action is entering a stage of accelerated implementation, and recommends to the Ministers that they issue directives in this respect. 27.  The Committee decided to discuss the mater of ‘Support Measures’ further in the next IFCC meeting in 1983. To this end, it was felt necessary for the various chapters of the Group of 77 to address themselves to the problem, and to make known their respective views through the Chairman of the Group of 77 in New  York, who in turn could be requested to update the above-mentioned document accordingly. 28. The Committee agreed that the Action Programme for Economic Cooperation of the Non-Aligned Countries and the Caracas Programme of Action should be harmonized and coordinated so that they reinforce one another. The Committee stressed the need to avoid duplication and waste of efforts and resources as a consequence of the simultaneous activities of the Group of 77 and the Movement of Non-Aligned Countries in regard to ECDC and TCDC programmes. 29. The Committee took note of the Report of the Working Party on Trade Expansion and Regional Economic Integration among Developing Countries and in this regard encouraged all possible coordination and harmonization of activities carried out at subregional and regional levels to achieve the objectives of the Caracas Programme of Action. 30.  The Committee held a positive exchange of views with the UNCTAD Secretary-General on the collaboration that UNCTAD has given and will continue to give to economic cooperation among developing countries, in particular as regards the forthcoming implementation of the mechanisms envisaged by the Group of 77 for the negotiation of the GSTP. 31.  The Committee expressed its regrets for the delays that occurred in the implementation of the Development Information Network (referred to in Paragraph 87 of the Caracas Programme of Action), reiterated its support for the initiatives, and, in particular, for the implementation of the pilot project which would be monitored by the Committee.

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32.  The Committee agreed to submit to the next Ministerial Meeting the following conclusions and recommendations: (a)  Although organizational tasks caused a delay in the holding during 1981 of the meetings indicated in the timetable of sectoral technical meetings, the number of those held in 1982 so far and those convened or in the process of preparation, confirms an accelerating important positive effort from all participants, especially those countries offering venues for the meetings, giving broad and generous support to their fulfillment and thus to the ultimate results now present in the work of the IFCC. To this end, it was recommended: (i) to call on all member countries to continue their efforts to offer venues which will allow the envisaged calendar of meetings to be completed, or other meetings which may arise from the follow-up of those already held; (ii) to reiterate the importance of the participation of the largest possible number of interested countries in the sectoral technical meetings to widen the scope of this joint effort and the benefits expected from it as much as possible; and (iii) to revise the timetable of meetings adopted in Caracas to facilitate offers of venues while giving it the flexibility to consider other meetings which may arise as a result of the annual Ministerial Meeting. Subsequent changes may be made by the Chairman of the Group of 77 in New York, in close coordination with the Chairmen of the chapters of the Group of 77 in other cities. The possibility exists that some technical meetings would be held in the various Group of 77 sites, if necessary, for the completion of the calendar of meetings drawn up in Caracas, before the review and revision expected to be made next year. (b)  With respect to the work methodology used at this first Committee meeting and the experience to be drawn from it for future activities, it was felt that the tasks of coordination and follow-up would be considerably facilitated by the adoption of the following recommendations: (i) When the Chairman of the Group of 77 in New York, furnishing the pertinent chapters of the G-77 distributes to all member countries the reports of meetings of experts held pursuant to the Caracas Programme of Action (see item g, Paragraph 96, Chapter III of this Report), he may suggest that Governments of non-participating countries respond with their written comments and viewpoints on the results of such meetings; (ii) Countries participating in technical meetings as well as those which decide to accept their results either totally or partially, must communicate to the Chairman of the Group of 77 in New York, directly or through the corresponding chapters, periodically or when necessary, the measures or actions eventually decided on by them for the implementation of the results reached in the respective sectoral meetings; (iii) The responses and/or information from governments mentioned in (i) and (ii) above will be duly processed by the Chairman of the Group of 77 in New York and by the Core of Assistants and distributed to all member governments before the next Session of this Committee; and (iv) The aforementioned elements as well as the conclusions and recommendations of the sectoral evaluation meetings (item 2, Section I, Paragraph 89 of the Caracas Programme of Action) will be extremely useful for the examination of the technical reports brought to the Committee for consideration during the next session. (c)  With regard to the strengthening of coordination between the Group of 77 in New York and the chapters of the Group of 77 in other cities, the Committee believes that the two annual coordination meetings of the Chairmen mentioned in the Caracas Programme of Action should be held, if possible, during the second regular session of ECOSOC in Geneva, and in New York towards the beginning of the New York Group of 77 calendar year. Moreover, the

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chapters should also have in their respective fields the most active participation possible in all activities and actions envisaged in the Caracas Programme of Action, effectively keeping up a permanent contact among all Chairmen of the respective groups. (d)  With regard to the economic and technical cooperation programmes of the Group of 77 and the Movement of Non-aligned Countries in sectors common to both, the Committee agreed on the importance of emphasizing the need to undertake the greatest and most effective efforts to ensure the adequate coordination and harmonization of activities in order to avoid unnecessary duplication and obtain the best results as regards the objectives set forth in both programmes. Also, any development or progress in sectors in both programmes of economic and technical cooperation should be maximized for mutual benefit. (e)  With regard to the problem of ‘Support Measures from International Organizations to ECDC’, the Committee decided to review this matter at its next session in 1983, taking into consideration the action envisaged in Paragraph 26 and 27 in Chapter I of this Report.

Chapter II Consideration of Reports of ECDC Sectoral Meetings 33.  The Committee was impressed by the initiatives taken on a wide front of actions aimed at the effective implementation of the Caracas Programme of Action. The Committee was convinced that the recommendation of the sectoral meetings as well as the comments made at this meeting provided promising prospects for future action.

A. Trade 1.  Global System of Trade Preferences (GSTP) 34.  The Committee considered the Report of the Meeting of Governmental Experts on Economic Cooperation among Development Countries, convened in Geneva on 19–28 July 1982, paying particular attention to the Draft Declaration on the Global System of Trade Preferences among Developing Countries, as formulated and adopted by the Experts Group. The report was introduced by the delegation of India. 35.  The Draft Declaration which called for the launching of the GSTP also defines the guiding principles and rules in the conduct of negotiations among the developing countries. 36.  The Committee reiterated its full support for the Caracas Programme of Action and decided to keep the progress of the Programme under review. It was stressed, with regard to Paragraph 4 of the Introduction to the Caracas Programme, that the occasion of the forthcoming GATT Ministerial Meeting and UNCTAD VI should give rise to coherent and broadly based collective action of the Group of 77 in order to ensure that the industrialized countries respond meaningfully to the needs and concerns of the developing countries. 37.  The point was also made that GSTP should complement and reinforce efforts of the subregional, regional and interregional economic groupings. 38.  The Committee also noted that the specific principles which shall provide the basic guidelines for the GSTP negotiations are embodied in Paragraph 1 of the Draft Declaration.

Actions taken by the Committee 39.  The Committee endorsed the Draft Declaration for adoption by the Group of 77 Ministerial Meeting which will meet in New York in September 1982. It also expressed the collective hope that the GSTP negotiations could be launched within the envisioned time framework which, under the Draft Declaration, should begin by early 1983.

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40.  The Committee also endorsed the follow-up action proposed by the governmental experts and recommended to the Ministers of the Group of 77 to take appropriate measures that would enable the UNCTAD Secretariat to provide all the necessary administrative and technical support for the conduct of the GSTP negotiations.

2.  State Trading Organizations (STOs) 41.  The Committee considered the Report of the Asian Group of the Group of 77 Regional Meeting of State Trading Organizations held in Jakarta on 25–29 January 1982, and the Report of the International Symposium of State Trading Organizations of Developing Countries held in Ljubljana, from 29 March to 2 April 1982. The former was introduced by the delegation of Indonesia while the latter was presented by the delegation of Yugoslavia. 42.  In compliance with the mandate under Paragraph 8 of the Caracas Programme of Action that meetings aimed at developing a programme of mutual trade among STOs should be organized at the subregional, regional and interregional levels on a regular basis in order to orient the work being undertaken by the international community to promote cooperation among STOs as well as to review their joint efforts, a meeting was held separately by the Asian Group of the G-77 in Jakarta, Indonesia. 43.  Among others, the Asian Meeting recommended the exchange of trade information among STOs; cooperation in the training of management personnel of STOs; and expanded trade through STOs in rice, cement, tea, vegetable oils and other items that may be agreed upon in the future. 44.  A symposium was held in Ljubljana, Yugoslavia attended by sixty-nine (69) STO participants coming from various regions. 45.  The most interesting result of the Symposium in Ljubljana was the creation of a Steering Committee composed of nine STOs mandated to work out the necessary modalities for an institutional framework for STOs, the ‘statutes’ of which should be elaborated in the near future. 46.  The Committee noted that Asia and Latin America have held their respective meetings to discuss areas of cooperation among STOs. The Committee also expressed its appreciation for the opportunity given to the heads of STOs of developing countries to use the headquarters of the International Centre for Public Enterprises (ICPE) in Ljubljana, Yugoslavia in conducting the symposium. These initiatives having been noted, the Committee stressed the need for a similar meeting for Africa. The Committee welcomed the information that the Economic Commission for Africa has initiated steps to marshall resources for the early realization of plans to convene such a meeting for Africa. 47.  Delegations from other regions expressed shared interest in certain concerns of the Asian Group, especially with respect to exchange of trade information and cooperation in the training of management personnel. It was pointed out that cooperation in the training of personnel could be adequately undertaken given an inventory of STO training and technical capabilities. 48. The Committee noted that completion of the publication of the UNCTAD Secretariat Handbook on STOs in mimeographed edition. The need for an updated and expanded STO handbook providing specific information required in exploring the possibilities for expanded trade among STOs was stressed. In this regard, the Committee underscored the need for STOs themselves to respond positively to the questionnaires circulated by the UNCTAD Secretariat in order that a handbook that suits the needs of the STOs may be produced.

Actions taken by the Committee 49.  The Committee endorsed the recommendations of the Jakarta Meeting for adoption by the forthcoming Ministers Meeting in New York.

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50.  The Committee took note of the ‘Report of the International Symposium of State Training Organizations of Developing Countries’ including the recommendations specified therein, and agreed to submit the Report to the forthcoming Ministerial Meeting in New  York for information.

B.  Science and Technology 51.  The Committee considered the Report of the Meeting of Heads of National Science and Technology Agencies in Developing Countries held in New Delhi on 3–6 May 1982. The report was introduced by the delegation of India. 52. The Committee took note of the Report and cited the accomplishments of the Meeting, including the identification of priority areas for cooperation. 53.  The Committee felt that the question of the use of the proposed Centre for Science and Technology for the Non-Aligned and other Developing Countries in coordinating follow-up action should be examined by the Group of77 in New York within the context of harmonization of ECDC programmes of the Non-Aligned Movement and of the Group of 77. 54.  It was also clarified that the reference to the utilization of ECDC funds for meeting the costs of international travel relates to national ECDC funds and not to the Group of 77 ECDC Account in New York. 55. The Committee took note of the Report of the Experts Group of Project Development Mechanism for Techno-Economic Cooperation in New Delhi on 1–3 July 1982, and requested that the proposal be further examined in their respective capitals with the view to facilitating consideration by the Group of 77.

Actions Taken by the Committee 56.  The Committee endorsed the following main recommendations for adoption at the Ministerial Meeting of the Group of 77 in New York: (a)  the need to ensure an annual expenditure of at least 1 per cet of a developing country’s GNP by 1990 for national scientific research and development; (b)  the identification of focal points that will provide specific framework for concrete cooperation arrangements among the developing countries; (c)  the creation of Action Committees based on the identified priority areas which shall study the recommendations contained and endorsed in the Reports at the IFCC meeting, as well as serve as coordinating body for follow-up actions in the assigned areas; (d)  the need for expanded cooperation among the national scientific and technological institutions which have been established or may be established with a view towards collaborative efforts in education, training and research among the scientists/experts/technologists of the Group of 77 countries; and (e)  the need for countries to host the meetings of Action Committees in those priority areas which have no convenors at present.

C.  Food and Agriculture 57.  The Committee considered the Report of the Group of Experts Meeting on Food Security Reserve Scheme of the Group of 77 held in Manila on 16–19 August 1982. The Committee noted the proposal for the continuation and intensification of regional consultations to arrive at specific recommendations in establishing schemes for acquiring and maintaining food reserves at the

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regional and subregional levels. The results of such consultations would be brought for consideration of the second ECDC Experts Group Meeting to be held not later than April 1983. The report was introduced by the Philippines delegation. 58.  The Committee reviewed regional initiatives on Food Security Reserve Schemes such as in SAHEL, SELA, SADCC, Arab Organization for Agricultural Development, Lagos Plan of Action, and ASEAN Food Security Reserve Scheme. The ASEAN Model was cited as a concrete example for setting up such schemes among developing countries in the spirit of ECDC. 59.  The Committee noted that increased food production is a precondition for attaining national food security and collective self-reliance among developing countries. In this regard, it would be useful to examine ways and means of strengthening cooperation among developing countries in the area of technology for increasing food and agricultural production. 60.  The Committee reaffirmed the need to resume talks on an international grains agreement. In the interim, efforts to set up developing countries’ own reserves should be pursued in accordance with the developing countries’ national policies. 61.  It was further suggested that an exchange of basic food information among developing countries on national food policies should be intensified as a preparation for the next experts group meeting. Such exchange of information may initiatively be held at the bilateral level. 62.  The Committee, noting the difficulty in replenishing the funds of the International Fund for Agricultural Development (IFAD) due to slow payments of contributions by the developed countries agreed to inform their relevant authorities of such situation for appropriate action. 63.  The Committee was of the view that trade liberalization in the developed countries would contribute towards the promotion of world food security.

Action Taken by the Committee 64.  The Committee endorsed the recommendations of the Manila Report for the adoption of the Group of 77 Ministerial Meeting in New  York, including the recommendation that the next ECDC experts group meeting be held not later than April 1983.

D.  Development and Exploitation of New and Renewable Sources of Energy 65.  The Committee considered the Report of the High level Meeting on New and Renewable Sources of Energy of the Caracas Plan of Action on Cooperation among Developing Countries held in Rio de Janeiro on 31 May–4 June 1982. The report was introduced by the delegation of Brazil. 66.  The High level Meeting on New and Renewable Sources of Energy (NRSE) adopted the Rio de Janeiro Plan of Action which directs developing countries to cooperate in: (a) energy planning; (b)  assessment of resources; (c)  research, development, and demonstration; d) selection, transfer, adaptation, and application of technologies; and (e) information and training. 67.  The Committee took note of five national papers submitted in implementation of the Rio de Janeiro Plan of Action. Under the Rio de Janeiro Plan of Action, participating countries are to prepare a short paper on some of the following subjects: (a)  areas in which the country can offer cooperation to other developing countries; (b) results and developments in the field of NRSE of interest to other developing countries; (c)  areas in which the country is receiving cooperation/assistance from developed and developing countries;

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(d) further areas in which the country seeks cooperation from other developing countries; and (e)  existing or envisaged national financial arrangements to support cooperative activities with other developing countries. 68.  The five countries which have so far complied with the above are: Brazil, India, Republic of Korea, Peru, and Venezuela. Other developing countries were called upon to do likewise. 69.  The following points were clarified: (a)  Existing national facilities should be used since many technologies for the utilization of new and renewable sources of energy have been developed by developing countries; (b)  Cooperation among developing countries in NRSE does not mean that the developed countries are being relieved of their responsibility in the global effort to enable developing countries to meet their energy requirements for the development of their economies; (c)  The developing countries are not adequately endowed to move by themselves in this particular endeavour. In this context, the need for establishing an energy affiliate of the World Bank was stressed. 70.  It was proposed that the Meeting of the Group of Experts that will examine cooperation in research and development of NRSE in accordance with Paragraph 49(a) of Caracas Programme of Action should be convened as early as possible by the Chairman of the G-77.

Actions Taken by the Committee 71.  The Committee endorsed to the Group of 77 Ministerial Meeting in New York the report of the High level Meeting with the understanding that all financial implications of the Rio de Janeiro Plan of Action would be referred to the next IFCC meeting. 72.  The Committee agreed that global cooperation in the development and exploitation of new and renewable energy sources is best catalyzed through existing regional arrangements such as OLADE and ECLA, those under ASEAN and ESCAP, and the newly established African Center for Solar Energy. Subregional, regional, and interregional initiatives so far undertaken augur well for the establishment of a cooperation network for exchange of information emanating from national focal points. There is a need, at this point, to strengthen cooperation at the subregional regional and interregional levels for this purpose. To this end, it was stressed that Action Committees would constitute a useful mechanism.

E. Finance 73.  The Committee considered the Report of the Meeting of Experts of the Group of 77 on Finance and Balance of Payments held in Baghdad on 1–4 March 1982, concerning the proposal to establish a World Fund as the mechanism to alleviate the financial burdens imposed on the developing countries due to the inflation imported from developed countries and adjustments in oil prices. The report was introduced by the delegation of Iraq. 74. The Committee agreed that the issue on the establishment of a World Fund is crucial. However, the Committee raised certain points regarding the procedure of implementing the proposal and the technical requirements involved. 75.  Some delegations expressed the view that the proposal could be endorsed by the Meeting and submitted to the Ministers of the Group of 77 at their meeting in September 1982 during which the contents of the proposal could be analyzed further. Thereafter, it could be left to the Ministers to decide on the next appropriate action to take, such as the timing of consultation with the developed countries if it is deemed appropriate, or look into the possibility of convening an experts meeting.

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A few delegations considered that a decision could not be taken prior to having the support of the developed countries to the proposal. A few delegations also pointed out that the fund might be a duplication of existing financial institutions and might represent a risk of proliferation of the same.

Action Taken by the Committee 76.  The Committee noted with appreciation the recommendations of the experts group meeting in Baghdad and agreed to submit the proposal to the Ministers Meeting of the Group of 77 in New York for further consideration. 77. The Committee also considered the Report of the Rapporteur-General on the Jamaica Meeting on ECDC Finance held on 26–31 March 1982 in Kingston, Jamaica, pursuant to the decision adopted at the Caracas High level Conference on Economic Cooperation among Developing Countries, and within the context of the terms of reference as contained in Paragraphs 66(b) and 79 of the Caracas Programme of Action. 78.  The “Report of the Rapporteur-General on the Kingston Meeting on ECDC Finance was introduced by the delegation of Jamaica which also informed the meeting of the progress made with respect to the preparation of a technical study on the feasibility of a bank for developing countries. 79.  Many delegations expressed the view that the establishment of a South-South Bank was important. 80.  During the discussion, distinction was made between Part I and Part II of the report as different views were expressed on the results of the Kingston Meeting. 81.  In this regard, many delegations suggested that the Committee should only take note of Part I while others were of the view that Part II, which contains the outline of the feasibility study, should be approved and endorsed by the Committee and submitted to the Ministers of the Group of 77. On the other hand, some delegations felt strongly that the outline was limited in scope. Nevertheless, it was agreed that the outline could serve as a general framework for the feasibility study. It was stressed strongly that there is a need for the active participation of the developing countries’ experts in the preparation of the study.

Actions Taken by the Committee 82. The Committee took note of the Rapporteur-General’s Report of the meeting on ECDC Finance held in Jamaica 26–31 March 1982 and recommended to the Ministerial Meeting of the Group of 77 to be held in September 1982 that a technical study on the feasibility of the bank for developing countries be undertaken on the basis of Part II of the Report as a general framework, without prejudice to the range of the functions to be covered by the proposed bank. 83.  The Committee agreed to request the Secretary-General of UNCTAD, in close cooperation with interested financial institutions of the developing countries, to give all necessary assistance to facilitate the completion of the study by preparing the appropriate technical documentation. The study will be prepared by a Group of Governmental Experts of the Group of 77. It should be submitted through the Chairman of the Group of 77 in New York through the IFCC in its 1983 meeting.

G-24 Report on ECDC 84.  The Committee took note of the section dealing with ECDC in the Report of the Twentyfourth Meeting of the Finance Ministers of the Intergovernmental Group of 24 on International Monetary Issues held in Helsinki on 11 May 1982.

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F. Capital Goods 85.  The Committee considered the Report of the Meeting on Capital Goods among Developing Countries adopted in Algiers on 10–13 May 1982. The report was introduced by the delegation of Algeria. 86.  The Report contained recommendations for cooperation among developing countries as producers of industrial products. It also contained recommendations for cooperation among developing countries in the fields of training and industrial technology.

Actions Taken by the Committee 87.  The Committee noted with appreciation the offer of Algeria to hold an exhibit on capital goods exclusively for the developing countries as a means to effectuate the flow of trade of capital goods. 88.  The Committee also noted with appreciation the efforts of India, Tanzania, and Brazil to serve as focal points in their respective regions for the promotion of capital goods industry among developing countries. 89.  The Committee further noted with appreciation the offer of the Indian Government to host seminars and workshops on the following sectors: electrical industry (e.g., power generation), machine tools, materials handling equipment, general mechanical engineering industry (e.g., cranes, pumps, compressors), machinery for processing plants (chemical and fertilizer), machinery and cement plants, sugar machinery and sugar plants. 90.  The Committee endorsed the ‘Report of the Algiers Meeting on Capital Goods’ for consideration by the Group of 77 Ministerial Meeting in New York.

G.  Cooperation in the Development of Human Resources for Industrialization 91.  The Committee considered the Report of the High level Meeting of Officials Responsible for Industrial Manpower Training in Developing Countries held in Bucharest on 31 May to 4 June 1982. The Report was introduced by the delegation of Romania. 92.  The Committee noted the recommendations of the Bucharest Meeting which called for the strengthening of industrial manpower training capabilities at national, subregional and interregional levels. The Experts Meeting in Bucharest considered it desirable to have a sufficient number of centers of excellence that can meet the needs of developing countries. The establishment and operation of such centers of excellence should be based on the principles of multilateral cooperation, both at the regional and interregional levels, with active participation by relevant international organizations such as UNIDO, ILO, UNESCO and IAEA.

Actions taken by the Committee 93.  The Committee agreed that the means of financing the cooperation for development of manpower training in industry should be considered within the framework of TCDC which will be the subject of the meeting to be held in Tunis on October 25–29, 1982. 94.  The Committee took note of the information given by the UNIDO representative that a global consultation on industrial manpower training will be held from 22–26 November 1982 in Stuttgart, Germany under the auspices of UNIDO, ILO, UNESCO and urged all delegations at the Manila Meeting to participate in this consultation to the fullest possible extent. 95.  The Committee adopted the recommendations of the Bucharest Meeting, bearing in mind the difficulty of arriving at a decision on the matter of creating an international fund for the purpose of meeting the financial requirements of cooperation in the training of manpower.

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Chapter III Recommendations on Specific Matters A.  Guidelines for the Convening and Holding of Technical Meetings Envisaged in the Caracas Calendar to be held in Member Countries of the Group of 77 as well as other Technical ECDC Meetings Arising from the Annual Ministerial Meetings of the Group of 77 96.  With regard to the holding of technical meetings envisaged in the Caracas Programme of Action, these meetings will observe the following guidelines to the extent possible: (a)  Offers of venue for the meeting will be transmitted to the Chairman of the Group of 77 in New York, who will in turn inform the other chapters of the Group of 77 (Geneva, Vienna, Rome, Paris, etc.) in order to properly coordinate such offers. The convening of the meetings will be decided in consultation with the offering country. The Chairman of the Group of 77 in New York will notify all the member countries. (b)  There will be an intervening period of a minimum of 3 to 4 months from the time of acceptance of the venue to the actual holding of the meeting, in order to ensure necessary preparations. (c)  Upon submission of an offer of a venue, the country making the offer will present a draft agenda which will be reviewed by the Chairman of the Group of 77 in New York, in consultation with the corresponding chapters. Once the venue has been decided the text of the provisional agenda resulting from such consultation and the notice of convening will be communicated to member countries. The agenda will be adopted by the participants at the opening of the meeting. (d)  It is understood that in accordance with item 1, Section IV, Paragraph 89 of the Caracas Programme of Action, the cost involved in convening experts groups and other meetings concerning ECDC, wherever these cannot be met through an international organization, are expected to be met by the country hosting the meeting. (e)  When countries receive the convening notice and the provisional agenda of a meeting, normally no less than eight weeks before its opening, they should advise the Chairman of the Group of 77 in New York of their interest in the meeting. They shall likewise indicate the number of members that will attend the meeting and, if possible, the composition of delegation to facilitate the organizational tasks (meeting places, interpretation, hotel accommodations, etc.) on the part of the host country, as well as the receipt of documentation within the time indicated in letter (f) below. (f)  The host country shall be responsible for the preparation of the basic documentation for the meeting, and the preparation of which should be in coordination with the Chairman of the Group of 77 in New York, in consultation with the Chairmen of the respective chapters of the Group of 77. Said basic documentation in at least two of the working languages, and if possible, in all the working languages shall be distributed at least six weeks before the meeting to interested countries. A set of documents should also be sent to the national focal points designated by governments. The documents should be in accordance with the coding system used at the First Meeting of the IFCC in Manila. (g)  The reports of each meeting must immediately be submitted in all the working languages of the Group to the Chairman of the Group of 77 in New York who, in turn, would submit them to all other chapters of the Group of 77. The Chairman of the Group of 77 in New York, will have the reports of each meeting reproduced and distributed to every member country of the Group of 77 within a maximum of six weeks from its receipt, with the request that if

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governments consider it appropriate, they could submit to him any comment or observation. An additional copy of these reports should be sent to the national focal points designated by governments.

B.  General Guidelines for the Action Committees Envisaged in the Caracas Programme of Action 97.  Since there have been proposals included in the reports resulting from several past meetings of experts with regard to the utilization of this mechanism, as envisaged in item 3, Section II Paragraph 89 of the Caracas Programme of Action on institutional aspects i.e., Action Committees and other similar operational instruments, the Committee, bearing in mind the principle of flexibility and the experiences from its past application by various regions, adopts the following general guidelines: (a)  Action Committees will be composed of 3 or more member countries of the Group of 77 which agree to their establishment. They will be temporary mechanisms and will be dissolved upon the attainment of their objectives, at which time a permanent mechanism of cooperation may be evolved, including the possibility of multinational entities of developing countries. (b)  Action Committees shall assist the participating states, acting jointly in the formulation and implementation of specific programmes in areas and activities identified by the Group of 77 in the Caracas Programme of Action. The Committees will be open to participation by all member countries of the Group, subject to conditions of accession agreed upon. (c)  The member countries interested in the creation of an Action Committee will notify the Chairman of the Group of 77 in New York and, if necessary, the Chairmen of other corresponding chapters of the Group of 77. The Chairman of the Group of 77 in New York will transmit this information to all member states to enable interested member countries to communicate with the original proposing countries. When the Action Committees shall have been set up, the contents of the constitutive instruments will be communicated to the other member countries through the Chairman of the Group of 77 in New York. (d)  The constitutive instruments of Action Committees may contain one or more of the following elements: -   Participating member states; -   Objectives, specific programmes and projects for cooperation, timetable and work procedures; -   Duration envisaged; -   Administration facilities, venue and financing; -  Links to the Group of 77 including the submission of an annual report on its activities.

C.  National Focal Points for ECDC 98.  The Committee took note of the existence of about 50 national focal points, and agreed to recommend to those countries which have not done so to designate their respective focal points, in accordance with their structures and legal dispositions, in order to have an effective mechanism for the coordination, promotion and information on matters pertinent to ECDC in accordance with the objectives and guidelines of the Caracas Programme of Action.

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D.  National Research and Training Centers of Multinational Scope 99.  Based on past experience, the specific recommendations recently formulated in the fields of science and technology at the New Delhi Meeting and the guidelines adopted on the same occasion as regards the operation of those Centers, the Committee: (a)  stressed the importance of strengthening and providing guidance to the existing national centers, to allow them to project themselves interregionally and to maximize their usefulness at regional and subregional levels; (b)  called on those countries where these centers are not yet in existence to consider the possible creation of national research and training centers in areas of ECDC in which they are interested and for the mutual benefit of other countries that can take advantage of their activities.

E.  Operation of the Group of 77 Account for ECDC 100.  Fourteen months after its establishment, the Account has received contributions amounting to US$343,000. In addition, contributions pledged as of 6 August 1982, amounted to US$237,000. Several announcements about new contributions by participating countries, some of them to be made on a yearly basis, were made and this was noted with satisfaction by the Committee. In relation to this and to the modalities for the operation of the Account adopted by the Group of 77 in New York, it was decided to: (a)  call on those countries that have not yet done so to announce during the next Ministerial Meeting of the Group of 77 or as soon as possible, their voluntary contributions to the Account of the Group of 77 for ECDC for the financing of the activities envisaged in the Caracas Programme of Action; (b)  request those countries which will announce contributions as well as those which have already done so and those which have even credited them, to indicate as soon as possible the proportion of their contributions which can be used for the purposes mentioned in the second part of item 5, Section IV, Paragraph 89 of the Caracas Programme of Action; (c)  reiterate, without prejudice to the voluntary nature of their contributions, the scope and continuity of the expenses to be met with available Account funds or those forthcoming arising from the annual costs of the collation; eventual translation into the working languages of the Group of 77, reproduction and distribution of the documentation regarding the technical meetings and the mechanisms of sectoral evaluation; follow-up and coordination envisaged in the Caracas Programme of Action, including the necessary arrangements for the handling of documentation; (d)  recall the importance for the future operation of the Account, of the establishment of a comprehensive estimate of the expenses which are to be met with available funds, taking into account indications given by donor countries for the special use of their contributions; (e)  indicate the importance of drawing definite conclusions from the use of funds available or to be contributed during the forthcoming period in order to continue the examination of other initiatives with respect to the eventual use of ECDC funds for other purposes which may arise from the implementation of the sectoral activities envisaged in the Caracas Programme of Action.

F.  Core of Assistants to the Chairman of the Group of 77 in New York 101.  Although only three of the assistants mentioned in the Caracas Programme were appointed by the governments and made available to cooperate with the Chairman of the Group of 77 in

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New York for ECDC purposes, the Committee was pleased to note the work undertaken by these officials, as well as the quality of documentation presented at this meeting, and agreed to: (a)  express its thanks to the governments which have assigned and paid officials through their permanent missions in New York solely to give their full assistance to the Chairman of the Group of 77, including the preparatory work for the first IFCC meeting; (b)  recommend that the Group of 77 in New York, when it takes up the revision of the Scheme for the Constitution of the Core of Assistants to the Chairman of the Group of 77 bear in mind the principles of rotation and continuity, of the assistants appointed by governments, as well as the desirability of providing the full complement of the Core of Assistants to the Chairman of the Group of 77; (c)  stress that, at the start of the next annual period of rotation of the Chairmanship of the Group of 77 in New York, namely on 1 October 1982, the Chairman be assisted from the very beginning of his term by the maximum possible number of assistants in accordance with the provisions of the Caracas Programme of Action; (d)  express the need felt by the Committee for facilitating the presence of one or more of the assistants at the technical sectoral evaluation, follow-up and coordination meetings pursuant to the guidelines given by the Chairman of the Group of 77 in this respect, with a view to allowing a wider fulfillment of the responsibilities expressly assigned by the Caracas Programme of Action to the Group of77 in New York; (e)  provide adequate facilities to the Core of Assistants to enable them to carry out their work within the framework of the Caracas Programme of Action.

Other Matters 102.  The Philippines urged developing countries to sign and ratify the Agreement establishing the Common Fund to enable the Agreement to enter into force immediately. In this connection, the Philippines reiterated its offer to host the Headquarters of the Common Fund. The Meeting welcomed the offer and recommended that it be endorsed by the Group of 77 Ministerial Meeting in New York in September 1982 in keeping with the agreement that the site of the Fund should be in a developing country. 103.  In the implementation of the Caracas Programme of Action, the Meeting further noted the need for considering the implications of development on man as well as his potential and actual contributions to this process. The Meeting was informed that the Philippines has inscribed the inclusion of a supplementary item in the agenda of the 37th UNGA entitled, ‘New International Human Order.’ Pending receipt of more details relating to this proposal, the Meeting was inclined to give it sympathetic consideration.

Closing Ceremonies 104.  The Meeting considered and adopted the Report henceforth known as the ‘Manila Follow-Up Action for ECDC’.

Acknowledgement 105.  The Meeting expressed appreciation to the Philippines Government and its people for the hospitality and excellent arrangements provided for the Meeting. 106.  The Honourable Minister Alba, on behalf of the Government and the people of the Republic of the Philippines, expressed appreciation for the invaluable contributions of the delegates for the success of the Meeting.

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2.  Second Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-II), Tunis, Tunisia, 5–10 September 1983 a. Final Report I.  Introduction and Organizational Matters A. Introduction 1.  Pursuant to the Caracas Programme of Action (CPA) and at the invitation of the Government of Tunisia, the Second Meeting of the Intergovernmental Follow-up and Co-ordination Committee (IFCC-II) was held in Tunis from 5 to 10 September 1983. 2. The Meeting was attended by 69 delegations from the following Member States of the Group of 77: Afghanistan, Algeria, Argentina, Bangladesh, Benin, Bolivia, Brazil, Burundi, Chad, Chile, Colombia, Comoros, Congo, Cuba, Djibouti, Democratic People’s Republic of Korea, Democratic Republic of Yemen, Ethiopia, Egypt, Gambia, Guinea, Guatemala, Guyana, India, Indonesia, Iraq, Ivory Coast, Jamaica, Jordan, Kuwait, Lao People’s Democratic Republic, Lesotho, Lebanon, Socialist People’s Libyan Arab Jamahiriya, Mali, Malta, Morocco, Mauritania, Mexico, Nicaragua, Niger, Nigeria, Oman, Palestine Liberation Organization, Pakistan, Peru, Qatar, Republic of Korea, Romania, Rwanda, Saudi Arabia, Senegal, Somalia, Sierra Leone, Sri Lanka, Sudan, Syrian Arab Republic, Thailand, Togo, Tunisia, Uganda, United Arab Emirates, United Republic of Tanzania, Upper Volta, Venezuela, Republic of Yemen, Yugoslavia, Zaire and Zimbabwe. 3.  Representatives from the following organizations and research institutes of the developing countries also attended the Meeting: Arab League, Arab Monetary Fund, Economic Community of the Great Lakes Countries (CEPGL), Economic Community of West African States (ECOWAS), International Centre for Public Enterprises in Developing Countries (ICPE), Research Centre for Cooperation among Developing Countries (RCCDC), Third World Forum, Centre for Economic and Social Studies of the Third World (CEESTEM). 4.  Representatives from the following offices and organizations of the United Nations System and other international organizations participated as observers: DIEC, DIESA, UNCTAD, UNIDO, UNDP, ILO, FAO, UNESCO, WHO, ESCAP, ECA, and ECLA, Intergovernmental Bureau for Informatics (IBI).

B.  Election of Officers 5.  At its opening session, the Intergovernmental Committee elected by acclamation H.E. Mr Ahmed Ben ARFA, Secretary of State of the Ministry of Foreign Affairs of Tunisia, in charge of International Co-operation, as Chairman. The Committee also elected by acclamation H.E. Mr

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Felipe JARAMILLO of Colombia and H.E. Mr Manaspas XUTO of Thailand as Vice-Chairmen.

C.  Adoption of the Agenda and Organization of Work 6.  The Intergovernmental Committee adopted the draft agenda. 7.  The Intergovernmental Committee also decided to establish two sessional Committees and to allocate item 3 to Committee I and items 4, 5 and 6 to Committee II. The two Vice-Chairmen, H.E. Mr Felipe Jaramillo and H. E. Mr Manaspas Xuto served as Chairmen of Committee I and Committee II respectively. 8.  Subsequently, Committee II decided to establish an informal Working Group to take up the consideration of item 5(e) under the Chairmanship of H.E. Mr Indrajit S. Chadha of India. 9.  The Bureau of the Intergovernmental Committee was assisted by the Core of Assistants to the Chairman of the G-77 in New  York, members of which also served as Secretaries of the two Sessional Committees of the Intergovernmental Committee.

D. Documentation 10.  The Intergovernmental Committee had before it the Reports of technical meetings held in pursuance of the implementation of the CPA since IFCC-I as well as other documentation prepared by the Office of the Chairman of the G-77 in New York.

E.  Opening Statements 11.  In his keynote address H.E. Mr Beji Caid ESSEBSI, Minister of Foreign Affairs of Tunisia, stated that the developing countries should in their development efforts depend increasingly on their endogenous and collective capabilities, particularly since these countries, taken together, possess the required human and material resources to do so. The Caracas Programme of Action and its on-going implementation constituted the best proof of the determination of developing countries to establish the essential foundations for a wider and deeper South-South cooperation. 12.  He underscored the unique opportunity provided by IFCC-II to assess the achievements of the last two years and to put forward suggestions for joint undertakings in the future, bearing in mind the present realities of developing countries and the stage reached so far in the North-South dialogue, the necessity of which remains valid but which is still in the difficult stage it has been in for several years despite the political will of the developing countries and the wisdom they have shown in their position. 13.  In the light of this situation the Foreign Minister emphasized the need to further strengthen South-South cooperation. He therefore urged the Group of 77 to move forward from the stage of programmes and objectives to one of practical projects, particularly at the regional and sub-regional levels. 14.  He further stated that effective coordination remained one of the essential tasks of the G-77 and suggested that the New York Chapter should be provided with additional resources commensurate with the magnitude of the responsibilities entrusted to it. He also cautioned on the need to avoid duplication of work and in this context asked whether it was useful to establish new economic bodies within the Group of Non-Aligned Countries similar to those stipulated in the Caracas Programme of Action. 15.  In his statement to the meeting, Ambassador Farooq Sobhan of Bangladesh, Chairman of the Group of 77 in New York, called for accelerated implementation of the CPA with a sense of determination. Collective self-reliance was both a political and economic necessity, he said.

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16.  He presented a detailed assessment of the progress achieved since IFCC-I in the implementation of the CPA and analyzed the difficulties experienced in the process. With the calendar of technical meetings under the CPA to be completed by the end of the current year, the implementation of the programme would enter a more action-oriented phase requiring ever more closer involvement of member states, particularly through their respective national focal points. The need for IFCC-II to give greater impetus to the national focal points is thus of the highest importance. 17.  The Chairman of the Group of 77 in New York observed that the growing political commitment to ECDC reflected the heightened awareness in developing countries of the importance of their efforts to promote and strengthen ECDC. This awareness needed to be fully reflected through the adoption and implementation of appropriate policy measures at national, sub-regional, regional and inter-regional levels. To this end, he enumerated a series of specific measures for consideration of the Committee for immediate implementation. 18.  He stressed the need for continuing efforts to further strengthen cooperation and coordination between the various Chapters of the Group of 77, to encourage greater involvement of the organizations and research institutions of developing countries and to enlist more active support of the U.N. System towards the implementation of the Caracas Programme of Action. 19.  The representative of India made a statement in his country’s capacity as Chairman of the Non-Aligned Movement. Statements were also made by the Secretary General of UNCTAD, and the Executive Secretary of ECLA on behalf of the Regional Commissions of the United Nations.

F.  Adoption of Report 20. At its closing session, the Second Meeting of the Intergovernmental Follow-up and Coordination Committee adopted the Report, as contained hereafter. The Chairman of the Meeting made a statement at the closing session.

G.  Hosting of IFCC-III 21.  The Intergovernmental Follow-up and Coordination Committee decided, after expressing its deep gratitude to the Government of Colombia for its offer to host IFCC-III, to hold its next session in Colombia in 1984.

H. Acknowledgement 22.  The meeting expressed deep appreciation to the President, the Government and the people of Tunisia for the hospitality and excellent arrangements made for the meeting. A resolution to this effect was adopted.

II.  Review of Results of Technical Meetings held during 1982–1983 and Follow-up Action A.  Technical Cooperation among Developing Countries 23.  The Committee considered the Report of the Meeting of Heads of National Agencies of Technical Cooperation among Developing Countries held in Tunis 25-29 October, 1982. The Committee also considered at the same time the Report of the Experts’ Meeting on the Multisectoral Information Network (MSIN) held in New York in May 1983 as a follow-up to the Tunis Meeting on TCDC. Both reports were presented by the Tunisian delegation.

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The main proposals of the report were: a)  the identification and strengthening of national TCDC focal points; b)  promotion of inter-enterprises cooperation and the drawing up of a model contract for the recruitment of experts from developing countries; c) the establishment of the Multisectoral Information Network (MSIN) for the Group of 77. 24.  Action Taken by the Committee a) The Committee endorsed the recommendations of the Meeting of Heads of National Agencies of Technical Cooperation and decided that the report be forwarded to the meeting of Foreign Ministers of the G-77 for approval. b)  The Committee also recommended to the meeting of Foreign Ministers for approval the results of the experts meeting on the Multisectoral Information Network (MSIN) and noted that care should be taken in its establishment to avoid duplication of existing information networks at the regional and global levels and further suggested that the MSIN should take advantage of existing or projected information carriers, such as TIPS/ DEVNET. 25.  The Committee considered the Report of the meeting on Model Contract for Experts and Inter-governmental Agreement for the recruitment of experts among developing countries held in Caracas 8-11 August, 1983. The report was introduced by the delegation of Venezuela which noted that neither the model contract nor the inter-governmental agreement was a rigid document but a flexible guideline for developing countries who may wish to engage in technical collaboration with one another. 26.  The model contract defined who could be termed an ‘expert’ and his rights and obligations in the recipient state while the inter-governmental agreement sought to provide a framework for the relationship between a supplier and recipient state on the subject of the recruitment of experts as part of technical cooperation among such states. 27.  In the discussion of this report many delegates highlighted three basic areas as the shortcomings of the report: a)  Its lack of balance. b)  Its rigidity as a result of its great detail. c) Its lack of provisions for training of local replacement or the so called counterpart component. 28.  Some delegations wondered whether it was useful to depart, as the model contract had done, from generally and universally accepted standards for the hiring of experts such as those in use by the UNDP. These delegations were of the view that apart from the terms of the model contract being too general, recruitment of experts should be made within the framework of inter-governmental agreements. 29.  Action taken by the Committee: a)  The Committee took note of the Report and requested that it be transmitted to member states of the Group of 77 by the Chairman of the Group of 77 in New York for their comments within a specific time frame. b)  An inter-governmental meeting should be convened by the Chairman of the Group of 77 in New York to consider further the Report and the comments of member states so as to finalize discussions on the issue. c) Such inter-governmental meeting was also requested to address itself to the issue of inter-enterprises cooperation, whose examination was not completed at the Caracas meeting due to lack of time.

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B.  Food and Agriculture 30.  The Committee noted with appreciation the comprehensive statement by the Chairman of the Group of 77 in Rome analyzing the alarming food and agricultural situation of developing countries and measures that must be taken to reverse or contain the situation and decided that the report should be circulated to delegations and member states. 31.  The Committee noted that the Second Experts Meeting on Food and Security which was recommended by the IFCC-I meeting in Manila had not taken place and underlined the importance of convening this meeting at an early date. The consensus view of delegations was that the Report on World Food Security by the Director-General of the FAO should not be regarded as a substitute for the expected results of the expert meeting mandated in Manila. It was felt, however, that the FAO Report might serve as a useful technical input to such a meeting. 32.  The Committee affirmed the high priority it attached to the Food and Agriculture sector and urged the stepping up of activities in implementing relevant decisions related to the Caracas Programme of Action in this field. 33.  Action taken by the Committee: a)  The Committee therefore called upon the G-77 in Rome, to convene the second expert group meeting on Food Security Reserve Scheme as soon as possible. b)  The Committee noted that the Group of 77 in Rome planned to convene the ECDC Global meeting on Food and Agriculture in Bucharest in mid February 1984.

C. Energy 34.  The Committee considered the Report of the Meeting of Experts of the Group of 77 on Technical Cooperation in Energy which was held in Vienna, May 23-27, 1983. This Report was presented to the Committee by the Chairman of the Group of 77 in Vienna who expressed that the meeting was marked by poor attendance of relevant experts. 35.  In its conclusion, the Report: a)  Called on Member States to establish or strengthen mechanisms for promoting energy planning activities and the collection of information at the national, sub-regional and interregional levels. b) Urged Member Mtates to assess present levels of technical and managerial personnel involved in energy programmes, identify as well as assess the required skills and knowledge and on the basis of these formulate appropriate training programmes. c) Requested member countries to identify institutions that could become centres of excellence. d)  Urged Member States to consider undertaking a study on the scope of existing national consultancy and advisory services to provide services on a sub-regional or regional basis in such areas as training in all areas of energy management, conservation and use. e)  Recommended that a list of research projects both planned or underway at the national level be compiled and if possible for arrangements to be worked out for the shared international financing of those projects having a common objective or end use. f)  Recommended that regional coordinating organizations dealing with energy similar to OLADE, OAPEC and ASCOPE could at the same time serve as links between the regions may be set up. g)  In addition to efforts aimed at establishing international, sub-regional and regional institutions in the field of energy, the report recommended that full use shall be made of other existing sub-regional and regional institutions that may play a role in the field of energy.

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36.  While some delegates complimented the quality of the Report, others felt that its recommendations were too general and therefore did not lend themselves to practical follow-up actions by member states. Delegates also stressed the need for standardization of information-related aspects of energy. It was generally felt that an inventory of National Research and Training Centres of Multinational Scope (NRTCMS) of developing countries in the field of energy be prepared by members states and made available through the Chairman of the G-77 in New York. 37.  Some delegations underlined the necessity to make explicit the objectives and the main fields of cooperation in this subject. In this respect, they stated that such cooperation should be mainly oriented to increase the self-reliance of developing countries and to ensure their energy transition. 38.  Action taken by the Committee: a)  The Committee took note of the Report and recommended that a second expert group meeting be convened that will produce specific and action-oriented proposals on technical cooperation in energy among developing countries. b)  The Committee also urged member states to make special efforts to send experts to this second meeting. 39.  The Committee considered the Report of the meeting on New and Renewable Sources of Energy held at ECLA headquarters in Santiago, Chile 4-8 July, 1983. The Report was presented by the Office of the Chairman of the G-77 in New York. 40.  In its conclusions the Report: a)  Urged every member country of the Group of 77 to designate a focal point for cooperation among developing countries in the field of NRSE. b)  Called upon member states to identify in a brief and concise format, areas of NRSE in which they need or can offer cooperation and circulate this information to all members of the Group of 77. c) Recommended Action Committees and National Research and Training Centres of Multinational Scope as possible instruments for cooperation between member countries. d)  Made an appeal for the participation and the greater use of existing national institutions, sub-regional and regional organizations, especially those in the field of energy such as OLADE, ASCOPE, the African Centre for Solar Energy and the UN Regional Economic Commissions. 41.  Many delegates attributed the lack of the new ground covered by this meeting in cooperation in NRSE among developing countries to the poor attendance and to the failure of member states to take certain actions recommended by the Rio de Janeiro meeting on NRSE in 1982. Some delegates, while welcoming the recommendation of the meeting that member countries provide on a standardized form certain data and identify areas in which they need or can offer cooperation in NRSE, wondered how the information would be processed and distributed to and between Member States. 42.  Action taken by the Committee: a) The Committee took note of the Report and the poor attendance of experts at the meeting. b)  The Committee also called on Member States to provide the required national information and data on NRSE as recommended in the report and forward these to the Chairman of the G-77 in New York for compilation and dissemination. 43.  The Committee considered the Report of the Meeting on Energy Development, Supplies and Rationalization of Consumption held in Bangkok, 15-19 August 1983. The Report was presented

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by the delegation of Thailand. It reiterated that energy is one of the elements that play a crucial role in the development of developing countries. 44.  The proposals contained in the Report called for supportive actions to make cooperation in the field of energy more effective, by means of the identification of requirements and of existing capabilities in developing countries. 45.  The report made the following specific recommendations in the field of fossil fuels: a)  Cooperation in solid fuels:  the recommended measures include close working relationships between national consultancy and operating organizations in the coal and solid fuels sectors; identification and enlisting of services of established coal research and development laboratories and institutes in developing countries having a long established coal industry, and cooperation in the area of capital equipment supply for coal production and utilization between developing countries that manufacture such equipment and those requiring it. b)  Cooperation in exploration and production of hydrocarbons. The experts recommended that mobilization of financial resources for energy exploration and development be made through existing international, regional and other financial institutions whose facilities should be fully utilized. Such mobilization would give further stimulus to existing and potential cooperative arrangements between developing countries. It was felt that the concept of creating the Third World Petroleum International, a consortium of state petroleum enterprises of developing countries for cooperation in petroleum exploration and development of hydrocarbons resources should be further studied. The experts also recommended the identification of existing energy training institutes in the developing countries and the promotion of national research and training centres of multinational scope. c)  Cooperation in Downstream Activities: The experts recommended to examine additional areas of cooperation by completing a study on downstream activities, such as refining, transport and distribution in line with the relevant provisions of the Caracas Programme of Action. d) It was recommended that cooperation among developing countries in conservation of energy resources, regulations and environmental protection should be encouraged. e)  It was recommended that information exchange should be promoted through the setting up of and Energy Information System, as a component of the Multisectoral Information Network (MSIN) and of the Technological Information Pilot System (TIPS). f) As regards manpower requirements and training, it was recommended to fully utilize available facilities and services of the UN System in the area of energy and to intensify the implementation of the recommendations of the meeting on Technical Cooperation in Energy. National ECDC Focal Points or the appropriate sectoral focal points are requested to identify areas of needs and available resources for training and education in the countries, and to submit relevant information to the Chairman of the G-77 in New York. g)  Direct contacts between existing sub-regional and regional organizations or arrangements concerned with Petroleum Cooperation, such as ARPEL, OLADE, ASCOPE, and OAPEC, should be encouraged. h)  It was recommended to establish an Action Committee to ensure further progress in cooperation among developing countries in the field of fossil fuels. The Action Committee should accomplish the following tasks: A.  To examine and make recommendation on the most suitable modalities of cooperation among developing countries in the field of fossil fuels. B.  To define characteristics and format for inventory of requirements and capabilities in the field of fossil fuels.

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C.  To contribute to the identification of promising cooperation projects in the field of fossil fuels. D. To promote implementation of identified projects by stimulating participation of interested developing countries in cooperative arrangements in accordance with the modalities defined in (a) above. 46.  In the discussion of this Report many delegates commended its proposals especially the initiative to set up an Action Committee. However, a number of delegations felt that the tasks and functions assigned to the Action Committee were too broad. 47. Some delegations therefore were of the view that the objectives of the proposed Action Committee be specified and adjusted accordingly when the Committee meets so as to identify concrete projects of cooperation. 48. The delegation of India informed the Committee that its authorities will circulate to all member countries through the Chairman of the Group of 77 in New York, a list of available training programmes in the field of energy. 49.  Action taken by the Committee: a)  The Committee noted with appreciation the proposals of the report. b)  The Committee also welcomed the offer of the Government of Thailand to hold the first meeting of the proposed Action Committee on cooperation in fossil fuels in early 1984. c)  The Committee also recommended that the Action Committee examine its terms of reference when it meets with the aim of facilitating action on specific and concrete projects.

D. Industrialization 50.  The Committee considered the Report of the Global Meeting on Industrialization convened in Vienna May 30- June 2, 1983. The report was presented by the G-77 Chairman in Vienna. In order to promote cooperation among developing countries in the field of industrial information, the meeting recommended four measures for immediate implementation by member states of the Group of 77 with assistance from the UN System: a)  It recommended that UNIDO be called upon to publish systematic industrial information provided by member states of the G-77 that would cover the practical needs as well as promote the ECDC activities of developing countries. b) It called for the creation and strengthening of regional Associations of Chambers of Commerce and/or Industry and the periodic meetings of these associations in order to promote the flow and exchange of information. c)  It requested member states to identify through the Chairman of the G-77 in New York a list of institutions and organizations to which UNIDO may forward existing industrial information. d)  It called on member states of the G-77 to work actively towards the establishment of the Multisectoral Information Network (MSIN) and to designate focal points so as to improve the system of exchange of information on their activities in the field of industrialization. 51.  During the discussion many delegations supported the recommendation for the publication by UNIDO of systematic industrial information for developing countries. It was also stated that since UNIDO was in a position to assist States who wish to create new or strengthen existing regional associations of Chambers of Commerce and/or Industry, the Group of 77’s role should be that of encouraging member states to make use of the Agency’s services in this area. 52.  Some delegations expressed reservations about the recommendation of the Report which calls for member states to identify through the Office of the G-77 Chairman in New York a list of institutions and organizations to which UNIDO may forward existing industrial

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information. These delegations felt that they should have direct communication on this issue with UNIDO. 53.  Some delegates were of the view that as a result of the worsening world industrial situation described in the report it should not have limited itself to only an examination of collation and dissemination of industrial information. These delegates therefore urged that a meeting be called to discuss those critical issues and areas of industrialization that were not covered by this Report. 54.  The Committee was informed of the recommendations of the Meeting on Pharmaceutical Industry which took place in Tunis, 2-5 September, 1983, and asked its Tunisian hosts to circulate its results to all G-77 countries. 55.  Action taken by the Committee: a)  The Committee took note of the Report and recommended to the forthcoming meeting of the Foreign Ministers of the Group of 77 that an expert meeting be convened to look into those areas of industrialization that were not covered by the Vienna meeting. b)  The Committee called on the Chairman of the Group of 77 in New York to initiate immediate consultations with the UNIDO Secretariat with respect to the publication of systematic industrial information for developing countries.

E. Finance 56.  The Committee considered the Report of the Intergovernmental Meeting of Experts for the Study of the Feasibility of a Bank of Developing Countries (The South Bank) held in Ljubljana on 29 August to 2 September 1983. The Report was introduced by the Head of the delegation of Venezuela, as one of the Vice Chairmen, on behalf of the Chairman, Yugoslavia. 57.  Broad agreement was expressed by the Committee on the necessity of the establishment of a Bank of Developing Countries. However, some countries did not associate themselves either with the idea of the Bank or with the Report of the Ljubljana expert meeting and explained their reasons for taking this position. 58.  It was pointed out that it is essential to avoid the constraints that have hampered the operative capacity of similar financial institutions. 59.  Some delegations also pointed out the need to avoid duplication of the functions of existing financial institutions and that it is necessary to utilize fully and strengthen the existing facilities. 60. In commenting on the conclusions of the Inter-governmental Group of Experts, the Committee noted that: -   Within the range of functions that have been proposed for the South Bank, namely development finance, balance of payments support, export financing, commodities stabilization and support to regional payment and credit arrangements, it was felt that to start with the South Bank should be based on concrete and practical arrangements that would enable self-sustained and commercially viable operations. -   It was felt that the South Bank should be an inter-governmental institution of developing countries wishing to participate in it. -   The possible participation of private capital could be considered in the future if governments so desire. -   It was considered that the size of the capital of the Bank should be a result of the functions assigned to it. -   It was felt that further in-depth work was required on the main aspects of the Bank including its capital and voting structures. -   It was also considered appropriate that particular attention be given to the special needs of the Least Developed Countries in the activities of the Bank.

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61.  The Committee agreed that for the South Bank to be a feasible institution, it should be based on concrete and practical arrangements that would enable self-sustained operations. Sound lending policies and project selection should ensure the commercial viability of the institution. 62.  Action taken by the Committee: a)  The Committee recommended that the Chairman of the Group of 77 in New York transmit the Report of the Inter-governmental Experts Meeting, together with the technical documentation and the Report of IFCC-II, to all the Member States of the Group of 77 inviting their comments before the end of March 1984. b)  The Committee entrusted the Chairman of the Group of 77 in New York to prepare for and convene a meeting of high-level Governmental experts, not later than June 1984, preferably including representatives of Central Banks, to complete the work undertaken by the meeting of experts in Ljubljana in 1983, in the light of the comments of governments on the Report of the 1983 Ljubljana meeting; the Report of IFCC-II and the technical documentation existing and to be prepared by UNCTAD in cooperation with UNIDO. c)  An informal indicative list of issues relating to the Bank was circulated as information to Governments of the Group of 77. d) The Committee invited UNCTAD and UNIDO to continue to provide assistance, as required to complete the feasibility study. The Chairman of the Group of 77 was also entrusted to secure the assistance of organizations of developing countries. e) The Committee expressed its appreciation to UNCTAD, UNIDO, UNDP, and the International Centre for Public Enterprises in Developing Countries (ICPE) for their valuable assistance.

III.  Follow-up on the Decisions of ECDC Technical Meetings held during the period 1981–1982 The Committee considered the document on Follow-up Decisions of ECDC Technical Meetings.

A. Trade 63.  Global System of Trade Preferences (GSTP) The Committee heard reports on the status of the negotiations on the Global System of Trade Preferences (GSTP) from the Chairman of the Group of 30 in Geneva and the Deputy Secretary General of UNCTAD. It was informed that 41 member states have so far signified their intention to participate in the negotiations. Only a few countries, however, have furnished UNCTAD with information on their trade regimes. The GSTP Negotiating Committee met from 2 to 11 May 1983 in Geneva to discuss the Draft Rules in accordance with the ministerial Declaration on GSTP. 64.  The Committee was also informed that the UNCTAD Committee on ECDC will meet in Geneva beginning 12 September, 1983 to consider the requests for UNCTAD support to the GSTP negotiations. Recommendations of the Committee will then be submitted to the Trade and Development Board (TDB) and the U.N. General Assembly. 65.  Action taken by the Committee: a)  The Committee called upon member states of the Group of 77 who have not yet done so to signify to the UNCTAD Secretariat their intention to participate in the GSTP negotiations and to furnish as early as possible the needed information on their trade regimes.

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b)  The Committee urged the Group of 77 Chapters in Geneva and New York to undertake intensive consultations to ensure adequate U.N. support to the GSTP negotiations. 66.  State Trading Organizations (STOs): The Committee was informed by the representative of Yugoslavia of the status of the formation of the Association of State Trading Organizations (ASTRO) which was recommended by the symposium of STOs held in Ljubljana in 1982. It was informed that the draft statutes had been elaborated and would come into force as soon as the required minimum number of 15 STOs from developing countries would have signed it. It is expected that the first assembly of the Association will be held in Manila.

B. Technology 67.  The Chairman of the Group of 77 in New York informed the Committee that as of date no notification has been received on the formation of Action Committee called for by the meeting of the Heads of National Agencies for Science and Technology held in New Delhi in 1982. 68.  It was also informed that the examination of the question of the proposed Centre for Science and Technology for the Non-Aligned and Other Developing Countries was held in abeyance pending results of studies on the harmonization of the ECDC programmes of the Group of 77 and the Non-Aligned Countries. 69.  Action taken by the Committee: The Committee called upon member states to undertake follow-up actions on the specific recommendations of the New Delhi meeting including the formation of the Action Committees. 70.  Project Development Mechanism (PDM) for Techno-Economic Cooperation: The delegation of India called the attention of the Committee to the need for the member states to complete their examination of the proposal to establish the PDM, so that a definitive decision can be taken by the Group of 77. 71.  Some delegations felt that the PDM could be a useful mechanism but more information was needed on how it would operate. It was felt that, although the technical meeting held on the PDM was outside the Caracas calendar of meetings, it would be useful for the Chairman of the Group of 77 to elicit the views of member governments on the eventual establishment of the PDM. 72.  Action taken by the Committee: The Committee recalled the decision of the Vth Ministerial Meeting of the Group of 77 in Buenos Aires, regarding the steps that need to be taken to implement the Project Development Mechanism recommended by the Meeting of the Group of Experts held in New Delhi in July 1982. It decided to authorize the Chairman of the Group of 77 in New  York, in cooperation with interested member states, to initiate the necessary follow-up action.

C.  Food and Agriculture Food Security Reserve Scheme 73.  The Committee reiterated the decision to convene the second experts group meeting mandated by IFCC-I as a follow-up to the experts meeting held in August 1982 in Manila, as indicated in paragraph 31 above.

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D. Energy 74.  New and Renewable Sources of energy: The Committee noted the Report of the meeting on Cooperation in New and Renewable Sources of Energy held in July 1983 in Santiago, Chile which was largely a follow-up meeting to the one held in Rio in 1982. Appropriate actions taken by the Committee appear in the Section on technical meetings of this Report.

E. Finance 75.  The World Fund: The Committee felt that it is not the appropriate time for follow-up actions on the establishment of the World Fund proposed by the meeting of experts on finance and balance of payments held in Baghdad in March 1982. It was also felt that the Fund involves North-South issues which remain to be pursued in other appropriate fora. 76.  Bank of Developing Countries (The South Bank) The meeting of the Intergovernmental Experts for the Study of the Feasibility of the Bank of Developing Countries was held in Ljubljana in August-September 1983 as a follow-up to the meeting held in Jamaica in May 1982. The comments and actions taken by the Committee appear in the section in Chapter II.

F. Industrialization 77. Capital Goods: The representative of Algeria presented to the Committee a report on the recently completed trade fair-cum-seminar on capital goods from developing countries as a follow-up to the meeting on Capital Goods held in Algiers in May 1982. On this occasion the text of the statute of the association of capital goods producers from developing countries was circulated for consideration. The Report contained in the document entitled Seminar/Exhibition on Agricultural Capital Goods emphasized the importance of trade fairs-cum-seminars in bringing together buyers and sellers of capital goods from developing countries. 78.  Technical Seminar on Electrical Industry: The delegation of India informed the Committee that the Technical Seminar on Electrical Industry to be convened in New Delhi in November 1983 has been reset for a later date which will be announced soon. 79.  Yearbook on Existing Technologies and Engineering Offices: The Committee requested the Chairman of the Group of 77 in New York and Vienna to initiate the preparation, with the assistance of UNIDO and the regional organizations, of a Yearbook on Existing Technologies and Engineering Offices in Developing Countries. 80.  Action Taken by the Committee: a)  The Committee noted with appreciation the Report on the follow-up exhibit-cum-seminar on Capital Goods held in Algiers. b)  The Committee called upon UNIDO to complete the compendium of the needs and potentialities by the Year 2000 of each developing country in the production of capital goods. The

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Committee also requested the Chairmen of the Group of 77 in New York and in Vienna to enlist the participation of regional and sub-regional institutions. c)  The Committee entrusted the Chairman of the Group of 77 to include in the TCDC component of the Multisectoral Information Network (MSIN) the identification at national and regional levels of centres for collecting and disseminating information on the training of specialized personnel.

IV.  Revision of ECDC Calendar 81.  The Committee took note of the Document on revision of the ECDC Calendar of Meetings under the Caracas Programme of Action. It noted with appreciation that the following meetings are scheduled to be held in the near future: i) The combined meeting on Financial Cooperation among Developing Countries, and Information on Investment Opportunities to be held in Havana during 29 November-2 December 1983. ii) Tendering in Development Projects to be held in Rio de Janeiro during 5-9 December 1983. iii)  The combined meeting on ECDC in Trade and Services to be held in Guatemala during 23-27 January 1984. iv)  Commodity Markets Surveillance to be held in Addis Ababa co-hosted by ECA, 3-6 October 1983. 82. In the light of recent experience regarding poor attendance at technical meetings, the Committee reiterated the importance of the widest participation by member states of the Group of 77 at these meetings. 83.  The Committee further noted that the offers for hosting the meeting on Supply Management Measures in Raw Materials (RM1) and Joint Projects in Raw Materials (RM2), and Acquisition of Technologies (TC8) were yet to be forthcoming. The Committee, therefore, recommended to the Meeting of Foreign Ministers of the Group of 77, to be held in New York in October 1983, to extend the time limit for completing the CPA Calendar of technical meetings decided by the Fifth Ministerial Meeting of the Group of 77, held in Buenos Aires in April 1983, to the end of June 1984. In this regard, the Committee emphasized the urgency for the completion of the Calendar of meetings under the CPA. 84.  The Committee recommended that appropriate documentation for the technical meetings should be made available to member countries well in advance to enable useful participation at these meetings. 85.  In the light of the discussions in the Committee and new offers of venues for hosting of the technical meetings, the calendar of the outstanding meetings under the CPA was revised by the Committee as follows.

V.  Review and Assessment of ECDC Implementation Mechanisms and Action to Strengthen These Mechanisms A.  Intergovernmental Mechanisms A.1.  National Focal Points 86.  National focal points are designed to be mechanisms for co-ordination, promotion and distribution of information on economic and technical cooperation among developing countries, acting as a catalytic agent for the promotion and strengthening of such cooperation. The national

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focal point constitutes therefore an essential element for creating and maintaining national awareness of ECDC in each developing country and at the same time strengthening their commitment to take, on a priority basis, all necessary measures through their national policies and programmes to implement ECDC objectives. 87.  In view of the essential role of national focal points in promoting ECDC, the Committee urged that those countries which have not done so to designate their national focal points and make them operational as soon as possible. The Committee noted with satisfaction that seventy-seven member states have already designated their national focal points as of date of IFCC-II. 88.  The Committee recommended that national focal points take the following actions: a)  At the national level: (i) Publicize and raise national awareness of ECDC through all available means. (ii) Facilitate coordination among different departments in which sectoral focal points for ECDC are located as well as among agencies in general engaged in ECDC activities. a)  Take all relevant measures to guide and coordinate ECDC activities, including where necessary the designation of sectoral focal points. b)  Collect on a systematic basis and make available to future meetings of the IFCC through the Chairman of the Group of 77, relevant information on institutions and activities related to ECDC, and on the modalities of operation of national focal points. b)  At the international level: (i) Promote adequate national participation in meetings pertaining to the implementation of the CPA. (ii) Maintain contact with other focal points with a view to building up a pool of information reflecting the experiences acquired at the national, sub-regional, regional and inter-regional levels. (iii) Encourage, support and where necessary, assist ECDC activities between national enterprises and their counterparts in other developing countries. 89.  The Committee further recommended the strengthening of communications between the Chairman of the Group of 77 in New York and the national focal points through appropriate and designated channels

A.2.  Action Committees 90.  The Committee reiterated the importance of the Action Committee as one of the mechanisms in the implementation of the Caracas Programme of Action on ECDC, as reflected in paragraph 4 of the Resolution on ECDC adopted by the Fifth Ministerial Meeting of the Group of 77 in Buenos Aires. 91.  The Committee urged interested member countries, and as the case may be, their enterprises and institutions, to form Action Committees. In this context the Committee welcomed the proposals to form Action Committees recommended at technical meetings held under the CPA. 92.  To this end, the Committee recalled the relevance of the guidelines for the establishment of Action Committees adopted at the first Meeting of the IFCC held in Manila in August 1982. 93.  The Committee requested the Chairman of the Group of 77 in New York to compile a comprehensive outline of specific areas identified by the technical meetings for the possible formation of Action Committee and further to report on the status of the Action Committees already proposed. 94.  In view of the extensive experience of some member countries at the regional level in the formation and operation of Action Committees, the Committee recommended that such

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experience be shared among interested member countries through appropriate activities such as seminars, symposia, workshops and study tours to be organized by economic groupings and ad hoc groups.

A.3.  National Research and Training Centres of Multinational Scope (NRTCMS) 95.  The Committee pointed out that no National Research and Training Centre of Multinational Scope has yet been established at the inter-regional level in spite of clear guidelines for their establishment adopted at the first meeting of the IFCC held in Manila in August 1982. 96.  In the context of regional efforts, the Committee noted the positive results obtained by the SELA Secretariat in Latin America. The Committee therefore recommended, drawing upon the experience in Latin America, that a questionnaire should be circulated to national focal points of Member States in order to identify potential NRTCMS. In this context, the services of the Information Referral System (INRES) of the UNDP should be utilized, and the results of this survey be made available to the Third Meeting of the IFCC.

B.  Supporting Mechanisms B.1.  Assistance to the Chairman of the Group of 77 97.  The Committee expressed its appreciation for the valuable work on ECDC done by the Core of Assistants to the Chairman of the Group of 77 in New York and expressed its gratitude to those governments which have made available officials to serve on the Core and in the context of the implementation of the recommendation made at the Fifth Ministerial Meeting of the Group of 77 in Buenos Aires to further support and assist the Core of Assistants (Paragraph 21 of the Buenos Aires ECDC resolution) recommended: a)  that governments try to ensure that the number of six (6) assistants provided for under the Caracas Programme of Action is achieved; b)  that governments second officials on a full time basis. 98.  Where necessary and in order to fulfill increased responsibilities arising in regard to ECDC activities, governments are encouraged to provide, at their own expense, the Chairman of the Group of 77 with experts to perform temporary tasks.

B.2.  Group of 77 Account for ECDC 99. The Committee considered the document which contained a Statement of Account and expressed its appreciation to those countries which have contributed to the Account. The Committee emphasized the need to maintain the ECDC Account at a level which would ensure the continuity of activities under the Caracas Programme of Action. To this end and recognizing the voluntary nature of contributions, the Committee agreed: a)  to urge those member countries which have not yet done so to contribute to the Account, bearing in mind the suggested minimum contribution of US$ 1,000.00 and that two years have elapsed since the adoption of the CPA; b)  to request other member countries to continue to contribute to the Account; c)  to affirm the decision of its first meeting in Manila regarding the strengthening of cooperation of the Group of 77 Chapter in New York with the other Chapters for implementation of the Caracas Programme of Action; d)  That more detailed statements of the Account should be presented to the IFCC for its consideration in future meetings. In cases where funds from the Account are made available to other users, detailed statements of Account should be submitted by them to the Chairman of the G-77 in New York.

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VI.  Coordination and Support Measures A.  Coordination among G-77 Chapters CPA 100.  The Committee reiterated its belief that close coordination among all Chapters of the Group of 77, including the Group of 24, is vital to the efficacious implementation and follow-up of the Caracas Programme of Action. 101.  The Committee, therefore, recommended that: a)  Group of 77 Chapters should serve as active centres for coordination in their respective fields of competence, so that duplication can be avoided through close monitoring of activities of relevant United Nations and UN-related bodies. b)  All the Chairmen of the Chapters and the Chairman of the Group of 24 should endeavour to participate in each of the twice-yearly meetings of the Chairmen/Coordinators, pursuant to item 1(c) in paragraph 89 of the Caracas Programme of Action. If necessary, the Chairmen of the various Chapters could meet more often. c)  The Chairmen of the different Chapters of the Group of 77 and the Chairman of the Group of 24 should also endeavour to attend IFCC meetings. d)  Each Chapter should play an active role in the preparations for the annual meeting of the Intergovernmental Follow-up and Coordination Committee (IFCC). e)  Reports on ECDC activities of each Chapter should be made available by its Chairman in advance of IFCC meetings. f)  The Chapters should cooperate more closely in making the G-77 Bulletin a more effective medium for information and coordination by making regular contributions in the form of news items, announcements and general information on their activities. 102.  It was felt that it would be useful if the tenures of the Chairmen of the different chapters could be harmonized. It was suggested that this matter be brought to the attention of the G-77 Ministers at their next meeting for appropriate action.

B.  Role of Economic Groupings of Developing Countries 103.  The Committee noted with appreciation the reports submitted by SELA, Andean Pact, Arab Monetary Fund, ECOWAS and the Economic Community of the Great Lakes Countries (CEPGL) in response to the recommendation of the Fifth Ministerial Meeting of the Group of 77 in Buenos Aires. 104.  In order to strengthen the role of economic groupings and to draw upon their practical and operational experiences for the effective implementation of the CPA, the Committee recommended that: a) Flow of information should be encouraged between the economic groupings and the Chairman of the Group of 77 in New York. In this regard, the Secretariats of the economic groupings are requested to submit brief annual résumés to IFCC Meetings. b)  The economic groupings should be encouraged to strengthen the Informal Contact Group of Secretariats to provide a forum for regular contacts between their organizations. c)  The economic groupings are invited to attend G-77 technical meetings on ECDC relevant to their sphere of activities and assist in the implementation of their results. d) The economic groupings are invited to appoint, if possible, a liaison-officer with the Chairman of the G-77 in New York. e)  The economic groupings are invited to take into account the results of the relevant technical meetings under the CPA in the formulation of their work programmes.

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f)  The Informal Contact Group is invited to explore the capacities of economic groupings for inter-regional ECDC activities including the preparation of a survey of their operational capacities in this field. g)  The economic groupings should be further encouraged to co-operate and to associate among themselves according to the similarities of their objectives and scope of activities.

C.  Role of Research Institutes of Developing Countries in the Implementation of the CPA 105.  Recognizing the importance of the contribution that Research Institutes in the developing countries can make and have made towards the promotion of ECDC, such as the activities undertaken by those institutions, the Committee recommended that: a) Relevant research institutes of developing countries be invited to include within their activities ECDC issues with a view to promoting ECDC activities. To this end, the Chairman of the Group of 77 in New York should assist, upon request, to identify areas where analysis by research institutes would promote the implementation of the CPA. b)  These research institutes are invited to strengthen their cooperation with the Chairman of the Group of 77 in New York in the context of the implementation of the CPA.

D.  Harmonization between the ECDC Programmes of the Group of 77 and the Movement of the Non-Aligned Countries 106.  The Committee considered the report on harmonization between the ECDC programmes of the Group of 77 and the Movement of the Non-Aligned Countries, prepared by the Chairman of the Group of 77 in New York. 107.  It noted that progress has been made in this regard and that the 7th Summit of the Movement of the Non-Aligned Countries had considered a joint report submitted by the Chairmen of the two Groups and made recommendations for further action. 108. On the basis of the discussions in the Committee, the following recommendations were made: a) The meetings to be held under the Non-Aligned Action Programme and the Caracas Programme of Action should complement each other. b)  The Chairman of the Group of 77 in New York and the Chairman of the Coordinating Bureau of the Non-Aligned Movement in New York should remain in close touch with each other to facilitate the process of coordination and to ensure that preparations for the implementation of each Programme, where relevant, receive inputs from each other.

E.  Support Measures from International Organizations 109.  The Committee had before it the document and noted that the organs and organizations of the UN System already had done a fair amount of work in ECDC; however, it felt more could be done. On the basis of the Report of the Working Group on UN support measures and subsequent discussions in the Committee, it agreed that: a)  The CPA and its technical meetings in various sectors provided a useful frame of reference and that the order of priorities established by the G-77 should be taken into account by the UN System when drawing up its work programme even though the UN System’s activities embraced, and went beyond the eight sectors of the Caracas Programme of Action (CPA).

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b)  While a significant percentage of the work of the UN System promoted, supported or implemented ECDC, a greater and more systematic effort was necessary to meet the needs and expectations of the developing countries. c)  Precise and action-oriented decisions could not be taken without sufficient information. It was necessary for the UN System to present, in a concise and uniform format, a regular overview of its ECDC plans and programmes. d)  Within the decentralized structure of the UN System, there was scope for a closer coordination of effort by the various bodies of the System in their response to ECDC; at the same time, closer coordination was desirable within national administrations under the aegis of national focal points and between Chapters of the Group of 77, so that a consistent policy could be put forward in the governing bodies of the UN System. e)  Even with better planning and improved coordination resource constraints might hamper the growth of ECDC programmes, particularly in the operational activities of the UN System, though its effects would also be felt on substantive and analytical work-programmes. While developing countries could continue to seek fresh mandates where necessary, and additional resources through the governing bodies of the UN System, every effort would have to be made to revise strategies and redeploy resources, towards the increased implementation of the CPA. f)  In order to do this, it was necessary for the UN System to re-orient internal policies and procedures to promote ECDC. 110. On the basis of these discussions, the Committee decided to make the following recommendations: a)  The Chairman of the Group of 77 in New York should request the bodies of the United Nations System to identify and present to him and to all other bodies of the system, by the end of October 1983, a list of activities in their present or planned work-programmes that directly supported the implementation of the Caracas Programme of Action. b)  The review of ECDC activities of the UN System requested of Administrative Committee on Coordination (ACC) with a view of improving coordination within the System, and the cross-organizational programme analysis of the UN System’s ECDC activities, to be carried out with due regard to the support of the System to the implementation of the Caracas Programme of Action, as called for by ECOSOC Resolution 1983/50, should in addition incorporate specific proposals and recommendations. c)  The Secretary-General of the United Nations, on the basis of a format that is uniform and easily understood, should be requested to submit an inter-sectoral presentation of the UN System’s activities in ECDC. d)  The ECOSOC, at its second Regular Session in 1984 should examine the system-wide ECDC activities on the basis of the Secretary-General’s review and should report thereon to the General Assembly. e)  The bodies of the UN-System, if they have not already done so, should re-orient their strategies and re-deploy their resources to strengthen the implementation of ECDC. In this connection, the mandate, which was given in recommendation 33 of the Buenos Aires Plan of Action, was reaffirmed. f) The United Nations system should implement operative paragraph 11 of UN General Assembly Resolution 34/202 in providing necessary support services and other suitable arrangements to facilitate the holding of ECDC meetings by the developing countries. g)  The UN System’s substantive and research work should contain where necessary a much larger focus on ECDC in preparation of studies and analysis.

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h)  Where necessary, developing countries should seek additional resources, particularly for operational activities as well as fresh mandates, in the governing bodies of the UN System for the implementation of ECDC programmes and projects. i)  Special attention should be given by the UN System, to the needs of the least developed among the developing countries, enabling them to participate more effectively in ECDC programmes, projects and meetings. j)  In order to ensure that inter-governmental decisions in all bodies of the UN System are taken on the basis of full information and are mutually consistent, there should be close coordination within national administrations, through the national focal points, as well as among chapters of the Group of 77. There should also be continuing contact with the secretariats of the UN System.

VII.  Information Activities on ECDC A.  Multisectoral Information Network (MSIN) 111.  The flow of information is an indispensable ingredient for realization of all projects and programmes on ECDC. The Committee emphasized strongly that the implementation of the MSIN should be considered as one of the highest priorities for further action on ECDC. In this context, the TCDC component of MSIN should be accorded first priority for the earliest implementation. The Committee therefore recommended that: a)  Member countries take the necessary steps to establish or strengthen their national information networks; b)  The Chairman of the Group of 77 in New York should pursue, following the modalities recommended by the Tunis Meeting of Heads of Technical Cooperation Agencies of Developing Countries, consultations with Member States which are called upon to designate, in each region, regional focal points as soon as possible and in any case before IFCC-III; c)  Considering that the establishment of national information networks requires appropriate know-how and training, efforts be made to ensure the training of the staff of national and regional focal points; d)  In implementing MSIN, any duplication of the United Nations information system should be avoided and complementarity with existing or projected systems should be promoted.

B.  G-77 Bulletin 112.  The Committee expressed its appreciation for the valuable service provided by the Group of 77 Bulletin in regard to the dissemination of information on ECDC activities. 113.  The Committee noted with satisfaction the fact that the Bulletin is now being published in the four working languages of the Group of 77 and in this context expressed its appreciation for the valuable support of ECLA and ECWA for the publication of the Bulletin in Spanish and Arabic respectively and the effort of the Chairman of the Group of 77 in New York for the French version. 114.  The Committee recommended that: a)  Chapters of the Group of 77 which have not done so should designate correspondents. b)  The Chapters should make maximum use of communication facilities provided by the Inter-Press Service (IPS) for the flow of news and other activities related to the production and distribution of the Bulletin.

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C. Documentation Centre 115.  The Committee took note with appreciation of the activities of the Documentation Centre of the Group of 77 in New York. It recognized the important role that the Documentation Centre could play in the compilation and dissemination of ECDC information and recommended that the Centre’s work should continue in conformity with the requirements for the implementation of the Caracas Programme of Action and the promotion of ECDC.

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3.  Third Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-III), Cartagena de Indias, Colombia, 3–8 September 1984 a. Final Report I.  Introduction and Organizational Matters A. Introduction 1.  Pursuant to the Caracas Programme of Action (CPA) and at the invitation of the Government of Colombia, the Third Meeting of the Intergovernmental Follow-up and Coordination Committee (IFCC-III) was held in Cartagena de Indias, Colombia from 3 to 8 September 1984. 2. The meeting was attended by 55 delegations from the following Member States of the Group of 77: Algeria, Argentina, Bangladesh, Burkina Faso, Brazil, Cameroon, Cape Verde, Chad, Chile, Colombia, Costa Rica, Cuba, Democratic People’s Republic of Korea, Democratic Republic of Yemen, Dominican Republic, Ecuador, Egypt, Ethiopia, Guatemala, Guinea, Guyana, Haiti, India, Indonesia, Islamic Republic of Iran, Iraq, Ivory Coast, Jamaica, Kuwait, Laos, Lesotho, Libyan Arab Jamahiriya, Malaysia, Mexico, Nepal, Nicaragua, Nigeria, Pakistan, Paraguay, Peru, Philippines, Republic of Korea, Sao Tome and Principe, Saudi Arabia, Sierra Leone, Somalia, Sri Lanka, Sudan, Thailand, Tunisia, United Republic of Tanzania, Uruguay, Venezuela, Yugoslavia, Zaire. 3.  Representatives from the following organizations and research institutes of the developing countries also attended the Meeting: International Centre for Public Enterprises in Developing Countries, (ICPE) Yugoslavia, Research Centre for Cooperation among Developing Countries (RCCDC), Yugoslavia, Sistema Economico Latinoamericano (SELA), Andean Pact, and Centre for International and Diplomatic Studies, (C.E.I.D) Colombia. 4.  Representatives from the following offices and organizations of the United Nations System participated as observers: DIEC, UNCTAD, UNESCO, UNIDO, UNDP, ILO, FAO, ECA, ECLA, WFC, IFAD, UNFSSTD, WFP.

B.  Election of Officers 5.  At its opening session, the Committee elected by acclamation Dr Jorge Luis Ordonez, Under Secretary of Economic Affairs of the Ministry of Foreign Affairs of Colombia as Chairman. The Committee also elected by acclamation H.E. Ambassador Peter A. Afolabi of Nigeria and Mr Anwarul Karim Chowdhury of Bangladesh as Vice-Chairmen.

C.  Adoption of the Agenda and Organization of Work 6.  The Intergovernmental Committee adopted the draft agenda.

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7.  The Intergovernmental Committee also decided to establish two sessional Committees and to allocate item 5 to Committee I and items 4, 6, 7 and 9 to Committee II. The two Vice-Chairmen, Mr Anwarul Karim Chowdhury and H.E. Ambassador Afolabi, served as Chairmen on Committee I and II respectively. 8.  The Bureau of the Intergovernmental Committee was assisted by the Core of Assistants to the Chairman of the G-77 in New  York, members of which also served as Secretaries of the two Sessional Committees.

D. Documentation 9.  The Intergovernmental Committee had before it the Reports of ten (10) Technical Meetings held in pursuance of the implementation of the CPA since IFCC-II, as well as, other documentation prepared by the Office of the Chairman of the G-77 in New York.

E.  Opening Statements 10.  The President of the Republic of Colombia, His Excellency Dr Belisario Betancur, delivered the keynote address to the Conference. On welcoming delegates from Africa, Asia and Latin America, he referred to Cartagena’s traditional strong regard for freedom and expressed his hopes that this Conference would mark an advance so that equitable development and social justice will one day reign throughout the world. In order to achieve this, it would be necessary to determine the kind of conditions needed by the ill-named ‘Third World’ to become the most dynamic force in the world economy in the next 20 years. 11.  To this end, the President pointed out that researchers and scientists have to be encouraged to analyze the development experiences of these countries; one of the most important elements in this cooperative effort is the exchange of these experiences. 12.  Although the current stagnation of the development process has internal causes, external causes were of greater significance. All priority programmes had been set aside, since the servicing of an immense foreign debt and the need to pay unnecessarily high rates of interest not only made some countries net exporters of capital, but also substantially reduced the growth of their per capita incomes. 13.  President Betancur said that given the diversity of their situations, it was natural that there be some points of conflict among developing countries. He stated it was necessary, therefore, to examine their individual realities to discover which elements in them could bring harmony with others. The President cited as forces of unity, first, the need to respond to outside forces; second, the need to find the road to regional and ‘Third World’ identity; and third, the discovery of economic and social development models and efficient and creative policies that incorporated the realities of all developing countries, avoid waste, arms build-ups, and the mindless destruction of their natural resources. 14.  As causes of divisiveness, the President mentioned the expectations, sometimes unjustified, which each country had of its own potential, and the political or ideological nature of antagonisms, long standing border tensions or the results of rapid change. To reconcile such conflicting positions, the President said that policies underlying the specific programmes had to be flexible to make it possible to satisfy the needs of the largest possible number of countries. These principles could be drawn from relevant studies on the New International Economic Order NIEO) whose pivotal point was the redistribution of incomes and the benefits of growth in an equitable manner, contrary to policies existing since the days of the great mercantilist systems. He stated that there was a long and arduous path to travel, and it would be inappropriate to discuss it in technical terms; justice and equity had never been proper material for cost/benefit analysis. It

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was a matter of political and ethical commitment, which could not be measured, but which was no less real or necessary. 15.  He warned that great care had to be taken to avoid the erection of new systems of privilege within South-South cooperation programmes, as these would confuse and divide the common effort. 16.  Solidarity among developing countries had to be strengthened in the most critical areas, such as finance and trade, which lend support to the establishment of the South Bank. Financial resources in the developing world are not scarce; they are found as reserves, profits and royalties that flow to the existing regional and private international banks. The President underscored the fact that it would be appropriate to channel those resources through the South Bank, to finance priority programmes in developing countries, especially in regional trade, inter-regional trade, and multinational development projects, as a true means of unity and cooperation in the South. The Global System of Trade Preference (GSTP) should also be supported to increase the flow of trade so that the market would be re-directed towards suppliers from the South. Policies must also be designed and established to protect the standard of living among these peoples and guarantee them sufficient food—an essential factor in political sovereignty. As a whole, the Third World was self-sufficient in food, but proper channels of finance, distribution and marketing were required apart from an awareness of the problem. It was possible, the President added, that to free food trade from the rigidity of the dollar, it might be necessary to return to former forms of commerce, such as barter. 17.  The President proposed a Summit of Heads of State of developing countries representing Asia, Africa and Latin America to examine the current critical situation, that should propose a set of specific urgent measures to the Heads of State of the principal industrialized countries, whose practice of having regular summit meetings should be followed. 18.  He further stated that for growth of the world economy to take place in an orderly way, the strategies of North and South had to be coordinated. Therefore, it would be desirable for a North-South Summit to be held after the South-South Summit. 19. In closing, President Betancur shared with the Conference the joy felt by the people of Colombia at having found formulas for an understanding to end long years of civil strife. The formulas were reached through a process of dialogue based on respect for the dignity of man. He offered the world Colombia’s experience which he termed ‘Peace through dialogue’. 20.  In his Report to the Committee, Ambassador Porfirio Munoz Ledo, Permanent Representative of Mexico to the United Nations, Chairman of the Group of 77 in New York, stressed that the devastating effects of the crisis resulting from the increasing concentration of resources and decisions in a few centres of power have paralyzed most of the mechanisms of multilateral action. Under such conditions, excessive bilateralization of international relations could lend to a process of neo-colonialism which must be avoided. 21.  He stated that awareness of South-South cooperation, as an answer to the crisis and as an affirmation of a deep-seated desire for independence, was increasing. The Group of 77 was responsible for the promotion and management of cooperation projects between developing countries and, therefore required support and firm political determination from governments, now that the first cycle of work, whose purpose was precisely the definition of objectives and areas of action, had been completed. 22.  He suggested that a second meeting of Finance Ministers of Member States be held. He stated that this would be not only convenient but indeed essential. 23.  He then made a report on the most significant results and principal recommendations coming from the technical meetings during his tenure. He mentioned the most important aspects of this work the establishment of the Action Committee on Fossil Fuels, the urgent need to establish the Multisectoral Information Network, (MSIN) and the desirability of establishing National

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Commissions for the promotion of ECDC. He reported on the recommendations made in relation to the South Bank, or the Bank of the Developing Countries which he believed have reached an important stage for action and decision. He also dwelt on the actions taken to guarantee technical support for the ongoing negotiations on the Global System of Trade Preferences (GSTP). 24.  He suggested that to enable the United Nations System to make an effective contribution to ECDC within the priorities set by developing countries, a mechanism for coordination had to be created within the UN to help avoid duplication, to make individual efforts compatible, and to act as a permanent link with the Group of 77. 25.  He emphasized the desirability of coordinating the work carried out by the Group in all other United Nations centres and agencies, with a view to increasing a systematic flow of information. He recommended the establishment of Technical Support Cores in each center. He also suggested that the U.N Regional Commissions should consider as one of their prime function to be the identification and promotion of cooperative programmes among developing countries. 26.  He recommended that stronger support should be given to the Office of the Chairman in New  York to ensure its more effective functioning, as had been decided in Caracas, Buenos Aires, Manila and Tunis, so that it could serve as a central mechanism for promotion, management and liaison with governments of member states, regional, sub-regional, specialized and research organizations in the developing countries, and with offices and agencies of the United Nations system. 27.  He further stated that the actions of the Group of 77 and those of the Movement of Non-Aligned Countries are complementary and should together contribute to the mutual reinforcement of the work of both groups in the pursuit of economic cooperation. 28.  He expressed the need for decisive stimulus to be given to the initiatives of interested countries prepared to take advantage of new cooperative endeavours. 29.  In his address to the Committee, Ambassador I.  S. Chadha, as the representative of the Chairman of the Non-aligned Movement, emphasized that the Group of 77 and the Non-aligned Movement have the same principles and objectives in promoting economic cooperation among developing countries, which is the cornerstone of both Groups. 30.  He stressed the need to intensify cooperation among the developing countries at a time when the need for increased cooperation was felt greater than ever before. He recalled the constructive proposals made by the Seventh Non-aligned Summit 1983 for dealing with the crisis which were later welcomed by the Ministerial Meeting of the Group of 77 in Buenos Aires. The response from the North has been very disappointing despite the fact that the crisis continued to worsen. 31.  In this context, South-South cooperation would not only bring greater benefits to developing countries but also greatly improve the prospects for cooperation with the developed countries. The vast potential for South-South cooperation was only beginning to be tapped. 32. He welcomed the fact that cooperation among developing countries, initiated by the Non-aligned Movement, had acquired considerable momentum. The Seventh Non-aligned Summit had devoted particular attention to harmonization of the two programmes for economic cooperation among developing countries. He stressed the catalytic role of the Non-aligned Movement for initiatives in ECDC and noted that these could be given operational shape by the Group of 77. He also emphasized the need to avoid duplication in view of the need to conserve scarce resources. He concluded by offering the Group of 77 the sincere cooperation and support of the Non-aligned Movement in their common endeavours.

F.  Adoption of the Report 33.  At its closing session, the Third Meeting of the Intergovernmental Follow-up and Coordination Committee adopted the Report, as contained hereafter.

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G. Acknowledgment 34.  The Meeting expressed deep appreciation to the President, the Government and the people of Colombia for their hospitality and excellent arrangements made for the meeting. A resolution to this effect was adopted.

H.  Closure of the Meeting 35.  The Minister of Foreign Affairs of the Republic of Colombia, Dr Augusto Ramirez Ocampo, closed the Meeting with an address, where he expressed deep satisfaction on the results of the meeting and thanked all the delegates and staff for their valued cooperation.

II.  Economic Cooperation and Collective Self-Reliance 36.  The Third Meeting of the Intergovernmental Follow-up and Coordination Committee (IFCCIII) was held in Cartagena de Indias, Colombia, from 3 to 8 September 1984 to review the progress in the implementation of the Caracas Programme of Action aimed at strengthening economic cooperation among developing countries. 37.  The Committee noted with satisfaction that a number of economic cooperation programmes have already been launched and assessed the requirements for the launching of other such programmes. 38.  The Committee expressed grave concern at the adverse impact of the international economic crisis on developing countries and reiterated the need for greater cooperation among them. In this context the Committee stressed that the existing state in the negotiations between the developed and developing countries makes all the more imperative for developing countries to strengthen their mutual cooperation and solidarity. 39.  The Committee emphasized the importance of reactivating the process of growth and development of developing countries without which it would not be possible to sustain the recovery in the world economy. It stressed that cooperation among developing countries would contribute to the establishment of the New International Economic Order (NIEO). 40.  The Committee reiterated that economic cooperation among developing countries would reduce the vulnerability of the economies of the developing countries and raise the level of well-being of their peoples. 41.  The conclusions reached at the Cartagena Meeting represent the determination of the developing countries to consolidate their unity and strengthen their solidarity through concerted actions designed to benefit all developing countries.

III.  Consideration of the Reports of the Technical Meetings held during the period 1983-1984 A. Trade A.1.  Services Related to Trade 42.  The Committee considered the Report of the Meeting on Services Related to Trade held in Guatemala City from 23 to 27 January 1984. The report was introduced by the delegation of Guatemala and was welcomed by the Committee. 43.  The Committee was of the view that the establishment and promotion of communication networks among developing countries and transport infrastructure is critical to making ECDC

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operational. In this connection, the need to establish a data-base in services at national, sub-regional and inter-regional levels was emphasized. The Committee, however, felt that it was not necessary to create new institutional mechanisms for this purpose at this time. In this context, it was stressed that existing mechanisms should be used more effectively. 44.  The Committee recommended: a.  Establishment of a data-base on services relating to trade, banking, insurance, re-insurance, transport and trans-border data flows and elaboration of studies on a systematic basis related to the exchange of information on these services. This data-base should be integrated into the MSIN when established. In the preparation of the studies, preference should be given to experts from the developing countries. b.  Establishment of an inventory of skills and experts with competence in this field to be updated on a regular basis. In implementing this task, the experience of the sub-regional and regional economic groupings should be utilized. c.  Elaboration of a programme of priority action in the field of services in trade, banking and insurance for the short, medium and long term implementation with the assistance of the United Nations system. d.  Improvement of the quantity and quality of technical assistance to the least developed countries in the field of services relating to the area of training. e.  Compilation and use of updated statistics in the field of services at the national level. f. Preparation of the feasibility study on the establishment of regional and inter-regional mechanisms for insurance, in consultation with those sub-regional and regional organizations which already have expertise and experience in this field. g.  That the Group of 77 should ensure that UNCTAD continues to be the forum for negotiations relating to trade and services. h.  The continuation by the UNCTAD/UNDP of the work on transport/transit problems on land-locked countries.

A.2.  Global System of Trade Preferences (GSTP) 45.  The Committee took note with appreciation of the report introduced by Ambassador O. Lopez NOGUEROL, Permanent Representative of Argentina and Chairman of the Group of 77 in Geneva, on the Status of the Negotiations on the Global System of Trade Preferences. 46.  The Committee reaffirmed the importance of GSTP as an instrument for the promotion of economic cooperation among developing countries, and stressed the need for rapid progress in the negotiations on GSTP and for further political impetus to this end. 47.  The Committee noted that useful discussions had taken place during the UNCTAD meeting on GSTP in Geneva, from 14 to 25 May 1984 and expressed the hope that the forthcoming meeting on the GSTP in Geneva scheduled in October 1984 would be able to conclude discussion on the rules, procedures and mechanisms for the launching of negotiations, safeguards, special treatment of the least developed countries, extension of concessions and rules of origin. 48.  The Committee agreed that after the completion of the preparatory phase of the GSTP negotiations, it would be necessary to fix as soon as possible the dates for the meetings and draw up a work programme. It was also agreed that sub-regional and regional organizations and economic groupings of developing countries be invited to attend the preparatory stages of the negotiations in order to enlarge the technical input bases for the final phase. 49.  The Committee renewed its appeal to all member countries of the Group of 77 who have not yet done so to signify to the UNCTAD Secretariat their intention to participate in GSTP negotiations and to furnish as early as possible the needed information on their trade regimes.

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50.  The Committee heard with appreciation the report made by the delegation of Colombia on the coordination among developing countries exporters of textiles and clothing and welcomed the recent creation of the ‘International Bureau of Textiles and Clothing’.

B.  Food and Agriculture B.1.  ECDC in Food and Agriculture 51. The Committee considered the report of the Global Meeting on Economic Cooperation among Developing Countries in the Food and Agriculture Sector held in Bucharest from 26 to 30 March 1984. The report, which was introduced by Mr Horacio CARANDANG, Alternate Permanent Representative of the Philippines to FAO and Chairman of the Group of 77 in Rome, was welcomed by the Committee. 52.  The Committee noted that paragraph 50 of the Bucharest Report highlighted the following areas for follow-up action: a.  The modalities of the financial arrangements underlying ECDC and TCDC projects should be studied to help solve the future problems of financing such projects. b.  The highest priority in ECDC and TCDC in the areas of the food and agriculture should be accorded to MSAs and least developed countries particularly those in Africa. c.  Regional groupings should start joint venture enterprises in the manufacture, import and marketing of agriculture inputs, fertilizers, pesticides, equipment, improved seeds, livestock-breeding drawing on the experience gained in these areas. d.  An identification and inventory of institutes of excellence and activities on research and extension and training particularly with the regional and sub-regional groupings should be prepared. 53.  The Committee also accorded priority for implementation to the recommendations contained in paragraph 24 of the Bucharest Report regarding, inter-alia, revitalization of the Group of 16 ECDC/TCDC Coordinating Committee in Rome for the elaboration and promotion of ECDC in food and agriculture sector. 54.  In response to enquires regarding the proposal contained in paragraph 48 of the Bucharest Report to set up a focal point to coordinate economic and technical cooperation among developing countries in the food and agriculture sector and the decision that the proposal be studied by the Group of 77 in Rome, the Chairman of the Group of 77 in Rome informed the Committee that the Group considered the matter at its plenary meeting on 28 August 1984 but did not reach a decision. He also informed that the Group of 16 in Rome was requested to study the matter in detail and present its recommendations to the Group of 77 of the Whole. The Committee took note of the statement and requested the Group of 77/16 in Rome to consider the matter taking into account the views expressed in the Committee. 55. The Committee was informed about the serious problems faced by the IFAD regarding replenishment of its resources. It was noted that without assured, adequate and predictable financial resources, IFAD will not be able to carry out effectively its mandate to assist its target group: the small and landless farmers. The Committee expressed its concern at the situation due to the position taken by some industrialized countries and urged remedial action. 56.  The Committee took note of the working paper presented by the Chairman of the Group of 77 in Rome on ‘Cooperation in Human Resources Development Towards Self Reliance in Food Production’ and approved in principle the idea to have a project in human resources development to increase food production through enhanced cooperation among developing countries. The Group of 77 in Rome is requested to revise the project contained in the working paper in line with the suggestions and observations made by delegations and transmit the revised document to the governments for examination and comments. The Committee requested the governments to send their comments to the Group of

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77 in Rome as soon as possible, preferably by middle November 1984. In accordance with the mandate of the Caracas Programme of Action, the Group of 77 in Rome should coordinate further action in the matter with the Chairman of the Group of 77 in New York. 57.  The Committee also noted that the working paper on the establishment of the Action committee on cooperation in Food and Agriculture was under consideration by the members of the Group of 77 in Rome. 58.  It requested member countries to transmit to the Chairman of the Group of 77 in Rome pertinent information in order to enable him to compile the catalogue of specific offers and requirements made, inter-alia, during the course of the meeting held in Bucharest. 59.  The Committee took note of the offer of Cuba to host a Group of 77 Seminar on small boat building in Havana in 1985.

C. Energy C.1.  ECDC in Fossil Fuels 60.  The Committee noted the report of the First Meeting of the Action Committee on Cooperation in Fossils Fuels held in Bangkok from 25 to 27 July 1984, which was introduced by the delegation of Thailand. The Meeting noted that the Action Committee, the first of its kind under the Caracas Programme of Action, was convened pursuant to the recommendation of the Meeting on Energy Development, Supplies and Rationalization of Energy Consumption held also in Bangkok in August 1983. 61. The Action Committee exchanged views and experiences among its energy producing and consuming members and adopted the Articles of Agreement establishing the Action Committee, the General Guidelines of the Rules of Procedure and the short-term work programme for 1984-1985 of the Action Committee, with emphasis on information exchange and technical cooperation. 62.  The Committee expressed general support to the formation of the Action Committee on Cooperation in Fossil Fuels as a significant step towards the effective implementation of the Caracas Programme of Action in the energy sector. However, some delegations reiterated their position regarding the Action Committee as stated in the report of the IFCC-II. 63. Some delegations suggested that information about activities of this Action Committee, including the questionnaire regarding training requirements and its availability should be transmitted to all members of the Group of 77 through the Office of the Chairman in New York. It was also proposed that the Action Committee may undertake compilation of information on the international market on fossil fuels and determine the specific areas of research. 64.  Some delegations expressed the view that for a proposed Third World Petroleum International (TWPI) and/or Third World Petroleum Congress (TWPC) to be successful, it would be necessary to have the support of the major petroleum producers of the developing countries. 65.  The Committee noted that the Agreement establishing the Action Committee provides that participating members assumed the responsibility for the financing of its operation and that donation and grants may be accepted from any member of the Group of 77. 66.  The Committee: a.  Took note of the report of the first meeting of the Action Committee on Cooperation in Fossil Fuels. b.  Invited the other members of the Group of 77 to join the Action Committee to widen cooperation in this area and to enable it to achieve its task and objectives. c.  Requested the Chairman of the Group of 77 in New York to undertake consultations with members of the Group on possible areas on cooperation in the other fields of energy under the Caracas Programme of Action.

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D.  Raw Materials D.1.  Commodity Markets Surveillance 67.  The Committee considered the Report of the Meeting on Surveillance of and Information on Commodity Prices and Raw Materials held in Addis Ababa, Ethiopia, from 3 to 6 October 1983. The delegation of Egypt introduced the report of this meeting which was hosted by the United Nations Economic Commission for Africa (ECA). 68.  In the discussions, several delegations pointed out that the Report contained some recommendations that were too general. 69.  The Committee reaffirmed the vital importance of raw materials in the economies of the developing countries; hence there is urgent need for solidarity and cooperation which, among other actions, include the exchange of information, market surveillance, joint marketing, and technical and scientific cooperation. 70.  The Committee reiterated the recommendations on the Report of Addis Ababa meeting on the need to establish and strengthen the producers’ associations, placing emphasis on their importance to defend the remunerative level of prices and facilitate the exchange of information. 71.  Some delegations pointed that the recommendations in paragraph 21 of the Report on the future coordination of the Integrated Programme for Commodities (IPC) is best done through the Committee on Commodities in UNCTAD. 72.  The Committee reiterated the urgency of the coming into operation of the Common Fund for Commodities and urged members, who have not done so, to sign and ratify the Agreement on the Common Fund for Commodities. It was also recommended that efforts to bring it into operation should be intensified.

E. Finance E.1.  Development Projects and International Public Tenders 73.  The Committee considered the Report of the Expert Group Meeting on Development Projects on International Public Tenders held in Rio de Janeiro, from 5 to 9 December 1983. The report which was introduced by the delegation of Brazil was welcomed as useful. 74.  The Committee approved the recommendations of the Rio Meeting and decided that the report should be given wide circulation to all concerned by the Office of the Chairman of the Group of 77 in New York. 75.  The Committee emphasized the need for increasing the efforts of the members of the Group of 77 to widen bilateral and multilateral exchange of information on development projects. 76.  It was suggested that the studies proposed in the Rio de Janeiro Report should be undertaken by specialized institutes of the developing countries. 77.  The Committee supported maximum use of national consultants and consultants from other developing countries in the study, formulation and implementation of development projects.

E.2.  Financial Cooperation and Investment Opportunities 78. The Committee considered the Report of the Joint meeting of Experts on Financial Cooperation and Investment Opportunities, held in Havana from 29 November to 2 December 1983, which was introduced by the delegation of Cuba. 79.  The Committee noted the urgent need to strengthen and expand existing regional payment arrangements as a major area for financial cooperation. It was noted that some of these arrangements are presently not operational in view of lack of resources and other reasons.

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80.  The Committee took note of the proposal for convening a second meeting of Ministers of Finance of the member countries of the Group of 77 and decided to refer it to the governments for their consideration. Further actions on this proposal will be taken after the Second Joint Meeting of Experts assesses the progress on the implementation of the results of the First Meeting of Finance Ministers and the First Joint Meeting of Experts. 81.  Referring to paragraph 30 of the Report, some delegations noted that financial cooperation should encourage developing countries to direct available resources to other developing countries for which measures should be undertaken to guarantee mutual interest. 82.  Some delegations pointed out that the definition of ‘capital surplus’ countries should be clarified by making a clear distinction between those whose revenues are mainly derived from non-renewable resources and those countries deriving revenues from other activities. It was requested that such categorization should be avoided in future documents. 83.  The Committee recommended close coordination of the efforts of the Group of 77 on financial cooperation such as those that pertain to the strengthening of existing regional payments and clearing arrangements as well as those relating to financing of trade. 84.  The Committee emphasized the urgent need to coordinate the work of the Group of 77 and the Group of 24 in Washington D.C. in order to formulate and pursue common positions and invited the Chairman of the Group of 77 in New York to continue efforts towards closer coordination with the Group of 24 on matters involving financial cooperation among developing countries.

E.3.  The South Bank 85.  The Committee considered the Report of the High-Level Governmental Experts Meeting on the South Bank, held in Caracas from 29 to 31 August 1984 and noted the useful work done by participating experts in the preparation of the South Bank Scheme. The report was introduced by Ambassador Felipe Jaramillo of Colombia as Chairman of the meeting in Caracas. 86.  The Committee reiterated that the Group of 77 should continue to pursue effectively and realistically the study of the proposal for the establishment of the South Bank, as well as consideration of feasibility studies presented: the proposal being for the benefit of all members of the Group, with particular attention to the special needs of the least developed countries. It was emphasized that the functions of the Bank should give priority attention, inter alia, to financing development projects and financing of trade among developing countries. 87.  The recommendations of the Caracas Report including the South Bank Scheme were recognized as constituting important contributions to the consideration of this matter in the context of the Group’s common aims and objectives. It was understood that future steps in this regard should be taken without undue haste and through full examination of all aspects. 88.  Broad agreement was reiterated by the Committee on the necessity for the establishment of a Bank of Developing Countries (South Bank) as reflected in paragraph 57 of the report of the IFCC-II. However, some delegations pointed out that they continued to maintain the position that they could not associate themselves with the idea of the Bank and explained their reasons for taking this position. 89.  The Committee: a.  Decided that an Intergovernmental Initiative Group of countries wishing to participate, which may be represented by high-level representatives including officials from national financial institutions, should undertake further work required regarding the South Bank proposal and examine fully the comments presented by governments on the Report of the Caracas Meeting and all other relevant documents submitted to the Group of 77. The exercise should be completed by June 1985.

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b.  Invited the Governments to convey their comments to the Chairman of the Group of 77 in New York as early as possible, but not later than the end of January 1985.

F.  Technical Cooperation among Developing Countries (TCDC) F.1. TCDC 90.  The Committee considered the Report of the Second Meeting of Heads of National Agencies for Technical Cooperation among Developing Countries, held in Ljubljana from 30 July to 2 August 1984 which was introduced by the delegation of Yugoslavia. 91. Many delegations welcomed the Report, in particular the recommendation to create an Action Committee on Inter-enterprise Cooperation which will be an operational mechanism for the intensification of cooperation among developing country enterprises. 92.  The Committee reiterated the necessity to establish legal frameworks for the recruitment of experts, such as those proposed in the draft model contracts now under consideration by member governments of the Group of 77. However, some delegations expressed that they cannot associate themselves with this at this point. 93. A  number of delegations referred to the recommendation regarding the Multisectoral Information Network (MSIN) and mentioned that the pilot project was under consideration by their governments. 94.  The Committee gave general support to the recommendations of the Ljubljana meeting, highlighting the following decisions: a.  To convene a workshop for TCDC National Focal Points on a global basis in cooperation with the United Nations Development Programme (UNDP). b.  To coordinate more effectively the consultations of the Group of 77 during the Fourth Session of the High-level Committee on TCDC in 1985 and to convene a meeting of the Group prior to the meeting for that purpose. c.  To urge member countries to undertake active contacts among themselves with a view to identifying specific programmes and projects regarding inter-enterprise cooperation. d.  To invite member countries to submit their comments as soon as possible on the report of the meeting of experts which took place in Caracas in August 1983 regarding the model contract for the recruitment of experts, as well as on the draft contract submitted by the Chairman of the Group of 77 at the Ljubljana meeting, and requests the Chairman of the Group of 77 to convene an intergovernmental meeting to analyze the comments conveyed and make appropriate recommendations to be presented to IFCC-IV. 95.  The Committee reiterated its support for the early establishment of the Multisectoral Information Network (MSIN) and affirmed the need for a global approach to the network concept while at the same time placing first priority on the TCDC component in the proposed pilot project and the complementarity with information systems in the United Nations such as INRES and TIPS. The Committee requested the Chairman of the Group of 77 to take immediate action to obtain comments from Member States regarding the proposed pilot project, to review the project in the light of their comments and to present a revised project at the Intergovernmental Meeting of Experts to be convened in 1985. The Committee noted the offer of Colombia to host this meeting.

IV.  Follow-up Actions on Recommendations of Technical Meetings held in 1983–1984 as well as those from IFCC-I & II 96.  The Committee stressed the importance of follow-up actions on recommendations of technical and expert meetings held under the Caracas Programme of Action (CPA). It noted with deep

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concern that a large number of recommendations had emerged out of IFCC-I and II with only a few having been implemented. The Committee therefore emphasized that this fact be given due recognition in future meetings of the Group of 77 under the CPA while adopting new recommendations. 97.  While emphasizing the crucial importance of implementation of these recommendations, the Committee expressed concern that many of these are too general and do not specify responsibility and timeframe for implementation. 98.  The Committee recalled the decision of the IFCC-I that the measures or actions taken by members of the Group of 77 for the implementation of the results of sectoral meetings be communicated to the Chairman of the Group of 77 in New York or through the appropriate Chapters and urged them to comply with that procedure. 99.  The Committee further noted the poor attendance in terms of number and expertise of the technical meetings. Many of these meetings were scheduled too close to each other and without adequate preparation. It was also noted that it was not possible to make the documentation available on time due to resource limitations. It also recognized the constraints, economic or otherwise, which prevented many developing countries from appropriate attendance of these technical meetings. 100.  The Committee: a.  Decided that an inventory of all the recommendations adopted for the implementation of the CPA should be prepared sector-wise in tabular form by the Office of the Chairman of the Group of 77 in New York not later than the end of October 1984; b.  Decided that based on the foregoing inventory a critical assessment of the extent of implementation of the CPA and the steps taken by governments for this purpose should be made and presented to IFCC-IV for consideration; c.  Decided that utmost care should be taken in recommending any new technical or follow-up meeting. 101.  Regarding the preparation of documents and its timely distribution, the Committee reiterated the need for compliance with the decisions on this matter in IFCC-I. 102.  Regarding the follow-up actions on the recommendations regarding the proposed Project Development Mechanism (PDM) for Techno-economic Cooperation among developing countries, the Committee requested the Chairman of the Group of 77 in New York to take the necessary steps for the preparation of a detailed project for its establishment, in consultation with interested members. 103.  The Committee requested member countries to extend all the support to the Group of 77 Electrical Industry Seminar organized by India in New Delhi from 10 to 15 September 1984 to ensure its success.

V.  Review and Assessment of ECDC Implementation Mechanisms and Measures Designed to Give More Impetus to the Implementation of ECDC Activities A.  Supporting Mechanisms A.1.  Core of Assistants 104.  The Committee reiterated its appreciation for the valuable work on ECDC activities done by the Core of Assistants to the Chairman of the Group of 77 in New York, and expressed its

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appreciation to the Governments that have deputed assistants to the Core. In this context the Committee recommended that: a.  Member States ensure that the members of the Core of Assistants be appointed to the Office of the Chairman at the earliest possible opportunity, not later than the end of 1984. To this end, the Chairman of the Group of 77 in New York should address the regional groups as well as other parties concerned in order to ensure that the number of six (6) Assistants on the Core is achieved; b.  Whenever possible, Member States should consider appointing their official to the Core for two years in order to ensure continuity; c. That the Chairman should on the basis of the annual Programme of Work, approach Member States to provide experts at their own cost, for specific periods, to assist in the fulfillment of his mandate.

Special Voluntary Contributions 105.  The Committee recommended: That Member States could make special voluntary contributions to the Group of 77 Account for ECDC, to be utilized in consultation with the Group of 77 in New York, with a view to assist in the strengthening of the supporting mechanisms of the Office of the Group of 77.

A.2.  ECDC Account 106.  The Committee reviewed the status of the G-77 Account for ECDC and expressed its deep concern at the low level of contributions from Member States to it. 107.  The Committee also expressed the urgent need for Member States which have not yet contributed to the Account to do so before the end of October 1984. 108. The Committee reiterated the provisions set forth in paragraph 89 Section IV 5 of the Caracas Programme of Action, and further reiterated the urgent need for all Member States to contribute to the Account with at least the minimum contribution of $1,000.00. To this end, the Committee requested the Chairman of the G-77 in New  York to send a note annually to the Foreign Ministers of Member States informing them about the status of the contributions to the Account since its establishment. 109. In this context, and recognizing the voluntary nature of contributions, the Committee requested the Chairman of the Group of 77 in New York to prepare, by January 1985, an annual estimate of expenses in accordance with the modalities of the Account which already exist. This annual estimate should be elaborated on the basis of an annual programme of work to be drawn up by the Chairman. The work programme will cover attachments including collection, collation, printing and distribution of documents and information regarding meetings of experts groups. 110.  In this context, the Committee requested the Chairman of the Group of 77 in New York to provide Member States with an opportunity to announce their contributions. 111.  The Committee decided that the ECDC Account would as hitherto be spent on activities that enjoy the approval of the G-77 members.

A.3.  Panel of Experts 112.  The Committee, taking note of the technical nature of tasks that the Office of the Chairman is requested to perform, recommends that the Chairman in consultation with the G-77 establish Panels of Experts on an ad-hoc basis. 113.  The Panels of experts would assist in the formulation of projects whenever called upon to do so by the Chairman of the Group of 77.

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114.  The Chairman of the G-77 will be responsible for coordinating the work of the panels of experts.

A.4.  Group of 77 Chapters 115.  The Committee re-emphasized the need for closer coordination among all the Chapters of the Group of 77, including the Group of 24, as an essential step for the implementation and follow-up of the Caracas Programme of Action. a.  To this end the Committee recommended that the 8th meeting of the Ministers of Foreign Affairs of the Group of 77 consider the possibilities and modalities for harmonizing the tenure, wherever feasible, of the Chairmen in Geneva, Nairobi, New York, Paris, Rome and Vienna. b.  The Committee further recommended that the 8th Ministerial Meeting of the Ministers of Foreign Affairs of the G-77 request that a special representative for ECDC activities be appointed by each chapter in order to facilitate the harmonization of mandate and work programmes.

A.5.  G-77 Bulletin 116.  The Committee stressed the continuing usefulness of the Group of 77 Bulletin as an effective vehicle for the dissemination of information and coordination of ECDC activities of the Group of 77. In this context, the Committee recommended: a)  That Member States contribute to the G-77 Bulletin materials pertaining to their ECDC activities. b)  That all Chapters of the Group of 77, which have not yet done so, designate at the earliest possible time, and not later than at the end of October 1984, their correspondents to the Bulletin. c)  The Chairman of the Group of 77 to explore the possibility for the Bulletin of the Group of 77 to become self-sustaining. d)  That the Chairman of the G-77 should ensure the role of the Bulletin of the G-77 as a mechanism to foster the views and interests of all Member States.

B.  National Mechanisms for ECDC B.1.  National Focal Points 117.  The Committee stressed the need to strengthen National Focal Points. It also re-emphasized the catalytic role that the National Focal Points are playing in the promotion and strengthening of economic and technical cooperation among developing countries. To this end, the Committee recommended: a)  That the Chairman of the Group compile a list of all recommendations made by technical meetings, and submit to Member States said recommendations together with a questionnaire regarding their implementation at the national level. b)  Suggested that interested Member States establish National Commissions at an appropriate level to ensure coordination on ECDC/TCDC activities.

C.  Institutional Resources: Action Committees, National Research and Training Centres of Multinational Scope (NRTCMS), International Organizations of Developing Countries, Economic Groupings, Research Institutes. 118.  The Committee considered that it was necessary to ensure the implementation of the recommendations of IFCC-II and IFCC-III before IFCC-IV and invited the Chairman to take all

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appropriate actions required, including calling on the institutions, the competent international organizations and the NRTCMS. 119.  The Committee, after having examined the proposal to request the Chairman of the G-77 in New York to consult member states on the possibility of establishing a Centre for the preparation of studies and elaboration of projects to contribute to the implementation of the CPA, asked the Chairman of the G-77 to submit this proposal for consideration of the 8th Meeting of the Ministers of Foreign Affairs of the Group of 77. 120.  The Committee recommended: a.  In this context, that the Chairman of the Group of 77 prepares and submits to the IFCC IV, a detailed report on the implementation of the recommendations in regard to the National Research and Training Centres of Multinational Scope (NRTCMS), Economic Groupings, and Research Institutes adopted at Tunis and Cartagena. b.  That the Chairman of the Group of 77 submits a list to the IFCC-IV of research institutes approached by him, and to report on the responses received from those institutes. c.  That the Group of 77 would facilitate the access of the Chairman to the research and other relevant organizations of developing countries in order to obtain on a regular basis their cooperation, studies and collection of data relevant to the Group of 77. d.  That the Chairman, on the basis of the mandates given to him for the implementation of the CPA at the IFCC and the 8th Ministerial Meeting, prepares an annual programme of work with a view to facilitating their implementation.

D.  Financial Resources D.1.  ECDC Trust Fund 121.  The Committee considered agenda item on the ECDC Trust Fund. It discussed the modalities and guidelines for the use of the Fund and in this context made the following recommendations: 122. The Chairman, in consultation with the Group of 77 was requested to establish an open-ended working group in New  York to formulate specific guidelines and modalities; the working group should take into consideration, inter-alia, the following: a)  The execution of projects by Member Governments of the G-77. b)  Development of projects by experts or relevant institutions of member countries. c)  To focus on projects of an inter-regional nature which may have a multiplier effect. d)  To achieve maximum economic advantage, consider the merits of safeguarding the principal and utilizing the interest for financing agreed projects. e)  To take into account the experience of previous cooperation activities which utilize a similar mechanism. f)  The report of the working group is to be approved by the G-77. 123.  On the financing of the GSTP Project out of the ECDC Trust Fund the Committee recommended that expenditures under the project be reviewed periodically so as to ensure that it is implemented at the minimum possible cost. 124.  The ECDC Trust Fund should not be used as a substitute for resources available to the UN Agencies for undertaking ECDC activities. The UN system should continue to use its own resources for funding such activities. 125.  Further utilization of resources from the Trust Fund be postponed until the finalization of modalities and guidelines mentioned above when approved by the G-77.

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VI.  The UN System’s Contribution to the Implementation of the CPA 126.  The Committee considered the report on support from International Organizations to the implementation of the CPA, and heard statements from delegations of the Group of 77 and representatives of the United Nations. 127.  Recognizing the importance of strengthening the role of the UN system in the promotion of ECDC, the Committee recommended that the Chairman of the Group of 77 in New York should: a)  Ensure that the Cross-organizational Programme Analysis (COPA) on ECDC under preparation by the UN for presentation in 1985, should not merely be an inventory of projects but contain an assessment of the implementation by the UN system of its mandates and provide information on percentages of expenditures on ECDC so that the COPA could serve as a basis for evaluating UN system’s efforts to promote the CPA. b) Address a formal communication by the middle of October, based on an annual programme of work, emanating from mandates given to him at IFCC-III and the 8th Ministerial Meeting conveying to the Director General for Development and International Economic Cooperation (DIEC) of the United Nations a checklist of projects and priorities for inclusion in the UN programme budget proposals for the biennium 1986-1987. c)  The Secretary General of the United Nations should be requested to include a section on ECDC in his annual Project Performance Report, and the Director General of DIEC should also be requested to suggest ways and means of integrating ECDC into the operational activities of the UN system in his Policy Review Report during 1986. d)  Take steps to ensure that the United Nations organs, in particular DIESA, and specialized agencies involved in policy research and analysis or operational activities treat ECDC as an integral part of international economic cooperation and development issues and incorporate it into their regular work programmes and surveys. e)  Consult with the Administrative Committee on Coordination (ACC) to keep under regular review the ECDC activities of the UN system and ensure a better implementation of the existing mandates in this regard. f)  Consult with UNDP and other organizations of the system involved in operational activities to evaluate ways and means of injecting a higher ECDC and TCDC content in their project designs, including, inter-alia, procurement of goods and services from the developing countries, increased allocation of country IPF’s for TCDC activities, alteration of UNDP rules and procedures in this regard. g)  Particularly in its ECDC/TCDC activities the UN system should made better use of developing countries’ research, consultancy, training and other specialized institutions in order to facilitate their full involvement in these efforts. The Group of 77 should ensure in this regard that the UN, especially UNITAR, closely relate their work to the requirements of the CPA. h)  Should make every effort to ensure that the UN system establishes, at an early date, the mechanism for monitoring and coordinating ECDC activities within the UN system and that these activities relate to the CPA.

VII.  Harmonization between the Group of 77 and the Non-Aligned Countries ECDC Programmes 128.  The Committee considered the report on Harmonization between the ECDC programmes of the Group of 77 and the Movement of Non-aligned Countries. It noted that progress had been made in the avoidance of duplication in the holding of meetings under their respective programmes for economic cooperation.

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129.  The Committee recommended the continuation of the process of harmonization in order to achieve greater complementarities. It called upon the Chairman of the G-77 in New York to hold consultations with the Chairman of the Coordination Bureau of the Non-Aligned Movement in New York in this regard.

VIII.  ECDC as a response to the Global Economic Crisis Proposals on the Multisectoral Information Network 130.  The Committee took note with interest of the MSIN project document and requested governments to provide their comments on the said document submitted by the Chairman of the G-77 not later than the end of March 1985. 131.  The Committee invited the Chairman of the Group of 77 in New York to convene in June 1985, a High-level Intergovernmental Meeting with the participation of Experts to consider the project document together with the comments made by governments and to formulate and adopt the pilot project of the MSIN Project. In this context, the Committee took note with appreciation of the generous offers made by the Government of Colombia to host the High-level Intergovernmental Meeting, and to provide the headquarters for the MSIN. 132.  The Chairman of the Group of 77, in consultation with governments, should initiate the appropriate procedure for the nomination of the project manager whenever deemed necessary. 133. The Committee commended the Research Centre for Cooperation among Developing Countries (RCCDC) in Ljubljana, the Government of Mexico and UNESCO for their assistance in preparing the project document on MSIN at no cost to the Group of 77 and expressed the hope that their valuable cooperation be continued.

Revision of the ECDC Calendar 134.  The Committee: a.  Recommended that the Chairman of the G-77 include in the annual programme of work for 1985 the convening of High-level Sectoral Review meetings in those areas where the implementation of the CPA has reached a point which would justify such meetings, bearing in mind the calendar of meetings approved at IFCC-II in Tunis. b.  Decided that IFCC-IV should evaluate progress in the areas covered by the sectoral review meetings convened before IFCC-IV in order to launch or promote concrete cooperation in programmes or projects in those areas.

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4.  Fourth Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-IV), Jakarta, Indonesia, 19–23 August 1985 a.  Final Report. I.  Introduction and Organizational Matters A. Introduction 1.  Pursuant to the Caracas Programme of Action (CPA) and at the invitation of the Government of Indonesia, the Fourth meeting of the Intergovernmental Follow up and Coordination Committee (IFCC-IV) was held in Jakarta from 19 to 23 August 1985. 2. The Meeting was attended by 56 delegations from the following Member States of the Group of 77: Afghanistan, Algeria, Argentina, Bangladesh, Benin, Botswana, Brazil, Brunei Darussalam, Burundi, Central African Republic, Chad, Chile, Colombia, Cuba, Democratic People’s Republic of Korea, Democratic Yemen, Djibouti, Egypt, Ethiopia, Guinea, Haiti, India, Indonesia, Iraq, Islamic Republic of Iran, Kenya, Laos People’s Democratic Republic, Lesotho, Libyan Arab Jamahiriya, Malaysia, Mali, Malta, Mexico, Nicaragua, Nigeria, Pakistan, Papua New Guinea, Peru, Philippines, Republic of Korea, Romania, Sao Tome and Principe, Saudi Arabia, Sierra Leone, Singapore, Sri Lanka, Sudan, Thailand, Togo, Tunisia, United Republic of Tanzania, Venezuela, Vietnam, Yemen Arab Republic, Yugoslavia, Zaire. 3.  Representatives from the following offices and organizations of the United Nations System participated as observers: DIEC, DIESA, ESCAP, FAO, ILO, UNCTAD, UNDP, UNESCO, UNIDO. 4.  Representatives from the following organizations and research institutes of the developing countries also attended the Meeting: ASEAN Secretariat, International Centre for Public Enterprises (ICPE), Research Information System of Non-Aligned and other Developing Countries (RIS), Association of State Trading Organizations of Developing Countries (ASTRO).

B.  Election of Officers 5. At its opening session, the Committee elected by acclamation H.E. Mr Atmono Suryo (Indonesia),Director-General for Foreign Economic Relations, Department of Foreign Affairs as Chairman. The Committee also elected by acclamation H.E Mr G.A. Falase, Ambassador of Nigeria to the Republic of Indonesia and Ms Tibisay Urdaneta, Minister Counsellor, International Cooperation Department, Ministry of Foreign Affairs of Venezuela as Vice-Chairmen.

C.  Adoption of the Agenda and Organization of Work 6.  The Intergovernmental Committee adopted the draft agenda.

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7.  The Committee decided to meet only in Plenary. 8.  The Bureau of the Intergovernmental Committee was assisted by the Core of Assistants to the Chairman of the G-77 in New York and a Secretary of the Meeting from the host country.

D. Documentation 9.  The Intergovernmental Committee had before it the Reports of three (3) Technical Meetings held in pursuance of the implementation of the CPA since IFCC-III as well as other documentation prepared by the Office of the Chairman of the G-77 in New York.

E.  Opening Statements 10.  An opening statement was delivered by H.E. Mr Wagih Rushdy, Ambassador of the Arab Republic of Egypt to the Republic of Indonesia, on behalf of Ambassador Ahmed Tawfik Khalil, Chairman of the Group of 77, who because of unforeseen reasons, was unable to attend the Meeting. 11.  Ambassador Rushdy welcomed the participants to the Meeting and expressed his appreciation to the Government and people of Indonesia for the excellent arrangements made for hosting the Meeting and the warm reception accorded to the delegations. 12.  In his statement, he stressed that while developing countries would continue at the Fortieth Session of the General Assembly to engage the North in a meaningful dialogue, it was important that they reinvigorate their efforts to strengthen South-South Cooperation. He urged developing countries to move ahead rapidly and with a sense of renewed determination towards the implementation of the Caracas Programme of Action. Collective self-reliance, he stated, was both a political and an economic necessity. ECDC was a viable opportunity of reducing the vulnerability to the vagaries of the prevailing international economic situation and it offered an optimal path for improving bargaining strength in North-South dialogue. 13.  Concluding, he reminded delegations that IFCC-IV in Jakarta offered a historic opportunity for developing countries to renew their commitment to the implementation of the CPA with a strong sense of determination to succeed. He urged developing countries to be bold and pragmatic in their approach to realize what it takes to make the programme succeed and never to hesitate to provide it. On a final note of advice, he suggested that developing countries pause to consider what they have done, what they have not done, what they can and should do. 14.  In his statement on behalf of the host country, H.E. Dr Mochtar Kusumaatmadja, Minister of Foreign Affairs of the Republic of Indonesia, underscored that the urgent task of the developing countries was to generate necessary enthusiasm and sustain the momentum in implementing their various economic and technical cooperation schemes as the foundation for promoting self-reliance. 15.  He stressed the importance of considering economic cooperation among developing countries as an essential element of an overall strategy for the development of our national economies as well as a most crucial instrument in defining our common struggle for the establishment of the New International Economic Order. 16.  Concluding, the Foreign Minister reminded delegations that one of the tasks of this meeting should be an exploration of how best we can inject new vigour and dynamism in implementing economic cooperation among developing countries. In doing so, he said, we would be able to recapture the spirit and momentum generated by the major South-South conferences and to channel it into the consistent implementation of the provisions of the Caracas Programme of Action. 17.  He strongly urged developing countries to approach these cooperative endeavours with seriousness, realism and optimism.

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18.  In his statement, H.E. Mr Moerdiono, Minister/Secretary of the Cabinet of the Republic of Indonesia, stressed that during the last thirty years, major progress had been achieved in the political arena and encouraging results had been noted in economic and technical cooperation at subregional and regional levels. At the global level, however, South-South economic cooperation and especially the technical cooperation had been side-tracked during the period. 19.  The Minister emphasized that it was our task to review and appraise what should and could be achieved further. One of the sectors identified in the CPA which proved to be promising for further expansion and amplifications is the TCDC. Within the context of TCDC, Indonesia was ready to impart and share the experience and know-how it has in the technical operational aspects of STO. 20. The Minister, in his final remarks, generously offered, on behalf of the Government of Indonesia, to organize in Indonesia technical meetings and training courses in procurement, stock maintaining and distribution of foodstuffs. The specific area of cooperation that is chosen could meet the need of the majority of developing countries in their endeavour to cope with the present international economic crisis. 21.  In his statement on behalf of the Chairman of the Non-Aligned Movement (NAM), H.E. Mr P.M.S. Malik, Deputy Permanent Representative of India to the United Nations in New York, stated that the Movement of Non-Aligned countries had recognized the vast potential and importance of ECDC since its inception. Collective self-reliance among developing countries has over the years evolved as a corner-stone of the philosophy of the Movement. In this context, he underlined that the Seventh Summit of Non-Aligned Countries at New Delhi in 1983 had adopted a Declaration on collective self-reliance, pledging at the highest political level the commitment to strengthen and deepen ECDC and accord high priority to the harmonization of programmes of ECDC in our national policies and programmes. 22.  He stated that the Fourth Meeting of the IFCC provided a valuable opportunity for a frank and thorough review of where we stood in South-South cooperation. We should, he added, identify gaps where these existed and factors which hindered the attainment of our objectives and devise realistic strategies and modalities to inject a new sense of life and purpose in our programmes and endeavours. 23.  Ambassador Malik referred to the recently concluded Ministerial Meeting in New Delhi on the Global System of Trade Preferences (GSTP). This was in response to the call made at Cartagena that a political impetus was required for progress in these negotiations. The Ministerial Meeting has set in place the necessary process for the launching of the negotiations. He stressed that the establishment of a Global System of Trade Preferences (GSTP) among developing countries would strengthen the base for economic development. 24.  In conclusion, he mentioned that the Non-Aligned Movement played, and would continue to play, a catalytic role in intensifying ECDC. Towards this end, member countries of the Group of 77 and the NAM must devote their full energies.

F.  Adoption of the Report 25. At its closing session, the Fourth Meeting of the Intergovernmental Follow up and Coordination Committee adopted the Report, as contained hereunder.

G. Acknowledgements 26.  The Meeting expressed deep appreciation to the President, the Government and the people of Indonesia for their hospitality and excellent arrangements made for the Meeting.

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27.  The Committee also expressed its profound gratitude for the opportunity to be received by H.E. the President of the Republic of Indonesia. During the audience, H.E. President Suharto urged the delegates to renew their determination to rely on their own strength and resources in the development process of their respective countries. A resolution of thanks to H.E. the President of the Republic of Indonesia was proposed by the delegation of Pakistan and approved unanimously by the Committee. The delegation of Egypt moved that a cable of thanks be sent to H.E. Minister Mochtar Kusumaatmadja, and the delegation of Brazil moved that a cable of thanks be sent to H.E. Minister Moerdiono. The two motions were approved unanimously. The delegation of Pakistan moved a vote of thanks to the Coordinator of the Core of Assistants and members of the Core for their dedicated efforts which have greatly contributed to the successful conclusion of the Meeting.

H.  Closure of the Meeting 28.  The Chairman of the Meeting, H.E. Mr Atmono Suryo closed the Meeting by expressing deep satisfaction at the outcome of the Meeting and thanking all the delegates and staff for their valuable cooperation. 29.  The Chairman also expressed his particular appreciation to the Coordinator and the Core of Assistants for their cooperation and assistance which have substantially contributed to the success of the meeting.

II.  Consideration of the Reports of Technical Meetings held since IFCC-III A. Industrialization 30.  The Committee considered the Report of the Meeting of Experts on Cooperation in the Field of Civil Engineering, Building Materials and Equipment held in Zagreb (Yugoslavia) from 11 to 13 September 1984. The Report was introduced by the delegation of Yugoslavia. 31.  The Committee recognized that there was sufficient potential capacity in the field of consulting engineering in developing countries to meet their needs. In this way, developing countries could save their financial resources and make use of their own experts who are in a better position to evaluate the needs of the developing countries and find appropriate and adequate solutions. 32.  The Committee also stressed the importance of collection of information in the field of the construction industry at the national level and the exchange of this information at subregional, regional and interregional levels. 33.  The Committee: a.  Welcomed the recommendation contained in the Zagreb Report concerning the cooperation among consulting organizations of developing countries and requested the Chairman of the Group of 77 to request UNIDO to prepare a feasibility study on the possibilities of establishing an international association of consulting organizations. b.  Welcomed the offer made by the delegation of Cuba to host in June 1986 a Meeting on Consultancy, Building and Engineering and requested the Chairman of the Group of 77 to undertake necessary consultations with member countries regarding the date and technical preparation of the Meeting. c.  Requested the Chairman of the Group of 77 to explore, with the Institute for Developing Countries, Zagreb, and relevant international organizations, the possibilities of preparing a Directory of Consulting and Engineering Institutions, as well as construction companies and

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manufactures of building materials and equipment, for world engineering works in developing countries.

B.  Technical Cooperation among Developing Countries (TCDC) B.1.  Multisectoral Information Network (MSIN) 34.  The Committee considered the Report of the Intergovernmental Meeting of Experts on the Multisectoral Information Network Pilot Project (MSIN) held in Bogota (Colombia) from 2 to 5 July 1985. The Report was introduced by the delegation of Colombia. 35.  The Committee welcomed the Report and reaffirmed their interest in and support for the establishment of the MSIN. They highlighted the need for the avoidance of duplication and also the need for the harmonization between the MSIN and the already existing information networks in developing countries as well as those within the UN agencies. 36.  The representative from UNDP expressed the organization’s willingness to give continued assistance to the development of the MSIN. He made reference to the Information Referral System (INRES), operational since January 1985, which has replied to various inquiries received from a large number of developing countries. Other aspects of the use of INRES are under examination by the UNDP. He urged developing countries to make greater use of INRES, and invited members of the Group of 77 to acquaint themselves in New  York with the working of INRES. 37.  The Committee: a.  Invited the Chairman of the Group of 77 to undertake consultations, in accordance with paragraph 22 of the Report in order to promote the implementation of the MSIN pilot project. b.  Requested the Chairman of the Group of 77 to initiate the necessary consultations with the UNDP in order to finance the multilateral activities of the Project as mentioned in paragraph 49 of the above mentioned Report. c.  Requested the Chairman of the Group of 77 to ensure that detailed information concerning the financial and technical aspects of the project be provided by a panel of experts to be made up of the participating member countries.

C. Finance C.1. South Bank 38. The Committee considered the Report of the Intergovernmental Initiative Group on the South Bank held in New York from 24 to 28 June 1985. The representative of the Chairman of the Group of 77 introduced the Report to the Meeting. 39.  In its Report, the Initiative Group proposed the convening of a High-level Intergovernmental Group of Experts Meeting, not later than June 1986, to prepare policy proposals for consideration by member countries of the Group of 77. 40.  Some participants welcomed the proposal and highlighted the necessity of ensuring wide participation by member countries as an expression of their political will. 41.  One delegation underlined the need for financial commitment by member countries to the South Bank. 42.  One delegation reminded the participants that at IFCC III, it presented and circulated a study concerning the evaluation of the feasibility of the South Bank, showing the non-viability of the project.

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43.  Several delegations pointed out that their position remains unchanged and that they could not associate themselves with the idea of the Bank and explained their reasons for such a position. 44.  The Committee: a.  Decided that a High-level Intergovernmental Group of Experts Meeting be held in accordance with paragraph 12 of the Report on the Technical Meeting held on the South Bank. b.  Recommended that the Chairman of the Group of 77 should carry out consultations, in this regard, in a wider context in order to reflect the political involvement of member countries.

D. Trade D.1.  Global System of Trade Preferences (GSTP) 45.  The delegation of India informed the participants of the outcome of the Ministerial Meeting of the Developing Countries on the GSTP, held in New Delhi from 22 to 26 July 1985. 46.  The Ministerial Meeting adopted a declaration on the GSTP in which it endorsed and carried forward the work done in Geneva on the ground rules of the GSTP and agreed on a firm timetable which envisages finalizing the legal framework for the GSTP by November 1985 and that the negotiations start by May 1986 and be completed by May 1987. 47.  The Committee: a.  Took note with appreciation of the convening of the Ministerial Meeting in New Delhi and welcomed the recommendations adopted at that Meeting. b.  Welcomed the offer made by Brazil at the Ministerial Meeting to host the next Ministerial Meeting on GSTP in April 1986. c.  Reiterated the importance of GSTP for the expansion of trade among developing countries and the equitable distribution of its benefits.

D.2.  Association of State Trading Organizations (ASTRO) 48.  The Executive Director of the International Association of State Trading Organizations of Developing Countries (ASTRO), informed the participants of the objectives of ASTRO and that it would serve as a channel of communications between State Trading Organizations (STO’s). 49.  The Committee was informed about the activities of ASTRO which would embrace programmes such as: training programs, arranging periodical market consultancy meetings, collection and dissemination of market information, with a view to achieving effective mutual expansion in state trading among developing countries and the exchange of information on import requirements and counter trade. 50.  Some delegates suggested that the possibility of annual allocations of funds from the ECDC Trust Fund be considered after the modalities and guidelines for the use of the ECDC Trust Fund have been agreed upon. 51.  The Committee: a. Took note with appreciation of the information provided by the Executive Director of ASTRO on the establishment and work of the organization. b.  Invited interested State Trading Organizations of member countries to join the International Association of State Trading Organizations (ASTRO).

E.  Food and Agriculture 52.  The Committee welcomed the reiteration of the offer made by Cuba to host, in May 1986, a Meeting of Experts on Small Boat Building.

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F. Energy 53.  Several delegations underlined the importance of the establishment of the Action Committee on Fossil Fuels as an important contribution to the implementation of the CPA in the field of energy. 54.  The Committee encouraged the countries which had expressed interest in participating in the Action Committee, to intensify efforts for the completion of its establishment and took note with satisfaction, in this regard, of the meeting to be convened in the second half of 1985 to this end.

III.  Supporting Mechanisms A.  Core of Assistants 55.  The Committee expressed their support for the work carried out by the Core of Assistants and expressed their appreciation to the Governments of Egypt, Tunisia and Yugoslavia, who designated members to the Core of Assistants. 56.  The Committee welcomed the announcement made by the delegations of Chile, India and Indonesia to designate one official each to the Core of Assistants. 57.  The Committee recalled the decision adopted at IFCC-III, that member countries should consider appointing their officials to the Core of Assistants for two years in order to ensure continuity and expressed disappointment that this objective had not been achieved. 58.  Several delegations stressed that as the process of implementation of the CPA was moving into its second phase, it was necessary that the Core of Assistants be provided with specific tasks and areas of responsibility, so as to maximize their contribution. 59.  The Committee: a.  Recommended that a system must be developed so that two Core of Assistants are provided in one year and two in the succeeding year. This will ensure the overlap required for continuity of operations; b.  Recommended that to ensure continuity, the member of the Core of Assistants from the country of the Chairman should continue to work in Office for at least an additional year following the termination of the country’s tenure of Office of Chairmanship; c.  Recommended that the host countries of the IFCC designate a member to the Core of Assistants in accordance with the provisions of the CPA.

B.  ECDC Account 60.  Some participants pledged to make urgent contributions to the ECDC Account. 61.  The Committee recalled the provision of paragraph 89 section IV 5 of the CPA and once again reiterated the urgent need for all member countries to contribute to the Account at least the minimum suggested contribution of US$ 1,000.00. 62.  The Committee expressed its appreciation to the countries which pledged further contribution to the ECDC Account.

C.  Documentation Centre/G-77 Bulletin 63.  The Committee expressed its appreciation for the activities of the Documentation Centre which inter alia ensures the publication and the distribution of the G-77 Bulletin, which has been serving the practical purpose of acquainting member countries with the activities towards the promotion of ECDC.

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64.  The Committee: a.  Recommended that Member Countries, through their Permanent Missions in New York, contribute information on their ECDC activities to the G-77 Bulletin by sending materials; b.  Invited all Chapters of the Group of 77 to designate their correspondents to the G-77 Bulletin, with a view to facilitating the provision of information pertaining to their respective activities in the area of ECDC; c.  Recommended that Member Countries, through their Permanent Missions in New York, provide the Documentation Centre with various materials, studies, reports, data, etc. to enrich the quality of reference material on ECDC available at the Documentation Centre.

D.  G-77 Chapters 65.  The Committee considered the Report of the Sixth Meeting of the Chairmen/Coordinators of the Group of 77 held in Geneva in January 1985. 66.  The need for a prompt and wider circulation of the Report was stressed by some delegations with a view to informing member countries about the activities undertaken by the Group of 77 Chapters. 67.  The Committee: a.  Recommended that every Chairman communicates to his colleagues a brief summary of the important Meetings held at his Headquarters and indicates the positions of the Group of 77 and other groups, as well as the list of documents distributed in this regard; b.  Invited all Chairmen to prepare, well in advance, and in the working languages of the Group of 77 (if possible), the summary and the necessary documentation relating to the questions they would wish to raise in the Coordinators’ Meeting; c.  Invited the Chairman of the Group of 77 in New York to disseminate, at regular intervals, to all member countries, information on issues discussed at the Meeting of the Chairmen/ Coordinators of the Group of 77.

E.  Panel of Experts 68. The Committee recalled paragraphs 112 and 113 of the IFCC-III Report, inviting the Chairman of the Group of 77 to establish Panel of Experts on an Ad-hoc basis. Such Panels of Experts would assist him in the formulation of the technical aspects of projects in ECDC. 69.  The Committee: -   Recommended that offers by member countries of the services of their experts take into consideration paragraph 105 of IFCC-III, rendering such services within the framework of the special voluntary contributions referred to. Also, member countries may consider hosting such panels of experts as a special voluntary contribution. -   In this connection, the Committee recommended that the Chairman of the Group of 77 carry out consultations in order to facilitate such participation in panels by experts from all interested member countries.

F.  National Focal Points 70. The Committee highlighted the role of the National Focal Points in the promotion of ECDC-TCDC and underlined the importance of strengthening the cooperation and coordination among National Focal Points at subregional, regional and interregional levels. They also stressed

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the necessity for closer coordination and communication between the National Focal Points and the Office of the Chairman. 71.  The Committee: -   Recommended the convening of a meeting, with a view to sharing the experience among existing National Focal Points (NFP) in order to improve their effectiveness and welcomed the offer of assistance made by the UNDP to this effect.

G.  Action Committees 72.  Several delegations expressed their full support and commitment to the establishment of Action Committees as effective instruments towards the implementation of the CPA. 73. The Committee expressed its concern at the delay of the establishment of the Action Committee on Food and Agriculture as recommended by IFCC III. 74.  Several delegations supported the establishment of the Action Committee on Inter-enterprise cooperation. 75.  The Committee: -   Requested the Chairman of the Group of 77 in New York to hold consultation with the Chairman of the Group of 77 in Rome, towards the establishment of the Action Committee on Food and Agriculture.

IV.  ECDC Trust Fund 76.  The Committee stressed that the ECDC Trust Fund should be used prudently and rationally, and reiterated the need for the early completion of the guidelines and modalities to be used as recommended by IFCC-III. Some delegations underlined the necessity for mutual support of the Trust Fund and the ECDC Account for important projects and that a functional link between the two should be established. 77.  Some delegates suggested that only the interest accrued from the funds in the ECDC Trust Fund should be used for the financing of projects, while the principal capital would not be used. 78.  The Committee: a.  Requested the Chairman of the G-77 to seek the assistance of a panel of experts to elaborate guidelines and modalities for the use of the ECDC Trust Fund and to submit their report, for approval, to the G-77 in New York as soon as possible; b.  Reiterated paragraphs 124 and 125 of the Report of IFCC-III on the use of the resources of the ECDC Trust Fund.

V.  Evaluation of the State of the Implementation of the CPA 79.  The Report of the Chairman of the Group of 77 was the main document before IFCC IV. All delegations commended the frankness and realistic approach followed in the assessment contained in the Report. The Committee considered the Report thought-provoking and a constructive, candid and comprehensive discussion followed. 80.  The Committee was of the view that the implementation of the CPA had reached a crucial stage. Deep concern was expressed by most delegations at the lack of progress so far in its implementation. It was felt that a greater effort was needed on the part of member countries to move towards the acceleration of the process of implementation. 81.  The Committee reiterated its full agreement on the necessity of reaffirming and strengthening its commitment to ECDC/TCDC as elaborated in Caracas.

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82.  The Committee was convinced of the urgency to translate this commitment into actionoriented measures that would regenerate the momentum for the consistent implementation of the Caracas Programme of Action with a full sense of solidarity and realism. 83.  The Committee emphasized the importance of strengthening the supporting mechanisms as they are instrumental to the implementation of the CPA. In this regard, it was reiterated that the Core of Assistants should be maintained at the number of six (6), with a view to ensuring effective performance commensurate with the various tasks entrusted to the Chairman. 84.  Areas of responsibilities should be clearly defined and assigned to members of the Core of Assistants in order to support the duties assigned to the Chairman by the Group of 77 under the CPA, including maintaining closer contact with member countries through National Focal Points. 85.  The Committee expressed its deep concern at the continuing critical status of the ECDC Account, emphasizing that adequate resources were essential for the normal functioning of the Office of the Chairman in the implementation of the CPA. The Committee appealed to all member countries to make timely and necessary contribution to the Account. 86.  To facilitate the implementation of ECDC activities, the Committee urged the member countries to ensure that the level of representation at Meetings, as far as technical qualifications and expertise are concerned, be adequate and that greater efforts be made to increase participation in these Meetings. 87.  Mention was made of the need to strengthen the National Focal Points to increase their effectiveness. 88.  The Committee noted that four years had elapsed since the adoption, by the Group of 77, of the Caracas Programme of Action. Since then, a number of Technical and Expert level Meetings had been held, which had made a series of Recommendations and Proposals. 89.  The Recommendations had delineated the parameters of South-South cooperation and served the useful purpose of providing a conceptual framework for this cooperation. 90.  The Committee felt that the Recommendations covered a number of areas, and if implemented in full, could give substance and life to the Caracas Programme of Action. In this context, the Chairman of the Group of 77 should undertake consultation to evaluate the various proposals made, with a view to establishing the economic feasibility and priority for their inclusion in the medium term programme. 91.  The Committee discussed the proposal for convening a High-level Meeting to evaluate the present situation and decide on the future course of action. Several approaches were put forward. Some reservations were expressed regarding the timelines of convening a High-level Meeting. Several delegations maintained that a High-level Meeting should be very well prepared for, and that it should be both of a political and technical nature. An idea was put forward to convert the next IFCC Meeting into a High-level Meeting. 92.  Many delegations recognized the need to shift the focus of implementation to specific projects, on the basis of participation by interested countries. This approach would be based on the establishment of the economic viability of the projects, thus making it possible to raise resources in the context of the interest of participating countries. 93.  In order to achieve necessary concrete results in the context of the original aims of the CPA, it was considered necessary that the implementation of the CPA focuses for the immediate future on an indicative list of projects on the basis of the work already carried out. 94.  The Chairman of the Group of 77 was requested to convey the conclusions of this assessment to the forthcoming Ministerial Meeting of the Group of 77 in New York, as this will facilitate its task in undertaking its biennial review of ECDC.

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VI.  UN System’s Contribution towards the Implementation of the CPA A.  United Nations Organs, Organizations and Bodies 95.  The Committee welcomed the suggestions made by the Chairman of the Group of 77 on the U.N. System’s contribution towards the implementation of the CPA and underlined the necessity for the Organs, Organizations and Bodies of the U.N. System to incorporate ECDC/TCDC in their mainstream activities. 96.  The Committee: -   Took note of all the suggestions contained in documents. i.  Requested the Chairman of the G-77 to take urgent necessary consultations and follow up measures to implement the specific suggestions and to keep the Group of 77 in New York fully briefed on the outcome of his efforts in this regard; ii.  Requested the Chairman to call upon the UN organizations with separate ECDC and TCDC departments and units to facilitate the necessary coordination between them and other departments of the U.N. System in order to integrate ECDC and TCDC into the mainstream and substantive activities of the organizations concerned; iii.  Requested member countries of the Group of 77 on the CPC to give special attention to that aspect of its work concerning specific programmes and projects in support of ECDC and TCDC to be implemented by the UN organizations.

B.  U.N. Regional Commissions 97.  The Committee noted the activities undertaken by the Chairman of the Group of 77 in the implementation of paragraph 127(h) of IFCC-III in relation to the U.N. Regional Commissions. 98.  The Committee recognized that the support of the U.N. Regional Commissions has great potentials and possibilities for effective and operational TCDC and ECDC programmes and activities. 99.  The Committee: a.  Urged all Regional Commissions to put into effect the specific project proposals for the promotion of inter-regional TCDC and ECDC as agreed by the Executive Secretaries of the respective U.N. Regional Commissions at the Meeting in July 1985. b.  Urged member countries of the Regional Commission to initiate joint action in utilizing the existing potentials and possibilities of their respective U.N. Regional Commissions to promote and support their specific TCDC and ECDC programmes and activities in line with the CPA on ECDC.

VII.  Support Activities in Developing Countries Towards the Implementation of the CPA Regional Economic Groupings and Research Institutes 100.  The Committee underlined the importance of the role that Intergovernmental and Regional Economic Groupings, Training Centers of Multinational Scope and Research Institutes have in the promotion of ECDC. 101.  The Committee expressed its hope for a more adequate and relevant response by the institutions, approached by the Chairman of the Group of 77.

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102.  The Committee: a.  Urged member countries to request the Secretariats of the Intergovernmental Regional Economic Groupings and Research Institutes to provide the Chairman of the Group of 77 with copies of their annual reports as well as other relevant information regarding their activities towards the implementation of the CPA; b.  Requested member countries to provide the Chairman of the Group of 77, through their National Focal Points, with an updated list of their National Research and Training Centers of Multinational Scope and a resume of their activities and objectives; c.  Requested the Chairman of the Group of 77 to continue to compile and distribute information regarding Regional Economic Groupings and Institutions and to request the U.N. System for the relevant information; d.  Underlined the importance of fostering closer links between the work programme of the groups of Secretariats of the Regional Economic Groupings, which have been meeting under UNCTAD’s auspices, and the work programme of the Group of 77 for the implementation of the CPA; e.  Invited member countries of the Group of 77 to participate in the International Centre for Public Enterprises in Developing Countries (ICPE) and make use of its activities in the implementation of the Caracas Programme of Action when public enterprises are concerned; f.  Invited member countries of the Group of 77 to participate in the Research Information System for the Non-Aligned and other Developing Countries (RIS) and make use of its facilities in strengthening ECDC.

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5.  The Cairo Declaration on Economic Cooperation among Developing Countries adopted by the High-level Meeting on Economic Cooperation among Developing Countries, Cairo, Egypt, 18–23 August 1986* a.  The Cairo Declaration Contents I.  Cairo Declaration on Economic Cooperation among Developing Countries II.  Report of the High-level Meeting on Economic Cooperation among Developing Countries III.  Decision and Resolution adopted at the High-level Meeting on Economic Cooperation among Developing Countries

I.  Cairo Declaration on Economic Cooperation among Developing Countries The Ministers and Heads of Delegations of the States Members of the Group of 77, Having assembled at a High-Level Meeting in Cairo from 18 to 23 August 1986 under the patronage of His Excellency Mr Mohamed Hosni Mubarak, the President of the Arab Republic of Egypt, to evaluate the progress made in the implementation of the Caracas Programme of Action and to decide on the future course of action with the objective of giving impetus and greater dynamism to economic development through economic co-operation among developing countries members of the Group of 77, Hereby adopt the following Declaration: 1.  They solemnly reaffirmed their full and unwavering support and commitment to economic cooperation among developing countries and reiterated their adherence to the principles, objectives and framework for such cooperation inspired by the historic 1962 Cairo Conference on the Problems of Economic Development; 2.  They stressed that, over the years, economic cooperation among developing countries has become a tangible reality that has evolved into innovative concepts based on the principle of collective self-reliance. These concepts were crystallized into precise objectives and translated into detailed programmes and projects in several sectors of economic cooperation; 3.  Having reviewed the implementation of the Caracas Programme of Action, they reaffirmed the need to intensify economic cooperation among developing countries on a self-generating, self-sustaining and self-financing basis and agreed: (a)  To integrate in the national development plans and policies of the member countries, objectives and priorities of economic cooperation among developing countries and specific programmes and projects for promoting it; (b) To establish a sector-by-sector scale of priorities, including inter-sectoral integration based on the criteria of mutuality of interest, economic benefits, viability and feasibility of projects and programmes;

*

The Ministers for Foreign Affairs of the Member States of the Group of 77 at their 9th Annual Meeting held in New York from 2 to 4 October 1985 decided to convert the Fifth Session of the Intergovernmental Follow up and Coordination Committee (IFCC-V) into a High-level Meeting on Economic Cooperation among Developing Countries, which was held in Cairo, Egypt, from 18 to 23 August 1986.

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(c)  To encourage the participation of non-governmental entities; (d)  To encourage greater mobility of capital, human and scientific and technological resources across borders among developing countries, inter alia, through appropriate policies, procedures, rules and regulations’; (e) To give particular attention to promoting the pattern of production, consumption and trade to reflect the imperative of economic co-operation among developing countries; (f)  To engage without delay in negotiations for putting in place the necessary institutional and policy infrastructure in the related areas of money, finance, trade and industry to promote economic cooperation among developing countries, including specifically: (i)  Successful conclusion of the negotiation on the Global System of Trade Preferences among developing countries within the time-frame already agreed upon; (ii)  Establishment of the necessary monetary and financing underpinning for expanded trade flows among developing countries, including trade between State trading organizations; (iii)  Strengthening the institutional framework in the field of commodities, including producers associations, the Council of Producers’ Association and consultative groups, as appropriate, in order to improve the market conditions and to ensure increased earnings from primary commodities of export interest to them; (iv)  Joint projects for the utilization of natural resources and enhancement of productive capacities, including the establishment of joint ventures; (v)  Strengthening the flow of and access to information supportive of economic cooperation among developing countries by drawing upon and fully utilizing all existing networks within the United Nations system and regional organizations and through the establishment of the Multisectoral Information Network, as soon as possible; 4.  They reaffirmed that determined efforts shall be made to utilize the full potential of regional and sub-regional groupings among developing countries; 5.  They emphasized that research consultancy and training institutions in developing countries shall be increasingly involved in the identification, development and implementation of programmes and projects in economic cooperation among developing countries through appropriate networking and other devices; 6.  They agreed to increase exchange of technologies and experiences in all fields with a view to intensifying economic cooperation among developing countries. Priority should be given to food and agriculture as well as to processing of agricultural and mineral resources. They emphasized the need to strengthen their technological capacities and, in this regard, to cooperate with those developing countries needing such support; 7.  They re-emphasized that the dimension of economic cooperation among developing countries within operational activities of the United Nations system should be expanded through specific programmes and projects; 8.  They reaffirmed their continued adherence to the principle of equity and mutuality of benefits, with due regard for a special treatment of the least developed countries; 9.  In view of the critical economic situation in Africa, they agreed to promote their economic cooperation with the affected countries and to extend all possible support to them in the implementation of their rehabilitation and development programmes; 10.  They also underlined the interrelationship between peace, security, development and economic cooperation among developing countries and accordingly stressed the importance of settling all disputes among developing countries by peaceful means; 11.  They agreed to further encourage activities designed to bring the peoples of the developing countries closer through, inter alia, increasing their awareness of the mutual benefits and

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potentials of economic cooperation among developing countries and intensifying their involvement in the implementation of its programmes and projects.

II.  Report of the High-level Meeting on Economic Cooperation among Developing Countries A. Introduction 1.  Pursuant to the decision of the Ninth Ministerial Meeting of the Ministers for Foreign Affairs of the Group of 77, held in New York in October 1985, and at the invitation of the Government of Arab Republic of Egypt, the High-level Meeting on Economic Co-operation among Developing Countries was held at Cairo from 18 to 23 August 1986. 2.  The Meeting was attended by 78 delegations from the following members of the Group of 77, many of which were headed by Ministers or other high-ranking officials: Afghanistan, Algeria, Angola, Argentina, Bahrain, Bangladesh, Bolivia, Brazil, Brunei Darussalam, Burma, Burundi, Cameroon, Central African Republic, Chad, Chile, Colombia, Congo, Cote d’Ivoire, Cuba, Cyprus, Democratic Kampuchea, Democratic People’s Republic of Korea, Democratic Yemen, Ecuador, Egypt, Gabon, Ghana, Guatemala, Guinea, Guinea-Bissau, India, Indonesia, Iraq, Jordan, Kenya, Kuwait, Lebanon, Lesotho, Liberia, Madagascar, Malaysia, Mali, Malta, Mexico, Morocco, Nepal, Nicaragua, Niger, Nigeria, Oman, Pakistan, Palestine Liberation Organization, Peru, Philippines, Qatar, Republic of Korea, Romania, Rwanda, Saudi Arabia, Singapore, Somalia, Sri Lanka, Sudan, Suriname, Thailand, Togo, Tunisia, Uganda, United Arab Emirates, United Republic of Tanzania, Uruguay, Venezuela, Viet Nam, Yemen, Yugoslavia, Zaire, Zambia, and Zimbabwe. 3.  The Chairmen of the Group of 77 in Geneva, Nairobi, Paris, Rome and Vienna participated. 4.  Representatives from the following offices and organizations of the United Nations system were also present at the Meeting:  Department of International Economic Cooperation of the United Nations Secretariat, Economic and Social Commission for Western Asia, United Nations Conference on Trade and Development, United Nations Development Programme, International Labour Organization, Food and Agriculture Organization of the United Nations, United Nations Educational, Scientific and Cultural Organization, International Fund for Agricultural Development and United Nations Industrial Development Organization. 5.  Representatives from the following organizations and research institutes of the developing countries also attended the Meeting: Association of State Trading Organizations of Developing Countries, International Centre for Public Enterprises in Developing Countries and Research Centre for Cooperation with Developing Countries.

B.  Election of Officers 6.  At its opening session, the Meeting elected by acclamation His Excellency Dr Ahmed Abdel Meguid, Deputy Prime Minister and Minister for Foreign Affairs of Egypt, as President of the Meeting. The Meeting also elected by acclamation His Excellency Mr Kazi Zafar Ahmed, Deputy Prime Minister and Minister of Commerce of Bangladesh, and Ambassador Enrique Ter Horst of Venezuela, as Vice-Presidents.

C.  Adoption of the Agenda and Organization of Work 7.  The Meeting decided to meet in plenary for a general debate and established two open-ended working groups on the ECDC Trust Fund and support of the United Nations system to economic

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cooperation among developing countries. The Working Group on the Trust Fund was chaired by Mr Ter Horst, Vice-President of the Meeting. The Working Group on the United Nations system and economic cooperation among developing countries was chaired by Mr Dubey, Additional Secretary in the Ministry of External Affairs of India. 8.  The Bureau of the Meeting was assisted by the Core of Assistants to the Chairman of the Group of 77 in New York and by representatives of the host country.

D. Documentation 9.  The Meeting had before it the following documents prepared by the Office of the Chairman of the Group of 77 in New York: (a) Review of economic cooperation among developing countries- Ideas for future work (report of the Chairman); (b)  Supporting mechanisms; (c)  ECDC Trust Fund. 10.  A series of information documents was also distributed at the Meeting.

E.  Opening Statements 11.  The Meeting was inaugurated by His Excellency Dr Ali Lotfi, Prime Minister of Egypt, who delivered on behalf of His Excellency Muhamed Hosni Mubarak, President of the Arab Republic of Egypt, a message to the conference. In his message, President Mubarak emphasized the importance of the Meeting, coming five years after the adoption of the Caracas Programme of Action. He stated that South-South Cooperation (SSC) must remain the main pillar of the strategy and giant efforts of the Group of 77. It could also serve as a response and an answer to the world economic crisis as well as an effective means for improving the position of developing countries and their collective bargaining power. He stressed the importance of assessing the progress achieved so far and the need to identify impediments to economic cooperation among developing countries. The time had come, he said, to give a new impetus to the implementation of the Caracas Programme of Action on the basis of a realistic and objective assessment of available resources. 12.  The interim Chairman of the Meeting, His Excellency Dr Ibrahim Tabakovic, Member of the Federal Executive Council of Yugoslavia, on behalf of the members of the Group of 77, paid tribute to the Government and people of Egypt for hosting the High-level Meeting and expressed heartfelt appreciation for the warm reception accorded. 13.  At the opening session, a statement was also delivered by His Excellency Mr K. R. Narayanan, Minister of State for External Affairs of India, as the representative of the Chairman of the Non-Aligned Movement. Mr Narayanan underlined the importance if this Meeting, especially since it was being held on the eve of the Eighth Summit of the Movement of the Non-Aligned Countries at Harare, Zimbabwe. He emphasized that in this period of great stress for the world economy South-South cooperation had become a historical necessity and a logical response to the challenge of development in a grossly unequal world economic order. 14.  In his statement before the opening session, Dr Ahmed Esmat Abdel Meguid, Deputy Prime Minister and Minister for Foreign Affairs of Egypt, said the philosophy of collective self-reliance comprised a positive concept emphasizing that it was not an alternative to North-South relations. He emphasized the importance of a sustained and fruitful coordination between the Non-Aligned Movement and the Group of 77 in all economic fields. He concluded that the critical economic situation in Africa reflected the manifold problems of developing countries. He stressed on behalf of the Meeting support to and solidarity with the two brotherly peoples struggling for their

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liberty in South Africa and Namibia. He reaffirmed the need for a just solution to the Palestinian question, through the implementation of all relevant United Nations resolutions, to enable the Palestinian people to exercise their legitimate right to self-determination. 15.  In his address to the Meeting, the Chairman of the Group of 77, His Excellency Ambassador Ignac Golob, emphasized that the consideration of the issue of economic cooperation among developing countries should be raised to a higher level and should be given a much greater role and priority both in national economic policies and international economic relations. He stressed that in order to make economic cooperation among developing countries prosper on a more lasting basis the Group of 77 should open and multiply all possible channels of communication among member countries, not only at the governmental but at all other relevant levels as well. He underlined that perceived economic benefit must become the basis in the selection of programmes and policies. He emphasized that it was only on that principle that programmes and projects adopted could be self-sustaining, self-generating and self-financing.

F.  Adoption of the Final Documents 16.  At its closing session the Meeting adopted the following documents: (a)  Cairo Declaration on economic cooperation among developing countries (part I  of the final documents); (b)  Decision on the economic conditions in occupied Palestinian territories (part III); (c)  Resolution on Southern Africa (part III); (d) Report on the High-level Meeting on Economic Co-operation among Developing Countries, as contained hereunder.

G.  Operative Paragraphs of the Report 17.  The Meeting reaffirmed the relevance of economic cooperation among developing countries as an indispensable means of restructuring international economic relationships for the benefit of developing countries. It reiterated the pivotal role South-South cooperation had in the context of the unfavorable international economic environment. The Meeting reaffirmed the political commitment of all developing countries to the goal of collective self-reliance and to that end the further elaboration and intensification of endeavors for economic cooperation among developing countries. 18. In this context, the Meeting reviewed the implementation of the Caracas Programme of Action as a sectoral blueprint for concrete action. It was acknowledged that despite some achievements the results of that effort had largely lagged behind the needs and capacities of developing countries to produce concrete projects and programmes. 19. In defining a future course of action the meeting delineated certain ideas for future strategy. 20.  The Meeting felt that a critical factor in the promotion of economic cooperation among developing countries was its integration into national policy-making. In that context developing countries needed to accord a greater priority to objectives of such cooperation enabling the adoption of specific domestic measures that allow for systematic exploration of the possibilities of economic cooperation among developing countries as a means of achieving national development goals. Only in that way could projects and programmes of economic cooperation among developing countries flow out of an assessment of national needs and priorities. 21. A  scale of priorities to be outlined. Economic cooperation among developing countries needed to liberate itself from the paralysis of excessive thrust. Limited but sure progress was a

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better formula for increasing South-South cooperation than absolute goals that remained unimplemented. 22.  According to the Meeting, a selective step-by-step approach to workable, implementable, realistic and above all economically viable programmes would appear to be the way for building the foundations of more ambitious schemes in the future. 23.  Perceived economic benefit must become the basis in selecting programmes and policies pursued. It was only on that principle that programmes and projects adopted could be self-sustaining, self-generating and self-financing. Each project could not be expected to be of equal interest to all member countries. There should be scope, therefore, for a limited number of countries that perceived economic benefit in a particular proposal or project to move rapidly to taking such a project to the implementational stage, always leaving open the possibility of other countries subsequently joining the project. It was those criteria that would make economic cooperation among developing countries take root and become an essential tool for the development process of developing countries. 24.  Action committees could play a vital role in strengthening the thrust of groups of countries in achieving desired projects and programmes. Such instruments, specifically mentioned in the Caracas Programme of Action as an important supporting mechanism, needed to be galvanized and activated. 25.  More attention needed to be given to the mechanisms of implementation, to the mandatory and unavoidable spadework that needed to precede, at the micro level, the implementation of projects and programmes. That would require thorough examination of elements such as identification of beneficiary countries, economies benefits, complementarities, needs, finances, follow-up mechanisms and infrastructural requirements. 26.  Technical meetings in different fields of economic cooperation among developing countries should be convened only after the identification, inter alia, of the following elements: identification of participation countries on the principle of perceived economic benefits, expert level attendance, and circulation in advance of adequate documentation. When held, such meetings should invariably consider the specific mechanisms for the implementation of the recommendations made and fix responsibility in that regard, the time framework for the implementation, resource requirements and how they could be met, and the concrete follow-up framework required. Further, the financing of meetings should become more and more the responsibility of the participating governmental and/or non-governmental entities with an interest in the concerned project or proposal. 27.  Programmes of economic cooperation among developing countries must be provided the requisite professional underpinning. Professional consultancy organizations of competence are available in developing countries and their expertise needed to be tapped more fully. Consideration should be given to methods of institutionally involving those organizations in the implementation of the Caracas Programme of Action. Specific tasks and projects needed also to be allocated to research institutes in developing countries in order to involve them in a regular framework of support for the Group of 77. 28.  The Meeting noted with appreciation the results of the Ministerial Meeting at Brasilia of the Negotiating Committee on the Global System of Trading Preferences among developing countries, held on 22 and 23 May 1986, which symbolized the political will of the signatories to make the concept of a Global System of Trade Preferences an operational reality. Among ongoing projects of the Group of 77, the Global System offered a real and significant opportunity to enhance trade cooperation among developing countries and to restructure the international trading system on a more equitable basis. The Meeting recognized the historic significance of the fact that it was for the first time that developing countries members of the Group of 77 had reached agreement on the Global System as a provisional legal framework for the conduct of the first round of negotiations, pending its signature and ratification and on the guidelines on techniques

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and modalities for the first round of negotiations. The Meeting called upon developing countries members of the Group of 77 that had not yet done so to join the Global System of Trade Preferences by notifying the Chairman of the Negotiating Committee, not later than the prescribed date of 1 October 1986 their intention to participate in the first round of negotiations, and also called upon members to submit request lists not later than the prescribed date of 31 December 1986 in order for negotiations for the exchange of concessions to commence, as agreed, from 1 January 1987. It welcomed the offer made by Yugoslavia at the Brasilia Ministerial Meeting to host a ministerial meeting of the Negotiating Committee after the completion of the first round of negotiations to be held, in principle, in September 1987. 29.  The Meeting received with appreciation the report of the Executive Director of the Association of State Trading Organizations (ASTRO) and recognized the Association to be an important instrument for the expansion of trade among developing countries. The Meeting urged developing countries to encourage their State trading organizations to join ASTRO in order to expand its base of activities. 30.  The Meeting stressed that a number of steps were necessary, including in the fields of payments unions, currency clearing arrangements, trade financing and trade information flows, in order to give further impetus to expanding trade flows among developing countries. To consider these matters a meeting of representatives of central banks and finance ministries of developing countries should be convened in cooperation and coordination with the Movement of Non-Aligned Countries. The Chairman of the Group of 77 in New York was requested to take the requisite steps to promote financial cooperation among developing countries. 31. Recalling the high priority given to the implementation of the Multisectoral Information Network, the Meeting reiterated the recommendations made on the subject by the Intergovernmental Follow-up and Coordination Committee at its fourth meeting and invited the Chairman of the Group of 77 in New York to pursue intensive consultation with interested countries to move into the preliminary phase of the pilot project with the aim of convening, no later than the first quarter of 1987, the technical panel of experts. The Meeting, noting that six countries had already notified the office of the Chairman in New York of their intention to participate in the project and that some countries had expressed their interest in the project, invited such countries to undertake, as a core group, promotional efforts to develop the project and enlarge its membership. 32.  The Meeting realized that financial underpinning was an essential element in efforts towards economic cooperation among developing countries. The process as regards the South Bank needed to be further pursued. Several delegations pointed out that their position remains unchanged and that they could not associate themselves with the idea of the Bank and explained their reasons for such a position. 33.  Initiatives in financial cooperation taken by developing countries at regional and sub-regional levels needed to be further strengthened and the possibility of elements of such cooperation being replicated in other regions needed to be examined. 34.  The Meeting underlined the fact that the burden of external indebtedness represented a major constraint for the developing countries and that an urgent solution needed to be found in the appropriate forums. 35. Economic cooperation among developing countries should not be considered only as an exclusive intergovernmental exercise. Non-governmental organizations such as chambers of commerce and industry and end-user enterprises should be brought into the mainstream of such activities. Specifically, a meeting of representatives of chambers of commerce and industry of developing countries could be convened. 36.  The Caracas Programme of Action had envisaged that national focal points would play a key role in the implementation of economic cooperation among developing countries. However, the

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system had not functioned effectively. In the light of the recommendations of the High-level Meeting, a meeting of national focal points should be organized as early as possible with an agenda exclusively devoted to examining what could be done to galvanize the network of national focal points. The meeting could be held on the occasion of the next session of the Intergovernmental Follow-up and Coordination Committee. 37.  In several sectors regional economic groupings had made considerable progress in implementing objectives of economic cooperation among developing countries. There was a need to link such regionally strengthened cooperation to the interregional level by exchange of experience and information flows. 38.  The Meeting invited member countries of the Group of 77 to participate in the work of the International Centre for Public Enterprises of Developing Countries and to make use of its activities on the implementation of the Caracas Programme of Action where public enterprises were concerned. 39.  The Meeting, having been apprised of the difficulties encountered in convening the third session of the Biennial Meeting of the National Heads of Technical Cooperation Agencies, invited the Chairman of the Group of 77 in New York to pursue his consultations so that that meeting was held before the next session of the Intergovernmental Follow-up and Coordination Committee. 40. The Meeting recommended that the Intergovernmental Follow-up and Coordination Committee, at its next session, should undertake a sectoral review of the Caracas Programme of Action with a view to furthering its implementation. 41.  Further harmonization and coordination between the Group of 77 and the Movement of the Non-Aligned Countries on the issue of economic cooperation among developing countries should be pursued. In that context, the joint report presented by the Chairmen of the Group of 77 and of the Non-Aligned Movement in New  York to the fifth meeting of the Action Programme of Economic Cooperation of the Non-Aligned Movement was of considerable importance. 42.  In order to enable the Chairman of the Group of 77 in New York to effectively carry out his functions, it was essential that the Core of Assistants in the Office of the Chairman be brought up to full strength. 43.  The Group of 77 Account for Economic Cooperation among Developing Countries needed to rise above its present depleted position if it was to maintain the role of the Office of the Chairman and its associated functions in a galvanized framework of economic cooperation among developing countries. The Meeting emphasized that the Account should not merely be viewed as a practical means for financing follow-up activities of the Caracas Programme of Action, but to a certain extent also as an expression of political importance attached to its implementation. The meeting, while reaffirming the voluntary nature of the contribution to the Account, recommended that all member countries, specially those that had not yet done so, contribute at least US$1,000 as suggested in the Programme of Action, on the basis of the annual system of replenishment. 44. While financing for meeting already agreed upon would be provided from the Account according to present practice, in the case of future meetings under the Caracas Programme of Action the issue would be reviewed through consultations prior to the next Session of the Intergovernmental Follow-up and Coordination Committee. In any event, it was agreed that scheduled meetings would not be abandoned or postponed on the grounds of the unavailability of financing from the Account. 45.  Of importance also was the question of greater and more intensive coordination between the Group of 77 in different United Nations Centres. A the next session of the Intergovernmental Follow-up and Coordination Committee the Chairmen of the Group of 77 in different United Nations Centres should meet to discuss the specific question of improved coordination and submit their recommendations in that regard for inclusion in the Report of the Committee.

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ECDC Trust Fund 46.  Recalling the great contribution to the furtherance of economic cooperation among developing countries of the late Manuel Perez-Guerrero, Minister of State for International Economic Affairs of Venezuela, and in particular the pioneering role he played in the holding of the Caracas High-level Conference on Economic Cooperation among Developing Countries, which was held in May 1981 and at which was adopted the Caracas Programme of Action, and, in the establishment of the ECDC Trust Fund, the Meeting decided, in honour of his memory, to name the ECDC Trust Fund as the Perez-Guerrero ECDC Trust Fund. 47.  The Meeting adopted the following guidelines and modalities for the utilization of the ECDC Trust Fund: (a)  Projects utilizing the Fund should be of such a nature that they lead to balanced and general benefits for the member countries of the Group of 77. These projects should be designed so as to have a maximum multiplier effect and, in the case of regional projects, serve as pilot projects for the other regions; (b) The objective the ECDC Trust Fund is to provide seed money for (a)  financing pre-investment/feasibility reports prepared by professional consultancy organizations in developing countries and (b) facilitating the implementation of projects; (c)  Normally, only the interest accruing on the Fund should be utilized. This would preserve intact the core capital; (d)  The Fund should not be used as a substitute for resources available to the United Nations agencies for undertaking activities in favour of economic cooperation among developing countries; (e) The utilization of the Fund shall be reviewed annually at the meetings of the Intergovernmental Follow-up and Coordination Committee; (f)  A committee of six experts, two from each region of the Group of 77, acting in their personal capacities, is hereby established. The Chairman of the Group of 77 in New York, after consultations with Member States of the Group, shall submit before the end of the year the names of the experts to the Group of 77 in New York for approval. The terms of office of the experts shall be two years. The establishment and functioning of this Committee shall not be a charge on the ECDC Trust Fund; (g)  The task of this Committee of Experts shall be to prepare a list of projects in order of priority in respect of which the preparations of pre-investment/feasibility reports could be assigned to professional consultancy organizations available in developing countries. The report of the Committee of Experts shall also include all relevant financial implications; (h) The report of the Committee of Experts shall be circulated to Governments by the Chairman of the Group of 77 in New York at least one month in advance of the next meeting of the Intergovernmental Committee. Both the Intergovernmental Committee and the Ministerial Meeting of the Group of 77 would be empowered to approve the report of the experts; (i)  Once the report is approved, pre-investment/feasibility reports shall be commissioned on a strictly time-bound basis. When available such pre-investment/feasibility reports shall be circulated by the Chairman of the Group of 77 in New York to all countries members of the Group of 77; (j)  Countries or groups of countries, including action committees, will continue to have the possibility of submitting projects to the Intergovernmental Committee and/or Ministerial Meetings of the Group of 77 for financing from the ECDC Trust Fund. To the extent possible, the views of the Committee of Experts would be ascertained on these projects;

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(k)  The implementation of project, including its financial aspects, would, on the principle of perceived economic benefit, be the responsibility of the participating countries. 48.  The Meeting reiterated the importance of expeditiously setting up the Committee of Experts envisaged in the guidelines and emphasized that its report should be ready by the time of the next Session of the Intergovernmental Committee.

Support of the United Nations, the United Nations System and Other International Organizations to Economic Cooperation among Developing Countries: 49.  The Meeting emphasized the important role of the United Nations, the Organizations of the United Nations system and other concerned international organizations, particularly the International Atomic Energy Agency, in promoting and strengthening economic and technical cooperation among developing countries. Their contribution should continue both through their regular programmes and through the identification of and support for specific projects and activities. 50.  The Meeting noted with appreciation the valuable work done by the United Nations, the United Nations system and other concerned organizations as reflected in the information provided by them in response to the request of the Chairman of the Group of 77 in April 1986. The Meeting was of the view that such information should continue to be made available in the future as it enhances transparency of the work being undertaken by the United Nations and other concerned international organizations. The Meeting also recognized that in several instances the role of the United Nations organizations and agencies was mainly catalytic in nature. 51.  The Meeting was of the view that there were sufficient mandates to enable the United Nations and other concerned international organizations to bring about further improvements in their policies, rules and procedures and to identify and support programmes and projects related to economic and technical cooperation among developing countries. 52.  The Meeting noted that some organizations and agencies of the United Nations system and other concerned international organizations had taken initiatives to promote innovative approaches to develop viable projects designed to promote economic and technical cooperation among developing countries. In this context, the Meeting underlined the importance of the role of the United Nations system in implementing, inter alia, the economic cooperation dimension of the United Nations Programme of Action for African Economic Recovery and Development 1986-1990 (General Assembly Resolution S-13/2), adopted by the Assembly at its thirteenth special session. The Meeting emphasized the need for the United Nations and all other concerned international organizations to continue and to intensify efforts to integrate the dimension of economic and technical cooperation among developing countries into their work programmes. 53.  The Meeting recommended that the Chairman of the Group of 77 should make necessary arrangements to ensure continuing dialogue between the Group of 77 and the Director-General for Development and International Economic Cooperation on aspects regarding economic and technical cooperation among developing countries of the operational activities of the United Nations system. 54.  The Meeting requested the Secretary-General of the United Nations and the executive heads of all other concerned international organizations to include and strengthen elements of economic and technical cooperation among developing countries in their respective programme budget proposals and to ensure appropriate monitoring and evaluation arrangements for their implementation. 55.  The Meeting was of the view that coordination within the United Nations system and all other concerned international organizations in the field of economic and technical cooperation among developing countries should continue to be further strengthened and that the Administrative

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Committee on Coordination (ACC) and its subsidiary bodies and joint meetings of the ACC and the Committee for Programme and Coordination should focus on selected and clearly identified issues with a view to facilitating the implementation of viable programmes and projects. 56.  The Meeting also urged the United Nations and all other concerned international organizations to find additional resources to be able to undertake an increased number of projects in the field of economic and technical cooperation among developing countries and to assist in the mobilization of financial resources for the implementation of identified projects. 57.  It was also the view of the Meeting that the support by the United Nations and all other concerned international organizations would be greatly facilitated by the strengthening of national focal points and by the ability of the developing countries to systematically pursue initiatives to promote economic and technical cooperation among developing countries in the various intergovernmental bodies of the United Nations and all other concerned international organizations. 58.  The Meeting also noted that while pursuing the project on the Multisectoral Information Network, the Group of 77 should make every effort fully to utilize existing information systems in the United Nations system and other concerned international organizations.

Other Matters 59. Background documentation and studies on various aspects and fields of South-South cooperation–made available to the participants of the High-level Meeting- prepared within the Research Programme on South-South Cooperation, coordinated by the Research Centre for Cooperation with Developing Countries of Yugoslavia and the Zimbabwe Institute of Development Studies, were greatly appreciated, and it was requested that all member countries of the Group of 77 should receive a complete set of the final versions of these documents through the Office of the Chairman of the Group of 77. The Meeting supported the proposal of the two research institutes to develop the Research Programme on South-South Cooperation into a standing activity to be carried out by a network of interested specialized research institutes from developing countries. 60.  The Meeting decided, after expressing its deep gratitude to the Government of Cuba for its offer to host the next Session of the Intergovernmental Follow-up and Coordination Committee, to hold that Session in Cuba in 1987. 61.  The Meeting took note of the information provided by the delegation of Malaysia on the South-South II Conference held in Kuala Lumpur in May 1986 and of its decision to establish a non-governmental independent commission of the South on development issues. 62.  The Meeting welcomed the initiative taken by the Government of Indonesia to convene a technical meeting on cooperation among State trading organizations in the field of fertilizers, scheduled to be held at Jakarta form 21 to 24 October 1986. 63.  It also welcomed the offer of the Government of Cuba to host the Meeting on Consultancy, Building and Engineering in March 1987. 64.  The Meeting emphasized that these technical meetings should take into account the guidelines on technical meetings as adopted in this Report, and as laid down in A Guide to ECDC:  Supplement to the ECDC Handbook published by the Office of the Chairman of the Group of 77 in 1983. 65. The Meeting noted with satisfaction the results achieved at the third meeting of the Coordinating Non-aligned Countries in the fields of agriculture and food, which met at Rabat, Morocco, from 28 to 31 July 1986, and which, in a spirit of continuity, laid great emphasis in its recommendation on economic cooperation among developing countries.

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H. Acknowledgements 66.  The Meeting expressed deep appreciation to the President, the Government and the people of Egypt for their hospitality and excellent arrangements made for the Meeting. 67. The Meeting expressed its profound gratitude for the opportunity to be received by His Excellency the President of the Arab Republic of Egypt. During the audience His Excellency President Mubarak urged the delegates to renew their determination to rely on their own strength and resources in the development process of their respective countries.

I.  Closure of the Meeting 68.  The President of the Meeting, His Excellency Dr.  Ahmed Esmat Abdel Meguid, Deputy Prime Minister and Minister for Foreign Affairs of the Arab Republic of Egypt, closed the Meeting by emphasizing the steadfast political commitment evidenced at the Meeting to the principles and objectives of the Group of 77. He expressed the hope that the positive results achieved at the Meeting would have a considerable impact on the future course of economic cooperation among developing countries. He thanked the High-level delegations that participated in the Meeting and commended their efforts in ensuring its successful outcome. 69.  The President also expressed his special appreciation to the Chairman of the Group of 77, Ambassador Ignac Golob, and to the Core of Assistants in preparing the basic documents for the Meeting and drawing up the final report.

III.  Decision and Resolution adopted at the High-level Meeting on Economic Cooperation among Developing Countries Decision on the Economic Conditions in the Occupied Palestinian Territories The High-level Meeting on Economic Cooperation among Developing Countries, Convinced that the continued occupation of the Palestinian territories is hindering the Palestinian people from fully utilizing their own natural resources to the benefit of their economic and social development and from participating fully in activities of economic cooperation among developing countries, Reaffirms the need for a just, peaceful and lasting solution to the Palestinian question in order to enable the Palestinian people to exercise their legitimate right to self-determination including their right to establish their independent State under the leadership of the Palestine Liberation Organization, their sole and legitimate representative, in fulfillment of the Charter and resolutions of the United Nations.

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6.  Sixth Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-VI), Havana, Cuba, 7–12 September 1987 a. Final Report I.  Introduction and Organizational Matters A. Introduction 1. Pursuant to the decision of the High-level Meeting on Economic Cooperation among Developing Countries, held at Cairo in August 1986, and at the invitation of the Government of the Republic of Cuba, the Sixth Meeting of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-VI) was held in Havana from 7 to 12 September 1987. 2. The Meeting was attended by 68 delegations from the following members of the Group of 77: Afghanistan, Algeria, Angola, Argentina, Bangladesh, Benin, Bolivia, Brazil, Burkina Faso, Central African Republic, Chad, Chile, Comoros, Congo, Cuba, Cyprus, Democratic People’s Republic of Korea, Ecuador, Equatorial Guinea, Egypt, Ethiopia, Ghana, Guatemala, Guinea, Guinea Bissau, Guyana, Haiti, India, Indonesia, Iraq, Islamic Republic of Iran, Lao People’s Democratic Republic, Lesotho, Libyan Arab Jamahiriya, Malawi, Mali, Mexico, Morocco, Mozambique, Nepal, Nicaragua, Niger, Nigeria, Pakistan, Palestine Liberation Organization, Peru, People’s Democratic Republic of Yemen, Philippines, Republic of Korea, Romania, Rwanda, Sao Tome and Principle, Seychelles, Sierra Leone, Somalia, Syrian Arab Republic, Thailand, Togo, Tunisia, Uganda, United Republic of Tanzania, Uruguay, Venezuela, Viet Nam, Yugoslavia, Zaire and Zimbabwe. 3.  Representatives from the following offices and organizations of the United Nations system were also present at the Meeting: Economic Commission for Latin America and the Caribbean (on behalf of the Director-General for Development and International Economic Cooperation and the Regional Commissions). United Nations Conference on Trade and Development, United Nations Development Programme, International Labour Organization, Food and Agriculture Organization of the United Nations, United Nations Educational Scientific and Cultural Organization and the United Nations Industrial Development Organization. 4.  Representatives from the following organizations and research institutes of the developing countries also attended the Meeting: Association of State Trading Organizations of Developing Countries, International Centre for Public Enterprises in Developing Countries and the Organization for African Unity. 5.  A representative of South West Africa People’s Organization also attended the Meeting.

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B.  Election of Officers 6.  At its opening session, the Committee elected by acclamation His Excellency Mr Raul Roa Kouri, Deputy Minister of Foreign Affairs of the Republic of Cuba, as Chairman. The Committee also elected by acclamation His Excellency Mr Chandrashekhar Dasgupta, Deputy Permanent Representative of India to the United Nations, and His Excellency Mr Habib Kaabachi, Director of Multilateral Relations and Cooperation among Developing Countries in the Ministry of Foreign Affairs of Tunisia, as Vice-Chairmen.

C.  Adoption of the Agenda and Organization of Work 7.  The Committee adopted the agenda and decided to establish two Committees. Committee I was chaired by Mr Dasgupta, Vice-Chairman of the Meeting which considered item 4 while Committee II was chaired by Mr Kaabachi, Vice-Chairman of the Meeting which considered items 5 through 8. 8.  The Bureau of the Meeting was assisted by the Core of Assistants to the Chairman of the Group of 77 in New York and by representatives of the host country.

D. Documentation 9.  The Committee had before it the Report of the first Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/TCDC, the reports of technical meetings held in pursuance of the implementation of the Caracas Programme of Action (CPA), background and working documents prepared by the Office of the Chairman of the Group of77 in New York and a series of information documents.

E.  Opening Statements 10.  In his inaugural address, His Excellency Mr Isidoro Malmierca, Minister of Foreign Affairs of Cuba, reaffirmed Cuba’s determination to further the development and successful outcome of this Meeting. He also pointed out that our promise was the need for unity, solidarity and cooperation among Third World countries in the light of the serious problems we face as a result of today’s critical international economic situation. 11.  He stated that it was impossible to make a serious analysis of contemporary cooperation and development issues if we overlooked the absurd and irrational international economic order, in which the main burden of the industrialized capitalist world’s economic and social crisis falls with increasing force on the underdeveloped regions of the world. 12.  The Minister pointed out that cooperation among our peoples should in no way take the place of international cooperation. Because of the indifference and hostility shown toward our problems, we need to promote the self-sustained development of our economies and strive for the immediate economic and social transformation of our societies, relying first of all on our own efforts, resources and experience, but the international economic crisis and especially the payment of the service on the foreign debt prevent this. 13.  The Minister stated that this Meeting should make a real effective, contribution to strengthening the Caracas Programme of Action, establishing priorities for the implementation of its guidelines in order to concentrate its scant resources on those sectors and programmes that could benefit the greatest number of countries and that would have the maximum multiplying effect on other economic activities.

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14.  In his statement before the inaugural session of the Committee, the Chairman of the Group of 77 in New York, His Excellency Mr Fernando Andrade Diaz-Duran, Permanent Representative of Guatemala to the United Nations, welcomed the participants to the Meeting and expressed his deep appreciation to the Government and people of Cuba for their warm reception and hospitality and for the excellent arrangements made for the hosting of this Sixth Meeting of the Intergovernmental Follow-up and Coordination Committee. 15.  In his statement, Ambassador Andrade recalled the guidelines established by the Cairo High-level Meeting in August 1986. He stressed the need for developing countries to pursue their efforts in the field of ECDC/TCDC guided by realism and practical feasibility. In this framework, he provided a tour d’horizon of the agenda of the Meeting, noting that for the first time separate meetings had been scheduled to take place on the occasion of an IFCC meeting, thus contributing to make it an issue-oriented and concrete one. Ambassador Andrade also drew the attention of the Committee to the forthcoming meeting in December this year of the chambers of commerce and industry of developing countries and expressed his gratitude to the Government of Brazil for agreeing to host it. Finally, he outlined the extremely adverse international economic situation, but added that is precisely for this reason that developing countries must redouble their efforts for cooperation among themselves. 16.  The Executive Secretary of the United Nations Economic Commission for Latin America and the Caribbean, Mr Norberto Gonzalez, also delivered a statement on behalf of the Director-General for Development and International Economic Cooperation and the Regional Commissions. In his statement, the Executive Secretary stressed the importance attached by the United Nations system and the Regional Commissions to the strengthening of economic and technical cooperation among developing countries. He stated that all the key sectors identified in the Caracas Programme of Action are incorporated into the work programmes of the Regional Commissions. 17.  The Meeting also received a message from the Chairman of the Movement of Non-Aligned Countries, His Excellency Mr R.G. Mugabe, Prime Minister of Zimbabwe. He urged developing countries to continue their efforts in promoting and strengthening South-South cooperation and felt that this type of meeting provides an excellent opportunity for the adoption of action-oriented measures to enhance solidarity and mutual assistance among developing countries.

II.  Sectoral Review of the Caracas Programme of Action and Guidelines for Future Work 18. Pursuant to the recommendations of the High-level Meeting on Economic Cooperation among Developing Countries, held at Cairo in 1986, IFCC-VI considered a sectoral review of the Caracas Programme of Action and adopted the following recommendations with a view to furthering its implementation.

Trade 19.  The Committee reiterated that the Global System of Trade Preferences offers a real and significant opportunity to enhance trade cooperation among developing countries and to compensate for some of the inequities of the international trading system. It welcomed the progress achieved so far in the GSTP negotiations. It also recognized the validity of the GSTP as a valuable instrument for the promotion of trade among developing countries and underlined its particular importance at a time of grave erosion of the multilateral trading system, the increase of protectionism by developed countries, and the deterioration of the terms of trade. 20.  The Committee called upon participating developing countries to submit their offer lists as soon as possible, so that the first round of negotiations could be concluded at the Ministerial Meeting of the Negotiating Committee in Belgrade, Yugoslavia.

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21.  The Committee took note with appreciation of the information provided by the Executive Director of the International Association of State Trading Organizations of developing countries (ASTRO) on its work and the increased membership achieved, as well as on its perspectives and future programmes of work. It urged Governments of developing countries, members of the Group of 77, to encourage their State trading organizations to join ASTRO and participate in its work in order to further expand its activities. 22.  The Committee underlined the necessity for the exchange of information on end-uses of raw materials so as to enable member countries of the Group of 77 to increase their volume of tradable goods. 23.  The Committee also recommended the establishment of credit and payment arrangements on sub-regional, regional and interregional bases in order to increase trade flows among developing countries. 24.  The Committee welcomed the offer of the Government of Brazil to host the first meeting of Representatives of Chambers of Commerce and Industry of Developing Countries, members of the Group of 77, to be held in Rio de Janeiro, on 8–11 December 1987, and noted with appreciation the steps taken by the Chairman of the Group of 77 in this regard. It also expressed its gratitude to the UNDP and UNCTAD for their support. The Committee also urged member countries of the Group of 77 to assist in assuring that delegations from their respective chambers of commerce and industry attend this meeting. 25.  The Committee also emphasized the importance of increasing the flow of information on trade opportunities as a means of enhancing trade relations among developing countries and recommended that this should be looked into by the first Meeting of Representatives of the Chambers of Commerce and Industry of Developing Countries. 26.  The Committee welcomed the report of the Technical Meeting on Cooperation among State Trading Organizations in the Field of Fertilizers held in Jakarta, Indonesia, on 21–24 October 1986.

Technology 27.  The Committee expressed its gratitude to the Government of India for its offer to host the Centre of Science and Technology of Non-Aligned and other Developing Countries and welcomed the intimation that the Centre will soon become operational, following the attainment of the minimum of 30 countries signatories to the statute. In this connection, it recommended that the Centre for Science and Technology of the Non-Aligned and other Developing Countries be requested to serve, inter alia, as a clearing house for information regarding scientific and technical capacities of individual developing countries, including members of the Group of 77. 28.  The Committee emphasized the need for the enhancement of the exchange of information on appropriate, as well as new and high technologies among developing countries. It noted hat the Centre as well as the relevant organs and organizations of the United Nations system could contribute in this regard. It recommended also the intensification of contacts among Government officials responsible for science and technology, for which the Non-Aligned Intergovernmental Consultative Conference of Experts on New and High Technology, to be held in India in 1988, could be an appropriate occasion. 29. The Committee further emphasized the need to enhance cooperation among developing countries in the field of science and technology. In this regard, appropriate mechanisms should be established to further increase the transfer of technology among developing countries. 30. The Committee also underlined the need for more active coordination and cooperation between the Movement of Non-Aligned Countries and the Group of 77 towards the

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implementation of the Caracas Programme of Action (CPA) and the Action Programme for Economic Cooperation (APEC) in the sector of technology.

Food and Agriculture 31.  The Committee acknowledged the efforts being made by FAO and other specialized agencies of the United Nations system, as well as regional organizations and committees for the developing of food, agriculture, fishing and food security. 32.  The Committee recommended that the Group of 77 in Rome reactivate its working group (Group of 16). 33.  In this regard, the Committee requested the Group of 16: (a) to consider measures aimed at utilizing the technologies available in some countries members of the Group of 77, so as to enhance the technical capacities of less advanced members of the Group; (b)  to study proposals for enhancing food security in Africa; (c)  to follow up on the decisions and recommendations adopted at the Global Meeting on ECDC in the Food and Agriculture Sector held in Bucharest in 1984. 34.  Some delegations recommended that the WFP should be fully involved in the relevant activities of the CPA and recommended that the member countries of the Group of 77 as well as the WFP should assist needy developing countries, especially LDCs, in the establishment of food reserve stocks. 35.  The Committee welcomed the efforts made by IFAD in boosting South-South cooperation and its Special Programme for Africa. 36.  The Committee welcomed the report of the Expert Meeting on Water Resources Development and Management in Developing Countries held in Zagreb, Yugoslavia, on 10–12 December 1986. 37. The Committee also underlined the need for more active coordination and cooperation between the Movement of Non-Aligned Countries and the Group of 77 towards the implementation of the Caracas Programme of Action and the Action Programme for Economic Cooperation in the sector of food and agriculture.

Energy 38.  The Committee requested the Chairman of the Group of 77 to consult member countries of the Group so as to establish mechanisms for a better utilization of the information available from international agencies. 39.  The Committee also urged member countries to further expand the exchange of experience, especially regarding the rational use of energy, and the introduction and development of renewable sources of energy as well as the implementation of their national programmes in this regard. 40.  The Committee invited the Chairman of the Group of 77 to undertake the appropriate consultations in order to reactivate the Action Committee on Fossil Fuels. 41.  The Committee recognized the importance of the cooperation being provided by regional intergovernmental organizations and recommended that contacts among them should be promoted, with a view to increasing cooperation among developing countries in the field of energy.

Raw Materials 42.  The Committee welcomed the establishment of the Action Committee on Raw Materials and the offer of Nigeria to host its first meeting and requested the Chairman of the Group of 77 to

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circulate information to be received, on the proposed Action Committee, to all member countries of the Group of 77. The Committee was of the view that the Producers Associations of developing countries should fully participate in this meeting. 43.  The Committee emphasized the need to strengthen cooperation among developing countries in the field of commodities, in their primary and processed forms, in order to improve the terms of trade and ensure increased earnings from exports. In this regard, greater priority should be given to the extension of existing and the creation of new producers associations, specially among developing countries, to undertake various measures including trade promotion, programmes, exchange of information and statistics on the market situation, production, stocks and product developments, as well as to undertake supply rationalization measures with a view to bringing stability to the commodity field. Priority should also be given to the strengthening of cooperation among developing countries in the areas of processing, marketing and distribution of commodities. 44.  The Committee underlined the importance and vital contribution of raw materials to the economies of developing countries and welcomed the progress made at UNCTAD-VII, in Geneva, towards the early implementation of the Integrated Programme for Commodities and the operation of the Common Fund. In this regard, the Meeting urged countries, which have not yet done so, to sign and ratify the Common Fund Agreement.

Finance 45.  The Committee expressed its appreciation to the Government of Peru for the consultations it is engaged in with other developing countries on the possibility of holding in 1988, in Lima, a meeting of representatives of central banks and finance ministries of the developing countries. 46.  The Committee also reiterated the importance of making further progress in the sector of finance, especially concerning payment unions, currency clearance arrangements and trade financing, in order to further expand trade among developing countries and provide wider benefits to all participants in the GSTP. 47. The Committee welcomed Morocco’s offer to host the Second Consultation Meeting of Non-Aligned and other Developing countries on the External Debt during the second half of February 1988. The Committee recommended that delegations should include high-ranking officials of their respective ministries of finance and central banks. This meeting could also serve to initiate a preliminary exchange of views on issues related to monetary and financial cooperation among developing countries. 48.  Some delegations expressed their view that the proposal for the South Bank needed to be further pursued. They reiterated earlier relevant decisions.

Industrialization 49.  The Committee welcomed the Report of the Experts Meeting on Consultancy, Construction and Engineering held in Havana, Cuba, on 18–21 May 1987, and the creation of the Action Committee for Cooperation on Consultancy, Construction and Engineering and it also requested the Chairman of the Group of 77 to circulate the relevant information, so that interested countries might be encouraged to join the Action Committee. 50.  The Committee noted with appreciation the Report submitted by UNIDO on its activities in ECDC/TCDC. It also emphasized the need to increase the participation of UNIDO in ECDC activities of the Group of 77. In this regard, the Group of 77 in Vienna should seek support from UNIDO for its ECDC projects. 51.  The Committee also stressed the need for the Group of 77 to review the prospects for industrialization policies in developing countries, taking into account the impact of developments in

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the field of new and high technologies. In this regard, the Group of 77 in Vienna should organize a meeting with the cooperation of UNIDO. 52. The Committee welcomed the presentation made by the Minister of Public Works of Argentina on the establishment of the Latin American Structures Committee (CLAES), the National Research and Training Center of Multilateral Projection (CENICAM) and the future establishment of the Database for Consulting and Construction. This Database is to be coordinated with the Action Committee for Cooperation on Consultancy, Construction and Engineering. 53.  The Committee called upon Latin American countries to support the activities of CLAES and requested the Chairman of the Group of 77 to circulate information related to the CNICAM. 54.  The Committee further requested the Chairman of the Group of 77 to circulate information on the future Database for Consulting and Construction to the Construction agencies of the member countries, so that they could request to be connected, free of charge, to the local user’s final node and to have access to the Database when it is established. 55.  The Committee recommended that the Group of 77 in Vienna consider, inter alia, the establishment of a working group in order to improve coordination among the regional groups of the Group of 77 and to take charge of the relevant recommendations pertaining to industrialization, in close cooperation with the Chairman of the Group of 77 in New York.

Technical Cooperation Among Developing Countries (TCDC) 56. The Committee was of the view that the implementation of the CPA regarding TCDC reflected, on the one hand, the progress achieved by a number of member countries and, on the other, the downward trend in projects initiated by the Group of 77 in this field. 57.  The Committee welcomed the initiative taken by a number of developing countries, including Tunisia and Peru, to organize TCDC project programming activities in association with member countries of the Group of 77. It invited member countries to actively participate in similar future activities envisaged, inter alia, in Egypt, Indonesia, Pakistan and India. The Committee further appreciated the assistance of the Special Unit for TCDC of the UNDP in these programming activities. 58.  The Committee invited the United Nations system, particularly UNDP and the regional and subregional organizations such as regional development banks, to expand their assistance to TCDC projects among developing countries. 59.  The Committee welcomed with satisfaction the actions undertaken by several developing countries to place their expertise at the disposal of South-South Cooperation for training and provision of services in the fields of agriculture, health, energy, trade, industry, education, vocational training, civil service, maritime fishing, etc. It recommended further exchanges of information among developing countries on TCDC capacities and needs in order to enhance visibility in the field of technical cooperation and promote more effectively the use of the technical capabilities of the Group of 77. 60.  The Committee reiterated that National Focal Points for TCDC should be strengthened and invited all parties concerned to provide the assistance required by countries in order to create and/or reinforce focal point mechanisms. 61. The Committee noted that human resource development was increasingly recognized as being of critical importance to the successful implementation of the development programmes and projects and that it offered considerable potential for enhancing the level of, especially, TCDC activities. It further noted that this was another important area in which the support of organizations of the United Nations system could be more fully utilized.

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62. The Committee reiterated the importance of the Action Committee on Inter-enterprise Cooperation and invited the Chairman of the Group of 77 to undertake consultations in order to identify participating countries and to ensure the launching of the Action Committee. 63.  The Committee regretted that the Third Biennial Meeting of Directors of TCDC National Agencies was not held as scheduled in 1986, and recommended that the Chairman of the Group of 77 undertake the necessary consultations in order to facilitate the holding of this meeting prior to IFCC-VII and ensure its adequate preparation. 64.  Recalling the importance of developing a legal framework for TCDC, the Committee expressed its regret that the draft model contract for the recruitment of experts could not be concluded. It requested the Chairman of the Group of 77 to conclude the necessary consultations and to submit a proposal in this regard to the Third Biennial Meeting of Directors of TCDC National Agencies. 65. Reiterating the recommendations made at its previous session regarding the MSIN, the Committee noted the delay in the implementation of this priority project which is essential for strengthening ECDC/TCDC. It also expressed its concern that the meeting of the technical panel of experts, reiterated by the High-level Meeting on ECDC held in Cairo in 1986, which was to conclude the feasibility study to undertake the establishment of the network, could not be held. The Committee requested the Chairman of the Group of 77 to conduct intensive consultations with member countries with the view to reaching the required number of 15 countries for the first phase of the MSIN. In this regard, the Committee recommended that the Chairman of the Group of 77 convene, during the first half of 1988, a meeting of representatives of those countries that will have by then submitted their candidature for the MSIN pilot project, in order to agree on final practical modalities for the establishment of the MSIN, and to proceed with the installation of the necessary technical and administrative facilities. 66.  The Committee reiterated the importance for coordinating the positions within the Group of 77 in regard to the Meeting of the High-level Committee on Technical Cooperation among Developing Countries at the United Nations in New York.

General 67.  In order to give South-South cooperation a more dynamic, specific and operative content with the purpose of accelerating the process of implementation of the Caracas Programme of Action, the Committee suggested that: (a)  delegations to meetings relevant to the CPA should include directors of enterprises, economic managers or persons in charge of activities under consideration; (b)  countries which host meetings relevant to the CPA should envisage visits to enterprises or production units by the participants so as to establish direct contacts to encourage the sharing of acquired experiences of host countries in the fields in question.

III.  Consideration of the Report of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/TCDC 68. In accordance with the Guidelines of the Perez-Guerrero Trust Fund for ECDC/TCDC adopted at the Cairo High-level Meeting in August 1986, the Committee considered the Report of the Committee of Experts of the Trust Fund. 69.  The Committee expressed its deep sense of gratitude to the Government of Venezuela for having hosted the first meeting of the Committee of Experts. It expressed appreciation for the efforts made by the Committee of Experts and welcomed its Report. The Committee also expressed its thanks to Mr Eduardo Praselj, Chairman of the Committee of Experts, for introducing the Report and his presence during the IFCC.

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70.  The Committee took note of the fact that although this was the first meeting of the Committee of Experts, it has succeeded in identifying projects eligible for financing by the Fund. It considered appropriate that the criteria applied for the selection of projects should allow for flexibility. Cost effectiveness and profitability are elements that could bring greater precision to the selection process. There was also the need for more detailed information on the financial aspects and the objectives to be achieved by projects selected. 71.  The Committee considered that in the future it should have before it a list of all the projects submitted for consideration by the Committee of Experts. It emphasized that the projects that are selected should not duplicate existing projects in developing countries and should make optimum use of capacities which already exist in developing countries at the national, regional and interregional levels. It further stressed that in accordance with article (d) of the Guidelines of the Fund, the Fund should not be used as a substitute for resources available to the United Nations agencies for activities in favour of economic and technical cooperation among developing countries. 72.  With regard to the specific projects included in the recommendations of the Report of the Committee of Experts, the Committee decided the following:

1.  Facilitating the Implementation of the Multisectoral Information Network The Committee made the following observations: (1)  In accordance with paragraph 65 of IFCC-VI, the project document related to the feasibility report offered to be prepared by TIPS/IPS will be submitted for the consideration of the panel of experts on the MSIN pilot project due to meet in the first half of 1988. (2)  The disbursement of the US$15,000 recommended for the feasibility report will be released after the meeting of the panel of experts has expressed its views on the project document. With these observations which are brought to the attention of the Chairman of the Group of 77 in New York, the Committee approved the project and requested the Chairman of the Group of 77 in New York to report on its implementation to IFCC-VII.

2.  Interregional Trade Financing Facility The Committee approved the project, taking into account the statement by the representative of UNCTAD that UNCTAD was not in a position to finance this project.

3.  Group of 77 Information Bulletin The Committee made the following observations: (1)  The focus of the proposed bulletin should be on ECDC/TCDC activities. (2)  The coordinator-editor to be appointed in New York should be hired only for the duration of the project. (3) The project should function under the authority of the Chairman of the Group of 77 in New York who should also be responsible for its editorial policy. (4)  The possibility of making the bulletin monthly instead of twice monthly should be explored keeping in mind the need for quality over quantity. This would also entail a reduction in costs. This matter should be specifically examined at the review to be carried out by the Committee of Experts at the end of the first year trial period of the project. With these observations which are brought to the attention of the Chairman of the Group of 77 in New York, the Committee approved the project and requested the Chairman of the Group of 77 in New York to report on its implementation to IFCC-VII.

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4.  Development of Developing Countries’ Consultancy and Engineering Capacities The Committee made the following observation: The project should concentrate on strengthening consultancy and engineering capacities in developing countries, from a developmental approach. It should not, therefore, make references in the studies that it would undertake to negotiations being held in international fora. All references made in this regard in the project should be deleted. With this observation and change which are brought to the attention of the Chairman of the Group of 77 in New York, the Committee approved the project and requested the Chairman of the Group of 77 to report on its implementation to IFCC-VII.

5.  Action Committee of the Group of 77 for Cooperation in Consultancy, Construction and Engineering among Developing Countries The Committee made the following observations: (1)  That the Action Committee will receive the recommended amount of USD38,500 only after it has received a matching contribution of the same amount from its members. The Action Committee is requested to inform the Chairman of the Group of 77 once it has received this amount from its members. (2)  Requests for the financing of similar projects by Action Committees, existing or prospective, from the Perez-Guerrero Trust Fund for ECDC/TCDC will be considered by the Committee of Experts on the same parameters that governed the approval for providing financial support to the Action Committee on Consultancy, Construction and Engineering as a form of support to its preparatory phase in order to facilitate its early and effective launching. (3)  The Committee of Experts shall apply the same norms and modalities concerning the procedure of submission of requests for support and/or projects by other Action Committees. With the above observations taken into account, the Committee approved the project and requested the Chairman of the Group of 77 to follow up its implementation and report thereon to the meeting of IFCC-VII. 73.  The Committee further approved the recommendation, contained in paragraph 31 of the Report of the Committee of Experts, that when project proposals are received by IFCC or Ministerial Meetings of the Group of 77, such project proposals be referred to the Committee of Experts before a final decision is taken. In this context, the Committee took note of the feasibility study proposal on a ‘South-South Promotion Programme’ submitted by the Research Centre for Cooperation with Developing Countries of Ljubljana, Yugoslavia, and referred it to the Committee of Experts for consideration.

IV.  Consideration of the Report of the Meeting of the Heads of the National Focal Points for ECDC/TCDC 74. In accordance with paragraph 36 of the Report of the High-level Meeting on Economic Cooperation among Developing Countries held in Cairo in August 1986, the Meeting of Heads of the National Focal Points for ECC/TCDC was held on September 8 during IFCC-VI. The Report of this meeting as approved by the Committee is contained hereunder. 75.  The participants in the Meeting recognized this initiative as very useful and endorsed the suggestions contained in the background paper presented by the Office of the Chairman of the Group of 77 in New York, which made a realistic and critical analysis of the activities of the National Focal Points.

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76.  The participants in the Meeting recognized that political will is a vital element for galvanizing the National Focal Points network. ECDC/TCDC should become an integral part of national development policies and programmes. The National Focal Points need to be placed within the structure of government with appropriate authority for horizontal, system-wide coordination. 77.  It was further recognized that effective coordination at the national level would go a long way in strengthening the operation of National Focal Points. 78.  The need for appropriate training of the personnel that staff National Focal Points received wide endorsement. In this context, the lack of continuity of such personnel and the fact that work relating to ECDC/TCDC is in many cases only a subsidiary aspect of their overall work were cited as obstacles. 79.  It was also recognized that National Focal Points need to be appropriately equipped to carry out their functions. This is particularly so bearing in mind the immense increase in the volume of information relating to ECDC/TCDC activity, and the recent advances made in computers and informatics. 80.  The Meeting provided an opportunity for a valuable exchange of views on national experiences relating to National Focal Points. It was emphasized that such exchanges of information could help facilitate the policy changes that may be required at the national level as well. 81. The meeting took note of the cooperation possibilities that international agencies of the United Nations system–such as UNESCO, UNDP, UNCTAD, UNIDO and the ILO–could offer to strengthen National Focal Points through, inter alia, the training of personnel and logistical support. The Committee also considered possibilities for obtaining financing for such projects that would contribute to the attainment of these objectives.

Recommendations 82.  The participants in the meeting recommended that: -   annual meetings of the heads of the National Focal Points for ECDC/TCDC be held within the framework of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries of the Group of 77 as a means for exchanging information and experiences; -   the Focal Points elaborate a report on their activities and experience as well as needs and capacities on the basis of a standard format to be elaborated by the Office of the Chairman of the Group of 77. These reports would be circulated during IFCC meetings; -   the Chairman of the Group of 77 regularly update the list of National Focal Points for ECDC/TCDC and circulate it periodically; -   the possibilities for using UN and other financing agencies to support the implementation of projects strengthening National Focal Points be explored. These projects would be related to training personnel and providing logistical support and appropriate equipment. The Committee invited the Chairman of the Group of 77 to submit to the next meeting of the IFCC the results of the consultations undertaken in this regard; -   the use of sub-regional and regional structures be promoted to support ECDC/TCDC as a means for identifying cooperation possibilities; -   the National Focal Points identify and exchange views on their respective countries’ specific bilateral, regional and inter-regional cooperation potential with a view to promoting them into specific, feasible projects; -  the National Focal Points’ institutional capabilities for furthering ECDC/TCDC be strengthened by creating a network of sectoral focal points where required and promoting effective communication and coordination among them to ensure their optimal functioning.

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V.  Mechanisms for Coordination, Monitoring, Follow-up Action and Evaluation 83.  The Committee examined the different mechanisms for coordination, monitoring, follow up action and evaluation. It welcomed the strengthening of the Core of Assistants in the Office of the Chairman of the Group of 77, noting that the Core was now made up of seven members, of which four were full-time Assistants. 84.  The Committee expressed its gratitude to those Governments that had designated members to the Core of Assistants. It appealed to Governments to nominate members to the Core in the future to ensure that its strength continues to be maintained. 85.  The Committee reiterated its appeal to countries members of the Group of 77 to contribute to the ECDC Account so that the Group is able to play its role in implementing the decisions emanating from the Caracas Programme of Action and the reports of the IFCC meetings. 86.  The Committee endorsed the need for continued harmonization and coordination of efforts in the implementation of the Caracas Programme of Action and the Action Programme for Economic Cooperation of the Non-Aligned Movement. In this context, it recalled the relevant decision of the Extraordinary Ministerial Conference of Non-Aligned Countries on South-South Cooperation held in Pyongyang in June 1987, that the Chairman of the Group of 77 in New York would henceforth be invited to address the ministerial meetings of the Non-Aligned Movement. It stressed the need for a regular exchange of views between the Chairmen of the Group of 77 and the Non-Aligned Movement in New York, particularly in regard to planning a coordinated schedule of meetings under their respective programmes. It further emphasized the benefits of coordinated activity at the level of National Focal Points in the implementation of both the Caracas Programme of Acton and the Action Programme for Economic Cooperation of the Non-Aligned Movement. 87.  The Committee reiterated its appeal to Governments, research institutions, non-governmental organizations and other relevant entities of developing countries to contribute regularly their assessments and studies to the Bulletin published by the Office of the Chairman of the Group of 77 in New York. It further expressed the need to improve the quality and content of this Bulletin and guarantee its broadest dissemination. 88.  The Committee also expressed its appreciation for the activities of the Documentation Centre of the Office of the Chairman of the Group of 77 in New York. 89.  The Committee endorsed the importance of Action Committees as effective instruments towards the implementation of the CPA. In this context, it requested the Chairman of the Group of 77 to prepare an analytical report on the supporting mechanisms for the CPA, including the Action Committees, in the eight sectors of the CPA, in existence or envisaged to be established, on the basis, inter alia, of pertinent recommendations of G-77 technical meetings, together with an assessment of their functioning, in accordance with the relevant principles and guidelines spelled out in the CPA and IFCC meetings on the establishment of Action Committees as supporting mechanisms.

VI.  Harmonization and Coordination Among the Chapters of the Group of 77 90. The Committee emphasized the need for close coordination and harmonization of work among the different Chapters of the Group of 77. It took cognizance of certain difficulties in this regard including the non-concurrent tenures of coordinators in each Chapter and the different modalities of their functioning. It, however reiterated the appeal that such coordination be further strengthened and harmonized, in particular in the field of ECDC/TCDC activities and the

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implementation of the Caracas Programme of Action. In this context, it made the following recommendations: (a)  Periodic reports should be prepared by the different Chapters on the implementation and follow-up of the Caracas Programme of Action as well as on the activities of the UN agencies in the areas of ECDC/TCDC; such reports should be sent to IFCC meetings; (b)  Efforts should continue to be made to reinforce and improve the exchange and flow of information between Chapters on their respective activities; (c)  The Chairmen/Coordinators of the Chapters should continue to meet twice annually to provide for an integrated exchange of views; one of these meetings should, if possible, be held on the occasion of the second regular session of ECOSOC; (d)  The Chairman of the Group of 77 in New York should invite the Chairmen/Coordinators of the different Chapters to participate actively in the IFCC meetings and in their preparation.

VII.  Venue and Date of the Next IFCC Meeting 91.  The Committee agreed to defer this matter to the Eleventh Annual Ministerial Meeting of the Group of 77 in New York. The delegation of Peru requested the Chairman of the Group of 77 in New York to analyze through consultations the possibility of having IFCC meetings held every two years, taking into account the fact that the Annual Ministerial Meeting of the Group of 77 in New  York is expected on a biennial basis to specifically review activities in the areas of ECDC/TCDC.

VIII.  Other Matters 92. The Committee welcomed the establishment of the South Commission under the Chairmanship of H.E. Dr. Julius Nyerere of Tanzania and his appointment of members of the Commission as a positive development in the field of South-South cooperation. They expressed confidence that the South Commission will make a valuable contribution to South-South cooperation and urged all developing countries to give their unswerving support to the work of the Commission.

IX.  Closure of the Meeting 93.  At the closing session, the Sixth Meeting of the Intergovernmental Follow-up and Coordination Committee adopted its Report. 94.  The Chairman of the Meeting, His Excellency Mr Raul Roa Kouri, Deputy Minister of Foreign Affairs of the Republic of Cuba, closed the Meeting. 95.  A resolution of thanks to the host Government was proposed by the delegation of the Libyan Arab Jamahiriya and seconded by Peru and Nigeria. 96.  The Committee also expressed its particular appreciation to the Core of Assistants for their assistance which substantially contributed to the success of the Meeting. 97.  The Meeting received during its deliberations messages from Mr Idriss Jazairy, President of IFAD and Mr Henry S. Gill, Deputy Permanent Secretary of SELA, who wished success to the IFCC-VI.

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7.  Seventh Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-VII), Kuala Lumpur, Malaysia, 31 July–5 August 1989 a. Final Report I.  Introduction and Organizational Matters A. Introduction 1.  The Caracas Programme of Action provides for a review and follow-up mechanism of the activities envisaged under it. At the invitation of the Government of Malaysia, the seventh meeting of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-VII) was held in Kuala Lumpur from 31 July to 5 August 1989. 2. The meeting was attended by 63 delegations from the following member states of the Group of 77: Afghanistan, Algeria, Angola, Argentina, Bangladesh, Brazil, Burkina Faso, Burundi, Chad, Chile, Colombia, Comoros, Cuba, Democratic People’s Republic of Korea, Egypt, Equatorial Guinea, Ethiopia, Fiji, Gabon, Ghana, India, Indonesia, Iraq, Kenya, Kuwait, Lesotho, Libyan Arab Jamahiriya, Madagascar, Malawi, Malaysia, Mexico, Morocco, Myanmar, Nepal, Nicaragua, Niger, Nigeria, Oman, Pakistan, Palestine, Philippines, Republic of Korea, Romania, Rwanda, St. Lucia, Saudi Arabia, Senegal, Sierra Leone, Singapore, Somalia, Sri Lanka, Sudan, Thailand, Togo, Tunisia, Uganda, United Republic of Tanzania, Venezuela, Vietnam, Yemen Arab Republic, Yugoslavia, Zaire, and Zimbabwe. 3.  The representatives from the following organizations of the United Nations system were also present at the meeting: United Nations Development Programme, United Nations Conference on Trade and Development, Food and Agriculture Organization of the United Nations, United Nations Industrial Development Organization, United Nations Economic and Social Commission for Asia and the Pacific, and the International Labour Organization. 4.  The meeting was also attended by the Chairmen of the Group of 77 in New York, Geneva and Vienna, as well as a representative of the Group of 24 in Washington, D.C. 5.  The representative of the South Commission also attended the meeting.

B.  Election of Officers 6.  At its opening session, the Committee elected by acclamation His Excellency Ambassador Dali Mahmud Hashim, leader of the Malaysian delegation to the IFCC-VII, as Chairman. The Committee also elected by acclamation His Excellency Ambassador A.E.H. Emeny of Nigeria and His Excellency Ambassador Charles Stephen Flemming of St. Lucia as Vice-Chairmen.

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C.  Adoption of the Agenda and Organization of Work 7.  At its first meeting, the Committee adopted the agenda as well as its organization of work. The Committee decided also to establish a Committee of the Whole for the consideration of the items as its agenda. 8.  The Bureau of the Committee was assisted by the Core of Assistants to the Chairman of the Group of 77 in New York as well as by representatives of the host country.

D. Documentation 9.  The Committee had before it the working documents prepared by he Office of the Chairman of the Group of 77 in New York in accordance with the mandate entrusted to it, reports of technical meetings held in pursuance of the Caracas Programme of Action, the Report of the Third Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/TCDC, a series of information documents as well as the documents transmitted by the United Nations system.

E.  Opening Statements 10.  In his inaugural address, Dato’ Haji Abu Hassan bin Haji Omar, Minister of Foreign Affairs of Malaysia, said that the concept of economic and technical cooperation among developing countries had become an enduring part of the political consciousness of all developing countries. As the IFCC was the principal mechanism under the CPA to review and evaluate progress on ECDC, he called for a candid and critical assessment of the programme’s achievements and failures. He pointed out that the current transformation of the global economy represented both opportunities and challenges for developing countries and emphasized that the Group of 77 must rise to the challenges or risk getting marginalized. 11.  The Foreign Minister noted that trade among developing countries accounted for a mere 4.8 per cent of world merchandise trade in 1987. While market penetration of developed countries was important, he stressed that the untapped potential for expansion of trade among developing countries should not be ignored. The GSTP could provide the stimulus for this, he said. He called for maintaining the momentum of the first round of the GSTP negotiations, and for strengthening the GSTP mechanism to make it a truly effective vehicle for trade expansion among developing countries. In the face of the increasingly protectionist trends in the world, this was a matter of priority for the developing countries. 12.  The Foreign Minister called for introspection and soul searching on the part of the Group of 77. He remarked that of the 128 member states of the Group of 77, delegations from only 63 Member States were present at this IFCC meeting. We would have to ask ourselves, he said, why this was so. He wondered whether developing countries were losing interest in ECDC or, more specifically, in IFCC itself. 13.  Dato Haji Abu Hassan also emphasized the importance of regional, sub-regional and bilateral trade cooperation. In this context, he referred to some successful regional efforts to coordinate trade and economic policies among countries for their common benefit. 14.  The Foreign Minister stressed the increasing importance of the private sector as a vehicle of growth in the developing countries. He highlighted the important role of the chambers of commerce and industry in consolidating ECDC. 15.  In his statement at the inaugural session of the Committee, the Chairman of the Group of 77 in New  York, Ambassador Razali Ismail, mentioned that though the Caracas Programme of Action was a major step in ECDC, cooperation among developing countries remained somewhat

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neglected. Despite recognizing the potential benefits from such cooperation, very little had actually been done to actively promote it, he pointed out. 16.  The Chairman of the Group noted that so far the principal actors in the field of development, namely commercial and business enterprises, had largely been excluded. IFCC-VII needed to address this question, he said. 17.  On the other tasks before the Committee, he mentioned that an assessment of the effectiveness of the revised frequency of IFCC meetings needed to be made, ways for greater harmonization of the CPA of the Group of 77 and the APEC programme of Non-Aligned countries found, and means for improved utilization of the Perez-Guerrero Trust Fund considered. 18.  Ambassador Kamalesh Sharma, Chairman of the Group of 77 in Geneva, in his statement to the Committee outlined the activities of the G-77 in Geneva. He pointed out that the Group of 77 regarded sub-regional, regional and interregional cooperation among developing countries as the backbone of collective self-reliance and, in this regard, stressed that growth and strengthening of different economic integration groupings were a primary concern. 19.  Ambassador Sharma informed the meeting that at the sixth session of the Committee on ECDC of UNCTAD, on the basis of a proposal put forward by the Group of77, agreement was reached that UNCTAD would undertake a study on the creation of a commercially viable trade financing facility. 20.  The Chairman of the Geneva Chapter pointed to the successful conclusion of the first round of negotiations on GSTP at the Belgrade Ministerial Meeting as a historic landmark in South-South cooperation. It was the first time that developing countries translated word into contractual commitment and invested South-South cooperation with a new a concrete dimension. He underscored the fact that GSTP now needed the collective support of the Group of 77 through securing finance for its operation. 21. The representative of the Chairman of the Coordinating Bureau of the Non-Aligned Movement, Mr C.J. Tsokodayi, in his statement to the meeting said that the objectives of the Movement of Non-Aligned countries and of the Group of 77 in the economic field were the same, namely, to foster economic and technical cooperation and self-reliance among developing countries for the mutual benefit of all our people. In this regard, he said that IFCC-VII provided an opportunity to harmonize the economic activities of the Non-Aligned Movement through its Action Programme for Economic Cooperation (APEC) with those of the Group of 77 carried out under the Caracas Programme of Action. 22.  The Chairperson of the Group of 77 in Vienna, Ambassador Mervat Tallawy, briefed the meeting on the activities of the Group in that Chapter. In view of the presence of UNIDO, IAEA, and the UN Center for Social Development and Humanitarian Affairs in Vienna, the Chapter was mainly concerned, inter alia, with issues relating to industrial development, nuclear energy and social development. 23.  Ambassador Tallawy mentioned that the Vienna Chapter worked in close cooperation with UNIDO to organize an expert group meeting on the perspectives of industrialization policies in developing countries taking into account the impact of development in new and high technologies, as recommended by IFCC-VII. The objectives of the seminar were to analyze the changing international patterns of industrialization, outline specific strategy options and design an integrated approach towards industrial policy. The recommendations of the experts group meeting are of particular importance and need to be implemented. They were included in the report distributed at the meeting. 24.  The Chairperson of the Group of 77 in Vienna suggested that IFCC-VII could consider the constitution of an Action Committee on Industrialization. Joint investment and trade promotion policies would also have to be developed in order to facilitate industrial cooperation, she added.

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25.  The delegate of Gabon, Mr Jean-Paul Leyimangoye, in his capacity as the representative of the Chairman of the Group of the Intergovernmental Group of 24 in Washington, D.C. briefed the Committee on the activities of the Group. He stated that the Ministers of Finance of the Group at their meeting held in April 1989 had stressed the importance of the initiatives taken by the international financial community to reduce debt and debt service, and of the role of the IMF and the World Bank in mobilizing financial support for a debt strategy based on growth and development. 26.  Mr Leyimangoye added that the Ministers called on the international financial community to intensify their efforts to find a solution to the debt problem in favour of the developing countries in order to facilitate their return to sustained growth and to pave the way for their long-term development.

II.  Review of the Implementation of the Caracas Programme of Action with a View to Identifying New Ways and Means for its Effective Implementation 27.  The Caracas Special Ministerial Meeting of the Group of 77 emphasized the need to give the necessary priority to intensifying cooperation in the sector of science and technology which they characterized as one of the most promising areas where economic cooperation among developing countries should be strengthened. The Ministers also emphasized the necessity to give high priority to the sectors of the Trade and Technical Cooperation among Developing Countries in order to promote a much more effective utilization of the technical capacities of the developing countries. 28.  The Caracas Special Ministerial Meeting had requested IFCC-VII to submit a report to the Thirteenth Annual Meeting of the Ministers of Foreign Affairs on the steps needed to be taken to enhance the implementation of the CPA. The Committee discussed in detail the achievements of the Programme and the means to overcome its existing weaknesses.

A. Sectoral Review 29.  The Committee adopted a number of recommendations on the different sectors of the Caracas Programme of Action.

Trade 30.  The Committee expressed its satisfaction that the Agreement on a Global System of Trade Preferences among Developing Countries had come into force on 19 April 1989. It appealed to those signatories of the Agreement that had not yet ratified it to do so at the earliest opportunity. The Committee stressed the need to maintain the momentum of the GSTP process by starting the second round of negotiations as soon as possible. These negotiations should encompass all the areas envisaged for trade promotion under GSTP and could consider the question of providing some financial underpinning for trade conducted under the Global System. 31.  The Committee urged member countries as well as international institutions in particular UNDP and UNCTAD to extend their support to the GSTP process. This would involve the provision of technical and financial assistance for the implementation of the Agreement as well as for the preparatory work and the conduct of a new round of GSTP negotiations, especially keeping in view the needs of the LDCs for such assistance. 32.  The meeting noted that a subcommittee had been established by the First Meeting of the Committee of Participants of the GSTP held in Geneva on 25 July 1989 to consider all aspects

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related to the financial and budgetary matters concerning the operation of the GSTP Agreement. The Committee requested the subcommittee to submit its report as soon as possible. Until funding for the GSTP was available on a self-sustaining basis, the Committee stressed the need for an interim financial arrangement. In this regard, the Committee requested the Chairmen of the Group of 77 in New York and Geneva to submit a project proposal to UNDP for financing by the latter. 33.  The Committee strongly supported the establishment of interregional trade financing facilities as being crucial for the promotion of trade among developing countries. It welcomed the decision of the UNCTAD Committee on ECDC to request UNCTAD to undertake an extensive and comprehensive feasibility study in this regard. 34.  The Committee was of the view that the meeting of representatives of central banks and finance ministries of the developing countries, as recommended by the Cairo High-level Meeting on ECDC, could be convened after the feasibility study on the interregional trade financing facility was completed and reviewed by governments of Member States. This would allow the examination of the findings of the study, which would be an input in the discussions of the representatives of the central banks and finance ministries. 35.  The Committee expressed its satisfaction at the results of the first and second meetings of the representatives of chambers of commerce and industry of developing countries members of the Group of 77 held respectively in Brazil in 1987 and India in 1988 as well as with the conclusions of the three regional meetings held in 1989 in Cameroon, Pakistan and Colombia. The Committee stressed the need for the early establishment of a trade information network among the chambers of commerce and industry. To this end, it urged the International Trade Centre (ITC) to submit as soon as possible a project proposal for funding by UNDP as recommended by the Fourth Meeting of the Steering Committee of the Chambers of Commerce and Industry. 36. The Committee welcomed the offer of the Government of Zimbabwe to host the Third Meeting of the Representatives of Chambers of Commerce and Industry of Developing Countries Members of the Group of 77 to be held in Harare from 15 to 17 November 1989. 37.  The Committee was of the view that steps needed to be taken to expand cooperation between the business communities of developing countries. In this regard, it recommended that the Third Meeting of the Representatives of Chambers of Commerce and Industry should consider setting up a mechanism for greater interaction between the business communities of the member countries of the Group of 77. 38.  The Committee welcomed the valuable work carried out by the International Center for Public Enterprises of Developing Countries (ICPE) and the Association of State Trading Organizations of Developing Countries (ASTRO) in support of the promotion of trade among developing countries.

Technology 39.  The Committee noted that the Caracas Declaration of the Ministers of Foreign Affairs of the Group of 77 on the occasion of the twenty-fifth anniversary of the Group had accorded priority to intensifying cooperation in the sector of Science and Technology. It stressed that Science and Technology had an important bearing on the other sectors and that it was one of the most promising areas for economic cooperation among developing countries. 40.  The Committee underscored the importance of new and high technologies and, in that context, recalled the Meeting of Experts in New and High Technologies held in New Delhi in 1988 which had identified concrete cooperative arrangements in the areas of new materials technology, microelectronics and communications, informatics and computer software, new sources of energy, and biotechnology. The Committee also recalled the Expert Group Meeting for

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Industrialization Policies in Developing Countries taking into account the Impact of Developments in the Field of New and High Technologies, held in Vienna, Austria, from 4 to 7 April 1989 under the auspices of UNIDO. 41. The Committee welcomed the fact that the Centre for Science and Technology of the Non-Aligned and other Developing Countries (New Delhi, India) would become operational shortly. They believed that the Centre would become an important and dynamic instrument for promoting the scientific and technological development of developing countries. The Committee was of the view that the Center could play a coordinating role in cooperation in this sector, and urged all member countries to participate in its programmes so that a core of activities in the field of science and Technology can be taken up. 42.  The Committee recommended that the Chairman of the Group of 77 in New York in collaboration with the Chairmen of the other Chapters, request the appropriate and relevant agencies of the U.N. system to prepare an inventory of specific areas in which technologies were available in developing countries, the areas in which developing countries were interested in engaging in joint research, areas in which developing countries were interested in transferring technology, and sources of funding for the above study should be submitted through the Chairman of the Group of 77 to the next IFCC meeting.

Food and Agriculture 43.  The Committee expressed its deep concern at the continuing and persistent food shortages in many of the developing countries. 44.  The Committee stressed the need for the developing countries to increase mutual cooperation in this sector with a view to achieving individual and collective self-reliance. The Committee was of the view that additional efforts should be made, individually and collectively, to ensure the implementation of the Caracas Programme of Action as well as the recommendations adopted by subsequent meetings of IFCC in the field of food and agriculture. In this regard the Committee emphasized the need to identify and promote joint ventures among the developing countries in this sector. 45.  The Committee reaffirmed the mandate of the Group of 77 in Rome regarding the implementation of the relevant recommendations adopted by the Global Meeting on ECDC in the Food and Agriculture Sector, held in Bucharest in 1984. 46. The Committee took note of the Report of the Ministerial Conference on Fisheries Cooperation among African States Bordering the Atlantic Ocean held in Rabat, Morocco, from 30 March to 1 April 1989.

Raw Materials 47. The Committee noted with concern the steady decline in world prices of commodities. Against this background, it welcomed the entry into force of the Agreement establishing the Common Fund for Commodities on 19 June 1989 and hoped that it would help to improve the current situation in commodity trade. 48.  The Committee stressed that positive support from the developing countries was vital to ensure the effective operation of the Common Fund as well as for attending to the needs of the commodity producing countries. 49.  While recognizing that access to markets are often hindered by high tariff, tariff escalation and non-tariff measures, the Committee called for undertaking joint efforts to liberalize the world trading regime for semi-processed and processed products of the developing countries and creation of a more conducive environment for the viability and development of the commodity sector in these countries.

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50.  The Committee emphasized the need for continued support and greater participation and cooperation among the developing countries to enable the International Commodity Agreements and Arrangements (ICAs) to function effectively in order to stabilize commodity prices. 51.  In the case of commodities not covered under the ICAs the Committee recognized the necessity for further dialogue and exchange of information among producer and consumer countries. 52.  The Committee recognized the importance of the ongoing Uruguay Round of Negotiations in the efforts towards liberalization and expansion of world trade. In this regard, the Committee stressed that within a balanced outcome of the negotiations which result in an improved access of exports of developing countries and serve their wider development objectives these negotiations should also benefit commodity producing countries. 53.  As synthetic and substitute products had affected the competitiveness of natural products, the Committee believed that increased South-South cooperation in R & D activities, particularly in the identification of new end-uses, product quality improvement as well as market adaptation for commodity-based products, was needed. 54.  The Committee noted that since IFCC-VI was held, some positive developments had been achieved in this sector. In this regards, the Committee recalled the Report of the Expert Group Meeting on the Processing of Raw Materials held in Vienna, Austria, from 22 to 26 August 1988, and took note with appreciation of the Report of the First Meeting of the Action Committee on Raw Materials held in Abuja, Nigeria, from 3 to 7 April 1989. The Committee expressed appreciation to UNIDO and UNDP for the support they extended in regard to the convening of the First Meeting of the Action Committee on Raw Materials. 55.  The Committee stressed the importance of the follow-up of the recommendations of the Report by member countries of the Group of 77 and welcomed the location of the Secretariat of the Action Committee on Raw Materials in the Raw Material Research and Development Council in Nigeria. 56.  The Committee took note that five member countries of the Group, namely Zaire, Togo, Algeria, Morocco and Nigeria, had expressed their intention to join the Action Committee and stressed the need to enlarge the membership of the ACRM as well as to widen the geographical scope of its composition. 57.  Given the importance of this sector for member countries, the Committee recommended that future meetings of the ACRM be attended by more representatives of the institutions dealing directly with the raw materials sector.

Finance 58.  The Committee was of the view that the critical economic and financial situation facing the developing countries, in particular those burdened by external debt, remained a serious impediment to the effective implementation of the recommendations contained in the Caracas Programme of Action in the sector of Finance. The Committee noted with deep concern that this had led to the net transfer of resources from developing countries to the developed countries and multilateral financial institutions, depriving the developing countries of the much needed scarce financial resources. 59.  The Committee took note with interest of the recommendation adopted under the framework of the Action Programme for Economic Cooperation of the Non-Aligned Movement in the field of money and finance during the meeting of the Ministerial Coordinating Bureau of the Non-Aligned Movement held in Harare in May 1989.

Industrialization 60. The Committee requested the Group of 77 in Vienna to prepare, with the assistance of UNIDO, concrete proposals for the intensification of cooperation among its members, and to identify priority areas and submit its report to IFCC-VIII.

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61.  The Committee took note with appreciation of the report of its activities presented by the Action Committee for Collaboration on Consultancy, Construction and Engineering (CCC) based in Havana. It called on member countries of the Group of 77 to join it and to support its programs aimed at increasing the self-reliance of developing countries in the concerned areas. In this context, the Committee called on member countries of the Group of 77 to give appropriate attention to the requests for information made by the CCC. 62. The Committee welcomed the report of the Expert Group Meeting on Prospects for Industrialization Policies in Developing Countries Taking into Account the Impact of Developments in the Field of New and High Technologies, held in Vienna, Austria, 4–7 April 1989 under the auspices of UNIDO. The Committee requested the Group of 77 in Vienna to take appropriate follow-up actions with respect to the recommendations adopted by the Expert Group Meeting. 63. The Committee welcomed the presentation made by the delegation of Argentina on the Centro de Estudios Tecnologicos para la Obra Publica and requested the Chairman of the Group of 77 to circulate to the members additional information on the Center to encourage them to participate in its activities. 64.  The Committee reiterated that the Vienna Chapter of the Group of 77 should play a coordinating role in implementing the recommendations pertaining to industrialization in close cooperation with the Chairman of the Group of 77 in New York.

Technical Cooperation among Developing Countries (TCDC) 65.  The Committee welcomed the activities undertaken by a number of developing countries to share their expertise with other developing countries in the fields of agriculture, health, energy, trade, industry, education, fisheries, etc. 66.  The Committee recalled that technical cooperation among developing countries was identified by the Ministers of Foreign Affairs of the Group of 77 in the Caracas Declaration issued on the occasion of the twenty-fifth anniversary of the Group as deserving high priority for promotion of technological capacities of developing countries. The Committee noted that TCDC covered a wide spectrum of activities such as cooperation in manpower training, in particular improvement of technical and managerial capacities, dissemination of industrial, technological, scientific and commercial information, strengthening of the maintenance capabilities of developing countries, etc. 67. The Committee observed that technical cooperation among developing countries had remained inadequate in relation to the enormous potential for such cooperation, despite the general recognition that developing countries had built up expertise in a wide range of fields. 68.  The Committee noted the initiative taken by some developing countries in the field of aquaculture, including the development of material and manpower resources, improvement of fishing techniques, establishment of research institutes and exchange of information. In this context, it welcomed the cooperative activities undertaken in the Maghreb Region. It also took note of the Report of the Meeting of the Group of 77 on Coastal Fisheries, Small Fishing Craft and Aquaculture Development and Management in Developing Countries held in Trogir, Yugoslavia, in September 1988. 69.  The Committee underscored the need to strengthen the TCDC focal points as a link in the technological development of member countries. It observed that often ministries and enterprises in developing countries which should be directly involved in such cooperation were not aware of the technical expertise available in other developing countries. This gap in information, inter alia, was responsible for member countries of the Group of 77 turning to the developed countries

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for technical assistance even when such expertise was available in developing countries at a lower cost. To this end, the Committee stressed the need: -   to enhance developing countries’ utilization of their own consultancy capabilities, making maximum use of consultants from the developing nations, who are in the best position to apply appropriate solutions, in line with their national development plans and priorities, avoiding or eliminating as far as possible the transfer of financial resources for consultancy services from the developing to the developed countries; -   to expand the use and recruitment of experts and consultants from developing countries by international agencies and organizations, particularly those in the United Nations system. 70.  To bridge this information gap, the Committee requested the Office of the Chairman of the Group of 77, with the assistance of the Special Unit for TCDC of UNDP, to prepare and circulate to member countries, twice yearly, a list of TCDC offerings and requests from developing countries. The Committee also called for a study to prepare a global matrix of technical capabilities available in developing countries. 71.  The Committee recommended that efforts of the Group of 77 should concentrate on areas which have a relatively low funding requirement. Given the predominance of agriculture and small scale industries in most developing countries, there should be a greater attention to providing technical assistance in areas pertaining to the production of food-grains, fisheries and animal husbandry and on import substituting light industry. 72. The Committee took note of the Report of the Third Biennial Meeting of the Heads of National Agencies for Technical Cooperation held in Panama City in November-December 1988, and its recommendations on the Multisectoral Information Network (MSIN), on the Model Contract for Recruitment of Experts, on the Action Committee on Inter-enterprise Cooperation and on strengthening of the National Focal Points for TCDC. 73.  The Committee requested the Chairman of the Group of 77 to continue his consultations with member countries to bring the number of countries of the first (pilot) phase of MSIN to the required number of fifteen so that it can be launched. The meeting of representatives of those countries that would have opted to participate in the MSIN pilot project within three months of the minimum number of fifteen being reached should be convened within six months from the day that fifteen members opt to join the MSIN. 74.  At a time when it is generally recognized that inter-enterprise cooperation should play a key role in ECDC/TCDC, the Committee stressed the importance of the Action Committee on Inter-enterprise Cooperation and urged members to participate in its activities. 75.  The Committee welcomed the existing cooperation between the U.N. system, including in particular the Special Unit for TCDC of UNDP, and the members of the Group of 77 and called for strengthening and enhancing such cooperation. The Committee called for active participation of member countries in the High-level Committee on the Review of TCDC which is scheduled for September 18 this year. 76.  The Committee recommended that when there are no offers to host the biennial meetings of Heads of National Agencies for Technical Cooperation, they should be convened in New York on the eve of the biennial meetings of the High-level Committee on the Review of TCDC. 77.  The Committee called on FAO, UNIDO and other relevant international organizations, in particular the regional economic commissions, to extend support to the institutions of developing countries that are of a regional and interregional character, in order to strengthen these organizations. On their part, the Committee stressed, such regional and interregional centers should actively engage in strengthening the bonds of technical cooperation among developing countries.

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General 78.  The Committee expressed its appreciation to the organizations of the U.N. system for their support in the implementation of the Caracas Programme of Action.

B.  Supporting Mechanisms 79.  The Committee undertook an overall analysis of the supporting mechanisms of the Caracas Programme of Action with a view to enhancing their efficiency. The Committee agreed on the following recommendations: 1)  The Annual Meetings of the Ministers for Foreign Affairs of the Group of 77 held in New York should continue to undertake a thorough appraisal of ECDC activities in the years when IFCC meetings are not convened. The preparatory meetings of the Group of 77 at Ambassadorial level with the participation of senior officials and Chairpersons of the different Chapters of the Group of 77 should be entrusted with the task of preparing, inter alia, recommendations on ECDC matters for the considerations of Ministers. 2)  When there are no offers from member countries to host IFCC meetings, the Chairman of the Group of 77 should explore the possibility of convening them at the headquarters of the U.N., including regional economic commissions and the specialized agencies of the U.N. system. The date and venue of the IFCC meetings should be decided and conveyed well in advance to member governments. 3)  The Committee invited the Chairpersons of the different Chapters of the Group of 77, in consultation with the Chairman of the Group of 77 in New York, to consider the possibility of convening sectoral meetings under their areas of competence, as far as possible in conjunction with the holding of the meetings of the governing bodies. 4) The Committee stressed the need for increased coordination between Chapters of the Group of 77 of the ECDC activities of the different Chapters of the Group of 77 through, inter alia, the convening of an annual meeting of the Chairmen/Coordinators of the Group of 77 in New York prior to the Annual Ministerial Meetings of the Group of 77. 5)  The Committee stressed the need to enhance the activities of the National as well as the Sectoral Focal Points. In this regard, the Committee endorsed the recommendations adopted by the Second Meeting of the Heads of National Focal Points held on 2 August 1989 in Kuala Lumpur. 6)  The Meeting was of the view that the network of National Research and Training Centers of Multinational Scope as envisaged in the Caracas Programme of Action had not functioned effectively. The Committee called upon the member states to urgently transmit to the Chairman of the Group of 77 in New York the list of their national research and training centers of multinational scope taking into account the guidelines adopted by the New Delhi meeting of Heads of Science and Technology Agencies in Developing Countries held in 1982. 7)  Bearing in mind that four out of the five Assistants to the Chairman of the Group of 77 will be leaving the Office by the end of 1989, the Committee called upon the member countries to urgently designate, in accordance with the relevant provisions of the Caracas Programme of action, Assistants to the Chairman of the Group of 77, preferably on a full-time basis, in order to ensure the necessary continuity of the activities of the Office of the Chairman of the Group of 77. 8)  The Committee expressed its concern regarding the financial status of the ECDC Account and appealed to those member countries that had not contributed to the Account to do so urgently.

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9)  The Committee called upon member countries to provide pertinent information and materials related to ECDC issues to the Documentation Center of the Office of the Chairman of the Group of 77 in New York. 80.  The Committee recognized the continued usefulness of action committees as a mechanism for implementing ECDC. In order to facilitate the establishment and launching of action committees the Committee recommended that: (a)  Wherever possible, the scope of the action committee should be confined to a limited number of concrete issues rather than to an entire sector. (b)  Financial support from the PGTF, under the procedure established by IFCC-VI, should be made available after the action committee members make a matching contribution of the amount requested. (c)  To enhance the definition of activities of the action committee and for the promotion of the action committee a lead country or institution should be designated.

III.  Harmonization and Integration of the Caracas Programme of Action on ECDC and the Action Programme for Economic Cooperation of the Non-Aligned Movement 81.  The Committee noted the progress in the efforts geared towards the harmonization and integration of the Caracas Programme of Action on ECDC and the Action Programme for Economic Cooperation of the Non-Aligned Movement and underlined the need to avoid duplication of activities and ensuring complementarity of the efforts aimed at enhancing ECDC. To this end, the Committee agreed on the following recommendations: 1) The two programmes should have a calendar of meetings prepared in a coordinated manner in the various areas of cooperation. 2) The Chairmen of the Group of 77 and the Coordinating Bureau of the Non-Aligned Movement should remain in close and regular contact in regard to the implementation of the above-mentioned programmes. 3)  The Chairman of the Group of 77 should keep the member countries as well as the National Focal Points appropriately informed of the results of such contacts. 4)  The Chairmen of the Group of 77 and the Non-Aligned Coordinating Bureau should continue to be invited to participate in each other’s meetings. 5)  Harmonization and integration wherever possible of the respective sectors of the CPA and the APEC should be pursued.

IV.  Review of the Utilization of the Perez-Guerrero Trust Fund and Its Guidelines 82.  Pursuant to the request made by the Caracas Special Ministerial Meeting, the Committee reviewed the guidelines and criteria for utilizing the Perez-Guerrero Trust Fund. 83.  The Committee reviewed the existing guidelines for the utilization of the PGTF, adopted at Cairo in 1986 and expanded in Havana in 1987. The following additions to the guidelines were adopted: (a) To adjust the appointment dates of the Committee so that only one half of them are replaced each year. Given that the experts are selected for a two-year term, three of them—one from each region—would be replaced every year. An interim arrangement is required to adjust the appointment dates accordingly. To this end, the mandate of three of the experts—one

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from each region as designated by the regional groups in New York—would be extended to 1991. Appointment of the other three experts will take place in 1990. (b)  In order to ensure successful implementation of approved projects as lead country or organization, as appropriate, should be identified when necessary. (c)  In order to identify a uniform project cycle and ensure full participation of its members, the regular meeting of the Committee of Experts should take place in the last week of June of each year, and if necessary the Chairman of the Group of 77, in consultation with the Chairman of the Committee of Experts of the PGTF, will convene an extraordinary meeting of the Committee. (d)  The deadline for submission of project proposals should be the last day of March of each year, so that the necessary consultations between the experts, the Office of the Chairman, governments, organizations and institutions submitting proposals should take place, so as to improve and expedite the process of examination of projects as well as to avoid duplication with the existing activities. (e)  In the year when no IFCC meetings are held, the report of the Committee would be considered by the Annual Meeting of the Group of 77 which is entrusted with the preparation of the Annual Meeting of the Ministers for Foreign Affairs held in New  York. The report as amended by the Annual Meeting of the Group of 77 will be submitted for consideration and approval to the Ministerial Meeting. (f)  Within the existing guidelines due regard should be given to equitable geographical distribution as far as possible. (g)  In the future, in case a project has not been implemented within two years of its signing, the allocation would be reverted to the PGTF and the project re-submitted to the Expert Committee. (h)  Before submitting project proposals to the PGTF, subregional and regional institutions of developing countries should obtain approval of their respective governing bodies and countries involved in the project. (i) The expenditures relating to the participation of the members at the meetings of the Committee of Experts, up to a maximum of two meetings per year, will be covered by the PGTF. 84.  The Committee considered that, in order to increase the quality and number of project proposals submitted, appropriate institutions and organizations of developing countries should be provided with comprehensive information on the potentiality of the PGTF and on the procedures for the submission of proposals. These contacts should be carried out in consultation with national governments. 85.  The Chairman of the Group of 77 could also seek the assistance of the Committee of Experts in identifying organizations and institutions of developing countries capable of preparing project proposals that could be submitted for funding by PGTF. 86.  The Committee recommended that in order to increase awareness of the PGTF, an informative brochure should be prepared by the Office of the Chairman of the Group of 77 in New York with the assistance of the Special Unit for TCDC of UNDP. Additionally, in order to expedite examination and approval of project proposals and implementation of approved ones, a standard format should be prepared by the Office of the Chairman of the Group of 77 with the assistance of UNDP. 87. In accordance with the guidelines of the Perez-Guerrero Trust Fund for ECDC/TCDC adopted at the Cairo High-level Meeting on ECDC held in August 1986, the Committee also considered the Report of the Third Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/TCDC, held in Kuala Lumpur from 27 to 29 July 1989.

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88. The Committee expressed its deep sense of gratitude to the Government and people of Malaysia for having hosted the Third Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/TCDC and for having provided the Committee of Experts with all the necessary facilities. 89.  The Committee also expressed its appreciation to the Chairman and the members of the Committee of Experts for the excellent report they had submitted. 90.  Regarding the projects included in the recommendations of the Report of the Committee of Experts the Committee decided as follows:

1.  Sustainable Frontier Settlement The Committee did not approve this project.

2.  Cooperation among Developing Countries’ Consultancy and Engineering Organizations for Better Access and Position in International Consultancy/ Engineering Services Market The Committee approved the project. Disbursement of US$ 90,000 from PGTF will be made after: (a) The final report on the study entitled ‘Development of Developing Countries’ Consultancy and Engineering Capacities’ is presented by ICPE; (b)  An analysis is made by the PGTF Expert Committee on possible duplication with the tasks undertaken by other institutions, including a review of the report referred to in (a) above and consultations with the Action Committee for Collaboration on Consultancy, Construction and Engineering; (c)  Endorsement by the governing body of the ICPE.

3.  Export Promotion Cooperation in Favour of Less Developed Countries in Latin America The Committee approved the allocation of US$ 120,000 from the PGTF for the `implementation of this project.

4.  Publication of the Special United Nations Service (SUNS) The Committee decided, in the light of questions raised during discussions concerning the qualifications of this project for funding and the objections raised in this respect, to send this project back to the Committee of Experts of the PGTF for reconsideration.

5.  Establishment of the Maghreb Unit in the National Center for Documentation and Information of Algeria The Committee approved the allocation of US$ 65,000 from the PGTF for the implementation of this project with the following observations: a)  Consultations among the relevant authorities of the members of the subregion are necessary to adapt this project to the objectives of the Arab Union of Maghreb; b)  Local expenditure on the implementation of this project should be borne by the host country;

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c)  The experience gained by this project should be made available to other interested regional/integration economic groupings of developing countries.

6.  Publication of the Journal of the Group of 77 (Extension of the Duration of the Project) The Committee approved a one-year extension of this project beginning on 1 January 1991 and authorized the disbursement of US$ 27,380, so as to allow IFCC-VIII to undertake a thorough examination of the project and decide on its future, under the following conditions: a)  The Journal should maintain a high analytical content and continued efforts should be made towards attaining further improvement in this regard; b)  The Journal, in accordance with its funding source, should include mostly ECDC/ TCDC news; c)  The Journal should strive to disseminate material of interest to the G-77 that is not carried by most mainstream media. Reporting based on statements or specialized publications should refrain from or minimize the use of direct and extensive quotations; d)  Inputs for the Journal should be obtained not only from the bureau of the G-77 in the various Chapters but also from delegations of member countries who are not represented in those U.N. centers. The editor of the Journal should maintain regular contact with the Core of Assistants of the Chairman of the G-77 in New York so that he could be informed about the ongoing and future activities of the Office of the Chairman in the area of ECDC/TCDC. Moreover, news generated by economic groupings of developing countries in this area should be used, including the work carried out in this regard by United Nations organizations and research institutes in developing countries; e)  The Journal should aim at informing about the capacities and needs of member countries in respect of ECDC/TCDC. The Journal should report regularly on developments regarding ECDC/TCDC projects sponsored by the Group of 77 under the CPA in the various Chapters as well as ECDC/TCDC activity of member countries at the bilateral, subregional, regional and interregional levels; f) News articles regarding the organizational activities, functioning, main concerns and institutional aspects as well as the issues, initiatives and positions pursued by the G-77 in each Chapter, should be published regularly in the Journal; g)  Editorial articles on specific issues of concern to the G-77 should be a regular feature of the Journal; 91.  The Committee endorsed the recommendations of the Committee of Experts on those project proposals that were not recommended for approval. 92.  However, the Committee, bearing in mind paragraphs 30-32 above and the views of the Committee of Experts regarding the financing from the PGTF of the project proposal ‘Technical Assistance to Countries Participating or Seeking to Participate in the Global System of trade Preferences among Developing Countries (GSTP)’, requested the Chairmen of the Group of 77 in New  York and Geneva to submit a revised project proposal for joint financing by UNDP and PGTF.

V.  Venue and Date of the Next IFCC Meeting 93.  The Committee requested the Chairman of the Group of 77 in New York to conduct the necessary consultations with the member states for the convening of the next IFCC.

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VI.  Closure of the Meeting 94. At the closing session, the Seventh Meeting of the Intergovernmental Follow-up and Coordination Committee adopted its Report. 95.  A resolution of thanks to the host Government was proposed by the delegation of Colombia and adopted by acclamation. 96.  The Chairman of the meeting, His Excellency Ambassador Dali Mahmud Hashim, Deputy Secretary-General, Ministry of Foreign Affairs of the Government of Malaysia, closed the meeting.

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8.  Eighth Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-VIII), Panama City, Panama, 30 August–3 September 1993 a. Final Report I.  Introduction and Organizational Matters A. Introduction 1.  Pursuant to the Caracas Programme of Action and at the invitation of the Government of the Republic of Panama, the Eighth Meeting of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-VIII) was held in Panama City, from 30 August to 3 September 1993. 2. The meeting was attended by delegations from the following 40 Member States of the Group of 77: Algeria, Argentina, Bangladesh, Bolivia, Brazil, Colombia, Costa Rica, Cuba, Chile, Cyprus, Dominican Republic, Ecuador, Egypt, El Salvador, Ghana, Guatemala, Guinea, Guyana, Haiti, Honduras, India, Indonesia, Iraq, Libya, Malaysia, Mexico, Nicaragua, Nigeria, Panama, Paraguay, Peru, Republic of Korea, Romania, Sudan, Swaziland, Tanzania, Tunisia, Uruguay, Venezuela, and Zimbabwe. 3.  A representative of the People’s Republic of China attended the meeting for the first time as an observer. 4.  Representatives from the following organizations of the United Nations system also participated as observers: Economic Commission for Latin America and the Caribbean (ECLAC), International Labour Organization (ILO), United Nations Conference on Trade and Development (UNCTAD), United Nations Development Programme (UNDP), United Nations Educational, Scientific and Cultural Organization (UNESCO), United Nations Environment Programme (UNEP), and United Nations Industrial Development Organization (UNIDO). 5.  The meeting was also attended by representatives of the following organizations of the developing countries: Central American Integration Secretariat (CAIS), Caribbean Economic Community and Common Market (CARICOM), Organization of African Unity (OAU), South Asian Association for Regional Cooperation (SAARC), Latin American Economic System (SELA), and the South Centre. 6.  The meeting was also attended by the Chairman of the Group of 77 in New York, the Core of Assistants to the Chairman of the Group of 77, the Chairman of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/TCDC, the Chairman and members of the Group of Experts on the Review and Evaluation of the Caracas Programme of Action, and the Chairman of the Steering Committee of the Conference of Chambers of Commerce and Industry of Developing Countries Members of the Group of 77.

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B.  Election of the Bureau 7. At its opening session, the Committee elected by acclamation His Excellency Mr Carlos Arosemena, Permanent Representative of Panama to the United Nations, as Chairman. The Committee also elected by acclamation His Excellency Mr Rabah Hadid, Ambassador, Deputy Permanent Representative of Algeria to the United Nations, and Mrs Saodah Sjahruddin, Director for Economic Cooperation among Developing Countries in the Department for Foreign Affairs of Indonesia, as Vice-Chairmen.

C.  Adoption of the Agenda and Organization of Work 8. The Committee adopted the provisional agenda as well as its organization of work. The Committee also decided to establish a Committee of the Whole for the consideration of the items on its agenda. 9.  The Bureau of the Committee was assisted by the Core of Assistants to the Chairman of the Group of 77 in New York, the Chairman of the Group of Experts on the Review and Evaluation of the Caracas Programme of Action, the Chairman of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/TCDC as well as by representatives of the host country.

D. Documentation 10.  The Committee had before it the working documents prepared by the Office of the Chairman of the Group of 77 in New York with the support of the Core of Assistants, the Report of the Group of Experts on the Review and Evaluation of the Caracas Programme of Action, the Report of the Eighth Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/ TCDC, and a series of information documents.

E.  Opening Statements 11. In his inaugural address, His Excellency Guillermo Endara Galimany, President of the Republic of Panama, said that the desire for cooperation among developing countries has matured extraordinarily and it is translated in the creation of regional and subregional groups in Africa, Asia and Latin America. He also stressed that the globalization of economic relations has no place for any isolationist tendencies among developing countries. He urged developing countries to reinforce and diversify their interdependence. 12.  The President noted that at the end of the Cold War South-South relations could be placed in a new context in view of the agreements on disarmament, ethnic and religious conflicts, the establishment of democratic systems and international cooperation to solve conflicts that affect human rights. 13.  He observed with concern protectionist trends in the developed countries which affect the prices of raw materials and go against the principle of free trade agreed in the General Agreement on Tariffs and Trade and the Uruguay Round. 14.  The President of Panama stressed that in order to have more balanced and just terms of exchange between North and South, it was essential to strengthen South-South cooperation. South-South cooperation could be enhanced from a regional level to a continental and interregional level. 15.  The Chairman of the Group of 77 in New York, Ambassador Luis Fernando Jaramillo, also addressed the IFCC on the opening day. In his statement, the Chairman stated that a new context had emerged since the Seventh Meeting of IFCC in 1989, which points to the need for the

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reactivation of the dialogue with the developed countries but also stronger and closer ties among the countries of the South. He pointed out that South-South cooperation is a historical necessity and an important step towards the solution of many of the problems of the Third World. 16.  The Chairman of the Group of 77 presented a series of recommendations to reactivate the Caracas Programme of Action. These recommendations included:  (a)  the establishment of an intersessional-type mechanism in those years when IFCC does not meet; (b) strengthening the support mechanisms for the Chairmanship of the Group of 77 in New York and ensure continuity to the work of the Core of Assistants, (c) the creation of intersectoral commissions at the country level on ECDC; (d)  activating the national focal points; and (e)  holding of sectoral meetings on ECDC. 17.  The Chairman of the Group of 77 also (a) stressed the need for enhancing the role of the U.N. system and the regional and subregional economic integration organizations in South-South cooperation; (b) convening a special meeting of the Committee of Experts of PGTF to assess the impact of funded projects and to examine options to expand its resources; (c) a more active role by the Chambers of Commerce and Industry of Developing Countries Members of the Group of 77; and (d) harmonization of the Caracas Programme of Action with the Action Programme for Economic Cooperation of the Non-Aligned Movement. 18.  H.E. Mr Nana S. Sutresna, Representative of the Chairman of the Non-Aligned Movement, also addressed the meeting. In the context of ECDC, he underscored the ‘evolutionary approach’ whereby any group of countries could launch a project provided that the project remains open to all developing countries. For this purpose, he stressed the need for wide dissemination of information and data on any such successful projects. 19.  He also stressed that IFCC should focus on the recommendations of the South Commission as a guide for exploring possible courses of action and on the role of the national and sectoral focal points for ECDC/TCDC. He suggested that IFCC consider the use of the tripartite approach whereby two or more developing countries could work in partnership with a third party in order to spread the cost of projects. 20.  The representative of the Chairman of the Non-Aligned Movement also stated that efforts to improve coordination and harmonization of the activities of APEC and CPA should be placed on the top of the IFCC agenda. He stressed the early establishment of the Joint Coordinating Committee (JCC) of the Non-Aligned Movement and the Group of 77 and its full operationalization.

II.  Caracas Programme of Action A.  Review and Evaluation of the Caracas Programme of Action and Concrete Measures to Improve its Further Implementation 21.  The Committee considered the report of the Group of Experts on the Review and Evaluation of the Implementation of the Caracas Programme of Action and expressed appreciation to the Group for its work and general support for the recommendations contained therein. 22. In introducing the report, the Chairman of the Group of Experts, Mr Carlos Sersale di Cerisano, highlighted the sectoral recommendations included in the Report in the context of the current economic situation and the perspectives for the 1990s. 23. Many delegations participated in and contributed to the debate thereby confirming the importance of economic cooperation among developing countries at the national level and as an instrument of their own foreign policy at the regional, subregional and interregional levels. There was an emphasis on its continued relevance as a mechanism for promoting economic growth and development and as a means of integration of developing countries in the world economy.

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24.  A number of delegations made reference to the programmes, projects and activities undertaken by their own governments and by agencies, commissions and other international organizations, in pursuance of the implementation of the CPA. 25.  It was acknowledged that certain essential macroeconomic factors negatively affected the implementation of the CPA. However, there was clear evidence that the political will existed for its continued implementation. It was also recognized that problems existed at the operational level in the different implementing mechanisms. 26.  It was recognized that the activities envisaged by the CPA are also integrated in the various programmes and activities of national policies and those of international agencies and subregional and regional organizations. In this regard, mention was made of the support given by UNCTAD and the Special Unit for TCDC of UNDP. 27.  The meeting took into account the changes which had taken place globally since the adoption of the CPA in 1981 and noted the need to reflect those issues in the implementation of the programme and its review in the 1990s. In this context, the Group stressed the importance of including proposals for action in the areas of environment and human resources development.

Sectoral Recommendations Trade 28.  The meeting recommended the following: a.  Urges the remaining members to take due action to ratify the GSTP Agreement. Member countries are also urged to actively participate at the second round negotiation process and its final meeting to be held at the Ministerial level in the summer of 1994 in Cuba. b.  The widening of collaboration between UNCTAD and the regional and subregional economic integration groupings to enhance the computerization of custom administrations and the operations of trade information systems in developing countries, and calls upon them to also link these operations into a global network. c.  Promote the utilization of the companies of developing countries engaged in the service industry. d.  Promote the support to the activities in the services sector included in the Uruguay Round, with the view to improving the competitiveness of developing countries in international trade. e.  The use of the conceptual framework proposed by the Action Committee on Collaboration in Consultancy, Construction and Engineering of the Group of77 as an input in the negotiations in the Uruguay Round in the construction and engineering services. f.  Promote the collaboration in developing a conceptual framework in other types of services included in the Uruguay Round. g.  Integration of the efforts of State Trading Organizations, the Chambers of Commerce and the business community, in order to reflect the present politico-economic realities. These institutions should cooperate in the areas of: trade information network, marketing, sourcing of supplies, etc. h. Increased cooperation among Small and Medium-sized Enterprises on a subregional, regional and global levels. i.  While developing nations must be vigilant in ensuring that the issue of environmental protection does not become an additional trade barrier, the issue of the linkage between environmental protection and trade in both goods and services must be recognized. 29.  Speedy and balanced conclusion of the Uruguay Round will help to strengthen the capacities of developing countries to promote economic growth.

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30.  The meeting recognized the importance of human resource development and the growth of expertise in this sector, through collaboration among the developing countries. 31.  The Committee also recognized that the requirements and capabilities of developing countries in the area of trade and development need to be collated in a databank. In this regard, the Group of 77 could benefit from the South Investment Trade Technology Data Exchange Centre (SITTDEC).

Technology 32.  The meeting recommended the following: a.  That development of technological capabilities and skills in developing countries should be pursued through inter-country cooperation in the exploitation of economies of scale and complementarities in the areas of technological transfer, research and development activities, personnel training and scientific and technological cooperation. To achieve these activities developing countries must make determined efforts to launch activities identified in the CPA which include, inter alia: i.  The establishment, where they do not exist, and otherwise strengthening of national agencies dealing with science and technology. In this regard also due regard should be paid to the contribution that can be made by the private sector, ii.  The commitment to incorporate the provisions of the CPA into national policies and programmes, iii.  The establishment and maintenance of an inventory of existing capabilities and needs in developing countries and cooperation in the development of endogenous technological capabilities, iv.  The setting up of regional, subregional and interregional networks in the various areas of cooperation. There appears to be a need to undertake a comprehensive review of the situation in the fields to be targeted for collaboration, for example, information, transfer of technology, research and development, capacity-building for negotiations and human resource development, v.  The enhancement of the capabilities of developing countries in negotiations for the transfer of technology among them and with developed countries. The activities of the Centre for Science and Technology in India established by the Non-Aligned Movement is important in this regard and developing countries are urged to participate therein, vi.  The effective utilization of the potential of the United Nations system in the promotion of science and technology, vii.  The use of technical and expert meetings as well as meetings of heads of agencies responsible for science and technology for continuous assessment of the progress made in this field, viii.  Cooperation in the development of endogenous technological capabilities, ix. The enhancement of collaboration between research institutions and between researchers and scientists in the various regions, and x.  Promotion of joint positions and strengthening of joint efforts in pursuit of the development of environmentally sound technologies.

Food and Agriculture 33.  The meeting recommended that: a.  The establishment of regional food security reserves should be encouraged and strengthened where they already exist.

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b.  The concept of food security as defined in the CPA should be revitalized to go beyond the provision of adequate reserves. c.  Developing countries should also endeavour to develop joint position on matters relevant to food security. d.  Rural development be an integral part of the development strategy of the developing countries so as to benefit the majority of the poorer population particularly women. e.  Joint ventures and TCDC should be given a further role in cooperation among the developing countries in the area of agriculture production, food processing and fishery. f.  Developing countries should further exchange, share and mobilize their technical experts and ‘know-how’ in order to efficiently and soundly manage the utilization of their natural resources. g.  Trade in agriculture among developing countries should be further liberalized.

Energy 34.  The meeting recommended the following: a.  That new initiatives in the area of energy including new and renewable sources of energy should be developed taking into consideration the impact on environment and development. b.  Development of new and renewable sources of energy which offers many possibilities to further encourage indigenous resources for meeting energy needs, particularly in rural areas, can be promoted at subregional, regional and global level through an exchange of information, experiences and know-how.

Raw Materials 35.  The meeting recommended that: a.  Developing countries should continue to give greater attention to the commodities sector and to this end Governments and entrepreneurs of developing countries should further elaborate national, regional, interregional commodity policies that address the questions of research and development, diversification and investments and trade. b. Developing countries should take part in the Uruguay Round of Multilateral Trade Negotiations in order to achieve liberalization of international trade which can reestablish their comparative advantages of developing countries in commodity production. c.  The international community should strive to actively participate in the new and existing international commodity agreements as well as activation of the First Account of the Common Fund for Commodities in order to improve the earnings of commodity producers. d.  Developing countries should take advantage of the work of the UNCTAD Working Party on Diversification, Processing, Marketing and Distribution including transportation in the formulation of their policies and programmes. e. To enable developing countries to make maximum use of the Second Account of the Common Fund for Commodities. The meeting called on all developing countries for increased contribution to the Trust Fund of the Second Account. f.  Larger contributions should be made to the compensatory financing mechanisms to overcome the depressed commodity prices. g.  Entrust the Action of Committee on Raw Materials with the mandate to prepare a study related to the establishment of associations and agreements of producers and exporters of raw materials.

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Finance 36.  The meeting recommended that developing countries should: a.  Strengthen and establish, where appropriate, bilateral and multilateral arrangements to support South-South trade. In this connection, bilateral payment agreements can play an important role in facilitating interregional trade, particularly where no multilateral arrangements exist. b.  Continue to explore possibilities for the strengthening and the harmonization of fiscal and monetary policies to further promote the coordination of development strategies between developing countries. c.  Strengthen and revitalize existing multilateral payment arrangements, particularly those which have suffered setbacks either because of inability of member countries to settle their accumulated arrears or have suspended operations because of the low volume of trade transactions channeled through the payment schemes. d.  Closer cooperation between central banks and national financing mechanisms of developing countries must be further pursued by the convening of meetings among representatives of central banks and representatives and Finance Ministers of developing countries could furnish the adequate negotiating framework. e. Exchange of information on external debt among high level governmental officials entrusted with negotiations in this sphere is encouraged in order to find a definitive solution to the external debt problem. f.  The member countries of the Group of 77 should identify areas of common interests and support each other in such areas as well as intensify their collaboration with a view to enhancing their position vis-à-vis international financial institutions. g.  The member states should examine mechanisms to allocate a percentage of their regular resources received from programmes carried out by international organizations, to finance ECDC/TCDC programmes in order to promote their development and the transfer of their own technology. h.  Even if CPA is to be supported mainly by resources from developing countries, efforts must be taken to mobilize support for specific CPA activities from bilateral donors from developed countries, from developed financial institutions of developed and developing countries such as the World Bank, IMF, regional development banks, EEC, etc. The meeting recommended that high level missions made up by members of the G-77 should be sent to the capitals of bilateral donors, multilateral institutions and regional development banks to mobilize commitment for selected projects at subregional, regional and interregional levels. These activities should not necessarily require additional funding but could be undertaken as a result of resource deployment. 37.  Specific projects of common interest to the member countries of the Group of 77 should be identified with a view to securing the support of multilateral institutions, U.N. agencies, regional development banks and bilateral donors.

Industrialization 38.  The meeting recommended that: a.  Small and medium scale industry should be encouraged to play a bigger role in the implementation of industrialization programmes in developing countries. To this end, it was felt that a favourable environment which includes, inter alia, the harmonization of fiscal incentives for investments, coordination of open trade policies, joint development of human resource, and interregional transportation facilities, can be conducive to a successful indus-

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trialization process that can benefit many developing countries by taking advantage of complementarities, scale economies and lower costs. b. Where possible, industrialization strategies should be coordinated at the subregional, regional and interregional levels. In this connection, more effective use should be made of the existing mechanisms provided by integration groupings for regular review and identification of specific industries. c.  Call on UNIDO to assist developing countries in the process of sharing their capacities and responding to each others’ needs through having an inventory of capacities and needs of developing country institutions as well as those of international institutions in specific industrial sectors.

Technical Cooperation 39.  The meeting recommended: a.  Strengthening the capability of relevant national institutions to identify national technical needs and adequately describe available national technical capacities. These are responsibilities which should be pursued by strengthened national focal points. b.  Integration of national submission regarding needs and capacities into a specific information bank such as TCDC INRES-South of the Special Unit for TCDC of UNDP, in a manner usable by other subscribers. c.  Regular dissemination of the available information and promotion of TCDC programming exercises in a well-coordinated manner to meet the demands of user countries. d.  Specific programmes of assistance be created for those countries who require assistance to identify and articulate their needs and capacities in order to participate fully in TCDC activities and programming exercises. e.  Effort should be made to convince the United Nations bodies to make it a condition that TCDC modalities should be employed as a first option wherever and whenever possible in projects for which it is providing the bulk of the resources.

Other Issues 40.  The meeting discussed the increased international attention which has been focused on the environment and human resources development and the implication of development in these areas for developing countries. Emphasis should be given to training, education, and overall upgrading of skills. Emphasis should also be given to developing joint position on negotiations on the environment and its link with development.

Institutional Matters and Issues for the 1990s 41.  The meeting endorsed the proposal in harmonizing and integrating as much as possible the activities of the CPA and the APEC in order to improve effectiveness and avoid duplication of efforts. 42.  In this context, the meeting also took note with satisfaction of the progress made towards the establishment of the Joint Coordinating Committee at the appropriate level between the NAM and the Group of 77 as proposed by the Ministerial Meeting of the Non-Aligned Movement in Accra in September 1991, which was endorsed by the Tenth Conference of Heads of State and Government held in Jakarta in 1992, and welcomed by the Ministerial Meeting of the Group of 77 in New York in October 1992.

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43.  The meeting stressed the importance of having a mechanism of intersessional character to guarantee the continuity and dynamism of the CPA’s programme of activities. 44.  They recognized that the role of national focal points is an important one particularly for the exchange of information, coordination of policies and contacts with the international organization agencies. Focal points should be in permanent contact with the G-77 in pursuit of the implementation of the CPA. The private sector should also occupy a wider space in South-South cooperation. A more rapid and decisive involvement of the chambers of commerce and industry of developing countries members of the Group of 77 should be encouraged in this process. 45.  To include the ECDC/TCDC, when appropriate, in the regular programmes of work and in the field programmes activities of all the specialized agencies, programmes and related organs of the United Nations system on the economic and social fields. It was also stressed that ECDC activities should be guided by the principles of objectivity, realism, and efficiency and that duplication of initiatives, institutions or mechanisms should be avoided. 46.  The meeting found that important achievements were made by subregional and regional integration groupings. In this context, the meeting urged the member countries to identify and submit regional projects following within the priority areas of the CPA and for which external assistance is required for successful implementation. The G-77 should then establish a short list of agreed activities to be pursued. The Group of 77 should seek assistance for the technical formulation and justification of projects from U.N.  specialized agencies in areas of their competence. 47.  The Committee also expressed the view that the regional development banks and financial institutions of developing countries have a major role to play in South-South cooperation by virtue of their articles of agreements, memberships and stated goals. Their role during the last decade has been sadly limited. The experts urge these institutions to intensify their technical and financial support to CPA activities. 48.  On the issue of regular reviews of the CPA activities and future meetings of the IFCC, the UNCTAD, U.N. agencies, regional commissions and different Chapters of the Group of 77, are also urged to submit their sectoral written contributions on the implementation of CPA to the Office of the Chairman of the Group of 77 in New York to update current information and to facilitate the review process. 49.  At meetings of the IFCC, review of the progress made in the various sectors could be conducted using a thematic approach done by the different Chapters of the Group of 77. The themes which would be chosen for discussions would be decided upon at previous meetings of the Committee on the basis of current and relevant developments of interest to developing countries. Background information, useful to the exploration of this issue, would be provided by technical groups meeting prior to the meeting of the IFCC. 50.  The meeting also recognized the need to establish a mechanism to integrate in the different sectors identified by the CPA the programmes under Agenda 21, the conventions on biodiversity and climate change and that on desertification when completed as well as in submitting project proposals to the GEF. 51.  The Committee emphasized the importance of the participation of senior officials including the heads of national and sectoral agencies in the meetings of IFCC. 52.  The Committee also reiterated the importance of subregional, regional and interregional mechanisms including the involvement of the Regional Commissions in the implementation of CPA. 53.  The meeting urged the promotion of a closer collaboration and exchange of information with regional, subregional organizations and economic integration groupings.

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54.  In this regard, continuous assessment of the progress in the implementation of the CPA should be undertaken by technical meetings including the reactivation of the action committees, particularly those which were already established. 55.  The Committee reiterated the importance of the monitoring functions of the different chapters of the Group of 77 in Geneva, Nairobi, Paris, Rome, Vienna and Washington, D.C. in the implementation of the Caracas Programme of Action. 56.  The Committee also recognized the need to enhance the technical support to the Office of the Chairman of the Group of 77 through the strengthening of the Core of Assistants and to ensure a mechanism that would provide the continuity of their work, and if necessary to expand it as well as the possibility of having a technical staff with competence in particular sectors following the modalities agreed upon in the CPA. 57.  There is a need to convene a special meeting of the Committee of Experts of the PerezGuerrero Trust Fund in order to undertake an assessment of the results achieved by the Fund and the options available to significantly expand its resources. The limitations encountered in the utilization of the Fund merits such a task.

B.  Follow-up Actions on Recommendations Made by IFCC-VII 58.  The IFCC-VIII considered the report on the follow-up action on recommendations made by IFCC-VII. The Chairman proposed that the consideration of this report be taken in conjunction with the report of the Group of Experts on the Review and Evaluation of the Caracas Programme of Action as both reports addressed the same subject. 59.  It welcomed the report which recounts the follow-up actions taken on the recommendations made by IFCC-VII according to its various sectors. The Committee also made decisions based on the specific additional recommendations on each of the sectors as follows:

Trade a.  Invited the Chairmen of the Group of 77 in New York and Geneva to explore various other sources of possible funding for the GSTP process specifically related to technical support to the GSTP, including support to the Ministerial Meeting of the GSTP Negotiating Committee in July 1994, in view of the resource constraints of PGTF and that the next regular meeting of the Committee of experts of PGTF will only be held on the last week of June 1994. b.  Reaffirmed the commitment to the establishment of a trade information network among the chambers of commerce and industry of developing countries members of the G-77. 60.  The Committee noted the report on the review of the status of the project on trade information network among the chambers of commerce and industry presented by Mr Pierre Tchanque, Chairman of the Steering Committee of the Conference of Chambers of Commerce and Industry of Developing Countries Members of the Group of 77 and reaffirms its commitment for the project to strengthen South-South cooperation in the area of trade and industry and in fostering better understanding and cooperation among the chambers of commerce and industry of developing countries. In this regard, the Committee urges the Steering Committee to look into consideration of the existence of other available trade information systems.

Technology 61.  The Committee noted the lack of progress in respect of the request for the U.N. agencies to prepare an inventory of specific areas in which technologies were available in developing countries and in the areas in which developing countries were interested in engaging in joint research,

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and areas in which developing countries were interested in transferring technology and sources of funding for the study. In this regard, the Committee invited the Chairman of the Group of 77 to examine the existing systems available within the United Nations in promoting cooperation in the areas of technology among the developing countries.

Food and Agriculture 62.  The Committee urged member countries to take into due consideration the promotion of private sector involvement through joint-ventures. It was noted that various developing countries possess the desired expertise and experience.

Industrialization 63.  The Committee reaffirms its desire to strengthen cooperation with UNIDO in respect of the proposal for the intensification of cooperation with its members and to identify priority areas. It also urges the Vienna Chapter of the Group of 77 to pursue the matter and develop the appropriate modality and identify the priority areas.

Action Committee for Collaboration on Consultancy, Construction and Engineering 64.  The Committee welcomed the report and the Aide Memoire presented by the President of the Action Committee of the G-77 for Collaboration on Consultancy, Construction and Engineering (CCC), on the activities performed by them in the first management period, and decided to include the report as official document of the meeting. It acknowledged the importance of the work of the CCC in increasing the collective self-reliance of the developing countries in the fields of consulting, construction and engineering and valued their efforts in giving the countries of the Group of 77 a conceptual frame for negotiation of services of construction and engineering in the Uruguay Round (GATT). 65.  The Committee recognized the merit for the continuation of the work of the CCC in its second management period so as to implement the tasks specified in the report and the appropriate consideration for the requested minimum financial support from the Perez-Guerrero Trust Fund. It also urged member countries of the Group of 77 to consider joining the activities of CCC.

C.  Harmonization and Integration of the Caracas Programme of Action on ECDC and the Action Programme for Economic Cooperation of the NonAligned Movement 66.  The Committee endorsed the Joint Report of the Chairmen of the Coordinating Bureau of the Non-Aligned Movement and the Group of 77 and expressed its satisfaction for the efforts undertaken by the two Chairmen aimed at harmonizing and integrating whenever possible respective sectors of the APEC and the CPA. 67.  The Committee recognized the need for a harmonization of common areas in the two programmes and the need for a close coordination between the Group of 77 and the NAM to take full advantage of complementarities and attain greater efficiency as well as to avoid duplication of efforts in pursuing common goals. In this regard, the Committee recalled the recommendations agreed at IFCC-VII: a.  The two programmes should have a calendar of meetings prepared in a coordinated manner in the various areas of cooperation.

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b. The Chairmen of the Group of 77 and the Coordinating Bureau of the Non-Aligned Movement should remain in close and regular contact in regard to the implementation of the above-mentioned programmes. c.  The Chairman of the Group of 77 should keep the member countries as well as the National Focal Points appropriately informed of the results of such contacts. d.  The Chairmen of the Group of 77 and the Non-Aligned Coordinating Bureau should continue to be invited to participate in each other’s meetings. e.  Harmonization and integration wherever possible of the respective sectors of the CPA and the APEC should be pursued. 68. The Committee acknowledged that developing countries should commit themselves to expand and strengthen their efforts, initiate specific and concrete forms and priorities of cooperation, and devise realistic modalities for their implementation in order to explore all existing complementarities and comparative advantages. 69. The Committee endorsed the proposal of the Jakarta Summit to establish a Joint Coordination Committee (JCC) for the purpose of enhancing collaboration, avoiding duplication of efforts and promoting greater efficiency in the attainment of common goals of NAM and the G-77, including the consolidation, integration and streamlining, whenever possible, of the sectors of APEC and CPA so as to strengthen their impact and make them more responsive to both the changing realities and the development requirements and needs of the developing countries. 70.  The Committee mandated the Chairman of the Group of 77 to continue his consultations with the Chairman of the NAM Coordinating Bureau as well as with Member States in order to formalize during 1994 the establishment of the JCC. To this end the Committee agreed with the proposal to convene a joint meeting of an ad-hoc group of officials representing respectively the Chairman of the Coordinating Bureau of NAM and the Office of the Chairman of the Group of 77 in New York, in order to establish the terms of reference of JCC and to draw up a specific work programme for further consideration by the competent bodies of the Group of 77 and NAM.

D.  Supporting Mechanisms for the Implementation of the CPA 71.  The Committee made an overview analysis of the supporting mechanisms of the Caracas Programme of Action with a view of enhancing their efficiency. The Committee confirmed its faith in the initiatives adopted in the previous meetings of the G-77 and agreed on the following additional recommendations: a.  The Committee felt that it might be necessary to encourage sectoral meetings each year so as to maintain the momentum of the Caracas Programme of Action. The Committee while stressing the relevance of the sectoral meetings and other meetings which the Committee had already identified in the previous documents as necessary for facilitating the work of the Caracas Programme of Action, recommended that such meetings should take place prior to the Annual Meetings of the Group of 77, so as not to dilute the forums of the Programme. b.  The Committee agreed on the need for increased coordination between the chapters of the Group of 77 on ECDC activities of each chapter through, inter alia,the annual meeting of the Chairmen/Coordinators of the Group of 77 in New  York prior to the Annual Ministerial Meetings of the Group of 77. c.  The Committee identified the importance of the activities of the National as well as the Sectoral Focal Points as a necessary mechanism for enhancing the effectiveness of the CPA.

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The Committee noted that while National and Sectoral Focal Points have been effective where they already exist, it felt that those mechanisms need to be further strengthened with a view to promoting effective coordination of the activities of the CPA. Additional recommendations in this matter have been included in section II (E) of this report. d.  The Committee recognized the continued usefulness of the Action Committees as a mechanism for implementing ECDC. Also that work of the Action Committees should have a clear definition and should be well-focused on precise field, in order to make their various spheres of work more effective. Although the Committee did not go into the discussion of the specific fields of the Action Committees, it agreed with the measures previously taken in the meetings of the IFCC. e.  The Committee felt that there was need to organize intersessional meetings of the IFCC of at least three days in New York before the Annual Senior Officials Meeting of the Group of 77. And also that the agenda of the intersessional meetings should contain in-depth analyses and should prepare recommendations for the consideration of the Annual Ministerial Meeting of the Group of 77 on the matters already identified as crucial to the effective functioning of the CPA, such as: i.  Report of the Chairman of the Group of 77 about the progress on the implementation of the Caracas Programme of Action; ii.  Report of the Chairmen/Coordinators of the Chapters of the Group of 77 about the activities performed; iii.  Results of the meetings under the Caracas Programme of Action held during the period; iv.  Reports of the Committee of Experts of the Perez-Guerrero Trust Fund; v.  Reports of the National Focal Points on ECDC/TCDC; vi.  Participation of the United Nations system including its Regional Commissions and other organizations on their ECDC activities; vii.  Any other important matters related to ECDC requested by the Group of 77. f.  The Committee supported the various programmes and activities funded from the PGTF and encouraged more judicious use of the Fund by member countries. g.  The Committee expressed concern over the financial status of the ECDC Account and urged member countries to make contributions and those that have done so in the past to increase their yearly contributions to the fund.

E.  Third Meeting of the Heads of National Focal Points for ECDC 72.  Pursuant to the recommendation adopted by IFCC-VII, held in Kuala Lumpur in August 1989, the Third Meeting of the Heads of National Focal Points for ECDC was held in Panama City on 1 September, within the framework of IFCC-VIII. 73.  The meeting reaffirmed the importance of the National Focal Points as an important tool and catalytic means for promoting and enhancing economic and technical cooperation among developing countries. 74.  However, the meeting acknowledged the fact that despite the awareness expressed during the High-level Meeting on ECDC held in Cairo, in August 1986, the system of National and Sectoral Focal Points for ECDC had not functioned effectively since the adoption, in May 1981, of the Caracas Programme of Action. 75.  The meeting was of the view that this situation had been a contributive factor for the limited progress achieved so far in the implementation of the Caracas Programme of Action.

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76.  In order to strengthen the National Focal Points network to effectively carry out the coordination and implementation of the CPA, at the local and international level, the meeting adopted the following additional recommendations: a.  the strengthening of the National and Sectoral Focal Points network should continue to be one of the most important objectives to be achieved in order to promote and to enhance economic and technical cooperation among developing countries; b.  the countries which have not yet designated their national focal points should do so as soon as possible and communicate their decision to the Office of the Chairman of the Group of 77; c.  the Chairman of the Group of 77 should continue to update and circulate during IFCC meetings the list of National as well as Sectoral Focal Points for ECDC/TCDC; d.  the National Focal Points should transmit, before the end of each calendar year, to the Chairman of the Group of 77 their consolidated report including the activities of the Sectoral Focal Points. These reports should be circulated by the Chairman of the Group of 77 before the (biennial) meetings of IFCC; e. enhance the communication among governmental institutions in charge of economic cooperation to ensure system-wide coordination; f.  to strengthen regional cooperation by establishing a coordination center at the regional and subregional level; g.  enhance the coordination between the sectoral and regional centers. The sectoral centers should present a report of their activities to the regional centers twice a year; h.  the National Focal Points will meet whenever is necessary to discuss ECDC matters; i.  to promote ECDC activities within the private sector to take advantage of its experiences and potentials; j.  to organize in cooperation with the U.N. and other non-U.N. organizations orientation seminars to develop national awareness and to promote the participation of local governments, NGOs, universities and other associations at all stages of implementation of development programmes and projects.

III.  Perez-Guerrero Trust Fund for ECDC/TCDC 77. In accordance with the guidelines of the Perez-Guerrero Trust Fund for Economic and Technical Cooperation among Developing Countries, the Committee considered the Report of the Eighth Meeting of the Committee of Experts of the Perez-Guerrero Trust Fund for ECDC/ TCDC, held in New York, on 28–30 June 1993. 78.  The Committee expressed its thanks to Mr Ahmed Djoghlaf, Chairman of the Committee of Experts, for introducing the report and his presence during IFCC. 79.  With regard to the recommendation contained in the Report of the Committee of Experts on project proposal No.32 entitled Financing of the follow-up of the activities of the Group of 77 Action Committee for Collaboration in the Field of Consultancy, Construction and Engineering, the Committee decided, in the light of questions raised during discussions concerning the non-eligibility of this project proposal for funding, to send this proposal back to the Committee of Experts of PGTF for reconsideration at its special meeting to be convened in accordance with the decision contained in paragraph 57 above. 80.  In this context, the Committee welcomed the additional proposal aimed at convening before the end of 1993 the special session of the Committee of Experts of PGTF which should also examine the implementation of the guidelines for utilization of PGTF resources in the light of

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the experience gained and in order to recommend their improvement and adjustment if necessary. 81.  With the above observation taken into account, the Committee approved the Report of the Eighth Meeting of the Committee of Experts of PGTF.

IV.  Consideration of the Report of the South Commission: Recommendations on ECDC/TCDC 82.  On the request of some delegations of the Group of 77, IFCC-VIII considered Chapter 4 of the ‘Challenge to the South: The Report of the South Commission’ which dealt specifically with economic cooperation among developing countries. Chapter 4 of the Report entitled ‘Mobilizing the South: Towards Greater Cooperation among Developing Countries’, contained a list of recommendations on strengthening South-South cooperation. Some of these recommendations, made in 1990, had already been overtaken by events and others looked too ambitious to be reviewed within the purview of the IFCC mechanism. The Office of the Chairman of the Group of 77, therefore, selected some recommendations that could be considered for implementation by IFCC-VIII. These recommendations and specific methods of their operationalization were presented to IFCC-VIII. 83.  In the presentation of the Chairman’s report, it was clearly indicated that the recommendations of the Chairman were based on a sincere attempt to move towards the implementation of some of the recommendations of the South Commission Report. 84. The meeting was attended by a representative of the South Centre, Ambassador Frank Bracho. In explaining the contributions of the South Centre to the work of the developing countries in the multilateral fora, he indicated that the Centre had provided intellectual and analytical input through its papers, inter alia, on restructuring of the United Nations and issues relating to the environment and the economic agenda. With reference to the Report of the South Commission, Ambassador Bracho stated that the recommendations of the Commissioners tackled important questions which were not necessarily time-bound but were a part of a discussion and mobilization process, more important than the Report itself. In this light, he stressed the need to keep the discussions on ECDC/TCDC alive in the U.N. and to maintain an annual review on the matter in the General Assembly. He informed delegates of the new phase of activities of the Centre in Geneva as a government-sponsored non-governmental organization and invited member countries of the Group of 77 to associate themselves with this new phase of activities of the Centre. 85.  While appreciative of the approach of the report of the Chairman of the Group of 77, IFCCVIII made the following recommendations: a.  The Group of 77 and the South Centre should undertake a study of the trends of unemployment in developing countries and their danger to stability in the developing world. b.  The South Centre should present a report on efforts made for the implementation of the General Assembly resolution 45/195 relating to the South Commission Report. The Committee also stressed the need for the early implementation of the recommendations in paragraph 9 of document A/46/448 of September 12, 1991, containing the Report of the President of the ECOSOC for 1991. c.  It noted with appreciation the work done by the Office of the Chairman of the Group of 77 and the South Centre. d.  It noted also the major contribution made by the South Commission Report for the operationalization of ECDC/TCDC activities. e.  In the context of ECDC, it stressed that particular attention should be given to the services sector bearing in mind the importance of this sector in the Uruguay Round.

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f.  The Group of 77 in New York may consider setting up a mechanism for developing countries to discuss matters pertaining to debt.

V.  Venue and Date of the Next IFCC Meeting 86.  The Committee requested the Chairman of the Group of 77 in New York to conduct the necessary consultations with the Member States for the convening of the next IFCC meeting.

VI.  Adoption of the Report and Closure of the Meeting 87. The Eighth Meeting of the Intergovernmental Follow-up and Coordination Committee adopted its Report at its last session. 88.  A resolution of thanks to the host government and people of Panama and the Chairman of IFCC-VIII, Ambassador Carlos Arosemena, Permanent Representative of Panama to the United Nations, was proposed by the delegation of Algeria and adopted by acclamation. 89.  The Committee also adopted by acclamation a resolution of thanks to the Chairman of the Group of 77, Ambassador Luis Fernando Jaramillo, Permanent Representative of Colombia to the United Nations, proposed by the delegation of Algeria. 90. The Minister of Foreign Affairs of the Republic of Panama, His Excellency Mr Julio E. Linares, made a closing statement to the Committee. 91. The Eighth Meeting of IFCC was declared closed by its Chairman, His Excellency Ambassador Carlos Arosemena.

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9.  Ninth Session of the Intergovernmental Follow up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-IX), Manila, Philippines, 9–12 February 1996 a. Final Report Introduction 1. The Ninth Meeting of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-IX) was held in Manila, from 9 to 12 February 1996. 2. The Meeting was attended by delegations from the following Member-States of the Group of 77: Algeria, Antigua and Barbuda, Argentina, Bangladesh, Federative Republic of Brazil, Bhutan, Burkina Faso, Burundi, Cameroon, Cape Verde, Colombia, Comoros, Costa Rica, Cuba, Egypt, Ghana, Guinea, Guinea-Bissau, Guyana, Gambia, India, Indonesia, Iran, Kenya, Republic of Korea, Kuwait, Lesotho, Lao People’s Democratic Republic, Malaysia, Mali, Mauritania, Myanmar, Namibia, Nigeria, Pakistan, Republic of the Philippines, Qatar, Samoa, Senegal, South Africa, Swaziland, Thailand, Uganda, Untied Republic of Tanzania, Venezuela, Vietnam, Yemen, Zambia, Zimbabwe. 3.  Representatives from the United Nations Conference on Trade and Development (UNCTAD) and the G-77 Chamber of Commerce and Industry of Developing Countries participated as observers. 4.  The Meeting was also attended by the Chairman of the Group of 77, H.E. Ambassador Fernando Berrocal-Soto (Costa Rica).

I.  Opening Ceremony 5.  The Welcome Address was delivered by Dr. Jaime S. Bautista, Assistant Secretary, Office of United Nations and Other International Organizations, Department of Foreign Affairs of the Republic of the Philippines. 6.  The Honorable Cielito F. Habito, Secretary for Socio-Economic Planning of the Philippines delivered the keynote address and called on the Group of 77 Member States to more effectively mobilize and deploy their resources, both nationally and collectively to energize development, draw strength from joint undertakings, exploit global opportunities and make the international system more responsive to their respective interests and as a collective whole. 7. The Secretary observed that while economic cooperation among developing countries is essential, it should not be regarded as a substitute for the more important global economic cooperation between developing and developed counties. He stressed that neither should it in any way replace or relieve the industrialized countries from their responsibilities and commitments toward developing countries. 8.  H.E. Fernando Naranjo-Villalobos, Minister of Foreign Affairs of Costa Rica and Chairman of the Group of 77 stated that it is imperative for the Group to harmonize and strengthen the coordination of its activities at the interregional, regional and sub-regional levels. He called for intensified South-South cooperation in the critical sectors of trade, finance, science, technology

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and technical cooperation, within the framework of Caracas Programme of Action (CPA) and Action Programme for Economic Cooperation (APEC). Towards this end the Foreign Minister recommended that the Joint Coordinating Committee of the Non-Aligned Movement and the Group of 77 undertake the process of harmonization of the two programmes. 9.  The Minister encouraged greater momentum for ECDC activities, while guarding against the risk of undertaking projects without fully assessing their potential. In this connection, he stressed the need to look into the reasons behind the inadequate utilization of the Perez-Guerrero Trust Fund (PGTF) and recommended specific ways and means of maximizing the benefits that can be derived from the Fund, as well as the new Trust Fund for South-South Cooperation. 10.  Mr Jaime Giron, Representative of the Chairman of the Non-Aligned Movement (NAM) and delegate of Colombia, recalled that the Chairman of NAM started the analysis of the different aspects, actors and objectives of South-South cooperation. He highlighted the need for cooperation in defining a realistic and positive agenda to maximize the use of the ministerial level meetings on South-South cooperation and those of the Group of Experts on Science and Technology. 11. The Statement of Dr.  Julius Nyerere, President of the South Centre, was delivered by Ambassador Jose Manuel Gutierrez, Deputy Permanent Representative of Costa Rica to the United Nations in New York. In his statement, President Nyerere called for the further strengthening of cooperation between the Centre and the Group of 77.

II.  Election of the Bureau 12.  The Committee elected by acclamation the Bureau composed of: Chairman -H  is Excellency Jaime S. Bautista Assistant Secretary Office of the United Nations and Other International Organizations Department of Foreign Affairs Republic of the Philippines Vice-Chairmen -H  .E. Ambassador Momodou Kebba Jallow Permanent Representative of the Gambia to the United Nations, New York. - H.E. Ambassador Jose Manuel Gutiérrez Deputy Permanent Representative of Costa Rica to the United Nations, New York. Rapporteur -M  r Aliou Moussa Counsellor to the Permanent Mission of Cameroon to the United Nations, New York.

III.  Adoption of the Agenda and Organization of Work 13.  The Meeting adopted the provisional agenda with the addition of the topic: The Report of Mr Tariq Sayeed, President, G-77 Chamber of Commerce and Industry of the Developing Countries. The Committee also adopted its schedule of activities. 14.  The Meeting decided to create two Working Groups, chaired by the two Vice-Chairmen. The Working Group I’s mandate was to discuss: a. Raw Materials; b. Technology; and c. Technical Cooperation and Industry. The Working Group II’s mandate was to discuss:  a.  Food and Agriculture; b. Energy; and c. Finance and Trade. 15.  The Meeting was provided with working documents prepared by the Office of the Chairman of the Group of 77, including the Report of the Sectoral Review Meeting of the Group of 77 on

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Energy, the Report of the Sectoral Review Meeting of the Group of 77 on Food and Agriculture, Report of the South Center.

IV.  Follow-up Action on Recommendations Made by IFCC-VIII 16.  The Meeting considered the documents relating to agenda item 4 (a to f) and the recommendations made by the Eighth Meting of the IFCC in Panama in 1993 as well as the extent of their implementation towards the achievement of the goals of the Caracas Programme of Action. As a result of this consideration, the Meeting adopted the following:

IV.A. 30th Anniversary of the G-77 17.  The Secretariat informed the delegations that all the documents were for their information unless there were comments, which they might wish to reflect.

IV. B. Sectoral Meetings Under the Caracas Programme of Action (CPA) 18.  The Meeting took note of the outcome of the Sectoral Review meetings of the G-77 on Energy held in Jakarta, Indonesia, on 5–7 September 1995 and on Food and Agriculture held in Georgetown, Guyana on 15–19 January 1996.

SECTORAL RECOMMENDATIONS Food and Agriculture 19.  The Meeting recommended: a.  The adoption in full of the conclusions and recommendations, including the Georgetown Declaration on Sustainable and Competitive Agriculture by the Group of 77, of the recent Sectoral Review Meeting of the G-77 on Food and Agriculture held in Georgetown, Guyana from 15 to 19 January 1996. b.  In respect to fisheries, cooperative action among countries under the terms of paragraph 32 of the Caracas Programme of Action. c.  In respect of augmentation of food production, cooperative action among countries under the terms of paragraph 29 of the Caracas Programme of Action. d.  Establishment of temporary support mechanisms for local farmers, allowing them to adapt to the changes that the process of trade globalization will introduce in their economies. e.  Recognition of the functions played by women in the rural development of the developing countries.

Energy 20.  The Meeting recommended: a.  The adoption in full of the conclusions and recommendations of the final report of the Sectoral Meeting of the Group of 77 and China on Energy held in Jakarta, Indonesia, from 5 to 7 September 1995. b.  The exploration of ways and means to increase joint ventures and promote flows of direct investment among developing countries in energy-related issues. c.  Harmonization of the programs of developing countries on manpower training. d.  Creation and enhancement of data banks and exchange of information in the field of ‘triangular funding’ of energy exchanges.

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Trade and Finance 21.  The Meeting recognized the fact that after almost 20 years of its release, the Caracas Program of Action on the issues of Trade and Finance has to be fully updated along the following guidelines: a.  Trade among Developing Countries constitutes still a small proportion of international trade and a minority share in developing country trade. Experience has demonstrated that to promote this trade, efforts should be expanded to enlarge cooperation to include production and technological cooperation and cooperation in investment. This would create the trade products needed and distribute more equitably the benefits of trade. Experience also demonstrates that trade among developing countries would not take place without adequate trade-financing, at appropriate terms and conditions, especially concerning non-traditional exports of small and medium-sized enterprises of developing countries. Enlarging the marketing networks, the trading capacity and the trade information are essential for trade expansion among developing countries. b.  The importance of financial and monetary cooperation among the developing countries and with the developed countries should be reaffirmed. In this context, the support for the effective use, as appropriate, of the clearing and payment arrangements of the developing countries, should be reiterated. The progress achieved in the Second Round of the Global System of Trade Preferences among developing countries (GSTP) should be noted. GSTP should be further revitalized and its coverage expanded in the light of the new reduction of trade barriers and tariffs brought about by the conclusion of the Uruguay Round. c.  The conclusion of the Uruguay Round of Multilateral Trade Negotiations has provided a good opportunity for regional and sub-regional integration groupings to reflect on how the Uruguay Round impacts on ECDC. d.  Trade financing is an essential facet of ECDC. In addition to trade, trade financing underpins business investments and technological cooperation. In this respect it was recognized that efforts should be made on three fronts: to assist in developing and upgrading national and regional institutions so as to build up their institutional capacity and train their personnel; to mobilize the involvement of financial institutions such as development banks and export credit agencies in the promotion of trade financing, especially for non-traditional exports and small scale enterprises; and to consider launching a process aimed at achieving multilateral credit arrangements among developing countries. e. Capital market cooperation is of major importance for the mobilization of financial resources. In this regard, it could be useful to continue to develop, or introduce where they do not exist, inventories of regulations, legislative and other policy measures towards standardization, harmonization, equal treatment and eventual adoption of international norms by integration groups interested in capital market cooperation. The need to avoid duplication of previous or ongoing work should be borne in mind. Strengthening links among financial institutions, such as commercial banks of developing countries, is another possible area, which could contribute significantly to capacity-building and financial networking. f.  Among regional partners where closer economic ties are sought, predictable monetary policies are prerequisites for stable and realistic foreign exchange rates. To this effect, monetary policy coordination, including that of foreign-exchange policies, is increasingly important. For this purpose, the function of regional and sub-regional monetary agencies, where they exist, may need to be strengthened. Clearing and payment arrangements should be encouraged to assume a similar role where such a regional mechanism does not exist. g.  The attainment of currency convertibility by some developing countries does not diminish the importance of their clearing and payment arrangements. These continue to play an

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important role in technical assistance to these clearing and payment arrangements. It must be recognized that arrangements such as the Coordination Committee on Multilateral Payment Arrangements and Monetary Cooperation among Developing Countries should be supported. h.  Direct investment among developing countries should be encouraged. For this, it may be worthwhile to consider measures such as the harmonization of investment policies and conclusion of bilateral and multilateral promotion and protection treaties. i.  It is important to create the necessary conditions to encourage cross-border business activities. The dissemination and networking of information on investment opportunities, rules and regulations will contribute to the facilitation of investment to and among developing countries, in particular those dealing with measures on how to cope with liberalization and privatization. j.  In the interest of evolving effective ECDC under the present conditions, it is imperative to encompass cooperation in investment, production, technology and the development of human resources in addition to trade and market access. Such multi-faceted cooperation contributes directly to the supply capacities of developing countries. Such cooperative efforts should be deepened and intensified.

Science and Technology 22.  The Meeting recommended that development of scientific and technological capabilities in developing countries be pursued through inter-country cooperation in the exploitation of economies of scale and complementarities in the areas of research and development, technology transfer and commercialization exchanges of information, experts and human resources development. To achieve these objectives in the context of the CPA, developing countries should inter alia: a.  Establish and upgrade existing national and regional institutions or agencies dealing with science and technology to accelerate and enhance cooperation among developing countries. b. Endeavor to incorporate the provisions of the CPA into national policies and programmes. c.  Establish and maintain data bases containing the strengths and needs of developing countries in science and technology, including lists of scientists and experts in specific fields. d.  Establish networks of R&D and S&T institutions, or ‘Centers of Excellence’ in the identified priority areas such as:  information technology, biotechnology, energy and human resources development, among others. e.  Promote research and development and technology transfer activities among developing countries with the active participation of the private sector. f.  Enhance the capabilities of the developing countries in negotiations for the transfer of technology from developed to developing countries and between developing countries. The activities of the Centre for Science and Technology in India established by the Non-Aligned Movement is important in this regard and developing countries are urged to actively participate therein. g.  Utilize effectively the potential of the United Nations system in the promotion of science and technology cooperation among developing countries. h.  Convene technical and experts meetings, as well as meetings of heads of agencies responsible for science and technology for continuous planning and assessment of the progress made in this area. i.  Cooperate in the development of indigenous scientific and technological capabilities.

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j. Promote and strengthen joint efforts in pursuit of the development of environmentally sound technologies. k.  Promote ‘Science and Technology Culture’ which includes information dissemination, inclusion of S&T in the educational curriculum and improvement of S&T infrastructure.

Raw Materials 23.  The Meeting also agreed to recommend: a.  Increased participation of developing countries in international trade based on available or existing commodities and preferential tariffs should be encouraged and facilitated, while the necessary commodity and trade policies to achieve stabilization of raw material prices, diversification and other related factors are being developed. b.  The developing countries should call for the institutionalization of measures to mitigate the negative and adverse effects from the implementation of the Uruguay Round of Multilateral Trade Agreement, in order to positively impact on the economies of the least developed countries. c.  The G-77, as soon as practicable, should hold a sectoral meeting on raw materials in the context of the Caracas Programme of Action, consistent with the theme on the Development of Africa as adopted by the ECOSOC, during its substantive meeting in Geneva, in June 1995. d.  Developing countries should work towards coordinating the national, regional, interregional commodity policies that address the questions of research and development, diversification, investments and trade. e.  Developing countries should give importance to the raw materials and commodities sector, with a view to adding value before exportation and to using environmentally sound and efficient technologies for production and exploitation, as well as for storage and transportation. f.  Developing countries should become active parties to the GATT (UR)-WTO to achieve liberalization of international trade and reestablish comparative advantages of developing countries in commodity production. g.  The international community should strive to actively participate and work for innovative and responsive approaches in existing international commodity agreements, like the Common Fund for Commodities, to improve the earnings of commodity producers. h.  The Action Committees on Raw Materials should be requested to submit to the next G-77 Ministerial Conference a report on the study it was mandated in IFCC-VIII in Panama, relating to the association of and agreements between producers and exporters of raw materials. i.  The possibility of adapting applicable features of sub-regional growth models in the areas of raw materials in trade, distribution, marketing, investments and exchange of technology should be explored.

Industrialization 24.  The Meeting agreed to recommend: a.  Developing countries should encourage small and medium scale industries as an approach to the implementation of industrialization programmes. To this end, it was felt that a favorable environment should be established, including, inter alia, the harmonization of fiscal incentives for investments, coordination of open trade policies, joint development of human resources, and inter-regional transportation facilities. b.  Developing countries, where possible, should coordinate industrialization strategies at the sub-regional, regional and inter-regional levels, to take advantage of complementarities, scale economies and lower costs. In this connection, more effective use should be made of existing

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mechanisms provided by integration groupings for regular review and identification of specific industries. c.  UNIDO should be called to assist developing countries in the process of sharing their capacities and responding to each other’s needs, through an inventory of capacities and needs of developing country institutions and of international institutions in specific industrial sectors. d.  In considering UN reforms, developing countries should support the continued existence and the improvement in effectiveness of the UNIDO. e.  In implementing joint development of human resources, developing countries should maximize training resources in appropriate and innovative technologies. f.  Developing countries should recognize the critical role of Science and Technology and Human Resource Development (HRD) in the process of industrialization by emphasizing basic education, training and skills upgrading as well as by exchanging information through national focal points, dialogues, publications and exchange of experts. Developing countries should commit to put together national, sub-regional and inter-regional HRD proposals and facilitate exchanges in this area.

Technical Cooperation 25.  The Meeting recommended: a.  Strengthening of the capability of relevant national institutions to identify national technical needs and adequately describe available national technical capacities. These are responsibilities, which should be pursued by strengthened national focal points. b. Development of specific information banks such as SID/TAP, SID/NET and TCDC INRES-South of the Special Unit for TCDC of UNDP, to integrate and disseminate national submission of needs and capacities and to network within and among developing countries and other international organizations. c.  Promotion and implementation of TCDC programming exercises in a well-coordinated manner to meet the demands of user-countries. This should be the responsibility of host developing countries, UN agencies, particularly the Special Unit for TCDC of UNDP, UNCTAD as well as other relevant parts of the UN system. d.  Specific programmes of assistance to be created for those countries, which require assistance in identifying and articulating their needs and capacities, in order to participate fully in TCDC activities and programming exercises. Developing countries, in a position to do so, are encouraged to provide resources for these activities and programming exercises. e.  Convincing the United Nations bodies and multilateral development funding institutions to make it a condition that TCDC modalities should be employed as a first option wherever and whenever possible in any project. f.  Exploration of tripartite and multipartite funding arrangements as a means of increasing availability of resources for promoting TCDC. In addition, private sector and NGO-funding should be encouraged. g.  The various regional and sub-regional programmes organized by the multilateral agencies play an important role in allocating resources in support of TCDC initiatives. h.  Encouragement of developing countries in setting aside national counterpart funding for TCDC activities. The future direction of TCDC should be oriented not only to science and technology and human resource development but also to environmental protection. i.  Periodic meetings of TCDC national focal points should be held to exchange ideas for promotion and implementation of TCDC activities. Such meetings may be organized by the Special Unit of TCDC in New York.

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26. Other Issues a. The meeting emphasized the importance of the Programme of Action adopted at the Global Conference on the Sustainable Development of Small Island Developing States (SIDS), held in Barbados, in April to May 1994, and welcomed the General Assembly resolutions on the subject which called upon the international community to support the implementation of the Programme of Action. In particular, it welcomed the progress being made by UNDP in compiling the Directory of SIDS scholars and experts. It also urged UNDP to continue its efforts to identify high-priority technical assistance projects to be implemented under the Small Island Developing States Technical Assistance Programme (SIDS/TAP), in fulfillment of the objectives of the Barbados Programme of Action. Finally, it urged UNPCSD and other organizations and agencies of the UN system to ensure increased coordination of effort in implementing the Barbados Programme of Action. b.  In order to resolve the concerns of different interested countries on the distribution and benefits gained from the limited resources of the PGTF, the Meeting underlined the need to find projects in areas of common interest for most of the developing countries. For example:  i) importation of technology for agriculture development to achieve goals like food security (diversification horizontal and vertical); ii) encouraging production in and trade on environmentally competitive advantages so that developing countries could be assisted in meeting the challenges posed by a liberalized and globalized world economy and could face the negative impacts of the Uruguay Round. At the same time, this would allow widening the range of interested partners to increase their contributions to and enhancing the capital of the Fund.

IV.C. Joint Coordinating Committee Between the Non-Aligned Movement (NAM) and the Group of 77 27.  The document was introduced by the Delegate of Colombia. He stated that the Terms of Reference for the Joint Coordinating Committee (JCC) was decided during the last meeting in Panama and has been dealt with for the past four to five years. The JCC is envisioned to enhance collaboration, avoid duplication of efforts, and provide for greater efficiency in the attainment of common goals and objectives of the two groupings. He commented that at present, there exists an excellent coordinating mechanism between the G-77 and NAM. 28.  The Meeting noted that since the Terms of Reference of the JCC are still in an evolutionary stage, several things have to be worked out by the Committee. It sought clarification on the progress of harmonization of the implementation of APEC and CPA. 29.  The Meeting proposed the strengthening of the G-77 office in New York, particularly at the operational level, in order to fully implement the mandate of JCC in enhancing South-South cooperation and harmonizing the CPA of the G-77 and the APEC of NAM. 30. The Meeting recommended that both the recommendations of the Sectoral Meetings on Food and Agriculture held in Georgetown and on Energy held in Jakarta should be delivered to the Chairman of NAM in New York.

IV. D. Harmonization of the Caracas Programme of Action (CPA) on ECDC of the G-77 and the Action Programme for Economic Cooperation (APEC) of NAM 31.  The Meeting emphasized the need for concrete action in harmonizing the proposals contained in the two documents and for practical modalities for actualizing the proposals in the documents.

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32.  The Meeting proposed that a study of these documents by institutions, such as the South Center, be made to consolidate them with guidance on the approach from the JCC.

IV. E. Follow-up on the Review and Evaluation of the CPA Undertaken by IFCC-VIII 33.  Having recommended the approval of the reports of the Sectoral Meetings on Energy in Jakarta and on Food and Agriculture in Georgetown, the Meeting noted the plans of the current chairmanship of the G-77 to hold two more sectoral meetings, one on Raw Materials and another on Trade and Finance.

IV. F. Report of the South Centre 34.  The Meeting took note of the Report of the South Centre and the Meeting further acknowledged the support given by the South Centre to the G-77’s institutional mechanisms and called for the Centre’s continued support.

V.  A. Supporting Mechanisms for the Strengthening of the Institutional Effectiveness of the Group of 77 35.  The Meeting stressed the need to seriously address the subject of strengthening the institutional capacity of the G-77. 36.  The Meeting acknowledged the support given by UNCTAD to the G-77’s institutional mechanisms and called for the continuation of its support, backstopping and facilitation. 37.  The Meeting was informed that there was an initiative made by the African Group to convene a Sectoral Meeting on Raw Materials. It underscored the importance of follow-up meetings on CPA to come up with a blueprint of action for the G-77. It also noted the staffing difficulties of the G-77 Secretariat in New York and expressed the need to address this issue. 38.  The Meeting recommended that the CPA focus on the utilization of funds and programs for African countries. 39.  The Meeting was informed of a decision made in Geneva in March 1995 by the Chapters of the G-77 that the next G-77 Chapters Meeting would be held in Nairobi, Kenya.

V.  B. Report of Mr Tariq Sayeed, Chairman of G-77 Chamber of Commerce and Industry of Developing Countries 40.  The Chairman of the G-77 Chamber of Commerce and Industry of Developing Countries informed the Delegates of the various concerns of the Chamber, among which were: a.  The development of some institutional frameworks, which could facilitate financing in South-South trade; b.  The setting up of a trade fair authority; c.  Addressing the problems affecting landlocked developing countries; d.  The setting up of a trade information network; e.  The publication of a Compendium, which will serve as a readily available source for developing insights into the economy of each country and thereby enlarging the scope of cooperation. 41.  He also emphasized the importance of the private sector in economic development. In conclusion, he recommended the strengthening of cooperation and coordination among all

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institutions, like the G-77, NAM, UNCTAD and UNDP, in addressing crucial issues confronting Third World Countries, such as balance of payments problems, unemployment, inflation, mounting debt burden, among others. 42.  The Meeting emphasized that while the role of the private sector in developing countries is important, the role of the informal sector should also be taken into account. The Meeting was informed that Guinea will host a workshop on this subject in April 1996. 43.  The Chairman of the Chamber of Commerce of the G-77 stated that they are coordinating with all regional and international groupings to address issues of economic cooperation. He also called for greater participation from developing countries in the series of meetings that will be undertaken by the Chamber. 44.  The Meeting proposed that the involvement of the Chamber should not only be limited to the implementation stage, but also in the planning and review of the project.

VI.  Preparation of UNCTAD-IX 45.  The Meeting noted the view that this UNCTAD IX will be critical in the light of the UN restructuring, and the future role of the ‘G-77 and China’ forum in determining common negotiation positions for developing countries. 46.  The Meeting was informed of the provisional arrangements for UNCTAD IX, currently being organized by South Africa’s Department of Foreign Affairs. Details were also provided on the parallel forums being organized complimentarily to the main event, namely: Africa Connect, Symposium on Mineral Sector Investment and Development, NGO parallel Conference, and the Small and Medium Business Conference. a.  The Meeting stressed the importance developing countries attach to UNCTAD in relation to the post-Uruguay Round System, especially for identifying issues for future negotiations, technical assistance to developing countries and the consideration of the impact of the trading system on development. b.  The Meeting also stressed the importance of ECDC in the future work of UNCTAD. It is of the view that the globalization of the world economy renders ECDC a critical instrument for the effective participation of developing countries in the global economy. Towards this end, the IFCC-IX considered that UNCTAD should have a specific part of its work devoted to ECDC. In this respect, the IFCC-IX holds that this is best done by having a specific program with a cross-sectoral approach to ECDC and LDC questions in view of the interdependent nature of the issues involved. 47.  The Meeting stressed the need for developing countries to utilize the occasion of UNCTAD-IX, which will be held in South Africa, to secure benefits to development and forge outcomes, which would meet the challenge of minimizing the risks of marginalization and instability among nations. 48.  The Chairman of the G-77 pointed out that the coordination of the G-77 for the UNCTAD-IX corresponds to the Chapter of Geneva and stressed that all efforts shall be undertaken by that Chapter to achieve a common position. He pledged to address to the Chairman of the Geneva Chapter a statement on this particular. 49.  In the context of the future work and orientation of UNCTAD, the meeting stressed the importance developing countries attached to UNCTAD and its work, especially in the post-Uruguay Round System. They attached great importance to its work for identifying issues for future negotiations, to technical assistance to developing countries in negotiations and its consideration of the impact of the trading system on development. 50.  The Meeting proposed that the Group of 77 should formulate harmonized positions for the forthcoming UNCTAD-IX in order to address the common concerns and issues of developing

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countries such as trade and development, technology, industrialization, debt burden, market access, increased ODA flows, reduction of trade and tariff restrictions, and the negative impact of the WTO on the economies of least developed and developing countries. 51.  The Coordinator of LDCs informed the meeting of the major points of concern of the LDCs that would be raised during UNCTAD-IX.

VII.  United Nations Conference on South-South Cooperation 52. The Meeting expressed its recommendation to pursue the holding of a United Nations Conference on South-South Cooperation and to push this initiative in the next UNGA Meeting. It was agreed that the G-77 should be urged to vigorously pursue this proposal.

VIII.  Fourth Meeting of the Heads of National Focal Points for ECDC 53.  The Meeting took note of the Document entitled Directory of National Focal Points for ECDC.

IX.  Perez-Guerrero Trust Fund for ECDC/TCDC 54.  The Meeting noted that the Perez-Guerrero Trust Fund for ECDC/TCDC is at present experiencing two difficulties: a.  The lack of a clear legal framework as a basis for constitution of the PGTF in view of its evolutionary stage resulting from a collection of deeds, resolutions, minutes of meetings of experts, declarations, aides-memoire, letters and memoranda. b.  The fact that a considerable amount of resources is allocated to the annual evaluation of project proposals by the Committee of Experts as compared to the allocations for feasibility studies. 55.  The Chairman of the G-77 informed the Meeting about some proposals for structural changes to the operations of the Perez-Guerrero Trust Fund. The Meeting recommended that a written proposal be submitted for further consideration at the Ministerial Meeting of the Group of 77 to be held in New York in September 1996.

X.  Cooperation Within the Framework of the UN System in the Field of ECDC/TCDC 56.  The Chairman of the Group of 77 in his statement noted that what is known as the Integration between TCDC and ECDC is the relation of the Caracas Programme of Action (CPA), which is a comprehensive action plan about the Economic Cooperation among Developing Countries (ECDC) with Technical Cooperation among Developing Countries (TCDC). He observed that TCDC is in the process of being re-oriented taking into account the fundamental shifts that have occurred in the dynamics of global development cooperation. He recommended that development interventions should be focused on the following themes in order to increase the impact of development strategies: a.  Trade and Investment b. Debt c.  The Environment d.  Poverty Alleviation e.  Production and Employment f.  Macroeconomic policy coordination g.  Aid Management

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57.  The Meeting decided to forward the recommendations of the IFCC-IX to the Ministerial Meeting of the Foreign Ministers of the Group of 77 scheduled to be held in September 1996, in New York. 58.  The Meeting also agreed that the review of the Caracas Programme of Action (CPA) should take into account the areas identified by the TCDC.

XI.  Venue and Date of IFCC-X 59.  The Meeting requested the Chairman of the Group of 77 for 1997 to conduct the necessary consultations with the member states for the convening of the next IFCC Meeting to be held in Africa.

XII.  Adoption of the Report 60. The Ninth Meeting of the Intergovernmental Follow-up and Coordination Committee adopted its report at its last session.

XIII.  Closure of the Meeting 61.  The Chairman of the Group of 77 expressed the gratitude of the participants to the Government and people of the Philippines for the warm welcome and hospitality accorded to them. He also paid tribute to the Secretariat for the efficient conduct of the Conference. 62.  The participants likewise expressed their appreciation for the efforts exerted by the Chairman of the Group of 77, H.E. Dr. Fernando Naranjo-Villalobos, Minister of Foreign Affairs of Costa Rica, in pursuing the goals set by the IFCC. 63.  The Chairman of the Meeting, Dr. Jaime S. Bautista, conveyed to the participants the felicitations of H.E. Domingo L.  Siazon, Jr, Secretary of Foreign Affairs of the Republic of the Philippines on the successful outcome of the Meeting and declared the Ninth IFCC closed.

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10.  Tenth Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-X), Tehran, Islamic Republic of Iran, 18–23 August 2001 a.  Recommendations adopted by the Committee SECTORAL RECOMMENDATIONS Trade The Committee recommended the following: 1.  Ensure that obstacles to the development of South-South trade are removed, and adjust domestic regulations and structures so as to facilitate trade among themselves. The creation of business-friendly environment, with a transparent and predictable regulatory framework, will greatly facilitate development of their trade ties. 2.  Strengthen regular exchange and wide dissemination of trade information and trading opportunities among developing countries through greater access to and use of information technology instruments. In this context, establish a South-South trade information network. Requests the ITC to assist in this regard. 3.  Organize regular meetings of the private sector with the government sector to exchange views on trade policies and measures; conclude trade agreements, investment promotion and protection agreements, and avoidance of double taxation; organize trade and investment fairs; 4.  Explore ways and means to develop better and direct transport links and other infrastructures among developing countries, to facilitate payments arrangements in the light of experiences of developing countries, to and overcome production constraints and bottlenecks. 5.  Developing countries will promote initiatives in favour of the Least Developed Countries to enable them to participate effectively in South-South trade cooperation and to this end, help these countries build their national capacities in the context of South-South cooperation. 6.  Reinvigorate the Global System of Trade Preferences among Developing Countries (GSTP) to promote further South-South trade: (a) Expedite the domestic process of ratifying tariff commitments of GSTP participants. (b) Rationalize the process of negotiations for a third round of GSTP negotiations. (c) Invites the GSTP Sub-Committee to update the schedules of tariff concessions and develop proposals for a framework aimed at negotiations in a third round. UNCTAD is also invited to contribute to this process. 7.  Requests the secretariats of UNCTAD, the WTO and the ITC to intensify programs on capacity building, covering international trade and other economic agreements. Priority attention should be accorded to such fields as adaptation of their domestic legislation and regulations, including customs tariffs, development of legal expertise on international settlement of trade disputes, product standardization, and harmonization of customs procedures. Developing countries in the process of acceding to multilateral trade agreements deserve special assistance in this regard. 8.  Requests the Chairman of the Group of 77 to explore with the Geneva chapter of the Group of 77 the establishment of a WTO Law Center for the Group of 77 to assist members in making appropriate legislative adjustments for complying with their obligations and asserting their rights in multilateral trade agreements, such as trade in services and intellectual property rights. In addition, developing countries should harness the legal talents available in the South and develop a roster of legal luminaries on trade policy matters.

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9.  Reiterates the necessity of coordinating the position of developing countries prior to the WTO Fourth Ministerial Conference in Doha. In accordance with the Havana summit decisions, such coordination is necessary to ensure that the interests and concerns of developing countries are fully taken into account. 10.  Reaffirms, in this regard, its full support to the ongoing efforts exerted by the Geneva chapter of the Group of 77.

Finance The Committee recommended that: Recognizing the need for collective efforts of the South in the financial and monetary domain, and in particular as concerns the need for reform of the international financial architecture and South’s unity in acting within the Bretton Woods institutions in defense of its common goals and interests: 1.  In view of the periodic turbulence and crises in international financial markets, which usually have detrimental and destabilizing effects on the economies of developing countries, new and urgent South-South initiatives are needed to promote stability in these markets and to cope with instabilities when these occur. Initiatives should be encouraged aimed at building networks for multilateral financial cooperation to match the increasing interdependence among developing countries. These initiatives may include regional financial monitoring mechanisms, pooling national reserves among central banks, and arrangements in the field of regional surveillance, information-sharing and early warning. 2.  In view of much higher costs of capital that the developing countries have to pay as compared to the developed ones, and the inequities of this situation, close attention should be paid to improving the credit risk assessment from the point of view of developing countries, and collective action taken in this direction. In this regard, the Committee noted the proposals on the economic and social development in the New African Initiative adopted in Lusaka at the OAU Summit in July 2001, and expressed the hope that this initiative would be a useful model. 3.  Monetary cooperation programmes should be adopted, where appropriate, within the context of regional and sub-regional integration schemes, including the use of national currencies in transactions and mutual trade. 4.  Liberalization in the capital account of the balance of payment should be accompanied by the provision of technical assistance to developing countries so as to enhance their financial regulations prior to starting the removal of restrictions on capital account, including in this respect cooperation with the international institutions like IMF, etc.

Knowledge and Technology The Committee recommended that: Noting the strategic importance of knowledge and technology for the development of the countries of the South in the 21st century: 1.  In the coming period and in their common efforts to advance their scientific and technological capabilities, the developing countries should pursue the following overall strategies: a)  Develop, sustain and utilize local capacities and leadership in efforts to advance science and technology;

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b)  Mobilize the best and most relevant S&T in the South and elsewhere to address critical social and economic problems; c)  Build a strong case for supporting the development of S&T in the South; d)  Establish and strengthen centres of excellence in S&T among Southern universities and research institutions; e) Share innovative and successful experiences in S&T in developing countries, including notable success stories in least developed countries; f)  Mobilize eminent expatriate scientist of developing countries’ descent working and living abroad; g)  Engage the scientific leadership in the South in providing authoritative and independent objective opinions on current scientific issues of critical importance to the policy and decision-making in developing countries; h)  Seek the active participation of the private sector in S&T development. 2.  Set up a South-South mechanism to link up with the G8 Dot force for exploring digital opportunities and in support of actions to bridge the digital gap. 3.  Initiate South-South exchange of information and experiences on work undertaken to develop adequate legal frameworks at the national level, aiming at guaranteeing an appropriate use of cyberspace, including aspects such as the protection of data and privacy, in order to minimize the risks and uncertainties generated by the use of ICTs. Such exchange and cooperation could play an important role in minimizing pernicious effects that the application of these technologies might generate, and in encouraging growing uses of diverse electronic transactions among developing countries. 4.  Promote South-South cooperation that could stimulate development of high tech SMEs in the field of ICT. 5.  In the context of the preparation of the second part of the Information Society Summit, to take place in Tunis in 2005, request the Group of 77 to set up a working party to prepare a joint platform for this Summit and to assure that the interests of the developing countries are fully taken into account. 6.  Establish centres of excellence for S&T capacity building in the South, including in new areas such as digital and information technologies, prepare directories of R&D institutions and initiate their networking for exchange of information and experience, and set up of S&T forums comprising academia, government and private sector. 7.  Establish regional centres for technology, development and transfer, with the objective of creating synergies between public and private investment, equipped with contemporary high tech management tools and serving the technological needs of all conventions, agreements, codes and programmes of the UNCLOS/UNCED process in a regional context. 8.  A  number of developing countries have developed, both in the public and private sectors, knowledge, expertise and know-how in various areas of technological endeavour, including information technologies, biotechnologies, pharmaceuticals, space technologies, renewable energies, etc. This provides a possibility of widening the digital and technological gap even among the South while at the same time provides a new and rapidly growing potential for South-South cooperation in the filed of technology which should be actively pursued. Finance for such cooperation, however, remains a problem. Some developed countries having expressed interest in triangular cooperation, they could be approached to finance provision of technological expertise by a developing country to another developing country, or countries. This option should be explored further and donor countries should be approached to provide finance for such triangular efforts, which could have significant catalytic and multiplier effects.

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9.  Involve more closely in the activities of the Group of 77 those institutions, like TWAS, that have successfully mobilized S&T scholars and institutions from the South in support of development and of building high-level scientific and technical capacities for addressing real-life problems in the South.

Technical Cooperation among Developing Countries (TCDC) The Committee recommended that: Noting the need to tap into the growing knowledge pool and development experience, including in institutional capacities and management experiences, available in many countries of the South that can contribute to building capacity in other developing countries, including the least developed countries: Emphasizing the South-South cooperation be utilized to ensure transfer of experiences in policy formulation and implementation, institutional capacities and innovative collaborative frameworks and management experiences and best practices aside imparting training. 1.  Invite those developing countries with well developed TCDC policy and practice, to intensify their efforts in making such experience and assistance available to those developing countries in need, and in particular the least developed countries. 2.  Invite the Special Unit for TCDC, in close collaboration with the Chairman of the Group of 77, to expand the Web of Information for Development (WIDE) into an Internet-based information system to give greater visibility to development experts, R&D institutions and other technical capacities in the South. In this context, encourage the Unit to include in the WIDE platform a web-based South-South knowledge and technology bank in collaboration with relevant Southern institutions. 3.  Encourage the Special Unit to continue efforts to identify, compile and disseminate, through WIDE, Southern successful practices. In this connection, request all TCDC/ECDC national focal points, regional, sub-regional groupings, UN organizations and all other relevant institutions to provide to the Unit information on such successful practices. 4.  Encourage the Special Unit to continue to develop on a pilot basis new models of TCDC/ ECDC such as triangular arrangements, tripartite R&D arrangements, business-to-business forums, web-based South-South trade centers, in collaboration with relevant UN organizations and relevant institutions in the South. 5.  Request the Special Unit to initiate the production of a SOUTH REPORT, in close collaboration with the Chairman of the Group of 77 and involving various Southern institutions, as called for by the South Summit, to systematically document and analyze empirical data on South-South trade and investment flows, technical assistance flows, cooperation in science and technology and knowledge. 6.  Request the Administrator of UNDP to take adequate measures to enable the Special Unit for TCDC to contribute effectively to the implementation and follow-up of the outcomes of the South Summit. In this context, request the UNDP Executive Board to consider increasing allocation of resources for TCDC.

Food and Agriculture The Committee: Stressed its concern with the level of food insecurity and under-nutrition afflicting vast proportions of populations in numerous developing countries and noted the slow progress towards halving hunger by the year 2015, as envisaged in the World Food Summit held in 1996.

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In this connection, welcomed the establishment of a Trust Fund in the Food and Agriculture Organization of the United Nations (FAO) to be financed by voluntary contributions, initially for an amount of US$ 500 million, to serve as a catalyst for enhancing food production and improving access to food in developing countries, in particular in Least Developed Countries (LDCs), Low Income Food Deficit Countries (LIFDCs) and Small island Developing States, an also for the prevention, control and eradication of trans-boundary pests and diseases of plants and animals. Also considered that the mobilization of such resources would serve, in addition to the aforementioned, to strengthen the promotion of technology transfer through South-South cooperation as well as to enhance FAO’s capacity to assist member countries in preparing feasibility studies of bankable projects to increase national, bilateral and multilateral financing for agricultural and food security projects and programmes in developing countries. Urged the member countries of the donor community to contribute generously to the Trust Fund and to participate at the highest level of Heads of State and Government in the World Food Summit: five years later to be held in Rome from 5 to 9 November 2001. Took note of two important ongoing FAO programmes, namely the Special Programme for Food Security (SPFS), launched in 1994, and the new FAO Partnership Programme for Technical Cooperation among developing countries. In this regard, the Committee requested FAO to continue deploying efforts aimed at the full implementation of these programmes. Was informed of the South-South cooperation components in the operational modalities of both programmes and called for their widespread dissemination, as cost-effective mechanisms for the benefit of developing countries. Reiterated its recommendations regarding the following: •  In respect to fisheries, cooperative action among countries under the terms of paragraph 32 of the Caracas Programme of Action. •  In respect of augmentation of food production, cooperative action among countries under the terms of paragraph 29 of the Caracas Programme of Action. •  Establishment of temporary support mechanisms for local farmers, allowing them to adapt to the negative impact of the process of trade globalization. •  Recognition of the role played by women in the rural development of the developing countries.

Industrialization The Committee: Reaffirmed the continued urgency to promote industrialization as a dynamic instrument for rapid and sustained economic and social development, and as a key contributor to the eradication of poverty and the creation of productive employment in the developing countries. In this connection: •  Policy incentives should be devised with a view to encouraging technological upgrading and skill formation to enhance competitiveness of the small and medium scale enterprises. •  Small-scale enterprises and micro industries play a crucial role in the economies of developing countries, and because of their small size and limited financial resources, they are incapable of withstanding the intense competition in the environment of globalization. Therefore, developing countries should encourage formation of industrial districts and clusters with certain common facilities to enable these enterprises to acquire economies of scale and enhance their collective efficiency.

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•  Developing countries should support through appropriate policy measures the financial institutions in the public and private sectors for establishing venture capital funds to create knowledge-based industries. •  Developing countries should intensify South-South cooperation particularly in terms of promoting transfer of technology and industrial collaboration among themselves and thus strengthen their industrial capacities in order to meet the challenge of globalization. Called upon the international community, including the relevant organizations and bodies of the United Nations, and in particular UNIDO, to promote further South-South Cooperation in the field of industrialization with a view to making a proper contribution to the implementation of the Havana Programme of Action. Strongly supported the key role of UNIDO, as a provider of specialized technical cooperation services and as a global forum for supporting and promoting industrial development, in promoting sustainable industrial development in developing countries through its integrated programme approach and other activities. In this context, UNIDO is requested to: •  Provide technical assistance to developing countries to enable them to increase the competitiveness and collective efficiency of their small and medium scale industries. •  Formulate technical cooperation programmes geared at improving product quality, skill formation, and development of multi-purpose and multi-products industrial plants and productivity of SMEs. •  Devise appropriate programme activities to enhance South-South cooperation in various industrial sectors, particularly informatics and knowledge-based industries. •  Develop further its new initiatives on trade facilitation, technology transfer, environmental protection, and in the area of energy for sustainable development, which are in line with South-South cooperation priorities and would enable UNIDO to better use its comparative advantages. The donor community is called upon to provide adequate funding for UNIDO’s programmes. •  Actively participate in the follow-up of the decisions and recommendations of the Havana Summit held in April 2000 as well as the Havana Programme of Action with a view to promoting South-South industrial cooperation. •  Organize a seminar/workshop to identify strategies and to evolve an action plan for follow-up of Havana Summit and IFCC-X recommendations. The Committee also recommended that: •  Developed countries be urged to provide enhanced financial resources to multilateral organizations like UNIDO engaged in the task of building sustainable industrial capacities in developing countries. •  Given the existing inter-linkages of globalization and interdependence of all countries, the growing marginalization of developing countries in the world economy is a threat to the long-term peace and prosperity of international community. Developed countries should be, therefore, called upon to seriously promote transfer of technology and industrial collaborations with developing countries to fully integrate the latter in the global economy. •  Transnational Corporations (TNCs) operating in developing countries should be encouraged in accordance with national legislations to: a.  Pay more attention to protection of environment and issues like poverty eradication, integration of women, education, etc., in the host countries; b.  Establish operational linkages with local firms to build indigenous capacities and create employment.

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•  The effectiveness of G77 institutions like South Center, Chambers of Commerce, Global System of Trade Preferences, etc. should be enhanced to accelerate the pace of South-South cooperation with a view to achieving more tangible and perceptible results. •  Cognizant of the efforts developed by UNIDO for the African Industrialization, recommended the continuation and intensification of these efforts crucial to the development aspirations of the continent particularly involving regional and sub-regional cooperation. In this context particular attention should be paid to support the industrial needs of African counties with special consideration on the African LDCs.

Energy The Committee: Bearing in mind that energy is central to achieving the goals of sustainable development, and that one third of the world population, mostly living in developing countries, continue to lack access to energy. The committee affirmed the need for sustainable patterns of energy provision, distribution and consumption and to increase cooperation in this field, including South-South cooperation. Took note of the section on energy and sustainable development of the Report of the Ninth Session of the Commission on Sustainable Development, held in New York on 16-27 April 2001, and recommended the early implementation of actions identified in this report on the key issues of (a) accessibility of energy, (b) energy efficiency, (c) renewable energy, (d) advanced fossil fuel technology, (e) nuclear energy technologies, (f) rural energy, and (g) energy and transport; as well as on the overarching issues of (i) research and development, (ii) capacity-building, (iii) technology transfer, (iv) making markets work effectively for sustainable development, and (v)  multi-stakeholder participation and public participation. Likewise, it requested that due consideration should be given to the interests of developing countries when these issues are examined in the preparation of the Tenth Session of the Commission on Sustainable Development. In this context, the Committee noted that regional cooperation endeavors identified the Report may require sub-regional, regional, inter-regional and international support. Urged developing countries to explore joint projects and joint ventures the production, transportation and distribution of energy, it also urged developing countries to examine joint research and development, and exchange of information, in particular in the areas of renewable energy, advanced fossil fuel technology, and clean energy technologies.

Raw Materials and Commodities The following areas of collaboration and support in the field of commodities would be required in the context of South-South co-operation and international assistance. The Committee recommended: •  To intensify co-operation and international support for supporting diversification efforts of developing countries, including institutional and human capacities in the agricultural, industrial processing and marketing fields. In this regard, diversification strategies should seek to increase production for regional markets and for global exports both vertically by developing value added products within the traditional commodities, as well as horizontally in the multiplying range of commodities in non-traditional sectors. There are capacities and valuable experiences in developing countries, which can be harnessed to achieve broader object of commodity diversification. Strengthening of capacities of developing countries in developing niche products such as horticultural, meat, fish and organic products and handicrafts as well as cultural products should be supported;

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•  Support for strengthening and enhancing the productive capacities of developing countries through stimulating investment, human resources development, enhancing technological capacities and building their physical infrastructure including strengthening their research and development capacities; •  Encouraging private sector initiatives and supporting the establishment of partnership with foreign companies as, inter alia, a vehicle for transfer of production and marketing skills and technologies; •  Supporting efforts in building institutional, regulatory and technical capacities to access to and make use of modern risk management techniques and tools. In this connection, exchange of experiences and technical capacities between developing countries should be encouraged and supported; •  Assistance in developing institutional and human capacities for quality control and certification including adherence to international standards, guidelines and recommendations when applying sanitary and phytosanitary (SPS) measures and other technical standards including HACCP. •  Support the integration of developing countries in integrating their national economics and their production, supply and trading capacities as well as their joint ventures building joint services and infrastructure as well as capacities to support private sector initiatives including warehouse receipt systems. •  Support the activities of the Common Fund for Commodities by strengthening its Second Account for intensifying its support of developing countries in the above areas. •  Stressed that commodity price instability and volatility undermine prospects for steady economic growth in developing countries and need to be addressed. Therefore, the committee calls upon donor countries to provide international assistance to this end, including through financing and strengthening the Common Fund for Commodities. •  Recommended that a study be made on the possibility of promoting counter-trade arrangement for trade in commodities among the countries of the South having limited foreign currencies. •  Relevant international development institutions particularly the Common Fund for Commodities (CFC), FAO, UNIDO, UNDP, UNCTAD, the World Bank should collaborate closely and use their complementarities and synergies to encourage support South-South co-operation in the above and other relevant areas of commodity diversification and development. In the light of the recommendation contained in the Havana Programme of Action regarding the revitalization of the role of various G-77 Action Committees in several fields of cooperation as provided for in the Caracas Programme of Action, the Committee (IFCC-X) was informed of progress made by the Action Committee on Raw Materials (ACRM), since its establishment in 1989 including the arrangements by the Government of Nigeria to host the second Meeting of the ACRM during 2002. In this connection, the Committee (IFCC-X) commended the efforts deployed by Nigeria as host country of the Action Committee, and invited member countries of the G-77 to participate in the activities of this Action Committee.

Perez-Guerrero Trust Fund for ECDC/TCDC (PGTF) 1. The Chairman of the Committee of Experts of the Perez-Guerrero Trust Fund (PGTF), Dr.  Eduardo Praselj, introduced the subject and provided information on the operational and financial performance of PGTF during its fourteen years of operation (1986-2000), including its impact on cooperative activities among developing countries. The Chairman explained that this

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accumulated experience had proved that PGTF is a viable and useful mechanism for providing catalytic financial support to South-South cooperation. However, its scope was limited as a result of the modest size of its core capital (US$ 5 million) and elaborated on the need for expanding its resources, in line with the recommendation made in the South Summit. 2.  The Committee commended the work of PGTF and expressed its full support to the Fund’s activities. 3.  The Chairman informed on the options available for expanding PGTF resources, including contributions to its core capital and co-financing with other institutions. As a result of appeals for contributions made by the Chairman of the Group of 77 following a decision by the Annual Ministerial Meeting of the Group, PGTF had received 16 contributions from 13 member countries, namely Mauritius, Pakistan, Singapore (two separate contributions), the Islamic Republic of Iran, the Democratic People’s Republic of Korea (three separate contributions), Cyprus, Thailand, Malaysia, Algeria, India, the Philippines, China, and Egypt. Total contributions from these countries amount to US$30,000. He also informed that Venezuela had pledged US$1 million to PGTF. 4. The Committee agreed that PGTF was a useful financial mechanism for supporting South-South cooperation and called upon member countries for additional contributions. During the meeting of the Committee, the following four member countries pledged contributions to PGTF: South Africa, Tunisia, Nigeria (two separate contributions), and Tanzania. 5.  With regard to co-financing of projects, UNIDO indicated its support to PGTF. In this context, UNIDO announced that a joint project with the G-77 had been specially designed for co-financing G-77 activities through the PGTF, and that an initial allocation of funds had been made. Preliminary discussions are underway to this same end with other institutions.

Other Recommendations 1.  The IFCC-X guided by the support lent by the South Summit Declaration of G-77 held in Havana in April 2000 to the creation of the World Solidarity Fund, invites the United Nations Secretary-General to take appropriate measures for the establishment of the Fund as a mechanism contributing to the efforts of poverty eradication in developing countries. 2.  The Committee recalling the Declaration of the South Summit reiterated that it firmly rejects the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries, and reiterated the urgent need to eliminate them immediately. We emphasize that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. We, therefore, call on the international community neither to recognize these measures nor apply them. 3.  The meeting underlined the significant importance of the World Summit on Sustainable Development (WSSD) to be held in Johannesburg, South Africa in September 2002 for the review and appraisal of the progress achieved in the implementation of Agenda 21 and the consideration of further measures to promote sustainable development. It also recognized the need for developing countries to develop a common position and understanding to ensure their active and constructive participation in the summit and its preparatory processes. The meeting, therefore, recommended that the annual meeting of the Foreign Ministers of the Group of 77 to be held in New  York in September 2001 consider the modalities for convening a Ministerial Meeting of the Group of 77 prior to the summit for that purpose. The importance of South-South environmental and sustainable development initiatives was also underlined. The meeting invited UNCTAD, UNDESA, UNDP, UNEP, GEF, and the World Bank, among other institution, to continue to support South-South programmes and projects in this field and to make

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recommendations to WSSD and its preparatory process relating to cooperation among developing countries. 4.  The meeting emphasized the importance of the Programme of Action for the Least Developed Countries for the decade 2001-2010 held in Brussels in May 2001, and welcomed the General Assembly resolution calling upon the international community to support the implementation of the Programme of Action 5.  The countries of the South are increasingly involved with each other in innovative forms, specially on concrete project, at sub-regional, regional and interregional levels. In this regard, the Committee took note of, in particular the Agreed Conclusions of the South Summit on implementation of South-South projects. In view of the progress achieved by a number of sub-regional, regional cooperation in the South, the Committee recommended the following guidelines for effective implementation by countries while undertaking South-South projects, and also to assist countries within existing frameworks to achieve concrete outcome: •  Countries—in consulting among themselves—would decide which broad area, e.g. agriculture, industry, social development, a particular country would be interested to act as the ‘lead country’. •  If more than one country expresses interest to act as ‘lead country’, they can. However, in such a situation, the chair of the relevant sub-regional or regional framework would undertake consultation among those countries to ensure that countries streamline their collective leadership within the particular sector. This is to ensure that even under two countries in the lead, effective cooperation would follow. •  Lead country(/ies) will then identify specific projects, in consultation with other interested countries, will provide necessary projects briefs. Lead country proposing the project(s) will also specifically identify the implementation agency/institution/organization for specific project(s). A brief profile of the implementation entity, e.g. agency/institution/organization, should be also circulated to countries for consideration. •  Lead country(/ies) will also indicate under which (i)  broad sector and subsequently (ii) sub-sector a specific project will fall. •  Subsequently, profile of project(s) under a broad sector and its implementation entity(ies) will be circulated among all countries within the grouping, requesting them to indicate which specific project(s) they would be interested to participate in. •  As countries indicate their interest for specific projects, a compilation will be made. •  Lead country(ies) will then start coordinating with interested countries on implementation of specific projects. •  As countries make reasonable progress in implementation of a project on the basis of each others’ resources, capabilities, private sector, civil society, regional banks, multilateral actors, donor governments could be approached for long-term finance and other forms of support. 6.  The meeting welcomed the decision of the South Summit to establish the South/South Health Care Delivery Programme (SSHDP) to assist the Health Sector of needy members of the G-77. It also welcomes in particular the efforts of Cuba, Libya and Nigeria to provide funding and medical personnel for the Programme. It also welcomed the offers of South Africa to provide drugs, medical equipments and logistic support for the Programme. It appealed to other members of the G-77 who have the capacity to do so to contribute and support the Programme as appropriate. 7.  The meeting welcomed the action of the recipient countries who have indicated their requirement for medical personnel, medicines equipments ambulances etc. Noting that preparations for the programme have reached advanced stages the meeting recommended to Ad Hoc Working Group under the Chairmanship of the G-77 in New  York, that appropriate action for its fast

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tracking for immediate take off on the following:  completion of outstanding administrative arrangements; prompt consideration of proposals from the SSDHP, by WHO and UNICEF who were approached and had promised to provide logistic support, guidance data etc.; and indication of form of support promised by Algeria and Botswana. 8.  The meeting noted the laudable objectives of the programme and enjoined other members of the Group to support the initiative. 9.  The committee also recommended:  (1)  increased sharing of experiences of countries’—at sub-regional, and regional levels—in poverty eradication, education, health care, population, women and children—developed indigenously involving innovative local knowledge, skills and resources, including those involving civil society and other sectors; (2)  linking of innovative arrangements, including the centers of excellence, in the South in all the areas of social development for greater utilization of Southern knowledge and experience; (3)  greater utilization of existing arrangements at various levels and identifying specific activities to address emerging challenges in the South, including those in public health; and (4) compilation and dissemination of updated information and expertise within the South.

Tehran Consensus on South-South Cooperation We, the participants in the Tenth Meeting of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries, held in Tehran, Islamic Republic of Iran, from 18 to 22 August 2001, which marks the twentieth anniversary of the adoption of the Caracas Programme of Action, in reaffirming the relevance and the validity of the various declarations and programmes of action subsequently adopted by the Group of 77 and in reiterating our firm commitment to the principles and objectives enshrined in the Havana Declaration and Programme of Action, have resolved to move forcefully and urgently forward on the following five objectives of common concern to the developing world in the context of South-South cooperation, and to that effect, call upon all partners in the international development effort to extend genuine support to achieving those objectives.

1.  Consolidating South-South Platform While we note the increasing need and potential for South-South cooperation and significant progress in a number of areas, we are fully cognizant of problems, gaps and challenges that exist. We also recognize the enormous potentialities, both unrealized and untapped, in many domains that need to be harnessed. The gap between the set objectives and agreed actions and the actual implementation should be effectively bridged. The situation has evolved over the last two decades, and new challenges, issues and conditions have emerged. A realistic, objective assessment of the Group’s plans and programmes of action, and the status of their implementation, should be undertaken with a view to consolidating them into an updated platform to be submitted for consideration and action by the High-level Conference on South-South Cooperation, to be held in 2003 in accordance with the Havana Summit decision. To this end, all necessary measures should be taken to provide the member States of the Group of 77 with a strategic overview of the new global environment and its interlinkages as well as of changes in developing countries that are of relevance to South-South cooperation today, including the new areas where such cooperation can be fruitfully undertaken.

2.  Building Stronger South Institutions at the Global Level The coordination of policy and joint negotiating positions on major issues on the international agenda are essential, and require adequate intellectual and technical support, internal coordination and a commensurate preparatory process. The Group of 77, drawing on its recent successes in major international processes, should undertake to pursue the legitimate concerns and demands of

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the South equally vigorously at the Doha, Monterrey and Johannesburg Conferences, all of which will address vital issues for all countries and peoples of the South. The Group should continue to consolidate its new sense of assertiveness as a major credible and potent negotiating force. South-South cooperation at the global level requires adequate and structured institutional support. Immediate steps should be taken to expand and strengthen the Secretariat of the Group of 77 in New York in order to provide greater support to the activities of the Group. The process of institution building should be pursued in earnest as one of the principal building blocs of more effective South-South cooperation in the global arena. First and foremost, this requires the South to mobilize adequate financial and skilled human resources to support its own institutions.

3.  Bridging the Knowledge and Information Gap Easily accessible empirical data and a global overview of South-South cooperation are lacking. This information and knowledge gap needs to be closed urgently, which calls, as a matter of priority, for the creation of a collective capacity, inter alia, through the launching of a ‘South Report’ on the state of South-South cooperation as the basic reference and major policy and analytical tool for South-South cooperation.

4.  Building Broad-based Partnerships South-South cooperation is a common endeavour of peoples and countries of the South, based on their common objectives and solidarity. It should be broadly based, involving not only Governments but also the private sector, academic institutions, civil society organizations, various innovative arrangements, including those in the domain of arts and culture, indeed the common citizens and the people at large, as well as South institutions, groupings and other organizations that work within and between developing countries. New forms and partnerships for assuring such mobilization and broad participation should be encouraged and practiced, drawing as much as possible on new information and communication technologies.

5.  Mobilizing Global Support for South-South Cooperation South-South cooperation has suffered from benign neglect by the international community. The overall policy has been fragmented, with limited financial resources allocated in support of such cooperation. For an effective, meaningful support, the international community, including the United Nations system and other major international institutions as well as the donor community, is urged to reexamine their approach and policy, and provide vigorous catalytic support, including requisite financial resources to all forms of South-South cooperation. In this context, the role of the United Nations Development Programme in supporting South-South cooperation and in advocating a more inclusive globalization should be reaffirmed. Active support for various institutions of the South, including research institutions, is equally important towards expanding the Group’s institutional and negotiating capacity. Public opinion needs to be more aware of the purposes and value of South-South cooperation. It is proposed that an International Decade on South-South Cooperation and a United Nations day for South-South Cooperation should be launched in order to contribute to increased awareness and to generate political dynamism and visibility that accompany ‘other decades’ in the international arena.

Message of Appreciation to the Host Country This meeting (IFCC-X), taking place in this very auspicious year of ‘Dialogue among Civilizations’, initiated by the Islamic Republic of Iran, has reflected both the letter and spirit for mutually reinforcing the South-South cooperation and relations with our developed partners.

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11.  Eleventh Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-XI), Havana, Cuba, 21–23 March 2005 a. Final Report Recommendations on South-South Cooperation of the Working Group–I Having considered the progress made in the implementation of the provisions of Havana Programme of Action that relates to South-South cooperation and those of the Marrakech Framework for the implementation of South-South cooperation: -   Reaffirms the Havana Programme of Action adopted at the First South Summit, as basis for the strengthening of South-South cooperation and in this regard, stresses the need to continue to implement all the recommendations contained in Chapter IV of the Havana Programme of Action; -   Reaffirms, in this context, the recommendations of IFCC-X and Tehran Consensus; -   Reaffirms also the Marrakech Framework of Implementation adopted at the High-level Conference of South-South cooperation; -   Stresses the importance of South-South cooperation as a continuing process vital to confront the challenges faced by the South, and as a valuable contribution to development, while recognizing this cooperation as complementary to and not a substitute for North-South cooperation; -  Recognizes the need to further explore and develop the considerable potentials for South-South cooperation at the national, regional and international levels, as well as the expansion and replication, when appropriate, of existing successful experiences and models of cooperation among countries of the South, including triangular arrangements aimed at promoting actions of cooperation in this respect; -   Reiterates the importance of strengthening the Special Unit for South-South cooperation in order to be more responsive to the needs of developing countries; -  Welcomes with appreciation the role-played by individual and groups of countries in making available funds and other types of support to enhance South-South cooperation, in particular social and economic development of developing countries; -   Concurs that while some achievements have been reached in the field of South-South cooperation, much remains to be done: 1.  Calls for the publication of an annual report on South-South Cooperation by the Special Unit for South-South Cooperation in consultation with the Chairman of the G-77. 2.  Invites the Chairman of the G-77 in collaboration with UNCTAD and other relevant institutions to submit a study on new and dynamic sectors including services and creative industries. 3.  Invites all the parties involved to conclude the Third Round of GSTP by 2006. 4.  Encourages the elaboration by the Member States of South-South arrangements/frameworks for sectoral cooperation. 5.  Urges Member States to contribute to the expansion of PGTF and UN Trust Fund for South-South Cooperation. 6.  Calls for the convening of a South-South Forum on public and private partnership.

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7.  Reiterates the need to further enhance and deepen the coordination between the G-77 and the Non-Aligned Movement, through the JCC, with a view to strengthen and develop South-South cooperation. 8.  Recommends for consideration in the preparation of the Second South Summit the issue of the G-77 Chamber of Commerce and Industry, including its mandate, performance and operating modalities, as well as its subsidiary bodies and invites the Chairman of the G-77 to submit relevant available documentation. 9.  Recommends for consideration the outcome document of the Doha Forum on Trade and Investment in the preparatory process of the Second South Summit. 10.  Reiterates the need to strengthen the South Centre as the research centre and think tank of the countries of the South, and in this context recommends considerations of ways and means including those related to financial aspects aimed at the achievement of this objective. 11. Calls for the implementation of relevant recommendations related to South-South cooperation contained in the report of the World Commission on the Social Dimension of Globalisation entitled ‘A Fair Globalisation: Creating Opportunities for All’. 12.  Calls for the strengthening of the substantive capacity of the G-77 Secretariat (Office of the Chairman) through the payment by members of the Group of 77 on a regular basis and in a timely manner of their financial contributions including accumulated arrears in line with paragraph VI-2 of the Havana Programme of Action. 13. Recognizes the inputs and assistance of UNCTAD to G77 and encourages its Secretariat to continue its substantive support to G77. 14. Recognises the assistance provided by the UNDP Special Unit for South-South Cooperation for the holding of the IFCC-XI. 15.  Supports the enhancement of the United Nations Convention to Combat Desertification as a development tool to address poverty, desertification and drought issues. 16.  Notes the deliberations of the 38th meeting of the Chairmen/Coordinators of the chapters of the G-77 on the need to improve the coherence and harmony of the overall policy adopted by the Ministers of Finance and Ministers of Foreign Affairs regarding monetary and financial issues. 17.  Establishes, in line with the Marrakech decision, an open-ended Intergovernmental Study Group to hold a workshop in New York, on the Trade and Development Bank in May 2005, and to report to the Second South Summit in June 2005, in Doha, Qatar. 18.  Recommends the implementation of the decision of the First South Summit on the need for the G-77 to strengthen cooperation in monetary and financial fields. 19.  Reaffirms the relevance of the Action Committee on Raw Materials (ACRM), which was established at the sixth meeting of the Intergovernmental Follow-Up Coordination Committee on Economic Cooperation among Developing Countries held in Havana, Cuba from 7-12 Sept. 1987 and in this regard calls on member countries to support and participate in the activities of the ACRM. Further calls on member countries to take steps to strengthen the existing secretariat of the ACRM in Abuja, Nigeria through the provision of adequate financial and material resources. Also, further calls for the establishment of the Regional Raw Materials Information System for Africa (RMIS). 20.  Welcomes the implementation of the South-South Healthcare Delivery Programme (SSHDP) with its headquarters in Abuja, Nigeria, which has produced positive results in recipient countries and calls for more cooperation and expansion of the donor as well as recipient base of the programme. Further calls for the strengthening of the secretariat of the SSHDP to enhance its effectiveness and qualitative service delivery.

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21.  Recommends for the consideration of the preparatory process of the Second South Summit the following issues: expansion of arrangements such as lines of credit to enhance South-South Trade as well as technical cooperation arrangements based on the practices of developing countries; greater coordination amongst the South institutions including through network linkages. 22.  Emphasises the need to strengthen unity and solidarity among developing countries and calls for an urgent implementation of cooperation arrangements. 23.  Stresses the need in line with the Havana Programme of Action to intensify bilateral, sub-regional and inter-regional cooperation among developing countries in all fields. 24.  Requests the Chairman of the G-77 assisted by the Member States, to provide background papers on the afore-mentioned proposals as appropriate for consideration by the Group.

Eleventh Meeting of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries (IFCC-XI), Havana, Cuba, 21-23 March 2005 Recommendations by Working Group II on South-South Projects The Working Group II considered recommendations by IFCC-X meeting in Tehran regarding concrete South-South projects and re-affirmed its guidelines for effective implementation by countries while undertaking South-South projects. The following countries submitted their projects in writing to the Working Group: Cuba 1)  Strengthening the Regional Capacity for Disasters Reduction through the integration of Risk Management Approach. 2)  Government Proposal for the Fight against HIV/AIDS. 3)  Support for Thematic and Territorial Networks for Human Development. 4)  Program of Literacy ‘Yo si puedo’ ‘Yes I can’. 5)  Regional Training Centre on Sustainable Land Management. 6)  Control of Land Degradation and Desertification processes in the insular Caribbean. 7)  Regional Training Center of Biosafety. 8)  Training Network for Trainers on Distant Education. 9)  South-South Cooperation for Contributing to Sustainable Development of Rice Production in Small-Scale Extension Productive Systems. 10)  Contribution to the Food Security through the Development of the Urban Agriculture. 11)  Restoration of Agro biodiversity Eroded by Situation of Natural Disasters. 12)  Information and Communication Technologies (ICTs) Observatory. 13) Community Institution to the Service to the Teaching of the Computer Science and Communications. (TICs). 14)  Strengthening of the Regional Capacity from National Institute for Housing In the Caribbean at its Facing to Natural Disasters. Indonesia 1)  Training on Development of Small and Medium Enterprises. 2)  Training on Microfinance. 3)  Training on Application of Information for Communication Technology.

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The Group heard a presentation by Indonesia on these three project proposals for implementation of which further cooperation from other countries was sought. Uruguay 1)  An Uruguayan Experts Directory in Agricultural and livestock related activities. China 1)  To Identify and Contribute towards the Removal of Barriers to Small Hydropower Development in Sub-Saharan Africa. 2)  Promoting Dairy Processing of Southern Africa through High Value-added Dairy Product Programme. 3)  Asia-Pacific Regional Cooperation on Edible Mushroom Technology Belize 1)  Literacy Program 2)  Child Protection 3)  Water Resources Venezuela 1)  Food Security The delegation of El Salvador expressed the intention of its country to submit one draft project proposal, namely on National Police Training and Strategy Regulatory Framework and Transit Police. Jamaica also expressed its willingness to submit project outlines on Food Processing/Sugar Technology, and Different Sources of Energy, such as Oil and Gas Exploration, BioMass, Hydro, and Solar. India briefed the meeting on its launching of several new initiatives such as:  The Techno-Economic Approach for Africa-India Movement (TEAM-9); The Trilateral Commission of India, Brazil, and South Africa (IBSA); The Trust Fund within the UNDP for Poverty Alleviation, Indian Technical and Economic Cooperation, and Connectivity Mission in Africa. All these initiatives are open for the participants from all developing countries. The working group also had a presentation by the UN resident coordinator in Cuba on the initiative for Innovative Integrated Triangular Partnership Approach to Community Development known as the ART Initiative. The working group also heard a progress report from Nigeria on the implementation of the project on Action Committee on Raw Materials, which was established at the 6th meeting of the IFCC as well as the implementation of the South-South Healthcare Delivery Program, with its headquarters in Abuja, Nigeria. The Chairman of the G-77 was requested to arrange suitable dates for the second meeting of the Action Committee on Raw Materials to be convened as soon as possible. A request was also made that the establishment of the Regional Raw Material Information System for Africa would be included as one of the priority projects to be considered by the Second South Summit. These would require financial support as well as wider participation by developing countries. In light of discussion in the working group the meeting decided to act in the following manner: 1.  A compendium of all projects submitted to the IFCC-XI will be prepared and circulated by the Chairman of the G77 in New York, to all member states of the Group of 77. In this context delegations who have submitted project proposals are invited to update, where

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necessary, their projects by providing further details for their proper consideration in the working group. 2.  Member States who have not submitted projects are invited to submit their project proposals as soon as possible and before the start of the Second South Summit. 3.  The working group on South-South projects will re-convene in New York to review these projects. 4.  All member states are invited to submit their views and interest to the proposed specific projects. 5.  The working group at the level of experts in New York will prepare its own recommendations concerning these projects to the open ended working group in preparation of the South Summit. 6.  UN institutions and other relevant sub-regional and regional organizations which will be involved in the implementation process of South-South projects will be invited to attend the meeting of the Expert Group in New York.

Summary of the Interactive Dialogue on South-South Cooperation Madam Chairman, Distinguished Ministers and delegates, I have the honor to present this report on behalf of Minister K.D. Knight who had to depart earlier this afternoon for urgent business in Jamaica. 1.  The interactive dialogue was held in the plenary session on item 3 of the Agenda of IFCC XI entitled… ‘Means and Ways of Strengthening South-South Cooperation,’ Heads of Delegations participated in the interactive dialogue in a, frank and wide ranging debate that touched on almost every aspect of South-South cooperation. They recalled the long history and struggle and the contribution developing countries to promote the South-South cooperation as an important dimension in their development strategy. 2.  All delegations agreed that the Havana Programme of Action and the Declaration adopted by the First South Summit in 2000 held here in Havana provided them with a solid foundation, with a vision, roadmap, and a strategy for promoting and strengthening South-South cooperation. 3.  They reiterated the necessity for South-South cooperation in the face of the harsh international economic realities of today. Many delegations felt that the opportunity was right for imparting great dynamism and political will for South-South cooperation, as the south elaborates a new Development Agenda. 4.  Several delegations pointed out that while South-South cooperation was a responsibility of the countries of the South, triangular cooperation was beneficial and that South-South cooperation was complementary and not a substitute for North-South cooperation. Some delegations were less than optimistic on the future of South-South cooperation in the light of an inclement international economic environment and the absence of an effective development agenda in the multilateral fora. Other delegations expressed a more optimistic view of the future, pointing out, that the share of developing countries in global trade and investment has been rising. However, they also stressed that success in pursuing cooperation would depend largely on the unity of the Group of 77 and focusing on concrete action for the implementation of outstanding commitments. 5.  The debate also highlighted the changing perceptions in pursuing South-South cooperation. While previous logic of South-South cooperation was based largely on the need to widen markets on regional and sub-regional basis, the current emphasis was focused on enhancing the productive capacity of developing and their integration in the global economy. As a consequence the development agenda for South-South cooperation should be widened to include, in addition to

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trade and investment, the issues ‘inter alia’ of debt, transfer of technology, health, knowledge sharing, commodity management and food security, affordable medicines, poverty eradication, education and literacy, human capacity building and disaster mitigation. 6.  Delegations who intervened on the area of trade and investment noted the progress in trade among developing countries, and called for the strengthening of the GSTP and greater participation in the launching of the third round. They noted the significant increase in trade amongst developing countries in the past five years, with the changing quality of trade from raw materials to manufactures and the increase in volume and value. This trend was seen as encouraging and a source of optimism. They also noted that the increase in South-South investment by leading developing countries in other regions creating favorable conditions to market access. 7.  They also warned against complacency in the face of a global system that lacks fairness and which is susceptible to political pressures and the imposition of unilateral extraterritorial coercive economic measures. 8.  The decrease in ODA was noted and while emphasizing that South-South cooperation was not a substitute for North-South cooperation, it was appreciated that a number of countries have created funds for South-South cooperation and some major developing countries have cancelled some debts of highly indebted countries in Africa which was a step in the right direction. 9.  Delegations also noted the existence of appropriate and adaptable technology in some developing countries that are amenable to transfer and that South-South collaboration between scientists resulted in major break through. However some speakers expressed disappointment that while platforms to share knowledge existed, developing countries did not necessary take advantage of facilities for that purpose. 10.  South-South cooperation in the area of health was given high prominence and concern was expressed particularly with regard to the devastating impact of HIV AIDS. A number of countries volunteered to provide assistance in this regard, through provision of medical personal and affordable drugs. Delegations called for collaboration among pharmaceutical companies of developing countries, to fight the scourge of disease, and provide affordable medicines. 11.  The issue of the vulnerability of developing counties particularly island countries to natural disasters such as hurricanes, earthquakes and storm surge, was a concern that deserved collective response. They called for cooperative action for early warning systems, awareness and mitigation measures to be adopted. 12. Several delegations and international organizations made a comparison in the situation between IFCC X and IFCC XI, and felt that a good number of South-South activities have performed well, with the support of the Office of the Chairman of the G77, relevant UN institutions and member states that some centers of excellence in some regions had contributed to a positive trend in South-South cooperation. It was noted also that while the African region overall had been the least prosperous region in the South, it had made progress in efforts toward integration among sub-regional economic communities and that regional economic frameworks such as NEPAD had emerged and provided potential opportunities for cooperation. 13.  In the debate many proposals were made for the promotion of South-South cooperation, through a more focused action oriented agenda for development, combined with systematic follow-up mechanisms and multi-stake holder partnerships. The role of UN institutions and organizations of the South was obviously appreciated; particular mention was made of the contribution of the South Centre, the UNDP Special Unit for South-South Cooperation and the work of UNCTAD. It was urged that the G77 should take an action interest in the appointment of the leadership to international bodies of special importance to developing countries. 14.  In looking ahead delegations made a number of proposals for concrete action and initiatives that would strengthen South-South cooperation, ranging from consolidation and implementation

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of existing programs and plans of action to formulation of imaginative initiatives and suggestions for funding, for human resource development, and for collaboration and coordination among institutions of the South and the strengthening of institutional capacity. Such initiatives were presented to the two working groups that were established at the opening of the meeting of the IFCC XI. 15.  All delegations who spoke referred to the forthcoming Second Summit of the Group of 77 in Doha, and the importance that Summit will play in the future of the Group of 77 and developing countries. They welcomed with high expectations the generous offer of Qatar to host the Second Summit, emphasizing that the Summit will be a unique opportunity also to prepare the Group for the Sept. 2005 UN Summit and that the Doha Summit would be able to set out the position of developing counties on development objectives, including the measures for the elimination of systematic inequities and for the elaboration of a set of ‘quick win’ actions, for achievements of MDGs. 16.  The institutional arrangements for South-South cooperation received major attention in the statements made by delegations. The strengthening of the institutions of the South, the networking of these institutions, and the capacity for exchange of information and experience and best practices was deemed as a vital component of South-South cooperation. Delegations also repeatedly emphasized the necessity to strengthen and support the Office of the Chairman of the G77 to enable it to fulfill its mandate, including monitoring and coordinating the process of implementation of South-South cooperation and called for fulfillment of the financial obligations as decided to by the Heads of States at the first Summit in 2000. Finally all delegations expressed their appreciation and gratitude to the people and Government and heroic people of Cuba for having generously hosted IFCC XI and the excellent facilities made available. Expressions of appreciation were also made to the delegation of Jamaica for its leadership of the Group of 77.

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12.  Twelfth Session of the Intergovernmental Follow-up and Coordination Committee on Economic Cooperation among Developing Countries, Yamoussoukro, Côte d’Ivoire, 10–13 June 2008 a.  Yamoussoukro Consensus on South-South Cooperation 1.  South-South cooperation is a common endeavor of peoples and countries of the South, based on their common objectives and solidarity. It is vital to the development efforts of our countries and requires support and resources from the North. It was also stated that South-South cooperation cannot replace North-South cooperation, and should not replace North-South cooperation. The North has an obligation, both in its own national interests, and in the interest of global harmony, equity, and development, to fulfill its commitments through North-South cooperation. In this context, the current international architecture for development cooperation needs to be reformulated in order to respond to the new realities and opportunities for development including triangular cooperation. 2.  Given the increasing prominence that South-South cooperation and triangular cooperation will play in international relations, it is critical for us to ensure that there is clarity in the conceptual framework underlining South-South cooperation. In this regard, the essential elements of this conceptual framework should include the following: •  South-South cooperation and its agenda must be driven by the countries of the South; •  South-South cooperation must not be seen as a replacement for North-South cooperation. Strengthening South-South cooperation must not be a measure of coping with the receding interest of the developed world in assisting developing countries; •  Cooperation between countries of the South must not be analyzed and evaluated using the same standards as those used for North-South relations; •  Financial contributions from other developing countries should not be seen as Official Development Assistance from these countries to other countries of the South. These are merely expressions of solidarity and cooperation borne out of shared experiences and sympathies. 3.  South-South cooperation is a development agenda based on premises, conditions and objectives that are specific to the historic and political context of developing countries and to their needs and expectations. South-South cooperation deserves its own separate and independent promotion. Therefore, it is up to the developing countries to promote and build on South-South cooperation at the bilateral, sub-regional and interregional levels including triangular cooperation with the support of the UN system particularly the Special Unit for South-South cooperation which requires further strengthening in order to enable it to fulfill its mandate. 4.  As a priority South-South cooperation must be pursued as an expression of South-South solidarity and a strategy for economic independence and self-reliance of the South. In this context, the conference welcomed the progress made in the implementation of various projects and initiatives by Member States in various fields of South-South cooperation and invited the Chair of the Group of 77 to establish a mechanism for monitoring the implementation of South-South cooperation projects presented in Annex I of the Doha Plan of Action as well as other projects and initiatives on South-South cooperation undertaken by Member States, including the creation of a database system. 5.  There is a need to maximize the potentialities and complementarities of the South as well as other development opportunities among developing countries. Today, there is a need for the

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South to address in a dynamic way the economic problems facing the developing countries including the current global food crisis. In this context, the conference welcomed the initiative by Côte d’Ivoire to establish a financial mechanism for stabilization of food prices as well as a South fund for investments in Africa. An Expert Group Meeting will be convened in the nearest future in order to examine both initiatives and to formulate appropriate follow-up action. 6.  In preparation for the forthcoming High-level UN conference on South-South cooperation to be held in 2009 in accordance with General Assembly resolution 62/209, it was recommended that the Conference should be held at the highest possible level, including the participation of Heads of States and Governments. The Conference should be action-oriented with an outcome resulting in a comprehensive plan of action and a declaration. An Advisory Group will be set up by the Chair of the G-77 in order to reflect further on the objectives and the expectations of the Conference. 7.  Finally, the Conference agreed to launch the South Fund for Development and Humanitarian Assistance (document G-77/IFCC-XII/7) and welcomed the Development Platform for the South (G-77/IFCC-XII/6) as presented by the Chairman of the Group of 77.

CHAPTER VIII GROUP OF 77 SOUTH SUMMITS

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1.  Group of 77 First South Summit, Havana, Cuba, 10–14 April 2000 a.  The Havana Declaration 1.  We, the Heads of State and Government of the member countries of the Group of 77 and China, fully convinced of the imperative need to act in close unity for the primary purpose of working for a peaceful and prosperous world, have gathered here in Havana, for the first-ever South Summit, from 12 to 14 April 2000. 2.  We remain fully committed to the spirit of the Group of 77 and China, which has helped our countries since the inception of the Group in the early 1960s to pursue a common and constructive course of action for the protection and promotion of our collective interests and genuine international cooperation for development. At this historic event, we reaffirm our commitment to the principles and objectives that have guided the Group from the start. We also rededicate ourselves to strengthening the unity and solidarity of the Group in pursuit of its declared objectives and to reinforcing the role it is called-upon to play in international economic relations. 3.  We are fully convinced that it is indeed imperative to gather here at the start of the new millennium, a critical juncture in contemporary human history, to reflect on the rapidly changing world economic situation and to discuss the emerging challenges facing the South in the economic and social spheres and seek a solution to them. We have also been brought together fully convinced that at the dawn of the 21st century, we need to act decisively to map out a better future for our countries and peoples and to work towards the establishment of an international economic system which will be just and democratic. 4.  We reaffirm that in our endeavours we are guided by all the principles and purposes of the United Nations Charter and by full respect for the principles of international law. To this end we uphold the principles of sovereignty and sovereign equality of States, territorial integrity and non intervention in the internal affairs of any State; take effective measures for the suppression of acts of aggression or other breaches of peace and encourage the settlement of international disputes by peaceful means in such a manner that international peace and security, and justice, are not endangered; refrain in international relations from the threat or use of force against the territorial integrity or political independence of any State or in any other manner inconsistent with the purposes of the United Nations; develop friendly relations based on respect for the principle of equal rights and self determination of peoples; achieve international cooperation in solving international problems of an economic, social, cultural or humanitarian character, and in promoting and encouraging respect for human rights and fundamental freedoms for all without distinction as to race, sex, language or religion. 5.  We emphasize that the process of globalization and interdependence must not be used to weaken or re-interpret the above-mentioned principles, which continue to be the foundation for friendly and peaceful relations among States and for the solution of disputes and conflicts by peaceful means. Furthermore, we stress that those principles inspire us to be fully committed to creating a more just and equitable international economic system that offers security for all people and growing opportunities to raise their standard of living. 6.  We are committed to a global system based on the rule of law, democracy in decision-making and full respect for the principles of international law and the Charter of the United Nations. The new global system must reflect these principles.

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7. We emphasize that development is the best contribution to peace, and that both are built together. Development is a continuing process, without arbitrary limits, through which we work for the prosperity and well being of our peoples. Our highest priority is to overcome underdevelopment, which implies the eradication of hunger, illiteracy, disease and poverty. Although this is primarily our responsibility, we urge the international community to adopt urgent and resolute actions, with a comprehensive and multidimensional approach, to assist in overcoming these scourges, and to establish international economic relations based on justice and equity. Development for the well being of our peoples will always remain the focus of action of the Group of 77, and in this respect we rededicate ourselves to that goal. We recognize the right of developing countries, in exercise of their sovereignty and without any interference in their internal affairs, to choose the path of development in accordance with their national priorities and objectives. We are, however, deeply concerned that international cooperation for development has been downplayed on the agenda of the international community, including the United Nations system. In view of our declared goal, we therefore call on the international community at the dawn of the new millennium to give priority to the development agenda of developing countries and adopt urgent and resolute actions, which will help them to overcome the obstacles to their development objectives. 8.  In this context, and noting the interdependence of nations and the varying levels of human development worldwide, we stress the need for a new global human order aimed at reversing the growing disparities between rich and poor, both among and within countries, through the promotion of growth with equity, the eradication of poverty, the expansion of productive employment and the promotion of gender equality and social integration. We therefore, pledge to work together to confront these challenges for the benefits of all our people. 9.  We note that in recent decades, external factors have constrained the realization of the economic potential of the South. This has adversely affected external trade and the flow of foreign direct investments (FDI) and other forms of investments. It is thus, imperative to promote a North-South dialogue based on a spirit of partnership, mutual benefit and genuine interdependence in order to expedite the removal of these constraints. 10.  We are deeply convinced of the need to create a new spirit of international cooperation based on the principle of achieving shared benefits, but also based on common but differentiated responsibilities, between the developing and industrialized countries. We concur that in order to do this, it is imperative to develop collective and peaceful solutions for the global problems affecting the world today, and this demands a search for concrete mechanisms that will guarantee full and effective participation by the South in international decision-making, on an equal basis. In this regard, the international machinery through which global norms are developed and actions taken must therefore ensure that the countries of the South can participate on an equal footing in decisions which affect them most of all. In particular, the international economic governance institutions must promote broad based decision-making, which is essential if we are to have a more equitable global political economy. In the context of interdependence we underline the need for expeditions measures to make the existing mechanisms more transparent, inclusive, participatory, interactive and broad based. Similarly at the national level, we also note that the efforts to promote development require a true partnership that is more inclusive and participatory and which involves all stakeholders, including the private sector and NGOs. 11.  We note with concern that the countries of the South have not been able to share in the benefits of globalization on an equal footing with the developed countries and have been excluded from the benefits of this process. Asymmetries and imbalances have intensified in international economic relations, particularly with regard to international cooperation, even further widening the gap between the developing countries and the industrialized countries. We are also concerned that, in the context of widening North-South gap, the social and economic conditions of the Least

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Developed Countries (LDCs) have been deteriorating. Furthermore, the income gap within countries remains wide; social exclusion and inequalities are widespread; and the number of people living in poverty has increased. Urgent measures should be taken to address the needs of the large majorities of the population, in particular women and children, who are forced to live in extreme poverty. If this is not done, globalization will provide no lasting solutions to the essential problems of developing countries. For most of us, agriculture remains the mainstay of our economies, and the majority of our population still lives in rural areas; globalization has passed them by, but must address their needs. 12.  We are concerned by the serious financial problems faced by many of our countries, with the systemic aspect of financial instability, the problems associated with excessive volatility in short-term capital flows, and the absence of an appropriate mechanism to regulate and monitor such flows, as well as hedge funds, and highly leveraged financial institutions. This situation urgently requires a fundamental reform of the international financial architecture, making it more democratic, more transparent and better attuned to solving the problems of development. It also requires the establishment of a clear programme that goes beyond the mere prevention of crises and includes actions addressing the interrelated problems of finance, trade, technology and development at the international level. The return to apparent normalcy of capital markets after the last crises should not lull us into complacency. 13.  Even developing countries with limited or no financial markets suffer badly from financial volatility and contagion through lower commodity prices brought about by declining commodity demand, cross-instability in financial and commodity markets, and the postponement of investment, which seriously weaken their overall economic situation and growth potential. Although financial contagion in these countries does not have systemic consequences, their economies are severely affected, and we therefore call on the multilateral financial institutions to take appropriate and timely supportive action to assist them. 14.  As the focal point within the United Nations for the integrated treatment of trade and development and the interrelated issues in the areas of finance, technology, investment and sustainable development, UNCTAD should continue to examine these issues and to build a consensus for the reformulation of policies and options on globalization from a development perspective. We strongly reaffirm our commitment to the mandate given to UNCTAD at Bangkok to contribute to the ongoing process of reforms of the international financial institutions. 15.  We recognize the need for our countries to continue with their efforts towards economic reforms to enhance sustained economic growth and sustainable development. We also urge the developed countries to take into account the possible negative impact of their domestic economic, monetary and fiscal policies on developing countries and to apply measures that are sensitive to the needs and interests of the South. 16.  The world has become more interdependent than ever before. The persistence of endemic poverty and deprivation in the South constitutes a potential threat to the security and prosperity of the world. In this context we welcome the initiative launched for the creation of the World Solidarity Fund and encourage efforts by Member States for its establishment. We underline the importance of this Fund in contributing to the efforts in the eradication of poverty. 17.  We advocate the restoration of confidence in the multilateral trading system, which should contribute to the economic growth and development of the countries of the South. We insist on the need for the developed countries to fulfil their commitments fully and immediately to implement the provisions for special and differential treatment for the products and services exported by the developing countries, and for the strengthening of the system of trade preferences, which should also address the needs of LDCs and the specificities of a number of small developing countries, while taking into consideration their problems of vulnerability and the risk of marginalization in the global economy. We urge that priority should be given to the liberalization of

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those service sectors where developing countries have the comparative advantage. In this respect, the key issue of the free movement of natural persons should be adequately addressed. 18.  We note with concern that the liberalization of international trade has not provided benefits for all developing countries. There is a need to restore confidence in the multilateral trading system through full participation of developing countries, full and faithful implementation of the Uruguay Round Agreements in their true spirit, and effective attention to the implementation concerns of developing countries. We stress the principle of universal membership of the WTO and call for acceleration of the accession process without political conditionalities. We urge all WTO members to refrain from placing excessive demands on developing countries seeking accession to WTO. We recognize that there is a need for consultations among developing countries to promote effective participation in the WTO. 19.  We welcome the invitation extended by the State of Qatar to host the Fourth Ministerial Conference of the WTO, and we call for an effective participation in this conference so as to achieve the goals and promote the interests of the countries of the South. 20.  We underline the urgent need to redress the imbalances in the present WTO Agreements, and in particular, with regard to the right of developing countries to promote their exports, which have been curtailed by the abuse of such protectionist measures as anti-dumping actions and countervailing duties, as well as tariff peaks and escalation. Meaningful and expedited liberalization of the textiles sector, which is of particular interest to developing countries, is another important market access issue, which should be addressed by the multilateral trading system as a matter of priority. We also call for the mandated negotiations on agriculture in accordance with the provisions of article 20 of the Agreement on Agriculture. In agriculture the objectives should be to incorporate the sector within normal WTO rules. We also call for the full and prompt implementation of the WTO Marrakech decision on measures related to the possible negative effects of the reform programme on Least Developed Countries (LDCs) and net food importing developing countries. The WTO Agreements should be implemented taking into consideration the need to extend the implementation period of particular Agreements that pose problems to developing countries. The review of Trade-Related Aspect of Intellectual Property Rights Agreement (TRIPS) as mandated in articles 27 and 71 should make them more responsive to the needs of the South and to ensure access of developing countries to knowledge and technology on preferential terms. We will work towards harmonizing the TRIPS Agreement with the provisions of the sustainable use and conservation of biodiversity in the Convention on Biological Diversity. 21.  We also call upon developed countries fully to implement special and differential treatment (SDT) for developing countries, to strengthen the system of preferences and to give the products and services of special export interest to developing countries free and fair access to their markets. In this connection, we urge all WTO members to grant the request of the European Union and the ACP Group for a waiver for the provisions of article 1, paragraph 1, of the General Agreement on Tariffs and Trade (GATT). We call upon the developed partners also to recognize the need to formulate appropriate measures to address the concerns of other eligible countries through strengthening the Generalized System of Preferences (GSP). Future multilateral trade negotiations should be based on a positive agenda and should take full consideration of the development dimension of trade and of the specific needs and concerns of developing countries. We call on all countries to support the mandate of the United Nations Conference on Trade and Development (UNCTAD) to assist developing countries in multilateral trade negotiations by providing sufficient resources. While recognizing the value of environmental protection, labour standards, intellectual property protection, indigenous innovation and local community, sound macroeconomic management and promotion and protection of all universally recognized human rights and fundamental freedoms, including the right to development, and the treatment of each issue in its competent international organization, we reject all attempts to use these issues as

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conditionalities for restricting market access or aid and technology flows to developing countries. 22.  We have assessed the successful results of the recently held UNCTAD X Conference in Bangkok, Thailand, and request all countries duly to support the organization in its efforts to contribute to the promotion of the development dimensions of trade in the context of globalization and of the liberalization of the world economy. 23.  We further believe that the member countries of the Group of 77 should coordinate their priorities and negotiating strategies effectively to promote their common interests by shaping and directing multilateral trade negotiations to take into account the needs of developing countries so that trade policies serve the objectives of development, and also provide enhanced market access to developing countries. 24.  We note with deep concern the continuing decline of official development assistance, (ODA) which has adversely affected development activities in the developing countries, in particular the LDCs, and we therefore urge developed countries that have not yet done so to act immediately to honour their commitment of directing 0.7 per cent of their Gross National Product (GNP) to ODA, and within that target, to earmark 0.15 per cent to 0.20 per cent for the LDCs. We also urge that the provision of official aid should respect the national development priorities of developing countries, and that conditions attached to ODA should be brought to an end. 25.  We support the holding of a high-level United Nations conference on financing for development in the year 2001, which should address national, international and systemic issues relating to financing for development in a holistic manner. We call on all countries and relevant stakeholders, particularly the World Bank, IMF and WTO, to attach the greatest urgency and importance and to participate actively in the preparatory process and in the conference itself. We also welcome the offers by Indonesia and Colombia to holding regional intergovernmental meetings in order to provide inputs for the preparatory process for the event. In this regard, we invite the member States of the Group of 77 to consider offering to host the conference. 26.  We note with concern the persistence of the external debt problem and its unfortunate consequences in the South, where the vicious cycle of debt and underdevelopment has become even further entrenched. We are alarmed at the fact that debt servicing has grown at a much greater rate than the debt itself, and that the burden of debt payments has become heavier in many countries of the South, including countries with low and middle incomes. We therefore underline the need collectively to pursue a durable solution for the external debt problem of developing countries, including middle-income developing countries, which also addresses the structural causes of indebtedness. We further call for debt reduction arrangements for middle-income developing countries in order to expedite the release of resources for development. 27.  We welcome the expanded initiative in favour of heavily indebted poor countries (HIPC), but consider that it should be extended, expedited and made more flexible, and that new and supplementary resources should be contributed. Debt relief or cancellation should not be at the expense of official development assistance. We advocate seeking renegotiation formulas applicable to middle-income countries, and promote the design of a global strategy for external debt, which addresses the interrelated problems of finance, the economy and development. 28.  We note with grave concern the debt burden, which has put the least developed countries in a more vulnerable position, and urge the developed countries to write off their debt so as to relieve the LDCs of the burden and thereby strengthen their capacity to develop and to escape from the vicious circle of poverty. 29.  We view with alarm the recent unilateral moves by some developed countries to question the use of fiscal policy as a development tool and to impose their own definition of so-called harmful

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tax competition. We reiterate the fundamental right of each State to determine its own fiscal policies and in this regard sovereignty of States must be respected. We subscribe to the view that the legitimate struggle against money laundering should not be used as a pretext to discredit genuine offshore financial centres because of their fiscal policies and incentives. 30.  The contribution of the transnational corporations (TNCs) to sustained economic growth and sustainable development is determined by their global strategies, characterized by the search for increased competitiveness and ever-higher profits. Such a situation is not necessarily consistent with job creation and the realization of development objectives in many developing countries. Hence, we invite the relevant international institutions to address this dilemma with a view to attaining the proper balance between both objectives. In this context, we request UNCTAD and ILO, within their respective mandates, to study the merger trend among the TNCs and its impact on unemployment as well as its competitiveness impact on Small and Medium-sized Enterprises (SMEs) in developing countries. We also call on the TNCs to integrate development objectives of the host developing countries into their business strategies. 31.  We recognize that within the South, there are a group of countries, categorized as LDCs, which are at a particular disadvantage in the current phase of globalization and liberalization. Despite the efforts they are making and the attempts being made to help them, they continue to be marginalized in the world economy. We urge the international community to take special initiatives for them, particularly in regard to the eradication of poverty, equitable implementation of the WTO Agreements, free access to their exports in the world markets, debt cancellation, increased ODA, and incentives for FDI flows to the LDCs. 32. We reiterate our support for the initiative of the Group of 77 on the resolution entitled ‘Prevention of corrupt practices and illegal transfer of funds’, adopted by the United Nations General Assembly at its 54th session. We support the demands in that resolution on the need for increasing cooperation at various levels, including the United Nations system, to devise ways and means of preventing and addressing the illegal transfer of funds and repatriation of illegally transferred funds to countries of origin. We also endorse the decision of the African and European leaders who, at the end of their recent summit in Cairo, resolved to take the necessary measures to combat corruption at both the national and international levels and to ensure that illegally acquired and transferred monies deposited in foreign banks are investigated and returned to countries of origin. We call on all countries and entities concerned to cooperate in this regard. We also call on the United Nations to commence preparatory work for the elaboration of a convention on this matter, to be submitted to the Millennium Assembly for adoption. 33.  We recognize the special problems of small and vulnerable economies and encourage the relevant international institutions to take into account differences in the level of development and size of the economies of developing countries in order to create opportunities for full participation of the small economies and to increase their level of development. We insist that SDT for all developing countries, including small and vulnerable economies, should be recognized as a fundamental principle of the multilateral trading system. 34.  We have recognized the handicaps faced by landlocked developing countries due to unfavorable geographic circumstances, and the concerns of transit developing countries. In the global economy the landlocked developing countries are being increasingly marginalized despite efforts on their part to devise appropriate national strategies. This is resulting in the further deterioration of their economies and already low living standards. We urge bilateral and multilateral donors to grant preferential treatment to landlocked and transit developing countries. 35.  We are concerned by the special problems and vulnerabilities of small island developing states (SIDS), in particular the lack of market access and absence of special and differential treatment, which continue to create barriers for these countries to participate effectively in a rapidly globalizing world economy. We express concern that, although great efforts have been

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undertaken by the SIDS at the national level, there has not been commensurate support at the international level. We call for the strengthening of efforts at the international level in the implementation and follow-up of the Barbados Programme of Action. We emphasize the urgent need to maximize international support through, inter alia, strengthening the existing institutional agreements, mobilizing new, additional and external resources, and improving coordination mechanisms so as to focus and harmonize support for SIDS priorities. We note the regular incidence of natural disasters and their deleterious effects on the development of small and vulnerable economies and call for increasing international assistance for setting up and strengthening national, subregional, regional and international disaster prevention, preparedness and management mechanisms, including early warning systems, taking into account particularly the work accomplished during the International Decade for Natural Disaster Reduction. 36. We express our deep concern over the unprecedented floods in Southern Africa, and Mozambique in particular, that have caused loss of life, extensive destruction of infrastructures, deterioration of the socio-economic situation and dislodgment and scattering of landmines. The unfolding humanitarian disaster is a further cause of concern. We commend the efforts of the Southern African Development Community (SADC) countries to address the devastating effects of the floods and thank the international community for the support, solidarity and humanitarian assistance rendered to Mozambique. We urge the international community to participate in the International Donors Conference to be held in Rome on 3-4 May 2000, aimed at mobilizing financial resources for the reconstruction of socio-economic infrastructures and rehabilitation of the victims in Mozambique. We also urge the developed countries to write off the external debt of Mozambique in the light of its current critical socio-economic situation. We further urge the international community to increase its assistance to mine clearance programmes, taking into account the far-reaching effects of the floods. 37.  We are deeply alarmed about the persistent critical economic situation in Africa, exacerbated inter alia by a heavy debt burden, low levels of savings and investment, depressed commodity prices, declining levels of ODA, and insufficient levels of FDI. In particular we note with dismay that poverty in Africa has now reached intolerable levels, with negative consequences for the stability of most countries and regions of the continent. In order to reach internationally agreed targets of reducing poverty by half by the year 2015, African economies must grow at a rate of 7 per cent per annum. Present trends must therefore be reversed, starting with the writing off of bilateral and multilateral debts and a substantial increase in financial flows, including ODA. This would enable African countries to resume much-needed investment in human and physical infrastructure, a sine qua non for putting the continent back on the road to growth and development. In this context, we welcome the initiatives taken by some developed countries to write off the debts of LDCs and also welcome the Declaration and Plan of Action which emanated from the first Africa-Europe Summit, held in Cairo from 3 to 4 April 2000, and which examined ways and means to increase the integration of Africa into the world economy by elaborating a comprehensive solution to its debt problem, improving its productive and financial capacities, removing market access and supply-side obstacles to the flow of its exports to the international markets, and assisting its efforts to attract a larger share of world investment. We therefore urge the speedy implementation of measures supporting the development efforts of African countries. 38.  We are deeply concerned about the spread of HIV/AIDS and of parasitic diseases in developing countries in general and sub-Saharan Africa in particular. The scourge threatens to undermine great advances achieved in the social and economic fields in developing countries over the past decade. We urge the international community to adopt concrete measures to mitigate the disastrous effects of HIV/AIDS, including by encouraging local production and ensuring access to drugs at affordable costs. Urgent assistance is needed, particularly to intensify information and awareness campaigns to make the causes of the disease and preventive measures well known to

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the masses. We call for the support of the international community to assist in addressing the challenge posed by HIV/AIDS in particular, but by all diseases in general, such as lack of adequate access to care and treatment for HIV/AIDS, tuberculosis and malaria epidemics. Policies to realize gender equality must be implemented with greater urgency in order to help combat one of the root causes of the spread of the disease. We also call for international cooperation, including South-South cooperation, and the establishment of multi-disciplinary mechanisms at regional and subregional levels to address these challenges. 39.  We call for the design of investment promotion policies that correspond to national priorities for development, including capacity building, technology transfer, infrastructure, the expansion of production facilities, job creation, and the diversification of exports and markets. The international community should support the efforts of developing countries to define FDI strategies for the creation of a favourable climate for investment. 40.  We are convinced that South-South cooperation is an effective instrument for optimizing our potential to promote development through, among other things, mobilization and sharing of existing resources and expertise in our countries, as well as complementing cooperation programme with donor countries. We therefore commit ourselves to overcoming whatever factors have limited this cooperation. We believe such cooperation is imperative in the context of globalization and that it should therefore be pursued with determination and political will. We also believe that South-South cooperation is an essential mechanism for promoting sustained economic growth and sustainable development and that it constitutes a vital element in promoting constructive South-South relations and in achieving self-reliance. In view of the foregoing we reiterate our determination to take necessary measures, including the identification of resources and the design of appropriate follow-up mechanisms to exploit its potential fully. 41.  In this regard, we commend and support recent initiatives taken by our countries to promote cooperation between Africa and Latin America and the Caribbean, as well as between Africa and Asia, as contained in cooperation agreements, to address issues of desertification, drought and land degradation in joint efforts to implement the United Nations Convention to Combat Desertification, particularly in Africa. We reaffirm our commitment for the full implementation of all the provisions of the Convention and call on developed countries and the international community to fulfil their financial commitments in this regard. We also support the decisions adopted at the African Ministerial Conference on Environment, held in Abuja, Nigeria, on 4-6 April 2000, and welcome the recent establishment in Tunisia of the observatory of the Sahel and Sahara. 42.  We recognize that regional cooperation and integration is the most meaningful approach for the South to face the challenges of globalization and take full advantage of its opportunities. We also commend and support the work of the regional and subregional groupings established among developing countries to promote the sustainable socio-economic development of their respective member States through regional integration and the harmonization of their economic and social policies. We further welcome and encourage the establishment of appropriate structures at the regional and subregional levels in the developing countries aimed at removing barriers to the free movement of goods, services and capital. 43.  We note that the prevailing gap between the North and South in the scientific and technological field is still growing, and that the process of rapid accumulation of knowledge and technologies has not reached the hundreds of millions of people who continue to live in absolute poverty. It is essential to adopt appropriate measures to overcome the technological gap between the developing and industrialized countries and to work towards arrangements that facilitate the processes of technology transfer. While we are committed to promoting the development of science and technology by strengthening our political will, increasing the allocation of resources to that end, developing an appropriate institutional framework, and promoting technology and

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innovation through advanced, quality education, we urge developed countries to facilitate the transfer of technology, easing the costs and collateral conditions that presently stand in its way. 44.  We believe that the prevailing modes of production and consumption in the industrialized countries are unsustainable and should be changed, for they threaten the very survival of the planet. We firmly believe that technological innovations should be systematically evaluated in terms of their economic, social and environmental impact, with the participation of all the social sectors involved, including the business community, Governments, the scientific community, and other groups that have not traditionally been part of this process. We call on the developed countries to fulfil their commitment to provide developing countries with financial resources and environmentally sound technologies on a preferential basis. 45.  We advocate a solution for the serious global, regional and local environmental problems facing humanity, based on the recognition of the North’s ecological debt and the principle of common but differentiated responsibilities of the developed and developing countries. 46.  We recognize that information technology constitutes one of the pillars of technological revolution and represents one of the most powerful development tools of our time. We should take full advantage of this unique opportunity to use information technology for development and to ensure that its benefits reach our people, as the future of the South depends on the inclusion of information technology in its economic and social development programmes. In this context, we underline the need to establish global knowledge partnerships that encourage to developed countries provide developing countries with the necessary assistance. 47.  While we believe it is urgent to enhance our access to global information networks and to improve the benefits derived therefrom, we also emphasize the need to preserve our national and regional diversity of traditions, identities and cultures which may be affected by the globalization process, and to achieve a connection to contemporary international information and knowledge that does not entail sacrificing our national and regional cultures and identities. It is thus necessary to pay special attention to the homogenizing tendencies that may threaten this diversity. In this context, we welcome the proclamation by the United Nations General Assembly of the year 2001 as the Year of Dialogue among Civilizations and stress the importance of this initiative as a means of enhancing understanding of diverse cultures and promoting North-South and South-South cooperation in a globalized world. 48.  We firmly reject the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries, and reiterate the urgent need to eliminate them immediately. We emphasize that such actions not only undermine the principles enshrined in the Charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. We, therefore, call on the international community neither to recognize these measures nor apply them. 49.  We are committed to promoting democracy and strengthening the rule of law. We will promote respect for all universally recognized human rights and fundamental freedoms, including the right to development. We pledge ourselves to provide transparent, effective and accountable governance, responsive to the needs of our peoples, which is necessary for economic growth, peace and prosperity. We reaffirm that every State has the inalienable right to choose political, economic, social and cultural systems of its own, without interference in any form by other States. 50.  We express grave concern over the impact of economic sanctions on the development capacity in the targeted countries, in this context noting that Libya has now fulfilled all its obligations in terms of pertinent Security Council resolutions, and we urge the Security Council to adopt a resolution completely lifting the sanctions against Libya. We also call for the immediate lifting of all unilateral sanctions imposed against Libya outside of the United Nations system.

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51.  We affirm that bringing an end to the Israeli occupation and establishing a comprehensive, just and lasting peace in the Middle East is a prerequisite for economic and social development in the region. We reaffirm our support for the Middle East peace process on the basis of Security Council resolutions 242 (1967), 338 (1973) and 425 (1978) and the principle of land for peace. Peace demands complete Israeli withdrawal from the occupied Palestinian territory, including Jerusalem, and the achievement of a final settlement by the agreed-upon deadline of September 2000, as well as the establishment of the State of Palestine with Jerusalem as its capital. It also demands complete Israeli withdrawal from the occupied Syrian Golan and the demarcation of the 4 June 1967 line, as well as the unconditional withdrawal from South Lebanon and Western Bekaa to the internationally recognized boundaries. We affirm that measures taken by Israel aimed at changing the legal status and the demographic composition of Jerusalem are null and void. 52.  We call on all States in areas of conflict to refrain from attacks against civilian infrastructures, and consider the attacks on such targets as contrary to international law and detrimental to the pursuit of national economic and social development and to international trade. 53.  We also express our deep concern over the air attack against the El-Shifa Pharmaceuticals Factory in the Sudan on 20 August 1998, and its negative impact on that country’s economic and social development. We express our support and solidarity with the Sudan for its demand for a just and fair consideration of the matter by the United Nations on the basis of international law. 54.  We stress the need to maintain a clear distinction between humanitarian assistance and other activities of the United Nations. We reject the so-called ‘right’ of humanitarian intervention, which has no legal basis in the United Nations Charter or in the general principles of international law. In this context, we request the Chairman of the Group of 77, in conjunction with the Chairman of the Non-Aligned Movement (NAM), through the Joint Coordinating Committee, (JCC), to coordinate consideration of the concept of humanitarian intervention and other related matters as contained in the 1999 Report of the United Nations Secretary-General on the work of the Organization. We further stress the need for scrupulously respecting the guiding principles of humanitarian assistance, adopted by the General Assembly in its resolution 46/182, and emphasize that these principles are valid, time-tested and must continue to be fully observed. Furthermore, we stress that humanitarian assistance should be conducted in full respect of the sovereignty, territorial integrity, and political independence of host countries, and should be initiated in response to a request or with the approval of these States. 55.  We call upon the international community to provide the necessary assistance to landmine clearance operations, as well as to the rehabilitation of the victims and their social and economic integration into the landmine affected countries. We express concern over the residues of the Second World War, in particular in the form of landmines, which cause human and material damage and obstruct development plans in some developing countries. We demand that the States responsible for laying the mines outside of their territories assume responsibility for the landmines, cooperate with the affected countries to get rid of them, and contribute defraying the costs of clearance and provide compensation for any ensuing losses and for reclaiming the affected areas for productive purposes. 56.  We also express dismay at the increasing number of children involved in and affected by armed conflict. We call upon the international community to take concerted action to prevent and stop the use of children in armed conflicts and to assist in the rehabilitation of those affected children, as they are the future generation who would otherwise be able to contribute meaningfully to development. 57.  We note with deep concern the increase of all kinds of criminal activities, including illicit traffic of arms, drugs and other products, which are used to foster, and finance organized crimes and all types of transnational crimes, which continue to be a major factor of instability and a

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threat to development. In this context we are also deeply concerned by the trafficking of women and children, which is not only an offense against human dignity, but also a violation of International Law. We call upon all countries to join the multilateral effort of the international community to develop mechanisms that will strengthen cooperation in terms of prevention and elimination of these activities, so that the stability and prosperity of all economies and societies can be guaranteed. 58.  We have appraised the importance of the Millennium Summit, and reaffirm the need for the Group of 77 and the NAM to duly coordinate their positions. In this regard, we endorse the proposal of the Joint Coordinating Committee that within the overall theme of the interactive debate being held at the South Summit on the role of the United Nations in the 21st century, there should be two subthemes, namely, ‘Peace, security and disarmament’ and ‘ Development and poverty eradication’, and emphasize the need for developing countries to coordinate their positions to ensure, that their common interests and positions on every aspect of the two subthemes are fully reflected in the outcome of the Summit. 59.  We welcome the decision to convene a special session of the General Assembly in the year 2001 to review the implementation of the Programme of Action of the World Children Summit, and express our commitment to participate fully in the preparatory process for the special session with a view to improving the lives of children in our countries. We are concerned that economic and social marginalization of developing countries, especially the poorest nations, is having a deleterious impact on children. 60.  In this context, we express our deep concern over the insufficient level of resources for development at the disposal of the United Nations, thus hindering its capacity to fulfil its main economic and social objectives in a manner commensurate with the needs and aspirations of the developing countries. We note with concern the increasing erosion of the role and the contribution of the United Nations to the promotion of genuine international cooperation for development. In this regard, we reiterate that the United Nations has a central role to play in world economic matters by promoting a vital boost to the development of the South and by transforming international economic relations, making them more fair and equitably and pledge our full support and determination to working towards its strengthening in this regard. 61.  We believe that in order to realize the goal of universal peace and prosperity, we will need to promote international cooperation that is just and equitable, giving high priority to integrated and comprehensive development, which can be achieved only by working together, both among ourselves and with the developed countries. We can make ourselves heard as a single voice, with the courage, perseverance, boldness and political will needed for the major and urgent transformations of the international economic system to which we all aspire. 62.  In adopting this Declaration, we recognize the need for an action-oriented programme of practical solutions to be implemented within a specific timeframe. To guide us in this process, we adopt the Havana Programme of Action. The Chairman of the Group of 77 is requested to forward this Declaration and the Programme of Action to the President of United Nations General Assembly in order to be circulated as official documents of the Millennium Summit and the Millennium Assembly.

b.  The Havana Programme of Action I. INTRODUCTION We the Heads of State and Government of the developing countries, which account for almost four-fifths of the world’s population, have assembled here in Havana for the first South Summit

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at a truly historic moment in the evolution of human society. At the dawn of a new millennium, our countries and people stand at the crossroads of history poised between the achievements of the past and the hope and expectations of a yet uncharted future. Rather than be passive witness of a history not of our own making, we in the South will exert every effort to shape the future through the establishment of a world order that will reflect our needs and interests while also laying the foundations for a more effective system of international development cooperation. To this end, we undertake to pursue a sharply focused action-oriented agenda geared to implementing a number of high priority initiatives within specified time frames. Accordingly, and in furtherance of our Declaration of the South Summit, we adopt the following final document which shall be known as the ‘Havana Programme of Action’.

II. GLOBALIZATION 1.  Globalization, through trade, investment and capital flows and advancements in technology, including information technology, has had a profound impact on all aspects of international relations. As a result of technological development, especially in the electronic, transport and communication sectors, there has been a proliferation of economic, scientific, technological and cultural innovations, which have greatly affected all areas of human life, and especially the process of development in the countries of the South. 2.  Globalization can be a powerful and dynamic force for strengthening cooperation and accelerating growth and development. It presents opportunities, as well as risks and challenges. Globalization is a process, which can be uneven and unpredictable, but if it is properly harnessed and managed, the foundations for enduring and equitable growth at the international and national levels can be laid. National efforts need to be complemented by intensified international cooperation in order to reverse the marginalization and manage the risks, overcome the challenges and seize the opportunities created by globalization. 3.  The empirical evidence shows, among others, that the income gap between developed and developing countries has widened. Even those countries, which seem to have adapted well to globalization were the most seriously affected by the Asian financial crisis. It is clear that there is no automatic process by which income levels of developing countries will converge towards those of developed nations. The challenge before the international community is to ensure that globalization should takes into account the development dimension. 4.  We are concerned about the increased marginalization of a large number of developing countries, especially Least Developed Countries (LDCs), owing to the globalization process, particularly in the finance, trade and technology sectors. We emphasize the importance of the effective and beneficial integration of the LDCs into the global economy and the multilateral trading system as its main driving force. In this context, we agree that the United Nations is in a unique position, as a universal forum, to strengthen international cooperation for promoting development in the context of globalization; in particular the integration of developing countries into the globalizing economy, on terms in which as they are able to take full advantage of all their potentials for economic growth and development. In this regard, the forthcoming Millennium Summit presents an important platform to strengthen the role of the United Nations in international cooperation for development. 5. In addition, globalization has increased the vulnerability of those countries of the South, which are in the process of being integrated into the world economy. As the recent financial crisis has illustrated, financial liberalization including speculative and volatile financial flows, over which the developing countries have little controls, in the absence of adequate institutional arrangements to manage the processes, has generated significant instability in the international economies, with specially disastrous results for the developing countries. Therefore, there is an

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increasing need for the reform of the international financial architecture. In this context, we should seek to ensure a more democratic and fair ordering of any mechanism, which emerges from these discussions in order to increase the effective participation of developing countries in the management of the international economy. It will also be important to ensure that the reform of the international financial architecture addresses financing for development as well as issues of financial stability including the need for the regulation of hedge funds and highly leveraged institutions and strengthening of the early warning system to provide for improved response capabilities to help countries deal with the emergencies and spread of financial crises. In this context, UNCTAD should contribute to the debate on issues related to the strengthening and reforming of the international financial architecture by continuing to provide relevant analysis from a development perspective. The focus should be to achieve the objective of financing for development. 6.  We stress the need for adjustment of the policies of developed countries, which should lead to an improved market access for the exports of developing countries and the elimination of protectionist and support measures especially in agriculture, textile and clothing sectors. We also call for the mandated negotiations on agriculture in accordance with the provisions of article 20 of the Agreement on Agriculture. In agriculture the objectives should be to incorporate the sector within normal WTO rules. 7.  Vulnerability and volatility are major impediments to the countries of the South and contribute to perceived risks and difficulty in attracting foreign direct investment in developing countries, making ODA a crucial source of finance for developing countries and stressing the need for the continuation of flexible graduation procedures by the Bretton Woods Institutions. The completion of the work on a vulnerability index would be an important step in assisting multilateral institutions to assess effectively the needs of developing countries. As a number of underlying principles governing globalization and trade liberalization have been formalized in the agreements emanating from the Uruguay Round of multilateral trade negotiations, there is a need to address those aspects, which have clearly operated to the disadvantage of developing countries and immediately implement fully the provisions for special and differential treatment in favor of developing countries. We are distressed that since the Ministerial Meeting in Marrakech held in 1994 establishing the WTO, little has been done to develop an effective program of concrete measures to assist the integration of these countries into the multilateral trading system. Of concern also is the volatility of international markets, which have witnessed the deterioration of prices of commodities and terms of trade, which have imperiled the ability of developing countries in the global economy. 8.  In this respect, it is necessary to adopt measures that improve access, for all products of export interest to developing countries, to the markets of developed countries, by means of reducing or eliminating tariff and non-tariff barriers, and by introducing measures that support capacity-building for production and export in our countries, as well as other measures that help to guarantee the stability of the prices of these products in the international markets. Within the framework of the WTO, to promote the idea of the creation of a fund for development. 9.  Furthermore, increased international interaction, which has taken place in the context of globalization, has also led to problems, which require enhanced international cooperation and solidarity for their resolution. Maximizing the benefits of globalization requires sound domestic macroeconomic policies supported by an enabling global environment and international economic cooperation. It is imperative that a collective solution is found to wide-scale collective problems. Globalization calls for approaches and methods in line with the global level of the problems facing the world; it calls for a view, which includes the large majority and is based on an essential sense of social justice and human solidarity. In general, it will be necessary to ensure greater coordination in international policy-making.

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10.  Globalization and interdependence, whilst strengthening common values, should boost and maintain local development, taking into account the traditions, culture and identity of the people, who together make up the common heritage of humanity. Special attention should be paid to preserve diversity, which is the principal wealth of human development. Respect and tolerance for cultures and cultural identity would contribute to peaceful co-existence and economic development. 11.  We reaffirm the right to self-determination of all peoples, in particular of peoples under colonial or other forms of alien domination or foreign occupation, and the importance of the effective realization of this right, as enunciated, inter alia, in the Vienna Declaration and Programme of Action adopted at the World Conference on Human Rights. We decide to continue working for removing the obstacles to the realization of the right of peoples to self-determination, in particular of peoples living under colonial or other forms of alien domination or foreign occupation, which adversely affect their social and economic development. We are deeply concerned also over the gravely negative impact of foreign occupation on the social and economic development of peoples under foreign occupation, and, in this context, we also reaffirm the principle of permanent sovereignty of peoples under foreign occupation over their natural resources. 12.  We stress that democracy, respect for all internationally recognized human rights and fundamental freedoms, including the right to development, transparent and accountable public administration and governance, responsive to the needs of peoples, in all sectors of society, as well as effective participation by our citizens and their organizations are an essential part of the necessary foundations for the realization of people-centered sustainable development. We also stress that every State has the inalienable right to choose political, economic, social and cultural systems of its own, without interference in any form by another State. We, the Heads of State and Government, commit ourselves to the following decisions and actions: (1)  To respond to globalization with a view to making it beneficial for all countries and peoples, and to actively promote effective participation of developing countries in the international economic policy decision making in the context of the globalizing world economy •  Convene, in consultation with member States from the South a High-level Advisory Group of eminent personalities and intellectuals to prepare a report on globalization and its impact on developing countries, and report to the annual Ministerial Meeting in the year 2001. •  Intensify efforts to review and reform the WTO regime with a view to promoting a multilateral trading system that is fair, equitable and rules-based, and that operates in a non-discriminatory, inclusive and transparent manner, and in a way that provides benefits for all countries, especially developing countries. This will involve among other things, improving market access for goods and services of particular interest to developing countries, resolving issues relating to the implementation of WTO agreements, fully implementing special and differential treatment, facilitating accession to the WTO, and providing technical assistance. Invite member States to consult and make efforts as necessary for coordination of the position of developing countries prior to UNCTAD and WTO meetings, including through Ministerial Meetings •  Work to ensure that countries whose economies depend heavily on trade preferences be accorded the necessary transition period by the World Trade Organization to adjust to the new liberalized regime. •  Work within all relevant fora to ensure the establishment of a work programme for small economies to enhance their capacity to participate more effectively in the international trading system. •  Work towards reform of the international financial architecture that addresses issues of financing for development and stability of the international financial system including the

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need for regulation of hedge funds and highly leveraged institutions and strengthening of the early warning system to provide for improved response capabilities to help countries deal with the emergencies and spread of financial crises. •  Oppose application of all disguised protectionist measures such as labour standards and the attempts to further widen the environmental windows currently existing under the rules. We pledge to work together to ensure that linkages which act to curb the comparative advantage of developing countries are eschewed in WTO. •  Press for the freer movement of natural persons, in which developing countries have comparative advantage in the global economy, thus matching the arrangements applied in other areas such as finance and services. While the capital markets have been opened, including in developing countries, there has hardly been any movement in opening of the labour market in developed nations, particularly within the context of forthcoming negotiations on trade. •  Call on the relevant institutions to work towards the early completion of a vulnerability index. •  Urge UNCTAD to assist in collaboration with Common Fund for Commodities developing countries and upon request, in handling commodities in an integrated manner with attention on improving their prices, developing their processing, transportation and availability of capital and technology for production. We also urge UNIDO to continue its assistance to developing countries to enable them to diversify their economies. •  Pursue efforts to harmonize the South’s position on monetary and financial matters and in this context welcomes the decision adopted by the Twenty-sixth meeting of the Chairmen/ Coordinators of the G-77 Chapters held in Geneva, from 6 to 7 April 1999, to convene annual coordinating meetings between the Chairmen of the G-77 and G-24 prior to the IMF/World bank spring and autumn sessions. (2)  To revitalize and strengthen the role of the UN system in promoting development and international cooperation in the context of globalization •  Work for decisions on critical economic issues in institutions such as the IMF, the World Bank and the WTO, which promote the interests of developing countries through effective and full participation of all and on the basis of sovereign equality, and by asserting the key role of the UN in this sphere. •  Work towards strengthening the role of UNCTAD and the coordinating role of ECOSOC and the regional commissions in addressing the economic and social development priorities of developing countries. •  Continue to pursue the complementarity and coordination among the UN agencies, especially UNCTAD and other relevant international organizations including the IMF, the World Bank and the WTO with the view to promoting the development of developing countries while avoiding the imposition on governments of cross-conditionalities and other conditions which would operate to restrict their policy options further. (3)  To preserve and promote cultural diversity especially in the context of globalization •  Invite national governments and institutions of the South to preserve and promote diversity in traditions, culture and identity of the people, as well as indigenous and local traditional knowledge, practices, and technology for achieving local development and request the Chairman of the Group of 77 to examine the possibility of organizing a Southern Cultural Assembly, Art Festival of the South on a biennial basis. The Chairman would present his recommendations to the next Ministerial Meeting. •  Invite governments and institutions of the South to promote and intensify cultural exchanges and tolerance among the developing countries.

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(4)  To utilize institutions in the South in meeting the challenges of globalization •  Invite the Chairman of the G-77 to coordinate the networking of research institutions and centers from the South to undertake analytical and prospective research on globalization and related matters, with a view to strengthening the Group’s negotiating capacities in various G-77 Chapters. •  Intensify efforts at institutional capacity building, including through the exchange of expertise, experiences, information, and documentation between the institutions of the South in order to develop human resources and strengthen the institutions of the South.

III.  KNOWLEDGE AND TECHNOLOGY 1.  Today, more than ever, rapidly advancing scientific and technological developments, particularly in areas such as microelectronics, biotechnology and information technology, have played a critical role in economic and social development and have, therefore, influenced all areas of human endeavour. We are in the midst of a profound revolution of knowledge and technology. Therefore, we acknowledge that to invent, innovate, generate, acquire, absorb and use knowledge in any manner possible has been an important contribution to economic growth and the raising of standards of living for a long-term. 2. We recognize that there has been a shift from manufacturing to information and knowledge-based production activities in the global economy over the last two decades. Information Technology (IT) presents the most powerful technological revolution of our time. Its impact and rapid pace are ushering in fundamental changes that will define the challenges and opportunities for all countries in the future. Information Technology could become an effective instrument for fostering equality in the field of economic growth and development and for narrowing the gap between the developed and the developing countries, as well as for facilitating access to knowledge and education at all levels of society. We should take full advantage of this unique opportunity to help shape the use of Information Technology and to ensure that its vast benefits reach all humankind by undertaking efforts to make it more widely accessible to and within developing countries. 3.  We note with concern that developing countries lag far behind in knowledge generation and its application to new areas of industry, which provide increasing returns and rapid increases in income. With their modest investment in research and development, the countries of the South find it difficult to keep pace with these developments. The disparity between the developed and developing countries in their respective capacity to produce scientific and technical knowledge and to utilise this knowledge in support of social and economic development has emerged as a major problem facing the international community. The technology gap between developed and developing countries has become an important cause of the increasing income gap between developed and developing countries and this gap is likely to increase further if developing countries cannot become actively involved in developing those new industries based on the application of knowledge and technology. 4.  Advances in technology also carry risks and uncertainties and even have potentially destructive implications, particularly in terms of their impact on the environment. More than ever, science and technology are also likely to exert a major influence on the way in which the earth’s resources are utilised and shared among its inhabitants. Scientific knowledge is therefore emerging as a major source of power and influence and as a key factor in determining the sustainability of our planet and the future prospects of mankind. This challenge implies the need to elaborate an appropriate strategy designed to promote international cooperation in the field of science and technology.

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5.  We are deeply concerned that the role of the United Nations, which was given the mandate at the 1979 Vienna Conference on Science and Technology, has been progressively marginalised over the years. 6.  Moreover, the provisions under the TRIPS Agreement relating to the transfer of technology should work to the mutual advantage of producers and users of technical knowledge and should facilitate transfer of all required technologies to developing countries. Faced with the threat of increasing technological marginalization of the South, we have decided to make science and technology a priority item on the national agenda as well as in the area of South-South cooperation. We also intend to re-introduce the subject as a major item on the international development agenda, since science and technology can help the countries of the South to address more effectively the challenges faced by the South. 7.  We are aware that a number of barriers have prevented the developing countries from seizing opportunities to exploit science and technology including lack of resources to generate and exploit traditional knowledge, particularly those of indigenous communities, the non-recognition of traditional knowledge—in technological development and patenting, lack of infrastructure, prohibitive costs of acquiring knowledge and technology and small size of their economies, including the challenges resulting from the changing role of the State, the emergence of such patenting which promotes corporate monopoly and the progressively decreasing importance assigned to science and technology on the international development agenda. We, the Heads of State and Government, commit ourselves to the following decisions and actions at the national and international levels: (1)  Promotion and development of knowledge and technology in the South •  Work towards achieving the objective of eradicating illiteracy and to promoting the concept of Education for All Throughout Life, through steps to promote basic education, ensuring special emphasis on the promotion of girls education, and higher level education, strengthening of education infrastructure and non-formal methods of education; •  Work towards addressing basic and other infrastructural impediments to the spread of knowledge, such as provision of electricity, transport and better telecommunication facilities, as well as finding ways, where appropriate, to remove the impediment on regional and interregional basis. •  Allocate adequate resources including from national budgets to further the access, specially of children and youth, to basic and higher level education and to strengthen science and technology sectors within our countries and to increase the percentage of GNP allocated to the development of research in the field of science and technology; •  Publish, on annual basis, national reports that provide data on national scientific and technology capacities as well as a roster of national researchers in different fields of science and technology; •  Establish, at the national level, networking of research institutions dealing with science and technology and promote closer links between universities, research institutions, industry and scientists. These networks should involve and link people, governments, private and public sectors, civil society and scientists of the South based in the North; •  Work together as countries of the South to exchange experiences and cooperate with others among us who have a competitive advantage in areas such as bio-engineering, communications, communication, administration and production, education, transport, banking and software development. •  Decide to establish a G-77 science and technology award for individuals from the South who have distinguished themselves in the area of science and technology.

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•  Promote the establishment of venture capital funds in our respective countries to promote science and knowledge based industries. (2)  To encourage the institutions of the South to launch further initiatives to promote knowledge and technology in developing countries •  Establish a trust fund for the promotion of knowledge and technology in the South. Seed money for the Fund may be provided on a voluntary basis by governments, private sector, foundations and other organizations. The Chairman of the Group of 77 should initiate action for the establishment of such a trust fund and report to the following Ministerial Meeting on this issue; •  Establish a consortium on knowledge and technology comprising representatives from the governments, private sector and other relevant organizations, which should meet on a regular basis in order to promote joint ventures in the South in the field of science and technology. The Chairman of the Group of 77 should initiate action for the establishment of such a consortium and report to the following Ministerial Meeting on this issue; •  Encourage South-South scientific organizations and research institutions dealing with science and technology to further expand their South-South fellowships and training programmes and develop dynamic strategic alliances with governments, private and public enterprises, universities, laboratories and civil society; •  Exploit the potential of communications and information technology for the development of the South through the adoption of policies, and measures that should narrow the gap between developed and developing countries in information and communication technologies and to strengthen information technology networks at the regional, sub-regional and interregional levels with linkages to global information networks. •  Establish a South-South network, linking research & development (R&D) institutions and other centers of excellence in order to enhance the South’s efforts in establishing strategic South-South programmes of R&D on the development of vaccines, drugs and diagnostics for the prevention and cure of major communicable diseases in the South, such as malaria, tuberculosis and HIV. •  Decide to consider, as soon as possible, the possibility of convening a South-South high-level conference on science and technology, with a view to formulating global strategies and clear policies within the South for the promotion of science and technology. (3)  To harness the potential of human resources, including expatriates, from the South for the benefit of developing countries and to address the challenges associated with brain drain •  Create conducive conditions in our countries in order to attract and retain our important human resources. •  Encourage South-South transfer of skills and in this connection we urge the strengthening of the application of the United Nations Volunteers Programme for transfer of skills between countries of the South. •  Encourage research and scientific organizations from the South to open their chapters in developed countries. Expatriate scientists, professionals and research scholars from the South may be encouraged to run these chapters; •  Invite the Chairman of the Group of 77 in close coordination with the relevant G-77 Chapters to take necessary steps with a view to promoting, with relevant organizations of the UN system, Associate Schemes particularly in the field of communications, information and biotechnology. Such schemes would provide opportunities for scientists and professionals working and living in the South to have interaction with the fellow scientists in the North without permanently leaving their own countries and undertake further initiatives for the

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exchange of experiences and knowledge in order to achieve the universalization of knowledge and education. (4)  To create enduring international environment to ensure South’s access to knowledge and technology and promote the United Nations central role in removing different barriers faced by the South in the acquisition of knowledge and technology •  Invite the Chairman of the Group of 77 in coordination with the various G-77 chapters to work towards the strengthening of the United Nations Commission on Science and Technology for Development, and arrangements within the UN system, including UNESCO and the regional commissions dealing with knowledge and technology, and promoting annual consideration of science and technology within the relevant committees of the United Nations. •  Call for a better coordination within the UN system in the field of science and technology with a view to enabling the developing countries to participate in the knowledge based global economy and to elaborate programmes to use science and technology as a vehicle for development. •  Increase public investment in technologies for development and work towards ensuring transfer of technologies to developing countries on preferential terms and invite developed countries and international organizations to adopt policies and programme with a view to ensuring that developing countries can measurably benefit from the advances in technologies owned by both public and private sectors; •  Work towards operationalising the provisions of the TRIPS Agreement, articles 7 and 8 thereof, which facilitates the access to dissemination and transfer of technologies and to explore benefits that could accrue to developing countries and particularly least developed countries. In this context, invite developing countries to hold consultations, prior to international meetings related to the review of the TRIPS Agreement with a view to achieving common positions in this field. In addition, efforts should be made to ensure that future TRIPS-related Agreements extend the provisions for transfer of technology from developed to all developing countries on concessional and preferential terms. •  Invite the Chairman of the Group of 77 to explore the possibility of formulating proposals to ensure that the TRIPS Agreement promote the development of developing countries, including the possibility for a code of conduct for all countries which facilitate the access to, dissemination and transfer of technologies on concessional and preferential terms from developed to developing countries. •  Work towards full implementation of provisions of various conventions and agreements in order to ensure that proprietary patents based on traditional knowledge in all aspects including those of indigenous communities are developed only after obtaining the prior informed consent of the developing countries concerned after reaching agreement on benefit sharing with these developing countries, which are storehouses of such bio-diversity and traditional knowledge. Work towards fulfilling the clear and pressing need to extend and render effective protection to indigenous biotechnology, developed over the millennia, to ensure a flow back of benefits from patentees to original developers. •  Strengthen the UN bodies dealing with science and technology including the promotion of the implementation of the Vienna Plan of Action on Science and Technology adopted in 1979. •  Make universally accessible, proven appropriate technologies and safe and affordable, essential medicines to prevent and mitigate HIV/AIDS pandemic and other communicable diseases in order to arrest their catastrophic human and economic impact on developing countries.

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IV.  South-South Co-operation 1.  South-South cooperation is a crucially important tool for developing and strengthening the economic independence of developing countries and achieving development and as one of the means of ensuring the equitable and effective participation of developing countries in the emerging global economic order. Economic and Technical Cooperation among Developing Countries (ECDC/TCDC) have become an integral part of the mutual relations between the States of the South and an important means of promoting the exchange of ideas, experience, knowledge, technical advances, skills and expertise across a broad range of sectors. It also remains a key vehicle for forging common positions in international forums on issues of concern to developing countries. 2.  Since the establishment of the Group of 77 in 1964, we have formulated a number of platforms, strategies and plans of action on South-South co-operation. We recognize that the Non-Aligned Movement, as the other prominent platform of the South, has also adopted a number of action-oriented South-South programmes. Taken together, these documents set out a comprehensive philosophy and framework for action aimed at promoting an intensified pattern of co-operation among our countries in a wide range of areas such as trade, investment, technical cooperation, industrialization, energy, food and agriculture, and technology. 3.  In the light of current global economic environment, which has been markedly influenced by the process of globalization, we agree that the need for strengthening South-South cooperation is greater now than ever. We note, however, that although there has been an increasing pattern of co-operation among our countries, progress over the years has not been commensurate with the comprehensive nature of the commitments embodied in the various declarations and programmes of action. The lack of effective follow-up and implementation have militated against full exploitation of the potential of South-South co-operation. This has also tended to lessen the impact and effectiveness of such co-operation in recent years. We reaffirm the continued relevance and viability of South-South cooperation in view of the increasing differentiation among the developing countries in terms of level of development. Increasing contacts and interaction has provided an additional basis for increased co-operation among the countries of the South. 4.  We emphasize that special attention should be paid to the Least Developed Countries owing to their particular needs so that they can effectively participate and benefit from programmes of economic and social cooperation among developing countries in all fields of such cooperation. 5.  The tendency for decisions taken in multilateral fora at the global levels, to impact directly on the developing countries, makes it all the more necessary for our countries to foster increased co-operation and co-ordination of effort. 6.  In addition, the increasing importance of subregional and regional economic groupings and arrangements in the South provide a powerful dynamic for enhanced South-South cooperation. Varying development experiences and know-how existing in developing countries as well as similar needs and problems offer opportunities for greater bilateral, subregional, regional and international cooperation among developing countries. The potential of these arrangements needs to be fully exploited. 7.  We are convinced that the United Nations Convention to Combat Desertification, as a development convention, is an appropriate framework to promote sustainable development in developing countries, and that South-South cooperation could contribute to the implementation of this Convention. In this regard, we welcome the adoption of Platforms for action at the Second Africa-Asia Forum (Niamey, 1998) and at the second Africa-Latin America and the Caribbean Forum (Bamako, 2000) as an important contribution to the implementation of the Convention. 8.  As eradication of poverty and inadequate access to basic social services remain major challenges facing the majority of the South, the social sector offers genuine complementarities to

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provide scope and ample potential for effective mutual cooperation through sharing of experiences, resources and institutional capabilities among developing countries, as appropriate. We, the Heads of State and Government, commit ourselves to the following decisions and actions: (1)  To renew efforts to stimulate the expansion of South-South trade and investment in order to accelerate economic growth and development of the South. •  Decide to consider further deepening and expansion of the GSTP in order to enhance its effects, through examination of possible ways of rationalizing the process of negotiations for a third round of GSTP negotiations. •  Decide to review the implementation and the performance and impact of the Global System of Trade Preferences (GSTP) among developing countries with a view to deepening and expanding the GSTP and invite the Chairman of the Group of 77, in coordination with the Geneva Chapter, to convene an intergovernmental consultative meeting as soon as possible and to request UNCTAD to contribute to this process. •  Invite the Chairman of the G-77, in consultation with the Chairman of the G-77 Chamber of Commerce and Industry, to convene an extraordinary meeting during the course of this year, to review the performance of the chamber, the operating modalities and its mandates as well as its subsidiary bodies, and to formulate a specific programme of work and to report on regular basis to the Chairman of the G-77 on its activities. Also requests the Chairman of the G-77 to present regular reports to the Ministerial Meeting of the G-77 on the activities of the Chambers. •  Strengthen current modalities and mechanisms for South-South cooperation, including by regional economic groupings, and other relevant institutions, while enhancing and readapting these modalities wherever necessary. •  Intensify bilateral, subregional, regional and interregional cooperation and integration in all modes of transport among developing countries. •  Encourage the landlocked developing countries and the transit developing countries to further strengthen their collaboration and cooperation, through the implementation of existing transit arrangements and agreements between them and consideration of new arrangements and agreements in order to enhance the efficiency and increase the flow of transit trade without prejudice to the interests of the transit countries. In this regard, the convening of the Ministerial Meeting on Transit Transport Cooperation to be held in 2003, is strongly emphasized. •  Invite the Chairman of the Group of 77 to encourage regular organization of a business forum and a South-South trade and investment fair and to take urgent necessary steps with a view to identifying the venue of the first trade and investment fair and business forum to be held in the year 2002. •  Harness effectively industrial complementarities among countries of the South, including through promotion of practical initiatives in the area of industry involving interested countries, with a view to increasing the productive capacity and value added in developing countries and fostering enhanced South-South investment. In this context, we invite the Chairman of the Group of 77 where requested to seek the support of relevant UN agencies in this endeavour. (2)  To strengthen cooperation in the monetary and financial field •  Note the initiative of the G-77 Chamber of Commerce and Industry to establish a G-77 Trade Development Bank with its headquarters in Nairobi and branches in all regions of the G-77, and the financial support provided by the Government of Kenya for a feasibility study of the Bank. In that regard, request the G-77 Chamber of Commerce and Industry to submit

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a report on the project as well as the Chamber’s activities and operational modalities, through the Office of the Chairman of the G-77, to the next Ministerial Meeting of the G-77 in New York. •  Continue to review the proposal of the establishment of a South-South monetary fund, South-South economic and social development fund and a South-South commodity price stabilization fund, within the process of reviewing the feasibility study of the South Bank initiative undertaken by the Group of 77 in 1983 as an innovative financial arrangement of the South to build up capital markets and facilitate South-South trade and investment, and invites the Chairman of the Group of 77 to report on this matter to the forthcoming ministerial meeting of the Group of 77. •  Create at the national level institutional arrangements for developing and strengthening capital markets in the countries of the South. •  Establish linkages between the stock exchanges and secondary bond markets of the regions of the South. (3)  To strengthen cooperation in promoting social development including the enhancing of capacity-building and human resources •  Decide to exchange experiences on: (i) effective and pro-poor health care delivery, specially primary health care, population planning and education programmes, particularly basic education, developed in the South based on local skills and resources that can fit into diverse needs of communities. (ii) innovative arrangements including centers of excellence established in the South for greater spread and utilization of knowledge existing in the South in the field of social development. (iii) successful programmes focussing on youth, children and women. (iv) arrangements and incentives to attract more capital, particularly in pharmaceutical industry, to generate more research aimed at finding remedies at affordable cost to diseases that have wide prevalence in the South. (v) further actions to encourage spread of various alternative forms of medicine existing in the South. •  Invite national governments to compile and disseminate updated information and expertise available within countries to facilitate greater interaction and networking among the developing countries in all areas of social development. •  Pursue more vigorously the implementation of South-South technical cooperation agreements established at the bilateral and multilateral levels in the economic, social, scientific and cultural fields, and invite national governments to exchange information on technical cooperation schemes they have successfully established. •  Invite member States to consult and coordinate, as necessary, their position prior to the annual general conferences of all relevant intergovernmental organizations. (4)  To promote multilateral cooperation and arrangements towards the expansion of South-South cooperation •  Invite G-77 countries to contribute to the expansion of the resources of the Perez-Guerrero Trust Fund for Economic and Technical Cooperation among Developing Countries (PGTF) in accordance with the relevant decision adopted by the Twenty-first Annual Ministerial Meeting of the Group of 77 held in September 1997 in New York, and invite the Chairman of the Group of 77 in coordination with the Chairman of the Committee of Experts of PGTF to intensify their efforts with the developed countries and relevant international

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organizations and private sector to support the expansion of the PGTF, and invite the Chairman of the Group of 77 to report on the matter to the forthcoming Ministerial Meeting of the Group of 77. •  Invite developing countries as well as developed countries to contribute generously to the UNDP Trust Fund on South-South Cooperation with a view to supporting the promotion and the implementation of South-South projects and initiatives adopted by the G-77 South Summit, and invite the Chairman of the Group of 77 and the Administrator of UNDP to report to the forthcoming Ministerial Meeting of the G-77 on this matter. •  Invite the Chairman of the Group of 77 to take the necessary steps for the publication, in collaboration with the TCDC Unit of UNDP, of an annual report on South-South cooperation which comprises, inter alia, programmes of ECDC/TCDC implemented by member States, including a list of national focal points in charge of ECDC/TCDC. •  Encourage the establishment of a network among focal points of developing countries by the Special Unit for TCDC, in the context of the creation of a multidimensional web of information for development. •  Decide to revitalize the role of various G-77 actions committees in various fields of cooperation as provided for in the Caracas Programme of Action, and invite the Chairman of the Group of 77 to propose mechanisms and arrangements to this end. •  Invite the Administrator of the UNDP to strengthen the TCDC Unit as the UN focal point for South-South cooperation through the preservation of its separate identity and the provision of adequate resources to ensure the full implementation of decisions of the South Summit under its sphere of competence and to enable it to carry out its relevant mandates and responsibilities. •  Invite the Chairman of the Group of 77 to conduct appropriate consultations with a view to identifying a possible venue for the tenth session of the Intergovernmental Follow-up and Coordination Committee on ECDC (FCC-X) to be held during the second half of 2000 in Africa as well as ensuring the regular meetings of the IFCC and to report to the forthcoming ministerial meeting of the Group of 77 on this matter. •  Promote the further use of experts from developing countries in the programmes and projects of the UN system executed in developing countries and invite the Chairman of the Group of 77 to take necessary steps with view to encouraging action in that regard. •  Identify and assess our needs as well as our capabilities and make them well known to other developing countries to promote complementarities and increase South-South cooperation. •  Encourage partner developing countries, within the context of the list of projects, to take effective steps for early implementation of such projects. In this regard, examine the creation of an open portfolio of projects on continuing basis. •  Invite developing countries to promote further initiatives on regional and sub regional cooperation to enhance economic development. •  Invite international organizations and developed countries to further promote and facilitate South-South Cooperation through triangular arrangements. •  Invite developing countries to pursue further efforts to strengthen institutional support for South-South cooperation with a view to maximizing the potentials of such cooperation among developing countries. •  Decide to convene a high level conference on South-South cooperation in the year 2003 and invite the Chairman of the Group of 77 to take necessary steps towards the implementation of this decision and to regularly report to the next annual ministerial meetings of the Group of 77 on this matter.

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•  Work to operationalize the Africa-Asia and Africa-Latin America and the Caribbean Platforms for action on the implementation of the Convention to Combat Desertification and call upon the international community to lend its full support to this cost effective and efficient initiatives.

V.  NORTH-SOUTH RELATIONS 1.  We are deeply concerned about the current state of North-South relations and the weakening of the commitment of the developed countries to international cooperation in support of development that was a hallmark of these relations prior to the 1980s. The post-Cold War period with its promise of a peace dividend has not fulfilled the hopes and expectations of the developing world. Instead, we have witnessed a weakening of the commitment of the developed countries to international cooperation in support of development. At the same time we also noted with concern the declining commitment to multilateralism, which has negatively affected international cooperation for development. In fact, despite the growing prosperity of the North, the level of finance for development for multilateral assistance including ODA has experienced a continuous decline over the years. 2.  We have also witnessed with concern the marginalized role of the UN in decision making on the major international economic issues and the shift of such decision making to the Bretton Woods institutions, in which developed countries exercise effective control by virtue of the system of weighted voting, and to the WTO in which they have sought to pursue non transparent and exclusive decision making procedures inimical to the interest of the developing countries. These developments have adversely affected the climate for pursuing a constructive and effective dialogue between North and South in order to strengthen international economic cooperation. 3.  It is our considered view that the creation of a stable international economic system supportive of development rests critically on the renewal of an effective North-South Dialogue aimed at the reinvigoration of international development co-operation geared to development and the increasing democratization of global economic decision-making structures. We strongly believe that such co-operation would need to be approached in a manner which is perceived by the developing countries to be equitable and fair and that will lead to fostering political will of all countries to build a constructive dialogue based on the spirit of partnership, common but differentiated responsibility, mutual benefit, and genuine interdependence. 4. Within this framework we believe that a renewed North-South Dialogue should seek to achieve two major objectives namely, the restoration of the focus on development in existing international relations and the need to correct the imbalance in the operation of the international economic system which has placed the developing countries at a clear disadvantage vis-à-vis the developed countries. 5.  For North-South relations to play a more dynamic and central role in the global economy, we need to thoroughly evaluate the obstacles in the way these relations were conducted. We will also assess our potentials and strengths with a view to formulating strategies to effectively confront these challenges. 6.  In the context of North-South dialogue, special attention should be given to the solution to critical problems for developing countries, such as restrictions to world trade hindering development, the volatility and instability of the international financial system and the drastic reduction of financial flows under preferential terms and conditions towards the countries of the South; the widening technological gap between the North and the South; the worrisome foreign debt of developing nations and the extremely unequal distribution of world income to the detriment of the most vulnerable economies.

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7.  The process of globalization and any multilateral negotiations on agriculture must take fully into account concerns and special needs, including those related to food security and rural employment, of developing countries which are predominantly agrarian economies. 8.  Recognizing that food security is an important issue, we call for the expeditious implementation of the Marrakech Ministerial decision on measures concerning possible negative effects of the reform programme on least developed and net food importing developing countries. 9.  For the global economy to recover, it will be necessary to restore confidence in the international trading system, and offer new opportunities for the countries of the South to ensure access the markets of developed countries. Towards this end multilateral trade negotiations should pay special attention to the development dimension of international trading arrangement. Similarly, the principle of non-reciprocity and the preservation and full implementation of special and differential treatment for developing countries should be firmly entrenched in the multilateral trading system. 10.  In the spirit of fostering North-South relations we underline the necessity for developed countries to eliminate laws and regulations with adverse extraterritorial effects and other forms of unilateral economic coercive measures, inconsistent with the principles of international law, UN Charter and the principles of the multilateral trading system. 11.  We also express our grave concern over the impact of economic sanctions on the civilian population and development capacity in targeted countries and therefore urge the international community to exhaust all peaceful methods before resorting to sanctions, which should only be considered as a last resort. If necessary these sanctions must be established only in strict conformity with the Charter of the United Nations with clear objectives, clear time frame, provision for regular review, precise conditions for their lifting and never be used as a form of punishment or otherwise exact retribution. 12.  We express deep concern over the air attack against El-Shifa Pharmaceutical Factory in the Sudan on 20 August 1998. We recognize that such an act has had a negative impact on the economic and social development of the concerned country and express our continued solidarity and support of its demand for a just and fair consideration of the matter in accordance with the Charter of the United Nations and International Law. We, the Heads of State and Government, commit ourselves to the following decisions and actions: (1)  Foster a new North-South partnership in order to promote consensus on key issues of international economic relations and development •  Revitalize the North-South dialogue and to that end, invite the Chairman of the Group of 77 to take necessary steps to convey promptly the G-77 concerns and interests to our developed partners, including through the meetings of the G-8, and to initiate appropriate action with a view to strengthen the existing international arrangements within the UN system in coordination with other groupings from the South. •  Request the High-level Advisory Group of Eminent Personalities from the South, while preparing its report on globalization and its impact on developing countries, to include therein a comprehensive assessment of the North-South dialogue. •  Work towards the formulation of a comprehensive international strategy to reverse the decline in ODA, to achieve the target of 0.7 per cent of GNP of developed countries by the end of the first decade of the twenty-first century and also within that target ensure to earmark 0.15 per cent of their GNP for the LDCs and to endeavour to reach the target of 0.20 per cent for the LDCs by the year 2000. •  Work towards outright cancellation of unsustainable debt of developing countries, and reaffirm the need of a just and lasting solution to the problem of the foreign debt of developing

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countries, which considers the structural causes of indebtedness and prevents the recurrence of this phenomena in the future. In this regard, we attach special priority to the creation of appropriate conditions worldwide to curb financial volatility, ensure the necessary institutional reforms and reactivate the financial flows towards the countries of the South, and other ways of financing for development. •  Welcome and fully support the holding of the Third UN Conference on the LDCs in 2001, as mandated by the UN General Assembly. In this context, we urge all countries, the international organizations, the Funds and Programmes and International Financial Institutions to effectively participate in the preparatory process for the Conference so that a meaningful outcome could be achieved for implementation. •  Work towards an enabling international economic environment conducive to full implementation of Uruguay Round agreements in particular the operationalization and strengthening of the measures relating to the special and differentiated treatment for developing countries and the GSP and proper functioning of all principles of free multilateral trading system including its universality. •  Work towards incorporating the agriculture sector within normal WTO rules, addressing the particular problems of predominantly agrarian economies, Small Island developing economies and net food importing developing countries. •  In order to enhance the incorporation of the agricultural sector within the WTO rules, the necessary measures should be taken so as to fully address the particular problems of predominantly agrarian developing economies, small island developing economies and net food importing developing countries. •  Pursue action to encourage the major economies of the North, particularly the G-8, to enhance coordination and coherence of their macroeconomic policies with development objectives of the South. •  Support reforms, which should lead to the emergence of a new financial architecture, that ensures full participation of the developing countries in the international economic policy decision-making and that ensure stability, transparency and democratic functioning of the international financial system. •  Work to ensure for the effective integration of all countries into the international trading system including improving supply side capabilities of developing countries especially the least developed among them, overcoming the debt problem and to create conditions in our countries to attract adequate financial flows, including ODA, and to ensure institutional reforms and reducing financial volatility. •  Work towards ensuring that rescheduling of debt or its cancellation is financed through additionality of resources and not at the cost of other forms of official development assistance. •  Work towards achievement of the universal membership of the World Trade Organization as soon as possible in order to strengthen the multilateral trading system. We strongly believe that appropriate assistance should be made available to developing countries seeking accession. They should be offered terms that neither exceed nor are unrelated to the commitments of developing country and LDC members of WTO. We urge that all WTO members refrain from placing excessive or onerous demands on applications from developing countries. We, therefore, stressed the need for a transparent, streamlined and accelerated accession process that is in keeping with WTO rules and disciplines. •  Invite UNCTAD in close cooperation with the Geneva Chapter to establish and pursue a programme to elaborate trade policy tools that promote the development dimension within multilateral trading system.

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•  Advocate a solution to the serious environmental problems, on the basis of the recognition of the ecological debt of the North and of the principle of common but differentiated responsibilities between developed and developing countries, highlighting the need to gain access under preferential terms to the appropriate financial resources and technologies in order to ensure a sustainable development as provided in Agenda XXI. (2)  Restore the central role of the UN in global economic issues, development and international cooperation •  Invite the Chairman of the Group of 77 to include the issue of the role of the UN in global economic issues, development and international cooperation in the draft agenda of the annual ministerial meetings of the Group of 77 as well as in the agenda of the Chapters meetings. •  Call upon UNCTAD, in view of the significant expansion of the activities of transnational corporations (TNCs), including the increasing number of mega-mergers among corporations in developed countries as well as cross border acquisitions in the developing countries, to monitor these activities and analyze their economic, social and environmental implications for the South with a view to maximizing their potential benefits and minimizing their possible negative effects. •  The contribution of the transnational corporations (TNCs) to sustained economic growth and sustainable development is determined by their global strategies characterized by the search for increased competitiveness and ever-higher profits. Such a situation is not necessarily consistent with job creation and the realization of development objectives in many developing countries. In this context, with a view to achieving a balance between the business plans of TNCs and the developmental objectives of developing countries, we call upon UNCTAD and ILO, within their respective mandates, to study the impact of TNCs activities on unemployment as well as on the competitiveness of Small and Medium Enterprises in developing countries. We also call on the TNCs to integrate their development objectives of host developing countries in their business strategies.

VI.  INSTITUTIONAL FOLLOW-UP 1.  While the establishment of a secretariat of the Group of 77 remains relevant as recommended by various G-77 ministerial meetings and Chapter meetings, the articulation of a rational structure for the management of the affairs of the G-77 is a critical priority. Although the present loose arrangement has succeeded in achieving a reasonable level of support to the activities of the Chairman of the Group of 77 and the members of the Group of 77 as a whole, it is evident that given the multi-faceted nature of the challenges now facing the developing countries, and the expansion of UN agendas during the last two decades, the time has come for us to adopt a more structured arrangement for managing the affairs of the Group. To this end, decide to strengthen the existing arrangement of the Office of the Chairman of the Group of 77 in New York, as provided for two decades ago by the Caracas Programme of Action and recommended by the Twenty-first Annual Ministerial Meeting of the Group of 77 held in September 1997 in New York and the 26th Meeting of the Chairmen/Coordinators of the G-77 Chapters held in Geneva in April 1999, aiming at upgrading the current structures of the Office of the Chairman of the Group of 77 into a compact executive secretariat. 2.  Decides, with a view to enabling the Chairman of the Group of 77 to undertake as soon as possible the process of strengthening the current structures of the Office of the Chairman of the Group of 77, an annual contribution of US$5,000 and to invite those countries in position to contribute more to do so. 3.  Invite the Chairman of the Group of 77 to review within an appropriate timeframe the complementaries and harmonization of various programmes of Action of South-South cooperation

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adopted by various South-South groupings and organizations. To harmonize the South’s position there is a need to explore areas where synergies can be realized taking into account the Programme of Action tabled by the Non-Aligned Movement, Panel of Economists and other groups from the South. 4.  Decides to establish a special fund as a matter of urgency with a target of at least US$10 million to further assist the full implementation and follow up of the decisions adopted by the South Summit. The G-77 member countries, other developing countries, developed countries, relevant UN organizations, and other relevant organizations and other development partners such as private sector and foundations can make voluntary contributions to the fund. In this regard, invite the Chairman of the G-77 to report to the forthcoming G-77 ministerial meeting on the terms of reference and operating modalities of the fund. 5.  Invite the annual meeting of the Chairmen/Coordinators of Chapters of the Group of 77 in the year 2000 to consider ways and means to improve coordination mechanisms among the Chapters, with a view to strengthening existing arrangements for the advancement of the positions of the Group in the UN system, and to report on its deliberations and consultations to the upcoming Ministerial Meeting of the G.77. 6.  Decide to establish a research programme including through the establishment of systematic links with research institutions in the South which have the potential to carry out extensive analyses directly relevant to the work of the G-77, while stressing the need to maximize the work of the existing research institutions of the South in order to enhance the institutional research capacity of the Group of 77. 7.  Decide to establish Groups of Experts in their individual capacities, to review and comment upon the agendas of major multilateral conferences with a view to providing guidance on the objectives and goals of the developing countries, as should be reflected in the outcome of such fora. 8.  Invite the Chairman of the Group of 77 to establish a monitoring, analysis, identification, management, follow-up and evaluation mechanism to ensure effectiveness of its South-South projects and initiatives implemented such as mid-term reviews, identification of time frames for implementation of projects in the fields of economic and social development, capacity building and human resources development. This mechanism should consider the analysis of the cooperation initiatives that incorporate the portfolio of projects, provided for in chapter IV of South-South cooperation (numeral 4, bullet 10) and of the various sources of possible financing, with the aim of identifying and managing the procurement of funds for their implementation. This would include opportunities that are available within our countries, both in hard currency and local currency, in technical services, in kind, etc.; and those made available by inter-governmental organizations; regional development banks; donors from developed countries; non-governmental organizations and foundations; and the private and academic sector. 9.  Invite the Committee of Experts of the Perez-Guerrero Trust Fund (PGTF) in close coordination with the Chairman of the G-77 to make an annual allocation of resources from each project cycle of the PGTF to support the implementation of the South Summit decisions in various relevant sectors taking into account the guidelines for the utilization of the PGTF. 10.  Decide to convene the Second G-77 South Summit in the year 2005 and request the President of the South Summit to ensure the effective implementation of decisions and activities in the period between this Summit and the Second G-77 South Summit in the year 2005.

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2.  Group of 77 Second South Summit, Doha, Qatar, 12–16 June 2005 a.  The Doha Declaration 1.  We, the Heads of State and Government of the Member Countries of the Group of 77 and China, gathered in Doha, Qatar for the Second South Summit, from 14 to 16 June 2005, fully convinced of the imperative to continue to act in solidarity and unity for a peaceful and prosperous world that responds to our aspirations, reaffirm our full commitment to the spirit and principles of the Group of 77 and China, and to the protection and promotion of our collective interests in genuine international cooperation for development. 2.  We reaffirm the Havana Declaration and the Programme of Action of the First South Summit, held in Havana, Cuba from 12 to 14 April 2000 and call for its full implementation. 3.  We reaffirm that in our endeavours we are guided by all the principles and purposes of the United Nations Charter and by full respect for the principles of international law. To this end we uphold the principles of sovereignty and sovereign equality of States, territorial integrity and non intervention in the internal affairs of any State; take effective measures for the suppression of acts of aggression or other breaches of peace and encourage the settlement of international disputes by peaceful means in such a manner that international peace and security, and justice, are not endangered; refrain in international relations from the threat or use of force against the territorial integrity or political independence of any State or in any other means inconsistent with the purposes of the United Nations; develop friendly relations based on respect for the principle of equal rights and self determination of peoples; achieve international cooperation in solving international problems of an economic, social, cultural or humanitarian character; and in promoting and encouraging respect for human rights and fundamental freedoms for all without distinction as to race, sex, language or religion. 4.  We emphasize that, while developing countries are committed to undertaking their international obligations, these undertakings may impose high costs, and that given the differences in the levels of development and the ability of countries to assume obligations, it is imperative that identical obligations are not forced on unequal participants. We further emphasize the need to integrate the development dimensions into international rule making and that the international community must remain sensitive to this and take into account the need for flexibility and national policy space for countries while assuming international commitments. 5.  We firmly reject the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries and reiterate the urgent need to eliminate them immediately. We emphasize that such actions not only undermine the principles enshrined in the charter of the United Nations and international law, but also severely threaten the freedom of trade and investment. We, therefore, call on the international community to adopt urgent and effective measures to eliminate the use of unilateral coercive economic measures against developing countries. 6.  We reaffirm the role of South-South cooperation in the overall context of multilateralism, as a continuing process vital to confront the challenges faced by the South, and as a valuable contribution to development, and the need to further strengthen it, including through enhancing the capacities of the institutions and the mechanisms that promote such cooperation. 7.  We welcome the Marrakech Declaration and the Marrakech Framework for the Implementation of South-South Cooperation, which reaffirmed the commitment of the members to South-South cooperation and identified specific measures and initiatives to achieve this goal.

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8.  We are convinced that dialogue among civilizations should be a continuous process and that, in the current international environment, it is not an option but an imperative as a sound and productive tool to promote development to create a better life for all. 9.  We recognize that the respect for religious and cultural diversity in an increasingly globalizing world contributes to international cooperation, promotes enhanced dialogue among religious, cultures and civilizations, and helps to create an environment conducive to exchange of human experience. 10.  We acknowledge that good governance and the rule of law at the national and international levels are essential for sustained economic growth, sustainable development and eradication of poverty and hunger that, inter alia, sound economic policies, solid democratic institutions responsive to the needs of the people, respect for all human rights, including the right to development, equity and transparency in the international financial, monetary and trading systems and full and effective participation of developing countries in global decision making and norm setting should also be pursued. 11.  We recognize that the attainment of development is an objective of all stakeholders, including civil society, NGOs and private sectors. While recognizing the primary responsibility of governments in the formulation and implementation of national strategy and policies for sustainable development, we emphasize the need to make efforts towards coordination and participation of all sectors of the society, according to domestic law, national priorities and national sovereignty, to enhance their contribution to sustained economic growth and sustainable development of our countries. 12.  We recognize the increasing importance of South-South trade and economic cooperation; and the changing context of North-South interdependence and terms of engagement. In this context, we call for a more energetic effort to deepen and revitalize South-South cooperation to take advantage of the new geography of international economic relations while recognizing this cooperation as complementary to and not substitute for North- South cooperation. 13.  We emphasize that it is essential to adopt appropriate measures to overcome the technological gap between the developing and developed countries and to work towards arrangements that facilitate the processes of technology transfer. 14.  We underscore the continuing relevance of the outcomes of all major United Nations conferences and summits and the commitments towards their implementation as constituting a coherent development agenda, and in this regard call on all countries to fulfill and implement all the commitments made at these conferences and summits. 15.  We welcome the convening of the high level plenary meeting of the General Assembly, to be held in New York in September 2005, and urge the High-level Event to give high priority to development with a view to bring about a more equitable international economic system, and to enable developing countries to achieve their development objectives, and in this regard, further urge the High-level plenary to undertake to: i.  Stress that each country has the sovereign right to determine its own development priorities and strategies and we call upon the international community to categorically reject any conditionality in the provision of development assistance. ii.  Substantially increase resource flows to improve and promote domestic productive capacity of developing countries toward the achievement of the Millennium Development Goals and other international development goals, and in this regard emphasize the need to urgently meet the internationally agreed ODA target of 0.7 per cent of donor countries’ GNI, and within that target, to earmark 0.15 per cent to 0.20 per cent for the LDCs, and, in order to ensure the efficacy of these efforts, the implementation of ODA commitments should be undertaken in a consistent, expeditious and transparent manner and also urge that the

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provision of official aid should respect the national development priorities of developing countries, and that it should be provided without conditionalities. iii.  Target, in the context of development assistance, the improvement of the institutional and physical infrastructure facilities of developing countries to improve their environment for both domestic and foreign investment, thereby supporting their beneficial integration in the global economy. iv.  Pursue the efforts to identify innovative sources of financing for development, capable of providing funding in a stable, predictable and on an additional basis to assist developing countries in the promotion of economic development and hunger and poverty eradication. In this regard, due consideration should be given to all work being undertaken on this issue, particularly by the Technical Group on Innovative Financing Mechanisms established in the framework of the world leaders meeting on ‘Action on Hunger and Poverty’, convened by the President of Brazil, Luiz Inácio Lula da Silva, which was held in New York in September 2004. v.  Operationalize the World Solidarity Fund and call upon donor countries, countries in a position to do so, international organizations, the private sector and individuals to contribute to the Fund in order to allow it to contribute to the achievement of the internationally agreed development goals including the MDGs, particularly poverty eradication. vi.  Emphasize the urgent need for the international community to adopt an effective, comprehensive, equitable, durable, and development-oriented solution to the debt problems of developing countries, particularly through total debt cancellation and increased concessional financial flows, as well as through debt swaps for sustainable development. vii.  Provide debt relief to all developing countries, including debt cancellation to HIPC, as well as extending the HIPC initiative, and resolving the debt problems of LDCs, low- and middle-income developing countries that are not eligible to debt relief under the HIPC; and to explicitly link debt relief to the national development, plans and efforts aimed at achieving the internationally agreed development goals including the MDGs, as well as other development goals. There should also be an undertaking to review the debt sustainability criteria. viii.  Promote an open, universal, equitable, rule-based, predictable and non-discriminatory multilateral trading system that gives priority to the development dimension. ix.  Ensure that the comparative advantage of developing countries is not undermined by any form of protectionism including the arbitrary and abusive use of non-tariff measures, non-trade barriers and other standards to unfairly restrict access of developing countries products into developed countries markets and reaffirm that developing countries should play an increasing role in the formulation of, inter alia, safety, environmental and health standards. x.  Emphasize the importance of the strengthening and attainment of the universality of the WTO membership and, in this context, call for accelerating the accession process without political impediments, in an expeditious and transparent manner and with full observance of the principles of special and differential treatment for developing countries in particular LDCs applying to the WTO. xi.  Emphasize that enhanced market access for goods and services of export interest to developing countries to the markets of developed countries, as well as special and differential treatment for the developing countries, balanced rules and well-targeted sustainably financed technical assistance and capacity-building programmes for developing countries are needed for the realization of the development dimension highlighted in the Doha Work Programme, and commit to its successful conclusion consistent with the development needs and priorities of developing countries. In this regard we further emphasize that the High-level plenary meeting of the General Assembly should give a strong message and provide clear direction for an expeditious conclusion of the Doha Round, which should ensure that the development

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dimension is kept in focus and should bring much needed benefits to developing countries in the area of trade. xii.  Emphasize the need to provide an immediate solution to the question of commodities, and in this context, stress the need for a more effective international arrangement to address the problems of weak and volatile commodity prices, which pose a serious constraint on sustained development in a majority of developing countries. xiii.  Work expeditiously towards integrating the development dimensions in the rule making in the intellectual property regime that is development oriented and that facilitates the transfer of technology and knowledge to developing countries, and, in this context, to undertake to also work towards a legally binding international instrument on the preservation, protection and promotion of traditional knowledge and genetic resources. xiv.  Call for accelerating the negotiations on the development-related mandate concerning the TRIPS Agreement in the Doha Ministerial Declaration, especially the amendments of TRIPS Agreement in order for intellectual property rules to fully support the objectives of the convention on Biological Diversity as well as Trade-Related Aspects of Intellectual Property Rights and Public Health to address the problems afflicting many developing including least developed countries, especially those resulting from HIV/AIDS, tuberculosis, malaria and other epidemics. xv.  Reform global economic and financial governance by ensuring effective participation of developing countries in international decision making and norm setting processes as well as by ensuring that global policies and processes in finance, trade, investment and technology are development oriented. xvi.  Enhance the capacity of the U.N.  funds, programmes and agencies through increased, untied, unconditional and predictable contributions to their core resources to enable them to contribute more substantially to development-related activities, while simultaneously strengthen the intergovernmental oversight, particularly, with the involvement of developing countries, to ensure their responsiveness to development priorities and needs of developing countries. 16. We welcome the designation of the year 2006 as the International Year of Deserts and Desertification, and emphasize that the UNCCD constitutes an important tool for hunger and poverty eradication and a means to contribute to attaining the internationally agreed development goals including the MDGs. 17.  We emphasize the need for ECOSOC to give due consideration to the needs and interests of developing countries in its consideration of the outcomes of its functional commissions and subsidiary bodies, particularly those related to the achievement of the MDGs, in the context of the preparation of inputs to their preparatory process of the High-level plenary meeting of the General Assembly. 18.  We stress the need for the Second High-level Dialogue on Financing for Development, which is scheduled to be convened at the U.N. Headquarters on 27-28 June 2005, to also analyze the impact of structural conditionalities in our countries. 19.  We stress the need to strengthen UNCTAD, the focal point within the United Nations for the integrated treatment of trade and development issues, as a vital component of the international economic system, to fully implement its mandate for policy analysis and policy advice, its indispensable role for forging consensus building on development matters, and its activities in technical assistance and capacity building. In this regard, there is a need to ensure the full implementation of the Sao Paulo Consensus, and to build on it for an even stronger development focused mandate in UNCTAD XII. 20. We stress the need for international rules to allow policy space and policy flexibility for developing countries, as they are directly related to the development strategies of national

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governments. We further emphasize the need for policy space to formulated development strategies that take into account national interests and differing needs of countries which are not always taken into account by international economic policy making in the process of integration with the global economy. 21.  We recognize the intergovernmental nature of the United Nations and the universal, representative and democratic character of the General Assembly. We also reaffirm the pertinent provisions of the Charter relating to the General Assembly and the necessity to ensure full respect for the role and responsibility of the General Assembly as enshrined in the Charter. In this regard, we strongly support the reaffirmation in the Millennium Declaration of the central position of the General Assembly as the chief deliberative, policy-making and representative organ of the United Nations as reiterated in UNGA resolution 58/317. 22.  We attach high priority to the reform of the United Nations with the objective to strengthen the Organization, so that it can efficiently respond to the current and future challenges affecting the international community, in particular those concerns and interests of developing countries which constitute the vast majority of its membership. We reaffirm that this process should be aimed at strengthening multilateralism, providing the Organization with a substantive capacity to fully and effectively meet the purposes and principles enshrined in the UN Charter, and at consolidating its democratic character and its transparency in the discussion and implementation of decisions of Member States. We stress the importance of mainstreaming development dimension in the ongoing process of reform of the United Nations, bearing in mind the aim of enabling the full participation of peoples from the South in the international decision and rule-making economic processes and ensuring their access to and enjoyment of the benefits of international economy. These objectives can only be achieved with a real political will. 23.  Globalization presents opportunities, challenges and risks for developing countries. We note with deep concern that the processes of globalization and liberalization have produced uneven benefits among and within countries and that the world economy has been characterized by slow and lopsided growth and instability. The income gap between developed and developing countries has widened, and poverty has increased in many developing countries. We therefore believe that there is a need for global strategy to prioritize the development dimension into global processes in order for developing countries to benefit from the opportunities offered by globalization. An enabling external economic environment for development requires greater coherence between the international trading, monetary and financial systems. 24.  We welcome the report of the World Commission on Social Dimension of Globalization and urge the General Assembly and other organs and bodies of the UN system to give full consideration to the proposals and recommendations contained therein with a view to contributing to make globalization inclusive and equitable for all world’s people bearing in mind the conditions of developing countries, national development needs, priorities and policies. 25.  We believe that restrictive business practices and monopoly rights exercised by global corporations and other entities often impede innovation, flow of information and technology, and that a major component of good governance at the international level should be good corporate governance and corporate social responsibility, which should address issues such as anti-competitive practices of larger market players including trans-national corporations; a fair balance between holders of intellectual property rights and public policy and societal goals; the need for access to knowledge, transfer of technology and FDI. 26.  We reaffirm also the urgency, subject to national legislation, of recognizing the rights of local and indigenous communities that are holders of traditional knowledge, innovations and practices and, with the approval and involvement of the holders of such knowledge, innovations and practices, of developing and implementing benefit-sharing mechanisms on mutually agreed terms for the use of such knowledge, innovations and practices.

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27.  We reaffirm that South-South trade should be enhanced and further market access from developing countries must continue to stimulate South-South trade. 28.  We welcome the launch of the Third Round of the GSTP as an important instrument to stimulate South-South trade. In this regard, we invite all member countries of the GSTP to conclude the Third Round of GSTP by 2006 and encourage other members of the Group of 77 and China to consider participating in the GSTP. 29.  We reiterate the decision of the First South Summit to strengthen cooperation in the monetary and financial fields and in this regard resolve to support South-South initiatives in this area. 30.  We stress the need to strengthen the activities covered by the Second Account of the Common Fund for Commodities to support capacity building activities of commodity-dependent countries to diversify exports and enhance South-South trade through, financial and technical assistance, international assistance for economic diversification and sustainable resource management, and address the availability of commodity prices and declining terms of trade. 31.  We recognize the important nexus between international migration and development and the need to deal with this issue in a coordinated and coherent manner with a view to addressing the challenges and opportunities that migration presents to countries of origin, destination and transit, thus deserving effective international cooperation in order to harness its positive effects. 32.  We stress the importance of strengthening the knowledge and, scientific and technological capacities of developing countries, including the requisite upgrading of their human resources as a vital condition for attaining sustainable development and commit to promote and strengthen our cooperation in this regard. We stress in particular the need to increase the capacity of developing countries in science and technology, including in information and communications technology and new and emerging technologies and, in this context, will work towards the effective participation of developing countries in all related fora, including the World Summit for Information Society to be held in Tunisia in November 2005. 33.  We welcome the creation of the Digital Solidarity Fund within the framework of the World Summit on Information Society and note with satisfaction the public and private contributions made for its financing. 34.  We resolve to take the necessary measures to combat corruption at both national and international levels and to ensure that illegally acquired and transferred funds and assets and their proceeds deposited in foreign banks are returned to the countries of origin. 35.  Welcome the progress made by Venezuela to establish the International Humanitarian Trust Fund with the first deposit of US$30 million and call for support to this initiative to assist developing countries in their efforts to improve the welfare and standard of living of their people. 36.  We welcome and applaud the initiative of the State of Qatar to establish and host ‘The South Fund for Development and Humanitarian Assistance’ and the donation of US$20 million to assist the countries of the South in their developmental efforts in economic, social, health and educational development, and to address the problems of hunger, poverty and human catastrophes. We also express appreciation to the Governments of China and India for their contribution of US$2 million each to the Fund. In this context, we invite other countries in a position to do so to contribute to the Fund. 37. We note with concern the increased incidence of natural disasters and their destructive effects on the development of developing countries, in particular small and vulnerable economies, and we call for an increased international assistance in the creation and strengthening of national, subregional, regional and international mechanisms for prevention, preparedness and mitigation of natural disasters and their effects, including through early warning systems as well as long-term rehabilitation and reconstruction. In this regard, we call on the UN system and the international community to work in close coordination to fulfill the commitments established to

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assist affected and disaster-prone countries, for their Governments and relevant authorities to receive the early-warning information in an unrestrictive and timely manner for their immediate and effective utilization and diffusion. We further call upon the UN system and the international community to support the implementation of the Hyogo Framework for Action 2005-2015 in disaster-prone developing countries, including through financial and technical assistance, addressing debt sustainability, technology transfer, and public-private partnerships, and encourage North-South and South-South cooperation. 38.  We are concerned with emerging new diseases such as SARS, Avian Influenza and other virus-related diseases that appear in different parts of the world and can cause an epidemic within a short period of time, as well as adversely affect social and economic well-being of our peoples. In this context, we recognize the need to coordinate our efforts at the national, regional and international levels to develop an effective response to the spread of those life-threatening diseases and underscore the importance of a comprehensive surveillance network including a veterinary network and mechanisms to promote rapid, transparent and accurate exchange of information and provide early warning. 39.  We remain deeply concerned that HIV/AIDS, Malaria and Tuberculosis and other communicable diseases continue to threaten the achievement of the economic and social development of developing countries and call on international community to assist developing countries, in particular LDCs in expanding and strengthening programmes related to those diseases. We call on developed countries and other countries in position to do so, to increase their contributions to the Global Fund to Combat HIV/AIDS, malaria and tuberculosis. We further call for the international cooperation, including South-South cooperation to assist in undertaking concrete measures to ensure prevention, treatment, care and support to those infected and affected by HIV/ AIDS and access to drugs at affordable costs to those in need. 40.  We recognize that gender equality and the full participation of women in all spheres are integral to building a just society for all and must be at the centre of all economic and social development. We recommit ourselves to the urgent goal of achieving gender equality, to eliminating discrimination and violence against women and to ensuring their full participation in all areas of life and at all levels. 41.  We stress the need to address in a holistic and comprehensive manner the sustainable development of indigenous and local communities as well as rural communities taking into account that in many developing countries they form part of some of the poorest communities. 42.  We recognize that addressing the Special Needs of Africa requires direct support for the programmes drawn up by African leaders within the framework of NEPAD and in this regard, notes that while there has been significant international recognition of the need to support NEPAD initiatives, limited resources have been allocated by the international community to projects and programmes identified within the various sectors. Such support is crucial for the promotion of regional integration and cooperation and for the achievement of the internationally agreed development goals including the MDG’s, which are indispensable for Africa’s sustained economic growth and sustainable development. We call upon the multilateral and bilateral donors to achieve and implement their concrete commitments to support NEPAD programmes to enable Africa to address its economic and social challenges. 43.  We welcome the establishment of the New Asian-African Strategic Partnership (NAASP) and its Plan of Action adopted at the Asian-African Conference held in Jakarta, Indonesia on 22-23 April 2005 as an important building block in further strengthening South-South cooperation. 44.  We recognize the important role South-based regional, sub-regional and interregional mechanisms and arrangements are playing in promoting South-South cooperation including triangular cooperation and call upon the international community to continue its active support.

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45.  We are deeply concerned by the continued marginalization of the LDCs in the global economy and the continued deterioration of their economic and social conditions in spite of the commitments made by development partners at the Third UN Conference on LDCs in May 2001. In this regard we urge the developed countries and relevant organizations of the U.N.  system, including the Bretton Woods institutions to increase concerted efforts and adopt speedy measures for meeting, in timely manner, the goals and targets of the Brussels Programme of Action in favor of the LDCs for the decade 2001-2010. 46.  We recognize and acknowledge the special needs of the landlocked developing countries within a New Global Framework for transit transport cooperation for landlocked and transit developing countries and reaffirm our continued support for their endeavours in every regard, particularly in their efforts to achieve the Millennium Development Goals and the implementation of the Almaty Programme of Action. 47.  We remain concerned by the special problems and vulnerabilities of small island developing states (SIDS) and, we express concern that, although great efforts have been undertaken by the SIDS at the national and regional level, there has not been commensurate support at the international level. In this regard, we call for the strengthening of efforts at the international level in the implementation and follow-up of the Mauritius Strategy adopted at the United Nations International meeting, which undertook a full and comprehensive review on the implementation of the Barbados Programme of Action for the Sustainable Development of the Small Island Development States. 48.  We advocate the peaceful resolution of conflicts through dialogue and welcome the progress made in the resolution of conflicts in Africa. In this context, we must address the root causes of conflict and underline the intrinsic link between sustainable peace and development and in this regard we call for the substantial support of the international community to ensure durable peace and the transition to sustainable development. 49.  We emphasize the need to continue to pay special attention to the situation of developing countries emerging from conflict, in particular LDCs, with a view to enabling them to rehabilitate and reconstruct, as appropriate, their political, social and economic infrastructures and to assist them in achieving their development objectives. 50.  We also express dismay at the increasing number of children involved in and affected by armed conflict, as well as all other form of violence including domestic violence, sexual abuse and exploitation, trafficking in persons and organs. We support cooperation policies aimed at strengthening the national capacities to improve the situation of those children and to assist in their rehabilitation and reintegration into society. 51.  We strongly condemn all acts, methods and practices of terrorism in all their forms and manifestations as criminal and unjustifiable, wherever and by whomsoever committed them and in this regard, we call upon all States to adopt further measures in accordance with the Charter of the United Nations and the relevant provisions of international law, including international human rights and humanitarian law, to prevent terrorism and to strengthen international cooperation in combating terrorism. 52.  We note with deep concern the increase of all kinds of criminal activities, including illicit traffic of arms, drugs and other products which are used to foster and finance organized crimes and all types of transnational crimes, which continue to be a major factor of instability and a threat to development. In this context, we are also deeply concerned by the trafficking of women and children, which is not only an offense against human dignity, but also a violation of International Law. We call upon all countries to join the multilateral effort of the international community to develop mechanisms that will strengthen cooperation in terms of prevention and elimination of these activities, so that the stability and prosperity of all economies and societies can be guaranteed. In this regard, we take note of the adoption of the Bangkok Declaration at the

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Eleventh United Nations Congress on Crime Prevention and Criminal Justice on 25 April 2005 which aims to improve international cooperation in this matter. 53.  We express concern with the lack of or insufficient transparency and accuracy of travel advisories against developing countries. We call for greater consultation between States and the issuance of travel advisories in order to ensure accuracy, while minimizing the adverse effects of such advisories in national development efforts such as in attracting tourists and foreign investment. 54.  We call upon the Government of the United States to put an end to the economic, commercial and financial embargo against Cuba which, in addition to being unilateral and contrary to the UN Charter and international law, and to the principle of neighborliness, causes huge material loses and economic damage to the people of Cuba. We urge strict compliance with the resolutions 47/19, 48/16, 49/8, 50/10, 51/17, 52/10, 53/4, 54/21, 55/20, 56/9, 57/11, 58/7 and 59/11 of the United Nations General Assembly and express deep concern over the widening of the extra-territorial nature of the embargo against Cuba and over continuous new legislative measures geared to intensify it. We therefore express concern and reject the new measures recently implemented by the US government aimed at tightening the embargo. Those measures constitute a violation of Cuba’s sovereignty and a massive violation of the rights of its people. 55.  We express deep concern over the economic and social impact against the Syrian people of unilateral sanctions against Syria and call upon the United States to null and void the so-called ‘Syria Accountability Act’, and to resort to dialogue between the two countries based on respect and mutual interest for the best of the two nations and their peoples. 56.  We also express our deep concern over the air attack against the El-Shifa Pharmaceuticals Factory in the Sudan on 20 August 1998, and its negative impact on that country’s economic and social development. We express our support and solidarity with the Sudan for its demand for a just and fair consideration of the matter by the United Nations on the basis of international law. 57.  We call upon the international community to provide the necessary assistance to landmine clearance operations, as well as to the rehabilitation of the victims and their social and economic integration into the landmine affected countries. In this connection we welcome the creation of the Forum of Mine Affected Countries, FOMAC, an instrument aimed at strengthening international cooperation towards achieving the objective of a world free from landmines. We express concern over the residues of the Second World War, in particular in the form of landmines which cause human and material damage and obstruct development plans in some developing countries. We demand that the States primarily responsible for laying the mines outside of their territories assume responsibility for the landmines, cooperate with the affected countries to get rid of them, and contribute to defraying the costs of clearance and provide compensation for any ensuing losses and for reclaiming the effected areas for productive purposes. 58.  We affirm the need for a just solution to the question of Palestine in all its aspects in accordance with International law and relevant United Nations resolutions for the achievement of a comprehensive and lasting peace in the Middle East. In this regard, we reaffirm the right of the Palestinian people to self-determination, including the right to establish their independent State of Palestine, with East Jerusalem as its capital. We stress that Israel’s unlawful practices in colonizing Palestinian land through, inter alia, the construction of the Wall, which is intricately linked with the illegal Israeli settlement campaign in the Occupied Palestinian Territory, including East Jerusalem, constitute breaches of international law and are an impediment to the establishment of a viable Palestinian State. In this regard, we recognize the importance of the Advisory Opinion of the International Court of Justice, rendered on 9 July 2004, and demand the full implementation of General Assembly resolution ES-10/15 of 20 July 2004. We also call for the complete dismantlement and immediate end of all illegal Israeli settlement activities in the Occupied Palestinian Territory, including East Jerusalem, and in the occupied Syrian Golan. We also reaffirm our conviction that the Israeli occupation remains the main obstacle to the efforts to

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achieve a sustainable development and sound economic environment in the Occupied Palestinian Territory, including East Jerusalem, and in the occupied Syrian Golan. Further, we affirm the necessity of achieving a comprehensive, just and lasting peace in the Middle East in accordance with Security Council resolutions 242 (1967), 338 (1973), 425 (1978), the principle of land for peace, the terms of reference of the Madrid Peace Conference, the Roadmap, the Beirut Arab Peace Initiative and thus the withdrawal of Israel from all the Occupied Palestinian Territory, including East Jerusalem, the occupied Syrian Golan to the 4 June 1967 line, and the remaining occupied Lebanese territories. 59.  We support the inalienable right of Lebanon to utilize its waters in accordance with the international law, in particular to ensure the social and economic needs of its population in the liberated areas and villages. We call on Israel to end its air violations of Lebanese sovereignty and other violation that severely damage the security situation which is a critical factor in promoting the tourism industry and the economy. We also call on Israel to release all the Lebanese prisoners and detainees in the Israeli prisons and we call on Israel to provide the United Nations with all the maps and information on the location of the landmines that it has planted in the south of Lebanon during its occupation which are hindering the development and rehabilitation of the south of Lebanon and preventing the agricultural exploitation of vast areas of rich agrarian land and we express support for the assistance in the demining efforts in the south of Lebanon. 60.  We reaffirm our commitment to the sovereignty, unity and territorial integrity of Iraq and in this context we welcome the establishment of the sovereign Iraq government. We condemn all acts of terrorism that adversely affect the people of Iraq and risk to destabilize the political process. We urge the donors and the international community to take immediate steps to meet the obligations pledged in the Madrid Conference (2003) and to increase their contributions in the reconstruction and development of the Iraqi economy. We welcome the commitment of the Paris Club to reduce substantially Iraq’s sovereign debt and urge the other creditors to take similar decisions. We stress the importance of bringing to justice all those in the leadership of the previous Iraqi regime who have committed war crimes and crimes against humanity to the Iraqi people and against the peoples of Iran and Kuwait. 61. We welcome the positive outcome of the Intergovernmental Authority on Development (IGAD) led peace process for Somalia, the formation of federal institutions of governance; reaffirm our respect for the unity, sovereignty and territorial integrity of Somalia. We strongly call upon the international community to provide urgent and adequate support in disarmament, demobilization and reintegration (DDR), economic recovery and rehabilitation, and the further promotion of the national reconciliation process. 62.  We welcome the economic and technical assistance provided and promised by the neighbors of Afghanistan and countries of the region to Afghanistan, a country affected by a quarter century of armed conflict. These efforts are among the best example of South-South cooperation. We call for continued international assistance to Afghanistan in its efforts to combat cultivation of opium and trafficking of drugs. 63.  We reaffirm the need for the Government of the Argentine Republic and the Kingdom of Great Britain and Northern Ireland to resume negotiations in accordance with the principles and the objectives of the United Nations Charter and the relevant resolutions of the General Assembly, in order to find, as soon as possible, a peaceful solution to the sovereignty dispute relating to ‘the Question of the Malvinas Islands’, which seriously damages the economic capacities of the Argentine Republic. 64.  We decide to convene the Third South Summit in Africa in the year 2010. 65.  We express our appreciation to the government and the people of the State of Qatar for all their kind efforts in hosting and organizing the Second South Summit. 66.  Finally, we adopt the Doha Plan of Action of the Second South Summit and call for its implementation.

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b.  The Doha Plan of Action We, the Heads of State and Government of the Group of 77 and China, meeting in Doha, Qatar, from 12 to 16 June 2005, on the occasion of the Second South Summit of the Group of 77; and guided by the provisions of the Havana Programme of Action adopted by the First South Summit of the Group of 77, held in Havana, Cuba, from 10 to 14 April 2000, and reiterating their continuing relevance; Having reviewed the implementation of the Havana Declaration and Plan of Action and the achievements of the Group of 77, as well as the challenges facing it in the promotion of development; Having assessed the increasingly complex and fast changing world economy, the evolving unjust and inequitable international economic order and the resulting new and multifaceted challenges; Welcoming the conclusions and recommendations of the Tenth Session of the Intergovernmental Follow-up and Coordination Committee (IFCC-X) on Economic Cooperation among Developing Countries held in Tehran, Islamic Republic of Iran, from 18 to 23 August 2001, and of IFCC-XI held in Havana, Cuba, from 21 to 23 March 2005; Welcoming also measures and initiatives adopted by the High-level Conference on Science and Technology held in Dubai, United Arab Emirates, from 27 to 30 October 2002, and the High-level Forum on Trade and Investment held in Doha, Qatar, from 5 to 6 December 2004; Welcoming further the Marrakech Declaration and the Marrakech Framework for the Implementation of South-South Cooperation adopted at the High-level Conference on South-South Cooperation, held in Marrakech, Morocco, from 16 to 19 December 2003; Convinced that many goals have been accomplished since the First South Summit, but that the full and effective implementation of the Havana Programme of Action requires the necessary resources and the collective political commitment of the Members of the Group; Stressing the need, in line with the Havana Programme of Action, to intensify bilateral, sub-regional, regional and inter-regional cooperation among developing countries in all fields; Emphasizing the necessity to continue strengthening the unity and solidarity among countries of the South, as an indispensable element in the defense of our right to development and for the creation of a more just and equitable international order and for preserving and nurturing the policy space necessary for developing countries to pursue their development objectives; Reaffirming the positive approach that guides the work of the Group of 77; Acknowledging the need to accelerate the implementation process of actions agreed by the South; Reaffirming the urgent need to address the special concerns of the Least Developed Countries by accelerating the implementation of the Programme of Action for LDCs for the Decade 2001-2010; Decide to adopt the Doha Plan of Action and commit ourselves to ensure its implementation as follows:

A. Globalization 1.  To work towards a common strategy for securing national policy space for developing countries in all areas particularly in trade, investment, financial and industrial policy, which allow them to adopt the most appropriate measures and actions suitable to their national interests and priorities, and to realize their right to development. 2.  To recognize that reliance on market mechanism alone is insufficient to meet the challenge of development in a globalizing world economy and to achieve the internationally agreed development goals, including the MDGs.

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3. To work with the international community towards good governance of globalization by addressing the deficit of democracy and enhancing full and effective participation of developing countries in international economic decision making and norm setting, as well as enhancing transparency in the international financial, monetary and trading systems. 4.  To call for greater coordination among international institutions and agencies particularly those dealing with development, finance, monetary and trade issues to promote greater coherence in their policies with a view to making them more development-oriented. 5.  To request UNCTAD and the South Centre to explore in consultation with Member States through their research and analytical work ways and means to operationalize the concept of policy space in international economic relations including in all relevant international and multilateral forums. 6.  To welcome the report of the World Commission on Social Dimension of Globalization and urge the General Assembly and other organs and bodies of the UN system to give full consideration to the proposals and recommendations contained therein with a view to contributing to make globalization inclusive and equitable for all world’s people bearing in mind the conditions of developing countries, national developments needs, priorities and policies. 7.  To work to ensure that programmes and policies designed in the context of globalization fully respect the principles and purposes of the United Nations Charter and International Law, particularly as they relate to equality among States, respect for the independence of States, national sovereignty, territorial integrity and non-interference in the internal affairs of States, and to stress that those principles and purposes inspire our full commitment to multilateralism and the search for a more just and equitable international economic system that offers opportunities to raise the standard of living of our peoples. 8.  To promote within the WTO a fair, equitable and rules-based trading system that is inclusive and gives priority to the development dimension and, as a first step, in the context of the Sixth Ministerial Conference in December 2005 in Hong Kong, Special Administrative Region of China, to maximize the benefit of increasing participation of developing countries in international trade, and to that end take action: (i) to achieve the fullest realization of the development mandate of the Doha Ministerial Declaration and the WTO General Council decision of August 1, 2004 in all areas of the Doha Work Programme particularly in agriculture, non-agricultural market access, services, trade related intellectual property system (TRIPS), rules as well as operational and meaningful special and differential treatment for developing countries and to adopt practical and concrete solutions to the outstanding implementation related issues and concerns raised by developing countries; (ii)  to address the trade-related issues identified for the fuller integration of small, vulnerable economies into the multilateral trading system as mandated in paragraph 35 of the Doha Declaration and as contained in the WTO General Council decision of August 1, 2004 on the Doha Work Programme; (iii)  to secure targeted financial and technical assistance, and capacity-building programmes for developing countries, which would further enable them to derive optimum benefits from the multilateral trading system; (iv)  to emphasize the importance of the strengthening and attainment of the universality of the WTO membership and, in this context, call for accelerating the accession process without political impediments, in an expeditious and transparent manner and with full observance of the principles of special and differential treatment for developing countries in particular LDCs applying to the WTO; (v)  to provide duty-free and quota-free access to all products originating from all LDCs to the markets of developed countries as well as to the markets of developing countries in a position to do so and support their efforts to overcome their supply-side constraints;

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(vi)  to liberalize services trade in sectors and modes of supply of interest to developing countries, particularly in Modes IV and I of the General Agreement on Trade in Services and assist developing countries in strengthening their domestic services supply capacity and the regulatory frameworks, recognizing their need for policy flexibility consistent with GATS Article IV; and increase investment flows in sectors identified by developing countries, based on their national policy objectives; (vii)  to enhance the development dimension of the international Intellectual Property Rights system, taking into account the different levels of development of developing countries with a view to ensuring affordable access to necessary basic products, including medicines and educational tools and software, the transfer of knowledge, the promotion of research and stimulation of innovation and creativity, and in this regard we call: a.  for action to accelerate the work on the development related mandate concerning the TRIPS Agreement and the implementation related issues in the Doha Ministerial Declaration, especially on the issues of making intellectual property rules of TRIPS supportive of the objectives of the Convention on Biological Diversity; b.  on WIPO, as a UN Agency, to include in all its future plans and activities including legal advice a development dimension that includes promoting development and access to knowledge for all, pro-development norm-setting, establishing development friendly principles and guidelines for the provisions of technical assistance and the transfer and dissemination of technology. 9.  To increase and sustain trade integration and adjustment support to developing countries to build capacity to negotiate and implement trade agreements, and to undertake the necessary adjustment to compete and trade, including through: (i) support for strengthening productive and other supply capabilities of Small and Medium-sized Enterprises; (ii)  creating and implementing an ‘aid for trade’ fund (that is additional to aid for development) to help developing countries adjust to a more open global trade regime; (iii)  encouragement of investment, with private sector participation, in the development of trade-related physical infrastructures in developing countries, including in the context of the implementation of the commitments in particular by developed countries on providing support for trade facilitation infrastructure development. 10.  To ensure that the comparative advantage of developing countries is not undermined by any form of protectionism including the arbitrary and abusive use of non-tariff measures, non-trade barriers and other standards to unfairly restrict access of developing countries products into developed countries markets and reaffirm that developing countries should play an increasing role in the formulation of, inter alia, safety, environment and health standards. 11.  To urge G-24 to work closely with other members of G-77 in the effort to secure reforms of the international financial architecture for effective voice and participation of developing countries in international decision making process, for full implementation of the Monterrey Consensus, to create stability, to reduce the risk of economic and financial crises, and to enhance the capacity of developing countries to respond to such crises. 12.  To address in the relevant international fora the urgency of measures at the global level to monitor short-term capital flows, particularly in respect of the sources and movement of speculative capital, and to protect the autonomy of developing countries in managing capital flows and choosing their capital account regime. 13.  To seek developing country representation at the Bank of International Settlements through the creation of an ‘Emerging Markets Committee’ so that the interests of the South are considered and taken into account in the setting of international banking and financial standards.

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14.  To make increased efforts within the international financial institutions to find agreement on the introduction of international financing mechanisms that are effective in meeting the needs of developing countries and enabling them to mitigate the impact of external trade and financial shocks, especially those developing countries whose export revenues are heavily dependent on commodity exports. 15.  To pursue the efforts to identify innovative sources of financing for development, capable of providing funding in a stable, predictable and on an additional basis to assist developing countries in the promotion of economic development and hunger and poverty eradication. In this regard, due consideration should be given to all work being undertaken on this issue, particularly by the Technical Group on the Innovative Financing Mechanisms established in the framework of the world leaders meeting on ‘Action on Hunger and Poverty’, convened on the initiative of the President of Brazil, Luiz Inacio Lula da Silva, which was held in New  York in September 2004. 16.  To urge greater coordination among our Ministries of Foreign Ministers, Finance, Planning and Trade in order to promote greater coherence in our initiatives with the rest of the world. 17.  To ensure, in the reform of the United Nations, that development is given high priority and that the relevant organs, agencies, institutions, funds and programmes of the UN system be appropriately strengthened and empowered to support that priority. To this end, we instruct the Chairman of the Group of 77 in New York, in collaboration with the other G-77 Chapters, to work in all appropriate fora to promote that objective. 18.  To collaborate with the relevant institutions to complete vulnerability indices. 19.  To call for an integrated and comprehensive international approach to enhancing the contribution of commodities to development through actions which would, inter alia: (i)  address supply side constraints, in particular, Small and Medium-sized Enterprises of developing countries, to enable them to exploit their comparative advantage, add value and diversify; (ii)  explore establishing an export enhancement fund for commodity dependent countries to focus on institution building, developing key infrastructure and upgrading private sector capacity; (iii)  remove difficult market entry conditions such as those emanating from concentrated and changing market structures, as well as very stringent and diverse product standards; (iv)  enhance the access of developing countries to affordable credit and allocate funds for improving legal and regulatory conditions; (v)  systematically link debt repayment and debt servicing by commodity-dependent developing countries to adverse movements in prices of commodity exports and imports; (vi)  support the financing and implementation of the UNCTAD XI International Task Force on Commodities, including through the creation of an action group on South-South cooperation in commodities as well as underlining the need to strengthen the Common Fund for Commodities, in particular the second account; (vii) continue efforts to make effective international commodities agreements concluded under the guidance of the United Nations intended to promote and improve production and trade of primary products of vital interest to developing countries. 20.  To work towards the realization of the right to self-determination of peoples living under colonial or other forms of alien domination or foreign occupation, which adversely affects their social and economic development, and to call on the international community to take all necessary measures to bring an end to the continuation of foreign occupation, in accordance with the purposes and principles of the UN Charter and international law.

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21.  To support measures and initiatives aimed at strengthening the productive capacities and accelerating economic growth and sustainable development of LDCs which are impeded by various structural and supply side constraints. 22.  To work towards securing greater foreign direct investment flows to developing countries to support their development activities and to enhance the benefits they can drive from such investments, and to that end: (i) Invite national governments seeking to develop infrastructures and generate foreign direct investments to develop integrated strategies with the involvement of both public and private sectors and facilitated, where appropriate, by international donors; (ii)  Call upon international financial and banking institutions to consider streamlining and enhancing the transparency of risk rating mechanisms with a view to making them more development oriented; (iii)  Encourage the participation of foreign private investment in infrastructure development; (iv) Initiate measures that mitigate the impact of excessive volatility of short-term capital flows. 23.  To consider expanding market size and maximizing investment opportunities by creating sub-regional, regional and interregional markets through bilateral, sub-regional and regional economic arrangements. 24.  To recognize the need to channel private capabilities and resources into stimulating the private sector in developing countries through actions in the public, public/private and private spheres to create an enabling environment for partnership and innovation that would contribute to accelerated economic development and hunger and poverty eradication. 25.  To commit to promote and facilitate national policy dialogue on the role of he indigenous private sector in development and induce policy, legal and regulatory framework to support private sector development. 26.  To address the concern regarding the multiplication of proceedings with regard to existing Investor-State dispute settlement system and the negative impact they could have in terms of development. In this regard, encourage interaction and exchange of experiences between and among developing countries and various institutions dealing with the issue of Investor-State dispute settlement system, and in particular, encourage UNCTAD to continue and deepen its work on the matter. 27.  To work to ensure that the Fifth United Nations Conference to Review all Aspects of the United Nations Set of Principles and Rules for the Control of Restrictive Business Practices, to be held under UNCTAD auspices, in Antalya, Turkey from 14-18 November 2005 adopts recommendations identifying concrete policies and measures which would make global markets more efficient, fairer and more equitable by preventing and dismantling anti-competitive structures and practices of global enterprises and by promoting developmental responsibility and accountability of corporate actors. 28.  To invite national governments and institutions of the South to continue to promote cultural diversity and preserve the traditions of their people as well as indigenous and local traditional knowledge, practices and technology for achieving local development. 29.  To implement fully the Copenhagen commitments as the basis for coherent, people-centred approach to development and to integrate a social development perspective in the comprehensive review of the progress made in the fulfillment of all the commitments contained in the United Nations Millennium Declaration. 30.  To build just societies for all through the promotion of gender equality and the full participation of women in all spheres as well as the elimination of all discrimination and violence against women.

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B.  Knowledge and Technology 31.  To strengthen South-South Cooperation in the field of science and technology, and to that end to take action, including to: (a)  implement the outcome of the Dubai High-level Conference on Science and Technology; (b)  request the South Center in coordination with the Chair of the G-77, member states as well as relevant UN agencies to undertake an inventory of the exchanges of expertise and experiences among research institutions and universities in developing countries and to establish South-South networks among relevant research institutions and universities to facilitate the exchange of programmes, students, academia, researchers and provision of scholarships and grants; (c)  mandate IFCC-XII, to include in its agenda the review of and follow-up to the implementation of the outcome of the first High-level Conference on Science and Technology, including consideration of the convening of a South-South high-level forum on science and technology on a regular basis and any other follow-up arrangement which might be necessary. 32.  To promote education and enhance access and use of ICT for development and to that end: (a)  encourage the sharing of ICT knowledge and infrastructure among developing countries, including through the use of virtual/cyber means for intensifying educational, technical exchanges between developing countries as well as explore virtual meetings and conferences of G-77 and China; (b) increase human and institutional capacity in developing countries for ICT, including through, the development of technology infrastructure and the expansion of science and engineering faculties; (c) encourage the formulation and implementation of national and, where appropriate, regional e-strategies and plans of action to develop ICT and bridge the digital divide and maximizing digital opportunities including in areas such as e-commerce and e-business infrastructure and environment and to support their development in a manner which would facilitate enhanced access of the developing countries; (d)  encourage voluntary contribution to the Digital Solidarity Fund. 33.  To participate effectively in the preparatory process and at the second phase of the World Summit on the Information Society, to be held in Tunis from 16-18 November 2005, with a view to achieving the objectives of the Summit, especially those contained in the Geneva Declaration of Principles and Geneva Plan of Action that include among others universal access to information and knowledge for all, democratic internet governance and respect for cultural diversity and identity, linguistic diversity and local content. 34.  To encourage the more widespread adoption of e-government as one means of enhancing the efficiency of delivery of, and the access of citizens to public services, through the exchange of experiences among developing countries and the mobilizing of support to the LDCs to assist in the setting up of the infrastructure needed in this area. 35.  To support the efforts by the Trieste System, especially the Academy of Sciences for the Developing World (TWAS), to establish the G-77 consortium on science and technology as agreed at the first South Summit. In that regard, the Chairman is invited to report thereon to the next Annual Ministerial Meeting. 36.  To urge the Chairman of the Group of 77 in close coordination with the Chairman of the Paris Chapter to convene the South-South Cultural Forum as agreed at the first South Summit. 37.  To strengthen cooperative efforts to build and to utilize networks, institutional capacity and expertise in areas, such as science and technology, research and standards development and to request the Special Unit for South-South Cooperation in collaboration with the South Centre to

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facilitate this objective. In this regard, to establish a network of ‘centres of excellence’ from existing scientific and technological institutions in developing countries to allow scientists and engineers to interact with each other including through frequent exchange programmes and make use of state of the art research facilities offered by these centres. 38.  To fully support the UN Commission on Science and Technology for Development in its work to encourage scientific/technological capacity building amongst developing countries, and to seek the expansion of its country reviews conducted on relevant policies of developing countries that lays the basis for exchanging experiences to promote diverse technologies in the South. 39.  To reaffirm that poverty eradication, changing unsustainable patterns of production and consumption, and protecting and managing the natural resource base of economic an social development are overarching objectives of, and essential requirements for, sustainable development and in this regard decide to work towards the achievement of these objectives in all the relevant fora. 40.  To reaffirm also our call for more funding and attention to the United Nations Office in Nairobi as well as to the two programmes of the United Nations headquartered at Nairobi—United Nations Environment Programme and the United Nations Human Settlements Programme. 41.  To welcome the adoption of the Bali Strategic Plan for Technology Support and Capacity Building of the United Nations Environment Programme and in this regard: (i)  Welcome the adoption of the Bali Strategic Plan for Technology Support and Capacity Building of the United Nations Environment Programme and in this regard call for a work plan with specific timetables and targets. (ii)  Decide to cooperate closely for its effective implementation of sustainable development activities, through collaborative capacity-building efforts in environmental management, exchanges in technological and scientific know-how and the development of state-of-the-art environmentally-sound technologies among developing countries. 42.  To call for greater attention by the international community to the issue of adequate shelter for all and sustainable human settlements development and in this regard, to support efforts to strengthen the United nations Human Settlements Programme (UN-Habitat) as the focal point within the UN system on shelter and sustainable human settlements.

C.  South-South Cooperation: Reiterate our commitment to South-South Cooperation as contained in the Havana Programme of Action and underscore its importance in the effort to eradicate poverty and achieve sustained economic growth and sustainable development in the South and in this regard we agree to: 43. Implement the measures and the initiatives contained in the Marrakech Framework for Implementation of South-South cooperation. 44.  Invite the Chairman of the G-77, in collaboration with UNCTAD and other relevant institutions, to submit a comprehensive study on new and dynamic sectors with a view to enhancing the participation of developing countries in world trade in areas where they have potential comparative advantage. 45.  Invite all the parties involved to conclude the Third Round of GSTP by 2006 and encourage other developing countries to consider participating in the GSTP. 46.  Call on parties to support and finance a project, under the auspices of UNCTAD, to raise awareness among developing countries on: (i) the third round of negotiations of the GSTP; and (ii) the promotion and dissemination of the results of the round following its conclusion. 47.  Encourage G-77 Member States to elaborate South-South arrangements/frameworks for sectoral cooperation.

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48.  Decide to establish ‘The South Fund for Development and Humanitarian Assistance’ for economic, social, health and educational development as well as to address problems of hunger, poverty and human catastrophes. In this regard, (i)  Welcome and applaud the proposal of H.H. the Emir of the State of Qatar for the creation of the Fund and his contribution of US$20 million to launch it; (ii)  Express appreciation to the Governments of China and India for their contribution of US$2 million each to the Fund; (iii)  Invite other countries in a position to do so to contribute to the Fund; and (iv)  Decide to take further action to operationalize the Fund. 49.  Recommend the expansion of the UN Trust Fund for South-South cooperation and request the UN General Assembly to review its structure and modalities of operation in order to enable it to better respond to the needs of developing countries. 50.  Request the Chairman of the Group of 77 to consult member states on a date and modalities for the convening of a South-South Forum on public and private partnership. 51.  Strengthen cooperation and coordination between the G-77 and the Non-aligned Movement (NAM) in promoting South-South Cooperation by requesting the Joint Coordinating Committee (JCC) to meet more regularly to discuss issues of common interest in the field of South-South cooperation where synergies could be explored. 52.  Note the report of the Ad Hoc Advisory Group on the Performance, Mandates and Operating Modalities of the G-77 Chamber of Commerce and Industry (G77CCI) and request the Chairman of G-77 to identify an option out of the recommendations of the Ad Hoc Advisory Group and to submit, in consultation with the relevant stakeholders, a report to the next Annual Ministerial Meeting for consideration and appropriate action. 53.  Support the South Centre as a think-tank which analyzes central issues in the world economy that are of special interest or the South, and in this regard call on member states that are in a position to do so, donor countries, international financial institutions and the private sector to strengthen the financial base of the Centre and in that regard South Centre members invite other developing countries which are not yet members to join the Centre. 54.  Make use of the United Nations Convention to Combat Desertification in those countries experiencing serious drought and/or desertification, particularly in Africa, in addressing land degradation and as a tool to assist in addressing, inter alia, poverty and hunger, and in this regard: i)  support the diversification of sources of financing as well as enhanced funding for the implementation of the Convention, through the Global Environment Facility and the Global Mechanism and other possible sources, inter alia, the Sustainable Development Foundation; ii)  encourage the implementation of the platforms for action adopted a the Second Africa/ Asian Forum (Niamey, Niger 1998), and at the second Africa/Latin America and Caribbean Forum (Bamako, Mali, 2000), in furtherance of the implementation of the Convention; iii)  encourage further the organization of special activities to ensure the successful Year of Deserts and Desertification in 2006. 55.  Urge UNESCO to develop and implement: (a)  a programme for South-South cooperation in science and technology with the objectives of facilitating the integration of a development approach into national science, technology and innovation policies; capacity building in science and technology; providing policy advice and exchange of experiences and best practices; and creating problem-solving networks of centres of excellence in developing countries as well as supporting the exchange of students, researchers, scientists and technologists among developing countries.

GROUP OF 77 SOUTH SUMMITS

1057

(b)  a programme for South-South cooperation in education with the objective of facilitating developing countries to meet the objectives of the Dakar Plan on Education for All and the Millennium Development Goal, related to literacy, including through the exchange of experiences in the conduct of pilot projects among and within developing countries. In this regard, urge developed countries to provide UNESCO with the necessary funding to support the programmes. 56.  Undertake to strengthen our cooperation in the fight against HIV/AIDS, malaria, tuberculosis and other communicable diseases as well as to strengthen a South-South network, linking research & development (R&D) institutions and other centres of excellence in order to enhance the South’s efforts in establishing strategic South-South programmes of R&D on development of vaccines, drugs and diagnostics for the prevention and cure of these diseases in the South. 57.  Welcome the implementation of the South-South Healthcare Delivery Programme (SSHDP) with its Headquarters in Abuja, Nigeria, which has produced positive results in recipient countries and call for more cooperation and expansion of donors as well as recipients of the programme to enhance its effectiveness and quality of healthcare service delivery. In that regard, request the submission of a further comprehensive progress report of the programme to the next Annual Ministerial Meeting for consideration and any appropriate action. 58.  Strengthen South-South cooperation in the area of medicine, pharmaceutical and biotechnological industry, taking into account the impact that chronic diseases and pandemics generate in the affected populations, particularly in LDCs, and to publish the existing opportunities in that field, from the experiences reached in some developing countries. 59.  Urge member states of the Group of 77 in a position to do so to extend lines of credit to enhance South-South trade and to encourage technical cooperation arrangements based on the best practices of developing countries. 60.  Recommend continued consideration of a Trade and Development Bank for the South and in that regard: a)  mandate a meeting of Finance, Central Bank and/or other experts to consider the proposal including the outstanding issues and make recommendations on the feasibility and viability of the proposed Trade and Development Bank; b)  request the G-24, UNCTAD and the Special Unit for South-South Cooperation in UNDP to participate in and provide support, to the extent possible, to the consultations envisaged above. 61.  Agree to support and participate in the activities of the Action Committee on Raw Materials (ACRM) and to take steps to strengthen the existing Secretariat of the ACRM in Abuja, Nigeria through the provision of adequate financial and material resources and calls for the establishment of the Regional Raw Materials Information System for Africa (RMIS). 62.  Support bilateral initiatives undertaken by some developing countries for debt cancellation to benefit LDCs and further encourage other developing countries to also undertake similar initiatives to strengthen solidarity with this most vulnerable group of developing countries. 63.  Undertake and continue all initiatives aimed at enhancing market access for the products of export interest to the LDCs and in this regard laud the developing countries who have already done so, and request those developing countries who are in a position to do so to provide duty free and quota free access to products originating from LDCs. 64.  Promote initiatives in favour of the LDCs by implementing projects in areas such as human and productive capacity building, technical assistance, exchange of best practices, particularly in issues relating to health, education, professional training, environment, agriculture, science and technology, trade, investment, energy and transit transport cooperation.

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65.  Encourage, in the framework of the Almaty Programme of Action, both the landlocked and transit developing countries to further intensify their collaboration and cooperation through existing transit arrangements and agreements among them. In this regard, call upon donor countries and multilateral financial and development institutions to ensure full and effective implementation of the Almaty Programme of Action by providing landlocked and transit developing countries with necessary financial and technical assistance. 66.  Support developing countries emerging from conflict, in particular LDCs, with a view to enabling them to rehabilitate and reconstruct, as appropriate, political, social and economic infrastructures and to assist them in achieving their development priorities. 67.  Call for an increased international assistance in the creation and strengthening of national, subregional, regional and international mechanisms for prevention, preparedness and mitigation of natural disasters and their effects, including through establishing and strengthening early warning systems as well as long-term rehabilitation and reconstruction, in view of the increased incidences of natural disasters and their destructive effects on the development of developing countries, in particular small and vulnerable economies, and call on the international community and the UN system to work in close coordination to fulfill the commitments established to assist affected and disaster-prone countries, for their Governments and relevant authorities to receive the early-warning information in an unrestrictive and timely manner for their immediate and effective utilization and diffusion. 68.  Call upon the international community and the UN system to provide for and support through bilateral and multilateral channels, the implementation of the Hyogo Framework for Action 2005-2015 in disaster-prone developing countries, including through financial and technical assistance, addressing debt sustainability, technology transfer, and public-private partnerships, and encourage North-South and South-South cooperation. 69.  Encourage all forms of partnerships that promote South-South cooperation. 70.  Take actions and measures that will ensure an enabling environment for development and to promote in this regard an effective contribution of the business sector to South-South cooperation areas such as education, health, infrastructure, sanitation, human settlements, transport, agriculture, fisheries, industry, tourism, biotechnologies; 71.  Work together in solidarity to secure and share in gains from the emerging new international trade geography and to design and implement strategies to ensure that the dynamism evident in the new geography of international economic relations is sustained and has a positive multiplier effect through the South. 72.  Foster consultations, cooperation and exchange of experiences including of success stories on South-South trade. 73.  Build South-South trade in goods and services at the bilateral, regional and interregional levels in sectors with high growth potential. 74.  Develop mutual recognition agreements on technical regulations and sanitary and phytosanitary measures. 75. Promote cooperation in addressing environmental requirements affecting the exports of developing countries including through support to UNCTAD’s Consultative Task Force on Environmental Requirements and Market Access for Developing Countries. 76.  Establish or strengthen appropriate mechanisms at the regional and sub-regional levels to promote exchange of information on anti-competitive practices and on the application of national and regional laws and policies in this area, and to assist each other to their mutual advantage regarding control of anti-competitive practices at the regional and sub-regional levels. 77.  Explore ways to strengthen and facilitate trade among developing countries and in this regard support work by UNCTAD on appropriate mechanisms.

GROUP OF 77 SOUTH SUMMITS

1059

78.  Invest in improving infrastructural facilities and networking among developing countries to facilitate trade and reduce the cost of doing business. 79.  Promote negotiation, on voluntary basis, of free trade agreements among developing countries as they constitute a tool for strengthening South-South economic cooperation. 80.  Promote and strengthen regional and sub-regional integration through groupings and other arrangements based on mutual benefit, complementarities and solidarity among developing countries with a view to facilitating and accelerating the economic growth and development of their economies. 81.  Work effectively for promoting and strengthening of interregional cooperation among developing countries in all areas and encourage initiatives in this regard. 82. Take measures and initiatives to support the New Partnership for Africa’s Development (NEPAD) projects. 83.  Urge the early implementation of the cooperative initiatives being undertaken by Asian and African countries within the framework of the New Asian-African Strategic Partnership (NAASP). 84.  Request the submission of an annual report on South-South cooperation by the Special Unit for South-South Cooperation in collaboration with the South Centre and in consultation with the Chairman of the G-77. 85.  Call for the implementation of relevant recommendations related to South-South Cooperation contained in the report of the World Commission on the Social Dimension of Globalisation entitled ‘A Fair Globalisation: Creating Opportunities for all’. 86.  Welcome the bilateral and plurilateral initiatives/proposals for South-South cooperation. 87.  Encourage member states and groups of member states of the G-77, which are in a position to do so to develop and promote other development cooperation initiatives and to request the Chairman of the G-77 to provide information to all members of the Group. 88.  Request the Chairman of the Group of 77, with the support of UNCTAD and the Special Unit for South-South Cooperation, to organize periodically a forum on investments among the countries of the South, for discussion and the publication of successful experiences among developing countries in that field, and in that regard to take the necessary measures to determine the place of the holding of this event in 2006. 89.  Request UNCTAD to present a report on the pattern of investment flows from and to the South that, inter alia, analyzing the economic and social impact of such flows on developing countries.

D.  North-South Relations: 90.  To strengthen North-South cooperation as a means of facilitating efforts of developing countries to promote their development and achieve the internationally agreed development goals including the MDGs, and in this regard, we: (a)  call upon, in all relevant forums, developed countries to conduct their macroeconomic and trade policies including subsidies elimination in a way that enhances the opportunities for developing countries to reduce the existing income gap and to meet the internationally agreed development goals including the MDGs and other development goals. (b)  urge developed countries that have not yet done so to raise ODA flows to meet the internationally agreed targets for ODA of 0.7 per cent of GNP to developing countries and 0.15 per cent to 0.20 per cent of GNP to least developed countries; (c)  call for the establishment of an effective monitoring mechanism to ensure that the internationally agreed targets for ODA allocation by the developed countries of 0.7 per cent of

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THE COLLECTED DOCUMENTS OF THE GROUP OF 77

GNP to the developing countries and 0.15 per cent to 0.20 per cent of GNP to the least developed countries are met; (d)  urge the international financial institutions and developed country creditors to relate debt sustainability criteria directly to the financing requirements for achieving the internationally agreed development goals including the MDGs and other development goals; (e)  fully support efforts by the international community to raise bilateral grants to the LDCs and other low-income countries, in addition to those grants provided through debt cancellation; (f)  continue deliberations on the creation of a framework to deal effectively with all sovereign debt of developing countries. 91.  To urge multilateral and bilateral donors to fulfill their commitment in support for those developing countries facing unsustainable debt burdens, including LDCs, low- and middle-income countries and develop and implement initiatives to reduce outstanding indebtedness and encourage further international measures, including debt cancellation and other arrangements as well as for those countries belonging to the Heavily Indebted Poor Countries Initiative. 92.  To call upon the development partners to strengthen the implementation of the Programme of Action for LDCs for the Decade 2001-2010 and to: a)  untie all aid to the LDCs and increase the quantity to reach the internationally agreed target of 0.15 per cent to 0.2 per cent of GNP of the developed countries and make them available in a long-term and predictable basis. b)  cancel all official debt of all LDCs. c)  provide bound duty-free and quota-free market access to all products originating from all LDCs and support their efforts to overcome their supply-side constraints. 93.  To strengthen dialogues with developed countries and their organizations on international economic cooperation for development, with a view to tackling the underdevelopment of the developing countries and enhancing common development, and in this regard, invite the Chairman of the G77 to bring concerns and interests to our development partners, including to the meetings of the G8. 94.  To continue to engage all partners on the issue of global systemic imbalances in areas such as trade, finance, money and technology. In that context, urge the international community to promote reform of the global financial architecture, including through enhancing the voice and participation of developing countries in the decision-making process of the IFIs, and to review international monetary and financial polices and arrangements and their impact on developing countries. 95.  To enhance collaboration through existing mechanism and procedures of the G-77 Chapter in Geneva in order to increase negotiating capacity and strength with a view to securing the interests of developing countries in trade and trade related issues. 96.  To call on the international community to promote the transfer of technologies on preferential terms, including new and emerging technologies to adopt policies and programmes with a view to assisting developing countries take advantage of technology in their pursuit of development, through inter alia, technical cooperation and the building of scientific and technological capacity. 97.  To call also on the international community to support developing countries in their efforts to increase access to education and to share ICT knowledge and infrastructure. 98.  To urge the international community to take further concrete measures to mitigate the disastrous effects of HIV/AIDS, tuberculosis, malaria and other communicable diseases including by encouraging local production of drugs and ensuring access to drugs at affordable costs.

GROUP OF 77 SOUTH SUMMITS

1061

99.  To call for the full and effective implementation of the Mauritius Strategy for the further implementation of the Programme of Action for the Sustainable Development of Small Island Developing States and in that regard call upon donor countries and international financial and development institutions to provide the SIDS with the necessary financial and/or technical assistance to implement the Mauritius Strategy. 100.  To urge multilateral and bilateral donors to fulfill their commitments to Africa through the implementation of the various Africa-specific initiatives, in particular NEPAD priority projects and call on the international community to: (a)  cancel all debts of African countries and take practical steps to urgently implement such cancellation; (b)  double development assistance to Africa and improve its quality, inter alia, by channeling such increase through multilateral development institutions and by augmenting the budgetary support component of it; (c)  simplify multilateral financial institutions procedures to eliminate delays in the release of approved resources for NEPAD projects. 101.  To engage in a pro-active dialogue on matters related to corporate developmental responsibility and good corporate governance of Transnational Corporations, which entails maximizing their contribution to the economic and social development of host developing countries. 102.  To underscore the importance of promoting a more dynamic and cooperative relationship with the developed and industrialized countries, based on constructive engagement, for mutual benefits and to this end calls on the G77 to make proposals for the launching of the dialogue. 103.  To reject firmly the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries, and reiterate the urgent need to eliminate them immediately and emphasize that such actions not only undermine the principles enshrined in the Charter of the United Nations and International Law, but also severely threaten the freedom of trade and investment and in that context call on the international community not to recognize such measures or to apply them.

Implementation and follow-up 104.  To urge all Member States to make special contributions to the G-77 Special Fund established in accordance with the decision contained in Chapter VI, paragraph 4, of the Havana Programme of Action adopted by the First South Summit with a view to achieving its target of at least US$10  million to further assist the full implementation and follow-up of the decisions adopted by the South Summits. 105.  To reiterate our decision contained in paragraph VI-2 of the Havana Programme of Action on financial contributions to the G-77 Secretariat and call on members in arrears to expeditiously liquidate their arrears and on all members to make their annual contributions in a timely manner. 106. To welcome the progress made so far by the Perez-Guerrero Trust Fund (PGTF) on Economic Cooperation among Developing Countries (ECDC) in support of South-South cooperation and call upon all members of the Group of 77 as well as the United Nations system to support the expansion of resources of the Trust Fund through regular contribution at the annual UN pledging conference to the PGTF, in accordance with UNGA resolution 58/220 of 23 December 2003. 107.  To decide to continue the strengthening of the capabilities of the Group of 77 to address today’s challenges and opportunities through, inter alia, further enhancing coordination among the various chapters at both the formal and informal levels, and strengthening coordination and cooperation with relevant South institutions including through the use of modern technology, so

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THE COLLECTED DOCUMENTS OF THE GROUP OF 77

that the collective wisdom and experience of the Group could be brought to bear in addressing the international agenda, including multilateral negotiations. 108.  To requests the Chairman of the Group of 77 to establish an open-ended working group to study possible ways and means to strengthen the G-77 and its Secretariat, including identifying common modalities to facilitate interchapter cooperation as well as innovative approaches to address resource and personnel requirements of the G77 Secretariat so that it may meet the needs of the entire Group of 77 and to submit a report to the Annual Ministerial Meeting at an appropriate time. 109.  To request relevant UN agencies, funds and programmes within the areas of their competence, to support the efforts of developing countries to achieve their development objectives including the MDGs. 110.  To request the UN Secretary-General, in consultation with Member States, to take concrete measures to further strengthen the Special Unit for South-South cooperation as a separate entity and a focal point for South-South cooperation within the United Nations system as reaffirmed by General Assembly resolution 58/220 of 23 December 2003, so as to enable it to carry out its full responsibilities, in particular through of mobilization of resources for the advancement of South-South cooperation including through triangular cooperation. 111.  To further requests the Secretary-General, in consultation with the member states and the UNDP Administrator, to rename the United Nations Voluntary Trust Fund for the Promotion of South-South Cooperation that was established in response to GA resolution 50/119 of 5 December 1995 as the United Nations Fund for South-South Cooperation, and to designate it as the main multilateral funding mechanism for promoting and supporting South-South and triangular cooperation initiatives, including those decided by the South Summit. 112.  To support the strengthening of the role of UNCTAD as the focal point within the United Nations for the integrated treatment of trade and development issues, especially in the delivery of policy analysis and policy advice, as well as in forging consensus on development matters. 113.  To invite the Chairman of the G-77 to prepare a platform for the South to provide a framework of development options to support the participation and integration of developing countries into the global economy and the globalization process and to request the Chairman to present the proposals on the elaboration of the platform in September 2005 for the consideration of Ministers. 114.  To invite the Chairman of the Group of 77 to convene, as deemed necessary, sectoral meetings in fields of cooperation of interest to the Group in order to pursue South-South cooperation. 115.  To request the Chairman of the Group of 77 to take action, as appropriate, including through the organizing of meetings to increase the level of networking among stakeholders including the G-77 Chapters and the regional organizations to share experiences and facilitate, where feasible, the development of common positions for the Group in multilateral negotiations. 116.  To request IFCC to keep under review progress made in the implementation of the outcomes of the South Summits in the field of South-South cooperation. 117.  To invite the Chairman of the Group of 77 to undertake consultations with a view to conducting a mid-term review of the implementation of the outcome of the Second South Summit. 118.  To invite the Chairman of the Group of 77 to take necessary steps to convey promptly the relevant conclusions of this Summit to our developed partners, including through the meetings of G-8 as appropriate, and to bring them to the preparatory process of the High-level Plenary Meeting of the UN General Assembly to be held in September 2005, as well as to other relevant high-level meetings, with a view to strengthening North-South dialogue and to mobilize support for the interests of developing countries.

ANNEX I: ACRONYMS

ANNEX I

AASROC ABS ACC ACP ACRM ACABQ ACIS ACS ACT ADB ADB AFTA AMR AMU AOSIS APCTT APDC APEC ARPEL

1065

Asian-African Sub-regional Organizations Conference Access and Benefit Sharing Administrative Committee on Coordination African, Caribbean and Pacific Group of States Action Committee on Raw Materials Advisory Committee on Administrative and Budgetary Questions Advance Cargo Information System Association of Caribbean States Treaty for Amazonian Cooperation African Development Bank Asian Development Bank ASEAN Free Trade Area Annual Ministerial Review Arab Maghreb Union Alliance of Small Island Developing States Asia-Pacific Centre for Transfer of Technology Asia and Pacific Development Center Action Programme for Economic Cooperation Regional Association of Oil, Gas and Biofuels Sector Companies in Latin America and the Caribbean ASCOPE ASEAN Council on Petroleum AsDB Asian Development Bank ASEAN Association of South-East Asian Nations ASTRO Association of State Trading Organizations ASTT Advisory Service on Transfer of Technology AU African Union AWG-LCA Ad Hoc Working Group on Long-t4erm Cooperative Action BAPA Buenos Aires Plan of Action BITS Bilateral Investment Treaties BOT Built-Operate-Transfer BPOA Barbados Programme of Action BTN Brussels Tariff Nomenclature BWIs Bretton Wood Institutions CAADP Comprehensive Africa Agricultural Development Programme CACM Central American Common Market CAIS Central American Integration Secretariat CARICAD Caribbean Center for Development Administration CARICOM Caribbean Community CBD Convention on Biological Diversity CCC Committee for Collaboration on Consultancy/Customs Cooperation Council CCCN Customs Cooperation Council Nomenclature CBDR Common but Differentiated Responsibilities

1066

CCFF CDM CDP CECLA CEESTEM CEID CENICAM CEPAL CEPGL CERID CFC CIEC CLAES CMEA CMP COC CODESA COP COPA COSTIS CPA CPC CSD CSTD DAC DDR DIEC DESA DEVNET DIN DLDD DPU ECA ECAFE EEC EEC/JUS ECDC ECE EEZ ECLAC ECOSOC ECOWAS

ANNEX I

Compensatory and Contingency Financing Facility Clean Development Mechanism Committee for Development Planning Comisión Especial de Coordinación Latinoamericana Centre for Economic and Social Studies of the Third World Center for International Diplomatic Studies National Research and Training Center of Multilateral Projection Comision Economica Para America Latina y el Caribe Economic Community of the Great Lake Countries Center for the Study of International Relations and Development Common Fund for Commodity Conference on International Economic Cooperation Latin American Structures Committee Council for Mutual Economic Assistance Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol Committee on Contributions Convention for a Democratic South Africa Conference of the Parties Cross-organizational Programme Analysis Consortium for Science, Technology and Innovation for the South Caracas Programme of Action Committee for Programme and Coordination Commission on Sustainable Development Commission on Science and Technology for Development Development Assistance Committee Disarmament, Demobilization and Reintegration Development and International Economic Cooperation Department of Economic and Social Affairs Development Communication Network Development Information Network Desertification, Land Degradation and Drought Developing Countries Payments Union Economic Commission for Africa Economic Commission for Asia and the Far East European Economic Community European Economic Community/Japan and United States Economic Cooperation among Developing Countries Economic Commission for Europe Exclusive Economic Zone Economic Commission for Latin America and the Caribbean Economic and Social Council Economic Community of West African States

ANNEX I

ECWA EPA

1067

Economic Commission for West Asia Environmental Protection Agency/Economic Partnership Agreement ESAF Enhanced Structural Adjustment Facility ESCAP Economic and Social Commission for Asia and the Pacific ESCWA Economic and Social Commission for Western Asia ESTs Environmentally Sound Technologies EU European Union FAO Food and Agriculture Organization of the United Nations FDI Foreign Direct Investment FfD Financing for Development FOMAC Forum of Mine Affected Countries G-8 Group of Eight (Industrialized Countries) G-15 Group of Fifteen (Developing Countries) G-24 Intergovernmental Group of Twenty-four Developing Countries on International Monetary Affairs and Development G-77 CCI Chambers of Commerce and Industry of the Group of Seventy-seven G-77 Group of 77 GA General Assembly GATT General Agreement on Tariffs and Trade GC/GMEF Governing Council/Global Ministerial Environment Forum GDP Gross Domestic Product GEF Global Environmental Facility GHGs Greenhouse Gases GM Global Mechanism GNI Gross National Income GNP Gross National Product GOFs Global Objectives on Forests GPA Global Programme Action GRULAC Group of Latin American and Caribbean States GSP Generalized System of Preferences GSTP Global System of Trade Preferences HACCP Hazard analysis and critical control points HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome HIPCs Heavily Indebted Poor Countries HLC High-level Committee HLCP High-level Preparatory Committee on Programmes HLS High-level Segment HRD Human Resource Development IACSD Inter-Agency Committee on Sustainable Development IADGs Internationally Agreed Development Goals

1068

IAEA IBI IBRD IBSA ICA ICAO ICBs ICERD ICPD ICPE ICT IDA IDB IDB IDS IFC IFAD/FIDA IFCS IFF IFCC IFIs IFPC IGAD IGO ICAO ILO IMF IMCO IMO INRES IPC IPF IPS ISTP IT ITC ITU JCC JIU JPOI

ANNEX I

International Atomic Energy Agency Intergovernmental Bureau of Informatics International Bank for Reconstruction and Development India, Brazil, South Africa International Commodity Agreement International Civil Aviation Organization International Commodity Body International Convention on the Elimination of All forms of Racial Discriminations International Conference on Population and Development International Centre for Public Enterprises Information and Communication Technology International Development Association Inter-American Development Bank Islamic Development Bank International Development Strategy International Finance Corporation International Fund for Agricultural Development Intergovernmental Forum on Chemical Safety Intergovernmental Forum on Forests Intergovernmental Follow-up and Cooperation Committee on South-South Cooperation International Financial Institutions International Fund for the Promotion of Culture Intergovernmental Authority on Development Intergovernmental Organization International Civil Aviation Organization International Labour Organization International Monetary Fund Intergovernmental Maritime Consultative Organization International Maritime Organization Information Referral System Integrated Programme for Commodities Intergovernmental Panel on Forests Inter-Press Services Information System on Technologies and Projects Information Technology International Trade Centre International Telecommunications Union Joint Coordinating Committee of the Group of 77 and Non-Aligned Movement Joint Inspection Unit Johannesburg Plan of Implementation

ANNEX I

KP LAES LDCs LLDCs LIFDCs MARPOL

1069

Kyoto Protocol Latin American Economic System Least Developed Countries Landlocked Developing Countries Low Income Food Deficit Countries International Convention for the Prevention of Pollution from Ships MDGs Millennium Development Goals MEA Multilateral Environmental Agreement MERCOSUR Southern Cone Common Market MFA Multifibre Arrangement MFI Multilateral Financial Institutions MFN Most-Favoured-Nation MFR Maximum Financial Requirements MIGA Multilateral Investment Guarantee Agency MME Multinational Marketing Enterprise MMEs Multilateral Marketing Enterprises MSAs Most Seriously Affected Countries MSI Mauritius Strategy for Implementation MSIN Multilsectoral Information Network MTAs Multilateral Trade Agreements MTN Multilateral Trade Negotiations MYPOW Multi-Year Programme of Work NAASP New Asian-African Strategic Partnership NAFTA North American Free Trade Area NAM Non-aligned Movement NDS National Development Strategy NEPAD New Partnership for Africa’s Development NGOs Non-Governmental Organizations NIEO New International Economic Order NLBI Non-Legally Binding Investment NRTCMS National Research and Training Centers of Multinational Scope NRSE New and Renewable Sources of Energy NRTCMS National Research and Training Cetres of Multinational Scope OAPEC Organization of Arab Petroleum Exporting Countries OAS Organization of American States OAU Organization of African Unity ODA Official Development Assistance OECD/OCDE Organization for Economic Cooperation and Development OIC Organization of the Islamic Conference OLADE Organizacion Latinoamericana de Energia OPEC/OPEP Organization of Petroleum Exporting Countries OWG Open Working Group

1070

PDM PGTF PIDA PrepCom QCPR R&D RCCDC RCOPPTECS

ANNEX I

Project Development Mechanisms Pérez-Guerrero Trust Fund Programme for Infrastructure Development for Africa Preparatory Committee Quadrennial Comprehensive Policy Review Research and Development Research Centre for Cooperation among Developing Countries Regional Cooperation Pharmaceutical Production and Technology Centres RIS Research and Information System RITLA Latin American Technological Information Network RMC Raw Materials Commission RMIS Raw Materials Information System RTAs Regional Trade Agreements RTP Round Table Processes SAARC South Asia Association for Regional Cooperation SADC South African Development Community SAF Structural Adjustment Facility SFM Sustainable Forests Management S&T Science and Technology SDGs Sustainable Development Goals SDRs Special Drawing Rights SDT Special and Deferential Treatment SELA Latin American Economic System SG Secretary-General SIDS Small Island Developing States SITC Standard International Trade Classification SITTDEC South Investment Trade Technology Data Exchange Centre SME Small and Medium-sized Enterprise SNPA Sustainable New Programme of Action SPFS Special Programme for Food Security SPS Sanitary and Phytosanitary SSC South-South Cooperation SSHDP South-South Healthcare Delivery Programme STABEX System of Stabilization of Export Countries STOs State Trading Organizations SUNS Special Untied Nations Service (South-North Development Monitor) SUSSC Special Unit for South-South Cooperation TAP Technical Assistance Programme TAB Technical Assistance Board TCDC Technical Cooperation among Developing Countries TCPR Triennial Comprehensive Policy Review

ANNEX I

TEAM TDB TIES TIN TPRM TIPS TIS TNCs TNA TOKTEN TRIM TWAS TWN TWPC TWPI TRIPS UN UNCCD UNCDF UNCED UNCHS/HABITAT UNCITRAL UNCLOS UNCSD UNCTAD/CNUCED UNCSTD UNDESA UNDP UNDRO UNEP UNESCO UNESOB UNFCCC UNFF UNFPA UNFSSTD UNGA UNGASS UN-HABITAT UNICEF

1071

Techno-Economic Approach for Africa-India Movement Trade and Development Board Technological Information Exchange System Trade Information Network Trade Policy Review Mechanism Technological Information Pilot System Trade Information System Transnational Corporations Technology Needs Assessment Transfer of Knowledge Through Expatriate Nationals Trade Related Investment Measures Academy of Sciences for the Developing World Third World Network Third World Petroleum Congress Third World Petroleum International Trade-related aspects of Intellectual Property Rights Agreement United Nations United Nations Convention to Combat Desertification United Nations Capital Development Fund United Nations Conference on Environment and Development United Nations Conference on Human Settlements/Habitat United Nations Commission on International Trade Law United Nations Conference on the Law of the Sea United Nations Commission on Sustainable Development on Climate Change United Nations Conference on Trade and Development United Nations Centre for Science and Technology for Development United Nations Department of Economic and Social Affairs United Nations Development Programme United Nations Disaster Relief Organization United Nations Environment Programme United Nations Educational, Scientific and Cultural Organization United Nations Economic and Social Office in Beirut United Nations Framework Convention on Climate Change United Nations Forum on Forests United Nations Population Fund United Nations Finance System in Science and Technology Development United Nations General Assembly United Nations General Assembly Special Session United Nations Human Settlements Programme United Nations Children’s Fund

1072

UNIFEM UNIDO UNITAR UN-NADAF UNOSSC UNPAAERD

ANNEX I

United Nations Development Fund for Women United Nations Industrial Development Organization United Nations Institute for Training and Research United Nations New Agenda for the Development of Africa United Nations Office for South-South Cooperation United Nations Programme of Action for African Economic Recovery and Development UNPCSD UN Department for Policy Coordination and Sustainable Development UNWTO United Nations World Tourism Organization USG Under-Secretary-General WCAR World Conference Against Racism WFC World Food Council WFP World Food Programme WHO World Health Organization WIDE Web of Information for Development WIPO World Intellectual Property Organization WSF World Solidarity Fund WSIS World Summit on Information Society WSSD World Summit on Sustainable Development WTO World Trade Organization

ANNEX II: ORIGINAL SIGNATORIES OF ‘THE JOINT DECLARATION’ OF THE SEVENTY-SEVEN DEVELOPING COUNTRIES MADE AT THE CONCLUSION OF THE FIRST SESSION OF THE UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT, GENEVA, 15 JUNE 1964 (GROUP OF 77)

1075

Annex II

1. Afganistán 2. Algeria 3. Argentina 4. Bolivia 5. Brazil 6. Burma (Myanmar) 7. Burundi 8. Cambodia 9. Cameroon 10. Central African Republic 11. Ceylon (Sri Lanka) 12. Chad 13. Chile 14. Colombia 15. Congo (Brazzaville) (Republic of the Congo) 16. Congo (Leopoldville) (Dem. Rep.of the Congo) 17. Costa Rica 18. Cyprus 19. Dahomey (Benin) 20. Dominican Republic 21. Ecuador 22. El Salvador 23. Ethiopía 24. Gabon 25. Ghana 26. Guatemala 27. Guinea 28. Haiti 29. Honduras 30. India 31. Indonesia 32. Iran 33. Iraq 34. Jamaica 35. Jordan 36. Kenya 37. Kuwait 38. Laos

39. Lebanon 40. Liberia 41. Libya 42. Madagascar 43. Malaysia 44. Mali 45. Mauritania 46. Mexico 47. Morocco 48. Nepal 49. Nicaragua 50. Níger 51. Nigeria 52. Pakistan 53. Panama 54. Paraguay 55. Peru 56. Philippines 57. Republic of Korea 58. Republic of Viet-Nam 59. Rwanda 60. Saudi Arabia 61. Senegal 62. Sierra Leone 63. Somalia 64. Sudan 65. Syria 66. Thailand 67. Togo 68. Trinidad and Tobago 69. Tunisia 70. Uganda 71. United Arab Republic (Egypt) 72. United Republic of Tanganyika and Zanzibar (United Republic of Tanzania) 73. Upper Volta (Burkina Faso) 74. Uruguay 75. Venezuela 76. Yemen 77. Yugoslavia (Serbia)

Note: Names shown in Italic against the name of a country denote the current name of that country.

ANNEX III: EVOLUTION OF THE MEMBERSHIP OF THE GROUP OF 77 SINCE 1964

1079

ANNEX III

 1. Afghanistan  2. Algeria  3. Angola   4.  Antigua & Barbuda  5. Argentina  6. Bahamas  7. Bahrain  8. Bangladesh  9. Barbados 10. Belize 11. Benin 12. Bhutan 13.  Bolivia (Plurinational State of) 14.  Bosnia and Herzegovina 15. Botswana 16. Brazil 17.  Brunei Darussalam 18. Burkina Faso 19. Burundi 20. Cambodia 21. Cameroon 22. Cape Verde 23.  Central African Republic 24. Chad 25. Chile1 26. China 27. Colombia 28. Comoros 29. Congo 30. Costa Rica 31.  Côte d’Ivoire 32. Cuba 33. Cyprus2 34.  Democratic People’s Republic of Korea 35.  Democratic Republic of the Congo 36. Djibouti 37. Dominica 38.  Dominican Republic 39. Ecuador 1 2 3 4

Joined OECD in 2010 Joined EU in 2004 Joined OECD in 1996 Joined EU in 2004

40. Egypt 41.  El Salvador 42. Equatorial Guinea 43. Eritrea 44. Ethiopia 45. Fiji 46. Gabon 47. Gambia 48. Ghana 49. Grenada 50. Guatemala 51. Guinea 52. Guinea-Bissau 53. Guyana 54. Haiti 55. Honduras 56. India 57. Indonesia 58.  Iran (Islamic Republic of) 59. Iraq 60. Jamaica 61. Jordan 62. Kenya 63. Kiribati 64. Korea (Republic of)3 65. Kuwait 66.  Lao People’s Democratic Republic 67. Lebanon 68. Lesotho 69. Liberia 70. Libya 71. Madagascar 72. Malawi 73. Malaysia 74. Maldives 75. Mali 76. Malta4 77.  Marshall Islands 78. Mauritania

1080

ANNEX III

 79. Mauritius   80. Mexico5  81. Micronesia  82. Mongolia  83. Morocco  84. Mozambique  85. Myanmar  86. Namibia  87. Nauru  88. Nepal  89. Nicaragua  90. Niger  91. Nigeria  92. Oman  93. Pakistan  94. Panama   95. Palau6  96. Papua New Guinea  97. Paraguay  98. Peru  99. Philippines 100. Qatar 101. Romania7 102. Rwanda 103.  St. Kitts and Nevis 104. St. Lucia 105.  St. Vincent & the 106. Grenadines 106. Samoa 107.  Sao Tome and Principe 108. Saudi Arabia 109. Senegal 110. Seychelles

5 6 7 8

111. Sierra Leone 112. Singapore 113.  Solomon Islands 114. Somalia 115. South Africa 116. South Sudan 117. Sri Lanka 118.  State of Palestine 119. Sudan 120. Suriname 121. Swaziland 122.  Syrian Arab Republic 123. Tajikistan 124. Thailand 125. Timor-Leste 126. Togo 127. Tonga 128.  Trinidad and Tobago 129. Tunisia 130. Turkmenistan 131. Uganda 132.  United Arab Emirates 133.  United Republic of Tanzania 134. Uruguay 135. Vanuatu 136.  Venezuela (Bolivarian Republic of) 137. Viet Nam 138. Yemen 139. Yugoslavia8 140. Zambia 141. Zimbabwe

Joined OECD in 1994 Withdrew in 2006 Joined EU in 2007 Membership of Former Yugoslavia was suspended temporarily in 1992 and permanently in 2003.