10:44 PM Apr 30, 1996

RICUPERO CALLED MONDAY on UNCTAD's MEMBERSHIP

"Without a global vision, analysing the underpinnings of the complex economic phenomenon and undertaking empirical studies of successful developmental experiences, UNCTAD would be unable to offer sound technical assistance and policy advice to those who need it most," Ricupero said in initiating the general debate at the first formal plenary meeting of the Ninth Session of the UN Conference on Trade and Development.

While globalization and unification of markets were both "a new and irreversible reality", the key challenge before UNCTAD-IX was how to promote growth and sustainable development within the context of the two widely accepted realities (globalization and unification of markets): finding ways to take advantage of opportunities that arise and working together to minimize the higher risks that flow from these phenomenon".

There was also the second challenge of determining the future role of UNCTAD as an instrument for achievement of these objectives. Despite its 32 years of service to the cause of equitable economic development and many of the achievements to its credit, "UNCTAD's sole justification for its future existence must be its continued relevance and practical contributions to member states" and a successful conference would be one where the member-States would put in place "a revamped and revitalized UNCTAD."

Referring in this connection to the "sweeping reorganization" of the secretariat he had announced in Geneva, Ricupero called for an overhauling of the intergovernmental machinery and settle the terms of reference of the intergovernmental bodies, and set clear priorities for the coming years, but not to the detriment of UNCTAD's broad mandate.

Ricupero noted there was a "universal climate of gripping anxiety and fear, a fear of the unknown". Fear was infectious and can be disabling and in this respect "there is no distinction between seemingly mighty governments and humble individuals."

The pervasive malaise fuelled by fear, the possibility of a backlash against globalization, Ricupero said, had two basic causes: "the fear of an uncertain future, of losing one's job, of lower pay and of countries becoming marginalised" and the "feeling of injustice, the suspicion that once more the price of globalization will be paid by the poor and the weak."

There was only one remedy against fear. "We have to demonstrate that there is life after globalization."

While faith in the future is synonymous with hope, "hope does not thrive with injustice," Ricupero said.

"As national barriers fall down and a single unified market begins to take shape, competition is exacerbated". And competition, as every game, needs fair rules and strong arbiters, rules to empower countries and people to compete on an equal footing, efficient governments and international organizations to enforce these rules."

"It is in this regard that the slogan adopted by UNCTAD at Cartagena in 1992 of a 'Partnership for Development', must be given real significance in the coming period.

"Partnership implies solidarity, standing shoulder to shoulder and helping those less equipped to cope with a more competitive global economy. The logic of competition has to be balanced by the logic of solidarity."

Therein lies UNCTAD's vocation, Ricupero continued.

"UNCTAD must, and will remain, the guardian of world's development conscience, striving for greater equity and a narrowing of the disparities between nations. Those disparities are growing and they may be exacerbated, at least initially, by the forces of globalization and liberalization."

But that was no reason to be faint-hearted or to abandon the challenge. Rather, it was a reason to come up with new tools, such as information technology and new development strategies, particularly for LDCs, small economies, and those dependent on export revenues from one or two commodities.

Most of these countries were in Africa. Their growing vulnerability must be recognized by multilateral institutions and the international community at large "and appropriate, adequate, timely solutions must be found."

UNCTAD, he said, must offer practical advice and tangible support to developing countries, carefully calibrated in accordance with their differing stages of development and integration into the world economy. At the same time, UNCTAD must retain its role as a universal forum for discussions and consensus building on development issues, while providing members with the intellectual ammunition they need through provision of high-quality, development-oriented, macro-economic research.

"One without the other would be like the sound of one hand clapping," Ricupero added.

As for what UNCTAD should be doing over the coming period, Ricupero said a useful distinction should be drawn at the outset between those developing countries which needed help in developing supply capabilities and those which had a problem of access. "UNCTAD has the in-house capacity to work on both lines."

Helping developing countries to integrate better, and more fully, into the international trading and economic systems is clearly central. In the light of the Uruguay Round and the establishment of the WTO, UNCTAD is uniquely equipped to undertake several inter-related tasks.

Firstly, to prepare developing countries for the new demands that will be placed on them; to explain to them the opportunities provided by this more predictable regulatory environment, and to advise them on the consequences of globalization and liberalization.

Secondly, UNCTAD should be mandated to tackle, from both a macro and micro-economic perspective, the problem of marginalization and exclusion.

"These issues are by no means new. But the political will to do something concrete about it has, until now been largely lacking," the UNCTAD head commented.

The work being done in UNCTAD on sustainable development, such as on trade and environment, should be encouraged and promoted further. Ricupero was convinced that the "economics of environment" would shortly become a matter of growing concern and importance to policy-makers and "UNCTAD would be the right place in the international system for this to be undertaken."

As for the relationship between UNCTAD and WTO, Ricupero said any misgivings about whether there was room for both should be laid to rest. Strong and growing links were being established between the two in a clearly complementary and mutually supportive relationship, and the joint technical assistance programme announced by the two should be proof of this assertion.

"We have to build consensus on a balanced strategy for growth and development," Ricupero said in some concluding remarks. "We must seek to complement competition with solidarity, to balance efficiency of markets to create wealth and innovation with the need for an effective State capable of providing the legal and institutional frameworks for growth, income distribution and human development.

"We must recognize that each country has the primary responsibility for the adoption of sound macro-economic policies necessary for its development. As the President of Costa Rica put it, nobody will do for us what we ourselves do not want to undertake.

"But if this primary responsibility of taking one's destiny in one's own hands is a necessary condition, it is by no means sufficient," Ricupero said. "We absolutely need an international community that provides an enabling economic external environment of growth, renewed spirit of cooperation for development official aid and debt relief, particularly for those who will not be able to survive and progress if left to their own limited resources.

"We need today, as 32 years ago, no less determination to face the challenge of widening inequality, of absolute poverty, of human despair. Our first and foremost duty is towards the poorest among the poor, the least developed countries, the small and weakened economies. For UNCTAD, and for me personally, it is a matter of deep moral commitment and matter of honour that those countries receive from us more and better service.."

In a special plea for help to Africa, Ricupero reverted to the theme of justice, Ricupero noted that his own country had been built to a large extent by African forced labour. And without the talent and work of Africans, civilization would not have been built in many of our countries. "We have never given back to Africa what we took away from it... It is time `we start paying this human debt, much bigger than the other one, the financial debt to banks and governments. We have to come up with sensible and practical solutions to African needs..."