10:45 PM Apr 30, 1996

MINISTERIAL DECLARATION

The Declaration was adopted at the Eighth Ministerial meeting of the Group here Sunday, with the South African Foreign Minister, Alfred Enzo, chairing the meeting.

While the regional groups of Africa, Asia and Latin America and the Caribbean, had met preparatory to UNCTAD-IX, there was no meeting of the Group as a whole as had been customary. The one-day meeting here became a formal substitute.

The Declaration was adopted by the meeting after the presentation of the regional declarations and documents.

This was followed by a round table discussion, followed by a private meeting where some critical assessments were made about the functioning of the group, the need for unity and coordination.

In what was seen as a reference to a few, two or three, members from the Latin American region, opposing and blocking any coordinated functioning of the group as a whole, some of the speeches and interventions from delegations, reportedly suggested that if this minority did not like the overwhelming desire for coordination and group functioning they should stand aside.

A document of the South Centre, presented to the group by Mr. Branislav Gosovic heading the Centre's office in Geneva, asserted the continued relevance of the Group and noted that many of the systemic issues and unequal relationships that gave rise to the decision to form the Group persisted. Collective action in negotiations by the South had never been welcomed by the key countries of the North which had always subjected such unity and collective action of the G77 to criticism and discouragement.

With the end of the Cold War, arguments had been mounted that the group system was anachronistic and that development debates and North-South divisions were over.

While the New York Chapter of the G77, the paper noted, had continued to evolve and maintain effective cohesion, the Geneva Chapter, in a seeming response to these arguments and following the initiative of the Latin American group, "had dissolved into three regional groups with little effective coordination, all in the name of 'partnership' with the North."

"Yet the developed countries, the other partner in this partnership, has continued to act together and coordinate their positions visavis the South -- both in UNCTAD and throughout the multilateral system," the South Centre said.

The Geneva chapter's approach was "tantamount to unilateral disarmament by the weaker partner" while the stronger partner has "not only maintained its cohesion and policy goals but has strengthened its position and has become "openly hegemonic".

This apparent disorientation of the South, the inadequate response of the G77 in Geneva in the context of the new North-South relations, has considerably weakened the influence of the developing countries, and has had an unfavourable impact in relation to UNCTAD during a critical phase. They have been unable to counter effectively efforts of the North to reorient UNCTAD and erode or eliminate its capabilities and mandates in areas of vital concern to the South.

The South Centre called for reinvigoration of the G77 -- through an updating of the platform, improving the participation of the member countries including through commitment of financial and human resources, and improving the functioning of the Group.

The requirements for a full policy consensus has resulted in a policy paralysis when one or a few countries have blocked action or a policy position based on such a low common denominator that it wholly frustrated the effort of the great majority.

A review of the practice was required. Either countries far removed from the sense of the great majority should be given the opportunity to abstain on given issues so as not to obstruct the Group's position and action or adopt the G-15 principle that if a core group of countries were ready to initiate and implement joint action they should go ahead.

Calling for a high political profile and commitment, the South Centre said that for the group to be put on the defensive by the North's rhetoric which depicts as confrontational collective attempts of developing countries to increase their influence in pursuit of their own interests or to dissent from the North's views "is to fly in the face of reason".

In interactions between governments, "respect and influence can only be gained from a position of strength and dignity," the South Centre paper added.

In the Ministerial Declaration, the G77 and China referred to the many far-reaching changes in the world economy, due to the complex phenomenon of globalization and liberalization, and the many opportunities for growth and development 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."

The declaration called for full and effective participation of developing countries in the process of decision-making and in the resolution of world economic problems through strengthened multilateralism, and for the improvement of macroeconomic policy coordination on a global basis aimed at promoting sustained growth and development of the developing countries.

The G77 and China reaffirmed the continuing relevance and role of UNCTAD as the principal forum of the UN General Assembly for the integrated treatment of development and inter-related issues in areas of trade, finance, investment, services, commodities, technology, sustainable development and promotion of international economic relations conducive to development.

While acknowledging the need for reform and revitalization of UNCTAD, the G77 and China said: "We should ensure that UNCTAD makes a meaningful contribution to improving the conditions of life of all of our peoples."

The declaration also called for review of implementation of policies and decisions of the intergovernmental bodies of the system and promote coordination between UNCTAD and other international organizations, in particular WTO and the Bretton Woods Institutions.

In terms of the future, UNCTAD should contribute to the preparation of the agenda for future multilateral negotiations and focus on delivery of practical services of technical cooperation and advice on trade, negotiations, commodities, investment promotion, enterprise development, trade and environment, trade efficiency and services.

The eradication of poverty in large parts of the developing world is an "ethical, social, political and economic imperatives for the international community... (and) 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 Social Summit.

UNCTAD was also called upon to continue to analyze the issues of external debt of the developing countries and to reinforce technical cooperation in this matter.

While the Uruguay Round agreements and establishment of World Trade Organization had boosted confidence in the multilateral trading system, its credibility and sustainability were being threatened by the emerging recourse to unilateral and extra-territorial measures.

The G77 and China expressed their "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 what was seen as a reference to the US Helms-Burton law of tightened sanctions against Cuba, the Declaration also objected to "the new attempts aimed at extra-territorial application of domestic law, which constitutes a flagrant violation of the UN Charter and of WTO rules."

The declaration called for renewed political commitment to free trade and the full implementation in letter and spirit of the Uruguay Round Agreements. It also called for developing countries seeking accession to the WTO to achieve accession on balanced terms consistent with WTO rules, as well as level of their economic development, trade, and financial and developmental needs.

The G77 and China called on UNCTAD to transmit to the Singapore Ministerial meeting of the WTO, its assessment, from a development perspective, of challenges and opportunities arising from the Uruguay Round, including the new and emerging issues to ensure that the benefits of the evolving multilateral trading system promote sustained economic growth and sustainable development.

The present situation called for real partnership and international cooperation. UNCTAD-IX provided an exceptional opportunity to reinvigorate the dialogue on development and all governments should spare no efforts to seize the opportunity of forging a real global partnership. The international community should promote concrete policies, measures and actions to achieve the objectives of sustained growth and sustainable development.