10:54 AM Apr 3, 1996

UNITED NATIONS: REFORMS SHOULD NOT BE 'MECHANICAL'

Geneva 3 Apr (Chakravarthi Raghavan) -- The reforms and restructuring of the UN system should be determined by policy objectives and not vice-versa nor driven by the artificial financial crisis created by the non-payment of substantial arrears and overdue contributions, the Chairman of the Group of 77, Amb. Fernando Berrocal Soto of Costa Rica, declared here at the opening of the meeting of the G77 chapters.

The meeting of the chapters on the eve of UNCTAD-IX, Habitat II and the World Food Summit, he hoped, would help enhance and harmonize the coherence of the approaches and positions of the G77 and China in their endeavours for the mutual benefit of the developing countries.

The G77 and China attached high political importance to the revitalization and strengthening of the UN role in promoting international cooperation for economic and social development and this was "the first priority in our international agenda".

The UN should be encouraged to develop its full potential in the field of international economic cooperation and should address urgently the serious economic and social problems facing the developing countries. To this end, the realization of the right to development as a basic human right should be given the utmost priority by the UN and the international community, Berrocol Soto said. The UN's array of organizations must operate as an integrated system within the framework of agreed policies. In the context of the economic and social fields, this should translate into the notion that institutional reform ultimately depended on the development of a policy framework of the UN, as agreed by Member States, and any institutional reform must be accompanied by sufficient resources.

The current financial crisis, the G77 chair said, was the consequence of non-payment of substantial arrears and overdue contributions by some Members, especially some of the major contributors. Viable solutions could emerge only when Member States pledge to pay their future contributions promptly, in full and without conditions in accordance with Art. 17 of the UN Charter, and take concrete actions to clear their arrears within a reasonable and defined time-frame.

The Costa Rican diplomat referred in this connection to the plan put forward by the G77 and China to address the question of arrears. with those in arrearage putting forward their repayment plans.

The developing countries through provision of troops and equipment to the UN system (for which they are yet to be fully reimbursed by the UN), were in fact financing the delays in payments by some major contributors of their assessed contributions, he stressed.

Downsizing the secretariat and reduction of staff by a purely mathematical formula was not per se an improvement. What was important was that the departments of the secretariat should be able to carry out the programmes that have been entrusted to them by the governments, and the number and quality of the UN staff should best serve the tasks of the Organization.

The process of reform should not be carried out as a consequence of the threat of a financial crisis, nor for the simple sake of reform or moved by artificial financial crisis.

"Inn this context, it is of special and political importance that the Group of 77 maintain a coherent position and preserve the essential solidarity on the issue of restructuring of the UN in the economic and social fields," the G77 chair said and appealed for coordination among the G77 chapters in this regard.

The UN Agenda for Development should provide the governments and the UN system the policy for implementing the international commitments for development and promoting sustained economic growth by implementation of international commitments and measures in the core areas of finance, external debt, international trade and access to science and technology.

The Agenda should also address the issue of strengthening cooperation and coordination between the UN, the Bretton Woods institutions, other parts of the UN system and the regional development banks and the WTO in order for international cooperation to respond effectively to the growing interactions between trade, monetary, finance and development issues.

The strengthening of the relationship between the UN and the Bretton Woods institutions was of vital importance for developing countries to ensure allocation of new and additional resources on grant and concessional terms and the implementation of the Agenda for Development.

On South-South cooperation and the promotion of ECDC/TCDC, the G77 chair said that Costa Rica would host in January 1997 a South-South Conference on Finance, Trade and Investment and hoped this conference would provide a concrete plan of action to enable developing country governments, the private sector, the business community and other civil society organizations to respond to the challenges and opportunities presented by globalization and economic liberalization.

To further the work of TCDC, and in accordance with the decisions of the UN General Assembly last December, steps were being taken by the office of the Chairman of the G77 and the UNDP to set up a Trust Fund for promotion of South-South cooperation, Amb. Berracal Soto announced.

The G77 chair stressed the high political importance attached by the group to ensure a greater role by the UN system in the field of development and in particular the role of UNDP, UNCTAD, UNIDO, FAO and Habitat as focal points for development of developing countries.

UNCTAD's work should continue to focus on global economic trends and on issues of international trade, trade and environment, investment, finance, enterprise development, services and technology from a development perspective. UNCTAD should also, within its mandate, continue to perform its development mission in the evolving institutional context.

The rapidly changing international economic environment characterized by the twin processes of globalization and liberalization represent important challenges to developing countries and UNCTAD should provide an important forum, and an effective instrument, to assist these countries to meet these challenges and from the opportunities arising from the international economy.

The G77 chair also underlined the importance by the group to UNIDO's role in promoting industrialization of developing countries and said "We are committed to strengthen and support UNIDO in fulfilling its development-oriented programmes for the well-being of the Third World."