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XII Ministerial Conference, New Delhi, April 1997

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CHAPTER III: ECONOMIC ISSUES

A. The Movement and International Economic Issues
B. Agenda for Development
C. International Trade and Commodities
D. Development Finance, Monetary and Financial Issues
E. Science and Technology

F. Industrial Development Cooperation
G. Environment and Development
H. South-South Cooperation
I. Information and Communication
J. Follow-up of Major Conferences and Summits
K. Critical Situation in Africa
L. Situation of Least Developed Countries
M. Small Island Developing States (SIDS)


A. The Movement and International Economic Issues

  1. The Ministers reviewed the evolving international economic situation, particularly since the Cartagena Summit in 1995. They observed that:
  • the high growth of some developing countries was contributing significantly to the locomotive forces of world economic growth and stressed that the process of global integration of developing countries was thus paying dividends to the industrialized countries as well. The growth of developing countries as a whole had continued to outpace that of developed countries in the last two years and this trend was likely to continue;
  • however, the world economy has demonstrated moderate growth rates that have fallen far short of expectations while the developing countries continued to assume the high costs derived from economic reform policies, the lack of coordinated policies in the developed countries to increase demand, stabilize markets and liberalize trade so as to provide a favorable international economic environment for the developing countries has been disappointing. Even the most strenuous efforts by many developing countries to capitalize on opportunities flounder in the face of structural global economic constraints, which include persistent debt burdens, declining ODA flows, currency fluctuations, uneven investment flows and overly cautious deflationary policies of developed countries;
  • signs of growth notwithstanding, large number of developing countries continue to face serious economic difficulties as the process of globalization has put severe strain on their development prospects. Poverty has continued to increase causing immense human suffering in these countries;
  • global economic growth was driven by rapidly growing international trade and investment flows compared to world output, underlining that prospects of spreading growth across countries and regions largely depended upon greater participation of developing countries in these flows;
  • the extent and spread of Foreign Direct Investment (FDI) inflows into developing countries, though demonstrating an increase, remained uneven. Some developing countries recorded substantial increases in their share of FDI outflows and greater integration in the global industrial economy;
  • some developing countries achieved substantial and positive changes in their production and infrastructure capacities, international competitiveness and investment attractiveness, thereby creating new complementarities and strengths to promote South-South cooperation;
  • increased trade, investment and technology flows between developed and some developing countries were a positive sum equation for growth, development, employment creation and enhanced prosperity for all. Nonetheless, this process still eludes a number of developing countries, particularly within the LDCs and African countries. In spite of signs of economic progress in some African countries, a large number of countries in the region, continue to face serious economic and social difficulties, The debt burden, the decreasing flow of financial resources and the low commodity prices remain the principal obstacles of economic development in some of these countries.

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  1. The Ministers stressed that current trends of globalization and liberalization have had a variable impact on developing economies. While some signs of progress in some countries have been noticed, a large number of NAM Member States continue to suffer from economic stagnation and marginalisation. The Ministers noted that the gap between rich and poor countries continued to widen. The uneven impact is compounded by new challenges relating to issues of access to markets, to capital and to new technologies. They underlined that the development dimension and the needs, priorities, capacities and potential of developing countries should be at the center of any global vision for the coming decades. This will ensure that processes of globalization and liberalization as well as the prosperity, stability and security generated by them, materialize and are sustained. At the same time, it will ensure that the developing countries would avoid the risks arising from the process of globalization, including the risk of marginalisation.
  1. The Ministers reiterated that the developing countries have not only impacted on world economic growth and input demand in a significant way, but constitute a dynamic and integral part of the international economic order. The Ministers, however, regretted the fact that the voice of developing countries in decision making still did not realistically reflect their emergence as important actors in the world economy. They urged developed countries to give this cumulative contribution and role, meaningful and commensurate recognition. Therefore, the participation of developing countries in global economic decision making, including in the economic, trade and financial institutions should be enhanced.
  1. The Ministers urged the developed countries to ensure that economic agreements and mechanisms fully take into account the concerns of all parties specially developing countries and incorporate a balance of interest and benefit. In particular, the special importance of supporting development policies and objectives of sustained economic growth of developing countries should be recognised. They called on the developed countries to ensure the fulfillment of their obligation to meet the UN target of 0.7% of their GNP for overall Official Development Assistance (ODA) for the development of developing countries, and also to ensure that within that target 0.15 to 0.20% of GNP is earmarked for the Least Developed Countries (LDCs).
  1. The Ministers reaffirmed the need to establish an open, rule based, accountable, predictable, just, equitable, comprehensive and non-discriminatory global system of economic relations, specially at a time when developing countries were actively engaged in the constructive process of liberalization and integration into the global economy. They urged the developed countries to undertake necessary structural adjustments and refrain from protectionist tendencies, emerging out of unfounded fears, against competitive imports from developing countries and against FDI outflows to them, in the interest of new growth opportunities.
  1. The Ministers called on developed countries to refrain from the use of trade and investment to achieve non-economic and/or domestic objectives, such as those relating to labor standards, intellectual property rights, human rights, and environment. The Movement while subscribing to the values inherent in these issues, stressed that such conditionalities and restrictive measures on trade and investment pose a danger for the multilateral economic system and the trade and investment prospects of developing countries.
  1. The Ministers called on the developed countries to assist the efforts of developing countries through the creation of a favorable global economic environment, in particular through domestic actions in their countries for purposes of accelerating FDI flows to developing countries so that they have a positive impact on the development efforts of developing countries and their integration into the multilateral trading system.
  1. They also called on the developed countries to substantially reduce tariff and non-tariff barriers to imports from developing countries and desist from frequent and unjustified resort to safeguard action, countervailing duties, anti-dumping duties, and restrictive business practices, which deny or negate the inherent comparative advantage of developing countries and the competitive advantage of their enterprises, and which distort and disrupt trade and adversely impact on development of developing countries, and the multilateral trading system as well.

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  1. The Ministers stressed the importance of promoting global partnership so as to effectively overcome the formidable constraints on development. They also stressed that the dialogue between the developed and the developing countries should be based on the mutuality of interests and benefits, shared responsibilities and genuine interdependence. They welcomed the efforts of the Movement to continuously engage with the Group of 7 as well as with other parties in a meaningful and productive dialogue so as to reach better understanding and to respond more positively to the development aspirations of the developing countries, taking into account the concerns and interests of the Member States, including Least Developed Countries (LDCs) and African countries. The Foreign Ministers appreciated the efforts of H.E. President Ernesto Samper of Colombia, Chairman of the Non Aligned Movement, to institutionalise the mechanism for consultation with the Chairman of the Group of 7 in order to promote dialogue and foster greater understanding of the aspirations, views and positions of the developing countries on important issues. They agreed that the Coordinating Bureau should recommend a format, the frequency and the agenda of meetings with the Group of 7 and other leaders of the world. They also requested the Chairman of the Coordinating Bureau of the NAM in cooperation with the Chairman of the Group of 77, to initiate preparations for such meetings in particular in the context of the forthcoming 6-7 Summit to be held this year in Denver, US.
  1. The Ministers emphasised the considerable importance of Foreign Direct Investment for development of their countries, promotion of transfer of technology including environmentally sound and safe technologies, building up of indigenous capacities and generation of employment. They attached particular importance to FDI inflows in the infrastructure sector and manufacturing sectors. FDI must not only contribute to the acquisition of the required financial resources and the opening of markets to trade, but also to the training of personnel in the recipient country and seek an adequate social impact through the regulations that may be established. To that end, agreements between countries including national treatment, the most favored nation clause and just and equitable contractual relations in the context of FDI should be respected. They noted that NAM countries had taken several steps to create a climate conducive to FDI inflows. They called upon the major industrial countries to take complementary steps so that the actions undertaken by the developing countries could have maximum development impact and prevent their marginalisation in the global economy.
  1. The Ministers reiterated the need to enhance the development impact of the UN and other multilateral institutions, including regional organizations. This would require enhancing the availability of resources, democratization of decision making in the multilateral financial institutions and enhancing the role of developing countries in international economic decision making, with a view to satisfying the priorities and needs of developing countries for which necessary means should be adopted as well as a propititious climate should be fostered.
  1. The Ministers decided to set up an ad-hoc Panel of Economists from Non-Aligned countries to assess the current international economic situation from the perspective of developing countries and to identify and analyze major issues of concern to them and to assist in developing a positive agenda of the South. The Chairman of the Movement, in association with the host country of the Conference, would consult with member States on the establishment of the panel and on its work programme to enable it to report to the XII Summit which will be held in South Africa in 1998.

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B. Agenda for Development

  1. The Ministers reaffirmed that the Agenda for Development must be responsive to the needs of the developing countries and called for its timely adoption by United Nations General Assembly. It should provide an opportunity for placing development at the forefront of the international agenda. The implementation of this Agenda should be reflected in the reduction of existing fundamental imbalances and inequities. This Agenda must lead to a strengthening of the role of the United Nations in development and should intensify the positive evolution of the relationship between the UN, the Bretton Woods institutions, the World Trade Organization and other multilateral institutions connected with development matters and also climate in the increase of developing countries' role in the decision making process of these institutions.
  1. The Ministers noted with concern that much of the ongoing discussion in the international fora on the issue of development merely attempts at diverting attention away from the real development issues, such as those relating to economic growth, stimulating private financial flows, building equitable regimes covering all areas of trade, and effecting technology transfers.
  1. In the context of ongoing discussions in the Working Group on Agenda for Development, the Ministers stressed the need for adequate resources to implement the Agenda for Development. They, therefore, emphasised that the question of adequate funding for ensuring accelerated and sustained economic growth in developing countries particularly in the LDCs and African countries must be addressed and provided for in all seriousness and urgency. They called upon the developed countries to guarantee new and additional resources for the implementation of the Agenda for Development.

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C. International Trade and Commodities

  1. The Ministers recalled that in the area of trade, their countries had welcomed the results of the Uruguay Round and the creation of the World Trade Organization in Marrakesh as milestones towards liberalization and reinforcing of multilateralism. The Ministers further noted that in a number of crucial areas the negotiated results of the Uruguay Round fell short of the expectations of the developing countries and that they had yet to realize the expected benefits, welfare increases and better market access. They regretted that the implementation of the Uruguay Round results in areas of export interest to developing countries, particularly to LDCs, has been inadequate and tardy. Trading opportunities of developing countries were sought to be neutralized by the use of protectionist measures, including those taken unilaterally and in the guise of technical standards, environmental, social, or human-rights-related concerns.
  1. The Ministers called for:
  • a universal membership of WTO and support for facilitating an early admission of NAM and other developing countries to this body;
  • urgent implementation of Uruguay Round Agreements, specially in areas of export interest to developing countries, including the timely and meaningful phasing out of restrictive quotas under the Agreement on Textiles and Clothing;
  • the full implementation of the provisions of the Uruguay Round Agreements that provide for special and differential treatment for developing countries, in particular net food importing countries and LDCs and for an examination of measures that need to be taken to expand the scope of these provisions;
  • need for improvement of the functioning of international commodity markets through efficient, transparent, stable and adequate price formation. They also called for international support to the developing countries efforts to modernize and diversify their commodity activities, in order to increase their external revenues and to improve their competitiveness in the face of persistent instability of prices and the general deterioration in terms of trade;
  • refraining from introducing into the WTO agenda extraneous issues with no direct relevance to trade and which reprioritise the agenda of WTO. The choice of new issues and the way rules are drawn up in the WTO should fully integrate the development dimension and should not adversely effect the comparative advantage of developing countries and competitive advantage of their firms participating in global trade;
  • safeguarding special arrangements in export markets for products of strategic importance to developing countries, especially those with small vulnerable economies;
  • assistance to developing countries to take advantage of the new trading opportunities and addressing difficulties faced by them in major markets and trade in services, such as tariff peaks, preference erosion, tariff escalation and the misuse of anti-dumping measures and countervailing duties;
  • increased market access for exports of developing countries, specially in respect of sectors and areas of trade in goods and services where they have a comparative advantage;
  • provision of liberalized and preferential market access by developed countries for developing countries through improved and strengthened GSP and other preferential schemes, and extension of their scope to cover new areas and sectors now in the WTO actions to be taken to maximize the opportunities and to minimize the difficulties of African countries in adjusting to the changes introduced by the Uruguay Round. Decision on measures concerning the possible negative effects of the reform programme shall be effectively applied;
  • furthering the freer movement of all factors of production, including movement of natural persons;
  • ensuring that the international trading system fully reflects the development perspective, both in terms of areas selected for rule-making as well as in terms of the balance of rights and obligations and the benefits therefrom;
  • an ongoing, systematic analysis of the Uruguay Round Agreements to be carried out by UNCTAD. In this regard, they urged UNCTAD to undertake impact analyses of existing agreements and to study the developmental implication of proposed agreements;
  • developing countries to consult closely while formulating their positions on the issues being addressed by the World Trade Organization. In this regard, they urged developing countries to work together to elaborate a forward looking agenda for future trade negotiations which would incorporate issues of concern to the developing countries, and would thereby enable them to take the initiative in any future round of negotiations.

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  1. The Ministers condemned persistence by certain States in intensifying unilateral coercive measures and exercise of domestic legislations with extra-territorial effects against developing countries, such actions include blockades, embargoes and freezing of assets with purpose of preventing these countries from exercising their right to fully determine their political, economic and social systems and freely expand their international trade. They confirmed that these measures are contrary to international law, and international free trading system, and called for their immediate cessation. They also upheld resolution 51/22 of UN General Assembly dated 6th December 1996, and called on all States not to recognise the legislations adopted by a State whose effects go beyond its territories through the imposition of sanctions on individuals and companies of third countries.
  1. The Ministers noted that regional and sub-regional arrangements on economic cooperation and integration are intensifying. They agreed that these can contribute significantly to development and growth of world economy, inter alia through the promotion and liberalization of trade, investment and technology transfers among NAM and other developing countries, while noting the importance of the multilateral trading system, the Ministers appreciated efforts by developing countries to strengthen intra-regional trade. On the other hand, they cautioned against regional arrangements raising new barriers.
  1. The Ministers appreciated the moves towards regional cooperation through a South Asian Free Trade Area, an ASEAN Free Trade Area, and a Latin American Free Trade Area, Action Plan for Arab Free Trade Area, and the activities of the Economic Cooperation Organization (ECO), Gulf Cooperation Council (GCC), Southern African Development Community (SADC), COMESA, EAEC, ECOWAS, Economic and Monetary Community of Central Africa (EMCCA), Economic Community of Central African States (ECCAD), West African Monetary Union, CARICOM, the Andean Pact, the Latin American Integration Association, the Association of Caribbean States and the Central American Integration System to promote inn-regional trade. They noted with satisfaction the work of the Arab Maghreb Union and the establishment of the Indian Ocean Rim Association for Regional Cooperation (IOR-ARC) to promote regional cooperation. In this context, they also took note of the positive efforts being made by the members of SAARC under SAPTA.
  1. The Ministers expressed satisfaction with the results achieved in UNCTAD IX held at Midrand, South Africa as well as the effective coordination and the positions taken by the Movement at the Session. They emphasized the need to strengthen the development agenda of the United Nations, and stressed UNCTAD's position as the primary organization in the UN system which can comprehensively examine trade and development and related issues in an integrated fashion. They reaffirmed the important consensus building role of UNCTAD which had been recognised in UNCTAD IX. Welcoming the reforms in UNCTAD, they called for ensuring that these reforms do not impair its ability to assist developing countries. In the context of the reform of the UN it is therefore essential to preserve the mandate and the independence of UNCTAD and its role in promoting development. They welcomed the adoption of a detailed programme of work for UNCTAD for 1998-2001 in trade in goods and services, investment, enterprise development, technology and finance. They called on UNCTAD to continue offering support to developing countries, with special attention to the African Countries and LDCs, with a view to facilitating their participation in the world economy, in true partnership for development and on an equal basis, and in this context called upon international community to contribute generously to the UNCTAD Trust Fund for the LDCs.
  1. The Ministers emphasised the importance of the analytical work and policy research conducted by UNCTAD to facilitate an integrated consideration of issues related to trade, investment, technology, services and development. They welcomed the decision at the recent Ministerial Meeting of the World Trade Organization in Singapore in December 1996 to draw upon the work in UNCTAD on investment and trade and competition policy in any consideration of the matter. They called on UCTAD to fulfil its mandate of identifying and analyzing implications for development of issues relevant to a possible multilateral framework on investment, taking fully into account the interests of developing countries.
  1. The Ministers recognizing the role of UNCTAD as the principal forum of UN General Assembly for the integrated treatment of development and related issues in the areas of trade, finance, technology, investment and sustainable development, were of the opinion that the Tenth Session of UNCTAD, 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. They also noted that there was a possibility that the Session would be held at the Summit level.
  1. The commodity sector contributed significantly to the national development and determined terms of trade of developing countries. The Ministers expressed their concern on the deterioration of prices and disorganization in certain commodities markets. The Ministers emphasized the importance of diversification, promotion, improvement of marketing prices and development of commodity and called upon the international community to support the efforts of developing countries to improve the processing, marketing, distribution and transportation of commodities. They noted the contribution of the Common Fund for Commodity through its programmes, to the achievement of the above mentioned objectives. Therefore, the Common Fund for Commodity deserved to be strengthened in order to serve for the best interest of developing countries.

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D. Development Finance, Monetary and Financial Issues

  1. The Ministers were concerned at the sharp decline in availability of concessional finance for development. Aid from developed countries as a proportion of their GNP has fallen to the lowest recorded level since the UN adopted the target of 0.7% of GNP as ODA in 1970. They regretted that the current discussions on development were increasingly sidelining its external dimensions. They reiterated that development could only occur in a conducive and supportive international economic environment in which the major developed countries shoulder a special responsibility. They called on the developed countries to coordinate a strategy of economic expansion to raise demand, accelerate and stabilize world growth, undertake significant policy adjustments and promote sustained and substantial flow of Official Development Assistance. The Ministers stressed that FDI can only supplement and complement concessional finance, which was a major requirement for economic and social development of developing countries. The Ministers noted that most developing countries were not in a position to attract sufficient Foreign Direct Investment (FDI). They, therefore still depended to a major extent upon ODA to advance their development purposes
  1. The Ministers emphasised the necessity for the reformation of the Bretton Woods institutions in order to enable them to render a major contribution towards international financial stabilization and capital flow towards developing countries and assisting to develop financial risk-averse instruments in this respect. Requirements of developing countries for concessional funding from all sources have increased and not decreased and need to be adequately met, especially for investment in infrastructure and other priority areas, strengthening the creditworthiness of developing countries, support the implementation of economic reforms and eradication of poverty, allow the appropriate management of their debt and increase financial resources so as to achieve sustained economic growth and sustainable development.
  1. They stressed the urgent need to reach a satisfactory conclusion on the Eleventh General Review of SDR Quotas so as to meet the liquidity needs of developing countries and give impetus to global growth. The Ministers expressed satisfaction at the 11th Replenishment of IDA and stressed the need to ensure that the level of IDA commitments in the next three years is maintained by the developed countries in nominal terms at least at the same level, as was done during the 10th replenishment period.
  1. The Ministers stressed the importance of Enhanced Structural Adjustment Facility (ESAF) as a source of concessional funding for poor countries. They underlined the need to place ESAF on a self-financing basis through substantial contributions from industrial countries and if required, supplemented by sale of a limited quantity of gold, without prejudice to gold producing developing countries and other developing countries.
  1. The Ministers recalled the decision taken at the Cartagena Summit and declared that when the Structural Adjustment programmes (SAPs) are agreed to, they should be fully funded by the developed countries and include social development goals, in particular eradicating poverty, promoting full and productive employment and enhancing social integration.
  1. The Ministers stressed that mounting external indebtedness continued to cripple the development efforts of a large proportion of the developing countries. They deplored the negative phenomenon of net reverse transfer of flow from developing to developed countries economies. Despite numerous strategies, a final solution continued to elude the developing countries. Thus, they advocated the importance of a "once and for all" approach which would reduce the overall debt burden and service to the levels necessary to restore development through meaningful reduction of all categories of debt by major group of creditor developed countries, including multilateral creditors. This would include adopting an integrated approach for all types of indebtedness including multilateral bilateral or commercial, which could help to achieve a comprehensive, effective, equitable, development oriented and durable solution to the debt and debt servicing problem. They called for implementation of bold measures of debt cancellation for Highly Indebted Poor Countries (HIPCs). They further stressed that any solution should be non- discriminatory and transparent and should lead to net transfer of new resources from the developed to the developing countries. The Ministers underlined that the assessment of contribution from developed country creditors should be based on the provision of additional resources so as to prevent diversion of scarce development funds for debt relief.
  1. In this context, the Ministers welcomed the initiative of the international financial institutions to assist the HIPCs in seeking to resolve their debt problems and stressed the need for speedy and full implementation. They also stressed there was a number of elements that need to be strengthened. Developed countries are urged to consider shortening of the adjustment period in keeping with the criticality of the situation in the concerned HIPCs as also the eligibility of additional HIPCs for debt burden relief. Furthermore, while welcoming the decision by the Paris Club, the Ministers believed that the debt reduction would have been more substantive if the Paris Club had considered to reduce debt by 90 percent as proposed recently by the Ministers of the Group 24. They also pointed out that it was important not to introduce new conditionality.
  1. The Ministers recalled the endorsement given by Heads of State/Government during the Cartagena Summit to the idea of creating a Ministerial Group with the participation of Ministers from Developing countries including from the LDCs and developed countries to jointly review the operation of the international monetary and financial system and formulate recommendations aimed at its reform. The reform should, interalia, be geared towards supporting the requirements of the developing countries with a special attention to the needs of the LDCs and should promote greater interaction with United Nations system. They also endorsed the initiative to convene an international conference on the financing of development to deal with issues of capital flows and resource mobilization.

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E. Science and Technology

  1. The Ministers underlined that the Progress of developing countries is dependent both on access to technology and on their endogenous capacity to develop it. They attached special importance to environmentally sound and safe technologies and biotechnology. They expressed their concern at measures aimed at blocking, for political and other ends, the transfer of technology to developing countries. The controls imposed by highly industrialized countries on the export of dual-use technology and other types of sensitive technology should not be used to prevent access of developing countries to technology for peaceful, developmental purposes.
  1. The Ministers welcomed with satisfaction the implementation by the Center for Science & Technology of Non-Aligned Countries of an expanded programme of cooperation. They stressed, however, that the Center requires a sufficient level of commitment and financial contribution in order to be able to serve the Movement effectively. They called upon all Non-Aligned countries and other developing countries to subscribe to the Statute of the Center and strengthen the Center financially.
  1. The Ministers welcomed the outcome of the Meeting of Experts on Science and Technology of the Non-Aligned Countries held in Cartagena from 17 to 19 March 1997, and approved the Cooperation Plan on Science and Technology in the area of biodiversity adopted by the Meeting of Experts contained in document NAC/FMl2/Inf.001.

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F. Industrial Development Cooperation

  1. The Ministers recalled the Declaration on UNIDO adopted at the XIth Summit of the Movement and stressed the continuing importance and relevance of UNIDO as the central coordinating agency in the UN system in the field of industrial development. They welcomed the reform process undertaken successfully by UNIDO, enhancing its effectiveness with a firm stand for supporting and promoting industrial development and for providing specialized technical services. They re-affirmed their commitment to support and strengthen UNIDO to enable it to fully exercise its mandate. The Ministers called upon all Member States of UNIDO, in particular the industrialized countries, to renew their commitment to industrial development co-operation and to a stronger and more viable UNIDO in the spirit of global partnership and mutual benefit. They urged some developed countries to reconsider their announced withdrawal from UNIDO. They underscored the need to secure the future of UNIDO as a specialized agency vital to the promotion of industrial development in developing countries in the context of the multilateral development cooperation system.

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G. Environment and Development

  1. The Ministers recalled the spirit of partnership and cooperation invoked at the UN Conference on Environment and Development at Rio de Janeiro in June 1992. They noted with satisfaction the importance given to the issue of environment and development by the Movement of Non-Aligned Countries. The Ministers underlined the effective actions undertaken by all Non-Aligned countries for the implementation of Agenda 21 under extremely difficult and unfavorable international circumstances. They noted the progressive development of environmental law in several Non-Aligned countries. The Ministers observed that while environmental problems of developed countries are associated with unsustainable patterns of consumption and production, those afflicting developing countries are, to a large extent, the result of poverty and underdevelopment and of their technical and financial limitations. They stressed that the overriding priority of developing countries was eradication of poverty and that sustainable development must therefore be considered within the context of sustained economic growth, with eradication of poverty as the primary objective.
  1. The Ministers noted with grave concern that five years after the Earth Summit:
  • the required new and additional resources for implementation of Agenda 21 had not been forthcoming;
  • transfers of environmentally sound technologies and technical know-how on concessional and preferential terms had not materialized;
  • the requirements of the pivotal concept of "common but differentiated responsibilities" has not gained adequate attention and not received a practical commitment by developed industrial countries; and
  • the failure to maintain a balance between the social and economic issues and the conservation and management of resources for development, with an overemphasis on environmental protection has undermined development as the building block of Agenda 21.
  1. The Ministers therefore called for urgent implementation of the commitments, recommendations and agreements reached at the UN Conference on Environment and Development. They stressed the need for Non-Aligned countries to prepare and effectively project coordinated NAM positions during the Special Session of the UN on the Review of the Implementation of Agenda 21. The Special Session should assess the progress made since 1992, analyze the reasons for the failures to implement the international commitments made, and identify measures that need to be taken for the full and accelerated implementation of Agenda 21, without reopening issues agreed in Rio de Janeiro.
  1. The Ministers reiterated their support to UNEP as the forum to deal, in an integrated manner, with environmental matters, to its mandate in building consensus on new and emerging issues in fields of environment and its role of coordination and analysis.
  1. The Ministers recognised the critical issue of water in the world and its strategic nature for humanity. They welcomed, in this regard, the Marrakesh Declaration adopted by the first world water Forum held on 20 and 21 March 1997 in Morocco, and recommended examination of the advantages of the conversion of this Forum into a permanent institution in order to coordinate international cooperation and promote the transfer of technology in this field. In this context, the Ministers welcomed the appeal of His Majesty King of Morocco, for the creation of an international Fund to combat the water pollution and to enhance the international cooperation in this area.
  1. The Ministers of the Non-Aligned Countries Parties to the Convention on Conservation and sustainable Use of Biodiversity underlined the importance of the biosafety protocol, in negotiations, and the need to provide financial and technical assistance to developing countries and to assist their institutional capacity building to allow them to manage rationally their needs and their capacities concerning safety in biotechnology.
  1. The Ministers called for the strengthening of UN Environment Programme (UNEP) and HABITAT and for ensuring that adequate funds are allocated for their various mandates. They further urged for the full utilization of the facilities of the two agencies on meetings on environment and human settlements.
  1. The Ministers expressed their concern that the developed countries, either directly or through international institutions, resort to environmental pretexts to increase obstacles to trade, intervene in the internal affairs of developing countries and impose conditionalities on official assistance and the financing of development, while their unsustainable production and consumption patterns continue to severely affect the environment. They emphasized that in no case does the adoption of measures based on these pretexts make any positive contribution to the conservation of the environment.
  1. The Ministers urged the international community for ensuring a full and effective implementation of the Convention to Combat Desertification in those countries experiencing serious Drought and/or Desertification, particularly in Africa, especially through the provision of new and additional financial resources.

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H. South-South Cooperation

  1. The Ministers reiterated that South-South cooperation is an essential mechanism for promoting accelerated economic growth and development and self reliance, giving a greater dynamism to the world economy and promoting the restructuring of international economic relations. They stressed that South-South cooperation should be promoted through the sharing of development experiences, transfer of technology and exploiting the latent synergies and complementarities between the Non-Aligned countries and increasing the FDI flows and economic cooperation among them. They noted the considerable development of capacities in the South, which should lend significant impetus to South-South cooperation. The Ministers noted the bilateral cooperation programmes promoting South-South cooperation undertaken by several Non-Aligned countries and called for extension of such programmes with the LDCs. They at the same time reiterated their conviction that evolutionary and tripartite approaches should be intensively explored and implemented. The Ministers considered that institutions and mechanisms created in the context of the Action Programmes on Economic Cooperation (APEC) of the Non-Aligned Movement should be reactivated.
  1. The Ministers stressed that the scope offered by the Global System of Trade Preferences (GSTP) in promoting South-South cooperation should be fully exploited and called for a further strengthening of the GSTP. The Ministers called upon all Member States of NAM to join the GSTP and contribute to make it a viable and strong instrument for liberalizing and promoting South-South trade. The Third Round of the GSTP should be launched and result in meaningful expansion of intra-South trade and investment.
  1. The Ministers noted the positive outcome of the South-South Conference on Trade, Investment and Finance held in Costa Rica in January 1997, including the San Jose Plan of Action.
  1. They also took note of the important and positive role played by the Joint Coordination Committee of the Non-Aligned Movement and the Group of 77 (JCC) over the past few years in advancing the common positions of the developing countries on different global issues.
  1. The Ministers reaffirmed the commitment to harmonizing their efforts to bring greater coherence and further consolidate the unity and to promote greater interaction among the developing countries. In this regard, the Ministers noted the fact that many areas of the NAM's Action Programme on Economic Cooperation (APEC) overlapped with those of the Group of 77 Caracas Programme of Action (CPA) and considered also the limited capacity of countries of both the Movement and the Group of 77 to provide financial support for the implementation of South-South cooperation. Bearing in mind the mandate of the JCC whose objective of establishment is to harmonize the NAM's APEC and the G-77's CPA, they instructed the JCC to make appropriate recommendations to the next NAM Summit through the Coordinating Bureau.
  1. The Ministers reaffirmed the importance of political will that must underlie all South-South cooperation and in this regard they stressed that the proposal for convening a South summit contained in the San Jose Declaration should be explored on priority basis.
  1. The Ministers acknowledged that the full potential of South-South cooperation is yet to be realized. They therefore committed themselves to strengthening and expanding the present efforts, initiating new and concrete forms and priorities for cooperation including projects by groups of developing countries, and devising realistic and viable modalities for their implementation.

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  1. The Ministers called for:
  • the holding of a UN Conference on South-South cooperation;
  • promotion and strengthening of TCDC programmes to encourage systematic exchange of information and development experiences between NAM countries;
  • strengthen TCDC programmes in the context of the agencies of the UN systems, taking into account positive outcome of the FAO;
  • cooperation in human resource development for economic growth and social development;
  • expansion of scholarships, fellowships, student exchange programmes, short-term technical training programmes, and the creation of Centers of Excellence in Non-Aligned countries;
  • promoting, facilitating and enhancing the activities of all sectors of their economies, in the area of South-South cooperation;
  • cooperation from developed countries and international, and regional financial institutions in promoting and facilitating South-South cooperation;
  • greater interaction amongst Central Banks, Finance Ministries, and financial institutions of Member countries to promote trade and other South-South Cooperation activities;
  • special and additional preferences be accorded to LDCs during the next round of Ministerial level of the Generalized System of Trade Preferences, with a view to enhancing their competitiveness and market access.
  • promotion of direct investment flows among developing countries, through bilateral and multilateral arrangements and free economic trade zones, based on favorable and competitive term, which in turn would generate larger markets at the bilateral, sub-regional, regional and inter-regional level.
  • the reduction of both tariff and non-tariff barriers to trade among the NAM countries.
  • regional and sub-regional cooperation and integration as an important aspect for the promotion of North-South and South-South cooperation.
  1. They welcomed the fact that many countries in the South had become economically and technologically dynamic and acquired new global capabilities in industry, agriculture, infrastructure and services. This made for unprecedented opportunities for South-South cooperation based on these merging strengths and complementarities and through intensified regional cooperation, trade expansion, joint ventures, technical collaboration and the transfer of knowledge, experience and skills.
  1. The Ministers noted with satisfaction the progress made in the establishment of the Non-Aligned Movement Center for South-South Technical Cooperation in Indonesia with the cooperation of Brunei Darussalam. They reiterated the importance of the Center as one of the vital and effective means for promoting and accelerating development in the developing countries and as an integral part of the endeavors of the Movement to further strengthen South-South Cooperation. The Ministers invited both developed and developing countries as well as international organizations and institutions to join in supporting the Center.
  1. The Ministers welcomed the decision to convene a Conference of Ministers of Culture of the Non-Aligned Countries in September 1997, as called for at the XI Conference of Heads of State or Government, with a view to further strengthening cooperation in the field of culture among the Non-Aligned and other developing countries.

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I. Information and Communication

  1. The Ministers welcomed the outcome of the Fifth Conference of Ministers of Information of the Non-Aligned Countries (COMINAC V) held in Abuja in September 1996, which, interalia, agreed on the need for intensive research efforts by Non-Aligned countries in the development of communication technology and inter- and intra-regional cooperation through NAM mechanisms geared to this end, as a means of redressing the continued imbalances and inequalities between developed and developing countries in the field of information and communication. In this context, the Ministers stressed the importance to further enhance the function and network of the Non-Aligned News Agencies Pool (NANAP) and Broadcasting Organizations of Non-Aligned Countries (BONAC).
  1. The Ministers expressed their concern over the increasing use of defamation and the distortion of information by some mass media of developed countries, such as Voice of Free Asia, established in 1996 and Radio Marti to destabilize the Governments of developing countries and called for an immediate end to such acts.

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J. Follow-up of Major Conferences and Summits

  1. The Ministers expressed their satisfaction at the outcome of the World Food Summit and the HABITAT II Conference, specially on matters relating to international cooperation. They expressed their willingness to work constructively to promote a firm political commitment for the full implementation of the Programme of Action of the World Food Summit and the HABITAT II Agenda as agreed. The Ministers recalled that the right to food is a fundamental human right and its promotion constitutes a moral imperative of the international community. Therefore, they emphatically rejected the use of food as an instrument of economic or political pressure. They also considered it necessary to undertake studies on the impact of the new multilateral trading system on food supply and its possible consequences on food security, particularly in net food importing countries.
  1. The Ministers called for urgent and immediate generation of political will in the international community to follow up and implement the recommendations of the recent United Nations conferences as agreed, particularly those related to new and additional resources for development, creation of an economic environment favorable to the sustained economic growth of developing countries, and access to technology, technical know-how, eradication of poverty, creation of productive employment and empowerment of women. They stressed that strong political commitment was needed to implement strengthened international cooperation for development. In this connection and as a first and essential step, the developed countries must provide new and additional financial resources for the implementation of the commitments made at these conferences and summits.
  1. The Ministers noted with satisfaction the outcome of the World Solar Summit held in Harare in September 1995 with reference to new and renewable energy resources which are environmentally friendly. Follow-up action would complement, strengthen and integrate efforts on Environment and Development, Science and Technology, Industrial Development and South-South & North-South Cooperation. Some NAM countries and other developing countries have made considerable progress in developing solar energy resources which could be the basis for cooperation among developing countries.

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K. Critical Situation in Africa

  1. The Ministers observed that despite the efforts being undertaken by many African countries and in spite of signs of progress in their economies, they are still facing serious economic and social problems. They called upon the international community to continue and also increase its support to African countries to enable them to achieve sustained economic growth. They reaffirmed also the necessity to undertake specific measures for Africa to attract more foreign investments and ODA, to reduce the debt burden, to eradicate poverty, to increase access to markets, and to strengthen their capacities to enable them to harmoniously integrate into the world economy.
  1. The Ministers acknowledged the positive changes that are taking place in the African region during the last few years as reflected by the midterm review of the UN NADAF. Nevertheless, 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 a provision of new and additional resources and by ensuring a favorable external economic environment.
  1. 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 sub-regional cooperation and integration, durable solutions to Africa's external debt problem, diversification of Africa's economies, more access to trade and market opportunities, resource flows and transfer of technology.
  1. The Ministers took note of the outcome of the mid-term review of the UN NADAF and called upon the international community to implement the renewed commitment to ensure that the targets of the UN NADAF will be reached within the time frame of the programme.
  1. The Ministers urged the Movement to support the African countries in their efforts to carry out the commitments they made in the UN NADAF as well as under the Cairo Agenda for Action.
  1. The Ministers also urged that the new and additional funding must be made available to enable the implementation of the United Nations System-wide special initiative on Africa. The Ministers also welcomed the efforts of the different African countries at development vis-à-vis the UN ten year $ 25 billion system-wide initiative to assist Africa and called on members of the Movement to extend their support to that special initiative and similar redemptive measures.

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L. Situation of Least Developed Countries

  1. The Ministers reaffirmed their conviction that globalization and liberalization should offer equal opportunities for all countries and enable developing countries to play a more active role in the world economy. In order to overcome the possible risk of instability and marginalisation, they called for special measures to be taken to maximize the positive impact of these processes for all developing countries, with particular attention to the interest of the Least Developed Countries (LDCs).
  1. The Ministers took note of the Singapore Ministerial Conference of WTO and in view of the principle of special and differential measures accorded for the developing countries, emphasized the need for full and expeditious implementation of the Marrakesh Agreements, specially in areas of interest to developing countries, such as textiles and agriculture particularly of relevance to LDCs and net food importing developing countries.
  1. The Ministers agreed that in order to arrest and reverse the marginalisation of the LDCs, special measures are required to be taken to ensure their integration into the global economy and strengthen their capacity to compete effectively in world trade along with full and effective implementation of the Paris Programme of Action for LDCs, the outcome of its Mid-term Global Review as well as the LDCs Plan of Action contained in the WTO Ministerial Declaration of Singapore. In this connection, the Ministers stressed the importance of holding a high level meeting in June 1997 jointly by WTO, UNCTAD and ITC with the participation of LDC governments, various aid agencies and multilateral institutions to adopt an integral approach to assist these countries to enhance their trade opportunities.
  1. The Ministers also noted that South-South cooperation would be a very useful instrument to prepare the LDCs during the transitional period. For this purpose, developing countries having capacity to share their experience should consider providing technical and other relevant support including removal of tariff and non-tariff barriers to create market opportunities for products from the LDCs to their markets.
  1. The Ministers recognised that investment was a key determinant of economic development and creation of employment in developing countries. While the need for increasing the flow of Foreign Direct Investment was a priority for jump-starting the economies of the developing countries, in particular the LDCs, to prepare them for integration into the emerging world economic order, intra-South investment was an equally important element for this purpose. In this context, direct investment from advanced developing countries as well as developed countries to other developing countries and the LDCs.
  1. The Ministers noted that the flow of resources among countries constituted a key input for growth. Therefore, developing and developed countries should coordinate and implement strategies to accelerate world growth, promote sustained and substantial flows of ODA and promote a system of financial cooperation capable of reducing the level of financial volatility, taking into consideration the special vulnerability of the LDCs.
  1. The Ministers noted with appreciation the recent initiative taken by the Chairman of the NAM to hold regular consultations with the Chairman of the G-77 with a view to exchanging views on various issues of mutual interest. In this connection, they expressed their support to the efforts of the NAM Chairman to continue to reflect, in his consultation with the Chairman of G-7, the concerns and interests of the LDCs in view of the fact that these are the countries most adversely affected in the current process of globalization.

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M. Small Island Developing States (SIDS)

  1. The Ministers affirmed their full support for the system-wide implementation of the Programme of Action for the Sustainable Development of Small Island Developing States adopted by the Global Conference on the Sustainable Development of Small Island Developing States which was held in Bridgetown, Barbados from 25 April to 6 May 1994. They reaffirmed in particular the need for the provision of adequate, predictable, new and additional financial resources, transfer of environmentally sound technologies, including on concessional and preferential terms as mutually agreed, and the promotion of fair and non-discriminatory trading arrangements. They also noted the need for appropriate exchanges among small island developing states and between them and other States with similar development experiences to be encouraged.
  1. The Ministers noted that a full review of the Programme of Action is scheduled for 1999. In this context, they urged the Commission on Sustainable Development (CSD) at its fifth session, as well as the special session of the General Assembly to be held in June, 1997, to continue its support for, and provide new impetus to be Programme of Action, including making recommendations on the specific modalities for examining all its outstanding chapters.
  1. The Ministers again stressed the need for the international community to pay special attention to, and to contribute actively to resolving, the critical situations in Africa, and the special problems of the LDC's, Small Islands Developing State and Land Locked and the Transit Developing Countries.

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