3. Peace and development are closely interrelated and mutually supportive. Development should also be pursued in its own right. Development is indispensable to the achievement and maintenance of peace and security both within and among nations. Without development there can be neither peace nor security. There is complementarity between the processes related to the Agenda for Development and the Agenda for Peace. For peace and stability to endure, national action and effective international cooperation are required to promote a better life for all in larger freedom, a critical element of which is the eradication of poverty.

4. Development cannot be attained in the absence of peace and security or in the absence of respect for all human rights and fundamental freedoms. Under conditions of war, and during periods of short-term emergencies and humanitarian needs, development efforts are often neglected, diminished or abandoned. Excessive military expenditures, arms trade, investment for arms production, acquisition and stockpiling have a negative impact on development prospects. With the relaxation of international tensions the opportunity exists for reducing, as appropriate, military expenditures and investments for arms production and acquisition, consistent with national security requirements, in order to increase resources for social and economic development.

(a) Globalization, regional cooperation and interdependence: the need for a commitment for partnership

5. Profound changes have occurred, especially coupled with the end of the cold war, which question some of the traditional ways of addressing the challenge of development.

6. One such increasingly important change affecting all countries is the process of market-driven globalization, including due to rapid progress in information exchange and telecommunications. Globalization encompasses the varying degrees of increasing integration of world markets of goods, services, capital, technology and labour. This has generated greater openness, freer movement of factors of production and created greater opportunities for international cooperation. Greatly increased trade and capital flows and technological developments open new opportunities for growth of the world economy, particularly in developing countries. Wider dissemination of ideas, cultures and lifestyles brought about by innovations in transportation and communications are also important manifestations of the globalization process. Globalization permits countries to share experiences and to learn from one another's achievements and difficulties, and promote a cross-fertilization of ideals, cultural values and aspirations, taking into account the recognition of cultural diversity.

7. Globalization of the world economy presents opportunities and challenges for the development process as well as risks and uncertainties. As a result of the process of globalization and growing interdependence in the economic, social and environmental fields, an increasing number of issues cannot be effectively addressed by countries individually. Therefore, international cooperation is required. Furthermore, non-State actors with a global reach, such as transnational corporations, private financial institutions and non-governmental organizations, have important roles to play in the emerging network of international cooperation.

8. Greater interdependence among States has accelerated the international transmission of macroeconomic policy decisions and therefore their effects throughout the global economy. This is particularly true for the development prospects of the developing countries, which have been particularly affected by globalization.

9. Global financial integration presents new challenges and opportunities for the international community. Sound domestic macroeconomic policies of each country in regard to promoting macroeconomic stability and growth are primary elements for determining private capital flows and the coordination of macroeconomic policies, where appropriate, and a favourable international economic environment play an important role in reinforcing their effectiveness. The globalization of financial markets can generate new risks of instability, including interest rate and exchange rate fluctuations and volatile short-term capital flows, which require all countries to pursue sound economic policies and to recognize the external economic impact of their domestic policies. There is a need for the expansion of private capital flows and for broader access by all developing countries to these flows, and therefore the need for the international community to assist low-income countries, especially those in Africa, in their efforts to create an enabling environment necessary to attract such flows.

10. Increasing the capacity to respond to these trends requires sound domestic policies as well as a favourable international economic environment. Although new growth poles are emerging in a number of developing countries which will provide an increasing share of the stimulus to world development, it is likely that the role of the developed countries in world finance will remain preponderant for a long time. The policies they follow in their domestic affairs will, in the increasingly globalized capital markets, be of decisive importance for the rest of the world as they have a significant influence on world economic growth and, consequently, over the international economic environment.

11. Notwithstanding the importance of a favourable international economic environment, ultimately each country bears primary responsibility for its own economic and social policies for development. In order to take advantage of a rapidly integrating world economy, all countries should adopt sound and stable domestic policies, address external and internal imbalances, and encourage a continuous process of adjustment. Sound national policies are also essential for cushioning external shocks. National policies of all countries would also benefit from improved political institutions and legal systems. In this context, the international community should give strong support to the efforts of developing countries to solve their serious social and economic problems and should promote a favourable international economic environment for development.

12. Globalization and interdependence are deepening the need and creating greater opportunities for international cooperation. The problems and questions which globalization and interdependence bring in their wake show that there clearly exists a shared, common interest among all countries in solving and answering them. International development cooperation, not only founded in solidarity, but also based on mutual interest and partnership, forms an essential part of this effort. With the waning of ideological confrontations, the rise in globalization and the deepening of interdependence among nations, the historic opportunity has arisen for constructive dialogue among all countries, in particular among the developed and developing countries, and political mobilization for the promotion of international cooperation for development based on genuine partnership and mutuality of interests and benefits. This Agenda for Development manifests our commitment to grasp this opportunity.

13. The deepening interdependence among countries has already led to the emergence and strengthening of regional economic groupings and arrangements. They are recognized as important catalysts for global economic growth and expansion of trade. They offer a framework for fostering and enhancing cooperation among States not only on economic policy but on other areas of common concern as well. Regional economic groupings and arrangements which are outward oriented, supportive of and complementary to the multilateral trading system are important actors in the global development process.

(b) Variety of development experiences and impact of globalization

14. Development experiences among countries reflect differences with both progress and setbacks. A number of developing countries have experienced rapid economic growth over the recent past and have become dynamic partners in the international economy. These countries, which maintain a high rate of economic growth, have increased their share in world trade and foreign direct investment, thereby expanding their role in the global economy.

15. At the same time, developing countries continue to face difficulties participating in the globalization process. Many risk being marginalized and effectively excluded from the globalization process. Many of them continue to be mired in poverty, hunger and malnutrition, and economic stagnation, including slow or negative economic growth. The global changes in finance, communications and technology have largely by-passed them, despite their efforts of undertaking economic reforms, including structural adjustment programmes. The gap between the developed and developing countries remains unacceptably wide. Imbalances and uncertainties continue to exist in the global economy which affect all countries but in particular the interests of the developing countries. We reiterate the need for broadening and strengthening the participation of developing countries in the international economic decision-making process.

16. The development spectrum ranges widely not only among countries but also within countries. The varied country situations indicate that in addition to overall measures needed for the promotion of a favourable international economic environment for development, there is a need for specific measures in particular country situations. Success will often depend on the removal of key constraints which vary greatly from country to country. Cooperation among developing countries and sharing their experiences can greatly contribute to achieving such success. It also requires that international development cooperation has to take into account the respective plans, programmes, needs, priorities and policies of developing countries. A new international partnership is required for development at the national, subregional, regional and international levels.

(c) Critical situations and special problems in developing countries:

• Critical situation in Africa
  
• Critical situation in the least developed countries
  
• Special problems in small island developing States
  
• Special problems in land-locked developing countries

17. The critical socio-economic situation in Africa is of priority concern. Africa is the only region where poverty is expected to continue to increase substantially. Much of the continent suffers from, inter alia, inadequate physical and institutional infrastructure, poor human resource development, lack of food security, malnutrition, hunger, widespread epidemics and diseases, and unemployment and underemployment. These conditions are further compounded by a number of conflict and disaster situations. All these diverse limitations and constraints make it difficult for Africa to fully benefit from the processes of globalization and liberalization of trade and to integrate fully in the world economy. Increased mobilization of domestic and external resources for development, as well as their more effective use, are critical for the success of the economic and political reforms undertaken by African countries. International solidarity is fundamental to Africa's development, and international cooperation and support must necessarily complement the national resources mobilized by the African countries themselves.

18. The critical situations of the least developed countries, which are particularly marginalized from the world economy, require the priority attention of the entire international community, in support of appropriate domestic economic and social policies. The heavy burden of debt and debt service on their economies, deterioration in the terms of trade, decline in real terms in recent years in the overall level of official development assistance (ODA) and limited flows of private resources are some of the main factors that impede the already limited opportunities for these countries to participate in and benefit from the process of globalization and liberalization. By most measures of economic and human well-being, the least developed countries lag seriously behind. Their social indicators are consistently low and have worsened in some cases. Their institutional and physical infrastructure is fragile, and therefore enhanced national and international support are required to strengthen them.

19. The special problems of small island developing States also need to be given priority attention by the international community. The special challenges and constraints to their development arising from, inter alia, their limited market size and resource base, from their particular transportation and communication problems, and from their high degree of vulnerability to natural and environmental disaster need to be addressed.

20. Lack of territorial access to the sea, aggravated by remoteness and isolation from world markets, prohibitive transit costs and risks impose serious constraints on the overall socio-economic development efforts of the landlocked developing countries. The special challenges and constraints specific to these countries need to be addressed.

(d) Post-cold war realities and challenges

(i) Special problems and features of countries with economies in transition

21. The special problems and features of countries with economies in transition require particular attention in the post-cold war era. The dual transition to democracy and to a market economy makes their situation especially complex particularly regarding their economic growth and sustainable development. This ongoing process is guided by and based on the respect for human rights, transparent, representative and accountable governance, the rule of law and civil peace.

22. Considerable strains are put on the social fabric of these societies of the countries with economies in transition. Structural adjustments bring economic benefits but are causing social problems which were unknown before the transition. Severe environmental degradation, a worsening population situation and the problem of conversion of military production to civilian in these countries are of primary concern.

23. The completion of the transition process and the integration of these countries in the world economy and their effective involvement in the multilateral institutions will have a positive impact not only on these countries themselves but also on the global economy. Thus, it is especially important for them to promote effective cooperation in trade, economy, finance, science and technology with all countries and regions. Their integration should contribute to economic cooperation with developing countries and to mutually beneficial exchanges of scientific and industrial know-how. Increased cooperation among countries with economies in transition will also be important. In order to bring this integration about in a speedy manner, effective international support for reforms in these countries is essential both in terms of financial resources and of institutional expertise. The measures that should be undertaken in this regard must ensure the maximization of the benefits from and the minimization of the negative effects of trends in the world economy for all countries, in particular for developing countries.

(ii) The end of the cold war and the developing countries

24. While the end of the cold war has fostered a new spirit of dialogue and cooperation at the global political level, there is a need to improve the international economic environment so that it is more conducive to the socio-economic development of developing countries, including through the fulfilment of commitments agreed to at the recent major United Nations conferences.

25. In the post-cold war situation, the record of development is so far a mixed one. The successful conclusion of the Uruguay Round on multilateral trade negotiations, the consensus on development arising from recent major United Nations conferences and the expansion in private flows to developing countries are positive developments. On the other hand, the recent decline in real terms of ODA, the deterioration in terms of trade and the risk of marginalization from the world economy of developing countries, in particular the least developed countries, are particular concerns. The international community and multilateral financial institutions and the World Trade Organization (WTO) should focus their attention on ways to address these concerns effectively.

(e) Democracy, transparent and accountable governance, and the promotion and protection of all human rights and fundamental freedoms, including the right to development

26. The waning of ideological conflicts has improved the climate of cooperation at all levels. Although there is no universal prescription for successful development, a consensus has emerged, inter alia, that economic development, social development and environmental protection are interdependent and mutually reinforcing components of sustainable development, which is the framework of our efforts to achieve a higher quality of life for all people. In this context, we reaffirm that democracy, development and respect for human rights and fundamental freedoms, including the right to development, are interdependent and mutually reinforcing.

27. Respect for all human rights and fundamental freedoms, democratic and effective institutions, combating corruption, transparent, representative and accountable governance, popular participation, an independent judiciary, the rule of law and civil peace are among the indispensable foundations for development. At the same time, we reaffirm that the right to development is a universal and inalienable right and an integral part of human rights. As stated in the Declaration on the Right to Development, the human person is the central subject of development. Development facilitates the enjoyment of all human rights, but the lack of development may not be invoked to justify the abridgement of internationally recognized human rights.

28. Efforts to reinforce democratic institutions and actions are vital for achieving peace and economic and social progress. Social stability, needed for productive growth, is nurtured by conditions in which people can readily express their will. For this, strong national institutions of participation are essential.

29. The existence of widespread absolute poverty inhibits the full and effective enjoyment of human rights and renders democracy and popular participation fragile. It is unacceptable that absolute poverty, hunger and disease, lack of adequate shelter, illiteracy and hopelessness should be the lot of over one billion people. We commit ourselves to the goal of eradicating poverty in the world through decisive national actions and international cooperation as an ethical social, political and economic imperative of humankind.

30. Democracy, which is spreading everywhere, has raised development expectations everywhere. Lack of their fulfilment risks the rekindling of non-democratic forces. Structural reforms that do not take social realities into account could destabilize democratization processes as they exacerbate the reaching of that fulfilment. While it is recognized that States have the primary responsibility in securing a sound and stable national political, economic and social environment for development, international support, at the request of interested Governments, and the creation of a favourable international economic environment are crucial ingredients in this effort.

31. It is increasingly recognized that the State's role in development should be complemented by other relevant actors of the civil society, including the private sector. The State has the overall responsibility in various areas, including, inter alia, social, economic and environmental policy formulation, and for creating an enabling environment for the private sector; the State should encourage effective participation by the private sector and major groups in activities which complement and reinforce national objectives.

32. Every State has an inalienable right to choose its political, economic, social and cultural systems, without interference in any form by another State. By virtue of the principle of equal rights and self-determination of peoples enshrined in the Charter of the United Nations, all peoples have the right freely to determine, without external interference, their political status and to pursue their economic, social and cultural development, and every State has the duty to respect this right in accordance with the provisions of the Charter.