General Statement by
H. E. Mr. Michael Mugliston, Deputy Head of the Australian Delegation
May 16, 2001 – Morning Session
(Check Against Delivery)
Mr. President,
Under your guidance the Australian government looks forward to outcomes from
this conference that will help the least developed countries achieve broad
reaching sustainable development.
Australian Commitment to LDCs
Mr. President, Australia is strongly committed to the reduction of poverty and
the achievement of sustainable development in countries less fortunate than our
own. The primary focus of Australia's overseas aid program is on poverty
reduction in the Asia-Pacific and on responding to the region's political,
economic and social changes. Australia is addressing its attention to important
issues of international concern, namely: HIV/Aids, good governance, the digital
divide and improving access to education, strengthening developing countries
capacities and competitiveness, and encouraging development of poverty eradication
strategies in Least Developed Countries (LDCs) including through international
reform of agriculture and promotion of a new round of multilateral trade
negotiations to deliver a more equitable, open and predictable trading
environment.
800 million people live in poverty in the Asia-Pacific region- the largest
concentration of people living in poverty in the world. It is little surprise then
that this region is home to twelve of the world's LDCs. While the Australian
aid program has a geographic focus on the Asia-Pacific Region, it also
acknowledges the economic and social development challenges facing others
particularly in Africa and funds development activities where we can add value.
The long-term objective of Australia's assistance to Pacific countries,
including Pacific Island LDCs, is to achieve the maximum possible degree of
self-reliance. In the medium-term Australia's aid aims to produce five
principal outcomes for Pacific island countries: better governance, stronger
economic growth, greater capacity, better service delivery and environmental
integrity.
Australia's overseas aid program in East Asia, which includes all East Asian
LDCs, is addressing the immediate needs of those countries affected by the
financial crisis of the late 1990s, as well as being underpinned by long-term
recovery strategies. While economic and social conditions have significantly
improved in the most affected countries, much needs to be done to strengthen
the resilience of the region to future shocks and to reduce the vulnerability
of the poor. This is being achieved through a focus on strengthening economic
governance and social protection.
Australia is keen to make its contribution to the international effort to
assist LDCs. The Australian International Development Assistance Agency
(AusAID) is working with the World Bank to assess opportunities to address the
knowledge divide in developing countries, with a particular focus on
opportunities presented by new information and communication technology.
The Pacific is sometimes left out of the global HIV/Aids picture given the low
incidence of the disease and small populations in most Pacific Islands
countries, but there is an increasing awareness in the Pacific of the need to
prepare for an increase. Australia is contributing to the international efforts
to combat the spread of HIV/Aids. Australia's Foreign Minister, Mr. Downer,
will be convening a Regional Meeting on HIV/Aids in Melbourne in October at the
time of the sixth International Congress on Aids in Asia and the Pacific which
will look at practical ways of handling this important issue for our region.
Australia is co-facilitating the Preparatory Meeting leading up to the General
Assembly Special Session on HIV/Aids, which will take place in June this year.
Throughout the world trade remains
a primary engine for growth. The opening of world markets has underpinned fifty
years of growth in the world economy and has been an essential factor driving
an unprecedented increase in quality of life for much of the world's
population. Average tariffs on manufactured goods in industrialized countries
have fallen from about 40% to 4% over the last 50 years. Experience has shown
that lowering trade barriers - in addition to undertaking wider structural
economic reforms - has significantly assisted the economic development of
countries that have taken these steps.
But despite this progress, there
are still almost 3 billion people trapped in poverty, living on less than US$2
a day. There is no doubt that more, significantly more, needs to be done to
ensure that the framework for further trade and investment liberalization takes
account of the particular needs of developing countries, supports their
economic development and provides full access to the world trading system.
The past 50 years has shown that
broad-based multilateral negotiations are the best way to deliver a more
equitable, open and predictable trading environment. That's why Australia has
long been a strong supporter of the World Trade Organization (WTO) and is a
strong advocate for an early launch of a new; market-access focused round of
multilateral trade negotiations. The benefits for both developed and developing
countries in removing barriers to trade are enormous. A new round would not
only result in further trade liberalization but would also help ensure that
countries do not backslide on their existing commitments to wind back
protection.
Australia believes that
international reform in agriculture offers LDCs and developing countries more
generally, the strongest prospects for alleviating poverty and reducing the
threat of hunger and malnutrition. This stems clearly from the fundamental role
of agriculture in these countries. Agriculture provides, on average, 70 per
cent of employment and 30 per cent of output. In many cases it has the
potential to make a major contribution to foreign exchange earnings, to provide
essential inputs and a necessary demand stimulus to the rest of the economy.
However, the stark reality is that
total agricultural support in OECD countries rose to a staggering US$360
billion in 1999, equivalent to more than six times the total flow of aid to
developing countries. Government support to farmers has returned to levels not
seen for more than a decade. This situation must be reversed.
The existing imbalance in
international trade rules denies efficient agricultural exporters the ability
to trade their way to sustainable growth and higher living standards. If
poverty is to be alleviated in developing countries, it is critical that the
gross discrimination against agriculture and agricultural exporting countries
embedded in the world trading system is removed.
Australia is the Chair of the
Cairns Group of Agricultural Trading Nations. Membership totals 18 and is made
up of 3 developed and 15 developing countries. The broad objectives of the
Cairns Group for the agriculture negotiations lie in three key reform areas. We
are seeking the elimination of export subsidies and substantial reductions in
all forms of trade-distorting domestic support. In relation to market access,
we are seeking deep cuts to all tariffs and the elimination of tariff
escalation. The Group has emphasized that it is committed to providing
flexibility for developing countries, through special and differential
treatment, to enable them to address food security and rural development
concerns. This interest in flexibility is reflected in each of the Group's
negotiating proposals.
Australia strongly supports the position that a new round of multilateral trade
negotiations in the WTO, centred on market access in agriculture, services and
industrial goods, will help achieve the sustainable economic growth and
development needed to improve the lives of people in the developing world.
Australian Trade-Related Assistance to
LDCs
Australia has an active program of technical cooperation and policy dialogue
with developing countries, including Least Developed Countries, aimed at
strengthening their capacity to participate in global and regional trading
arrangements and to take advantage of new trade opportunities.
Areas of direct trade-related assistance include trade policy development,
strengthening of customs and quarantine procedures, taxation (including tariff)
reform, trade and tourism promotion and investment policy formulation,
strengthening economic policy and management, human and institutional capacity
building in the public sector and legal and judicial strengthening.
Infrastructure development - particularly transport and communications - also
contributes to more effective involvement in world trade.
Many other development programs funded by Australia have indirect or secondary
impacts on economic management, private sector development and public sector
capacity building. In addition, around 1000 students from developing and least
developed countries are studying economics, business and administration in
Australia.
Through these various programs, assistance is provided to help developing
countries identify and manage the potential economic and social impacts of
trade and investment liberalization, identify new sources of revenue and market
opportunities and cope with the institutional and regulatory requirements of
the global trading system.
Debt
Australia recognizes the debilitating effects of an unsustainable debt burden
on LDCs, and has been at the forefront in efforts to find a lasting solution to
this serious problem. Australia is taking action on two fronts: multilaterally
and bilaterally.
Multilaterally, Australia has been a strong supporter of the Heavily Indebted
Poor Countries (HIPC) Initiative coordinated by the IMF and World Bank.
Australia considers the enhanced HIPC Initiative is the most credible way to
provide sustainable debt relief to the world's poorest countries. It involves
all creditors, including multilateral development institutions, giving debt
relief. It provides debt relief in the context of establishing sound
institutional and policy frameworks to aid further development. It is also
structured to ensure that the proceeds of debt relief go towards basic health,
education and poverty reduction.
Australia has demonstrated its commitment to the HIPC initiative through its
contribution to assisting the World Bank and IMF meet the costs of the HIPC
Initiative. Australia has advocated that the enhanced HIPC Initiative should be
implemented quickly and effectively to enable eligible countries to receive
debt relief as soon as possible.
Bilaterally, Australia has
announced that it will provide 100 per cent debt forgiveness to countries,
which qualify for debt relief under the HIPC Initiative.
Australia's contribution to debt relief for HIPC countries are additional to
the aid budget, not at the expense of other aid programs.
The Future
Mr. President, looking to the future Australia will continue to help LDCs,
particularly in the Asia Pacific region. They face many challenges. We do not
profess to know all the answers. But, our engagement in development in the
Asia-Pacific region does give us relevant skills and experience and insights.
Our Asia-Pacific perspective coupled with our preference for practical workable
solutions to development problems is what Australia can best contribute to this
conference and to the interest of LDCs.
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