SECOND COMMITTEE TEXT CALLS FOR APPLICATION OF ENHANCED INDEBTED COUNTRIES PLAN, CANCELLATION OF OFFICIAL BILATERAL DEBT

Fifty-seventh General Assembly

Second Committee

43^rd and 44^th Meetings (AM & PM)

SECOND COMMITTEE TEXT CALLS FOR APPLICATION OF ENHANCED INDEBTED COUNTRIES

PLAN, CANCELLATION OF OFFICIAL BILATERAL DEBT

Approves 21 Draft Resolutions, Decisions as it Concludes Session

The General Assembly would reiterate the call for industrialized countries to implement the enhanced programme of debt relief for heavily indebted poor countries without further delay, and agree to cancel their official bilateral debt in return for those countries demonstrably committing themselves to poverty reduction, by the terms of a draft resolution approved without a vote in the Second Committee (Economic and Financial) today.

According to a text on enhancing international cooperation towards a durable solution to the external debt problem of developing countries -- one of 19 draft resolutions and two draft decisions on which the Committee took action -- the Assembly would call, in turn, upon the heavily indebted poor countries to take the policy measures necessary to become eligible for the enhanced debt relief programme.

By other terms, the Assembly would stress the importance of continued flexibility with regard to the eligibility criteria for the enhanced debt relief initiative, particularly for countries in post-conflict situations, and emphasize the need to help bring about initial recovery in heavily indebted poor post-conflict countries, in order to help clear those countries' arrears vis-à-vis international financial institutions. 

Another text, on international trade and development would have the Assembly express concern that several unilateral actions inconsistent with World Trade Organization (WTO) rules would harm developing country exports and have considerable bearing on ongoing WTO negotiations and development.  It would work to ensure that the concerns of developing countries, particularly issues relating to implementation, as well as special and differential treatment, were properly and effectively addressed, according to last year's Doha Ministerial Declaration.

Also by that draft, the Assembly would stress the importance of facilitating WTO accession for all developing nations, as well as clarifying and improving procedures under existing WTO provisions for regional trade agreements.  It would also emphasize the importance of the Doha mandate for non-agricultural product market-access negotiations aimed at reducing or eliminating tariffs, tariff peaks, tariff escalations and non-tariff barriers, particularly those that negatively impacted exports from developing countries.

By the terms of a third text, on protection of global climate for present and future generations, the Assembly would urge all parties to ratify the Kyoto Protocol, stressing the importance of providing technical and financial assistance to countries requiring it.  It would also emphasize the need to strengthen technology transfer, including through concrete projects and capacity-building in all sectors from energy through biodiversity and waste management.

Further by that draft, the Assembly would stress the need for adaptation to the adverse effects of climate change as a high priority requiring urgent action by all countries.  It would also stress the need to support results-based measures, approaches developed for all levels of vulnerability and adaptation, as well as capacity-building to integrate adaptation concerns into sustainable development strategies.

The Committee also approved a draft resolution on further implementation of the Programme of Action for the Sustainable Development of Small Island Developing States, by which the General Assembly would convene an international meeting in 2004, and welcome the offer by the Government of Mauritius to host it.  Also by that text, the Assembly would establish a voluntary fund to assist small island developing States, including the least developed among them, to participate effectively in the meeting and its preparatory processes.

By a fourth draft, on high-level international intergovernmental consideration of financing for development, the General Assembly would stress that the United Nations, the Bretton Woods institutions, the WTO and governments should urgently promote equitable and broad sharing in the benefits of globalization.  It would encourage all governments to combat corruption, bribery, money-laundering, the transfer of the illicitly acquired funds and assets and work for their return to their countries of origin.

Among other texts approved today were draft resolutions on the creation of a global culture of cybersecurity; the report on the seventh session of the Governing Council of the United Nations Environment Programme (UNEP); preparations for the International Year of Freshwater; the World Summit on Sustainable Development; the World Climate Change Conference; and the Human Development Report.

Other draft resolutions approved included texts relating to implementation of the first United Nations Decade for the Eradication of Poverty (1997-2006); the United Nations Institute for Training and Research (UNITAR); the promotion of development in the context of globalization and interdependence; and implementation of the United Nations Convention to Combat Desertification in those Countries Experiencing Serious Drought and/or Desertification, particularly in Africa.

The Committee also approved draft decisions on natural disasters and vulnerability, and on United Nations pledging mechanisms and resource mobilization for operational development activities.

In several oral decisions taken today, the Committee took note of the report of the Joint Inspection Unit on the involvement of civil society organizations

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other than non-governmental organizations and the private sector in technical cooperation activities: experiences and prospects of the United Nations system (document A/57/118); and of the Secretary-General's report on integrated and coordinated implementation of and follow-up to the outcomes of the major United Nations conferences and summits, including the United Nations Millennium Summit (document A/57//75-E/2002/57).

The Committee also took note, through oral decisions, of three notes of the Secretary-General transmitting the report of the Joint Inspection Unit on United Nations support for science and technology in Latin America and the Caribbean and the comments of the United Nations System Chief Executives Board for Coordination thereon (document A/56/370 and Add.1); the report of the Executive Director of the United Nations Population Fund on the United Nations Population Award (document A/57/354); and the report on the activities of the United Nations Development Fund for Women (documents A/57/125).

In other oral decisions, the Committee took note of the Secretary-General's report on measures to promote and facilitate South-South cooperation (document A/57/155); the Report of the Trade and Development Board on its twenty-eighth executive session (document A/57/15 (Part I)); the Report of the Trade and Development Board on its nineteenth special session (document A/57/15 (Part II)); and the Report of the Trade and Development Board on its forty-ninth session (document A/57/15 (Part III)).     

The Committee also adopted its draft biennial programme of work for     2003-2004.

Speaking after the conclusion of the Committee's work, Nitin Desai, Under-Secretary-General for Economic and Social Affairs, highlighted important features of its current session, particularly its work in sustainable development and macroeconomics carried out in the context of the World Summit and Monterrey Conference.  He said the Committee had successfully met the challenge of integrating conference outcomes into its work, rather than the usual practice of remitting issues to subsidiary bodies and commissions.

Also speaking today were the representatives of the United States, Denmark (on behalf of the European Union and associated States), Canada, China, Russian Federation, Japan, Norway, Samoa (on behalf of Small Island Developing States), Venezuela (on behalf of the “Group of 77” developing countries and China) and Tuvalu.

Background

When the Second Committee met today it took action on several draft resolutions and decisions in the area of macroeconomic policy questions.

Among the texts before the Committee was a draft resolution on further implementation of the Programme of Action for the Sustainable Development of Small Island Developing States (document A/C.2/57/L.64), by which the General Assembly would decide to convene an international meeting in 2004, which will include a high-level segment to undertake a full and comprehensive review of the implementation of the Programme of Action, and welcome the offer by the Government of Mauritius to host the meeting.

By other terms, the Assembly would also decide that the comprehensive review should seek a renewed political commitment by all countries towards, and should focus on, practical and pragmatic actions for the further implementation of the Programme of Action, including through the mobilization of resources and assistance for small island developing States.  It would further decide to convene regional preparatory meetings for all small island developing States to undertake the review of the Programme of Action at the national, subregional and regional levels.

Also by the draft, the Assembly would decide to establish a voluntary fund for the purpose of assisting small island developing States, including the least developed among them, to participate effectively in the international meeting and in its preparatory processes.  It would urge all relevant organizations to finalize, by 2004, the work on the vulnerability index, taking into account the particular circumstances of and needs of small island developing States.

A text on enhancing international cooperation towards a durable solution to the external debt problem of developing countries (document A/C.2/57/L.77) would have the General Assembly reiterate the call for industrialized countries to implement the enhanced programme of debt relief for the heavily indebted poor countries without further delay and agree to cancel all official bilateral debts of those countries in return for their making demonstrable commitments to poverty reduction, including through poverty reduction strategy papers.  The Assembly would call upon the heavily indebted poor countries to take the policy measures necessary to become eligible for the enhanced debt relief programme and to reach the decision point.

By other terms, the Assembly would stress the importance of continued flexibility with regard to the eligibility criteria for the enhanced heavily indebted poor countries initiative, particularly for countries in post-conflict situations, and the need to keep the computational procedures and assumptions underlying the debt sustainability analysis under review.  It would emphasize the need to help bring about initial recovery in heavily indebted poor post-conflict countries, in coordination with the international financial institutions, to help clear those countries' arrears vis-à-vis those institutions. 

Further, the Assembly would stress the need to pursue debt relief measures vigorously and expeditiously, by all creditors, including within the Paris and London Clubs and other relevant forums, in order to contribute to debt sustainability and facilitate sustainable development.  It would also stress that sustainable debt financing is an important element for mobilizing resources for public and private investment, and that debt relief can play a key role in liberating resources that should be directed towards attaining sustainable growth and development, including poverty reduction and the achievement of the Millennium Development Goals.

The Assembly would also stress the need to strengthen the institutional capacity of developing countries in debt management, call upon the international community to support the efforts made towards that end, and stress the importance of such initiatives as the Debt Management and Financial Analysis System, the International Monetary Fund (IMF) and the World Bank guidelines for public debt management and the debt-management capacity-building programme.

According to a draft resolution on implementation of the First United Nations Decade for the Eradication of Poverty (1997-2006), the General Assembly would stress that eradicating poverty is the greatest challenge facing the world today and an indispensable requirement for sustainable development, particularly for developing countries.  The draft (document A/C.2/57/L.87) would have the General Assembly stress that the deep fault line dividing the human society between the rich and the poor and the ever-increasing gap between the developed and developing worlds poses a major threat to global prosperity, peace and stability.

The Assembly would further stress that the United Nations Decade for the Eradication of Poverty should contribute to achieving the targets of halving, by 2015, the proportion of the world's people whose income is less than $1 a day and the proportion of those who suffer from hunger, through decisive national action and strengthened international cooperation.  The Assembly would also stress the importance of increasing access to and control over resources, including land, skills, knowledge, capital and social connections for the poor, particularly women, and of improving access for all to basic social services.

Also before the Committee was a draft on commodities (document A/C.2/57/L.73), by which the General Assembly would stress the need for national and international actions to improve market access, address supply-side constraints and support capacity-building, including in areas that actively involve women.  It would also urge governments and invite international financial institutions to continue assessing systems for the compensatory financing of export-earnings shortfalls, and stress the importance of empowering developing commodity producers to insure themselves against risk, including natural disasters.

By other terms, the Assembly would stress the importance of international support for developing countries in industrially transforming their commodities to increase export revenues and improve competitiveness; the importance, in the area of agriculture, of fulfilling the commitment for comprehensive negotiations aimed at substantial improvements in market access; reductions of export subsidies; substantial reductions in trade-distorting domestic support; and pursuing negotiations on market access for non-agricultural products aimed at reducing or eliminating tariffs, particularly on products of export interest to developing countries.

Under the same terms, the Assembly would stress that mutual supportiveness between the multilateral trading system and multilateral environmental agreements should be promoted, in line with the Johannesburg Plan of Implementation.  It would also stress that timely and effective financial cooperation should be

pursued to help commodity-dependent countries manage excessive fluctuations in commodity export earnings, and emphasize the importance of seeking diversification as part of a long-term solution.

Also before the Committee was a draft resolution on high-level international intergovernmental consideration of financing for development (document A/C.2/57/L.80), by which the General Assembly would call for the integrated consideration of trade, finance, investment, technology transfer and development, and stress the urgency of coherent action by the United Nations, the Bretton Woods institutions the World Trade Organization (WTO) and governments to promote equitable and broad sharing in the benefits of globalization, taking into account the needs of developing countries.

Further, the Assembly would encourage all governments to combat corruption, bribery, money-laundering, the transfer of illicitly acquired funds and assets and work for their return to the countries of origin.  It would also stress the need for structural reforms to strengthen corporate governance, accounting and auditing.  In addition, it would stress the importance of strong domestic institutions to promote business activities and financial stability for the achievement of growth and development, including through sound macroeconomic policies and those aimed at strengthening the regulatory systems of the corporate, financial and banking sectors.

The Assembly would, by other terms, encourage international financial institutions to continue taking into account social aspects and borrowing costs for developing countries.  It would also underline the need to ensure that the international financial institutions, including the IMF, have a suitable array of financial facilities and resources to respond in a timely and appropriate way to financial crisis or risk of contagion on developing countries or countries with transition economies.

Another draft resolution before the Committee, on the United Nations Institute for Training and Research (UNITAR) (document A/C.2/57/L.35), would have the General Assembly stress that the Institute should strengthen cooperation with other United Nations institutes, as well as relevant national, regional and international institutes, and underline the need to develop and expand the scope of training partnerships between the Institute and other United Nations bodies, particularly at the country level.

Further by that draft, the Assembly would urge States that had interrupted voluntary contributions to consider resuming them, in view of the successful restructuring and revitalization of the Institute.  It would also stress the Institute's limited capacity to pay its rent and administrative costs due to decreased funding, and the need to ensure that it was treated in a manner similar to the United Nations Research Institute for Social Development.  Also by the draft, the Assembly would decide to assume the rental and maintenance costs of the Institute.

The Committee also had before it a draft resolution on the World Food Summit:  five years later (document A/C.2/57/L.81), by which the General Assembly would urge Member States to closely cooperate with United Nations bodies as well as international and regional financial institutions in implementing the Declaration of the Summit –- International Alliance against Hunger.  The Assembly would ask all relevant United Nations bodies, as well as international and

regional financial institutions, to pursue the outcome of the Summit in the context of achieving internationally agreed development goals, particularly that of halving hunger and absolute poverty by 2015.

Also before the Committee was a draft resolution on ensuring effective secretariat support for sustained follow-up to the outcome of the International Conference on Financing for Development (document A/C.2/57/L.62) by which the General Assembly would request that the Secretary-General create, as soon as possible, appropriate secretarial support for sustained follow-up, within the United Nations, to Conference agreements and commitments.  The Assembly would decide that the new secretariat support structure be integrated, cross-cutting and holistic, and serve as a focal point in the Secretariat for overall Conference follow-up.

Another text before the Committee was a draft resolution on high-level dialogue on strengthening international economic cooperation for development through partnership (document A/C.2/57/L.82) by which the General Assembly would decide to reconstitute its current High-Level Dialogue on strengthening international cooperation for development through partnership as the High-Level Dialogue on financing for development, so that it may become the intergovernmental focal point for general follow-up to the International Conference on Financing for Development.

By further terms, the Assembly would agree to hold the dialogue at the end of October 2003, and thereafter biennially at the ministerial level.  It would decide that the overall theme of the Dialogue will be “The Monterrey Consensus:  status of implementation and tasks ahead”, and that it would consist of two days of plenary and informal meetings, as well as interactive round tables.

Also before the Committee was a draft resolution on implementation of the United Nations Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification, particularly in Africa (document A/C.2/57/L.89).  By that text, the General Assembly would call upon the Conference of the Parties to the Convention to ask the Global Environment Facility (GEF) to become a financial mechanism of the Convention and make arrangements in that regard at its November 2003 meeting.

Further by the draft, the Assembly would encourage the Conference and the GEF to continue collaborating to facilitate the GEF's financing of full implementation of the Convention to fully achieve its aims in land degradation, particularly desertification and deforestation.  It would also invite the GEF to adopt the Operational Programme for the Prevention and Control of Desertification through Sustainable Land Management at its May 2003 meeting, stressing that affected developing countries need full support from the GEF and other partners to assist them in meeting their obligations under the Convention.

The Committee also had before it a draft resolution on the report of the Governing Council of the United Nations Environment Programme (UNEP) on its seventh special session (document A/C.2 /57/L.92) by which the Assembly would stress the need to implement recommendations to strengthen the role of UNEP in providing capacity-building and technology transfer for developing countries. 

The Assembly would also request UNEP to continue contributing to sustainable development programmes and the implementation of Agenda 21, and ask the Secretary-General to constantly review the Programme's resource needs at the United Nations Office at Nairobi, and increase support to that Office to the levels of the United Nations Offices at Geneva and Vienna.

By a text on the role of the United Nations in promoting development in the context of globalization and interdependence (document A/C.2/57/L.84), the General Assembly would underline the necessity of investment in basic economic and social infrastructure, social services and social protection, including education, health, nutrition, shelter and social security programmes geared toward children, the elderly, and rural and disadvantage communities, in making globalization beneficial for all.

Also by that draft, the Assembly would stress the need for continued attention to globalization’s social dimension and express concern about the adoption of several multilateral actions that are inconsistent with WTO rules, harmful to exports, particularly those from developing nations, and have a considerable bearing on ongoing WTO negotiations and their development dimension.  It would stress the importance of creating an enabling international economic environment, through strong cooperative efforts by all countries and institutions, to promote equitable world economic development.

Further, the Assembly would stress the need to promote corporate responsibility and accountability and continuous improvements in corporate practices.  It would also stress the role of the United Nations in addressing the digital divide and promoting coherence and synergies between various regional and international initiatives, including the United Nations Information and Communication Technologies Task Force and the Digital Opportunities Task Force.

Also by the text, the Assembly would strongly urge the international community to take all necessary and appropriate measures -- including support for structural and macroeconomic reform, foreign direct investment, enhanced official development assistance, durable solutions to the external debt problem, market access, capacity-building, and knowledge and technology dissemination -- to help African nations, least developed countries, landlocked developing countries and small island developing States in their quest for sustainable development and greater participation in the global economy.

The Assembly would also invite the international community to provide developing countries with increased technical assistance and financial resources to support institutional capacity-building, and would call upon the United Nations step up support at the country level.  It would also invite the United Nations, all countries, the Bretton Woods institutions and the WTO to continue strengthening interaction with development partners in civil society, the private sector and non-governmental organizations. 

A draft resolution on protection of global climate for present and future generations (document A/C.2/57/L.90) would have the Assembly urge all parties to ratify the Kyoto Protocol, stressing the importance of providing technical and financial assistance to countries needing it.  The Assembly would also emphasize the need to strengthen technology transfer, including through concrete projects and capacity-building in all sectors from energy through biodiversity and waste management.  Technological advances should also be promoted by strengthening regional, national and local institutions for sustainable development, among other means.

Further by the text, the Assembly would emphasize that adaptation to the adverse effects of climate change is a high priority for all countries, requiring urgent action by all.  Results-based measures should be supported and approaches developed for all levels of vulnerability and adaptation.  Capacity-building to integrate adaptation concerns into sustainable development strategies should be supported.

The Committee also had before it a draft resolution on creation of a global culture of cybersecurity (document A/C.2/57/L.10/Rev.1) by which the Assembly would invite Member States and relevant international organizations to consider the need for a global culture of cybersecurity in their preparations for the World Summit on the Information Society.

By another text, on the World Climate Change Conference (document A/C.2/57/L.91), the General Assembly would welcome the Russian Federation’s initiative to convene the conference in Moscow from 29 September to 3 October  2003 as a forum of exchange.  Participants would include members of the scientific community, governments, parliaments, international and national organizations, the private sector and other civil society representatives.  The conference would aim to facilitate the implementation of existing policies related to climate change.

Also before the Committee was a resolution on activities in preparation for the International Year of Freshwater, 2003 (document A/C.2/57/L.86), by which the Assembly would encourage Member States, international organizations and other groups to support activities related to the Year through voluntary contributions, among other things, and to link their activities to the International Year.  It would also encourage the international community to take advantage of the Year for raising awareness about the importance of freshwater resources in satisfying basic needs, preserving ecosystems and promoting economic and social development.

Another draft resolution, on international trade and development (document A/C.2/57/L.76) would consider, in the context of the current world economic situation, reinforcing the multilateral trading system through concrete shaping of the development-related provisions of the WTO work programme, in favor of WTO members, particularly developing countries.  It would also work to ensure that developing nations’ concerns, particularly implementation issues and special and differential treatment, are properly and effectively addressed according to the Doha Ministerial Declaration, and reiterate the need for adherence to Doha negotiation deadlines.

Also by the draft, the Assembly would recognize that trade rules and issues in the post-Doha framework should have a clear development content.  It would stress the importance of facilitating WTO accession for all developing nations, particularly least developed countries and economies in transition, and the importance of clarifying and improving procedures under existing WTO provisions for regional trade agreements.  In that regard, it would urge the United Nations Conference on Trade and Development (UNCTAD) to provide technical input.

The Committee had before it a draft resolution on the Human Development Report (document A/C.2/57/L.85) as well as draft decisions relating to natural disasters and vulnerability (document A/C.2/57/L.75) and on pledging mechanisms and resource mobilization for operational activities for development of the United Nations system (document A/C.2/57/L.88).

Actionon Draft Resolutions

Taking up the draft resolution on high-level international intergovernmental consideration of financing for development, the Committee approved that text without a vote.

It then approved, also without a vote, the draft resolution on the World Food Summit:  five years later.

Acting again without a vote, the Committee then approved the draft on ensuring effective secretariat support for sustained follow-up to the outcome of the International Conference on Financing for Development.

The Committee then approved, again without a vote, a fourth text on the high-level dialogue on strengthening international economic cooperation for development through partnership.

When the Committee met this afternoon to take action on the remaining draft resolutions on its agenda, it approved, without a vote, the text on international trade and development.

Acting again without a vote, the Committee approved a draft on commodities, before taking up and approving a revised text relating to creation of a global culture of cybersecurity.

It then approved a text on enhancing international cooperation towards a durable solution to the external debt problem of developing countries, and another relating to the report of the Governing Council of the United Nations Environment Programme (UNEP) on its seventh special session.

The Committee then approved drafts relating to activities undertaken in preparation for the International Year of Freshwater, 2003, and to the World Summit on Sustainable Development.

Among the other texts approved this afternoon were:  a draft decision on natural disasters and vulnerability and draft resolutions relating to protection of global climate for present and future generations; the World Climate Change Conference; implementation of the United Nations Convention to Combat Desertification; and further implementation of the Programme of Action for the Sustainable Development of Small Island Developing States.

Other texts approved included a draft decision on United Nations pledging mechanisms and resource mobilization for operational activities for development, and draft resolutions relating to the Human Development Report; implementation of the first United Nations Decade for the Eradication of Poverty (1997-2006); the United Nations Institute for Training and Research (UNITAR); development in the context of globalization and interdependence; and the draft biennial work programme of the Second Committee.

Statements after Action

JANINE GUSTAFSON (United States) said that the ninth preambular paragraph in draft resolution A/C.2/57/L.43 recalled a political declaration made by leaders at the Millennium Summit in September 2000.  Since then, the United States had made it clear that it would not ratify the Kyoto Protocol, nor engage in efforts to

ensure its entry into force.  The country, therefore, considered the recalled reference in the ninth preambular paragraph to be historical in nature, and to have been overtaken by changed policies and circumstances.  The far more recent Declaration made in Delhi at the Eighth Conference of the Parties to the United Nations Framework Convention on Climate Change, in November 2002, reflected current consensus for advancing progress, she noted.

CLAUDIA SERWER (United States) said her delegation would join the consensus on the draft but relating to the Human Development Report, but did not recognize the Report as an independent entity.  Rather, it was a component of the United Nations Development Programme (UNDP), accountable to that Programme’s Executive Board for all actions and publications.  The Report, UNDP’s flagship publication, did not always advance the goal of using development results to strengthen the Programme and attract increased funding, she said.  On the contrary, in some cases, the views expressed in the Report had appeared to put UNDP at odds with the Bretton Woods institutions, the WTO and principal organs of the United Nations, thus weakening support for UNDP. 

The United Nations, including UNDP, through its publications, must implement the 2002 global consensus on financing development and implementing sustainable development put forward by Member States, she said, stressing that UNDP funding should not be used to finance reports that attacked that global consensus.

PIA STARBAEK SZCZEPANSKI (Denmark), speaking on behalf of the European Union and associated States, said that concerns expressed by some Member States on the consultation process of the Human Development Report should be considered by the Executive Board of UNDP/United Nations Population Fund (UNFPA) to improve the consultation process, while fully respecting the editorial independence of the Human Development Report.

She expected the Executive Board was expected to define an improved consultation process with Member States regarding the Human Development Report in the context of its annual work plan.  As a result, the European Union did not envisage that issue to be considered as a recurring agenda item of the Executive Board.

NITIN DESAI, Under-Secretary-General for Economic and Social Affairs, highlighted important features of the Committee’s current session, particularly its work in sustainable development and macroeconomics carried out within the context of the Johannesburg World Summit and the Monterrey Conference.  The Committee had successfully met the challenge of integrating conference outcomes into its work, rather than the usual practice of remitting issues to subsidiary bodies and commissions.

He said that the Committee’s newly forged connections with high-level segments of the conferences would mark an important institutional development, particularly as the era of great United Nations conferences shifted to an era of implementation and results.  Coordinating follow-up with the Bretton Woods institutions, UNCTAD and UNDP was an important step in that process, he said.

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