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Economic assistance, disasters and emergency relief 361 Chapter III Economic assistance, disasters and emergency relief Countries facing severe economic difficulties and cil also urged Member States to contribute to the those requiring aid for reconstruction, rehabilita- United Nations effort to assist the people of Af- tion and development continued to receive special ghanistan (1988/52), while the Assembly, in De- assistance from the United Nations system dur- cember, called for assistance to Mozambique ing 1988. Several countries required assistance in (43/208). the aftermath of natural or man-made disasters. During the year, the mid-term review and ap- praisal of the implementation of the United Na- tions Programme of Action for African Economic Economic assistance Recovery and Development 1986-1990 was carried out. In November, the General Assembly adopted the conclusions of the mid-term review and ap- In 1988, the United Nations continued to pro- praisal and decided to conduct a final review and vide special economic assistance to countries with appraisal in 1991 (resolution 43/27). severe economic problems affecting their develop- ment efforts. Some programmes were designed to In December, the Assembly urgently appealed support national reconstruction efforts after nat- to all international organizations to Increase as- sistance in response to the reconstruction, eco- ural or man-made disasters, while others aimed nomic recovery and development needs of Benin, to help overcome obstacles to national develop- the Central African Republic, Democratic Yemen, ment posed by weak infrastructure. Some coun- Djibouti, Ecuador, Madagascar and Vanuatu tries were land-locked or were small, island de- (43/211), all of which were facing special economic veloping countries; a number of countries had been classified by the General Assembly as least and financial difficulties. The Assembly also re- developed. quested continued assistance for Chad (43/205) and Somalia (43/206). The mid-term review and appraisal of the The United Nations system, particularly the Of- United Nations Programme of Action for African fice of the United Nations Disaster Relief Co- Economic Recovery and Development 1986-1990 ordinator, continued to assist countries stricken by (UNPAAERD) was carried out in 1988. disasters. The Assembly, in October, requested the United Nations system and other multilateral or- ganizations to assist Bangladesh to strengthen its Critical economic situation in Africa capacity to assess, predict, prevent and mitigate In accordance with a 1986 request of the natural disasters (43/9). Also in October, States General Assembly,(1) the Secretary-General sub- were called on to assist Jamaica following hurri- mitted a report in August 1988,(2) prepared in the cane Gilbert in September (43/7) and to respond context of the mid-term review and appraisal of (3) urgently to the Sudan’s needs following torrential UNPAAERD, adopted by the Assembly in 1986. rain and floods in August (43/8). The Assembly The report, which built on the Secretary- also urged States to contribute generously to re- General’s report on the critical economic situation lief, rehabilitation and reconstruction efforts in in Africa presented to the Assembly in 1987,(4) Costa Rica, Nicaragua, Panama and other coun- noted that the mid-term review and appraisal was tries affected by hurricane Joan which struck in taking place against a backdrop of a continuing October (43/17). deterioration in Africa’s economic situation. Eco- In February (resolution 1988/2) and May nomic performance during 1986-1988 was gener- (1988/3), the Economic and Social Council called ally disappointing. The gross domestic product on the international community to support locust (GDP) of the region rose by 1 per cent in 1986 and and grasshopper control activities undertaken by 0.8 per cent in 1987; however, per capita income African countries; that request was echoed by the fell by 2 and 2.2 per cent in those years. The re- Assembly in December (resolution 43/203). port, following the major themes of UNPAAERD, Both the Assembly and the Council (resolutions reviewed actions taken by African Governments, 43/207 and 1988/50, respectively) requested con- the international community and the United Na- tinued assistance for Lebanon in its reconstruc- tions system. It assessed the economic situation in tion and development efforts. In July. the Coun- Africa and made recommendations for further na- 362 Economic and social questions tional, subregional, regional and international ac- hance the co-ordination of external assistance; tions to accelerate UNPAAERD's implementation. terms of existing multilateral loans should be ad- With regard to policy reforms, the report stated justed to provide increased concessionality and that African countries should continue to pursue more favourable grace and maturity periods; and policies aimed at accelerating recovery and im- efforts should be made to stimulate the flow of non- proving their economic performance. Particular at- concessional resources. Integral to increased re- tention needed to be given to domestic economic source flows were continuing efforts by African management, effective mobilization and utiliza- countries to sustain policy reform measures, im- tion of domestic resources, rationalization of public prove public expenditure programmes, ensure that investment policies, development and utilization scarce resources were put to effective use and im- of human resources, development and implemen- prove the management of aid. Measures were also tation of population policies, protection of the en- needed to improve the investment climate to en- vironment, improvement of international competi- courage local and foreign private investment. tiveness and diversification of production. Possible measures to increase export earnings Attention should also be given to developing the included: accelerating ongoing initiatives to food and agricultural sector and agro-related in- make the Common Fund for Commodities oper- dustries, to the fight against pests, drought and ational; reducing domestic agriculture subsidies desertification, and to other sectoral priorities by industrialized countries on products compet- identified in UNPAAERD. Efforts were needed to ing with those of Africa; removing barriers to mitigate the adverse socio-economic effects of ad- African exports; increasing the resources of the justment measures and to ensure that short-term International Monetary Fund (IMF) compensa- actions were compatible with medium- and long- tory financing facility; and establishing a gener- term structural transformation. While primarily alized programme to stabilize export earnings of the responsibility of African Governments, African countries. Also, efforts had to be made bilateral partners, multilateral financial institu- by African countries to diversify exports and in- tions and the United Nations system had an in- itiate measures to bring the production and sup- dispensable role to play in supporting a framework ply of their commodities into line with medium- of policy reforms and development objectives con- and long-term demand. sistent with long-term development strategies. With regard to the debt problem, the report Africa’s bilateral and multilateral partners needed recommended that consultations should be inten- to co-ordinate their efforts and co-operate with sified with regard to official bilateral debt Africa within an agreed framework; consultative (broadening the conversion of bilateral ODA loans groups and round-table meetings were suitable into grants embracing all ODA debts of African mechanisms for that. People’s participation in the countries, consolidating non-concessional, offi- recovery and development process needed to be cially guaranteed debt and debt-service payments broadened and made more effective, particularly into long-term loans at interest rates comparable through promoting increased access to develop- to those on IDA credits, and allowing African ment resources and benefits, creating favourable countries to repay part of their bilateral official conditions for decentralized decision-making and debts in local currencies to be used to finance de- encouraging greater entrepreneurship at all levels. velopment projects and programmes); multilateral The report noted that Africa’s efforts at eco- debt (refinancing IMF purchases on concessional nomic restructuring and policy reforms were se- terms and implementing a concessional facility to verely limited by the external constraints posed by repay outstanding World Bank debt by low-income the problems of debt, commodities and capital re- African countries that were pursuing reform meas- source flows. Financial flows to Africa, especially ures); and commercial bank loans (special debt re- concessional flows, had to be increased and their lief measures in favour of African countries, in- quality improved. A number of possible actions cluding more flexible conditions, lower interest were considered to be particularly relevant: donor rates, longer maturity and grace periods, disposal countries should substantially increase their offi- of claims at discounts and debt-equity swaps). cial development assistance (ODA) to Africa; co- Both the public and private sectors in African financing funds pledged under the World Bank’s countries would need to improve the management Special Programme of Assistance for low-income, of their foreign debt, negotiate more effectively debt-distressed countries

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