Journal of the Group of 77

Published since September 1982 by the Office of the Chairman of the Group of 77 Volume 15/2 at the United Nations Headquarters in New York April-July 2002

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123456789012345678901234567890121234567890123456789012345678901212345THE FIRST SOUTH-SOUTH HIGH-LEVEL 6

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123456789012345678901234567890121234567890123456789012345678901212345CONFERENCE ON SCIENCE AND TECHNOLOGY 6

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123456789012345678901234567890121234567890123456789012345678901212345TO BE HELD IN DUBAI, UNITED ARAB EMIRATES 6

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12345678901234567890123456789012123456789012345678901234567890121234527-30 OCTOBER 2002 6

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"The South-South High-level Conference on Science and Technology will be held in Dubai, United Arab Emirates (UAE), from 27 to 30 October 2002. The Conference is being sponsored by the Group of 77 in New York in close coordination with the Paris Chapter of the Group of 77, currently chaired by the United Arab Emirates, and also in collaboration with the Municipality of Dubai."

WWW.G77.ORG JOURNAL OF THE GROUP OF 77 • Volume 15 No. 2 G-77 NATIONS TO MEET IN DUBAI ON SCIENCE & TECHNOLOGY ICT, Biotechnology & Safe Drinking Water top agenda UNITED NATIONS — July (IPS/G-77) The Group tries, however, lag far behind in knowledge generation. of 77 is holding its first-ever South-South High-level The disparity between the developed and developing Conference on Science and Technology in October 27- world in their capacity to produce scientific and techni- 30 in Dubai, United Arab Emirates, Ambassador Milos cal knowledge and to utilize this knowledge in support of Alcalay, Permanent Representative of the Bolivarian social and economic development has emerged as a Republic of Venezuela and Chairman of the Group of 77, major challenge facing the international community." announced here. To raise public awareness about the Conference, the The convening of this conference was decided at the Office of the Chairman of the Group of 77 is launching South Summit in Havana (10-14 April 2000) with the a new Web site devoted to the Dubai conference. The objective of formulating new Web site can be accessed global strategies and clear through the Group of 77 home policies within the South for page at the Internet address the promotion of science and http://www.g77.org. technology. Intended as a site for news The Conference is be- and general information con- ing sponsored by the Group cerning the Conference, the of 77 in New York in close Web site will be continuously coordination with the Paris updated by the Office of the Chapter of the Group of 77, Chairman. It features a joint currently chaired by the welcome message by the United Arab Emirates, and Chairman of the Group of 77 also in collaboration with and the Chairman of the Paris the Municipality of Dubai. Chapter of the Group of 77. The four-day Confer- Also offered are sections ence will bring together describing the general back- policy makers from mem- ground of the Conference and ber countries of the Group information about the host of 77, as well as representa- country and the city of Dubai. tives from relevant scien- Information on conference tific organizations, research registration and accreditation institutions, universities, for participants and the media foundations, business sector and other stakeholder groups is also available. A Press Centre in Dubai will provide dealing with science and technology. up-to-the minute press releases about the conference, To facilitate this objective, there will be a high-level statements and other public information. interactive dialogue among Ministers of Science and The Group of 77 is the largest single coalition of Technology, senior officials, scientists and researchers developing nations in the world. The Group was founded from the South, on October 27. on 15 June 1964, by 77 developing countries at the first Three workshops on information communication session of the United Nations Conference on Trade and technology, safe drinking water, and biotechnology will Development (UNCTAD). be held during the conference. Other parallel events, Since then, the Group has grown to 133 nations, including an exhibition, are scheduled to be organized by representing almost the entire developing world, includ- the Municipality of Dubai. ing China. The Group has five Chapters located at Geneva, In a joint message to the upcoming conference, Nairobi, Paris, Rome, Vienna and Washington, D.C. (G- Ambassador Milos Alcalay, Chairman of the Group of 77 24). Over the past nearly four decades, the G-77’s role in New York, and Ambassador Hussein Ghubash, Chair- and influence have expanded as seen most recently at the man of the Group of 77 Paris Chapter at UNESCO, said: first South Summit. "Rapid advances in science and technology, particu- For further information, please contact the Confer- larly in such areas as microelectronics, biotechnology ence Secretariat located at the Office of the Chairman of and information technologies, have played a critical role the Group of 77, telephone: (212) 963-3816; fax: (212) in economic and social development. Developing coun- 963-3515, E-mail: [email protected].

2 JOURNAL OF THE GROUP OF 77 • 2002

Founded in September 1982 EDITORIAL

Why the World Needs a Humanitarian International Fund...

t the recently-concluded summit meeting on Financing for The JOURNAL OF THE GROUP OF 77 is published at the United Nations Headquar- ADevelopment (FfD) in Monterrey, we accepted with humble- ters by the Office of the Chairman of ness - but with a lot of firmness-- the flag of dignity, on behalf of the the Group of 77 in New York in collabo- peoples of the third world. ration with Inter Press Service (IPS). As president of Venezuela, and speaking on behalf of the Group Contributions to the Journal are wel- of 77 and China, I was the first speaker at this Summit meeting. come and should be addressed to the Managing Editor of the Journal: Of- In this forum, I presented a proposal for the creation of a fice of the Chairman of the Group of Humanitarian International Fund. 77, U.N. Headquarters, Secretariat building, Room S-3953, New York, Since the International Monetary Fund (IMF) is not an instru- N.Y. 10017, U.S.A. ment either to help the social development of the planet or to fight hunger and misery that kills millions of human beings, the Humani- tarian International Fund is aimed at filling this void.

Publisher: According to UN statistics, a child dies every three-seconds either of hunger or of illnesses that can be avoided. You can count Ambassador Milos Alcalay up to 1, 2, and 3-- and misery takes away a life. Chairman of the Group of 77, New York Millions of human beings don't have employment, decent hous- Managing Editor: ing, drinking water, electricity, or property. They don't have the Mourad Ahmia right to health or education. Executive Secretary Millions of human beings are being forced to live with less than Editor: a dollar per day. Still they survive. Thalif Deen But there are more than enough reasons to declare a worldwide Inter Press Service emergency to redress these shortcomings. This is our clamor.

Editorial Assistant: If 10% of the external debt of our countries, and 10% of the military expenses, are earmarked to finance this Humanitarian José Hernández International Fund, along with the call for official help for development, we will be able to give shape to a mechanism that allows us to fight this anguish of humanity. This is a contribution that Venezuela is willing to make to heal Telephone: the wounds of the planet. (212)963-3816 (212)963-0192 As everyone is aware, the present situation in the world is terrible, and it is an emergency that generates a lot of risks -- risks Fax: of violence, wars, and death and destruction. (212)963-3515 (212)963-0050 God didn't create us to find a way to hell. With this proposal for a Humanitarian International Fund, we E-Mail: may be able to return to life, dignity, equality and happiness of [email protected] humanity.

The Journal of the Group of 77 is also Hugo Chavez Frias avaialble on the Internet at: President of the Bolivarian Republic of Venezuela http://www.g77.org Chairman of the Group of 77

3 JOURNAL OF THE GROUP OF 77 • Volume 15 No. 2 GLOBAL ECONOMIC CRISIS THREATENS STABILITY & GROWTH IN THE SOUTH

UNITED NATIONS, May (IPS/G-77)-- The chairman of In fact, he said, all of the outcomes of the major UN the Group of 77 Ambassador Milos Alcalay of Venezuela, international summits and conferences have explicitly and who was invited to address the G-24 in Washington DC, told implicitly addressed and highlighted the indispensability of delegates that the economic crisis affecting developing nations is financial resources for development. a major threat to the future stability and growth in the South. The reviews undertaken on those outcomes highlight that Today, the international community is faced with multi- the major factor for not effectively implementing these deci- faceted challenge to effectively grapple with multidimen- sions have been largely related to deficient actions on finan- sional problems facing developing countries-- particularly cial resources for development. poverty, he added. "We do sincerely hope that Bretton Woods institutions The G-24 meeting took place during the annual spring and other partners in development undertake an effective fol- meetings of the World Bank and the International Monetary low-up for the Monterrey Consensus in order to achieve the Fund (IMF) in Washington DC which are attended by the objective set out in the Millennium Declaration," he added. world's finance and development ministers. The problem of inadequacy of financing for development Addressing the gathering, Ambassador Alcalay said the is closely linked with the issues of external debt and develop- international community has to address these issues as a ment. matter of priority. External indebtedness has emerged as one of the major "Certainly, effective mobilization of financial resources obstacle to the development efforts of developing countries. for development as well as the creation of a conducive The development endeavours of developing countries, in international environment poses the greatest challenges to the particular towards the provision of social and economic ser- international community and to the financial institutions," he vices, has been severely hampered by the obligation to set added. aside a substantial portion of national budgets to service This year's calendar of activities, including the prepara- external debt repayments. tions for the Children's Summit held in May, the Johannesburg "This situation is further exacerbated by the negative Summit in August and the World Food Summit in June, should effect of structural adjustment programmes, decline in offi- be fully explored in search of a new and more enlightened basis cial development assistance (ODA), deteriorating terms of for international cooperation, he pointed out. trade of developing countries and sharp falls in commodity The information development and technological advances prices as well as escalating protectionism in the developed of the last decade have provided a stronger basis for economic countries," he noted. growth. In order to effectively and meaningfully accelerate the The world of today has the necessary resources, knowl- development process of developing countries, there is an edge and expertise, as well as the technical means by which imperative need to reverse these declining trends in the ODA these assets can be shared between countries. flows, which remains the principal source of development "Its global economic interdependence offers the prospects financing for most developing countries. of higher productivity and living standards. However, it also links In particular, developed countries should comply with national economies to international economic environment. The the internationally agreed targets of ODA and commitments financial and economic crisis we are presently witnessing is global for new and additional resources as reaffirmed in Monterrey in its causes and its implications," he warned. with view to assisting developing countries in achieving their Its negative impact will unfortunately be felt perhaps development needs. most severely by the developing countries because of the Eradication of poverty remains a priority goal of all vulnerability of developing economies to external forces. developing countries. However, despite increased efforts to He also said the South Summit of the G-77 held in Havana eradicate poverty, the total number of people living in poverty in 2000 pointed out to the inadequacies of the present eco- is increasing. nomic order for achieving the goals and objectives of devel- The majority of the population in these countries con- opment and has called for meaningful reforms of the interna- tinue to live in extreme poverty, unable to access basic human tional financial system. needs such as nutrition, health, water, sanitation, education, This position has been reaffirmed at the recent meeting of and housing. G-77 Chapters in Paris in April. It is the view of the Group of 77 that Bretton Woods In this context, the issue of strengthening the architecture of institutions should join the UN effort in formulating a the international financial system should therefore become global strategy for the eradication of poverty in developing an important and major focus for the G-77 and the G-24, he countries. added. "In this context, I would like to reiterate the position The issue of financing of development has already been iden- expressed by President Hugo Chavez Frias in Monterrey for tified by the G-77 as the most critical and core issue in the quest the establishment of an International Humanitarian Fund as a of evolving a dynamic international cooperation for development. matter of priority," he added.

4 JOURNAL OF THE GROUP OF 77 • 2002 G-77 CHAIR UNDERLINES IMPORTANCE OF INFORMATION TECHNOLOGIES UNITED NATIONS, May (IPS/G-77)-- Speaking on continued to grow because of new developments in the behalf of the Group of 77 and China, Ambassador Milos field. Alcalay of Venezuela underlined the importance of infor- Personal computers are a good example. After initially mation technologies in a fast changing world. undergoing radical changes, portable computers have ex- Addressing the UN Committee on Information, he said perimented with important innovations, such as conversions that the current international political agenda is intensely into digital screens or the incorporation of remote controls. and increasingly involved in matters relating to technology, However, it is well known that such levels of develop- information and communication. ment are beyond the financial means of people who struggle There is no doubt that this has become one of the for their daily subsistence. recurrent aspects within the main fora of discussion at the "We face one of our biggest challenges in trying to international level, he added. reduce this gap and not allow it to widen even deeper," he The Millennium Summit and the recently-concluded added. summit meeting on Financing for Development in Monterrey, This objective truly demands the collective effort of Mexico both stressed the role of information technologies in everyone. It requires the cooperation of several sectors, and development and infrastructure building. also investments in education, health, infrastructure, etc., The G-77, he said, is looking forward to the upcoming which will help achieve a better equilibrium and greater World Summit on Information to be held in two phases in social justice in the world, he said. 2003 and 2005. "The Group of 77 and China are fully conscious that this While recognising the importance of information tech- endeavor highly exceeds the purposes, not only of this Com- nology, he said there was a digital divide that separates the mittee, but also of those, who separately dedicate themselves to developing from the developed countries. the study of several of these problems," he said. The accelerated progress on matters relating to technol- "But, at the same time, we believe that the aforemen- ogy, information and communications have not reached vast tioned constitutes the general context within which a con- areas in the developing world, thereby restricting progress structive dialogue should take place," he said in important sectors of human development. "We should endeavor to help our countries to suit- The so-called technological gap, between rich and the ably adapt themselves to the reality of our times so that poor, has prevented the balanced development of an irre- they could obtain the benefits derived from the appropri- versible process. ate access and handling of public information-- and in this While problems of distances and communications case, of the public information facilities of the United have been reduced in the world, the digital divide has Nations," he said.

TANZANIAN ENVOY REITERATES CALL FOR A PERMANENT G-77 SECRETARIAT

UNITED NATIONS, May (IPS/G-77)-- Ambassador A: The proposal is not new. It has been there for years. Daudi Mwakawago of Tanzania has expressed strong sup- The G-77 has not been very precise in what it wants. On the port for a longstanding proposal for the establishment of a face of it, the proposal is a very good idea, but I think some permanent secretariat for the Group of 77. work needs to be done to work out the details. You need to In an interview with the JOURNAL OF THE GROUP commission a small group of two or three experts to come up OF 77, he called for the appointment of a small group of with what kind of structure we need-- and how to go about experts to flesh out the mechanics of the proposal. doing it. "So far, we have been working on an ad hoc basis. We Q: If a new secretariat is to be established in New York, need a permanent structure," the former chairman of the how should it be structured? Group of 77 said. A:There are two central questions to be answered. Firstly, there is a need to ensure adequate resources. You Excerpts from his interview: cannot get the secretariat staff to concentrate on their work Q:The Programme of Action adopted at the South Sum- if they don't know where and when their salaries would come mit in Havana in April 2000 called for the establishment of from. If the secretariat is to be funded with voluntary a permanent secretariat for the Group of 77. As a former contributions, it cannot be realised. It has to have secure chairman of the G-77, what are your thoughts on this resources. At present, each G-77 member is expected to proposal? Continued on page 6

5 JOURNAL OF THE GROUP OF 77 • Volume 15 No. 2 Continued from page 5 either for the G-77 or the South Centre. voluntarily contribute $1,000 per year. But this has fallen far Q: What should be the source of funding for such a short of expectations. The South Summit in Havana in- secretariat? Besides G-77 members, should'nt the funding creased the amount to $5,000 per year. sources also include the Perez-Guerero Trust Fund and the Secondly, what kind of manpower would you need for Trust Fund for South-South Cooperation? the secretariat?. The secretariat cannot survive on borrowed A: This is something we have to discuss. Should it be staff. The G-77 is essentially an economic outfit. So we need voluntary or mandatory? We should not be too reliant on economists, not merely academics. The G-77 also repre- donations because it may impinge on the work of the G-77. sents a diverse group of countries-- medium income, low It has to be our institution. But that does not mean that income, least developed, small island developing states donations are not welcome. The core funding should be from etc. So, we need a secretariat which appreciates this diver- the G-77. sity. Q: Do you think there is a need to strengthen the Q: Do you think the absence of a secretariat has in any coordination and relationship between the Office of the way hindered North-South negotiations or weakened the G- Chairman in New York and G-77 chapters in Vienna, Paris, 77 negotiation process during the last 25 years? Rome, Nairobi, Geneva and Washington DC? What role can A: Yes and No. No, it has not hindered negotiations a new G-77 secretariat play in upgrading this relationship? because we have been able to survive up to now. Yes, A: Yes. Right now, there is a lot of effort under the because we could have done better with assistance from a chairmanship of Venezuela to strengthen coordination be- secretariat. Up to now, we have had very valuable inputs tween New York and the G-77 chapters. But this again has from the South Centre in Geneva which has provided us with to be institutionalised. After Venezuela, what? Unless this is back up material. But this has been purely on an adhoc basis more formally institutionalised, the coordination will de- and, at times, at very short notice. This is not beneficial pend on the whims and fancies of different chairmen.

PROPOSAL FOR NEW UN AGENCY FOR AGEING NEEDS CONSIDERATION

UNITED NATIONS, June (G-77/IPS)— The proposal ment and thinking on ageing for the twenty-first century, by the Group of 77 to create a new UN agency or interna- and they are a blueprint for the necessary international tional body to deal with ageing needs further consideration, response to the opportunities and challenges of population says Ambassador Felipe Paolillo of Uruguay. and individual ageing. The actions they call for will be the In an interview with the JOURNAL OF THE GROUP basis of the worldwide effort to build a society for all ages. OF 77, the chairman of the PrepCom for the Second World A significant accomplishment is the fact that the Interna- Assembly on Ageing said the creation of a new agency tional Plan pays particular attention to developing countries would depend largely on the terms of reference of such a and that it squarely places ageing in a development context. body. It furthermore recognizes the need for a multi-sectoral “Ultimately, the feasibility of the proposal will depend approach to ageing and development, and the need to main- on the amount of resources it can attract,” he added. stream ageing into the subject of global agendas. Ageing The proposal was informally initiated by the Foreign should no longer be perceived as an afterthought or appen- Minister of Venezuela (on behalf of the G-77) at the dix issue nor should it be seen as solely a social welfare World Assembly which took place in Madrid, Spain in issue. It must be given due attention in global and institu- early April. tional structures. We have sought to ensure, in Madrid, that Ambassador Paolillo also pointed out that the amount of ageing will be given a basic place in all development resources currently devoted to ageing issues in the UN agendas. system “does not amount to very much”. Q: How successful was the implementation of the Inter- national Plan of Action adopted by the First Assembly on Excerpts from his interview: Ageing 20 years ago? Q: What are the concrete achievements of the Second A: The 1982 Vienna International Plan of Action on World Assembly on Ageing which was concluded in Madrid Ageing was successful in placing ageing on the global map. recently? It was considered groundbreaking in redressing global views A: 159 Member States attended the Second World on ageing and in advancing the subject up the UN agenda. Assembly on Ageing and adopted the Madrid International At that time, population ageing was not yet an issue in Plan of Action and the Political Declaration. Together, developing countries. Consequently many observers viewed these documents provide new guidance on policy develop- the Plan as focussing more on the developed world largely 6 JOURNAL OF THE GROUP OF 77 • 2002 in terms of taking care of persons then termed “the elderly”. reach out to the difficulties faced more by elderly women Without being a burning issue for the developing countries, than elderly men in our societies? the implementation of the original Plan of Action received A: Gender is one of the eleven main themes in the Plan only limited attention. Still, in the 20 years since Vienna, a of Action: “Commitment to gender equality among older succession of initiatives initially spurred by the 1982 Vi- persons through, inter alia, elimination of gender-based enna Assembly brought us in 2002 to Madrid. Among these, discrimination.” In addition, older women are specifically the International Year of Older Persons in 1999 on the theme addressed in the various priority issues as well as numerous of a “Society for all Ages” was especially important. Since recommendations, including income security and social 1982, also, a handful of countries have already experienced protection, attitudes, and the abuse of older persons, among an historic demographic reversal, whereby persons 60 years others. and over outnumber children under 15 years; in 30 years’ Q: What role can debt relief and increased development time, this will be the case in about 50 countries, including assistance play in directly or indirectly helping govern- China. ments to devote resources to care for the world’s ageing Q: Are you confident that the new plan of action adopted population? in Madrid will be fully implemented? How much of financial A: Debt relief and increased development assistance are resources are needed for its implementation? specifically addressed in the Plan of Action. At the global A: The implementation process has already begun, start- level, ageing issues need urgent attention and the Plan calls ing at the regional level. The UN ECE has been developing on international financial institutions to address this issue, an implementation strategy, which will be adopted in Berlin noting the need for speedy and concerted action to ad- in September, the Latin American and Caribbean region is dress the debt problems of developing countries. Debt already working on a strategy for implementation and is relief is at present mostly confined to the HIPC coun- organizing a series of meetings in this regard, and ESCAP is tries. Middle income countries are not included. Conse- holding a meeting this fall to discuss implementation and quently, whatever debt relief is achieved will benefit only follow-up to the Madrid Plan in their region. Financial the poorest developing countries. As debt relief is closely resources are always an issue, of course. The Madrid Plan related to PRSPs, the extent to which such papers include of Action does not contain specific language on costing for strategies dealing with older persons may make debt relief, its implementation. This does not mean that the implemen- at least indirectly, relevant to addressing the challenges tation is costless. In this regard, the recently concluded posed by an ageing population. A substantial increase is Monterrey Consensus bodes well in terms of commitments required in official development assistance (ODA), if to increase ODA by both the EU and the USA. Political will those nations are to reach agreed development goals. was clearly mobilized in Madrid, and I am optimistic that Developed countries are urged to make concrete efforts regional and global entities and institutions will come forth towards the target of 0.7 per cent of gross national product as requested in the Plan, because to address ageing now is (GNP) as ODA to developing countries, and 0.15 per cent of the most clear-sighted of the options we have before us. their GNP to least developed countries. How this ultimately Q: Why is ageing more of a problem in developing than helps developing countries to address ageing will also de- developed countries? Is it the lack of security and medical pend on the priority they give ageing within their develop- insurance in poorer nations? ment agendas. A: First of all, we refrain from using the word “prob- Q: The Group of 77 has proposed the creation of anew lem”. We must, at the start, recognize that longevity is a global international body on the lines of UNICEF devoted to accomplishment. We are very much aware, to the contrary, that issues of ageing? How feasible is this proposal? far too many lives are cut short by war, disease, and poverty, A: On the opening day of the Assembly, the Ambassador and in particular in developing countries. of Venezuela, representing the G-77, referred to a meeting Secondly, developed countries took, on average, 100 of the G-77 and noted that the G-77 supported the idea of a years for the proportion of their older population to double fund similar to UNICEF to protect the rights of indepen- from, say, 7 percent to 14 percent. This slow pace made the dence of older persons. It was not formally proposed in the need for adjustments gradual. In a surprising number of Assembly. Further consideration of this proposal would developing countries, demographers predict that this same largely depend on the terms of reference of such an agency. doubling will take place in 25 years or less. This is astonish- Ultimately, the feasibility of the proposal will depend on the ing, and has implications in every social and economic amount of resources it can attract. At present, the amount of sphere in the developing world, which is already struggling resources devoted to ageing issues in the UN system does with broader issues of development. Yes, lack of security is not amount to very much. Whether a new body would be an an issue, as is lack of medical coverage. Bear in mind, also, impetus to change this situation remains to be seen. Also, we that the majority of older persons in developing countries must first search for the types of operational interventions live in rural areas, where they most often continue to struggle akin to immunization campaigns for children that could in poverty and with inadequate infrastructure. single-handedly make a similar difference to the lives of Q: Is the new plan of action gender-specific and does it older persons.

7 JOURNAL OF THE GROUP OF 77 • Volume 15 No. 2 FINANCING FOR DEVELOPMENT NEEDS FOLLOW-UP MECHANISM UNITED NATIONS, May (IPS/G-77)-- Ambassador ** How to promote effective implementation of the Shamshad Ahmad of Pakistan, co-chair of the Preparatory Monterrey Consensus in the respective institutions? Committee for the recently-concluded International Confer- ** How to make the outcome of the ECOSOC-Bretton ence on Financing for Development (FfD) has emphasized Woods institution high level meetings and the high-level the need to "stay engaged" in order to continue the process dialogue of the General Assembly more action-oriented. beyond the Monterrey meeting. ** How to make the high-level dialogue of the General The "Monterrey Consensus", he said, has provided a Assembly more open and inclusive? general framework to realize the goal of financing develop- Ambassador Ahmad also proposed the following which ment. The follow-up to the Monterrey Consensus should be may also be considered through an ECOSOC consultative built on these foundations. process. "There is a need to operationalize the general framework First, the establishment of ministerial level implementa- into an effective follow-up mechanism," Ambassador Ahmad tion review task force dealing with each section of the said in interview with the JOURNAL. Monterrey Consensus. This could help in building the nec- Referring to the preparatory meetings he co-chaired, the essary political momentum required for effective implemen- Pakistani envoy said it was the first time in UN history that tation. a final outcome document was ready weeks ahead of the Second, the launching of a multi-stakeholder round conference. table that would develop practical proposals for the utilisation And most significantly, it represented a consensus with of resources announced at the Monterrey Conference, par- no dissenting voices. Every stakeholder was involved, he ticularly for achieving the Millennium Declaration goals. added. Ambassador Ahmad described the Monterrey Consen- But he expressed disappointment with the first follow- sus as just the first step in a long drawn out process -- "the up meeting under the auspices of the Economic and Social first building block of the process that will lead to our Council (ECOSOC) in which the World Bank, the Interna- objective." tional Monetary Fund (IMF) and the World Trade Organiza- He also pointed out that there is empirical evidence that tion (WTO) participated. global markets fall short of addressing the social develop- This high level meeting was the first significant step ment aspects of economic activity. towards initiating the process of follow-up as envisaged in Trade must now become the main tool of development. the "Staying Engaged" section of the Monterrey Consensus. Trade and development are inseparable. WTO must demol- "I expected something to emerge out of this meeting. But ish protectionist and exploitative trade regimes to bring there were no concrete ideas or specific proposals towards market forces in line with development needs, he added. the implementation of the Monterrey Consensus. We had the Asked if he sees the need for a FfD Secretariat to help same old cliches," he added. implement the process, he said there should be such an outfit Ambassador Ahmad conceded that the document final- if the United Nations is to "stay engaged." "There has to be ized in Monterrey was not a perfect document. "It did not some kind of mechanism in the Secretariat to achieve this contain what everybody wanted, but it contained what ev- objective." erybody was ready to accept." The Monterrey Consensus was a seminal document The United Nations, he said, has gained notoriety as one which should not be subject to routine and linguistic five of the largest consumers of paper and one of the largest yearly or ten yearly reviews-- as has been the case with some producers of waste paper. other seminal documents adopted at various UN confer- The idea is not to keep producing papers and documents. ences. While declarations and debates are useful, they should be "We don't need Monterrey plus Five or Monterrey followed up with practical steps. Plus Ten", he said, adding that the bottom line is: "We He called for creation of a high-level Contact Group need sustainable and equitable development for which which should also include presidents of the General Assem- requisite resources, both domestic and external, must be bly and ECOSOC, representatives of ECOSOC, heads of the generated." Bretton Woods institutions and WTO, and chairman of the He also said that "we need equitable terms of trade, Development Committee (joint Committee of the World enhanced aid and its proper utilisation, rationalization of Bank and IMF). debt burdens and shared decision-making in the global The Contact Group should be entrusted with the task of economic management. We need implementation of the preparing proposals on the following issues: development norms, including those of good governance ** How to ensure constant interaction among the and rule of law as agreed in the Monterrey Consensus." intergovernmental bodies of the various institutional "And we need coherence and collaboration between and stakeholders and the UN system, particularly at the politi- among all stakeholders, and between the global monetary, cal level. financial and trading systems," he added.

8 JOURNAL OF THE GROUP OF 77 • 2002 MONTERREY CONSENSUS A RADICAL DEPARTURE FROM THE WASHINGTON CONSENSUS

By Cristián Ossa entrepreneurs or foreign concerns. In other bers of the United Nations. Secondly, he term "Washington consensus" countries, foreign capital inflows increased while the " Washington consensus" deals Temerged a dozen years ago in an but often were largely of a short-term or with the set of policies that recipient important article by John Williamson in speculative nature leading to the so-called countries should follow, the "Monterrey which he tried to characterize the set of Mexican crisis, the Asian crisis and the consensus" underscores shared, mutual economic policies that would lead al- Russian crisis whose reverberations even responsibilities. It highlights the com- most inexorably to more rapid growth, today affect several developing coun- mitment to a set of reforms and policies particularly in Latin American countries. to improve the domestic environment tries. At that time, the economies of the By end 1997, at the initiative of for enhanced mobilization of domestic United States under President Reagan several countries in Africa, Asia and resources and increased investments in and of the United Kingdom under Prime Latin America, the United Nations Gen- recipient countries and to the set of re- Minister Thatcher had scored some suc- eral Assembly adopts a resolution to forms and policies required from devel- cess, a number of developing countries consider the convening of high-level oped countries to improve international were growing rapidly with export-led consultations on Financing for Devel- economic environment, including inter- growth and the fall of the Berlin Wall opment. Gradually, momentum builds- national cooperation policies and the was perceived by many as the evidence up through an innovative process of reform of the international financial ar- that market economies functioned deci- deliberations in which the World Bank, chitecture. Thirdly, while in the back- sively better than centrally planned the International Monetary Fund, the ground of the "Washington consensus" economies. World Trade Organization, regional or- there is the implicit objective of mini- These were the key elements of the ganizations, representatives from the mizing the role of the State through "Washington consensus": fiscal disci- business community and civil society heavy reliance on market forces and pline; redirection of public expenditures participate. The process finally leads to privatization, the "Monterrey consen- to activities with high returns such as an international conference in Monterrey, sus" - notwithstanding its recognition of education and primary health care; tax Mexico from 18-22 March. There, more the key role of market-led development reform to widen the tax base; interest than 50 Heads of State or Government - takes a more pragmatic, less ideologi- rate liberalization and tight monetary from Africa, Asia, Europe and Latin cal, approach. The emphasis of the latter policy; a competitive exchange rate; America, including President Bush and is on improving the quality - not neces- trade liberalization; liberalization of for- Prime Minister Chretien, and with the sarily affecting the size - of State partici- eign investments; privatization; deregu- participation of about 200 Ministers of pation and recognizes that "the appropri- lation; and secure property rights. These Finance, Foreign Affairs, Development ate role of government in market-oriented policies, several of which were key in- Cooperation and Trade, adopt the economies will vary from country to coun- gredients of the adjustment programmes "Monterrey consensus". The document - try." Fourthly, the "Monterrey consen- negotiated between developing coun- brief by United Nations standards - delin- sus" goes much farther than the " Wash- tries and the Washington-based Bretton eates in a dozen pages the institutional ington consensus" in identifying the fac- Woods institutions in the 1970s and reforms and reorientation of policies that tors that determine the enabling domestic 1980s, were embraced more forcefully developing and developed countries must environment. It emphasizes the need for by these institutions in the 1990s. Since undertake as well as the international co- good governance, solid democratic in- the early 1990s, the advice from many operation policies and the role that inter- stitutions, respect for human rights and donor countries and international insti- national organizations must play to en- gender equality together with market- tutions to borrowing countries focused hance the mobilization of resources in oriented policies. on these policies. The "Washington con- order to accelerate development and eradi- Regarding bilateral and multilateral sensus" became an important operational cate poverty worldwide. cooperation, the "Monterrey consensus" device, regardless of whether the coun- The "Monterrey consensus" is radi- is much more explicit than the "Wash- try was an emerging market economy, a cally different from the Washington con- ington consensus". The latter largely least developed country or a former So- sensus in key aspects. First, while the assumes that financial resources from viet Republic. Washington consensus was largely an the developed countries and international By the late 1990s, however, there intellectual construct based on a few financial institutions will flow if recipi- was increasing dissatisfaction with de- success stories in Latin America and ent countries embrace the set of policies velopment trends. Many countries that emerging practices in the Bretton Woods prescribed in the "Washington consen- had made serious efforts to implement institutions which then became a kind of sus". In the "Monterrey consensus", de- most - if not all the policies - advocated guide for donor countries and interna- veloped countries and the relevant insti- by the " Washington consensus" had not tional institutions to condition their aid, tutions are explicitly committed to a experienced the expected surge in pri- the "Monterrey consensus" is the result major effort to assist institution build- vate investments either from domestic of a political agreement among all mem- Continued on page 10 9 JOURNAL OF THE GROUP OF 77 • Volume 15 No. 2 Continued from page 9 taking into account recent proposals and innovative modalities ing and support the strengthening of human capacities in to tackle such problems. It addresses key issues of the interna- developing countries, particularly to enhance the domestic tional financial architecture to reduce the likelihood of financial system and trade policy formulation and implemen- financial crises and contagion and calls for measures for tation. It calls for much increased official development assis- increased participation of developing countries in interna- tance accompanied by measures to make delivery, absorption tional economic decision-making. Its last chapter contains and outcomes of such assistance less costly and more effec- an important agreement regarding implementation and a peri- tive. The "Monterrey consensus" reaffirms the decision at odic evaluation of results with participation of all the main Doha in November 2001 to place the needs and interests of stakeholders. developing countries at the heart of the work programme of the In sum, the "Monterrey consensus" is much more ambi- World Trade Organization. It also underscores the importance tious than the " Washington consensus", it has a broader of domestic and international corporate responsibility and perspective, and focuses not only in the duties of recipient international cooperation efforts to mitigate the impact of the countries but also on the substantial efforts required from excessive volatility of short-term capital flows. The "Monterrey donor countries and international organizations. Its imple- consensus" agrees on dealing with current debt problems mentation is a shared responsibility.

DEVELOPING NATIONS NEED ACCESS TO MARINE TECHNOLOGY UNITED NATIONS, May (IPS/G-77)-- The Group of 77 Law of the Sea. has stressed the importance of capacity building in marine "We would like to take this the opportunity to highlight science and technology in developing nations. the importance, for those Sates Parties to the Convention, to Addressing an open-ended meeting of the Informal Con- consider this international instrument as the legal framework sultative Process on Ocean Affairs, a G-77 spokesman said applicable to all the activities realized in the oceans and the the lack of diverse types of resources for access to technology seas". and marine information is a matter of great concern to devel- With regard to the agenda, the Group expressed its oping nations. agreement with the items that will be discussed this year, "We believe it is of capital significance to have interna- namely: the protection and preservation of the marine seabed; tional and regional cooperation in this regard. This coopera- capacity-building; regional cooperation and coordination; tion is also necessary to promote scientific marine research and integration of ocean management. among developing countries, as well as to offer them all the "All those aspects of marine science and technology information resulting from this research and the applications should be duly studied with special attention to the needs of of technology". the developing countries-- particularly the sustainable devel- Likewise, it is important to create a mechanism to ensure opment of these areas," the spokesman said. that national and regional institutions engaged in marine Perhaps a more workable and practical way to continue scientific research, in those areas under State's jurisdiction, the coordination functions of SOCA lies in strengthening the spokesman added. the Division of Ocean Affairs and the Law of the Sea Information, reports, data, conclusions and assessments (DOALOS). should be available in a comprehensible and compatible "This raises the important question of the future of the format to all coastal States. Process. In this regard, we consider that it has certainly made International and regional cooperation, as well as capac- a marked impact in deepening and broadening the General ity building, are also significant in order to strengthen Assembly discussions and treatment of Ocean and Sea mat- infrastructural and economic bases for export trade in fisher- ters". ies products. To have a comprehensive approach, it is important to take Related to specific areas of coordination, the G-77 and into account the following aspects in discussions of Panel China consider that international, intergovernmental and in- A: pollution in oceans and seas and their impacts on fresh teragency coordination on ocean issues is now more critical water resources; impacts of pollution in fragile ecosys- with the demise of the Subcommittee on Oceans and Coastal tems; ballast water and its impacts on marine environ- Areas (SOCA). ment; dumping of wastes; hazardous wastes; radioactive The Group gives the utmost importance to work that has and chemical wastes; marine pollution in coastal areas and its been taking place within the Open-ended Informal Consulta- effects on agriculture and fresh water; crisis management in tive Process. "This is why we welcome this Third Meeting of emergency situations. the Process," he added. "At the same time, we welcome the reference to marine These meetings have a particular meaning this year, as security, particularly as it states the necessity to adopt mea- the United Nations celebrates the 20th anniversary of the sures to prevent terrorism acts that would threaten the secu- inauguration of the signing of the UN Convention on the rity of passengers, crews and ships," he added.

10 JOURNAL OF THE GROUP OF 77 • 2002 NAIROBI CHAPTER WELCOMES UN-HABITAT’S AGENDA FOR URBAN GOVERNANCE

NAIROBI (G-77/IPS)— The chairman of the Nairobi The lack of integration of urban and rural develop- chapter of the Group of 77 has welcomed the launching ment, more often than not, results in the deprivation of by UN-Habitat of two new campaigns: security of tenure infrastructure and other basic services, he said. and urban governance in developing countries. “Interdependence between rural and urban areas, Addressing the first session of the UN-Habitat’s characterised by the circular migration of people, re- World Urban Forum in Nairobi, Ambassador German flects a complex phenomenon. This occurrence, in tan- Garcia-Duran of Colombia said the two campaigns are dem with the hybrid nature of cities in some developing aimed at achieving the initial twin goals of the Habitat countries, impacts heavily on sustainable management agenda, namely, adequate shelter for all, and sustain- policies,” he added. able human settlements development in an urbanising Human Settlements Development is a basic element world. of the sustainable development paradigm that clearly “The Group of 77 feels that there should be transpar- straddles the nexus between its social, economic and ent and efficient monitoring mechanisms to evaluate the environmental pillars. results so far achieved and assess the future of the The imbalances in the emphasis as well as in the campaign.” materialisation of the goals in these spheres need to be He also said: “We are aware that innovative strate- addressed. gies adopted in the implementation phase, such as na- Two aspects meriting emphasis in this regard are the tional legislation pertaining to urban land, measures transfer of technology and capacity building together against unlawful evictions, participation of all stake- with favourable international co-operation including holders, inclusiveness, slum upgrading, capacity build- the existing as well as innovative multilateral financial ing at various levels, good urban governance toolkits, mechanisms interacting with domestic ones that facili- women empowerment and micro credit, are some of the tate access to credit even to the poorest, he pointed out. outstanding features of the on-going campaigns”. Ambassador Garcia-Duran also pointed out that to Recent statistics, he pointed out, show that the apply a symmetric view and balanced action, all related urban population is projected to double in the next few concepts in the field of human settlements must be ad- decades, with most of this increase occurring in the dressed comprehensively and in a functional package. developing countries. Among others, he said, the aspect of “illegal settle- It is further estimated that a quarter of the world’s ments” which is often accompanied by occupation, crime, population, currently living in cities, do not have ad- and violation of basic human rights, must be collectively equate housing and lack access to basic services and condemned. The prime example is the situation in the infrastructure. Middle East where there is mass destruction of human A disheartening phenomenon, reflected in the State settlements and violent loss of hundreds of lives. of the World Cities Report 2001, is the increasing He also warned that the HIV/AIDS pandemic is one urbanisation of poverty accompanied by other socio- aspect of immeasurable catastrophic consequences to economic problems culminating in cities being divided the developing countries. into haves and have-nots, the established and the “It is deeply affecting the overall fabric of our marginalised, offering disparate opportunities for men societies. Unless serious and sustained efforts are made and women, he added. at international level, many countries will be left with an “This gap seems to be widening unabatedly. One unbalanced society: the very young and the aged on the has the sense that urbanisation follows the analogy of one hand and an eroded economic-active section on the globalisation, the latter exacerbating the difficulties of other,” he added. human settlements development in cities as a result of Among such efforts special emphasis must be placed uncontrolled rapid urbanisation. The developing world on the implementation of the right of access to anti- is faced with a tide that is difficult to stem and, unfortu- retroviral drugs at affordable costs. nately, also difficult to respond to in a well-formulated A means to replicate the success attained inter alia and pro-active manner,” he added. in countries like Uganda, Brazil, Thailand and Cuba in Similarly, people living in rural areas, who consti- restraining the devastating spread and effects of the tute half of the world’s population, with the majority pandemic should be developed. Other means, such as residing in developing countries, face daunting chal- promotion of the family as the basic unit of society, lenges concerning human settlements. should also be encouraged, he added.

11 JOURNAL OF THE GROUP OF 77 • Volume 15 No. 2 DIRECTORY OF G-77 CHAPTERS

NEW YORK

H.E. Mr. Milos Alcalay Office of the Chairman of the Group of 77 Ambassador, Permanent Representative of the Bolivarian Room S-3959United Nations Headquarters Republic of Venezuela to the United Nations New York, N.Y. 10017, USA Chairman of the Group of 77 Telephone: (212) 963-3816/963-0192 335 East 46th Street New York, N.Y. 10017, USA Fax: (212) 963-3515/963-0050 Tel: (212) 557-2055Fax: (212) 557-3528 Email: [email protected] Email: venezuela@ un.int Website: www.g77.org GENEVA

H.E. Mrs. Náela Gabr G-77 Liaison Office Ambassador and Permanent Representative of the Arab Republic P a la is d e s N a tio ns of Egypt to the UN Office at Geneva UNCTAD, 8-14 avenue de la paix Avenue Blanc 49 1211 Geneva 10, Switzerland 1202 Geneva, Switzerland Telephone: (41-22)9172408 Tel: (41-22)731-6530 Fax: (41-22)9070056 Fax: (41/22)738-4415 Email: marliatou.barry@ unctad.org Email: mission.egypt@ ties.itu.int NAIROBI

H.E. Mr. Germán Garcia-Duran G-77 Liaison Office Ambassador and Permanent Representative of Colombia The UN C omplex, Gigiri, N airobi to the UN Office at Nairobi Room No. CW-208, CW-209 N a iro b i, K e nya P.O. Box 30552, Nairobi, Kenya Fax: (254-2)246772 Telephone: (254-2)2556/3766 Email: [email protected] Fax: (254-2)622426 Email: [email protected] PAR IS

H.E. Mr. Hussein Ghubash G-77 Liaison Office Ambassador, Permanent Delegate of the United Arab Emirates Bureau MS 1.05 to UN ESC O 1, rue Miollis 75015 Paris, France 75015 Paris, France Tel. (331)45682701 Tel. (331)45682701/02/03/04 Fax (331)45669986 Fax (331)145669986 Email: f.coste-del-uae@ unesco.org Email: f.coste-del-uae@ unesco.org ROME

H.E. Mr. Mohammad Saeed Nouri-Naeeni G-77 Liaison Office Ambassador, Permanent Representative of the Islamic Republic FAO Headquarters of Iran to the specialized agencies of the UN based in Rome Room A-124 Tel. (390) 6-5743594/5780334 Tel. (390)6-57074072/3972 Fax: (390) 6-5747636 Fax: (390)6-57055466 Email: saeed.nouri@ flashnet.it Email: [email protected] VIENNA

H.E. M r. Victor Garcia III G-77 Liaison Office Ambassador, Permanent Representative of the Philippines to the Vienna International Centre United Office at Vienna Room D1073 Laurenzerberg 2, 1010 Vienna A-1400 Vienna, Austria Tel. (43-1) 533240115 Telephone: (43-1)26026-3628/5069 Fax: (43-1)533240124 Fax: (43-1)213463628/260266891 Email: ph.vienna@ magnet.at Email: aheuls@ unido.org

WASHIN GTON , D C (G-24)

Mr. Adamu Ciroma G-24 Liaison Office M inister of Finance 1875 I Street N.W. , Suite IS 2-285 Federal Ministry of Finance, N igeria Washington D.C. 20431, U.S.A. Chairman of the Group of 24 Telephone: (1-202)623-6101; Fax: (1-202)623-6000 Email: g24@ g24.org Web Site: http://www.g24.org