SaO PAULO - Inspired by its founding vision - to help developing countries participate equitably in the world economy - the United Nations Conference on Trade and Development (UNCTAD) today closed its eleventh session, adopting the "The Spirit of Sao Paulo Declaration, which reaffirmed its commitment to the eradication of poverty and hunger, and to the achievement of fair and equitable multilateral trade negotiations.
Wrapping up its week-long session in Brazil's economic capital on a note of cautious optimism, the Conference also unanimously adopted its Plan of Action - the "Sao Paulo Consensus". The outcome of the session recognized that even with encouraging signs of growth in the South, the gap between developing and developed countries continued to widen.
Therefore, UNCTAD XI insisted on the need to focus on the plight of the least developed countries and the ability of global trade to contribute to poverty alleviation.
UNCTAD Secretary-General Rubens Ricupero, in his final address to the Conference before his retirement, said he was proud that the organization was considered the "voice" of the least developed countries. As one of the only forums where both the weak and the strong could talk honestly about vital human development concerns, UNCTAD must be used as a tool to help integrate the world's poorest people into the global economy.
Just as nations had expressed solidarity in the war on terror, he urged them to unite with world's poorest people in their struggle to eradicate poverty and hunger, turn back the spread of HIV/AIDS and secure broader social and economic development.
Possessing "the power of ideas and the power of commitment", UNCTAD sought a "world without divisions, without walls, without separations", he said.
The "Spirit of Sao Paulo", which stressed the ministers' commitment to accelerating multilateral trade negotiations under the 2001 World Trade Organization (WTO) Doha Work Programme, also recognized that improved national and international coherence - the session's overall theme - was vital for sound economic governance. Also contained in the document is a pledge to focus on future challenges such as bridging the "digital divide" and helping to find "the sustainable road to reforms, stability and growth" by adopting policy measures in areas of trade and financing that would create opportunities and jobs for the poor.
The "Sao Paulo Consensus" notes that given the social and human dimension of globalization, development strategies must minimize its negative social impact and maximize its positive effects, while ensuring benefits for all population groups.
Emphasizing the need for the trade policies of developing countries to suit their needs and circumstances, the Consensus calls for concentrated focus on the difficulties faced by commodity-dependent developing countries. The document also urges increased support for restructuring and diversification of their businesses' competitiveness, including by enhanced market access.
Both the meeting's final documents were structured around the four "main pillars" of the Sao Paulo event: development strategies in a globalizing world economy; building productive capacity and international competitiveness; assuring development gains from the international trading system and trade negotiations; and creating partnerships for development.
Welcoming the adoption of the Sao Paulo Consensus as "another important milestone on UNCTAD's historic journey, which had begun in 1964", a representative of the "Group of 77" developing countries and China said that the outcome of the Conference underlined the important role that the organization was required to play in the follow-up to major United Nations conferences, supporting developing countries in post-Doha multilateral trade negotiations, and in adapting to new and emerging developments in trade and transport security, he said.
And, for the first time ever, a final document of UNCTAD - and, indeed, any negotiated multilateral text - included a paragraph on "policy space" in pursuance of development objectives. The launching of the third round of negotiations on the Generalized System of Trade Preferences among developing countries in Sao Paulo this week underscored the importance, increased relevance and timeliness of UNCTAD's work on South-South trade. However, the Group had had much higher expectations regarding the outcome of such issues as policy space, corporate responsibility, commodities, capital flows, debt, official development assistance (ODA), innovative financial mechanisms and trade.
Conference Highlights
Devoted to an overall theme of "Enhancing coherence between national development strategies and global economic processes towards economic growth and development, particularly of developing countries", this year's event dealt specifically with such concerns as improving developing countries' access to markets and the need to redress past imbalances in the world trading system. The participants of the event looked at an increasingly critical issue in today's interdependent world: the link between the national and international dimensions of trade and development.
Exploring policy approaches and the Conference's contribution to the implementation of the Millennium Development Goals, including the commitment "to an open, equitable, rule-based, predictable, and non-discriminatory multilateral trading and financial system", speakers in the debates agreed that the fundamental challenge was to design an effective international trading system, that would bring commercially meaningful and measurable gains for developing countries. Also considered were options and strategies to support developing countries' competitiveness in the most dynamic sectors of international trade.
Participants in numerous interactive sessions, seminars and side events explored links between trade and development and sought ways to increase developing countries' capabilities and competitiveness and strengthen UNCTAD as a forum to advance cooperation, demonstrate the cohesive force of South-South cooperation, open up more channels of understanding between North and South, and to find mutual solutions and address impediments to trade and development. The Conference also tackled new challenges and opportunities presented by modern information and communication technologies, including the use of e-commerce and access to the Internet for the developing world.
Addressing the Conference on several occasions, United Nations Secretary-General Kofi Annan called for true partnerships between developed and developing countries and action to create a "critical mass of new resources to deal with a wide spectrum of human hardship". New resources would help countries to rely on themselves and would be an investment in the future well-being and security of the world, he said.
"Analysis should not become an excuse for paralysis", he said in remarks at a high-level panel on innovative sources of financing for development on 15 June, noting a United Kingdom proposal for an international financial facility as one of the most innovative ideas discussed at the Conference. The initiative envisions "frontloading" aid to meet the Millennium Development Goals, and once agreement in principle is reached, the facility could be put in place quickly.
Among other initiatives launched in Sao Paulo was UNCTAD's Virtual Institute on Trade and Development - a global academic network designed to prepare future generations for active participation in the global economy, by gaining access to the latest UNCTAD analytical work and resources and exchange of information. Also announced this week were new partnerships in support of biotrade in Brazil, Ecuador and the Amazon region, which are expected to promote trade and private sector investment to sustainable use and conservation of the environment.
Showcased during the Conference was the Joint Integrated Technical Assistance Programme (JITAP) designed to build capacity of developing countries of Africa and allow them to take advantage of new trade opportunities with better understanding of the World Trade Organization (WTO) rules and disciplines. Launched in 1996 and implemented jointly by the International Trade Centre (ITC), UNCTAD and the WTO, the project is financed by several donor countries. The second phase of the programme, which was launched in February 2003, is directed at 16 developing and least developed African countries.
Statements
Reporting on the outcome of the work of the Committee of the Whole, the Chairman of that body, ZUKANG SHA (China), said that consensus had been reached on the draft negotiated text.
Despite numerous difficulties, delegations had been very flexible. In fact, the delegations had tested each other's flexibility on such issues as policy space and good governance and, at the last minute, on the word "the". Nonetheless, the spirit of consensus had prevailed. In addition, there had been an issue that was solved at the Bureau meeting of the Conference yesterday concerning voluntary financial mechanisms.
He submitted the text of the Sao Paulo Consensus to the Conference for formal adoption and recommended that the plenary attach an annex to the text on UNCTAD XI multi-stakeholder partnerships, on the understanding that the process of building those partnerships would evolve over time and that their implementation would depend on the availability of the necessary resources, to be provided by UNCTAD and other partners.
The text was then adopted by the Conference without a vote, which also proceeded to take note of a statement on financial implications, which was presented by the Deputy Secretary-General of UNCTAD, CARLOS FORTIN.
Also adopted was the Sao Paulo Declaration, which was presented by CLODOALDO HUGUENEY, Under-Secretary for Economic Affairs of Brazil.
RICHARD T. MILLER (United States) said that the outcome document reflected the Consensus, which was the result of months of negotiations, and the declaration embodied the positive spirit that had guided the deliberations in Sao Paulo. The United States had come to UNCTAD XI with the goal of promoting more rapid and broad-based development for the poor in developing countries and to help them take better advantage of the opportunities presented by globalization.
All the evidence pointed to better economic governance - ensuring the rule of law, protecting property rights, enforcing contracts, and eliminating excessive regulation and the corruption it fostered - as the key to achieving sustainable development. Though that critical point was to some extent reflected in the texts, he believed it should have been given far more emphasis. The international community needed national regulatory environments that ensured fairness for all and that gave adequate space for individuals to unleash their entrepreneurial energies. Also needed was a rules-based international system to ensure a global framework of stability and certainty for producers, traders and investors.
The UNCTAD should focus its attention on issues that would have immediate and lasting impacts on the lives of the poor, he continued. Sometimes, it was too easy to get sidetracked on calls for innovative mechanisms when better and broader implementation of ideas and policies that had already proven themselves in national and international markets could promote real progress now. It was also easy to get sidetracked on politically and economically unsound proposals such as those for various forms of international taxation, when the resources for achievement of international development goals were already available from existing international and national financial institutions and the private sector.
The United States looked forward to working closely with UNCTAD in the years ahead to assure that developing countries got the advice and support they needed in order to fully integrate into international economy and take maximum advantage of the benefits and resources available there, to ensure that every individual in every country had an opportunity for a better life.
The Conference then adopted a resolution expressing gratitude to the people and Government of Brazil.
The representative of Ghana was pleased to note that his country was prepared to host UNCTAD XII, which highlighted the necessity of ensuring that Africa was actively and adequately involved in multilateral trade talks.
The representative of Tunisia said that his country had also expressed its readiness to host UNCTAD XII.
Senegal, coordinating the African Group's negotiations within the Conference's selection committee on the host for the next UNCTAD, said that it had received several nominations and would weigh them all equally and would submit them, along with the nominations of other regional groups, when the Conference was set to make its final decision.
Speaking on behalf of the "Group of 77" developing countries and China, RANSFORD A. SMITH (Jamaica) said that the adoption of the Sao Paulo Consensus was another important milestone on the historic journey, which had begun with the first UNCTAD in 1964. Its unanimous adoption was a major and significant outcome, which the Group welcomed. Recent events had shown that multilateral agreement on trade and development issues was not by any means assured, and that made the outcome of theConference all the more noteworthy. The consensus achieved in Sao Paulo affirmed the potential and relevance of multilateralism. It ensured that UNCTAD would be able to continue to play its unique role as the focal point in the United Nations system for trade and development and interrelated areas of finance, technology, investment and sustainable development.
The text adopted today was not ideal, he pointed out, but the Group was aware of the fact that an outcome that was based on consensus required that legitimate interests and concerns of all parties be accommodated. The Group regretted that the treatment of some key issues of primary interest to its members diverged significantly from the position that the Group had adopted in the input it had provided to the president of the Preparatory Committee last December. The Group had had a much higher expectation with regard to the outcome of issues, such as a policy space, corporate responsibility, commodities, capital flows, debt, official development assistance (ODA), innovative financial mechanisms and trade. Having said that, he assured the Conference that the Group would give its full support and would work vigorously and tirelessly for the implementation of the Sao Paulo Consensus.
From the start, a key objective of the Group had been to ensure that after 40 years of existence, UNCTAD would not be marginalized, but would instead be strengthened in its vital role of supporting developing countries through its three pillars - consensus building, research and analysis, and technical assistance and capacity-building. The basis for that had been laid in the Sao Paulo Consensus, which also affirmed continued relevance of the Bangkok Plan of Action and took into account important developments since UNCTAD X. The examples of some key issues in that regard included the important role that UNCTAD was required to play in the follow-up to major United Nations conferences, supporting developing countries in post-Doha multilateral trade negotiations and in adapting to new and emerging developments in trade and transport security.
The Group had repeatedly underscored the importance of policy space in pursuance of development objectives, he said. While the Group's expectations in that respect had not been fully met, the inclusion of a paragraph on that important issue in the Consensus was a significant development. That was the first time that the issue was appearing in the final document of UNCTAD and, indeed, in any negotiated multilateral text.
The text had struck an appropriate balance with regard to UNCTAD's participation in the United Nations reform process and in respect of the Conference's cooperation with other organizations and entities. UNCTAD's role in development should be rightfully recognized through continued participation in the high-level meeting of the Economic and Social Council with international financial institutions and the World Trade Organization (WTO).
In the area of trade, the Group was fully convinced that the Conference could play a positive role in deepening understanding of the issues of major concern to developing countries in the Doha negotiations, he continued. It should also lay the ground for continued support in that area through its three pillars. That had largely been achieved. In addition to its ongoing work on multilateral trade negotiations, the Group anticipated benefits for developing countries from UNCTAD's work on such new activities as those relating to dynamic sectors of world trade, development benchmarking and the interface between the multilateral trading system (MTS) and regional arrangements. The launching of the third round of negotiations on the Generalized System of Trade Preferences (GSTP) among developing countries in Sao Paulo this week underscored the importance, increased relevance and timeliness of UNCTAD's work on South-South trade.
Discernible progress had been made on such issues as home country measures and security-related measures and their impact on trade, he continued. He was also pleased that UNCTAD now had increased scope to address issues in the areas of information and communication technologies (ICT) and development. On the matter of corporate responsibility, the negotiated outcome fell well short of the Group's aspiration that UNCTAD's work should go beyond voluntary arrangements.
Notwithstanding that disappointment, it should be possible for UNCTAD to undertake very useful work in that area.
He expressed the Group's deep concern over increased application of coercive economic measures and unilateral sanctions against developing countries, including new attempts aimed at extraterritorial application of domestic law, which constituted a violation of the United Nations Charter, the principles of the MTS and WTO rules. The Group firmly rejected the imposition of laws and regulations that entailed extraterritorial consequences and all other forms of coercive economic measures against developing countries and reiterated the urgent need for their immediate repeal.
Nowhere had the Group's flexibility been tested more than in the negotiations on governance, which, he maintained, was applicable to both national and international levels, and especially so in the context of the Conference whose theme was enhancing coherence between national development strategies and global economic processes towards economic growth and development. While the Group had not achieved all or, indeed, many of its objectives, he believed the Sao Paulo Consensus was substantive and meaningful in its content, both for the members of the Group and for UNCTAD. He welcomed the launching of multi-stakeholder partnerships in the areas of ICT for development, commodities, investment, capacity-building and training.:
