General Assembly Session 49 meeting 58

The President

I call on the representative of Nicaragua to introduce draft resolution A/49/L.25/Rev.1.

Mr. Vilchez Asher (Nicaragua)

I should like at the outset to thank the Secretary-General, Mr. Boutros Boutros-Ghali, for the support given to the economic and social reconstruction of Nicaragua and for the publication of his report (A/49/487).

Nicaragua was pleased when the General Assembly on 22 October 1993 adopted resolution 48/8, in which the Assembly, concerned at the fact that the recent natural disasters and the burden of foreign debt were impeding Nicaragua's efforts to overcome the consequences of the war within the framework of a democracy and in the macroeconomic conditions already achieved, requested the Secretary-General, in cooperation with the relevant organs and organizations of the United Nations system, to provide Nicaragua with all necessary assistance for its rehabilitation, reconstruction, stabilization and development, in order to render the peace and democracy achieved irreversible. In this context, we greatly appreciate the contributions of organizations and agencies of the United Nations system in various fields, as well as the initiatives supported by the international community.

The Government of the Republic of Nicaragua, with the assistance of democratic political forces, the support of our people and the solidarity of the international community, continues to make considerable efforts to overcome our main challenges: the consequences of the war, poverty and the natural disasters that have beset us.

Nicaragua faces major challenges. We have undergone a total transformation, so complex that it deserves special treatment. Our country is in the process of transition from totalitarianism to a participatory democracy, from a centralized economy to a market economy, from poverty to development, from war to peace and from confrontation to political and economic reintegration. Our Government has been promoting the process in a polarized society suffering from natural disasters that have worsened the country's already precarious economic and social situation.

The Government of Nicaragua, headed by Mrs. Violeta Barrios de Chamorro, is involved in a broad reform process designed to achieve national reconciliation, pacification and economic and social development. Despite the difficulty of this process, we have been engaged in consultation, dialogue and joint action with various national political groups. There is no doubt that since 1990 Nicaragua has achieved a great deal in a number of these areas. Nevertheless, there have been substantial lags in other important sectors.

Considerable progress has been made in the pacification of the country, democratic practices have improved and today Nicaragua enjoys a greater degree of political freedom than in its entire history. In the economic sphere it has established a framework for a market economy, has achieved macroeconomic stabilization and has curbed hyperinflation.

The report submitted by the Secretary-General, without being exhaustive, highlights the considerable progress made in the political and economic fields as well as the fact that in some areas, mainly the social area, progress has lagged.

However, as the report indicates, despite the successes in the transition process, the country has not made as much progress as it would have liked in all areas. There is a considerable lag in the socio-economic field compared with the political and macroeconomic areas, which could cause considerable social friction. Therefore we need urgent action to achieve harmony. Here international cooperation must be adapted to the specific national situation by contributing to the formulation and implementation of measures designed to improve the standard of living of the majority of the population.

The close harmony that must exist between the process of political reconciliation and economic and social recovery is fundamental in order to consolidate the progress made in Nicaragua to date. This requires the sustained support of the international community.

In this context, we are grateful for the creation, with the support of the Secretary-General and on the basis of resolution 48/161 of 20 December 1993, of an active group of friendly countries composed of Canada, Mexico, the Netherlands, Spain and Sweden. This Support Group is playing an extremely important role in helping to reactivate the economic and social development of our country, which will undoubtedly lead to the strengthening of our democracy and institutions.

Despite the achievements of the past three years, attaining Nicaragua's social and macroeconomic objectives for the period 1994-1997 depends on considerable external financing in the medium term. Even under certain optimistic scenarios, involving great fiscal discipline, important structural reforms and no delays in disbursements by international financial institutions, our country's international viability hinges to a large extent on finance obtained from a combination of external transfers and considerable reductions of Nicaragua's foreign debt, which at 31 December 1992 amounted to $11.126 billion, or $2,928 for each Nicaraguan.

Much of the progress in and the very future of consolidating our democracy hinges on urgently tackling this problem, which has placed Nicaragua in a much worse situation than that of any other country classified by the World Bank as a severely indebted low-income country. In 1992 the foreign debt was approximately 3,466 per cent of exports and 822 per cent of gross domestic product, while the amount needed for debt servicing was 344 per cent of exports or 23 times more than the average for the severely indebted low-income countries.

This disproportionate debt in a country that, because of conflict, has reduced levels of exports to approximately $300 million a year, makes Nicaragua an exceptional case requiring massive reductions in its foreign debt to ensure its medium-term viability. The international community's recognition of Nicaragua's exceptional situation is a key element in its growth and development prospects. Nicaragua appreciates this special status.

The Government of Mrs. Violeta Barrios de Chamorro continues to make great efforts to carry out an ambitious programme of economic and social reform. The main object of Nicaragua's economic programme for 1994-1997 is to consolidate the achievements of the years 1991-1993, to intensify the process of structural reforms required for the effective functioning of a competitive economy and to make progress towards viability in the international economy.

In the social sphere, the main social indicators of our country show that in 1994 50 per cent of the population lived in poverty, infant mortality was 72 per 1,000, and 28 per cent of children were undernourished. The Government therefore attaches the highest priority to strengthening a combination of institutional changes and to developing various social programmes. Foremost among them are projects to alleviate poverty in the short term.

The principal macroeconomic objectives of the programme are to create the foundations of sustained growth in real per capita income, to reduce inflation to single digits and to strengthen the reserves of the Central Bank. The Government programme also emphasizes development of the right climate for private investment and the expansion of employment in productive activities, thus improving the living conditions of the poorest sectors of the population.

Nicaragua is making important strides in structural adjustment and stabilization in a framework of political and economic democracy. However, 1994 and 1995 will be key years for Nicaragua, since we will be consolidating the foundations for a process of sustainable growth and recovery of national production and consumption. The recent signing of multilateral agreements shows the international community's firm support for the economic programme we have been implementing. That support will provide the funds to bring our balance of payments into equilibrium and carry out important economic and social projects.

Nicaragua will continue to implement suitable economic and social policies and to make the adjustments necessary to counteract the unfavourable impact of factors that have harmed the economy this year, such as the severe drought, which reduced the country's agricultural output, and electricity shortages that have affected the growth of economic activity this year. According to statistics released by the Ministry of Agriculture, productive areas lost through drought total some 256,853 manzanas of arable land, a loss that directly affects 135,104 producing families and has an indirect effect on 130,000 agricultural labourers who have lost their jobs owing to lack of work. If we take into account the fact that every family affected numbers at least five members, we see that the total number of persons affected is an estimated 675,520, or more than 25 per cent of the Nicaraguan population.

The Government of Mrs. Violeta Barrios de Chamorro will continue to make every effort necessary to promote greater respect for human rights, consolidate peace, establish a state of law and achieve progress towards stability. There will be improvements in the financial system, priority being given to public expenditure in those areas with the greatest social and economic impact, to the privatization and deregulation of publicly owned entities and to important advances in the process of reform and diminishing the role of the State. Similarly, the country will continue to improve methods of promoting confidence in the private sector so that investments there will help create more jobs and enable us to expand our production base. This process is being helped by the gradual progress being achieved in the settlement of ownership disputes and a greater strengthening of the climate of peace and security in the countryside.

However, the accumulated effect of natural disasters, the aftermath of the war and the resulting economic and social problems represents a tremendous obstacle to any real progress in development. Our experience demonstrates that peace-building in the aftermath of conflicts must be accompanied by global development efforts in the political, economic and social spheres and that the resources mobilized should be channelled to those efforts.

Nicaragua is grateful for the generous and effective response of the United Nations and the international community in mobilizing assistance to it. Such efforts will help to strengthen the direct link between democracy, peace and development.

My delegation, on behalf of all the sponsors, has the honour to introduce the draft resolution (A/49/L.25/Rev.1), "International assistance for the rehabilitation and reconstruction of Nicaragua: aftermath of the war and natural disasters".

This draft resolution refers to an earlier resolution on the same subject and updates it, taking into account new elements that have emerged in Nicaragua. In this connection, we have included two new preambular paragraphs, one taking into account the central role of the Nicaraguan people and Government in seeking lasting solutions to consolidate the achievements of their transition and the other taking into account the commitments adopted by the Central American Presidents at the Central American Environment Summit for Sustainable Development, in which it was decided to give special attention to Nicaragua due to its exceptional situation.

The operative portion of the draft resolution is similar to that of General Assembly resolution 48/8, with a few additions and changes. The unanimous adoption of the draft resolution will be further demonstration of the political will of the international community to support Nicaragua's national reconciliation, peace-building, democracy and economic and social development, and will have a positive effect in consolidating a region of peace, freedom, democracy and development in Central America. We therefore hope that the draft resolution will be adopted by consensus.

Mr. Flores Olea (Mexico)

We should like to thank the Secretary-General for his report (A/49/487) entitled "International assistance for the rehabilitation and reconstruction of Nicaragua: aftermath of the war and natural disasters", in which he gives an account of the support activities carried out by bodies of the United Nations system, especially the United Nations Development Programme (UNDP), on behalf of Nicaragua.

In recent years we have witnessed the efforts made by Central American countries to overcome a period marked by violence, instability and shortage. Such efforts have called for goodwill from all sectors of society in those countries and the continued support of the international community.

In Central America there continue to be obstacles to consolidating the bases of stable economic and social development. In this connection, the international community must play a meaningful role in expanding and enhancing support for that region.

For Mexico, Central America is an area of priority interest because of our geographical proximity and our close historical and cultural links with that region. In this connection, my country has consistently engaged in cooperation activities designed to lend support to the recovery and economic and social development of the five countries of the region.

Today Nicaragua is facing major challenges in the economic, political and social sectors. It is therefore making tremendous efforts to reactivate those sectors. To the problems stemming from a prolonged period of armed conflict have been added others that are the result of various natural disasters, which have led to a further deterioration of the country's economic and social situation.

We should like to express our gratitude to the Government of Nicaragua for its efforts in the economic sphere to bring about macroeconomic stabilization and lay down firm bases for sustainable development. We must also emphasize the considerable progress made in the sphere of public finance, which has helped to bring about a drastic reduction in inflation from the levels of the last decade.

Nevertheless, the Secretary-General points out in his report that economic activity as a whole has not been sufficiently reactivated. The country has not been able to expand its participation in international markets to any significant extent, and its exports continue to lag behind imports; the balance of payments deficit is between $600 million and $700 million per year.

In the social sphere, as the report states, the situation gives grounds for concern. According to the Secretary-General's report, current per capita gross national product is at the level of least developed countries. Unemployment stands at 22.6 per cent; and underemployment at 20 per cent; 75 per cent of Nicaraguan families live below the poverty level, with 44 per cent in extreme poverty.

The report goes on to note that, in spite of the achievements in Nicaragua, the country has not been able to advance in all areas and that there is a lag in the socio-economic field in relation to the political and macroeconomic areas. Finally, the Secretary-General emphasizes the importance of international cooperation, which must be adapted to the national situation, and which requires special attention to the productive sector. This would have a positive, multiplier effect on the Nicaraguan economy.

Within its means, Mexico has provided and intends to continue providing support for Nicaragua. In the context of resolution 48/161, Mexico is participating in the Group of Friends set up by the Secretary-General to support the revitalization of economic and social development in Nicaragua. My country has instituted a number of support mechanisms involving both development projects and technical assistance activities. Thy include: the first agreement on financial cooperation between Mexico and the Central American Bank for Economic Integration (CABEI); the addendum to the second agreement on financial cooperation between Mexico and the CABEI; the Programme for the Financing of Central American Imports, which was intended to make $65 million in assistance available to Central American countries as from 1988; the Mexico-CABEI programme for professional development; and the Technical Cooperation Programme with Central America. Under the professional development programme, 92 Nicaraguans have been trained in Mexican public institutions since 1988.

We must recognize that the efforts of the people and the Government of Nicaragua will be more effective if the international community and the competent international organizations cooperate with it to consolidate its own economic, social and institutional objectives. Hence, we urge the international community and financial bodies such as the World Bank, the International Monetary Fund and the Inter-American Development Bank to grant Nicaragua the favourable treatment its exceptional circumstances require.

We call on Member States to make an additional contribution to the reconstruction and rehabilitation of Nicaragua through the adoption by consensus of the draft resolution before the Assembly.

The President

I should like to inform the Assembly that the Permanent Representative of Denmark, on behalf of the Group of Western European and Other States, in a letter dated 15 November 1994, requests that the General Assembly hear in plenary meeting a statement by the observer of the Holy See during the debate on agenda item 158, "Report of the International Conference on Population and Development", scheduled for today.

In another letter of the same date, the Permanent Representative of Denmark, also on behalf of the Group of Western European and Other States, requests that the Assembly hear in plenary meeting a statement by the observer of Switzerland during the debate on item 37, "Strengthening of the coordination of humanitarian and disaster relief assistance of the United Nations, including special economic assistance", scheduled for Wednesday, 23 November, as well as during the debate on item 92, "Agenda for development", scheduled for Monday, 21 November.

Members will recall that, in accordance with established practice of the General Assembly, observer non-Member States may normally make statements only in the Main Committees. However, following consultations, and taking into account the importance attached to the issues under discussion, it is proposed that the General Assembly should take a decision on those requests.

May I take it that there is no objection to the proposal to hear the observer of the Holy See in the course of the debate on agenda item 158?

The President

Next, may I take it that there is no objection to the proposal to hear the observer of Switzerland during the course of the debate on agenda item 37 and on agenda item 92?

Mr. Maruyama (Japan)

My delegation appreciates the efforts the Government of Nicaragua, led by President Chamorro, has been making to lay a durable foundation for democracy, market-oriented economic reform and reconstruction of the economy since the April 1990 peaceful transfer of power and the demobilization of the armed opposition.

We have been pleased by the improvements that have taken place in the political area, especially those which have strengthened democracy, the rule of law, the protection of human rights and security. Economic reform has likewise been making progress, and in this connection my Government welcomes the announcement by the Government of Nicaragua that it intends to continue implementing the structural adjustment programme it undertook on the recommendation of the World Bank and the International Monetary Fund.

To support the Government of Nicaragua as it labours to further democracy and economic reform, donor countries and the international community must continue to provide the financial resources and technical assistance that the country needs and deserves.

For its part, Japan has given highest priority to support for efforts in those two areas in its programme of cooperation in Latin America and particularly in Central America. It has therefore endorsed the efforts of the Government of Nicaragua in both the political and economic spheres, and has provided it with a steady flow of support on the basis of its Official Development Assistance Charter. For example, my Government recently decided to lend the Government of Nicaragua $37.5 million for its Economic Reconstruction Programme II, and to provide it with extensive assistance to help it increase food production, rehabilitate its socio-economic infrastructure and improve its drinking-water supply system. Also, in the near future, my Government plans to send a high-level mission to Nicaragua to engage in a dialogue on Japan's medium- and long-term policy on economic cooperation with Nicaragua.

In closing, my delegation wishes once again to express its appreciation for the efforts the Government of Nicaragua is making to promote reconciliation, improve security, protect human rights and achieve an early solution to property disputes, and it urges the Government of Nicaragua to continue these efforts.

As one of the sponsors of the draft resolution, Japan hopes that, with international support, the rehabilitation and reconstruction of Nicaragua will progress as rapidly as possible, and it is determined to play a significant role in that process.

Mr. Escobar (Colombia)

It is an honour for Colombia to support, under agenda item 23, the draft resolution entitled "International assistance for the rehabilitation and reconstruction of Nicaragua: aftermath of the war and natural disasters". The exceptional circumstances experienced by that country make it necessary to lend continuing support to its rehabilitation and reconstruction efforts.

Colombia has taken an active part in the Central American peace process, beginning with the Contadora Group and subsequently in the Rio Group. That Group's work was instrumental in arriving at the Esquipulas I and II agreements, which made possible the political viability of peace in the region and succeeded in ending the armed confrontation.

The time has now come for reconstruction in the interests of peace. As part of this new process, the Government of Colombia has given the Government of Nicaragua favourable terms for the payment of its debt to Colombia and has also promoted the greatest possible flexible support on the part of regional organizations.

The Government of Nicaragua, in the context of its internal legal and constitutional framework, has offered, to the extent possible, a gradual solution to the serious ownership problem and to strengthening the judiciary, as well as to the other goals designed to establish a genuine rule of law to provide security and legal guarantees for its citizens. These actions are in conformity with the content of the draft resolution before us, especially the request for the Secretary-General,

"in cooperation with the relevant organs and organizations of the United Nations system and in close cooperation with the Nicaraguan authorities, to continue to provide all necessary assistance to activities for the reconstruction, stabilization and development of that country and to continue to ensure the timely, comprehensive, flexible and effective formulation and coordination of programmes of the United Nations system in Nicaragua, given the importance of these activities for the consolidation of peace". (A/49/L.25/Rev.1, para. 5)

Colombia's cooperation with Nicaragua is inspired by the affection we have for that sister country, by our respect for the Charter of the United Nations and by international agreements. It is enshrined in our 1991 constitution, in whose preamble the people of Colombia commit themselves to promoting the integration of the Latin American community and whose Article 9 states that

"Colombia's foreign policy is aimed at achieving Latin American and Caribbean integration".

Now, in the wake of the bloody struggle it endured for so many years, Nicaragua comes before the international community, the American continent and the world with the resolve to achieve the goal of a true, participatory democracy with full respect for the principles and norms of international law.

Mr. Sersale di Cerisano (Argentina)

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