General Assembly Session 56 meeting 37

The Acting President

I should like to inform members that in a letter dated 22 October 2001 addressed to the President of the General Assembly, the Permanent Representative of Ireland to the United Nations, in his capacity as Chairman of the group of Western European and other States for the month of October, requests that the General Assembly hear in plenary meeting a statement by the observer of Switzerland in the debate on agenda item 39, "Towards global partnerships".

In view of the importance attached to the issue under discussion, it is proposed that the General Assembly should take a decision on that request.

May I take it that there is no objection to the proposal to hear a statement by the observer of Switzerland in the debate on this item?

Mr. Kazemi Kamyab (Iran)

Speaking on behalf of the Group of 77 and China, let me express first our deep appreciation, Sir, for your active and engaged stewardship of the work of the General Assembly. I should also like to take the opportunity to express our appreciation to the Secretary-General and the Secretariat for the timely reports prepared for this year's session, including for agenda item 39, "Towards global partnerships".

This is the second year in a row that we have been dealing with the question of partnership, which, if nothing else, should signify the importance of the subject to all members of the General Assembly, both developing and developed countries. Since the Group of 77 has had the opportunity in the past to present its general views on various aspects of global partnership, I do not intend to repeat positions and analyses which are fully known to the Assembly and our partners in the North. Instead, the emphasis in this statement will be on some of the elements and aspects which we consider prominent and urgent for our prospective work, as also addressed in the Secretary-General's report.

As we all know, it was only at the last session of the General Assembly that we started dealing with the question of partnership as a new agenda item, and that is why the discussion could still be considered at its exploratory stage. I should stress at this point that the Group of 77 and China attaches, as a matter of principle, great importance to the role and participation of stakeholders, including the private sector, in activities towards the realization of the United Nations goals and objectives. Based on this overall premise, we are well disposed and fully prepared to engage actively in a proactive and constructive dialogue with all interested negotiating partners on all aspects of this important subject.

The developing world and its sole universal deliberative body at the United Nations, the Group of 77 and China, are of the firm view that partnership, in its every aspect and at the national and global levels alike, should be conducive to development and the elimination of poverty. This can hardly be overemphasized. What is at issue, therefore, is the role the entire international community should play in this context. The question of building partnerships, an important emerging issue, finds its place within this overall framework. Put in very practical terms, the question for us is how to strengthen the development role of the United Nations system and how to enhance the effectiveness of its development activities and its support for national development strategies and for programmes by implementing various initiatives, including partnerships with all relevant partners and, in particular, private sectors. There is no need to emphasize that these initiatives should be thoroughly reviewed, discussed and refined by Member States. In other words, any actual progress on forging partnerships must by necessity await the intergovernmental body's elaboration and, more importantly, adoption of the requisite elements and modalities for the intended partnerships.

In a world somewhat fixated on market economics and corporate profitability, legislation and intergovernmental agreements should remain important components of any strategy to promote corporate responsibility and accountability. New initiatives in general, and partnerships in particular, should not lead to the further weakening of the regulatory role of State and intergovernmental bodies. It is necessary to reiterate the importance of the State in providing for the general welfare of its citizens. We should recognize that fact and not undermine or diminish the role of the State. The State is the one in charge of development, not the market or corporations, as they have totally different agendas. Meanwhile, we should not lose sight of the fact that for many small States, private sector and market involvement is almost non-existent and that the Government is the largest employer.

The cooperation between the United Nations and relevant partners should be aimed mainly at making a contribution to the realization of the goals and programmes of the Organization. Relevant partners, particularly the private sector, could contribute to the realization of the Organization's development goals through financial resources, transfer of technology, management expertise, in-kind donations, responsible investments and price reductions for drugs for treating HIV/AIDS and other diseases. We particularly hope that the transnational corporations, which have a great influence on the global economy, will join the efforts towards the realization of the development goals of the United Nations and take concrete measures to help developing countries in their efforts to promote development.

In our view, it is imperative that the United Nations and its related bodies should focus their work on issues central to the transfer of knowledge and technology and the building of necessary domestic capacities, with a view to promoting the competitiveness of developing countries. The Group of 77 and China is very much concerned that the resources available to the United Nations system to assist developing countries in meeting the challenges they face in designing the policies and strategies required to bridge the technology gap between the North and the South are simply inadequate. We support the recommendation made by the Secretary-General in his report that the resources the partners can contribute, in terms of expertise, funding and technology, should be a complement to governmental resources, not a substitute for them.

The Group of 77 and China agrees with the idea raised by the Secretary-General that the diversity of relationships between the United Nations and the relevant partners is such that it is not possible to adopt a one-size-fits-all institutional approach for dealing with all types of cooperation at all levels of the system. We take the view that in cooperation with relevant partners, the United Nations needs to follow a differentiated approach in line with the characteristics of the partners, as well as with the fundamental purpose of making contributions to the implementation of the development goals and programmes of the Organization.

With this in mind, and with due regard for the provisions in paragraph 1 of General Assembly resolution 55/215, which stresses,

"the need for Member States further to discuss partnerships and consider, in appropriate intergovernmental consultations, ways and means to enhance cooperation between the United Nations and all relevant partners, inter alia, from the developing countries, to give them greater opportunities to contribute to the realization of the goals and programmes of the Organization",

the Group of 77 and China stands ready to contribute to collective intergovernmental endeavours towards evolving a common vision and realistic approaches to promoting partnership among all stakeholders.

Mr.Shen Guofang (China)

At the outset, I wish to thank the Secretary-General for his comprehensive and informative report under the item entitled "Towards global partnerships". The report has given us full and objective information on the cooperation between the United Nations and the relevant partners. We also appreciate the introduction to the report by the Secretariat. The Chinese delegation supports the statement by the representative of Iran on behalf of Group of 77 and China.

With the rapid development of globalization, the gap between the North and the South is widening, and the imbalance of economic development among countries is going from bad to worse. This is now an issue of great urgency facing the international community, and a solution needs to be found.

At the same time, we see that the private sector, especially the heavyweight transnational corporations, has at its disposal enormous amounts of financial resources and technology and is playing a considerable role in the globalizing economy. Therefore, to ensure that globalization becomes a positive force for all and to promote the balanced development of all economies in globalization, the relevant partners, in particular the private sector, need to make full use of their own advantages and make unique contributions to development in the developing countries. In this context, we support strengthening the cooperation between the United Nations and the relevant partners, in order to encourage the partners, in particular the private sector, to take part in activities aimed at realizing the development goals of the United Nations.

For the sake of effective cooperation between the United Nations and the relevant partners, including the private sector, and in order to give full play to the strengths of the partners to benefit the work of the United Nations, we believe that attention should be paid to the following in the process of establishing partnerships.

First, cooperation between the United Nations and the relevant partners should be carried out in accordance with the purposes and principles of the Charter of the United Nations, as well as the relevant United Nations rules and procedures, without undermining the intergovernmental nature of the Organization, especially the decision-making process. This constitutes the basis of the partnerships. As the Secretary-General rightly pointed out in his report,

"that cooperation must be managed in a manner that does not compromise the independence and neutrality of the United Nations or its character as an organization of Member States" (A/56/323, para. 5).

We fully agree with him on this point.

Secondly, partnerships between the United Nations and the relevant partners should be established in a manner that is helpful to the realization of the development goals of the United Nations. This constitutes the overriding priority of cooperation between the United Nations and relevant partners, in particular the private sector. We hope that the relevant partners can make full use of their own strengths and provide more substantive assistance to developing countries by mobilizing financial resources, transferring advanced technology, investing responsibly, sharing good management experience, reducing the prices of drugs for HIV/AIDS treatment and making donations, so as to make concrete contributions to the realization of the development goals of the United Nations.

The private sector has already carried out some activities in this regard. Some businesses have rendered valuable help in the form of donations to the work of the United Nations in the field of development. Non-governmental organizations have also played an active role in the implementation of United Nations development programmes. We express our appreciation for those efforts. But this is only the beginning. This is far from really satisfying needs in this regard. We hope that in the future more heavyweight and influential transnational corporations will join in efforts to realize the development goals of the United Nations and take concrete actions to help developing countries in the mobilization of financial resources and the promotion of economic growth. As the Secretary-General indicated in his report,

"The resources that they can contribute, however, in terms of expertise, funding and technology, should be a complement to governmental resources, not a substitute." (A/56/323, para. 119)

Thirdly, the forms of cooperation between the United Nations and the relevant partners need to be flexible and diversified, so as to adapt to different situations and achieve better results. The Secretary-General pointed out in his report,

"The diversity of relationships between the United Nations and non-State actors is such that it is not possible to adopt a 'one-size-fits-all' institutional approach for dealing with all types of cooperation, at all levels of the system." (A/56/323, para. 116)

We agree with this point. We believe that the United Nations should adopt different forms of cooperation with different partners, in accordance with their particular characteristics. The purpose of such cooperation should be to contribute to the implementation of the development goals of the United Nations.

Fourthly, apart from the above-mentioned aspects, we should be fully aware of the fact that the private sector has its own limits, which are rooted in its profit-driven nature. Therefore, the United Nations should have an appropriate assessment of the role of the relevant partners, including the private sector. The real manifestation of their importance, in any case, lies in the substantive help they can render us, not in empty slogans. We stand ready to work with all other delegations to explore specific ways and means in which the relevant partners, in particular the private sector, can make concrete contributions to the realization of the development goals of the United Nations.

Mr. Low (Singapore)

Last year the General Assembly adopted resolution 55/215 entitled "Towards global partnerships". Through this resolution, we recognized the potential contribution that non-State actors can make towards realizing the United Nations goals set out in the Millennium Declaration. There are at least two good reasons why this is a move in the right direction.

First, as mentioned in the Secretary-General's report, the influence of non-State actors has grown tremendously over the last 10 years. The United Nations Conference on Trade and Development estimates that there are now over 60,000 multinational corporations compared with 37,000 in 1990. These corporations drive the global expansion of investment flows. In fact, private sector flows far exceed intergovernmental financial flows. While foreign direct investment to developing countries increased from $44 billion in 1991 to $240 billion in 2000, official flows declined from $57 billion to $53 billion over the same period. The top 200 multinational companies have combined revenues totalling $7.1 trillion, which is larger than the combined economies of the 189 United Nations Member States.

The number of global non-governmental organizations and their networks has also risen from 23,600 in 1991 to 44,000 in 1999. Some of these have extensive global outreach, with thousands of direct members in different countries. Others have used the power of the Internet to mobilize individuals and organizations to support a particular cause and to influence Government and intergovernmental action.

Some non-State actors have agendas directly opposed to the goals of the United Nations; for example, industries that extract and exploit natural resources at the expense of developing countries. But there are also others that seek to be responsible corporate citizens and could share similar objectives. But whatever their shapes and sizes, the reality is this. We share the world stage today with many other influential non-State actors. We can choose to ignore them, but they will just go ahead on the same stage with their own different acts. But why do we not instead attempt to engage them and involve them in our own play? As the Secretary-General has said,

"The United Nations once dealt only with Governments. By now we know that peace and prosperity cannot be achieved without partnerships involving Governments, international organizations, the business community and civil society. In today's world, we depend on each other."

True indeed, better to have them work with us than against us.

Secondly, non-State actors offer a variety of competencies, constituencies, resources and networks that can be better tapped to tackle the complex challenges facing countries and the global community today. Partnerships with non-State actors and their constructive assimilation into the global architecture would allow countries, as well as the global community, to better reap the benefits of globalization and manage its costs.

Various studies have shown the extent to which globalization could benefit poor countries and the poor in these countries. A study by Jeffrey Frankel and David Romer demonstrates that a 10 per cent increase in the trade to gross domestic product ratio could raise per capita income by as much as 15 per cent. Combine this result with a more recent study by David Dollar and Aart Kraay of the World Bank and one would expect the greater trade openness to also generate a 15 per cent increase in the income of the poor. But all these "on paper" estimated benefits often come with qualifiers. They could only be realized in practice if coordinated actions are taken to promote trade and reforms in developing countries.

In Singapore, we face the same challenges of globalization as most other countries. Globalization has brought greater prosperity, but it has also posed new social challenges. What could divide our young nation are not just the traditional fault lines of race and religion, but new fault lines brought about because our people have varying abilities to adapt to the rapid pace of change. Structural unemployment, the widening income gap and the digital divide are but symptoms of these new fault lines.

Nonetheless, these challenges have not caused us to abandon our support for globalization. Instead, they have awakened us to the need for better measures to manage its costs. The Singapore Government has, through its policies and schemes, tried to help weaker Singaporeans cope. But while many of our poor may need assistance, they do not want to be forever dependent on assistance. What they want are decent-paying jobs that would allow them to make a living and bring up their families with dignity and pride. The Government cannot do this on its own. It needs to work with the private sector to attract new investments and create new jobs for our people. We also need to work with the people sector to offer training and opportunities to upgrade skills so as to equip our workers with the necessary set of skills to benefit from the new economy.

Globalization has created both winners and losers, within countries and among countries. The losers are those, be they countries or individuals, that lack the ability to adapt and to reap the benefits of the efficiency gains of an integrated global network. What they need, if they are to escape from poverty, are trade and investment and the ability to benefit from them -- in addition to debt relief and official development assistance. All these go together, because countries are much more likely to attract investment if they have labour for production and markets for their products.

Governments can lower trade barriers and provide more official aid, but private companies are needed to help bring investments and jobs to countries. Non-governmental organizations and civil society groups can help raise the skill levels in countries so that the people are well positioned to benefit from globalization. Through their networks and influence, they can also generate the momentum for markets to become really open to products from developing countries.

This is a specific illustration of how greater partnership between the three Ps -- the public, the private and the people -- not just at the national level, but at the global level, can help us better reap the benefits and manage the costs of globalization.

United Nations agencies are already cooperating with businesses and other non-State actors on a large scale, to mutual benefit. The United Nations Conference on Trade and Development and the International Chamber of Commerce, for instance, have teamed up to promote investment in least developed countries, especially in Africa. The United Nations, business and Governments are working together on practical investment guides which dispel the myth that there are no investment opportunities in these countries in Africa. Greater global partnerships would allow more benefits to be reaped.

While many would not argue with the rationale for greater global partnerships, debates often centre around the who and the how. Here, we have a few suggestions to make.

First, for global partnerships to be truly global and effective, they should involve more than just private corporations from the West. There are other global partners with valuable expertise, resources and networks to offer, and these include non-governmental organizations, media conglomerates, academic think tanks and corporations from the developing countries themselves.

Secondly, we should proceed to build global partnerships in a pragmatic and practical way. The marriage of global partners will never materialize if all parties carry unrealistic expectations and seek to realize through these partnerships their lifelong idealistic dreams. Global partnerships must be built on shared understandings and clear rules and principles. These would take time to develop and could evolve over time, but they are needed to harness the benefits of global partnerships and manage their risks and challenges. As much as the United Nations does not negate or attempt to be a substitute for the role of national Governments, global partnerships and the involvement of non-State players should not negate or attempt to be a substitute for Governments in their role as the key and central players in the inter-State process of the United Nations. The United Nations is still an Organization of States; other, non-State actors would play only a complementary role to provide inputs to the decision-making process and offer expertise, resources and networks for more effective implementation. Global partnerships are but a means to an end. They provide a collective approach to achieving the goals of the United Nations and remain paramount. They are definitely not, and should never be, an end unto themselves.

No one ever says marriage brings with it a bed of roses. No matter how compatible two partners are, there are bound to be some differences. These differences just have to be managed for one to enjoy the bliss of marriage. Similarly, I am confident that global partnerships will bring benefits to all parties involved if we are all ready to take the step with realistic expectations. Let us walk down the aisle together with our eyes wide open.

Mr. Sun Joun-yung (Republic of Korea)

At the outset, I would like to thank the Secretary-General for his report on cooperation between the United Nations and all relevant partners, particularly the private sector. I also appreciate Mr. Harri Holkeri's dedication, in his former capacity as President of the General Assembly, to promoting partnership between the United Nations and civil society.

Non-governmental actors have been interacting with the United Nations since its founding. However, the rapid process of globalization has transformed the world in many aspects. It is remarkable to note that the scale and impact of those interactions have dramatically increased over the past 10 years. This change is due largely to an increase in the number, diversity and influence of civil society and private sector organizations.

It is commendable that the United Nations has thus far succeeded in promoting interactions with these organizations and forging global partnerships that were hardly conceivable even a decade ago. I would also like to refer to the resolution adopted by world leaders at the Millennium Summit, which expresses a need to develop strong partnerships with private sector and civil society organizations in pursuit of development and poverty eradication.

I am confident that the success of the United Nations will depend upon how we can design partnerships with non-State actors and strengthen such partnerships in a mutually supportive manner. The section of the report of the Secretary-General elaborating on types of cooperation between the United Nations and the private sector is fairly informative and provides us with many points for further consideration. In this regard, I have a couple of comments and suggestions.

First, in the areas of policy dialogue and advocacy for the United Nations values and activities, the existing initiatives have been consolidated in various forms. However, I wish to draw the Assembly's attention to the accreditation process for non-State actors in United Nations conferences and preparatory events, which varies from event to event. For the benefit of all participants, this process needs to be streamlined and to become more transparent and predictable. In this regard, I hope that, for the benefit of our discussions in the future, the Secretariat will analyse the modalities of non-State actors' participation in the major United Nations conferences. Considering the diversity of private sector and civil society organizations, we need to develop a flexible but effective mechanism to promote partnership, while avoiding a one-size-fits-all approach.

Secondly, I wish to commend the remarkable developments in the areas of information sharing and learning partnerships, aimed at building and disseminating cross-sectoral knowledge on critical developmental issues. Attention should also be paid to the launching of the Information and Communication Technologies Task Force and the establishment of the High-Level Policy Network on Youth Employment. These initiatives are new experiments for the United Nations in drawing expertise and resources from both the public sector and non-State actors.

Thirdly, I attach great importance to the mobilization of private funds through philanthropic funds or investment capital. We need to explore ways to promote the great potential for partnerships, such as the United Nations Fund for International Partnerships and the United Nations Foundation. As for investment capital, the Initiative Deliverables endeavour has been recognized as a good option in this field. I also expect the Clean Development Mechanism under the Kyoto Protocol to be best utilized as a tool to invite private capital. Furthermore, I commend the Global Compact initiative of the Secretary-General, which calls on business leaders to embrace universally agreed principles in the fields of the environment, labour and human rights, and its follow-up initiatives, in close collaboration with the International Chamber of Commerce.

Against the backdrop of overall support for the role of the private sector and civil society, we have to address the legitimate concerns about potential dangers, such as conflict of interest, unfair advantage and governance risks, as indicated in the report of the Secretary-General. I do not believe that these risks are so enormous that the integrity of the United Nations can be threatened. However, we should pay attention with due diligence to potential areas of concern. In this regard, I commend the initiatives of the Secretariat to develop guidelines and modalities on partnerships, and hope that they will be further elaborated.

Another key challenge for the United Nations is how to ensure the adequate involvement of organizations from developing countries in partnership initiatives. I share the view that substantial support should be provided for non-State actors from developing countries in the fields of national and regional workshops, exchanges and public-private sector dialogues.

We can easily reach the conclusion that cooperation with non-State actors is essential to realizing the goals of the United Nations. However, I would like to stress that the growing cooperation with non-State actors should not supersede the primacy of Governments in national and international policy-making processes. Governments and international organizations should remain the principal bodies providing enabling environments to accommodate civil society organizations, including the private sector.

Last year the Republic of Korea joined the sponsors of resolution 55/215, entitled "Towards global partnerships", with the conviction that promoting partnerships with civil society organizations is a new frontier for the United Nations. We are committed to continuing to work towards enhanced interaction with new partners for the cause of this Organization.

Mr. Effah-Apenteng (Ghana)

My delegation associates itself with the statement made by Iran on behalf of the Group of 77 and China.

The report prepared by the Secretary-General on cooperation between the United Nations and all relevant partners, in particular the private sector, provides a comprehensive survey of the subject with a view to addressing concerns and expectations raised in previous discussions of this subject. The Secretary-General is to be commended for that and, more importantly, for the pioneering work he has done in opening up the possibilities for global partnerships through the Global Compact and other initiatives.

In this regard, it is worth pointing out that, while the Global Compact is a ground-breaking initiative, it is only part of a menu of global partnerships. Global partnerships go beyond the Global Compact initiative. The debate in the General Assembly should, therefore, embrace the rich variety of partnerships available as a result of a vastly changed and changing world environment. Indeed, the report gives an excellent overview of that environment and of the potential that it holds.

It is clear that, although global partnerships are not new, the ascendancy of free-market systems, the failure of the Washington Consensus and the evolution of globalization have all influenced the emergence of innovative and manifold networks, as well as a desire for a more coherent approach to global partnerships.

As the ability of State actors and Governments to influence development has been circumscribed by emerging sources of influence, the need has developed for lessons to be learned from the innovations and developments in global partnerships to exploit their potential and enhance their impact.

In that sense, the Global Compact indicates both the possibilities and the limitations of intergovernmental action. It is obvious that, had action awaited a decision of the General Assembly, there would be no Global Compact now. The Compact has, as a first step, offered a way to influence corporate behaviour voluntarily in the absence of agreed rules of conduct for multinational corporations.

What lessons have we learned that can take us forward? There is the need for a strategic approach to global partnerships in the context of the General Assembly. The Assembly's role should be to define the vision and values which should guide the partnerships. These would include the following issues: determining public interventions which enhance the development impact of private activity; building understanding on ways of making developmental issues attractive to the private sector; eradicating poverty through public-private partnerships to leverage private capital flows to countries normally by-passed by such flows; addressing volatility, debt crisis and burden-sharing; dealing with corruption; and implementing in an equitable manner trade-related intellectual property rights and those related to issues such as technology transfer.

Other areas for dialogue would include those in which action may take the form of self-regulation or the sharing of best experiences. These could include the identification of areas requiring self-regulation; the role of business as a corporate network in the advocacy of global values; social responsibility through corporate governance; capacity-building initiatives through business internships; and support for educational funds. The potential of the private sector as an advocate for increased official development assistance, other capital flows and market access, in the context of the Millennium Declaration, is also a major issue for dialogue.

Such a strategic approach would enable the General Assembly to guide the evolution of the Global Compact, the Global Alliance for Vaccines and Immunization (GAVI), the global HIV/AIDS and health fund, the Information and Communication Technologies (ICT) Task Force and other such initiatives.

While in the past, through its activities, the United Nations has been recognized as the global forum upholding the international community's values in humanitarianism and in sustainable development, its role in global partnerships should reinforce a vision of wealth creation, capable of bridging the gap between rich and poor countries and of stimulating support on the basis of enlarged markets and increased profit-making.

The General Assembly also needs to address ways of seeking effective partnerships with existing initiatives, such as the World Economic Forum, with a view to encouraging harmonization and adequate coverage worldwide and adding value through their respective comparative advantages.

The effectiveness of the United Nations in pursuing these objectives will depend on how successful the General Assembly is in using the lessons learned from other processes and in devising enabling mechanisms for partnerships, particularly with the private sector, which operates in a wholly different environment.

In this connection, there is a need for greater flexibility in the rules of the General Assembly to enhance greater access and participation by private-sector bodies. It is useful to contrast the General Assembly's current approach with that of the Global Compact and the World Economic Forum.

It would also be prudent to aim at a decentralized process in which a globally defined vision is intermediated at the regional and national levels. This would address the perennial problem of regional inputs in global discussions ending up diluted as a result of the give-and-take in negotiated outcomes.

It is clear that there cannot be effective global partnerships without the involvement of non-governmental organizations (NGOs). The current antagonism and stand-off between the private sector and the NGO community is therefore a major barrier to progress. The United Nations should provide leadership and a platform for building bridges between the private sector and the NGOs.

One sector of civil society whose involvement should be actively considered is business schools. Business education remains behind other disciplines in the area of integrating social values into professional mores.

In taking the next steps forward, the General Assembly will have to address a number of challenges relating to public-private partnerships in the context of its work.

Some of these challenges include the need to look at issues relating to conflicts of interest and to the protection of the integrity of the United Nations process. The Secretary-General's report discusses these issues in considerable detail. Despite the risks, however, the partnership offers a unique opportunity for the private sector to participate and become an agent of dialogue and change. The central role of the United Nations can only be enhanced as a result.

Devising the format for integrating global partnerships into the work of the United Nations will also constitute a major challenge for the General Assembly. The Assembly currently faces the danger of getting bogged down in the many items on its agenda.

In the case of global partnerships, there are inter-linkages with the Second Committee agenda item on globalization. The follow-up to the International Conference on Financing for Development is likely to address issues of global partnerships. The Executive Boards of United Nations funds and programmes should continue to deal with the operational aspects of partnerships. The discussions currently taking place in the United Nations on global public goods will become an issue of interest within that framework.

For all of these reasons, we support the proposal for the facilitation of a multistakeholder forum. We believe, however, that, given the experiences of the Preparatory Committee of the International Conference on Financing for Development in involving the private sector in its process, the planning and convening of a multi-stakeholder forum should be preceded by a serious exercise of reflection and debate on all these matters within the framework of an expert group. That consideration must take place within the context of the reforms of the General Assembly, if the outcome is to make an enduring contribution to the achievement of global goals.

If the private sector offers a variety of competencies, constituencies, resources and networks -- as indeed it does -- there can be no better place to engage them than in the home of all of the Members of the United Nations, the General Assembly.

Mr. De Loecker (Belgium)

I have the honour to speak on behalf of the European Union. The Central and Eastern European countries associated with the European Union -- Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia -- and the associated countries Cyprus, Malta and Turkey, as well as the European Free Trade Association countries members of the European Economic Area -- Iceland and Norway -- align themselves with this statement.

The European Union (EU) attaches particular importance to the current debate on global partnerships with civil society, in particular the private sector. It is clear that, without active participation on the part of all actors involved in the globalization process -- governmental and non-governmental -- it will not be possible to meet the 2015 target for the sustainable development goals set since the major conferences on the subject and, more recently, in the Millennium Declaration. The private sector has the technological, industrial and financial strength to influence this world. Indeed, sometimes its strength far surpasses the capabilities of States. As is stated in the Secretary-General's report, direct foreign investment in developing countries rose from $43 billion in 1991 to $240 billion in 2000. This shows clearly that public financing alone cannot meet the 2015 target.

Fortunately, the question of global partnerships is not confined to development financing. The European Union believes that in order to achieve the aims set out in the Charter of the United Nations, in particular "solving international problems of an economic, social, cultural, or humanitarian character" and "promoting and encouraging respect for human rights and for fundamental freedoms for all without distinction", it is essential to enhance cooperation not only between Member States but also between the Organization and the private sector, which is closely involved in all these issues.

The European Union would therefore argue for partnerships to be understood in the widest possible sense, not just in terms of mobilizing additional resources. Financing issues will take centre stage at the International Conference on Financing for Development, set for next year in Monterrey.

The European Union sees partnerships with the private sector as a way of exercising a leverage effect on international action by the public sector. The advantage most often quoted is the ability to mobilize, assemble and pool the expertise and the various capacities and resources that each sector has to offer. Some multinational corporations or large foundations have the power to make an enormous contribution in terms of resources. The European Union welcomes the fact that innovative forms of partnership, such as the Global Alliance for Vaccines and Immunization (GAVI), are becoming more and more important in United Nations operational activities. GAVI is an excellent example of a coalition of Governments; United Nations bodies; philanthropic foundations such as the Bill and Melinda Gates Foundation and the Rockefeller Foundation; the pharmaceuticals industry; technological institutes; and research centres.

Partnerships allow the United Nations to increase public awareness and to reach out to a larger audience, because corporations and chief executives will defend their values, objectives and activities. This is another advantage of partnerships. They can also help to test new methods for programme implementation, governance and the formulation of standards in the fields of human rights, environment and labour.

In this context, the Global Compact is an excellent example of successful cooperation between the United Nations and the private sector. In particular, it establishes that corporations bear a social responsibility based on the fundamental values of the United Nations.

The Global Compact offers the private sector the ability to take part in actual partnerships with the United Nations system, in particular to benefit developing countries.

It has been observed in some quarters that partnerships between the United Nations and the private sector must inevitably bring together actors with very different interests and motives, with different types of resources and expertise, and expecting different outcomes and benefits. These differences are not necessarily obstacles to reaching agreement on common objectives. The European Union is convinced that, despite everything, it is these differences which will enrich the process of seeking common solutions to problems.

The European Union can understand the concerns expressed in certain quarters about partnerships with the private sector and the risk that the pursuit of profit and the promotion of private individual advantage might take precedence over the public good. In this case, the Union considers that partnership must not compromise the United Nations independence or prevent it from defending the general interest and acting accordingly. But it is clear that the primary motivation of the private sector will remain that of profit. This is not incompatible with the universal values defended by the United Nations. By respecting universal values such as human rights, labour standards and environmental protection, the private sector can enhance its image, boosting its credibility in the eyes of its customers and thus, in the long term, its profits.

Another misunderstanding that should be redressed is the impression that the United Nations system is working only with Western multinational corporations and not paying enough attention to establishing partnerships with enterprises and trade associations from the developing countries. We should like the United Nations system to expand its partnerships to include more enterprises from the developing countries. The European Union will promote participation in partnerships by the private sector of developing countries, if necessary, through capacity-building projects.

Partnerships must correspond to joint commitments entered into by partners in a spirit of mutual respect and in the pursuit of common objectives. The European Union believes that when the United Nations draws up the detailed arrangements governing partnerships with the private sector, it should retain the full measure of flexibility necessitated by the mission of such partnerships.

At the substantive session of the Economic and Social Council in July 2001, the Member States urged the United Nations to continue to step up its efforts to ensure that the principles and ways and means governing partnership agreements were based on firm foundations, without imposing any rigidity. The flexibility and innovation required in cooperating with the business world and in carrying out the different mandates and activities of United Nations bodies might well suffer from an over-centralized, institutionalized approach. The European Union is convinced that it would be wrong to set too formal a framework and thus risk discouraging the most generous or innovative initiatives from the private sector. The United Nations system must be open-minded towards private-sector actors. For example, it is not desirable to make the accreditation process too strict. The procedure should remain flexible and open.

We hope to continue this fundamental debate with our partners on this agenda item of the fifty-sixth session of the General Assembly, in the hope of reaching useful conclusions without lingering too long over questions of principle or doctrine but trying, above all, to work out "good practice" which will lead to partnership strategies with the best chance of success. The European Union wants to introduce a draft resolution that will open to informal negotiation and to additional sponsors. It hopes to gain maximum support so that this draft resolution will achieve the broadest possible consensus within our gathering.

Mr. Navarette (Mexico)

At the outset, my delegation would like to express its appreciation to the Secretary-General for his excellent report on agenda item 39, "Towards global partnerships", which is now before us. The information and recommendations contained in this document will unquestionably facilitate our debate.

The Millennium Declaration reflects the commitment of the Heads of State and Government of our countries to establish solid forms of cooperation with the private sector and with the organizations of civil society to promote development, to eradicate poverty and to offer the private sector, non-governmental organizations and civil society in general more opportunities to contribute to the attainment of the Organization's goals and programmes.

My delegation would like to take this opportunity to confirm Mexico's commitment to these important objectives. These goals have guided my Government's work not only internationally but also increasingly in the domestic area within our borders.

The statistics that have already been referred to this morning show us quite convincingly how civil society and private enterprise have increased. In particular, we should point to the existence of millions of small enterprises and micro-enterprises, in both the regulated and the unregulated sectors of the economy. These enterprises play a critical role in the creation of employment and wealth at the local level. This quantitative increase in the agents of civil society and of the private sector has been accompanied, naturally enough, by a qualitative influence on actions being taken by the United Nations system and actions being developed at the global, national and local levels.

As the Secretary-General's report says, these actors have a variety of skills, represent interest groups, resources and networks that must not be disregarded. For this reason, my delegation believes that we must be imaginative enough to find and implement practical ways and means to guide these actions towards the achievement of the goals of the Millennium Declaration. The challenge now is to use the potential of the creative energies of civil society and of the private sector to promote sustainable development without compromising the independence, the equity, the universality and the multilateral nature of the United Nations system

The Mexican delegation believes that it is necessary that United Nations Member States continue to develop and perfect the principles and guidelines that will govern cooperation agreements with the private sector and with civil society, but we must not make cooperative machinery rigid. We must ensure that the principles of common purpose, transparency and the absence of favouritism be respected.

Furthermore, Mexico believes that special attention must also be paid to links with the private sector in such a way as to avoid the kinds of errors that might give credibility or legitimacy to enterprises whose practices contradict the basic principles and the Charter of the Organization or which give rise to conflicts of interest.

Furthermore, the dynamic and productive nature of the private sector obliges the United Nations to improve its working methods. As the report of the Secretary-General says, it is crucial to avoid duplication of effort in a number of areas and to rectify the lack of commonality and central coordination among organizations, which is an obstacle to effective interaction between the United Nations system and the private sector.

Here, my delegation supports the proposal just offered by the Permanent Representative of the Republic of Korea: that we simplify the process of accrediting non-governmental participants in United Nations conferences, including the preparatory processes. Such procedures must be simplified and made more transparent and more effective.

My delegation stresses that recognizing the need for cooperation with the private sector and civil society does not mean replacing the central functions and responsibilities of Government in the formulation of national and international policy. The delegation of Mexico also stresses that the private sector can make a multifaceted contribution to development; this must be used in an effective and constructive way. The greatest contribution that domestic and foreign enterprises can make to attaining the objectives of the Millennium Declaration is in the form of private investment and the adoption of agreed, transparent measures guaranteeing that such investment has positive economic, social and environmental effects. Similarly, the private sector can use its influence to support the existence and consolidation of free and independent information media, to combat bribery and corruption and to promote good governance at the institutional, national and international levels.

My delegations takes this opportunity to express high appreciation to civil-society and private-sector entities -- notably the International Chamber of Commerce, the World Economic Forum, the Business Council for the United Nations, the Social Investment Forum and the African Forum for Investment Promotion -- for their constant, determined, constructive participation in the preparatory process for the International Conference on Financing for Development, to be held in Monterrey, Mexico, in 2002. The participation of those entities in the Monterrey Conference preparatory process, alongside the Bretton Woods institutions, the World Trade Organization, the United Nations Conference on Trade and Development, the United Nations Development Programme and States Members of the United Nations, renews our hope that, in keeping with the Millennium Declaration, we are laying the indispensable groundwork for a more peaceful, prosperous and just world.

Mr. Bhattacharjee (India)

We have read with great interest the comprehensive and informative report of the Secretary-General entitled "Cooperation between the United Nations and all relevant partners, in particular the private sector" (A/56/323). There can be no doubt that the process of globalization, characterized by liberalization of trade and capital as well as by rapid strides in information and communication technologies, has resulted in enhancing the financial resources and technological capacities of the private sector. Some of its members have used their profits philanthropically by contributing to the United Nations, Governments, non-governmental organizations and charities, and even by spending directly on social development projects. There is growing awareness that the business community can contribute to the global objectives of development and poverty eradication. Combining the pursuit of profit-making with the principles of social responsibility might actually result in creating sustainable business opportunities in the long run.

The Secretary-General's concept of a voluntary Global Compact has aroused some interest in the corporate world. Companies from India too have joined in that initiative, reflecting their desire to make a better world by sharing responsibility and by contributing to national efforts in the fight against poverty, hunger, illiteracy and disease.

The idea of global partnerships with all relevant partners, including the private sector, generated considerable debate and discussion in the United Nations last year. The intergovernmental process has not yet accepted or endorsed the Secretary-General's Global Compact. That is not because the concept of partnership is new, or because partnership is considered irrelevant. After all, as is clear from the Secretary-General's report, the private sector has been interacting with the United Nations since the Organization's founding. The International Labour Organization is based on a tripartite partnership, and the Global Alliance for Vaccines and Immunization represents a successful partnership. More recently, the Global AIDS and Health Fund and the Information and Communication Technology Task Force have been set up by co-opting the private sector.

At the Millennium Summit, our leaders resolved to develop strong partnerships with the private sector and with civil-sector organizations in pursuit of development and poverty eradication. Partnership was clearly recognized as a significant and effective instrument for attaining development goals. The debate last year, in our view, reflected the desire of Member States to establish a viable partnership in which the terms of reference, the rules of engagement and the interrelationships are clearly defined. Private companies operate in the territories of nation-States and in accordance with their national laws. If Governments are not involved in discussions on the nature and scope of the global partnership there will, at best, be limited engagement with the United Nations. It is important that all partners be equally engaged. That is precisely the exercise that we are engaged in at the moment.

We acknowledge that global partnership is an interesting and useful initiative but, as it develops from the present experimental phase, we would recommend that a few points be kept in mind. First of all, the principle on which it is currently based is a partial and arbitrary selection from a comprehensive set of social and development compacts that Member States have carefully negotiated; it runs the risk of giving greater weight to one set of principles at the cost of others.

While it is not, therefore, universal in scope, the initiative also draws on some principles that are distilled from conventions or other legal instruments to which not all Member States are party; the fact that companies in the global partnership operate in those countries should not force their Governments to change their local laws or impose conditionalities for investment.

The purpose and objective of the partnership is not clear. What is the partnership between United Nations and the private sector to do? To commit one partner to follow, voluntarily, some of the principles of social behaviour set by the other can constitute only a limited partnership. In that case, the United Nations becomes the sleeping partner. The global partnership does not commit the private sector to the promotion of any economic and development goals, which in our view, must be the objective of the global partnership.

In the era of globalization and competition for foreign direct investment, there is a danger of a rush to the bottom. It would be good if the global partnership did not force Governments to lower their standards. We also need to guard against some private sector companies using the global partnership as an excuse for pulling out of countries which are no longer profitable by arguing that they are doing so because local conditions are incompatible with their other objectives under the global partnership.

In addition, we would like to seek the incorporation of the following principles in the global partnership. Cooperation between the United Nations and relevant partners, including the private sector, should be in accordance with the Charter and the principles of the United Nations, without compromising in any way the independence and neutrality of the United Nations.

The global partnership should aim at contributing to the achievement of development goals and the eradication of poverty. The private sector can do this through financial resources, transfers of technology, capacity-building and social spending, and by adopting responsible corporate policies. We would encourage such an approach by the private sector, at both the national and the international levels.

We seek enhanced dialogue and consultation with the private sector in the United Nations -- within agreed mechanisms -- with the intergovernmental machinery and with the United Nations system. Their involvement through financial contributions and in the implementation of projects would also be welcome. The engagement with the private sector should not, however, change or dilute the intergovernmental nature and decision-making process of the United Nations.

Even though involved with the global partnership, private corporations, while continuing their business operations, must abide by the law of the land and local rules and regulations. Involvement with partnerships cannot provide exemption from accountability to relevant national institutions.

The global partnership should have a balanced composition, with business companies of developing countries being adequately represented. We would also encourage a partnership between the private sectors of developed and developing countries that promotes the transfer of technology and the development of human capacity.

My delegation is ready to engage in a constructive dialogue. We believe that we are moving forward not only in the process of evolving a global partnership with the private sector, but also in enhancing a better understanding of good corporate practices and responsible corporate behaviour.

Mr. Ordzhonikidze (Russia)

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