General Assembly Session 56 meeting 5

Mr. Manalo (Philippines)

At the outset, please accept my delegation's congratulations on your election, as well as the assurances of our fullest cooperation in ensuring the success of this high-level dialogue and of the fifty-sixth session of the General Assembly.

Allow me also, Mr. President, to take this opportunity on behalf of my government to extend to the city of New York and the people and Government of the United States of America our deepest condolences on the barbaric terrorist attacks of last week. We stand with the United States and the international community in condemning last week's outrage. We also wish to associate ourselves with the statement of Iran on behalf of the Group of 77 earlier this morning.

This dialogue takes place at a crucial time. As the mechanism for the follow-up to the Agenda for Development, we have the opportunity to assess how the agreed outcome has withstood the test of time, in particular how our objectives have fared in their implementation. As a result of the lessons learned, we can also look forward to applying our experience in order to work towards successful outcomes at the International Conference on Financing for Development and the World Summit for Sustainable Development. In this respect, our theme for this dialogue "Responding to globalization: facilitating the integration of developing countries into the world economy in the twenty-first century" also, indeed, encompasses the objectives of both the financing for development and the World Summit for Social Development (WSSD) processes.

During our meeting, we must keep foremost in our minds the idea that the objective of development is not only economic growth, but also concrete and sustainable improvements in the quality of the lives of the majority of humanity over time, in both absolute and relative terms. Our goal at this high-level dialogue and the task of this organization, insofar as development is concerned, is to provide the political impetus for the fulfilment of the developmental commitments, particularly those enshrined in the Millennium Declaration. My delegation also looks forward to this dialogue as being an input to both the financing for development and WSSD preparatory processes.

Towards this end, my delegation wishes to make the following points:

First, we must continue to foster a holistic and sustainable approach to development, taking into account individual peculiarities and circumstances. We must develop a new consensus model of development that takes into account the views, needs and priorities of all partners in development, particularly the recipient developing countries, who are, after all, the object of development. This new consensus model of development is what many hope will emerge as one of the major outcomes of the International Conference on Financing for Development.

Secondly, my delegation believes that it is each country's primary responsibility to pursue its unique development process. At the same time, we recognize that, in many cases, the indigenous capacity of developing countries to pursue development efforts, including competing in the global economy, may be insufficient because the international environment and community play a significant role in influencing the pace and direction of development, especially in this age of globalization.

The international community should, therefore, taking into account the diversity among nations and specific country circumstances, promote an international environment conducive to development and the integration of developing countries in the global economy. This effort should also be geared to maximizing the sustainability of development efforts, both with respect to maintaining long-term economic growth, as well as in managing the resulting impact on the environment and the social infrastructure. Achieving this would also contribute to ensuring and maintaining international peace and security. We should also avoid, as one development expert has noted, "overdetermining development" by setting forth an abundance of prescriptions that, in the final analysis, say that everything development brings is a necessary input to achieving it.

Thirdly, the participation of developing countries in international economic decision-making processes should be enhanced.

Finally, we must ensure that as we discuss the bridging of the digital divide, we do not neglect the importance of strengthening domestic economic fundamentals, which in most developing countries are linked to external economic developments and factors.

Mr. Mejdoub (Tunisia)

I would like to begin by warmly congratulating you on your election as President of the fifty-sixth session of the General Assembly. I am convinced that under your guidance the work of this second high-level dialogue on strengthening international economic cooperation for development through partnership will be a great success.

Allow me to reiterate Tunisia's condolences to the American people and Government following the terrorist attacks that occurred last week. My delegation also fully endorses the statement made this morning by the Chairman of the Group of 77. My delegation is pleased that this second high-level dialogue is being held and we are also pleased with the judicious selection of the items included on our agenda, which are at the core of the concerns of the international community. Coming in the wake of the Millennium Summit and on the eve of important events, such as the International Conference on Financing for Development and the World Summit on Sustainable Development, which will include a 10-year review of the implementation of the recommendations of the United Nations Conference on the Environment and Development and is scheduled to be held in South Africa in 2002, this dialogue takes on a particular importance. It will provide an excellent opportunity to discuss the strategy for the millennium, a strategy designed to create a climate that will be favourable to the development and integration of developing countries in the globalized economy, to eliminating poverty and cutting in half the percentage of people in the world whose income is less than one dollar a day by the year 2015, and to promoting access to the markets of the North of the products of the countries in the South -- an order which, in short, will establish a more just, more humane and more equitable world economy, where the benefits of globalization will be distributed equally and equitably.

The world has entered a new millennium and yet it has still not been able to solve the inexorable problems of poverty and underdevelopment. The realization of economic well-being for all is one of the primary objectives of the United Nations, and one that is far from being achieved. We note with bitterness the persistence of many signs of lack of respect for the dignity of man.

Also, in many countries, and especially in Africa, people continue to suffer from a number of scourges, such as epidemics, malnutrition, armed conflict and civil wars -- scourges which appeal to the human conscience and demand the establishment of a true partnership between or among all nations based on shared development and solidarity.

In the face of this situation, Tunisia's President has, since 1989, spoken here on the need to reflect on an international contract for peace and progress to build a better future for the international community. We are, in fact, convinced that progress in the area of a sustainable development will not be accomplished unless there is a partnership between the North and the South based on the principle of shared but differentiated responsibility.

It augurs well that the Millennium Summit declared solidarity a basic, fundamental value among the values that should govern international relations in the twenty-first century. Leaders of the entire world have also stressed the urgency of taking action to fight poverty. This is the framework for the proposal made by President Zine El Abidine Ben Ali to create a world solidarity fund to help eliminate poverty and promote social and human development in the poorest areas of the world. This proposed world solidarity fund is an instrument which will complement or add to the various existing mechanisms and should be financed by voluntary contributions and grants.

Tunisia has launched this initiative on the basis of a national experience which proved effective and which made it possible to reduce poverty, which is estimated today at around 6 per cent, through solidarity. We are pleased to see that the General Assembly has greeted this initiative favourably in its resolution 55/210, and we invite all Member States of the United Nations and international institutions to contribute to making this project a reality on the occasion of this fifty-sixth session so that we may further solidarity and peace in the world.

We cannot have development without development financing. Tunisia therefore attaches great importance to the International Conference on Financing for Development which is scheduled to take place in Monterrey, Mexico, 18 to 22 March 2002. We trust that this conference will provide an opportunity for discussing the various aspects of financing for development and that important decisions and conclusions will be adopted that will take into account the concerns of developing countries. Among these concerns are those relating to reversing decline in official development assistance, foreign debt, and capital fluctuations and the volatility in direct private investments. This conference should also make it possible to put in place a new international financial infrastructure that will provide for ways to prevent, manage and settle financial crises.

The Secretary-General, in his annual report, A/56/1, stressed that information and communications technologies are a good way of drawing the potential benefits from globalization. We note, however, that developing countries have not been able to profit fully from the fast-paced progress in these areas in recent years. The global nature of this new environment and the unequal pace of its development -- sometimes referred to as the digital divide -- make it essential that we set up an international dialogue and implement global approaches to facilitate adaptation to this new reality and to improve the involvement of developing countries in the global information network.

We are pleased that the Secretary-General is launching a United Nations study group on information and communications technologies as a result of the high-level debate in the Economic and Social Council in July 2001. The main task of this group will be to exploit the various possibilities provided by information and communications technologies.

We believe that efforts to close the digital divide will be intensified on the eve of worldwide summits which are to be organized by the United Nations system, in close cooperation with the International Communication Union (ITU), in Geneva in 2003 and in Tunis is 2005. The choice of Tunisia to host the second phase of this summit shows the desire of the international community to reduce the technology gap between the North and the South and to foster development, peace and justice -- which is the mission of the United Nations in all regions of the world.

Africa is assuredly a continent that deserves special attention on the part of the international community. The Millennium Summit clearly stressed this need and invited the United Nations system to play the role of a catalyst in mobilizing resources for the development of this continent and its integration into the global economy. African countries have made enormous sacrifices to undertake the structural reforms of their economies and to guarantee the success of their development plans on the basis of their own resources. However, political, economic and social challenges facing the continent are such that it has been impossible for it to ensure its own development without the cooperation of the international community, especially of the United Nations.

We would like, therefore, to reiterate our appeal for increased mobilization in favour of the development of Africa and for the establishment of a true international partnership. We stress the need to proceed with complete or partial cancellation of the African debt and converting it for financing development projects and projects to fight poverty and protect the environment. We believe that it is vital that the international community adopt specific measures to promote trade and commerce and to ensure that Africa will profit from advances in new technologies and in information and communications, as well as from the investment and capital flows.

We are convinced that our discussions in plenary as well as at roundtables and in informal working groups, with the participation of non-governmental players, will enable us to arrive at important decisions which will be on a level with the commitments made at the Millennium Summit and will meet the aspirations of our peoples for progress and for prosperity.

Mr. Motomura (Japan)

Please accept our warm congratulations, Sir, on your assumption of the presidency of the General Assembly.

On behalf of the people and Government of Japan, I extend my profound sympathy and condolences to those who suffered losses in the recent terrorist attacks, as well as to all the people and the Government of the United States of America. Japan deplores the heinous acts of terrorism that were perpetrated against the United States on 11 September. These acts must be considered not only as assaults against the United States, but as crimes against humanity.

Today I would like to comment on three issues that are related to the strengthening of international economic cooperation for development through partnership and the integration of developing countries into the world economy.

First of all, I would like to point out that the role of information and communication technologies (ICT) in helping the international community to cope with globalization is indispensable. ICT has the potential to increase productivity and to create and sustain economic growth and employment. In the light of this potential, it is important to ensure that everyone can benefit from ICT. In this regard, I recall that you, Sir, mentioned in your initial address as President of the General Assembly that

"the General Assembly can make useful contributions by calling global attention to the need for bridging the digital divide." (A/56/PV.1)

I fully support your view on this matter.

On this occasion, I would like to refer to the announcement made by the Government of Japan in July 2000 of the worldwide "Comprehensive Cooperation Package to Address the International Digital Divide", for which it will make available a total of $15 billion over five years. Since then, Japan has dispatched dialogue missions to countries such as the Philippines, Thailand, Cambodia, Indonesia, Singapore, Viet Nam, Malaysia, South Africa and Tunisia. Japan has also participated actively in the Digital Opportunity Task Force. The objective of these efforts is to eliminate the digital divide by ensuring that developing countries do not fall behind in their development efforts, and that everyone benefits from the potential of ICT. I would also like to take this opportunity to say that Japan looks forward to the success of the World Summit on the Information Society, to be organized by the International Telecommunication Union (ITU).

Mr. Baialinov (Kyrgyzstan), Vice-President, took the Chair.

The second issue I would like to comment on is that of financing, both public and private, for development. As we are all aware, official development assistance (ODA) plays an important role in the public financing of development. Japan has been the top donor of official development assistance for almost a decade, having provided a total ODA of more than $100 billion during that time. At present, however, the Government of Japan is reviewing its overall economic policies, including its ODA, under Prime Minister Koizumi's "structural reforms without sanctuaries" policy. The reason why Japan has provided approximately a quarter of the total ODA extended worldwide for almost the past decade, despite its severe economic and financial situation, is that it fully recognizes the importance of ODA in the economic development of developing countries. Under these circumstances, Japan is resolved to ensure that ODA projects are implemented in an efficient and effective manner.

With respect to our response to globalization, ODA has a number of important roles to play. One of them is the humanitarian role of a social safety net. It is important to assist those countries having trouble in weathering the storms of globalization on their own.

ODA can also prime the pump for attracting private funds through infrastructure building. Let me give some figures. In 2000, total ODA to developing countries throughout the world amounted to $50 billion, while foreign direct investment (FDI) in developing countries amounted to $240 billion. Thus, even this tremendous amount of ODA accounted for only 18 percent of total FDI. Accordingly, an important goal is to increase FDI in the developing world. ODA, which is less available than private funding, could support those measures taken by developing countries to attract foreign direct investment.

In connection with FDI, I would like to mention here the importance of coping with a chain reaction in which a financial crisis in one country could affect the international financial system as a whole, as we observed in the case of the Asian monetary crisis several years ago. In order to cope with that crisis, Japan adopted an approximately $30 billion financing scheme, called the "New Miyazawa Initiative," under which some Asian countries were able to avoid excessive dependence on short-term capital and build a long-standing and stable financing mechanism. Bilateral swap arrangements under the Chiang Mai Initiative have also been agreed upon to achieve the same objective.

Finally, and perhaps most importantly, I would like to stress the principle of "ownership and partnership", which Japan introduced at the Tokyo International Conferences on African Development. It is imperative for developing countries themselves to take appropriate measures to cope with the globalization process. At the same time, from the perspective of partnership, developed countries, United Nations agencies and international organizations, as well as other developing countries, are required to respond to the efforts made by the developing countries concerned. In particular, it is important to further deepen the dialogue with the private sector as a partner for development because private companies are leading the information technology revolution, and they are the sources of foreign direct investment.

While it is my sincere hope that today's gathering will provide the United Nations with new perspectives in the field of development, in March 2002 we will have an opportunity to discuss in greater depth the actions we should take in response to globalization, at the High-level Event on Financing for Development.

In concluding my remarks, let me express the hope that our actions today will lead to a greater understanding of the tasks that lie before each stakeholder and also lead to productive discussions in Mexico.

Mr. Sharma (India)

As this is the first time I have spoken in the plenary this session, let me express our outrage at, and condemnation of, the monstrous act of terrorism perpetrated recently on the host country, and express our sympathy and condolences to the bereaved, and deep regret over the immense material damage that has been caused. We are encouraged to see that the phenomenon of terrorism is being perceived as a challenge to the international community as a whole, which is to show the determination to eradicate it from all parts of the world. This objective of the global community is closely linked with socio-economic stability and advancement, a subject that concerns us today.

Talking at this juncture, we have to be mindful of the context of the protests against skewed globalization, which have become a feature since Seattle in 1999, and indeed a serial phenomenon, seen in Melbourne, Prague, Seoul, Nice, Barcelona, Washington, Quebec City, Gothenburg and Genoa.

It would be a mistake to dismiss that phenomenon as foolish protesters or as a travelling circus of professional rioters and anarchists. It is true that on such occasions such elements see an opportunity for unfortunate, irresponsible and provocative behaviour, which then tends to receive media attention. Hopefully, a remedy can be found for that. However, we should be more mindful of the mood of disquiet and concern at the direction of globalization that that phenomenon represents.

Take some of the figures that have been cited. Last year, campaigners for debt relief for the world's poorest countries gathered 24 million names, the largest petition in history. Just two years ago, 25 protesters turned up at the World Bank/International Monetary Fund (IMF) annual meeting in Washington. Last year, the figure was 30,000. At the end of this month, for the truncated World Bank/IMF meeting -- now cancelled -- activists were predicting the presence of more than 50,000. A survey this summer in Le Monde showed that 56 per cent of people in France thought that multinational corporations had been the beneficiaries of globalization; only 1 per cent thought that consumers and citizens had benefited.

There are many areas of concern, such as domination of the profit motive, the deterioration of the environment, the lopsided advantage to those well placed to exploit the forces of globalization, the neglect of what should be the predominant poverty agenda and the lifting of lives of the poor, the erosion of confidence in the democracy and priorities of international institutions, the political influence of money, the anxiety of job insecurity, the sense of growing inequality, the commercialization of public spaces, supra-national authorities overshadowing national and local Governments, and a sense of powerlessness. There are many other concerns that feed into that mood of anxiety. There is a sense that the global order has become dysfunctional and iniquitous. That sense is exacerbated by the knowledge that in a globalizing world -- with its resources of expanding trade, burgeoning investments, a foreign direct investment average of around $100 billion in the late 1980s and $900 billion a decade later, the movement of capital and the resources of science and technology -- it should be more possible than ever before to put together a positive programme of change so that globalization is seen as a tide that lifts all boats, and not a process dividing the world into winners and losers, advantaged and deprived, corporate benefit and individual loss.

We should make no mistake about the fact that globalization and global capitalism are battling today to win the argument. We in the United Nations have the responsibility of conducting creative, constructive and purposeful deliberations to rectify the perceived shortcomings and to consider how that argument can be won. The high-level dialogue on strengthening international cooperation for development is taking place at a time of renewed uncertainty about global economic prospects on account of the significant slowdown in major economies and the resultant decline in world output and trade. This dialogue was envisaged as a forum to discuss issues concerning the international economic environment, and thereby to promote convergence of perceptions and advance multilateral cooperation for development in a spirit of partnership based on mutual interests and shared benefits. We are confident that during this dialogue there will be stimulating and fruitful discussions on the theme "Responding to globalization: facilitating the integration of developing countries into the world economy in the twenty-first century", and on the two sub-themes.

The era of globalization and liberalization in which we live today promised to mankind unprecedented prosperity. It was hoped that the free flow of capital, goods and services would bring about sustained and equitable growth in all nations. This, however, has not happened. The benefits have accrued unevenly, resulting in a world where there is prosperity in a smaller part and poverty in the larger part, where disparities in income and wealth between nations and within nations are widening.

The figures attesting to that are common knowledge. Today, 66 countries are worse off than they were a decade ago. The Economist, in its issue of 16 June 2001, points out that there are more rich people than ever before, including some 7 million millionaires and over 400 billionaires, while at the same time, currently 2.8 billion people live on less $2 a day, and 1.2 billion on less than $1 a day. The average income in the richest 20 countries is in a different world from the average in the poorest 20. Clearly, we all need to work collectively to reverse this trend of increasing disparities and to ensure that globalization works for all -- all nations and all segments of society.

Globalization done right -- that is, supportive of the social and economic development objectives of developing countries -- is what we need to ensure. We have to make certain -- the choice is not between globalization and isolation -- by coming to a common understanding on the terms on which equitable globalization would progress. We must ask ourselves, if it is so self-evident that globalization is a beneficial process, why that is not being universally recognized. The anxieties relate to disparities, unequal returns and a sense of vulnerability. We believe that our responses could lie in accepting the obligation of making the process universally acceptable by ensuring that it is universally beneficial. We need to look at ways and means by which developing countries can beneficially integrate into the world economy.

A number of developing countries have experienced low growth rates in the past two decades. It used to be thought that poor performance was due to weakness in domestic policies. But that explanation is less convincing because policies have in fact converged over the last decade. A large number of developing countries experiencing poor growth have been engaged in structural adjustment programmes.

The domestic reform agenda is familiar to us. Despite this, performance has fallen short of what was hoped for. Part of the explanation may be inadequate implementation at the national level, which may need to be addressed. There are, however, external constraints that can be addressed only jointly with the world community. This makes international dialogue more imperative than ever; it should embrace a range of issues, from strengthening the financial architecture to creating an enabling international environment through concerted action on trade, debt, private capital flows, official development assistance and the application of science and technology, including information and communication technologies.

In the coming period, three key events will offer us the opportunity to address the concerns of the developing countries and to move towards an equitable and inclusive world economy: the Ministerial meeting of the World Trade Organization, to be held in Doha in November; the Financing for Development Conference, to be held in Monterrey next March and the World Summit on Sustainable Development, to be held in Johannesburg next September. At these meetings we must demonstrate the political will to achieve the goals of sustained economic growth and sustainable development for all. We believe that our approach to the issues that require attention should be as follows.

In trade issues, we need to address outstanding implementation issues, including the implementation of special and differential clauses in favour of the developing countries in various World Trade Organization agreements. Protectionist measures and continued barriers in areas of priority to developing countries, such as agriculture, textiles and clothing, should be dismantled. The World Bank has pointed out that in agriculture alone the trade benefit from the removal of subsidies is envisaged to be $350 billion per annum.

We also need to examine ways and means by which private capital flows and foreign direct investment, which are becoming increasingly important as vehicles of external financial support, can be used for increasing productive capacity and infrastructure development in developing countries. In the case of short-term capital flows, we should seek to establish appropriate mechanisms to contain the sudden capital flights that can cause a breakdown in domestic economies.

Since private capital flows cannot be considered as a substitute for official development assistance (ODA), the developed countries should, in a time-bound manner, reverse the long decline in ODA, which has fallen to 0.22 per cent of their GDP, and work up quickly to the internationally agreed target of 0.7 per cent. It is crucial to stress the centrality of the core social agenda, essential for healthy growth, as stated in the Millennium Summit Declaration.

There is a need to build on the Heavily Indebted Poor Countries Initiative, and push for wider, deeper and faster debt relief measures that would free resources from repayment cycles for use in national poverty eradication and development programmes. This relief should be linked to market access measures to ensure sustainability.

Decision-making structures through which governance is exercised internationally must be made broader and equitable by accommodating greater participation by, and a real voice for, developing countries. The international financial structure needs strengthening, as does the multilateral trade regime. Greater consistency and coherence must be achieved among macroeconomics, trade, aid and financial policies to ensure support for our common aim of expanding the benefits of globalization.

We need to find new and innovative resources for development priorities to supplement the traditional funds so as to achieve the international development goals within the agreed time frame. In this context, we note the renewed interest in the Tobin tax.

The international community must regenerate commitment at the highest political level for the implementation of Agenda 21 by identifying constraints and reaffirming its commitment to make available to the developing countries new and additional financial resources and to transfer to them environmentally sound technologies.

Globalization has been driven by new information and communication technologies. While ICT can play an important role in promoting development, there are constraints to accessing knowledge, particularly by citizens and institutions of developing countries. We believe that the ICT Task Force can play an invaluable role in bridging the digital divide, fostering digital opportunity and firmly putting ICT at the service of development for all. We must, however, guard against criminal networks; taking advantage of the most advanced technologies.

In conclusion, we would like to emphasize that the United Nations, with its universal membership and ability to undertake a holistic treatment, is uniquely placed to play an important role in the debate on globalization. We have had a most creative and constructive interaction with the Fund and the Bank. We further believe that we are at a moment in international economic discourse when significant shared ground has already been created. We are not talking past each other, but to and with each other. We need to build on this so that, with collective political resolve, we can consign poverty and hunger to the past and look forward to an equitable future for all humanity.

Mr. Effah-Apenteng (Ghana)

May I first take this opportunity to express the profound sympathy and condolences of the Government and people of Ghana to the Government and people of the United States over the death and damage caused by the terrorist acts. We are acutely aware that such actions are not only attacks on our values as a civilized community but are also actions whose economic ramifications affect all countries, especially in this era of globalization.

My delegation considers this session of the high-level dialogue, which is being held in a period of a global economic slowdown, as timely, since it provides an opportunity to draw the necessary lessons from it and define a bolder vision to match the possibilities of globalization.

The recurrence of financial crises and economic slowdown in the midst of the market expansion driving globalization, and the persisting levels of poverty in the face of the unlimited potential of globalization to expand the wealth of nations, are an indication of our failure as a world community to harness the opportunities of globalization to their fullest.

Many people around the world today who should be part of the global markets are simply existing on its margins because they live on less than $2 a day. Many who should contribute value to those markets are either excluded from the value chain because they do not have the requisite skills or are at the periphery of productive activity which now requires new skills. Opportunities for educating a skilled labour force through knowledge networks and for raising the quality of life through technology-supported advances in education, health, nutrition, crop yields and entrepreneurial activity are being squandered, as the statistics continue to show. As a result, globalization, which is a process of integration of economies, culture, technology and governance, threatens to deepen the fissures of societies by increasing income gaps within and among nations.

Addressing the challenges of globalization would require measures that create opportunity for all countries and all people to participate in its processes, including the empowerment fostered by its easily accessed knowledge networks. Developing countries have a particular responsibility in this regard to build on their economic reform efforts of past decades to ensure a sound, stable macroeconomic environment capable of stimulating greater savings, preventing capital flight and attracting private sector investments, both local and foreign.

Equally, we must promote conditions of governance based on institutions and laws to enable our citizens to thrive on their creative abilities and to reap the benefits of stability and law and order. The effective development of our human resources, particularly through the design of forward-looking curricula to ride the crest of innovation, must take first priority in our development efforts. These efforts must take advantage of the work of the Information and Communication Technology Task Force.

Political and economic processes which promote market expansion at the regional level and stability are also crucial in this respect. In this connection, the intensified efforts to achieve integration, particularly in Africa, need to be pursued and supported to ensure their realization in the shortest possible time. The New African Initiative, which was adopted by African leaders in Lusaka, Zambia, in July, asserts that the advantages of effectively managed integration present the best prospects for future economic prosperity and poverty reduction. The New African Initiative, which is anchored in the fundamental principles of African ownership, leadership and accountability, also recognizes the importance of enhanced partnerships at the international level to enable Africa to achieve the objectives which it has set for itself.

To accept the primary responsibility for our own economic development does not therefore mean that developing countries on their own can achieve beneficial integration into the global economy. Decisions, actions and inaction of the so-called systemically significant economies, especially the developed countries, affect in a significant manner the ability of many developing countries to participate effectively in the global economy. Indeed, it is well understood that the most effective engagement with globalization must be global in scope. It was in this light that world leaders in their Millennium Declaration, only a year ago, called for policies and measures which correspond to the needs of developing countries and economies in transition.

The mix of policies necessary to sustain a supportive external economic environment conducive to accelerated development in developing countries remains essentially the same as those contained in the Declaration on International Economic Cooperation. Not surprisingly, the thrust of the Millennium Summit was the recognition of the failure to achieve the objectives which are contained in the Declaration and the International Development Strategy for the last decade and a determination to reverse past performance.

An essential component of any new strategy to integrate developing countries into the global economy must include the strengthening of the international monetary and financial system through greater transparency on the part of all participants -- private, public and multilateral -- in the world economy; increased participation in decision-making in both formal and informal processes by developing countries, including through regional mechanisms; and multilateral surveillance to cover all economies, including the major economies.

The international financial organizations will need to go beyond promoting macroeconomic discipline and liberalization to support institution-building in such areas as markets, law enforcement and public governance to enable institutional convergence between developed and developing countries. The international financial institutions, as well as the United Nations, should, in the context of the development of markets, provide support for local private-sector activity through the establishment of much-needed long-term funds.

Together with the resources that could be leveraged through innovative public-private partnerships involving the International Finance Corporation and the multilateral and bilateral guarantee and insurance agencies, these resources would represent a considerable proportion of the investment needs of the developing countries bypassed by present capital flows. Whether this will be done depends on the political will of the richest nations. It is clear, though, that unless they act, the supportive actions of the international community will continue to be too little, too late. That has been the case with respect to the current measures on debt relief and international trade, two of the areas critical to any efforts towards integration of developing countries into the global economy.

We believe that debt relief policies, within the context of the Poverty Reduction Strategy Papers, should reflect recognition of the need for those countries to achieve growth rates of 7-8 per cent per annum. The narrow definition of indices and the long drawn-out process of improving the Heavily Indebted Poor Countries Debt Initiative end up being a self-defeating exercise.

It is clear that, if debt relief is to have an enduring impact, the developed countries will need to take decisive steps to address the concerns of developing countries over the implementation of the Uruguay Round undertakings, particularly the Agreement on Textiles and Clothing, the Agreement on Agriculture, the provisions concerning special and differential treatment, the provisions on technical and other assistance by developed countries, as well as those issues relating to the built-in agenda. The World Trade Organization needs to be transformed to reflect the development dimension of trade and to ensure coherence in global policies in trade, finance and development.

The need to treat core policy areas as a package is not limited to external debt and international trade. It extends to systemic issues and foreign capital flows, including official development assistance. Official development assistance can be made to play a more pivotal role, either in the development of infrastructure, long-term funding for the private sector or enhancing the role of the United Nations towards the achievement of the international development goals. This can be done if official development assistance is made to respond to national programmes instead of to the project approach. Taking into account the role of the United Nations in the implementation of the development goals, it is time also to consider assessing contributions to United Nations operational activity.

In a few weeks, the Preparatory Committee for the International Conference on Financing for Development will meet to begin work on the outcome document. The objective of that Conference holds the key to the successful integration of developing countries into the global economy. An outcome that results in partnerships to create the conditions for the mobilization of resources for the sustained growth and sustainable development of developing countries would make globalization a positive force for all.

We must use this forum as an opportunity to send that signal to those who would negotiate the outcome document. We must expect nothing less than a global consensus which reflects both the imperative of increasing the wealth of all nations and recognition of the need for global solidarity in a global village.

Mr. Fonseca (Brazil)

Like previous speakers, I would like to begin by reiterating our expression of sympathy to the people and Government of the United States in view of last week's terrorist attacks. The news of the attacks has caused commotion and outrage in Brazil. We are deeply saddened by the tragic loss of life and by the suffering of thousands of innocent victims and their families. Brazil condemns in the strongest terms all forms of terrorism. We will continue to support the joint cooperative efforts of the international community, including here in the General Assembly, to eradicate these intolerable practices, which are utterly inconsistent with the building of an international order based on the principles of justice.

The concept of globalization can be interpreted in many ways. Its consequences have been different for different groups and nations. There are those who believe that globalization is bringing about a period of unprecedented economic growth, allowing more countries to benefit from financial flows and the transfer of knowledge and technology. At the other extreme of the debate, it is argued that the process unleashed by globalization has been leading us to economic crises, increased social disparities, high levels of unemployment and the prevalence of market competition over social goals. Another fundamental question concerns the degree of freedom of States in the face of this new challenge and the reason why some countries are more able to adjust to this process than others.

Nobody disputes that many countries face a dramatic situation today. One third of the world's population lives on less than $2 a day, and globalization has not been able to meet the needs of developing countries. Therefore, there is an urgent need to promote and strengthen international cooperation.

How should we deal with this enormous challenge? I believe the theme of this dialogue points in the right direction, that is, towards facilitating the integration of developing countries into the global economy in the twenty-first century. Actually, what we need is not less, but more globalization -- a genuine, more inclusive and more equitable globalization. The way out is not to stop the process, but to bring in more countries and more people. Our common efforts should be geared to offering opportunities for those who are on the fringe of globalization and do not have the conditions to benefit from it.

As Brazil stated during the preparations for the International Conference on Financing for Development, the key word in this process must be integration. This long anticipated conference represents one of our most important efforts to address fundamental aspects of globalization. We hope that it will address the complexities derived from the variety of actors involved in this process and bring together all stakeholders. I mean developed and developing countries, multilateral institutions, the private sector and civil society. We hope that the Conference will allow for the evaluation of all matters essential to development, such as trade, systemic issues, capital movements and debt. We also hope that it will contribute to the implementation of all development goals set forth in the major conferences of the 1990s and the Millennium Declaration.

Let me now give some examples to explain the kind of globalization of which we are most in need. I will concentrate on three areas: trade, the international financial system and information and communication technologies (ICTs).

As far as trade is concerned, we need to move from the rhetoric to the practice of liberalization. Export sectors of interest to developing countries are still far from being subject to the same rules that apply to other sectors. Regrettably, protectionism persists. A number of tariff and non-tariff barriers severely hinder the exports of developing countries, among them tariff peaks and tariff escalation, quotas and the abusive utilization of antidumping measures. These policies have been used against agricultural goods, steel products and textiles, to mention just a few export items. Even worse, subsidies to the agricultural sector in developed countries amount to more than $1 billion a day.

Over the last decade, Brazil has opened up its market but has not met reciprocity. If free trade is a characteristic of globalization, then indeed there must be more globalization, which, in this case, means a fair world trading system that provides developing countries with better opportunities. Secretary-General Kofi Annan stated last July at the Economic and Social Council high-level event that the international community should restore the momentum of open markets by launching a new round of trade negotiations, which must be a true development round, in the sense that it would give genuine priority to the concerns and interests of developing countries.

Another important area is that of the international financial system. The financial crises of the mid- and late 1990s increased awareness regarding the adoption of sound macroeconomic policies. Brazil has implemented these policies, which, among other positive results, have contributed to economic stability and the present flow of foreign direct investment to my country.

Nevertheless, for these domestic policies to succeed, they must go hand in hand with an international enabling environment. Unfortunately, the risks of instability continue to hover over the international financial system. Since all countries may be affected, all of them should have a say in the international decision-making process. However, there is nowadays a participation deficit. Globalization consists not only in the emergence of certain new trends, but also in the need to establish appropriate frameworks for them, so that we can avoid a lack of governance and make it possible for everybody to benefit. Again, what we need is more globalization, but one that involves consistent and participatory governance of the international financial system.

Finally, let me make a few comments on ICT. Much has been said about its leapfrog effect on development. As this year's Human Development Report shows, technology is, as never before, a fundamental tool for development and economic growth. ICTs allow for significant progress in areas such as education, health, culture, trade, agriculture, industry, tourism, job creation and even government transparency.

In these areas, Brazil has carried out many initiatives, at both the domestic and the international levels. The Brazilian Government has implemented an Information Society Programme, which aims at expansion of economic activities based on intensive use of ICT and the increase in the number of Internet users in the country.

Brazil has also taken part in international fora, such as the United Nations Task Force, and followed closely the developments in the DOT Force. Last June, in Rio de Janeiro, Brazil organized a meeting on ICT for development in order to discuss this issue with other developing countries members of Economic and Social Council and following the activities of the DOT Force. The declaration that emanated from that meeting emphasized the importance that developing countries effectively participate in international decision-making processes concerning information and communication technologies taking into account their economic, political, environmental, cultural and social impact.

As a matter of fact, information and communication technologies are a central feature in the globalization process. It has been said that, with the advent of ICT, many decisions can be made at the push of a button. More people should be given an opportunity to press the button of globalization. In this case, globalization means providing developing countries with more access to knowledge and technology.

One of the commonplaces used with reference to globalization is that there is nobody in charge. However, the conclusion to be drawn from the three examples that I gave is that there are institutions dealing with globalization. What we need is more integration and more participation of developing countries, both in the formulation and in the implementation of international policies.

Globalization is a reality, not an ideology. It does not create by itself foundations for hope for a better future for the poor. Hope now has to be recreated by deeds. Achieving concrete progress on concrete issues is the only way to restore hope -- a fundamental ingredient in our still divided society, which is still divided in unacceptable ways. Effective and clear signs that globalization could be the foundation for more equitable development are urgently needed.

Mr. Hasmy (Malaysia)

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