SPEECH/00/45
Speech by Mr Poul Nielson
European Commissioner for Development, Co-operation and Humanitarian Aid
Check against delivery
UNCTAD X
Bangkok, 18 February 2000
Mr. President,
Ministers,
Mr. Secretary-general of UNCTAD,
Distinguished Delegates,
Allow me to express my thanks for the efficiency and warm hospitality shown
by Thailand in the organisation of this Conference.
My intervention comes at a time when our common efforts to secure a
successful outcome for this Conference are at a critical juncture.
Throughout the week, delegations have been at work to elaborate a Bangkok
Plan of Action which will guide the work of UNCTAD for the coming years.
UNCTAD X has a special significance. It takes place less than three months
after the end of the Seattle WTO Ministerial and only a few days after the
final EU/ACP ministerial Conference. It is also the first of a series of UN
conferences which will take place in 2000/2001 and which will touch upon
fundamental development issues.
The Plan of Action will determine the extent to which UNCTAD will be able
to be at the heart of the discussion on key issues on the international
economic and development agenda. It will be essential that key challenges
that globalisation poses to the international community, such as
accountable governance, a favourable domestic environment for sustained
economic growth and the social and environmental dimension of trade and
development can be addressed, by and within UNCTAD, in a balanced way.
The need for such work within UNCTAD is also a reflection of the challenges
we are confronted with in an interconnected and complex world.
Globalisation is certainly nothing really new to mankind. What is new is
the speed of this process, directly linked with the improvement of
transport means and the development of new technologies of communication.
The world has become smaller as the time we need to move all goods and
thoughts has been dramatically reduced.
Globalisation has provided many good results. It has brought higher volume
of trade and investment and raising standards of living for a number of
countries and regions. However, it has also marginalised many people and
nations that are in a weak position to benefit from its fruits.
Facing this challenge is a common endeavour for the whole international
community. I would like to share with you the views of the European
Community on how we seek to address it.
The European Community has long promoted an integrated approach to
development. The marginalisation of many economies, the increase in poverty
in the world, the need to manage better the environmental
interdependencies, the destabilising effects of migration, the consequences
of armed conflicts and pandemics are major concerns for all. These multiple
dimensions show the need for an overall and coherent strategy, that is
based on two major objectives: the reduction of poverty in the world and
the integration of developing countries into the world economy.
Poverty reduction is at the core of EU's development co-operation policy,
as the recently concluded post-Lomé negotiations have emphasised once
again. However, to be truly effective, poverty-reduction strategies must be
fully owned by governments and civil societies. Furthermore, they should be
promoted as balanced partnerships including policy dialogue and
implementation efforts.
This includes our own efforts to improve the effectiveness and efficiency
of EC's aid. Our own taxpayers, and even more urgently those people living
under the poverty threshold, need to see results quickly.
Equally important for the eradication of poverty are our efforts to help
integrate developing countries into the world economy. Trade liberalisation
and an open rule-based multilateral trading system represent great
opportunities to developing countries. Our efforts therefore focus on
openness to developing countries' exports and encourage developing
countries to be more outward oriented.
Yet trade openness is not in itself sufficient to help development. Other
policy components, and particularly domestic policies that encourage
competition and emphasise education and health programs, are equally
important. For sustainable development, we need a framework conducive to
trade, investment and growth; respective of the environment and providing
for an equitable sharing of the benefits of growth. Trade not aid has often
been the slogan but it is a false escape from the duty of solidarity. The
true slogan should be trade and aid.
The process of liberalisation, in developed and developing countries alike,
must take account of the development needs and opportunities, capacities
and constraints. For the EC, the integration of developing countries in the
world economy therefore continues to be at the centre of our trade agenda.
In particular two elements deserve to be highlighted here.
1. Improved market access for developing countries, and in particular LDCs.
For LDCs, we suggested already in 1997 to grant duty-free and quota-free
market access for essentially all exports from LDCs. We are committed to
the implementation of these measures and continue to look at ways of
enhancing LDC market access. We have invited other developed countries to
do the same.
2. Improved export opportunities are not in themselves sufficient. Many
developing countries also need capacity building assistance to make use of
the trading opportunities. We have proposed a plan of action to revitalise
and focus technical assistance for trade related capacity building. The
objective is to ensure adequate, demand driven, well-targeted assistance,
based on co-operation among donors to ensure better synergy.
Harnessing globalisation also requires the courage to seek new avenues for
managing the global economy and addressing issues related to sustainable
development, including its social and environment dimensions.
Let me say a few words about the WTO and the need for a new trade Round.
The Seattle Ministerial demonstrated that all WTO members need to feel they
have a stake in the system. Negotiations cannot be confined to issues of
interest to a few countries. The fundamental reasons in favour of a broad
agenda for a Round remain valid.
It is for this reason that a new trade round must be designed around 4
basic themes. The first is further trade liberalisation. Improved market
access for developing countries is essential. We can go far in the context
of a broad based Round. Secondly, rules to respond to the effects of
globalisation. A predictable, transparent and non-discriminatory framework
is important. Basic rules on investment and competition are part of such an
agenda. We need strong rules to protect smaller and weaker members of the
WTO from bilateral pressures from stronger partners or from unilateral
discrimination. The further strengthening of the rules-based system is
therefore of particular benefit to developing countries.
Third, Seattle also highlighted the need to better integrate developing
countries into the trading system. Better market access, improved special
and differential treatment, better co-ordinated capacity building, and a
more active role within the WTO mechanisms are key points. And finally the
WTO must still answer questions of public concern. Concerns over the
potential influence of the trading system on the environment, sustainable
development, and consumer health and safety persist. We cannot hide from
these issues but need to find solutions that meet these concerns, while
preserving the fundamental principles of the WTO and preventing disguised
restrictions on trade.
The EC for these reasons will continue to argue in favour of an inclusive,
comprehensive trade round and we will seek its launch as soon as possible.
In the immediate term we have proposed a number of measures aimed at
restoring confidence and momentum in WTO after the setback of Seattle and
to address some pressing concerns of developing countries. In addition to
the decisions on coherence and on market access for the least developed
countries, this package includes getting the negotiations on agriculture
and services off to a good start, measures to help developing countries
implement Uruguay Round commitments, and measures to improve the
functioning of the WTO. We hope these actions taken together will create a
climate conducive to the launch of the Round in the next few months.
Mr. President,
In concluding, let me emphasise the great importance we continue to attach
to UNCTAD, both as a forum for debating responses to important development
challenges in the international debate and as a partner for technical
assistance and capacity building activities. To further build on current
achievements we need to secure a balanced outcome which enables UNCTAD to
continue work on key issues.
Marc Maes
Research and Policy Dpt
NCOS
NCOS
Vlasfabriekstraat 11
B-1060 Brussels
Belgium
Tel.: +32 2 536 11 36
Fax.: +32 2 536 19 02
E-mail: marc...@ncos.ngonet.be
__________________________________________________________________
Nationaal Centrum voor Ontwikkelingssamenwerking
National Centre for Development Cooperation
Centro Nacional de Coopéración al Desarrollo
Centre National de Coopération au Développement pour la Communauté Flamande
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