Financing stability needs multilateral cooperation, says G-77 Chapters
Geneva, 27 Mar -- Strengthened regional and multilateral cooperation has a central role to play to maintain financial stability and prevent a negative impact on growth and development, the Group of 77 chapters declared in a reference to the socalled Asian crisis.
A communique adopted at the 24th meeting of the Chairmen/Coordinators of the G77 chapters held from 24 to 26 March, expressed the Groups deep concern over the crisis and its effects, alluding to it as the recent crises in the currencies of some members of the Group, and the adverse impacts on their economic stability, growth, trade and development prospects.
In the communique the G77 chapters expressed strong support for the final declaration issued by the Special Ministerial Meeting of the Group of 24, held in Caracas 7-9 February. That communique, among others, a wide-ranging review by a Task Force of industrial and developing countries of a range of issues relating to international monetary and financial institutions and systems and greater developing country involvement in decision-making.
The chapters also stressed that in the context of rapid globalization, it was essential to ensure coherence of global macro-economic policies, and formulate international trade, financial and development policies in such a way as to complement and reinforce each other.
Contradictory trends, such as lowering of existing market access barriers on the one hand and erection by developed countries of new barriers in the guise of environmental and social standards on the other, must be resolved, the communique said. Any linkage between trade and such standards is inacceptable. The issue of environmental and labour standards should be dealt with only by the competent bodies and should not be raised in international trade fora.
Earlier, the communique underlined that developing countries, confronted with enormous challenges as a result of the new trade and financial regimes and compulsion to restructure their economies, need to strive together to achieve common goals of equitable development, the Group of 77 has stressed in a communique.
A strong commitment to the objectives and principles of the Group of 77 are especially relevant in the context of the profound changes unleashed by the globalization process, the G77 said, adding:
We are of the view that increased global competition does not automatically bring about faster growth and development, nor does growth automatically reduce inequality. The liberalization of an economy is in itself not sufficient assurance that growth and development will follow. Such growth and development requires an enabling international environment which can promote growth with equity to the benefit of all...
The G77 chapters expressed grave concern that the commitments of developed countries at various UN Conferences and Summits were not being fully honoured, and cautioned against approaches seeking to implement the outcomes of summits selectively.
The focus cannot be only on governance aspects and social issues, thereby excluding the international communitys obligations in areas such as providing greater market access, easing debt burdens, and promoting financial flows and technology transfers.
Expressing concern over the chronic financial crisis confronting the UN due to failure of Members, particularly major contributors, to comply with their financial obligations, in full, on time and without conditions, the chapters fully supported the efforts of the Secretary-General of the UN to solve the financial situation.
While supporting also, the ongoing reform process of the UN, the G77 chapters insisted that the reform of the secretariat should be in accordance with the UN resolutions which:
* stressed that the restructuring should be with the objective of enhancing the effective implementation of the Charter,
Calling for strengthened South-South cooperation, the G77 chapters said while efforts to promote this are increasing, there is a need to consolidate the on-going efforts, further increase the resources and identify priorities for such cooperation.
In this regard, the chapters meeting welcomed the initiative of holding 1-3 June in Jakarta a high-level advisory meeting to prepare for the South Summit. Such a summit has been called for by the Group of 77 Ministerial meeting held in New York in September 1997.
The chapters also supported the high-level conference on sub-regional and regional economic integration (to be held in Bali, Indonesia 10-14 August 1998) and the 10th session of the Intergovernmental Followup and Coordination Committee on ECDC to be held in Africa in September 1998, the efforts of the G77 Chambers of Commerce and Industry of developing countries to promote South-South cooperation. Also endorsed was the Agreement for a Global System of Trade Preferences (GSTP) among developing countries and the ongoing Second Round of these negotiations.
The communique welcomed the results achieved so far by the Perez-Guerrero Trust fund (PGTF) for ECDC/TCDC, and supported the efforts to expand the PGTF core resources, including by eliciting contributions from potential donors.
The G-77 chapters also expressed concern over the weakening of the UNEP and HABITAT and the increasing dispersal of secretariats dealing with multilateral environmental agreements.
Finally, the chapters recognized the role of UNCTAD as the principal forum of the UN for the integrated treatment of development and related issues in the areas of trade, finance, technology, investment and sustainable development.
The next meeting of the Chairmen/Coordinators of the Group of 77 Chapter is scheduled to be held in New York in September 1998 at the beginning of the 53rd regular session of the General Assembly of the United Nations.