Journal of the Group of 77
Volume 18/2 - 2005 (Special Edition)


DOHA, June--(G77/IPS) Speaking on behalf of the Group of 77 and China, Jamaican Prime Minister Percival Patterson told delegates that developing nations have ''enjoyed some successes''in South-South cooperation since the first South Summit in Havana five years ago.

In his opening address to the Second South Summit in Doha, Patterson said there has been strengthening of regional economic groupings and cooperation arrangements, not only within regions, but across continents.

He said that trade among developing countries has increased from 40% to 50%. South-South bilateral projects in areas such as health, education, energy and construction are beginning to make a positive difference.

''We have to admit, however, that our level of cooperation has been much less than we expected in the Havana Programme of Action,'' he pointed out.

He singled out two major reasons for the limited success:- ''We lack the capacity or have simply failed to provide the financial resources to deliver on our objectives We did not provide the institutional mechanisms required at either the technical or political level to ensure or facilitate effective follow through''.

Additionally, the G77 chairman said, the global challenges confronting developing countries have expanded significantly in scope, ''thereby straining our resources and undermining our capacity to achieve our stated objectives''.

Unprecedented wealth is being created, but too many countries and too many people have been denied any share of it. They are also demanding a greater voice in the decision-making processes, he added.

The prime minster said that a review of the Millennium Development Goals (MDGs) has clearly established that ''we are not on target and a dramatic effort will be needed if our expectations are to be met''.

Overseas Development Assistance is now still less than 1/3 of the target of 0.7%. Since 1998, developing countries have become net transferors of capital flow to developed countries, with this estimated at $12 billion in 2004.

Direct Foreign Investment is still concentrated in few countries. The rules governing intellectual property continue to make access to technology, even for medicines to deal with the most critical pandemics, expensive and at times prohibitive.

He also said that developing countries remain marginalized, especially in respect of global economic governance. ''Our Group needs to intensify the struggle and meaningfully engage our partners in a renewed impetus for delivery''.

Much is said these days about good governance and it seems to have different meanings. For some, it means the adoption of one political template and a single economic model. As there is no one antidote for every malady, so there is no magic prescription that can be applied to every situation.

''We all readily subscribe to government which is transparent, accountable and ensures integrity. We are all committed to devising policies and economic programmes which achieve social development goals and promote sustainable growth for our people''.

''To realize this, we welcome a partnership with the donor community, but not with unacceptable restrictions or conditions. Developing countries must have the policy space to pursue development options appropriate to their own specific circumstances. Development co-operation must be based on respect for diversity and the proper exercise of sovereign choices'' he said.

He called for strengthening co-operation within the Group of 77.

''We have not adequately exploited the potential for cooperation. South South Cooperation should not be an empty slogan. Instead of more meetings, we need to establish contacts and identify avenues for greater cooperation. We also need to develop mechanisms for promotion and implementation of projects''.

These things do not happen by chance. It requires a renewed determination and greater activism to follow through viable programmes and prospects, including negotiating forms of triangulation. This should involve the business sector more actively especially as we seek to revive the operations of the G-77 Chamber of Commerce & Industry.

This is all the more important in the light of the new economic geography which is emerging, the G77 chairman said. There are new and important growth centers in the developing world providing stimulus as locomotives of development through demand and supply. We should confront collectively the negative conditions and tendencies in the global system.

There should be more equity and balance in the flow of resources whether it is through increased Overseas Development Assistance, through Foreign Direct Investment flows or through the benefits from trade.

He also said the G77 supports the initiative of the President of Brazil, to mobilize innovative sources of finance to address the issue of hunger and poverty.

''We welcome the commitment of the G8 Ministers of Finance to cancel $40 billion debt owed by 18 of the world's poorest countries and the promise of further relief to 20 additional countries. We also welcome the initiative of the British Prime Minister to create an International Finance Facility to front load official development assistance to facilitate achievement of the MDGs''.

This recent initiative towards debt relief, while timely and commendable, needs to be expanded. ''We also contend that the urgent requirements of other developing countries should not be forgotten, in particular, Small Island Developing States, because of their fragile economies and vulnerabilities to natural disasters''.

But there is more to be done beyond the pledging of new resources. There is need to deal with systemic issues which operate to the detriment of developing countries. In the trade regime, the financial and monetary system and the rules of access to technology there still remain severe inequities which restrict our development prospects.

''Unless the rules change, we will not be able to break free from the bondage of underdevelopment''.

The Development Round on trade which was launched in Doha held the promise of a focused development orientation. The negotiations have stalled. To maintain the momentum and credibility, meaningful progress must be made in the negotiations when the WTO Ministers meet in Hong Kong in December this year.

Nothing less will suffice than results which fulfill our expectations for reform in the trade regime to support development efforts.

He also called for improved market access for developing countries including, the reduction of agricultural subsidies in developed countries and trade arrangements based on special and differential treatment, are essential measures to promote economic growth and structural transformation in developing countries and fairer rules for access to technology should be the outcome.

Trade liberalization must be linked to development financing for trade capacity building, debt relief and increased investment flows, the chairman said.

The case for a new global financial architecture is compelling and irrefutable. ''We must manage in a more equitable and efficient way the operations of the international financial and monetary system''. This is important for stability, efficiency and the prevention of crisis.

''Let the word go forth from Doha that the demands of developing countries for an audible voice and full participation in international economic governance can no longer be resisted and ignored'', the chairman said.


DOHA, June (G77/IPS) - As regional economic alliances continue to proliferate -- from the Association of Southeast Asian Nations (ASEAN) and the Arab Maghreb Union to the Latin American Economic System and the Economic Community of West African States -- the South Summit in Doha called for an increase in South-South cooperation among developing nations of the Group of 77.

"We must make South-South cooperation the real instrument for our development while recognising that it cannot be a substitute for North-South relations," Ambassador Nassir Abdulaziz Al-Nasser, Permanent Representative of Qatar to the United Nations, told reporters at a press conference in Doha.

He said the government of Qatar -- which hosted the summit and which also sponsored a Forum on Trade and Investment in 2004-strongly believes in the importance of South-South cooperation at a time of discriminatory trade barriers, rising debts, falling commodity prices and declining development assistance.

"We must strengthen the unity and solidarity of developing countries as a necessary prerequisite for enhancing the ability of the South to negotiate in international multilateral fora," he added.

Qatar's Minister of Economy and Commerce Sheikh Mohamed bin Ahmad bin Jassim Al-Thani said exports from Argentina and Brazil to China have doubled, and the Chinese market has for the first time become the largest market for neighbouring Asian countries.

In 2003, he said, almost half of all imports by the United States and Japan, and more than a third of all imports by the European Union (EU), came from the South. The same is true of their exports to markets in the South.

The United Nations has set up a Special Unit for South-South Cooperation within the U.N. Development Programme (UNDP) as a focal point to help promote cooperation among developing nations.

In a report released last December, the director of the Special Unit Yiping Zhou said the importance of South-South cooperation "cannot be overemphasised in a period of rapid globalisation."

"The affluence of the (industrial) North is built on strong and inter-active webs of cooperation, and it is imperative that the global South follow suit if the gross imbalance between developed and developing countries is to be remedied," he said.

The concept of South-South cooperation received its first major boost at a conference on technical cooperation among developing countries in Buenos Aires, Argentina, in 1978.

Since then, says a new U.N. report on South-South cooperation, developing countries have been "driving world trade and growth" to new heights. The study singles out five countries -- Brazil, China, Cuba, India and Qatar -- as continuing to be more active than others as prominent advocates of South-South cooperation.

Brazil has been described as a leader with Africa and Asia, as well as within Latin America. "It has one of the most vital programmes for supporting other developing countries in the areas of public administration, health, education, agriculture, environment, energy and small enterprises," the study says.

China, a significant market for developing-country exports of commodities, has signed a wide range of trade and development agreements -- especially in the energy sector.

India too is emerging as a global market force, especially in the information technology industry, according to the U.N. study. Both countries now have "strong programmes" that provide training for nationals of other developing countries and support for building institutional capacity, and both are known to commit substantial funding for such projects.

Perhaps the best track record, according to the report, is in Southeast Asia where regional cooperation has been driven by a combination of treaty-based action by governments and market-oriented actions by the private sector.

Beginning 2005, Asian foreign exchange reserves amounted to some 2.4 trillion dollars, of which 1.6 trillion dollars were accounted for by developing countries in the region, including China and India.

In October 2003, the 10-member ASEAN signed "a watershed agreement" to establish an economic community by 2020. China and India became the first countries outside ASEAN -- which consists of Brunei, Malaysia, Thailand, the Philippines, Singapore, Indonesia, Laos, Vietnam, Cambodia and Burma -- to accede to the group's founding Treaty of Amity and Cooperation in Southeast Asia, which renounces the use of force.

The Asian countries have also jointly signed an agreement for a pan-Asian highway, with roads into 32 countries already linked to the project.

"When completed, the system will ease the problems of landlocked central Asia and facilitate travel to capital cities, major harbours, tourist attractions, and industrial and commercial centres," the report says.

Additionally, Bangladesh, Bhutan, India, Burma, Nepal, Sri Lanka and Thailand have agreed to create a free trade zone by 2017. And India has agreed to conduct a feasibility study for a deep-sea port in Burma to serve as a transportation hub between south and southeast Asia.

Still, the U.N. study concedes that "there are serious problems facing many developing countries, especially in Africa and those that are least developed, landlocked or small islands."

However, much of the current planning for increased South-South cooperation in Africa is conducted under the auspices of the 53-member African Union (AU) and the New Partnership for Africa's Development (NEPAD).

"African roads, railways and air transport links, where they exist, are often of low quality, while governmental rules and regulations further slow the flow of goods and people within countries and across national borders," the report notes.


DOHA,June (G77/IPS)-- Abdulrahman Hamad Al-Attiyah, secretary- general of the six-nation Gulf Cooperation Council (GCC), told delegates that in the area of development, the GCC countries have played a silent leadership role.

''While the United Nations has long called for rich countries to allocate no less than 0.7 percent of their GNI to development assistance, few countries have done so,'' he said.

In contrast, the GCC, comprising the largely oil-blessed countries of Qatar, Kuwait, Saudi Arabia, the United Arab Emirates, Bahrain and Oman, ''has long exceeded this goal by providing assistance directly, or through several development funds it operates.''

''We greatly appreciate the proposal to establish the South Fund for economic and social development, as well as to eradicate hunger and poverty,'' he added.

Last June, the Group of Eight (G8) -- namely, the United States, France, Britain, Germany, Italy, Japan, Canada and Russia -- agreed to cancel the debts of some 18 highly-indebted countries. The agreement is expectred to benefit some 18 countries, 14 in Africa, of which 13 are least developed countries (LDCs): Benin, Burkina Faso, Ethiopia, Madagascar, Mali Mauritania, Mozambique, Niger, Rwanda, Senegal, Tanzania, Uganda and Zambia

Addressing delegates, Bangladeshi Foreign Minister Morshed Khan singled out the decision by the European Union to double its official development assistance (ODA) by 2010, to reach the 0.7 target by 2015.

''I pay special tribute to the five countries, namely Norway, Denmark, Sweden, the Netherlands and Luxembourg, which have achieved the 0.7 percent target."

''We hope the rest of the donors will redouble their efforts to meet their three-and-half decade old commitment,'' Khan told delegates. The United States and Japan are two key donors who have not made any firm commitments to meet the 0.7 target on specific deadlines.

He said that annual ODA flows should increase to about 100 billion dollars by 2010: from the current average of about 55 to 60 billion dollars annually.

Anwarul Karim Chowdhury, U.N. under-secretary-general for LDCs, said he ''warmly welcomes'' the Qatari gesture to the world's poorest nations.

''We believe that LDCs are most deserving because they are the most economically vulnerable group of countries, particularly those in Africa. We hope other emerging developing nations will follow suit by devoting increased assistance to LDCs.''

Chowdhury said that 34 out of the 50 LDCs are on the African continent and are urgently in need of financial assistance to put their economies on a sound footing.

"It is a major step in alleviating poverty in Africa," Chowdhury said. He said he hoped the G8 initiative will be implemented in a quick time-frame.

But Delano Franklyn, Jamaica's minister of state for foreign affairs and foreign trade, expressed reservations about the G8 initiative.

He told reporters the proposed debt cancellation was predicated on democratic governance. "But democracy is a relative term," Franklyn argued, "and it would be interesting to see how the G8 defines democracy."

He said the "enlightened decision" to cancel debts did not come by chance. The developing countries have been pressing for such consideration for more than a decade. "It has now manifested itself, but it is still better late than never."

"But we do not believe it is right to extend assistance that is conditional," he added.

Meanwhile, the summit adopted a 23-page Doha Plan of Action and a 14-page Doha Declaration which spell out North-South relations, South-South cooperation, and the shortcomings and economic inequities inherent in the international economic system which need to be rectified.


DOHA, June (G77/IPS)--- Mourad Ahmia, executive secretary of the Group of 77, was honoured with the 2005 'Spirit of Excellence Award-- Emerging Leader for Global Public Service' by the Canada-based Institute for Leadership Development, a specialized institution of the World Trade University Global Secretariat in Canada.

The award ceremony took place early in the margins of South Summit hosted by the government of Qatar.

Ahmia was selected by a panel of distinguished citizens for his longstanding contribution in support of the work of the Group of 77 and for promoting the interests of developing countries at the United Nations.

The President of the World Trade University Global Secretariat, Sujit Chowdhury, said that "this event celebrates hope and inspiration of an emerging leader in the international public service. More than ever, public service requires commitment, dedication, perseverance and performance. Mr. Ahmia fulfills these qualities in his coordinating role within the Group of 77".

Accepting the award, Ahmia said he was particularly humbled by such a prestigious award because ''I strongly believe that this award goes beyond the recognition of my modest commitment within the Group of 77 to the best interests of our developing nations?''.

An Algerian-born career diplomat who joined his country's foreign service at age 20, Ahmia has been serving as executive secretary of the Group of 77 in New York since April 2000.

In 1994, he was seconded for service as Coordinator of the Office of the Chairman of the Group of 77 in New York. In that capacity, he directed the preparatory processes for a number of high-level G-77 conferences that led to the first ever G-77 South Summit in Havana, Cuba, in April 2000, and during which he was appointed as the first executive secretary of the G-77.

During his professional career, Ahmia served as diplomatic adviser in the Algerian Ministry of Foreign Affairs and attended many international conferences and summits as an expert on international economic, social and environment issues.


DOHA, June (G77/IPS) - The Inter Press Service (IPS) Special Award for 2004 was formally presented to Ambassador Nassir Abdulaziz Al-Nasser of Qatar, the former chairman of the Group of 77.

The presentation ceremony took place during the South Summit at the Sheraton Hotel in the Qatari capital of Doha.

The IPS Board of Directors unanimously decided last year to bestow the Special Award on the Group of 77 for its longstanding commitment to the cause of developing nations and for its outstanding contributions in advancing the global development agenda for over 40 years.

The committee singled out Ambassador Al-Nasser, currently Permanent Representative of Qatar to the United Nations, for the key role he played in the success of the Group's activities during its 40th anniversary in 2004.

Addressing diplomats, senior U.N. officials and news reporters, IPS Director-General Mario Lubetkin traced the close links between IPS and the G77, which were both born in the same month and same year 41 years ago.

"This award expresses, in the first place, the degree of historical cooperation between the G77 and IPS, both of which coincidentally came into existence in 1964," he said.

Lubetkin said that IPS has been a strong advocate of the economic agenda of the developing world just as much as the G77 has been the collective voice of the global South.

"It is for that reason that our presence in the South is essential, and it is with that aim that our professional journalists provide coverage from more than 150 countries, mostly from the developing world."

He said the three major themes of the news agency have been development, civil society and the globalisation process and its impact on the developing world.

"It is not a coincidence that IPS is the leader in covering these socio-economic issues, as well as the only global agency of the South -- and I would say one of the few news agencies in the world -- that transmits its news in 17 different languages, including English, Spanish, Arabic and Swahili."

He said providing information to the populations of the South in their own native languages is an "extraordinary challenge" that ensures that millions of people are not to be excluded from the global decision-making process.

Speaking at the award ceremony, U.N. Under-Secretary-General for Least Developed Countries Anwarul Karim Chowdhury said the South Summit was perhaps the most appropriate occasion for honouring both the G77 and Ambassador Al-Nasser.

"This is a real recognition of the contribution made by Ambassador Al-Nasser as chairman of the Group of 77," he said.

He acknowledged the contribution made by the G77 to some of the most economically vulnerable countries of the world, the 50 least developed countries, described as the poorest of the poor.

During his G77 chairmanship, Ambassador Al-Nasser was a strong supporter of South-South cooperation. "And this summit is a manifestation of that support."

At the same time, Chowdhury said, "it is all the more appropriate that this award is coming from IPS which has been championing the cause of development for many years."

He said there has always been "a wonderful convergence" between the leadership of IPS and the leadership of the G77.

Chowdhury said the perspective of challenges facing developing nations is a "wonderful reflection of the articles in the IPS news service."

"We are very grateful for IPS for championing the cause of development for many years. We feel that IPS is the bridge between the G77 and the rest of the world and the media."

The United Nations, he said, is also very grateful for IPS for bringing out issues of the world body -- that are mostly missed by the mainstream media -- in an effective way.

Ambassador Al-Nasser expressed his thanks and his appreciation for the award. He said it was timely that the award was presented at one of the most important summit meetings in Doha, which precedes the upcoming Millennium Summit in New York in September.

He said the role of the media is very important and the G77 has continued to benefit from the close links it has developed with IPS over the last 41 years.


Geneva, 19 June (Martin Khor) -- The Doha Plan of Action, adopted by the political leaders of the Group of 77 and China at the Second South Summit in Qatar on 15-16 June, compiles the thinking and action proposals of the South on four main areas - globalisation, knowledge and technology, South-South cooperation and North-South relations.

In addition, there is a section on Implementation and Follow Up and an Annex listing proposals for South-South cooperation projects.

The Plan of Action (POA) is thus a useful document as it provides in one place a summary of positions of the South’s political leaders on key contemporary issues, and their guidance on follow up actions.

Several of the ideas and plans recall the Havana Programme of Action, adopted at the first South Summit in Cuba in 2000. Indeed, some of the leaders at the Doha Summit lamented the fact that only a small minority of the actions proposed then had been implemented.

“We recognize from experience that we cannot just hope (for cooperation to take place) but we have to take appropriate action to implement the programmes if they are to become reality,” said P. J. Patterson, the Jamaican Prime Minister and Chairman of the G77, after the adoption of the Doha POA.

It remains to be seen whether this time a serious implementation mechanism will be put in place by the G77 to follow up on the Doha POA.

In the POA, the heads of state and government of the G77 and China said they had reviewed the implementation of the Havana Declaration and Plan of Action and the achievements of the G77 as well as the challenges facing it in promoting development. They had also assessed the increasingly complex and fast changing world economy, the evolving unjust and inequitable international economic order and the resulting new and multifaceted challenges.

They emphasized the need to continue strengthening the unity and solidarity among countries of the South, “as an indispensable element in the defense of our right to development and for the creation of a more just and equitable international order and for preserving and nurturing the policy space necessary for developing countries to pursue their development objectives.” The leaders then adopted commitments to act on the various issues covered by the POA.

In the section on Globalisation, the leaders pledged to work towards a common strategy for securing national policy space for developing countries which allow them to adopt the most appropriate measures and actions suitable to their national interests and priorities, and to realize their right to development.

They recognized that reliance on market mechanisms alone is insufficient to meet the challenge of development or to achieve the MDGs.

They agreed to work with the international community towards good governance of globalization by addressing the deficit of democracy and enhancing full and effective participation of developing countries in international economic decision making and norm setting, as well as enhancing transparency in the international financial, monetary and trading systems. They called for greater coordination among international institutions and agencies particularly those dealing with development, finance, monetary and trade issues to promote greater coherence in their policies with a view to making them more development-oriented.

In a lengthy reference to the WTO, the leaders pledged to promote within the WTO a fair, equitable and rules-based trading system that is inclusive and gives priority to the development dimension. As a first step, in the context of the WTO’s Ministerial in December 2005 in Hong Kong, they called for action:

(I) to achieve the fullest realization of the development mandate of the Doha Ministerial Declaration and the WTO General Council decision of August 1, 2004 in all areas of the Doha Work Programme particularly in agriculture, non-agricultural market access, services, TRIPS, rules as well as operational and meaningful special and differential treatment (SDT) for developing countries and to adopt practical and concrete solutions to the outstanding implementation related issues and concerns raised by developing countries;

(ii) to address the trade-related issues identified for fuller integration of small, vulnerable economies into the multilateral trading system.

(iii) to secure targeted financial and technical assistance, and capacity-building programmes for developing countries.

(iv) to emphasize the importance of universality of the WTO membership and call for accelerating the accession process with full observance of the principles of special and differential treatment for developing countries applying to the WTO;

(v) to provide duty-free and quota-free access to all products originating from all LDCs to the markets of developed countries as well as to the markets of developing countries in a position to do so and support their efforts to overcome their supply-side constraints;

(vi) to liberalize services trade in sectors and modes of supply of interest to developing countries, particularly in Modes IV and I of the GATS, assist developing countries in strengthening their domestic services supply capacity and the regulatory frameworks, recognizing their need for policy flexibility consistent with GATS Article IV; and increase investment flows in sectors identified by developing countries, based on their national policy objectives;

(vii) to enhance the development dimension of the international IPR system, taking into account the different levels of development of developing countries with a view to ensuring affordable access to necessary basic products, including medicines and educational tools and software, the transfer of knowledge, the promotion of research and stimulation of innovation and creativity, and in this regard we call:

* For action to accelerate the work on the development related mandate concerning the TRIPS Agreement and the implementation related issues in the Doha Ministerial Declaration, especially on the issues of making intellectual property rules of TRIPS supportive of the objectives of the Convention on Biological Diversity;

* On WIPO, as a UN Agency, to include in all its future plans and activities including legal advice a development dimension that includes promoting development and access to knowledge for all, pro-development norm-setting, establishing development friendly principles and guidelines for the provisions of technical assistance and the transfer and dissemination of technology.

The leaders also called for trade integration and adjustment support to developing countries to build capacity to negotiate and implement trade agreements, and to undertake the necessary adjustment to compete and trade, including through: support to strengthen supply capabilities of SMEs; an “aid for trade” fund to help developing countries adjust to a more open global trade regime; and encouragement of investment in trade-related physical infrastructures, including in the context of commitments by developed countries to support trade facilitation infrastructure development.

They urged the G-24 to work with the G-77 to secure reforms of the international financial architecture for effective voice and participation of developing countries in international decision making process, for full implementation of the Monterrey Consensus, to create stability, to reduce the risk of economic and financial crises, and to enhance the capacity of developing countries to respond to such crises.

They pledged to address in the relevant international fora the urgency of global measures to monitor short-term capital flows, particularly the sources and movement of speculative capital, and to protect the autonomy of developing countries in managing capital flows and choosing their capital account regime.

They will also seek developing country representation at the Bank for International Settlements through the creation of an “Emerging Markets Committee” so that the South’s interests are taken into account in the setting of international banking and financial standards.

They agreed to increase efforts within the international financial institutions for the introduction of international financing mechanisms to meet developing countries’ needs and to mitigate the impact of external trade and financial shocks. They will also pursue efforts to identify innovative sources of financing for development.

They urged greater coordination “among our Ministries of Foreign Ministers, Finance, Planning and Trade in order to promote greater coherence in our initiatives with the rest of the world.”

In a detailed section on commodities, the leaders called for an international approach to enhancing the contribution of commodities to development through actions to address supply side constraints of developing countries, explore an export enhancement fund for commodity dependent countries, remove market entry conditions, systematically link debt repayment and debt servicing by commodity-dependent developing countries to adverse movements in prices of commodity exports and imports; support the UNCTAD XI International Task Force on Commodities, and strengthen the Common Fund for Commodities, and continue efforts to make effective international commodities agreements concluded under UN guidance to promote and improve production and trade of primary products of vital interest to developing countries.

The leaders will consider expanding market size and maximizing investment opportunities by creating sub-regional, regional and inter-regional markets through bilateral, sub-regional and regional economic arrangements.

They will also address the concern regarding the multiplication of proceedings with regard to existing Investor-State dispute settlement system and the negative impact they could have on development. They asked for exchange of experiences between and among developing countries and various institutions dealing with the issue of Investor-State dispute settlement system.

They agreed to ensure that the Fifth UN Conference on the UN Set of Principles and Rules for the Control of Restrictive Business Practices in Turkey on 14-18 November adopts recommendations identifying concrete policies and measures which would make global markets more efficient, fairer and more equitable by preventing and dismantling anti-competitive structures and practices of global enterprises and by promoting developmental responsibility and accountability of corporate actors.

In a section on North-South Relations, the POA called for developed countries to conduct their macroeconomic and trade policies including subsidies elimination in a way that enhances the opportunities for developing countries to reduce the existing income gap and to meet the internationally agreed development goals. It called for an effective monitoring mechanism to ensure that the ODA targets are met.

It urged the international financial institutions and developed country creditors to relate debt sustainability criteria directly to the financing requirements for achieving the internationally agreed development goals.

It fully supported efforts by the international community to raise bilateral grants to the LDCs and other low-income countries, in addition to those grants provided through debt cancellation. It will also continue deliberations on the creation of a framework to deal effectively with all sovereign debt of developing countries.

The POA also urged multilateral and bilateral donors to fulfill their commitment in support for those developing countries facing unsustainable debt burdens, including LDCs, low- and middle-income countries and to develop and implement initiatives to reduce outstanding indebtedness and encourage further international measures, including debt cancellation and other arrangements as well as for those countries belonging to the HIPC Initiative.

The G77 leaders said they would strengthen dialogue with developed countries and their organizations on international economic cooperation for development and invited the Chairman of the G77 “to bring concerns and interests to our development partners, including to the meetings of G8.”

They will engage all partners on the issue of global systemic imbalances in trade, finance, money and technology. They urged the international community to promote reform of the global financial architecture, including through enhancing the voice and participation of developing countries in the decision-making process of the IFIs, and to review international monetary and financial polices and arrangements and their impact on developing countries.

They agreed on enhanced collaboration through the G-77 Chapter in Geneva to increase negotiating capacity in trade and trade related issues.

They called on the international community to promote the transfer of technologies on preferential terms and to support developing countries to increase access to education, ICT knowledge and infrastructure.

They urged the international community to take more measures to mitigate the disastrous effects of HIV/AIDS, tuberculosis, malaria and other diseases including by encouraging local production of drugs and ensuring access to drugs at affordable costs.

They pledged to engage in a pro-active dialogue on matters related to corporate developmental responsibility and good corporate governance of Transnational Corporations, which entails maximizing their contribution to the economic and social development of host developing countries.

Finally, the leaders underscored the importance of a more dynamic and cooperative relationship with the developed countries and called on the G77 to make proposals for the launching of the dialogue.

On Knowledge and Technology, the G77 leaders pledged to strengthen South-South Cooperation in science and technology, to enhance access and use of ICT, to encourage the use of e-government, and to convene the South-South Cultural Forum.

They agreed to strengthen cooperative efforts to build and to utilize networks, institutional capacity and expertise in areas, such as science and technology, research and standards development and to develop a network of “centres of excellence” from existing scientific and technological institutions in developing countries to allow scientists and engineers to interact with each other including through frequent exchange programmes.

On South-South Cooperation, the POA called for a study on new and dynamic sectors for developing countries in world trade, asked all the parties involved to conclude the Third Round of GSTP by 2006, and called on Member States to elaborate South-South frameworks for sectoral cooperation.

It urged UNESCO to develop a programme for South-South cooperation in science and technology and a similar programme for education.

They undertook to strengthen cooperation in the fight against HIV/AIDS, malaria, tuberculosis and other communicable diseases and strengthen strategic South-South programmes of R&D on development of vaccines, drugs and diagnostics for the prevention and cure of these diseases in the South.

They recommended continued consideration of a Trade and Development Bank for the South, asked for mechanisms at the regional and sub-regional levels to exchange of information on anti-competitive practices. They called for regional and sub-regional integration through groupings and other arrangements based on mutual benefit, complementarities and solidarity among developing countries; and for stronger inter-regional cooperation among developing countries in all areas.

They requested the submission of an annual report on South-South cooperation by the Special Unit for South-South Cooperation in collaboration with the South Centre and in consultation with the Chairman of G-77.

On Implementation and follow-up, the leaders decided to continue the strengthening of the capabilities of the Group of 77 through enhancing coordination among the various chapters and strengthening cooperation with relevant South institutions so that the collective wisdom and experience of the Group could be brought to bear in addressing the international agenda, including multilateral negotiations.

The POA also requested the G77 Chairman to establish an open-ended working group to study possible ways and means to strengthen the G-77 and its Secretariat, including identifying common modalities to facilitate inter-chapter cooperation and innovative approaches to address resource and personnel requirements of the G77 Secretariat and submit a report to the Annual Ministerial Meeting.

They also agreed to request the UN Secretary-General to take concrete measures to further strengthen the Special Unit for South-South Cooperation as a separate entity and a focal point for South-South cooperation within the UN system as reaffirmed by General Assembly resolution 58/220, in particular through mobilization of resources for the advancement of South-South cooperation.

They will further request the Secretary-General to rename the UN Voluntary Trust Fund for the Promotion of South-South Cooperation as the UN Fund for South-South Cooperation, and to designate it as the main multilateral funding mechanism for promoting and supporting South-South and triangular cooperation initiatives, including those decided by the South Summit.

The leaders agreed to support strengthening the role of UNCTAD as the focal point within the UN for the integrated treatment of trade and development issues, especially in the delivery of policy analysis and policy advice, as well as in forging consensus on development matters.

They invited the G77 Chairman to prepare a platform for the South to provide a framework of development options to support the participation and integration of developing countries into the global economy and the globalization process and requested him to present the proposals on the elaboration of the platform in September 2005 for the consideration of Ministers.

The G77 Chairman was also asked to convene sectoral meetings to pursue South-South Cooperation and to take action to increase networking among stakeholders (including the G-77 Chapters and the regional organizations) to share experiences and facilitate the development of common positions for the Group in multilateral negotiations.

The G77 Chairman is also to undertake consultations with a view to conducting a mid-term review of the implementation of the outcome of the Second South Summit.

He is also requested to “convey the conclusions of this Summit to our developed partners, including through G-8 meetings, and to bring them to the preparatory process of the High-level Plenary Meeting of the UN General Assembly and other high-level meetings, with a view to strengthening North-South dialogue and mobilize support for the interests of developing countries.”