Mr. Chairman,

I have the honour to speak on behalf of the Group of 77 and China on agenda item 55 entitled: Globalization and Interdependence, and its sub-items (a) The role of the United Nations in promoting development in the context of globalization and interdependence,: 55 (B): Preventing and combating corrupt practices and transfer of funds of illicit origin and returning such assets to the countries of origin and 55 (C): Science and Technology for development.

We would like to thank the Secretary-General for his various reports submitted under this important agenda item, which provide a good basis for our deliberations and our work in the Second Committee.

Mr. Chairman,
Globalization has brought new challenges for growth and sustainable development. It particularly poses special difficulties to the developing countries in effectively responding to these new challenges. Some countries have successfully adapted to these changes and benefited from globalization. Many others, especially the least developed countries remain marginalized in a rapidly globalizing world economy.

The degree of flexibility and the policy space that the developing countries have in shaping their national policies in an increasingly globalized but uneven economy is clearly diminishing. Today, economic performance of developing countries is being more and more determined by factors outside its geographical borders and beyond its control. The globalization of markets means that economic meltdowns caused by policy failures in developed country markets quickly spread to other markets. This internationalization of crises underscores the importance of global governance and sound regulatory frameworks. Developing countries need to maintain their right to development through policy space to pursue policies and strategies based on their unique social, political, economic and environmental conditions.

Mr. Chairman,

Equitable sharing of the benefits of globalization requires managing globalization through strengthening international cooperation and global partnership for development. Each country has primary responsibility for its own development. In this regard, the role of national policies and strategies cannot be over emphasized in the achievement of sustainable development. These national efforts should be supported by global programs and policies. In this context, in order for the developing countries to optimally benefit from the economic globalization, greater voice and participation in international economic decision making and norm-setting is a must. There is thus a clear and urgent need for continuing efforts to reform the international financial architecture, including reforms in the Bretton Woods Institutions.

Mr. Chairman,

The Untied Nations system can help identify best practices and tools to help strengthen developing countries' institutional capacity to fully understand and effectively cope with the implications of external macroeconomic and trade policies on development strategies. It is important that the UN System positions itself to respond to the increased challenges of globalization, in fulfillment of its Charter mandate. The United Nations should play a fundamental role in the promotion of international cooperation for development , coherence, coordination and implementation of development goals and actions agreed by the international community. There is a need to strengthen coordination within the United Nations system in close cooperation with all multilateral financial, trade and development institutions in order to promote sustained economic growth, poverty eradication and sustainable development. Multilateral institutions as well as global governance need to be reformed to ensure greater participation of developing counties in the decision making process of international institutions so that their needs in managing globalization are fairly represented and addressed at international level.

Mr. Chairman,

In an increasingly knowledge-based world economy, access to technology has become a vital component of any viable development strategy. The restraints on access to technology, specially advanced technologies which could address critical development problems, are now a major manifestation of inequality between the developed and the developing countries. The Group of 77 and China reiterates that advances in science and technology and easier access to latest technologies will certainly help developing countries achieve significant progress in areas such as agriculture, health, energy, trade, water and environmental protection. Advancement in these sectors in essence represents the core of the internationally agreed development goals including MDGs.

Mr. Chairman,

We invite the State Parties to the Conference of the United Nations Convention against Corruption to take further steps to implement the outcome of that important convention, particularly initiatives on asset recovery and the provision of technical assistance and capacity building. There is a need   to build knowledge and strengthen capacity in this important area, particularly among developing countries. There is a need for increased collaboration with the developed countries and their financial institutions in uncovering illegal transactions involving such illicitly acquired funds, locating the funds and arranging for their return to countries of origin. We should continue to seek creative ways to achieve these objectives.

Mr. Chairman,

Finally, global partnership for development is given heightened importance by increasing globalization. Lack of progress in most areas of the global partnership for development, in particular agreements on trade and investment and the participation of developing countries in international economic decision-making, continue to impede economic growth and social development and the realization of internationally-agreed development goals. Under MDG-8 development partners are not living up to commitments and expectations. This is a long-standing commitment that we hope will not be underemphasized given the current context. In responding to the current challenges of globalization, the international community will also have to be particularly mindful of the special circumstances of the developing countries least developed countries, landlocked developing countries, and small island developing states. Development partners and the UN system must be responsive to the national development plans and strategies of the most vulnerable countries.

I thank you.