Havana Programme of Action

GROUP OF 77 SOUTH SUMMIT
Havana, Cuba, 10-14 April 2000

HAVANA PROGRAMME OF ACTION

I. INTRODUCTION
II. GLOBALIZATION
III. KNOWLEDGE AND TECHNOLOGY
IV. SOUTH-SOUTH COOPERATION
V. NORTH-SOUTH RELATIONS
VI. INSTITUTIONAL FOLLOW-UP

I. INTRODUCTION

We the Heads of State and Government of the developing countries which account for almost four-fifths of the world’s population, have assembled here in Havana for the first South Summit at a truly historic moment in the evolution of human society. At the dawn of a new millennium, our countries and people stand at the crossroads of history poised between the achievements of the past and the hope and expectations of a yet uncharted future. Rather than be passive witness of a history not of our own making, we in the South will exert every effort to shape the future through the establishment of a world order that will reflect our needs and interests while also laying the foundations for a more effective system of international development cooperation. To this end, we undertake to pursue a sharply focused action-oriented agenda geared to implementing a number of high priority initiatives within specified time frames. Accordingly, and in furtherance of our Declaration of the South Summit, we adopt the following final documentwhich shall be known as the “Havana Programme of Action”.

II. GLOBALIZATION

1. Globalization, through trade, investment and capital flows and advancements in technology, including information technology, has had a profound impact on all aspects of international relations. As a result of technological development, especially in the electronic, transport and communication sectors, there has been a proliferation of economic, scientific, technological and cultural innovations, which have greatly affected all areas of human life, and especially the process of development in the countries of the South.

2. Globalization can be a powerful and dynamic force for strengthening cooperation and accelerating growth and development. It presents opportunities, as well as risks and challenges. Globalization is a process which can be uneven and unpredictable, but if it is properly harnessed and managed, the foundations for enduring and equitable growth at the international and national levels can be laid. National efforts need to be complemented by intensified international cooperation in order to reverse the marginalization and manage the risks, overcome the challenges and seize the opportunities crated by globalization.

3. The empirical evidence shows, among others, that the income gap between developed and developing countries has widened. Even those countries which seem to have adapted well to globalization were the most seriously affected by the Asian financial crisis. It is clear that there is no automatic process by which income levels of developing countries will converge towards those of developed nations. The challenge before the international community is to ensure that globalization should takes into account the development dimension.

4. We are concerned about theincreased marginalization of a large number of developing countries, especially Least Developed Countries, owing to the globalization process, particularly in the finance, trade and technology sectors. We emphasize the importance of the effective and beneficial integration of the LDCs into the global economy and the multilateral trading system as its main driving force. In this context, we agree that the United Nations is in a unique position, as a universal forum, to strengthen international cooperation for promoting development in the context of globalization; in particular the integration of developing countries into the globalizing economy, on terms in which as they are able to take full advantage of all their potentials for economic growth and development. In this regard, the forthcoming Millennium Summit presents an important platform to strengthen the role of the United Nations in international cooperation for development.

5. In addition, globalization has increased the vulnerability of those countries of the South, which are in the process of being integrated into the world economy. As the recent financial crisis has illustrated, financial liberalization including speculative and volatile financial flows, over which the developing countries have little controls, in the absence of adequate institutional arrangements to manage the processes, has generated significant instability in the international economies, with specially disastrous results for the developing countries. Therefore, there is an increasing need for the reform of the international financial architecture. In this context, we should seek to ensure a more democratic and fair ordering of any mechanism which emerges from these discussions in order to increase the effective participation of developing countries in the management of the international economy. It will also be important to ensure that the reform of the international financial architecture addresses financing for development as well as issues of financial stability including the need for the regulation of hedge funds and highly leveraged institutions and strengthening of the early warning system to provide for improved response capabilities to help countries deal with the emergencies and spread of financial crises. In this context, UNCTAD should contribute to the debate on issues related to the strengthening and reforming of the international financial architecture by continuing to provide relevant analysis from a development perspective. The focus should be to achieve the objective of financing for development.

6. We stress the need for adjustment of the policies of developed countries which should lead to an improved market access for the exports of developing countries and the elimination of protectionistand support measures especially in agriculture, textile and clothing sectors. We also call for the mandated negotiations on agriculture in accordance with the provisions of article 20 of the Agreement on Agriculture. In agriculture the objectives should be to incorporate the sector within normal WTO rules.

7. Vulnerability and volatility are major impediments to the countries of the South and contribute to perceived risks and difficulty in attracting foreign direct investment in developing countries, making ODA a crucial source of finance for developing countries and stressing the need for the continuation of flexible graduation procedures by the Bretton Woods Institutions. The completion of the work on a vulnerability index would be an important step in assisting multilateral institutions to assess effectively the needs of developing countries. As a number of underlying principles governing globalization and trade liberalization have been formalized in the agreements emanating from the Uruguay Round of multilateral trade negotiations, there is a need to address those aspects which have clearly operated to the disadvantage of developing countries and immediately implement fully the provisions for special and differential treatment in favor of developing countries. We are distressed that since the Ministerial Meeting in Marrakech held in 1994 establishing the WTO, little has been done to develop an effective program of concrete measures to assist the integration of these countries into the multilateral trading system. Of concern also is the volatility of international markets which have witnessed the deterioration of prices of commodities and terms of trade, which have imperiled the ability of developing countries in the global economy.

8. In this respect, it is necessary to adopt measures that improve access, for all products of export interest to developing countries, to the markets of developed countries, by means of reducing or eliminating tariff and non-tariff barriers, and by introducing measures that support capacity-building for production and export in our countries, as well as other measures that help to guarantee the stability of the prices of these products in the international markets. Within the framework of the WTO, to promote the idea of the creation of a fund for development.

9. Furthermore, increased international interaction, which has taken place in the context of globalization, has also led to problems which require enhanced international cooperation and solidarity for their resolution. Maximizing the benefits of globalization requires sound domestic macroeconomic policies supported by an enabling global environment and international economic cooperation. It is imperative that a collective solution is found to wide-scale collective problems. Globalization calls for approaches and methods in line with the global level of the problems facing the world; it calls for a view which includes the large majority and is based on an essential sense of social justice and human solidarity. In general, it will be necessary to ensure greater coordination in international policy-making.

10. Globalization and interdependence, whilst strengthening common values, should boost and maintain local development, taking into account the traditions, culture and identity of the people, who together make up the common heritage of humanity. Special attention should be paid to preserve diversity which is the principal wealth of human development. Respect and tolerance for cultures and cultural identity would contribute to peaceful co-existence and economic development.

11. We reaffirm the right to self-determination of all peoples, in particular of peoples under colonial or other forms of alien domination or foreign occupation, and the importance of the effective realization of this right, as enunciated, inter alia, in the Vienna Declaration and Programme of Action adopted at the World Conference on Human Rights. We decide to continue working for removing the obstacles to the realization of the right of peoples to self-determination, in particular of peoples living under colonial or other forms of alien domination or foreign occupation, which adversely affect their social and economic development. We are deeply concerned also over the gravely negative impact of foreign occupation on the social and economic development of peoples under foreign occupation, and, in this context, we also reaffirm the principle of permanent sovereignty of peoples under foreign occupation over their natural resources.

12. We stress that democracy, respect for all internationally recognized human rights and fundamental freedoms, including the right to development, transparent and accountable public administration and governance, responsive to the needs of peoples, in all sectors of society, as well as effective participation by our citizens and their organizations are an essential part of the necessary foundations for the realization of people-centered sustainable development. We also stress that every State has the inalienable right to choose political, economic, social and cultural systems of its own, without interference in any form by another State.

We, the Heads of State and Government, commit ourselves to the following decisions and actions:

(1) To respond to globalization with a view to making it beneficial for all countries and peoples, and to actively promote effective participation of developing countries in the international economic policy decision making in the context of the globalizing world economy

Convene,in consultation with member States from the Southa High Level Advisory Group of eminent personalities and intellectualsto prepare a report on globalization and its impact on developing countries, and report to the annual Ministerial Meeting in the year 2001.

Intensify efforts to review and reform the WTO regime with a view to promoting a multilateral trading system that is fair, equitable and rules-based, and that operates in a non-discriminatory, inclusive and transparent manner, and in a way that provides benefits for all countries, especially developing countries. This will involve among other things, improving market access for goods and services of particular interest to developing countries, resolving issues relating to the implementation of WTO agreements, fully implementing special and differential treatment, facilitating accession to the WTO, and providing technical assistance. Invite member States to consult and make efforts as necessary for coordination of the position of developing countries prior to UNCTAD and WTO meetings, including through Ministerial Meetings

Work to ensure that countries whose economies depend heavily on trade preferences be accorded the necessary transition period by the World Trade Organization to adjust to the new liberalized regime.

Work within all relevant fora to ensure the establishment of a work programme for small economies to enhance their capacity to participate more effectively into the international trading system.
Work towards reform of the international financial architecture that addresses issues of financing for development and stability of the international financial system including the need for regulation of hedge funds and highly leveraged institutions and strengthening of the early warning system to provide for improved response capabilities to help countries deal with the emergencies and spread of financial crises.

Oppose application of all disguised protectionist measures such as labour standards and the attempts to further widen the environmental windows currently existing under the rules. We pledge to work together to ensure that linkages which act to curb the comparative advantage of developing countries are eschewed in WTO.

Press for the freer movement of natural persons, in which developing countries have comparative advantage in the global economy, thus matching the arrangements applied in other areas such as finance and services. While the capital markets have been opened, including in developing countries, there has hardly been any movement in opening of the labour market in developed nations, particularly within the context of forthcoming negotiations on trade.

Call on the relevant institutions to work towards the early completion of a vulnerability index.

Urge UNCTAD to assist in collaboration with Common Fund for Commoditiesdeveloping countries and upon request, in handling commodities in an integrated manner with attention on improving their prices, developing their processing, transportation and availability of capital and technology for production. We also urge UNIDO to continue its assistance to developing countries to enable them to diversify their economies.

Pursue efforts to harmonize the South’s position on monetary and financial matters and in this context welcomes the decision adopted by the Twenty-sixth meeting of the Chairmen/Coordinators of G-77 Chapters held in Geneva, from 6 to 7 April 1999, to convene annual coordinating meetings between the Chairmen of the G-77 and G-24 prior to the IMF/World bank spring and autumn sessions.

(2) To revitalize and strengthen the role of the UN system in promoting development and international cooperation in the context of globalization

Work for decisions on critical economic issues in institutions such as IMF, World Bank and the WTO, which promote the interests of developing countries through effective and full participation of all and on the basis of sovereign equality, and by asserting the key role of the UN in this sphere.
Work towards strengthening the role of UNCTAD and the coordinating role of ECOSOC and the regional commissions in addressing the economic and social development priorities of developing countries.
Continue to pursue the complementarity and coordination among the UN agencies, especiallyUNCTAD and otherrelevant international organizations including the IMF, the World Bank and the WTO with the view to promoting the development of developing countries while avoiding the imposition on governments of cross-conditionalities and other conditions which would operate to restrict their policy options further.

(3) To preserve and promote cultural diversity especially in the context of globalization

Invite national governments andinstitutions of the South to preserve and promote diversity in traditions, culture and identity of the people, as well as indigenous and local traditional knowledge, practices, and technology for achieving local development and request the Chairman of Group of 77 to examine the possibility of organizing a Southern Cultural Assembly, Art Festival of the South on a biennial basis. The Chairman would present his recommendations to the next Ministerial Meeting.

Invite governments and institutions of the South to promote and intensify cultural exchanges and tolerance among the developing countries.

(4) To utilize institutions in the South in meeting the challenges of globalization

Invite the Chairman of G-77 to coordinate the networking of research institutions and centers from the South to undertake analytical and prospective research on globalization and related matters, with a view to strengthening the Group’s negotiating capacities in various G-77 Chapters.

Intensify efforts at institutional capacity building, including through the exchange of expertise, experiences, information, and documentation between the institutions of the South in order to develop human resources and strengthen the institutions of the South.

III. KNOWLEDGE AND TECHNOLOGY

1. Today, more than ever, rapidly advancing scientific and technological developments, particularly in areas such as microelectronics, biotechnology and information technology, have played a critical role in economic and social development and have, therefore, influenced all areas of human endeavour. We are in the midst of a profound revolution of knowledge and technology. Therefore, we acknowledge that to invent, innovate, generate, acquire, absorb and use knowledge in any manner possible has been an important contribution to economic growth and the raising of standards of living for a long-term.

2. We recognize that there has been a shift from manufacturing to information and knowledge-based production activities in the global economy over the last two decades. Information Technology (IT) presents the most powerful technological revolution of our time. Its impact and rapid pace are ushering in fundamental changes that will define the challenges and opportunities for all countries in the future. Information Technology could become an effective instrument for fostering equality in the field of economic growth and development and for narrowing the gap between the developed and the developing countries, as well as for facilitating access to knowledge and education at all levels of society. We should take full advantage of this unique opportunity to help shape the use of Information Technology and to ensure that its vast benefits reach all humankind by undertaking efforts to make it more widely accessible to and within developing countries.

3. We note with concern that developing countries lag far behind in knowledge generation and its application to new areas of industry which provide increasing returns and rapid increases in income. With their modest investment in research and development, the countries of the South find it difficult to keep pace with these developments. The disparity between the developed and developing countries in their respective capacity to produce scientific and technical knowledge and to utilise this knowledge in support of social and economic development has emerged as a major problem facing the international community. The technology gap between developed and developing countries has become an important cause of the increasing income gap between developed and developing countries and this gap is likely to increase further if developing countries cannot become actively involved in developing those new industries based on the application of knowledge and technology.

4. Advances in technology also carry risks and uncertainties and even have potentially destructive implications, particularly in terms of their impact on the environment. More than ever, science and technology are also likely to exert a major influence on the way in which the earth’s resources are utilised and shared among its inhabitants. Scientific knowledge is therefore emerging as a major source of power and influence and as a key factor in determining the sustainability of our planet and the future prospects of mankind. This challenge implies the need to elaborate an appropriate strategy designed to promote international cooperation in the field of science and technology.

5. We are deeply concerned that the role of the United Nations, which was given the mandate at the 1979 Vienna Conference on Science and Technology, has been progressively marginalised over the years.

6. Moreover, the provisions under TRIPs agreement relating to the transfer of technology should work to the mutual advantage of producers and users of technical knowledge and should facilitate transfer of all required technologies to developing countries. Faced with the threat of increasing technological marginalization of the South, we have decided to make science and technology a priority item on the national agenda as well as in the area of South-South cooperation. We also intend to re-introduce the subject as a major item on the international development agenda, since science and technology can help the countries of the South to address more effectively the challenges faced by the South.

7. We are aware that a number of barriers have prevented the developing countries from seizing opportunities to exploit science and technology including lack of resources to generate and exploit traditional knowledge, particularly those of indigenous communities, the non-recognition of traditional knowledge - in technological development and patenting, lack of infrastructure, prohibitive costs of acquiring knowledge and technology and small size of their economies, including the challenges resulting from the changing role of the State, the emergence of such patenting which promotes corporate monopoly and the progressively decreasing importance assigned to science and technology on the international development agenda.

We, the Heads of State and Government, commit ourselves to the following decisions and actions at the national and international levels:

(1) Promotion and development of knowledge and technology in the South

Work towards achieving the objective of eradicating illiteracy and to promoting the concept of Education for All Throughout Life, through steps to promote basic education, ensuring special emphasis on the promotion of girls education,and higher level education, strengthening of education infrastructure and non-formal methods of education;
Work towards addressing basic and other infrastructural impedimentsto the spread of knowledge, such as provision of electricity, transport and better telecommunication facilities, as well as finding ways, where appropriate, to remove the impediment on regional and interregional basis.
Allocate adequate resources including from national budgets to further the access, specially of children and youth, to basic and higher level education and to strengthen science and technology sectors within our countries and to increase the percentage of GNP allocated to the development of research in the field of science and technology;
Publish, on annual basis, national reports that provide data on national scientific and technology capacities as well as a roster of national researchers in different fields of science and technology;
Establish, at the national level, networking of research institutions dealing with science and technology and promote closer links between universities, research institutions, industry and scientists. These networks should involve and link people, governments, private and public sectors, civil society and scientists of the South based in the North;
Work together as countries of the South to exchange experiences and cooperate with others among us who have a competitive advantage in areas such as bio-engineering, communications, communication, administration and production, education, transport, banking and software development.
Decide to establish a G-77 science and technology award for individuals from the South who have distinguished themselves in the area of science and technology.
Promote the establishment of venture capital funds in our respective countries to promote science and knowledge based industries.

(2) To encourage the institutions of the South to launch further initiatives to promote knowledge and technology in developing countries

Establish a trust fund for the promotion of knowledge and technology in the South. Seed money for the Fund may be provided on a voluntary basis by governments, private sector, foundations and other organizations. The Chairman of the Group of 77 should initiate action for the establishment of such a trust fund and report to the following Ministerial Meeting on this issue;
Establish a consortium on knowledge and technology comprising representatives from the governments, private sector and other relevant organizations which should meet on a regular basis in order to promote joint ventures in the South in the field of science and technology. The Chairman of the Group of 77 should initiate action for the establishment of such a consortium and report to the following Ministerial Meeting on this issue;
Encourage South-South scientific organizations and research institutions dealing with science and technology to further expand their South‑South fellowships and training programmes and develop dynamic strategic alliances with governments, private and public enterprises, universities, laboratories and civil society;
Exploit the potential of communications and information technology for the development of the South through the adoption of policies, and measures that should narrow the gap between developed and developing countries in information and communication technologies and to strengthen information technology networks at the regional, sub-regional and interregional levels with linkages to global information networks.

Establish a South-South network, linking research & development (R&D) institutions and other centers of excellence in order to enhance the South’s efforts in establishing strategic South-South programmes of R&D on the development of vaccines, drugs and diagnostics for the prevention and cure of major communicable diseases in the South, such as malaria, tuberculosis and HIV.

Decide to consider, as soon as possible, the possibility of convening a South-South high level conference on science and technology, with a view to formulating global strategies and clear policies within the South for the promotion of science and technology.

(3) To harness the potential of human resources, including expatriates, from the South for the benefit of developing countries and to address the challenges associated with brain drain

Create conducive conditions in our countries in order to attract andretain our important human resources.
Encourage South-South transfer of skills and in this connection we urge the strengthening of the application of the United Nations Volunteers Programme for transfer of skills between countries of the South.
Encourage research and scientific organizations from the South to open their chapters in developed countries. Expatriate scientists, professionals and research scholars from the South may be encouraged to run these chapters;
Invite the Chairman of the Group of 77 in close coordination with the relevant G-77 Chapters to take necessary steps with a view to promoting, with relevant organizations of the UN system, Associate Schemes particularly in the field of communications, information and biotechnology. Such schemes would provide opportunities for scientists and professionals working and living in the South to have interaction with the fellow scientists in the North without permanently leaving their own countries and undertake further initiatives for the exchange of experiences and knowledge in order to achieve the universalization of knowledge and education.

(4) To create enduring international environment to ensure South’s access to knowledge and technology and promote the United Nations central role in removing different barriers faced by the South in the acquisition of knowledge and technology

Invite the Chairman of the Group of 77 in coordination with the various G-77 chapters to work towards the strengthening of the United Nations Commission on Science and Technology for Development, and arrangements within the UN system, including UNESCO and the regional commissions dealing with knowledge and technology, and promotingannual consideration of science and technology within the relevant committees of the United Nations.
Call for a better coordination within the UN system in the field of science and technology with a view to enabling the developing countries to participate in the knowledge based global economy and to elaborate programmes to use science and technology as a vehicle for development.
Increase public investment in technologies for development and work towards ensuring transfer of technologies to developing countries on preferential terms and invite developed countries and international organizations to adopt policies and programme with a view to ensuring that developing countries can measurablybenefit from the advances in technologies owned by both public and private sectors;

Work towards operationalising the provisions of the TRIPS agreement, articles 7 and 8 thereof,which facilitates the access to dissemination and transfer of technologies and to explore benefits that could accrue to developing countries and particularly least developed countries. In this context, invite developing countries to hold consultations, prior to international meetings related to the review of the TRIPS agreement with a view to achieving common positions in this field. In addition, efforts should be made to ensure that future TRIPS-related agreements extend the provisions for transfer of technology from developed to all developing countries on concessional and preferential terms.

Invite the Chairman of the Group of 77 to explore the possibility of formulating proposals to ensure that the TRIPS agreement promote the development of developing countries, including the possibility for a code of conduct for all countries which facilitate the access to, dissemination and transfer of technologies on concessional and preferential terms from developed to developing countries.
Work towards full implementation of provisions of various conventions and agreements in order to ensure that proprietary patents based on traditional knowledge in all aspects including those of indigenous communities are developed only after obtaining the prior informed consent of the developing countries concerned after reaching agreement on benefit sharing with these developing countries, which are storehouses of such bio-diversity and traditionalknowledge. Work towards fulfilling the clear and pressing need to extend and render effective protection to indigenous biotechnology, developed over the millennia, to ensure a flowback of benefits from patentees to original developers.
Strengthen the UN bodies dealing with science and technology including the promotion of the implementation of the Vienna Plan of Action on Science and Technology adopted in 1979.
Make universally accessible, proven appropriate technologies and safe and affordable, essential medicines to prevent and mitigate HIV/AIDS pandemic and other communicable diseases in order to arrest their catastrophic human and economic impact on developing countries.

IV. SOUTH-SOUTH CO-OPERATION

1. South-South cooperation is a crucially important tool for developing and strengthening the economic independence of developing countries and achieving development and as one of the means of ensuring the equitable and effective participation of developing countries in the emerging global economic order. Economic and Technical Cooperation among Developing Countries (ECDC/TCDC) have become an integral part of the mutual relations between the States of the South and an important means of promoting the exchange of ideas, experience, knowledge, technical advances, skills and expertise across a broad range of sectors. It also remains a key vehicle for forging common positions in international forums on issues of concern to developing countries.

2. Since the establishment of the Group of 77 in 1964, we have formulated a number of platforms, strategies and plans of action on South-South co-operation. We recognize that the Non-Aligned Movement, as the other prominent platform of the South, has also adopted a number of action-oriented South-South programmes. Taken together, these documents set out a comprehensive philosophy and framework for action aimed at promoting an intensified pattern of co-operation among our countries in a wide range of areas such as trade, investment, technical cooperation, industrialization, energy, food and agriculture, and technology.

3. In the light of current global economic environment, which has been markedly influenced by the process of globalization, we agree that the need for strengthening South-South Cooperation is greater now than ever. We note, however, that although there has been an increasing pattern of co-operation among our countries, progress over the years has not been commensurate with the comprehensive nature of the commitments embodied in the various declarations and programmes of action. The lack of effective follow-up and implementation have militated against full exploitation of the potential of South-South co-operation. This has also tended to lessen the impact and effectiveness of such co-operation in recent years. We reaffirm the continued relevance and viability of South-South cooperation in view of the increasing differentiation among the developing countries in terms of level of development. Increasing contacts and interaction has provided an additional basis for increased co-operation among the countries of the South.

4. We emphasize that special attention should be paid to the Least Developed Countries owing to their particular needs so that they can effectively participate and benefit from programmes of economic and social cooperation among developing countries in all fields of such cooperation.

5. The tendency for decisions taken in multilateral fora at the global levels, to impact directly on the developing countries, makes it all the more necessary for our countries to foster increased co-operation and co-ordination of effort.

6. In addition, the increasing importance of subregional and regional economic groupings and arrangements in the South provide a powerful dynamic for enhanced South-South cooperation. Varying development experiences and know-how existing in developing countries as well as similar needs and problems offer opportunities for greater bilateral, subregional, regional and international cooperation among developing countries. The potential of these arrangements needs to be fully exploited.

7. We are convinced that the United Nations Convention to Combat Desertification, as a development convention, is an appropriate framework to promote sustainable development in developing countries, and that South-South cooperation could contribute to the implementation of this Convention. In this regard, we welcome the adoption of Platforms for action at the Second Africa-Asia Forum (Niamey, 1998) and at the second Africa-Latin America and the Caribbean Forum (Bamako, 2000) as an important contribution to the implementation of the Convention.

8. As eradication of poverty and inadequate access to basic social services remain major challenges facing the majority of the South, the social sector offers genuine complementarities to provide scope and ample potential for effective mutual cooperation through sharing of experiences, resources and institutional capabilities among developing countries, as appropriate.

We, the Heads of State and Government, commit ourselves to the following decisions and actions:

(1) To renew efforts to stimulate the expansion of South-South trade and investment in order to accelerate economic growth and development of the South.

Decide to consider further deepening and expansion of the GSTP in order to enhance its effects, through examination of possible ways of rationalizing the process of negotiations for a third round of GSTP negotiations.
Decide to review the implementation and the performance and impact of the Global System of Trade Preferences (GSTP) among developing countries with a view to deepening and expanding the GSTPand invite the Chairman of the Group of 77, in coordination with the Geneva Chapter, to convene an intergovernmental consultative meeting as soon as possible and to request UNCTAD to contribute to this process.
Invite the Chairman of the G-77, in consultation with the Chairman of the G-77 Chamber of Commerce and Industry, to convene an extraordinary meeting during the course of this year, to review the performance of the chamber, the operating modalities and its mandates as well as its subsidiary bodies, and to formulate a specific programme of work and to report on regular basis to the Chairman of G-77 on its activities. Also requests the Chairman of G-77 to present regular reports to the Ministerial Meeting of G-77 on the activities of the Chambers.
Strengthen current modalities and mechanisms for South-South cooperation, including by regional economic groupings, and other relevant institutions, while enhancing and readapting these modalities wherever necessary.
Intensify bilateral, subregional, regional and interregional cooperation and integration in all modes of transport among developing countries.
Encourage the landlocked developing countries and the transit developing countries to further strengthen their collaboration and cooperation, through the implementation of existing transit arrangements and agreements between them and consideration ofnew arrangements and agreementsin order to enhance the efficiency and increase the flow of transit trade without prejudice to the interests of the transit countries. In this regard, the convening of the Ministerial Meeting on Transit Transport Cooperation to be held in 2003, is strongly emphasized.
Invite the Chairman of Group of 77 to encourage regular organization of a business forum and a South-South trade and investment fair and to take urgent necessary steps with a view to identifying the venue of the first tradeand investment fair and business forum to be held in the year 2002.
Harness effectively industrial complementarities among countries of the South, including through promotion of practical initiatives in the area of industry involving interested countries, with a view to increasing the productive capacity and value added in developing countries and fostering enhanced South-South investment. In this context, we invite the Chairman of the Group of 77 where requested to seek the support of relevant UN agencies in this endeavour.

(2) To strengthen cooperation in the monetary and financial field

Note the initiative of G-77 Chamber of Commerce and Industry to establish a G-77 Trade Development Bank with its headquarters in Nairobi and branches in all regions of G-77, and the financial support provided by the Government of Kenya for a feasibility study of the Bank. In that regard, request G-77 Chamber of Commerce and Industry to submit a report on the project as well as the Chamber’s activities and operational modalities, through the Office of the Chairman of G-77, to the next Ministerial meeting of the G-77 in New York.
Continue to review the proposal of the establishment of a South-South monetary fund, South-South economic and social development fund and a South-South commodity price stabilization fund, within the process of reviewing the feasibility study of the South Bank initiative undertaken by the Group of 77 in 1983 as an innovative financial arrangement of the South to build up capital markets and facilitate South-South trade and investment, and invites the Chairman of the Group of 77 to report on this matter to the forthcoming ministerial meeting of the Group of 77.
Create at the national level institutional arrangements for developing and strengthening capital markets in the countries of the South.
Establish linkages between the stock exchanges and secondary bond markets of the regions of the South.

(3) To strengthen cooperation in promoting social development including the enhancing of capacity-building and human resources

Decide to exchange experiences on:
(i) effective and pro-poor health care delivery, specially primary health care, population planning and education programmes, particularly basic education, developed in the South based on local skills and resources that can fit into diverse needs of communities.

(ii) innovative arrangements including centers of excellence established in the South for greater spread and utilization of knowledge existing in the South in the field of social development.

(iii) successful programmes focussing on youth, children and women.

(iv) arrangements and incentives to attract more capital, particularly in pharmaceutical industry, to generate more research aimed at finding remedies at affordable cost to diseases that have wide prevalence in the South.

(v) further actions to encourage spread of various alternative forms of medicine existing in the South.
Invite national governments to compile and disseminate updated information and expertise available within countries to facilitate greater interaction and networking among the developing countries in all areas of social development.
Pursue more vigorously the implementation of South-South technical cooperation agreements established at the bilateral and multilateral levels in the economic, social, scientific and cultural fields, and invite national governments to exchange information on technical cooperation schemes they have successfully established.
Invite member States to consult and coordinate, as necessary, their position prior to the annual general conferences of all relevant intergovernmental organizations.

(4) To promote multilateral cooperation and arrangements towards the expansion of South-South cooperation

Invite G-77 countries to contribute to the expansion of the resources of the Perez-Guerrero Trust Fund for Economic and Technical Cooperation among Developing Countries (PGTF) in accordance with the relevant decision adopted by the Twenty-first Annual Ministerial Meeting of the Group of 77 held in September 1997 in New York, and invite the Chairman of the Group of 77 in coordination with the Chairman of the Committee of Experts of PGTF to intensify their efforts with the developed countries and relevant international organizations and private sector to support the expansion of the PGTF, and invite the Chairman of the Group of 77 to report on the matter to the forthcoming Ministerial Meeting of the Group of 77.

Invite developing countries as well as developed countries to contribute generously to the UNDP Trust Fund on South-South Cooperation with a view to supporting the promotion and the implementation of South-South projects and initiatives adopted by the G-77 South Summit, and invite the Chairman of the Group of 77 and the Administrator of UNDP to report to the forthcoming Ministerial Meeting of the G-77 on this matter.

Invite the Chairman of the Group of 77 to take the necessary steps for the publication, in collaboration with the TCDC Unit of UNDP, of an annual report on South-South cooperation which comprises, inter alia, programmes of ECDC/TCDC implemented by member States, including a list of national focal points in charge of ECDC/TCDC.
Encourage the establishment of a network among focal points of developing countries by the Special Unit for TCDC, in the context of the creation of a multidimensional web of information for development.
Decide to revitalize the role of various G-77 actions committees in various fields of cooperation as provided for in the Caracas Programme of Action, and invite the Chairman of the Group of 77 to propose mechanisms and arrangements to this end.

Invite the Administrator of the UNDP to strengthen the TCDC Unit as the UN focal point for South-South cooperation through the preservation of its separate identity and the provision of adequate resources to ensure the full implementation of decisions of the South Summit under its sphere of competence and to enable it to carry out its relevant mandates and responsibilities.

Invite the Chairman of the Group of 77 to conduct appropriate consultations with a view to identifying a possible venue for the tenth session of the Intergovernmental Follow-up and Coordination Committee on ECDC (FCC-X) to be held during the second half of 2000 in Africa as well as ensuring the regular meetings of the IFCC and to report to the forthcoming ministerial meeting of the Group of 77 on this matter.

Promote the further use of experts from developing countries in the programmes and projects of the UN system executed in developing countries and invite the Chairman of the Group of 77 to take necessary steps with view to encouraging action in that regard.

Identify and assess our needs as well as our capabilities and make them well known to other developing countries to promote complementarities and increase South-South cooperation.

Encourage partner developing countries, within the context of the list of projects to take effective steps for early implementation of such projects. In this regard, examine the creation of an open portfolio of projects on continuing basis.

Invite developing countries to promote further initiatives on regional and sub regional cooperation to enhance economic development.

Invite international organizations and developed countries to further promote and facilitate South-South Cooperation through triangular arrangements.

Invite developing countries to pursue further efforts to strengthen institutional support for South-South Cooperation with a view to maximizing the potentials of such cooperation among developing countries.
Decide to convene a high level conference on South-South cooperation in the year 2003 and invite the Chairman of the Group of 77 to take necessary steps towards the implementation of this decision and to regularly report to the next annual ministerial meetings of the Group of 77 on this matter.
Work to operationalize the Africa-Asia and Africa-Latin America and the Caribbean Platforms for action on the implementation of the Convention to Combat Desertification and call upon the international community to lend its full support to this cost effective and efficient initiatives.

V. NORTH-SOUTH RELATIONS

1. We are deeply concerned about the current state of North-South relations and the weakening of the commitment of the developed countries to international cooperation in support of development that was a hallmark of these relations prior to the 1980s. The post-cold War period with its promise of a peace dividend has not fulfilled the hopes and expectations of the developing world. Instead, we have witnessed a weakening of the commitment of the developed countries to international cooperation in support of development. At the same time we also noted with concern the declining commitment to multilateralism which has negatively affected international cooperation for development. In fact, despite the growing prosperity of the North, the level of finance for development for multilateral assistance including ODA has experienced a continuous decline over the years.

2. We have also witnessed with concern the marginalized role of the UN in decision making on the major international economic issues and the shift of such decision making to the Bretton Woods institutions, in which developed countries exercise effective control by virtue of the system of weighted voting, and to the WTO in which they have sought to pursue non transparent and exclusive decision making procedures inimical to the interest of the developing countries. These developments have adversely affected the climate for pursuing a constructive and effective dialogue between North and South in order to strengthen international economic cooperation.

3. It is our considered view that the creation of a stable international economic system supportive of development rests critically on the renewal of an effective North-South Dialogue aimed at the reinvigoration of international development co-operation geared to development and the increasing democratization of global economic decision-making structures. We strongly believe that such co-operation would need to be approached in a manner which is perceived by the developing countries to be equitable and fair and that will lead to fostering political will of all countries to build a constructive dialogue based on the spirit of partnership, common but differentiated responsibility, mutual benefit, and genuine interdependence.

4. Within this framework we believe that a renewed North-South Dialogue should seek to achieve two major objectives namely, the restoration of the focus on development in existing international relations and the need to correct the imbalance in the operation of the international economic system which has placed the developing countries at a clear disadvantage vis-à-vis the developed countries.

5. For North-South relations to play a more dynamic and central role in the global economy, we need to thoroughly evaluate the obstacles in the way these relations were conducted. We will also assess our potentials and strengths with a view to formulating strategies to effectively confront these challenges.

6. In the context of North-South dialogue, special attention should be given to the solution to critical problems for developing countries, such as restrictions to world trade hindering development, the volatility and instability of the international financial system and the drastic reduction of financial flows under preferential terms and conditions towards the countries of the South; the widening technological gap between the North and the South; the worrisome foreign debt of developing nations and the extremely unequal distribution of world income to the detriment of the most vulnerable economies.

7. The process of globalization and any multilateral negotiations on agriculture must take fully into account concerns and special needs, including those related to food security and rural employment, of developing countries which are predominantly agrarian economies.

8. Recognizing that food security is an important issue, we call for the expeditious implementation of the Marrakech Ministerial decision on measures concerning possible negative effects of the reform programme on least developed and net food importing developing countries.

9. For the global economy to recover, it will be necessary to restore confidence in the international trading system, and offer new opportunities for the countries of the South to ensure access the markets of developed countries. Towards this end multilateral trade negotiations should pay special attention to the development dimension of international trading arrangement. Similarly, the principle of non-reciprocity and the preservation and full implementation of special and differential treatment for developing countries should be firmly entrenched in the multilateral trading system.

10. In the spirit of fostering North-South relations we underline the necessity for developed countries to eliminate laws and regulations with adverse extraterritorial effects and other forms of unilateral economic coercive measures, inconsistent with the principles of international law, UN Charter and the principles of the multilateral trading system.

11. We also express our grave concern over the impact of economic sanctions on the civilian population and development capacity in targeted countries and therefore urge the international community to exhaust all peaceful methods before resorting to sanctions, which should only be considered as a last resort. If necessary these sanctions must be established only in strict conformity with the Charter of the United Nations with clear objectives, clear time frame, provision for regular review, precise conditions for their lifting and never be used as a form of punishment or otherwise exact retribution.

12. We express deep concern over the air attack against El-Shifa pharmaceutical factory in the Sudan on 20 August 1998. We recognize that such an act has had a negative impact on the economic and social development of the concerned country and express our continued solidarity and support of its demand for a just and fair consideration of the matter in accordance with the Charter of the United Nations and International Law.

We, the Heads of State and Government, commit ourselves to the following decisions and actions:

(1) Foster a new North-South partnership in order to promote consensus on key issues of international economic relations and development

Revitalize the North-South dialogue and to that end, invite the Chairman of the Group of 77 to take necessary steps to convey promptly the G-77 concerns and interests to our developed partners, including through the meetings of G-8, and to initiate appropriate action with a view to strengthen the existing international arrangements within the UN system in coordination with other groupings from the South.
Request the High-level Advisory Group of Eminent Personalities from the South, while preparing its report on globalization and its impact on developing countries, to include therein a comprehensive assessment of the North-South dialogue.
Work towards the formulation of a comprehensive international strategy to reverse the decline in ODA, to achieve the target of 0.7% of GNP of developed countries by the end of the first decade of the twenty-first century and also within that target ensure to earmark 0.15% of their GNP for the LDCs and to endeavour to reach the target of 0.20% for the LDCsby the year 2000.
Work towards outright cancellation of unsustainable debt of developing countries, and reaffirm the need of a just and lasting solution to the problem of the foreign debt of developing countries, which considers the structural causes of indebtedness and prevents the recurrence of this phenomen in the future. In this regard, we attach special priority to the creation of appropriate conditions worldwide to curb financial volatility, ensure the necessary institutional reforms and reactivate the financial flows towards the countries of the South,and other ways of financing for development.

Welcome and fully support the holding of the Third UN Conference on the LDCs in 2001, as mandated by the UN General Assembly. In this context, we urge all countries, the international organizations, the Funds and Programmes and International Financial Institutions to effectively participate in the preparatory process for the Conference so that a meaningful outcome could be achieved for implementation.
Work towards an enabling international economic environment conducive to full implementation of Uruguay Round agreements in particular the operationalization and strengthening of the measures relating to the special and differentiated treatment for developing countries and the GSP and proper functioning of all principles of free multilateral trading system including its universality.
Work towards incorporating the agriculture sector within normal WTO rules, addressing the particular problems of predominantly agrarian economies, small island developing economies and net food importing developing countries.
In order to enhance the incorporation of the agricultural sector within the WTO rules, the necessary measures should be taken so as to fully address the particular problems of predominantly agrarian developing economies, small island developing economies and net food importing developing countries.
Pursue action to encourage the major economies of the North, particularly the G-8, to enhance coordination and coherence of their macroeconomic policies with development objectives of the South.

Support reforms, which should lead to the emergence of a new financial architecture, that ensures full participation of the developing countries in the international economic policy decision-making and that ensure stability, transparency and democratic functioning of the international financial system.
Work to ensure for the effective integration of all countries into the international trading system including improving supply side capabilities of developing countries especially the least developedamong them, overcoming the debt problem and to create conditions in our countries to attract adequate financial flows, including ODA, and to ensure institutional reforms and reducing financial volatility.
Work towards ensuring that rescheduling of debt or its cancellation is financed through additionality of resources and not at the cost of other forms of official development assistance.
Work towards achievement of the universal membershipof the World Trade Organization as soon as possible in order to strengthen the multilateral trading system. We strongly believe that appropriate assistance should be made available to developing countries seeking accession. They should be offered terms that neither exceed nor are unrelated to the commitments of developing country and LDC members of WTO. We urge that all WTO members refrain from placing excessive or onerous demands on applications from developing countries. We, therefore, stressed the need for a transparent, streamlined and accelerated accession process that is in keeping with WTO rules and disciplines.
Invite UNCTAD in close cooperation with the Geneva Chapter to establish and pursue a programme to elaborate trade policy tools that promote the development dimension within multilateral trading system.

Advocate a solution to the serious environmental problems, on the basis of the recognition of the ecological debt of the North and of the principle of common but differentiated responsibilities between developed and developing countries, highlighting the need to gain access under preferential terms to the appropriate financial resources and technologies in order to ensure a sustainable development as provided in Agenda XXI.

(2) Restore the central role of the UN in global economic issues, development and international cooperation

Invite the Chairman of the Group of 77 to include the issue of the role of the UN in global economic issues, development and international cooperation in the draft agenda of the annual ministerial meetings of the Group of 77 as well as in the agenda of the Chapters meetings.

Call upon UNCTAD,in view of the significant expansion of the activities of transnational corporations (TNCs), including the increasing number of mega-mergers among corporations in developed countries as well as cross border acquisitions in the developing countries, to monitor these activities and analyze their economic, social and environmental implications for the South with a view to maximizing their potential benefits and minimizing their possible negative effects.

The contribution of the transnational corporations (TNCs) to sustained economic growth and sustainable development is determined by their global strategies characterized by the search for increased competitiveness and ever-higher profits. Such a situation is not necessarily consistent with job creation and the realization of development objectives in many developing countries. In this context, with a view to achieving a balance between the business plans of TNCs and the developmental objectives of developing countries, we call upon UNCTAD and ILO, within their respective mandates, to study the impact of TNCs activities on unemployment as well as on the competitiveness of small and medium enterprises in developing countries. We also call on the TNCs to integrate their development objectives of host developing countries in their business strategies.

VI. INSTITUTIONAL FOLLOW-UP

1. While the establishment of a secretariat of the Group of 77 remains relevant as recommended by various G-77 ministerial meetings and Chapter meetings, the articulation of a rational structure for the management of the affairs of the G-77 is a critical priority. Although the present loose arrangement has succeeded in achieving a reasonable level of support to the activities of the Chairman of the Group of 77 and the members of the Group of 77 as a whole, it is evident that given the multi-faceted nature of the challenges now facing the developing countries, and the expansion of UN agendas during the last two decades, the time has come for us to adopt a more structured arrangement for managing the affairs of the Group. To this end, decide to strengthen the existing arrangement of the Office of the Chairman of the Group of 77 in New York, as provided for two decades ago by the Caracas Programme of Action and recommended by the Twenty-first Annual Ministerial Meeting of the Group of 77 held in September 1997 in New York and the 26^th Meeting of the Chairmen/Coordinators of the G-77 Chapters held in Geneva in April 1999, aiming at upgrading the current structures of the Office of the Chairman of the Group of 77 into a compact executive secretariat.

2. Decides, with a view to enabling the Chairman of the Group of 77 to undertake as soon as possible the process of strengthening the current structures of the Office of the Chairman of the Group of 77,an annual contribution of US$5,000 and to invite those countries in position to contribute more to do so.

3. Invite the Chairman of the Group of 77 to review within an appropriate timeframe the complementaries and harmonization of various programmes of Action of South-South cooperation adopted by various South-South groupings and organizations. To harmonize the South’s position there is a need to explore areas where synergies can be realized taking into account the Programme of Action tabled by the Non-Aligned Movement, Panel of Economists and other groups from the South.

4. Decides to establish a special fund as a matter of urgency with a target of at least US$10 million to further assist the full implementation and follow-up of the decisions adopted by the South Summit. The G-77 member countries, other developing countries, developed countries, relevant UN organizations, and other relevant organizations and other development partners such as private sector and foundations can make voluntary contributions to the fund. In this regard, invite the Chairman of the G-77 to report to the forthcoming G-77 ministerial meeting on the terms of reference and operating modalities of the fund.

5. Invite the annual meeting of the Chairmen/Coordinators of Chapters of the Group of 77 in the year 2000 to consider ways and means to improve coordination mechanisms among the Chapters, with a view to strengthening existing arrangements for the advancement of the positions of the Group in the UN system, and to report on its deliberations and consultations to the upcoming Ministerial Meeting of the G.77.

6. Decide to establish a research programme including through the establishment of systematic links with research institutions in the South which have the potential to carry out extensive analyses directly relevant to the work of the G-77, while stressing the need to maximize the work of the existing research institutions of the South in order to enhance the institutional research capacity of the Group of 77.

7. Decide to establish Groups of Experts in their individual capacities, to review and comment upon the agendas of major multilateral conferences with a view to providing guidance on the objectives and goals of the developing countries, as should be reflected in the outcome of such fora.

8. Invite the Chairman of the Group of 77 to establish a monitoring,analysis, identification, management, follow-up and evaluation mechanism to ensure effectiveness of its South-South projects and initiatives implemented such as mid-term reviews, identification of time frames for implementation of projects in the fields of economic and social development, capacity building and human resources development. This mechanism should consider the analysis of the cooperation initiatives that incorporate the portfolio of projects, provided for in chapter IV of South-South cooperation (numeral 4, bullet 10) and of the various sources of possible financing, with the aim of identifying and managing the procurement of funds for their implementation. This would include opportunities that are available within our countries, both in hard currency and local currency, in technical services, in kind, etc.; and those made available by inter-governmental organizations; regional development banks; donors from developed countries; non-governmental organizations and foundations; and the private and academic sector.

9. Invite the Committee of Experts of the Perez-Guerrero Trust Fund (PGTF) in close coordination with the Chairman of G-77 to make an annual allocation of resources from each project cycle of the PGTF to support the implementation of the South Summit decisions in various relevant sectors taking into account the guidelines for the utilization of the PGTF.

10. Decide to convene the Second G-77 South Summit in the year 2005 and request the President of the South Summit to ensure the effective implementation of decisions and activities in the period between this Summit and the Second G-77 South Summit in the year 2005.

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