Mr. Chairman,

1. I have the honour to deliver this statement on behalf of the Group of 77 and China after the adoption of the resolution "Development cooperation with middle-income countries", under agenda item 21 (c).

Mr. Chairman,

2. We engaged constructively in the process of negotiation with a view to improving the development cooperation with middle-income countries towards the achievement of a more inclusive development cooperation system that serves all developing countries and takes into account their different needs and particularities. In this regard, the Group profoundly regrets that this year's resolution is a procedural one and we are strongly concerned about the message that the international community is sending in this area.

Mr. Chairman,

3. Despite the recent progress achieved and the efforts made by middle-income countries, 75 per cent of the world's poor population lives in those countries. The achievement of the internationally agreed development goals, including the Millennium Development Goals, as well as the creation of jobs for the youth, the diversification of their economies, and the development of technologies continue to be huge challenges for middle-income countries.

4. Moreover, we note with deep concern that some middle-income countries are highly indebted and, as such, are at risk of severe debt distress, particularly with the onset of the current global financial and economic crisis.

5. In this regard, we would like to stress that, it is of utmost importance that the international community and in particular the UN system continue supporting the efforts of middle-income countries, through various forms, in order to achieve a sustainable development and to ensure that the achievements made to date are sustained.

Mr. Chairman,

6. Because of their particular characteristics, the middle-income countries are a special group within the broader category of developing countries; they share one very significant characteristic: the inequality of income distribution, which creates economic and social distortions.

7. In that regard, partial approaches to poverty diagnosis and reduction, as well as emphasis on certain dimensions of development to the detriment of others, give a distorted view of the real situation of middle-income countries. We believe that national averages based only on criteria such as per capita income do not usually reflect accurately the actual particularities and special development needs of a significant diverse number of countries. For that reason - and underscoring that there is no "one size fits all" approach to development - it is important that the assistance provided should be well aligned with the national priorities, policies and strategies of each country and take into account the different dimensions of development in a holistic manner.

8. Finally, we would like to express that our Group will continue pursuing the interests and needs of all its members and we look forward to the future substantive discussions and a very open, honest and objective exchange of views with all our partners on this issue.

Thank you.