Seventh UNCTAD adopts Final Act by consensus.

• Position: United Nations Conference on Trade and Development

Seventh UNCTAD adopts Final Act by consensus

Industrialized and developing countries agree on common approach to development through economic growth

THE SEVENTH SESSION of the United Nations Conference on Trade and Development (UNCTAD VII), held at Geneva from 9 July to 3 August, adopted by consensus a Final Act in which industrialized and developing countries agreed on a common approach to development through economic growth. UNCTAD is the largest intergovernmental forum for the consideration of North-South economic issues.

In a 4 August statement, Secretary-General Javier Perez de Cuellar expressed pleasure at the Conference's successful conclusion and stated that the Final Act was "perhaps the most comprehensive statement of the issues facing the world economy and of the policies and measures required to address them, that has been agreed upon at the international level in the past few years'.

He added that the political will shown by all groups of countries to reach consensus on that document, and to do so within the United Nations framework, was a "very significant and promising sign of the prospects for multilateral co-operation and the development dialogue', as well as for the Organization's future. It was also an important reaffirmation, he said, of the continuing validity of the concept underlining the mission of UNCTAD, which had emerged strengthened from the Conference. The Conference's substantive results represented a significant advance towards its objectives--the revitalization of development, growth and international trade.

All participants stressed the positive and business-like climate which prevailed throughout the Conference under the presidency of Bernard T.G. Chidzero, Minister of Finance, Economic Planning and Development of Zimbabwe. In his final remarks to the Conference, UNCTAD Secretary-General Kenneth K.S. Dadzie said the Conference had achieved constructive and significant advances in the areas addressed by its agenda. He described the substantive discussions as positive, non-confrontational and constructive. He considered, moreover, that the deliberations "were not unduly constrained by concerns with the definition of institutional competences' but rather "ranged widely over the burning issues facing policy-makers in all countries and, in particular, in developing countries'. He said the Final Act was characterized "by a degree of cobalance and moderation which, at the same time, was realistic', and thus, was able to win the support of all groups.

In his final statement to the plenary, Mr. Chidzero said the Conference had

in many ways been unique in the history of UNCTAD. Its agenda had been short and well-focused, and discussions had been transparent and pointed, being held in a non-confrontational atmosphere. The achievement of a consolidated text--the Final Act-- was the product of a searching and painstaking exercise, and was a milestone in UNCTAD proceedings. He saw the policies and measures which had been adopted as "nourishing the theme of revitalization in UNCTAD and other forums until the objectives are achieved. The results mark a new beginning and demand more effort and political will commensurate with the development challenges of the present time', he observed.

This was the first time that UNCTAD had adopted by consensus the substantive outcome of its work, embodied in a single document submitted by the Conference President, after intense negotiations involving ministers and delegates. The only vote was on a resolution on the economic situation in the occupied Palestinian territories.

Originally scheduled for 9 to 31 July, the Conference was extended for three days. A total of 143 members and 98 intergovernmental bodies and non-governmental organizations took part in the Conference.

Negotiations were centered in four sessional committees, each dealing with one of the topics. Committee I, chaired by Makoto Taniguchi, of Japan, was concerned with resources for development; Committee II, presided over by Carlos Perez del Castillo of Uruguay, dealt with commodities; Committee III, headed by Chak Mun See of Singapore, addressed itself to international trade; and Committee IV, under the leadership of Martin Huslid of Norway, was responsible for problems of the least developed countries (LDCs).

In opening the Conference, Lazar Mojsov, President of the Presidency of Yugoslavia and President of UNCTAD VI, held in Belgrade in 1983, said the world economy and international economic relations in general were in the throes of a crisis.

On one side of the globe there was an abundance of means, knowledge, possibilities, development resources and creative potential, he said; on the other side there were frustrated opportunities, stagnation and the inability to stimulate creative forces. There were no firm bridges between the North and the South across the ever wider economic gap between them.

The growth of developing countries could no longer be postponed. Without their economic growth and the strengthening of their all-round economic potential, there was no way out of the crisis. The development of the vast majority of mankind should become the priority of the entire international community, Mr. Mojsov said.

Development assistance was not charity, but an indispensable, although partial, compensation for the unequal position of the developing countries in the world economy and their losses due to inequitable exchange. The fulfilment of obligations undertaken by the developed countries regarding public development assistance was only one way to enable the poor countries to become independent and equitable partners in international trade.

Only within the context of interdependence of development was it possible to realize the necessary structural changes, ensure the transfer of technology, expand market of all sectors of the economy in all countries. That was alo the pre-condition for, and the road towards, the optimum development of the world economy, he concluded.

Downward spiral?

Addressing the Conference on 9 July, Mr. Perez de Cuellar called for vigorous action to ensure that the world economy did not get caught in a downward spiral, with adverse consequences for all countries. UNCTAD VII offered an excellent opportunity to change the course of events by common efforts to find the most effective means for reactivating global growth and development. Convergent actions envisaged at the sixth session of UNCTAD had yet to be translated into reality. A sustained growth in the world economy that would permit a satisfactory and early solution of critical economic and social problems had not taken place.

Recently, he added, due to the combination of low global growth and continuing uncertainties, the necessary support for the accelerated development of developing countries, in particular, had failed to materialize. The consequences had been detrimental for many countries, especially in Latin America and Africa, which were engaged in painful adjustment. Many of those countries had continued to suffer falling per capita incomes. Declining commodity prices, stagnating official development assistance (ODA) and the increasingly onerous burden of debt service had offset the efforts of many developing countries to generate a domestic surplus for investment and growth. The decline in oil prices had also hurt many countries throughout the developing world.

The Secretary-General observed that Governments had taken positive steps in a number of problem areas. In particular, there had been increased appreciation of the need for co-operative approaches in addressing international economic issues. More specifically, the commitment to co-ordinate macroeconomic policies among the industrial countries had been reaffirmed, most recently at the Venice summit. The Uruguay Round of multilateral trade negotiations had also been launched, promising opportunities to liberalize international trade and to roll back protectionist measures, especially against developing countries.

Longer-term debt rescheduling had been made available in the Paris Club and other forums. Further, the General Assembly had agreed upon the United Nations Programme of Action for African Economic Recovery and Development 1986-1990, which embodied commitments by...