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G77 says UNCTAD has future, needs sharper focus

JOHANNESBURG: Developing countries said on Sunday UNCTAD still had a global role to play but urged it to review how it implements its policies and co-ordinates with other international organisations.

On day two of the United Nations Conference on Trade and Development, the "Group of 77" said in a declaration it reaffirmed UNCTAD's continuing relevance and role as the U.N.'s main forum for development and related isses such as trade, finance, investment, services, commodities and technology.

"We want a reinvigorated, modernised institution to help the developing world take advantage of the future," Foreign Minister Fernando Naranjo of Costa Rica, president of the G77, told Reuters.

"In the 1980s many developing countries were dealing with serious economic situations...each was dealing with its own problems alone. Now we want to work together, to build South-South economic inter-relationships."

The G77 represents 132 of the world's least developed countries, including many too poor to cash in on the emerging market boom of the last four years which has seen spectacular economic progress for many Asian and Latin American economies.

Delegates noted the call to keep UNCTAD in the U.N. system was significant. If it became a "free" multilateral agency, it would not automatically receive its slice of U.N. members' contributions and states would be free to join or leave.

UNCTAD is under pressure, mainly from major contributing members like the United States, to prove it has a useful role after the establishment of the World Trade Organisation (WTO).

But Naranjo said the G77 thought UNCTAD was complementary to the WTO. "UNCTAD is more political, it will deal more with development, with social investment, with environmental issues."

The G77 statement insisted UNCTAD should remain true to its founding principle of defending the interests of developing countries in the world arena and analysing global development issues, which many delegates believe the WTO is not able to do.

In the face of globalisation and liberalisation of world markets and trade, UNCTAD should champion the weakest.

"The market mechanism has become the pre-eminent instrument for the allocation of resources but is unable to resolve all existing developmet challenges," the statement said.

It expressed "deep concern at the continuing use of coercive economic measures against developing countries, through, inter alia, unilateral and trade sanctions which are in clear contradiction with international law".

Delegates at the meeting said that was a reference to the U.S. Helms-Burton bill aimed at punishing countries which trade with Cuba, and to sanctions against Iraq.

The G77 said it wanted UNCTAD to co-ordinate more with other international organisations, especially the WTO, the World Bank and the International Monetary Fund.-Reuter