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Mr. Chairman,
Let me at the outset thank the Secretary-General for his report under this
agenda item.
2. My delegation would like to associate with the statement made by the
representative of Morocco on behalf of the Group of 77 and China.
Mr. Chairman,
3. Globalization means different things to different people. For some, it is a
panacea for all economic difficulties being faced by the developing countries.
For others, it is a new form of economic and cultural, and eventually political
domination.
4. We believe that globalization is a reality, which cannot be wished away.
Propelled by economic and trade liberalization, it has resulted in enhanced
economic growth, a remarkable expansion in international trade and global
investment flows. Driven by Information and Communication Technologies, it has
brought about a high level of connectivity between regions and peoples.
5. Paradoxically, globalization has also increased marginalization of some of
the less developed societies. This is manifested in the increasing digital
divide, rising income inequalities and concentration of economic power through
mega mergers. The underlying reasons are;
One, increased trade and investment flows, witnessed in recent years, have
bypassed the majority of developing countries. The share of the LDCs in world
exports remains under 0.04 percent. Investment flows are highly concentrated in
few countries - African countries being the marginal recipient – only $ 6
billion in 2002. Their external debt continues to grow.
Two, the gains from liberalization have been manifestly asymmetrical in favour
of the developed countries. Liberalization has proceeded apace in areas such as
information technology and telecommunications which are of greater economic
interest to developed countries. On the other hand, areas of trade in which
developing countries have a particular interest, such as textiles, agriculture,
and the movement of natural persons, are being liberalized at a much slower
pace.
Three, globalization has been accompanied by an accentuation of income
disparities amongst and within countries with obvious negative implications for
the welfare of large segments of populations. There is, in many countries, an
erosion of the middle classes with inevitable negative implications for the
stability of democratic systems.
Four, given the increasing integration of national economies, it is clearly
beyond the capacity of individual countries to manage the process of
globalization by themselves. Even the developed countries have not yet been able
to ensure that globalization proceeds at a pace and in directions where the
“creative destruction” of inefficiencies is not transposed into a runaway train
of economic depletion and social deprivations.
Mr. Chairman,
6. Recognizing these realities, the United Nations Millennium Declaration
proclaimed to make globalization “a positive force for all”. The Monterrey
Consensus called for taking appropriate measures in order to make globalization
“fully inclusive and equitable”. Similarly, the Doha Ministerial Meeting of WTO
committed to “place the needs and interests of developing countries at the heart
of multilateral negotiations”. The Bretton Woods Institutions have also realized
the importance of taking corrective measures to reduce the sufferings of the
developing countries in this globalized world.
7. Unfortunately, the developing world continues to face many complex and
multidimensional challenges. Globalization continues to accentuate their
disadvantaged position, and widen the economic inequalities among countries and
regions. It is negatively affecting their over-all process of development.
8. It is becoming increasingly evident that if we want globalization to work for
all, the economic, financial and social challenges confronting the humanity will
have to be addressed in a coherent manner. Genuine globalization would require
that the developing countries be properly integrated into the global economic
system. It would require opening the developed countries markets to freer
cross-border flows of goods, technology, capital, information and people.
Resolving the unsustainable debt burden of the developing countries, filling the
capacity and resource gaps and enhancing their participation in the
international decision-making and norm setting would be essential for
globalizing development.
9. Unfortunately, the current international development cooperation lacks such
elements. Trade, investment and financial flows are mostly concentrated within
the developed blocs. There is no transfer of resources from developed to the
developing countries. The reverse is in fact the case. Globalization, therefore,
benefits only a small part of mankind - the part that could do without them - at
the expense of the large expanse of humanity that needs them.
10. It is, therefore, important that we devise ways and means to manage
globalization, in order to maximize its dividends and minimize its hazards for
the poor and the already marginalized segments of the international society.
Measures will have to be taken to ensure that the forces unleashed by
globalization serve social ends and promote equitable development of all
peoples. In moving towards such a “governance of globalization”, the following
measures are essential:
First, priority must be given to strengthen the capacity of multilateral
institutions to address the issues of trade, finance and development in an
“integrated” manner. Global monetary reform is one issue which has to be
considered in tandem with rules regarding trade, and in the overall context of
the development impact of measures in these areas.
Two, the institutions responsible for rule making in the “globalization” process
i.e. the IMF, WTO and World Bank, should be made more democratic, transparent
and inclusive. This will require democratization of the decision-making
processes of these institutions. Also, the most universal and democratic
international organization, the United Nations, must live up to its mandate to
oversee the realization of “better living standards for all in greater freedoms”
in all countries. Appropriate mechanisms have to be devised for the greater
involvement of the representatives of civil society, including private business
and consumer groups, in debates relating to economic and social development
issues.
Three, a serious attempt needs to be made to address the perennial issues of
debt, access to technology, and development finance. Control over these by the
developed countries is not a legitimate component of their competitiveness in
the globalized economy. Unless there is progress on these systemic and
fundamental “equity” issues, it is doubtful that any significant advance can be
made to improve the social conditions of the majority of the world’s population.
This would require faithful implementation of the commitments made at the
International Conference on Financing for Development.
Four, rules regarding international trade must take into account the great
disparity in the ability of developing and developed countries to complete in
global markets. These rules must also ensure symmetrical benefits for all
countries, with trade liberalization proceeding in a balanced manner in areas of
interest to both developed and developing countries.
Five, in addressing the linkages between globalization and sustainable
development, particular focus must be placed on identifying and implementing
policies that simultaneously promote the three components of sustainable
development. Social concerns, including labour standards should be dealt with
objectively in relevant international fora such as ILO. These concerns should
not become a vehicle for disguised protectionism.
Mr. Chairman,
11. Finally, as long as the asymmetries and imbalances persist in the global
system, there is no reason to expect a different outcome in a globalizing world.
No framework whether it is globalization, marketization, liberalization or
interdependence can promote development unless it is democratically governed and
geared towards development. To this end, the international community must
consider urgent action in the above mentioned areas.
I thank you, Mr. Chairman.