Roads to world peace more complex (2)

This article is based on statement made by Indonesian Foreign Minister Ali Alatas at the 49th session of the United Nations General Assembly on Oct. 4. This is the second of a two-part article.

NEW YORK: I do agree with the Report of the Secretary-General on an Agenda for Development (A/48/935) when it cites the economy as being the engine of progress and of development as a whole. If I may bring the metaphor a little further, it may be appropriate to say that at present the world economy is a flawed engine that has stalled but is beginning to warm up again. It is flawed by the imbalances and inequities that have distorted the relationship of one of its most important parts, the relationship between the developed and the developing economies. It has broken down in a long and devastating recession, but in recent times it has shown signs of recovery. However, the aggregate statistics of world economic growth often conceal as much as they reveal. As aptly put by the 1994 World Economic and Social Survey, the world economy remains a complex mosaic of sharp contrasts, in which most developing countries are often too weak and vulnerable to be able to compete successfully in the world market, thus risking their further marginalization and decline into extreme poverty. Hence, apart from the need to sustain non-inflationary, global economic growth, the urgent imperative continues to be the eradication of poverty and acceleration of the socio-economic development of the developing countries on a sustained and sustainable basis.

If the engine for global progress and development is to carry humankind to a brighter future into the next century, then its parts must be brought into a more balanced, synergistic relationship and its functioning be made more effective and efficient. We have no alternative but to forge a new partnership for development involving all nations, developed and developing. It is therefore crucial that we bring to full realization General Assembly resolution 48/165 on the "Renewal of the Dialogue on Strengthening International Economic Cooperation for Development through Partnership". By adopting this resolution, the international community has acknowledged the indispensability of the principles of genuine interdependence, of mutual interest and benefit, and of equitably shared responsibility, in a new spirit of global partnership. As a necessary corollary to this North- South partnership. South-South cooperation has become even more compelling, for the developing countries are called upon to shoulder an increasing share of the responsibility for world growth and development. We look forward to the report of the Secretary-General on this issue and also to the deliberations toward the adoption of "An Agenda for Development" As many have advocated during the World Hearings on Development in June this year, as well as at the High Level Segment Meeting of the ECOSOC, the Agenda should be action-oriented and should present an overall policy and priority framework for a balanced and comprehensive approach to development. It should reflect universal recognition and acceptance of the United Nations as the only Organization capable of dealing with issues of development as well as with the issues of peace and security. It will also be necessary that the agencies, bodies and programs of the United Nations be organized in such a way as to enable them to implement the Agenda in an effective, efficient and coordinated manner, without necessarily creating a new body for this purpose. Obviously, there will be the need to generate the required political will in support of the Agenda. We look forward to seeing the Agenda for Development serve as a fitting complement to the Agenda for Peace.

One of the most important recent developments in the international economic sphere is the completion of the Uruguay Round with the signing of its Final Act in Marrakesh and the agreement to establish the World Trade Organization (WTO). Indonesia and the other developing countries have accepted the Uruguay Round package, in spite of the heavy obligations and challenges that it entails, because they anticipate that considerable opportunities for increased market access and indeed for world economic growth and prosperity will be forthcoming. They also expect that the Uruguay Round package would provide the long-sought assurance of a rule-based and non-discriminatory multilateral trading system, free of the arbitrariness of unilateral action. Yet, we must confess to being concerned with the possibility of a tardy and long drawn-out process of implementing the Final Act of the Uruguay Round. Such an eventuality will negate much of its original intent and rob it of its positive impact, as was, regrettably, the experience with the Tokyo Round. Furthermore, the attempts to over-load the WTO work program with social clauses represent in our view protectionism in a thin guise and tend to nullify the few remaining comparative advantages of developing countries. For this reason, we feel strongly that the process of ratification and implementation of the Uruguay Round agreements should not be linked to new issues that have little or no relevance to the development of a new international trading regime. All nations are called upon to marshal their political will and to accept inevitable shifts in comparative advantage without transferring the burden of adjustment to the weaker economies.

Had relationships between developed and developing countries been more equitable. We would not today be faced with the problem of developing countries staggering under their external debt burden. While aggregate debt indicators have undoubtedly improved, mainly in response to various debt relief measures, the external debt crisis still persists especially in the Least Developed Countries where debt ratios have significantly worsened and continue to hamper the prospects for economic growth and development. A durable solution to the perennial debt question, I believe, can only be secured through a development-oriented strategy formulated within the framework of shared responsibility and genuine partnership. Thus, rather than taking a one-sided view of the causes of external debt, there is an urgent need for all sided involved to adopt a coordinated approach.

As Chairman of the Non-Aligned Movement, Indonesia has given the highest priority to resolving this crisis. President Soeharto has taken the initiative of conveying a memorandum on debt of development countries to the Chairman of the Group of Seven on the eve of their Tokyo Summit last year, inviting the G-7 to engage in dialogue on this issue. We are encouraged that the G-7 has responded positively to the NAM on this issue in Tokyo and then again last July in Naples, where among others, it urged the Paris Club to pursue its efforts to improve the debt treatment of the poorest and most indebted countries and, where appropriate, to reduce the stock of debt as well as to increase concessionality for those countries facing special difficulties. Moreover, Indonesia has also recently hosted a ministerial meeting of Non-Aligned Countries on Debt and Development, involving the most heavily indebted Least Developed Countries (LDCs). The meeting called upon the international community, particularly donors and international financial institutions inter-alia to adopt a common set of principles for future debt negotiations, which include a one-and-for-all arrangement for settling all outstanding debts, and the application of debt reduction to all categories of debt, including multilateral debts. A report of the meeting has been submitted to the Secretary-General for possible consideration at this session of the General Assembly.

As a firm believer in the rights of peoples to development, including social development, Indonesia is deeply committed to participate actively in the World Summit for Social Development. We do hold that economic development can only be meaningful if guided by social values and directed at humanist goals. The World Conference on Women in 1995 equally deserves total support from the international community. Indonesia is committed to the adoption of a conference declaration calling for de facto as well as de jure equality between men and women, the integration of gender concerns into sustainable development, and a program of action to achieve those goals.

Some of these issues have likewise been addressed in the Program of Action on Population and Development which was adopted at the International Conference in Cairo in September this year. We consider that the Cairo Program of Action has laid a solid foundation upon which population and development policies can be integrally implemented. The interrelationship between population, sustained economic growth and sustainable development has been greatly reinforced in the program. In the preparations for that Conference, Indonesia, as Chairman of the Non-Aligned Movement, organized three meetings of its member countries at the Ministerial and expert levels which we believe contributed towards the comprehensive outcome of the Conference. It is now crucial, however, to ensure that the recommendations of the Cairo Program be fully implemented in accordance with the sovereign rights, the national laws and development priorities of each country as well as with full respect for various religious and ethical values and cultural backgrounds of its people. It is equally important that the international community provides additional financing for its full implementation.