Minister of International Development and Human Rights Ms. Hilde F. Johnson

Statement at UNCTAD X

Bangkok, Friday 18 February 2000

Mr. President,

UNCTAD X is taking place in a country and a region that was recently hit by a severe financial crisis. The fact that Thailand is now rapidly re-emerging from this setback is first and foremost an impressive achievement by the government and people of Thailand.

But Thailand is not alone. Other countries in the region are also recovering from painful adjustments, sometimes at a high social cost, but with stronger institutions and more accountable governments. Last week, I visited Mozambique, a Least Developed Country that is now experiencing one of the highest growth rates in the world.

These cases show that it is possible, through concerted political commitment and through sound economic and social policies, to shift from negative impact to a positive momentum for change.

Mr. President,

Let me congratulate the Thai authorities on their generosity in hosting this Conference in such an excellent way.

The deliberations during UNCTAD X indicate that the international debate on globalisation is entering a new and more constructive phase. There is now a growing convergence of views that a world economy based on more open markets is here to stay; that the move towards a lowering of trade -, economic-, and political barriers between nations must continue.

But there is also broader agreement on the need for more coherent policies, reformed, but stronger institutional frameworks both at national and international levels, and on a rules-based world trading system within the WTO. There is more awareness that this requires well functioning legal systems and a new dedication to fight corruption at all levels of society. Above all, there is a stronger emphasis on the human and social agenda, poverty reduction, human rights and democratic institutions, and respect for core labour standards, as agreed within the ILO.

Further studies of the processes of globalisation are needed to better understand its effects on our societies. This continues to be an important task for UNCTAD. But in this next phase we need to move beyond analysis. Regardless of whether we stress the positive opportunities of globalisation or its risks and pitfalls, we have to deal with its policy implications and policy options. - Individually, as nations and as representatives of governments, and jointly or collectively, through the multilateral system of global intergovernmental co-operation.

The real challenge of globalisation is to devise a set of strategies and policies that cover and at the same time link national, regional and global levels. We must see to it that this is achieved in ways that are coherent, just and effective. And we must make certain that the onus remains on greater opportunity and equity for all.

Mr. President,

In the 1990s, the private sector continued to drive the process of globalization forward with rapid capital movements, telecommunications, trade and other areas of the new global economy. We also witnessed a revitalisation and growth of regional co-operation.

However, we have not seen a corresponding strengthening of the global intergovernmental system. The UN family, the Bretton Woods institutions and other multilaterals meet the millennium reformed, better co-ordinated, better led and managed than before. But they are still fairly modest in terms of resources and coordinated policy responses. This, I believe, raises the vital question of whether the multilateral system has sufficient capacity - or ability - to take on the tasks of the new century. With the nominal zero growth policies presently in place in the regular budgets and stagnation in flows of voluntary contributions to multilateral agencies, we are facing severe constraints in assigning new, additional tasks to the system, if we do not back up with more funding.

Even though we observe greater convergence on globalisation at the conceptual level, there are still important gaps between global needs and our collective capacity to address them. The intrinsic difficulties of multilateral negotiations on issues where member countries have different views and interests make the system sometimes sluggish in adjusting to new priorities and responding to new challenges. Compared with the dynamism and enormous wealth and power now being accumulated in the private sector, the global multilateral system, in the eyes of some critics, appears to be increasingly irrelevant. In some areas - and this pertains not least to the financial sector - even the mandates are weak.

Norway is a firm believer in the UN and the global multilateral system. We have worked hard to support and strengthen both the system as such and individual agencies. Despite institutional improvement in the multilateral trading system, there is a serious shortage of global public goods and services in areas such as health, employment, education, the environment and financial stability.

Development assistance remains important in financing trade and development initiatives and, hence, in enabling the facilitation of economic growth. The precipitous fall of ODA in the latter half of the 1990s has now, hopefully, been reversed. Norway has always been a loyal partner in development, and we plan to increase our contributions to 1 per cent of GNP by 2005. Also Foreign Direct Investments (FDI) to the poorest countries remain far too low.

Mr President,

Strong and binding rules that provide predictable conditions for international trade facilitate continued growth and value added in the world economy. We believe that it is in the interest of all countries that the multilateral trading system be further strengthened and that barriers to trade be further reduced. The system must, however, be refined and more sensitive to the situation of the developing countries. Other vital issues are the qualitative aspects of trade relating to the environment, food security, health, consumer policy and the safeguarding of cultural diversity.

Norway deeply regrets that the WTO's ministerial conference in Seattle did not agree on a mandate for launching a comprehensive round of trade negotiations. The experience from Seattle clearly demonstrated that transparency and good working procedures are prerequisites if international organisations are to have the necessary legitimacy among all their members and among other interested actors such as NGOs and the media. It is time we address this issue in the WTO.

It is our common responsibility to help better integrate the least developed countries in the world economy and the multilateral trading system on more just terms. This requires improved market access, capacity building and sufficient financial and technical assistance, as well as special and differential arrangements which secure the interests of the poorest countries. This is also why Norway had hoped that the WTO's ministerial conference in Seattle would approve a proposed change in the financing of the WTO's trade-related technical assistance. These activities should, in our view, be financed over the WTO's regular budget. We will also actively continue our efforts to reach agreement on a mandate for a new round.

Mr. President,

Norway intends to play an active part in the preparations for the Third UN Conference on the LDCs next year. We have not been satisfied with the support given to the LDC cause within the UNCTAD Secretariat since Midrand. This is a system-wide issue of the greatest importance, and we expect that the LDCs now be given their rightful priority in terms of attention and resources.

What role should UNCTAD play in the work ahead?

Its primary importance should continue to lie in the areas of analysis and consensus building. Through its analytical work, policy advice, technical co-operation and capacity building, UNCTAD can facilitate the process of helping the developing countries integrate better into the world economy. UNCTAD should play an important role in supplementing and assisting WTO and its other partners. The broad participation of other agencies here in Bangkok is a sign that UNCTAD is moving in the right direction.

In the area of trade-related capacity building, UNCTAD and the ITC have important complementary roles, in addition to the education and training programmes of the WTO. Furthermore, UNCTAD has important core tasks in the interface between trade and development, in the field of investment and as the focal point for the LDCs.

We, the member countries, should use UNCTAD as an open forum to address a range of issues affecting development, even those which are controversial. Influence follows relevance. Member States should become better at using UNCTAD and exploiting its potential to the fullest.

Mr. President,

What is becoming abundantly clear is that effective responses to enhance the positive aspects of globalisation require more co-operation and more innovative partnerships between all actors involved. We need more multilateralism, not less.

We will also go on underlining the crucial significance of forging new, creative formats for partnerships between the public and the private sectors, and with civil society. It will be impossible to finance the investments needed in health, education and capacity building if we do not succeed in strengthening these emerging partnerships. The private sector must accept its public corporate responsibilities.

Fortunately, this is an area of quite rapid development. Last year, UN Secretary-General Kofi Annan launched his important proposal for a Global Compact between the UN institutions and the private sector in the areas of human rights, labour standards and environmental practices. The Secretary-General’s appeal is a call to action for all of us.

- In Norway we established the so-called "KOMpakt" in 1998. "KOMpakt" is short for the Consultative Body for Human Rights and Norwegian Economic Involvement Abroad. This body brings together the business community, trade unions, human rights organisations, the academic community and government agencies in focusing on how to promote human rights in connection with business activities abroad. They all have different roles to play in this regard. The consultations and joint activities enhance the possibility of exploring new partnerships in the promotion of human rights, while at the same time increasing the accountability of our own business enterprises and improving their performance.

Such measures on the ethics of economic behaviour will also contribute to our efforts in strengthening the fight against corruption, a cancer that is now eating away resources aimed at poverty reduction, creating new disparities in its wake.

The main responsibility for formulating national response strategies will always rest with national governments. In this conference, the importance of national ownership to policies has been stressed in many statements. Accountable democratic governments and the rule of law are vital elements in all development processes.

Mr. President,

A better future for all is clearly within our grasp. But will we have the courage and the leadership to seize it? We are linked by financial systems. We are linked by communications, by the environment and by trade. Migration knows no borders, crime knows no borders, drugs, war and peace know no borders. Nor do human rights. When will we finally realise that we live in one world?

There is no real alternative to strengthening multilateralism. We must work together to create a world based on the rule of law. A world where solidarity and social responsibility extend across borders and continents. A world where shared visions of greater opportunity and equity for all can be realised. A world where the globalization of wealth is accompanied by the globalization of accountability.

The alternative is a globalization of brutality.

We can no longer claim ignorance.
We have a moral obligation to care.
Let us act upon it.