Statement by Ms. Karu Nordheim-Larsen Minister of Development Cooperation

ECOSOC (United Nations Economic and Social Council)

Geneva 3. July 1997

Mr. President,

International co-operation must seize the opportunities offered by the process of globalization and at the same time curb its negative impacts. It is crucial to better integrate the developing countries, in particular the last developed, into the world economy.

Government policy is important both to the development of internal markets and for a well managed entry into the global market-place. Well functioning institutions and a sound economic framework must be established to encourage private sector development and foreign investments. The challenge for the poorest countries is to encourage investment and trade that contributes to their own development efforts. In the eagerness to attract investmnet and trade, no country should compromise the need to protect the environment and avoid exploitation of labour. The use of child labour is unacceptable.

At the national level, it is the prime responsibility of goverments to create a policy framework that is conducive to private sector involvement. Enterprise development is therefore of great importance. However, without macroeconomic stability, the rule of law, transparency and a market-oriented economy, both domestic and international investments will continue to be marginal. Education and basic health are also essential to the development process and must be given high priority.

Mr. President,

The complexity of today`s topic requries co-operation between the different development actors. International instiutions responsible for development and trade, must work together in a complementary manner. In this context I welcome the planned High Level Meeting on Integrated Initiatives for Least Developed Countries` Trade Development in October, including the proposal of an Intergrated Framework for Technical Assistance to support their trade and trade-related activities.

With regard to coherence between trade and environment policies, institutions like the WTO, UNCTAD and the OCD have been conducting studies and discussions for some years. From this, a common understanding and acceptance of the very complex relationship between trade and environment will hopefully emerge, and thus facilitate the development of multilateral rules and guidelines to govern this relationship.

Norway was among those that, prior to the Singapore Ministerial Conference last December, advocated the view that core labour standards should be raised within a WTO framework. We did so in an attempt to secure a multilateral and structured approach to this issue. The ministers in Singapore assigned the ILO as the competent body to deal with this challenge. We will closely monitor how this responsibility is attended to.

Mr. president,

The decrease in ODA during the last years is unacceptable. It is deporable that an unprecedented high global growth is followed by an unprecedented low level of ODA from the richest countries. I would again stress that it is vital that we adhere to the commitments made of the 0.7 per cent target. The richest countries cannot seek to impose conditions on development partners while at the same time not making the needed financial tools available. It is worrying that multilateral assistance is being reduced. I fear a development with an increasing gap between countries`rights and obligations within the multilateral system.

The poorest countries are in need of external assistance to finance basic social services and infrastructure, as well as capacity-bulding and competence. In this context we reaffirm and underline the importance of the implementation of the 20/20 initaiative as one means of securing adequate resources for basic social service for all.

I fully support the initiative for the heavily Indebted Poor Countries, the so called HIPC initiative, established by the World Bank and the IMF. I regard it as important that the international community seizes this opportunity to tackle the issue of unpayable debt once and for all.

Mr. President,

We are all facing the opportunities and challenges posed by the process of globalization. We all need to improve our management of this process - both on the domestic scene and at the international level. Appropriate multilateral mechatisms and rules are lacking in vital areas. We do, however, have a set of multilateral instituions that can play a more important role. Member goverments must agree to make them more relevant and efficient, and to provide the necessary financial and human resources. Globalization will then have thepotential to benefit all countries.

Mr. President,

The UN has an important role to play in creating an enabling environment for development. I will particularly point to the essential work in capacity building. In order for the UN system to be a more efficient tool and live up to its potential, comprehensive reforms are requried . I encourage and expect all UN agencies to paricipate actively and in good faith in the reform process. Turf battles among different agencies can no longer be permitted. I expect the Secretary General to present bold proposals on July 16, and he has Norway`s full support in his endeavours.

I thank you, Mr. President.