Committee on development strategy adopts by consensus agreed conclusions on Third Development Decade.

Committee on Development Strategy adopts by consensus agreed conclusions on Third Development Decade

After what its Chairman called "unusually difficult and protracted' discussions, the Committee on the Review and Appraisal of the Implementation of the International Development Strategy for the Third United Nations Development Decade on 24 September adopted by consensus conclusions on the implementation of the Strategy. It also reaffirmed the continuing validity of the goals and objectives of the Strategy, which was adopted for the period 1981-1990.

Committee Chairman Kenneth K.S. Dadzie (Ghana), in analysing the work of the Committee, referred to "the deep concern of Governments at the unexpectedly serious setbacks to the world economy that have occurred during the first half of the Decade', and the importance that Governments continued to attach to the Strategy as a "valid framework for international co-operation in support of the development efforts of developing countries'.

Following adoption of the Committee's agreed conclusions, Egypt, on behalf of the "Group of 77' developing countries, called the document a "breakthrough' and a first step in future negotiations on money, finance, trade and debt.

The General Assembly in 1961 had designated the period 1961-1970 as the United Nations Development Decade. A second United Nations Development Decade began on 1 January 1971, for which an International Development Strategy was adopted. The Strategy for the Third Decade was adopted by the General Assembly on 5 December 1980, its main goal to accelerate the development of developing countries.

Some specific targets of the Third Decade Strategy are: an average annual rate of growth in gross domestic product of 7 per cent; a 7.5 per cent annual rate of expansion of exports and an 8 per cent annual rate of expansion of imports of goods and services; an increase in gross domestic savings to reach about 24 per cent of gross domestic product by 1990; and expansion of agricultural production and manufacturing output at average annual rates of 4 and 9 per cent, respectively. Developed countries are asked to increase their official development assistance to reach or surpass 0.7 per cent of their gross national products. Other goals are to attain by the year 2000 full employment, universal primary school enrolment, and life expectancy of 60 years, with infant mortality rates no higher than 50 per 1,000 live births.

A mid-Decade review and appraisal of the Third Decade Strategy was called for in the Strategy itself. The Committee on Review and Appraisal of the Strategy, a body with universal membership, was established in 1982 to carry out the process. It was to report in 1984 to the General Assembly, but was unable to meet that deadline. Work continued during 1985 until consensus was finally achieved on 24 September.

Conclusions

In its report, to be considered during the General Assembly's fortieth session, the Committee states that the Strategy "remains an important and valid document', which "represents the broadest consensus yet achieved in the international community on international co-operation for development'.

The Committee reaffirms that the ultimate responsibility for development rests with the developing countries themselves. The commitment of developed countries is to support the efforts of developing countries by endeavouring to make the international political and economic environment more conducive to development and through international co-operation to reduce the gap between developed and developing countries. The successful implementation of the Strategy, says the report, "will contribute to the establishment of a new international economic order'.

The Committee states that key targets for the Decade, set forth in the Strategy in 1980, have not been met: the growth rate of most developing countries was far below the 7 per cent target, and in many cases negative; in 1984, developing countries as a whole achieved a growth rate in gross domestic product of 2.9 per cent; on aggregate, output per capita in developing countries was 5 per cent less in 1985 than in 1980.

It points out, however, that in the five years since the adoption of the Strategy, industrial countries experienced a deep recession, many developing countries suffered economic crisis and decline, international economic relations were severely strained and many facets of multilateral economic co-operation weakened. The full dimensions of the critical economic situation in Africa and the international debt crisis were also not foreseen five years ago.

Second half of Decade: Assessing the Strategy's relevance for the second half of the 1980s resulted in some convergence of views on the nature of the processes that had brought about the present situation, the report states, "in particular the close interrelationships between money, finance, debt and trade and the need to enhance economic co-operation among nations'. Continuing analysis would be required of the policy implications of current account imbalances among major developed countries, of the transfer of resources from developing to developed countries, and of the implications of different development policies.

On the subject of trade, the Committee states, countries reiterate that "the international trade system should be characterized by generally accepted rules, norms and principles . . .' The principle of most-favoured-nation treatment and non-discrimination, and the principle of differential and more favourable treatment on a non-reciprocal basis of developing countries are cited. Bearing in mind the drastic negative effects on the foreign exchange earnings of developing countries caused by the depressed state of primary commodity markets, countries agree to try to improve export earnings stabilization schemes and to seek more effective co-operation in international commodity policy.

Efforts to increase the responsiveness of the international monetary system to the needs and interests of the developing countries "should be intensified through further reform of the system . . .' Ways and means to make the monetary system more stable should be explored. "Efforts shall be made to attenuate the instabilities associated with the functioning of the present exchange rate regime.' Countries agree on the need for "an appropriate mix of adjustments and financing' to achieve an orderly transition to the medium- and long-term goals of growth and development, according to the Committee.

As for the international debt problem, countries agree that there have been some positive developments such as multi-year reschedulings, lower rescheduling costs and cancellation or adjustment of the official development assistance debt of least developed countries. Countries will pursue a dialogue involving debtor and creditor countries, international private banks and multilateral financial institutions "in support of positive adjustment and long-term growth'.

Recognizing that access to financial resources is essential for the accelerated development of developing countries, developed countries reaffirm their commitments under the Strategy to achieving the target of 0.7 per cent of gross national product as official development assistance as soon as possible and, in any case, before the end of the Decade. In line with commitments under the Substantial New Programme of Action, donor countries are urged to attain 0.15 per cent of their gross national product in official development assistance or to double their official development assistance to the least developed countries in 1985 or as soon as possible thereafter.

In other policy areas, countries reaffirm their commitment to supporting capital formation in developing countries, which is fundamental to attaining the Strategy's targets. They will support the strengthening of industrial capacities of developing countries, and give priority to enhancing the capacity of developing countries in science and technology, energy, transport and other economic infrastructures. The eradication of hunger and malnutrition by the end of the century is of fundamental importance to all countries.

Concluding, countries agree that the promotion of peace, security, disarmament, mutual trust and co-operation "is indispensable to achieving the goals of economic and social development. It would permit the allocation of resources to social and economic, rather than to military, programmes which would greatly help to attain the goals and objectives of the Strategy'.

Table: Third Development Decade Strategy targets

Photo: The Decade's goal: a better life, a better world. Building a water storage tank in Bhutan.