UNIDO IV conference adopts proposals to speed industrial development.

The Fourth General Conference of the United Nations Industrial Development Organization (UNIDO) ended in Vienna on 20 August after the adoption of proposals designed to speed industrial development in the developing countries as an integral part of promoting a dynamic world economy.

the Conference's proposals, contained in 15 resolutions, dealt with such topics as the development of human resources, the strenghtening of scientific and technological capacities, and energy and industrialization. Other recommendations dealt with the domestic industrial processing of raw materials, rural development and self-sufficiency in food supplies, the least developed countries, economic co-operation among developing countries, and the Industrial Development Decade for Africa.

With regard to the Industrial Development Decade for Africa, the Conference appealed to the General Assembly to increase its annual allocation to UNIDO for assistance to African countries to $5 million.

The Conference was unable to reach agreement on two draft resolutions--one relating to world industrial restructuring and redeployment, and another on the mobilization of financial resources for industrial development. The texts were forwarded for consideration by the General Assembly.

In the introduction to its final report, the Conference noted the difficulties the developing countries had experienced resulting from such factors as inflation, declining investment, protectionism, growing unemployment, an increase in the prices of essential imports, a sharp fall in prices of their raw material exports, high interest rates, and stagnating official development assistance.

Peace, security, disarmament and co-operation are indispensable for the achievement of economic and social development, the introduction stated. The Conference called for an end to protectionism, reversal of net capital outflows from developing to developed countries, and reform of the international economic system to provide "a more just and equitable framework" for developing countries to pursue their industrialization policies.

The Conference reaffirmed the commitment of the international community to the Substantial New Programme of Action for the 1980s for the Least Developed Countries and the Industrial Development Decade for Africa, and urged all countries, international institutions and others concerned to implement fully their commitments.

Industrialization, the Conference said, should encourage the effective mobilization and optimal use of human and material resources, promote internal structural change and adopt positive adjustment policies, strengthen links with other sectors of the economy, particularly agriculture, and broaden links between the public and private sectors and between small, medium and large-scale industry.

The Conference reiterated the mandate of UNIDO now and after its conversion to a specialized agency for providing effective and sustained co-operation with the developing countries in their industrialization efforts and underlined the need to provide UNIDO with the necessary resources. It further called for increased contributions to the United Nations Industrial Development Fund, especially from the industrialized and developed countries, so as to reach its agreed desirable level of $50 million a year as soon as possible.

The introduction to the Conference's final report was adopted by a show-of-hands vote of 79 in favour to 1 against (United States), with 12 abstentions.

Explanations of Vote

Following the vote, the representative of Switzerland, speaking on behalf of the developed market-economy countries, said that group sought measures to promote industrial development within UNIDO's mandate, but felt that issues such as trade, finance and the world economic situation were better handled by organizations and conferences dedicated to those subjects.

The Soviet Union, speaking also on behalf of the Byelorussian SSR, Bulgaria, Czechoslovakia, Hungary, the German Democratic Republic, Mongolia, Poland and the Ukrainian SSR said that the developed capitalist countries had tried to transfer to the developing countries the whole burden of the economic crisis. Demands for an increase in financial assistance for development purposes, including industrialization, should be addressed to the developed capitalist countries, which have the responsibility for the present poor economic situation of the developing countries.

Demands for fixed levels of contributions to the Fund for Industrial Development contradicted the voluntary character of the Fund, the Soviet Union said.

India, on behalf of the Group of 77 developing countries, said the Group had voted affirmatively for the introduction and reaffirmed its faith in the basic correctness of the Lima and New Delhi approaches. The Conference was ending on an "unhappy" note. The consequences of the conspicuous lack of success would neither help those who spent every ounce of energy and effort to arrive at a consensus, but at the last moment withdrew from earlier understandings.

The United States said it had voted against the introduction for reasons of principle and substance. The preambular text did not portray the facts of the world economic situation and outlook in a balanced and accurate manner. The introduction also attempted to deal with financial, trade and disarmament issues beyond the mandate of UNIDO and better handled in organizations specifically designed to address those issues. The benefits of the economic recovery now established in the United States were spreading to the developing countries which chose to put their economies in order, the United States said.

Ireland, speaking on behalf of the European Economic Community (EEC), expressed disappointment that the introduction had failed to achieve agreement. The Community agreed on many parts of the introduction. However, the text did not give equal weight to some of the varying points of view which had been expressed.

Resolutions adopted

The Conference's recommendations were addressed to Member States and the United Nations family. Several recommendations were addressed directly to UNIDO, which is about to assume the status of a specialized agency.

Of the 15 resolutions adopted by the Conference, three were voted upon. The Conference adopted a resolution on the cessation of the war in the Gulf by a show-of-hands vote of 44 in favour to 1 against (Iran), with 43 abstentions. By a roll-call vote of 70 in favour to 2 against (Israel, United States), with 21 abstentions, the Conference adopted a resolution on assistance to the Palestinian people. By a show-of-hands vote of 66 in favour to 6 against, with 21 abstentions, the Conference adopted a resolution on technical assistance to southern African national liberation movements recognized by the Organization of African Unity (OAU).

Among other measures, the Conference:

* Invited developing countries to review their basic education systems, in order to respond to changing industrial manpower needs, while placing more emphasis on science and technology;

* Recommended action to eliminate the negative effects of the "brain drain" from the developing countries, and to promote the repatriation of skilled workers and professionals from the third world;

* Urged developed countries to increase their voluntary contributions for accelerating the development of developing countries' human resources for industrialization, as well as their contributions to the Industrial Development Fund; and

* Urged co-operation in order to complete the international codes of conduct on the transfer of technology and on transnational corporations.

The Conference recommended that UNIDO assist developing countries at their request in designing projects to promote national research and development capacities; to promote technological co-operation between enterprises of all countries; to identify and promote the use of energy-related technologies and equipment; to help developing countries process technological information and build up their technological capabilities; and to promote an international referral system for the identification of high-level scientists and technologists.

It was also recommended that UNIDO should promote domestic processing of raw materials in developing countries.

By a resolution on women in industry, the Conference called on member States to promote the increased participation of women in industrial development, both by integrating their participation in the design and implementation of industrial development activities and by supporting specific projects for women. It recommended that UNIDO's field representatives assist national Governments in such efforts.

On the question of assistance to Lebanon for the reconstruction of its industrial sector, the Conference requested UNIDO to provide Lebanon with immediate, medium-term and long-term assistance and called upon Member States to assist UNIDO in its efforts in that regard.

In another resolution, the Conference reaffirmed the commitment of the international community to the Substantial New Programme of Action for the 1980s for the Least Developed Countries, and urged all to fully implement their commitments under the Programme. All countries in a position to do so, and developed countries in particular, were called upon to promote the transfer of technology. Those same countries and international organizations were also invited to continue to provide financial, technological and material assistance to the least developed countries in the processing of domestic raw materials, development of human resources, including entrepreneurial and management capabilities, utilizing existing industrial capacity and surveying resources.

In its resolution on the Industrial Development Decade for Africa, the Conference expressed its appreciation to the General Assembly for its decision to allocate to UNIDO $1 million from the regular budget of the United Nations for assistance in 1984 to African countries and intergovernmental organizations in programmes for the Industrial Development Decade for Africa. The Conference noted the appeal made by the Seventh Conference of the African Ministers of Industry that the allocation by the Assembly for the Industrial Development Decade for Africa should be increased to an annual minimum level of $5 million and put on a permanent basis, and invited the Assembly to consider that appeal.

The Conference requested UN IDO to assist African countries and organizations in formulating industrial strategies, policies and plans with particular emphasis on those which give support to core industries; developing industrial manpower; developing industries based on locally available natural resources, especially those promoting self-sufficiency in food supplies and creating employment in rural areas; promoting intra-African co-operation in industrial development; developing energy technologies, equipment and appliances for industrial development; and publicizing their opportunities for industrial investment.

In a closing statement, the President of the Conference, G.W. van Barneveld Kooy (Nertherlands), said it was a pity that consensus was not reached on all texts. The Conference was on the right track, however; it should be measured not only by the results but by the spirit which prevalied, despite the differences which existed.

The 18-day Vienna Conference, attended by 139 countries, ended a day late with the United States alone voting against the Conference's final document, which it called "inaccurate and biased". Twelve nations abstained on the final document.