A/32/PV.109 General Assembly

I call now on the Secretary-General. REPORT OF THE SECOND COMMITTEE (PART 11) (A/32/480/Add.l)

I now invite representatives to turn their attention to the draft decision recommended by the Second Committee in paragraph 16 of its report [A/32/ 480/Add.1]. In the Committee no vote was taken on that draft decision. May I take it that the Assembly adopts the draft decision?

The General Assembly has just taken a most important decision. This resolution constitutes the culmination of a long and arduous process of deliberation in which all Member States had an oppor- tunity to participate fully. In this context I should like to express my deep appreciation to the members of the Ad Hoc Committee on the Restructuring of the Economic and Social Sectors of the United Nations System and to pay a warm tribute to its distinguished Chairman. Ambassador Kenneth Dadzie. for their tireless and dedicated efforts, which have enabled us to achieve this important result. 7. The conclusions and recommendations of the Ad Hoc Committee [see A/32/34] should be judged in the light of the special set of considerations and circumstances in which the restructuring exercise was undertaken. 9. Secondly, the de!iberations of the Ad Hoc Committee were conducted against the background of the record of achievement of the United Nations system in the economic and social fields. Present difficulties should not obscure the fact that over the last 32 years multilateral development co-operation has involved a dynamic evolution of goals and ideals., institution-building and co-operative action designed to satisfy man's deepest aspirations to peace. justice and dignity. The recommendations of the Ad Hoc Committee quite rightly advocate building on such achievements in order better to meet the challenges of the future. 10. That having been said. we must also remind ourselves of an established truth, one which I have underlined whenever I have discussed the restructuring process: that the success of an international institution, and even more of a network of international institutions such as the United Nations system, depends above all on the determination and the political will uf its member Governments. I am sure that the members of the General Assembly share my conviction that the hopes wltich are placed in the restruc- tured system will only be realized if there is appropriate action by Governments as part of a collective effort. Restructuring and reform will not compensate for lack of the political will to act. 11. In my view these considerations are fundamental in developing our perception of the manner in which more effective means, mechanisms and \vorking methods should be gradually put into effect, of the direction in wltich existing approaches and attitudes should change, and of the way in wltich institutional relationships should evolve or be strengthened. 12. The increasingly important role that the General Assembly has played over the years in the economic and social fields has been fully recognized. There is scarcely a problem connected with development which !)as not been the subject of analysis, debate and recommendations by the Assembly. What is important now-and this is h.ow I read the conclusions of the Ad Hoc Committee-is to ensure that the General Assembly, as the highest body for policy- making. should broaden its influence in order that each and all the components ofthe system can make a more effective contribution to the new international economic order. The Assembly also has a special responsibility to ensure that the principles and objectives of the new international econontic order gain increasing acceptance in the general thinking and practice of Governments and in public opinion throughout the world. This. in turn, requires a clear understanding of the changes that the negotiating and decision-making 14. Finally. I welcome the recommendations made by the Ad Hoc Committee regarding the Secretariat. They consti- tute a sound basis on which appropriate measures can be taken to serve the objectives of the restructuring process. As chief administrative officer of the Organization, I am conscious of the challenge that the present tasks of the Organization represent for the Secretariat and I shall take all the necessary steps for the prompt and effective implementation of the relevant recommendations. There is no doubt in my .. mind as to the important role that the Secretariat must play in a dynamic and imaginative search for means of ensuring the realization of the hopes and aspirations of all the peoples of the world.

I call now on the representative of Jamaica, who will speak on behalfof the Group of 77.

Mr. President. in the light of the very important eC()ilomic issues wltich have come before this thirty-second session of the General Assembly, I have sought your permission to make a statement at this stage on behalfof the Group of 77. 17. This session of the Assembly has been in some respects an unusual one and, I believe, in the view of many of us a particularly significant one. It has taken plac~ in the context of what could well turn out to be major shifts in the form and character of a number of important issues- ranging from the Middle East situation to the affairs of southern Africa, from the approach to the issue of human rights to the question of international economic co- operation. 18. The session came at a time when the question of the future of the United Nations system had been uppermost in the minds of many, and in the face of renewed expressions both of doubt and of hope conceming the capability of this institution to meet in an adequate way the requirements of the global community. 20. I think that most of us came to this session of the Assembly in a mood of deep concern regarding the position of the dialogue and negotiations on the new international economic order. Considerable efforts have been made throughout the past year-in the United Nations system, and at the Paris Conference on International Economic Co-operation-towards achieving some progress in the implementation of those fundamental proposals which had been put forward in the preceding years at the sixth and seventh special sessio.1s of the As~embly. 21. The results of those efforts-in the view of developing countries and others-were extremely limited and thor- oughly disappointing. 22. At the resumed thirty-first session of the General AssemblY,3 held shortly before the start of this session, we attempted to arrive at some understanding of the outcome of our efforts and some decisions regarding the way in which we would proceed in future negotiations. The failure to come to any agreement at that short resumed session did nothing to change the mood of real concern centring in particular on the serious disappointment over the Paris Conference. 23. The statements made by delegations of developing countries as well as some others in the opening weeks of this General Assembly emphasized that growing concern and disappointment. 24. It was strongly felt by developing countries that negotiations, in whatever forum they might take place, inevitably would come to the point of failure over the issue of structural change in the international economic system. And indeed, that is the. very heart of the proposals for the new international economic order. For it is the structure of the system which has placed developing countries in a position of grave disadvantage and which prevents them from participating on a just and equitable basis in global economic activity. 25. The matter of the need for structural change has become over the past year more clearly identified as the basic issue in the dialogue and negotiations between developed and developing countries. This, then, is one of the major elements which formed the point of departure three months ago of this General Assembly. 26. But there are other concerns which h~ve emerged more clearly. The condition of the international economic system continues to be a source of real concern and it is now becoming apparent to many in industrialized countries that their economies are beset by deep-rooted problems which call both for structural change internally and for serious adjustment in the relationships with developing countries. Indeed, some of the statements being made within industrialized countries sound very much like a 27. Reference to these developments was made in the general debate in the Second Committee, and in fact found a place in the statement made at the opening of the debate by the Under-Secretary-General for Economic and Social Affairs.4 28. Developing countries, in the face of their own growing problems and the disappointments in regard to the negotia- tions on structural change, have seen more clearly the extent of the effort which they must make for their own development and in the matter of collective self-reliance. They see these both as necessary in the interests of their own progress and as a means of strengthening them in their pursuit of the goal err global restructuring and economic justice. ..' 29. I be~ieve that, in regard to these matters, the work of the Second Committee at this session of the General Assembly has been of particular significance. One of the major issues with which that Committee had to deal was the manner in which future discussions and negotiations on the new international economic order would be conducted. On this question the Group of 77 sought to ensure the reaffirmation, in the clearest possible manner, of the role of the United Nations as the forum within which all negotia- tions of a global nature relating to the establishment of the new international economic order should take place. We sought the establishment of appropriate machinery and, in particular, of a committee, with universal membership, which would oversee and monitor the implementation of decisions and agreements reached in this matter, and which would, under the authority vested in it by the General Assembly, seek to overcome major obstacles in the way of progress in negotiations in the various United Nations bodies. 30. The discussions which took place in respect of these proposals revealed significant differences of view and of approach. But they have been constructive and cordial-and the resulting proposals which have come to this plenary meeting in the form of a draft resolution approved by consensus in the Second Committee, represent a major step in the process of preparation for what we in the Group of 77 hope will be a more rewarding dialogue. They place clear responsibilities on the various elements of the United Nations system and on all delegations in the matter of a more meaningful search for concrete progress on the most vital issue ofinternational economic co-operation. 31. The Assembly at this session was also called upon, by way of a proposal put forward by the Group of 77, to take account of the most serious situation arising from the failure of the second session of the United Nations 4 Ibid., Tllirtv-second Session, Second Committee, 3rd meeting, and ibid., Second Committee, Sessional Fascicle, corrigendum. 32. i now come to that issue which has been the subject of a considerable amount of work over the past two years. namely, the restructuring of the economic and social sectors of the United Nations. This exercise. as we know, has been designed to equip the United Nations to play a leading and dynamic role particularly in the matter of the establishing of the new international economic order. Work on this question was completed in the Second and the Fifth Committees and the matter has come today to the plenary Assembly and a fmal decision has been tak.en. 33. Developing countries have seen this work on restruc- turing as the first real opportuniJy they have had, as relative newcomers to membership in the United Nations, of participating in the shaping of the system in an area of fundamental importance to them. Their approach to the long-drawn-out discussions and negotiations on the subject and their strongly held views on a number of aspects of the matter derive from this fact. 34. We believe that a strong and well-articulated United Nations system is in the interests of all countries. A major element in the recommendations of the Ad Hoc Committee on Restructuring is the reaffirmation of the position of the General Assembly as the principal forum for policy-making and harmonization of international action in respect of the solving of international economic, social and related prob- lems. 35. The proposals coming out of the discussions on restructuring provide, as was intended, a basis for initiating the process of making significant improvements in the United Nations system: with their approval by this Assem- bly, the implementation of the proposals can begin. In participating in the discussions on this subject over the past two years and in the deliberations in the Ad Hoc Committee, the resumed sixty-third session of the Eco- nomic and Social Council and the Second and Fifth Committees in the past week, the Group of 77 has shown 5 See Proceedings ofthe United Nations Conference on Trade and Del'elopment, Fourth Session, vo!. I, Report and Annexes (United Nations publication, Sales No E.76.II.D.I0), part one A, resolution 93 (IV). 36. The Group of 77 has also indicated very clearly its understandings in regard to some of the major elements in the proposals. We therefore look forward to the imple- mentation of the recommendations in the spirit of the consensus which has been reached. In that connexion, ! wish to thank the Secretary-General for the statement which he has just made and to assure him of the full co-operation of the Group of 77 in carrying out the reorganization of the United Nations. 37. I have sought to touch upon some of the issues of crucial importance with which this Assembly has been concerned. As we approach the closing moments of this session, I express on behalf uf the Group of 77 our determination to continue to give our best efforts to the effective functioning of the United Nations system and to resolving the major problems which face the global com- munity. In particular, we renew our commitment to the restructuring of the international economic system and to the buildilig of a more equitable and just economic order in the interests of all peoples. 38. Let me end by saying that in view of the particular importance of this session of the Assembly, Mr. President, we have indeed been fortunate to have had your leadership and guidance.

As an old timer who has watched the work in the Second Committee for many years, I find it is my duty to be candid with this Organization. With all dui,; C"espect for the report that we have just heard from the representative ofJamaica and any of the statements that have been made on behalf of certain groups in the Committee or elsewhere-in the European ECGnomic Community for instance-on a regional basis or, I should say, on the basis of groupings-because Japan, for instance, is not in Europe but there are certain sorts of understandings between the industrialized European coun- tries and Japan-all this has been a front, whether that front was created or built by the industrialized countries or the so-called developing countries. Let us see what the facts are. 40. I tbink I have the right to draw the attention of the international community to parallels from the past to what happened in the I ~~:cs, not only in Europe but in the whole world, a good part of which was formed by the colonial territories ofsuch metropolitan States of Europe as the United Kingdom, the Netherlands and Belgium, and all those countries in Europe that had colonies, with the exception of Germany, whose colonies were taken away from it after the First World War, including what is known as South West Africa. 41. I myself witnessed the financial disarray in the 1920s, when I had to leave the Middle East for political reasons and to look after some family business in Europe. I saw the havoc which inflation and unemployment wrought in 1929-so much so that in the Weimar Republic a trillion marks were the equivalent of a dollar. I witnessed how 42. We find that the countries of the European Com- munity are at odds with one another and even the United States-I want to be frank-is taking issue with Japan, as Mr. Roosevelt did in the 1930s when he pleaded with Japan and sent ultimatums calling on Japanese not to produce goods that could be sold cheaper than American goods. History is repeating itself. Now we hear that the host country is sending emissaries and financiers. so-called economists, to Japan asking that Government to spend its reserves so as to create-what? -prosperity! 43. I am not picking on the host country. I can cite chapter and verse for what is going on in Europe. But because we happen to be in this country, I mention the host country and what it is doing, that is, sending word to Japan and to West Germany to spend some of their reserves in order to solve ~what? The Great Depression'? No. We are on the way to a recession, a deep recession, the whole world over-and one which is significant because. speaking from my humble experience in finance, I may say that in the past recessions have meant lower prices and deflation. The situation is serious now because of unemployment and rampant inflation. The dollar received by all. from the Secretary-General down to the conference clerks. is worth barely 50 cents in Swiss francs. And do not think the Swiss ar~ happy, because they have a price inflation. And the French have a price inflation through that value-added tax of 20 per cent or 30 per cent on manufactured goods. Whom are we fooling here? 44. Reams of paper! I commiserate with that genius from Austria Mr. JankO\vitsch. He must have had the patience of Job to listen to all those theories frum all those groupings. each one saying how to establish a world order with rapp_.:t between the developing countries and the incustrialized countries. There is no rapport inside the areas themselves! There is dissent among the groupings of the industrialized countries, and I dare say there are many differences among the developing countries. 45. How do you want to establish a ne\v world order. just on paper? Then you ask, "What is the alternative'? What shall we do, keep our arms folded and do nothing? " No, we can do things: we can prevail on all Governments not to repeat what they did during the last 50 or 60 years, spending too much on armaments-some S300 billion. We can prevail on them to tighten their belts. as the Federal Republic of Germany has done and as Japan is doing. instead of taking issue with them and trying to divert the attention of certain people in some States as thOUgll they were misers, keeping their money and not spending it. What is wrong with being thrifty. as individuals or as nations? 46. It is said that there are population pressures; the populations will revolt and upset the system. and that is 47. The middle class. or the technocrats-if the Russians do not like the term '"middle class"-are beipg robbed. By whom? By Governments. Maliciously? No. unwittingly, unintentionally. 48. Here there are reams of paper: I have looked at them, and I was flabbergasted to see all the words spen[ without any result. Then what is the alternative? A message from an cId-timer. through my cGileagues. to tell our respective Governments not to spend far beyond their revenues. 49. Lord Keynes. whom many follow. is passe, deja vu, and his theories cannot apply. He said during th~ depres- sion- and this country. the host country. Gnd Britain at that time and others follO\vcd suit-"You may engage in deficit spending in a crisis. in times of emergency." Tell me. what country has not considered it a "time of emergency" since the end of the Second World War? 50. The Second World War momentarily ended the depres- sion because everybody was marched to the battlefield. Hence. politics revolves around economics. On.ce when I made such a statement my good friend Yakov Malik said. "This is Marxism". I said to him: '"This \vas before Adam and Eve." 51. \\I11at shall we do about it? Continue and talk of the Decade and of monitoring some things that do not exist? I feel impelled to draw the attention of my colleagues here to these facts that I dare anyone to refute. They are facts that cannot be refuted; they are not economic theory. Remem- ber there is no such thing as the science of economics or the science of so.:iology. There are only pure sciences. We cannot knO\\." the action cnd interaction of human behav- iour in the financial and economic field because there are so many imponderables: even nature sometimes interferes-a drought or a catastrophe. let alone a war. 52. The world is in great economic and financial disarray and our politicians or those who are in the seat of power-and I am not using the connotation of a politician as a man who is dishonest; no. we need politicians to regulate power. law and orde- everywhere-are surrounded by economists, college professors. who know the theory marvelously well but in practice have been doing nothing. They created the World Bank. and before that the Federal Reserve Bank and the Central Banks of Europe. to co-ordinate economic matters, but they have failed because . of the simple adage that finally you become insolvent. collectively. individually. or as a State. if you spend more than your revenue. TIle Keynesian policy. which is some- times followed. applies only in times ofemergency. and not all times can be considered as "emergencies". 54. That is the message I have. 55. I appeared only once in the Second Committee and-after observing what was going on-I saved my remarks for this occasion when I could do justice to the honesty and efficiency with which many representatives applied themselves, whether they belonged to the Group of 77 or any other group, whether they were Europeans, Asians or Africans, whether from the South 0: from the North. All that is academic. What a:~ we going to do? 56. We are diplomats, anti we have instructiom~ from our Governments, but we should also have eTl0ugh faith that our GQvernments trust us to tell th::m what we think. Governments are not bound by what we say, but at least we would have acquitted our consciences in our effort to see that we follow saner economic and fiscal policies in every country all over the world, lest-God forbid-we have more fiscal calamities. 57. We here are well fed and well dothed, and we are diplomats. But look at the world. The poor, the activists, the kidnCtt'I'ers and the terrorists will nmltiply. They are disenchanted hecause of the fmarlcial disarray- disillusioned. Some of them are not in want, but they desire a better order based ~n humanity and solvency. 58. That was the message I felt impelled to deliver. I ask the indulgence of my colleagues here for having been patient with me in making my point, and I hope it will not be lost on them

I now invite the Assembly 11. turn its attention to part V of the report of the Second Committee on agenda Hem 12, entitl~d "Report of the

That concludes our consideration of all the items allocated to the Second Committee. I should like to offer my congratulations to all members of that Committee for the perseverance and dedication with which they applied themselves to the tasks before them. I thank them on behalf of the General Assembly.

The Fifth Committee 1.; still meet- ing and, in order to allow the Cormaittee to complete its work and for the documentation to be processed and properly circulated, it has become necessaI)! to hold a plenary meeting tomorrow morning, at which time the General Assembly will consider the eight reports of the Fifth Committee and other remaining agenda items. Under the circumstances, may I take it that the General Assembly agrees to an extension of this session until tomorrow? The meeting rose at 5.45 p.mo 6 For part I of the report of the Second Committee on agenda item 12, see the 34th meeting, paras. 1-15; for part II, the 101st meeting, paras. 123-146; for part Ill, the 103rd meeting, paras. 12 and 17-20; and for part IV, the 107th meeting, paras. 2 and 10-32. 7 For decisions 32{443 A and B, see the 107th meeting, paras. 31 and 32, respectively.