A/33/PV.39 General Assembly

Durable peace and the maintenance of such peace and the economic and social development of the peoples are the' 10. We are in the midst of turmoil and the gap separating,- the developing and the developed countries is increasing. All these tendencies point to the urgent need to adopt immediate measures. The international community must do this in order to achieve equitable and durable solutions to problems which are a threat to international peace and security. 11. The international economic situation is one of the fundamental problems confronting the international com- munity because of the inequity and because the present basis of the world'economic order, which was established at Bretton Woods in 1945, is completely unjust. 13. The world is going through a very important stage of history, a ,stage of co-operation among States, inter- dependence and collective autonomy, in which the interests of any are <;lirectly or indirectly linked to the interest; of all. This historic phase demands firm solidarity among all States, big and small, rich and poor; we must all strive to resolve the problems which confront us all. 14. The tragic conditions of life in so many countries of the third world should not be ignored. The small benefits they enjoy and the enormous and increasing gap between the poor and the rich countries must be corrected. The developing countries are making very little contribution to international production (13.9 per cent), and yet their people comprise the largest part of the world population, while the developed countries are responsible for 65.7 per cent of the whole of the international production of the world. Moreover, the developing countries' share in inter~ national trade amounts to less than 25 per cent, while their share of exports fell from 30 per cent of the world's exports in 1950 to 23 per cent in 1975. 15. Despite the fact that some developing countries have accumulated fmancial resources due to the:r exports of their natural resources, however, the economic problems of the developed countries, such as inflation, unemployment, balance-of-payments deficits and international monetary fluctuations had a very negative impact on the real value of the financial assets of the developing countries, which has fallen, and the economic situation, which is certainly not equitable. There is a serious imbalance a!ld the iI,terests of most countries in the world are not being taken into account. These economic conditions serve the interests only of the very few countries that control the world economic situation at present. The situation is changing now because so many developing countries have made considerable progress, economically and politically, and it is now necessary to introduce fundamental changes in tlie world economic system which was established at Bretton Woods. 16. This new reality was highlighted at the sixth special session when the General Assembly on 1 May 1974 adopted the Declaration on the Establishment of a New Inter- national Economic Order [resolution .)201 (S-VI)} as well as a Programme of Action to apply certain measures [resolution 3202 (S- VI)}. Those important resolutions were adopted in 1974 when the General Assembly affirmed that the present international economic order was certainly incompatible with recent development in international political and economic relations. The General Assembly called for the establishment of a New International Eco- nomic Order which would be br-sed on equity, justice and co-operation among all States so as to put an end to economic disparities and to enlist the participation of all . countries of the world in the solution of ecofll)mic problems in view of the necessity for the development of the developing countries. Also stressed was the need to encourage development and to respect the right of all peoples to choose a political and economic system for their own country. The General Assembly also drew attention to 17. If we consider in dapth the condition of international relation~' after the conclusion of the special session of the General Assembly and the situation as it prevails now and look for the reasons which have impeded the establishment of a new economic order, and if we study the negotiations which have been carried out during all that time, for example, the North-South dialogue in Paris and the negotiations that began immediately after the meeting of the Com:r-ittee of the Whole, which was set up by resolution 32/174, we shall see that the main reason for the lack of progress was the refusal by some developed countries to engage in genuine negotiations for the estab- lishment of a New International Economic Order or to undertake fundamental changes in their economies. They did not wish to undertake any specific commitments in that respect but wanted to contain the negotiations within the framework of exchanging views. Some countries even refused to honour their commitment to try to achieve the objective of development and to set aside 0.7 per cent of tLeir gross nati.onal product for official development assistance. 18. We note that the assistance of the developed countries to developing countries has decreased and that the decrease has been considerable over the past three years. Statistics have shown that this assir.. ,nce has decreased from 0.34 per cent in 1971 to 0.30 per cent 3n 1977.1 The recent policies pursued by the industrialized countries mak~ it extremely difficult to achieve the development assistance objective by 1980, an objective which, however, is part of the Inter- national Development Strategy [resolution 2626 (XXV)] .. This situation, of course, has resulted in a large reduction in the imports of the developing countries. The countries which have suffered the most have seen their imports decrease by approximately 2 per cent between 1970 and 1976, and this has had a strong effect on their development plans. Moreover, this decrease in assustance has led many developing countries to obtain credit from the international financial market. Of course we have the problem of indebtedness r.nd its servicing, which has become quite serious and which is becoming increasingly serious in many countries. 1~. Studies have shown that indebtedness amounted to $250 billion in 1977 and that the servicing of that indebtedness absorbs approximately 25 per cent of the income from the exports of the developing countries. If we compare the indebtedness with the volume of exports, which amounted to $137 billion in 1978, we note that the problem of indebtedne~.; is one of the fundamental prob- lems and a main impediment in the North-South dialogue 20. The problem of indebtedness is related to other economic problems, such as the improvement of conditions under which the developing countries can have access to world markets. Tariff barriers should also be eliminated as well as protectionist mea~'lres; the target of official development assistance should be achieved; the process of transferring financial resources on easier conditions should be ensured; all impediments to access to the financial markets and to the undertaking of fundamental changes in the international monetary system should be eliminated; and a relationship should be established between special drawing rights and development finance. 21. In this connexion, my delegation is pleased to note that some industrialized countries have cancelled their loans to the least developed of the developing countries by converting them into grants. 22. Increased assistance to developing countries and a reduction of indebtedness will make it possible for the developing countries to achieve a growth rate which would be more satisfactory both economically and socially. That would enable the developing countries to purchase impor- tant commodities from the developed countries and this will, in turn, assist the balance of payments of the latter countries. 23. The recent introduction of tariff, and non-tariff barriers, as well as other restrictions on quota exports and voluntary export restraints, which were imposed with regard to many important products of the developing countries, are factors which have aggravated the situation even more, so that the exports of developing countries to developed countries have not improved but on the contrary have actually rapidly decreased. 24. The developing countries which export oil, of which Libya is one, are convinced of the need to give financial assistance to the other developing countries, and especially to those that are least developed, so that it will be possible for them to overcome the obstacles which have been created by these inequitable conditions. We have given bilateral and multilateral aid to the poorer countries, without any political conditions or individual aims and objectives and in convertible currencies. The oil-exporting developing countries have given much greater assist~mce than have the industrialized Western- countries. Three per cent of the gross national product of the oil-exporting countries has been used for that purpose, in addition to its contribution to internat;onal financial organs and to other sources of financing. 25. The oil-exporting countries have given that assistance because of their feelings of solidarity with the other developing countries. Development is something in which we should all participate because our responsibilities are based both on local and on international relationships of 26. There has also been a considerable increase in the price of the industrialized products which the oil-exporting countries have to import from the industrialized countries. As imports represent a high percentage of the gross national product of the oil-exporting countries, losses are therefore taken by those countries because of the considerable increase in the prices of industrial products im~orted from the industrialized countries. For example, imports represent 20 per cent of the Libyan gross national product, and this can be said of most of the oil-exporting developing countries. 27. Others say that part of the cause is the problem of indebtedness too and this again, as is said by some, is due to the increase in the oil prices in the years 1973 and 1974. We can only say that this is not founded on truth. This is merely an attempt on the part of the industrial Powers to try to find a scapegoat on whom to put the blame and also to evade their own responsibilities vis-a-vis the developing countries. We know that the Western countries had con- siderable economic difficulties even before the increase of the oil prices. The oil-exporting countries were obliged to increase the price of oil, in order to face the high increase of inflation. While the cost of imports by the oil-ex1?orting countries has increased by 35 per cent, the actuld ~ffect of the increase in oil prices was only equal to 2 per cent if one considers the over-all movement of prices of the main imports and exports in 1974. To this we can add that the price of oil has been increased only once and there has been no further increase, while the prices of manufactured goods have been going up continually. So we can say that the actual price of a barrel of oil is now only approximately one half of what it should be. Thus, one can conclude that the developing countries are more vulnerable to the phenomenon of inflation than the industrialized countries are vulnerable to oil price increases. 28. Many of the oil-exporting countries are developing countries themselves. Nine of them are considered net borrowers, according to the statistics of the World Bank and UNCTAD. They still lack the necessary economic infrastructure and that makes it necessary for them -to reorient enormous investments in order to achieve the objective of a better infrastructure, and yet the oil- exporting countries continue to give generous assistance to other developing countries. Moreover, they have con- tributed to the stabilization of the world economy by not increasing oil prices at a time when all the industrialized goods that they are importing have been going up in price all the time, and by continuing to use the dollar as -the account unit for oil transactions, despite the deterioration in the value of the dollar and its slump on international markets, which has meant that the oil-producing countries have suffered serious financial losses. Now all the oil- producing coun'i:nes have made some efforts but unfor- 29. As to the relation between the price of oil and the debt problem of developing countries one can see that many studies demonstrate the fact that changing the price structure of oil is only responsible for a small part of the debt problems of these countries. The debt problem was there all the time and the situation has worsened because of the economic recession and because of the increase in the rate of inflation, the imbalance in the world monetary system and the decrease in the financial revenues from exports of developing cQuntries. 30. This is due to the fact that the exports of the developing countries have no access to the markets of developed countries and, because of the various protel,~tive trade barriers that have been established, what has hap- pened is that the economies of developing countries have been impaired. This is an 'lbstacJe not only to international economic development bat also to political stability throughout the world. 31. The President of the World Bank in his report of 25 September 1978 to the Board of Governors demonstrated this serious trend, when he said: "The truth is that throughout the industrialized nations this trend towards protectionism is gathering momentum."2 The President added and we completely agree with him: "Excessive protectionism is not only unfair. It is self-defeating."3 Excessive protectionism must come to an end. 32. The Secretary-General was correct in his annual report on the work of the Organization when he demonstrated the main causes for the worsening of the present economic situation. He states: "Most developing countries continue to suffer from the adverse effects of fluctuations in commodity prices, aggravated by uncertainty resulting from continuing exchange rate instability. The failure of developed coun- tries to achieve sustained economic recovery has resulied in reduced demand for many raw materials exports of developing countries while the inadequate level of finan- cial transfers and the continuing inflation in prices of the manufactured exports from developed countries have put intense pressure on the balan~:e-of-payments position of a large number of developing countries." [see A/33/1, sect. IX.] 4 33. If we ilre to solve the tremendous problems con- fronting us on the basis of genuine determination, their solution must be envisaged within the general context of the establishment of a New International Economic Order because there can be no doubt whatsoever that the present order makes it impossible to solve the problems that have 2 Robert S. McNarnara, Address to the Board of Governors (Washington, D.e., International Bank for Reconstruction and Development, 1978), p. 8. Quoted in English by the speaker. 3 Ibid., p. 9. 4 Quoted in English by the speaker. 34. In many developing countries, and even in some developed countries there are privileged minorities benefit- ing from the wealth of the country whereas the broad majority are on the edg~ of the precipice. We must all begin to work together. We are calling out for these fundamental changes in the international economic system. The way the international economic system operates emanates from the very core of each country. This is an important truth that has been realized by my country and thus has modified its internal structure so as to reduce the gap separating individuals and so as to raise the standard of living of all the people of the society. 35. It is obvious that economic and technical co-operation among the developing countries is a new dimension in the international structure. It is an important point in the establishment of the constructive spirit that must reign among developing countries so that they may consolidate to work together to meet their national requirements, to enhance the political and economic relations and the productive capacity of those countries, to solve their development problems and to make possible the imple- mentation of their economic and social development policies. 36. The efforts undertaken by the oil-producing de- veloping countries including my own, in rendering as- sistance, and to benefit from the experience and potentia- lities of other developing countries are indeed, along the lines of such a concept and the efforts undertaken to establish a New International Economic Order. 37. The experience that has been acquired over the past few months in the Committee of the Whole clearly points to the lack of political will evinced by some developed countries. Such lack of will makes it difficult to make contacts and to adopt important decisions on the establish- ment of a New Internationid Economic Order. On the other hand, the developing countries have constantly pursued these negotiations and have demonstrated their flexibility and their willingness to change their positions so that a consensus acceptable to all might be reached; thus the Committee of the Whole would thereby be in a position to discharge the mandate entrusted to it in General Assembly resolution 32/174. 38. The question of taking decisions in the Committee of the Whole is, in our view, not only a matter of procedure but also a fundamental issue. The Committee of the Whole has a responsibility to monitor progress made in the process of implementation of agreements and undertaking negotia- tions to reach necessary political decisions on matters .that are pending and have thus impeded the establishment of the New International Economic Order. The Committee of the 39. The so-called duplication of work umi~rtaken by the Committee of the Whole and by other specialized bodies is merely an impediment to the work that could be done by the Committee of the Whole. The developing countries have stressed that the Committee's work shculd not impede the work of other bodies; it should play the role of enhancing and strengthening the work of those bodies. This can be done through taking clear political stances which will assist those bodies to solve the fundamental issues listed on their agenda. Studies should be undertaken to determine political stances. All the work that has been undertaken by a few countries has indeed been undertaken in order to avoid the true responsibilities arising from tb-a establishment of a New International Economic Order, as well as to take the negotiation' from the framework of the international Organization and enclose it within organs which they dominate and which they can direct in conformity with their interests. 40. The General Assembly has asserted that the United Nations system provides the only context within which all international negotiations should be conducted towards the establishment of a New International Economic Order and that all States should participate in the decision-making process on an equal footing. 41. Despite the pessimism that has imprinted itself upon the attitudes assumed by some States, we view the future negotiations to be conducted in the Committee of the Whole and at forthcoming international conferences, such as the resumed Conference on the common fund,S the fifth session of UNCTAD and the United Nations Conference on ScieI1ce ?>:ld Tech;lology for Development, in a spirit of optimism-yes, optimism, because we must not lose our confidence in the value of mankind and its qualities and the fact that it is necessary to ensure equality and equity among all. But we must be c.autious because the experience we have acquired at the previous conferences and the decisions that have been taken with a view to ensuring the well-being of all peoples were disappointing and were not on the level of the collective responsibility of all countries. What we need right now is not words or good intentions. We need the real work and the political will, particularly on the part of those countries in a position to contlibu"e the necessary aid-that is, the industrially developed coun- tries-so as to ensure tangible economic progress, settle the economic problems confronting us and ensure an equitable structure for the well-being of all peoples. We must work in the context of the establishment of a New International Economic Order on the basis of principles adopted by the General Assembly at the sixth and seventh special sessions as well as at the following regular session, in the context of the Committee of the Whole and in the context of the future negotiations, as well as in the context of the fashioning of the strategy for the third development decade. That is the best way to overcome the problems and 5 United Nations Negotiating Conference on a Common Fund under the Integrated Programme for Commodities. 42. Therefore at this ~;ession the General Assembl~ must provide the necessary thIust so that this New International Economic Order can be established. In their declaration of 29 September [A/33/278, annex] the Foreign Ministers of the Group of 77 deplored that little or indeed no progress had been made in these negotiations directed towards revamping international economic relations in view of the suspension of work in the Committee of the Whole. The Ministers affirmed that the developing countries were ready to conduct real negotiations sp as to have a true dialogue with the developed countries, to address all issues inherent in the establishment of the Ne\\{. International Economic Order, and to open the door to the developed countries so that they may demonstrate their good intentions and so that they may be urged to have the necessary political will to ensure the success of the negotiations in the Committee of the Whole, in UNCTAD and in the United Nations Conference on Science and Technology for Development. 43. In conclusion I should like to join preceding speakers in expressing particular appreciation to my friend and brother Mr. Idriss Jazairy, the Chairman of the Committee of the Whole. He demonstrated wisdom and devotion as he confronted the obstacles before the Committee. 44. We should like also to pay a tribute to the Chairman of the Group of 77, my friend and brother, Mr. Mahmoud Mestiri, for his devotion and untiring efforts.

What brought us to the plenary meetings of the General Assembly was an impasse faced in the work of the Committee Established under General Assembly Resolution 32/174. In the Committee the impasse presented itself in the form of a procedural point arising from the interpretation of its mandate. 46. Last year, when consensus was reached among us to create a new fomm that would act as a focal point, we had all expressed our conviction that all negotiations of a global nature relating to the establishment of a New International Economic Or;,der should take place within the framework of the United Nations system. We had all agreed that a central organ was required which would be universal in composi- tion and have a political orientation. It was to provide impetus for resolving difficulties in negotiations elsewhere and to serve, wherever appropriate, as a forum for facilitating and expediting agreement on the resolution of outstanding issues. 47. Is it not contradictory that an organ which was E'''ltmsted with the task of overcoming obstacles elsewhere has reached an impasse within itself? Is it not con- tradictory that a whole year could be wasted over what appeared to be a procedural issue, while the crises in the developing world were allowed to aggravate? 48. In fact it was quite clear from the beginning that the procedural deadlock carried the symptoms of a divergenC\~ in the fundamental approach to the whole process of the North-South dialogue. On this point our thinking is parallel to that of the developing countries, which have referred to 50. During the period when the Committee of the Whole was at a standstill, there were certain developments in the international arena which either came under the umbrella of the North-South dialogue or had a direct bearing on it. 51. First, protectionism rose to new heights in the form of discriminatory measures against certain export products of developing countries. Against that oackground, the prin- ciple of free trade was being evoked at the multilateral trade negotiations. There was no progress, however, on issues of interest to the developing countries and it appeared as if agricultural products would be left at the margin. 57. I should like to conclude by paying a special tribute to the Chairman of the Committee, Mr.ldriss Jazairy, who gave a remarkable performance in leading the Committee during the most difficult period, and we shall owe to him the resumption by the Committee of the Whole of its pivotal work. 52. Secondly, th~ negotiations on individual commodities that come under the Integrated Programme6 showed hardly 'any progress, even though a minimum number were tackled. This in turn had a negative impact on the negotiations for the common fund. A positive attitude on the part of the developed countries is still being awaited on this issue for a system that will constitute the backbone of a new international order.

The history of my country's involvement in the search for a New International Economic Order based on justice and equity may be summarized in three words: concern, commitment and~tioo. . 59. Concern for the problems of the deveJ<.>ping world and its people has long been a tradition in the United States, and has found concrete expression in economic assistance programmes'for decades. 53. Thirdly, another stalemate was reached at the United Nations Conference on the Establishment of the United Nations Industrial Development Organization as a Special- ized Agency. 60. A sense of commitment requires something more: it demands a determination to join all of this world's nations in seeking mutually beneficial change in the international economy. Unlike concern, it derives from a better under- standing of mutual self-interest. Since the conclusion of the seventh special session, which succeeded in reaching a consensus, my Government has shared a sense of commit- ment to move ahead, which arises from a new sense of shared goals and from the reality of a tightening web of common interests. This kind of commitment is a far more solid basis for progress than any feelings of guilt or charity. 54. Fourthly, the outcome of the Ministerial meeting of the Trade and Development Board in March 1978 on the debt problems of the developing countries [see A/33/15, part twoJ was limited in scope and character although it might be considered a step in the right direction. A most positive and comprehensive approach is required on this issue, which is one of the most crucial in the long-term search for world development. Consequently, it was gratify- ing to hear of some progress at the recent experts' meeting in Geneva which aimed at identifying multilateral gUidelines for future operations relating to debt problems of de- veloping countries. 61. Action must fo'lIow commitment. In his speech before the Congress of Venezuela, President Carter noted that: 55. Fifthly, the recent decision to increase the allocation of special drawing rights, as a result of the second amendment to the Articles of Agreement of IMF, and the quotas of member countries came as a welcome sign. Nevertheless, it is disappointing to note that the basic question of a total restructuring of the international monetary system is still not on the agenda and that only marginal reformist tendencies persist. Mr. Vance, the Secretary of State of the United States, in his address befpre the Assembly on 29 September [14th meeting}, described the action we have taken and are prepared to take with others. 6 See Proceedings of the United Nations Conference on Trade and Development, Fourth Session, vo!. I, Report and Annexes (United Nations publication, Sales No. E.76.II.D.1O and corri~endum), part onc A, resolution 93 (IV). 62. I am grateful to the Foreign Minister of the Philip- pines, General Romulo, for calling attention to the fact that "Only by acting together can we expand trade and investment in order to create more jobs, to curb inflation, and to raise the standard of living of our peoples". 63. We do not believe interdependence is just a catch- phrase; we believe it involves a mutual obligation to fashion our domestic policies on the basis of global as well as national needs. For the industrialized nations, this imposes an obligation to avoid protectionist reaction to inevitable structural changes. The developed countries also have a responsibility to facilitate smooth adjustment for workers and business which bear the brunt of such changes. 64. For the developing countries, action requires a com- mitment to full participation in and contribution to the multilateral trade negotiations. It requires mutual readiness to negotiate flexibly on the establishment of a common fund. It requires a readiness to establish progressive domestic and international priorities, to set responsible and realistic goals, and to assume common obligations. 65. For developed countries or wealthy countries which can contribute, action means a commitment to maintain 3J'id increase resource transfers to developing countries. In the past year our multilateral commitments increased by 31 per cent, our biJ.ateral programme by 20 per cent. The assistance legislation just passed by our Congress provides for further significant increases in our assistance effort. The legislation also provides authority for the retroactive adjustment of aid terms applying to the poorest countries, thereby making it possible for us to implement commit- ments·we have made in UNCTAD. 66. We believe we should do more. We believe also that all developed or wealthy countries should participate in this common effort to bring economic health to this planet. No nation should opt out of this process by using an interpretation of history or ideology as an excuse-an excuse that is becoming increasingly weaker. We have common interests, we share common benefits, we should accept common burdens. 67. To transform policy concepts into reality is a process requiring mutual understanding and accommodation. I think I know as well as anyone in this room how long and complex such a process can be in the domestic politics of a large nation like the United States. Others here appreci.ate even better than I that the same qualities are needed to achieve concrete progress on international issues. We are fully prepared to make our contribution. 68. My country's interest in the Committee of the Whole and in setting aside the procedural problem which has delayed its work derives from this commitment to progress. We join in a common desire to see the Committee achieve real progress on the issues brought before it. 69. Since the first days of the thirty-second session of the General Assembly my Government has continued to share the conviction that the United Nations should play a central role in the international economic dialogue. We presented a draft resolution 7 offering one approach to such 70. We played an active role in reaching speedy agreement at the Committee's organizational session and we prepared extensively for its first substantive session in May-perhaps even a little too extensively, given the length and tardiness of the paper we submitted. 71. After some delegations had raised procedural ques- tions at that May meeting my Government endeavoured to find solutions. In July, at the Economic and Social Council, I proposed a formula to help ensure that the Committee would be an action-oriented body which would assist and encourage Governments to make changes in their positions on important unresolved issues.S The process would also have led to agreed conclusions at the meetings of the Committee. 72. In September senior United States officials came from Washington to a scheduled meeting of the Committee prepared to offer a number of constructive proposals and explain how the Committee's past work had contributed to changes in the United States position. We were therefore disappointed that substantive discussions did not take place because of differences over procedure. None the less we believe it was useful that those differences were discussed openly and frankly. Like the Ambassador of Peru, we, too, place great importance on the straightforward expression of views. 73. Secretary Vance did not wish these procedural issues to stand in the way of potential progress on the substance. .. The United States Government had made considerable adjustments in its initial conceptions of the Committee's role in order to reach full agreement. We therefore responded to the Secretary-General's offer of assistanre in resolving outstanding differences. Our mission remained in close contact with Mr. Waldheim, with the Director General for Development and International Economic Co-operation, Mr. Dadzie and with the Under-Secretary-General for Inter- national Economic and Social Affairs, Mr. Ripert. 74. Mr. Vance's object in his address to the 14th plenary meeting was to find the simplest means of getting the Committee back to work, to put procedural questions behind us and to get back to the substance. Judging by what others said during the general debate, this goal was universally shared. Secretary Vance therefore instructed my delegation to join with others in seeking the best means.of confirming a formulation in the Assembly which· would enable the Committee to work towards action-oriented agreed conclusions that all nations will be prepared to implement. To this end, we look forward to the statement of the President of the Assembly and the adoption by consensus of a draft resolution at the end of this debate to give the Committee a solid basis for future work. 75. We believe that the discussions we have had have produced a better understanding of each other's views, and 76. The President's statement, and our mutual consent to it, will set aside the difficulty the Committee has faced since September. His statement will not be challenged, but it is in itself a challenge. It is a call to pass from the resolution of a procedural issue to the arduous task of resolving concrete problems. .

The Chairman of the Group of 77 has already expressed very ably the deep sense of disappointment which the developing countries are ex- periencing at the moment as a result of the failure to arrive at an agreement on the manner in which the Committee of the Whole should operate~ and especially at its inability to discharge the important task for which it was designed on behalf of the international community.. 78. The head of our delegation, the Minister for Foreign Affairs~ Mr. Munyua Waiyaki~ also had occasion a short time ago {29th meeting) to dwell at quite some length on the lack of progress in negotiations for the establishment of the New International Economic Order. My task~ therefore, is simply to emphasize this problem with a few observations. . 79. Throughout all these negotiations my delegation, along with others of the developing countries~ has ap- proached our work with great patience and a willingness to understand the difficulties of others as well as their varied points of view. We are prepared to bargain and, where necessary, to seek just and fair compromises. At the base of our constructive approach is a strong undercurrent of the sentiments which were expressed here at the sixth and seventh special sessions by our Governments~ represented at the highest political levels, and which emphasized the realities of our interdependence and the need to establish a new order for the benefit of all. It was with this background in mind that we felt special disappointment at the latest break-down of negotiations in the Committee of the Whole. We were particularly pained when we realized that the Committee was not even being allowed to embark on its substantive work~ as it had instead been misdirected into an entangling procedural debate regarding its scope and functions. In the end it was our conclusion that the reason for the failure of the Committee to conclude its first session and to engage in substantive negotiations during the second session was not so much that the mandate of the Committee was not clear, as that some delegations de- liberately chose to misinterpret the mandate of the Com- mittee as spelled out in General Assembly resolution 32/174. 80. To us, this was characteristic of the reluctance still lingering in some quarters to come to grips with the proposals for structural changes in the present order. 81. We have noted in the recent past that we are treated to generalized statements of good intentions both here in the General Assembly and in other international forums, but whenever we start negotiations on the real issues the situation changes. Reluctance to engage in meaningful negotiations or to take any fundamental decisions with 82. The failure of the international community to make the eagerly awaited breakthroughs in the fields of inter- national trade, industrialization, debt problems, the transfer of financial resources and the reform of the international monetary system has been disappointing. The pace at which our negotiations are proceeding is too slow. Indeed, while we move from one conference to another the conditions which we have resolved to remove are simply getting worse. Many of our economies are in fact declining to unac- ceptable levels with each day that passes without action being taken in these critical areas. 83. In this connexion~ it is perhaps appropriate here to draw the attention of the Ass~mbly to the very pertinent words of Mr. Robert McNamara in his recent address to the joint annual meeting of the World Bank and IMF in Washington where he referred to the "most shocking conclusion" of the Bankts newly published World Develop- ment Report, namely, that 600 million people in the developing countries would remain trapped in absolute poverty at the end of the century.9 84. For us in Africa~ the situation has in fact been deteriorating. Any assessment of recent development trends and prospects in Africa will quickly and clearly show the poor performance of the economies in the last decade. The prospects for the future are not bright either. Our develop- ment has been substantially affected by the continued cyclical fluctuations in the economies of the industrialized countries and in international trade. We have experienced adverse effects on the values of our exports, our teons of trade~ the cost and value of our imports, the level of inflation~ and ultimately on the trends and levels of our. gross.domestic products. Many of our sister States in Africa are indeed at present experiencing rapidly growing debt burdens. As a result, outlays for interest and amortization charges for external debts represent a rapidly growing percentage of total export earnings, amounting to as much as 30 per cent for some African countries~ in contrast to, and going well beyond, the World Bank's 10 per cent ceiling. 85. It is true that the constructive spirit and the favour- able climate which prevailed during the sixth and seventh special sessions of the General Assembly and also at the fourth session of UNCTAD in Nairobi had raised great hopes in us. We had indeed been led to believe that at last there existed an opportunity for the international com- munity to tackle effectively and resolve issues which had been the subject of discussions between the developed and developing countries for over two decades. We welcomed this turn of ev~nts, since for us it ushered in a potentially promising new era not only for our people but for the whole international community, developed and developing alike. 9 McNamara,op. cit., p. 35. 87. Our hope at present is that after this general debate we shall all be the more determined to carry out' the responsibilities entrusted to us by the international com- munity. We also sincerely hope that after this debate the Committee of the Whole will be put back on the right track so that it can fulfil its mandate. For our part, we cannot accept the view that the Committee should serve only as a forum for exchanging ideas concerning the New Inter- national Economic Order, for that would defeat the very jurpose for which it was established. On the contrary, we would like the Committee to be action-oriented as was, in our opinion, clearly spelled out in resolution 32/174. 88. In concluding my brief remarks, I should like to emphasize the fact that, in spite of the frustrations of the recent past, the Kenya delegation is still determined to pursue and continue the dialogue in a spirit of co-operation and understanding of each other's problems and difficulties. What is required, we believe, as my Minister stated in the general debate, is "..". a political vision that is inspired by the promise of the future and not clouded, as it is at present, by past controversies and by the desire to cling to the short-term privileges of the present". {29th meeting, para. 107.J

It has been said that science progresses in a spiral. The establishment of the new international economic order will surely take the same course and follow the same twists and turns. This debate on the role of and mission entrusted to the Committee of the Whole established under resolution 32/174, would have no particular meaning if it had not been placed within the context of that dialectic. I should like to make a very brief review to clarify the understanding we have reached. 90. Since the Second World War, mankind has seen great upheavals in several sectors. In the last 30 years, con- temporary society has experienced profound changes in the t::olitical, social and cultural fields. A symbol of solidarity and co-opel:ation, the triumph of mankind over fascism and nazism was the yeast for the struggle for liberation waged by the peoples of Europe, Latin America, Asia and Africa against regimes of repression and plunder. Since then, many nations have reconquered their independence and regained dignity. Many peoples have hoisted the flag of freedom in place of the flag of domination. 91. Unfortunately, the process of liberation has not yet been completed, because in some regions of the world, particularly in Africa, criminal regimes ofapartheid. racism and colonialism remain in power. The supporters of those regimes, hypnotized by selfish and short-lived interests, ignore the lessons of history and the invincible force of people fighting for just causes. The peoples of South Africa, Namibia and Zimbabwe will emerge victorious from the bloody ordeals which they must undergo. Sooner or later, the freedom and independence of those countries will be 92. What, indeed, will political independence, won at the cost of such sacrifice, represent if the problems of hunger, disease and ignorance remain unsolved? Political conquest is inseparable from economic liberation. Most countries that have just achieved independence must meet the requirements of national reconstruction in particular by overcoming obstacles to their development which have been bequeathed to them by colonialism. However, courageous policies directed towards national recovery will be unsuc- cessful as long as out-of-date, unjust structures continue to hold sway in international economic relations. The inter- national economic order is still governed by institutions and machinery that have their origins in policies of domination and the protection of the selfish interests of an infinitesimal minority of the international community. 93. Many developing countries that have recently achieved independence note that their economies are locked into the economic structures of the former metropolitan countries, which have been considered as development models. This, for example, is the case with the trade flows and mcnetary blocs. The crisis in the economies of the former colonial Powers necessarily has an influence on the precarious economies of the developing countries that wish to main- tain good relations. 94. A quick glance at the developed market-economy countries reveals a substantial slow-down in economic growth, a constant imbalance in their balances of payments, an instability in exchange rates, the persistence of high unemployment and an increase in a spirit of protectionism. 95. What is even more worrying is the persistence of this recession in the industrialized countries. Developed coun- tries must have the political courage to take appropriate measures to improve the situation of the world economy. Energetic measures must be adopted to avoid the energy crisis which is looming on the horizon for 1985. 96. I should also like to say that the blame for these cyclical crises must be placed on the invention of world economic structures which are not based on the principles ofjustice, interdependence and mutual advantage. 97. Efforts to improve the world economy must be recognized by the international community. Despite the slump in the value of the main reserve currency, developing countries are now absorbing approximately 25 per cent of the total exports of the developed market-economy coun- tries. We note particularly that more than 30 per cent of the demand for capital goods and chemical products comes from the developing countries. 98. This is a -not inconsiderable share when one realizes the difficulties the developing countries have experienced in obtaining transfers of resources. The true dimensions of this contribution may be realized if one takes account of the 108. In an important sector of economic life, that is to say the industrial sector, UNIDO had envisaged appropriate measures to give effect to the Lima Declaration and Plan of Action on Industrial Development Co-operation,.o which established as targets an increase of 25 per cent in industrial production in the developing countries by the year 2000, and aid to the least-developed among the developing countries, the land-locked countries and the island de- veloping countries. 100. In that context, the establishment of a common fund and the implementation of the Integrated Programme for Commodities are urgent needs. In view of this the Council of Ministers of the Organization of African Unity meeting in Khartoum, Sudan, from 7 to 18 July 1978, adopted a resolution clearly pointing out the rple that this fund should play once it has been established. This resolution urges all States to exert every effort to achieve agreement on the common fund and on individual commodities. 109. The Lima Plan of Action recommends that UNIDO be made a specialized agency, but because of a lack of political will the plenipotentiary Conference organized for that purpose was unable to reach agreement. 110. As can be seen clearly from the foregoing, negotia- tions to make economic relations more democratic have made no progress. P~ssimism has taken the place of the enthusiasm evinced dUring the sixth and seventh special sessions of the General Assembly. The United Nations and the Foreign Ministries of the Western countries are be- coming increasingly concerned. To prevent the worst, the Conference on International Economic Co-opera- tion-better known as the North-South dialogue-was held in Paris in 19777 but the Conference was only able to achieve very meagre results. Indeed, one might even say it was a failure. 101. We would point out in passing that of the 15 agricultural commodities agreement has been reached on only three. 102. With regard to food, the situation is not satisfactory either. Hundreds of millions of human beings are suffering from hunger and malnutrition, whereas a small number of persons are living in affluence. During recent years some encouraging signs have appeared. We can see that there has been some increase in food supply, but the balance between supply and demand is still precarious because many of the problems that are impeding the establishment of an adequate world food security system have not yet been solved. Ill. But there was a gleam of hope in Africa-in Nairobi, Kenya, to be precise-when the fourth session ofUNCTAD was held, that a common fund might become a reality. Unfortunately, that hope was dispelled under other skies. In view of this stalemate, the Organization could only shoulder its responsibilities as laid down in the United Nations Charter. 103. In view of this gloomy picture of international economic relations radical changes in the existing economic system are necessary. This belief must have been shared by the international community at the sixth special session of the General Assembly as shown by the adoption of its Declaration and Programme of Action on the Establishment of a New International Economic Order, submitted by the developing countries. 112. As a centre in which efforts undertaken by nations to achieve aims and objectives established by the international community should be harmonized, the United Nations must channel all these efforts. This important role was made clear by the General Assembly at its sixth special session when it declared in paragraph 6 of resolution 3201 (S-VI): 104. The seventh special session of the General Assembly was an important factor in giving new impetus to the negotiations directed towards establishing a just and equi- table system. The African countries welcomed the two special sessions devoted to economic problems as important events. 105. At these two speci~l sessions the General Assembly envisaged special measures to be taken for the least- developed among the developing countries as well as for the land-locked and island developing countries. Effective measures were also recommended for those countries most seriously affected by economic crises and natural disasters. 113. This is the context in which the General Assembly established the Committee of the Whole, the mandate of which has been clearly laid down in paragraph 4 of resolution 32/174, which was adopted by consensus by the General Assembly at its thirty-second session. 106. The African countries were particularly pleased that those measures were adopted because most of the countries in Africa faU within those categories. It is in fact in Africa that the majority of least-developed, most seriously af- fected and land-locked countries are found. 114. Mindful of what happened to some of the decisions adopted by certain specialized bodies of the UnHed' "The United Nations as a universal Organization should be capable of dealing with problems of international economic co-operation in a comprehensive manner and ensuring equally the interest of all countries. It must have an even greater role in the establishment of a new international economic order." 10 Scc f10cumcnt A/IOII2, chap. IV. 115. This body is political in conception. The duties entrusted to it clearly indicate the political orientation that should be given to all the negotiations. It is a body designed to provide the impetus necessary for resolving the dif- ficulties in the negotiations and encourage those concerned to continue their work. 116. Moreover, this body is composed of high-ranking individuals and cannot work on a purely technical basis with the sole aim of preparing for a special session of the General Assembly in 1980 to assess the progress that has been made towards the establishment of the new inter- national economic order. 117. The Committee has a highly political function. There can be no doubt about that. The Committee of the Whole should also act as a forum with a view to fa~ilitating and speeding up the settlement of pending problems. How can it accomplish that mission if it is not given powers of negotiation and decision? Endless discussions on this question can only be sterile because the problem has been artificially created. From the outset the African delegations were aware of this responsibility borne by the Committee, which could not become a debating society. Like other m~mbers of the Group of 77, we do not minimize the importance of speeches and new ideas as long as they are directed towards action and change. 118. We deplored the refusal of the Committee to take decisions. The argument put forward was that overlapping with other bodies must be avoided, but those who support this thesis surely forget the primary function of the Committee, which is to oversee and monitor the imple- mentation of decisions and agreements emerging from negotiations on the establishment of the new international economic order conducted within the competent bodies of the United Nations. 119. Paragraph 10 of resolution 32/174 removed any ambiguity in this connexion. While recognizing the duties which the Charter assigns to the Economic and Social Council, the General Assembly requested that main body of the United Nations to contribute effectively to the over- seeing and monitoring functions of the Committee. While the Committee was working, and in other forums in which negotiations were taking place between the North and the South, many delegations from the North emphasized dialogue and realism. 120. The African delegations support dialogue as long as it is a truly action-oriented dialogue and not merely an endless flow of words. 121. As for realism, the African countries, like the Group of 77 as a whole, have demonstrated their patience so as to 122. The African delegations have been encouraged by the statements made by some developed countries that have declared that they have committed themselves to this process of change. We hope that, as negotiations continue, these commitments will indeed lead to concrete decisions. Now that an agreement has been reached with regard to the role and the powers of the Committee of the Whole, we must get to work as quickly as possible so as to make up for lost time. The developing countries have suffered exces- sively from inequality and injustice, which has long been the hallmark of the world economy. ., 123. Mr. President, I should like to refer to the briUiant statement that you made at the beginning of our session: . "The establishment of a new economic order has thus become the goal for the solution of the problems of an era which has seen the fall of colonialism, the awakening of the poor nations, changes in the international division of labour, and revolutionary shifts in the geographical location of the centres of power." {1st meeting, para.50.J 124. We hope that these very wise words will inspire the Governments of the industrialized countries to embark on the path to change and true realism. 125. On behalf of the African States, which I have the honour to represent here, I should like to express our hope that this message will enlighten all the bodies charged with giving a new impetus to the establishment of a new international economic order. 126. I should like to express our deepest hope that the- Committee of the Whole will make tangible progress. I wish to pay a well-deserved tribute to the Chairman of the Committee of the Whole, Mr. Idriss Jazairy, who guided the work of the.Committee with tact, competence and ded- ication. 127. The African countries desire neither abdication nor confrontation, but justice and solidarity, because mankind shares the same destiny.

-In deciding to discuss directly in plenary meetings item 58 fa) of its agenda the General Assembly wanted to indicate the great interest it took in this important question and also to call the attention of the United Nations to the absolute necessity of rmding a just and effective solution to this problem that would be in conformity with the real interests of the whole of the international community. 129. During the thirty-second session the General As- sembly adopted resolution 32/174 affirming that "all negotiations cif a global nature relating to the establishment of the new international economic order should take place within the framework of the United Nations system". In 130. The developed countries, which were suffering from the trauma of the Arab oil embargo after the war of October 1973 and also from the increase in oil prices which followed, apparently wanted to limit their involvement to the energy problem, which was their main concern, while the oil-producing countries wanted to broaden the discus- sion to include all the questions of interest to developing countries, interests which they rightly feel are indissolubly linked to their own. The developed countries tried to set up machinery which would protect them from a new energy crisis and ensure the recycling of the immense financial resources of the. oil-producing countries, which felt on the other hand, that a global settlement was necessary in order to end the stagnation of international economic co- operation caused by the selfishness of the rich countries. 139. The developing countries have already made their choice by adhering unreservedly to the decisions of the sixth and seventh special sessions of the General Assembly and to the provisions of the Charter of Economic Rights and Duties of States [resolution 3281 (XXIX)]. 140. Now it is for the developed countries to respond. 141. The Committee of the Whole is expected to study and to propose to the General Assembly ways and means leading to the solution of the main economic problems of our time. 142. The international trade system must produce the necessary reforms to facHitate access for the raw materials and the manufactured and senU-manufactured products of the developing countries to the markets of the developed countries. 131. It was against that background of mental reservations and cleverly concealed mistrust that that Conference on Economic Co-operation in Paris was to begin and end. 132. Despite an international environment that was very propitious because of the very fruitful discussions at the sixth and seventh special sessions of the General Assembly, that Conference was incapable of achieving an agreement that would contribute to the establishment of a new international economic order, and thus it amused among the international community, and particularly among the developing countries, a real feeling of disappointment. 143. An increase in the revenue the developing countries earn from their exports is a pre-condition for the imple- mentation of their programme of economic and social development. It is obvious that the developing countries will not be able to derive any profits from their foreign trade if that trade is not protected against the instabilities in the international monetary system and the negative impact of the inflation the industrialized countries export. 133. Thus the General Assembly, after having affirmed at its thirty-second session that the United Nations system was the only proper framework for any negotiation of a world-wide scope, also took the decision to convene a special session in 1980 in order to evaluate the progress in the various Ukuted Nations bodies acting in the area .of international economic co-operation. 144. The problems of indebtedness will also have to be examined s taking into aCC0Uni., on the one hand, the ability of the countries concerned to pay and, on the other hand, the size of the burden of debt servicing, allowance being made for the volume of income from their external trade. 145. In the area of the transfer of public assistance to developing countries stress must be placed on the fact that, with one or two exceptions, no developed country- capitalist or socialist-has yet reached the target of 0.7 per cent of gross national product which was set in the International Development Strategy for the Second United Nations Development Decade. 134. A Committee of the Whole was set up which was to meet as needed in the interval until the special session of 1980. 135. The Committee, in the meantime, was expected to make recommendations to the General Assembly at the thirty-third and thirty-fourth sessions. 146. Other no less important questions will also have to be considered by the Committee, such as: reform of the international monetary system, which must no longer be a_ tool of domination at the service of a small numbel[ of countries, or even of one country; the Integrated Pro- gramme for Commodities, in particular the common fund; measures relative to the world food problem and to agricultural proQlems; and, finally, the transfer of tech- nology. These are only the most important and urgent questions that will have to be examined. 136. Unfortunately, the work of that Committee had to be interrupted on the eve of this session because of the divergencies of view on the nature and scope of the mandate that had been entrusted to it. 137. Our Assembly, at the end of this debate, will have to decide very clearly on what measures will have to be taken i'1 order to enable the Committee to continue effectively its work in the search for a solution which will put an end to the continuous worsening of an economic, commercial and monetary environment which increases unceasingly the gap separating the developed from the developing countries. 147. The various interpretations of the Committee's terms' of reference should not lead us to forget the spirit in which 148. The interdependence of all the nations of the world is an undeniable reality, even if some obstinately refuse to accept it. 149. The new international economic order must have as criteria-and this has been very properly pointed out here-equity, justice, solidarity and respect for the sov- ereignty of States and peoples. It must guarantee a just sharing of production, of advantages and also of surpluses. 150. Our present deliberations are moving towards a consensus decision, and we are happy to see that. 151. However, that consensus should not be interpreted as an abandonment pure and simple of the fundamental principles which have always guided our attitudes in the past. A revision on a more equitable basis of relationships between industrialized countries and countries producing raw materials has become inevitable. Therefore we must prepare ourselves to set up infrastructures endowed with a real dynamic for economic and social change, such as is characteristic of the present situation. 152. Only on this condition will the world community be able to face the challenge of the new strategy of the next United Nations Development Decade.

One by one we have watched an uninter- rupted parade of speakers precede us, each apparently speaking the same language, which seems to us most encouraging. The topic that has brought us together in plenary meeting has already been considered in a plenary meeting-in the 107th plenary meeting that was convened when the Assembly at its thirty-second session adopted resolution 32/174, establishing the Committee of the Whole for the consideration of the implementation of some important resolutions adopted on various other occasions and in that meeting all of us participated. 154. There is no need to revert to those resolutions. as they have been endlessly repeated, and consequently one might fear that if one strikes hard on a naH the nail may finally bend, which would be extremely embarrassing. Unfortunately, history does repeat itself. 155. The issues we deem to be matte~s of urgent priority are perbaps not considered so by others. This doubtless explains the relaxed attitude we note when important issues are considered. Like repetition, good rhetoric gets us nowhere. Each of us surely wiJI have an easy conscience because he will have correctly recited his lesson before the Assembly. 156. The pilgrim from Lima, Nairobi, Tokyo, Geneva, Paris or New York is always the same, because he is defending the same principles. What we must do now is to 157. That is why the delegation of my country would be most unhappy if we were unable to participate in this important debate on agenda item 58 fa) devoted to development ~d international eccinomic co-operation. 158. World interdependence and shared international eco- nomic responsibility which have become a matter of current necessity and concern, are undoubtedly the justify- ing factor whose implementation seems far off. 159. We should recall the fact that the sixth special session of the General Assembly of the United Nations devoted to raw materials, together with the seventh special session devoted to development and international economic co- operation, serve as excellent evidence in this connexion. In resolutions 3201 (S-VI), 3202 (S-VI) and 3362 (S-VII), these two special sessions of the General Assembly again demonstrated that the division of the world into two rigid blocs was an'outdated concept and that mankind is bound to co-operate to establish a just and eqUitable new international economic order. 160. The same is true for other instruments of inter- national scope which have emerged from the conferences that have been held, such as the Charter on Economic Rights and Dui:ies of States, adopted at the twenty-ninth regular session of the General Assembly of the United Nations; the Lima Declaration, adopted at the Second General Conference of UNIDO and the resolutions adopted in Nairobi by the fourth session of UNCTAD. They were guided towards the same target: that is to say the restructuring of the present economic order.. 161. While the developing countries are not the only ones to be concerned..with this burning issue, they cannot remain indifferent. It is surely in order' to participate in this international effort towards the establishment of a new international economic order that these resolutions and recommendations emerging from the Conference on Eco- nomic Co-operation among Developing Countries, held in Mexico City in 1976, the Conferences of non-aligned countries held in Colombo and Belgrade, and the recent United Nations Conference on Technical Co-operation among Developing Countries, held in Buenos Aires, have been directed. 162. If we thought only of those few ir~1~rnational con- ferences, which have not failed to take some important decisions, and did not forget the partially positive results that have been obtained, in my delegation's opinion, in the North-South dialogue, the new international economic order would already be a reality, but unfortunately this is not at all the case. 163. The industrialized countries are continuing to protect ••------- th~ir selfish economic interests we understand this-but

Permit me at the outset to pay a tribute to the Chairman of the Committee Established under General Assembly Resolution 32/174 for the work which he has done on behalf of the international community and to the Chairman of the Group of 77, who has outlined the position of that Group in the clearest terms, and my delegation fully endorses their statements [35th meeting]. 164. Negotiations on commodities, so as to conclude individual agreements within the framework of the In- tegrated Programme, which are under way in Geneva, have not as yet reached conclusive results, although we stand on 170. It is a universally recognized fact that no single nation, whatever its economic capacity or technological advancement, can build its economy in isolation from the rest of the world. thf~ threshold of the fifth session of UNCTAD. The Paris Conference on International Economic Co-operation led to a stalemate because of the stubborn refusal of the de- veloped countries to make the concession& flowing from the necessary transformations proposed by the developing countries with a view to the establishment of the new international economic order. . 171. We have good reason to believe that as the nations of the world are becoming more and more interdependent, the United Nations and its co-ordinating bodies can solve the existing global economic problems only through efforts of collective actions. However, this goal seems to be drifting further away as the years go by since this Organization adopted resolute measures to combat the economic dis- parities among nations. 165. My delegation, together with many other delegations, regrets that all the attempts made to establish a new international economic order have not produced lU'y results, and we believe that the action taken by the United Nations should effectively and speedily result in sincere and true international co-operation leading to the restructuring and balanced development of their respective econ-.;mies. 172. The world has come to realize that the demands of equity and justice require fundamental changes in the international economic system to assure the developing countries of fuller participation in international economic activity and an equitable share of its benefits. 166. It will be recalled that as a follow up to the North-South dialogue, the General Assembly, in resolution 32/174 of th~ thirty-second regular session, decided to establish the Committee of the Whole. It was to meet between Assembly sessions and be entrusted with monitor- ing and overseeing the implementation of decisions and agreements emerging from negotiations on. the establish- ment of the new international economic order, conducted within the competent bodies of the United Nations. This Committee of the Whole, which is to serve as a focal point for negotiations until the special session of the General Assembly in 1980, is entrusted with the establishment of a new development strategy to address international eco- nomic issues. It has also been instructed to speed up' a settlement of the pending questions and also to give the necessary impetus so as to obviate the difficulties that have emerged in these negotiations and. thereby promote the continued work of these bodies. 173. This perception found its expression in the Declara- tion and Programme of Action on the Establishment of a New International Economic Order adopted at the sixth special session of the General Assembly. That session laid down the lines along which the global community would have to move if ajust and equitable system of international relationships were to be achieved and with it the prospect of peace and justi~e for present and future generations. 174. At the seventh special session of the General As- sembly, we witnessed what appeared as a sign of a new readiness on the part of most countries to pursue the necessary processes of negotiation towards these aim~. But the evidence of the following years proved that those of us who were of that view were mistaken. The many discus- sions and attempts at meaningful negotiations during that time have produced meagre and limited results. 167. In view of the political importance of the North- South dialogue, which has been superseded by the Com- mittee of the Whole, for the restructuring of economic relations among nations, my delegation believes that the powers given to the Committee of the Whole, as laid down in resolution 32/174, are explicit and broadl~ justify the establishment as well as the retention of the Committee. My delegation would also Uke to take this opportunity to thank the Chairman of the Committee for his introductorv statement a few days ago [35th meeting] on the work tha"t 176. As quite rightly pointed out in the Declaration has been done during this first year in the Committee. adopted by the Ministers of the Group of 77 at the Headquarters of the United Nations on 29 September 1978, 168. As have other members of the Group of 77, the the lack of progress in negotiations towards the re- delegation of the Republic of Zaire is ready to join in the structuring of international economic relations, particularly general consensus on the reconfirmation of the role those on the main areas, such as the Integrated Programme entrusted to the Committee of the Whole by the General for Commodities and the common fund, multilateral trade Assembly with regard to international economic co- negotiations, the transfer of resources, international mone- 175. While there has been a growing realization of the interdependence and reciprocity of interest and th.", need for structural changes, this has not been matched by commensurate practical action on the part of the developeet countries. 177. These inward-looking policies have rendered the process of negotiations more difficult and made the attainment of the goals of negotiations set out at the seventh special session elusive. It was therefore with a particular sense of disappointment that we noted the failure of the resumed session of the Committee of the Whole to agree on the mandate and the functions of the Committee. 178. My delegation would like to reaffirm the importance it attaches to the involvement of the United Nations system in the negotiations on economic issues of a global nature and the need for providing them with a central body which would serve as a negotiating body for the adoption of guidelines on central policy issues and the achievement of agreement on the resolution of fundamental and crucial issues related to international economic relations. It is our earnest hope that the General Assembly will be in a position to confirm the right of the Committee to negotiate. 179. It is also my delegation's hope that the thirty-third session of the General Assembly will promote the renewed North-South dialogue by spelling out an adequate frame- work for negotiations dealing with the principal elements of the New International Economic Order, and above all by demonstrating more political will of the Members of our Organization to commit themselves to specific measures which alone are capable of stopping the dangerous course of our world eroded by inequl;\1ity and injustice. 180. My delegation notes with regret the sluggish transfer of official development assistance in real terms from the developed to the developing countries. In this connexion, my delegation notes that the developed countries have not only failed to achieve the target of 0.7 per cent of gross national product by 1980, but that they are in fact receding even further from that target. 181. The Declaration of the Conference of Ministers for Foreign Affairs of Non-Aligned Countries, held in Belgrade this year {A/33/206, annex I], called upon those countries lagging most bel"Jnd the set target, which are at the same time the economically most powerful countries, to ac- celerate the transfer of these resources to the developing countries. The Foreign Ministers noted also with regret that the official development assistance of the developed so- cialist countries fell from $1 billion in 1974 to $0.8 billion: in 1975 and to $0.5 billion in 1976, which is less than 0.1 per cent of their combined gI'OSS national product. 182. It is my delegation's fion belief that it is only through a continuing commitment to change and reform, coupled with the requisite political will and co-operation, that the New International Economic Order will be achieved. 184. My delegation very much hOf;)S that confrontations which are harmful to all of us will give way to sincere, equitable co-operation based on an exalted notion of the destiny of man.

The delegation of Guatemala, in parti.cipating in this debate on world-wide nego'H~tions 011 the establish- ment of a new international economic order, which is vital for the strengthening of international relations, would like to express its disappointment at the lack of progress in the Committee of the Whole, which WclS established un.der resolution 32/174 of 19 December 1977. That Committee had been entrusted with a crucial task but thereafter it was not possible to agree oil either the procedure or the form in which the Committee was to discharge its basic mandate: namely to achieve the establishment and implementation of a new international economic order. That mandate has not been and is nowhere near being discharged. 186. The delegation of Guatemala is pleased that the Group of 77 requested that the debate on this problem of the mandate of the Committee of the Whole be brought before this General Assembly so as to emphasize the highly political importance of economic negotiations between the North and the South and to bring to the attention of Governments and of world public opinion the ..seriousness of the dangers inherent in the· failure of these efforts directed towards giving new impetus to the dialogue with the developed countries. We should like to congratulate Mr.Idriss Jazairy, Chairman o~' the Committee of the Whole, and the members of the Committee, on their spirit of compromise. 187. The Comlilittee of the Whole was established by the General Assembly, inter alia, to resolve the difficulties of negotiation an.$! to facilitate and speed up the solution of pending questions so as to achieve the establishment and implementation of the new international economic order. 188. We are convinced that the Committee ofthe Whole from the very outset had difficulties with respect to representation and to the interpretation of its mandate, but the basic problem has always been the rejection by'the majority of the developed countries, particularly the main industrialized countries, which do not wish to commit themselves seriously to the restructuring of international economic relations. 189. The Minister for Foreign Affairs of Guatemala, Mr. Rafael E. Castillo Valdes, stated a few days ago in this General Assembly {1>th:meeting) that the Government of Guatemala was seriously concerned about the delicate stage which the world has reached, which is marked by inflation, disregard of the masses, by the steady impoverishment of broad sectors of the population and by the fact that it is impossible to meet the spiritual and material needs of the peoples. 191. That Charter states that in order to achieve this goal international economic relations must be placed on a more rational and equitable footing and that struc::tural changes must be promoted in the world economy. Conditions must be established which will make possible an expansion of trade, increased economic co-operation among developing countries, the establishment and promotion of economic co-operation among all nations, the strengthening of the economic independence of the developing countries, and the establishment and promotion of international economic relations based on the degree of development of the developing countries and their specific needs. 192. The essential feature of all of these goals and premises is an improvement in the quality of life of our peoples, not through donations but through opportunities for remunerative work. Yet hundreds of thousands of our workers are daily being threatened by unemployment, by poverty, the poverty which worries the President of the World Bank, Mr. McNamara, a poverty that may possibly be caused by the lack of markets and, what is even worse, international markets. I am referring to the new wave of protectionism which has swept over us, 193. The industrialized countries, concerned about the economic imbalances in their own economic structures, have reacted with protectionist measures to protect their agricultural, food and industrial production, thereby seri- ously harming the interests of developing countries in violation of their international duties and commitments. Only one group of developing countries has been able to respond to this attack and defend itself against this protectionist policy. These are the countries of the Organi- zation of Petroleum Exporting Countries, but their reply resulted in an increase in fuel prices, which has further increased the economic suffering of our peoples. 194. One must add to this the problems which make international trade impossible, such as the fluctuation in the prices of raw materials and the steady deterioration in the terms of trade. 195. A few days ago at an international meeting an industrialist from a Caribbean country told us that in 1970 a tractor cost approximately three tons of sugars and now it costs 12 tons. 196. But let us revert to the critical situation that countries such as mine are experiencing in their inter- national trade. 197. Since 1977 Guatemala and Latin America have suffered a steady and growing deterimation in the balance of trade. We can remember the unprecedented boom between 1973 and 1974 and the slump registered in the 198. Among the main factors contributing to the fluctua· tion in our markets are, first, the shrinking of external demand in 1974 and 1975 after the high rate of economic growth of the chief exporting countries; secondly, the world energy crisis, and thirdly, the sharp fluctuations in the output of some of the main producers in our developing countries. 199. The main results of this deterioration in the com- modity markets, in my delegation's opinion, are unstable prices, slow economic development both in our countries, and the increase in international monetary imbalance. The fluctuation of prices for our products has sometimes played a significant role in the growth of inflation in our country and it has been thought that international agreements on individual commodities might stabilize prices. 200. As market conditio~lS for commodities worsen the peoples of the third world want to see the Integrated Programme of UNCTAD become a reality as soon as possible. This is part of our desire to achieve a new international economic order, but this Programme is not working satisfactorily either. The crux of the UNCTAD Integrated Programme is the negotiation of international agreements to stabilize commodity prices. This activity was indeed successful in some cases but in the broad majority of cases it has suffered from a lack of common guidelines for the producer and buyer countries. Progress in negotiations has been very slow and has often led to further unproduc- tive meetings being held. 201. We are concerned about the lack of progress reg- istered in the drafting of international agreements to stabilize commodity prices. We' can see that the Inter- national Tin Agreement is in difficulty. The International Coffee Agreement is proceeding smoothly but the Inter- national Wheat Agreement is not operating. In October 1977 we were able to reach an agreement on terms and conditions for the International Sugar Agreement, but now we hear that this Agreement may ind~ed be still-born. To begin with, the countries of the European ComJIi'Jnity did not wish to participate and it now appears that the United States does not wish to ratify it. Without the participation of our main buyers, there is no point in having an agreement. 202. If the doors to our export commodities are closed, how do the developed countries think we are going to survive? A viable solution is to be found in co·operation, where each of us would sacrifice a little for the welfare of the broadest maj\>rities.

In past years it bec3.l'"1le quite clear to the intemat:onal community as a whole, and to the developing world in particular, that the existing economic system was mainly dedicated to the interests of a 204. This requirement led to the convening of the sixth special session of the General Assembly. As a result a Declaration and a Programme of Action on the Estll.Lblish- ment of a New International Economic Order were adopted. Many of the industrialized countries expressed a reaction to the decisions of that special session. At the seventh special session of the General Assembly the industrialized countries committed themselves to negotia- tions for the attainment of these aims. However many discussions and attempts toward this end have produced disappointing results. An attempt was made to negotiate at the Paris Conference on International Economic Co- operation. That Conference was convened outside the framework of the United Nations, and the composition of its members was limited and selective. The Conference clearly showed the unwillingness of many participating industrialized countries to engage in constructive nego1;ia- tions toward the achievement of the aims and purposes of the New International Economic Order as envisaged in the decisions of the sixth special session of the General Assembly. During the thirty-second session of the General Assenibly, after intensive consultations, it was finally agreed that a Committee of the Whole should be established under the auspices of the United Nations to remedy the imbalances and provide for the full participation of the developing countries. 205. The task of that Committee W8'.8 to secure the establishment and implementation of the New International Economic Order, primarily because it was evident to the developing countries that it was necessa!"'j to have a central body within the United Nations system that would have the right to bring together the elements necessary for the creation of a just and equitable world economic system, and also to reaffirm the supremacy of the United Nations with regard to all negotiations pertaining to the establish- ment of the New International Economic Order. 206. Much to our regret the Committee of the Whole was not able to complete even the first of its three sessions projected for the current year, and t~e work of the Committee ended in a deadlock. The main reason for this was a fundamental disagreement with respect to the scope of the rights and mandate of the Committee to negotiate and recommend decisions. The industrialized nations mainly responsible for the prevailing unjust international economic structure, underestimating the importance of the Committee of the Whole, advanced the view that the mandate of the Committee was primarily to serve as a forum for an exchange of views, while the developing countries were of the opinion that matters should be negotiated substantively so as to bring about the necl.~ssary structural changes in the economic system on the basis of the principles of the New International Economic Order. 207. It should also be borne in mind that the continued failure on the part of the Members of the Organization to negotiate constructive structural changes in the present 208. We are encouraged by the fact that the General Assembly has already been able to work out a solution to this problem so that the Committee will find it possible to continue its vital functions and fulfil its mandate in the near future. 209. Mghanistan, as a least-developed and land-locked country, hopes that the Committee will adopt concrete measures in favour of such countries and that its recom- mendations will be effectively carried out. We believe that the economic problems of the least-developed and land- locked countries are basically structural; they can be lessened only through the restructuring of the international economic system as envisaged in the decisions of the sixth and seventh special sessions of the General Assembly as well as in other relevant decisions adopted by the United Nations system and they must be discussed in a forum in which all the members of the international community have the right to participate. 210. Before concluding I wish to avail myself of this opportunity to pay a tribute to the Chairman of the Committee of the Whole for his untiring 'efforts and leadership, and also to express our appreciation to the Ambassador of Jamaica, the outgoing Chairman of the Group of 77, for the able manner in which he guided the important work of the Group during the past year.

First of all, on behalf of the delegation of the People's Republic of Benin, I wish warmly to thank and to extend fraternal greetings to the Chairman of the Com- mittee of the. Whole, our brother Idriss Jazairy of Algeria, who with a high degree of political responsibility conducted the work of that Committee. He showed much patience, and that prevented a total and fatal break-down of the work of that Committee. 212. My delegation also wishes to thank Mr. Mills of Jamaica and to express our support for him. He very lucidly expressed the feelings of the Group of 77, of which Benin is a full-fledged member. 213. The position of my country, the People's Republic of Benin, on problems related to development and inter- national co-operation is very well known. However, it may be useful to recall that the present state of the world economy is still characterized by negative features. They are: first, unequal terms of trade, in particu~ar in regard to commodities, the mainstay of the economies of. the developing countries; secondly, the growing indebtedness of the developing countries; thirdly, the increasing distortion of assistance for development, both in its fundamental 214. All these problems are very weII known. They have been very seriously and thoroughly studied, and as a result three fundamental documents have been produced: the Lima Declaration; the Declaration and the Programme of Action adopted at the sixth special session; and the Charter of Economic Rights and Duties of States. 215. Those documents,' which were adopted by all, in- dicate that the present interdependence in the economy is simply a relationship of the domination and exploitation of an overwhelming majority of impoverished States by a minority of privileged nations that continue to perpetuate an injustice that hail become unacceptable and unbearable. 216. My delegation wishes here to denounce the per- sistence of the structure and the organization of a world economy based on relationships of domination, exploita- tion and inequality. My delegation deplores the attitude of certain developed nations that have obstructed the imple- mentation of salutary measures decided upon by this Organization to establish a new international economic order that would be more equitable and just. 217. My delegation wants to congratulate the socialist countries on their support for our cause, and we want to ~xhort thGm to take specific unilateral long-term actions to heip in the promotion and development of the developing countries and to correct the present economic imbalance. 218. Through certain manoeuvres developed nations have tried to impede the implementation of the new measures necessary for the establishment of the new international economic order. This causes among the developing coun- tries a legitimate concern that continues to persist. That concern has been aggravated by the very limited success of the deliberations and negotiations between the majority of the exploited and plundered nations and the other nations that represent a minority with deeply-roQted privileges. This is a very serious and grave situation. It helps us to understand why there is so much stagnation in the work of the Committer. of the Whole which was established under resolution 32/174. 219. How can one not deplore this situation and condemn the stratagems which have been employed to keep the overwhelming majority of mankind in poverty and misery? 220. International confen.nces continue to be held, but their results are very scanty, in comparison with the enormous concessions which were actually made by the Group of 77. 221. My delegation regrets this situation and we feel that the time has come for all countries to understand that our just aspirations for economic and social equality are very deeply rooted.

During this debate, the General Assembly has heard expressions of well-deserved support for the Committee of the Whole, established under Assembly resolution 32/174. Because of the procedural difficulties encountered in the course of its work this year, the Committee has submitted a provisional report IA/33/34]. In this connexion I should like, as President of the Assembly, to make the foJlowing statement: "Consultations held with the Member States on the question of the clarification of the mandate of the Committee Established under General Assembly Resolu- tion 32/174 led me to the conclus~on that in fulfilling its mandate as set out in resolutioil 32/174, paragraph 4, essentially under subparagraphs (h) and (c), the Com- mittee will negotiate with a view to its adopting guide- lines on central policy issues as well as achieving agreement on the resolution of fundamental or crucial issues underlying problems related to international eco- nomic co-operation. The results of the negotiations will be expressed in the form of action-oriented agreed conclusions of the Committee addressed, in accordance with paragraph 5 of resolution 32/174, through the General Assembly, to States and international org~niza­ tions concerned. "The rules of procedure of the General Assembly will, of course, continue to apply to the Committee. "I take it that this is the only clarification to be given with respect to the mandate of the Committee." , 224. I should also like to take this opportunity to pay a tribute to the Chairman of the Committee, Mr. Idriss Jazairy of Algeria, and to the members of the Committee who, by dint of very arduous effort! have reached agree- ment on how the Committee should continue its work, that agreement being reflected in part in the statement I have just made. With respect to the future work of the Committee, again after having consulted its members, I am submitting to the Assembly for its consideration a draft resolution, the text of which appears in document A/33/L.4. 225. In this connexion, I wish to indicate that "after consultations a small change has been made in operative paragraph 4 of the draft resolution, namely, the deletion of the words "priority for the provision of' so that the . paragraph ~ould now read as follows: "4. Decides that, in view of its importance, the Committee should receive all necessary facilities to enable it to hold meetings as and when required, togethet with the facility of summary records of its proceedings". ..