A/42/PV.50 General Assembly

21.  CRITICAL ECONOMIC SITUATION IN AF1UCA: UNI'L'ED NATIONS PROGRAHME OF AC'l'ION FOR AFRICAN ECONOMIC RECOVERY AND DEVELOPMENT 1986-1990 (a) Reports of the Secretary-General (A/42/560 and Corr.l, A/42/674) (b) Draft resolution (A/42/ll) Mr. BUCCI (Italy): The representative of Denmark has already elaborated at length on the views and initiatives of the European Community and its member States on the implementation of the United Nations Programme of Action for African Recovery and Development 1986-1990, as well as on the mid-term review that will take place next year. Italy's positions are fully reflected in that statement, particularly with respect to my country's contribution to, and participation in, the mobilization of efforts and resources in favour of Africa at the multilateral level. My delegation deems it useful, however, to offer the General Assembly some up-to-date information on Italy's actions undertaken at the bilateral level to assist Africa in its courageous effort to reCOver and develop its economic and social potential. Although our debate today is primarily intended to help us to focus on an appropriate mechanism for the mid-term review of the Programme of Action that will take place at the forty-third session of the General Assembly, my delegation believes that this opportunity should also be taken to attempt a preliminary assessment of the results achieved and of the remaining shortcomings. Most of all we feel this to be the opportunity for the reaffirmation of our commitment to continued support for the development efforts of African countries, in line with the United Nations Programme of Action. Indeed, the thirteenth special session of the General Assembly marked an exceptional moment in the history ot co-operation for development. Italy continues to be convinced that the mutual commitment undertaken in June 1986 opened a new stage in the relationship between developed and developing countries. We are now called upon to make further progress in the spirit of shared responsibility solemnly recognized at the special session. In the period which has elapsed since the adoption of the Programme of Action, sub-Saharan Africa and the Mediterranean region of Africa have remained the first priority of Italian assistance for development and have therefore received the greatest volume of our official development assistance. Three subregions of Africa have received particular attention. The first is the Horn of Africa, where Italy has continued its involvement in supporting the economic and social growth of Ethiopia and Somalia, with a view to favouring the attainment of conditions of stability and peaceful settlement. The second subregion is southern Africa. Here, in agreement with the other States members of the European Community, Italy has for many years contributed to the search for negotiated solutions, inter alia, through our support for the efforts made by countries of the region progressively to extricate their economies from their dependence on South Africa. I will only mention our support for such regional institutions as the Southern African Development Co-ordination Conference (SADCC), to which Italy has contributed more than $150 million. The third area is the Sudano-Sahelian region, where my country has been engaged since 1982 in active support of such regional organizations as the Permanent Inter-State Committee on Drou9ht Control in the ~ahel (CILSS) and the Inter-Governmental Authority on Drought and Development (IGADD). Countries in that region are also recipients of the benefits of sUbstantial bilateral assistance programmes and of several relevant projects financed by Italy and executed by mUltilateral agencies. (Mr. Bucci, Italy) In 1986 sub-Saharan Africa received over $300 million in grants and more than $120 million in concessional credits. These amounts appear destined to increase in 1987. These figures are part of a wider effort which between 1981 and 1986 saw an overall expenditure of over $1 billion for technical assistance and more than $300 million for concessional credits. In looking at the sectors of our interventions in line ~ith the priorities identified in the United Nations Programme of Action, the Italian presence in sub-Saharan Africa has been characterized by our commitment to strengthening such essential components as the basic infrastructures, whose importance for production and distribution, particularly in the agricultural sector, is evident. Road construction, storage of food and rural electrification have been among the priorities. Fishing, transportation, telecommunications, education, health and human resources are also areas on which our attention has been focused in assistance programmes. In determining its priorities for intervention, Italy has not overlooked the external debt of the African countries. In this respect my country has undertaken various initiatives which also constitute an important element of support for the programmes of adjustment of the economies of the indebted countries. Thus, we have funded commodity aid progra~~es in several countries with the purpose of supporting their balance of payments. Furthermore, following the adoption of the United Nations Progra~ne of Action, Italy has been restructuring the debts of some African nations at highly concessional terms - reimbursement in 20 years, of which 10 are grace years, at 1.5 per cent interest. This action is intended to favour those countries whose indebtedness towards Italy constitutes a significant portion of their total indebtedness and which are engaged in adjustment efforts. In conclusion, I should like to reaffirm the importance my country attaches to the mid-term review of the United Nations Programme of Action that will take place next year. We consider it to be, above all, an opportunity to foster co-operation and give further impetus to the action of the international community regarding Africa. Let us therefore commit ourselves to making the review a constructive and well-prepared exercise. From this perspective the Secretary-General has a central role to play. To the initiatives he has already launched and to the new ones that may be considered to ensure a successful outcome we pledge our support. Mr. CHATURVEDI (India): The debate on item 21, "Critical economic situation in Africa", provides an opportunity to assess the progress achieved thus far in the implementation of the United Nations Programme of Action for African Economic Recovery and Development 1986-1990, adopted by consensus on 1 June 19ij6 by the General Assembly at its thirteenth special session, and to decide on further measures to be taken in the matter. (Mr. Succi, Italy) We are grateful to the Secretary-General for his report (A/42/560 and Corr.l), which details the efforts made by African countries in iml?lementing tne Programme, the severity of the adverse external environment and the inadequacy of the response by the international community. The economic situation in Africa continues to cause grave concern. The increased indebtedness and the collapse of commodity prices have rendered Africa more VUlnerable than at the beginning of the implementation of the recovery Programme. According to the assessment of the Food and Agriculture Organization of the United Nations, the outlook for agricultural production in 1987-B8 is unfavourable in many countries as a result of adverse weather conditions and the additional threat of desert locusts in some areas. According to World Bank estimates, the terms of trade for Africa as a whole deteriorated by 32 per cent in 1986, leading to a fall of purchasing power of exports by 26 per cent to 30 per cent. Export earnings declined by 29 per cent from $64 billion in 1985 to $45.6 billion in 19U6, tnereby registering the sharpest fall in export revenues since 1950. Growth prospects have been hampered further by the serious debt and debt-servicing situation. The total debt is estimated to have reached $20U billion in 1986, amounting to 54 per cent of gross domestic product and almost 440 per ~ent of export earnings. The continued impact of declining export earnings, increasing, debt-servicing obligations and inadequate resource flows has forced many African countries to cut investment and import levels with detrimental effects on growth and development. Thus, despite all efforts by the countries of the region, the overall economic perforlGance of 1986 was poor and indications for 19137 are no better. The capacity of the African countries fUlly to implement the recovery Programme has been further undermined by natural disasters such as drought and (Mr. Chaturvedi, India) southern Africa remain the victims of political and economic destabilization by the racist regime in Pretoria. Within the framework of the United Nations Programme of Action for Economic Recovery and Development, African countries have undertaken major reforms in the priority areas of agriculture and allied sectors, human resource development, planning and socio-economic policies. Measures have been initiated by several countries with the objectives of domestic resource mobilization, enhancement of economic efficiency, improvement of macro-economic management, rationalization and improvement of the public sector, improving terms at trade in the rural sector and reducing the share of pUblic expenditure as a proportion of gross domestic product and adjustment of exchange rates. The target of 25 per cent of total investment allocation to agriculture has already been achieved by several countries. Many have formulated comprehensive population policies and programmes. Many of these structural adjustment measures have led to severe social stress, disruption and political risk. The efficacy of some of them, especially that of exchange rate devaluation, has been widely questioned. Programmes to improve living standards, particularly in such areas as education, health and nutrition, have been curtailed. The level of per capita consumption has stagnated or declined in most cases. Despite the political, social and economic difficulties involved, the countries of the region implemented these measures with the expectation that counterpart measures would be forthcoming. However, the net resource flows to Africa in 1986 at $18 billion showed a decrease in real terms from the 19~5 level. Official development assistance (GDA), which accounts for almost 70 per cent of total resource flows, stagnated in real terms in 1986. Private flows, including export credits and commercial bank lending, have declined significantly. While there has been an increase in World (Mr. Chaturvedi, India) Bank lending in Africa, mainly owing to the creation of the Special Facility for Sub-Saharan Africa, there has been a net outflow of resources from Africa to the International Monetary Fund (IMF) - and that too, in spite of the establishment of the Structural Adjustment Facility, cannot be described as anything but ironic. African countries are estimated to have transferred, on a net basis, over $960 million to the IMF, which is more than three times the money they received from it in 1985. External resource flows have thus not compensated in any way for the fall in export earnings. The recovery Progralnme is hindered by the substantial shortfalls in external resources and inadequate external support. The commitment by the international c~rumunity to improve the external environment constitutes a key element of the United Nations recovery Programme for Africa. Here too progress in the last two years has been far less than satisfactory. The crisis that is facing Africa, as is the case with developing countries in general, is to a large extent the consequence of external forces beyond its control. In fact, the international economic environment has become particularly harsh and unfavourable for all developing countries, especially in Africa. The collapse of commodity prices to historically low levels, rising and new forms of protectionism, deteriorating terms of trade, high real interest rates, inadequate liquidity, misaligned exchange rates, reduction in ODA and concessional loans from multilateral institutions, as well as the heavy burden of debt and debt-servicing obligations: all these have imposed unbearable burdens and accentuated the econonlic crisis in Africa. Improvement of the external environment and structural reform of the global economic system are therefore essential for tackling the critical economic situation there. Apart from taking urgently needed debt-relief measures as agreed at the seventh session of the United Nations Conference on Trade and Development (UNCTAD), concessional financial flows from Governments and multilateral financial institutions should be increased sufficiently to implement the recovery Programme. We appeal to the developed countries to rise to the occasion and find ways and means of providing the level of assistance required. We will all do well to remember that the stakes involved in the economic and social development and the consequent political stability of Africa are indeed incalculable for the world. I should like to take this opportunity to place on record the appreciation of my delegation for the support extended by the United Nations system to Africa's recovery Programme. In particular, the action of the Secretary-General in setting up the Advisory Group on Resource Flows to Africa, comprising 13 high-level advisers, is highly commendable. We look forward to the recommendations of the Group which are expected to be presented to the Secretary-General before the end of 1987. Other welcome steps in this area have been the setting up of the Steering Committee and its inter-agency task force on follow-up to the implementation of the recovery Programme. The activities of the United Nations in sustaining international interest in Afr ica' s recovery and development by information dissemination deserve the full support of the international community. We are however, deeply concerned by what the Secretary-General has described as the limitations imposed by the withholding of major contributions on the Organization's capacity to provide adequate backstopping to their operational activities, including those in Africa. India has been bound with Africa by ties of cultural affinity and friendship from the dawn of history. At every available opportunity, we have reaffirmed our solidarity with the efforts of the African people for economic recovery and development and also with their heroic struggle against apartheid, colonialism and destabilization represented by the Pretoria regime. There are already a number of collaboration projects under way between India and several African countries in the field of agriculture, technical co-operation and others. In May 1986, a workshop, attended by agricultural policy experts from many African countries, was hosted in New Delhi in collaboration with the World Food Council. In co-operation with the United Nations Industrial Development Organization (UNIDO), an Afro-Asian Industrial Co-operation Meeting was held in New Delhi in November 1986 within the framework of the Industrial Development Decade for Africa, on possible industrial co-operation projects. Through our bilateral economic and technical co-operation programmes, we have been making our modest contribution to Africa in the areas of education, training, provision of experts, consultancy services, feasibility studies and provision of machinery and equipment. Besides, we have made a contribution of about $40 million to the Africa Fund. We are aware that, in relation to the needs of Africa, these efforts can only be of modest magnitude. But we see them as an important element of South-South co-operation and as part of the overall efforts to promote self-reliant development in Africa. (Mr. Chaturvedi, India) In conclusion, I should like to recall the words of Prime Minister Rajiv Gandhi in his message to the thirteenth special session of the General Assembly: "The people of Africa are engaged in an epic struggle which compels the attention and the respect of the world. It is a gigantic effort to overcome centuries of poverty, neglect and underdevelopment, while fighting to eliminate the scourge of racism in South Africa and colonialism in Namibia. "By working together in a spirit of partnership, the international community has a great opportunity and a challenge to contribute towards building a modern and prosperous Africa. An economically strong and dynamic Africa will be an important factor for world peace and stability." (A/S-13/PV.l, pp. 54-55, 56) Mr. EASTMAN (Colombia) (interpretation from Spanish): The critical situation in Africa, for valid reasons, calls for the solidarity and the understanding of all the nations of the world without distinctions of any kind. The international economic situation has deeply affected the capacity of the African continent to respond to a structural crisis. It is obvious that the fall in commodity prices has brought about a serious contraction in foreign exchange receipts in all of its member countries. For this reason, the 29 per cent reduction of external flows in 1986 is clear proof of the deterioration of the balance of trade of the continent, the drop of which has been $22 billion. This depressed picture of trade, where the debt burden is over $200 billion, therefore represents an obligation which cannot be sustained by sever~l of the more poor countries. Fortunately, this phenomenon of distortion has been recognized, although only in part, by several creditors, who have decided to write off part of The International Monetary Fund (IMF) has promised to treble the Structural Adjustment Facility Fund for less developed countries, among which we have a large number of African countries. Sub-Saharan countries, for example, will benefit from the $12.5 billion replenishment of the International Development Association (IDA). Several donor countries in addition to this have renewed their intent to provide growing bilateral assistance to those nations which have not yet recovered from the disastrous effects brought about by desertification and drought in 1984 and 1985. Per capita income in Africa has been falling throughout this decade and there are very few social programmes which the continent has been able to undertake given the drop in gross domestic product and the efforts which have had to be made to develop structural adjustments. However, one can see a new behaviour which has brought about a thorough redesigning of economic objectives with a view to realizing the importance of an expanding agricultural market, reducing the bureaucratic burden and offering incentives to individual producers by means of eliminating agricultural subsidies. The African efforts towards improving marketing and productivity conditions has nevertheless been blocked by external conditions, by the low prices of primary commodities, by the existence of tariff barriers, by the obvious decline in resource flows and foreign investment, and ultimately, by the complex set of obstacles which is typical of international trade. There are two positive situations which one should make use of, and these are, on the one nand, the fact that Africa has a human and economic potential which has been underestimated, and also, that the Governments of the region have made considerable efforts of internal adjustment and have proceeded to briny about conditions favourable to changing unsuitable models and reordering development priorities. It is therefore necessary for the international community to undertake a parallel effort so that these internal adjustments may be maintained long term and may yield the fruit of sustained growth. For the moment, my delegation wishes to stress its concern upon witnessing an increase in absolute poverty and a deterioration of the social indicators on the African continent. Those areas require priority attentlon, and I am referring to putting an end to hunger and infant mortality, improving conditions of health and sanitation and expanding the reach of education. These are the minimum bases for overall human development without which a simply quantitative,growth would never attain its essential objective, which is that of promotiny and bringing about the full realization of the human being. It is along those lines that we believe foreign aid could best be used and the experience of the most advanced countries could yield best results. Colombia wishes both to emphasize the importance of expanding all possible trade relations with this important continent and to reaffirm its aim of seeking strategic agreements in all areas where our mutual interests coincide, in the spirit of mutual co-operation whicn has always been the mark of fraternal ties among our peoples. We express the hope that the consideration of the critical economic situation in Africa at this General Assembly session offers an opportunity to turn promises into concrete realizations, thus opening up new vistas in a continent the destiny of which forms an essential part of mankind's future and, obviously, of progress and peace on our planet. For, in the words of a great thinker: "We must all hang together, or, most assuredly, we shall all hang separately. Mr. JACOBOVI'rs DE SZEGED (Netherlands): I have been listening carefully to many - although not all - of the speakers who have preceded me in this debate and I entirely share the gist of their interventions to the effect that many African countries have taken courageous and important measures to implement the United Nations Programme of Action for African Economic Recovery and Development but that additional resource flows to Africa have been lagging. Indeed, as the Secretary-General states in nis report, "overall net resource flows to Africa actually declined, in real terms, in relation to 1985 levels". (A/42/560 and Corr.l, para. 135) My colleague from Denmark has spoken in great detail, on behalf of the European Community and its member States, on the critical economic situation in Africa and the response to it. I should like, however, to take this opportunity to dwell upon the response of the Netherlands Government to the external financial needs of African countries, as set out in the United Nations programme of Action. Total Netherlands assistance flows to sUb-Saharan Africa in 1986, compared with 1985, did not decrease but increased by $185 million. It amounted to $600 million, of which $250 million was channelled to countries belonging to the Southern African Development Co-ordination Conference, the southern African front-line States and bordering States. Since 1981 disbursements to sub-Saharan Africa from the Netherlands have consistently increased in response to requirements and they amount to $2.7 billion for the period 1981 to 1986. In addition, we have made substantial contributions through multilateral organizations. One of the important characteristics of the economic crisis in Africa is the dire need of foreign exchange to finance essential imports, such as those of agricultural inputs, spare parts, raw materials for industry and drugs. The proportion of financial support by the Netherlands for imports to sub-Saharan countries has therefore been increased to 50 per cent of total aid disbursements and in some countries even to 80 per cent. Apart from programme aid, the Netherlands Government supports a great number of projects designed to strengthen existing institutions, to support agricultural production and to provide water supply, medical services and the like. In many of these projects the local cost components are also financed from project funds. Since private initiative is an important driving force in the development process, private and non-governmental organizations are increasingly being supported, as are local and regional industrial development banks and agricultural credit institutions. As the Secretary-Generalis report highlights, the development of human resources, public administration and financial management are pre-conditions for the successful implementation of the Programme of Action. 1 should like to recall that my Government has established a trust fund with the United Nations Development Programme (UNDP) for public administration and management, in particular to strengthen Government capacities to co-ordinate external assistance. That programme is now under way in seven countries and we would like to see more donor countries providing assistance in this crucially important area. The Secretary-General's report gives considerable attention to the unrelenting problem of refugees in Africa - and justifiably so. The situation of refugees in Africa remains a matter of grave concern. Netherlands aid policy is geared towards providing assistance to the immediate relief of refugees, through the United Nations High Commissioner for Refugees (UNHCR) and private relief organizations. Increasingly, attention is given also to supporting long-term solutions and to refugee-related development needs. We very much welcome the joint UNHCR-UNDP activities in this respect. I need not go into any detail to conclude that external debt obligations constitute the main problem facing many African countries while they are trying to recover and develop their economies. A substantial part of this debate is devoted to the debt crisis. At the thirteenth special session of the General Assembly my Government announced that it was prepared to cancel, in principle, for the period of Africa's Priority Pr09ra~ne 1986-1990, all debt service on official development assistance loans to African low-income countries willing to commit themselves to effective adjustment policies. Accordingly, in 1986 debt relief was given to Kenya amounting to $7.5 million and to Zambia amounting to $2 million. In the past the Netherlands had already cancelled all official development assistance debt obligations of the least developed ~frican countries. Those countries now receive assistance only on a grant basis. My Government has contributed to enabling the secretary-General to establish the Advisory Group on Resource Flows to Africa, which is expected to present shortly concrete recommendations for alleviating the financial crisis in Africa. We consider it essential that the report be submitted also to the Chairmen of the Interim Committee and the Development Committee for further consideration by those bodies. The Netherlands realizes that much more needs to be done in implementing the United Nations Programme of Action for African ~conomic Recovery and Development. My Government is determined to continue, and wherever possible to strengthen, its support for Africa's development effort and to alleviate its debt burden. Mr. ANDRADE DIAZ DURAN (Guatemala) (interpretation from Spanish): On behalf of the Group of 77 it is my honour to address this plenary meeting of the forty-second session of the General Assembly in order to participate in the debate on one of the most important items for the developing world: the critical economic situation in Africa. At its thirteenth special session, in 1986, the General Assembly adopted the United Nations Prograwne of Action for African Economic Recovery and Development, a Programme which is broad in scope and which can at the same time be considered aggressive and full of hope for an entire continent which has been beset by natural disasters and other adverse factors. Although at present one can note the appearance of important positive trends, there are still serious reasons for concern with res~ect to which the international community should act as quickly and effectively as possible. It has been recognized that African countries have endeavoured to comply with the commitments entered into under the United Nations recovery Programme to make the necessary structural adjustments and internal reforms to revitalize their economies and thus establish new bases for sustained development. We should highlight the priority given in the measures and programmes adopted by various African Governments to agricUlture and food. The establiShment of remunerative prices for farmers, reduction of subsidies and the introduction of flexible price-fixing procedures and policies on inputs are among various measures that have yielded encouraging results. In addition, in many African countries public expenditure has been rationalized. There has been fiscal reform, exchange rates have been adjusted, and various complementary measures have been adopted. Those measures have frequently been carried out at a high human and material cost and in some cases have had political consequences. unfortunately, external and internal factors have not favoured implementation of the Programme of Action for Africa. Some of the most important factors which have had an adverse effect on the implementation of the recovery programmes are the following: the increasing deterioration in the terms of trade of African countries; the drastic fall in resource flows to AfricaJ the enormous debt burdenJ and natural disasters, in particular, drougnt and desertification. The crisis is of such magnitude that the Heads of State or Government of the Organization of African Unity (OAU) have decided to hold a special session in December this year to assess this delicate situation and agree on policies to respond to it. The Ministers for Foreign Affairs of the Group of 77 expressed deep concern over the worsening of the economic situation in African countries, where long-term and short-term prospects are not promising. Despite the considerable efforts made by African countries to implement the United Nations Programme of Action, the international community, in particular, the developed countries, has not facilitated, or provided the resources necessary to support the efforts of the region. Official development assistance has stagnated and even declined. The financial needs mentioned in the Programme of Action are increasing, especially at a time when export earnings from commodities and other products are declining and, at the same time, the problem of debt and debt servicing is becomes worse, as is that of the net resource flow to developed countries. The report of the Secretary-General includes dramatic figures with regard to these points, which speak for themselves. The current account deficit increased from $7.1 billion in 19135 to $21. 5 billion in 1986. The terms of trade decreased by 32 per cent in 1986. Export earnings declined by 29 per cent, from $64 billion in 1985 to $45.6 billion in 1986. In 19t16 the total African debt was estimated at $200 billion - 54 per cent of gross domestic product and approximately 440 per cent of export earnings. Between 1986 and February 1987, the net transfers of African countries to the International Monetary Fund (IMF) were 3.5 times greater than the amount they received from the Fund in 1985. In 1986 net resource flows to the IMF amounted to more than $960 million dollars. In their Declaration of 1 October this year the Ministers for Foreign Affairs of the Group of 77 urged the international community, in particular the developed countries, to fulfil their commitments in implementing the United Nations Programme of Action for African Economic Recovery and Development 1986-1990, bearing in mind, among other things, the debt crisis and the debt-servicing burden, as well as the dramatic fall in commodity prices. They further urged the international community to increase considerably and with urgency in real terms resource flows to Africa through bilateral and multilateral financial institutions on concessional terms and to bring about a renegotiation of the debt, including long grace periods or cancellation of the debt, especially in the case of less developed countries. They also invited developed countries to adopt appropriate measures to increase private financial flows to Africa, including those from commercial banks. We believe that improvement of the international economic situation, especially the cestoration of export income from primary commodities to remunerative and equitable levels, is important for the development efforts of African countries. This is why we once again urge developed countries to adopt measures to stabilize the commodities markets and improve commodity prices. In this context, the Group of 77 has reiterated the need to bring into operation the Common Fund for Commodities, which was set up by the Uni ted Nations Conference on Trade and Development. The Group of 77 wishes to thank the Secretary-~eneralfor hlS report (A/42/560 and Corr.l). We take note of it with deep concern and reaffirm our view that appropriate initiatives should be taken by the international community, especially by taking practical measures to respond positively to African countries. We must act quickly, since Africa is living through extremely difflcult times and the human and social consequences of such a situation are unacceptable. Without more effective co-ordination of efforts to maKe possible a flow of resources to Africa, it will be virtually impossible to achieve the objectives of the Programme adopted by the United Nations. Peace, security and stability are the necessary pre-conditions of the economic development of developing countries. This premise is particularly true in the case Africa has stated that it has the responsibility for its development, but its future cannot be divorced from the future of the rest of the world. Africa has appealed to the international community to support its development efforts. We cannot, nor should we, disappoint it. International solidarity must be expressed through concrete measures that can lead to positive support for the African efforts. Mr. KORN (United States of America): Over the past several weeks the United States delegation has listened attentively and with sympathetic interest as virtually every African representative in the plenary Assembly at its forty-second session has spoken eloquently and sincerely from this rostrum about the econoJQic problems within the continent. The issue poses immense challenges, not only to African policy makers but, more particularly and importantly, to the welfare and livelihood of their peoples. The report of the Secretary-General is in our view a thoughtful, sobering and candid summation of trends. We commend the large and growing number of African countries that are undertaking significant, difficult policy reforms, often accompanied by painful structural adjustment measures, in order to accelerate the recovery of their economies and lay new foundations for sustainable development. However, even in the best of circumstances, we know that policy successes will remain fragile until economic benefits are transformed into daily improvements in individual lives. The United States has thus actively participated in and supported the United Nations Programme of Action for African Economic Recovery and Development. to support and reinforce the actions now being taken by African Governments to restructure their economies, to give priority to growth and higher productivity in agriculture and food production, and to mobilize human resources. We wish In moving forward, we must not be discouraged by the magnitude of the tasks. Keys are available to unlock the door to sustained economic and social progress in Africa. One which is proving sound is greater reliance upon individual initiative and entrepreneurship. This is especially true of the small falms and the business enterprises which constitute the dominant pattern of the African economic and social fabric. Long-term improvements in Africa's economic and social situation are now being stimulated by innovative measures and market-oriented policies. But, as the Secretary-General noted, these efforts need and merit greater external support. Both donors and African States are now examining their portfolios to ensure that past errors are not repeated. Both we and you must become more willing and able to make the hard choices on policies and priorities and to redirect foreign and domestic resources within an environment friendly to the private sector, whose full potential has yet to be tapped. Speaking recently uefore the World Bank and the International Monetary Fund (IMF), President Reagan stressed three major development themes: eliminating hunger, economic reform, and debt. United States economic efforts in sub-Saharan Africa are aimed at ending hunger through economic growth, policy reform and private-sector development. The President of the United States specifically complimented African countries which are taking the hard steps toward reform and· pledged United States support. He said: "The huge debt burden carried in the third world is not just their problem. It is our problem. Today let us pledge: we will solve it to~ether". We are trying to do just that. The United States has responded to the General Assembly appeal contained in resolution S-13/2, dated 1 June 1986, in the following Presid~nt Reagan has announced a new initiative designed to end hunger in Africa. Within the framework of this initiative the Administration has proposed to the united States Congress legislation establishing the "Development Fund for Africa". It is designed to strengthen and make more qualitatively effective our bilateral programmes. When finally appropriated the Fund will provide assured and more flexible resources especially where policy adjustment suggests that such assistance will have positive growth results. We have also refocused our development priorities in Africa to ensure that our funds are applied to those projects which contribute most to the solution of key development problems: food production and general agricultural development, family planning, health, human-resource development, and environmental reclamation. Many representatives have spoken about the burdens of debt. On its part, the United States has recently taken a number of steps designed to have an impact upon the debt problems. These include: Support for the International Development Agency (lOA) to increase its capital by $12.5 billion; if this level is approved, lOA-VIII will be $2.2 billion more than IDA-VIIJ we welcome the fact that 50 per cent of these funds will be made available for African countries. Starting at the Venice Summit, the United states Government has welcomed "a significant increase in the resources of the IMF's structural adjustment facility {SAF)" J this facility is an important mechanism to augment resource flows to African countries undergoing structural adjustments. In the Paris Club, the United States has agreed to more liberal terms for rescheduling official credits, inclUding stretching some repayments out to 20 years. For the past several years all development assistance funds for Africa have been provided as grants; in the next several years we hope to be able to convert more Public Law 480 programmes, providing both food and commodities, to grants as well. A major part of the President's initiative to end hunger in Africa ha$ been the creation of a better institutional framework to tackle this com~lex problem. A high-level inter-agency task force chaired jointly by the Agency for International Development and the Department of the Treasury provides an important mechanism to iron out past bureaucratic problems as well as to launch new, creative programmes. Its goal, as stated by President Reagan, is "to eliminate hunger in Africa by the end of the century" by working closely together with other donors and African Governments. Co-operation and improved management can go a long way towards getting better results from available resources. On a more micro but still important level, a special United States grant of $2.1 million is being made to the United Nations Development Programme (UNDP) to help promote new and expanded business ventures in Africa. This grant ~ill support the Africa Project Development Facility within UNOP over a four-year period. It will provide a full range of business and financial advisory services to indigenous small- and medium-scale enterprises and to local entrepreneurs trying to start businesses. UNDP, in co-operation with the International Finance Corporation, the private sector arm of the World Bank, and other donors will also make financial contributions to this project, which will be managed by UNDP. The United States also attaches particular, importance to the emphasis on Africa by such affiliated agencies of the United Nations as the Food and Agriculture Organization of the United Nations (FAO) and the World Health Organization (WHO). We will continue to support them. The United States has numerous development priorities in Africa, which clearly support the attainment of the'Plan of Action's short- and long-term goals. We remain committed to the success of the Plan of Action and are making every effort, in partnership with African leaders and experts, to assure that our assistance is applied to the highest priority activities with the best potential to achieve the objectives agreed upon at last year's General Assembly. The Secretary-General has accepted and responded to the tasks assigned to him by the General Assembly's consensus resolution. ais report covers these activities, and we wish to express our satisfaction and appreciation. The Secretary-General's steady leadership and key co--ordination role, backed by the efforts of the United Nations agencies, are essential for success. We also note with appreciation that the Economic Commission for Africa (ECA), its Executive Secretary Adebayo Adedeji, and the ECA secretariat have monitored the implementation of the Programme of Action. We challenge ourselves and encourage our partners in Africa's development, donor nations as well as African States, to collaborate more productively together. Resources are currently limited. Thus, we must all manage those we have in the best manner possible to achieve the success we all seek in the Plan, of Action for Africa's economic recovery. Africa has thoughtfully shaped and articulated its plans to improve its economies and well-being. Time, effort and determination will be needed. We. look forward to a comprehensive review of the implementation of the programme to be submitted to the forty-third General Assembly. Africa is clearly making sacrifices to bring about change. The United States believes that the nations of Africa will succeed. We remain committed to doing our part in support of their goals. Mr. SOKOLENKO (Ukrainian Soviet Socialist Republic) (interpretation from Russian): Once again the General Assembly is considering the question of the critical economic situation in Africa, after having considered it in detail last year at the thirteenth special session of the General Assembly. In the report of the Secretary-General, which has been submitted to the present session, it is justly pointed out that, in spite of the measures adopted by the international community, the economies of the majority of the countries of the African continent continue to undergo great hardship. The overall economic situation on the continent remains critical. Our delegation, like many others, clearly comprehends the complexity of the problems facing the African countries and has great understanding and deeP sympathy for them. The heart of today's problems in Africa lies in the economic sphere. Overcoming the backwardness, and in many cases the poverty and hunger, and attempts at neo-colonization, which have recently been intensified, is a very complex problem and no less difficult than acquiring political independence. Africa remains the least developed cont1'nent. Th l ' e average annua per cap1ta income is scarcely more than $400. Th of e average 11 e expectancy is only 47 years. Of the 40 least developed countries of the world, 27 are on the African continent. In our opinion, the fundamental reasons for such a situation have deep, serious and long-standing causes. They are to be sought in the colonial era, when Western metropolitan States consciously and deliberately held up the economic and social development of the African countries and assigned to them the role of a raw materials adjunct. As a result of historical circumstances, these causes could not be completely eradicated. It is quite clear that the present critical situation in Africa is also the direct consequence of the policy of nee-colonialism, as a result of which the shoulders of the peoples of Africa, and other developing countries, are made to bear the basic burden of the economic crisis in the capitalist sector of the world economy. Because of the persistence of such a policy, an unjust system of international division of labour was produced, which placed the young African countries in a clearly inferior situation. All the earlier circulnstances for the exploitation of the natural and human resources of the continent are still in evidence. Africa today continues to be compelled to produce that which it does not consume and import that which it does not produce, while it remains dependent upon capital flows in forms profitable to foreign Inono~olies. The fact of using funds from abroad, including all types of borrowings, for the solution of economic development problems is a perfectly normal phenomenon. Difficulties arise, however, when the influx of external resources brings with it a lowering of incentives to mobilize internal resources and when the debt grows .faster than the possibilities of repayment. This is what happened in Africa. The serious destabilizing effect upon the economic and social developments of many African countries comes from the racist regime of the Republic of South Africa. It is conducting a policy of aggression and State terrorism towards its neighbouring countries, in defiance of United Nations decisions and those of other international forums, and is preventing Namibia's independence. The delegation of the Ukrainian SSR deems it necessary once again to call On all States to implement the decisions of the Security Council and the General Assembly, as well as the decisions of the World Conference on Sanctions against Racist South Africa to apply comprehensive, mandatory sanctions, in accordance with Chapter VIr of the Charter of the United Nations, in order to halt the expansionist policy of the Pretoria regime. It is quite clear that a solution of the immediate and long-term problems of economic development in Africa, and of other international economic problems, is possible only through the maintenance and strengthening of peace. We note with satisfaction that the peoples of Africa are becoming increasingly more aware of this reality. This is evidenced by the adoption of the Lome Declaration on security, disarmament and development. The arms race is an unbearable burden for the weak economies of the majority of the African countries and holds up solutions to the immediate socio-economic problems of the continent. During the past 10 years the military expenditures of African countries, expressed in constant prices, have increased by 1.4 times, a figure that has greatly outdistanced the rate of economic development of the continent. Today as never before it is urgently necessary to implement the principle of "disarmament for development", which presupposes the transfer of the enormous resources uselessly spent at present on the arms race to economic and social development, particularly that of the African countries. The Ukrainian Soviet Socialist Republic has steadfastly spoken out in favour of all the countries of Africa being completely capable of solving questions pertaining to their development and dealing with their internal and external affairs in an atmosphere of peace and stability, without interference from outside. However, we have frequently seen attempts to influence the selection by African countries of their development paths. Such pressures often take the form of demands to make sharp decreases in the Government sector, demands to transfer Government enterprises into private hands, to freeze workers' wages, to open the doors wide to foreign capital. As was pointed out by M. S. Gorbachev in his letter to Robert G. Mugabe on 23 August 1987, "the way to solve economic as well as all other equally acute problems of our modern interdependent world is the unification of the efforts of all countries so as to ensure stable, reliable, predictable and equal conditions for development. It is precisely these goals that underlie international economic security. It is close to and in keeping with the ideals of the Non-Aligned Movement and the decisions concerning the establishment of a new international economic order." To overcome the critical economic situation it is necessary in our opinion, first, to enlist the efforts of the African countries themselves and to have them directed at strengthening their sovereignty over their natural resources and the whole of their economic activitYJ overcoming the negative effects of the interference of foreign capital, chiefly the transnational corporationsJ ending net outflows of financial resources from African countries, which at present, according to Economic Commission for Africa (EeA) figures, exceed $9 billionJ and introducing other progressive social economic transformations, inclUding democratic agrarian reforms. Solutions to the acute economic problems of the continent should be sought through the systematic implementation of United Nations resolutions on the restructuring of international economic relations on a just and democratic basis; the stabilization of the overall economic and financial exchange situation in the worldJ the strengthening of international economic security as an organic component of the comprehensive system of international security; and the development of large-scale co-operation between developing countries and all progressive forces. The Ukrainian Soviet Socialist Republic is ready to participate in the preparation of comprehensive assistance to the African countries for the solution of their day-to-day social and economic problems. Mr. STANISLAUS (Grenada): The special session of the General Assembly convened in May 1986, under very favourable auspices, to discuss the critical economic situation in Africa, afforded me the opportunity to make my maiden statement in this fraternal forum, on a sUbject near and dear to the heart of the Grenada delegation and the Grenadian people. Today, slightly more than one year later, the same sentimental, emotional and historical attachment to Mother Africa compels my delegation to say a few words about the implementation of the United Nations Programme of Action for African Economic Recovery and Development 1986-1990, adopted by consensus on 1 June 1986 by the General Assembly. This was the clarion call to action. Today it is the purpose of this body to assess how far that lofty and noble concept has been implemented one year later. As my delegation stated during the special session, Grenada, one of the smallest island developing countr1es in the international community, is not in a position to give much material help towards the alleviation of Africa1s critical economic situation, for reasons that should be apparent to representatives. Nevertheless, Grenada, like the other Caribbean countries, has a historical and ancestral tie to Africa, where our forefathers were cruelly and brutally snatched from the land of their birth and sold into slavery in the West Indies. That being the case, my delegation craves the Assembly's indulgence to make a short statement in proportion to the small contribution that my country can Inake to the Programme of Action. Listening to the report of our conscientious Secretary-General and the many statements of representatives, one gets the feeling that the historic significance of that special session and the verbal expressions of good will ilave not been translated into action commensurate with "the extreme gravity of the socio-economic situation in Africa" (A/42/560 and Con. I, para. 1) and, furthermore, that unless remedial measures are promptly taken, the economy of many African countries will reach crisis dimensions and worse. The main thrust of my statement is an appeal on behalf of the women farmers of Africa, who, like women farmers in my own country, grow most of the food crops to feed the family. In my mind 1 s eye I picture my poor, beloved mother, now deceased, labouring in the fields of Grenada, coping with the vagaries of the weather - sometimes no rain, sometimes too much rain, sometimes under the sweltering sun - with no scientific knowledge or aids, just fertilizing the ground with her sweat, to eke out a meagre existence for her malnourished children. The fate of some of our African women heroines is akin to that of some of our Caribbean heroines. A woman's domestic role as wife and mother, which is so vital to the well-being of society, is underpaid and undervalued. Unpaid domestic work everywhere is seen as the woman's lot and responsibility. The least the donor countries can do is to attempt to improve the lot of women farmers in Africa and other developing countries, by putting at their disposal the scientific and technical know-how to reduce their labour, while increasing their crop yield and marketing skills. That is one sure and easy way of implementlng the Programme of Action. r"any of our women farmers in the Caribbean and in Mother Africa love the land for its bounteous fruits. They bring a healthy and somewhat reverential regard to tilling the soil, a sort of psychosocial and cultural view, expressed in these words: "'rreat not the land with contempt, for remember, from it you came and to it you shall return." Teaching African women to improve their agricultural skills represents a very modest contribution by donor countries, but one which pays handsome dividends. Such a step embodies the philosophy of the ancient Chinese sage, Confucius: Give a man a fish and you satisfy his needs for a day, but teach a man to fish and you satisfy his needs for many a day. This is the principle of the united Nations Development Programme (UNOP), which can be practised to good advantage in developing countries. (Mr. Stanislaus, Grenada) My delegation realizes that the implementation of the Programme of Action for the economic recovery of Africa is more involved and complex than simply giving scientific and technical aid to women farmers in Africa. There are many endogenous factors, such as desertificaticn, drought, over-grazing, over-population, education, and so on, and many exogenous factors, such as the external debt problem, financial flows to Africa, cooonodity export prices, terms of trade, South-South co-operation, some of which are beyond the comprehension of a representative of a small island developing country. However, in the belief that little things pave the way for enormous events and situations, scientific help to women farmers in Africa will be a useful contribution to the action Programme. For, in the final analysis, it is the little drop of water and the little grain of sand that make the mighty ocean and the vast expansive land. For some donor countries, the help provided to Africa is a matter of putting back into the good earth a little of what has been taken out. Mr. MORAGA (Chile) (interpretation from Spanish): Because it was only last year that the thirteenth special session of the General Assembly, on the critical economic situation in Africa, was held, not enough time has passed for us adequately to assess the progress made since it adopted a plan of action for that region. In any event, my delegation wishes to take this opportunity to commend the Secretariat for its efforts in preparing a report which contains some insightsinto the situation obtaining in that region of the world Which we are considering today. Since we do not have all the elements necessary to make value judgements and have not had sufficient time to consider all the data that has been gathered, our statement will once again deal with the moral reasons for the necessary conduct concerning and solidarity with that continent. (Mr. Stanislaus, Grenada) Those that have more resources and have attained a high degree of scientific and technological development are, of course, in a position of advantage in which assistance and co-operation are an undeniable duty rather than a matter of altruism. Such co-operation can take many forms and cover a whole range of activities, for the societies concerned are making only slow progress towards development~ The distance involved and the relative degree of development which a country such as Chile has attained compared with African nations are no excuse for us not to shoulder the duty we referred to at the beginning of this statement. We believe that the action which every member of the international community is committed to taking with respect to that continent must be commensurate with its possibilities. Thus, our officials recently visited the region and offered various forms of co-operation in specific areas where we believe that we have made relatively greater progress. Obviously, however, the bulk of the action cannot come from the third world; the most important task in this area must be carried out by the industrial nations, which, because of the phenomenon of growing interdependence, will be the ones to reap in the future what they may have sown today. The most important component in all action to resolve the critical economic situation in Africa is the will of the Governments of the very nations that are today affected. A determined attitude spurring them on to overcome internal and regional obstacles is essential to achieve any objectives in this area. However, even if there is the will and official behaviour is responsive to these very urgent needs, we must not forget that there are decisive factors WhlCh the African countries have not been able to control. Decolonization is only now beginning to disperse the tremendous burden of discrimination, racism and the experience of minds SUbjugated by allegedly superior values which were often merely (Mr. Moraga, Chile) the product of narrow commercial interests~ the spectre of the barbarity of colonialism persists as a negative factor ana a blemish that will only gradually disappear. When we speak of protectionism we are not merely referring to certain measures aimed at guarding what countries produce against a foreign influx. Protectionism can be considered particularly illegitimate when it hurts emerging or new economies with little or no possibility of defence. There is here a component of abuse, of arbitrariness, which goes beyond tne bounds of morality ana, with the passage of time, may even turn against its practitioners. What can we say, moreover, of the debt that weighs on the economies of the African nations, tragically impairing any prospect of advancement or of consolidating their economic programmes, and therefore precludes the minimum degree of social advancement which has become a matter of course in the civilized world today. The prices of raw materials, which offer the only possibility of profit from the soil - a possibility which the selfishness and greed of the metropolitan States makes a distant and at times impossible objective - remain unchanged or subject to market fluctuations. (Mr. Moraga, Chile) And what can we say about racism and apartheid? This Organization has writt~~ entire pages and, dozens, indeed hundreds, of documents analysing that blot of shame, which continues to offend and poison African prospects with its sequel of hatred, suspicion and pain. Only one year has elapsed since this Organization specifically considered th1s pressing situation. In this context, we should be overjoyed at even a specK of progress; but the powerful force of events does not seem to offer any hope. Let Us then once again reiterate our call for solidarity, solidarity which could guarant~e peace and harmony in that region.