A/44/PV.60 General Assembly

The Assembly will now take a decis ion on draft resolution A/44/L.41. May 1 take it that the Assen'bly decides to adopt the draft resolution? Draft resolution A/44/L.41 was adopted (resolution 44/23)

We have thus concluded our consideration of agenda item 149. * The President returned to the Chair. (Mr. Mataira, New Zealand) AGER>A ITEM 155 AFRICAN ALTERNATIVE FRAMB40RK '10 STRUCfURAL ADJUS'lMmT PROGRAMM$ FOR SOCIO-EQ)N()tIC REooVERY AM> TRANSFOIMATlDN (a) DRAFT RESOWTION (A/44/L.20/Rev.l) (b) lEAPT DECISIDN (A/44/L. 21). The PRESIDENT, I call on the representative of Egypt, who will speak .on behalf of the OrC)anization of African Unity (OAU). Mr. BN>AWI (Egypt), The General Assenbly meets today to consider a very important and vital hsue, the transformation of the African economy into an efficient and growth-oriented one, conducive to a process of comprehensive and sustained development - a process that would take Afdca out of its plight, end its marC)inalization and pave the way for its full inteC)ration into the world economy as an equal and active partner , thus effectively contributing to complemenUI¥] the present political dl!tente and relaxation between East alid West by economic and social detente between North and South. In this era of -development crisis~, Africa has been in a uniquely precarious situation, a fragile and fra9_~ted infrastructure, a very narrow and contracting production base with weak intersectoral linkages, an almost total dependence on primary commodities whose prices are continuously depressing in international markets, a critical shortage of capital, a dangerously low level of scientific and technological application capacity and acute underdevelopmsnt of the human resource base. All those factors and mo:e, exacerbated by the effects of climatic disasters which are continuously eroding Africa's natural resource base, on which the suatainability of its development cri tically depends, have resulted in its present predicaments a naturally rich and resourceful continent but also with ~idespread poverty, hunger, acut~y hi«;h rates of infant mortmUty, and a deteriorating environment. This is the Challenge that faces Africa and the international community today, the reversal of this situation and the successful ~djustn:ent and tran&formation of the African economy to gear it towards sustained c;rowth and deve1oplllent, the eventual alleviation of poverty, lI'ld the achievement of a higher standard and quality of life for its people. The necessity line! inevitability of adjustment and reform!lre not contested. ReforM and adjustment are organic and genetic elements in the process of humn develop.nt and evolution. However, the qUestiOilS l.ftder consideration area how to refol'1l and ~ov to adjust? What mode of transforllation can a continent undertahe which would best suit its lOr¥J-tem objectives and its own distinctive yet threatened environment in ever-changing global surroundings? What is required, we believe, are programmes that guarantee the effective interaction of the domestic, interregional, regio~al and international econolllic factors to produce real md s\Buined growth a'ld therefore development in its real sense. There are a number of prerequisites to the success of such programmes or formulas, the first of which is not to consider them the uJ. timste pa1acea but to realize that they are but _ans to an end. Moreover, thair flexlbUity and adaptability to the partioular dt.nsions and requirements of any given society are ~"'r. Bad.i, Egypt) vital to ensure their effectiveness. Adjustment programmes should not be based ~erely on the rigid and rigorous financial requirements of banking systems. Let me just state that certain baMS have not abided by what they insist tod,ay are the rules of the game. There are certain social and political realities that have to be catered for, it is therefore imperative that these realities be taken into account in the preparation of structural adjustment programmes as well as in the the-frare in which they are to be implemented. It is a fact tbat is universally acknowledged today that the stylized structural adjustment programmea designed for Africa by financial institutions have very little relevance to its long-term overall development objectives, and that the expected socio-economic impact of those programmes is widely questioned. The very narrow scope and approsch of the programmes, based essentially on short-term fiscal and monetary policies, have entailed a significant redtction of expenditures in the SOCial sectors, health, education, housing, and the development of scientific and technological capaci ties. The most serious shortcoming of the conventional structural adjustment programmes is that they ignore the human dimension of development, posing a risk, even an actual threat, to the social fabric and political stability of the adjusting countries. At its forty-third sessiOh the General Assembly undertook a mid-term review and appraisal of the implementation of the United Nations Programme of ~tion for African Economic Recovery and Development 1986-1990 and adopted resolution 43/27 on that item by consensus. The resolution spella out specific measures for accelera ting the implementation of that Programme on the basis of the IIlItual co_itment and co-operation between Africa and the international col'llllunity provided for in the Programme. (Mr. Badawi, EgyPt) Among those meaanres, the General Assembly l'ecolllllends that ·African countries should lncrease their efforts 1n the search for a viable conceptual and practical framework for economic structural adjustment programmes in keeping with the long-term development objectives and strategies at the national, subregional and regional levels· (re80lution 43/27, annex, eara~ 55 (c) ) and emphasises that ·Structural adjustment programmes should be deslgr.d in such a way as to Qitigate their adverse secta-economic effects, ensure that the human dimension is integrated in them, further l~rove the vell-being of the poor and disadvantaged in African societies••• • (ibid., annex, para. 54) In 1986, 50 African countries, in a joint commitment with the international ~unity, pledged to undertake necessary economic reform and structural adjustment ·as a basis for broad-based, sustained economic development.· (ibid., annex, pata. 3) It is in implementation of those commitments and those agreed measures and reconnendatlons that today, ~fter three years of excoriating efforts of reform and adjustMent, Africa is submitting to the General Assembly, for consideration and appropriate action, an African Alternative Framework to Structural Adjustment ProgramMes for secia-Economic Recovery and Transformation. That Alternatige Framework 18 hu.~n-eentred but realistic, entailing fult de~ratisationof all a8pec~s of economic and social activities. It calls for lntensifiea l~tercountry co-operation In the preparation, implementation and monitoring of national progr....s for adjustment with transformation. The central focus of the Fra.-work is based on the realisation that the simple aanipulation of the clas8ic in.trumenta of control of money supply, credit saueeze, (Mr. Badawi, Egypt) exchanqe ratGR and interest-rate adjustment, trade llberalh.~tion aM so on, does not suffice for addre8.ing the long-term 4evelopment objectives of Afriean econoMies, which are characterized by weak and unarticulated Rtructute8. Tht.s, as I Raid before, 18 the basic shortcoming of the narrowly desi9ned, sty11zed structural adjustment programmes, which address only a rew aspects of the macro-economic set-up and therefore Achieve very limited results. The Alternative Pramewor~ therefore a~opts.a holistic approach ~hich takeR into account the unique and intrinsic structural characteristics of Africa's aocio-politlcal economy and its long-term development objectives. Those objectlves have net heen conceiVed in a vacuum~ rather, they fit 1n with the realitleR of the local, regional, lnterregional and international en~ironment in which this adjustment and transformation process will be pursued. Let ~s make it clear in this regard that the African Alternative Framework 11' not a standa~4 prograftlll'le to be appUed indiscriminately, nor is it a framework that challenges stylized structural adjustment programme~~ Rather, it seeks to adapt them to, and complement them with, the sociological dimension within the context of the distinctive and individual characteristics of each country. I have tried to put Afri~a's case to the intern3tlonal community and to send a message to the international ~inancial and monetary institutions that a dialogue is necessary and that, most importantly, they should maintain close contact with individual countries through the Whole process of structural adjustment so that the ultimate Objectlves of sustained growth and development can be achieved over a reasonable an4 realistic period of time, and to ensure that adjustment ls carried out not only with ~ human face but also with a human heart. (Mr. "dawi, Egypt) I cO\.lt,,·ude with a word to the international community, without WhCfiO support and reinforcement no African endeavour alone will succeed. Africa, ~y sUbmitting this framework to the General Assembly, the highest political forum, asks the auestion, iB the communi ty of nation8 ready to support and endorse Af:riclt' S efforts towards a better life for its penple, and effectively help it to help iUelf? The PR&~IDENT, I call on the representative of Le~otho, who will introduce draft resolution A/44/L.20/Rev.l and draft decision A/44/L.21 in thp. course of hin statement. Mr. PHOOFOLO (Lesotho): The representative of the current chairman of fi the Organization of African Unity (OAU), speaking on behalf of the African countrie8 on the present 3qenda item, ha&; most aMy and elOQuently expressed the views of the African countries on this subject, and my delegation fully supports and associates itself with that statement. The African Alternative Framework to Structural Adjustment Programmes fu~ Secia-Economic Recovery and Transformation Is a direct response to resolution 43/27, of 18 November 1988, hy which the General Assembly ~dopted the conclusions of the mid-term review and appraisal of the U~ited "ations Programme of Action for African Economic Recovery and Development 1986-1990. It will be recalled that in the annex to the resolution the Assembly ur~ed Af.rican countries to -increaRe their effort8 In the search for a viable conceptual and practical framework for economic structural adjuetment programmes in keeping with the long-term development objectives and strategies at th~ national, subregional and regional levels-. (reflolution 43/21,..!l,nex, para. 55 (c» (Mr. Badawl, Egypt) The fundamental problem of Africa is that of a vl~loua interaetiun between excruciating pove~ty and abyemally low levela of producti~ity in an environment characterized by Be~10u8 deficiencieR in the basie and social infrastructures, mo8t especially the physical capital~ reseftfch capabilities, technological know-bOw and huaan resources development indispensable for an integrated and dynamtc econcmyo All these structural bottlenecks and factor~ constitute the iS8ues that muet be addressed hy appropriate ~tr3teqies, policies and programmes. Since the adoption of the Lagos Plan of Action and the Pinal Act of Lagos by the African &38ds of State or Government in 1980, Africa's efforts to bring abOut fundamental socio-economic structural changeR by implementing the nece.s~ry policy reforms have been constantly frustrated by both domestic policy considerations and a number of unfavourable external factors over which the African countries have no contrOl. In this context, we can mention the worsening of the international economic environment, particularly the collapse of primary commodity prices, mounting indehtedness and the decreasing net flows of public and private resources. This unfavourable world economic climate has resulted in a sharp doeline in the living standards of the African popUlation, the impact falling ~inly on the most vulnerable groups and thus making it increasingly difficult fo~ Africmn Government8 to implement these reforms without aggravatinq further the suffering of the POOl'6,st sections of the population. To respond to this unhealthy internati<01lal economic environment, African countrie8 have endeavourad to undertake, so far without much succes8, relevant economic policy reforms toailored to take into account the specific need~ and shortcomings of their eco~i.s .ithin the broad 'fraaeworlC of the exiAting wodd econoJllic environment. In this respect, refer.nce can he made to Africa's Priority Programme for Economic Recovery 1986-1990, (Mr. Pbocfolo, Leaotho) adopted by the Organization of African Unity in 1985, and also to the United Nations Programme of Action for African Economic R~cov~ry and Development 1986-1990. Since 1980 an increasing number of African counttie~ have adopted stabilization and stcuctural adjustr.~nt programmes, u5u&11y supported by the International Monetary Fund (IMF) and the World Bank, in order to obtain emergency balance-of-payments assistance and the badly needed external finance. TheRe traditional structural adjustment programmes aim at restoring growth generally through the aehievement of fiscal and external balances and the free play of market forces, hut these objectives cannot be achieved without addressing the fundamental ntructural hottl~necks of Afric~n economies. Over time, increasing concern started to be expressed by many C-overnments engaged in these progr~mmes, not only in respect of their relevance to AfricaQs long-term development objectives, such as food self-sufficiency, poverty alleviation, sustainable growth and self-reliance, hut also in respect of their aocial, economic and financial impact. The implementation of these programmes has enteiled significant reductions in expenditure in the aocial aectors, eApecially on education and primary health care, aa well as in the size of the puhlic sector and of parastatals with negative conseauences for employment. Worst of all, the short-run pressures of deht repayment and monetary balances weigh so heavily on Govp.rnments that the structural bottlenecks obtaining In the economies of these countries are relegated to the hackground. In this context, and concerning the reassessment of structural adjustment programmes, my delegation wifihes to refer to the Khartoum International Conference on the Human Dimension of Africa's Economic Recovery and Development, which was indeod a startinq point In the exchange of views on structural adjustment programmes in Africa a~ the Conference succeeded in bringing together recipients and donors ali~e in the determination not to allow the serVicing of debt to override the compulsions of hunger. According to the Khartoum Declaration, these structural adjustment programmes are "incomplete hecause they are often implemented as if fiscal, trade and price halances are ends in themselves and are virtually complete sets of means to production increases." (A/43/430 para. 18) They are "too meChanistic in being inadequately gro~nded in or sensitive to specific national economic, human and cultural realities." (ibid. i para. 19) And "Africa cannot wait for the attainment of external equilihrium and fiscal balance before seeking to improve the human condition, nor can long-term human investment to strengthen the institutional, scienfific, tachnical and productive capacity operating in environmental balance be postponed." (ibid., para. 20) It was all those concerns that led to the search by African countries for a more comprehensive, theoretically tolerant and empirically convincing framework for economic transformation. Such a framework would have to take into consideration, among other things, the structure of production and consumption and, most of all, people - the main actors in the development process. In view of the fact that our spokesman has already eloquently detailed what the African Alternative Framework to Structural Adjustment Programmes fOI Socio-Economic Recovery and Transformation is all about, ftrJ delegation will only reiterate briefly that the Framework is the outcome of increased efforts by African countries in search of a viable conceptual and practical framework for economic structural programmes in favour of the long-term development objectives as stressed also by the General Assembly in its resolution 43/27. The macro-economic framework, the policy directions cmd measures cnd the implementation strategies built into the Alternative Framework take into account the dynamic relationships existing among all major elements related to adjustment with transformation. Also, the Framework puts great emphasis on the full mobilization and efficient utilization of domestic resources and the need to establish an enabling environment for sustainable development and adopt a pragmatic approach between the public and the private sectors. Most importantly, at the core of the Framework is the human dimension. The Framework seeks to prolOOte human-centred development, which in essence implies full democratization of all aspects of economic and social activities. It cal.1s for intensified intercountry co-operation in the designing, implementation a1d monitoring of national programmes for adjustment with transformation. Moreover, the Framework, taking account of the peculiar characteristics of each individual country, will be used to design specific country programmes. Overall, the spirit behind the Framework is that of building a consensus between African countries and their development partners, through constructive dialogue, in the implementation and financing of country programmes. In that context, and in view of the fact that the aims of the Framework not only are far reaching but will also require the and a significcnt flow of resources, we are hopeful that the international community can lend its fullest support in this regard. The resources thus provided win go a long way towards sustainable development through the process of adjustment with transformation, thereby ensuring that the 1990s will indeed witness the long-awaited socio-economic revival of Africa. I now have the honour to introduce on behalf of Africa draft resolution A/44/L.20/Rev.l, entitled "African Alternative Framework to Structural Adjustment Programmes for Socio-Economic Recovery and Transformation", and draft decision A/44/L.21. mder the same heading. Draft resolution A/44/L.20/Rev.l is, as we said earlier, a direct response to General Assembly resolution 43/27 of 18 November 1988, by which the Assembly adopted the conclusions of the mid-term review and appraisal of the implementation of the United Na tions Programme of Action for African Economic Recovery and Development 1986-1990. It will be recalled that in paragraph 55 (c) of the annex to that resolution the Assembly asked African countries "to increase their efforts in the search for a viable conceptual and practical framework for economic structural adjustment programmes in keeping with the long-term development objectives and strategies at the national, sUbregional and regional levels". (resolution 43/27, annex, para. 55 (c» It will be noted that under the seeond preambular paragraph of draft resolution A/44/L.20/Rev.l the Assembly would recall resolution 43/27. In the first preambular paragraph it would recall resolution S-l3/2 of June 1986, the annex to which contains the United Nations Programme of Action for: African Economic Recovery and Development 1986-1990. By the third preambu1arparagraph the Assembly would simply take note of the resolution on the critical economic situation in Africa adopted at the ninth Conference of Heads of State or Government of the Movement of Non-Aligned Countries, held at Belgrade, Yugosl~via, from 4 to 7 September this year - the resolution by which the Heads of State or Government recommended that the Framework should constitute a basis for constructive dialogue between African countries and their development partners in the implementation and financing of country programmes. By the same preambular paragraph the Assenbly would also take note of paragraph 12 of section 11 of the Caracas Declaration of the Ministers for Foreign Affairs of the Group of 77, which says that the orthodox structutal-adjustment programmes currently in force in Africa Should be reviewed and replaced by other, more viable, alternatives that would take full ~ccount of the social, political and economic realities of Africa, restore growth and facilitate long-term development. By the fourth prearnbular paragraph of draft resolution A/U/L.20/Rev.1 the Assembly would simply recall resolution 1222 (L) adopted by the Council of Ministers of the Organization of African Unity at its fiftieth ordinary session, held at Mdis Ababa from 17 to 22 July this year. In the last prearnbular paragraph the Assembly would recall Economic and Social Council resolution 1989/116 of 20 July 1989, bearing the same title as the present draft resolution. By that resolution the Economic and Social Council requested the General Assembly to take up the Framework as appropriate at its forty-fourth session. (Mr. Phoofolo, Lesotho) '!'he operative part of draft resolution A/44/L.20/Rev.l contains two paragraphs. It would have the AsseJlbly take note with interest of the Framework and invite the international community, includiB3 the multilateral financial md development institutions, to consider the Framework as a basis for constructive dialogue and fruitful consultation. As regards the draft decision in document A/44/L.2l, it will be recalled that the final review and appraisal of the United Nations Pro9ramme of Action for African Economic Recovery and Development 1986-1990 will take place at the forty-sixth session of the General Assembly, in 1991. In view of that, the draft decision would have the Assembly decide that the activities in support of the Pro9ramne of Action should be continued pending the final review and appraisal of the Prografl1lle. We undertook very intensive inforMal consultatiORS with all interested delegations, and we were very appreciative of the excellent spirit that prevailed during the negotiations. The interest shown ~ all is clear testimony to the recognition extended by the international community to Africa's own initiatives. Africa is hopeful that both these texts will enjoy the unanimous support of the members of the Assembly. Mr. LEMERLE (France) (interpretation from French). I have the honour to be speaking on behalf of the European Economic Community Cl\d its member States on the item entitled RAfrican Alternative Framework to Structural Adjustment Programnwas for Socio-Economic Recovery and Transformation-. The Lagos Plan It8rked the first stage in Africa's consideration of the continent's problems. It was followed by preparatory work for the 1986 United Nations Programme of Action for African Economic Recovery and Development 1986-1990. (Mr. Phoofolo, Iesotho) The African Fra~~ork goes furtherl it presents a framework for structural adjustment prograllllles that deals simultaneously with adjlJ.stment problems and the structural transformation of African economies. The Framework is a document which must be properly appreciated. It offers an analysis without complacency of the structural causes of Africa's crisis that is particularly striking. The document shows - as if that were necessary - that African countries are aware that internatimal aid, while it may still be necessary, can only be a stop-gap measure if it is not directed towards the financing of a growth-oriented development stratew· The publication of the African Framework was preceded by a joint study of the World Bank and the Uni ted Nations Development Programme (UNDP), entitled "Africa's Adjustment and Growth in the 1980s". That study suggests, as one might have expected, that the countries that followed programmes to adapt their economic structures to the constraints and possibilities of production and trade did on average register better performances than those that have yet to begin an adjustment process. With respect to the effects of those policies the African Framework is much more subtle than those studies, but whatever the difference in assessing the present results of adjustment policies, the Framework provides evidence of the determination of the African countries to define the fl'Ddali ties of an adjustllllant that will enable them to plan their growth on sound foundations and to assume their own destiny. The analysis contained in the Framework allows us to highlight the 5)llowing pointsr In comparison with other continents, Africa suffers from specific handicaps which, in its development process, pose obstacles more significant than elsewhere. Clearly, the soil and subsoil of Africa oontain considerable resources, but their explcitation is _de difficult by geographical constraints and the harshness of often extreme climatic conditions. Furthermore, the weakness of infrastructures miUtates against the establishment of a solid, hOllDgeneous economic fabric. Lastly, while the work-force is plentiful, the effectiveness of the work itself suffers from shortcomings in training and lack of capital. In Africa, the extreme meagreness of the overall yield of production factors makes it difficult to accumulate a surplus and discourages productive acttv! t:y. Furthermore, investment of savings in the formal sector is unattractive, owing to the deterioration of banking systems md the low return offered, as well as the prospect of quick and easy profits in trade sectors with rapid rates of return. According to the Framework, the lack of training militates against the emergence of more complex production processes and hampers their extension to the eccnany as a vbole. A development of relatively unfavourable prices working against the rural sector has strengthened the migration towards the towns, a trend already encouraged by the lure of urban cultural ltDdels. That flight from the countryside should be seen in tandem vith the excessive dependence on external markets to be found in a nunber of African countries. Indeed, there are many countries that depend on exports of a small number of commdi ties or even one single commdit:y. The difficulty experienced in preserving an adequate !ood production has, inter alia, helped to make States even more dependent on food aid. The bloated public sectors and their poor efficiency have increased the difficulties of States faced with running costs which better regional economic integration might have made it possible to reduce. According to the Framework, the fight against the effects of lald-locked geography ala the redlctiQ1 through inter-African co-operation of the impact of land division is one of the challenges that Africa must meet in the years ahead. It is clear in that respect that it is necessary to encourage the emergence of genuine African regional markets. Such a trend would serve to strengthen production structures, making possible the emergence of economies of scale, and would result in increased competition. Further more, one result of that would be a great,er role for prices as a signal to the decisiofls of economic agents and as an indicator for a better allocation of resources. Handicapped by those structural weaknesses, sub-Saharan Africa has also experienced external shocks that have weakened it even furth'!r. The resumption of world production has not reached Africa's economies, which are faced by the development not only of technology but also of naterials unfavourable to the export of Africafl products. Affected by the deterioration in the terms of trade, African countries have had to bear up mder the fluctuations of the currencies they receive for their export products. Asymmetry in the structure of export earnings and of import expenditures is penalizing African countries, making them suffer the additional instability of the terms of trade. BeYCXld the odginal ays tern ,..f co-opera tion estabUshed by the European Community through Lame agreements, the monetary stability sought by the TWelve can be of assistance to Africa. The European monetary system enables the economic agflnts of participating countries to reduce their exchange risk~. African countries assoc14ted wi th the zone through co-opera tion agreements have such a Choice. The present situation for other African countries is particularly punishing at a time when the financing of imbalances affecting the world's wealthiest economy is leading to the persistence of high interest rates. Those high interest rates ate raising the debt-servicing costs of those African countries that contracted their debt at market rates. (Mr. Lemerle, France) Lastly, in a context which the Framework describes as Rscarcely democratic·, the persistent inequality of income and power between the social groups discourages populations from becoming genuinely involved in the development process. Criticisms of the structural adjustment programmes bf the Economic Commission for Africa (ECA) arise from the observation that, while these programmes have permitted the restoration of some equilibrium in public finances and the balance of payments, their impact on the economic performance of the countries in question was, in the view of the authors of the Framework, non-existent or harmful. !t is frankly difficult for us to offer any definitive judgement of the results of structural adjustment policies in Africa, in view of the recent establishment of many of those pro9rammes. FUrthermoreg one cannot clearly blame structural adjustment itself for the difficulties that have proliferated over a number of years without imnediately triggering a major crisis thanks to preventive measure whose many forms are known as deficits, inflation, and the overuse of resources. Prom the moment when such polL....es could no longer be pursued without jeopardizing the stability of the countries in question, long-overci1e adjustment was finally adopted, exposing the aforementioned weaknesses. (Mr. Lemerle, France) This analysis - md the study by the United Nations Development Programme (UNI)P) and the World Bank takes a rather more subtle approach - is supplemented by a number of action-oriented approaches. As the African Alternative Framework to Structural Adjustment Programmes for Socio-Economic Recovery and Transformation emphasizes, the pri1'lDCY given to t.he short term and to the main equilibriums could certainly seem excessive in countries with a limited ability to react to lIBcro-economic measures. The various actors in thJ structural adjustment scenario have taken that into account. We might recall the establishment by the International Mcnetary Fund (IMF) of the reinforced structural adjustment facility, which makes longer-term recovery programmes possible. Furthermore, the programmes, to M increasing extent, have a social component whose p.1rpose is to mitigate the impact of adjustment measures on the poorest sectors of society and to naintain adequate levels of expenditure on health and education. As the UNDP emphasizes, integration of programmes by Governments is one measure of the resolve with which these programmes are being implemented, and of the suppOrt for them by all economic agents that is essential to their success. In this context, stimulation of supply remains a primary objective. Within the African framework, the State must retain a prominent role in the pursuit of that objective, particularly in the creation md naintenance of the infrastructures needed for developnent and for adequate training of the people. The Twelve States of the European Com1lllnity mderstand this approach, but it is clear to them that in the other sectors progressive privatization must be envisaged. The countries of the Community feel that adjmtment shoUld be an opportunity to create a climate favourable to private investment, both national and international. This presupposes an effort by the countries concerned to create favourable conditions for investment through the strengthening of the legal security of operations and the easing of constraints, particularly fiscal constraints, that discourage investment • Moreover, investment is contingent on there being adequate savings. Ho\J3eholds cannot be expected to entrust their savings to institutions set up for this purpose unless they are guaranteed an adequate return and genuine protection. Savings are too scarce a resource to be wasted. That is why the TWelve believe that interest rates nust retain their role as an incentive to saving and as an indication of the cost of DDbilizing savings for investment. Money, obtained through a price-to-cost relationship, is put into the most profitable investments, and this helps to ~ecure ~~e optimum allotment of capital. A policy of artificially low interest rates would lead to a less strict selection of projects and could have the effect of !qumdedng capital. It could also drive the III03t volatile local savings out of the country. In this context, the quest for greater monetary and financial stability should be a matter of interest to everyone. Constant nonetary manipUlation cannot provide solutions to problems that resul. t from functional irregularities in the real econany. Devaluation may be necessary, but it is no panacea for frag 11e economies, in which there is not necessarily a link between the change in the ratio of prices that devaluation is supposed to bring about and the direction of external and internal demand towards locally produced goods. Besides contributiD:) to healthier financial development., the implementation of policies - suitably adapted to situations where they are necessary - in the spheres of the creation of money iI1d exchange and interest rates is one of the ways of securing the return of capital. After all, it is the flight of such capital abroad that is so damaging in terms of net transfers, even if, in Africa, those transfers remain clearly positive. (Mr. Lemerle, France) For the 1\Ie1ve, the stress laid by the Framework en the lItlbilization of internal resources for purposes of development, including the reduction of unproductive expenses, such as excessive expenditure On arms, is welcome .. The European Economic Community's financial commitment to Africa is very sUbstantial. As we have repeatedly recalled, we have not lClBt sight of the objective of raising donor countries' official development assistance to 0.7 per cent of their gross national product:. In the contegt of the conference on aid to the least developed countries to be held next year in Paris, the ~elve recall the validity of the objective of official development assistance that was defined in 1981 for countries in this category. The same consideration has pranpted the members of the Comnunity to give the World Bank real and resolute support in respect of the special programme that makes available to the poorest and Ifr)St heavily indebted African countries, on very soft terms, a proportion of the resources they need in order bo pursue their adjustment policies, with the support of the IMF. liware that the constraint of indebtedness could impede, if not altogether block, the resumption of growth in those muntries, the Twelve, through their inltiatives, contributed to a consensus which, at their Toronto summit in June last year, led to the proposal of a wmenuw of options, opening up very new prospects for debt relief and reduction. Similarly, several member countries have written off official-development-assistance loans to the poorest countries. This action deservas to be highlighted. The TWelve, on their own, have written off, or announced their intention to write off in the near future, $8 billion of official-development-assistance loans to sub-Saharan African countries. Also, the rescheduling within the Paris Club ensures that debt-servicing can, if necessary, be adapted to the financial capacity of the countries concerned. (Mr. Lemerle, France) The '!Welve hope that internediate-income African countries will be able to take advantage of the new mechanisms for the handling of debt which, under the auspices of the International Monetary FtI'ld end the World Bank, are designed to reduce the outstanding b~nk debt, or the cost of servicing that debt, of the countries that implement appropriate adjustment programmes. But our assistance, whether in the form of official development aid or in the form of debt relief, can only prolong the dependence of the African countries if it ls not accompanied, as a result of the opening up of markets, by the developnent of trade, leading to growth in the export earnings of the developing countries. Over and above the orig1nal co~peration machinery to limit the negative impact of reductions in export earnings, the Community intends to foeter trade, wlth Africa in particular. The Community's active participation in the negotiations of the Uruguay Round is evidence of this resolve to work towards liberalization of 1.nternational trade, thereby contributing to better integration of Africa into the wor:Id economy. In Africa, structural adjustment is still too recent a phenomenon for definitive conclusions to be drawn a9 to its impact on the economies of African countries. It is undeniable, however, that because of the special nature of the handicaps suffered by the countries of 8ub-Saharan Africa, structural adjustment programmes have to be properly adapted to those conditions. This has already been dale to a very large extent by the extension of repayment periods, the mobilization of resources in very special conditions, and an increasing emphasis on social aspects. However, one task remains - and it. is a big one. 1 refer to the continuing need to rebalance economies that are sometimes too extroverted, in order to ensure the resumption of growth on bases that will enable the African countries to avoid the mounting risk of dependence. (Mr. Lemer1e, France) For that purpose - CI1d this is undoubtedly the most novel and damanding aspect of the African Alternative Framework - adjustments must become a challenge to be met by a whole populatioo, not the inevitable fate of its poorest sections. For that to come about, the underprivileged sections must be given special attention, and with this in mind the Twelve have supported the initiatives of the multilateral institutions in supporting the social side of adjustment. In addition, several States of the Community have provided financing - very considerable anounts in some cases - for structural adjustments that take that concern fully i~to account. The Framework is thus evidence of recogni tion of the need for economic reforms and for them to be taken into account by those who must carry them out and are also the beneficiaries. Socio-economic change cannot be reduced to a mere process of social and economic modernization in which there is an attempt to copy the modes of production and consumpticn, as well as the institutions, of the developed countries. One of the prerequisites for success is i~tegration of African realities and values into the adjustment process. However, it would be an illusion to think that. the major objectives of development - food security, reduction of poverty and lasting, self'''sustaining growth - could be achieved if the need for improved economic health were neglected. There is not competition but complementarity between adjustment and development. Mr. ENGFELD~ (Sweden)z I have the honour to make this statement on behalf of the five Nordic countries - Denmark, Finland, Iceland, Norway and Sweden. The Nordic countries welcome this opportunity for further discussion of the difficult and pressing situation facing many African countries. The analytical ~ork presented in the report of the Economic Commission for Africa (ECA) on the African Alternative Fram~1ork is an important contribution to the continuing i I I ~------~--_ j efforts to achieve sustainable and equitable development policies. It i:: also a valuable contribution to the dialogue between African countries and their development partners, bilateral donors and multilateral organizations. The Nordic countries have a long and solid record of assisting Africa's development efforts. Especially during the 1980s, when many African countries have faced mounting difficulties, we have increased, adapted and strengthened our development assistance, with the aim of supporting economic recovery and long-term development. Many other donors and international organizations - in particul~r the United Nations and the international financial institutions - have done the same. However, external support can be only one part of a successful recovery process. In order to be effective and sustainable, recovery 1'l'.ust build 00 programmes and policies that are genuinely the African countries' own. This is something that is rightly underlined in the ECA report and is a reason t"o'l the report is important. Although the E~ report - even in its title - emphasizes differing positions in the world on adjustment and recovery policies, it is the impression of the Nordic countries that a consensus on the basic elements of recovery programmes has been evolving over past years. We consider in particular the unaninously adopted United Nations Programme of Action for African Economie Recovery and Development 1986-1990, which began in May 1986, to be a most important step in building the foundations for better co-operation for recovery in Africa. Certainly, there is no one right answer to all issues of development policiesa A plurality of views on questions of policy is an asset in our co~peration. A plurality of objectives is also natural in a world of many different nations. However, for an effective and sustained co-operative effort, agreement Q1 the basics is important. The Nordic countries have consistently argued that adjustment and recovery will take time and that a long-term perspective must be maintained. We have often emphasized the need for rehabilitatiJV:J the social seCt.ors, for new investment in productive activities and infrastructure, for environmentally sound policies, to pay real attention to the issues of women in development, for institutional development, and so on. I will say only at this time that unless such long-term issues are addreased we shall not see sustainable recovery. At the same time, it is clear that there will be no long-term development unless the severe imbalances in the economies can be rectified and growth in per capita income restored and increased. To achieve this, many African countries must persevere in their efforts in reforming economic policies. A great number of countries are today committed to such comprehensive adjustment and recovery programmes. We recognize that these progtammes often pose considerable difficulties in many spheres of society and that they require a strong political determination by the Governments of the reforming countries. Sometimes reforms inevitably have to run against short-term interests of important parts of society Md they must often be carried out against a background of frustrated social expectations. This underlines the necessity of making the reforms sustainable not only from an economic but also from a political and social view-point. That is why securing adequate external financing and support for the reforms is crucial. In this context, the Nordic countr:f.es reaffirm their support for the United Nations Programme of Action for African Economic Jecovery and Development, 1986-1990. There is scope for improving the reform programmes, and here the Bretton Woods institutions have a particular responsibility. The Nordic countries have frequently voiced the need to incorporate poverty concerns in these programmes (Mr. Engfeldt, ~eden) and we recognize the efforts being made to this effect. We have also stressed the necessity of tailoring reforms to individual country requirements. These are difficult issues end we must constantly develop our understanding of them. In this respect, we appreciate the suggestions put forward in the report of the ECA. The adjustment end recovery programmes of the African countries m\St also, as I h~ve indicated, be supported by sufficient external resources. In particular, increased balance-of-payments support, including debt relief, is required. The importance of achieving the 0.7 per cent target for official development assistance should be seen in this perspective. The Nordic countries have increased their own commitment and contributions. We have also worked very actively on a multilateral level for increased support, specifically for the poorest countries. In the framework of the World Bank Special Programme of Assistance it has indeed been possible to mobilize additional resources in support of recovery programmes in Afr ican countrles • However, more could be done both to increase ald to improve this co-ordinated effort, not least in strengthening the dialogue with African countries. We will continue to give this work high priority in our development co-operation. Co-operation for economic recovery is difficult, but it must be continued with reinforced efforts by all involved. In these joint efforts. all parties have their different roles to play. Clearly, no role is more important than that of the African countries themselves. It is only they that can make reforms have a lasting effect. Real change can come only from inside. (Mr. Engfeldt! Sweden) The strong efforts made by Afdcan countries to achieve economic recovery deserve praise. As we approach is MW decade, it is encouraging to see that 1n many places progress is indeed being made in fightiD;J the deep crisis. Yet it is nuch too early to say whether we are already on a path towards sustained recovery. However, with the profound changes taking place in the world, the Nordic countries hope that \'11: are indeed IIIOving into a decade of deeper international co~peration. The interdependencies that have become DOre apparent necessitate it, and North-South solidarity demands it. The Nordic countries will remain committed to supporting recovery and development in Africa. We shall have many occasions to return to these issues. In our discussions the report by the Economic Commission for Africa (ECA) will have been a"i important contribution. Kr. PEJIC (Yugoslavia) I The unfavourable international economic environment which brought about the deterioration of the position of developing countries has had particularly ne9ative effects on Africa. African countries have been experiencing a continuiD;J deterioration of the economic and social situCiltion, \ti\ich, in nany of those oountries, has assumed crisis proportions. Since the begiMing of the 19808 the per capita income in the African countries has steadily declined, on average by about 2.6 per cent per annum. The sharp decline in the stS'ldard of living of the African population has particularly severely lIld adversely affected the most vulnerable groups. There is no doubt that the posi tion of the African countries has been moet adversely affected by the unfav~~rable development of commodity prices and the rising burden of their external debt, which has led to an unprecedented net outflow of resources from those countries. All this, coupled with natural calamities, particularly drought and desertification, has practically halted African count~ies' developnent. (Kr • Engfeldt , Srofeden) A year has elapsed since we considered in this same forum the mid-term review of the United Nations Programme of Action for African Economic Recovery and Development 198&-1990. On that occasion we jointly noted that, despi te courageous efforts exerted by African countries to implement that Programme of Action, the economic situation in those countries not only had not improved but had further deteriorated. The adverse external environment and inadequate support from the international community for Africa, as well as exceptionally unfavourable climatic conditions, are the principal causes of the slow implementation of the Programme of Action. General Assenbly resolution 43/27, adopted on this issue, urged African countries to increase their efforts in the search for a viable conceptual and practical framework for economic structural adjustment programmes in keeping with the long-term development objectives and strategies at the national, sub-regional and regional levels. The analysis carried out by the Economic Commission for Africa (ECA) of the implementation of orthodox structural adjustment programmes has clearlY shown all the shortcomings of these programmesa in many cases sustained economic growth has not materialhed, investment has tended to decrease, budget and balance"'Of-payments deficits have tended to increase, and the debt burden has become unbearable. The most extensive negative consequences have been felt in social sectors, particularly education and primary health care - in a word, in human resources development. The inadequate results achieved by the implementation of conventional structural adjustment programmes, and primarily the failure to take into account the social and huma'l dimens ions ll'ld the long-term development objectives, imposed the need to seek new solutions. On the basis of the analysis of the shortcomings of those programmes as well &'3 the analysis of the structure and, by the same (Mr. Pejic, Yugoslavia) token, of the basic soelo-ec::onamic needs of African countries, the Economic Colll'lllasion for Africa prepared, and African Heads of State or Government adopted at their July 1989 summit Conference, the Alternative Pramework to Structural Adjustment Programmes for Soclo-Economic Recovery and Transformation. It is certainly not for lB to judge wbethet the African A1ternative Pramework is the right answer to the challenges facing African countries, but there is no doubt that the problems, requirements lInd methods of African socio-economic development csn best be determined by the African countries themselves. What should certainly be pointed out is that at the centre of this A1ternative framework is the human dimension - recognition that it is only through motivating and empowering people, as well as ensuring an equitable distribution of income, that development can take place on a sustainable basis, as stated by the Executive Secretary of the ECA. What African countries need now is international support for their new efforts to achieve the goals they have set themselves. 'l"hey need larger autonollOUS financial inflows from developed countries and, in particular, increased flexibility on the part of multilateral development and financial institutions. Of course, success cannot be ensured if African countries themselves cb not mobilize the domes tic: resources that would be required in addi tlCft to the necessary international financial support. The Ninth C'.onference of Heads of State or Government of the Movement of Non-Aligned Countries adopted a separate document Q'a the critical economic situation in Africa, by which it drew the attention of the international community once again to the exceptionaUy difficult situation facil\9 African countries. 'ftle non-aligned countries called eor accelerated and effective implementation of the United Nations Program. of ActiCln for African Econcmlc Recovery find Development and ~rged the developed countries and multilateral financial and development (Mr. Pejic o Yugoslavia) institutions not only to ificrease in real terms the resources flow to Africa but also to improve the terms and conditions en which resources are disbursed. The summit Conference also recommended that the African Alternative Framework should constitute a basis for constructive dialogue between African countries and their development partners in the implementation md financing of country programmes. I should like to emphasize once again the importance my country attaches to the enhancement of the economic co-operation with African countries that is carried out in congruence with the programmes and economic priorities of those countries. Responding to the appeal to contribute to the Action for Resisting Invasion, Colonialism and !parthe!,g Pund (AFRICA), my country made a contribution in the &lIDunt of 912 million, 80 per cent of which has been used for equipment deliveries and 50r goods and serviceS and the rest for technical and other types of assistance~ Furthermore,' Yugoslavia allocated 2,100 milliQ'1 dinars from its Sol!darity Fund to non-aligned and other developing countries for 1989 and is a member of the African Bank for Development, through which it participates in the development projects of those countries. It is also an active participant in the Southern African Development and Co-ordination Conference. We hope that Yugoslavia's co-operation with African countries will contribute to the success of their efforts to carry out economic reforms in ordElt to overcome their economic problems. We expect that the international ooll'lllunity will respond generously md support the endeavours of the African countries - an indispensable pre""Conditloft for the success of their undertaking_ In this regard we support the proposed draft resolution by which the international community and multilateral financial and development institutions are invited to consider the African Alternative Framework to Structural Adjustment Programmes for Socto-Economic Recovery and Transformation as the basis for constructive dialogue and fruitful CQneu1tatlons. (Mr. Pejic, Yugoslavia). Mr. PORTIEj! (Canada) (interpretation from French) I The 1980s have proved difficult for Africa ald its people. '!'he continent has been caught in the grip of an economic and financial, indeed, even a social and political, crisis that has stifled its enOfllDUS potential and set back its development by many years. This has meant great hardship for all Africa's children - farmers, industrialists, fishermen, miners ald so on. Courage and strength on the part of Africa and help from Africa's friends in the international community have been needed to carry forward the difficult process towards recovery begun in 1986 under the auspices of the United Nations Programme of Action for African &:onomic Recovery and ~t/elopment. 1986-1990. There has been progreS9. Policy reform and economic a~justment are already bearing. fruit in many countries, but this has not been as widespread or as rapid as had been hoped. Economic reforms, debt relief, new resource commitments and improvements to the international economic environment all take continuing commitment and a great deal of time. Unflinching courage, strength and support are needed to carry Africa Ithrough to the end of the United Nations programne and towards the twenty-first century. The quest for the way forward will continue to challenge our collective energy and creativityo It is obvious that development and growth are not an easy process. The process is all too imperfectly mderstood, but in recent years there have been huge strides in understanding the complexity of development, the basic requirements for growth, the intricacies of the economic interdependence of countries and the diversity of conditions in developing countries. There is growing mderstanding by deVeloped and developing countries alike of the central position of the ooncept of sustainable development in any development or aid strategy. Sustainable development is a long-term matter and the long-term impact of policies and measures 1IUSt be taken into account. It is an essential element of the viability of development strategies Cl'\d economic policies, whose long-term environmental dimensions it governs. It acknowledges the underlying 80cial md polltical imperatives of development and ecooomic policies. Sustainable development is about reducing dependence on external financial and technical support and making people masters of their own development. The African Alternative Framework to Structural Adjustment Programmes for Socio-economic Recovery and Transforma tion springs from this fW'ldamental change in thinking among some policy-makers. It is a strategy for the long term that attempts to take into account the wide range of economic, financial, institutiooal and socio-politf.cal factors that influence development. As such it is an important contribution to internatiooal discussion on development, economic growth ald structural adjustment. It is important, essentially, because it represents a genuinely African perspective. we fully appreciate the thought that went into the preparation of this docment and commend the Economic Commission for Africa for its efforts in bringing together the wide range of thinkers who contributed to its preparation. There is growing recognition that the question is not whether to pursue economic adjustment D but rather hat to do so. We see the new African solution as a useful contribution to discussions on how to approach adjustment. The viewpoints of bilateral dmors, the World Bank and the Internatiooal Monetary Fund are all important. It is essential that we continue our constructive dialogue bilaterally and multilaterally and in the appropriate forums in order to find the best 8PprCll!1ch. Structural adjustment is vital for long-term economic growth and development and for the solution of the debt problems of developing countries. Integral to adjustment are measures to bring fiscal deficits under control, to restore foreign exchange rates to sustainable levels and to stimula te local prodJetion and (Mr. Fortier, Canada) investment through appropriate priciriCj policies, taxes, regulations and reduced sUbsidies. Investment is fundamentai to sustainable development, and domestic and foreign investors will respond only if they have confidence in the domestic economic environment. The target of our efforts is, of course, people. In this context, it is essential to improve the economic and social catdi tions of the populations of developing countries, particularly in the case of vulnerable and underprivileged groups. Development resources are becoming increasingly scarce and for the sake of these people we must make our best efforts to use these resources in the most effective way. Mjustt!llmt is critical. The framework of economic policies has to be right or everything else we do is wasted. Canada's conmitmcmt to Africa is well known, 4S per cent of all our bilateral assistance is channelled to Africa. In 1987-1988 we disbursed some 647 million Canadian dollars in bilateral aid to Africa, and we have contributed substantially, through the Internatiatal Monetary Fund, the World Bank and the African Development Bank, to multilateral efforts to make available the additional resources needed by Africa. Africa's problems go deep. They will not be resolved easily or without very determined efforts. There is great potential in Africa's soil, its resources and its people, and this gives grounds for hope. In 1986 African Governments, supported by the international community, set out on a road to African economic recovery and development. ~he journey will be a long and h~rd one and will continue long after the United Nations Programme has ended. Africa must travel this road towards its own future itgelf, but it will not travel far without appropriate support from the international community. I can assure the Assembly that Canada will do its bit. (Mr. Fortier, Canada) Mr. ZVEZDIN (Union of Soviet Socialist Republics) (interpretation from Russian) I My delegation shares the view expressed by preceeding speakers that the issue before the Assenbly today is an extremely important one. The crisis of economic development in Africa is not only regional but also world wide in nature, as it affects the interests of mank ind as a whole. • A lack of stable economic development in the African countries poses a real threat to international economic security and has a damaging effect on the world'S economic and, indeed, political atmosphere • •• Tbgether with such fundamental reasons for the current critical situation in the African countries as internal difficulties of economic growth and the inequitable situation that they occupy in the world economy, a negative role is played by regional conflicts that undermine the social and economic development of the continent and its normal foreign trade relations. The actions of the South African regime are of particular concern and in actual fact the United Nations Programme of Action for African Economic Recovery and Development in 1986-1990 is virtually at a standstill. The deterioration in the terms of trade for mineral and agricultural commodities and the continuing protectionism with regard to export products, the unceasing and substantial outflow of financial resources, foreign debt, losses from the sharp currency fluctuations and inflation seriously inhibit economic development in Africa. The Soviet Union is deeply disturbed at this state of affairs. In our opinion the only way out of the vicious circle of the interrelated economic problems in Africa is thro~gh an improvement in the general economic and political situation and resolute and and co-ordinated action to eliminate the inequitable situation of African countries in the international division of labour. A durable and reliable solution to the problems that have accumulated in Africa will be possible only on an integrated and comprehensive basis. In this context we take a positive view of the document submitted to us, the African Alternative Framework to Structural Adjustment Programmes for Socio-Economic Recovery and Transformation. We feel that it contains a generally thoughtful and balanced account of the essence of the economic problems of the continent and ways to achieve the development goals set forth in the Lagos Plan of Action and also in the United Nations Programme of Action for African Economic Recovery and Development 1986-1990. That is why the provisions of this document can well become part of the important foundation for constrlJctive international dialogue and also for the elaboration of national programmee and structural transformations. We feel that the integrated character of the African Alternative Framework establishes the right conditions for a resolute effort to resolve the tasks in the field of development, taking into account the dynamic interrelations existing between all the fundamental elements of economic transformations and the need to link structural changes and long-term development. It also logically develops the just demands of the African countries for recognition of their key role in the determination of their internal economic policies and also on auestions of co-ordinating foreign assistance. A new emphasis is being given to such crucial tasks as the human factor and the enhancement of the well-being of the people and guaranteeing an autonomou~ process of economic growth and development, economic integration and so forth. Practice has shown that only a sovereign State is able and entitled to estah1ish an optimal relationship between the public, co-operative, private and other sectors of the economy that regulate the scale of domestic and foreign enterprise proceeding on the haRis of the features of the country. The fifteenth Conference of Ministers of the Economic Commission for Africa endorsed a concept the essence of whicn amounts to a structural redesign in combination with a long-term economic transformation. We believe that this will be valid only if concrete political mea~ures are taken by the interntional community to develop economic relations between States on the hasis of stahility, predictahility, eouality of rights, mutual intp.rests, non-discrimination and freedom of acceas to technology. (Mr. Zve~din, USSR) In this respect the work of the United Nations on the system of early oetection and forecasting of such economic problems is especially timely. This system would be particularly helpful to Africa, in the light of the difficulties frequently faced by national services involved in economic analysis and forecasting. Real progress towards the solution of important tasks such as increasing production and making effective use of resources, bolstering their scientific and tachnological base, diversifying production, and establishing the 09timal relationship between the public and private sectors, etc., can help strengthen the economic security of the African countries and make tham less vulnerable to short-term foreign economic adversity. An important candi tion for the successful solution of the ecom::>mic tasks facing the African countries is a just and stable settlement of the situation in southern Africa. The process of independence for Namibia, which is now at its climax, and also positive developments in solving other regional conflicts also create favourable condi tions for economic and social development. The development of the African countries would be enormously enhanced if they were able to use the resources which will be released as a result of concrete disarmament steps. In his message to the participants of the twenty-fourth session of the Assembly of Heads of State of the Organi2ation of African Unity (OAU), Mr. Gorbachev emphasized that the Soviet Union advocated the establishment of the spec ia1 Disarmament f.or Development Fund, wi th partiCUlar emphas is on Africa in this respect. The compl~xity and the depth of economic problems in Africa require the ~ombination of the efforts of all States regardless of their ideology or economic capabilities. F~t our part the Soviet Union actively and ~actically supports the ~fforts of the African countries to overcome their underdevelop~nt and to achieve economic autonomy and contributes, to the extent that it is able, to the implementation of the P[ogtamme of Action. Co-operation in the industrial and agricultural sectors and the development of human reso~~©@s is growing. The Soviet Union reacts promptly to the requests of African countries for assistance. In 1988 the Soviet Union provided economic assistance to the least developed countries, most of which are in Africa, to the extent of 0.21 per cent of the gross national product of the country. Taking into account the severe situation in those States, particularly in tropical Africa, the Soviet Union has declared its willingness to establish a long mrator turn ~ up to 100 years - on the payment of the debt by the least developed countries and it has written off many such debts entirely. In the African continent we do not have any concrete interests and we have no intention of foisting our ideology on anyone. Here, as in the general context of international economic relations, we advocate a dialogue that is free of any ideolcgy and we advocate a broad international consensus. W! feel that the draft resolution submitted on this item - I refer here to documents A/44/L.20/Rev.l and L.2l - deserve support. Mr. LI tU!! (China) (interpretation from Chinese): At the request of the Organization of African States meeting last July the forty-fourth session of the General Assembly has decided to place on its agenda an item entitled"African Alternative Framework to Structural ~njustment Programmes for Secio-Economic Recovery cnd Transformation". This shows that the international commu."ity has attached importance to and is concerned with the present economic situation in Africa. The Chinese delegation hopes that, throuqh discussion, the international community will ar~ive at a broader common understanding of the economic situation in Africa and make further contributions to the economic recovery and developmant of Africa. Over the past 10 years African countries have come one after another to take the course of structural adjustment and reform as they have endeavoured to conquer natural disasters, overcome severe difficulties, develop their national economy and improve the quality of life for their people. This represents the most far-reaching and widespread change African cOuntries have ever witnessed since their achievement of political independence during the 1960s. (Hr. Lt wye, China) In the past year or two, changes constituting something in the nature of a turning-point in the international political situation have taken place, while the problems facing the world economy have looked even more grim. with their economic adjustment and reform at the crossroads, the African countries are faced with an imminent challenge. It is against this background that African countries have tried hard to find answers to such questions as how to evaluate the changes brought about through economic adjustment and reform and what direction they should follow in the future development of Africa. They then put forward their Alternative Framework. It has been stated time and again by African countries that the development of Africa is mainly a matter for the African countries a'ld peoples themselves. They have also pointed out that recognition of this truth is the first step. Africa still has to rely on its 0 .. efforts in seeking a road of' development suited to the local conditions. Over recent years, African countries have made unremitting efforts and accumulated gratifying experience in this regard. The Alternative Framework i~ precisely a systematic summary of such efforts. It should be said that the Alternative Framework represents an analysis and assessment by African countries of their existing adjustment programmes in the light of their own hard and often tortuous experiences with adjustment and reform. It is a sincere effort on the part of African countries to attain economic recovery and revitalization in their continent. We think that the African countries have accomplished something very valuable. The international oommunity~ especially the developed countries and the international financial institutions, should therefore stUdy the Alternative FramAwork carefully and give it their positive consideration. 1 should now like t.o make a few Observations a, the principles that should be followed in the discussion, formulation and implementation of adjustment programmes. ---------. CMr. Li roye, China) First, as we have always maintained, the economic development of any country must not be divorced from its actual conditions. All programmes of adjustment and reform mISt take fully into consideratiQ'1 the national conditions ald the specific development objectives of the country in question. Only in this way can there be beneficial results. It would not be advisable for anyone to try to impose on other countries certain fixed economic models in the name of adjustment and reformD Anyway, such an attempt would not bring about the expected results. Secondly, an adjustment and reform programme should be designed not only to address urgent problems of the country in ques tion, but also to serve the long-term objectives of its economic development. Only this can ensure early recovery of its development ttPmentum cnd help it achieve steady growth. Thirdly, the current state of the African economy has a profound historical background. The economic development of African countries began on a very fragile basis left over from the past. In addition to bearing the heavy yoke of history, Africa has remained restricted and hampered \.I\der the irrational and unjlSt economic relations now existing in the world. The unbalanced world economic structure and the irrational international economic relations in the past decade or so have seriously affected Africa's economic recovery and development. On the other hmd, as facts have shown, countries in today's world have become more economically interdependent. Africa occupies an important place in the developing world. If for too long the economic difficulties of the African countries cannot be addressed properly, the economies of the developed countries also will suffer from their negative consequences. Therefore, we believe that, while African countries proceed with their structural adjustment, the developed countries also should undertake to carry out corresponding adjustment measures by minimizing the hampering and damaging impact of their irrational policies and economic structures (Mr. Lt IAlye, China) on the economic development of African countries ald helping to create a Ilk)re favourable external environment, to the benefit of those countries. Furthermore, the developed countries and the international financial institutions should come to the aid .of the African countries' adjustment and reform efforts with more financial and technical assistance. African countries have made arduous efforts and sustained huge sacrifices in implementing the existing programmes of adjustment and reform. Yet, far from achieving recovery, many countries have sunk deeper into difficulties with their socio-economic development. It is our sincere hope that the international financial institutions will face this reality squarely, seriously analyse the implementation of existing programmes cmd come up with a new assessment of them. They should also heed the criticisms of these programmes by African countries. On this basis, all parties can consider in a spirit of co-operation, how to formulate and implement a more practicable programme in the future. As a member of the international comltllnity, China has always been concerned about Africa's development. China and the African countries are all developing countries. We have offered assistance, to the best of our ability, to African countIies in their effo.. ts to develop their economies. Our aid programme for Africa occupies an important place in our overall foreign aid programme for the developing countries. In this respect we ~ave always abided by the spirit of such principles as respect for sovereignty, and the need for aid to be consistent with national conditions and to facilitate development, and have offered preferential terms. We shall continue to do so in the future. With the qrowth of our own national strength, we shall gradually increase our economic aid to Africa. To the extent possible, we will continue to provide African countries with long-term interest-free loans. When a loan matures, repayment can be deferred if (Mr. Li ~ye, China) the country involved is indeed in difficulty. China is a low-income developing country itself and our economic relations with the African countries are those of IIUtual help between needy friends. thder no circumstances will China press for repayment. We shall continue and strengthen our economic and technological co-operation with the African countries, in keeping with the principles of equality, 1Ibtual benefit and the attainment of common progress. We are ready to join African countries and other developiB) cO\mtries in a common effort to reform the irrational inte~national economic relations, strengthen South-6outh co-operation and prollDte North-South co-operation, with a view to seeking balanced development in the world economy. We are convinced that, relying on their persistent p.fforts and with the vigorous support of the international community, the African countries will undoubtedly reverse the current disadvantageous situation, advance steadily along the road of economic development and make greater contributions to the development of the entire world. ~!. CHOO (Malaysia), 1 have the honour of speaking on behalf of the Group of 77. The decade of the 1980s has been a disastrous one for develop;nent in Africa. The African nations have to cope with dapressed commodity pdCe1h declining export earnings and mounting external debt. In addition to economic burdens, the African peoples suffer the ancient scourges of drought and locust infestation, md, Ilt the present time, spreading desertification a"d soil erosion. The world, which measures the well-being of a country by ste tistics, is alarmed that the average per capitIS output in Africadeelined from 8752 in 1982 to '641 in 1997. In 1988 the wholesale prices of Africa's key exports, including ~il, (Mr. Li Luye, China) stood at just over the 1980 level. The fall in the prices of commdt ties from 1986 to 1988 alone oost it '50 billion - almost a quarter of its export earnings. Africa es external debt, which was S48 billion in 1980, reached $170 billion in 1984, ana at the end of 1988, stood at '230 billion. (Mr. Chco, Malaysia) The structural adjustment programmes ..,dertaken by African countries have fallen short of the objective of reactivating their economic growth and development. At its forty-third sessic:n the General Assembly adopted by consensus resolution 43/27, entitled ~id-term review and appraisal of the implementation of the United Nations Programme of Action for African Economic Recovery and Development 1986-1990·. Paragraph 55 (c) of the annex to the resolution states that the African countries should increase their efforts in the search for a viable conceptual and practical framework for economic structural adjustment progranrnes in keeping 'With the long-term development objectives and strategies at the na tialal, subregional and regional levels. In response to the resolution, the African countries adopted during the sixteenth session of the Economic Commission for Africa held earlier this year, the African Alternative Framework to Structural Adjustment Programmes for Socio-Economic Recovery and Transformation. This Altetnative Framework was endorsed by the Council of Ministers of the Organization of Aft!aan Unity at its fiftieth ordinary session. The current session of the General Assembly has given the international community an opportunity to engage in a constructive dialogue regarding this matter, in accordance with Economic and Social Council resolution 1986/116. The Chairman of the African Group, the representative of Lesotho, introduced the draft resolution on this IIlltter earlier. We, the Group of 77, expres3 our full solidarity with the African Group an this issue, and our support for the draft resolution 0 (MrG 0100, Malaysia) Mr. KUBat (German Democratic Republic), Now, as in the past, Africa's critical economic situatim is a challenge to the entire internatiooal community. The adoption by consensus of the United Nations Programme of Action for African Ecmomic Recovery and Development 1986-1990 was a very important step in the search for ways and means to contribute to overcoming the problems facing that continent. Meanwhile, African countries increased their efforts to find a viable conceptual and practical framework. The document before us, "African Mternative Framework to Structural Adjustment Programmes for Socio~Economic Recovery and Transformation" (A/44/315, annex) is a clear expression of the African peoples' willingness and ability to intensify their own efforts to solve their grave problems. The German Democratic Republic has always shown its deep cOlllllitment to contributing to the solution of global and regional problems. As the neWly elected ,.. Prime Minister of the German Democratic Republic has just confirmed this morning in h is policy statement , "My country will continue in the future to be linked in solidarity with, and will remain a reliable partner of, the States of Asia, Africa and Latin America. The German Democratic Republic will oontinue resolutely to support the justified proposals of these States concerning the solution of their national and social problems and will make every effort to ensure the peacefUl settlement of hotbeds of conflict." In that spirit, the German Democratic Republic will continue to do everything it can possibly do to support the African countries. The PRESIDENT, The Assembly will now take a decision on draft resolution A/44/L.20!Rev.l. A recorded vote has been requested. A recorded vote was taken. In favour, Afghanistan, Albania, Algeria, Angola, Antigua and Barbuda, Australia, Austria, Bahamas, Bahrain, Bangladesh, Barbados, Belgium, Ben!n, Bhutan~ Bolivia, Botswana, Brazil, Brunei Darussalam, Bulgaria, Burkina Faso, Burundi, Byelorussian Soviet Socialist Republic, Cameroon, Canada, Cape Verde, Central African Republic, Chad, Chile, China, Colonb ia, Comorcs, Congo, COte d'Ivoire, Cuba, CYPrus, Czechoslovakia, Democratic Yemen, Denmark, Djibouti, Ecuador, Egypt, El Salvador, Ethiopia, Fiji, Finland, France, Gabon, Gambia, German Democratic Republic, Germany, Federal Republic of, Ghana, Greece, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Hungary, India, Iran (Islamic Republic of), Iraq, Ireland, Israel, Italy, Jamaica, Japan, Jordan, Kenya, Lesotho, Liberia, Libyan Arab Jamahiriya, wxembourg, Madagascar, Malawi, Malaysia, Maldivt':s, Mali, Malta, Mauritania, Mauritius, Mexico, Mongolia, Morocco, Mozan'bique, Myanmar, Nepal, Netherlands, New Zealand, Nicaragua, Niger, Norway, Quan, Pakistan, Panama, Papua New Guinea, Peru, Philippines, Poland, Portugal, Qatar,· Romania, Rwanda, Saint Vincent and the Grenadines, Sao Tome and Principe, Saudi Arabia, Senegal, Seychelles, Sierra Leone, Singapore, Solomon Islands, Somalia, Spain, Sudan, Suriname, Swaziland, Sweden, Syrian Arab Republic, Thailand, '1'ogo, Trinidad and Tobago, Tmisia, '.l'urkey, Uganda, Ukrainian Soviet Socialist Republic, Union of Soviet Socialist Republics, United Arab Emirates, United Kingdom of Great Britain and Northern Ireland, United Republic of Tanzania, Uruguay, Venezuela, Viet Nam, Yemen, Yugoslavia, Zaire, Zanbia, Zinbabwe Aga inst , Uni ted States of America Draft resolution A/44/L.20/Rev.l was adopted by 137 votes to 1 (resolution 44/24) •." ." Subsequently the d~te9ations of Kuwait and Samoa advised the Secretariat that they had intended to vot~ in favour. The PRESmENT, The AsseJlbly will now take a decision on draft decision A/44/L.2l. May 1 take it that the Assembly wishes to adopt that draft decision? E!aft decision A/44/L.2l was adopted. The PRESIDENT, 1 shall now call on the representative of the United States, who wishes to make a statement in explanation of vote. May 1 remind delegations that, in acoordanoewith General Assembly decision 34/401, explanaHons of vote are Hmi ted to 10 minutes and should be made by delegations from their seats. Mr. WILKINSON (United States of America), We welcome the emphasis being placed in many international forums on the need for comprehensive macro-economic and structural adjustment in developing countries. This structural adjus~~ent is aimed at restoring broad-based economic grOlfth, and we very f1Uch want economic growth to take place. We recognize the importance of ensuring that adjustment programmes are appropriate and sustainable. We \l\derstand very well that their implementatioo may be difficul~, particularly in countries with fragile economic and political systems, in countries where there are weaknesses in institutions, where there are structural rigidities and insufficiently developed human resource capacity. Tb that end, we very definitely feel that some of the issues raised in the African Alternative Framework contribute to the international discussion. They are very helpful in highlighting some of the structural weaknesses of African economies and pointing out the difficulties inherent in implementing adjustment progr~~~s in the region. More fundamentally, the African Alternative Framework, in underscor~ng the central importance of adjustment to restoring grOlfth and development, can help to broaden understanding of and support for this important process. 1egretfully, however, we cannot accept the thrust of the At ternative in that it suggests that adjustment has not worked and, consequently, that a ~ew framework is needed. The document, we believe, overlooks the progress that has occurred over the past several years, largely as a result of internationally supported adjustment programmes. We also feel that the multilateral financial and development institutions - the World Bank, the International Monetary Fund (IMF), and so on - have again and again demonstrated that they are sensitive to the special needs and circumstances of developing countries implementing adjustment programmes. We commend their efforts in supporting and promoting economic policy reforms in developing countries, and are encouraged by the initial signs that these efforts are beginning to bear fruit. We do not want to stop now. ," We believe that a ·viable conceptual and practical framework for economic structural adjustment programmes·, as called for in General Assembly resolution 43/27 {annex, para. 55 (c», is already in place. This ·framework" is exemplified by the structural adjustment programmes supported by the World Bank and the ]Mr. Because of this, we cannot join with our colleaguesl we cannot endorse a call for a new framework or the suggestion that the African Alternative be "a basis" for (Mr. Wilkinson, United States) future consultations. Characterizing the African Alternative as "a basis" detracts from what we see as the fundamental basis for dialogue on structural adjustment, which was developed in connection with the meeting in the spring of 1989 of t' , WOrld Bank Development Committee. In our discussions with the sponsors of the draft resolution, we pointed out the problem with that phrase, "a basis". We would have wished to see the word "basis" changed to "contribution". It was not, and therefore, because of one phrase, we had to vote against the draft resolution. We believe that structural adjustment is a dynamic and evolving procesS, and we look forward to continued productive discussions in the appropriate settings. We wish from the heart that economic growth and development take place strongly, firmly, continually , and as soon as poss1-ble. The PRESIDENT, We have concluded our consideration of agenda item 155. The meeting rose at 6.10 p.m.