In conjunction with the UNCTAD XIV Session taking place in Nairobi, the G77 and China held a Ministerial meeting in Nairobi to prepare for the session.  The South Centre was invited to the meeting and prepared the following statement.  A shorter version of this was presented to the meeting by Dr Li Yue Fen on behalf of the South Centre.

Statement by

Mr. Martin Khor

Executive Director, South Centre

Ministerial Meeting of the Group of 77 and China during UNCTAD XIV

Nairobi, 17 July 2016

It is a privilege for the South Centre to be present at this ministerial meeting of the G77 and China on the occasion of the UNCTAD XIV conference. I would like to start by complimenting the G77 and China, under the skillful stewardship of H.E. Amb. Wayne McCook of the Permanent Mission of Jamaica in Geneva, for their commitment and dedication to achieving an outcome that reflects developing countries' interests at UNCTAD XIV. I would also like to express our deep appreciation of the warm hospitality of Kenya as the host country of UNCTAD XIV and this meeting.

This ministerial meeting takes place against the backdrop of protracted and uneven recovery from the 2008 global financial crisis, persistent macroeconomic and political uncertainties as well as gloomy economic forecast for the coming few years. Though developing countries as a whole proved to be resilient at the beginning of the crisis, the second and third round effects of the crisis have really hit the developing countries hard. Growth is sharply down in almost all developing countries, with a few in deep recession. Meanwhile growth in the United States, while back to the pre-crisis level, remains fragile. Europe largely continues to be in the grip of austerity responses to the financial crisis. The recovery path from the crisis reveals the differences in stages of economic development between the developed and the developing countries. The global financial crisis laid bare the weaknesses in global economic and financial governance and highlighted existing systemic problems. The crisis and its impact underscore the need for the international community to reinvigorate the development agenda.

An important aspect of today's global economy is that the economic weight of the South has undeniably increased, with China and India accounting for a large share of this increase.  Developing countries as a whole are more integrated into the world economy.  However, these changes have not yet constituted a full scale shift in the global landscape. The development gap between the North and the South still exists, even exacerbated for some countries.  The task of bridging this gap is becoming more complex and difficult in  today's global economic environment.  

Throughout the various major international negotiations that took place last year that resulted in the recently concluded international outcomes like the 2030 Agenda for Sustainable Development, the Addis Ababa Action Agenda on Financing for Development, and the UN Framework Convention on Climate Change's Paris Agreement, the South continuously highlighted the need to close the development gap faster and in a more sustainable and equitable manner.

None of these outcomes of the international community could have been achieved without the support and leadership of the Group of 77 and China.

UNCTAD XIV's overall theme of “From decisions to actions” lays stress on the need to focus on implementation of these outcomes and decisions. The implementation of these decisions would once again require the leadership and commitments from the Group of 77 and China as well as greater efforts to forge a global partnership in the common endeavour in advancing the agenda for development in different areas.

UNCTAD has been reaffirmed in one of the 2015 international outcomes as the focal point within the United Nations system for the integrated treatment of trade and development and interrelated issues in the areas of finance, technology, investment and sustainable development. In view of the continuing impact of the global financial crisis and the various 2015 outcomes, UNCTAD should be strengthened more than ever.

Providing UNCTAD with a strong mandate is the starting point and an essential requirement for strengthening UNCTAD. At the beginning of the preparatory process for UNCTAD XIV, this was recognized by the Geneva G77 and China negotiators as the main purpose of coming to Nairobi. In doing so, the G77 would be strengthened concomitantly because G77 and UNCTAD are twins, born at the same time and for the same vocation.

What developing countries seek in Nairobi should be nothing less than ensuring that UNCTAD is able to fully, effectively, and adequately play its proper role in supporting developing countries play their part to implement the decisions the international community took in the conferences in 2015 and in previous UNCTAD ministerial conferences. This is especially important in the current economic downturn and mounting multiple challenges to development, such as slower growth, increasing debt level, capital flow volatility, declining international trade, commodity price fluctuations, refugee and migrant crises, climate change and diseases.

UNCTAD XIV should therefore result in clear outcomes reflecting developing country concerns in relation to the following:

• Policy space for development (not just policy space for poverty eradication)
• Debt issues
• International tax regime reform
• Recognition of the need to provide differentiated and preferential treatment to developing countries in economic and other multilateral regimes
• A development-oriented and rules-based multilateral trade regime having strong development outcomes
• Transfer of technology and the provision of other means of implementation for achieving development are important enablers for the achievement of development in developing countries
• Long-standing developed country commitments to provide technological and financial (ODA) support to developing countries need to be fulfilled
• A more participatory, transparent and inclusive multilateral norm-setting process in economic policy issues
• Global financial and economic crises and their effects on developing countries as well as policy recommendations on how to redress the negative impacts
• Call for the allocation of adequate and additional budgetary and human resources to enable UNCTAD to implement its mandate such as, but not limited to, its work on issues relating to global macroeconomics and finance, debt, taxation, investment, trade, technology transfer, and development

However, the preparatory process for UNCTAD XIV has not been smooth sailing to say the least. The fact that much of the negotiation text was not cleaned up in Geneva and pushed to Nairobi is a clear proof of the divergent views. Yet, high level of expectations for UNCTAD XIV should be maintained. The aim of strengthening UNCTAD can be achieved only through a strong and united G77. Time and time again, inside UNCTAD as well as in other forums, G77 unity and cohesiveness has been shown to be the best way in which developing country interests and needs can best be promoted in the multilateral system, including strengthening UNCTAD.

The South Centre would like to take this opportunity to reiterate its strong support for the G77 and China and its work in promoting and defending the rights and interests of all developing countries.

SOUTHNEWS No. 117, 19 July 2016

South Centre: www.southcentre.int