(c) Data and information
Encouraging data collection and research
2.15. GATT, UNCTAD and other relevant institutions should continue to collect appropriate trade data
and information. The Secretary -General of the United Nations is requested to strengthen the Trade
Control Measures Information System managed by UNCTAD.
Improving international cooperation in commodity trade and the diversification of the sector
2.16. With regard to commodity trade, Governments sh ould, directly or through appropriate
international organizations, where appropriate:
a. Seek optimal functioning of commodity markets, inter alia,
through improved market transparency involving exchanges of
views and information on investment plans, prospect s and markets
for individual commodities. Substantive negotiations between
producers and consumers should be pursued with a view to
achieving viable and more efficient international agreements that
take into account market trends, or arrangements, as well as study
groups. In this regard, particular attention should be paid to the
agreements on cocoa, coffee, sugar and tropical timber. The
importance of international commodity agreements and
arrangements is underlined. Occupational health and safety
matters, technology transfer and services associated with the
production, marketing and promotion of commodities, as well as
environmental considerations, should be taken into account;
b. Continue to apply compensation mechanisms for shortfalls in
commodity export e arnings of developing countries in order to
encourage diversification efforts;
c. Provide assistance to developing countries upon request in the
design and implementation of commodity policies and the
gathering and utilization of information on commodity mar kets;
d. Support the efforts of developing countries to promote the policy
framework and infrastructure required to improve the efficiency of
export and import trade;
e. Support the diversification initiatives of the developing countries at
the national, regio nal and international levels.
Means of implementation
a. Financing and cost evaluation
2.17. The Conference secretariat has estimated the average total annual cost (1993 -2000) of
implementing the activities in this programme area to be about $8.8 billion from the international
community on grant or concessional terms. These are indicative and order -of-magnitude estimates only
and have not been reviewed by Governments. Actual costs and financial terms, including any that are
non-concessional, will depend upon, inte r alia, the specific strategies and programmes Governments
decide upon for implementation.
b. Capacity-building 2.18. The above -mentioned technical cooperation activities aim at strengthening
national capabilities for design and implementation of commodity p olicy, use and management of
national resources and the gathering and utilization of information on commodity markets.
B. Making trade and environment mutually supportive Basis for action
2.19. Environment and trade policies should be mutually supportive. A n open, multilateral trading system makes possible a more efficient allocation and use of resources and thereby contributes to an increase in production and incomes and to lessening demands on the environment. It thus provides additional resources needed f or economic growth and development and improved environmental protection. A sound environment, on the other hand, provides the ecological and other resources needed to sustain growth and underpin a continuing expansion of trade. An open, multilateral tradi ng system, supported by the adoption of sound environmental policies, would have a positive impact on the environment and contribute to sustainable development.
2.20. International cooperation in the environmental field is growing, and in a number of cases tra de provisions in multilateral environment agreements have played a role in tackling global environmental challenges. Trade measures have thus been used in certain specific instances, where considered necessary, to enhance the effectiveness of environmental regulations for the protection of the environment. Such regulations should address the root causes of environmental degradation so as not to result in unjustified restrictions on trade. The challenge is to ensure that trade and environment policies are co nsistent and reinforce the process of sustainable development. However, account should be taken of the fact that environmental standards valid for developed countries may have unwarranted social and economic costs in developing countries.
Objectives
2.21. Governments should strive to meet the following objectives, through relevant multilateral forums,
including GATT, UNCTAD and other international organizations:
a. To make international trade and environment policies mutually supportive in favour of
sustainable development;
b. To clarify the role of GATT, UNCTAD and other international organizations in dealing
with trade and environment -related issues, including, where relevant, conciliation
procedure and dispute settlement;
c. To encourage international productivit y and competitiveness and encourage a
constructive role on the part of industry in dealing with environment and development
issues.
Activities
Developing an environment/trade and development agenda
2.22. Governments should encourage GATT, UNCTAD and other re levant international and regional
economic institutions to examine, in accordance with their respective mandates and competences, the
following propositions and principles:
a. Elaborate adequate studies for the better understanding of the relationship between trade
and environment for the promotion of sustainable development;
b. Promote a dialogue between trade, development and environment communities;
c. In those cases when trade measures related to environment are used, ensure transparency
and compatibility with international obligations;
d. Deal with the root causes of environment and development problems in a manner that
avoids the adoption of environmental measures resulting in unjustified restrictions on
trade;
e. Seek to avoid the use of trade restrictions or di stortions as a means to offset differences in
cost arising from differences in environmental standards and regulations, since their
application could lead to trade distortions and increase protectionist tendencies;
f. Ensure that environment -related regulati ons or standards, including those related to
health and safety standards, do not constitute a means of arbitrary or unjustifiable
discrimination or a disguised restriction on trade;
g. Ensure that special factors affecting environment and trade policies in t he developing
countries are borne in mind in the application of environmental standards, as well as in
the use of any trade measures. It is worth noting that standards that are valid in the most
advanced countries may be inappropriate and of unwarranted so cial cost for the
developing countries;
h. Encourage participation of developing countries in multilateral agreements through such
mechanisms as special transitional rules;
i. Avoid unilateral actions to deal with environmental challenges outside the jurisdicti on of
the importing country. Environmental measures addressing transborder or global
environmental problems should, as far as possible, be based on an international
consensus. Domestic measures targeted to achieve certain environmental objectives may
need trade measures to render them effective. Should trade policy measures be found
necessary for the enforcement of environmental policies, certain principles and rules
should apply. These could include, inter alia, the principle of non -discrimination; the
principle that the trade measure chosen should be the least trade -restrictive necessary to
achieve the objectives; an obligation to ensure transparency in the use of trade measures
related to the environment and to provide adequate notification of national re gulations;
and the need to give consideration to the special conditions and developmental
requirements of developing countries as they move towards internationally agreed
environmental objectives;
j. Develop more precision, where necessary, and clarify the r elationship between GATT
provisions and some of the multilateral measures adopted in the environment area;
k. Ensure public input in the formation, negotiation and implementation of trade policies as
a means of fostering increased transparency in the light o f country -specific conditions;
l. Ensure that environmental policies provide the appropriate legal and institutional
framework to respond to new needs for the protection of the environment that may result
from changes in production and trade specialization.
C. Providing adequate financial resources to developing countries
Basis for action
2.23. Investment is critical to the ability of developing countries to achieve needed economic growth to improve the welfare of their populations and to meet their basic need s in a sustainable manner, all without deteriorating or depleting the resource base that underpins development. Sustainable development requires increased investment, for which domestic and external financial resources are needed. Foreign private investmen t and the return of flight capital, which depend on a healthy investment climate, are an important source of financial resources. Many developing countries have experienced a decade -long situation of negative net transfer of financial resources, during whi ch their financial receipts were exceeded by payments they had to make, in particular for debt -servicing. As a result, domestically mobilized resources had to be transferred abroad instead of being invested locally in order to promote sustainable economic development.
2.24. For many developing countries, the reactivation of development will not take place without an early and durable solution to the problems of external indebtedness, taking into account the fact that, for many developing countries, external deb t burdens are a significant problem. The burden of debt - service payments on those countries has imposed severe constraints on their ability to accelerate growth and eradicate poverty and has led to a contraction in imports, investment and consumption. External indebtedness has emerged as a main factor in the economic stalemate in the developing countries. Continued vigorous implementation of the evolving international debt strategy is aimed at restoring debtor countries' external financial viability, and th e resumption of their growth and development would assist in achieving sustainable growth and development. In this context, additional financial resources in favour of developing countries and the efficient utilization of such resources are essential.
Objectives
2.25. The specific requirements for the implementation of the sectoral and cross -sectoral programmes included in Agenda 21 are dealt with in the relevant programme areas and in chapter 33 (Financial resources and mechanisms).
Activities
(a) Meeting international targets of official development assistance funding
2.26. As discussed in chapter 33, new and additional resources should be provided to support Agenda 21 programmes.
(b) Addressing the debt issue
2.27. In regard to the external debt incurred wit h commercial banks, the progress being made under the
strengthened debt strategy is recognized and a more rapid implementation of this strategy is
encouraged. Some countries have already benefited from the combination of sound adjustment policies
and commercial bank debt reduction or equivalent measures. The international community
encourages:
a. Other countries with heavy debts to banks to negotiate similar commercial bank debt
reduction with their creditors;
b. The parties to such a negotiation to take due ac count of both the medium -term debt
reduction and new money requirements of the debtor country;
c. Multilateral institutions actively engaged in the strengthened international debt strategy to
continue to support debt -reduction packages related to commercial bank debt with a view
to ensuring that the magnitude of such financing is consonant with the evolving debt
strategy;
d. Creditor banks to participate in debt and debt -service reduction;
e. Strengthened policies to attract direct investment, avoid unsustainable levels of debt and
foster the return of flight capital.
2.28. With regard to debt owed to official bilateral creditors, the recent measures taken by the Paris
Club with regard to more generous terms of relief to the poorest most indebted countries are
welcomed. Ongoing efforts to implement these "Trinidad terms" measures in a manner commensurate
with the payments capacity of those countries and in a way that gives additional support to their
economic reform efforts are welcomed. The substantial bilateral debt r eduction undertaken by some
creditor countries is also welcomed, and others which are in a position to do so are encouraged to take
similar action.
2.29. The actions of low -income countries with substantial debt burdens which continue, at great cost, to service their debt and safeguard their creditworthiness are commended. Particular attention should be paid to their resource needs. Other debt -distressed developing countries which are making great efforts to continue to service their debt and meet their externa l financial obligations also deserve due attention.
2.30. In connection with multilateral debt, it is urged that serious attention be given to continuing to
work towards growth -oriented solutions to the problem of developing countries with serious debt -
servicing problems, including those whose debt is mainly to official creditors or to multilateral
financial institutions. Particularly in the case of low -income countries in the process of economic
reform, the support of the multilateral financial institutions in the form of new disbursements and the
use of their concessional funds is welcomed. The use of support groups should be continued in
providing resources to clear arrears of countries embarking upon vigorous economic reform
programmes supported by IMF and t he World Bank. Measures by the multilateral financial institutions
such as the refinancing of interest on non -concessional loans with IDA reflows - "fifth dimension" -
are noted with appreciation.
Means of implementation
Financing and cost evaluation*
D. Encouraging economic policies conducive to sustainable development
Basis for action
2.31. The unfavourable external environment facing developing countries makes domestic resource mobilization and efficient allocation and utilization of domestically mobi lized resources all the more important for the promotion of sustainable development. In a number of countries, policies are necessary to correct misdirected public spending, large budget deficits and other macroeconomic imbalances, restrictive policies and distortions in the areas of exchange rates, investment and finance, and obstacles to entrepreneurship. In developed countries, continuing policy reform and adjustment, including appropriate savings rates, would help generate resources to support the trans ition to sustainable development both domestically and in developing countries.
- See chap. 33 (Financial resources and mechanisms).
2.32. Good management that fosters the association of effective, efficient, honest, equitable and accountable public administration with individual rights and opportunities is an essential element for sustainable, broadly based development and sound economic performance at all development levels. All countries should increase their efforts to eradicate misma nagement of public and private affairs, including corruption, taking into account the factors responsible for, and agents involved in, this phenomenon.
2.33. Many indebted developing countries are undergoing structural adjustment programmes relating to debt rescheduling or new loans. While such programmes are necessary for improving the balance in fiscal budgets and balance -of-payments accounts, in some cases they have resulted in adverse social and environmental effects, such as cuts in allocations for health care, education and environmental protection. It is important to ensure that structural adjustment programmes do not have negative impacts on the environment and social development so that such programmes can be more in line with the objectives of sustaina ble development.
Objectives
2.34. It is necessary to establish, in the light of the country -specific conditions, economic policy reforms that promote the efficient planning and utilization of resources for sustainable development through sound economic and s ocial policies, foster entrepreneurship and the incorporation of social and environmental costs in resource pricing, and remove sources of distortion in the area of trade and investment.
Activities
(a) Management-related activities
Promoting sound ec onomic policies
2.35. The industrialized countries and other countries in a position to do so should strengthen their efforts:
a. To encourage a stable and predictable international economic environment, particularly with
regard to monetary stability, real rates of interest and fluctuations in key exchange rates;
b.
To stimulate savings and reduce fiscal deficits;
c.
To ensure that the processes of policy coordination take into account the interests and concerns of
the developing countries, including the need to promote positive action to support the efforts of
the least developed countries to halt their marginalization in the world economy;
d.
To undertake appropriate national macroeconomic and structural policies aimed at promoting non-
inflationary growth, narrowing their major external imbalances and increasing the adjustment
capacity of their economies.
2.36.
Developing countries should consider strengthening their efforts to implement sound economic
policies:
a.
That maintain the monetary and fiscal discipline required to promote price stability and external
balance;
b.
That result in realistic exchange rates;
c.
That raise domestic savings and investment, as well as improve returns to investment.
2.37.
More specifically, all countries should develop policies that improve efficiency in the allocation of
resources and take full advantage of the opportunities offered by the changing global economic
environment. In particular, wherever appropriate, and taking into account national strategies and
objectives, countries should:
a.
Remove the barriers to progress caused by bureaucratic inefficiencies, administrative strains,
unnecessary controls and the neglect of market conditions;
b.
Promote transparency in administration and decision-making;
c.
Encourage the private sector and foster entrepreneurship by improving institutional facilities for
enterprise creation and market entry. The essential objective would be to simplify or remove the
restrictions, regulations and formalities that make it more complicated, costly and time-consuming
to set up and operate enterprises in many developing countries;
d.
Promote and support the investment and infrastructure required for sustainable economic growth
and diversification on an environmentally sound and sustainable basis;
e.
Provide scope for appropriate economic instruments, including market mechanisms, in harmony
with the objectives of sustainable development and fulfilment of basic needs;
f.
Promote the operation of effective tax systems and financial sectors;
g.
Provide opportunities for small-scale enterprises, both farm and non-farm, and for the indigenous
population and local communities to contribute fully to the attainment of sustainable development;
h.
Remove biases against exports and in favour of inefficient import substitution and establish
policies that allow them to benefit fully from the flows of foreign investment, within the
framework of national, social, economic and developmental goals;
i.
Promote the creation of a domestic economic environment supportive of an optimal balance
between production for the domestic and export markets.
(b) International and regional cooperation and coordination
2.38.
Governments of developed countries and those of other countries in a position to do so should,
directly or through appropriate international and regional organizations and international lending
institutions, enhance their efforts to provide developing countries with increased technical assistance
for the following:
a.
Capacity-building in the nation's design and implementation of economic policies, upon request;