Vienna Chapter
Mr. President (H.E. Mr Claudio Moreno, PR of Italy)
It gives me great pleasure to congratulate you on behalf of the Group
of 77 and China on your election as the President of the 10th Session of
the UNIDO General Conference. The Group is confident that under your able
leadership the session would steer through smoothly and reach a fruitful
conclusion. I wish also to avail myself, on behalf of the Group, of this
opportunity to felicitate the other members of the Bureau on their
election. The Group would also like to thank your predecessor H.E. Mr.
Juan F. Reyes Lopez (Vice President of Guatemala) for Presiding the 9th
session of General Conference in an excellent manner. The Group also
extends its appreciation for the arrangements of the meeting as well as
provision of necessary documentation by the Secretariat.
The Group of 77 and China welcomes the opening remarks of the
Director General Mr. Carlos Magariños and assures him of the
Group's continued support and cooperation in carrying out the mandate of
UNIDO.
I would be making comments on the Agenda items 7, 8, 9, 10, 11, 12,
13, and 14 on behalf of the Group of 77 and China.
Mr. President,
The Group of 77 and China endorses UNIDO's efforts to play a key role in
defining and implementing the international strategies to alleviate
poverty by integrating them with sustainable industrial growth in the
developing countries. The Group is of the view that UNIDO's involvement in
these activities has helped raise its profile as one of the leading
international developmental organization.
In this regard the Group attaches significance to UNIDO's active
participation in major international conferences during the year 2002, in
particular the International Conference on Financing for Development and
the World Summit on Sustainable Development as well as the initiatives
undertaken by it during these two major conferences. In our opinion UNIDO
could further capitalise on its position as an executing agency of the
Global Environmental Facility (GEF), to broaden its financial base,
through a more focussed and realistic approach in programme designs,
planning and assessment and implementation. Furthermore UNIDO should take
into its careful consideration other multilateral fund and international
funds resources which could provide UNIDO with new and additional
resources.
The Group of 77 and China appreciates the Secretariat for carrying
out the global forum activities as called for by the Business Plan to
promote the understanding of the industrial development process and
disseminate information on industry-related issues. While recognizing the
relevance of these activities, they should be made more results-oriented
with a view to strengthening and improving the technical cooperation
programme.
Mr. President,
South-South cooperation is an important tool for developing countries
to strengthen their economic independence and achieve their developmental
goals. It is one of the major means for ensuring equitable and effective
participation in the emerging global economic orders. The Group hopes
UNIDO could enhance its facilitation and provision of its expertise and
networking for supporting sustainable industrial cooperation among the
developing countries.
UNIDO's sectoral support activities in food, leather, textile, wood
and agriculture are very crucial for strengthening the industrial
development of developing countries. While appreciating the Organization's
role in this respect, the Group is of the view that such activities should
be further strengthened to yield greater impacts to generate competitive
economy, sound environment and productive employment.
The Group regards performance management as central to the ability of
the Organization to discharge its mandate. The Group of 77 and China
appreciates further improvements introduced in management of UNIDO to
facilitate healthier operational environment, strengthen accountability
and efficiency which should be catalyst in achieving its goals.
The Group commends UNIDO for its increased TC delivery per staff
member by 8% over 2001 and the increased leverage ratio for TC services
for one dollar of regular and operational budget, which, improved by 7%
during 2002 to 1.45, the highest since 1996. The Group feels, however,
that TC delivery figures and percentages increases still remain low and
calls upon UNIDO to redouble its efforts to enhance TC delivery.
Mr. President,
The Group of 77 and China takes note of the observations and
recommendations contained in the reports of the IDB 25th, 26th and 27th
sessions. The Group would like to express its satisfaction with the
assessment made by the auditors that, the general financial situation of
UNIDO has improved considerably over the last few years, and has achieved
financial stability, improved technical cooperation delivery, and quality
of services through more focused activities during the last four years.
The Group of 77 and China welcomes the adopted recommendations
contained in the External Auditor's report regarding the performance of
the internal Oversight Group and hopes that with the establishment of the
Office of the Comptroller-General the internal oversight and control
functions of UNIDO would be consolidated and strengthened.
Mr. President,
The G-77 and China views industrial development as very crucial to our
attempts in meeting the global challenges set forth for pushing back the
barriers of poverty.
The Group welcomes UNIDO's initiative to hold the Industrial
Development Forum during this session. While supporting the emphasis that
UNIDO puts on the achievement of Millennium Development Goals, the Group
wishes to underscore the importance of meeting them in a quantified and
time-bound fashion.
The G-77 and China recalls the commitments that 189 Member States
made during the Monterrey International Conference on Financing for
Development and the Johannesburg World Summit on Sustainable Development.
It reaffirms through collective strength and solidarity and in partnership
with fellow Member States united under the banner and the auspices of
UNIDO to continue to endeavor to remove global poverty and to spread
prosperity.
The G-77 and China looks forward to participating in the Industrial
Development Forum with the expectation that this forum will be beneficial
to the development and implementation of UNIDO's medium- to long-term
policy and strategic direction resulting in increased technical
co-operation projects and delivery.
In this regard the Group would like to call for the adoption of the
draft decision proposed on the role of UNIDO in achieving the Millennium
Development Goals.
The Group takes satisfaction that UNIDO has shown a measurable
improvement in its financial situation thus rendering credibility to the
Organization. The collection rate of UNIDO's assessed contribution towards
regular budget has improved considerably as compared to the past and
reaching 93.1% during the year 2002 and 89.5 % by mid-August indicating
that high collection rate would also be maintained this year. Further net
approvals of voluntary contributions from Government funds as well as
multilateral funds have shown good improvement over the years. However,
the availability of adequate financial resources to UNIDO, for the
Integrated Programmes (IP) and Country Service Frameworks (CSF)
unfortunately is still precarious. UNIDO's reform and transformation would
reap real benefits for the member states only after the successful and
effective implementation of the IPs and CSFs.
The Group appreciates the establishment of the Informal Consultative
Group on Voluntary Contribution and non-Members to broaden the financial
base of the Organization and to expand its membership. Increase in
voluntary contributions is an imperative necessity for effective
implementation of the Integrated Programmes and Country Service
Frameworks. The Group is of the view that UNIDO should strengthen efforts
among all stakeholders i.e. UNIDO, donors and the recipients for this
purpose. It is a matter of concern that 49 Member States were still
without their voting rights as of beginning of November 2003, owing to
accumulation of arrears. The Group would like to stress the need for
timely and full payment of budgetary contributions and encourages the
Member States that are in arrears to settle their outstanding dues. It
would also call upon the former members that are in arrears with UNIDO to
fulfil their constitutional obligations by settling their outstanding
dues. We welcome the initiative of Azerbaijan, Belarus and Lithuania to
finalize a payment plan with UNIDO for settling their outstanding arrears.
Mr. President,
In conformity with the Business Plan and the General Conference
resolution on the Medium-term Programme Framework, 2002-2005 (GC.9/Res.2),
UNIDO should focus its technical cooperation activities in the areas where
it has proven to have greater strength, expertise and experience than
other agencies. UNIDO must meet the challenges of the emerging interests
and concerns of developing countries, which are facing changing conditions
in international trade and as investment as a result of the process of
globalization process. In this regard the Group welcomes the establishment
of an Informal Consultative Group on Trade Facilitation to outline ways
and means to provide technical cooperation to the developing countries in
quality control, standardization, metrology and certification etc. This
should assist developing countries to build up their institutional
industrial capacities to enable them to benefit from improvements in
market access thereby promoting the rapid and full integration of these
countries into the multilateral trading system, particularly in the light
of the new round of WTO trade negotiations. The Group would however, like
to emphasize that UNIDO's work in the trade facilitation area should
complement the work already undertaken by other international
organizations specializing in trade such as WTO and UNCTAD without
duplication. In this regard we welcome the Memorandum of Understanding
signed between UNIDO and WTO during the Cancun Conference to increase
cooperation between the two Organizations.
Guided by concrete and real terms in line with our expectations and
bearing in mind its size and capabilities, UNIDO should launch
initiatives, which are both sustainable and within its reach and based on
best management practice, efficient gains and precision in order to
productively utilize the scarce financial resources available for the
Implementation of the Medium-term Programme Framework. The Group invites
the donor community to fund measures to cushion developing countries from
the adverse effects of globalization and UNIDO should act as a channel for
effective utilization of these resources.
In this context the G-77 and China welcomes the initiative of the
Government of Chile, for organizing the Biotechnology Global Forum in
Concepción, in March 2004. The Group would also like to thank UNIDO
and Member States for their support given to this initiative especially
Brazil, Austria, Kenya and China for hosting the preparatory meeting in
this regard.
Mr. President,
The Group of 77 and China has taken note of Medium-term programme
framework 2004-2007 in document GC.10/14, outlining the UNIDO 'Corporate
Strategy' in response to the mandates given by the governing bodies and
international conferences/agreements. The Group supports the twin
objectives of achieving technology diffusion and capacity building in the
developing countries for a better market access. It also supports the
maximizing of developmental impact of entrepreneurship and SME on the
developing countries and economies in transition. Availability of adequate
finances and investment promotion such as Foreign Direct Investment (FDI)
holds key to technology diffusion, increase productivity and industrial
development and therefore the Group would stress the importance of a more
proactive role of the Investment and Technology Promotion Offices. In
keeping with its Statute, the Business Plan and Strategic Guidelines,
UNIDO should continued to contribute towards acceleration of industrial
development in developing countries with particular emphasis on
alleviation of poverty and uplift and welfare of women and children. A
vibrant private sector is important for development of any economy and
UNIDO should therefore continue support to build a strong private
industrial sector in developing countries. In order to keep its broad
field of activity and financial base UNIDO should continue to benefit from
multilateral environmental project funding like Montreal Protocol, GEF and
Kyoto Protocol.
UNIDO should revitalize its field representation in order to deliver
technical cooperation services in the field. The Group further encourages
UNIDO to use local expertise in the delivery of its technical cooperation
where this suits best. We look forward to the use of new and innovative
technologies by UNIDO in order to further its mandate of achieving
sustainable industrial development.
UNIDO must sharpen its thrust in agro-related industries. These
industries benefit most population in developing countries and their
impact addresses the Millennium Development Goals. Linking industries to
agriculture is a key component in starting industrial growth and a must
for poverty reduction in developing countries. The Group expresses its
concern that UNIDO's involvement in agro-industrial development still
remains scanty and in the peripheries of industrial development goals.
The Group commends the efforts by the Director General's in
participating as a knowledge partner in the Nordic Partnership (NP)
initiative to develop, promote and implement new approach on how to
integrate sustainable development into the business model. We encourage
UNIDO to explore more partnerships of this nature.
The Group hopes that UNIDO could participate actively at the upcoming
High-level Conference on South-South Cooperation to be held in Marrakech,
Morocco, 16-19 December 2003. The G-77 and China also urges the Conference
to adopt the proposed Draft Decision on promotion of South-South
cooperation which in our opinion boosts existing efforts in a more
harmonized manner.
The Group supports the strong role of UNIDO in the rehabilitation and
reconstruction of countries emerging from crisis situation such as
Afghanistan, Côte d' Ivoire, Iraq, Kosovo and Rwanda. Accordingly we
call for the adoption of the proposed draft decision on the UNIDO
activities in countries emerging from crisis situation with particular
emphasis on Iraq.
Mr. President,
The G-77 and China wishes to express its support to the decision taken
in the 27th session of the IDB regarding the adoption of the Programme and
Budget for 2004-2005.
However it is our concern that the reduction of resources under Major
Programmes C and D had to be made due to negative growth projected for the
operational budget during next biennium. The Group believes that these
programmes are the cutting edge of UNIDO's mandate and core business. The
G-77 and China cannot over-emphasize the critical importance of ensuring
under the provisions of Major Program C so that developing countries and
countries with economies in transition have ready access to knowledge,
skills and technology relevant to industrial development and economic
transformation.
The Group nonetheless notes with appreciation that the proposals
entailed in both Program C & are in line with our guiding documents,
i.e. business plan, the medium term program framework 2002-2005, and the
strategic guidelines "Towards improved UNIDO program delivery".
The Group would like to emphasize the understanding reached during the
19th Session of the PBC that some reduction in the original budget
proposal would not affect the level of technical cooperation delivery
targets and that the present reduction in the budget would not be treated
as a precedent for future budgets.
The Group of 77 and China has taken note of the document IDB.27/19/Add.1
on JIU Review of Management and Administration in UNIDO and the document
IDB.27/19/Add.2 containing the Director-General's comments thereon and has
also participated in the preparatory briefings arranged by the Secretariat
for Permanent Missions.
The Group is of the view that the JIU report containes some important
recommendations which, if carefully implemented, can help improving the
programmatic, financial and managerial efficiency of the activities of the
Organization. It is encouraging to note that many of the recommendations
in the current report of the JIU had already been taken care of by the
time the report was issued indicating a proactive corrective approach
within the organization. Action has reportedly been initiated on some of
other observations of JIU by the Secretariat. The Group appreciates the
comprehensive joint briefing by the Secretariat and the JIU which
clarified some aspects mentioned in the report.
The Group strongly feels that the Business Plan, the Medium term
Programme Framework and the Strategic Guidelines adopted last year by the
IDB provide an adequate basis for the activities of UNIDO in line with its
goals and objectives. We have to focus on generating additional funding
and requisite expertise to implement the technical cooperation delivery.
The Group welcomes the new programming modality, in the form of
thematic initiatives introduced by the Secretariat, we share the view that
UNIDO should adopt a pilot approach focusing at a first stage on the first
three initiatives, namely market access facilitation, rural energy for
productive use and post-crisis industrial rehabilitation, evaluate them
before introducing new ones.
The Group of 77 and China welcomes the trend of the improvement in
recruitment of professional staff in terms of wider geographical and
gender balance and urges that more efforts be made to move further in this
direction.
The Group is of the view that the Comptroller General's appointment
process or reporting line and the terms of reference have to be set in
conformity with the constitution and in a way to assure the necessary
independence required by the function in order to assist the organization
to achieve its goals. The prevailing practices about terms and conditions
of employment of Comptroller General in other organizations may also be
compiled in order to identify the best of them.
The Secretariat should inform the Member States in due course about
various steps taken in the light of the JIU report and their impact on the
Organization's efficiency.
Mr. President,
I would like to conclude by assuring you of the fullest cooperation
of the Group of 77 and China in carrying forth the responsibilities of
presiding this 10th session of General Conference.
Thank you.
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