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New Directions for TCDC

• Summary
• Executive Summary
• I. Introduction
• II. Historical Background
• III. The TCDC Experience: Lessons Learned
• IV. The Case for New Directions
• V. Substantive Policy and Operational Thrust
• VI. A New Agenda: Basic Elements for New Directions
• VII. Institutional Arrangements
• VIII. Funding
• IX. Conclusions
• Annex I - List of Participants in External Panel on New Directions for TCDC
• Annex II - Summary of Main Recommendations

SUMMARY

NEW DIRECTIONS FOR TECHNICAL CO-OPERATION AMONG DEVELOPING COUNTRIES

This report has been prepared in response to the UN General Assembly resolution 49/96 on the Conference on South-South Co-operation which, inter alia, requested the High-Level Committee on the Review of Technical Co-operation among Developing Countries (TCDC) to include on the agenda of its ninth session, an item entitled 'New Directions for TCDC'.

Based on a review of the salient features of the TCDC experience since the adoption of the Buenos Aires Plan of Action, the report recommends the adoption of a more strategic focus for TCDC in the future and details the required institutional and funding arrangements necessary to support this new substantive policy and operational thrust.

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Executive Summary

1. This report has been prepared in response to UN General Assembly resolution 49/96 on the Conference on South-South Cooperation which, inter alia, requested the High-level Committee on the Review of Technical Cooperation among Developing Countries (TCDC) to include on the agenda of its ninth session an item entitled New Directions for TCDC.

2. The preparation of the report benefitted from extensive consultations both within and outside UNDP, including the convening of an external Panel of Experts in New York on 6 and 7 March 1995. A number of useful suggestions and recommendations were also received from governments, UNDP country offices, UN organizations and agencies, intergovernmental organizations and NGOs, which were taken into account in the finalization of the report.

3. The report examines the TCDC experience since the adoption of the Buenos Aires Plan of Action in 1978 in an effort to identify its salient features and the lessons learned from that experience. Based on this review, it concluded that despite unmet needs and the fact that TCDC was still not optimally integrated within the operational activities of the UN system, the concept was still valid and indeed likely to assume increased importance in the future in light of the changes occurring in the international system and their impact on the traditional structure of multilateral technical cooperation.

4. It is argued that while the dramatic changes which have occurred in the international economic system since the late 1980s have adversely affected the economic fortunes of many developing countries, they have nevertheless created increased opportunities for TCDC, based, among other things, on the increasing differentiation among developing countries.

5. Given these new circumstances and realities, it is proposed that, in terms of its substantive policy and operational thrust, TCDC should in future focus on strategic initiatives which are likely to have a major impact on a large number of developing countries. It is also proposed that this focus should encompass major development issues and themes, such as trade and investment, debt, environment, poverty alleviation, production and employment; macroeconomic policy coordination and aid management.

6. It was also felt that this shift to strategic interventions focusing on major development issues and themes would require a blurring of the traditional distinction between the 'promotional' and 'operational' dimension of activities carried out within the TCDC framework and that, in keeping with this new thrust, it might be necessary to envisage a longer term TCDC involvement in certain activities, albeit on a selective basis. Examples of strategic initiatives which would attract TCDC support are the Small Island Developing States Technical Assistance Programme (SIDS/TAP); the Asia-Africa Forum initiative; and the proposed exchange of experience between the countries of Latin America and the CIS countries.

7. On the basis of a definition of the principles and criteria which will inform the new substantive policy and operational thrust, the basic elements of the New Directions agenda were seen as involving both a reorientation of existing TCDC practices and the identification of entirely new initiatives. In terms of the former, specific proposals are made for: the formulation of national TCDC policies; the restructuring of the Capacities and Needs Matching (CNM) exercises; enhancement of the role of UNDP country offices as facilitators of TCDC; the establishment of improved links with 'centres of excellence' in the developing countries; and the expansion of TCDC/INRES into a multidimensional data base, containing not only institutional data but also information on experts, centres of excellence, and data on successful and innovative programme and project experiences capable of replication in other countries.

8. In terms of new initiatives, a central recommendation of the report is the need to effect a closer operational integration between TCDC and ECDC. Among other recommendations are: the need to identify pivotal countries to serve as catalysts for implementing TCDC; the promotion of triangular cooperation arrangements, under which donors would agree to fund exchanges among developing countries; compilation of information on successful and innovative projects capable of replication and use of SU/TCDC as the mechanism to facilitate the transfer of such project experiences to other developing countries; the identification of subject specific TCDC 'products' which could also attract funding by virtue of their importance; and the establishment of the Group of 77/UNDP Award for TCDC/ECDC.

9. Having defined the substantive policy and operational thrust and the elements of the New Directions agenda, the report examines the institutional arrangements and funding requirements necessary to support the new vision of TCDC. At the institutional level, a number of recommendations are made regarding the issues to be considered at the meetings of the High Level Committee (HLC); the need for revised arrangements at the national level in support of TCDC; as well as specific proposals for energising the UN system in support of TCDC initiatives.

10. On the issue of funding, a number of proposals are advanced in the report, namely, earmarking of national resources for TCDC programmes; a recommended increase in UNDP's allocation for TCDC during the next programming period; continued allocation by countries of a proportion of their national IPFs to support TCDC activities; triangular funding arrangements with donor participation; special resource mobilisation efforts, based on specific TCDC 'products' which could attract funding by virtue of their importance; and funding arrangements with the private sector.

11. In concluding, the report observes that it is propitious that TCDC, which is an integral part of the operational activities of the UN system, should be reviewed during the 50th anniversary of the Organization. It is significant that 1995 also marks the 20th anniversary of the adoption of the New Dimensions decision of the UNDP Governing Council in 1975.

12. The decision of the HLC on New Directions will make an important contribution to the further elaboration of TCDC as a dynamic instrument in support of a truly global enterprise for development.

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I. INTRODUCTION

1. This report is prepared for consideration by the High-level Committee (HLC) on the Review of Technical Cooperation Among Developing Countries in response to United Nations (UN) General Assembly resolution 49/96 on the Conference on South-South Cooperation which, inter alia, requested the Committee to include on the agenda of its ninth session an item entitled New Directions for Technical Cooperation Among Developing Countries (TCDC).

2. The report is the product of a series of internal and external consultations culminating in a meeting of an external panel of experts (see list in Annex 1) which met in New York from 6-7 March, l995 and which made a number of important suggestions and recommendations that have been incorporated in the report. The preparation of the report also benefitted from suggestions received from individual governments, UN organizations and agencies, selected inter-governmental organizations and non-governmental organizations (NGOs).

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II. HISTORICAL BACKGROUND

3. The emphasis on TCDC and Economic Cooperation Among Developing Countries (ECDC), which emerged during the 1970s, was based on a recognition of the need to increase horizontal exchanges among the developing countries in order to complement the predominantly vertical North-South exchanges that have historically characterized international relations. Between 1973 and 1977, the UN General Assembly adopted a number of resolutions calling upon the international community in general and the UN system in particular to assist the developing countries in their efforts to increase technical exchanges among themselves. In addition, in l975 the Governing Council of the United Nations Development Programme (UNDP) adopted the 'New Dimensions' decision which called for increased emphasis to be placed on government execution and TCDC in the implementation of technical cooperation programmes. These efforts culminated in the UN Conference on TCDC held in Buenos Aires from 30 August to 12 September, l978. The Buenos Aires Plan of Action (BAPA) adopted by the Conference sets out a comprehensive conceptual and operational framework for the promotion of TCDC which has been consistently reaffirmed in subsequent resolutions of the UN General Assembly, the Economic and Social Council (ECOSOC) and the HLC.

4. During the l980s, systematic efforts were made to accelerate TCDC exchanges in the various areas identified in the Buenos Aires Plan of Action through promotional and sensitisation activities and also on the basis of support for specific operational programmes and projects in a wide range of sectors including those identified in the Non-Aligned Action Programme for Economic Cooperation among Developing Countries and the Caracas Programme of Action. Based on these efforts, significant progress was made in promoting TCDC. However, it is evident that a number of challenges would need to be overcome for TCDC to achieve its full realization. Among the most important of these challenges is the need to achieve wider acceptance of TCDC, both within and outside of the UN system, and to advance the broader objectives of ECDC which provides a natural framework for the application of TCDC.

5. The profound changes which have occurred in the international system since the late 1980s have also had a significant impact on traditional multilateral development cooperation which in turn has major implications on the future prospects of TCDC. In this regard, the rapid globalization of markets and production structures, accentuated by an increased emphasis on the creation of a liberalized international trading regime, has presented special challenges and opportunities to the developing countries. Similarly, the creation of a number of new states from the former Soviet Union and parts of Eastern Europe has imposed new demands on the international community to provide economic and technical assistance in laying the foundation for their successful transformation into market economies. Moreover, the significant increase in the number of 'societies in conflict' and the peace-keeping and humanitarian efforts that have had to be mounted have imposed new and urgent responsibilities on the traditional donors. The need to allocate resources to these new activities, together with the increasing fiscal constraints faced by some developed countries, has led to a decline in the resources available for traditional development cooperation.

6. These developments have stimulated an increased interest in TCDC as an instrument to promote a new system of participation and exchange among developing countries, not only to support their overall development objectives but also to ensure their more effective participation in the newly emerging structure of international relations. The Report of the South Commission entitled Challenge to the South, which was launched in 1990, gave added impetus to TCDC. Based on its review of the report, the HLC at its eighth session, invited developing countries and UN organizations to examine for possible inclusion in their TCDC activities the recommendations contained in the report. The Administrator of UNDP was also requested to report to the ninth session of the HLC on the implementation of this decision. General Assembly resolution 48/164 also requested the Secretary-General to report to the 50th session of the UN General Assembly, in 1995, on "the state of South-South cooperation" as a follow-up to the Report of the South Commission. In its decision 8/2 the HLC adopted the strategy and framework for the promotion and application of TCDC in the 1990s which was also endorsed by the General Assembly in its resolution A/Res/48/172. The strategy recommended, among other things, that high priority should be given to ECOSOC resolution 1992/41 calling for "first consideration" to be given to the use of TCDC in the implementation of development programmes and projects, irrespective of the source of funding. Further, the 1991 Development Assistance Committee (DAC) Principles on New Orientations in Technical Cooperation emphasized the relevance of South-South cooperation in the delivery of multilateral technical cooperation. This renewed interest in the subject is also evident in the Declaration of the Ministerial Meeting of the Group of 77 (G-77) held in September, l994, which emphasized the importance of South-South cooperation and which called for the convening of a UN Conference on the subject. Similarly, in his statement to the 49th session of the UN General Assembly, the Deputy Prime Minister of Japan called for increased emphasis to be given to South-South cooperation and urged its inclusion as an integral part of the Agenda for Development. Finally, in resolution 49/96, the UN General Assembly called upon the UN Secretary General to prepare a comprehensive report containing recommendations for strengthening and expanding of South-South cooperation which should take into account the decision of the HLC based on its consideration of the item "New Directions for TCDC", which is the subject of this report.

7. In view of the changes occurring in the traditional structure of multilateral development cooperation and the widespread impact of technological innovation, which have created new possibilities for accelerating the pace of development, TCDC would need to be significantly reoriented if it is to respond effectively to these challenges. Furthermore, appropriate supporting institutional structures and financing modalities must also be put in place. It is against this background that this report on New Directions for TCDC should be conceived and operationalized.

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III. THE TCDC EXPERIENCE: LESSONS LEARNED

8. The accumulation of nearly two decades of experience has provided a number of insights into the strengths and weaknesses of TCDC as it has evolved since the adoption of the BAPA in l978. In recognition of their primary responsibility for promoting TCDC, the developing countries have engaged in a wide range of technical exchanges among themselves at the regional level as well as interregionally.

(A) The Regional Experience

9. In the Arab region, Egypt and Tunisia have been particularly active in promoting TCDC exchanges in the Anglophone and Francophone states, respectively, and in Sub-Saharan Africa, in such areas as agriculture, energy, infrastructure development and the environment. For example, during the past decade, the Tunisian Agency for Technical Cooperation (ATCD) has provided some 7,000 experts and junior technical personnel to serve abroad and has received over 1,000 trainees from various African and Arab countries.

10. In the case of Eastern Europe and the Eastern Mediterranean, Turkey, Malta, Cyprus and Poland have been actively involved in promoting TCDC both within and outside the region. Turkey, for example, allocated bilateral funding exceeding $70 million for the 1993-94 biennium for technical cooperation activities with other developing countries. It has provided experts and volunteers as well as scholarships, fellowships and study tours for participants from the region. Cyprus, Malta and Poland have also provided specific types of expert services and training to other developing countries in the region.

11. In Asia and the Pacific, a number of countries, including China, India, Thailand, Singapore and Indonesia, have established bilateral TCDC programmes and have allocated resources from their UNDP Indicative Planning Figure (IPF) to finance TCDC activities. The small island countries in the Pacific and Indian Oceans have also engaged in TCDC exchanges to address such issues as sea level rise, problems relating to diseconomies of scale deriving from their small size, tourism and the threat to bio-diversity. Regional institutions such as the Asia Pacific Centre for the Transfer of Technology (APCTT), based in New Delhi, the Network of Aquaculture Centres (NACA), based in Bangkok, the Asia Pacific Centre for Development (APCD), based in Kuala Lumpur and the South Pacific Regional Environment Programme (SPREP), based in Fiji, have served as important vehicles for the promotion of TCDC. The Hangzhou Regional Centre for Small Hydro Power, which was established in China with UNDP assistance, offers considerable potential for promoting TCDC exchanges in this field. Similarly, the growth of regional and sub-regional groupings such as the Association for South East Asian Nations (ASEAN), the South Asian Association for Regional Cooperation (SAARC) and the South Pacific Coordination Group (SOPAC) have assisted the participating countries to focus on a number of common problem areas in such fields as trade, agriculture, transport and telecommunications.

12. The Latin American and Caribbean experience with TCDC exhibits a number of unique features. Countries such as Argentina, Brazil, Chile, Colombia, Mexico and Venezuela have played a leading role in promoting TCDC both through their own independently funded bilateral programmes and through use of the UNDP IPF mechanism. Regional sub-regional groupings such as the Latin American Economic System (SELA) and the Caribbean Community (CARICOM) have also played an active role in promoting TCDC exchanges. Of particular relevence and significance have been the efforts to support Central America in its transition from conflict to development. With agreements such as the San Jose oil facility, funded by Mexico, Trinidad and Tobago and Venezuela; the establishment of SELA's Action Committee for the Development of Central America (CADESCA) and the efforts of other multilateral agencies such as the European Union (EU); the Inter-American Development Bank (IDB) through its Regional Consultative Group; and the UN, through the UNDP-administered Special Plan for Economic Cooperation with Central America, extensive use was made of the TCDC modality. Moreover, patterns of TCDC exchanges are likely to intensify in the context of economic cooperation and integration arrangements such as the Southern Cone Common Market (MERCOSUR), which links Argentina, Brazil, Paraguay and Uruguay; the Central American Integration Scheme; and the newly established Association of Caribbean States.

13. In the case of Africa region, countries such as Nigeria, Senegal, Ethiopia, Ghana and Tanzania have been major supporters of TCDC. The potential for TCDC and ECDC needs to be more fully utilized through the Organization of African Unity (OAU) and the Indian Ocean Commission (IOC). The formation of the African Economic Community (AEC) in May l99l represents a renewed effort to revamp cooperation and integration arrangements. The AEC is expected to be anchored in existing sub-regional organizations such as the Economic Community of West African States (ECOWAS), the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Cooperation Council (SADCC). Interesting opportunities for TCDC are emerging with the involvement of regional institutions such as the West African Rice Development Association (WARDA), the International Institute for Tropical Agriculture (IITA), the Eastern and Southern African Management Institute (ESAMI) and the African Regional Center for Technology (ARCT).

14. One development with increasing relevance to the promotion of TCDC is the trend toward growing differentiation among groups of developing countries, measured both in terms of their respective levels of development and the nature of their integration into the global economy. This would suggest that careful consideration should be given in future to the possible formulation of differentiated strategies for the promotion of TCDC to take account of these differences. This approach should, however, be pursued without prejudice to the continuing need to promote interregional cooperation linking the various regions of the developing world on the basis of TCDC arrangements. This is clearly necessary in view of the fact that many developing countries in the different regions have experienced an evolution from being net recipients to net providers of technical and economic assistance. This dynamic shift in the situation of these countries puts them in an effective position to share with other developing countries the techniques and experiences that have made them successful.

(B) SU/TCDC Activities

15. In keeping with the mandate provided by the BAPA, the UNDP Special Unit for TCDC (SU/TCDC) has played an active role within the UN system in promoting and supporting TCDC activities, both regionally and interregionally. Activities undertaken by the SU/TCDC over the years have embraced a variety of methodologies, especially those set out under four major sub-programmes. Specifically, these programmes include Capacities and Needs Matching (CNM) exercises and subject specific Workshops; capacity enhancement for the management of TCDC; studies and evaluations in priority areas; promotional and sensitisation activities designed to promote greater awareness of TCDC and its increased utilization in the development process; and the disseminination of information on institutional capacities through the use of the TCDC Information Referral System (TCDC/INRES). Most recently, CNM exercises were held in Argentina on food and agriculture; Bangladesh on rural credit and poverty alleviation; Uganda on the services sector; and Nigeria on agriculture and rural development. Each of these CNMs resulted in a significant number of bilateral agreements for technical cooperation between the participating developing countries. Subject specific workshops were held in all of the regions and focused on interactive exchanges and consultations designed to share experiences and know-how which would result in the replication of applicable technologies and approaches in an increased number of developing countries. These workshops have had a catalytic effect in mobilizing resources in the developing countries for the implementation of activities in the various areas identified. SU/TCDC also played a central role in helping to better define the functions of the TCDC "focal point" mechanisms within participating countries to strengthen and enhance their ability to promote and apply the TCDC modality.

16. As part of the activities undertaken by the Unit, a feasibility study was prepared in respect of the Small Island Developing States Technical Assistance Programme (SIDS/TAP) which is intended to serve as a basis for the operationalization of the Barbados Programme of Action adopted at the Global Conference on the Sustainable Development of Small Island Developing States (SIDS) held in Bridgetown, Barbados from 25 April to 6 May 1994. Substantial assistance is being provided by the Unit in the form of policy analysis from a gender perspective based on the comparative experience of grassroots women's organizations in support of the preparations for the Fourth World Conference on Women (FWCW) to be held in Beijing in September 1995; and for the organization of exchanges on effective urban management practices as a contribution to the Habitat II Conference in Istanbul in 1996. Other activities have focused on priority development sectors, including the strengthening of institutional capacities for education through inter-university cooperation in research; studies on aid coordination; studies on African food production and food processing technologies for commercialization; linkages between research and development (R&D), public policy and private sector investment and production in studies undertaken by universities; the preparation of a policy-oriented framework to improve the socio-economic conditions of women; support to the health learning materials programme and the establishment of the International Network on Small Hydro Power in China. The support provided to these activities further strengthened networking and twinning arrangements and promoted linkages between centres of excellence in the developing countries. The collective impact of the activities carried out under these sub-programmes has expanded the use of the TCDC modality through selected, strategic interventions, in turn resulting in the generation of additional resources and the replication of know-how and technology in a large number of developing countries. Consequently, despite the modest resources at its disposal, measured by its substantive policy input and catalytic influence, the SU/TCDC has played a critical role in the promotion of TCDC.

(C) Activities supported by other UN organizations and Agencies 17. In addition to the work of the SU/TCDC, many UN organizations and agencies have also played an effective role in support of TCDC activities by providing appropriate advisory and technical services. These include the Department of Development Support and Management Services (DDSMS), the Food and Agriculture Organization (FAO), the International Labour Organization (ILO), the UN Conference on Trade and Development (UNCTAD), the UN Educational, Scientific and Cultural Organization (UNESCO), the UN Industrial Development Organization (UNIDO) and the World Health Organization (WHO). Valuable assistance in promoting TCDC initiatives has also been provided by the UN regional economic commissions.

18. The activities identified above attest to the fact that over the years a number of significant TCDC initiatives have been carried out. However, a number of unmet needs persist while new challenges have arisen in response to emerging global challenges. Moreover, a number of weaknesses that have been identified would need to be addressed if TCDC is to serve as a more effective instrument in support of development.

(D) Remaining Challenges 19. As practised today, TCDC consists of a matrix of activities that are multifaceted in nature and which are carried out by a wide range of actors, including national governments, regional institutions, multilateral agencies, NGOs and the private sector. Increased efforts would therefore need to be made to ensure improved linkages between the various activities in order to achieve a more efficient allocation of resources and the overall rationalization of objectives, as failure to do so could lead to excessive fragmentation of effort and a less than optimal use of resources.

20. Notwithstanding the conspicuous successes that have been achieved in many areas, there is a tendency on the part of many developing countries to view TCDC as a less desirable technical cooperation modality compared with traditional North-South exchanges. This often results in a lack of awareness of the real potential of TCDC as a technically appropriate, and cost-effective modality for addressing developing countries needs and strengthening links with their partners in the South.

21. In spite of its fairly widespread application, the use of TCDC within the UN system has not been fully optimised. The UN system itself has often failed to promote TCDC effectively because of its underlying orientation and pervasive institutional culture in favour of traditional technical cooperation activities. Moreover, in terms of the totality of TCDC needs, the UN system still provides relatively modest resources in support of these needs.

22. A number of critical preconditions must also exist if TCDC activities are to be optimally implemented. First, beneficiary countries should articulate a clear national policy on TCDC, as was emphasized in the Strategy for TCDC in the 1990s endorsed by the eighth session of the HLC. In addition, countries should have a clear grasp of their capacities and needs and should put in place suitable mechanisms to manage the transfer and/or absorption of skills from other countries. In order for TCDC to be utilized as a major instrument of development in any country, it is essential to have a well-established and competent entity that is properly located within the structure of government with responsibility for managing the TCDC process, including monitoring the implementation of agreements concluded with other countries as a result of Capacity and Needs Matching Exercises (CNMs) sponsored by SU/TCDC. Finally, the UN system is most effective in promoting TCDC activities when UNDP country offices possess a thorough understanding of the TCDC process and there is a clear commitment to make TCDC activities an integral part of initiatives in support of national development efforts.

23. It is pertinent to observe that despite the fact that TCDC has been the subject of more resolutions of the UN General Assembly, ECOSOC, the High-level Committee and, indeed, the UNDP Executive Board than perhaps any other programme area, the abovementioned conditions are not optimally present in the TCDC activities of the UN development system and in national programmes. The broad mandate outlined in the BAPA has sometimes tended to be measured in terms of the number of experts from developing countries working on projects, the frequency of meetings to promote TCDC and the level of procurement from the developing countries, instead of being seen as a rational imperative for ensuring the full integration of TCDC into the wider conception of operational activities in support of the overall development process.

24. The assessment of the TCDC experience over nearly two decades since the adoption of the Buenos Aires Plan reaffirms the validity of the concept and its importance as an instrument of multilateral development cooperation. Inevitably, however, it must be reoriented in keeping with new realities and as part of the ongoing reconceptualization of multilateral development cooperation and the role of the UN operational activities in that process.

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25. The period since the adoption of the BAPA, and more particularly the past few years have witnessed dramatic changes in the structure of international relations that are unprecedented in modern history. The increasing globalization of economic activities, the emergence of new states in Eastern Europe and Central Asia; the paradigmatic shift in development thinking from economic planning and government-led interventions to reliance on the private sector and market forces; the rise of new economic power centres in the South most notably in East Asia and parts of Latin America; the communications and information revolution, the escalation of military conflict in parts of central Europe and the Middle and Near East; the resurgence of the UN as a major multilateral instrument in the service of conflict resolution, peace-keeping and peace-building; the persistence of underdevelopment and widespread poverty in many parts of the developing world have all fundamentally altered the dynamics of international cooperation during the 1990s. Moreover, the flow, patterns and direction of development assistance have changed to respond to new needs and realities. While these developments have had a negative impact on many developing countries which continue to grapple with the problem of widespread poverty, debt and adjustment, they have at the same time, quite paradoxically, expanded significantly the possibilities for cooperation among developing countries. Within this overall framework, the specific developments which are likely to influence the shape, substance and modalities of cooperation among developing countries in the future are detailed below.

26. The increased globalization of international economic relations, based on the communications and information revolution, has created an increasingly interdependent world and has significantly expanded the volume of economic transactions. The response of the developing countries to these altered circumstances has varied according to their particular economic circumstances and level of development. For example, many countries in Africa continue to face economic difficulties and therefore have not been able to take full advantage of these opportunities. On the other hand, the newly industrializing countries (NICs) of East Asia, the wider group of so-called high performing Asian economies (HPAES), as well as a number of countries in Latin America and the Caribbean, the Middle East and North Africa have achieved high levels of economic growth and have demonstrated a capacity to respond to the new global challenges. The economic and technological differences within the developing world, though undesirable, have nevertheless broadened the possibilities for cooperation among developing countries in an unprecedented manner. In particular, the more economically advanced developing countries are in a position to transfer to other developing countries skills and experience, including new and innovative techniques of industrial organization and production and the creative application of technology, which have proved so successful in increasing the productivity and competitiveness of their economies.

27. The emergence of the new states in Eastern Europe has imposed on the international community the need to provide economic and technical assistance to effect a successful transformation into market-based economies and, in the process, to deal with the economic programmes sponsored by the Bretton Woods institutions, which represents an entirely new experience for them. Some regions in the developing world, such as Latin America and the Caribbean, have developed expertise in dealing with the financial and economic programmes of the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (World Bank) and have also managed the transition from a government-led development effort to an increased reliance on the private sector in the context of a free market economy. Consequently, they are in an ideal position to provide assistance to the CIS countries on the basis of innovative TCDC arrangements.

28. The emergence of new communications and information technologies has significantly affected the pattern of international exchanges. The new telecommunications technology, digitization of information, high-speed computer chips, multi- media instruments of education and research now permit the instantaneous transfer of information among countries. Although many developing countries as yet have only a limited capacity to fully exploit these instruments of communication, these developments nevertheless offer significant opportunities for identifying new modalities to operationalize TCDC exchanges.

29. The past decade has also witnessed a fundamental shift in development thinking. In contrast to the traditional emphasis on economic planning and the notion of a developmental state orchestrating widespread interventions in the development process, increased reliance is now placed on private sector-led development and the adoption of free market solutions, with a consequent marginalisation of the role of the state. This new development paradigm is often embodied in IMF and World Bank-sponsored economic stabilization and structural adjustment programmes carried out by the developing countries. However, the implementation of such programmes has in many cases involved a number of challenges in terms of reconciling the needs of economic efficiency and social development objectives. The structuring and sequencing of macroeconomic policy measures, as well as the adoption of investment options, have often proved problematical to countries embarking on such programmes. These countries could benefit from the experience of countries which have already undergone a process of adjustment. Consequently, the whole area of economic policy reform, which is so central to effective long-term sustainable development, lends itself to the promotion of fruitful TCDC exchanges. Moreover, the broadening of the base of participation in the development process to include NGOs and the private sector also suggests the need for TCDC to build new partnerships with these groups in order to exchange experience across countries and between regions in areas of common concern. The worldwide networks created by some NGOs already serve as extremely efficient vehicles of South-South cooperation.

30. In the pursuit of a human-centred approach to development which is, in large measure, oriented to human resources development and the creation of sustainable institutional capacities, technical cooperation has been increasingly recognized as an important input in the development process. As originally conceived, technical assistance was seen simply as an appendage to capital investment in the form of project engineering and feasibility studies. However, it is now widely accepted as a necessary complement to capital investment and as an indispensable instrument for ensuring a truly sustainable development process. Consequently, TCDC, as an important aspect of this form of cooperation, has also assumed increased prominence as an instrument for development.

31. Finally, the evolving dynamics of the global order in recent years has led to a significant expansion of the global agenda. From the perspective of the developing countries, the demands of trade and investment, improved production and productivity, debt, poverty alleviation, effective environmental management and the challenge of promoting an accelerated pace of development are of paramount importance. The case for improving the status of women and effectively integrating them into the development process continues to demand international action and will be comprehensively addressed during the Beijing Conference later this year. The continued expansion of cities under the weight of the demographic revolution in the developing world has put excessive pressure on urban infrastructure, including the need to ensure the provision of adequate potable water supply, sanitation, transportation and other related facilities. This issue will also receive the attention of the international community during the Habitat II Conference in 1996. Moreover, although advances in medicine have led to the virtual eradication of diseases such as smallpox, typhoid and cholera, which traditionally have had a devastating effect on the developing countries, a new and formidable challenge has arisen in the form of the HIV/AIDs pandemic, which threatens to set back development efforts because of the need to reallocate scarce resources from traditional development concerns to address this crisis.

32. All of these issues present formidable challenges to the international community and need to be addressed with a sense of urgency. In one way or another they have been reflected in the decisions of the International Conference on Population and Development held in Cairo and the World Summit for Social Development in Copenhagen and will again be addressed in the Beijing Conference on Women and Habitat II in Istanbul. The results of these conferences, together with the Agenda for Development to be adopted by the UN General Assembly, will in large measure shape the agenda for multilateral development cooperation into the 21st century. Given the far-reaching nature of these challenges, traditional North-South cooperation will need to be complemented by a renewed emphasis on South-South cooperation if these tasks are to be carried out effectively.

33. For these reasons, it is both timely and appropriate to revisit the substance of TCDC in order to ensure it is conceived and applied in a manner consistent with the new realities of a changed global order.

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34. Based on the fundamental and inexorable shifts which have occurred in the dynamics of global development cooperation, it is important to reorient TCDC in terms of its substantive policy and operational thrust, to ensure it continues to serve as a dynamic technical cooperation instrument at the disposal of the developing countries and the international community as a whole. Given the changed realities and current challenges, TCDC will need to focus increasingly on strategic initiatives which are likely to have a major development impact on developing countries or which are likely to enable them to address important problems of common interest. This does not mean that specific interventions aimed, for example, at replicating proven and effective technologies, the functioning of effective networks or the matching of clearly identified capacities and needs would be excluded, as it is important for TCDC to maintain its flexibility to respond creatively to specific needs. The new focus suggests, however, that in terms of its primary programme orientation, greater emphasis will be placed in future on core development issues of special interest to a large number of developing countries.

35. Given the current challenges facing the developing countries, it is proposed that the following should be the major priority issues and themes for strategic interventions, namely: trade and investment, debt, environment, poverty alleviation, production and employment, macro-economic policy coordination and aid management. These priorities have been identified in various fora by developing countries themselves as of special importance.

36. The proposed shift to strategic interventions focusing on major development issues or themes will, in some cases, demand longer-term involvement and may, therefore, require a blurring of the traditional distinction between "promotional" and "operational" activities within the TCDC framework. This may require a change in the present practice of supporting one-time catalytic interventions and, instead, involve the provision of inputs on a longer-term basis, albeit in a selective manner. The effectiveness of the impact of TCDC interventions should also be closely monitored and supported. This, in turn, will require suitable follow-up operational activities in the wake of initial promotional efforts. What is required is a new approach to TCDC that is explicitly anchored in the longer-term objectives of ECDC. Thus, New Directions will require changes in current procedures and practices in two critical areas, namely, interventions of a sustained nature and the application of both promotional and operational TCDC activities in respect of the same issue. This would also require an explicit linkage between technical cooperation and investment, focusing on urgent development challenges faced by groups of countries. It will therefore be necessary to encompass within this framework both bilateral and regional or group-specific programmes of cooperation.

37. TCDC initiatives involving a large number of countries in the terms described above would provide a better basis on which to analyze and evaluate results and to develop constructs on which to build more effective programmes in the future.

38. One example of an innovative initiative which could form the basis for a strategic TCDC arrangement -- and in which the SU/TCDC has an important role to play -- is the Programme of Action for the Sustainable Development of Small Island Developing Countries (SIDS) adopted at the Global Conference for the Sustainable Development of SIDS held in Bridgetown, Barbados in April/May 1994. This programme, which was endorsed by the UN General Assembly in Resolution 49/122, represents a creative TCDC initiative which could make a significant contribution to the overall development of the countries concerned. Within UNDP, SU/TCDC has been designated as the Unit responsible for coordinating the follow-up to the Barbados Conference. The Unit is currently engaged in following up the implementation of the Small Island Developing States Technical Assistance Programmes (SIDS/TAP) on the basis of the feasibility study submitted on the subject to the 49th session of the UN General Assembly.

39. Another initiative of a strategic nature is the Asia-Africa Forum, which held its first meeting in Bandung, Indonesia, in December 1994 as a follow-up to the Tokyo International Conference on African Development (TICAD) hosted by the Government of Japan in 1993. The conclusions and recommendations adopted at the Bandung meeting identified a number of areas for cooperation on a TCDC basis, namely, exchange of experiences on structural adjustment programmes; networking of African and Asian institutions; strategies and policies to increase agricultural productivity, including intensification of crops, livestock, fisheries and forestry; the establishment of appropriate mechanisms for increasing domestic savings; the promotion of contacts between African and Asian Chambers of Commerce; the establishment of joint ventures; increased Asian participation in African trade institutions and banks; and the creation of African-Asian communications, trade and research networks. Participants at the Forum which was jointly sponsored by the Government of Japan, the UN Secretariat, UNDP and the Global Coalition for Africa, called upon international agencies and, in particular, SU/TCDC, to assist in implementing the activities envisaged in the various areas agreed upon.

40. The proposed programme of cooperation between countries in Latin America and the CIS countries, which will promote exchanges to allow CIS countries to observe the operations of Latin American institutions dealing with privatization and the management of structural adjustment programmes and to learn from such experiences represents yet another example of a strategic initiative in interregional TCDC cooperation.

41. In seeking to promote a more strategic vision for TCDC, it is important to ensure that programmes are "demand driven". Consequently, mechanisms will be developed to ensure more systematic consultations between SU/TCDC, governments, inter-governmental organizations, UN agencies and the regional commissions to identify initiatives which reflect the central priorities of the developing countries themselves.

42. The translation of strategic initiatives and critical themes into operative and effective programmes can be facilitated through the use of modern communication methods by which messages could be transmitted with a sense of immediacy for greater impact. It should also involve the utilization of successful experiences which lend themselves to replication. Finally, the success of this effort is premised on the need to ensure that properly trained personnel are available to carry out such initiatives and that sufficient financial resources will be provided as necessary inputs.

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