|
Home
> Reference Catalogue > Pivotal Countries
- An Issue Paper
Pivotal
Countries - An Issue Paper
BACKGROUND
The original impulse
in promoting technical cooperation among developing countries (TCDC), based
on the concept of collective self-reliance, arose during the 1970s in an environment
that was fundamentally different from the situation which exists today. During
the 1970s, it became increasingly evident that developing countries could benefit
significantly from promoting technical cooperation among themselves in support
of their development objectives and also in pursuing joint action in a number
of areas of common interest. The adoption of the various cooperation agreements
by the Non-Aligned countries and the Group of 77 succeeded in articulating a
comprehensive philosophy and operational strategy and programme for pursuing
this objective. The most notable example of such an agreement is the Non-Aligned
Action Programme for Economic Cooperation among developing countries adopted
in 1972 and subsequently expanded at successive conferences of the Non-Aligned
Movement throughout the 1970s and beyond. The adoption of the Buenos Aires Plan
of Action by the Conference on TCDC held in 1978 provided the broad conceptual
framework for the implementation of TCDC. These agreements were subsequently
built upon and elaborated by the Group of 77 in the Caracas Programme of Action
adopted by the Group in 1981 which outlined concrete measures for promoting
technical and economic cooperation among the developing countries. These efforts
also received the endorsement and support of the international community, including
the UN, based on various resolutions on TCDC adopted by the UN General Assembly
since the 1970s.
Although the original
rationale for TCDC continues to be valid and, indeed, has become even more compelling,
the global economic environment in which the developing countries now operate,
has changed in a number of fundamental ways.
During the 1980s,
many developing countries were forced to carry out far-reaching structural adjustment
programmes aimed at promoting increased reliance on private sector investment
and market forces. More recently, since the adoption of the agreements concluded
during the Uruguay Round of Multilateral Trade Negotiations and the subsequent
establishment of the WTO as an instrument to manage a liberalised global trading
regime, the forces of globalisation and economic liberalisation have exercised
a predominant influence on the structure of international economic relations
and have also had an important impact on the economic prospects of the developing
countries.
As is reflected
in the decisions adopted at UNCTAD IX in Midrand, South Africa, in June 1996,
globalisation represents a two-edged sword. On the one hand, it has created
tremendous trade and investment opportunities for developing countries which
have a comparatively developed productive capacity. On the other hand, it threatens
the marginalisation of those developing countries with limited productive capacities
and, therefore, a limited trading capability that would in effect prevent them
from capitalizing on the benefits offered by globalisation. In fact, according
to World Bank estimates, many of the developing countries in Sub Saharan Africa
are unlikely to benefit significantly from the new global trading regime that
has been established on the basis of the Uruguay Round Negotiations, because
of the low level of manufacturing in the overall sectoral composition of output
in these economies..
It was in recognition
of these realities that the UN General Assembly, in resolution 49/96, requested
the High Level Committee (HLC) on the Review of TCDC to include an item on ‘New
Directions for TCDC’ on the agenda of its ninth session held in New York
in May/June 1995. Based on the report prepared by the SU/TCDC on the subject,
the HLC approved the recommendations contained in the report which were subsequently
endorsed by the UN General Assembly in resolution 50/119.
An important recommendation
of the ‘New Directions’ report is the need to identify ‘pivotal
countries’ to serve as catalysts for the promotion of TCDC. On the basis
of this recommendation, SU/TCDC has initially identified a number of countries
to serve in this capacity and, in effect, to spearhead new strategic initiatives
designed to intensify the pattern of economic cooperation among developing countries.
Another important
recommendation contained in the New Directions report, which is closely linked
to the role of pivotal countries in the promotion of TCDC, relates to the need
to promote a closer operational integration between TCDC and ECDC which, in
the past, have tended to be pursued as independent, although related, initiatives.
The increased integration between the two concepts will provide a strategic
framework for cooperation between SU/TCDC and UNCTAD in support of South South
cooperation.
This is the overall
context that will influence the role of pivotal countries in the promotion and
application of TCDC which continues to have tremendous potential for the future,
particularly at a time when traditional official development assistance (ODA)
has shown a consistent pattern of decline and when, despite a significant increase
in foreign direct investment, the flow of such resources has been concentrated
in only a few developing countries.
The paper will
therefore seek to formulate criteria for designating pivotal countries and will
also identify the areas in which pivotal countries could effectively serve as
catalysts to intensify TCDC and ECDC in support of the development needs of
the developing countries as a whole. Finally, it will identify the specific
measures, including financial arrangements, to be put in place in order to achieve
this objective.
Top
PIVOTAL
COUNTRIES
(i) Definition
Pivotal countries
can be defined as developing countries which, by virtue of their capacities
and experience in promoting South South cooperation, are positioned to play
a ‘lead’ role in the promotion and application of TCDC, mainly by
sharing their capacities and experience with other developing countries; although
they could themselves also benefit from the experience of such countries. Of
course, countries designated as pivotal countries should be willing to assume
the responsibilities deriving from the conferment of this status.
(ii) Criteria
for Designating Pivotal Countries
The following are
some of the main criteria which may be used in designating pivotal countries:
- a rich history
of participation in TCDC activities as a ‘provider’ of assistance
to other developing countries and the ability to arrange the necessary financing
to carry out such activities through national, bilateral or multilateral arrangements.
- a strong national
commitment to TCDC as demonstrated by the adoption of appropriate policies,
guidelines and mechanisms that foster the application of TCDC principles and
modalities;
- indigenous technical
and institutional capacities in one or more specialized areas such as human
resources development, technology (including information technology), services,
etc.
- a willingness
to share experiences and technical know-how in order to expand the knowledge
base of other developing countries and to contribute to their overall development;
- the existence
of a well-functioning national TCDC focal point mechanism with clearly defined
functions and/or terms of reference;
- the existence
of a national technical cooperation agency or institute responsible for TCDC;
- a database on
national capacities and experiences;
- the establishment
of a national TCDC fund or umbrella project to facilitate TCDC exchanges.
(iii) Initial
List of Pivotal Countries
Taking into account
the abovementioned criteria, the following twenty-six (26) countries have been
initially identified as pivotal countries, based on their role in promoting
TCDC in their respective regions as well as interregionally.
Asia and the
Pacific
People’s
Republic of China, India, Indonesia, Malaysia, Pakistan, Republic of Korea,
Singapore and Thailand.
Africa
Ghana, Mauritius,
Nigeria, Senegal and South Africa.
Latin America
and the Caribbean
Argentina, Brazil,
Chile, Colombia, Costa Rica, Cuba, Mexico, Peru and Trinidad and Tobago.
Arab States
and Europe
Egypt, Malta,
Tunisia and Turkey
Top
ROLE
AND RESPONSIBILITIES OF PIVOTAL COUNTRIES
Pivotal countries,
acting individually or collectively, are seen as agents for the promotion and
application of TCDC as an important dimension of international development cooperation.
The extent to which the criteria and guidelines identified above are met by
these countries will serve as an indicator of their commitment to South South
cooperation.
All of the pivotal
countries identified have well-documented examples of major bilateral and multilateral
cooperation programmes with other developing countries either in their own region
or in other regions in the developing world. In addition, pivotal countries
can in fact play an important role in advancing the objectives of the New Directions
Strategy for TCDC which identifies several major initiatives in high priority
areas such as trade and investment, debt, production and employment, macroeconomic
policy coordination and aid management, poverty alleviation and the environment.
The New Directions
strategy for TCDC in effect embodies a menu of approaches and actions of vital
importance for intensifying South South Cooperation while at the same time invigorating
international technical cooperation and placing it on a more sustainable footing.
Top
POSSIBLE
AREAS OF COOPERATION
Given the current
development challenges facing the developing countries in the present context
of globalization and liberalization, an optimal strategy for the promotion of
TCDC and ECDC can be seen as encompassing three broad areas of cooperation,
namely, (i) strategic TCDC exchanges; (ii) a dynamic expansion of trade and
investment opportunities among developing countries and (iii) joint action by
the developing countries in support of common positions in global economic negotiations
(e.g. in the context of the World Trade Organization (WTO)). In all of these
areas, pivotal countries could play a leadership role in promoting TCDC and
in forging, where appropriate, an operational linkage between TCDC and ECDC,
as is envisaged in the New Directions Strategy.
(i) Strategic
TCDC Exchanges
With regard to
catalytic promotional and supportive activities, based on their own experiences,
pivotal countries could assist other developing countries in the formulation
of national TCDC policies; strengthening focal point mechanisms; and exchanging
experiences and lessons in areas in which they have the necessary expertise
and competence. They could also play an important role in TCDC sensitization
and awareness by utilizing the media to popularize the role of TCDC in strengthening
national and collective self-reliance through, among other things, the production
of publicity material, including documentary videos for this purpose. This activity
can be carried out either by the pivotal countries themselves or as part of
a joint initiative with SU/TCDC. Forging closer linkages with scientific and
research institutions and management training centres can also help to strengthen
networking arrangements among key institutions in support of a dynamic programme
of TCDC.
More important,
however, pivotal countries could play a catalytic role in facilitating the exchange
of relevant technology and experiences regarding the application of techniques
in the organization of production, such as ‘flexible specialization’
or ‘just-in-time techniques’ of production’, and cross functional
management principles which have made a major contribution to productivity growth
and competitiveness in the East Asian economies. This could be accomplished
through enterprise - to - enterprise exchanges supported by the organization
of suitable training programmes designed to impart new skills and techniques
to other developing countries.
Similarly, it is
a well known fact that many of the economically successful countries in East
Asia engaged in ‘strategic integration’ in the global economy based
on the strength of selected sectors which were capable of withstanding global
competition, instead of embarking on an ‘open’ and ‘unqualified’
integration in the global economy, based on extensive trade and financial liberalization,
as is currently advocated in some quarters for developing countries, without
regard to the level of development of the productive capacity of these countries.
The East Asian countries are therefore in a position to cooperate with other
developing countries in transferring their experience in this critical area
in order to assist these countries to formulate appropriate macroeconomic and
sectoral policies to deal with the challenge of globalization. The same is true
of the experience in formulating ‘industrial policies’ which have
played an important role in the development of the East Asian economies. In
addition, the creative partnership forged between government and the private
sector in these economies could be imitated to good effect by other developing
countries and therefore also provide a basis for TCDC exchanges, particularly
in the context of the increased emphasis being placed on governance and the
recent recognition by the World Bank that an ‘effective state’ is
an important element in the overall development equation.
(ii) Substantive
Areas
(a) Expansion
of Trade and Investment Opportunities
Although cooperation
in a number of areas such as food security, transportation, communications and
the environment is important, trade and investment assume special importance
in the present climate of globalisation. In this regard, the recommendations
contained in the Buenos Aires Plan of Action and other declarations of the developing
countries underline the overriding importance of cooperation in these areas.
Pivotal countries are therefore well placed to take the lead in promoting the
expansion of South South trade through the establishment of appropriate linkages
between major trading blocs in the developing world, such as ASEAN and MERCOSUR.
This could expand considerably the share of the developing countries in world
trade. It is indeed quite significant that current estimates suggest that by
the year 2005 the combined trade of China, India, Brazil and Indonesia will
account for a significant proportion of world trade. This statistic underlines
the tremendous potential for the expansion of South South trade which is likely
to become even more significant in the context of demographic trends which suggest
that by the year 2025, more than 7 billion of the projected 8.5 billion of the
world’s population will be located in the developing world. Indeed, it
is increasingly being recognized that while the developed countries have in
the past served as the engine of growth for the developing countries, the emergence
of dynamic economies in the South and the steady growth of the population of
the developing countries suggest that the dynamic for future growth will be
located increasingly in the South. By facilitating exchanges between trading
blocs in the South, TCDC could serve as an important instrument in laying the
foundation for trade expansion among developing countries which could also serve
as a stimulus for expanded growth.
Moreover, since
financial cooperation is closely linked to trade expansion, there is considerable
scope for cooperation among developing countries in this area. The recent experience
of countries such as Mexico, Malaysia and Thailand, which have witnessed instability
and volatility in their financial markets puts them in a good position to share
their experiences with other developing countries in order to enable these countries
to avoid similar problems. Such exchanges could also serve as a basis for increased
financial cooperation among the countries of the South in an effort to counter
the shocks and uncertainties created by the integration of these countries in
global financial markets.
Similarly, the
development of significant technical and industrial capacities in the developing
countries creates a tremendous potential for the exchange of technology among
these countries and, more important still, for an expansion of South-South industrial
cooperation which could take the form of increased investment in other developing
countries, which is already taking place, or the establishment of joint ventures
and joint production enterprises based on a combination of resources available
in the participating countries.
The expansion of
trade and investment in the South based on the establishment of creative linkages
between trading blocs and on new modes of industrial cooperation has the potential
to create an important countervailing economic power in the South which could
strengthen significantly their bargaining position in the global economic system.
(b) Joint Action
in Support of Common Positions in Global Economic Negotiations
Cooperation in
this area has become even more important in the face of the unrelenting pace
of globalization and economic liberalization that has been driven largely by
the economic interests of the developed countries, reflected, to a significant
degree, in the activities of dominant transnational cooperations located in
these countries, and which have functioned as the main globalizing agents, integrating
production structures and markets on a world-wide basis. The danger of an unqualified
Northern - driven process of globalization, motivated by a desire for access
to cheap labour, strategic natural resources and increased trade and investment
opportunities, is that it could lead to the creation of global economic structures
which limit the growth of indigenous production capacities in the South and
perpetuate a pattern of unequal exchange between the developed and developing
countries in all areas of economic, social and cultural endeavour, resulting
in disproportionate economic benefit to the former and the growing economic
marginalization of large parts of the developing world.
By virtue of their
capacities and experiences, pivotal countries could play a leadership role in
articulating the needs of the developing countries, with individual pivotal
countries or groups of such countries assuming responsibility for elaborating
positions on selected issues that reflect the common interests of the developing
countries in international negotiations, particularly in the context of the
WTO. This approach could be applied to critical issues such as competition policy,
national treatment of foreign investment (the proposed multilateral investment
agreement), intellectual property rights, procurement and labour and environmental
standards being dealt with in the WTO negotiations, all of which have significant
implications for the development prospects of the developing countries. Initiatives
of this type would need to be carried out by pivotal countries in close collaboration
with institutions in the South such as the South Centre and the Third World
Network (TWN), both of which have enjoyed the support of the Special Unit for
TCDC in carrying out analysis and organizing workshops and seminars on globalization
and economic liberalization. As an alternative, pivotal countries could second
staff to the South Centre and/or provide appropriate financial support to the
Centre to enable it to carry out its activities in this area. Of course, the
positions advanced by pivotal countries on the issues selected by them would
need to be fed into the Group of 77 to ensure overall consistency with the positions
embraced by the developing countries as a whole.
It is recognized,
that, given differences in levels of development of the developing countries,
the economic interests of these countries are not always identical. However,
since very few developing countries, including pivotal countries, despite their
relatively developed capacity, are capable of surviving on their own without
the support and solidarity of other developing countries, all developing countries
have a vested interests in contributing to the formulation of common positions
which reflect their collective interests.
(c) Specific
Initiatives to be supported by Pivotal Countries
In the context
of the broad areas of cooperation outlined above, the following are some of
the more specific issues for which pivotal countries could assume a lead role
in promoting such cooperation:
- the identification
of opportunities for the expansion of South-South trade through the establishment
of increased linkages between economic integration and cooperation arrangements
(e.g. ASEAN/MERCOSUR, ASEAN/SADC, MERCOSUR/SADC);
- carrying out
studies to determine the present level and future potential of intra- and
interregional trade flows;
- introduction
of the necessary policies and establishment of appropriate institutional mechanisms
to support intra-regional and interregional investment among developing countries,
bearing in mind that investment is a key determinant of economic growth and
employment generation in developing countries;
- the encouragement
of intra-South investments through the introduction of incentives designed
to stimulate regional and interregional investments and capital flows, including
the mobilization of resources from financial institutions in the developing
countries;
- carrying out
detailed studies and analyses to determine the potential for forward and backward
linkages in markets and the nature and pattern of production complementarities
among developing countries in respect of manufacturers and services;
- the determination
of the contribution of intra-regional trade and investment flows to domestic
production, imports and exports and the service sector of developing countries;
- strengthening
of infrastructural facilities for communications and transport within the
South, including the establishment of information networks to facilitate the
rapid flow of information necessary for effective business transactions;
- strengthening
of small and medium enterprises through enterprise-to-enterprise exchanges
in strategic sectors in order to ensure that the private sector plays a more
meaningful role in TCDC and ECDC and a determination of the specific measures
necessary to foster intra-regional and interregional joint ventures, business-to-business
contracts and technology transfer;
- the pooling
of technological know-how and scientific capacities to develop a diversified
production structure to ensure a more self-reliant development strategy on
the part of developing countries;
- the exchange
of experiences on urban management in order to find optimal solutions to the
problems facing developing countries in this area;
- exchange of
experiences on structural adjustment and the coordination of macroeconomic
policies;
- a review of
the implications of various aspects of the new international trading regime
resulting from conclusion of Uruguay Round of Multilateral Trade Negotiations
on the prospects for promoting South-South cooperation;
- the identification
of a select number of interregional and regional production schemes as a basis
for promoting technology exchanges;
- the identification
of specific opportunities for multi-sectoral cooperation in trade, investment
and finance among developing countries;
- the identification
of opportunities for expanded production (in agro-industry, manufacturing
etc.), based on trade complementarity;
- the identification
of measures to strengthen trade and financial cooperation among developing
countries;
- establishment
of comprehensive trade information systems of developing countries, including
the expansion of the South Investment, Trade and Technology Data Exchange
Centre (SITTDEC) to other developing regions or establishment of similar mechanisms
in these regions;
- the expansion
of export financing schemes and the promotion, as appropriate, of linkages/exchanges
between existing schemes in the developing countries;
- the promotion
of inter-regional cooperation in the development of capital markets by providing
the services of experts from developing countries which have fully developed
markets, to others which are seeking to establish or expand such markets;
- the promotion
of exchanges between security markets in the developing countries and the
facilitation of cross-border security trading;
- the harmonization
of financial regulations, including taxation and other systems in order to
facilitate trade and investment among developing countries;
- the establishment
of intra- and inter-regional protocols designed to promote closer integration
and cooperation between the financial markets of the developing countries;
- the identification
of opportunities for the establishment of multinational production enterprises
and joint venture arrangements linked to exploitation of the resources of
participating countries;
- the exploration
of options for creating South-based transnational enterprises as a basis for
capitalizing on skill specialization and economies of scale;
- establishment
of an intra-South production framework;
- promotion of
South-South investment in manufacturing and services;
- the identification
of opportunities to intensify cooperation in research and development (R and
D) in which developing countries have a long-term advantage;
- the promotion
of exchanges among developing countries in modifying patent systems and related
legal instruments based on the provisions of the WTO agreement on TRIPS;
- the promotion
of technical exchanges in respect of the use and conservation of biodiversity
resources in the developing world;
- cooperation
in formulating harmonized phyto-sanitary production standards in the context
of an expansion of South South trade;
- the promotion
of intra-industry trade as a modality for trade expansion among developing
countries;
- the provision
of support to LDCs in order to enable them to meet their commitments under
the Uruguay Round agreements and also to increase their capacity to exploit
more fully opportunities deriving from such agreements;
- the promotion
of increased linkages between Chambers of Commerce in developing countries
as a stimulus for trade expansion and investment;
- the adoption
of measures to accelerate progress under the Global System of Trade Preferences
Among Developing Countries (GSTP) which could serve as an important instrument
for trade expansion among developing countries;
- an analysis
of linkages between industrial and trade development to facilitate the exchange
of experience among developing countries in this area;
- the exchange
of experience among small and medium-size enterprises in order to enable them
to exploit market opportunities within integration arrangements as well as
interregionally;
- the transfer
of information and knowledge on new technologies;
- the promotion
of cooperation to upgrade the technological content of traditional exports
of labour-intensive goods and services; and
- exchange of
experience in the formulation of industrial policy.
A number of the
areas listed above for possible action have already been identified in various
decisions of the developing countries, including those embodied in the San
José Plan of Action adopted by the South-South Conference on Trade, Finance
and Investment held in Costa Rica from 13-15 January 1997. What is required
is a pragmatic effort to establish priorities which lend themselves to an
intensified pattern of TCDC and ECDC and the adoption of specific measures
to carry forward selected initiatives. It is hoped that the meeting of pivotal
countries would contribute significantly to this objective.
(d) Measures
to be adopted by Pivotal Countries in carrying out their Responsibilities
In carrying out
their responsibilities in the various areas identified, pivotal countries would
need to adopt a number of specific approaches and modalities. As indicated earlier,
one obvious approach is for each pivotal country, or group of such countries,
to assume responsibility for initiatives in specific areas or sectors based
on their established competence in the selected areas or sectors. The country
or countries concerned would be responsible for preparing an action plan for
advancing appropriate initiatives in the relevant area or sector. For example,
a pivotal country or group of pivotal countries could assume responsibility
for promoting cooperation in training and human resource development while other
countries may choose specific areas of technology such as biotechnology or non-conventional
energy. Yet another group may identify the services sector or some aspect of
this sector such as banking, software development, informatics, etc. Having
selected a specific area, the pivotal country or countries concerned should
identify selected countries on a regional or interregional basis with which
they would seek to carry out a pilot activity to operationalize the programme
with a view to its subsequent expansion, where feasible, to other developing
countries. In other words, a country choosing training and human resources development
as its area of responsibility should identify the network of countries or target
countries with which to promote cooperation after studying the demand and supply
capabilities of various countries. This process of identifying countries would
entail the necessary background studies on complementarities in resource endowments
and capabilities which exist in different countries. The pivotal country, working
in collaboration with universities and research institutions or individual national
consultants, should initiate studies on production, resource and technological
complementarities.
SU/TCDC could play
an important facilitating role in this regard and has in fact already developed
a methodology for matching capacities and needs among countries in selected
areas in the form of capacity and needs matching exercises (CNMs) - a number
of which have been sponsored by the Unit over the years in such areas as technology,
minerals, forestry and poverty eradication. An exercise of this type was recently
carried out in Haiti in which 16 Latin American and Caribbean countries agreed
to sponsor a number of projects in support of that country’s reconstruction
effort.
Top
ROLE
OF SU/TCDC
Under the New Directions
strategy, SU/TCDC has been given the mandate to support pivotal countries in
carrying out their role as catalysts for intensifying TCDC. The strengthening
of cooperation between pivotal countries and SU/TCDC in fact constitutes a strategic
partnership aimed at assisting the developing countries to promote cooperation
in high priority areas which are likely to have a major development impact on
a large number of developing countries.
The New Directions
strategy for TCDC, in calling for a closer operational integration between TCDC
and ECDC, also provides increased opportunities for cooperation between SU/TCDC
and UNCTAD in support of wider schemes of economic cooperation.
SU/TCDC will therefore
play a supportive role, in conjunction with other parties, by utilizing TCDC
instrumentalities such as capacities and needs matching exercises (CNMs), subject-specific
workshops and seminars and networking between relevant institutions in seeking
to promote activities initiated by pivotal countries in their relevant areas
of competence.
However, while
SU/TCDC will assist pivotal countries to a very limited extent, in establishing
appropriate institutional arrangements for carrying out their responsibility,
mainly through the provision of advice and information, the main thrust of support
provided by the Unit will be to enable other developing countries to benefit
from the expertise, experience and training opportunities provided by pivotal
countries.
The TCDC Information
Referral System (TCDC-INRES) which represents the largest database on institutional
capacities in the South continues to serve as an important source of information
on South-South cooperation. Its expansion into a Multi-Dimensional Information
System, which will incorporate data not only on institutional capacities but
also experts, centres of excellence and, most importantly, innovative technical
cooperation experiences capable of replication in other developing countries,
should facilitate an intensified pattern of South-South cooperation in which
pivotal countries are expected to play a leading role.
In this regard,
it should be pointed out that the rapid evolution of the Internet and related
Information Technologies in the last few years has dramatically changed the
pattern of international exchanges. The new technologies, including digitization
of information, high-speed computer chips and multi-media instruments for education
and research, now permit the instantaneous transfer of information among countries.
These developments offer significant opportunities for identifying new modalities
to operationalise TCDC exchanges. The expansion of the TCDC-INRES, together
with the utilization of modern information technologies, can quicken the pace
of TCDC significantly as it will allow developing countries to tap available
capacities within the developing world. It will also facilitate networking arrangements
and the exchange of knowledge and successful experiences among developing countries.
Seizing this opportunity
would require a concerted effort to build or strengthen the information base
of National TCDC Focal Points, particularly in the area of managing, maintaining
and disseminating information that fosters TCDC. Pivotal countries should, therefore,
play a leading role in utilizing state-of-the-art Information Technology Tools
(e.g. electronic mail and the Internet) to improve information flows among national
Focal Points. In addition, they are encouraged to establish National TCDC "Home
Pages" on the Internet to disseminate information relevant to TCDC on a
regular basis. The Internet and related Information Technologies provide development
partners with a powerful tool for accelerating the use of TCDC in development
programmes and projects.
Top
SUPPORTING
MECHANISMS
Pivotal countries
would need to adopt appropriate policies and put in place supporting mechanisms
and institutional arrangements. In particular, they would need to ensure the
establishment of an effective focal point mechanism for TCDC, functioning at
a high level of responsibility or, alternatively, with direct access to a high
level of decision making in respect of TCDC and ECDC in order to ensure that
South-South cooperation is given due importance and prominence in technical
cooperation activities.
Pivotal countries
should actively seek to involve private sector participation in their TCDC initiatives
in order to achieve optimum results. They would need to establish effective
partnership with key private sector entities in the developing countries such
as major business enterprises and Chambers of Commerce and Industry. This will
be particularly necessary in cooperation arrangements involving the transfer
of technology. The private sector in some developing countries has made significant
progress and has become a major actor in the national economy. In almost every
sector there exist companies with the requisite technical expertise, financial
power and marketing ability to compete in the global economy. As mentioned previously,
the growing economic prosperity in parts of Asia, Latin America and Africa offers
significant opportunities for establishing strategic partnerships in a number
of key industries. Similarly, NGOs which have widespread grassroots participation,
should be seen as effective instruments for channeling the benefits of TCDC
to a large number of people. They can also serve as mechanisms for monitoring
and evaluating the efficacy of TCDC modalities and, when appropriate, proposing
adaptations and refinements in respect of TCDC activities.
Nevertheless, it
would be important for pivotal countries themselves to identify the most effective
modalities and mechanisms for promoting TCDC, based on their individual experiences.
Many of the experiences of pivotal countries are quite creative and could in
fact be replicated in other developing countries. This could be achieved through
the provision of specific technical assistance provided to other developing
countries.
The provision of
the necessary support for carrying out the role of a pivotal country would also
require the introduction of innovative funding arrangements at both the national
and international level. The following examples are relevant.
Top
FUNDING
ARRANGEMENTS
(a) National
Allocations
As a demonstration
of their commitment to TCDC, pivotal countries would need to allocate resources
from their national budgets for the promotion of such cooperation, as many developing
countries already do.
They should also
seek to establish appropriate national umbrella TCDC programmes/projects funded
from their UNDP country allocation in order to ensure that flexible financing
is available for carrying out their responsibilities as pivotal countries.
(b) Triangular
Funding Arrangements
Pivotal countries
should seek to tap bilateral as well as multilateral donor funding to facilitate
triangular arrangements under which a donor would provide funding to support
the exchange of experience or other cooperation arrangements among developing
countries.
(c) International
Funding
(i) SU/TCDC
The Executive Board
has allocated approximately US $5 million a year to enable SU/TCDC to support
high priority strategic TCDC initiatives which are likely to have a major development
impact. These resources will be utilized to fund activities initiated by pivotal
countries in areas such as trade and investment, production and employment,
poverty eradication, environment and the promotion of TCDC on the understanding
that, in keeping with current policy, the bulk of the assistance will be provided
to enable other developing countries to benefit from the expertise and experience
of pivotal countries.
(ii) Trust Fund
for South South Cooperation
In accordance with
the provisions of UN General Assembly resolution 50/119, a Trust Fund for the
Promotion of South-South Cooperation has been established within UNDP to serve
as an additional funding source. So far, only two countries, namely, Japan and
the Republic of Korea, have contributed to the Fund. Pivotal countries are therefore
encouraged to contribute to this Trust Fund which could serve as s funding source
for activities carried out by them, including those for which joint action is
required by developing countries in support of a common position in global negotiations.
Top
CONCLUDING
OBSERVATIONS
TCDC and, indeed,
South-South cooperation in general are likely to play an increasingly important
role in international development cooperation in the future. Its importance
is in fact increasingly being recognized by the developing countries and by
the international community as a whole. It is indeed significant that the Secretary
General of the United Nations, in announcing his TRAC I reform proposals stated
that an important objective of the UN reform effort is to reorient the work
of the Organization towards South-South cooperation. The UN organizations and
agencies are therefore expected to ensure that the programmes and activities
carried out by them are permeated by the spirit of TCDC and ECDC and should
also be in a position to provide appropriate technical support for the efforts
of pivotal countries. In this regard, it should be pointed out that system-wide
guidelines on TCDC which were originally approved by the Administrative Committee
on Coordination (ACC), have been revised and updated by SU/TCDC and will be
submitted for approval by the fifty-third session of the UN General Assembly.
The guidelines on TCDC will therefore feature prominently in the discussions
which will take place in the context of the triennial policy review of operational
activities during the fifty-third session of the UN General Assembly.
The identification
of pivotal countries to serve as catalysts for the promotion of TCDC represents
an important development in the evolution of South-South cooperation. It is
therefore important to identify concrete measures that will enable these countries
to serve as agents for the intensification of such cooperation in support of
the development aspirations of the developing countries and as a means of influencing
the shape of the emerging global order in a manner consistent with the interests
of the developing countries.
Top
|
