The African Region and International Negotiations

Distr.

LIMITED

% October 1978

UNITED NATIONS Original: ETOLISH

ECONOMIC AND SOCIAL COUNCIL

ECONOMIC COMMISSION FOR AFRICA Executive *Committee

Nineteenth .-meeting"

Arusha, 23-25 October-1978

THE AFRICAN REGION AND INTERNATIONAL NEGOTIATIONS

Note by the secretariat

Introduction

la In the past few years, particularly since the sixth and seventh special sessions of the General Assembly on raw materials and deve3opment and development and international economic co-operation xespectively, the Lima Declaration on.

Industrialization and Development and the relevant resolutions of the General

Assembly on that subject,»a number of features have developed in the international negotiations in which the region participates in one form or another and to the changing character and implications of which the secretariat feels it necessary to draw the attention of the Executive Committee and the Conference of Ministers.

2. The first feature is the broadening of the concept of negotiation, to include what are called consultations and dialogues. Whilst these developments provide

for increased flexibility and are expected, by virtue of their informality of procedure and intent an£ their susceptibility to selective membership, to reduce tensions and avoid confrontations, they also permit modifications in the rules of procedure whioh may or may not serve the interests of the region. The importance of rules of procedure was emphasized in a working paper^written in 1973 in

preparation for the OAU Council of Ministers and later of Heads of State and Government which adopted the African Declaration on Co-operation, Development and Economic Independence.

-'General Assembly resolutions 32Ol(s-Vl) 32O2(s-Vl) and 3362(s-VTl).

-^ See African Ministerial Conference on Trade, Development and Monetary Problems

2/

(ADB/OAU/ECA/CONFMIN/sc/WP/1) - Comprehensive report on the technical studies

on trade, development and monetary problems presented by the African experts of the Drafting Committee appointed by OAU, ADB and ECA, pp. 23-2.6.

E/CN.14/ECO/158

2

3« A second feature is the tendency fcr negotiations, consultations and

dialogues to,.be organized apparently without reference to any indications of the relationships-.among them, with the result that member States frequently find

themselves required to attend several meetings simultaneously or in rapid

succession and are therefore? (a) unable to make adequate preparations at the

national level, (b) unable to arrange adequate consultations with one another- beforehand and (c) obligated to stretch their limited negotiating capabilities

to the utmost. Indeed, it seems now to be becoming the practice to hold

pre-conference consultations in the host country where the organization and . ■."

evaluation of data and of issues may be given less than satisfactory attention, ■ 4« What is now becoming more obvicrjs is that the [pattern of international

economic relations in the future is likely to be settled through a wide variety of continual negotiations; consuiiaticns? talks r dialogues and the like and the features of the new national and international socio-economic order are likely to

be determined by the degree to vrldch tho parties are clear on the objectives they -

and other parties -■ are separately pursuing? the adequacy of national and group ■ preparationsj the manner of participation in such negotiations, and the reasonable

^SSfSJS*1011? of the ou"fjC0!nQ of EiUGh aegb'Siatioase In this connexion the secretariat uffiMSSLIIX&tyo 'di&w'attention--to the last preambular paragraph and operative

paragraphs 1, 2, 4 and 11 of Oesaral Assembly resolution 32/174 of 19 December, 1977

whioh read as follows;

the concern that the negotiations conducted so far —

t h

ffl g o

on the establishment of the no;; intc.;. national economic order have produced or,-:.y limited results while the gap between developed and developing.countries, is growing1, and emphasising fhkt further resolute efforts ha.ve to be nads.s partioalerly "by the deve?.6ped countries, to reduce the. existing imbalance,-. ■- -:\ : ■'- '

Affirms, that pJi netfoii^tions of a global na.ture relating to the establishment -of the new ■ intern? fciGnal-.-.economic order should take

within the frpmowork ;of-^he .United lotions system;

Decides to convene, a-spe.cMl.- session of the General Assembly in 1980 ft p high level,in omer to ..assess the progress made inthe ".

various fprums of the United, i^tions system.in the establishmeil-fi of the new.international economic order and, on fihe. basis of that-'■"-'•■'■•■

assessment, to take approR3;iai;e action for the promotion of-fche ■ *:

development of-develop!^ countries, and international economic ' ' ■t;- co-operation-, including the" adoption of the new international ■ ■" .■ : L°

development strategy .for t/ie 1930s;. . ; -■-_■- . - - -: 1 Decides further that this ooffmiircee chall assist the General

Assembly by acting as the :Tocal po\nt in:

;?:::-^.,v«t,(. ,(^)...Overseeing and iipiiitprirg the implementation of decisions, '<uai3d agreemente reached in -fche nesoi^tior.s on the establishment of

the new international economic order in ''one appropriate bodies of the United Nations Eys^emV' ' '"""'

(b) Providing impetus fo;>;resolving difficulties in negotiations

and for encouraging the continuing work in these iiodies;

.,.■> Page 3

rand

6 ns«otia*ions undertaken on the various issues

.onorete results within agreed and sp

5. , Hfore specifically, apart from the fifth session of UNCTAD V, the neimtiM«»a

for. a taDoeaacH*. awim-somowi. +«.+i.* r .. . uauxau y, xne; negotiations

development ^nd transfer of technology:

Re^ioiial Pood Plan for Africa? . ■ .

?-,of pction for the African TVansport Decade? ^

■I development progrrmme covering metals,

^ef ^*riM ^ fd idJ

sHch inetitutions as the African

^{^ Jis as}

Jfenagement;

^-^^T^^ cp-operation;

- Transnational corporations,,

This is an illustrative, not an exhaustive

_0neo

development activities and. the

• ^ L"J™2? f^^:2^^°riariat ^-stands the central policy

war

..-. Page 4

view, the principal object.Gf international negotiations'would be to secure ownership or user ri£&^s..,ov.er those componentsi capabilities and:;irrp&fs which are not available within the system© Accordingly, the process of negotiation

would, brordly speaking, be to settle on the terms under which resources and

capntillities should be traded .^mong the parties* In this contexts ttiere are no

H^ves and Have-nots*,

s> . If this assumption is correct, as-the secretariat is convinced^ it is ami as

numerous resolutions following the 1973 OAU Declaration, the General Assembly and

other resolutions dn the new international economic order, the Revised framework

of principles for the implementation of the new international economic' order in

Africa, 1976-1981-1986, and the resolutions of the Conference of Ministers since 1977 underline, then negotiations should presumably be. about concrete,, specific and, if possible, quantified requirements mostly to fulfil the socio-economic policy objectives set out earlier and, spelled out in greater detail at the".: ■ technical level in real terms as part,of the preparations for negotiations,"

consultationss talks, dialogues and so

9» At present there is a risk of a growing asymmetry in the approach "to negotiations as between the region and advanced countries in terms of the visualization and evaluation of wha.t either party is seeking from the other.

Advanoed countries, in general,, are quite specific about their; objectives:

minerals such as uranium or petroleum or phosphates, markets for specific products, the expansion of- services (insurance; banking? snipping, internal distribution and international, marketing? consultancy services for project design, etc©) .^applied under the invie .bles.account to T/ird World countries

and so onQ Third World countries tend bo rely substantially on generalities with a strong financial bias, such as "aid"; "investment", commodity price

stabilization, debt relief, indexation and the like™ The somewhat general character of some of these concepts leads to confusion as to their concrete content easy whilst making ex post quantitative' and crualitative evaluation of

the outcome very difficult,, . ■ •■

10« In pddition to clrrity of objectives, which fyemxently requires considerable

technical and other preparation ?nd consultationj-^ there is obviously a strong

For the type of situation which ftoft^-preparetion for negotiations may lead one intoj-- see Hormsn Girvahj "Mnking'the Roles of the Game: Country-Company Agreements in the Bauxite Industry" Social and Economic Studies, Institute of Social.pnd.Economic Research, University of the West Indies, Vol»20, ]jb.4 December 1971, PP« 383-3Q4v where "the company itself controls the, information about prices, costs, reserves, alternative expansion paths, production, conditions, ..and-all the-other factors which are needed to devise proper Government po£icies*««

• for examplej pricing and taxation formulae are specified in ways which make it -difficult or impossible for Governments to change them in the li^it of new know

ledge:" quoted in "Global Reach -The Power of the Multinational Corporations"

by Richard JVBarnet and RonaHEo "Isffuller-Simon and Schuster,' 1^/Torfc,. :p»402« The . isituation facing any developing "zu\n1:-rj in negotiating with^cmltimtiona'^

corporations is not different: from ^hose facing the developing countries:-as-a whole in their bargaining exercises with the developed joountrieSo

Page 5

need for evaluation, of :WgofiatingJs±rehffiiIis and^weaknesses % each party not only of itself "but of the other parties* Negotiating strength would, of course,

referNfirst'i;o- an evaluation of *he strength of need of oneparty for wha^t the other oan^ trade overo This meahs*^hat a unilateral recitafilEoh of requests or complaints or charges is a petif:f6h,not a negotiation© Since negotiating stjrength may alter subtly even in the-period off negotiation, there is an obvious need for -well**organized, continuously available, "back-up services* ; ' .

lie Moreover, the negotiating arrangements are -themselves open to some innovative improvement relating to the choice of the negotiator or negotiating team, ,the

authori.tjy'given tothem> the rules governing Corridor or out-ofr-meeting consultations among priric^als as 'distinct from hegotjjatbrs, etc* ' '. . 12. Firia£15r, '*here i& thequestion of tjie' adecjuacy of mechanisms arid procedures for implementation and for" evaluation 6f the practical outcome of agreements

arrived at# . . . . . .,

wl'j-^fv ■ - "■■■{ '-■'■■ ■--:■ •■ ■ ■■ ■;;■""■ . "..'... ....'.',...■..

13»"-It i^ in View of'the foregoing sta*tements atout. the complexity of intertiational negotiations &n3. the'need for countries of therAfrican region to estalt)Hsh the

necessary machinery for preparing ade^uatteiy for such international negotiations

that the secretariat proposes the following' arrangements.

Preparing for international negotiations at the national level ,

14. Although international negotiations^ usually originate from different agencies, it seems that, if maximum "benefits are to be derived from them, eaoh member.State should have, apart from the particular ministry or department that may be directly involved in such negotiations* a central focus for all negotiations* This is because, however different the negotiations iay be, ttey are.likely to have some relationship^ "with one another-in the cxinteit of iheBo^io-epoxiomic objectives-of

the country. This central foous jshould probably be'tfie ministry of economic

development o»of the economy or'a specially'created unit in theoffice of the

president or :in the ^cabihet office^ Themain task 6f such a cenia^ii focus will be

to monitor intettiatibnal negotiations and organize at the national level, in

collaboration with the relevant1 departments oir ministries, the' necesssiry technical

wotk conneoted wiUh any international negotiations* . 15. In talking about the technical work necessary for effective participation in international negotiation^, we should'like to recall the points made earlier about the importance of olarityr'of objectives;'and "-the need for an ^valuation of

negotiating strengths^ and -weaknesses of the parties involved, etc« The implications for expertise and research including data collection and analysis all related to the domestic socio-economic objectives cannot be oyeT>-enphasized». ... .

16. furthermore, international negotiations themselyes have now become a profession that requires a imiltidisciplinary app.roacne There ;o.s therefore need at the national level to design and implemeni >''rigorous programme ;for international negotiatorso If this is not done, there is^the jgrave danger of resort&g to foreign constLLtants

who, while extremely competent, my not always be totally objective in the advice

they give.

Page.g..

sgjbreglonal and regional levels

17o In tl^.nature. of,-thijnga,. the international negotiatjjQns.in wtiiph fthe States;

members. o£;EC,A hpxk been, ^participating ;and will .increasingly participate ars

o.on^o.ted between., gr.oupsr&f qountrieao Hencer,there is an-imperatiye aaeed, £or the

hairopnizatipn...of.views and,..agreement on the strategy to /be adopted at the sub-

regional or regional level depending on the nature of the subject and its: coverage*

And for such subregional and/or regional harmonization and agreement, a similar

fKr^ is .needed at. the national level* , .,....■ .: . h ,

0\5cL;:r ,^n ^is,.^OJQnexiQn^.it is relevant to note again, that more and more of the

international negotiations will "be conducted in the framework of the United Hations as Gfeneral Assembly resolution 32/174 cited above has called for.

yte?$gfireu it will t>e necessary tp organize all pre-negotiation discussions

under -the ujnbrella of the Economic Commission for Africa, * ■ - : ., {

19« In that case, the Commission will organize not only such pre-negotiation meetings .as necessary put also monitor the implementation of whatever agreements are arrived at in tl^eT negotiations and report to African countries apcordingly*

As al^a^y indicated,, effective preparations for international n^gpii^tionW \ . require extensive technical work, Thus, HJCA will automatically- undertake -file

necessary technical work at the regional level and provide the necessary advice at the negotiations* EGA secretariat is already performing this type ..of. task in connexion with the angling work on a preferential trade area toar~thevo"i3tfntries ~ of the ^eastern and southern African region. ,.; ,

• ■ -■ ■ • - '-'.'.■' ■ ■ ■ ■... - ' ,

Conclusions ' .•■";.'.;,_.. . . ., " . -

20« Olhis note,/is not. art; attempt to spell out in any detail the modalities of

international; negotiations^ "Hie intention here has been to draw attention ta the ■

growing .importance of; ^e-"subject, the need for-urgent review of trends in,the

pattern and modalities of such negotiations, and their impact not only on the shaping of the, new.-international .economic order, but on the pursuit of collectively agreed socich-economip policies and objectives of the African region,- the risks of an

unquestioned acceptance of these trends or of a traditional approach to these trends, and the possible lines of action the Committee may recommend to the Conference of Ministers to enable the region to achieve its generally agreed goalse

iis little doubt that a more widespread familiar^y^aKpng senior officials likely to be engaged in international negotiations^ such as those on . issues- mentioned in this note with the changing characteris-l^ps.' and modalities

of .iivterhational negotiations is desirable. .. .. -... .,-'.. . . .' ■ ... ;.. ,

22, Also desirable is* the intimate involvement of EGA not only in studying current trends and their likely .effects but in proposing measures by which t}ie region oaai most effectively pursue its purposesV^n eq .far, as these-require participation in, international negotiations under whatever' label * ; The secretariat believes that the subject is sucb; that any. conclusions and recommendations;finally agreed on

should reflect the v,iews and experience of member Stateso ... . '...'