Original: ENGLISH
MIC AND SOCIAL, COUNCIL
.'ACTION ON TXiE ESTABLI.%MERT OF A NEW INTERNATIONAL.
ECONOHIC
- y
Note by the secretariat
CmTmn's
~'W-UZZ hpduction of ccmmdities of interest to Nrican countries, 1971.
-
Ii! '-
1/ General A ~ ~ m b l y resolutions 3201 (S-VZ) and 3202 (S-VI).
FOREWORD
i. ECOE30C a t i t s fifty-seventh session i n July 1974 i n resolution 1911(~VII) requested 'the executive heads of a l l organs and organizations i n t h e United Nations system t o submit, as appropriate, reports t o t h e i r respective governing bodies concerning the re-orientation and adaptation of t h e i r programme of work"
( t o implement the provisions of t h e Declaration and the Progra~lme of Action withip..
t h e i r respective f i e l d s of conpetence); resolution 1896(LVII) i n i t s operative paragraph 1 requests "the regional economic ccsmnissione t o adjust, as appropriate, t h e i r respective prograumes of work and a c t i v i t i e s so as t o discharge effectively t h e i r responsi3ilities i n relation t o t h e urgent implementation of t h e Programme of Action on t h e Establishment of a N e w International Economic Order adopted by tbe General Assembly i n its resolution 3202(~-KC)". Operative paragraph 2 of the
same resolution requests t h e Executive Secretaries of t h e regional e c o n a i c
ccrmnissions "to submit, as soon as possible, t o the member States of t h e i r respective ccnmaissions, suggestions for the implementation of t h e provisions of paragraph 1 above".
ii. A provisional version of t h e present paper, which has been prepared i n response t o t h i s request, was submitted t o t h e twelfth meeting of t h e Executive C d t t e e i n November 19'74. The Committee welcomed t h e paper, which, it was generally agreed "represented a useful approach t o reinforce t h e action of t h e developing countries tQW&rds t h e establishment of a N e w International Economic Order. 'Esrious approaches had been made i n t h e past and embodied i n such &c\rmentS as Africa's strategy f o r development i n t h e 1970s, t h e Declaration by the Ministers.
of 'PraCe and Industry, and the resolutions adopted by WCTAD, but it was w e f u l
t o have a single documeut which could be used as a basis for r e a l actiont!.
.
3.
me
s i x t h s p e c i a l s e s s i o n of t h e General Avsernbly, which had been c a l l e d L..+e M t i a t i v e of President Eouari Boumedienne of Algeria, closed its d e l i b e r a t i o n s
t
a-ting a Declaration on t h e Extablishment of a New I n t e r n a t i o n a l EcOMPIied e r / and a Programs of Action
2/
intended t o p u t t h e declaration i n t o effect.L &
t e x t s we--e adopted without a mt-. Barever, a number of t b e developed*untrlles ., recorded t h e i r reservations about parts of t h e texts.
:
.
.
Mpst of t h e p o i n t s a t .issue during t h e s p e c i a l s e s s i o s had been discussed ' ,- w o r e
-
t h e b i a s a g a i n s t the developins countries i n t h e world economy, theiraw4arable tenas of t r a d e , t h e i r increasing debt burden and t h e i r exclusion, f o r
I
1 p r b c t i c a l purposes, from t h e decision-making i n i n t e r n a t i o n a l t r a d e and monetary fairs.
E
- .
a.
The Declaration lists 20 ~ m i d i n g p r i n c i p l e s on which the New I n t e r n a t i o n a l mmic Order should be established. The Programme of Action is s p e l t o u t m d e r10 following headings;
(i) Fundamental problems of raw m a t e r i a l s and primary collnnodities M r e l a t e d t o trade and develope,nt;
(ii) Internatio.ra1 monetary s y s t e a and financing of t h e development of developing countries;
(iii) I n d u s t r i a l i z a t i o n ; (iv) Transfer af technology;
( 1 Regulation an6 c o n t r o l over t h e a c t i v i t i e s of trans-national c3rpora-
.
. t i o n s ;. .
( v i ) C h a r t e r of economic r i g h t s and d u t i e s of S t a t e s ;
. .
(vih) ..Pronotion of co-operation mong 8eveloping.countries; . .
( v i i i ) Assistarace i n the exercise of permm.ent sovereign* of S t a t e s ovef .natural resources;
(ixj Strengthedng t31e r o l e of the Untted.Nations system i n t h e f i e l d of i n t e r n a t l a n a l e c o ~ x r i c "m-operation;
(x3 Special prcqramme.
4.
The F i r s t and the Secondunited Hations Development Decades were declared. on the bssic premise that development was going t o be a joint venture between developed and developing countries, and t h a t there would be a major transfer of resources from t h e rich t o the poor countries. With t h e adoption of t h e two General Assembly resolutions the framework for the International Development Strategy may need significant revision i n terms of objectives and policies. I n particular, it mhybe netessary t o modif+y the Strategy's key quantitative targets for t h e second
+
half of the l970s.
5 . We are witnessing now the f i r s t signs of a future dramatic change i n t h e balance of economic and financial p e r between t h e developed and t h e developing
Most of t h e raw materials required by t h e industrial world e x i s t , and are produced, i n developing countries. I n t h e future the developed countries are going t o be increasingly dependent on resources imported from outside:
The developed world today comprises l e s s than one-third of the t o t a l world population. By the next century it w i l l have dvindled t o about 10 per cent;
Today the major part of t h e c a p i t a l of the world i s concentrated i n a handful of nations, while t h e r e s t of the world lacks
c a p i t a l but i s labour-abundant. It is not possible t o keep t h i s c a p i t a l and labour apart and yet have t h e basis of world prosperity;
The developed countries w i l l need t o build up and sustain effective demand among the overwhelming bulk o f t h e world population i n order t o maintain t h e i r own standard of living.
6.
The s i x t h apecial session of t h e General Assembly was t h e first concerted attempt by t h e t h i r d world t o bring t o the notice of the world t h e basic changes t h a t are taking place s o t h a t instead of t h e confrontation t h a t has existed s o f a r , there can be co-operation between the developed and t h e developing world t o promote policies of mutual accommodation. Such accommodation might include:( i ) Redistribution of industries, particularly those based on energy o r using a l o t of unskilled labour. The compqrative advantage of a number of such Cudustries i s changing radically i n favour of t h e developing world. Such redistribution can be carried out i n
5
t o 10 years allowing for c a p i t a l replacement and retraining p r o g r m s .( i i ) Harmonization or reconciliation of i n t e r e s t s with a view t o creating a framework within which each group of countries could play i t s full and r i g h t f u l role;
1/
See h e x table for share of Africa and other developing ~ ~ U n t r i e S i n world production of major commodities, (pages15,
16 and17).
( i i i ) ; Redefini,tion,of, ... ..,,. . . . t h e . r o l e , of foreign assistance t o serve as a
ve+ic$e:;fir ;sey development s t r a t e g i e s which w i l l enable , .
. .develaplngriations t o assume full responsibility for t h e i r o m future' deVelopmerit within a 'framework of economic and p o l i t i c a l
. . .independence;
. . ,. ,
( i v ) Policies a n d meawes t o ens&$ t h a t t h e developing world can -.
, .incre,asingly .assume the major burden of i t s own development, be it in.arraiging i t s o m foreign assistarice or i t s own trading . .
patterns ;
. . .
. . .
. . .
fv$ . Reform
of^
international, financial and trade i n s t i t u t i o n s suchas
:. . . .: IUF, IBRD and GATT, whicb&l were s e t 'up a f t e r t h e Second World
' W a r ~ h s n ~ e c o n d c parer , w a s 'cbncentratedin USA and Western . . . Europe, t o make t h e s e i n s t i t u t i o n s &ire responsive t o t h e : .
.
increkiing influence of t h e commodity-producing countries; . ~ . .
. .
. .
(vi) Partnership, i n development
.
The world balance which i s being sought should. take account. of t h e long-term i'ntiterests of a l i parties - . . . .. . . , .
. .
.concerned. . . . . . . . .- . .- . . . . .
. . . . .
. . . .
T i
d sis
the: beckground on which ECA,& a United Nations body. serving: t h e ,'ndb.ican developing countries, has t o adapt, as necessary, i t s programe of work
.la
p r i b r i t i e s .11. 'Em Pmm ECA PROORAMME OF WORK AM) PAIORITIES
. . .
&
- ~ c ~ n o & c CO-ssion 'for m i c a . ir& kbtsblished . . 'in 1958 with t h e ; f o l l w i n gS j o r qbjectives:
:
. . I . . ,, .
.,... .
. . . ) 1 i
(a) I n i t i a t e and participate i n measures f o r f a c i l i t i t i n g concerted action :
. , f o r the econoqic development of Africa, including'!its s o c i a l wpect.,. : - .
d iriterrelatitimhii of economic aid s o c i a l factors, with
a view
t o.
:'sing, the l e v e l of economic a c t i v i t y 'and levels
of'
living i n Africa,, :, , . ,..and f o r maintaining and strengthening t h e economic relations of .
,
. ,. - . . . member countries and tei-ritories o f t h e C d s s i o n , both among themselves
and with other countries of the world; . ....
. . . . . . _ ;
. . . . .
(b)
: M&. '& dii.$kmin&e studies oi' &*o& and technological p r o b l ban& . . . bev.+ppents .,,,. i n Africa and c o l l e c t , evaluate and disseminat.e . . . . : < . ' eSon-c,: . . . t&hGolbgical .,> .... .,
.
&d . s t a t i s t i c a l . information; . . . . . L e i. . . . .
( a ) P & ~ o & addsory s&ices t o countries and t e r r i t o r i e s on request; . . .
. .
. . . . : ,
..
(4)
;,Assi,&t&
: t h e EOrmdati6n sad, developmeht of co-ordinited . . .as a basis for practical action id promoting economic snd technological development i n t h e region.
9. Keeping i t s terms of reference i n mind the work programme of ECA f o r t h e
@?0a has been formulated on the basis of the International Development Strategy O d Aiaica's Strategy f o r Development i n the 1970s as adopted i n February 1971
a t the f i r s t meeting of the COnference of Ministers of the Economic U d s s i o n for Africa. It is f l e x i b l e and subject t o review .by t h e African Confeirences of Ministers i n order t o cope w i t h emerging economic problems facing the continent.
10. The adoption by the General Assembly of resolutions-3201(~-VI) and 3202(~-VI) may require t h a t the Commission readjusts i t s programme of work so as t o discharge effectively its responsibilities i n relation t o these resolutions. In t h i s process it should, of course, be iecognized t h a t while the resolutions have assembled the s a l i e n t f a c t s underlying the problems of the developing countries, it i s not a panacea f o r a l l Africa's i l l s . The task facing African countries i s t o restructure t h e i r own economies and t o identify key projects, i n s t i t u t i o n s and establishments
for the integrated development of Africa. I n order t o assess the extent t o which an adjustment i s required, the follauing paragraphs b r e f l y s e t out the main areas of concentration i n the present programme, with p a r t i c
i
ar attention t o thea c t i v i t i e s t h a t can be said t o f a l l within t h e context of the two General Asserdbly resolutions.
11. Particular attention has i n recent years been given t o a c t i v i t i e s i n t h e f i e l d s of mass ooverty, unemployment and rural development. This i s due t o
a
nmber of important factors which include the inadequate r a t e of expansion i n employment opportunities t o absorb t h e annual additions t o the labour force and the worsening i n recent years of t h e living conditions of t h e majority ofAfrican populations.
12. The development of African agriculture
-
i s receiving p r i o r i t y , not only because80
per cent of the t o t a l m a n population is dependent on t h i s sector, but 8180 because through a b e t t e r combination of factor mix, there are brighter prospects than i n other sectors f o r a substantial increase i n production and potential gains i n employment. It i s also t h i s sector t h a t supplies the basic foodstuffs required for a minimum standard of living, the raw materials required for industry and f o r exports and t h e major part of the market f o r i n d u s t r i a l products. Emphasis i s given i n the s e c r e t a r i a t a c t i v i t i e s t o measures f o r increasing food production and for generally promoting agricultural development through multinational co-operation and trade expansion, such as t h e establishment of an information bank on agriculture i n Africa; analysis of t h e s t r a t e g i e s and policies f o r increasing food production, f o r inter-country trade i n food products, and f o r holding food reserves by groups of countries; assistance t o the mass of the s m a l l farmers, including livestock rearers, t o become more productive and increase t h e i r income thereby promoting self-reliance and more equitable income distribution; preparation of studies f o r regional commodity groups, including food crops, livestock and meat and i n d u s t r i a l and export colm~odity groups, i n order t o f a c i l i t a t e discussions on measures f o r increasing production andobtaining remunerative prices i n developed countries f o r the export products; and improvement of agricultural i n s t i t u t i o n s and services, particularly marketing and input supply i n s t i t u t i o n s and extention service, which w i l l f a c i l i t a t e increase i n agricultural and food production.
' . . . _,_ -
.,-.-
':,. ..,..J.
.., ..
, eb.3 ..qc:y !.~?;nrt;mt to nmess Pfric.sls n a t u r a l resources i n order to -,increbse t h e value e.dded accruing t o Africa. -Fa is a l s o a l e a d i y"g- s e c t o r . The work of S c 3 is d i r e c t e d . i n t o almost a l l f iel8B. of i n d u s t r i a +lewelgErmentt Thus, s t u d i e s a r e being m ~ l e t e l t o c r e a t e an i f r i c a n P i n e r d 4Jevel p m e n t c w n c i l t o promote t h e g r e a t e r domestic i n d u s t r i a l ~ r o c e s s i w Of
:Mricals r 2 w materials; advisory a s s i s t a n c e is provided i n . t h e a r e a of foresh- , : b a s e d & food-processing i n d u s t r i e s ; c o l l e c t i o n and analysis of data on p r i c e s of
ikno4lties and manufactures haw been i n i t i a t e d ; import-substituting and export- promoting i d d u s t r i e s a r e i d e n t i f l e d and investment promoti on services provided to Bostfi. a g r e a t e r flow of i n d u s t r i a l financing; -studies on : t h e t r a n s f e r of techno-
$ogy drnd t h e r o l e of trans-national corporations have been conducted; and t h e ' w f o d s of to promote appropriate procedures and instruments f o f - th e integre- :+ion Of M r i c a n i n d u s t r i a l markets a r e continuing. Other f i e l d s of s t u a e s now
-psum+g Kigh p r i o r i t y a r e t h e . c h o i c e of technique (labour versus c a p i t a l
b n t e d i t y ) and choice of s e a r s f o r i n d u s t r i a l devcloyient and export prcdsotion.
' h e Studies have a l s o been i n i t i a t e d t o develop intermediate technologfes:
.
. . . ..
. 14. &A, i n co-operation with 0P;U and UNIM?, is a l s o a s s i s t i y African ~ 0 u n t r i e s&I
8efiniF.g c m o n N r i c a n p o s i t i o n s o r i n t e r n a t i o n a l i n d u s t r i a l co-operation&sues~, i n p a r t i c u l a r those t o be discussed a t the Second General Conference of I D 0 i n ''arch 1975. The Second Conference ~f African &Xnisters of Industry held
CaiP-0 i n December 1973 adopted t h e Declaration on I n d u s t r i a l i z a t i o n i n M r i c a : i n c i p l e s and Guidelines f o r Co-operation and Developnent which, i n t e a l i a , +fines a regional ~ ~ o s i t i o n on i n t e r n a t i o n a l i n d u s t r i a l i z a t i o n issues. The first P e t i n g of t h e Follow-up Committee on I n d u s t r i a l i z a t i o n which was he12 i n Pddis b a b a Ln September 1974 has u p d a t e 3 this common '&ition i n l i g h t of i n t e r n a t i o n a l d e v e b p e n t s which took place s i n c e t h e Cairo Conference and p a r t i c u l a r l y i n l i g h t ff t h e decisions of t h e Special Session of the General Assembly.
fS. Since about 80 p e r c e n t of E f s i c a ' s resources f o p d c v e l o p e n t purposes are
& r i v e & fmm exports, emphasis i n t h e s e c r e t a r t a t a c t i v i t i e s i n i n t e r n a t i o n a l ade is placed on export pranotion and the r e s t r u c t u r i n g of M r i c a ' s t r a d e within
%-
e colptext of a new i n t e r n a t i o n a l d i v i s i o n of labour w i t h a view t o promoting a broad range of products an& ensuring t h a t t r a d e assumes a dynamic r o l e i n i n t e g r a t - h gthe
various Sectors of t h e economy and tramforming them from t r a d i t i o n a l , p r i m a r y producing u n i t s i n t o t h e more dynamic canbination of a m r r i n d u s t r i e s .Titis
i e
e s s e n t i a l f o r most developing countries where t h e t r a d e qap is dccninant.M t h i n t h e context of production i n X r i c a which concentrates on foodstuffs, raw U t e r i a l s and consumer goods, expart is the major means f o r converting dcanestic tasouraes earned i n t o t h e foreign e x c h w e required t o i m w r t t h e c a p i t a l goods nCec'.ed f o r develoment. Recent a c t i v i t i e s have aimed a t identifying new t r d e +rtub.ities i n non-traditional markets, such a s those i n P f r i c a n countries, o t h e r d w e l o ~ i n g countries and t h e s o c i a l i s t countries, while s p e c i a l e t t e n t i o n bLs been paid t o problem of ? Z r i c a ' s primary commodities; t h e generalized system
@ prefierencea; and preparations f o r t h e m u l t i l a t e r a l t r a d e neqotiations and
-
-lared negotiations of M r i c a n countries with t h e European Econanic ColmmuLfty.
> . ..
s.
Stll&Les have been prepared on t h o probl&s oE b n s u l t a t i o n s among countries piOducibg ccmmO~!ities of export i n t e r e s t t o Africa, including proposals f o rolhcertkd a c t i o n which African c o u n t r i e s could. t a k e alone o r i n --operation w i t h +er ~&ducing cbuntries. I n t h a t connexton, tlie 6-etariat has been cloeely
*ociaked w i t h . the preparation o f t h e Action prograamae f o r c c o m i c co-operation
:[
;I E/CN.14/635 Page 6
among non-aligned countrics i n t h e f i e l d s of t r a d e , inciustrg anrl t r a n s p o r t , i n p a r t i c u l a r t h e components r e l a t e d t o producers' associations. Within t h e context of the generalized system of preferences, t h e s e c r e t a r i a t has prepared studi- on its implications f o r n f r i c a n countries and has, j o i n t l y with UtlCpAD, organized seminars on t h e subject. I n respect of i n t e r n a t i o n a l n ~ o t i a t i o n s on trade, t h e
s e c r e t a r i a t is a s s i s t i n g African Cavernments, with t h e h e l p of In7DP, to i d e n t i f y * problems i n these negotiations which may r e q u i r e s p e c i a l a t t e n t i o n and t o search
f o r s o l u t i o n s which w i l l enable N r i c a n countries t o draw maximum benefits. As
part of i t s a c t i v i t i e s t o s t i m u l a t e t r a d e with non-traditional maxkets, a study e
has been completed on t r a d e with South-East Asia, while i n r e s p e c t of i n t r a - African t r a d e a major proqranrme canprisiny t r a d e pr-tioz advisory services, marketing research and t r a i n i r g is underway.
1 17. These a c t i v i t i e s a r e c a r r i e d o u t under t h e guiBance of t h e ECA/OAU j o i n t
i
meetings on t r a d e and dweloplrent, which, tcqerher with meetings of African1 m i n i s t e r s of trade, are t h e p r i n c i p a l bodies f o r t h e harmonization of African p o s i t i o n s i n i n t e r n a t i o n a l t r a d e and t h e main instruments f o r t h e mobilization on a wide f r o n t of all t h e p o l i t i c a l f o r c e African countries can muster i n order t o influence decisions a f f e c t i n g t h e i r t r a d e and development.
18. The programate of work i n n a t u r a l resources i s d i r e c i l y r e l a t e d to t h e
provisions of t h e General Assembly resolutions i n r e s p e c t of exercise of permanent sovereignty w e r n a t u r a l resources. I n this f i e l d t h e s e c r e t a r i a t is carrying o u t an inventory of t h e mineral resources of Africa, t o be m p l e t e d i n 1976. An econoolic study of t h e present s t a t u s and prosaocts f o r t h e development of mineral resources i n West Africa has been completed, an? maps a r e i n preparation. I t is promoting t h e establishment of multinational mineral resources development c e n t r e s and is systematically building up a body of knowledge thnt w i l l enable it b e t t e r t o provide advisory s e r v i c e s t o goverments on t h e econoxic aspects of mineral exploration and exploitar-lon. I t is a l s o carrying o u t s t u d i e s on raw m a t e r i a l s f o r the f e r t i l i z e r industry, a s well as raw materials f o r i r o n and s t e e l industry.
Beginning 1976, the s t u d i e s are expected t o cover bauxite, copper, lead, z i n c and t i n and a l s o raw m a t e r i a l s used a s sources of energy.
19. The r e c e n t Regional Conference on Petroleum I i ~ d u s t q adopted a number of renmnnendations. The most important required ECA with t h e collaboration of OAU
to study the p o s s i b i l i t y of e s t a b l i s h i n q an M r i c a n Docum~ntation Centre, an African Petroleum Organization and an h f r i c a n Petroleum I n s t i t u t e . The programe of work has been r e d r a f t e d to take these r e s o l u t i o n s i n t o account. Work is going on the oompilation of an inventory of energy resources, t r a i n i n g f a c i l i t i e s
and needs, with a view to encouraging the e s t , L l i s h n e n t of standing cornsittees for energy i n a l l t h e economic subregions, t o be respoxwible f o r making recommendations regarding t h e formulation and co-ordination of p o l i c i e s .
20. The implementation of t h e provisions i n t h e General Assfnbly resolutions r e l a t i n g to t r a n s f e r of t e c h n o l q is only p o s r i b l e given a c e r t a i n threshold of s c i e n t i f i c and technical i n f r a s t r u c t u r e i n t h e form of i n s * i t u t i o n s and manpower.
The s e c r e t a r i a t is accordingly a s s i s t i n g member S t a t e s i n ci-eating o r strengthen- ing t h e organs required f o r t h e formulation of government p o l i c i e s and plans f o r t h e promotion and a ~ p l i c a t i o n of science and technology f c r economic and s o c i a l development; c o l l e c t i n g and analysing d a t a on the techno-economic s i t u a t i o n and technological needs and p r i o r i t i e s i n member S t a t e s t o provide t h e b a s i c
t i o n l o r dweLopment planning i n science and t&mlogpi deaig- W s i d ~ ammes, conduct col;rsese and prcmote the establishment of i n s t i t u t i o n s f o r
evelopment of manpower f o r science and techlml~gyt pmmote the eStabli8hIDent i tLtUtions f o r research an8 developent i n different sectors of the African
T
~npmiee, so as t o provide a continuous flow of technology and technical serVicea ction a c t i v i t i e s ; and develop contacts between the science mgineer- n i t i e s i n African countries so as to pmmote joint action and collabora- 3 n i n research and training and i n tackling robl la as of multinational interest
s
+
1 ience and technology..
Eigh p r i o r i t y is given to manpower trainiq. The level of training, education P *hnology i n Africa i s lower than i n other continents. E l l African C O U I I ~ + ~ Wing determined e f f o r t s to expand educational f a c i l i t i e s of the ac&ienis
L is affecting the educational background of new entrants to the labour force.
io unately. t h i s system is encouraging new aspirations and aptitudes creating discontent and social tensions due i n p u t t o the r i s i n g r a t i o of the
m ted youth i n t h e rmmber of persons unpuployed. The role of education is not c e a t e educated unemployed but to r a i s e the productivity levels within the m an8 to expand production and employment. A t present, the role of educa- m,
:!
which is considered a basic r i g h t of citizens, is t o provide pre-career Li ng f o r entry i n t o t \ e modern sector. The r a t e of expansion of secundazyhas been larger than t h a t of primqzy schools and a l l t h i s a t the cost of ler goals such as universal literacy. The r e s u l t i s t h a t many of the childten si e the school system a r e residuals o r ~ d r ~ p - o u t s from an educational process .ch i s bfased towards the production of a minority. Moreover, the standard of
7
W i n t o modern jobs is mostly the academic records and not the acquiring of , i c s k i l l s .
1
medical measures take the form of changing school curricula to incorporate e r a1 which is relevant to future occupations, and/or changes i n the methad s e ecting students f o r higher education, and/or putting greater emphasis upon*+job training and upon part-time extension of s k i l l s and knowkedge through i onal education of the already employed. Children could begin an occupation
e r
4
aving canpleted a more general pre-vocational education, and selection of ee+ f o r children would be based both orl t h e i r desires and upon tho a b i l i t i e s ch lappropriate aptitude t e s t s reveal. Alternatively, the future expansion of elekrant secondary and t e r t i a r y education could be controlled through shiftingcogt of such education t o parents o r future eKninqs of the students.
e s e c r e t a r i a t a c t i v i t i e s i n the f i e l d of transportatiDn have particulaxly sd t assisting African cwuntries inwercoming those handicaps inherited from
a, onial era which have been inhibiting the development of trade and other c contacts between them. Because of f e small s i z e of the markets and poor ns
4
r t a t i o n f a c i l i t i e s i n Africa exeess canacity i n the f i e l d of industry5
J
serious proportions. High p r i o r i t y i s accorded t o the development of trans- highways and feeder roads t o link i%e different p a r t s of Africa. Attentionrecently been given ta the ~st&Lishment of i n s t i t u t i o n a l machinery f o r ation i n respect of port mawgement and f o r the establisllment of joint wpc/rt operatLons such as multinational shipping m p a n i e s . It has further
assistance to African countries durihg the negotiations on major inter- k a n s p o r t Problems, including the code of conduct for l i n e r conferences
thq
proposed system f o r international ccmbined transport a e r a t i o n s (IIT).24. I f the developing African countries a r e to achieve t h e t a r g e t growth r a t e of 6 per cent, oreater e f f o r t s a r e needed i n mobilizing resources an8 channelling then to the desired investment projects. I n the f i r s t place, there is the need f o r large productive public works prcqrLLmrme8 to cope w i t h mounting unemplayment problems. The financing of such proqrames through national budgets requires new po1icYes to mitigate the concomitant inflation* h a c t . Fiscal policies W U 1
also assume greater importance i n the achievement of a b e t t e r incoppe distribution.
The progrurrme of work of ECA i n respect of financial and monetary matters therefore aims a t e~hancixq the capacity of African c&ntries to suppcnt expanded dwdop- ment programmes through (a) the improvement of the budgetary systems and policies w i t h a trim to sendering the budget an e f f i c i e n t t o o l f o r policy and decision- making and i n particular f o r devel-ent planning and plan imple&entationl and
&I) reform and strengthening of African taxation systems, policies and abinlstfaf tion.
25. Studies have also been carried out to a s s i s t African countries i n imprbvim the quantity and the quality of the financial flows t o the region. Studies on the current international monetary situation and its implications f o r African countries a r e prepared and presented to the Association of African Central Banks, as p a r t of the responsibilities devolving upon the ECA s e c r e t a r i a t as s e c r e t a r i a t f o r the Association. Studies have been prepared on the managament of exchange r a t e s i n Africa under conditions' of generalized floating of major kr:d currencies and cm t i e liquidity and financial problems arising from higher o i l costs, while expert meetings and seminars have been organized by the s e c r e t a r i a t to discuss such issues. Assistance is provided to the African Group i n vaxious international bodies considering international financial and monetary issues, such a s IBRD, I*
and mICTw.
26. Econcm:c co-02eration, as a s t r a t e g i c element i n economic doveloment, is given great emphasis i n the a c t i v i t i e s of the secretariat. l n e r e i s no p a r t of the s e c r e t a r i a t i n which the objective of economic co-operation am.? Rftican countries i s not pursued. The main aim of these a c t i v i t i e s is t o apprise African Governments of the options that may be adopted i n the pmmotion of e c o n d c co- operation schemes i n various sectors, including arrangements f o r multinational instituf2ional machinery.
27. The E m population programme is an essential ccmponent of t h e o v e r d l strategy f o r the economic developaent and quality of l i f e i n the region.
Assistance i s provided to African countries, on the basis of respect f o r t h e i r sovereignty and national policies, for the improvement of information eerviees designed t o give due recognition t o the iuterrelationship between population and aconomic and social. development; t o formulate and implement population prcqrame*
and policies consistent with the countries' social and e c o d c development; and i n demographic training and research. Another major component of the ECA1s work progranrme i s the African census progxMrme under which assistance is extended to Goverwents i n improving t h e i r census undertakings and the collection of infoma- t i o n on population size, growth r a t e s , employment, education and other population characteristics.
28. Sixteen out of 25 countries identified by the international comlnity aS hard-core l e a s t developed a r e African, while thirteen O L I ~ of a t o t a l of eighteen laad-locked developing countries can be found i n Africa. Two d e v e l q i r q iS%and
aountries ore members of ECA, and a number of o t h e r s a r e presently engaged on t h e
*Dad t4, independence. The i d e n t i f i c a t i o n of t h e s p e c i a l problems of the
leas+
&?Yelop&, land-locked and developing i s l a n d countries, and the formulation of I measures to overcome the s p e c i f i c Impediments to t h e i r socio-economic d w e l o p m n t
I therefore havea high p r i o r i t y i n t h e ECA progranrme of work.
29. Superimposed upon these s e c t o r a l prograarmes a r e a c t i v i t i e s r e l a t e d to research .Td s t p t i s t i c s , o r , i n other words a c t i v i t i e s aimed a t improving t h e information base on which African countr-ies can take decisions on t h e i r w l l e c t i v e o r
tndivi4ual p o l i c i e s . A major c o n s t r a i n t to meaningful plan formulation, implement8- Won and evaluation i n Africa is the lack of a d e t a i l e d d a t a base. This is
e c e i v b n g cont!.nuous high p r i o r i t y . The tendency f o r an i n t e g r a t e d and u n i f i e d approach t o d w e l o p e n t i s l i k e l y t o emphasize the need f o r f i l l i n g i n gaps
I in the s t a t i s t i c a l base. I t w i l l aLso zequire t h e undertaking ofr nui^;..slcaoao oensuses and surveys t o c o l l e c t t h e r e l a t e d data.
'1
30. ;A'S work programme i n t h e f i e l d of s t a t i s t i c s is extensive. Over and1
.hove t h e development and co-ordination of s t a t i s t i c a l s e r v i c e s i n the M r i c a n region to meet t h e grcwing needs of administration, indastry, policy f0XmUlatioIII
I 8nd planning f a r e c o r m i c and s o c i a l development, t h e r e i s a p r b j e c t on t h e d w e l o p e n t of a region.& s t a t i s t i c a l and eonomic informatioh service. The Secreriariat psepares on an annual b a s i s an analysik and a review of economic
I t r e n d s and developments i n menber S t a t e s and t h e region a s a whole i n the ~ 0 n t a x t I ~f implementisag both i n t e r n a t i o n a l and regional d w e l o - a e n t s t r a t e g i e s . Within
t h a t dramework s t u d i e s a r e a l s o c a r r i e d o u t with a vriew to evaluating p o s s i b l e
I
I ways and means of a s s i s t i n g t h e l e e s t developed, land-locked and i s l a n d African
I
I Countries. As p a r t of t h e s e c r e t a r i a t ' s e f f o r t s to develop a regional data bank, s t u d i e s have Seen prepared i n t e r a l i a on t h e balance of payments of African
~
countries; purchasing power p a r i t i e s of African currencies; public debt; and term 1 of trade; while regular s t a t i s t i c a l publications a r e issued w i t h foreign t r a d estatistics for Lfrica.
III. STREN='TBENING OP m ~ , SECRETARIAT'S ~ I V I T I E S TO ENABLE ECA T3 DISCHARGE EFFECTIVELY ITS ROLE VI!TEIN THE CWPFXT OF TEZ ESTZ5LaISHEIENT Of A NEW INTERNATIONAL ECCRIOMIC ORDER
31. The p r e c d i n g c h ~ p t e r has shown t h e close connexion between the preaent ECA
programme of work and p r i o r i t i e s and a c t i v i t i e s t h a t should be c a r r i e d o u t i n order t o implement the Declaration anrl t h e Programme of Action f o r the Establish- ment of a New I n t e r n a t i o n a l Econwic Order, although it has not been p o s s i b l e to d i s t i n g u i s h sepatate'y a l l s e c r e t a r i a t resources t h a t presently a r e employed exclusively on a c t i v i t i e q r e l a t e d to the General Assembly resolutions.
32. Bowever, the e x i s t i n g a c t i v i d e s do not seem adequate t o d e a l w i t h t h e f u l l scope of t h e p n w i s i o x of t h s e resolutions t h a t may be of s t r a t e g i c importance from t h e p o i n t oE view of African development. I n p a r t i c u l a r , t h e a n a l y s i s i n d i c a t e s t h a t che various a c t i v i t i e s , p r o j e c t s and programmes a r e tackled i n a fragmented, non-integrated manner. Perception o f , and focus on, t h e StXategic i s s u e s r a i s e d by t h e - i x t ; ~ s p e c i a l s e s s i o n of t h e General Assembly would be s i g n i f i c a n t l y enhanced i f t h e a c t i v i t i e s of t h e ECA s e c r e t a r i a t eould be
concentrated on s 2 e c i f i c problems and problem a r e a s i n a m-ordinated-way. Also, s i n c e t h e s e c r e t a r i a t does n o t camnand s u f f i c i e n t resources t o d e a l w i t h the
s u b j e c t s covered by i h e 'two resolutions a b a s i c question is how to i d e n t i f y t h e :.
critical p o i n t s of .leverage on which the.'emphdsis might be p l a c e d i n a r e a d j u s t m e n t of .the.,lX+, progr-e Of T r k i n ord& tj x m p l y with thd resolutiong. Thia i s n o t eaky s i n c e t h e whole work is of high piicirity.
.
. 33. Raw materials anddevelopment was t h e c e n t r a l theme of t h e s i x t h s p e c i a l Session. A n important element i n the readjustment of t h e work and a c t i v i t i e s ofECA a r e s t r u c t u r i n g of world production and trade. should therefore be on how t o achieve a r e d i s t r i b u t i o n of world income through The main emphasis might t h e r e f o r e
.
be aimed a t securing improved and l a s t i n g b e n e f i t s f o r African development froin t h e exploration, exploitation, processing and marketing and d i s t r i b u t i o n of the raw m a t e r i a l s of African countries. That w i l l involve a c t i v i t i e s i n such d i f f e r e n t sectqrp 9s natural resources and a g r i c u l t u r e , i n d u s t r i a l i z a t i o n , t r a n s p o r t , i n t e r - nationai t r a d e and finance and research and s t a t i s t i c s .
34. One o b j e c t i v e must be t o co-ordinate and stimulate research on technical and econcaDic aspects of production, including f o r a g r i c u l t u r a l raw materials research on diseases a f f e c t i n g production, reseaxch on dwelopment of d i s e a s e - r e s i s t a n t and high-yielding v a r i e t i e s ; f a c i l i t a t e t h e exchange of information on programoea and p o l i c i e s , and on any o t h e r aspects r e l a t i n g to praduction; to develop
programow f o r increasing ccnsllmption i n t r a d i t i o n a l and new markets, including pmgrsmaes.among prcducers f o r w-operation i n promotional a c t i v i t i e s ; t o suggest
a c t i o n . f o r the removal of o b s t a c l e s to trade; t o co-ordinate standards of q u a l i t y s o as to f a c i l i t a t e i n t e r n a t i o n a l marketing; to keep under constant review develop- ments r e l a t i n g to supply, demand and p r i c e s ; and t o c a r r y o u t investigati- i n t o
+c) causes and consequences of f l u c t u a t i o n s i n p r i c e s of the raw material, inclwd- ing techniques of production and consumption forecasting.
35. Within t h e United Nations system, t h e regional eco&c colmnissions,
inter
a l i a , a r e , by t h e i r very nature, appropriate organs to come to g r i p s w i t h the
-
work involved i n t h e establishment of a New I n t e r n a t i o n a l Economic Order. On t h e b a s i s Of t h e p o l i t i c a l guidelines which were l a i d down a t t h e Fourth Non-Aligned Conference i n Algiers i n September 1973 and reaffirmed by t h o Chairman of t h a t Conference, President Boumedienne, a t t h e s i x t h s p e c i a l Session, t h e s e ~ r e t a r i a t s of t h e regional economic commissions of Africa, Asia, Latin America and West M i a , where appropriate, should together i d e n t i f y , study and formulate recommendations f o r a c t i o n Ln ~ e s p e c t of a l i m i t e d number of commodities of s t r a t e g i c importance tq t h e t h i r d w o r l d a s a whole i n i t s r e l a t l o n s with t h e i n d u s t r i a l i z e d world. I n particu3.ar. they should d i s c e r n i n t h e new s i t u a t i o n t h e o p p o r t u n i t i e s f o r aconcrete, fqnctional s o l i d a r i t y among t h e countries of t h e t h i r d world, within the framework of t h e movement generated a t the Algiers Conference.
36. I n essence, t h e p o l i t i c a l guidelines l a i d down by President Boumedienne may be reduced to two major p r i n c i p l e s :
(i) The developing countries should take t h e i r own n a t u r a l resources i n
.
hand and e x p l o i t them f o r t h e b e n e f i t of their own people;( i f ) A c o n s i s t e n t and i n t e g r a t e d d w e l o p e n t e f f o r t should b e made, including s t e p s t o develop a g r i c u l t u r e to i t s g r e a t e s t p o t e n t i a l , t o praaote
.
i n d u s t r i a l i z a t i o n based on l o c a l processing of mineral and a g r i c u l t u r a l resouxces.
the f m C r ~ r k c'C these guidelines the f o l l o w i ~ p m b l a areas appear out a s of particular importance i n the develgment of the t h i r d world in
Pfrican countries i n p a r t i c u l u :
'(i) The production and marketing conditions f o r the main agricultural
1
exports of developing countlries. The price structure of these p+odoctSI and t h a t of the prices of the main c a p i t a l and consumer g& imp- fmm developed countries by developing countries;
(ii) The conditions under which the leading mineral prodncta of the developing countries a r e exploited and marketed. The transfer of c a p i t a l aria of technolqy i n con~exf-cn with these operations;
( Y i i ) The relations between the currencies and adjustment policies of
I dwelopfng countries and those of dweloped countries, and t h e i r impact on the growth and developent of the t h i r d world and the developed countries. The p o s s i b i l i t i e s of establishing multi- national monetary i n s t i t u t i o n s of developing countries eupl?ortsd by third world monetary iunds;
(iv) The establishment of regional o r i.nterregional development bankt8 supported by the present payments surpluses of sane developing countries;
&) Establishment and s ~ p p r t of associations of producers of raw mterhb:
t h e i r c o n p s i t i o n , objectives and modus o p e r e . Definition Qf
thek
objectives i n the 13ght of the establishment of a New I n t e r n a t i O ~ l Econmdc Order. The relations between the varioas associations w i t h a view to creating a unified f r o n t enong the main producers of
agricultural and miaera: materials;
(vi) m e possibill"j..as of technical and s c i e n t i f i c co-operation among the countries of the t h i r d rrorld. The brain drain from the developing to the developed countrfes;
&if) The monopoly of the developed countries i n such v i t a l f i e l d s a s the chenical industry, f e r t i l f i e ~ s am¶ pharmaceutical products, inter- continental transport and insurance. Establishment afid d w e l o p ~ M t of such industries i n developing countries.
38. The studies t o be carried out i n respecc of these problens must proceed on a veay broad front. Since they a r e obviously closely interrelated, i n the
l i c y changes affectillg any of them w i l l necessarily have kportant for the others, e f f o r t s should be made t o consider thsm
i n
a frameimrk. Indeed, i n order to ensure t h a t meaningful progress 11 ba made tawards the inplementation of the wide range of policy measures setthe ProgrJmme of Action for the Establishment of a Mew International
C Order, there w i l l k v e t o be a co-crdinated s e t of a c t i v i t i e s
i n
a l l ered by the progranme. kbvenents i n d i f f e r e n t sectors should be not,
but also nutually supporting.39. The above indicates -fly the areas i n which the onfted Natinns
econcmric commissions might concentrate t h e i r a c t i d t i e s to a s s i s t +he Gwerpae&
.- .-
of developing countries i n the dialogue t h a t they w i l l h8W t o prtrsue w i t h t h e industrialized world i n order to restructure the existing i n t e z ~ t i o M 1 econOBic order. I n t h i s t a s k , it is essential t h a t the commissions jointly prepare and carry out certain parts of the programme which a r e of a global level. The FEA secretariat, w i t h its own regular resources and resources obtained ftom extra- budgetary b i l a t e r a l and multilateral sources, w i l l undertake a p a r t of the programme identified as being of p a r t i c u l a r i n t e r e s t to Africa.
40. On the basis of the above analysis the Executive Secretary of ECA has d e c i d e to undertake three comiodity studies to a s s i s t African Governments to f0mUlate policies f o r the New International Economic Order and African delegations a t the General Assembly to make specific proposals f o r the United Nations system to assist i n the establishment of t h a t order. The three commodities chosen a r e iron ore, O i l
palm producta and phosphates and potash within the broader context of f e r t i l i z e I n . These ccamodities a r e significant to Africa o r to specific African countries and i l l u s t r a t e the international economic problems African countries face. They do not duplicate existing work so f a r a s has been d e t e d n e d , o r t h a t of the
specialized rommodity organizations.
41. Each study w i l l analyse the present order a t various levels of production, pmcessing, marketing and the African consimption of the amnuodities, and consider national and international constraints on the maximization of revenues by producw countries. I n each case the value added and p r o f i t s taken a t each level w i l l be set forth. I n order to focus attention on the econartic situation thus presented, examples of specific inequities w i l l be included. Where applicable, re-
negotiations w i l l be examined to determine the extent t o which the old e w d c order has been changed. The studies w i l l i n particular consider the fol.lowing elements :
(i) Production: including exploration/exploitation/uti1ization; conserva- tion and environmental protection; mmpilation and analysis of
inventories;
(ii) Problems and policies: including analysis of trends; studies of pricing policy and access to markets; rompetition of syntnetics and 8Ub8ti01teS;
the relationship between export prices and import prices; buffer stocko;
(iF1) Processing: including the identification of resource-based i n d u s d e e on a national o r multinational basis; imrestmentpnnnotion;
(iv) Interregional, regional and subregional co-operationn: including producers' associations; research;
(v) Transmrt: including ccmbined transport syst.ems; ocean transport; joint transport operations;
(vi) h a n s f e r of t e c h n o l q : including effectiveness and cost of transfer of technology; sources of supply of technology; ~ p e r a t i v e arrange- ments on a subregional, regional o r interregional basis; alternative technologies;
q -.
&ti) hansnatkonal corporations: including analysis of actions related t o , . ,:,II
, ~ r o d u c t i o n , employment and exportation; transfer pricing policies; their
, , ,
,.$ .
-
consistency with national and rPgional developnent objectives;
b @ i ) Financine: including projections on external capital teqIii~€SiMU Md growth rates; diversification, processing, new investment; m-operqtive
,
arrangements on a subregional, regional o r interregional' basis; possible arrangements f o r making surplus funds now a t the disposal of some develop- ing countries available i n the fona of long-term loans or 'Iparticipating"capital; support f o r producers' associations.
In
42. To support the above a c t i v i t i e s more information need to be assembled and than has been the case so far. There a r e presently serious gaps i n avail-
and much of it is issued only a f t e r a considerable time lag.
I n
$parti~cular, there is a need f o r the strengthening of data collection and cappila-
, -
tion pf primary s t a t i s t i c s relating t o agriculture, mining, manufacturing, trade larid wansport and f o r derived s t a t i s t i c s such as national accounts, financialprices and balance of payments, unemployment and mass pwerty an8 distribution. Greater attention w i l l also need to be given t o the
of analysis relevant f o r dealing with short-term situations and f o r
i long-term trends inclutilng projections of +sade gap and feasible growth The events of the l a s t year have dramatically demonstrated the need f o r f rq a capacity to examine the implications f o r African countries of changes
the world economic situation.
@tar thus examining the past and the present, the papers w i l l make specific t e and long-term proposals f o r the New International Economic Order which
Goverments may wish t o adopt domestically and proposals f o r co-operation d u c e ~ s and by w u n t r i e s on a subregionaL and regional basis. Proposals
be made f o r international co-operation and methods by which the United t m could be strengthened o r new action taken to a s s i s t African
and those of other developing countries i n the e~tablishment of the tional Economic Order. This approach w i l l p m i d e a comprehensive and treatment of the problems of developing countries, aiming ata
Cing the r i g h t to decide from a l i e n hands; (b)
-,
build-up of knarledge of sted and what could be done with it: and (c) familiarity with international et processes and procedures.14.
While ECA, w i t h its deep overall insight i n the problems of PSrican countries ih~
i n b particularly advantageous position to deal with the issues raised by the r&darbtion and the Programmes of Action on the Zstablishnent of a New Inter-
5
tiankl Econaafc Order, f u l l account w i l l of course be taken of .work already done, 4 beipg done, i n other bodies such as FA6. UNIDO, UNCTAD, IMF, IBP9 etc., a l l of ( l h c h Lave t o be closely consulted.IV. RESOURCE IMPLICATIWS I
e strengthening of ECA's a c t i v i t i e s i n the ways suggested above f o r the of discharging effectively its responsibilities i n relation to the "urgent
of the Programme of Action on the Establishment of a New Inter-
i
Order adopted by the General Assembly i n its resolution
f ':
32C2 (S-VX)
"
could be achieved partly by redeployment of. s t a f f w i ?hi n ECA and partly by improved collaboration w i t h other bodies within the United Nattons 8ystem as indicated m e .46. There w i l l still be a need, however, f o r additional resources, the ful2. axtent
of which w i l l be determined largely by the decisions of the t h i r d meeting of the ECA Oonference of Ministers with tegard to *e hplernentation of the General Assambly resolution. BCOSOC, i n its resolution 1896(LVII) therefore wged "the Secretary- General of the Udted ~ a t t o k , and as appropriate, the Administrator of the U n i t e d
Nations Developnent Programme to take the necessary measures to enable the regforal
7
econcdc d s s i o n s to carry out the mandate given to them".
! . . . . .
, , Pp=duction o f camnodities'of i n t e i e s t ' to f rican countries, 1971
. . ./ ..
. . .
t 8
' i I . . . . . . . . . Percentag.e share
t.
I i: CcqnoBiues 1,000 Independent
i /
metrj 2 tons developing 0th- d e v e h i n g.
~ R World Africa market e c o d e t .
I
-
4 -5,179 o i l s and fat%
i G x X b m ~ t S 18,224
:j ~ n d n u t o i l
! pa@ kcjnels
, .
: : Pa@-kernel o i l -i
, , p+oi1 i, Oltve o i l
,.~
Annex table: W u c t i o n of tomnodities of i n t e r e s t t o @%can countriee,l97l(cont'd) Percentage share
1,OOO Independent
Commodities metric tons developing Other developiog
World Africa market ecmcdes
other c o m o d i t i e s : Agricultural
Hood and timber Metals
-
1. Alimunium 2. Bauxite 3. Anrimony o r e 4. B a r i u m
5. Chrome o r e 6. Cobalt 7. Copper 8, Fluatspar 9. Gola
s/
10. Pig i r o n and f e r n a l l o y s 11. Lead o r e
12. Nickel o r e 13. S i l v e r =/
14. Tin o r e
15. Tantalwn and l P i o b i u m 16. Titanium minerals 17. Tugsten o r e
18. Vermiculite 19. aery1 Nbn-metals
1. Asbestos 3,600 3.2 1.2
2. Diamonds f/ p/ 33,060 61.9 1.7
3. Graphite 695 2.9 62.3
4. -sum 52.060 1.3 5.8
5. S a l t 142,000 1.0 14.1
6. P y r i t e s 22,100 2.1 7.5
7. Petroleum (crude) 2,326,OW 11.6 46.1
Sources: FRO Production Yearbook
-
1972; United Nations S t a t i a t i o a l Yeaxbook-
1972; United
-
Kingdom I n s t i t u t e of Geological SoienCes; S t a t i s t i c a l Smmary of the n i n e r a l Industry; world production, exports and imports-
1967-1971; Bard f i b r e s , A q u a r t e r l y Review, No.1, 1973.finnex Table Page 3
W 1 q : p r o d u ~ . a r r of cocnaodihies of i n t e r e s t to fif r i c a n countries, 1971 (cont'd) r
ch
loo
metzic tons.-
e/ I n kilogranrmes
-
f o r gold, excludes f i g u r e s f o r USSR.-
i
f/ I n metric c a r a t s .I
g
!
I n c l u d i ~ g an estimate f o r diamonds produced i n B r a z i l b u t excludZng )6-r1& prodc%d i n tho USSR, Liberia and I&nesia.1
M
Zinc-
The data r e l a t e t o the zinc (Zn) content of zinc o r e s (including k n e r a ores) mined.!
Iron o r e-
Figure referfi'so the iron content of marketable ores m i n d ,& ~ ~ l u d i n g mangani£elrous i r o n ores b u t excluding p y r i t e s .
1 Mangaiiese o r e
-
Figures r e l a t e to t h e manganese (Fa) content ofh a w s e ores mined. F e r r i g i m u s manganese o r e s a r e included; maqdf-s iron a t e excluded.
Phosphates