NORTH-SOUTH DIALOGUE
NORTH-SOUTH DIALOGUE
In 1964, in Geneva, the first session of the United Nations Conference on
Trade and Development (UNCTAD) was held, leading to what is now called
the North-South dialogue. (The North refers to the industrialized countries
and the South to the developing countries.)
None of the pronouncements emanating from the session was particu-
larly new, but the collective resolve of the developing countries (i.e., the
South) appeared to be stronger than ever.
Since 1974 various meetings focusing on specific problems have been
held in order to continue the North-South dialogue. In particular, the devel-
oping countries have expressed concern in the following areas: stabilization
of export earnings and commodity prices, reduction of trade barriers in the
developed countries, increased aid, debt moratorium, and additional private
investment. Their basic concern is how to transfer wealth from the developed
to the developing countries. Even though each side has moderated its posi-
tion, a wide discrepancy remains between what the developing countries
want and what the developed countries are willing to give.
UNCTAD V, held in Manila, in 1979, may have started a new era of
cooperation and understanding in the dialogue. The four main areas of em-
phasis in the conference were: (1) trade and financial-flow aspects of the
relationships between developed and developing countries, (2) emphasis on
growing interdependence among different parts of the world economy, (3)
efforts to bring socialist countries into the dialogue on economic issues, and
(4) emphasis on trade liberalization and concern about expanding protec-
tionism.26 Unlike the conflict-ridden earlier sessions of UNCTAD, the mood
seemed to be one of cooperation.
The UNCTAD VI meeting, held in Yugoslavia, in 1983, focused on the
problems of debt and protectionism. At that meeting, the developing coun-
tries identified the following points as the key focus for the discussions:
1. automatic debt relief,
2. an increase in world liquidity through the IMF,
3. greater aid and private bank lending to developing nations,
4. freer access for developing country exports to the markets of the rich.27
The meeting was not as fruitful as the developing countries had hoped,
however. The,industrialized countries acknowledged that protectionism hurts
the developing countries and agreed to open access to their markets more as
the recovery took hold. But they also encouraged the richer developing coun-
tries to do the same for their poorer neighbors. This suggestion met with some
resistance from the developing countries, which felt that they needed barriers
to support their own infant industries. The industrial countries also opposed
discussions of increasing liquidity because they viewed the World Bank and
the International Monetary Fund (IMF) as better suited to deal with those
issues. UNCTAD originally was organized to deal with commodity issues,
whereas the World Bank and IMF were geared toward financial issues.
In addition, the industrial countries have greater control over the World Bank
and the IMF than they do over UNCTAD. The industrial North in effect seemed
to say that the developing South would see a lot of its problems disappear as
the impact of the recovery "trickled down" to the developing countries.
UNCTAD VII, held in Geneva, in 1987, decided to focus more on pro-
moting development, growth, and international trade. Three objectives in
particular were established by the managing director of UNCTAD: (1) to es-
tablish in each country growth-oriented structural adjustment programs, (2)
to acquire financing appropriate to the situation of overindebtedness, and (3)
to put into place a universal, growth-oriented adjustment effort.28 A major
accomplishment at the meeting was a final agreement on the establishment
of a common fund for commodities. The fund will be used to help develop
new markets for commodities produced by commodity-dependent countries
and to help the countries diversify. This is significantly different from what
was originally envisioned in 1977.
Most recently, UNCTAD has called for a significant reduction in the debt
of the 15 biggest debtors. UNCTAD recommends that the banks write off one
third of the debt of those 15 debtor nations. That suggestion is favored by the
debtor nations, but is not very popular with the banks.29
In 1964, in Geneva, the first session of the United Nations Conference on
Trade and Development (UNCTAD) was held, leading to what is now called
the North-South dialogue. (The North refers to the industrialized countries
and the South to the developing countries.)
None of the pronouncements emanating from the session was particu-
larly new, but the collective resolve of the developing countries (i.e., the
South) appeared to be stronger than ever.
Since 1974 various meetings focusing on specific problems have been
held in order to continue the North-South dialogue. In particular, the devel-
oping countries have expressed concern in the following areas: stabilization
of export earnings and commodity prices, reduction of trade barriers in the
developed countries, increased aid, debt moratorium, and additional private
investment. Their basic concern is how to transfer wealth from the developed
to the developing countries. Even though each side has moderated its posi-
tion, a wide discrepancy remains between what the developing countries
want and what the developed countries are willing to give.
UNCTAD V, held in Manila, in 1979, may have started a new era of
cooperation and understanding in the dialogue. The four main areas of em-
phasis in the conference were: (1) trade and financial-flow aspects of the
relationships between developed and developing countries, (2) emphasis on
growing interdependence among different parts of the world economy, (3)
efforts to bring socialist countries into the dialogue on economic issues, and
(4) emphasis on trade liberalization and concern about expanding protec-
tionism.26 Unlike the conflict-ridden earlier sessions of UNCTAD, the mood
seemed to be one of cooperation.
The UNCTAD VI meeting, held in Yugoslavia, in 1983, focused on the
problems of debt and protectionism. At that meeting, the developing coun-
tries identified the following points as the key focus for the discussions:
1. automatic debt relief,
2. an increase in world liquidity through the IMF,
3. greater aid and private bank lending to developing nations,
4. freer access for developing country exports to the markets of the rich.27
The meeting was not as fruitful as the developing countries had hoped,
however. The,industrialized countries acknowledged that protectionism hurts
the developing countries and agreed to open access to their markets more as
the recovery took hold. But they also encouraged the richer developing coun-
tries to do the same for their poorer neighbors. This suggestion met with some
resistance from the developing countries, which felt that they needed barriers
to support their own infant industries. The industrial countries also opposed
discussions of increasing liquidity because they viewed the World Bank and
the International Monetary Fund (IMF) as better suited to deal with those
issues. UNCTAD originally was organized to deal with commodity issues,
whereas the World Bank and IMF were geared toward financial issues.
In addition, the industrial countries have greater control over the World Bank
and the IMF than they do over UNCTAD. The industrial North in effect seemed
to say that the developing South would see a lot of its problems disappear as
the impact of the recovery "trickled down" to the developing countries.
UNCTAD VII, held in Geneva, in 1987, decided to focus more on pro-
moting development, growth, and international trade. Three objectives in
particular were established by the managing director of UNCTAD: (1) to es-
tablish in each country growth-oriented structural adjustment programs, (2)
to acquire financing appropriate to the situation of overindebtedness, and (3)
to put into place a universal, growth-oriented adjustment effort.28 A major
accomplishment at the meeting was a final agreement on the establishment
of a common fund for commodities. The fund will be used to help develop
new markets for commodities produced by commodity-dependent countries
and to help the countries diversify. This is significantly different from what
was originally envisioned in 1977.
Most recently, UNCTAD has called for a significant reduction in the debt
of the 15 biggest debtors. UNCTAD recommends that the banks write off one
third of the debt of those 15 debtor nations. That suggestion is favored by the
debtor nations, but is not very popular with the banks.29
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