UNUnited Nations Economic Commission for Europe

Press Releases 1997

[Index]

DECLARATION ON REFORM, PROGRAMME OF ACTION ADOPTED AT 50TH SESSION OF ECONOMIC COMMISSION FOR EUROPE

22 April 1997

A declaration on strengthening cooperation and a programme of action incorporating reforms were approved today by member States of the Economic Commission for Europe during the Commission's 50th anniversary session.

The declaration notes in part that "it is essential to foster forms of cooperation that promote economic prosperity for all member countries and respond to the needs of an increasingly interdependent world economy". It vows to keep the Commission -- or ECE -- relevant and flexible as the next century begins.

Reforms detailed in the Plan of Action include a reduction in programmes of some 60 per cent, and a cut in Principal Subsidiary Bodies of the Commission from fourteen to seven. The resources thus liberated are to be dedicated to core areas of work considered to be the ECE's strengths: environment, transport, statistics, trade, industry and enterprise development, economic analysis, timber, and human settlements.

Also included in the plan is a "consultative mechanism" under which some activities may be discontinued and new ones introduced. In addition there is a structure "for organizing activities to meet specific requests from sub-groups of member countries, in particular countries in transition and the Mediterranean countries of the ECE".

The overall aims of the reform package are described as focus, flexibility, and efficiency.

The Commission also heard this morning from a long list of speakers representing member countries as it concluded its general debate for the year.

Delivering addresses were representatives of Lithuania, the United States, Tajikistan, Cyprus, France, Romania, Ukraine, Turkey, Kazakstan, Slovenia, European Union, European Free Trade Union, Slovakia, Albania, Belarus, Georgia, Canada, The former Yugoslav Republic of Macedonia, Republic of Moldova, Poland, Holy See, and Central European Initiative.

The Commission will reconvene at 3 p.m. to hold a round-table discussion on the topic of "The ECE: forging partnerships between Governments, enterprises, and NGOs".

Statements

VINCAS KESTUTIS BABILIUS, Minister of the Economy of Lithuania, said Lithuania was well-embarked on a rapid reform process towards a market economy; introduction of economic reforms had been complicated and difficult, and economic recession had been one unavoidable result; however, strict fiscal and monetary policies had brought inflation down recently, and foreign capital investment in the country was increasing. Problems in some areas still had to be further addressed, and Lithuania hoped for and would appreciate the contribution of the ECE in helping to solve these problems; abatement of air and water pollution, and industrial and household waste management were some areas of concern.

LESLIE E. GERSON, Chargé d'Affaires of the Mission of the United States to the United Nations Office at Geneva, said the reform exercise launched by the ECE had been ambitious, but because of spirited cooperation what had emerged was a process notable for its commitment to achieving results. The package might not give every nation everything it wanted, but certainly it addressed the high-priority needs of member States. In that sense, the ECE reflected the UN's unique potential for finding realistic solutions through open and honest dialogue despite often strongly held differences of opinion and focus. The reform package would give members and the secretariat a new and effective tool for responding quickly and efficiently to the changing needs of members.

E.R. RAKHMATULLAEV, First Deputy Minister for Foreign Affairs of Tajikistan, said that without the ECE there hardly would have been proper prospects for equitable pan-European cooperation. After the Cold War the Commission had played an essential role in helping countries in transition to market economies. Not all products of the work of the Commission had reached all countries of the ECE; Tajikistan was not fully familiar with all ECE publications and projects; the country hoped for greater engagement with the ECE and greater participation in its activities in future; to date, it had benefitted from ECE standard-setting programmes and from ECE efforts to attract foreign investment to the country.

ALECOS SHAMBOS, Permanent Secretary of the Republic of Cyprus, said Cyprus supported the Commission's stand towards the Mediterranean region, as outlined in its "Mediterranean mandate"; the objective was to see a prosperous and peaceful Mediterranean region working in unison for economic integration and social development. Standing along with other activities such as the Euro-Mediterranean partnership, the ECE mandate had the potential to contribute to peace in this sensitive area of the world. Cyprus was ready to share its experience and expertise in various areas, because, in spite of the consequences of foreign aggression and continuing occupation, it had emerged as a successful case study in development.

DANIEL BERNARD, Permanent Representative of France to the United Nations Office at Geneva, said France expressed congratulations to the ECE on its 50 years of useful service to Europe, and on its flexibility and dynamism in adapting to the circumstances of the coming century. Increased competition between international organizations vying to stake out territory for the future work in Europe had led to a need for efficiency and rapprochement between them, and the ECE's reform package met those needs. It was important for the ECE to continue its work of promoting economic cooperation between the countries of the region and of fostering the development of market economies.

L. COMANESCU, Secretary of State, Ministry of Foreign Affairs of Romania, said the ECE had occupied a unique place in Europe for years because of its pan-European character; its future challenge was to help countries of the region to achieve a coherent and progressive form of cooperation. New momentum and greater vigour was needed for its activities to meet the obstacles posed by the coming century; for the first time there was a possibility of shaping together the objectives and policies of the region, based on the establishment of democratic systems and market economies throughout Europe.

V. D. KHANDOGII, Deputy Minister for Foreign Affairs of Ukraine, said the ECE had taken effective steps to place itself in the new context of Europe, which featured establishment of market economies throughout the region. It needed to focus not only on pan-European cooperation, but on transatlantic cooperation. The process of deciding on reforms had not been painless or easy, and as with most compromises the results did not satisfy everyone or solve all problems. Of vital importance to the Ukraine was continued help and advice from the ECE on economic transition, and it was to be hoped the basic principles of the reform package would in fact be implemented, and that the needs of all countries in Europe would be taken into account.

TUGAY ULUCEVIK, Ambassador and Permanent Representative of Turkey to the United Nations Office at Geneva, said it would not be correct to assert that all of the 55 countries of the ECE enjoyed the same level of prosperity and development. Moreover, their cultural identities, languages, and beliefs differed. It was vital to see such diversity as a richness, and one of the biggest challenges facing the ECE was to convert this diversity into dynamism and comparative advantages for growth, development, and prosperity for all. One of the sub-regional groupings which collaborated with the ECE was the Black Sea Economic Cooperation group, and as initiator and current chairman of this organization, Turkey hoped for an enhanced interaction between it and the ECE.

BOLAT D. UTEMURATOV, Permanent Representative of Kazakstan to the United Nations Office at Geneva, said the ECE, in enacting its reform package, had ensured that it would remain a unique forum for addressing the economic affairs of European countries on a footing of equality. The goals of focus, flexibility, and efficiency were well-chosen, and it was a wise decision to set up a mechanism under which some activities could be given up to allocate greater resources and attention to others, which represented the ECE's strengths. Issues of assistance to transition countries, and the development of small- and medium-sized businesses, were vital, as was cooperation with other pan-European organizations.

MARJAN SENJUR, Minister for Economic Relations and Development of Slovenia, said what was missing from the Plan of Action, which had a number of useful elements, was the subject of economic development. With the enormous changes taking place in central and southern Europe, gaps were growing between those regions and the developed economies of western Europe. There were some countries in Europe with per capital incomes below US$2,000, while in western Europe such incomes were around US$20,000. Such wide disparities, if left unaddressed, could affect cohesion in Europe. Hence, matters of economic development needed greater attention, and perhaps the ECE was the best-placed organization to deal with the issue.

VASCO RAMOS, Deputy Director for External Relations of the European Commission, said the evolution of the transition process, which was a major preoccupation of the ECE session, was, inevitably, uneven. Nevertheless, there were signs of consolidation of progress already achieved in many parts of the ECE region. In the European Union, economic activity had accelerated during 1996, and against this positive background, convergence was expected to improve. The EC had continued its large-scale political, economic, and technical support for European countries in transition; and in southeast Europe, it had adopted a regional approach to developing bilateral relations with countries not yet having association agreements with the EC: Albania, Bosnia and Herzegovina, Croatia, The former Yugoslav Republic of Macedonia, and the Federal Republic of Yugoslavia (Serbia and Montenegro).

K. JOHANNSSON, Secretary-General of the European Free Trade Association, said the EFTA and ECE had basic objectives in common, but pursued them by different means; they were not in competition and there was no overlap between their activities. EFTA had expanded from liberalization of trade in industrial goods among its own members to linking its market with that of the EEC, to reaching agreement on full integration of the EFTA countries into the internal market of the EU. The phrase about "networks in the context of European integration" had been used several times yesterday, but it was important that such networks be connected. Establishment of parallel networks of EFTA and the EC with the CEEC's had revealed technical problems of compatibility with regard to product origin, for example -- a problem that had been resolved as of this year.

J. FOLTIN, State Secretary of the Ministry of the Economy of Slovakia, said Slovakia had a great desire to cooperate with the ECE in the ECE's stated core areas. Those included such matters as the environment and transport; Slovakia highly valued the work of the Inland Transport Committee, for example. It also praised the supplementary allocation of resources for ECE advisory services, especially as they facilitated trade and the UN/EDIFACT system. Energy and industry also were areas of interest to the country, for which it looked to the ECE for expertise. The reform process undertaken by the ECE boded well for the Organization's future activities.

PAVLI ZERI, Secretary of State of the Ministry of Foreign Affairs of Albania, said the Plan of Action transparently negotiated within the ECE met the overall needs of member States; the situation in Albania indicated how delicate transition to a market economy could be. The situation remained serious in the country; order still had to be restored in some areas of the country. The Government of national reconciliation was doing its best to resolve the difficulties faced by the country, but needed as well continued support from the international community; that support, added to the longing of the Albanian people for peace and stability had already begun to achieve results. But political will and international support were not enough in themselves; substantive economic development also was vital; future international aid in the area was sought and appealed for by Albania.

V.N. SHOMOV, Minister of Economy of Belarus, said the ECE had worked in complex conditions during the Cold War and had continued to work effectively as times changed; it had undoubtedly contributed to the prosperity of Europe; it was unique as it provided a forum to European States on an equal basis. The new Plan of Action was well-conceived and took effective advantage of the ECE's strengths and of the needs of its member States. Continued assistance to transition countries was welcomed, although further enhancement of this aid would be useful, such as further involvement of business circles in the Commission's work. Development of medium- and small enterprises was another area of priority concern for transition countries. Eleven years after the Chernobyl accident, a major tragedy for Belarus, environmental matters also remained a primary concern of the country, as did ECE development of macro statistics.

MIKHEIL UKLEBA, First Deputy Minister of the Ministry of Foreign Affairs of Georgia, said that after the collapse of the former Socialist camp and the end of confrontation, it had seemed that a new era of universal revival and development was coming, but that goal had proved more elusive than expected; would the world community be able to achieve the objectives of the transition period? In fact, the problems of transition countries should be among the primary concerns of the ECE. It also should initiate discussion of the issues involved in bringing the transition countries into the world economic system. Transport problems deserved greater emphasis, as did provision of advice on regional matters. Coordination between the ECE and other agencies should be improved as well.

John WEEKES, Permanent Representative of Canada to the United Nations Office at Geneva, said that given the experience of other regional commissions with respect to biennialization, and given the secretariat's frank assessment of the resources involved, biennialization appeared to be a pragmatic and useful move which would free the secretariat to attend further to the needs of member States. Similar attention should be given to shifting of the timing of the meeting. Canada had in the past expressed serious concern about the utility of the economic-analysis function of the Commission, and the Plan of Action represented a considerable shift; Canada looked forward to assessing the revised format of the Economic Survey of Europe over the coming year, and hoped the annual seminar of the Commission on the subject would remain an informal mechanism and would not "creep" back as a meeting of senior economic advisers.

L. FRCKOSKI, Minister for Foreign Affairs of The former Yugoslav Republic of Macedonia, said the Republic was firmly committed to building an economy based on entrepreneurship and market principles, and creation of an open market economy was the basis of its economic reforms. The process of privatization was expected to be completed by the end of the year; and foreign trade was expected to increase. Macroeconomic stability had been evident, particularly in the monetary sphere. The role of the ECE in the South East European Cooperation Initiative was of great significance and was a good indicator of its flexibility and ability to meet the needs of that region.

ION CAPATINA, Deputy Minister for Foreign Affairs of the Republic of Moldova, said the ECE had a history of active participation in the economic recovery of European nations; for a lengthy period it had been a mediator between two antagonistic economic and political systems; then it had been the first UN agency to support the reforms undertaken by transition countries. Those countries now faced problems on the scale faced by western European countries at the end of the Second World War; the ECE's focus on these weaker countries and their many and varied needs was welcome and deserved continued emphasis. The Republic of Moldova had begun wide-ranging reforms five years ago, and continued to count on the support of the ECE in pursuing its economic transition.

LUDWIK DEMBINSKI, Permanent Representative of Poland to the United Nations Office at Geneva, said the challenges Poland faced in such matters as environment and transport -- important domains of the ECE's work -- often went far beyond its technological and financial capabilities, and the ECE's contribution in meeting those challenges was of great value for the country. The ECE's experience in such areas could well serve the needs of other less-advanced countries, benefitting not only them but all of Europe. The programme of work adopted by the ECE was well-focused and flexible enough to respond to unpredictable developments; and Poland welcomed the undertaking of innovative methods of work in trade and related areas which could meet the needs of many transition countries, especially those from the Commonwealth of Independent States.

MONSEIGNEUR CELESTINO MIGLIORE, Under-Secretary for State Relations of the Holy See, said the ECE had played a major role in establishing democratic Governments and market economies; however, the Organization could not rest on its laurels, as the world and region was changing too quickly; the job had not yet been done, although the road taken over the last half century of the ECE had been a laudable one. The Organization's programme for future work was realistic and effective, and reflected the goal of Europe, which was to achieve progress while respecting diversity. The role of such regional organizations of the UN remained important, as they provided a way of integrating countries of various parts of the globe into the overall world economy. It was necessary, meanwhile, to pay attention to social concerns and not to focus solely on economic and commercial progress.

P. HARTIG, Director-General of the Central European Initiative, said ECE cooperation with other institutions and sub-regional groupings, including the CEI, was an important matter, and the ECE's declaration and Plan of Action was a viable attempt to involve all European countries in harmonious economic relations. The future challenges of the region lay in the way of achieving that goal -- fragmentation and economic conflict were to be avoided, and yet the region's cultural diversity must be protected; cohesion did not mean the end of diversity, but required acceptance of some common standards and major efforts to avoid new rifts, let alone the building up of new economic blocs. The CEI was a sub-regional organization with serious interest in economic matters, and carried out training and cooperation programmes in economic areas of concern to its member States.