UNUnited Nations Economic Commission for Europe

Press Release

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UNECE wraps up its fifty-ninth session

Geneva, 27 February 2004 - On 26 February 2004, the United Nations Economic Commission for Europe (UNECE) concluded its fifty-ninth session (Geneva, 24-26 February 2004). Highlights of the session included the release of the Economic Survey of Europe and a discussion on its findings, two round tables on policies to stimulate competitiveness and growth, as well as a debate on the UNECE's cooperation with the Organization for Security and Co-operation in Europe (OSCE). The Session of the Commission was chaired by Mr. Clyde Kull (Estonia).

In her introductory statement, Mrs. Brigita Schmögnerová, the Commission's Executive Secretary, stressed that this Session of the Commission was taking place at a unique moment, just before the enlargement of the European Union from 15 to 25 States. She further emphasized that the EU enlargement would have an impact on UNECE, just as it would have an impact on other regional organizations in the European region such as the Council of Europe and the OSCE. "The UNECE has so far adapted to new challenges with success. I am sure that this will be the case now," concluded Mrs. Schmögnerová.

The findings of the Economic Survey of Europe, 2004 No. 1 served as background for a discussion on economic developments in the UNECE region. In his presentation, the Director of the Economic Analysis Division noted that the economic recovery had gained momentum throughout the region in the course of 2003, led by robust growth in the United States, but also supported by dynamic expansion in emerging Asia and Japan. The euro area, however, had lagged behind primarily due to sluggish performance in the three largest economies, France, Germany and Italy. Growth had picked up in Eastern Europe, while the CIS was among the most dynamic regions in the world. The outlook for 2004 was generally optimistic, although considerable downside risks remained, notably persistent current account imbalances in the United States and associated risks of excessive exchange rate volatility. (For further information see related press release ECE/GEN/04/P08.)

Two Round Tables were held to discuss policies to stimulate competitiveness and growth. The first identified best practices and national policies that have proved successful in increasing competitiveness and growth. It stressed that the experiences of different countries show that the key to achieving or maintaining competitiveness is to ensure the effectiveness of government policies and institutions that channel market forces towards desirable outcomes. The discussion revealed that there are substantial differences in this regard within the UNECE region. The Round Table also mentioned that Government financial support should be focused on areas where social returns exceed private returns and therefore private funding would be inadequate and that a competitive economy needs creative entrepreneurial activity. It is therefore important to lower the costs of doing business, to dismantle excessive administrative barriers and to improve the efficiency of government services. At the same time, an effective competition policy should boost competitiveness and growth. Sophisticated technology will be increasingly important for competitiveness in the future. A competitive economy therefore requires an efficient education system and a steady flow of investment in human capital. Also, experience suggests that it is important to encourage private sector to invest in R&D.

The second Round Table focused on regional initiatives and cooperation in the UNECE region and on the role of UNECE in stimulating competitiveness. It stressed that regional initiatives should include a focus on competitiveness among their priorities. In order to be effective, these priorities have to be translated into clear operative targets that can be monitored. Currently, there is still a lack of efficient mechanisms for implementation of operative targets. Regional initiatives should make sure to involve all relevant stakeholders including central and local governments, the business and academic communities. It is important to harness funding from governments but also from international financial institutions and the private sector, particularly to support the emergence of a vibrant network of small and medium-sized innovative enterprises. One key priority should be the promotion of free trade, market access and trade facilitation; in this regard, regional cooperation is especially important in the development of infrastructure (in the areas of transport, telecommunication, and energy networks) and in the harmonization of regulatory frameworks. Another important area for regional cooperation is the opening of labour markets and the facilitation of intra-regional labour mobility. Regional organizations like UNECE could provide a forum for the exchange of best practices, for instance on education, human resource management, entrepreneurship, science and technology management, ICT and information society. It is encouraging that existing regional initiatives are increasingly promoting the transition to knowledge-based economies via the promotion of education, human resources development and training, and research and development.

The discussion noted the role the UNECE has played in stimulating competitiveness and growth by promoting regional free trade, developing efficient infrastructure in transport and energy, encouraging transition to a knowledge-based economy, and by providing a forum for discussing and exchanging best practices, encouraging and contributing to initiatives at the regional and subregional level, and offering technical assistance, notably in meeting the new challenges posed by the advance of the knowledge-driven economy. The significant role of the EU Lisbon Strategy for economic, social and environmental renewal was also mentioned by a number of speakers.

The Commission also considered its cooperation with OSCE. In their introductory statements the UNECE Executive Secretary and the OSCE Secretary-General, Mr. Jan Kubis, both stressed that the UNECE enjoyed a privileged position among all the organizations with which the OSCE cooperated and that the OSCE's New Strategy Document identified the UNECE as the key partner in the implementation of the Document. The New Strategy Document of the OSCE provided the basis for a new and deeper relationship between the OSCE and UNECE but that relationship needed to be clearly defined. In this connection, the Commission agreed to the proposal of the Executive Secretary, namely that an intersecretariat task force prepare a detailed plan for cooperation, including resource implications, that would be subsequently submitted to the Commission (and to the OSCE Economic and Environment Sub-Committee) for consideration and decision. The Commission further agreed to the involvement of the UNECE in the transitional review of commitments in preparation for the OSCE Economic Forum in June 2004 in the same manner as it has been doing so far.

At its last meeting, the Commission elected Mr. Wolfgang Petritsch (Austria) Chairman of the sixtieth session and Mr. Algimantas Rimkunas (Lithuania) Vice-Chairperson. Mr. Vladimir Thanati (Albania) and Mr. Sergei Aleinik (Belarus) were re-elected Vice-Chairpersons.


For further information, please contact:

UNECE Information Service
Palais des Nations
CH - 1211 Geneva 10, Switzerland

Phone: +41(0)22 917 44 44
Fax: +41(0)22 917 05 05
E-mail: [email protected]
Web site: http://www.unece.org/

Ref: ECE/GEN/04/P10