[Index]
UNECE wraps up its sixtieth session
Geneva, 25 February
2005 -- On 25 February 2005, the
United Nations Economic Commission for
Europe (UNECE) concluded its sixtieth
session (Geneva, 23-25 February 2005).
Highlights of the session included the
release of the Economic Survey of
Europe, 2005 No. 1 and a discussion
on its findings, two round tables on the
follow-up to the International Conference
on Financing for Development (ICFfD) in
the UNECE region, as well as debates on
sustainable development, on the UNECE’s
cooperation with the Organization for
Security and Co-operation in Europe (OSCE)
and on UNECE reform. The session of the
Commission was chaired by Mr. Wolfgang
Petritsch (Austria).
In her introductory statement,
Mrs. Brigita Schmögnerová,
the UNECE Executive Secretary, stressed
that as part of the United Nations, the
UNECE has a role to play in helping countries
to achieve internationally agreed goals.
The UNECE contributes to the achievement
of those goals through its work in fostering
regional integration, but this is only
one side of its work. UNECE also provides
a neutral forum where all countries can
participate in policy discussions, debate
the issues, exchange experiences, and
participate in decision-making on an equal
footing. Furthermore, UNECE ensures the
links between the development challenges
of the region and the global agenda of
the United Nations. Mrs. Schmögnerová
further emphasized that the UNECE can
continue, and indeed is continuing, to
be an instrument of economic integration
that works to meet the needs of its members
and helps to forge bridges and reduce
gaps among them. “At the same time,
UNECE as a demand-driven organisation,
in order to better respond to the demands
of its membership in a rapidly changing
environment, has to continue to adjust
and reform itself and I look forward to
working with you to this end” concluded
Mrs. Schmögnerová.
In the ensuing discussion
member States stressed that the UNECE
is a valuable framework for policy dialogue
and cooperation, making a useful contribution
to economic cooperation. It was further
stressed that the UNECE is an important
institutional medium between the different
economies in the region, through the initiation
and implementation of various activities
such as development and harmonization
of legislation and procedures, training
activities and sharing technical knowledge.
The findings of the Economic
Survey of Europe, 2005 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 short-term
outlook for Europe and the CIS is for
economic growth to continue in 2005, albeit
at significantly different rates in the
major subregions. The euro area will continue
to have a slower growth rate than the
other major regions of the world economy.
Within Europe, central and eastern Europe
will continue to perform significantly
better than the euro area. Economic growth
will weaken somewhat in the CIS, but average
rates will remain well above the European
average. Despite these overall relatively
favourable short-term growth prospects
for Europe and the CIS, there are a number
of important issues that need to be addressed
by economic policy to ensure that the
basic conditions are in place for sustained
and robust growth in the medium- and longer
term.
Two round tables were
held to discuss the follow-up to the International
Conference on Financing for Development
(ICFfD) in the UNECE region. The first
one was an exchange of experiences with
domestic policies that have successfully
increased financial resources for development
in the UNECE region. Participants highlighted
that liberalizing domestic prices and
markets as well as foreign trade is important
to avoid distortions in the allocation
of financial resources. Investments in
human capital are equally important to
create a basis for economic diversification
and to foster the evolution towards knowledge-based
economies. It was also noted that FDI
is a particularly beneficial source of
financing. Given the increasing competition
for FDI, it is important to develop an
attractive package to match the needs
of investors. Domestic policies are also
key for fostering inter-linkages between
foreign companies and domestic firms.
Resource-rich economies can use commodity
stabilization funds to support economic
diversification. Recently, some post-transition
economy countries have emerged as donors
of official development assistance. These
countries mentioned that their aid is
prioritized toward reaching the Millennium
Development Goals (MDGs) and is targeted
at countries with economies in transition
(in Southeast Europe and Central Asia)
and developing countries.
The second Round Table
focussed on the role of regional cooperation
in financing for development in the UNECE
region. It stressed that regional cooperation
initiatives can play an important role
in improving the business climate and
hence is making countries an attractive
spot for investment. Cooperation at regional
level can take different, complementary
forms: free trade agreements, harmonization
of legislations and standards, coordination
of customs procedures, realization of
regional infrastructures, creation of
common financial institutions and markets,
sharing of knowledge and experiences.
Hence, regional cooperation appears to
be an important strategy that countries
in the UNECE region can use to mobilize
resources for development. Regional institutions
(including regional economic agreements,
development banks and subregional groupings)
can be an important catalyst of the integration
process. However, for the regional cooperation
to be successful, participating countries
must credibly and unambiguously commit
to it. Furthermore, whilst the contribution
of regional initiatives to economic development
can be significant, individual countries
will remain the owner of the development
and reform agenda. In this sense, regional
initiatives do not substitute for, but
rather complement and support, coherent
national development strategies.
In the context of sustainable
development in the UNECE region, the Commission
examined major policy options for water,
sanitation and human settlements. It stressed
that despite the progress achieved, there
was a need for action-oriented local and
national measures as well as regional
cooperation to speed up efforts to meet
the Millennium Development Goals (MDGs)
and Johannesburg Plan of Implementation
(JPoI) commitments, particularly in countries
in Eastern Europe, the Caucasus, Central
Asia (EECCA) and some South-East European
(SEE) countries. In this connection, UNECE
member States stressed the importance
of aligning the operational objectives
of the UNECE with the follow-up and implementation
of the internationally agreed development
goals, including those contained in the
UN Millennium Development Goals.
The Executive Secretary
emphasized the successful conclusion of
negotiations between the UNECE and OSCE
as reflected in the signing of the Memorandum
of Understanding (MOU) between the two
organizations in December 2004. The Executive
Secretary briefed the Commission on the
work underway in preparation for review
of the OSCE commitments under the cluster
of Integration, trade and transport which
will be taken up at the OSCE Economic
Forum in May 2005. Information was also
provided about the UNECE’s assistance
to the OSCE concerning an early warning
mechanism.
The team of external
evaluators selected to undertake a comprehensive
report on the state of the UNECE was introduced
to the Commission. The team, consisting
of Mr. Pekka Haavisto (former Minister
for Environment and Development of Finland),
Mr. Karl Paschke (former United Nations
Under-Secretary General for Internal Oversight),
Ms. Johanna Bernstein (international lawyer
with expertise in international environment)
and Mr. Tapio Wallennius (expert on public
sector administration) informed the Commission
of the scope of the evaluation and the
methodology to be used. The comprehensive
report will provide an analysis of the
role, mandate and functions of the UNECE
in the light of the changed European institutional
landscape and produce recommendations
to determine any possible and necessary
changes. The final report is expected
to be released by the end of June 2005.
At its last meeting,
the Commission elected Mr. François
Roux (Belgium) Chairman of the sixty-first
session. Mr. Vladimir Thanati (Albania)
was re-elected Vice-Chairperson of the
sixty-first session. Mr. Alexander Slabý
(Czech Republic) and Mr. Dumitru Croitor
(Republic of Moldova) were elected Vice-Chairpersons
of the sixty-first session.
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]
Ref: ECE/GEN/05/P06