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Holy See addresses UN Trade and Development meeting

Holy See addresses UN Trade and Development meeting

(Vatican Radio) The Holy See has addressed the XIV Ministerial Conference of the United Nations Conference on Trade and Development (UNCTAD). The full text of the intervention is below.

 

Intervention of H.E. Archbishop Ivan Jurkovi?, Apostolic Nuncio,

Permanent Observer of the Holy See to the United Nations Office and other

International Organizations in Geneva

at the XIV Ministerial Conference of UNCTAD

Nairobi, 19th July 2016

Mr. President,

 

At the outset, the Holy See wishes to thank warmly the Government of Kenya  and  the  city  of  Nairobi  for hosting  this Ministerial  Conference.  The  theme  “From  Decision  to  Action:  moving  toward  an  inclusive  and  equitable  global  economic  environment for trade and development” clearly signals the ambition and intent we  must bring to the attention of the international community.

1.  The  Holy  See  strongly  supported  the  original  aspiration  of  UNCTAD which aimed at creating a global trading system supporting the development of poor  countries:  a  system  able  to  promote  the  rebalancing  of  international  economic  relations  to  promote  justice  and  equity,  to  promote  social  progress  and  better  standards of life in  greater freedom, to create a better and more effective system of  international economic cooperation, as part of a new and just global economic order  whereby the division of the world into areas of poverty and plenty may be overcome and  prosperity  achieved  by  all.  This  system  facilitates  regional  trade  and  corrects imbalances  between  different  trade  partners,  with  special  concern  for  trade  in  raw  materials and food. The  last  conference  in  Doha  took  place  during  a  critical  phase  of  the  world  economic  crisis  which  left  many  governments  struggling  to  offset  the  effects  of  financial retrenchments in  banks, businesses  and households as they seek to correct their  balance  sheets.  In  this  context,  many  developed  economies  have  turned  to  “unconventional” monetary policy instruments in efforts at recovery.

2.  The  trade  slowdown  of  the  last  three  years  has  been  widespread  across  most of the developing and developed countries. Average trade growth rates for all  regions  are  now  very  low  and  just  a  fraction  of  what  they  were  in  the  pre-crisis  period. The reasons for the ongoing trade slowdown are to be found in a variety of  factors. While some of these factors are likely to have only temporary effects and  are  possible  cyclical  in  nature,  others  are  likely  to  be  more  long  lasting  and  related  to  structural shifts. As usual, it is very  difficult to make predictions, but there are still  valid  reasons  to  believe  that trade growth  in  the  future  will  be  driven  by  different  factors than in the past. This implies that developing countries willing to benefit from  international  trade  should  be  ready  to  adapt  their  trade  strategies  by  taking  into  account some of the recent changes in trends in international trade. Economic  and  financial  actors,  both  at  the  international  and  national  levels,  need to recognize that economic activities  function not  only through self-regulation  of  the  market  and  agreements  limited  to  reconciling  the  interests  of  the  most  powerful countries, but they need also to take into account that they are at the service  of  persons  who  work  and  contribute  to  development.  Most  importantly  any  development and growth strategy needs  to be centred on the human person and on  the  primacy  of  human  work.  The  Holy  See  believes  that  in  order  to  achieve  this  result  it  is  of  primary  importance  to  integrate  the  different  social  and  economic dimensions of development,  so as  to create an international system balanced on an  idea of  development that would  be truly sustainable,  inclusive and equitable at all  levels.

3.  In  this  sense,  agriculture  plays  a  crucial  role  in  the  economy  of  poor  countries: it accounts for more than one fourth of  the  GDP and more than a third of  employment,  reaching  more  than  50%  in  the  poorest  countries.  Promoting  agricultural  productivity  is  important  for  several  reasons.  First,  it  addresses  the  problem of food insecurity which still plagues a large part of the population of LDCs.  Despite  the  recent  improvement  in  economic  conditions  throughout  the  world  hunger is still claiming too many lives among the poorest Agricultural development is also crucial in terms of  global sustainability. It is  well known that in developing countries there is a high concentration of forest and  ecosystems  that  are  crucial  for  ecological  development.  In  these  countries  agricultural  production  is  intimately  linked  with  natural  resources  exploitation,  deforestation and biodiversity preservation. The opportunity to combine agricultural  development  with  ecological  sustainability  has  too  enormous  stakes  and  consequences for the entire planet for it not to be considered a priority action.

In  this  respect,  trade  can  be  an  important  channel  for  fostering  agricultural  development in local communities;  moreover,  the development of small farmers and  small  producers  could  be  vital  not  only  in  reducing  poverty  but  also  in  providing  new ways for preserving local ecosystems.  In the agricultural sector there is in fact  the  danger  that  its  development  could  ultimately  damage  small  farmers.  Civil  authorities have the right and duty to adopt clear and firm measures in support of  small producers and differentiated production

4.  The  international  trading  system  is  regulated  by  an  increasing  number  of  preferential trade agreements  (PTAs). Most of the recent trade agreements address  not  only  goods  but  also  services,  and  deal  with  rules  beyond  reciprocal  tariff  concessions.  The Holy See strongly stresses the importance of recognising a primacy  of multilateral agreements over bilateral and regional ones. Despite its limits and its  complexity,  the  multilateral  framework  gives  pluralism  a  universal  dimension  and  facilitates an inclusive dialogue.  More  specifically  in  a  multilateral  framework  weaker  and  smaller  countries  are better safeguarded than in a regional and bilateral setting where the counterparts  are  large  and  strong  countries.  In  such  asymmetric  settings  advanced  economies  inevitably have more bargaining power with respect to LDCs, with the result that the  latter are not fully able to benefit  from the agreements.

5.  The  issue  of  foreign  debt  and  the  alleviation  of  the  debt  burden  for  poor  countries  remain  a  major  concern  for  the  Holy  See.  In  fact  the  Holy  Father  has  recently  made  an  appeal  to  the  leaders  of  nations  to  “to  forgive  or  manage  in  a  sustainable  way  the  international  debt  of  the  poorer  nations” The  debt  of  developing countries must be placed in a broader context of economic, political and  technological  relations  which  has  brought  an  increased  interdependence  between  countries,  as  well  as  the  need  for  international  collaboration  in  pursuing  the  objectives of the common good. This interdependence should give rise to a new and  broader concept of solidarity that respect the equal dignity of all peoples, rather than  leading  to  domination  by  the  strongest,  national  self-interest,  inequalities  and  injustices.  As  Pope  Francis  stated,  “It  must  never  be  forgotten  that  political  and  economic  activity  is  only  effective  when  it  is  understood  as  a  prudential  activity,  guided  by  a  perennial  concept  of  justice  and  constantly  conscious  of  the  fact  that,  above  and  beyond  our  plans  and  programs,  we  are  dealing  with  real  men  and  women who live, struggle and suffer, and are often forced to live in great poverty,  deprived of all rights.”

The  Addis  Ababa  Action  Agenda  (AAAA)  provides  a   clear  mandate  to  address  the  vulture  funds  problem  The  role  of  UNCTAD  in  helping  developing  countries  to  attain  such  long-term  debt  sustainability  has  been  of  great  importance  and  will  remain  indispensable  for  the  foreseeable  future.  In  this  sense,  it  is  crucial  that UNCTAD continues its research and analysis of the international financial and  monetary  system  and  price  volatility  of  commodities  and  it  should  propose  recommendations  to  address  the  problems  in  financial  markets  that  result  in macroeconomic instability, distortions of international trade and increased levels of  poverty and inequality.

In conclusion Mr. President,

6.  The  international  community  should  use  this  Conference  outcome  document as an instrument also to promote innovative economic policies, to support  the  development  of  agricultural  sector  in  poor  areas  and  to  promote  the  SME  participation in global and South-South trade. These policies need adequately fund  through  development  aid,  aimed  at  fulfilling  the  needs  of  the  poorest  and  marginalized segments of the world population. Given the productive, technological  and scientific capacities  of the world economy in the 21st century, the  international  community cannot  wait until the end of the current global economic crisis, or until

the  transition  of  least  developing  countries  into  emerging  economies,  in  order  to  fulfill the fundamental human rights that millions of people are still not enjoying,  in  particular, but not exclusively, in Africa.

7.  The Holy See believes that this Conference should therefore aim at a high  level of ambition and should focus on how the international community will ensure  that  UNCTAD  plays  its  full  and  meaningful  role  in  supporting  the  new  global  development agenda, with a particular attention to the needs of poor countries and  of  the  poor  people.  UNCTAD  XIV  should  address  the  contemporary  needs  and  priorities  of  developing  countries  in  the  current  volatile  and  unbalanced  global  environment.  As stated by Pope Francis,  It is important that ethics once again play its  due  part  in  the  world  of  finance  and  that  markets  serve  the  interests  of  peoples  and  the  common good of humanity

In fact, we should reaffirm that  an essential ingredient for  an  enabling  international  environment  for  development  is  a  healthy  and  positive  approach to the issue of good global governance.

(from Vatican Radio)

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