STATEMENT BY H.E. MAKHDUM KHUSRO BAKHTYAR, MINISTER OF STATE FOR FOREIGN AFFAIRS OF PAKISTAN AT THE HANDOVER CEREMONY OF THE CHAIRMANSHIP OF THE GROUP OF 77 AND CHINA (New York, 10 January 2007)

Her Excellency Dr. Nkosazana C. Dlamini Zuma
Minister for Foreign Affairs of South Africa:

His Excellency Mr. Ban Ki-moon
Secretary-General, United Nations:

His Exellency Ambassador Frank Majoor
Acting President of the 61st Session of the General Assembly:

His Exellency Dr. Supachai Panitchpakdi
Secretary-General, UNCTAD:

Excellencies:

Ladies & Gentlemen:

It is my pleasure and great personal privilege to accept on behalf of Pakistan, the Chairmanship of the Group of 77 and China for the year 2007.

2.       Let me also convey our deepest gratitude to the members of the Group for electing Pakistan, for the third time, as the G-77 Chair in New York. This expression of trust and confidence in Pakistan reinforces our deep commitment to the ideals and objectives of the Group of 77 and China.

3.       In assuming this important position, Pakistan will seek to maintain the high standards of leadership and dedication established by our predecessor, South Africa. I wish to congratulate you, Madam Foreign Minister, as well as Ambassador Kumalo and the South African delegation for the skill, passion and persistence with which you have led the Group throughout 2006. Due largely to your delegation’s sincere endeavour, the Group has succeeded in drawing the development agenda to the forefront of the international relations, especially within the United Nations. Our Group has, furthermore, accelerated the process of mutual cooperation, upheld the interests of its members on vital issues and preserved the principles which are fundamental to the establishment of an equitable world economic order.

4.       Yet, despite the individual and collective achievements of our Member States, it is evident that the developing countries continue to face imposing and complex challenges in their quest to bring prosperity and sustained development to their peoples. The world economy has continued to grow, in large measure driven by the dynamic economies of our Group. But, the future is uncertain, due to global economic imbalances and inequity, among and within nations. Prosperity has enlarged, but so has poverty. Our collective search for universal growth and prosperity must be further invigorated as we enter this New Year.

5.       There is, however, reason for hope and optimism. Firstly, the Group of 77 and China now accounts for a significant share of the world’s GDP and trade. Secondly, some of the major South economies, especially but not only in Asia, are growing rapidly, enhancing our ability to influence the decisions and direction of world economic relations. Thirdly, the goals and objectives which we must promote are already set out in the Millennium Development Goals and the other Internationally Agreed Development Goals.

6.       It is clear that a first priority for our Group must be to secure the full and timely implementation of the MDGs and IADGs. Our governments have accepted the national responsibilities entailed in the realization of these goals. Most of us are formulating the national development strategies designed to achieve these goals. Our performance is, often critically evaluated by development institutions and our partners. What is missing is an international mechanism to evaluate the implementation of the development commitments of our partners – e.g. to provide the financial transfers, trade openings and technology access – to enable the developing countries to successfully implement their national development strategies. We should, therefore, press for the early creation of a development monitoring mechanism within the UN.

7.       In many cases, the economic and trade policies of our partners work at cross purposes to their development commitments. The impasse in the Doha Round of trade negotiations is a visible and vital case in point. The Doha Development Agenda should not be held hostage to securing further trade and other concessions from the developing countries. The target must remain the removal of the unequal subsidies, high escalating and discriminatory tariffs, and other policies that perpetuate the systemic inequality of the multilateral trading system against the developing countries.

8.       Similarly, the promises of larger development assistance, and debt relief, announced with much fanfare last year, have yet to be realized. These promises, moreover, need to be supplemented with other measures – such as compensating financing for trade losses and measures to enlarge foreign investment flows to developing countries. Without such enlarged and adequate financial support, it will be impossible for most developing countries particularly the LDCs, LLDCs and SIDS to implement their MDG-based development strategies and launch an effective attack against poverty.

9.       There are several other important issues that require development-oriented action, such as: technology access and larger R&D in areas of priority for developing countries; implementation of the Rio Principles on the Environment; Migration and the free movement of labour.

Madam Foreign Minister, Excellencies,

10.     Another area where coordinated action by our Group is essential is the process of UN and institutional reform. The G-77 and China has been committed to UN reforms which are consistent with the United Nations Charter and its principles and purposes. Under South Africa’s leadership, we have upheld the principle of sovereign equality among the Member States. We have sought equitable decisions and processes in the management and governance of the UN Secretariat. We displayed solidarity on the scale of assessments. Pakistan will endeavour to maintain the unity in the Group to safeguard our collective and fundamental rights and interest in the reform process including in the comprehensive review of governance and oversight; human resources management; the mandate review exercise as well as the programme-budget for 2008-2009.

11.     In this context, we look forward to working closely with our new Secretary-General. We are confident that he will be fully responsive to the interests, priorities and positions of the developing countries.

12.     The Group of 77 and China welcomes the appointment by the Secretary General of Dr. Asha-Rose Mtengeti-Migiro, Minister of Foreign Affairs and International Cooperation of the Government of the United Republic of Tanzania to the position of Deputy Secretary General of the United Nations. We are pleased that Secretary General has appointed a person from a developing country for such an important position.

13.     Our Group will also need to evolve a unified position on a number of institutional aspects of UN reform. These include the Annual Ministerial Review and the Development Cooperation Forum, agreed under the ECOSOC reform resolution, and the establishment of a mechanism to monitor the implementation of the MDGs and IADGs, envisaged in the Development follow-up resolution.

14.     Similarly, we shall have to evolve our position on the recommendations of the High-Level Panel on System-Wide Coherence, which was co-chaired by the Prime Ministers of Pakistan, Norway and Mozambique. In this context, we look forward to receiving the views of Secretary-General Ban Ki-moon on this Report and its recommendations.

Excellencies, Distinguished Delegates,

15.     The third aspect of our endeavours will be to strengthen South-South Cooperation. In this context, we should actively exploit our existing and potential economic complementarities. Our share in international trade is rising spectacularly. Regional trade and economic integration is proceeding apace in virtually every region and sub-region. South-South investment flows are rising significantly. And, developing countries are acting together to address technological and human resource constraints on growth and development.

16.     Our Group should intensify its efforts to expand, accelerate and institutionalize these positive trends. To enlarge trade and economic integration, we may consider reviving and reinvigorating the South’s Trade and Commerce Organizations; promote greater interaction with the private sector; prepare a list of MDG-based R&D projects for financing; promote coordination between the South’s development Funds and Programmes e.g. through a G-77 Development Assistance Committee; establish a mechanism for coordination among G-77 “Think Tanks” and development policy institutions. The Group may also consider setting up an Eminent Persons Group to further elaborate the “South Platform” formulated at the initiative of Jamaica, our Chair for 2005.

17.     To promote these and other aspects of South-South Cooperation, we need an efficient and strengthened G-77 Secretariat. We look to the Secretary-General to provide support to the Group, both financial and personnel. We will welcome such support from the UNDP, DESA and UNCTAD – and indeed other institutions. Member governments could also help by offering on rotational secondment, specialist officials to the Group’s Secretariat.

Excellencies, Distinguished Delegates,

18.     In pursuing this imposing agenda for 2007, Pakistan, as Chair of G-77 and China, will be guided by the principle of transparency and inclusiveness and a deep commitment to the preservation and promotion of Group’s unity which South Africa, Jamaica and other preceding Chairs of our Group have been able to resolutely upheld in the past. We will also strive to build synergies and further develop existing strengths of the Group through effective coordination, greater visibility and outreach to other groups and countries members of the United Nations.

19.     As we commence our work in the New Year, we are heartened and reassured by the personal commitment of the new Secretary-General to advancing the global development agenda and his expressed wish to work closely with the Group of 77 and China. I would like to take this opportunity to thank the Secretary-General for his presence today and to fully reciprocate his sentiments. On behalf of the Group, I wish to convey our keen desire to open a new chapter of close and active interaction and cooperation with the Secretary-General and his team in order to advance the noble principles and purposes of our Charter.

I thank you.