Mr. President,

          It is my privilege and pleasure to address the Fifteenth session of the High-Level Committee on South-South Cooperation, on behalf of the Group of 77 and China. But first, allow me to congratulate you Mr. Chairman as well as the other members of the Bureau for your election to lead our Committee. I would like to convey to you and the members of the bureau the full support of the Group of 77 and China in conducting our deliberations to a successful conclusion.

2.       We have heard the statements made here today by the UNGA President and UNDP Administrator with interest. Let me thank the Secretariat for the reports which highlight some developments in South-South Cooperation including the efforts undertaken by member States, the UN system and other regional organizations to address a number of development challenges through intraregional and interregional South-South Cooperation among developing countries in  trade, investment, science and technology.

Mr. President,

3.       South-South cooperation is a growing phenomenon; an important process that is vital to confront the challenges faced by the developing countries and is also making an increasingly important contribution to their development. South-South Cooperation is also a manifestation of solidarity, a manifestation of the collective self-reliance of the developing countries. Such cooperation is being built at the bilateral, regional and global levels. The strategies and directions of mutual development cooperation must, of course, respond to the problems and challenges facing the poorest among the developing countries.

4.       As we take stock of the status of South-South Cooperation at this Session, and identify means and ways for strengthening it, the global forecasts and trends for developing countries are mixed. The good news is that the share of the developing countries in the global trade and investment is on the rise as is the South’s share within the overall increase. South-South trade has come to represent approximately 40% of the trade of developing countries and has grown, on average, at the rate of 11 percent a year over the past decade.

5.       Unfortunately, most of this growth and expansion is limited to a few so-called emerging markets. The poorest countries, like the LDCs and economically vulnerable countries including the SIDs and LLDCs, are being marginalized. Globally, income disparities are widening. Poverty remains rampant, and is on the rise. And significantly, the net outflow of resources from the developing to the developed countries rose to an all time high of $700 billion in 2006.

6.       Clearly, while the challenges persist, there are also emerging opportunities, which should be grasped. Disparities in economic levels and capacities within the South have created new complementarities and created the economic cooperation and political solidarity. However, more extensive analysis is essential to establish more accurate assessments, economic trends and opportunities and to pursue more effective cooperation within the South on an objective and realistic basis.

7.       The review of progress in the implementation of the Buenos Aires Plan of Action undertaken by the Secretariat indicates that the agenda for South-South Cooperation has expanded significantly. This agenda now covers not only economic and technical cooperation, but also cooperation in political, social and other issues. While the Secretary General’s report notes a number of positive developments, it also highlights many areas where improvements are required, specially the need for better mechanisms for the strengthening of South-South as well as Triangular Cooperation, and enhanced funding for such cooperation.

8.       The UN system must enhance its own capacity to effectively support the South-South agenda. The 2005 Doha Summit called upon the Secretary General to strengthen UN support for South-South Cooperation. In this context, the UN General Assembly’s decision to convene a Development Cooperation Forum under the aegis of ECOSOC, to enhance policy oversight and effectiveness of development cooperation is timely.

9.       The UNDP Administrator’s Report indicates that the UNDP has identified South-South Cooperation as one of the drivers of development effectiveness, requiring its integration in the development cooperation activities of all the organizations in the UN system. Similarly, new trends are emerging in triangular cooperation, including the pairing of UN agencies with the private sector and with governments in the North and South, to foster South-South and triangular cooperation.

10.    We thank the Special Unit for South-South Cooperation for supporting South-South cooperation within the UN development system, its funds and programmes, while facilitating triangular cooperation between the North and the South. We also encourage the Special Unit to intensify its efforts in order to respond to various mandates by the G-77 Summits and other High Level Conferences related to South-South Cooperation in various fields. We welcome the UNDP Administrator’s commitment to strength the South-South unit and improve its governance.

11.     There is also a need to support multilateral arrangements and mechanisms for South-South cooperation. In this context, we call on our Development partners and the UN System to generously support the UN Trust Fund for South-South Cooperation and the Perez-Guerrero Trust Fund for Economic and Technical Cooperation among Developing Countries.

12.     Thirty years after the adoption of the 1978 Buenos Aires Plan of Action, we should, at this session examine its implementation and reflect on the new and emerging realities. It would, therefore, be timely for the General Assembly to consider convening in 2008 a High Level UN Conference on South-South Cooperation and to decide on its date and modalities. G-77 has prepared a draft decision proposing convening of a High-Level UN Conference on South-South Cooperation. The draft decision will be circulated this afternoon for consideration of the High-Level Committee

Mr. President,

13.     South-South Cooperation is not a substitute for the North-South cooperation. Indeed, South-South cooperation cannot and should not replace North-South cooperation. The developed countries must fulfill their commitments for North-South cooperation. This is dictated by the principle of equity and solidarity and it is in their own long-term interest.

14.     A strong partnership of the South should also complement our relationship with the North and vice versa. A triangular cooperation is therefore a useful and cost effective tool for furthering our objectives.

15.     In fact, new partnerships among countries of the South supported by our development partners will help to unlock the potential of the developing countries for the benefit of the whole world community. The challenge therefore is for all partners in the South as well as partners from the North to translate the new dynamism of the countries of the South into a new force and energy for the creation of a more inclusive and equitable global development paradigm.