Madam Chairperson,

I have the honour to speak on behalf of the Group of 77 and China on agenda item 56 entitled: Globalization and Interdependence, and its sub-items: 56 (b): Science and Technology for development, 56 (c): Preventing and combating corrupt practices and transfer of funds of illicit origin and returning such assets to the countries of origin.

2. The issues covered under this Agenda Item are of particular relevance to the development prospects of developing countries.
3. We thank the Secretary-General for his Reports on "The impact of international commitments, policies and processes on the scope and the implementation of national development strategies". The Report outlines the challenges faced by the developing countries in managing the negative implications of globalization.

Madam Chair,

4. Globalization is a mixed bag of opportunities and pitfalls. It has brought new challenges for growth and sustainable development. It particularly poses special difficulties to the developing countries in effectively responding to these new challenges. Some countries have successfully adapted to these changes and benefited from globalization. Many others, especially the least developed countries remain marginalized in a rapidly globalizing world economy. Consequently, the benefits are unevenly shared, while the costs are unevenly distributed.

5. Managing globalization for the benefit of all therefore remains a major predicament of our time. The degree of flexibility and the policy space that the developing countries have in shaping their national policies in an increasingly globalized but uneven economy is clearly diminishing. Today, economic performance of a country is being more and more determined by factors outside its geographical borders and beyond its control.

6. Clearly, developing countries need to maintain their right to development through policy space to pursue policies and strategies based on their unique social, political, economic and environmental conditions. Domestic policies, especially in the areas of trade, investment and industrial development are essential for a successful integration in the world economy and to facing the challenges of globalization. It is, therefore, very important to continue recognizing the notion of policy space and to make endeavours to operationalize this concept.

Madam Chair,

7. Equitable sharing of the benefits of globalization requires managing globalization through strengthening international cooperation and global partnership for development.

8. Each country has primary responsibility for its own development. In this regard, the role of national policies and strategies cannot be over emphasized in the achievement of sustainable development. These national efforts should be supported by global programs and policies. Most importantly through an enabling international environment conducive to the objectives of economic growth and sustainable development. In this context, in order for the developing countries to optimally benefit from the economic globalization, greater voice and participation in international economic decision making and norm-setting is a must. There is thus a clear and urgent need for continuing efforts to reform the international financial architecture, including reforms in the Bretton Woods Institutions.

Madam Chair,

9. The United Nations should play a fundamental role in the promotion of international cooperation for development and the coherence, coordination and implementation of development goals and actions agreed by the international community. There is need to strengthen coordination within the United Nations system in close cooperation with all multilateral financial, trade and development institutions in order to promote sustained economic growth, poverty eradication and sustainable development.

10. The Untied Nations system can help identify best practices and tools to help strengthen developing countries' institutional capacity to fully understand and effectively cope with the implications of external macroeconomic and trade policies on development strategies.

11. To make globalization work for all, especially the world's poor, a fair and equitable global economic order that provides developing countries with necessary policy space is the surest way forward. The situation calls for decisive global action.

Madam Chair,

12. I now turn to Science and Technology for Development.

13. We thank the Secretary-General for his Report in document A/62/136.

14. The Report, among other things, presents a useful review of the Commission for Science and Technology for Development's work in areas of agriculture, rural development, information and communication technologies and environmental management as well as that of UNCTAD and other relevant organizations in assisting developing countries in the field of Science and Technology.

15. In an increasingly knowledge-based world economy, access to technology has become a vital component of any viable development strategy. Infact, the restraints on access to technology, specially advanced technologies which could address critical development problems, are now a major manifestation of inequality between the developed and the developing countries.

16. Building on the decisions of the 2005 World Summit and the World Summit on Information Society, the restrictions on technology transfer and acquisition, including under the TRIPS agreement, need to be reviewed and revised. Incentives should be provided for research, including by the private sector, into the problems of the poor which presently attract only 10 percent of research and development expenditure.

17. We also appreciate the joint initiative carried out by CSTD and UNCTAD, particularly the project on the Network of Excellence and Connect Africa Initiative.

18. Let me stress once again that advances in science and technology and easier access to latest technologies will certainly help developing countries achieve significant progress in areas as such agriculture, health, energy, trade, water and environmental protection. Advancement in these sectors in essence represent the internationally agreed development goals including MDGs.

Madam Chair,

19. I turn now to the issue of preventing and combating corrupt practices and the transfer of assets of illicit origin and returning such assets to the countries of origin.

20. We thank the Secretary-General for presenting a review in his Report (A/62/116) of the First Session of the Conference of the States Parties to the United Nations against corruption, held in Amman on 10 - 14 December 2006. The Report also provides a useful overview of the impact of corruption on development and economic growth. We have taken note of the ongoing initiatives summarized in the Report on coordinating international actions against corruption.

21. The Group of 77 and China welcomes the convening of the first session of the Conference of the States Parties to the United Nations Convention against Corruption. We invite State Parties to take steps to implement the outcome of that COP particularly initiatives on asset recovery and the provision of technical assistance and capacity building. There is clearly a need   to build knowledge and strengthen capacity in this important area, particularly among developing countries.

22. We also call on the developed countries to cooperate further in addressing the issues related to the repatriation of money, illegally acquired from the developing countries, to their respective countries of origin.

23. There are substantial sums involved and there is need for increased collaboration with the developed countries and their financial institutions in uncovering illegal transactions involving such illicitly acquired funds, locating the funds and arranging for their return to countries of origin. We should continue to seek creative ways to achieve these objectives. In this regard, we look forward to the fruitful outcome of the Second Session of the Conference of the States Parties to the Untied Nations Convention against Corruption to be hosted by the Government of Indonesia in Bali on 28 January to 1 February 2008.

I thank you