Mr. President,
Distinguished Delegates,
Ladies and Gentlemen,

On behalf of the Group of 77 and China, it gives me immense pleasure to be able to participate in the observance of the fourth United Nations Day for South-South Cooperation. It may be recalled that this was the date on which the General Assembly endorsed the Buenos Aires Plan of Action for Promoting and Implementing Technical Cooperation among Developing Countries in 1978.On this auspicious day , it is heartening to note that the 15th Session of the  High level Committee on  South-South Cooperation has   called for the convening in 2008 or early 2009 of a U.N conference on South-South Cooperation, coinciding with the 30th anniversary of the Buenos Aires Plan of Action. Argentina has generously offered to host the conference. The conference would provide an opportunity to reflect on the new and emerging realities with a view to determine our future course.

2. South-South cooperation is a growing and dynamic phenomenon. From promoting technical cooperation among developing countries, a few decades ago, the idea of South-South Cooperation has come a long way. It is an important process that is vital to confront the challenges faced by developing nations, and is also making an increasingly important contribution to their development. Most importantly, it is a manifestation of solidarity, a manifestation of the collective self-reliance of the developing countries.

3. South-South cooperation is not a substitute for North-South cooperation. Developed countries must fulfill their commitments for North-South cooperation. The North has an obligation both in their own national interests but also in the interest of global harmony, equity and development, to fulfill their commitment through North-South cooperation. We will continue underlining this premise vigorously and consistently at every occasion. Also, South-South cooperation, whether through the UN or bilaterally or regionally, cannot mirror the cooperation with the North. The premises are different, the conditions are different, and the expectations are different and must be accordingly reflected.

4. A strong partnership of South should also complement our relationship with the North and vice versa. Triangular cooperation is therefore a useful and cost effective tool for furthering our objectives. New partnerships among countries of the South, supported by our development partners, will help to unlock the economic potential of the developing countries to the benefit of the entire international community. The challenge, therefore, is for all partners in the South as well as from the North, to translate the new dynamism of the South into a force for the realization of an equitable and universal development paradigm. The UN system indeed has a key role to play in this regard.

5. Financial cooperation among developing countries constitutes an important aspect of South-South cooperation in recent times. In the present international economic situation, it is not only helping to safeguard the development process from the economic fluctuations and financial shocks coming from countries in the North, but it is also calculated to give a greater measure of stability to the growth of the international economy as a whole.
 
6. For developing countries, however, development financing continues to be a major challenge.  The amount and modalities of development financing from developed countries has been inadequate thus far. The official development assistance declined in 2006 and is projected to decline further in 2007. The financing requirements of developing countries requires fulfillment of commitments from the donor community if the targets of internationally agreed development goals including Millennium Development Goals are to be achieved.

7. Efforts of developing countries to address the issue of inadequacy of financial resources for development are evidenced by the establishment, and successful operation of a number of their own financial institutions, such as the OPEC Fund for International Development, the Islamic Solidarity Fund of the OIC, the IBSA Poverty alleviation Fund, the most recent establishment of the Bank of the South, and so forth. However, further possibilities of cooperation are open on a bilateral and multilateral basis.

8. In this regard, the Perez-Guerrero Trust Fund for Economic and Technical Cooperation among Developing Countries (PGTF) has served as an important source of funding for small-scale, but substantively crucial, projects involving the sharing of expertise, know-how, experience, technology and other resources among developing countries. In order to enable the PGTF to continue being responsive to the growing needs of developing countries, it is imperative that its resources be significantly expanded through more contributions from both developed and developing countries. At the same time, steering the course of multilateralism, it is important that the United Nations Fund for South-South Cooperation, the main multilateral funding mechanism established by the General Assembly in 1995 be strengthened by enhanced contributions by all member states.

9. The Special Unit for South-South Cooperation, headed by Yiping Zhou and housed in the UNDP, has remained the focal point to promote cooperation among developing nations. It is important to strengthen the Special Unit for South-South Cooperation and to provide it with further support to enable it to fulfil its mandate.

10. On the occasion of the fourth annual United Nations Day for South-South Cooperation, let us recognize its increased relevance in the current international economic environment both as a strategy in support of the development efforts of developing countries and as a means of enhancing the participation of developing countries in the emerging global economy.

I thank you.