ECOSOC ADOPTS MINISTERIAL DECLARATION ON PROMOTING RURAL DEVELOPMENT FOR POVERTY ERADICATION

2 July 2003



Concludes High-Level Segment on Promoting Integrated Approaches
to Rural Development in Developing Countries




The Economic and Social Council this afternoon concluded its high-level segment on rural development and adopted a Ministerial Declaration on promoting an integrated approach to rural development in developing countries for poverty eradication and sustainable development.
The Ministerial Declaration called for the reduction and elimination of agricultural subsidies and urged developed countries to implement the commitments made at Doha to facilitate market access for the products of developing countries. Among other recommendations, the Ministerial Declaration stated that “without prejudging the outcome of negotiations, reductions of, with a view to phasing out, all forms of export subsidies, substantial reductions in trade-distorting domestic support and enhanced market access for developing countries” were needed in the agricultural sector.
The Declaration also urged the Member States of the World Trade Organization (WTO) to implement their commitments under the Doha Ministerial Declaration, including that concerning “special and differentiated treatment” for least developed countries.
In concluding remarks, Gert Rosenthal, President of the Economic and Social Council, said that he felt the important points of the Declaration stressed the inconceivable nature of thinking about achieving the Millennium Development Goals – particularly those related to poverty – if rural development was not addressed. A stable macroeconomic environment, greater attention to detail at the microeconomic level and the participation of civil society had all been stressed, as had the huge importance of the international economic framework. In conclusion, he expressed his gratitude to Nitin Desai, Under-Secretary-General for the Department of Economic and Social Affairs, for his important contribution to the work ECOSOC and regretted his imminent department from the United Nations.
Responding, Nitin Desai thanked all his colleagues for their strong support and sense of cooperation during the years, without which none of the important work of ECOSOC could have been achieved. The political process of the United Nations enabled not only countries, but also non-governmental organizations and civil society to talk, discuss and negotiate – factors essential for the progress of the world.
Addressing the Council this afternoon was Sani Abdallah, Permanent Secretary at the Federal Ministry of Agriculture and Rural Development of Nigeria, as well as representatives of Argentina, Indonesia, Nepal, Botswana, Qatar, Egypt, Azerbaijan, Bhutan, Ghana, Libya, and Algeria.
Also addressing the Council was a representative of Peru to the Food and Agricultural Organization and representatives of the following organizations: IUCN-The World Conservation Union, United Nations Industrial Development Organization (UNIDO); International Labor Organization; and International Confederation of Free Trade Unions.
The Economic and Social Council will meet again at 9:30 a.m. on Thursday, 3 July, to begin consideration of its operational activities segment with a high-level panel on resources for operational activities for development.

Ministerial Declaration
The Economic and Social Council (ECOSOC) calls for the reduction and elimination of agricultural subsidies and urges developed countries to implement the commitments made at Doha to facilitate market access for the products of developing countries in its Ministerial Declaration of the high-level segment on promoting an integrated approach to rural development in developing countries for poverty eradication and sustainable development (E/2003/L.9). Taking note that rural areas of developing countries were home to three quarters of the world poor, the Council recommends that rural development be pursued through an integrated approach encompassing the economic, social and environmental dimensions – taking into account the gender perspective – and consisting of mutually reinforcing policies and programmes. It also notes that although rural development is the responsibility of each country, it is important that an enabling international economic environment support the effectiveness of national development efforts.
Thus, in its Ministerial Declaration the Council states that, “without prejudging the outcome of negotiations, reductions of, with a view to phasing out, all forms of export subsidies, substantial reductions in trade-distorting domestic support and enhanced market access for developing countries” are needed in the agricultural sector.
The Declaration urges the Member States of the World Trade Organization (WTO) – who are to hold a conference in Cancun in September 2003 – to implement their commitments under the Doha Ministerial Declaration, including that concerning “special and differentiated treatment” for least developed countries.
Among others, the Ministerial Declaration also stresses the need to support the efforts of commodity dependent developing countries to diversify their exports as a means of increasing export earnings and improving the terms of trade, given the market fluctuations to which they are vulnerable. It urges developed countries that have not done so to make concrete efforts towards the target of 0.7 per cent of gross national product (GNP) as official development aid (ODA) to developing countries and recalls that external debt relief can play a key role in liberating resources to be directed towards activities consistent with the attainment of sustainable growth and development.
Along with its commitment to empowering the poor to play a full and effective role in their own development by enabling them to have a larger voice in the decision-making process, the Declaration also commits the Council to the empowerment of rural women at all levels and in all aspects of rural development. It also expresses deep concern about the devastating impact of the HIV/AIDS epidemic, which undermines efforts to eradicate poverty.

Statements
SANI ABDALLAH, Permanent Secretary at the Federal Ministry of Agriculture and Rural Development of Nigeria, said people died daily of hunger, but not because there was a shortage of food or because of depletion in the wealth of the earth. People died and suffered because of a shortage of goodwill and the commitment to act. Urgent steps must therefore be taken to give practical expression to the goals of the World Summit on Sustainable Development. Promoting rural development was a measure that would guarantee food security, create jobs and generate wealth for the rural dwellers. Agricultural productivity was a veritable tool for poverty eradication. Unfortunately, due in part to internal factors specific to developing countries, coupled with external causes beyond their control, support for rural development had suffered neglect in the hands of national Governments and international financial institutions.
The Nigerian Government had made strident efforts to promote an integrated approach to rural development through the creation of people-centered policy frameworks with policies geared toward rural productivity activities. Human development and capacity building were an integral part of these policies. So was the development of rural infrastructure such as the provision of water, energy supply, communication and transport. The New Partnership for Africa’s Development (NEPAD) was the anchor programme for achieving sustainable development in Africa. Although NEPAD was founded on the principles of ownership and responsibility on the part of Africans and their leaders, it equally provided a credible framework for cooperation and partnership with the continent’s development partners. Nigeria would continue to pursue the promotion of well-targeted, cost-effective and demand-driven programmes and services for the rural poor.
ALFREDO CHIARADIA (Argentina) said that an integrated approach to combat poverty and to promote rural development should benefit from internal cohesion. The last days had seen interesting and insightful analyses of the challenges facing individual countries and the international community in this regard, which had provided substantial food for thought. The critical element for any resolution for the problem of rural development was found in the speedy and effective resolution of negotiations at the World Trade Organization relating to agriculture, in coordination with the internationally agreed goals of the Doha Round. The present regime in the WTO discriminated structurally against developing countries. This was reflected by a state of affairs characterized by the existence of a small number of developed countries that subsidized their producers and gave them aid and a large number of developing countries united by a shared resistance to the idea of reducing their own barriers unless they benefited from the certainty of changes occurring in the structure of international trade.
If such certainty were offered, he said, developing countries would then be in a position to declare their intentions. Expectations on agricultural negotiations at the World Trade Organization were not extremely optimistic. There could be no condoning of subsidies in agriculture when such measures were banned in other industries.
NUGROHO WISNUMURTI (Indonesia) said every aspect of life in rural areas was blighted by the widespread poverty that prevailed in those parts. Social development alone could not adequately deal with and overcome this awesome challenge. Social, economic and environmental issues together must constitute the three pillars of integrated rural development. In practical terms, the infrastructure linked to the three pillars of rural development must be built up where they were missing, and strengthened where they existed. This integrated approach to rural development would only succeed if adequate resources were available. It was a cause for common concern that most developing countries continued to face serious constraints in this field. It was therefore very disheartening to note that there had been no real progress in persuading developed countries to increase Overseas Development Assistance to developing countries. Indonesia remained optimistic that the Monterrey Consensus would be implemented sooner rather then later.
One must not lose sight of the great external constraints created by external forces which hindered the developing countries in this regard. This was particularly true of the highly indebted poor countries that depended on agricultural exports for their survival. Without access to the secure and profitable markets of the developed countries, there was precious little that these countries could do to free their citizens, especially the rural poor, from hunger and poverty. Until protectionist barriers were dismantled, the future for these indebted countries would remain grim. Trade barriers worked against the stated intention of the developed world to help developing countries overcome obstacles standing in the way of their development. Indonesia therefore welcomed the recent decision of the European Union to dismantle some of the distorting aspects of the agricultural subsidy system which harmed developing countries.
MURARI RAJ SHARMA (Nepal) said that rural development had gone off the world community’s radar screen in the 1990s as globalization stole its limelight with the promise that a rising tide would lift all boats. Yet, those boats tied to the bottom have sunk, bringing more misery to the majority. Now, retracing its steps, the international community had returned to the urgent issue of development, realizing that no development would be sustainable without improving the situation of rural people and rural areas. Hunger, malnutrition, illiteracy, disease and lack of infrastructure stalked rural communities; in order to break the vicious cycle they created it was necessary to spur agriculture into producing more food and cash crops, to preserve water and forests, to provide education and health services and to build infrastructure in rural areas.
Nepal had accorded the highest priority to poverty reduction, he said, allocating nearly 70 per cent of its development budget to rural areas. An Agricultural Perspective Plan had been launched, including programmes for small farmers’ development, micro-credit for women, cooperatives, high-yield inputs and agro-based industry. Nepal had also provided grants to every village to pursue development projects of local priority and had offered specific concessions to businesses setting up industry in rural areas. Yet, the Maoist insurgency in Nepal had turned back the clock on these developments, closing schools, destroying infrastructure, shutting industries and displacing people. To defeat such forces of regression, Nepal needed to pursue a higher trajectory of growth in a manner to ensure social justice and preserve the environment, which required creating jobs and sustained incomes and developing critical infrastructure in Maoist-affected and other areas.
ALFRED U. M. DUBE (Botswana) said rural development had always been an integral part of Botswana’s planning strategies since 75 per cent of the population lived in rural areas. The National Policy on Rural Development had taken many years to implement due largely to a lack of capacity and to limited resources available domestically and from aid programmes. However, reviews showed that over the last decade Botswana had achieved considerable progress in the provision of infrastructure and services. The national road network had been built; reticulation of clean and safe water to most villages was on stream; there had been great strides in the provision of public health and education. Unfortunately, rural development had not quite achieved the intended strengthening of the rural economy. There had been limited private investment into rural areas, which would have helped to increase food production, provide rural employment and stem rural to urban migration.
A new policy had been developed in 2002 and its main thrust was to push for empowerment of rural communities through participatory planning; a diversified approach to rural development; flexible and integrative land use; reform of the land tenure system; increased productivity of the land through modernization techniques; and the creation of a conducive environment for attracting youth into agriculture. Programmes focused on creating opportunities for both wage and self employment; welfare support systems; and the provision of rural based social services and other investment critical for developing human capabilities. Botswana had also been deeply affected by the drought of the last few years and the HIV/AIDS pandemic. The HIV/AIDS situation had forced the Government to adopt a pro-active programme that focused on education and prevention, prevention of mother to child transmission, treatment, home based care and care of orphans, and access to Anti-Retroviral therapy for all citizens in need.
MOHAMED ALI AL-MALKI (Qatar) said that, in examining the United Nations efforts in past decades on behalf of the peoples and countries in the world, one could see that economic and social issues had not received their share of attention. Many problems remained unsolved; in the past 15 years, unprecedented world development had been accompanied by heartbreaking poverty and misery. According to the World Bank, the number of people living in absolute poverty would rise from 1.5 billion at the dawn of the millennium to 1.9 billion by 2015. Poor people faced many problems including lack of access to income generating opportunities, basic social services, information and technology, land, participation at national policy making centers, and suffered from high population growth and an unequal distribution of wealth.
Greater attention needed to be given to the macroeconomic policies, which led to economic stability, he said. In order to succeed in developing sustainably, new patterns for the just distribution of income needed to be established. There should be more emphasis on rural investments – where the vast majority of the poor lived – in areas such as health and education resources. Furthermore, the heavy debt burden of developing countries made them reliant upon official development aid, which was declining. Industrialized and developed countries and other development partners should increase and intensify their participation in developing countries, especially in rural areas, to accelerate development and facilitate sustainable growth for poverty reduction.
AMGAD MAHER ABDEL GHAFFAR (Egypt) welcomed the interest of the international community in rural development as embodied in this high-level segment. Agriculture and rural development were high priorities to developing countries since for most of them, agriculture was the biggest source of GDP and the biggest source of employment. In order to achieve the Millennium Development Goals, rural development needed to be given its due attention. In Egypt, programmes were being undertaken specifically for rural inhabitants to allow them to modernize their agricultural practices. The Government was also financing small-scale rural entrepreneurs. Egypt, one of the founders of NEPAD, was in charge of the area of agriculture and implementation since it had much experience in cooperation in this field. It was stressed that declining prices of commodities impeded development in developing countries. It was impossible to reach a reasonable level of savings under such international trade conditions.
Many or most developing countries remained in a vicious circle of poverty. The international community was called upon to deal with this problem and to find solutions to the consistent decline in commodity prices. On a more long-term basis, developed countries must provide some kind of assistance to developing countries facing such difficulties. Egypt called upon developed countries to implement their commitments and promises and adopt new policies to reduce subsidies on exports. The international community was also called upon to support international development institutions with technical and material assistance. Egypt welcomed the outcome of the working group on the follow-up and implementation of international summits and conferences held by the United Nations in the economic and social field. It was Egypt’s hope that this review would lead to a better state of international development by 2005. At this rate the Millennium Development Goals would not be reached.
ACHIM STEINER (IUCN – The World Conservation Union) said that experience showed that the eradication of poverty and hunger could not be addressed in isolation from the achievement of environmental stability and social development goals. Much of rural development had overlooked the cultivation of some natural resources, such as wild natural resources. Encouraging ECOSOC members to look carefully at national poverty reduction strategy plans and how they addressed natural resources as bases for livelihoods, he said that very often the concept of trade-offs need to be examined carefully as benefits for some meant harm for others. The environmental movement provided the best basis today for an example of what sustainability in terms of natural resources implied. He pledged to continue work for an integrated approach to poverty eradication and rural development.
HUSNIYYA MAMMADOVA (AZERBAIJAN) said that the Government of Azerbaijan had identified a set of priorities in the field of poverty eradication of rural development. According to Azerbaijan’s comparative advantage, the full-scale and balanced development of agriculture as an important source for employment and income generation and ultimately for the elimination of social inequality was vital. As a landlocked country with an economy in transition, Azerbaijan gave high priority to market access to developed countries. He believed that the special concerns of landlocked developing countries related to their isolation from the world market and high transit costs must be taken into account through preferential market access. Azerbaijan’s national ownership was a key endeavor to the Government and activities were undertaken through the allocation of public resources, the elaboration and implementation of investment and expenditure projects in rural areas, and the improvement of national legislation in the field of landownership and taxation.
Tax incentives had been extended to agricultural entrepreneurs which had facilitated the strengthening of the private sector and had created new jobs and income opportunities for rural households. The Government had also stressed the importance of basic education as an extremely important investment in human potential and capacity building. Health care services remained topical in the overall development process and more efforts would be undertaken to provide equal access to essential health services when adequate resources had been mobilized. The Government had also underscored the need to provide affordable and environmentally sound energy services to the rural population. Unfortunately, being a victim of aggression by a neighbouring state, significant fertile agricultural lands had fallen under occupation, with over a million refugees and internally displaced persons scattered around the region. This imposed an enormous burden on the economy and society that challenged the Government in its attempts to prevent poverty, degradation and human tragedy.
YESHEV DORJI (Bhutan) said that as a landlocked, least developed country, Bhutan faced many daunting challenges in its socio-economic development. Its extremely rugged terrain and scattered population with concomitant transportation and communications costs for delivery of goods and services made for formidable difficulties for its development efforts. Again, land-holdings were usually small and fragmented and rural poverty was invariably tied to physical inaccessibility. However, with a people centered development policy and with the support of the development partners, Bhutan had been able to make visible improvements in the quality of life of its citizens. Improving access and expanding infrastructure were among the main priorities in Bhutan’s current ninth Five Year Plan. Other important objectives were self-reliance, strengthening decentralization, giving priority to private sector development, generating employment, addressing rural-urban migration, and delivering more equitable and efficient social services.
On environmental conservation, Bhutan had adopted a “middle path”, balancing economic development with environmental conservation. It was stressed that 72.5 per cent of the total land area was under forest cover, ensuring the preservation and protection of one of the ten global hotspots of bio-diversity in the world. Bhutan remained committed to the Brussels Programme of Action for the least developed countries and called for the continued support of the international community in achieving the agreed goals. Bhutan also called on its development partners to fulfill their Official Development Assistance commitments as, without adequate assistance, developing countries would not be able to achieve the Millennium Development Goals.
PAUL YAW ESSEL (Ghana) said that the rural environment in Ghana constituted over 60 per cent of the country and was seen as the point of leverage for national economic transformation. To reduce rural poverty in Ghana, the Government was striving to comprehensively tackle all of rural society and every economic, social and environmental aspect of rural development. With specific reference to the transformation of the rural economy, the government had been striving to reduce poverty by increasing substantially agricultural production, especially of food crops, through expanded infrastructure, effective marketing and the provision of extension services. The Government was convinced that for Ghana to successfully industrialize, the process must begin by refocusing on its traditional core competency – agriculture. Consequently, policies formulated under the medium term policy framework aimed at encouraging and facilitating effective links with agro-industry, including simple gate processing.
On the social front, the ultimate objective of the social development programme was to ensure equitable growth for all Ghanaians, with a positive bias for the rural sector. The prime objective for education was to achieve near universal literacy and to enable all children to receive at least basic education. With regard to health, the Government held the view that the improvement in the general level of health did not only require an expansion and upgrading of medical facilities, but was equally dependent on securing adequate food supplies, provision of safe water and sanitation among other things. ECOSOC was also informed about Ghana’s policy objectives and initiatives related to small and medium scale enterprises and microfinance institutions. In conclusion, it was stressed that Ghana continued to be concerned by the lack of market access for its export products, trade distorting domestic support and export subsidies in developed countries as well as the decline in official development assistance.
MURAD HAMAIMA (Libya) said that rural development had been the focus of attention in Libya for a long time, especially since the decentralization of the government and the creation of popular regions. A Rural Bank had been set up, with the main objective of reducing differences between social classes and improving the living conditions of low-income families by giving loans for agricultural projects. Rural development also required the expansion of social protection programmes and health services. The promotion of women’s role in rural development was also sought by reducing obstacles facing women. Other improvements were necessary in the areas of education and scientific research, as well as investment in infrastructure and maintenance. Yet, in spite of the numerous projects carried out, there were still huge areas suffering from a scarcity of such services.
As a result of rural development, water consumption had increased dramatically, requiring the construction of dams. Moreover, soil had to be protected from erosion, desertification, salinity and global warning, which required the planting of trees and forests and the adoption of legislation prohibiting illegal grazing and deforestation. Rural development had also required the construction of a number of power plants in rural areas. Noting that the unilateral coercive measures imposed on his country had restricted the export of its products, he said that Libya had recognized the importance of becoming a member of the World Trade Organization and hoped for an expedient joining process.
MOHAMED-SALEH DEMBRI (Algeria) said this session was occurring in a disturbing economic and social international environment. All forecasts showed trends towards decline while the underdevelopment of developing countries remained a constant feature. Efforts undertaken by developing countries had not benefited from enough support from the international community. This was a tragedy, since studies had affirmed that had international trade issues been resolved, it would have been possible for developing countries to generate incomes to prevent extreme poverty. The theme of poverty had for many years been a core concern of the United Nations, having led to both international and national commitments on the part of developed and developing countries. However, reviews of Copenhagen had offered a mixed and somewhat negative appraisal. It was significant to note that the list of least developed countries had grown since then. What could be done to halt this rampant misery, he asked.
The Secretary-General’s report had clearly identified both development problems affecting rural environments and had offered pertinent recommendations. An effort had been made on his part to offer new solutions to an old problem. The report underscored the need to strengthen international cooperation and to solve current market, trade and other economic sticking points between developed and developing countries. The role played by the United Nations in the awareness campaign of poverty was monumental; however the commitments made by Member States fell far short of the needs of rural people. If inertia characterized the international community, this generation held the collective responsibility for the poverty stricken world of the future. The need for a Development Compact was stressed. If tangible results were not achieved, the international community ran the risk of dooming the United Nations.
PABLO MORAN (Peru) said that, in spite of spelling out what was needed to be done to eradicate poverty and hunger and to further rural development, the international community remained unwilling to commit the resources necessary for poverty eradication and sustainable development programmes. Programmes for cooperation between developed and developing countries should be consolidated. Assistance for development programmes should be allocated as investments in the future. ECOSOC participants should reread the Secretary-General’s statement again and consider parts three and four of his message.
This was an age of knowledge, globalization and the rule of market economics. Knowledge must become a universal commodity; globalization should be a means to the end of democratic consolidation, not the rule of transnational corporations or the rule of one state. As each representative returned to his or her home state, they should examine how their own state had lived up to its international obligations and commitments.
CARLOS MARGARINOS, Director-General of the United Nations Industrial Development Organization, said lack of progress in rural areas development was attributed to two basic factors. First, the economic activities were limited to rudimentary agricultural activities and raw materials exploitation not entering the phase of processing. Second, the rural non-farm activities were neglected. Without extending the level of agricultural and other raw materials processing on the spot in rural areas, developing countries and least developed countries in particular would remain disadvantaged and dependent on a declining process of non-processed goods and on largely agricultural rural-based economies. Unless developing countries exploited the long-term growth opportunities affected by industrial development, they would be unable to achieve the Millennium Development Goals. Emphasis needed to be placed on building up and strengthening productive capacities through micro, small and medium enterprises, as processes in which women in rural areas played an important part. The main challenge was to stimulate income-generating productive capacities with a view to promoting sustainable local markets.
UNIDO had an important mandate and provided a basic set of support services towards pro-poor economic growth through such interventions as entrepreneurship development, promotion of networking and information and communications technologies use for small-scale producers and developing sustainable sources of industrial energy for rural use among other things. The importance of implementation was stressed, and UNIDO looked forward to working closely with all Member States by building productive capacities, creating employment and supporting the evolvement of a competitive manufacturing sector, protecting the environment through clean industrial processes and by the implementation of the Convention on Persistent Organic Pollutants.
JOHN LANGMORE (International Labor Organization) said that the opportunity for productive work was as vital to human survival, security and dignity as food, water and shelter. Yet some Poverty Reduction Strategy Plans still described the goals of macroeconomic policy in terms of price stability and balance of payments equilibrium instead of employment growth or poverty reduction. A faster pace of saving and investment in rural areas was an essential component of swifter rural development and was crucial to employment growth. Historically, it was through the growth of agricultural productivity that human societies had grown and livelihoods had improved. Thus, policies promoting agricultural productivity and rural off-farm employment were of key importance. Also of importance was the use of employment-intensive rather than capital-intensive techniques for infrastructure construction. There was significantly greater scope for employment generating policies and practices through action by government, companies, communities and international institutions than generally thought; the principal requirement was a determined, sustained commitment to the goal of employment for all who wanted it.
MARIE-THERESE BELLAMY (International Confederation of Free Trade Unions), said that given the fact that the majority of the world’s poor lived and worked in rural areas, employment policies which focused on rural job creation, decent jobs, and productivity growth were key to meeting the Millennium Development Goal of halving poverty by 2015. According to ILO estimates, 1.1 billion workers were in agricultural work, of which 450 million were in waged employment. A global enabling environment was an absolute pre-requisite for stimulating economic and employment growth in developing countries and countries with economies in transition. For this purpose, she said there was a need for a sustained emphasis on employment policies with decent work, adequate wages, and an integration of occupational health and safety, and public health policies into rural development policies. She highlighted the importance in promoting a regulatory framework whereby countries ratified and implemented the relevant ILO instruments to promote decent work in the rural sector. These provisions were the ILO Declaration on Fundamental Principles and Rights at Work, ILO Convention 110 – the Plantation Convention, ILO Convention 141 on Rural Worker’s Organizations, and ILO Convention 184 on Safety and Health in Agriculture.



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