First Bienniel Over-All Review and Appraisal of Progress in the Implementation of the International Development Strategy for the 2nd United Nations Development Decade

A/RES/3176(XXVIII)View PDF

Who adopted this document and its mandates?

A Resolution of the General Assembly, published in 1974.

What subjects does this mandate have?

4 subjects

Development Strategies International Decades Programme Evaluation Programme Implementation

What’s in this document?

43 operative paragraphs

Adopts the following text of the first biennial over-all review and appraisal of progress in the implementation of the International Development Strategy for the Second United Nations Development Decade:

Revif'w and a11prnisal of proi:ress in tilt' irnpll'mt'ntation of the International Development Strateg~•

1-1 l 1 '.' .,(,

A. Attainment of !-'(oals and objectives 12-17 B. Efforts of developing countries 18-2.1 C. Performance by devel0pe,l countries 2-l-:;,_!

D. Overview 31-_,6

3~-69 A. Measures by developing countries ~8-4Y B. Measures by developed countries W-66 C. Measures by the internati0nal community 67-69

73 Resolution 2626 (XXV).

I. INTRODCCTION

It was implicit in the very concept of a biennial review, accepted in 1970, that such a review would afford an opportunity for a broad appraisal of past performance and to draw therefrom implir~tions for the future. Information about the experience of th\; first two years of the Second United Nations D~velopment Decade (1971-1972) is, as yet, insufficient to enable a full, factual and comprehensive analysis of the progress made or shortfalls encountered, or to define new goals which could call into question the ones already embodied in the International Development Strategy for the Second United Nations Development Decade.74 At the same time, the changes in qualitative perception and the suggestions for modifications of the present indicators do not justify the abandonment of efforts to evaluate quantitatively wherever this is possible. In any case the task of review and appraisal is not to analyse isolated examples of progress or to study certain indicators, but to assess over-all trends and progress in achieving integrated economic and social development. It is apparent from this assessment that the experience of the past two years remains a cause for great concern.

Since 1970, the world economy has experienced a series of monetary crises which have had severe repercussions, especially on the developing countries because of their generally greater vulnerability to external economic impulses. Moreover, significant changes have been taking place in international economic relations, particularly among the advanced countries. At the same time, the international community has become visibly more impressed with the interdependence of its common problems and, in particular, with the interdependence of different categories of problems which in the past, even when considered, were addressed separately. The changing relationship among developed countries provides the opportunity for devising new forms of international co-operation which should embrace foe interests of all countries and which should give a signific:rnt impetus to the economic and social progres~ of the developing countries. It is increasingly recognized that the present distribution of economic power in the world is imbalanced and the realization is growing that developing and developed countries share a common interest in a rational and equitable functioning of the world economy. The growing understanding of the determinants of the develqpment process should also serve as a helpful force.

~- However, judged in terms of international action since 1970, the cause of development has lost momentum. Despite the action taken by some developed countries, the net aggregate flow of financial resources to developing countries has made little progress towards the target specified in the International Development Strategy, and net official development assistance as a share of the gross national product of the developed countries, which is of critical importance, has made virtually no progress at all. Despite the expansion of the operations of international financial organizations in recent years, the tight rein exercised over their operations has meant that such operations have not expanded as rapidly as the demand for them, thus creating grave difficulties for developing countries at a moment when their need for development support is the greatest. Certain activities of some international cmporations have also given rise to concern in a number of cases. On the trade front, while some progress was achieved, neither innovations nor measures for implementation since the adoption of the Slralegy have matched expectations.

.1. The Strategy was conceived and mus1 be implemented in a dynamic and forward-looking manner. Since the adoption of the Strategy new preocc.·upations and new concepts affecting the ,kvelopment process of developing countries have emerged wl;ilc others have assumed greater urgency. These include the~ persistent inflationary pressures in the principal developed countries and the monetary disturbances, affecting in particuhr ihe ,kveloping countries, the concern for the preservatioo d the human environment and its relation 1o development, the interdependence of development and population factors, Oho problem of mass poverty and unemployment and income

14 Resolution 2626 (XA'V). distribution in many countries, the impact of multinational corporations, the threat of a world food shortage and the potential exploitation of mineral resources of the sea-bed outside the limits of national jurisdiction.

In spite of the significant efforts made by developing countries, their average rate of economic growth actually showed a decline from ,the level reached towards th~ end of the past decade. This average, furthermore, conceals wide disparities in the rates of economic grov. th achieved by various developing countries. Even the mo,kst beginning towards narrowing the gap in living standards between developed and dcvdoping countries, stipulated in the Strategy, is not yet in sight.

The d1evclopment objective must have a central place in the constellation of great issues to which the international community should urgently seek effective and cnnsistcnt solutions. International peace and security, based on justice and on the principles of krritorial integrity, self-determinati"n and fn:cdom from all external pressures on sovereignty and fundamental freedoms and other principles embodied in th..: Charter C1i tile United Na,ions, :ire neces,ary conditions for the social :tnd economic progress of all countries. The extension of the relaxation of tension to .di regions of the world on the basis of the aforementioned principles would thus enable all countries, irrespective of their social and economic system or level uf development, to benefit from this process and utiliLc it for the realization of the goals :rnd objectives for economic and social progress of the Second United Nations Development Decade. Prace, security, freedom from all forms of extcrn:il pressure and coercion and a general climate of d,'tcntc could and should create greater opportunity for development support for the benefit of developing countries. The accelerated development of the developing countries will, in turn, contribute to the promotion of greater stability and to the strengthening of world peace and security.

Parts of the developing world arc still subjected to colonialism, racial discrimination, apartheid and foreign occupation, and other forms of external pressure on their sovereignty and fundamental rights, with harmful effects on the development efforts of the peoples and countries concerned. The task therefore consists of removing, without delay, all these negative factors.

Urgent action must be taken to implement those policy measures adopted in the Strategy that have not been implemented so far. It is essential that developed countries display the necessary political will to accord higher priority to the implementation of these measures so as to provide a framework conducive to the accelerated progress of the developing countries. As part of their primary responsibility for development, developing countries should maintain and reinforce their vigorous policy measures.

The central purpose remains to diminish the gross inequalities in economic development and social welfare that have widened among, and in some cases wi·thin, the nations of the world and to attack poverty, particularly in ways that improve the condition of the poorest groups within the poor countries. Such i, the spirit of the International Development Strategy that the States Members of the United Nation-; unanimously adopted in 1970, and this is also the spirit th:,t has oriented its first review and appraisal.

There are very substantial complementaritics among the major goals and objectives of the International D~velopm~nt Strategy. Agriculture, which is at present the predominant sector of activity in most developing countries ;tnd which 1s currently of great concern to many of them, has to be expanded, diversified and modernized. The transformatorv role of industry on the development of agriculture, transpo;t and other sectors and its abiltty to absorb a greater proportion of the growing labour force has to be enhanced. Development includes a multiplicity of objectives and programmes which. if properly integrated, will bring abont increased output as well as improvements in employment, income distribution, education, health and nutrition. Man is both producer and consumer; his well-being is both a determining factor in, and an end 'result of, development. These dimensions of development

require a unified approach in planning and a political will to bring about the necessary stcuctural and institutional changes in the light of the circumstances prevailing in the countries concerned. The developing countries that make these changes need not only encouragement but also appropriate international assistance.

Against the background outlined above, the first exercise of over-all review and appraisal has been undertaken on the basis of a general evaluation of the record concerning the attainment of the goals and objectives of the International Development Strategy and the implementation of the policy measures in this regard, in the light of the efforts of developing countries and the performance of developed countries. Thi, exercise should necessarily lead to further defining the policy measures needed to carry out the provisions of the Strategy. It could, moreover, facilitate the elaboration of the Charter of Fconomic Rights and Duties of States.76

II. GENERAL EVALUATION A.

The balance-sheet of the first two years of the Second United Nat ions Development Decade shows that development problems, far from being solved, have become increasingly acute. In many cases there bas been a setback in comparison with the situation prevailing in the latter part of the past decade, though the recent economic boom in the industrialized countries has brought at least some temporary advantages to some developing countries. The main features of the record concerning the attainment of the goals and objectives of the International Development Strategy are enumerated in paragraphs 13 to 17 below.

Preliminary evidencc7G suggests that the average annual rate of growth of the gross domestic product of the developing countries during the first two years of the Second United Nations Development Decade approximated to an annual average of 5.5 per cent which was also the average or the First United Nations Development Decade ( 1961-1970). This is still some 10 per cent below the 6 per cent target for the Second Development Decade. The rate of growth of per capita gross domestic product of these countries was not much above 2.5 per cent. The over-all growth achievements varied widely region by region and within regions. Many developing countries, in particular the least developed countries, experienced lower rates ( see table 1 ) .

Table 1. Gross domestic product (International Development Strategy target 1971-1980:

6 per cent per annum)

Average annual

Developing countries (total)

5.5 5.4 5.5 Latin America 5.6 6.3 6.4 Africa 4.8 4.1 5.0 8.1 10.4 West Asia 10.8 Southern and South-East Asia 5.0 3.4 3.3

75 United Nations Conference on Trade and Development resolution 45 (Ill) of 18 May 1972. See Proceedings of the United Nations Conference 011 Trade and Development, Third Session, vol. I, Report and Annexes (United Nations publication, Sales No.: E.73.II.D.4), annex I.A.

76 Quantitative statements included herein are based on the provisional data contained in the World Economic Survey, 1972 ( United Nations publication, Sales No.: E.73.TT.C.1 ), as subsequently updated by the Centre for Development Planning, Projections and Policies of the United Nations Secretariat in November 1973, and on projections relating to population which suggest an annual rate of inorease in the population of developing countries of over 2.5 per c.ent

Unfavourable weather aggravated the structural deficiencies in the agricultural sector. Agricultural production suffered a serious setback in a large number of countries; particularly in developing countries the rate of expansion was far below the target of 4 per cent spccificcl in the Strategy ( sec table 2).

Table 2. Agrirnltural production \ International Development Str:1tegy target 1971-1980:

4 per cent per annum)

Developed market economies 2.5 6 Centrally planned economies

-1 3.0 2 Developing countries 2.8

I 5. Manufacturing output expanded at a rate approximating the target rate of 8 per cent suggested in the Strategy (see table 3). The industrial base is, however, still too small in most developing countries for self-sustained expansion to meet the needs of either domestic or external markets. Moreover, the linkages between industry and other sectors of the economy remain far from adequately developed.

Table 3. Manufacturing production

(International Development Strategy target 1971-1980:

8 per cent per annum)

Average annual

Developed market 6.7 economies 5.8 1.3 Centrally planned economies of Eastern Europe 8.6 8.4 7.3 Developing countries 6.4 7.6 8.1

tariat.

The quantum of exports of developing countries e.~- panded at an annual rate significantly below the t:irget of somewhat higher than 7 per cent as specified in the Strategy. For most developing countries, the rate was only about 5 rer cent, significantly lower than the rate achieved in the p:ist Decade. The quantum of imports also was markedly below the Strategy target of an expansion of somewhat less than 7 per cent. In terms of United States dollars, in 1971 allli 197:!. while exports of developing countries increase{-! at the average rate of 15 per cent, their imports increased by 12.8 per cent. The terms of trade for most developing countries deteriorated in 1971 after a record of over-all relative stability throughout the preceding Decade, and did not recover fully in 1972 (see table 4).

Redistribution of income has not mad<" sufficient progrcs\ in many developing countries. Unemployment continues tC' loom large. Education and health facilities are increasing but are still far short of needs. Housing shortages remain acute'. Malnutrition is widespread. All these elements have cxace1- bated the problem of mass poverty in many developing coun tries.

Average annual

Quantum Exports 6.6 6.5 Imports 5.5 6.2 Value 7.0 12.4 Exports Imports 6.4 14.3 Terms of trade"

-2.0

B.

I 8. The experience of developing countries in national planning has been steadily increasing. Their planning mechanisms are strengthening with the passage of time, and in some cases their influence in the most important economic and social decisions has increased. Successive generations of development plans reflect continuing improvements both in techniques of plan formulation and procedures for plan implementation. A number of current development plans also indicate a growing awareness of the need to pursue, in the light of their circumstances, patterns of development in which the expansion and structure of production are attuned to resolving such problems as mass poverty and unemployment. Much, however. still remains to be done in this regard.

Institutional changes covering a wide spectrum of productive activity have been undertaken in developing countries. With respect to natural resources, institutional changes have been introduced in recent years to achieve more efficient resource utilization and greater participation by the State in resource development. In some developing countries, nationalization, the association of the State with foreign enterprises and the modification of concessions and regimes for •the development, marketing and transport of natural resources have been the principal means employed in order lo effect such changes. Considerable emphasis has been placed on land reform in rrcent years, though actual experience in this regard has not been very impressive so far. The need for renewed attention to land reforms that are in consonance with the socio-economic requirements of the countries concerned remains great. Other fundamental changes in the traditional economic and social structures and institutions are also essential to remove obstacles to. and accelerate the pace of, social progress and economic development. Of particular importance is the need to eliminate the subsUintial under-utilization of production capacity in manufacturing industries and to orient the pattern of industrial production towards meeting the requirements of both employment and mass consumption. The beneficial role that a suitably designed construction activity can play has not, as yet, been

fully explored in developing countries.

Developing countries have adopted a wide array of measures aimed at the development of their human re~ources. Many developing countries have defined their demographic policies·. while some consider a rapid population growth desirahle for attaining their development objectives, others recognize the need for a reduction in the rate of population increase for the same purpose. Jn some countries, significant reductions in birthrates have taken place. The capacity to sustain adequate programmes for making avai!al:,le means of family planning remains limited in those devduping cnuntries that require them in the context of their demographic pc,licies. There has been progress towards spreading the benefits of e,,onomic growth, especially through expansion of educational and health facilities, lowcost housing for the poorer sections of the population and other improvements, but much remains to be done, especially General Assembly-Twenty-eighth SeHion

Table 4. Change in trade levels of developing countries

petroleum e:rportus)

Average annual from prec,ding

6.1 5.8 4.8 5.1 3.1 5.8 4.7 1.7

17.7 7.1 4.7 20.9 11.4 6.8 13.6 10.2 +2.6 -8.5 +6.1

in improving the provision of these facilities in rural areas. Furthermore. efforts to orient educational systems towards development priorities need to be strengthened.

2 I. The developing countries have generally improved their efficiency with regard to the use of development resources. Moreover, the measures employed in developing countries to mobilize domestic financial resources for development have continued to be strengthened. The ratio of gross domestic saving to the gross domestic product of developing countries has shown a significant increase. Expansion and improvement of tax systems and related measures have made significant contributions, but still more vigorous action is required in order to raise the saving ratio at a faster rate. As many developing countries are heavily dependent on exports, the pace of expansion of exports continues to exercise an important influence on the saving ratio.

Developing countries have made significant efforts to promote trade among themselves and to establish or strengthen regional, subregional or interregional economic cooperation and integration. There is growing recognition that action in this area can help to improve the economic situation of developing countries. The need for support and perseverance in such programmes of co-operation :ind for the devising of new and more effective approaches remains undiminished.

The economies of developing countries generally remain sensitive to external conditions and, therefore, to the policies and actions of developed countries. Thus, the s11ccess of bold and far-reaching efforts by developing countries to accelerate their economic and social progress remains contingent upon the availability of favourable external factors. Inadequacies and ~hort-comings in the terms of trade, tramfcr of technology, technical and financial assistance and in the structure of world trade have adverselv affected the economies of developing countries. The present ;tructure of world trade has hampered progress towards a more rational and equitahle international division of labour. An assessment of the performance of developed countries in terms of their contribution to improving the economic environment for the accelerated progress of developing countries is therefore not only pertinent but also crucial.

C.

Three years after the adoption of the International Development Strategy, only some developed countries have demonstrated a welcome sense of commitment to the provision~ of the Strategy; nthcrs have not yet done ~o and have as yet to introduce major policy changes in its support. The preoccupation of many developed countries with the readjustment of their mmual relations should not result in their according a lower priority to the development problems of developing countrie:-; and to -the. need for implementing rbe policy measures embodied in the Strategy.

While some progress has been made in designing practical measures to expand the international trade of developing countries, their imp,,ementation has remained unsatisfactory and leaves room for further improvement. The least developed countries in particular have not benefited from any significant measures in the fie-Id of trade. In this connexion the following should be noted:

The international community reached no agreement on a set of general principles on a pricing p0licy and access to markets for commodities by the date set in the Strategy.

The only new major achievement with regard to primary commodities was the conclusion of the International Cocoa Agreement, 1972,•• the preparation of which extended over more than 16 years and which has not yet been ratified by all major importing countries. Arrangements made by a few countries for the financing of buffer stocks arc also worth mentioning. Several primary commodities of interest to a large number of developing countries still suffer from a lack of access to external markets and from a lack of an adequate and broadly based, non-<liscriminatory pricing policy by developed countries. Intergovernmental consultations on oommodities of special interest to developing countries, in particular natural materials facing competition from synthetics, are currently under way. Until now, however, practical measures to improve the competitive position of exports from developing countries of such natural materials have so for been extremely limited. In some cases, the competitive position of some primary commodities has been directly threatened by increased production of synthetic materials.

Although the arrangements introduced by developed countries within the generalized system of preferences represent a break-through in the traditional concept of international trade and co-operation, their benefit to developing countries has so far been of a modest nature, particularly in the case of the least developed countries. This is due, inter alia, to the general non-inclusion of items falling within chapters 1 to 24 of the Brussels Tariff Nomenclature, the exclusion of a number of items in chapters 25 to 99 and also the introduction in these schemes of safeguard clauses, ceilings and other non-tariff barriers and clauses. Although some developed countries have taken encouraging steps, not all of them have as yet implemented the generalized system of preferences. Even the limited bene11ts accruing to developing countries from this system are in danger of being eroded both by preferential arrangements among developed countries and by the prospects of reductions in trade barriers among them following the multilateral trade negotiations within the framework of the General Agreement on Tariffs and Trade. In this connexion, the recognition of the Declaration of Ministers in Tokyo on 14 September 1973 that the generalized system of preferences should be maintained and improved is worthy of note. The stated intention of the Contracting Parties to the General Agreement on Tariffs and Trade "to secure additional benefits for the international trade of the developing countries" must be fully taken into account.

The provisions of the Strategy to maintain a standstill, particularly on tariff and non-tariff barriers on manufactured and semi-manufactured products, have not been fully and strictly observed by some developed countries. Though some quantitative restrictions have been relaxed or removed over the past two years by certain developed countries, new nontariff barriers to trade have also been introduced. Such increasing resort to non-tariff barriers to trade is a matter of serious concern. The case of textiles provides a particularly notable example of such barriers.

The trade between socialist countries of Eastern Europe and developing countries continued to develop. The value of trade continued to increase in the first years of the Second United Nations Development Decade, but since there had been a marked increase in the last two years of the 1960s, the rate of increase in the first two years of the 1970s was lower. While the share of manufactures and semi-manufac-

77 See United Nations publication, Sales No.: E.73.11.D.9, p. 7. tures in the imports of these socialist countries from the developing world is as yet small, an encouraging increase is

taking place. Similarly, the number of their trading partners among developing countries is increasing. New trade arrangements with developing countries have been entered into. Improvements to bring about greater flexibility and multilateralization of payments with the co-operation of all parties

concerned are being sought.

On the whole, developed countries have made slower, and more limited and disappointing progr~,s than expected in their efforts to implement the provision in the Strategy that they will, through joint or unilateral action, accord priority to reducing or eliminating barriers to the export trade of the developing countries.

The progress towards the attainment of the key targets of the International Development Strategy for the transfer of financial resources to the developing countries has been disappointing. The fulfilment of these targets, within the timelimits specified, is of vital importance for the attainment of the goals and objectives of the Strategy. While some developed countries have enlarged their financial contributions, the over-al! effort has been disappointing and the availability of external financial resources has remained far from commensurate with the needs of developing countries. In this respect the following should be noted:

The net aggregate transfer of financial resources from the developed market economies to the developing countries, as a proportion of the gross national product of these economies, rose from 0.71 per cent in 1970 to 0.74 per cent in 1971, and fell to 0.69 per cent in 1972, but remained well below not only the target of 1 per cent but also the level reached in 1961-namely 0.86 per cent. Official development assistance, which is designed to be concessional and is in the view of most countries the critical component of the net transfer, rose on!y nominally from 0.33 per cent in 1970 to 0.34 per cent in 1971 and slipped back to 0.33 per cent in 1972•8-as against the level of 0.50 per cent reached in 196 I-while the target for such assistance is 0.70 per cent. Unless current trends are reversed, neither of these targets is likely to be reached by the dates envisaged in the Strategy; these trends point to particularly discouraging prospects in regard to the official development assistance target. The over-all proportion of grants to loans in official development assistance fell marginally over the two years but the grant element of loans increased slightly. Although some developed countries maintained a high proportion of their official development assistance in grant form, on the average development loans were on slightly harder terms in I 971 than in I 970. Some developed countries have already extended their assistance on an untied basis or have recently taken steps towards untying, but on the whole there has been little progress towards the goal of untied loans.

( b) The transfers of financial resources from the socialist countries of Eastern Europe increased substantially during the first years of the Second United Nations Development Decade, although the amount actually disbursed on a year-to-year basis is not known. These transfers have been provided on fairly soft terms.

( c) In the face of a level of official development assistance well below their needs, developing countries have increasingly resorted to commercial loans at higher cost. This has meant that the burden of external indebtedness is becoming more pressing. Servicing the public debt of the developing countries absorbed about 10 per cent of their export earnings in I 971; the debt-servicing problem of some of these countries was particularly serious. This situation will continue to deteriorate and the ratio will rise rapidly unless countermeasures are urgently taken.

The attainment of the Strategy objectives relating to the earnings of developing countries from invisible trade continues to encounter difficulties. Although there was a slight in-

78 Based on data provided by the Organisaition for Economic Co-operation and Development on flows to the developing countries as defined by ,the United Nations; grants by voluntary agencies are excluded.

crease in relation to general cargo shipping, the over-all share of developing countries (excluding ships registered under flags of convenience) in world shipping tonnage declined from 6.3 per cent in 1970 to 5.5 per cent in 1972. Nevertheless, the tonnage owned by developing countries increased in the same period from 20.4 million dead-weight tonnage79 in 1970 to 22.3 million in 1972. The sharp increases in freight rates io 1971, which were not welcome to shippers of any country, aggravated the balance-of-payments problems of developing countries.

While studies have been made or initiated in the United Nations that have further identified restrictive business practices affecting the trade and development of developing countries, the concrete results envisaged in the Strategy have so far proved elusive. Restrictions on the trade and development of these countries continued to be experienced via some foreign marketing and distribution arrangements and certain activities and business practices of some transnational corporations and other enterprises of developed countries.

Some significant and concrete steps have already been taken in designing and in some cases in adopting measures in favour of the least developed countries, as later defined at the third session of the United Nations Conference on Trade and Development, through both bilateral and multilateral channels of assistance. Such cases include the decision, within the United Nations Development Programme, to revise its indicative planning figures in a way that will benefit these countries, and the decision taken by some countries to earmark funds for them. However, the measures that have been adopted up to the present have not been commensurate with the needs of these countries.

As regards the special problems of the land-locked developing countries, progress was achieved in some cases, in particular in the improvement of administrative procedure;, mainly through co-operative action with other developing countries. Unfortunately, however, three years after the adoption of the International Development Strategy it is both necessary and important to implement the programme of action devised by the United Nations Conference on Trade and Development at its third session in order to enable the landlocked developing countries to overcome their special difficulties.

Questions relating to the transfer of operative technology to the developing countries have continued to be studied in intergovernmental forums, but significant action has not been taken at the international level since the adoption of the Strategy. Public transfers of technology on concessional terms have as yet been limited. Moreover, private transfers of technology, which are responsible for the bulk of the transfers, generally continue to follow traditional market practices. In too high a number of cases, such transfers have taken place on terms that are inconsistent with the development objectives of developing countries, with adverse effects on the technological infrastructure and the balance of payments of the developing countries concerned.

Adjustment measures in developed countries have been recommended in a number of decisions taken at the international level. However, most developed countries have not as yet adopted measures specifically designed to allow the use of adjustment assistance to industries, firms or workers that are, or are threatened to be, adversely affected by increased imports and thereby to create greater market opportunities for developing countries and a more rational international division of labour.

D.

The general evaluation set out in paragraphs 12 to 32 above suggests that the International Development Strategy remains much more a wish than a policy. It has not yet taken hold with anything like the force needed. Generally in the

1a See United N111tions Conference on Trade and Development, Review of Maritime Transport, 1972 (TD/B/C.4/106), paras. 36-39 and table 6. Equivalent figures in gross registered tonnage: 14.S million gross registered tonnage in 1970 and 15.9 million in 1972; 6.7 per cent in 1970 and 6.1 per cent in 1972. developing countries recognition of the complementarities among the major goals and objectives of development and of the need for economic growth to be accompanied by qualitative and structural changes in society as laid down in the International Development Strategy has not yet been adequately reflected in their development programmes and policies. These changes include, inter alia, building into the development programme of each country measures for spreading the benefits of economic growth and for overcoming the under-utilization of production capacity as well as the orientation of educational systems towards development priorities. It is obvious that top priority should be given in programmes to social and economic solutions which are truly sound, far-reaching and integral. These solutions are implicit in a correct concept of development which, starting from internal structural changes necessary in the light of the special characteristics of each country, encompasses all the key sectors whose balanced growth is essential for the achievement of a self-sustained growth of national economies. These structural changes, which are a prerequisite for any integrated development process, include, inter alia, the control of and sovereignty over natural resources and the modification of land tenure systems, as well as other measures as required in order to promote independent self-sustaining economic growth and social justice. This process is inseparable from another process of a social character which, in conformity with national plans and priorities, calls for the raising of employment rates to the highest possible level, income redistribution. combating the problems of expatriation of local capital and the brain drain, and the over-all solution of problems such as health, nutrition, housing and education. Any national endeavour to achieve truly dynamic, effective and independent development presupposes an active and democratic participation of the people. The developing countries that adopt measures of this kind should receive due support from the international community. The necessary international co-operation has been inadequate.

The attitude of some developed countries, as well as the unacceptable practices of those transnational corporations that infringe the principle of sovereignty of developing countries, did not help in creating a situation suitable for the purposes of the International Development Strategy. Although there has been a slight increase in the over-all flow of official resources for the developing countries, as a percentage of the gross national product of developed countries it has actually remained stagnant and still insufficient to meet the needs of the developing countries. Furthermore the existing structure of international trade has restricted the growth of exports of the developing countries. Mention should also be made of the internal difficulties caused by the inflationary effect of the rising costs of imports. In a number of cases the already heavy burden on the balance of payments caused by remittances for payments of profit of private foreign investment and for debt servicing has been increased, among other reasons, as a result of currency realignments. The monetary crisis has also adversely affected the growth of international trade.

A more in-depth examination than has been possible at this first review is needed to determine fully the causes of shortfalls in achieving the International Development Strategy targets. One major reason for the shortfall in the over-all growth rates of the developing countries was the failure in I 972 to increase agricultural production. A large number of developing countries experienced actual decreases in the output of agriculture, which bulks large in the economies of most developing countries in spite of their efforts towards industrialization, which is generally accepted as an essential requirement for their development. Some developing countries also experienced difficulties in making progress towards the goals of the Strategy, including higher levels of employment and better distribution of income. In some cases, assistance for development needs was diverted to meet consumption requirements.

Most developing countries have embarked upon economic development planning on the basis of nationally detennined priorities. This should assist in attracting and committing assistance to speed development. The further establishment of appropriate institutions and the endowment of human resources with professional and technical skills are essential

pre-conditions for the administration and effective use of national resources. The building of an economic and social infrastructure can be hastened by appropriate technical assistance. Such action is important if the targets of the Second United Nations Development Decade are to be met by most developing countries.

III. FURTHER ACTION

International action to achieve the goals and objectives of the International Development Strategy is part of the continuing effort of the world community to assist in the economic and social progress of developing countries in the context of a rapidly changing world situation. Since the adoption of the Strategy, several developments have taken place on the international economic scene which have a direct bearing on the achievements of the goals and objectives as well as the implementation of the policy measures embodied in the Strategy. The discouraging experience of the first two years of the Second United Nations Development Decade not only makes it urgent to implement the existing targets and policy measures of the Strategy, but also underlines the need for

further action by developing and developed countries in various fields. Thus, existing measures should be adapted and new ones formulated to offset the shortfalls in achieving the goals and objectives of the Strategy and to keep it responsive to emerging conditions. It is therefore essential not only to implement the policy measures agreed upon but also to seek new areas of agreement, widen the existing ones, evolve new concepts and seek agreement on additional measures within a time-bound programme. The aim should be to establish new structural relationships between developed and developing countries on the basis of equitable co-operation and mutual benefit. Developing countries, mindful of the desirability of self-reliance, should continue to exert vigorous efforts for their accelerated progress towards self-sustained and integrated development. At the same time, in the spirit of global partnership and mindful of common interests, developed countries should exert equally vigorous efforts to bring their policies and priorities into line with the provisions of the Strategy; this should be facilitated by further normalization of international relations. Developed countries should reconsider the reservations they expressed at the time of the adoption of the Strategy, with a view to withdrawing them, and help to make the Strategy an effective instrument of international cooperation for development. Developing and developed countries alike have the responsibility to enhance and preserve the human environment in consonance with the requirements of development. The collective efforts of the world community to implement the Strategy should help to elaborate further the economic rights and duties of States. It is necessary to respect the inalienable and undeniable principle that each country has the right to adopt the economic and social regime it considers appropriate for its advancement, to reaffirm the vital importance of the full exercise of national sovereignty over natural resources in the interests of development and in accordance with the objectives of the Strategy and to proclaim the right of each State to exercise control over its natural resources and exploit them in accordance with the interests of the country. Governments of both developed and developing countries should continue to mobilize public opinion for the cause of development by all the means available to them. It is in this spirit, and especially bearing in mind that the progress of independent development of developing countries can be given .;onsiderable momentum by requisite and efficient support on the part of developed countries, that areas of

further action by these two groups of countries are identified in sections A and B and by the international community in section C below.

A.

Developing countries should improve their national planning. They should adapt their planning methodologies in order to launch coherent and integrated national development plans that would judiciously incorporate both economic and social objectives. They should particularly take into account the interests of their lower income groups and the need for the widest possible participation in development efforts. Development goals and objectives should be clearly defined in such plans so as to steer the country's economy towards its desired level and pattern of development in a rational and mutually supporting manner. Developing countries should evaluate at periodic intervals the progress achieved in the implementation of national plans. Systematic efforts should be made to improve their statistical information.

Developing countries should carry out the necessary economic and social reforms and take all measures needed to remove impediments to their progress.

Co-ordinated policies and measures should be urgently

adopted within the context of over-all economic national planning to resolve the current problems of agriculture, the predominant sector of activity in most developing countries, with a view to improving production and income in the rural areas. Developing countries should intensify and sustain meaningful agrarian reforms in order to improve, inter alia, land-tenure systems, whenever appropriate. 'fhey should also strengthen, whenever appropriate, the role of co-operatives in agricultural production. In the context of the requirements and priorities of the countries concerned, appropriate attention should be paid, moreover, to water management, expansion of irrigation facilities, development of high-yield seeds suited to local conditions, the fullest application of labour-intensive methods of agricultural production and over-all modernization of the rural areas.

CONTENfS l. INTRODUCTION

GFNERAL EVALUA110N III. FURTHER ACTION

ArrAINMI:NT or- GOAi s AND OB.JECTI\'ES

Percentage change rate of rhange from preceding year (percentage)

1961-1970 1971 1972 SnL"RCE: JVorld Eco,w1111·c S1,rt·ey, 1972 and the Centre for Develop-, ment Planning, Projections and Policies of the United Nations Secre• ta, iat.

Average annual Pcrccntaqr clurng1• rate of cliangc from pn·cedina year (percentage)

1961-1970 1971 1972 SoUHCE: rVorld Economic Su,-1.•ty, 1972 and the Centre for Development Planning. ] 1rojections and Policies of the Unitl"'d Nations Secretariat.

Percentage changr rate of change from p,-eccding year ( prrcentaq,)

1961-1970 1971 1972 SOURC£: JVorld Economic Survty, 1972 and the Cer1tre for Development Planning, Projections and Policies of the United Nations Secre~

Developing countries ( excluding Developing countries (total)

Percentage clrange Percrntage change rate of change from preceding ratr of change (percentage)

·sear (percentage)

11ear 1961-1970 19Cl-1970 1971 1972 1971 1972 SOUR CF.: Centre for Development Planning, Projections and Policies of the United Nations Secretariat. • Provisional data. EFFORTS OF DEVELOPING COUNTRIES

PERFORMANCE HY D[VELOPfD COUNTRHS

0vERVIEW

MEASURES BY DEVELOPING COUNTRIES

MEASURES BY DEVELOPED COUNTRIES

MEASURES BY THE INTERNATIONAL COMMUNITY

Who adopted this document and its mandates?

What subjects does this mandate have?

What’s in this document?

B.

C.

D.

A.

Table of contents