GLOBALIZATION, COMPETITION, COMPETITIVENESS AND DEVELOPMENT

UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT GLOBALIZATION, COMPETITION, COMPETITIVENESS AND DEVELOPMENT High-level segment 44th session Trade Development Board 23 October 1997 UNITED NATIONS York Geneva, 1998 Notes designations employed presentations material imply expression opinion whatsoever part Secretariat United Nations legal status country, territory, city area authorities, delimitation frontiers boundaries. accounts statements high-level segment compiled basis transcriptions original statements interpretations. prepared sole responsibility UNCTAD secretariat. TD//44/20 iii PREFACE rapidly increasing economic interdependence countries characterised globalization phenomenon decade manifested growing participation developing countries international trade capital flows - improving global division labour allocation savings investment. Sound stable macroeconomic policies outward-oriented trade policies important country-level factors change. globalization driven enterprises seeking profits earn ruthless competitive drive ignores borders seeks exploit sources competitiveness - labour costs, capital costs, raw material costs, locational advantages, presence partner firms factors - markets choose compete. exposure competitive pressures international trade influx foreign direct investment stimuli improved competitiveness, Governments recognised , creating conditions enterprises compete home , time bear broader social economic objectives firmly mind. address policy conundrum UNCTAD organised High-level Segment Trade Development Board, present volume comprehensive account. morning session devoted discussion competitiveness achieved, role competition law policy , consequences search competitiveness, employment growth development, countries marginalised global economy facing risk thereof. reader form judgment successfully met objectives, part debate rich rewarding, strong emphasis importance domestic policies, including competition policies, making globalization beneficial . Moderator Segment, Minister Jan Pronk Netherlands, put , participation world economy , sufficient, condition sustainable human development society. key international competitiveness ability players benefit greater efficiency trade practices, transaction costs. area advent technologies planetary networks Internet radically affect relative advantages countries enterprises. iv respect, emergence electronic commerce represents major challenge, unprecedented source opportunities, developing countries enterprises, afternoon session focused challenge. proposals (emanating United States, European Union, Japan OECD ) tabled "global framework electronic commerce", important promote understanding proposals developing countries economies transition contribute rapid production positive global agenda electronic commerce impact trade development. important multifaceted endeavour, includes policy, economic, regulatory technical aspects. productive action-oriented reflection electronic commerce require mobilization civil society, including Governments, business sector, -governmental organizations academia. launching "Partners Development" announcement, High-level Segment Trade Development Board, meeting held Lyon, France, 8 13 November 1998 fits perfectly debates High-level Segment. long history, cultural wealth openness international cooperation, Lyon ideal place inaugurate working economic social sector United Nations, show confidence imagination resourcefulness parts societies. , mind, exciting United Nations UNCTAD move millennium. Rubens Ricupero Secretary-General UNCTAD CONTENTS Page Introduction ........................................................... 1 Part : Globalization, competition, competitiveness development ....................... 3 1. Opening address .............................................. 3 2. Reports discussions Trade Development Board ....................... 8 3. Presentations panellists .............................. 17 4. Follow- discussions ..................................... 42 Part : future competition perspective electronic commerce ............... 73 1. Presentations panellists ................................ 73 2. Follow- discussions ....................................... 90 Part : Partners Development .............. 119 Globalization, competition, competitiveness development 1 INTRODUCTION ninth session United Nations Conference Trade Development, held Midrand, South Africa, 27 April 11 1996, adopted “ Partnership Growth Development” “Midrand Declaration”. “ Partnership Growth Development”, regular session Trade Development Board include “ segment ... deal substantive policy item view attracting high-level participation. Personalities public, private/business academic sectors areas related UNCTAD’ work invited attend.” forty-fourth regular session Board held 13 23 October 1997, high-level segment held day session. theme selected high-level segment “Globalization, competition, competitiveness development”. morning session segment devoted panel discussion selected theme, part afternoon session devoted panel discussion related topic, “ future competition: perspective electronic commerce”. Accounts panel discussions parts publication. “Midrand Declaration” states “ Secretary-General UNCTAD convene meeting actors development advise enhance participation civil society UNCTAD build lasting partnership development -governmental actors UNCTAD”. meeting Partners Development centre theme “Markets development”, place Lyon, France, November 1998. Preparations meeting launched part afternoon session, statements connection launching reflected part publication. afternoon session high-level segment held jointly Committee General Assembly York videoconferencing facilities, constituting United Nations joint intergovernmental meeting Geneva York. Globalization, competition, competitiveness development 2 Part GLOBALIZATION, COMPETITION, COMPETITIVENESS AND DEVELOPMENT 1. Opening address . Rubens Ricupero, Secretary-General UNCTAD explain chose High-level Segment subject relationship globalization, competition, competitiveness economic development. year, main subject Segment problem investment, efforts arrive multilateral framework investment. year, central problem globalization, competition, principal driving force globalization process today precisely search enterprises profits worldwide, search firms pursue strategies exploit sources competitiveness markets choose compete. , , hand advances technological progress, greatly increased scope international division labour factor mobility, liberalization world trade rounds multilateral trade negotiations. widest sense competition means survival fittest, competition kills competition. Competition systemic issue heart discussion problem globalization trade problematique general. broad recognition government intervention maintain markets structurally operationally competitive. globalization liberalization lead competitiveness development, evidently accompanied competition policies laws prevent situation elimination tariff - tariff restrictions trade negated firm-imposed barriers competition government-imposed distortions free competitive Globalization, competition, competitiveness development 3 markets. true, economists argue, competition generate static efficiency gains short run, Governments decide types market structures suited economies order obtain dynamic efficiency gains long term. Similar issues arise global level connection , , protection intellectual property rights. Competition policy laws account specific development features constraints countries levels development compatible domestic policy objectives instruments. global level, rapidly increasing economic interdependence countries manifested growing participation developing countries international trade capital flows, improving global division labour allocation savings investment. year' Trade Development Report pointed , asymmetries globalization fact liberalization world economy proceeded balanced . , trade liberalization proceeded slowly products developing countries competitive. contrast, restrictions removed freedom movement capital, industrialized countries comparative advantage. Globalization spawned perception differences industrial policies create distortions trade policies brought multilateral regional disciplines. increased mobility productive resources led concern extended broader social, fiscal environmental issues. , policy-makers tend view adhering effectively enforcing international norms, countries creating unfair competitive advantages attracting investment competing international trade. , argument frequently raised , direct result Uruguay , areas norms, subsidies, problems trade-related investment measures (TRIMs), scope freedom industrial trade policies government narrowed, longer tools development kind policies 1950s Globalization, competition, competitiveness development 4 1960s 1970s Asian Latin American countries. confluence factors led countries seek operational policies ensure benefit efficiency gains liberal trade investment regime, coupled deregulation privatization, offer, time ensuring broader social economic objectives compromised. challenge facing design policies permit liberalization trade investment preserving ability pursue broader goals. call broader concept competition policy laws national level stronger international cooperation case . background mind UNCTAD secretariat designed morning' part High-level Segment. discussion manageable proportions, Globalization, competition, competitiveness development 5 suggested morning' session concentrate closely related questions. question developing countries succeeded achieving competitiveness specific sectors industries, policies conducive success , exposure international competition sufficient, active policies promotion competitiveness question concerns precisely role competition law policies. role policies played establishing conditions successful integration developing countries economies transition global markets question extent success achieving international competitiveness positive consequences employment, growth development Experiences regard differ considerably country country, anticipate lively debate key policy question. fourth question debate reflection today extent risk marginalization facing developed countries structurally weak vulnerable economies increased process globalization , natural follow- question pose : countries accelerate growth development afternoon, turn challenge facing competition competitiveness international trade result advent electronic commerce. concentrate dimension remarkably absent debate electronic commerce, development dimension. proposals considered positive terms development process developing countries. , absence development-specific thinking analysis options hand, remains difficult countries express active support positive agenda global electronic commerce. Today' discussions offer timely opportunity fill gap. advent electronic commerce constitutes challenge traditional thinking competition competitiveness international trade. respects, strategies Globalization, competition, competitiveness development 6 organizations enterprises prefigure ways competitive anti-competitive behaviour shape global markets years . small players, including developing countries, developed , generally small medium-sized enterprises, electronic commerce offers unprecedented ways competing foreign international markets. time, simple fact electronic commerce place absence minimal telecommunications infrastructure raises direct questions access smaller players, entire regions, Africa. problem connectivity. policy point view, electronic commerce largely uncharted territory. active participants, asset, rapid development international electronic trade flows minimum legal, regulatory fiscal obstacles. , contrary, electronic commerce yield full benefits rules game established global instrument economic growth development. main policy issues addressed afternoon terms access - electronic commerce rendered accessible , advanced regions planet decreasing costs telecommunications geared LDCs' participation question trade negotiations - multilateral process aimed trade liberalization deal electronic commerce regard competition laws - existing regulations competition amended account advent electronic commerce question governance - global infrastructure electronic commerce Internet adequately governed hampering expansion development electronic commerce, developed parts world 2. Reports discussions Trade Development Board Ambassador Anthony Hill, Permanent Representative Jamaica, Globalization, competition, competitiveness development 7 presenting Board' debate interdependence report extremely . Board' agreed conclusions interdependence short paragraphs , restrict highlighting of1/ main points. question , point departure . Ricupero, extent competitiveness search competitiveness affected employment, growth distribution income developing countries dispose item competitiveness. share view competitiveness defined situation nations compete dangerous obsession, . , , competitiveness competition firms sectors. issues highlight. analysis. analysis Trade Development Report comments thereon pointed fact important sound theory precondition sound policy empirical evidence guide policy. agreed conclusions speak income disparities, refer impact income inequality policy. policy theory soundly based, lead unsound reactions trade protectionism. main issue national policy, focuses income distribution economies, economies skilled professions. time growing income disparity, response formulate policies lines sound macro-economic policy , , , Dutch , trade- . Ruud Lubbers calls Js - jobs, jobs jobs. time , internationally, question employment global scale. turn international policy. Secretary-General United Nations part reform programme agenda development. important multilateral Globalization, competition, competitiveness development 8 institutions, .. UN specialized agencies, WTO Bretton Woods institutions, revisit development dimension. points . chance read writings panellists, points emerge discussion. philosophical note refer philosopher poet, Robert Browning, : " life succeeds fail paradox comforts mocks". living world paradox. Ambassador Agnes Yahan Aggrey-Orleans, Permanent Representative Ghana, presenting Board' debate Africa broad aim discussion , context globalization, prospects Africa terms competitive international markets integrating fully world economy. specific economic problems Africa general issue development policies aimed faster sustainable economic growth considered. Competitiveness playing important role respect. broad agreement term "competitiveness" senses. term meaning applied countries regions, relevance level sector firm. sense, competitiveness refers factors determine locational behaviour internationally mobile firms. narrow focus factor prices determinant competitiveness rejected, variety intangible factors, product quality, capacity timely delivery, ., highlighted. Transaction costs, transportation costs countries borders, decisive impact competition competitiveness individual suppliers. policies regard real exchange rate constitute important element managing link investment exports. High transportation transaction costs relation tradeable goods considered major reason loss international market shares African exporters extremely level intra-regional trade Africa. costs result underdeveloped physical infrastructure. political, legal, Globalization, competition, competitiveness development 9 institutional social infrastructure, sound exchange-rate management, quality governance important factors influencing country' ability expand trade attract FDI. , countries succeed international markets, essential functioning local markets domestic economic networks. case number African countries. factor Africa' poor export performance insufficient international marketing efforts. importance macroeconomic exogenous factors emphasized number speakers, broad agreement country experiences differ considerably Africa. , common explanation loss share African exporters world markets. Explanations sought country product level. broad agreement greater investment management infrastructure, areas transportation telecommunications, strengthening domestic markets local entrepreneurship African countries. Supply-side constraints perceived greatest obstacle higher exports Africa, contended constraints addressed relation specific products. Measures improve investment climate recognized central policy agenda, defined simply relation FDI , importantly, relation domestic savings capital accumulation. countries, increased investment requires support international community. African countries identify products supply potential likelihood rising international demand, target sectors . , complete agreement sectors priority. suggestion advanced hand Africa concentrate export efforts sectors natural comparative advantage, primary sector tourism. argued hand countries seek develop dynamic comparative advantages Globalization, competition, competitiveness development 10 areas, diversification -traditional sectors holds greatest potential gains medium longer term. Strengthened regional cooperation intra-regional trade considered important elements African development strategy. Trade neighbouring countries easier expand offers opportunities firms learn compete globally. context, inconclusive discussion potential role growth poles Africa. respect policy options African Governments context globalization, argued , limitations resulting WTO, active trade policies remain important, developed countries. National policy choices continue crucial, regard import capital- account regimes. , developing countries underestimate potential influencing international framework trade financial relations. requires intensified cooperation view arriving common positions international negotiations relevant rules. forthcoming negotiations Lomé test leverage developing countries possess background constraints resulting WTO rules. debate extended UNCTAD' contribution development Africa. UNCTAD' technical assistance programmes, areas trade efficiency, trade facilitation communication, considered important elements strengthened . UNCTAD called strengthen support South-South cooperation. UNCTAD' research successful development experiences East Asia provide lessons African countries, experience Northern African countries expanding -traditional sectors studied. UNCTAD focus specific implications African countries globalization increased international competition. , debate based study specific country situations experiences. respect crucial issue infrastructure development, work UNCTAD focus international dimension. UNCTAD unique capacity analyze potential contribution FDI, including FDI advanced developing Globalization, competition, competitiveness development 11 countries, development Africa. , UNCTAD examine experiences African countries regard trade policies, proposals develop dynamic export sectors, identify remaining scope industrial trade policies conclusion Uruguay . Ambassador Daniel Bernard, Permanent Representative France, presenting Board' debate LDCs Sessional Committee LDCs honour chair Trade Development Board focused discussions agriculture, working basis Developed Countries 1997 Report. briefly reflect main points emerged. making broad points relation agricultural development LDCs implications globalization competitiveness LDCs' agriculture, proceeding specific points relevant LDCs development partners. LDCs, group countries, agriculture crucial importance development. comparative advantage LDCs lies agriculture. enhancing integration LDCs world economy dependent developing competitive agricultural sectors. , , agriculture part sector secondary importance evolution multilateral trading system. Uruguay Agreement agriculture, liberalisation countries, agriculture, tradeable sectors, adapt competitive international economic environment, characterised , inter alia, erosion trade preferences LDCs previously enjoyed main export markets. agricultural producers, LDCs , improve market shares, competitiveness crucial. , experience countries world demonstrated development competitive agricultural sectors necessarily benefit poor, worse . crucial issue LDCs ensure smallholder Globalization, competition, competitiveness development 12 farmers, including women farmers, dominate agriculture countries, benefit expanding market opportunities. requires careful design policy reforms ensure access resources, land, inequitable attention devoted alleviating constraints faced group farmers. true, , maintain balance export crops food crops. lastly, great deal diversity terms agro- ecological conditions LDCs individual countries. clear design policy interventions sensitive specifics country. move specific issues pertinent design agricultural policy reforms LDCs, development partners LDCs, multilateral trading system raised number delegations. organise remarks issues: firstly, design reforms, including sequencing; , address supply side issues; thirdly, social implications agricultural reform; fourthly, international trading environment facing LDCs. design reforms, delegates recognised macroeconomic trade policies essential development competitive agricultural sectors LDCs. LDCs implemented major policy reforms area, concern policy slippage. delegates drew attention sequencing timing agricultural marketing reforms, ensure private sector position services previously public sector loss access services farmers, public sector monopoly replaced private sector monopoly. participants emphasized close complex linkages aspects reform. , elimination agricultural taxes definition reduces fiscal income leads cuts subsidies, resulting gradual liberalization prices privatization marketing channels. regard supply side constraints, number Globalization, competition, competitiveness development 13 speakers stressed pricing marketing reforms sufficient bring development internationally competitive agricultural sector LDCs, farmers countries face range supply side constraints increasing productivity output. Alleviating constraints requires action terms rehabilitating expanding physical infrastructure, rural road networks storage facilities crops; enhancing credit supplies small farmers, including seasonal credit longer-term loans; expanding research agricultural extension activities, develop disseminate high-yield varieties improved farm technologies environment socio-economic structures individual LDCs; & extended crops attracted attention, drought-resistant cereals grown marginal arid lands Sahel, -traditional export crops; & extension services assist small-holder farmers adopt effective soil water management techniques. Action required terms enhancing human resource development, essential raising productivity rural areas, investment primary education receiving priority; rectifying deficiencies marketing infrastructure reduce marketing margins give farmers greater share final consumer price output; facilitating access inputs reducing cost. Participants cautioned implementing sectoral institutional reforms outlined difficult implementing macroeconomic reforms. international community essential role assisting LDCs implement reforms technical assistance programmes, envisaged Marrakesh Ministerial Decision Favour Developed Countries. role state implementation reforms crucial. Thirdly, respect social implications reforms, number observers, development commercial agriculture benefited poor. key issue access resources, land. stressed social impact reform greater priority previously case. Fourthly lastly, regard international environment, number issues concern LDCs, unsustainable levels debt LDCs. Uruguay Globalization, competition, competitiveness development 14 Agreement liberalising international trade agriculture, LDCs special differential treatment safeguard interests. , number issues giving rise concern LDCs warrant attention international community. include possibility global agricultural liberalisation lead greater fluctuations cereal prices detriment food security net food-importing LDCs, time food stocks food aid reduced. concern , exemptions special provisions LDCs Uruguay Agreement regard support farmers, subsidies inputs, aid respect investment diversification maintenance production subsidies, pointed provisions relevant LDCs cases conditionality reform programmes negotiated donors preclude policies. source concern lies fact joint work carried UNCTAD WTO revealed liberalisation removed high tariffs facing LDCs product lines, processed foods, LDCs' comparative advantage lie. Finally, difficulties LDCs face complying health safety standards regard food products barrier export growth, standards harmonized. 3. Presentations panellists . Jan Pronk, Minister Development Cooperation Netherlands, Moderator High-level Segment asked panellists floor order questions put . Ricupero. question addressed . Lizana - countries successes stories global market exposure international competition, policy- . Pedro Lizana, Chairman, Society Industrial Development, Chilean Federation Industry , great honour invited : feel place, trained economist business Globalization, competition, competitiveness development 15 world years, leading Chilean Federation Industry , years, Latin American Federation. combine viewpoints, erstwhile economist economist lapsed business. economist, point Chile’ case, basic economic principles account country reformed join world economic system hasten development govern world large. , miracle, put record principle important economy joining world economic system called quest truth pricing. Closed, -open imperfect economies great false prices, deceitful prices lead skewed allocation resources, prices world market closer truth domestic prices economies part world economic system. approach , , open economy foreign trade, gradually lowering tariffs, years reach call level 10 cent - average, . time tariffs , effort offset , , arrive truthful price foreign exchange, lowering exchange rate allowing fall tariffs declined. bottom, high-tariff economy people paying resulting exchange rate exporters, exchange rate truthful, exporting altogether dynamic undertaking. principle regard basic fiscal monetary balance - cutting adjusting State’ share economy 15 20 cent output , businessmen community generally State burden costs shoulder order compete , efficient. change important change pension system pay--- funded system. point concerns privatization businesses state , large proportion, privatize sell businesses concessions private sector - don’ care prescription , lots prescriptions - , , areas state contract services . faster flexible. extreme - prison services - delivery goods materials contracted ; school meals contracted , ; , state company supplying drinking water, contract network installation meter Globalization, competition, competitiveness development 16 installation meter-reading; lots services contracted , slims State efficient. modernizing national finances important. , , free prices, markets left competition, basic electricity services, regulatory system based marginal production costs competitive market. , important, basic point labour market function. function intervention labour markets, , allowing monopoly organizations employers workers grow . vital: wage negotiations conducted individual business level, groups businesses groups workers. straightforward , petrol-station workers negotiate wages sector oil companies, easy oil companies pass increase wage costs prices. monopoly teaming monopoly, community pays. occurs sector-wide negotiations, metals industry . system permits sector-wide negotiations, require , negotiations basically place individual business level. , , important aspect overlooked . main results active economic model adopted world rise visible unemployment, hidden underemployment. , time, initial fall earnings, reallocation resources sectors businesses closing moving reduced working time, takes develop investments soak unemployed. great industrial ventures closed, , compete. adjustment periods occur economies suffering high monetary imbalance, high inflation rate. , , big rise real interest rates, persists day, largely account anti-inflationary policy, , , extremely valuable time economy adjusting truthful. public understand market economy . community heads progress depends business' efforts, legislation government action. Globalization, competition, competitiveness development 17 people entrepreneurship, special treatment authorities. valuable decentralized labour training systems. , orientation country' training system decided authorities, authorities capable . people hire labour sort skills . set system subsidies diminish proportion wage scale tax- deductible, businessman decides skills Globalization, competition, competitiveness development 18 needed, centres market offer training arrangements. vital encourage business specialization. closed economies businesses tend bit specialize, division human labour brought clear increase productivity, division labour businesses important - increasing subcontracting businesses. business thinks , contract rest . Toyota, modern firm, subcontracts, buys , 70 cent car. today case car manufacturer buying engines installed bodywork, large gains productivity, small business concentrates specific task part process. effort encourage subcontracting. truthful prices country attractive, interest foreign investment develops, foreign investment potent making country’ inability finance investment. danger, Chile draw attention . fervent partisan foreign investment, fear countries, people, digest large quantities food, country capacity absorb investment. country , Chile’ case, 35 billion dollars foreign trade output , unexpected arrival 10 20 billion dollars foreign investment knock entire economy . limits mapped , Chile’ case surplus foreign investment resulted fall exchange rate competitiveness entire export manufacturing sector trouble. victims success. important bear mind putting limit solution. clouds political action country opening world joining world economic system concern income distribution, mind outdated concept. concerned distribution wealth-generating capacity. poor poor incomes badly distributed. poor poor wealth-generating capacity, question angle occurs immediately . wealth-generating capacity increased subsidized. important watch, , Globalization, competition, competitiveness development 19 countries stage development, join world economic system, infrastructure develop fast , faster , countries . prejudices run ! chief find opposition giving private sector opportunity invest areas means concessions ownership ports highways. case, , good infrastructure pay preferable bad infrastructure don’, case people benefit pay, “free” infrastructure hurts . watched unfair foreign competition. beginning, main message, talking truth pricing, guard false signals . countries subsidize exports heavily, practise -market-economy prices offer goods cost raw materials; watch industrial sectors killed wrong pricing. lastly, important promote exports good information, market information, foreign trips businessmen. Chile joined world economic system, , 10 20 years , exporting 10 20 countries; exports 120. number products years, 300 4,000 today. number businesses risen proportion. valuable Government business world join forces campaign trade visits missions world. practical approach. negotiations place trip, contacts negotiations proceed. insight offer . Moderator . Lizana, question. referred unavoidable consequences opening , resulting short-term drop employment, closing competitive industries shops. transitionary adjustment period, accepted socially politically, instance labour unions explicitly dealt elaborate Globalization, competition, competitiveness development 20 . Pedro Lizana widespread public resistance workers unions incomes depend business; badly business, realize badly , . Today - 10 years, - social unrest jobs sector Chile . afraid , moved authoritarian democratic government, social upheaval. union membership fallen, wage increases -unionized sectors larger unionized great change-. People faith business pressure groups Government groups businesses. important public introduced economic concepts, people understand depends work business work , political favours group pressures. Moderator question. question : exposure competition sufficient success, success policy- . Lizana exposure competition policies order influence conditions exposure competition economy. implies competition policy, matter fact . Lizana referred competition problems, instance investment. brings panellist, . Souty, question: role competition law competition policies establishing conditions successful integration global markets . François Souty, Rapporteur Permanent, Competition Council, France Secretary-General UNCTAD importance accorded UNCTAD competition law policy. September, discussion investment competition, consensus emerge panellists, member States, usefulness investment Globalization, competition, competitiveness development 21 liberalization policies accompanied introduction competition law policy. connection, emphasize, capacity member competition authority academic, competition law policy serve basic objective, economic progress, development growth. concept economic progress difficult define , competition law policy find ways definition. follow predecessors morning, competition policy serves goals. goal seek attain level economic performance desirable individual firms ensures performance economy . opportunities growth prosperity individual firms economy prospers, opportunities prosperity growing number economies integrating world economy. World Investment Report published September showed, , years 35 countries introduced competition legislation underlying trend accompanying world growth mirrored countries introducing competition law policy. objective competition law policy seek identify preserve competitive processes relevant sectors economy order contribute performance economy. point times morning previous speaker connection agriculture, fora. inefficiency regulated public services ( inefficient developed countries, advanced countries ) hinders collective performance. question public private ownership means production structure objectives framework ownership exercised relation economic actors regulated. , creation competitive economic structures resolve ownership question quickly privatization public enterprises satisfactory conditions income privatizations achieve Globalization, competition, competitiveness development 22 economic performance State benefit. objective served competition law policy formulation guarantee transparent -discriminatory rules good conduct fair competition business. talk fair competition, people fearful actions transnationals, held responsible series predatory strategies interests consumers, developed countries developed countries. , fair unfair competition depend transnational multinational corporations ; private operator dominant position country tempted exploit economic position market. connection market legally structured competition system time -, tempting national foreign economic actors seek monopolistic strategies detriment performance economy question detriment consumers, largest group economies. fourth objective competition law policy prevent undue growth largest public private economic actors. growth generally measured terms distribution, competition law policy aims achieve balance distribution market power, broad sense. Historically, Europe, United States Japan, goal justify enactment competition law policy. policy likened “populism”. , “primitive” assessment left , decentralization economic power essence competitive economy. competition policy seek point view preserve mobility freedom entry exit economic operators guarantee economic competition markets concerned. developing countries face economic problems encountered industrialized societies decades . difficulties , industrialized societies introduced competition laws policies establish solid economic base allowed enterprises companies flourish, expanding opportunities world trade economic integration. indicators , Globalization, competition, competitiveness development 23 developed countries reflect methods advanced partners order stimulate growth. methods include creation system economic competition designed stimulate market forces create wealth. interest , developed countries, developed countries , precisely seek conditions establishment competition legislation meets aspirations respect creation wealth. competition law policy account hand structural characteristics developed markets legal cultural traditions countries question. case European Union, 15 sets national legislation Community law coexist, demonstrates , large degree flexibility room manoeuvre exist number common, harmonized convergent legal economic principles. produce effective legal system microeconomic policy conditions met. hand, level States regional groups, day higher level, competition law policy implemented independent authorities. hand, process control common law judge, .. entire procedure implementation competition law subject executive constraints macroeconomic administration. point, executive legislative power define framework system economic freedom courts apply . Moderator outlining aims competition policy competition policy countries advantage globalization avoid disadvantages. connection, fourth aim avoid undue growth competitive. outline criteria decide "undue" . François Souty refer inequitable undue growth. needed prevent seizure creation supra-competitive market Globalization, competition, competitiveness development 24 power economic actors exercise market power subject limit. sense speak role competition law policy contributing equity economic freedom. matter safeguarding economic freedom preventing confiscation public private economic actors. , type behaviour naturally seeks coordination economic actors, central characteristic competition law policy seek anti-competitive aspects coordination. jargon, speak competition activities anti-competitive agreements, horizontal vertical agreements examined relation rules established preserve economic freedom competition. Globalization, competition, competitiveness development 25 Moderator question refers "ins", .. countries success cases global markets, , .. "outs". "ins" "outs" world economy, richer countries poorer countries, instance. question : modern process globalization widen gap "ins" "outs", difficult partner world economy due process globalization, . Dharam Ghai, Director-General, United Nations Research Institute Social Development (UNRISD) talking globalization marginalization, factors underline processes, importantly reverse trends. start distinctions. , talk marginalization, refer . refer fact countries participated benefits growth generated globalization benefited countries, totally unaffected, untouched process globalization, thirdly absolutely worse process globalization. distinction countries individuals; , talking large group countries, important remember talking people social groups. country benefit enormously expansion world economic integration major groups people worse , short medium run, result processes. distinction : talk economic social policies, closely interdependent, comprehensive holistic view development process policies concerned. general agreement called developed vulnerable countries marginalized senses referred earlier . reasons difficult enumerate. countries enjoyed Globalization, competition, competitiveness development 26 trade benefits, processes liberalization resulted erosion benefits. . , countries, related point, enjoyed free access important industrial markets, rounds liberalization brought . point relates trade structure countries . major exports minerals agricultural products, dynamic sectors manufacturing extent services. , trade structure, .. dominance minerals agricultural exports, benefited dynamics created globalization. point countries concerned bypassed intensified flows investment, private capital technology, turn due reasons mentioned previous speakers. reason received adequate attention, , important, question political social instability, violence conflict developed countries. question limited markets talked , poor infrastructure poor endowment human resources skills. clear , countries overcome barriers, extremely significant barriers, globalization opens enormous opportunities rapid growth. , principle, theory medium long run, globalization definition removes constraints markets, finance, savings, capital technology. question countries attract sources. policy framework overcoming problems flows analysis. fundamental issue developed vulnerable countries question political stability, rule law order, questions democratic participation, legitimacy, representation accountability, words called governance, hides . Globalization, competition, competitiveness development 27 countries process recovering devastation war; process called reconstruction war-torn societies strengthening peace- building. important processes succeed, difficult talk kind economic development. moment, problems process; emergency reconstruction development phases tend separated differentiated, generally recognized integrated , difficult. , actors national international level, process interests, find ways means create possibility dialogue discussion internal social actors internal actors international actors, play important roles processes reconstruction development. major area emphasize regional cooperation integration, mentioned. people agree avenues resolution problems developed countries enhanced regional cooperation integration, developed developing countries endowed critical role play. case South Asia, SAARC, case South-East Asia ASEAN, Southern Asia SADEC. Latin America, Andean group regional groupings. important economic cooperation takes form removal trade barriers, strengthening infrastructure, power, transportation, communications, training education kinds cooperation developing countries, mentioned, advanced developing countries important role play regional groupings. fourth point relates creation niche countries. generalize , important pessimistic; important possibilities developed countries, process globalization open opportunities, question developing , exploiting , intensifying enhancing dynamic comparative advantage. areas - crafts, music, field tourism, field horticulture, Globalization, competition, competitiveness development 28 field processing special raw materials agricultural mineral products. existing possibilities, possibilities opened process globalization. point remember , , talking human social development. processes economic growth important lead reduction elimination absolute poverty, elimination illiteracy, reduction infant mortality malnutrition, increase life expectancy, health facilities, access basic education, health water, gender equality. central objectives development. processes globalization resulted marginalization important sense people benefited services. proposal ambitious global accelerated programme human development comprise areas mentioned. regard, important stress countries capita income 10,000 dollars achieve basic objectives, high life expectancy, infant mortality, complete adult literacy, elimination child malnutrition, total mortality basic primary health education. research conducted institute countries capita income 224 dollars year social indicators amazingly close industrialized countries. wait generations major social deprivations attacked. regard, kinds fora moment world, propose, risk creating , time establish call global world solidarity forum world solidarity foundation. basic objective forum promote action, thinking policies accelerated human development sense talked , number functions. learn policies mentioned, basis successful South- South cooperation. , forum provide avenue policy dialogue major issues disagreement, drugs, , represent major social problem. lot countries experiments, forum create possibility dialogue contested issues. Globalization, competition, competitiveness development 29 Globalization, competition, competitiveness development 30 Thirdly, forum emerging problems tackled, range social effects globalization implications employment, poverty, minimum wages, working conditions, coordination fiscal, social taxation policies regional global level. issues adequately explored, researched, forum provide place . lastly, influence resource allocation, channelling resources promising approaches tested projects initiatives. involve creation organization; contrary, exploit existing network conferences regional international levels, gathering, view promoting human development human solidarity global level. Moderator . Ghai. risk marginalization avoided countries implement proper policies set priorities oriented stability. , increase standard living poor people, level capita income. contradiction sets priorities, .. player global markets hand attaining objectives regard life expectancy basic health care hand . Dharam Ghai conceive circumstances conflict, extent, order promote globalization, attract foreign investment foreign capital maintain competitiveness, wages, restraining government expenditures, high rates taxation. false dichotomy. countries successful globalization , large markets, sound physical infrastructure important educated, literate labour force, social development talking contributes strengthening institutions skills human capital. Globalization, competition, competitiveness development 31 international community process globalization create space developed countries catch areas, achieved development assistance kinds preferences arrangements enable catch . find difficult accept countries forego programmes type mentioned globalization, research shown resources required implementation broad-based programmes modest possibilities poorer countries. Moderator bridge fourth question fourth panellist. Globalization, competition competitiveness - impact countries, factors, people, development impact process Professor Dani Rodrik, Professor International Political Economy, John . Kennedy School Government, Harvard University . Ghai ended question underscore : countries successful globalizers successful strategy globalization trade , precisely strategy investment human resources, investment physical infrastructure good governance. fundamental degree, give punch line, successful integration world markets, competitive economy, result good development policies successful development, extent put cart horse globalization successful integration world markets objective , setting priorities bit misguided. question posed success achieving international competitiveness positive consequences growth, employment development. question , level, easy answer. Surely, Globalization, competition, competitiveness development 32 countries successful terms international competitiveness, defined , handful countries East Asia experience Chile decade suggest answer affirmative. , international competitiveness positive consequences growth development. level, question difficult : international competitiveness pleased hear earlier discussion , idea economies compete - starter. ' . measure international competitiveness concern policy-makers , policy implications , pose specific questions, confront danger policy development policy; excessive focus competitiveness trade strategy counterproductive extent diverts attention fundamental concerns development policy-makers . policy-makers danger evaluating national policies standpoint success integration international markets. sort broad-brush evidence looked . Suppose , benchmark successful development, growth GDP capita 3 cent higher decades. 110 countries world good comparable data growth rates early 1960s. benchmark 3 cent growth annum capita GDP decades criterion successful development, quarter countries passed test, 27 110 countries data. , case vast majority 27 countries experienced short increases trade, absolute terms, surprising, relation national output; .. trade share GDP average increased substantially vast majority successful countries. fact, 27 successful countries, shares trade GDP late 1980s 1960s. Globalization, competition, competitiveness development 33 suggests high growth increased integration world economy . , ' exercise turn question 110 countries higher shares trade GDP late 1980s compared early 1960s increased trade efforts experienced increase trade--GDP ratios answer. 80 countries 110 experienced increased trade--GDP ratio, 80 countries majority failed grow rate 3 cent . words, 80 countries, 57 capita GDP growth rates 3 cent. fact, surprising, top 10 countries terms trade performance ( absolute trade, trade share GDP), failed grow rate 3 cent . message give - exceptional rare countries terms growth development open trade, common countries open experience meaningful growth. increased openness trade competitiveness condition growth development, sufficient, trade strategy. Lets evidence. post-war period regions world successful terms combining increased trade high levels growth, regions stand , Western Europe East Asia. experiences closely, find interesting nuances, interesting aspects experiences inform evaluate countries' strategies . regard Western Europe, experience World War II constitute impressive achievements economic history, destruction place World War, subsequent growth Western European nations greatly facilitated possibilities offered international trade intra-European trade . , Governments countries increasing advantage trade, important erected extensive network social safety nets. , experience terms Globalization, competition, competitiveness development 34 growth welfare state Western Europe, find welfare state grew fastest countries exposed trade, countries Denmark, Netherlands Sweden. ways, welfare state flip side open economy Europe. East Asia, miraculous growth East Asian countries early 1960s countries prime examples outward-oriented growth. , closer experiences countries, finds state played critical role number dimensions; investment human resources mentioned, state played critical role coordinating stimulating private investment countries territories Republic Korea, Singapore Taiwan Province China; give , remember state enterprise sector Republic Korea Taiwan Province China accounted larger share economy 1960s 1970s India, economy heavily burdened state enterprises. , regard trade liberalization, economies, Republic Korea Taiwan Province China, domestic markets opened international trade gradually period decades. . Lizana mentioned trade liberalization Chile place essentially period years, roughly 1970s. rapid standards East Asian experience; decades decades countries started grow extremely fast, measures economies open international trade Chilean economy years rapid liberalization 1975. lesson Western Europe Asia successful globalizers market-friendly Governments proactive Governments. adequate social insurance, integrated world economy terms. lesson contradicts today' conventional wisdom globalization requires small government, welfare states cut size single Anglo-American model countries necessarily converge. , Netherlands good conventional wisdom correct terms tax ratios, terms employment Globalization, competition, competitiveness development 35 regulations, terms extensiveness safety nets welfare state; lot reform Netherlands, confuse Netherlands' economy United States United Kingdom. true globalization constraints Governments tighter. finding , financial markets stand ready pounce Government perceived sacrificing fiscal prudence broad development social objectives . , increased mobility employers national boundaries difficult Governments tax employers corporations order benefit labour expand social programmes. , large, policy-makers shackled constrained global interdependence , ultimately quality society' domestic institutions, respect rule law, good governance, social political stability, adequate infrastructure skilled labour force, wages nominal labour costs taxes, determine investments . view, sustainable growth strategy stand domestic legs addition external strategy liberalization globalization. domestic investment strategy. , investment human physical capital home produce growth. trade, outward orientation, globalization, international competitiveness raise growth, investments human physical capital inducements . Fundamentally, East Asian economies grew rates long period time Governments cared growth investment strategy. domestic strategy important complement strategy social insurance. Globalization source lot wonderful , source turbulence, important ensure important segments population left process market integration rapid change; important social insurance strategy ensure social political legitimacy process. , Chile good . newly elected democratic government power 1989, important plans promise social front, promise increase spending social poverty Globalization, competition, competitiveness development 36 programmes tune 2 cent GDP. viewed clear increasing legitimacy long process market reform place authoritarian regime, large extent successful fiscally responsible manner, increase spending financing increase spending increase taxes. , return point started . danger excessive focus globalization trade performance development standpoint divert policy-makers' attention elements, strategies internal domestic strategies central determining growth development process longer term trade se, countries benefit globalization complementary strategies home. 4. Follow- discussions . Alec Erwin, Minister Trade Industry South Africa, President UNCTAD IX good project making UNCTAD organization helps massive reform process panellists speaking . draw threads enunciated focus key issues , terms process bringing change, important. point striking touched Professor Rodrik' survey evidence , extent, globalization features tend great phenomenon, emphasis development information technology, ability communicate world, process grapple totally direction. suggest necessarily case, reasons twofold. Firstly, world history century part , industrialization process, spread basically capital production, powerful respects Globalization, competition, competitiveness development 37 disruptive societies countries globalization process . , account, understand required countries bring . suggest , extent, problem developing countries recover economic political sovereignty period economic pressures confront qualitatively changed. , defining features current processes, started quarter century, production processes brought information technology speed knowledge generated pressures terms question sustainable economic activity . Previously difference tradeables -tradeables clear, questions nation States confront relation generating economic activity borders isolated. , economic activity called question world. global market, important change modern production processes, challenge developing countries sectors focus , tourism agriculture, carry economic processes production methods. essential challenge facing . confronting countries coming period profound economic domination, speak developing countries, world environment economic challenges . requires major reforms level society, problem countries face easy carry reform political situation fragmented, divided weak. problem , inevitably restructure economy, effects negative. suggest challenge faced determining proper prices tradeable goods; involves realignment pricing system, applies provision social services tradeable products. support strongly point reforms focus macro- economic policy trade. conventional wisdom argues , , error dangerous effects developing countries. challenge bring realignment socio- Globalization, competition, competitiveness development 38 economic system, develop large welfare state traditional mechanisms . challenges , absolutely fundamental reform bring social institutions . forum, suggested . Ghai . biggest problem face present persistent division economic reform social change human resource development. , , error, result interaction international institutions focus economic dimensions focus socio-economic dimensions. country, steadfastly integrated programmes policy programme, reconstruction development programme. resist measures force divide efforts economic measures, .. growth, development . point proposition competition takes place enterprise level sector level economies compete. case. , correctly pointed , regional development major responses developing countries internationalization. close MERCOSUR SADEC ASEAN show , . Ghai pointed , attempts profound economic cooperation. attempts realign socio-economic interaction nation States, closely, purpose regional integration sufficient weight size part sectors. automobile producer part economic zone days. successful producer electronic components bring degree rationalization regional zone. applies number industries. sense, economies regionalization process order competitive. agree points . Souty distinction, difficult, competition policy actual legislation utilized bring . experience South Africa, conclusion bringing competitive economy requires major reforms corporate legislative structure financial markets , competition law instrument package corporate law reform competition policy. real problem Globalization, competition, competitiveness development 39 developing countries LDCs, degree institutional change considerable, political carry change , change happen. agree globalization opportunity danger time. single countries, developing world, gains globalization work regional context. small countries, exceedingly difficult respond benefit globalization working closely neighbours. true economies South Africa, ASEAN economies Latin American economies. lesson good governance introduce part -called consensus. good governance arises fact bring major socio-economic transformation economy state, bring major transformations considerable reorganization government. , respond greater access knowledge, based improved information technology, States transparent. opaque society turn television BBC World CNN . kinds pressures forcing States transparent, forcing States democratic. transparency context governance good ; forced Governments, respond key issue face. regard reorganization state, play roles, withdraw responsibilities social arena. trouble , social arena, state business- modern production methods produce effective social services, requires state business-. rule bureaucracy ; demands efficiency state considerable intelligent, thinking state, practices closely business. major political challenges, political structures, real challenge -establish sovereignty. true developing countries. responsibility nation, people difficult challenge States; manage successful, Globalization, competition, competitiveness development 40 condemn economies stagnation. summarize, points emerge . role high-level forum establish effective integration economic socio-economic change, extent international institutions exacerbate division , corrective action. , cognizant fact reform measures apply text book formula, reason require profound political transformation state. leads point, high-level forum designed achieve, processes negotiations multilateral agreements. countries competition policy, , set viewpoints translated multilateral agreement. kind process . theorical identification problem, identification actual steps required, dialogue defining agreements competition policy, , incorporated multilateral agreement WTO. . Pedro Lizana underscore productive processes brought computers. Basically, technology produced greater mobility resources, . Today move faster, mobilize resources information, information instantly months , case. . François Souty add , terms competition authorities, agree. talked liberal system define competitive system. lot thinking Europe idea economic liberty, guiding spirit number competitive systems Europe. part freedom , squares perfectly idea competition law policy. implicit : system Globalization, competition, competitiveness development 41 economic freedom total freedom based state law, perfectly summed . Competition law policies fit perfectly today' subject, happy . Prof. Dani Rodrik reaction statement regionalization regional strategies important successful global scale. draw distinction spirit clarification. distinction kind regionalization, .. expansion regional trade investment, place , naturally, actual preferences regional trade partners level national trade policy, regional integration sense removing artificial obstacles, transport bottlenecks communication problems, prevent trade investment flows regional partners naturally place, providing regional preferences, sets tariff schedules maintaining QRs restrictions vis-à-vis world, liberal scheme vis-à-vis regional partners. argument favour kind , sought underscore expansion regional trade naturally place, important, lot trade East Asia, , result countries trading naturally; supported stimulated regional preferences. EU success, large extent individually EU members open trade policies vis-à-vis rest world. MERCOSUR today success, large extent MERCOSUR members open policies vis- à-vis rest world. important distinction terms regional integration. extent encourage actual policies regional integration sense preferences, bit controversial. . Rubens Ricupero react point Professor Rodrik, people talk natural regional cooperation, assume infrastructure conditions historical conditions present worldwide. rightly pointed Globalization, competition, competitiveness development 42 remove artificial obstacles lack transportation, dimension . case Latin America, instance. current situation, trade flows North-South, call natural; consequence history, history consequence centuries colonization. case country, Brazil, 10 neighbours, , eve year 2000, land communications . reach French Guiana, Suriname Guyana land, difficult reach Venezuela, reach Colombia Peru, land borders cases 3,000 kilometres. Brazil colony Portugal, colonies powers, time, time mercantilist capitalism, basic principle monopoly trade. forbidden trading neighbours time Spanish Portuguese rule; trade south Brazil Plata countries considered smuggling severely punished. degree anti- semitism, traders Brazilian side Christians. establish links. matter analysts Washington concentrate economic figures, degree artificiality, artificiality start - centuries years travelled extensively Africa, noticed French-speaking countries communications Paris, London. natural neighbours , matter consideration speak regionalism. natural, heritage history considered context. . Alec Erwin point briefly touched . Lizana mentioned effect real-time knowledge speed production deserve lot attention. economies, previous process industrialization relied heavily monopolization knowledge monopolization technique, difficult days. important. concrete circumstances Globalization, competition, competitiveness development 43 South Africa, integrate information telecommunications systems rapidly, benefit advantages give . real danger lie inability adjust immediacy knowledge techniques, produce final marginalization. adjustments , possibilities open . similar comments regionalization. agree , regionalization based internal preferences designed generate rapid growth exclude parties region, logic fatally flowed. Regionalization part parcel general liberalization, . points Secretary-General fundamental. Southern Africa identical position; case degrees preference circumstances, give preferences neighbours. , neighbour Zimbabwe produces excellent cotton, textile clothing industry, respect higher-quality products, expanding, surprising days. benefit region abilities trade fact purchased cotton Zimbabwe, step : purchasing cotton, keen cotton processing place Zimbabwe. establish protect manufacturing base, improve competitiveness, improving competitiveness. case degree preference important, preference expense rest world. continue lose sight existing strength Republic Korea, South-East Asia areas based careful industrial strategy. important industrial strategy focused international player. options free easy days, sophisticated, deny degree preference groupings developing countries forces lose synergies economic activity fundamental grow. . .. Prabhu, Commerce Secretary, India confine issue , global efficiency competition policy. , , Globalization, competition, competitiveness development 44 competition important development growth economy trade liberalization open investment policies play significant role creating contestable markets conducive competition. benefits derived globalization long fair rules practices competition operate industrial business. , globalization world trade driven twin forces technological advancement liberalized trade investment. automatically ensures greater competition. Technological advancement fact companies capacity form mega monopolies. spate mergers major companies world shows globalization government regulation control restrictive business practices companies ensure free fair competition. Secretary-General UNCTAD competition lead survival fittest. trade liberalization, liberalization imports foreign direct investment, exposes small enterprises developing countries unequal competition large companies. easily wipe smaller enterprises, larger companies resort predatory pricing misuse economic muscle. reductions prices attractive short term, long term country' interest reduce competition lead social tension due unemployment, closing companies, . develop competition regime, introduce anti-trust laws strengthen competition authorities prevent anticompetitive practices. face dilemma country refine competition-policy-related measures. liberalised environment, expect domestic firms grow order face external competition. existence large domestic firms desirable national interest. logical domestic companies merge face international competition. scenario, difficult distinguish mergers encourage competition mergers impede . policy respect globalization account fact pro-competitive effects trade liberalization easily marginalised variety factors, today, -tariff barriers anti-dumping countervailing duties, quotas restrictions, standards, specifications Globalization, competition, competitiveness development 45 -called technical barriers. Agriculture mentioned important source economic growth LDCs, easily blocked introduction artificially high standards. feel , trade side, elements competition policy encompass measures pertaining anti-dumping, countervailing safeguard actions, quotas, rules origin restrictive practices. broad approach competition policy aim promoting reforms governmental regulations unjustifiably distort competition curbing measures create barriers market entry. lastly, echo important point globalization trade liberalization promotion competition development competition policy ultimately result employment economic growth development , important, improvements living standards masses. Ambassador John Weekes, Permanent Representative Canada trepidation floor rich high-quality discussion. draw impression , simple answers questions. discussion excellent backdrop week' high-level meeting developing countries,2/ fortunate Chairman meeting Chairman high-level session, fortunate UNCTAD, , key organizations participating week' meeting. meeting provide practical occasion information ideas coming discussion putting practical . searching ways improve functioning organization, carrying reforms Midrand, session morning high quality stimulating intellectually began session beginning Trade Development Board, , effect providing high-level input deliberations Globalization, competition, competitiveness development 46 Geneva. offer couple comments reactions points discussion. , offer observation globalization extent phenomenon sense . , background trade area, admit trade provide answers, looked 1996 WTO annual report, interesting statistics showing exports percentage gross domestic product range countries. categories shown developing countries excluding oil exporters, average ratio exports goods services GDP rose 10 cent 1970 30 cent 1995. interesting, , fact , developed countries , figure 20 cent. situation developing countries average, averages dangerous, exports form larger proportion GDP case developed countries. point concerns marginalization observations regionalism. experience regionalism, Chairman Committee Regional Trade Agreements WTO, previous incarnation chief Canadian negotiator NAFTA. thinking today lines regional cooperation developing countries, involving developed countries, order initial stages economic development, strong arguments support . point discussion erosion preferential benefits enjoyed developing countries process multilateral liberalization Uruguay multilateral negotiations. final point , , real threat eroding preferential benefits WTO major initiatives build regional free trade agreements Americas Asian/Pacific region expansion European Community. trade place MFN basis WTO framework, big regional Globalization, competition, competitiveness development 47 initiatives pose bigger threat marginalization poorer countries account. Ambassador Miguel Berthet, Permanent Representative Uruguay , congratulate Secretary-General UNCTAD excellent initiative convening High-level Segment. general framework discussion, agree . Specifically, . Lizana experience Chile. . Lizana gave interesting statement, practical frank. Specifically, number cases developing countries, noted opening trade lead drop prices consumer goods time frame, observe tension market prevents prices dropping prevents changing, dichotomy. hand, beneficial macroeconomic effect - inflation begins checked reduced - time macroeconomic benefit perceived profitable population, families individuals, , socially speaking, reaction trade openness. idea, topic studied economists, . Lizana experience respect; happened Chile, attempt tackle . Pedro Lizana , retail prices imported goods rapidly. , countries semi-open, imports monopolized, couple years, importers producers, importers, prices result competition. important increased income population, increase exports. important lowest incomes rise, Chile, happened. Ambassador Miguel Berthet response . Lizana answers question, Globalization, competition, competitiveness development 48 mentions time; time lapse years, means , point view government policy, period time beneficial effects perceived population. . Kassahun Ayele, Minister Trade Industry Ethiopia , express congratulations UNCTAD high-quality discussion. pose question . Lizana, presentation practical exemplary countries. stated subcontracting enterprises solution remove constraints development, fully share opinion, state countries system practised, uncertainties enterprises prevail prevent implementation system. basis experience Chile, Government uncertainties system implemented positively effectively . Pedro Lizana important aspect subcontracting leads growth enhanced productivity result specialization, basis progress, humanity progressed man began working basis division labour. translate today, aggregation enterprises specialized technology efficient productive, true case States. state subcontracts activities, efficient, costs cost-effective. encourage central offices deal subcontracting, auspices UNIDO, main double taxation possibility formation monopolies workers main enterprise subsidiaries, advantages nullified. Subcontracting provide open competition; stimulate competition produce long-term medium-term contracts, subcontractors develop. happen, contracts cover years, present system, large enterprises purchase - basis, impossible small enterprises develop technologically, security future. longer subcontracts, Globalization, competition, competitiveness development 49 guarantees financing, enterprises progress. countries, technological delay matters, transfer technology enterprises. Part technology passed small enterprises large , improve network large companies small . Globalization, competition, competitiveness development 50 . Georges Wohlfart, Minister State, Ministry Foreign Affairs, Luxembourg note satisfaction exceptional level debate great frankness. time forum. heard lot foreign investment employment. aware foreign investment order create employment service industrial sectors. , experts emergence importance sectors agriculture arts crafts developing countries sectors play essential role, economies industrialized countries, highly advanced. real handicap developing sectors view lack access credit, people active sectors access commercial credit. question positive experience micro-financing paths explored order promote arts crafts agriculture, generate considerable massive employment. talked modest loans small firms, easily pursued, UNCTAD, country set investment fund Luxembourg financial institutions. UNCTAD monitoring assistance local NGOs specialized financial matters, fund provide credit acceptable proper rates potential micro-firms. connection, frank question respect informal sector developing countries. sector reality, discussions, international level European Union, talk private sector; avoid talking informal sector, extremely important role play economies developing countries. question concerns regional approach, Secretary-General UNCTAD explain historical reasons nature intraregional trade region, Brazil neighbours. understood correctly, regional approach establishment free exchange zones, exists danger developed countries. , extent analysis, regional approach integration regional basis represent potential development; examples Globalization, competition, competitiveness development 51 SADEC MERCOSUR. grateful comments approach. . Dharam Ghai Minister absolutely correct , point view employment generation poverty alleviation eradication, countries, developed countries, afford neglect small-scale agriculture small-scale manufacturing handicrafts informal sector. difficult countries expand grow problems relying call island models industrialization, involving small city states, generate employment large-scale industrialization. choice focus sector. question credit important. experience parts world called micro- finance micro-credit important instrument employment generation, income enhancement poverty alleviation, successful models. basis successful models summit year focus expansion credit sectors, communities individuals. feel promising approaches national global levels pursue years . . Auguste Paraina, Minister Trade Madagascar previous speaker congratulating UNCTAD organizing meeting. refer question concerned country concerned , setting competition. pleased heard . Souty earlier laws competition account specificity country. , problems countries, structural adjustment policies developed Bretton Woods institutions, IMF World Bank. compelled simply remove competition law safeguard clauses agreements WTO. suggesting harmonization viewpoints Bretton Woods institutions hand UNCTAD WTO . Globalization, competition, competitiveness development 52 point relates competition law. underdeveloped countries obliged copy developed countries , authority charge competition independent private organization, belief state role play authority charge competition. regard regional cooperation, problem, country engaged structural adjustment. terms regional cooperation integration, Indian Ocean Community countries tariff barriers . , fact structural adjustment programmes, priorities, including balancing public financing. . Rubens Ricupero heard days . Gerald Helleiner Department Economics University Toronto, helped expert continuing work Group 24 World Bank IMF; commented OECD community responsible foreign assistance, Bretton Woods institutions meetings bilateral donors, hear word "ownership" , meaning ownership policies, practising preaches. change change . Organizations impose conditions capricious convinced desired results achieved. organization , power impose conditionalities, fact , build consensus, morning. give , Latin American countries preparing negotiations free trade zone asked UNCTAD assist technical cooperation matters respect competition law, major organizations reacted negative manner , , international level, honest, attempt establish sort monopoly type advice . . François Souty , Minister Madagascar question raised. India asked interesting questions respect competition policies, sets Globalization, competition, competitiveness development 53 questions overlap. start question . competition policy implemented private bodies. represent Competition Council, public state body works public benefit. , role public powers implementation administration competition law. competition law managed private body world, virtually . hand, competition authorities, set conditions allowing free choice freedom action economic operators creating optimum conditions freedom involved exercise. , asked correctly necessarily follow models . feel trend globalization creation world monopolies, distinguished Minister India pointed , problem fragile economies. Minister wanted small medium-sized enterprises, exposed unfair competition powerful competitors, question raised respect control mergers international level. , , highly complex questions. , . Secretary-General, promotion UNCTAD , November, Expert Meeting Competition Law Policy UNCTAD, session Working Group Interaction Trade Competition Policy WTO. Expert Meeting, dealing vertical price restrictions, specific proposals small medium-sized enterprises. , , detailed careful scrutiny. conclude , respect merger control, historically merger control started 20 30 years control anti- competitive behaviour observed countries; case United States European Union. Representative Poland country good question. Freedom, sense level tariffs Globalization, competition, competitiveness development 54 formal obstacles market entry business development, necessarily market develop. countries active working market, economy consist complex system cooperation, necessarily formally established involving mafia . problem represented : market save good working economy, abstract term induce individual initiatives create economic unions. capitalist system market institutions market traditions, market patterns business patterns . country, experience books. important issues establish good pattern business activity, country succeeded replicating pattern. trust government activities field, dissemination business activities market institutions place independently. question . Lizana - platform transposing patterns market economy business association - evaluate organizations contribution development market economy . Pedro Lizana schemes patterns easily transposed country , establish contact people involved, solutions simple. informal economy great advantage, great benefit country; formalized, strong informal sector . cheap easy formalized, informal sector important. famous professor administration, Peter Drucker, improve productivity, people . Ambassador Saodah Syahruddin, Deputy Permanent Representative Indonesia listening panellists, current stage development characterized disparities. . Dharam Ghai globe today facing good food, clean water, housing, education long life expectancy, hand face globalization liberalization world economy Globalization, competition, competitiveness development 55 brought keener competition trade, investment technology. extent liberalization accelerated growth international trade, expected improve growth prospects individual countries. , time, developing countries, structurally weaker vulnerable economies, confronted short-term difficulties risk marginalization. hope global partnership cooperation assist countries facing structural impediments overcome poverty, cope unemployment problems pursue development objectives. note presentation . Lizana, mentioned increase income-generating capacity, countries problem income-generating capacity. affected international economic environment, control, volatile foreign exchange rates world commodity prices. hear view panellists problem overcome, consideration countries live commodities natural resources countries affected exchange volatility. Prof. Dani Rodrik extremely pertinent question. fact, heart lecture giving UNCTAD tomorrow morning question volatility external environment impact developing countries . , live with3/ - obvious answer. , answer close markets. experience - 1970s period volatility external environment marked, collapse growth lot developing countries, Latin America - evidence countries cope shocks emanating world economy number features common, summarize headings: extent existing social disparities, income inequality measures social cleavage economy. large extent . determinant governing countries reacted shocks man- affected, referring Globalization, competition, competitiveness development 56 institutions conflict management. Countries institutions conflict management handling shocks 1970s countries , institutions forms. democracy ultimate form institution conflict management. Countries personal liberties political rights dealing shocks countries . Countries bureaucracies . Countries institutionalized forms social insurance countries . underscored, .. complementary domestic institutions deal shocks emanate continuously world economy. Representative Egypt questions, . Rodrik . Souty. . Rodrik warned excessive violence market process. financial markets mercy Governments exercise fiscal prudence. addressed issue social safety nets national level, question Professor Rodrik thinks additional safeguards international level deal implications globalization. question . Souty related competition policy. talked misuse dominant positions referred restrictive business practices mergers, witnessed competition authorities reaching dramatically opposed views mergers enhance restrain competition. light globalization liberalization processes, question , opinion, rely national policies related competition international rules respect. Ambassador Werner Porfirio Corrales Leal, Permanent Representative Venezuela congratulate UNCTAD initiative organizing session. . successful experience Chile, South-East Asian countries, categorize share success attributable liberalization share policies Globalization, competition, competitiveness development 57 question - type public policies States pursue internationally nationally refer examples cases mentioned successful. respect objective developing domestic market, competitive services goods, proper allotment resources, deregulate liberalize access imported goods services liberalize domestic market additional regulations state competition policy, active policies, promote liberalization market forces type active policies promote competition supply distribution multinationals. experience countries Latin America, Bolivia, Peru Venezuela, introduction player, cooperatives, distributing food kind subsidy, means factor competition improves cost effectiveness money helps -income families. refers objective raising level savings productive investment. Experience Latin America demonstrates mere liberalization market forces, helped raise surplus enterprises, automatically led greater investment, successful experience converting savings greater investment Chile. Chile liberalized market, implemented active policies similar existed 1980s Asian countries - forced savings, pensions capitalization. active policy helped protect excessive vulnerability capital flows. 1980s, Chile implemented active policies extent control outflow capital. final involves comparison ways dealing competition policies. increase competitiveness exports . deregulation policies openness macroeconomic policies manage exchange rates exporters achieve competitiveness, approach exhausted Latin American experience shows . effects . . Lizana worried foreign investment flows large exchange rate country exports disadvantaged. , problem tackled active policies productive transformation Globalization, competition, competitiveness development 58 technology absorption, competition policy lasting effects. short, possibility pursuing domestic policy complements liberalization market. . Dharam Ghai remarks regionalization. emphasis trade creation removal trade barriers context regionalization. Regionalization regional cooperation comprise elements; political project, strategic concerns implications transport, communications, power social issues . moment, models. European Union regional integration, elements locked , North American Free Trade Area largely trade-oriented. developed countries developing countries, aim broader kind regional cooperation comprising economic, trade, political aspects strategic issues questions communication development. . François Souty simple answer international rules . denied , shown discussion morning, microeconomic competition policies. point representative Venezuela. synergies national regional policies international debate. debate progress discussion action national level. . Pedro Lizana dilemma regionalization globalization, regional agreements built- calendar globalization cooperation rest world, dangerous closed economy. speak active policies, group individuals authority decide arbitrarily sectors promote develop, dangerous. Globalization, competition, competitiveness development 59 twist market operate inefficient . Active policy organization, instance, private pension funds, ., creating series mechanisms market work , decide market run. Prof. Dani Rodrik respond briefly question international coordination national policy, specifically issues social safety nets. role international coordination, aspects badly rethinking. WTO Agreement Safeguards badly reformed, lot thinking international cooperation coordination area corporate taxation. main action remains level national Governments, mistake international level, WTO , order solve ' problems. context social safety nets , Egypt, public employment welfare state choice, obvious expensive. , targeting people; people target university graduates, middle class - . international community providing financing adjustment, problem solved Egypt terms coming targeted forms social safety nets. talk globalization, reaction generally area remains level national policy. . Alec Erwin , question jobs, jobs, jobs, difficulty challenge face providing jobs, jobs, jobs, sophisticated strategies developed developing countries. , convinced requires Governments national state level form types partnership. Governments work closely business community, social groups civil society reasons. , , understand business communities, policy propositions translated Globalization, competition, competitiveness development 60 effective actions, ensure societies hold process transformation. briefly agriculture crafts, important . , agriculture, beneficiation products lot attention, tremendous opportunities utilize knowledge modern farming methods, possibilities marketing products expanded, requires countries people access market knowledge. Credit important, wont helpful market possibilities. crafts, important follow European model. tremendous danger cultural historical heritage devalued destroyed produce crafts sale. part cultural revival, -establishment sovereignty pride histories. , create richness world trade craft products beneficial. due respect McDonalds, McDonalds crafts, devalue society. Trade trade; presenting culture society. Globalization, competition, competitiveness development 61 Electronic commerce 62 Part THE FUTURE OF COMPETITION: PERSPECTIVE ON ELECTRONIC COMMERCE Panel discussion held jointly Committee General Assembly York videoconferencing 1. Presentations panellists . Geza Feketekuty, Director, Centre Trade Commercial Diplomacy, Monterey Institute International Studies, San Diego, California pleasure honour afternoon participating panel. congratulate Secretary-General UNCTAD brilliant insight combining topic morning' discussion competition. developments electronic commerce potential empowering small entrepreneurs reach global market niches modest cost. individuals families successfully built businesses offering home- produced jewellery products, handicrafts computer programmes sale Internet. skills entrepreneurship chance reaching potential customers worldwide limited budget. global electronic market place transform global competition benefit small producers small consumers. transformed global market books. Electronic commerce decade driving force globalization production large corporations. large investments corporations assembly facilities facilities produce components parts world. widely shared economic benefits helped persuade WTO member countries adopt telecommunications annex General Agreement Trade Services subsequently Agreement Basic Telecommunications Services. Electronic commerce 63 question - discussing today , years, electronic commerce dimension commercialisation Internet. development pushed global electronic commerce level large corporations level small businesses households, major change. global volumes modest, major impact number areas. Consumers public electronic networks collect information products services offered sale, place order arrange electronic transport information- based products services site consumption, making virtually instantaneously. global basis. case, electronic network accessible public easier acquire information products services sale countries prices sold, revolutionary impact trade policy. people generally find prices buy countries, ' buy goods prices country. case, networks significantly reduce time, effort cost involved making purchase, national purchases. case, transport electronically product buying, virtually instantaneous consumption product service produced, locally world. point view businesses, global network opens opportunity exponentially increasing number potential costumers reaching modest cost. reduce potential business risk providing means payment , case information-based products services, delivery consumer. potential impact information distribution channel revolutionary, , raises number policy challenges countries. Governments caught surprise speed public Internet expanded Electronic commerce 64 developed countries. Governments countries began develop policy forum year, remains distinct gap market developments updating laws regulations. Existing legal regulatory structures based paper transactions transactions place sovereign territories. specifically, increase public electronic commerce raises legal issues validity electronic contracts signatures, locus taxation, distribution liability, nature electronic cash legal reach parties physical boundaries state. raises social issues protection privacy, corruption, dissemination offensive material, promotion national culture protection consumers. Governments recognized enormous stakes involved individually collectively steps address legal regulatory issues involved. United States, European Union Japan issued white papers year. OECD examined wide range issues articles policy documents. international organizations International Chamber Commerce UNCITRAL begun update international commercial code, organizations struggling issues trade marks. time , hope provide sketch ideas, policies initiatives initial policy efforts. major white papers exist OECD policy recommendations start proposition growth electronic commerce market-driven. recommend primary role government stage create legal framework electronic commerce. promote principle neutrality, holds application current tax laws government regulations electronic commerce neutral compared application paper-based transactions. words, impose discriminatory burden electronic paper-based transactions. papers recognized unique aspect electronic transactions require blend -regulation, national regulation international cooperation. highly dynamic nature current stage development requires wait-- attitude Electronic commerce 65 part government. American paper categorical explicit industry -regulation solution areas, papers emphasize government restraint adoption regulations, strangle market- driven development form commerce. agreement open access telecommunications infrastructure comparative pricing telecommunications increased competition crucial development electronic commerce. time, countries challenges regulatory separation telecommunications, cable broadcasting technologies converge global information super highway emerging. papers recognize development electronic payment systems require market-based innovation degree government guidance supervision protect integrity financial system maintain control creation money credit. US paper proposes Internet declared tariff-free zone, revolutionary proposal sounds, Governments practical matter feasible place tariffs -border trade services. , countries place tariff physical storage medium, intellectual content information entertainment products. agreement avoid tariffs Internet-based trade information-based services products give symbolic boost trade substantially alter status quo. OECD prepared number analytical papers issues arising electronic networks households purchase physical goods . networks facilitate acquisition information goods placement orders. change matters shipment customs clearance, completion transactions expensive cumbersome. OECD suggested regulatory reforms customs clearance transportation yield substantial benefits consumers seek electronic networks place orders . issues, rapid expansion electronic commerce international level poses challenges national regulations areas. long run, core outcome growth Electronic commerce 66 electronic commerce greater international cooperation regulatory issues, cyberspace transcends traditional territorial boundaries nation States. discussion focused primarily policy developments developed countries, major focus activity date. developing countries, major constraints growth electronic commerce limited public access electronic networks excessive costs telecommunications. rural areas, problem basic, lack adequate telecommunication facilities. Organized international discussions issues related electronic commerce global level remain focused narrow technical issues. wider discussion emerge WTO year countries address issues related phase information technology agreement. discussions held, , participation developing countries limited. delegations developing countries fully equipped participate discussions meaningful . UNCTAD important role play arena, Secretary-General Ricupero congratulated initiative. . Carlos Ronderos, Minister Foreign Trade Colombia , Secretary-General UNCTAD invitation discuss subject. draw attention areas opened electronic commerce. Opportunities opened trade goods services, provision digital data, -line bank transfers handling documentation, . Electronic commerce opens vast world implementing joint projects, design -line services countries, public contracting marketing products, predecessor pointed . -sale service developed electronic services. electronic trade developed indirectly. , , direct trade situation trade occurs totally cyberspace, order payments delivery carried electronic system; talking intangible Electronic commerce 67 goods services. case indirect trade, , order, payment, paper work, speak, channelled electronic system, goods processed delivered traditional channels. frame reference, question electronic trade important , provide figures gleaned documents. Seventy- cent trade business contacts fail due unsuccessful communication. Twenty- cent cost transaction related data capture paper work; 71% documents computers print computers digitalized manually - transferred computer computer; 18% orders United States typing mistakes. compels turn electronic trade, reduction 60%, published calculations, time elapses order delivery goods. bear mind cost electronic mail, -mail, 25% cost mail system world. result, resorting exchange electronic data . America, Europe, Asia, Pacific Africa, period 1995-1997, number messages relating type trade, data exchange, grown significantly. systems today Professor Feketekuty referred broadly Internet, widely system. Internet greater access users, problems security reliability, information handling money. concept electronic data interchange (EDI), referring detail, inspires greater confidence working homogenous systems enable monitor follow , offered Internet purposes international trade. , referring EDI defined exchange commercial documentation transmitted electronic means. definition close subject, question documentation trade, involves countries, customs banks - words talking consumers organizations. EDI environment environment formatted documents based international standard official entities, financial institutions, major private companies, trade forwarders, people involved international trade large scale. Electronic commerce 68 evolution EDI concerned, decade EDIFACT turning precisely basic standard transmission type trade. costs benefits systems costs - design costs development interface existing systems EDI, staff training system installation, communications turn system widely . kind instrument tremendous advantages terms innovative strategies capabilities staff efficiency, simplifies work international trade. replaces paper documents, increases response speed minimizes mistakes delays. , basic, central elements countries engage competitive trade. Colombia, foreign-trade information system helping develop basis electronic trade. ASYCUDA system customs. target institutions conceptualize processes licensing handling exports imports expeditious manner, record administrative acts, develop archives updated databases, facilitate follow- international trade operations provide users, .. private entrepreneurs engaging international trade, handle international trade, access databases information improve international trade. advantages , increased speed. Information reliable checked regularly -- date. enables enterprises adjust foreign trade improve process management inputs accounting handling inventories. Costs reduced, paper eliminated competitiveness increased. case Colombia, advantages institutions government advantages availability information, greatest importance relationships institutions analysis decision-making capacity. international trade information reaches design international policy months , late. information transparency depend discretion official. helps control corruption illegal practices. streamlining process foreign trade obtain greater efficiency. turn helps engage international negotiations, greater facility international negotiations Electronic commerce 69 greater availability updated information processes internationalization globalization. conclude, refer aspects crucial future electronic trade. , action actions Governments. , political introduce country global economy services, create infrastructure prices accessible people, prepare population challenges borderless world economy, identify comparative advantages, develop competitive strategies sectors, introduce legislation. remains Challenges remain, challenges stemming trade longer subject controls. previous speaker pointed , electronic trade subject state control. Software produced country developed payment tax haven country. question taxes impossible handle. , confronted harsh reality reconcile nineteenth-century concept nation State limited physical frontiers cyberspace technology transcends possibility legislative repressive treatment Government. major challenge relates, , world divided, 1950s haves -nots, . great challenge proceed equitable distribution knowledge mechanisms cyberspace electronic trade . reflections leave . . Tariq Sayeed, Chairman, .77 Chamber Commerce Industry Developing Countries current era witnessed fast frequent international economic level. successful conclusion Uruguay negotiations creation World Trade Organization. interdependence world economies increased. development scene , developing countries significant progress, majority developing countries struggling cope problems hunger, poverty Electronic commerce 70 underdevelopment. , process globalization liberalization trade wake revolution telecommunications intensified. introduction electronic commerce , , unfolded immense opportunities challenges promotion trade, inflow capital technology. United States America, European Union Japan headway. Internet, buy books clothing, obtain business advice, purchase garden tools hot sauce high-tech communications equipment. beginning. Trade Internet doubling tripling year. years, generate hundreds billions dollars goods services. estimates, trade volume today 2 billion dollars reach 1 trillion dollars year 2010. Internet concentrated developed countries - 16.1 million Internet hosts, 16 million OECD countries - beginning permeate developing nations. Internet spread countries manner accessible capital city, country, including rural areas. Wireless satellite technology . Internet inevitable inescapable current era, developed developing countries. , Internet developed countries, vehicle integrating global economy, create division polarity. increase disparity incomes world. , electronic commerce Internet developing countries, force narrowing income gap world. Internet positive force economic social development global sense. Internet easier companies developing countries business globally. difficult small company developing country part global marketplace. Internet, immediately access billion people globally. , Internet reach developing countries, greater force economic social development. Electronic commerce rise intense competition based survival fittest, standardization products part Electronic commerce 71 companies integration economies. question , developed developing countries poor rate literacy, speak computer literacy, infrastructure base feeble due resource constraints, rural sector telephone links, modern technology digital economy introduced -thirds world access telephones. developing countries continue confront critical macroeconomic imbalances, chronic debt burdens galloping inflation. spectre hunger, disease poverty continues haunt countries, exposed risk marginalized respect electronic commerce adequately assisted international agencies multinationals. point stress adoption digital economy raises number issues. , declaring Internet free-trade zone - Governments developing countries duty-free movement goods , protection intellectual property - sellers intellectual property stolen, buyers authentic products. , privacy essential network environment. Fourth, security protection data credit card numbers, ., required. , develop uniform rules uniform rights. Sixth, protect people objectionable material. build modern global telecommunication network accessible, affordable supports electronic commerce. sense participation partners, belonging North South, prerequisite success digital economy; , electronic commerce threatens high-tech isolationism. UNCTAD prepare paper electronic commerce pros cons, international trade inflow investment technology, benefit guidance developing countries. mechanism financial support developed countries enable switch successfully modern technology created. lagging adoption digital economy disastrous. Group 77 Chamber Commerce Industry counted full support cooperation, fact partner evolving modern global telecommunications network. renew pledge private sector Chamber Electronic commerce 72 fully support supplement efforts levels improve competitiveness, small medium-size enterprises (SMEs), increasingly globalized economy. aegis Group 77, develop Group 77 Trade Information Network Pakistan regional focal point Asia Pacific. focal point situated Karachi started disseminate business information members Chambers Commerce Industry developing countries. regional focal point Africa Cameroon; South America Colombia. Electronic commerce 73 Today, Chamber network created cooperation number institutions strategic alliance partnerships industry leaders. Cooperation UNCTAD' Trade Point Programme assures place chambers promoting trade efficiency general. network grown include 2,000 chambers commerce, making de facto global centre chamber commerce universe Internet. network acting conduit informational promotional products SMEs. network great opportunity Group 77 chambers, SMEs respective Governments promote South- South trade investment. international development agencies requested provide adequate assistance developing countries' chambers order gain access information communication technology order competitive increasingly globalized economy. importance investment promotion developing countries, Africa developed countries, provide assistance enterprises, investment promotion agencies, project investment opportunities secure investment partners electronic video means. , Internet emerging priority, submerge major issues relating debt, market access commodity problems developing countries. Building Internet-related infrastructure developing countries requires official assistance, investments multinationals. investment promotion programme developing countries give priority telecommunications. developing countries hold consultations tackle challenges potentialities arising electronic commerce. endeavour, Group 77 Chamber Commerce provide developing countries support. emphasize electronic commerce longer dream. reality coming wake information revolution world witnessed. economies twenty- century largely shaped Internet. required identify impediments experienced regions world technological base thin. joint efforts, strategy Electronic commerce 74 evolved technology economically viable spread world hindrance . Moderator question : , , referred necessity electronic commerce kind tax- free zone. framework familiar speak raise domestic resources, increase mobilization domestic resources. impinge possibilities nations raise resources development, , developing countries, income taxation bit difficult compared , instance, trade taxes. referred issue, bit . . Carlos Ronderos countries tax producers goods services today electronic trade takes , concept nation . Production longer national issue. Products assembled bits pieces world. , assembled bits pieces world cyberspace, difficult collect taxes distribute taxes development. big challenges . . Geza Feketekuty , distinction tariff-free zone tax-free zone. tax- free zone. difficult collect taxes, proposed tax-free zone. people proposed tariff-free zone. respect taxation, conversations tax authorities, concerned. remain committed taxing producers - mechanisms assessing taxes producers resident State. efficient tax administration system efficiently audit Electronic commerce 75 books enterprises, basis taxation producers. asked American tax authorities tax havens; worry tax American citizens. American citizens tax havens, authorities tax , give citizenship. problem taxing consumers. Consumption taxes virtually impossible collect, Government supervise consume electronic network . Government massive auditing efforts. sense consumption taxes real problem, producer taxes collected Government efficient system transparency record keeping. regard tax havens, big problem people . . . Carlos Ronderos agree . Feketekuty. VAT, sales taxes, consumption taxes main source revenue countries, point tax production production main source income countries. country, VAT main source revenue. Moderator question refers . Tariq Sayeed risk increasing gap access knowledge . colleagues specific policy measures order avoid gap . Tariq Sayeed talking global electronic commerce context developing countries, situation countries. country , 34 cities 34 chambers. economic developments place cities quickly cities. moment, system collection dissemination information cities developing countries. chamber working Electronic commerce 76 developing countries, fill gap, initially , creating information network countries creating focal point country. , telephone call city Pakistan expensive today United States Dubai. constraints looked , , joint effort Governments, international institutions, donors, World Bank, lending institutions. players field moving concept global village internationally. easy, developing countries marginalized, , due agreement WTO. Electronic commerce step global village, due care . involved promoting venture philosophy account shortcomings limitations developing countries facing. depth issue backlashes occurring; , happened Indonesia, Malaysia, Thailand 45 days. Asian tigers. Asian tigers progress growth rates showing. sudden, happened pursuit advancing globalization opening economies, fell victim success. 2. Follow- discussions Message .. . Kadré ésiré Ouedraogo, Prime Minister Burkina Faso " , firm intention Geneva today response kind invitation . Rubens Ricupero participate important meeting. , obligations capital. send message emphasize importance topic discussing country . Burkina poorest countries poorest continent. , unceasingly pursue efforts enable integrate global economy participate fully today’ global Electronic commerce 77 competition order attract trade investment. continue future realism, .. excessive ambition concern. globalization liberalization trade realities face . developed countries Africa, globalization source great hope fears concerns, fear globalization stop doorstep. international community give developed countries assistance support cross threshold integration prevent mechanisms international competition marginalizing . effort power participate fully development global markets. , bodies UNCTAD. bodies capable foreseeing future difficulties areas competition. time, major developed economies begun lay boundaries electronic trade. encouraging, countries , , equipped part ongoing discussions, body UNCTAD tackling foreseeable consequences type trade competition. developed countries, crucial element enabling participate actively positively progressive liberalization world trade obtain support alleviating poverty populations providing decent standards education, health -. developed countries, African countries, land-locked countries, possibility trading cheaply, easily transparently crucial. sense, prospects opened electronic commerce represent avenue full promise. , promise economic reality problems access resolved: access infrastructure, access financing, access training. , years , privilege presiding session financial services Columbus summit, felt UNCTAD born, UNCTAD close Electronic commerce 78 members, poorest members, future. themes chosen High-level Segment today confirm . assured examine results work greatest interest, success." . Rubens Ricupero convey warm UNCTAD colleagues friends assembled Committee United Nations General Assembly. moment satisfaction interactive meeting United Nations General Assembly, UNCTAD subsidiary body. time bridge considerable gap distance communicate real time York. remarkable day concentrating information technologies reshape field competition competitiveness, experience showing modern technologies put service international cooperation. heard comments panellists. points deserve attention discussions . heard mention fact electronic commerce serve helping developing countries competitive, serve powerful instrument trade developing countries. major obstacles developing countries trade fact , patterns transportation communication shaped centuries colonial rule, direct links developing countries. , electronic commerce solve problems. lack maritime transportation, provide allowing developing countries communicate enter trade operations. nature goods services information - software programmes, construction projects, publicity campaigns, art general, music - deliver Internet. powerful instrument cooperation developing countries. Electronic commerce 79 point highlight , aware, problem connectivity acute developed countries, access modern technology. introductory words priority action field areas. Firstly, measures adopted enhance access electronic commerce technologies - advanced regions, including Africa developed countries. suggest , attaining goal, good cooperation UNCTAD United Nations Geneva International Telecommunication Union important instrument. , assessment impact developing economies proposals global framework electronic commerce, including proposals tariff-free transactions Internet, . Thirdly, public private support mobilized generate partnerships promote electronic commerce developing countries, LDCs Africa , context Partners Development summit Lyon November 1998. Ambassador Oscar de Rojas, Permanent Representative Venezuela United Nations York, Chairman Committee fifty- session General Assembly great special pleasure salute colleagues meeting Geneva occasion High-level Segment UNCTAD' Trade Development Board. behalf colleagues Committee General Assembly, express great satisfaction observing technological progress carry , , historic videoconference York Trade Development Board Geneva. addressing subject acquired crucial importance development international trade relations, electronic trade. , emergence global information networks Electronic commerce 80 Internet, important impact regular trade, commercial financial ties competitiveness nations enterprises. , Member States United Nations institutions UNCTAD continue analysing issues, account proposals circulated fields regard. , involving international community formulation positive agenda trade development. specific agenda today, significance act, time delegations working economic area York Geneva interacting face face, greatest importance. recall greatest impact personally moved post York Geneva, years York, lack mutual information respective jobs. corrected. Ultimately, countries working goals, precisely occasions contribute achieving purpose. . Nitin Desai, -Secretary-General Economic Social Affairs join Ambassador Rojas greatly welcoming event variety reasons. , demonstrates capacity United Nations contribute global discussions issues cutting edge development policy. , dealing issue heart relations nations. Historically, relations nations shaped developments technology transport communications factors, world live , great possibilities electronic communications, clear development Internet shape interactions nations profoundly air sea travel . reason greatly event demonstrates potential technology greater sense collaboration cooperation United Nations system. event, Trade Development Board Committee share dialogue themes interest bodies, excellent collaborative cooperative efforts add Electronic commerce 81 capacities organizations system. . Alec Erwin emerged panellists theme close important points earlier today looked effects globalization competition, clear process profound effect economies world. clear presentations panellists electronic interchange information electronic commerce equally profound effect structures economies eventually structures societies. demands places Governments provide information efficiently, utilize electronic information systems, effective information policy information. intriguing questions emerged related effect electronic commerce economies, complex , question taxes collected, tariff-free electronic trade, . Minister Ronderos important point countries moved taxation form VAT systems main means collecting taxes. effect electronic commerce Undoubtedly structural induced economies electronic commerce, developing rapidly , pointed . important point , case services, product consumed immediately, dealing tangible products physically traded related transaction carried realm cyberspace, form trade generate pressure increase efficiency transportation systems. undoubtedly move situation transportation "seamless": information exchanges place, product move road, air sea quickly information travels, full benefits trade. , highlighted, interesting challenges face accessibility knowledge information fact fully utilized manner envisaged, trade economic actor access electronic information exchanges. exciting prospect, developing countries exploring . , country, South Africa, major means Electronic commerce 82 small medium-size enterprises, agro-industry agriculture opening information highways exchange information operation marketplace information highways. , bring commensurate efficiencies transportation infrastructure networks. point touched regulation exchange electronic data. important question developing countries appears , view , regulation electronic data exchange lot people achieve connectivity Secretary-General mentioned, easy countries hook information systems. interesting vexing question developing countries degree influence investment decisions connection information highway. , state developing countries farsighted issue , investment decisions private sector rule gravitate profitable -added services underpin commercial world. developing countries, investments areas data systems exchange information social purposes. , , important challenge Governments developing countries, reinforces point earlier today developing countries forming regional cooperation zones include cooperation respect telecommunications systems order ensure full spectrum potentialities electronic-data information systems provide realized developing countries. morning, greatest danger marginalization faces LDCs developing countries lie inability utilize modern production systems, central feature modern production systems precisely information exchange. discussion extremely timely. luxury time discuss coherent regulatory frameworks ensure genuine harnessing potentiality global exchange information. Electronic commerce 83 . Kassahun Ayele, Minister Trade Industry Ethiopia refreshing hear points view expressed distinguished panellists issue electronic commerce. , months , issue sound science fiction African countries, LDCs. express gratitude congratulations UNCTAD identifying action-oriented topic High-level Meeting Trade Development Board. shows UNCTAD lost ability chart future trade development, provide intellectual leadership areas, offer practical means enhance developing countries’ participation international trade. direct answers questions light fact panellists raised issues , presented solutions, stated problems. heard interesting views extent, nature consequences globalization economies poorer countries. interested hear views panellists emerging global information networks contribute raising standards living populations countries , people live rural areas electronic commerce move large urban areas tool small enterprises . .. Prabhu, Commerce Secretary, India pose simple question. Secretary- General electronic commerce powerful technological tool trade holds possibility developing countries leapfrog stages development reap benefits. India tool offers enormous promise. requires great deal improvement infrastructure, human resources, . panellists practical ways ensuring opportunity missed, role UNCTAD corollary question relates legal framework . Feketekuty referred information telecommunication rates connected issues. matters UNCTAD play role terms dissemination information helping developing countries derive maximum benefit electronic commerce. Electronic commerce 84 distinguished panellists explain UNCTAD developing countries regard. . Geza Feketekuty start proposition electronic commerce ideally suited bring rural areas world economy, presuppose investment human resource development infrastructure. cite . years worked Government Barbados. Barbados invested basic infrastructure basic human resource development, island people working electronic-commerce-related activities, information processing kinds, accounting, operations insurance companies North America, . , , role government bring population basic level computer general literacy create infrastructure. realize infrastructure longer costly , small satellite dishes connect global communication system. required level infrastructure investment significantly reduced modern technology. distinguished Minister South Africa talked increased efficiency government. issue accounting rates question regulation creating framework competition telecommunications bring accounting rates . , accounting rates negotiated bilaterally telecommunications company country telecommunications company . reason accounting rates high countries continue monopoly charges high rates. needed open process greater competition. happened developed countries. , issue creating regulatory regime facilitates entry kind world. UNCTAD important role play. mentioned earlier, activity terms international discussions area developed countries. Frequently developing countries represented, invited, people attend kinds meetings. UNCTAD extremely important role play Electronic commerce 85 monitoring internationally, disseminating information, helping educate delegates developing countries important interests stake, helping participate meetings count, UNCITRAL, discuss commercial law, ITU International Chamber Commerce. organizations, developing countries playing active role, UNCTAD . . Carlos Ronderos comment leap required give technology developing countries interesting point. , fact technology impossible future. Latin American countries integrate quickly digital system analogue system rid advance. result, adapt quickly easily developed countries technologies place. satellite system enter operation year provide local technology parts world, absolutely convinced essential tool developing countries. competitive terms communications avenues work put state monopoly terms telecommunications. state monopoly telecommunications telecommunications expensive competition carriers problem. important reduce cost telecommunications economical systems calling companies, allowing free play competition permitting communications world dollars. technology . big problem - population educated trained technology people overcome fear technology system real challenge . respect UNCTAD essential role play, boils transmitting knowledge breaking walls fear people technology. Electronic commerce 86 . Tariq Sayeed questions relevant , talking standards living, extension facilities talking rural areas important. connection, literacy important developing countries, difficult talk electronic commerce people read write. Attention paid means raising level education developed countries developing countries. , feel World Bank play major role financing projects. , concentrating cities developing countries. change focus. attention paid rural areas developing countries. regard UNCTAD' contribution, organization world interpret regulations WTO UNCTAD, important role play respect. related issues , technologies developed countries. free movement economic factors, factor strongest point developing countries, labour. scope moment WTO arrangements movement skilled labour, encouraged, skilled labour equal opportunities moving , capital investment . kinds areas addressed. important growth GNP prosperity reaches man street. People buses, health facilities, education. economic development directed prosperity selected class people resolve issue human development . kinds areas concentrate. Representative United Republic Tanzania, York behalf Group 77 China, express appreciation important interaction York Geneva important subject electronic commerce. Electronic commerce 87 questions, endorse statements Secretary-General UNCTAD Ambassador de Rojas critical role electronic commerce terms development process. question divided parts. Firstly, follow- issue role UNCTAD development electronic commerce developing countries, developed countries. details Secretary-General UNCTAD panellists precisely priority areas addressed important field, account . Erwin regional cooperation. , precisely priority areas UNCTAD UN system address order marginalization reduced. , question legal framework electronic commerce. elaboration - precise additional complementary elements discussed context electronic trade legal framework concerned. Representative Luxembourg, York read European press, hear European companies subcontracted activities, countries Asia, electronic links, shows parts developing world managed establish place electronic commerce. aspect debates York concerns potentialities South-South cooperation, addition North-South cooperation. potentialities exist electronic commerce South-South cooperation . Rubens Ricupero question UNCTAD people aware pioneering role UNCTAD playing area 1994. major fields UNCTAD contribution. practical field information technology conduct transactions, matter international negotiations important question. Electronic commerce 88 regard practical side, UNCTAD pioneered concept trade efficiency based information technology. aware, 1994 UNCTAD organized important symposium Columbus, Ohio. symposium devoted launching trade efficiency programme based, , concept -called trade point. trade point trade point locus, place, , roof, information technology, telecommunications computers, theoretically conduct elements business transaction, .. obtain information, establish contact sellers buyers, negotiate, conclude actual contract electronic signature, delivery product intangible nature, pay. single place, access trade information, information documents required export import, information customs clearance, access export credit insurance. range tasks trade point, trade points established 100 countries world. proud country origin, Brazil, largest number trade points - ten trade points operation. UNCTAD receiving financial cooperation European Union, instance, provide establishment trade points 20 countries Africa. opened Romania. reality. aspect, negotiation aspect, potentiality reality. negotiations matter place . deduce signs. President Clinton, speech 1 July, mentioned matter, record hopes multilateral agreement 12 months. visiting South America, raised issue South American countries visited. European Union, meeting Bonn, produced substantial detailed declaration matter multilateral discipline covered. imagine matter , ministerial meeting WTO, people aware. role UNCTAD, weeks , September, meeting Expert Group Geneva, International Telecommunication Union, addressed specific matters exploring giving information developing countries. Electronic commerce 89 Moderator question relates electronic commerce framework negotiations services WTO. . Geza Feketekuty , discussions WTO issues related legal framework electronic commerce. Discussions area , , place York United Nations Commission International Trade Law, delegations discussing model commercial law. turn, , World Trade Organization, agreements negotiated WTO relevance legal framework electronic commerce. important agreement telecommunications annex General Agreement Trade Services. telecommunications annex established basis access -added telecommunication services, effect regime , , legal foundation developed subsequently assure access connectivity, discussed Minister Erwin. agreement WTO agreement basic telecommunication services, regime competition basic telecommunication services, key element legal structure future system electronic commerce. . Ricupero mentioned, President Clinton called tariff-free zone information-based transactions Internet, asked 12 months. intention United States raise issue context ITA II, .. phase Information Technology Agreement, negotiations beginning fall. predict reaction countries , clear negotiations trade services beginning year 2000, electronic commerce central issue. Moderator question South-South trade. advantage Electronic commerce 90 South-South trade electronic commerce . Tariq Sayeed great potential developing South-South trade electronic commerce, precisely reason creating information network developing countries. time, thought establishing consortium developed world International Chamber Commerce. strongly feel electronic commerce increase immensely trade relations countries South North South. . Auguste Paraina, Minister Trade Madagascar Panellists referred earlier risk marginalizing LDCs. countries firms English- speaking run risk marginalization. forget , respect virtual market, dealing major firms; ensure market benefit small medium-size micro firms. , concern, apprehension competitiveness power participate small medium- sized firms countries English-speaking. Ambassador Nicolas Imboden, Federal Office Foreign Economic Affairs, Switzerland talking . address issue electronic commerce goods services information , issue opinion. heard today powerful information technologies trading. question - rules multilateral trading system supposed assure free movement goods services. Electronic data represent powerful market instrument, change manner trade. efficient, markets perfect. matter fact, ensure transparency, competition market size, Electronic commerce 91 fundamentally . morning spoke lot globalization, talked globalization . tip globalization, real global economy electronic commerce reality majority countries. Electronic commerce competitiveness people, industries nations. , . time technology, competitiveness , interested identify electronic commerce discriminate type economy, developed developed. matter fact, electronic commerce helping developing countries overcome major bottlenecks suffer, size market, access information, transparency proximity consumers. , electronic commerce discriminate theory discriminate simple fact access. issue developing countries, solved regulations. solved investments technical assistance. role Governments multilateral community regulation information technology appears goals field. ensure free competition, free competition, free terms Governments terms monopolies private sector. dominated field question company, Microsoft. , assure, , level playing field nations industries. , ensure access advantage opportunities created. , standards field, private sector market figure standards efficiently Governments . Moderator leave market, enactment competition policies - role Governments setting rules Electronic commerce 92 . Geza Feketekuty , answer , create rules electronic transactions se. fact, principles mentioned common policy papers developed concept neutrality. Government policy neutral paper transactions electronic transactions. question , , discussions regulations area shift paper electronics requires commercial laws, based assumption written pieces paper. move written pieces paper electronic records, understanding constitutes legal document. legal documents protected constitutes legal signature constitutes legal verification party transaction set issues tackled medium. legal framework raises questions cyberspace longer necessarily identify territory transaction takes place. Governments assert authority server located territory, producer consumer located territory. legal issue Governments resolve. legal liability taxation, , question legal framework question addressed, cyberspace place envisaged current structures law. set issues relates fact forms government regulation difficult enforce cyberspace. , questions disinformation, pornography, ., responsibility country consumer control supplied country areas. case protection consumers - protect consumers producers located territories cooperation Governments ensure usual social functions government carried reasonable . , area great deal -regulation industry, negotiating agreements international governmental level easy. easier private sectors countries develop norms meet objectives civil society social, responsible conduct. Electronic commerce 93 place, Governments step work rules. needed form regulation electronic commerce se. case. . Rubens Ricupero Summing , traditional trade relied called border measures, tariffs -tariff measures applied border. true intellectual property. situation , physical material crossing borders, flows information computer computer. rules . Moderator question posed Minister Madagascar. person answer Minister - English-speaking country, Minister Ronderos. Spanish- speaking countries disadvantaged area due fact uniform language - English language . Carlos Ronderos difficult question answer. widely spoken language world broken English. bilingual teaching countries fundamental issue, field countries great efforts provide education people access cyberspace. , case Latin America, due influence television United States, English widely spoken language taught schools. doubt international language English. Ambassador Oscar de Rojas absorbed interesting compelling discussion. York, specialists fields. suddenly knew Electronic commerce 94 participate positive discussion, happy UNCTAD kind discussion place UNCTAD, part , part family. Representative Poland, York feel privileged part conference. heard questions expressing numerous worries electronic commerce. question kind. concerned United Nations bodies include developed economies Central Eastern Europe electronic commerce. afraid ready advantage fully. steps programmes introduced prevent existing gap economies widening. extremely urgent , , question training adequate number specialists countries addressed. Moderator question asked representative Poland refers countries transition, opportunity participate technology discussing, related general question - international level foster training countries , order advantage technology important trade . Alec Erwin turn interesting developments, , speaking South Africa, meetings training, emerged training large numbers quickly ability computers easy. gauging quickly step , South Africa finds unusual position, highly developed information technology industry position racial discrimination, bulk high-level skills computer sciences technology lay population group. Ministry Electronic commerce 95 Telecommunications Communications embarked major training exercise move people rapidly technology areas levels, signs promising quickly. regulatory agencies introduced South Africa, agencies manned highly skilled persons. feel optimistic training information technology highly skilled levels easier . working closely India, fact, India interesting case study rapidly develop effective large information technology industry. . Geza Feketekuty point refers Minister Erwin . important establish clear legal framework, small enterprises, developing countries, hesitant enter system electronic commerce legal framework. work UNCITRAL absolutely critical establishing clear legal framework. point mention mentioned understated. cost participation key, means telephone rates , brings regulatory forms telecommunications sector. countries . international community . point , Minister Erwin , technology involved lends effectively training. fact, Secretary-General Ricupero participated programme early summer broadcast 300 sites Latin America. result technology. presupposes minimum computer literacy people access systems. ultimately bring human resource development. . Carlos Ronderos Governments great effort. fast Electronic commerce 96 electronic trade, wait days customs, health permits import permits. state involve electronic trade, private sector stopped barriers paper- working Governments impose. Representative Peru, Geneva future multilateral disciplines electronic trade , , role UNCTAD great disparity economic development exists developed developing countries. Ambassador Anthony Hill important points , desirable goal determine nature global economy, focus recovering sovereignty qualitatively changed circumstances. caution misreading reality. issue answer - qualitatively changed circumstances legally binding rules disciplines multilateral international organizations. rules disciplines cut national borders reach heart national economic policy-making national economic space. reverse political domination, easy reverse economic penetration. Developing countries parties rules disciplines binding willingly eyes wide open. issues understood, market power unequal, decision-making undemocratic, leads reverse recovering sovereignty - leads loss sovereignty. , sharing sovereignty, true democratic multilateral negotiation . . Feketekuty, panellists Secretary-General spoke number developments. served Chairman Group Experts intergovernmental level similar subject, based conclusion : Singapore, undemocratic plurilateral agreement information technology (ITA), Electronic commerce 97 agreement adverse impacts number developing countries. . Feketekuty spoke ITA II, multilateralized, fear find bound rules necessarily fully understood. omitted mention understanding satellite technology developed ITU. omitted speak importance multilateral rules protect intellectual property holders protect consumers. omitted mention unilateral evolution settlement accounting rates, important developing countries terms expanding universal service. , central point simple - UNCTAD role, clear role prepares developing countries true partners development negotiations body. . Geza Feketekuty , , agree Ambassador Hill role UNCTAD prepare developing countries participate effectively global negotiations related issues area. mention number issues raised limited time , task ITA. ITA bound countries subscribe ; agreed remove taxes areas concerned. bind . suspect ITA II . exercise group countries decide prepared eliminate restrictions eliminate tariffs sets products. undemocratic. . Alec Erwin difficulties process plurilateral agreement commences. binds countries sign, inevitably deal crucial principles , case, electronic data exchange. guard , precisely -selected plurality , interpretation crucial principles takes place view prism, heavy weight subsequent negotiations. concerns plurilateral expansions multilateral. truth avoid , countries move . Electronic commerce 98 fully share view UNCTAD play active role, initiative, terms promoting widespread awareness principles involved assisting actors plural agreement , , shaping issues. refer difficult strategic choice South Africa . concerned, result history, complete absence infrastructure, basic analogue telephone systems, large parts country. policy objective, policy objective provide telecommunications broad spectrum people cities, rural areas. , circumstances, trade-, wanted important telecommunications corporation: lot training, large part subsequent strategic equity partnership agreement massive emphasis forms training. objective spread infrastructure rural areas. , competitive telecommunications environment, elected, wrong tested time, provide exclusivity period, objectives met full. represented complex debate automatically competition. publicly owned corporation fact concentrating cities, areas poverty black persons ; staying high -added services . slightly prism. discussion UNCTAD absolutely critical, objectives policy packages put table progress multilateral agreement, , achieved process . Electronic commerce 99 Partners Development 100 Part PARTNERS FOR DEVELOPMENT Message . Kofi Annan, Secretary-General United Nations " pleased convey message joint session High-Level Segment UNCTAD' Trade Development Board Committee General Assembly participate official launch "Partners Development" initiative. worthy undertaking, fully compatible thrust work development peace reform process modernizing United Nations family organizations. salute colleague, UNCTAD Secretary- General, . Rubens Ricupero, commitment contributions. Government France Mayor Raymond Barre Lyon support invitation host meeting Lyon year assess progress. "Partners Development" bold realistic. Bold involve civil society, -governmental organizations private sector, deeply work United Nations. , fulfil main objectives, strengthening organization' efforts area economic social development. realistic focuses concrete partnerships practical solutions. , traditional United Nations' resources development increasing. initiative tap human, technological financial resources United Nations' reach today' world greater official development assistance. importance regard exaggerated. participate partnership projects chosen work United Nations contributions uniquely . organization' universal impartial Partners Development 101 perspective, multicultural approach highly professional dedicated staff formidable combination. "Partners Development" offers venue United Nations demonstrate real money. pledge full support initiative working . accept wishes success." . Rubens Ricupero comments principles guided design preparation initiative "Partners Development", city Lyon generous offer host meeting held context. gratitude addressed Mayor Lyon, . Raymond Barre, warm reception gave proposal. stature statesman, university professor leader international public opinion constitute crucial asset success Partners Development. great pleasure today personal representative . Barre, Maître André Soulier, Deputy Mayor Lyon European Parliamentarian. Maître Soulier humanist reputation borders country, President Human Rights Commission European Parliament. responsibility conducting efforts city Lyon organize meeting Partners Development. . André Soulier, Deputy Mayor Lyon great honour privilege speak today occasion meeting Geneva York Trade Development Board. behalf city Lyon Mayor, . Raymond Barre, French Prime Minister, Secretary-General UNCTAD, . Rubens Ricupero, invited today Geneva. spring year, number persons present room part success UNCTAD IX. weeks , city Lyon hosted prestigious international meeting, Summit Partners Development 102 Heads State Government .7. Lyon Secretary-General UNCTAD, guest .7, time set results Midrand Conference. symbolic matter pure coincidence. real coming , sign . fact, Midrand Declaration adopted UNCTAD ninth session, invited Secretary-General "convene meeting actors development advise enhance participation civil society UNCTAD build lasting partnership development -governmental actors UNCTAD". learned possibility meeting Partners Development, Mayor, . Raymond Barre, immediately showed great interest subject told assistants aids . presentations . Gurunlian team authorities, private public decision-makers Lyon, convinced great task embarked brought successful conclusion. great pleasure pride confirm today, behalf Mayor Lyon, formal invitation city Lyon host meeting Partners Development November 1998. project fits perfectly historical, cultural economic profile Lyon area. add city Lyon, contrary people Lyon , built people - Italians, Germans, people East - returning traditions historical invite . , Lyon friendly, welcoming, convivial city. add . conversations Ambassador France United Nations Geneva, . Daniel Bernard, . Raymond Barre convinced full total support state, message . Raymond Barre, welcoming person Lyon. agree, invite President French Republic highest-ranking members French Government participate great world meeting. elected officials dignitaries city region began anticipating preparing ground. augurs success meeting. conclude invitation Partners Development 103 France, Lyon, heart. , welcoming Lyon year' time. . Rubens Ricupero Maître André Soulier, . Raymond Barre generous offer meet Lyon. enthusiastic warm-hearted words, capture spirit intend work success Partners Development. add , , reason joy meet Lyon, capital Gaul. city industrial revolution began, textile industry, setting revolt poor weavers, city glorious . city great affinities Geneva, part Switzerland welcomes UNCTAD. initiative Partners Development result effort renaissance UNCTAD reality. organization, years , realized major crisis present affecting international organizations, United Nations system talk reform, fact organizations integrate debates, life, activities, actors emerged scene principal feature international relations century. -governmental organizations, private sector, research centres universities. managed fully understand scope phenomenon, extremely important . important subjects century evolution human rights evolution environment, subjects developed high level intensively States, general recalcitrant dealing , - governmental entities. interests integrate civil society, statesmen World War International Labour Organization International Labour Office set . understood workers employers involved time Governments. intend Lyon Partners Development 104 pragmatic manner. time international meeting discussing document, debating basis papers conclusions sort ; agreement concrete projects change people' lives developing countries. , intend bring projects invite partners simply implement . discuss projects , designed projects. spoken trade points, case, initiative Geza Feketekuty, begun project Monterey Institute California San Diego State University intend bring dozen organizations aim teaching, training forming personnel foreign trade, techniques negotiation advantage opportunities created international negotiations. intend add question trade questions investment. projects subjects - commodity risk management, micro-credit developed countries, . intention work pragmatic, specific projects discussed partners Governments . , , free agree , hope Lyon fact ideal framework birth day bring breath fresh air international organizations, . , , pleased , Maître André Soulier, transmit distinguished Mayor, . Raymond Barre, fellow citizens, joy city. Ambassador Oscar de Rojas conclusion joint session Committee Trade Development Board. hope opportunities future technological advances intergovernmental activities United Nations. hope opportunity Committee Trade Development Board identify important issues interest intergovernmental bodies. , colleagues Geneva Partners Development 105 , days Committee item 95() agenda General Assembly, entitled "Trade Development", report Trade Development Board presented . great deal easier year debate helpful meeting allowed Trade Development Board , closely. Finally, opportunity , days, 11 November, part series special activities carrying year Committee follow- number events occurred year, interesting panel occasion fiftieth anniversary Havana Charter Trade. theme panel " Challenges Multilateral System Trade", organized secretariat UNCTAD. pleased Secretary-General UNCTAD, . Ricupero, offered moderator panel, . Moderator asked words summarize debate, briefly. morning discussion globalization, competition development, asked number questions. questions question, conditions globalization beneficial threat, countries, people countries specific sectors exposed competition feel threatened. interesting discussions morning issue emphasis domestic policies, including competition policies, order globalization beneficial countries societies. emphasis domestic policies, examples mentioned. Countries ready exposed international competition, invest physical social infrastructure, invest good governance, develop good competition policy order overwhelmed major economic powers. panellists, good domestic development policies, broad terms, passport world economy. ; participation world economy sufficient sustainable human development Partners Development 106 society. political gist discussion morning. time, , number questions. threat, globalization fast, decided democratic basis decisions bigger powers big financial companies. fast; -sided; economic. agree, , globalization irreversible process, approach today - join process, stop . Join process; message delivered , representatives public sector, diplomats, politicians. understand process globalization, clear afternoon, process led technology economic powers. implicitly understood , international organizations Governments participated process globalization, facilitate process, , work , guide steer . longer era steering. leave lot market, economy, technology. time, , concerns leaving technology economy. refrain completely guiding process facilitate process, bit Statements regard specific issue electronic trade, discussing wider disparities due globalization, aware fact mile international organizations, economically Geneva politically York. steps mentioned connection. Firstly, discuss timing, sequencing phasing, economies societies move speed. panellists spoke individual countries participating process globalization terms, important , Minister Erwin , responsibility people. Timing, sequencing phasing discussed framework international organizations. , broader approach . discussed electronic trade, discussed trade, discussed Partners Development 107 finance Hong Kong, globalization ecology, globalization measures environmental character, globalization employment policies, globalization policies related issue political instability insecurity countries long facilitation globalization process economy, terms facilitation globalization ecological, political, environmental social issues, create lack balance world society. issues, phasing broadening, call politicians public sector guide economy complementary sectors economy, mentioned. brings task. create countervailing forces work basis interest, related issue morning - competition policy. real competition equal footing, greater promise balance stability distribution economic power lopsided. fourth final task relates fact global economy threat people. extent, increasing uniformity rules behavioural standards, oriented stability countries, stability predominant democratization. final task , , create world society benefit process globalization. mentioned today, good governance includes democratization, United Nations groups societies, civil society groups, speak participate process globalization order leave process globalization economic power. tasks international community - tasks United Nations, Geneva York. reason important joint session Geneva, economic orientation UNCTAD, York, Committee broader discussions social political issues. hope reform United Nations enable challenges. Partners Development 108 . Rubens Ricupero conclude meeting , discussed problems related information technology, favourite phrases Norbert Wiener, great mathematician, , , founder cybernetics. : " informed free". confess time read phrase, difficulty understanding link information freedom. , reflection, conclusion intention show free choose, choose, options, information options. informed options, ' choose, ' free. phases globalization, mercantalist capitalism industrial capitalism, technology domination exploitation, positive consequences ensued. , , phase final phase globalization, information, science technology oppression man liberation. Ambassador Goce Petreski, Permanent Representative Yugoslav Republic Macedonia, President forty- fourth session Trade Development Board , behalf Trade Development Board express sincere contributed success session. meeting closes, consolation fact point departure. . Partners Development 109 Notes 1/ report Trade Development Board forty- fourth session, UNCTAD document TD//44/19 (Vol. ). 2/ High-level Meeting Integrated Initiatives Developed Countries' Trade Development, 27-28 October 1997. 3/ Eighth Raul Prebisch lecture, delivered 24 October 1997.