Sovereign Debt Restructuring, Bridging Digital Divide Focus as Second Committee Debates Macroeconomic Policy, Information Technologies for Development
Disorderly restructuring of sovereign debt could lead to costly socializing of private debt, attendant economic distress and significant human suffering, the Second Committee (Economic and Financial) heard today as delegates met to discuss external debt sustainability and development.
Richard Kozul-Wright, Director of the Division on Globalization and Development of the United Nations Conference on Trade and Development (UNCTAD), described how recent litigation by bondholder holdouts against Argentina “led to intensified international debate on the need for a robust mechanism to improve efficiency, fairness and coordination in sovereign debt restructuring”.
Calling for vulture funds to be stopped from paralysing debt restructuring efforts, Argentina’s representative welcomed the General Assembly decision to establish a multilateral framework on sovereign debt restructuring, which met the needs of many countries that had been affected by gaps in regulation of the international financial system.
Several delegates also expressed their concern about vulture funds. Bolivia’s representative noted that they hampered future debt-restructuring processes and should never supersede a State’s right to protect its people. Sharing his view, El Salvador’s representative stressed the importance of preventing such funds from paralysing development efforts.
Highlighting that debt relief and restructuring was not the only route, the representative of the United States called upon countries to adopt effective debt management strategies and manage their borrowing and lending. She did not support the establishment of the sovereign debt reduction mechanism called for by some, nor did she support a super national mechanism to override the terms in existing bond contracts.
The Heavily Indebted Poor Countries (HIPC) Debt Initiative and the Multilateral Debt Relief Initiative (MDRI) were discussed by several delegates. Ethiopia’s representative said that drawing on those initiatives, his country’s debt position had become sustainable. However, some bilateral and commercial creditors did not accept the principle of the enhanced HIPC due to a lack of an instrument that obliged them to abide by it. Therefore, such a mechanism should be established. Expressing similarly mixed experience, the representative of Bangladesh noted that despite the benefits that some of the least developed countries had derived from those initiatives, many HIPCs continued to be at risk of debt distress.
Jamaica’s representative highlighted that the middle-income country status of many Caribbean States constrained their ability to access concessionary financing, and prevented them from benefiting from the HIPC or MDRI initiatives. Non-HIPC’s facing insurmountable debt distress needed international assistance and a new measure of development going beyond gross domestic product (GDP) had to be created.
Despite its high debt burden and eligibility for HIPC and MDRI, said Sudan’s representative, his country had been prevented from taking advantage of preferential treatment due to sanctions that kept it out of the HIPC initiative and other sources of financing. Greater attention must be paid to countries emerging from conflict and others in special situations, he said.
The Committee also discussed information and communications technology (ICT) for development. Dong Wu, Chief of the UNCTAD Science and Technology Section, said the 10-year review of the World Summit on the Information Society (WSIS+10) offered a chance to take stock of progress and gaps to contribute to full attainment of goals and harnessing ICT for the benefit of society. Also introducing the report “Communications for Development in the United Nations System” was Ricardo de Guimarães Pinto, Liaison Officer for the United Nations Educational, Scientific and Cultural Organization (UNESCO).
Several delegates were concerned about the continuing digital divide between developed and developing countries. India’s representative noted that almost 90 per cent of those without Internet access were in developing countries. Moreover, the representative of Costa Rica was concerned about the substantial differences in broadband access, availability and affordability between developed and developing countries. In that regard, it was important to ensure that the benefits of new technologies were available to all, he said.
Speaking on debt sustainability were representatives of Costa Rica (on behalf of the Community of Latin American and Caribbean States (CELAC)), Brazil, Algeria, Nicaragua, China, Russian Federation, Iran, Zambia and South Africa.
Speaking on ICT were representatives of Bolivia (on behalf of the “Group of 77” developing countries and China), Trinidad and Tobago (on behalf of the Caribbean Community (CARICOM)), European Union, Brunei Darussalam (on behalf of the Association of the South East Asian Nations(ASEAN)), Brazil, Israel, Russian Federation, United States, Sri Lanka, Azerbaijan, Algeria, Belarus, Zimbabwe, Japan, Thailand, Morocco, Bahrain, China, Côte d’Ivoire, Iran, Dominican Republic and Zambia.
Representatives of the International Telecommunications Union (ITU), and Food and Agriculture Organization (FAO) also spoke.
The Committee will meet again at 10 a.m., on 14 October to consider Item 20 of its agenda: Implementation of the outcome of the United Nations Conference on Human Settlements (Habitat II) and strengthening of the United Nations Human Settlements Programme (UN-Habitat).
Macroeconomic policy questions: External debt Sustainability and Development
The Second Committee (Economic and Financial) met this morning to consider macroeconomic policy questions. Before it was a report of the Secretary-General on “External debt sustainability and development” (document A/69/167).
Introduction of Reports
RICHARD KOZUL-WRIGHT, Director of the Division on Globalization and Development of the United Nations Conference on Trade and Development (UNCTAD), said maintaining sovereign debt was “not only fundamental for a country’s capacity to finance national development strategies, it is also central to ensuring a stable macroeconomic environment conducive to robust economic growth and sustainable development”. In developing countries, debt stocks were rising at above average rates and debt rations were worsening despite export growth improvements. Many such countries had begun to issue bonds, as they could do so at a lower interest rate compared to domestic borrowing. The Heavily Indebted Poor Countries (HIPC) Debt Initiative and Multilateral Debt Relief Initiative (MDRI) relieved poor countries in debt distress, enabling more poverty reduction resources, though most HIPCs remained off-course in achieving the Millennium Development Goals. Lessons from the initiatives had to be learned and new challenges tackled, notably the need to assist non-HIPCs in debt distress.
He described how recent litigation by bondholder holdouts against Argentina “led to intensified international debate on the need for a robust mechanism to improve efficiency, fairness and coordination in sovereign debt restructuring”, noting that disorderly restructuring could lead to costly socializing of private debt, attendant economic distress and significant human suffering. Litigation against Argentina had also highlighted the issue of legal-forum-fragmentation, where different courts interpreted identical clauses differently, producing divergent rulings. The result was “greater incoherence and unpredictability in debt restructuring”, making future debt restructuring more difficult as debtors were “left with only moral suasion and diplomatic relations as the means to encourage creditor coordination”. With existing procedures characterized by procrastination, there was a need for an international mechanism to coordinate debt crisis resolution. The Assembly had recognized the need to design a debt workout mechanism and discussions were needed to ensure its legitimacy and economic effectiveness. “It is time for the international community to come together to find a solution,” he said.
Statements
SACHA LLORENTI (Bolivia), speaking on behalf of the “Group of 77” developing countries and China, said questions of international trade, reform of the financial system, global economic governance and debt were crucial to pursuing development objectives. International financial institutions needed reform and a global mechanism was needed to provide resources for market stabilization in the event of crisis. Developing countries needed equitable representation and a voice in global economic governance, while transparency and regulation was needed in the financial sector. Capital markets needed to play a greater role in development, as did international trade. It was essential to establish and uphold a universal, fair, rules-based, open, pro-development, non-discriminatory, inclusive and equitable multilateral trading system, with the World Trade Organization (WTO) helping developing countries find ways to boost economic and social development. All subsidies needed immediate elimination, especially those connected to agriculture.
The international financial architecture had major gaps in its ability to provide timely, effective solutions to sovereign debt distress, he said. Sustainability, effective management and the guarantee of adequate repayment capacities were essential to the development efforts of States. The emergence of vulture funds was a concern. Their highly speculative nature and the systemic implications of their actions hampered future debt-restructuring processes for developing and developed countries. They should not be allowed to paralyse debt-restructuring efforts and should never supersede the right of a State to protect its people. Agreements reached between debtors and creditors within the context of sovereign debt restructuring processes had to be respected and adoption of General Assembly resolution 68/304 was welcome, particularly its aim to negotiate the establishment of a multilateral legal framework for sovereign debt restructuring processes.
JUAN CARLOS MENDOZA-GARCÍA (Costa Rica), speaking on behalf of the Community of Latin American and Caribbean States (CELAC), said the issue of debt sustainability was essential for underpinning growth. Both debt sustainability and effective debt management, as well as the determination of adequate debt repayment capacity that did not impair sustainable development perspectives, were core factors to be considered in Member States’ efforts to attain national and international development goals. Past resolutions had stressed the need to address systemic fragilities and imbalances, and to reform and strengthen the international financial system. They had also reaffirmed that multilateral institutions, including entities within the United Nations system, played an important role in assisting countries in achieving and maintaining debt sustainability.
He said that the adoption of sound practices in the management and governance of sovereign debt was crucial to the promotion of economic growth and development through sustainable and good-quality finance. The global sovereign debt system needed to be harmonized as sovereign debt crisis resolution was governed by loose networks and ad hoc arrangements. He recognized the importance of a timely, effective, comprehensive and durable solution to debt problems, and underscored that progress had been made through debt relief programmes to poor countries, including through the HIPC Debt Initiative and the MDRI. He welcomed General Assembly resolution 68/304, entitled “Towards a multilateral convention to establish a legal regulatory framework for sovereign debt restructuring processes”.
COURTENAY RATTRAY (Jamaica), speaking on behalf of the Caribbean Community (CARICOM) and associating himself with the Group of 77 and China, CELAC and Alliance of Small Island States (AOSIS), noted that the report highlighted the challenge posed by unsustainable debt burdens in his region. The most severely indebted countries held debt to gross domestic product (GDP) ratios in excess of 100 per cent. Debt servicing outstripped health and education spending, illustrating its far-reaching implications for socioeconomic development. Though the sovereign debt crisis in the Caribbean had deepened over the previous decade, it remained “a silent crisis”, attracting a level of attention not in keeping with its magnitude. The middle-income country status of many Caribbean States constrained their ability to access concessionary financing and the region had not benefited from the HIPC Debt Initiative or the MDRI.
Non-HIPC’s facing insurmountable debt distress needed international assistance and a new measure of development going beyond GDP had to be found, he said. The current measure did not account for particular vulnerabilities or the reality of the situation on the ground. For example, in Saint Vincent and the Grenadines, a few hours of rain had wiped out 17 per cent of the country’s GDP. CARICOM leaders had agreed on the need for debt sustainability to tackle development. A regional debt management mechanism and a CARICOM debt advocacy team were being established to ameliorate the debt situation in the region. There could be no sustainable development without reduced indebtedness, and debt reduction had to be part of the outcome of the upcoming meeting on Financing for Development. The inclusion of a target on debt sustainability in the development goals was welcome, as was the aim to tackle debt sustainability and management in the post-2015 agenda. A HIPC initiative focused specifically on small island developing States was needed and he praised adoption of General Assembly resolution 68/304.
ABULKALAM ABDUL MOMEN (Bangladesh), speaking on behalf of the Group of Least Developed Countries, and associating himself with the Group of 77 and China, said the international community must address the Ebola crisis and its impacts, among others, through debt service moratorium and a subsequent full debt cancellation for Guinea, Liberia and Sierra Leone. Despite numerous initiatives, the external debt and debt-servicing obligation of the least developed countries continued to grow. In 2013, the outstanding debt of the 48 such countries had increased by $16.8 billion or 9.5 per cent compared with 2012. The debt to GDP ratio had increased from 25.5 per cent to 26.5 per cent, and the ratio of total debt as a percentage of exports had increased from 87.1 per cent to 89.4 per cent. For many of them, the accumulated debt burden had become a drawback for financing their development.
He recognized the benefits that some least developed countries had derived from the MDRI and HIPC initiatives. However, many HIPCs continued to be at risk of debt distress despite completing the Initiative. Getting full debt relief from all creditors remained a big challenge, and the non-Paris Club official bilateral creditors and commercial creditors — together accounting for about 26 per cent of total HIPC Initiative costs — had only delivered a small share of their expected relief. If a country fulfilled the criteria of being a least developed country, it should be eligible for debt write-off, he said, urging the international community to write off all outstanding debt, both multilateral and bilateral, of all such countries immediately.
GUILHERME DE AGUIAR PATRIOTA (Brazil), associating himself with the Group of 77 and China, as well as CELAC, said that debt-restructuring had crucial implications for the stability and fairness of the international financial system, as much as for the future implementation of the post-2015 development agenda. The existing architecture for dealing with debt restructuring was not sustainable and encouraged short-term speculation against sovereign countries. That created instability and risk for the system as a whole. If left unchecked, the model would completely remove any risk for private holders of debt, while subjecting sovereign States to unreasonable sacrifices often due to conditions beyond their control, and wiping out development opportunities for generations to come. A fair and equitable, multilateral, debt-restructuring legal framework should be part of the enabling environment that was required to provide developing countries with the policy space they needed.
MARÍA CRISTINA PERCEVAL (Argentina), associating herself the Group of 77 and China, as well as CELAC, underscored the challenge posed to development, economic growth and poverty eradication by external debt. Debt also limited the capacity of States to create conditions for human rights. She described how vulture funds purchased sovereign debt for the purpose of launching legal action against debtors in order to turn large profits, and criticized the highly speculative nature of such activity, noting the risk it posed to future debt restructuring processes for developed and developing countries. Vulture funds had to be stopped from paralysing debt restructuring efforts, she said, welcoming the General Assembly decisions to establish a multilateral framework on sovereign debt-restructuring, one which met the needs of many countries that had been affected by gaps in regulation of the international financial system. An international legal framework would be established to resolve debt distress, establishing clear rules that met the needs of both creditors and debtors. The current “legal void” benefited “a few speculators to the detriment of all countries”. The Human Rights Council had noted the human rights element of debt distress, and she shared the view that debt hindered sustainable development and the right to development.
KHALED BENHAMADI (Algeria), associating himself with the Group of 77 and China, noted that total debt stocks in the Middle East and North Africa grew 9 per cent in 2013, with a debt ratio soaring by 3 per cent. While growth in the region was projected to improve in the short-term, the outlook would be weakened by the ongoing political uncertainties. Also troublesome was the 5.6 per cent decrease in official development assistance (ODA) to Africa. In the spirit of solidarity and development cooperation, his Government had cancelled $1.4 billion in bilateral debts with 14 developing countries since 2012. For its part, Algeria revised its foreign debt policy to reduce external borrowing in 1999, and today its debt levels hit an all-time low, with the debt to GDP ratio at 1.5 per cent. Learning from its own debt restructuring, his country had advocated for a profound reform of the international financial system. The Argentina v. NML Capital, Ltd case attested to the need for an international debt restricting mechanism to address the current legal void. In that context, his Government supported the Secretary-General’s proposal to adopt a set of sound practices in the management and governance of sovereign debt.
JAIME HERMIDA CASTILLO (Nicaragua), associating himself with the Group of 77 and China, as well as CELAC, said that poverty eradication and sustainable development could only be achieved through economic growth and social inclusion. He called for a change in the existing model, and welcomed the statement made by Argentina. The international community must prioritize the debt situation in developing countries, particularly in those least developed. The external debt situation needed to be tackled, given its social impact, and the post-2015 agenda must help developing countries achieve debt sustainability in the long-term. He expressed his support for the Group of 77 sovereign debt restructuring resolution, and urged States to work together to set up the legal framework for debt restructuring in line with it.
AMAN HASSEN (Ethiopia), associating himself with the Group of 77 and China, Group of Least Developed Countries and African Group, stressed the importance of the HIPC Debt Initiative and the MDRI Initiative, which could redirect resources to poverty-reducing and other sustainable development activities. Ethiopia had just finished preparation to sell its sovereign bonds in international markets for the first time. In that regard, he noted that the harmonization of global sovereign debt helped address current fragmentations and ad hoc arrangements surrounding the debt system. Drawing on the HIPC and MDRI initiatives, Ethiopia’s debt position had become sustainable since the 2004/2005 period, and the country now maintained sustainability through concessional loans for strategic infrastructure projects. One notable challenge was that some bilateral and commercial creditors did not accept the principle of the enhanced HIPC due to the lack of an instrument that obliged them to abide by it. A mechanism must be established. Ethiopia’s investment needs continued to grow following more than a decade of double-digit economic growth, he said, requesting bilateral countries and multilateral financial institutions to provide additional concessional loans. The Third International Conference on Financing for Development, to be held in his country in 2015, could serve as a platform to chart out steps to address development challenges.
TERRI ROBL (United States) said her country had given substantial debt relief to developing countries in debt distress, including over 350 projects through the Paris Club and $75 billion in support through the HIPC Debt Initiative. Debt relief and restructuring was not the only route and she called on countries to adopt effective debt management strategies, and to manage their borrowing and lending. There were many new sources of financing available to developing countries with a complex array of lending conditions. That highlighted the need for debt management, so the United States supported building of debt management capacities. The approach should be Government-wide, with central responsibility for management and clear documentation of debt management. She did not support establishment of the sovereign debt reduction mechanism called for by some. There were considerable technical challenges and a poorly designed mechanism could create uncertainty that would stifle financing. Nor did she support a super national mechanism to override the terms in existing bond contracts. The International Capital Markets Association had developed model bond clauses that some nations were now using.
RUBÉN IGNACIO ZAMORA RIVAS (El Salvador), associating himself with the Group of 77 and China, as well as CELAC, pointed to worsening debt indicators for developing countries thanks to slow economic growth. External debt could hugely impact social development in developing countries, since the share of money going to improving quality of life was reduced in favour of servicing debt burdens. The HIPC and MDRI had improved things but a “true solution” was needed. The situation in Argentina had brought about efforts to establish a debt-workout mechanism. There was a need to improve effectiveness and coordination of debt restructuring internationally. Debt problems needed to be resolved in a development-oriented manner. Vulture funds’ activities in international courts highlighted the risk they posed, and it was important to prevent such funds from paralyzing development efforts. The sovereign debt resolution mechanism was a positive development and he looked forward to discussion of the modalities.
CHEN YING ZHU (China), associating herself with the Group of 77 and China, said that after the crisis, the debt issue of developing countries had become more prominent, with the total external debt stocks of those countries reaching $6 trillion in 2013. Developed countries as major creditors should act on their commitments to debt relief and further their assistance of developing countries, as well as carry out responsible macroeconomic policies. The international financial institutions should also increase their financial support and technical assistance to developing countries. China regarded foreign assistance as its international obligation, and paid close attention to recipient countries’ debt sustainability. It used bilateral channels to ease debt burdens of those countries as much as possible, and had, as of 2013, signed debt forgiveness agreements with more than 50 countries.
DMITRY I. MAKSIMYCHEV (Russian Federation) expressed his concern about continuing growth in the total outstanding debt of developing countries, which had hampered the ability of those States to achieve sustainable development. Over the last 14 years, the Russian Federation had restructured the debt owed to it by foreign States. The resources that became available as a result of such debt write-offs could and should be directed towards poverty eradication and the achievement of sustainable development goals. The sovereign debt restructuring issue and the recent debt crisis had shown that serious gaps remained in the existing system of regulating the debt obligations of States. In that context, his country supported the adoption of the General Assembly resolution to develop a multinational legal framework for sovereign debt restructuring.
MAHMOUD ABBAS, Minister for Finance and Economy of Sudan, associating himself with the Group of 77 and China, and the Group of Least Developed Countries, said that external debt concerned his country in particular. Noting the challenges posed by debt, he welcomed the call for implementation of the Rio+20 outcomes and stressed the need for full implementation of the sustainable development goals. Sudan faced unilateral economic sanctions as well as a high debt burden. Debt was hampering the country’s capacities and constraining the economy. Growth and production had reduced, while debt was also preventing enjoyment of ODA and other forms of investment and assistance. Despite Sudan’s eligibility for HIPC and MDRI, his country was prevented from joining.
He noted that in 2012, despite extremely high growth, debt servicing had absorbed the majority of income. Without it, his Government could have pursued development and the eradication of poverty. The situation had worsened because Sudan was prevented from taking advantage of preferential treatment through sanctions that kept the country out of the HIPC initiative and other sources of financing. Sanctions had also harmed agriculture, increasing trade costs and burdening the poor as well as the Government. Greater attention needed to be paid to countries emerging from conflict and other States in special situations. Sudan was paying a “heavy price” for achieving peace, having lost South Sudan and the oil reserves it possessed. He called for international support in cancelling debt and removing sanctions.
TAGHI MOHAMMAD POUR FERAMI (Iran), speaking on behalf of the Group of 77 and China, welcomed the adoption of resolution 68/304, “Towards the establishment of a multilateral legal framework for sovereign debt restructuring processes”, which aimed to create a framework through intergovernmental consultations. Addressing other delegations’ concerns that such a framework could create uncertainty in financial markets and was being discussed in other financial forums, he said the normative gap in the current financial system was an undeniable fact. In addition, the United Nations was the most representative international forum and the Assembly was the most democratic forum, as all Member States received an equal footing. The positive outcomes of other forums could be used in the Assembly’s intergovernmental consultations. Based on those points, his country maintained it was time to provide the international financial system with a legal framework that addressed the concerns of debtors and recipients as it monitored, and possibly restructured, sovereign debt.
ELIPHAS CHINYONGA (Zambia) said that his country’s total external debt at the end of June 2014 increased by 29.7 per cent, up to $4.55 billion, from $3.51 billion at the end of 2013. The primary factor was the issuance of $1 billion in Eurobonds, which made up 17.6 per cent of the country’s GDP. In terms of debt service, $98.91 million had been paid to various creditors, including the International Monetary Fund (IMF). That total included $63.28 million for principal, $30.50 million in interest payments and another $5.12 million in other charges. The debt increase was needed to finance key infrastructure projects, primarily in the energy and transport sectors, which were essential for private sector investment in the economy.
He said that Zambia’s debt remained below the debt sustainability threshold of 40 per cent of GDP. The 2013 joint IMF-World Bank Debt Sustainability Framework for Low-Income Countries showed Zambia’s risk of external debt distress remained low, as all debt sustainability indicators were below policy thresholds for the 2013-2033 period. To expand its revenue base, his country would continue to diversify its economy and encourage investments that boosted productivity while improving compliance and the efficiency of its tax system.
SHELDON MOULTON (South Africa) said developing countries could not grow with unsustainable debt looming over their economies and the actions of speculators, particularly vulture funds, created a risk to those countries’ debt restructuring and debt sustainability. There was a need for a more transparent credit rating system with oversight mechanisms that accounted for the needs of developing countries. It recognized the work of UNCTAD on “Principles on Promoting Responsible Sovereign Lending and Borrowing”, which aimed to fill the legal and institutional void to benefit sovereign lenders and borrowers. His country was concerned about the total external debt of the least developed countries, which totalled $16.8 billion in 2013, up 9.5 per cent since 2012. South Africa would advocate for the forgiveness of debt for those countries and supported the writing-off of debt for African countries through the New Partnership for Africa's Development (NEPAD), under its capital flows initiative. It was disturbed that even though ODA had increased by 6.1 per cent in 2013, after two consecutive years of decline, aid to Africa had decreased by 5.6 per cent in 2013.
Information and Communications Technologies for Development
Introduction of Reports
DONG WU, Chief, Science and Technology Section, UNCTAD, presented a report on “Progress made in the implementation of and follow-up to the outcomes of the World Summit on the Information Society at the regional and international levels”. That report detailed the main trends and developments in the deployment of information and communications technologies. She went on to highlight some activities related to the Summit that took place in 2013 and 2014. Discussing developments related to the WSIS+10 review, she said the review had to consider inclusive development centred upon the information society, adding that it offered a chance to take stock of progress and gaps in order to contribute to full attainment of goals and harnessing information and communications technology (ICT) for the full benefit of society.
RICARDO DE GUIMARÃES PINTO, Liaison Officer, United Nations Educational, Scientific and Cultural Organization (UNESCO), introduced the report “Communications for Development in the United Nations System”, noting that it stressed the importance of freedom of expression, particularly freedom of press and information, in promoting sustainable development. The UNESCO General Conference had passed a resolution highlighting the importance of promoting freedom of expression, universal access to knowledge and its preservation, and free, pluralistic and independent media, both on- and offline. There were three positive trends related to ICT, which were: the importance of community radio and recognition of its role alongside public and private; the need for assistance for media development through, for example, UNESCO’s Inter-Governmental Programme for the Development of Communication; and strengthened United Nations system collaboration.
Statements
SACHA LLORENTI (Bolivia), speaking on behalf of the Group of 77 and China, stressed the importance of ICT for achieving the internationally agreed upon development goals. The role of those technologies had been highlighted in the outcome documents of major United Nations conferences. They were vital for developing countries to fully participate in the global economy and held tremendous potential for the eradication of poverty and promotion of socioeconomic development. A greater emphasis should be placed on reducing the cost of such technologies, including that of broadband connections, and on capacity-building for greater use and application in the developing world. The Group was concerned about the continuing digital divide between developed and developing countries.
Recalling that the United Nations resolution adopted in July 2014, titled “Modalities for the overall review by the General Assembly of the implementation of the outcomes of the World Summit on the Information Society”, he said the Group reaffirmed that the 193-nation body was a multilateral body, not a multi-stakeholder body, and successfully resisted any attempts to change that character. The Group hoped that the Assembly’s review would take stock of the progress made since the 2005 World Summit and address potential gap areas. The review should examine not just inputs from the Commission on Science and Technology for Development (CSTD), but other relevant submissions, including those from member and observer states of the Assembly.
EDEN CHARLES (Trinidad and Tobago), speaking on behalf of CARICOM, and associating himself with the Group of 77 and China, as well as CELAC, welcomed the progress made in implementing the World Summit on the Information Society action areas at the regional and international levels. He agreed with the observations made in the Secretary-General’s report that, even though ICT demand and supply had continued to grow, challenges remained in relation to access, affordability and quality in large portions of the developing world. He also agreed with the report’s recommendation that the WSIS+10 Review must inform the post-2015 development agenda on the complex connections between ICT and sustainable development.
CARICOM Governments had undertaken to make the region a single ICT space, he said, noting that further work was required, particularly on the continued liberalization of the telecommunications sector. The region had established an ICT for development programme along with a Regional Digital Development Strategy. However, major challenges persisted in mobilizing resources for investment in new technologies, particularly in the area of small and micro enterprise development, as well as in addressing the emerging issue of cybercrime. Moreover, as a region of small island developing States, vulnerable to climate change and natural disasters, CARICOM saw the environment sector as a key area for further development and dissemination of ICT, contributing to its regional resilience building efforts.
JUAN CARLOS MENDOZA-GARCÍA, speaking on behalf of CELAC, said that ICT were essential enablers for meeting the Millennium Development Goals and the sustainable development goals, and for the implementation of the post-2015 development agenda. He was concerned about the digital divide and the substantial differences in broadband access, availability and affordability between developed and developing countries. In that regard, it was important to close the digital divide, particularly on issues such as Internet affordability, and to ensure that the benefits of new technologies were available to everyone.
He said the input from the working group on ‘enhanced cooperation’ in the United Nations Commission on Science and Technology for Development (CSTD) was a critical contribution to the 10-year review of the implementation of the outcome of the World Summit on the Information Society in 2015. Its recommendations, which would be submitted to the Economic and Social Council by June 2015, should address the need to promote and protect all fundamental human rights, including that of privacy. Concerned about the negative impact of State surveillance and/or interception of communications on the exercise or enjoyment of human rights, he stressed that measures to combat terrorism must always be conducted in strict observance of international law. Actions taken outside the international legal framework were unjustifiable, illegal, and unacceptable.
AMERICO BEVIGLIA ZAMPETTI (Italy), speaking on behalf of the European Union, said the Union attached importance to an open, inclusive and transparent, multi-stakeholder process for the WSIS+10 Review. Ensuring active and meaningful participation, inputs and engagement by all stakeholders in the preparatory process and at the high-level General Assembly meeting were concerns for the Union. The forthcoming review must take full account of the CSTD review under way. Other key inputs included the outcomes of the event “Towards Knowledge Societies, for peace and sustainable development”, hosted by UNESCO in 2013, the outcomes of the WSIS+10 Review facilitated by International Telecommunication Union in June 2014, as well as the road map created at the Netmundial Conference in April 2014. The Union also supported the renewal of the Internet Governance Forum mandate and called for ensuring stable and predictable funding for the Forum’s Secretariat.
ABDUL GHAFAR ISMAIL (Brunei Darussalam), speaking on behalf of the Association of South-East Asian Nations (ASEAN) and associating himself with the Group of 77 and China, said ASEAN remained concerned with the widening gap across the ICT landscape. According to recent statistics by the International Telecommunication Union, only 32 per cent of the population in developing countries would have Internet access by December 2014, compared to 78 per cent in developed countries. In that regard, more progress needed to be made to bridge the digital divide among countries.
He said that overcoming that divide was a huge challenge for ASEAN, given the various levels of economic development of its member States. However, it was making progress on the implementation of the ASEAN Information and Communications Technology Master Plan 2015 to increase adoption of such technologies in rural areas. It would also promote equal opportunity for its people to participate in regional development through the rollout of national broadband networks, improvements of national universal service obligations and collaboration with relevant sectors such as education.
GUILHERME DE AGUIAR PATRIOTA (Brazil), associating himself with the Group of 77 and China, as well as CELAC, said that ICT could help developing countries in their efforts to eradicate poverty, and achieve economic growth and development goals. Therefore, it was essential to continue working towards improved access to such technology, and to bridge the digital divide. He welcomed the report of the Open Working Group on Sustainable Development Goals and its recognition of ICT as drivers of sustainable development. As cyberspace expanded, human rights, especially the right to privacy, required stronger safeguards. Serious violations of human rights and civil liberties continued to take place. As the Security Council had repeatedly declared, States must ensure that in their fight against terrorism they complied with the law and respected human rights.
RONIT BEN-DOR (Israel) said that ICT had become the cornerstone of modern society. Although ICT offered limitless opportunities, four billion people still lacked access to the Internet. Addressing that “knowledge deficit” would be critical to achieving a sustainable world where no one was left behind. Changes took place in the ICT landscape that made it more relevant towards achieving the Millennium Development Goals and the sustainable development goals. The use of mobile communication helped illuminate changes in human well-being and facilitated innovative ways to respond to crisis. In a multilateral framework, Israel would host the Forum for Well-being in Digital Media to encourage the development of a people-centred information society. She added that the global challenges with the malicious use of ICT required joint efforts by the international community. The World Summit on the Information Society would be critical in facilitating global cooperation and promoting ICT in developing countries.
ANTON Y. MOROZO (Russian Federation), sharing most of the report’s conclusions, welcomed the holding of a general review of WSIS+10. The outcome should account for several inputs. Noting the Russian Federation’s experience in overcoming the digital divide between regions, he said he was ready to share them. The importance of the Internet would only increase once the post-2015 agenda was adopted, so it was important to ensure sensible Internet governance. Though the world operated on a single web, some individual countries used their status and position to achieve military and political goals, attacking others and thereby encouraging other States to close themselves off. If the worldwide web divided, international cooperation would weaken. Terrorists were already using the web for illegal activities and a response was needed. National policies included a doctrine on information security and an agency dedicated to combating attacks. Along with other BRICS [Brazil, Russia, India, China and South Africa] countries, he condemned the collection of data over the web as a direct violation of State sovereignty and human rights, particularly privacy.
TERRI ROBL (United States) underlined the need to recognize and promote the contribution of ICT to shared sustainable development goals. An open, inclusive, multi-stakeholder approach would maximize the vibrancy and potential of ICT, helping Governments improve quality of life. Access provision required involvement by Governments, the private sector, civil society and others to ensure cost reduction. Investment was needed in networks and technologies, and efforts should promote innovation, growth and universal values of freedom of speech and expression. That would not be achieved by erecting new barriers, fragmenting the global Internet or restricting the free flow of information. She supported the 10-year review of the World Summit on the Information Society believing it crucial to ensuring and enhancing the contribution of Summit outcomes to development for years to come but stressing that review was not a chance to renegotiate the Summit’s outcomes.
PALITHA KOHONA (Sri Lanka), associating himself with the statement made by Bolivia on behalf of the Group of 77, said that technology should be central to the post-2015 development agenda as the sector helped create jobs in developed and developing countries. Yet there was a continuing digital divide between those two groups and disadvantaged people could benefit by appropriate applications of technology. The Government was developing Sri Lanka as a regional technology hub and providing training in those skills for Government officials, teachers and school children. Sri Lanka aimed to increase information technology literacy to 75 per cent by 2016, up from 50 per cent in 2014. Employment in the sector had increased to 75,100 in 2013, up from 33,700 in 2007, while generating revenue of $720 million last year. The Government’s goal was to generate $5 billion in revenue from the sector by 2022 and employ 200,000 people. Sri Lanka had established more than 750 tele-centres and its e-Library, “Nenasala Programme”, had received the Bill and Melinda Gates Foundations’ 2014 Access to Learning Award as the best rural technology access programme.
KHANIM IBRAHIMOVA (Azerbaijan) said the impact of ICT on societies was not just a technical matter but a development issue, and called for a rapid development of that sector. Many Eurasian countries faced interconnectivity challenges due to their landlocked status and inadequate infrastructure. She mentioned a resolution on establishing the Eurasian Connectivity Alliance, initiated by her country and adopted by the General Assembly, as a vivid example of cross-border cooperation. She concluded by saying that ICT enabled the achievement of all three pillars of sustainable development.
KHALED BENAMADI (Algeria), associating himself with the Group of 77 and China, said that ICT was a driver for sustainable development, and had a positive impact on countries’ growth and citizen participation in private and public life. Solutions to socioeconomic issues also included a technological aspect, he said, urging States to address technology and science matters to ensure progress in achieving development goals. An inclusive information society should be built in a broader context of the post-2015 development agenda, and an environment conducive to the North-South and South-South transfer of technology should be set out. Moreover, management of ICT, especially the Internet, raised important issues related to international security. In that context, he called for the enhancement of national, regional and international capacity for addressing cyber-security issues.
DENIS ZDOROV (Belarus) said the United Nations should keep focusing on the development of ICT. His country had been working on strategies to develop information technology by 2015, from improving infrastructure of broadband access to information security measures. It had become a major supplier of ICT services, both nationally and regionally. One of the main challenges in that area was to overcome the digital divide between developed and developing countries. It was also important to establish international cooperation to prevent the negative effects of the Internet on children and youth. Advisory and technological assistance must continue to be provided to Member States, including middle-income countries.
ASOKE K MUKERJI (India), associating himself with the Group of 77 and China, said the ICT revolution presented a real and profound opportunity to fast-track development processes. However, the statistics pointed to an ongoing digital divide, with the mobile penetration rate in developed countries four times higher than that of developing countries. In terms of Internet usage, the penetration rate of 32 per cent in developing countries compared with almost 80 per cent in the developed world. Almost 90 per cent of those without Internet access were in developing countries. Moreover, women were 23 per cent less likely to use the Internet in low- to middle-income countries. His country had long recognized the transformative potential of the “mouse”, and had recently launched an ambitious programme “Digital India”, the mantra of which was to “combine IT (Indian Talent) with IT (Information Technology) to create IT (India of Tomorrow)”.
FREDERICK MUSIIWA MAKAMURE SHAVA (Zimbabwe), associating himself with the Group of 77 and China, as well as the African Group, pointed out that the Rio+20 outcome document “explicitly underscored the catalytic role of ICT in achieving inclusive economic growth and development, sustainable development and poverty eradication”. The digital divide was a major concern, particularly in terms of “availability, affordability, quality of access and broadband connectivity”. More international cooperation was needed to close the gap and the United Nations could help. States needed financial and technical support for infrastructure. Proliferation of cell phones was often cited as a mark of progress, particularly in Africa, but progress should be defined in terms of positive outcomes like poverty reduction, inclusive and sustained growth, job creation and social cohesion. As well as financial constraints, Zimbabwe’s landlocked nature also put limitations on development. Although unlikely to switch to digital broadcasting by 2015, he welcomed any support to help do so.
YASUAKI MOMITA (Japan) said that ICT would be an important enabler of the post-2015 development agenda, observing that the Working Group’s outcome document had repeatedly mentioned that fact. The 10-year review of progress on the World Summit outcomes would come in 2015 and he was pleased that a resolution on the modalities of the review had concluded. Preparation and implementation of the review was important and he welcomed the work of the CSTD and was looking forward to their final report. The body’s findings should be fully accounted for when conducting the review. The nature of ICT demanded a multi-stakeholder review, he reiterated, stating he looked forward to consultations during the preparatory process. He encouraged delegations’ attendance at the high level meeting, pointing out that work done by Member States would contribute to bridging of the digital divide.
YAOWALUK SUTHIMAUS (Thailand), aligning with the Group of 77 and China, as well as ASEAN, stressed the role of ICT as a key driver and enabler of sustainable development. Stressing the development role of ICT in two areas — food security and disaster risk management — she highlighted Thailand’s experiences and successes. Collective global action was needed to bridge the digital divide between developing and developed countries, as well as between and within regions. As the world moved from the Millennium Development Goals to the post-2015 development agenda, it needed to intensify efforts to strengthen ICT as a key means of implementation.
MUSTAPHA EL ACHRAOUI (Morocco) said that ICT was omnipresent and vital to people’s lives. It was especially crucial in rural areas, but technology remained costly for many and even those with access made only limited use of them. Connectivity and optimal use had to be promoted, particularly given unequal access to technology. He saw opportunity for technology to improve the health and education sectors, as well as e-commerce, noting the impact technology could have on freedoms and human rights. Swift progress could come from the acquisition of technology, but there were many impediments, too, centring on resources and institutions. There had been substantial progress in promoting ICT and its general use, he said, pointing to the “E-Morocco 2010 Strategy”, which had seen development of Internet and mobile telephony. A national strategy for an information society called “Maroc Numerique 2013” had also been launched.
FATEMA RASHEED MOHAMED ALI (Bahrain) said that ICT development fell under Millennium Development Goal 8 on global partnerships for development, which presupposed cooperation with the private sector on new technologies. Major strides had been achieved in implementing the Goal including the use of technology for development. A Higher Committee for information and communications technology focused on issues such as e-governance and implemented the e-Government strategy, aiming for improvements to efficiency. Bahrain had been awarded two United Nations public service awards for its efforts in the field. The National Telecoms Centre was ranked first in development of knowledge management in West Asia, and Bahrain was among the highest ranking in e-Government preparedness and e-services quality. The e-Government authority was developing e-services to improve procedures and guarantee quality.
XIE XIAOWU (China), associating himself with the Group of 77 and China, said that while the rapid emergency and application of new technologies and concepts had brought tremendous economic and social benefits to mankind, the digital divide between developed and developing economies was ever-widening, seriously hampering development of certain countries and regions. The international community should take stock of the implementation of the outcomes of the World Summit on Information Society, give full play to the role of information and communications technology in the formulation and implementation of the post-2015 development agenda, increase technical assistance to developing countries and bridge the digital divide, so that the dividends derived from the advancement of such technology could be shared by all.
FEH MOUSSA GONE (Côte d’Ivoire) endorsed the views of the Group of 77 and China, noting the decisive role that ICT played in formalizing development strategies nationally and locally. Recognizing their importance to socioeconomic development, he described efforts to integrate technology into development strategies. A strategy on national digital coverage had been launched, with increased use of computers in health, education, trade and agriculture. The use of “e-government” was improving public administration and the quality of public services. Laws had also been passed to strengthen governance and protection of users and consumers. Telephony penetration was around 65 per cent, with the industry’s turnover up to $1.6 billion per year and investment over $2.24 billion. The quality of mobile communications had improved, with costs also falling. Despite progress, the digital divide remained large and developing countries needed support.
JAVAD MOMENI (Iran), associating with the Group of 77 and China, said that implementation of the World Summit on the Information Society outcomes, including provisions on Internet governance, was extremely important. Voicing support for reviews of the Summit’s outcomes before the end of 2015, he said he saw merit in the proposal of the United Nations Group on the Information Society for the review to serve as input to the post-2015 development agenda. He pointed to national policies aimed at closing Iran’s digital divide, such as programmes to improve ICT access. Furthermore, the Ministry of Information and Communications Technology had worked to improve infrastructure to improve online provision of services in several areas, including education, commerce and health. Iran’s information and communications technology budget for 2014/15 had grown by 95 per cent over the previous year.
FRANCIS LORENZO (Dominican Republic), associating himself with the Group of 77 and China, as well as CELAC, said his country’s commitment to modernization could be seen in its prioritization education and investment in information technology. However, in many rural and remote areas of developing countries there was no network coverage and people lacked the means to purchase mobile phones. His Government saw that as an opportunity to democratize access to cutting-edge technology through the provision of training and empowerment of vulnerable groups, including persons with disabilities. In that context, his country was creating specialized digital screens in the Comprehensive Care Centres for Disability, to provide access to information technologies to children with different skills. In addition, strategic alliances with economic and technology sectors were helping Dominicans gain the skills required in the labour market.
ELIPHAS CHINYONGA (Zambia), speaking on behalf of the Group of Landlocked Developing Countries, noted that more than 20 per cent of the nearly 450 million people in those nations lived below the poverty line of $1.25 per person a day. They depended on trade and transport systems in neighbouring and coastal countries. Their geographic liabilities and poor state of both physical and soft infrastructure generated high transaction and information costs, resulting in lower trade and financial integration. But “landlockedness” should not be regarded as a fatality. They could offset a significant portion of their disadvantage through improvement in infrastructure of their own and transit nations.
More importantly, he said, landlocked developing countries should aim at structurally transforming their economies and promote industrialization and value-addition. ICT was a critical enabler of economic development and investment, with consequential benefits for employment and social welfare. On a national level, his Government’s waiving of customs duty on telecommunications equipment in recent years had resulted in the installation of mobile communication towers in about 169 rural chiefdoms. The number was expected to almost double in 2015. The mobile phone was now being used to transmit important medical information, such as pictures of cancer screenings.
GARY FOWLIE of the International Telecommunications Union said it was essential to integrate technology into plans to achieve the sustainable development goals and post-2015 development framework. The important role of technology was reflected only in four of the 17 proposed Goals, including gender equality, (Goal 5); infrastructure (Goal 9); education (Goal 4); and partnerships (Goal 17). Information communications technologies and broadband should be viewed as a cross-cutting, systems-oriented tool. Yet 14 of the proposed goals made no direct reference to technology as an implementing aid. Technology could be used to increase social inclusion by improving access to financial credit and services and e-governance. To highlight the potential of technology, the Broadband Commission for Digital Development, created by the Union and UNESCO in 2010, recently published the report “Means of Transformation – Harnessing Broadband for the Post-2015 Development Agenda”. The report analysed how the proposed sustainable development goals could benefit from the use of broadband, with the aim of helping policy makers create the right frameworks for its use.
SHARON BRENNEN-HAYLOCK, Director, Food and Agriculture Organization (FAO) Liaison Office to the United Nations, shared the outcomes of the thirtieth United Nations Round Table on Communication for Development. It focused on mainstreaming communication for development in the United Nations system to support programmes and policies related to food and nutrition security, resilient livelihoods and family farming. Participants agreed on the need for strong inter-Agency collaboration to address the issues through awareness-raising on the functions, mechanisms and possible benefits of ICT, collaboration on building national strategies and the use of strategies in policy advocacy. The role of communication in the post-2015 agenda and sustainable development goals and emergencies, including the Ebola outbreak, was discussed and the Round Table reaffirmed its status as the only inter-agency mechanism enabling exchange among United Nations agencies. It was agreed to establish a Technical Working Group to build United Nations coordination and leadership in the field.