1. Among the development challenges facing many African countries, the most pressing are eradication of poverty, human resource development, and the transformation of the productive structures of their economies, including the horizontal and vertical diversification of the commodity sector. Nowhere is the intensity of human deprivation more acutely felt than in the African region. Many of our countries continue to be characterized by widespread poverty; high levels of unemployment and underemployment; and lack of access to basic necessities of life, such as education, health services, and clean water. The continent also continues to be affected by major diseases and perennial armed conflicts and civil strife. Infrastructure, institutional and human resources development remain weak; the terms of trade are not showing any significant improvement; the share of Africa in world trade has been declining, while commodity export earnings remain highly unstable; and the debt burden continues to be an obstacle to economic recovery. As a result of this economic predicament, the problem of poverty is widespread and is sometimes worsened by conditionalities accompanying adjustment measures.

2. Most of the African countries continue to be highly dependent, for both employment and foreign exchange earnings, on the production and export of a few commodities. The Ministers are aware that a strong and diversified commodity sector has almost invariably been the initial engine for growth, further economic diversification and development. The Ministers are therefore highly concerned by the increasing marginalisation of Africa on world commodity markets and by its failure to harness the growth potential of its rich commodity resources.

3. African countries have demonstrated their determination to overcome the problems of underdevelopment; many of them have undertaken far-reaching political and economic reforms in the context of structural adjustment programmes under difficult conditions, and many have courageouslyimplemented a significant devaluation of their currencies. Although some countries have achieved satisfactory growth rates, progress, however, has been insufficient. Economic growth rates remain far too low in many countries, often not exceeding population growth rates. In particular, the overall socio-economic situation of LDCs in Africa continues to deteriorate.

4. While the accelerating pace of the interrelated processes of liberalization and globalization in the world economy has increased opportunities for growth and development, it has also added new complexities and risks in managing global interdependence. Thus far, Africa has been largely by-passed by the positive effects of the globalization process, and the risk of further marginalization of this continent looms large. Accordingly, a major challenge for the ninth session of UNCTAD is to take urgent actions which would rapidly integrate Africa into the mainstream of the world economy.

A. Domestic policy reform and international support

5. The Ministers reaffirm that African countries assume first and foremost the responsibility for restructuring their economies to respond to the challenges and opportunities of a globalizing and liberalizing world economy. In this regard, as noted in the 1995 Cairo Agenda for Action as adopted by the OAU Council of Ministers, African countries are mindful of the need to implement a comprehensive policy framework to ensure an enabling environment for domestic and foreign investment, notably through a stable macro-economic environment, to modernize their economies and infrastructures, to strengthen transport and communication networks, to promote domestic savings, to foster entrepreneurship, to enhance human resource development, to build up and/or strengthen research infrastructure and to increase their competitiveness.

6. However, as also noted in the Cairo Agenda, economic progress cannot be achieved by domestic efforts alone but will require a favourable external environment and substantial external assistance. In this regard, the Ministers call upon the international community to understand, appreciate and support the efforts and the priorities of Africa, as spelt out in the Cairo Agenda. Recalling the commitments of the World Summit for Social Development, the Ministers emphasize the special effort needed at UNCTAD IX to tackle the intractable problems of backwardness and poverty in most developing countries, in particular the least developed countries, the majority of which are in Africa. This will require the urgent provision of a package of financial, technological, managerial and investable resources, supported by a high degree of international cooperation involving both private and public-sector institutions.

7. Liberalization of economic policies, the globalization of production and markets and rapid technological advances have set the stage for enhanced cooperation at the international level. There is still, however, a lack of coherence among different areas of economic policies at the global level which might reduce the positive effects derived from globalization and liberalization. Commitments made to liberalize and harmonize global trade practices have not been matched by similar commitments in other areas of global economic interest. Thus, the persistence of exchange-rate, interest-rate, and commodity-market instability continues to affect developing countries adversely. In this regard, the multilateral financial institutions, notably the IMF, should oversee the coordination of macro-economic policies and the regulation of the monetary and financial markets of industrialized countries in order to reduce exchange and interest rate instability, while also promoting growth and employment. Thus, there is a crucial need for coordination in global economic policy, with the full participation of developing countries. UNCTAD, which has the mandate and the accumulated expertise in the treatment of development and interrelated issues, would provide valuable inputs in this area. In this context, the analysis of global interdependence, in particular of the global impact of macroeconomic policies and of the evolution of the world trade, monetary and financial system, should highlight the development dimension of interdependence. The Trade and Development Report remains the basis of discussion on interdependence.

8. The Ministers express their concern at the recent declining trend, in real terms, of official development assistance (ODA). An expeditious reversal of this decline is of critical importance. Donor countries are urged to increase their ODA, in accordance with their commitments in various United Nations resolutions and with a view to meeting the internationally agreed target of 0.7 per cent of GNP.

9. Adequate funding of the multilateral institutions and programmes which are major sources of financing of low-income countries is essential. In this regard, shortfalls in the tenth replenishment for the International Development Association (IDA) and bleak prospects for its eleventh replenishment as well as for the seventh replenishment, of the African Development Fund (ADF), are a source of serious concern.

10. The Ministers also urge their development partners to improve aid modalities in order to enhance the quality and effectiveness of assistance to African countries, in particular by ensuring mutual transparency and accountability in the management of aid resources, as well as promoting the ownership of development programmes by the recipient countries.

11. Recognizing that the external debt problem of African countries, in particular the low-income countries, is far from being resolved, the Ministers urge the international community to take actions for a durable solution to the debt problem. They remain preoccupied by the continent's increasing debt burden, which totalled US$ 317 billion in 1994 and corresponds to on average 231.3 per cent of Africa's exports of goods and services and 71.6 per cent of the total GDP of the continent.

12. In the area of official bilateral debt, the Ministers reiterate their appreciation for the adoption by the Paris Club of the Naples Terms following the proposal made by the Group of Seven (G7) in favour of the poorest and most indebted countries. The Ministers, however, express their concern at the slow implementation by the Paris Club of the Naples Terms. They urge that Paris Club creditors revise their eligibility criteria so as to include all low-income African countries with debt-servicing difficulties in the list of countries benefiting from the largest debt reduction. Furthermore, an expansion of coverage of debt to be considered for reduction is also necessary for these countries.

13. The problem of African countries' debt owed to multilateral institutions also deserves priority attention by the international community. Any solution for reducing the multilateral debt burden of African countries should be based on additional resources and should not divert the already scarce resources of development assistance. The Bretton Woods institutions are encouraged to expedite the ongoing consideration of ways to address the issue of multilateral debt.

14. The Ministers appeal to the international community to improve the terms applied to African debt in order to:

• (a) Cater for an 80 per cent reduction in the total non-concessional debt of all African countries, including accumulated interest;
  
  
• (b) Allow for the cancellation of concessional debts rescheduled in the Paris Club;
  
  
• (c) Institute innovative measures that would reduce:
  
  • (i) Multilateral debts, including the buyback of this category of debt with proceeds from the sale of a part of the gold reserve of the International Monetary Fund, without prejudice to gold-producing countries;
  • (ii)Commercial debts through improved Brady Plan mechanisms and the enhanced IDA Debt Reduction Facility.

15. The solution to the African debt problem should go hand-in-hand with investment and trade flows. In this respect, the conversion of debt for the financing of sustainable development programmes, such as environment/natural resources conservation and entrepreneurship development, should be encouraged.

16. The Ministers call for an examination of the need for a framework to deal with Africa's debt in a coordinated manner in all its bilateral, multilateral and commercial aspects, and to secure positive resource flows to Africa.

17. The Ministers express concern at the serious debt problems of the LDCs, which necessitate increased concessional financing and concrete measures to alleviate substantially their debt burden, through inter alia cancellation or equivalent relief of ODA debt, in accordance with Trade and Development Board resolution 165(S-IX), expeditious implementation of the most concessional treatment under the Paris Club Naples Terms, adoption of debt reduction and debt relief programmes by non-Paris Club creditors who have not done so, expeditious consideration of ways to address the issue of multilateral debt, reduction of commercial debt through the IDA Debt Reduction Facility and alternative mechanisms.

18. UNCTAD, in cooperation with the African Ministerial Contact Group on Africa's Indebtness (OAU/ECA/ADB), should continue to analyze regularly the debt problems facing African countries with a view to making constructive proposals for the resolution of these problems and to advising African countries on debt management and debt negotiations. In addition, UNCTAD should highlight the close interaction that exists between trade and debt, especially at a time when African countries are opening their economies and liberalizing their trade.

19. Poverty, which affects the large majority of African countries, and environmental and natural resource degradation are closely interrelated. The twin problems of poverty and environmental degradation have to be tackled to provide a basis for sustainable development, which is essential and will enhance the capacity of developing countries to protect the environment. African countries are determined to pursue adequate environmental management policies. However, for African countries, eradication of poverty and economic and social development remain the first and foremost priority. Consideration should also be given to providing African countries with appropriate levels of resources, as well as environmentally sound technology on favourable terms, in order to assist these countries to adjust to the new global and local environmental conditions. The Ministers stress that international cooperation, partnership and transparency should be the basis of a comprehensive approach to sustainable development.

20. The Ministers reaffirm their commitment to regional economic cooperation and integration as an important step towards product and market diversification, building of adequate infrastructural networks and efficient allocation of resources within enlarged regional markets. Regional cooperation in Africa would reinforce structural transformation, as such cooperation aims at: (i) the creation of a regional infrastructural base; (ii) the development of productive capacities; (iii) the liberalization of trade; (iv) and the harmonization of policies. The Ministers call upon the Bretton Woods institutions to pay particular attention to the regional dimensions of structural adjustments programmes.

21. African countries are endeavouring to establish the African Economic Community and to implement the first phases of the Abuja Treaty. The Ministers firmly declare their determination to implement the Abuja Treaty. They are confident that economic transformation through regional integration will create opportunities for the expansion of intra- and inter-regional trade.

22. The recent changes in the global political and economic environment and the different levels of development among developing countries have made the role of economic cooperation among developing countries (ECDC) even more important, especially in the light of the successful growth experiences of some developing countries. In the new context of the market-oriented reforms and export-oriented growth strategies that are being pursued by most developing countries, ECDC should also be seen as a means of increasing their capacity to produce, achieve economies of scale, and become internationally competitive, as well as of securing the integration of developing countries into the world economy. ECDC should also be pursued with technical and financial assistance from the developed countries.

23. Interregional cooperation among developing countries can provide additional support to the diversification efforts of African countries. Interregional cooperation should involve: (i) the promotion of transport and communication networks and facilities, including shipping lines between Africa, Asia and Latin America; (ii) the establishment of mechanisms for the financing of South-South trade and investment; (iii) the design and implementation of programmes of technical cooperation among developing countries (TCDC); (iv) and trade liberalization through the Global System of Trade Preferences among Developing Countries (GSTP) and other arrangements.

24. The Ministers note the progress of the second round of the GSTP. The ongoing negotiations within UNCTAD should be concluded as soon as possible. They emphasize that a study should be undertaken to determine the benefits of the GSTP to the African countries. Further negotiations should aim to widen the scope and sectors to be included within the GSTP.

25. Many of the objectives of the Programme of Action for the LDCs for the 1990s have not been met. Accordingly, an intensified policy commitment by the international community will be required to help LDCs to reverse the decline in their economic and social conditions, to promote sustainable development and to avoid becoming further marginalized. Donors should implement expeditiously the agreed menu of aid targets and/or commitments set out in the Programme of Action and reiterated in the Mid-Term Review and fulfil their commitments to provide a significant and substantial increase in the aggregate level of external support for LDCs.

26. An effective follow-up to the outcome of the Mid-Term Global Review, as well as to the conclusions and recommendations relating to LDCs adopted by major global conferences, should be ensured. UNCTAD, which is the focal point for the monitoring, follow-up and review of the implementation of the Programme of Action for the LDCs, should continue to give high priority to issues pertaining to LDCs, and the Trade and Development Board should continue to conduct the annual review, on the basis of the Least Developed Countries Report.

27. The Ministers reaffirm the continuing importance of the United Nations New Agenda for the Development of Africa in the 1990s. In this connection, they urge all donors and multilateral institutions to intensify their efforts and contributions towards the achievement of the goals of the Agenda in accordance with their commitments. In particular, they call upon the development partners of Africa to fulfil the commitments they made to establish the Diversification Fund for African commodities, which has not yet materialized. UNCTAD is called upon in its area of competence and in cooperation with other relevant organizations of the United Nations Interagency Task Force for Africa, to make concrete proposals for the effective implementation of this programme.

28. The Ministers call upon donor countries, international financial institutions, UN organs and specialized agencies to take part and effectively participate in the Mid-Term Review Meeting of UN-NADAF, scheduled to take place in September 1996 in New York, with a view to ensuring that the Review will lead to a more effective implementation of the programme.

30. The implementation of Uruguay Round Agreements will impose significant transitional difficulties and costs on the African countries, particularly the least developed and net food-importing countries. Numerous studies suggest that these transitional difficulties or costs would arise from various sources, including: the erosion of trade preferences from which they currently benefit under the Lomé Convention, the Generalized System of Preferences (GSP) and other preferential arrangements; higher import prices for foodstuffs (arising from the reform process in agriculture) and for other products, especially pharmaceutical and agricultural chemicals (arising from the implementation of the Trade Related Intellectual Property Rights (TRIPS) Agreement); and higher costs arising from the notification requirements and other obligations of World Trade Organization (WTO) membership.

31. There is wide recognition that the implementation of the Uruguay Round Agreement on Agriculture will have adverse consequences for the net food-importing developing countries. Even in the initial stage of implementation of the Agreement, these countries have started to face problems as a consequence of new market expectations and also because of the changes introduced in the food sales policies of some developed countries. It is therefore urgent to make operational the Marrakesh Decision on Measures Concerning the Possible Negative Effects of the Reform Programme on Least Developed and Net Food-Importing Countries. The following issues need to be clarified quickly by the relevant organizations: nature of assistance (food aid, financial assistance, export credits, technical assistance); adequacy of existing facilities and terms of access to them; variables to be monitored (e.g. food import price levels); trigger mechanism for assistance (e.g. adequacy of food supplies, changes in import price levels). UNCTAD should follow closely the implementation of the decision on net food-importing countries (NFICs) with a view to analyzing the impact on individual NFICs and making proposals for operationalizing the decision on NFICs. UNCTAD should also assist NFICs in developing strategies to deal with the adverse effects on them of the reform process in agriculture.

32. The Ministers highlight the need for defining a mechanism to monitor the prices of certain basic food products (notably wheat and milk) with a view to stabilizing their prices.

33. The Ministers urge the speedy implementation of the Marrakesh Decision on Measures Concerning the Possible Negative Effects of the Reform Programme on Least Developed and Net Food-Importing Countries. They also urge that the Marrakesh Declaration and Ministerial Decision as they relate to LDCs, as well as the special provisions for LDCs contained in the various Uruguay Round Agreements, should be implemented as a matter of priority. In this connection, they call for appropriate measures to be adopted expeditiously to mitigate the adverse impact through "a safety net" package of measures for the affected countries. Accordingly, and in line with United Nations General Assembly resolution 49/99, paragraph 15, UNCTAD should, in cooperation with relevant international organizations, make proposals for translating the Marrakesh decisions into concrete actions.

34. In view of the difficulties African countries may face in adjusting their economies to shifts in market opportunities and to increased competition arising from the Round, international adjustment assistance will be needed, including: trade adjustment assistance (for export capacity-building, enhancement of competitiveness, product diversification, export market diversification, and temporary relief from higher import prices for pharmaceuticals); balance-of-payments adjustment assistance (for coping with deterioration in the trade and services balance); technical and human resource development assistance (for capacity-building in trade policy formulation, trade sector management and effective participation in WTO activities).

35. Capacity-building measures should focus on: strengthening capabilities to identify and respond to new trading opportunities, including export promotion; the development of human resources and the strengthening of institutions to handle traditional and new trade issues, including the formulation and implementation of trade policy; strengthening of negotiating capacities for effective participation in ongoing and new multilateral trade negotiations; enhancement of domestic services capacity, including the development of telecommunications infrastructure and access to information technology; and achieving enhanced trade efficiency, particularly institutional capacity and trade management procedures.

36. The ability of African countries to participate effectively, exercise their rights, and meet their obligations in the WTO will be an important determinant of their further integration into the international trading system. The international community should extend appropriate technical cooperation to countries, both WTO members and non-members, which would otherwise not be able to participate effectively in the international trading system. UNCTAD should, in cooperation with subregional and regional organizations, strengthen and refocus its technical cooperation programmes to raise substantially the institutional capacities of weaker trading partners to participate effectively in the international trading system and the negotiating process in the WTO in order to derive benefits therefrom.

37. Notwithstanding efforts that have been made in a number of African countries, with the support of UNCTAD, to establish trade points since the United Nations International Symposium on Trade Efficiency (UNISTE) held at Columbus, Ohio, many of these trade points are still in their formative stages due to lack of necessary expertise and financial resources. Accordingly, UNCTAD should, in collaboration with ITC and subregional and regional organizations look into ways of extending further technical and financial support in order to make these trade points fully operational and effective. Furthermore, UNCTAD should assist in setting up new trade points in interested countries.

38. The Ministers urge the speedy implementation of the resolution adopted by African Ministers of Trade at Tunis in October 1994 requesting international organizations to design technicalcooperation programmes to assist African countries to implement and take full advantage of the Uruguay Round Agreements. In this connection, they note with appreciation the tripartite technical cooperation framework elaborated by UNCTAD, WTO and ITC and urge its speedy implementation. They invite UNDP and other donors to give serious consideration to financing programmes and projects to assist African countries in their implementation of the Uruguay Round Agreements. Such programmes should be implemented in close collaboration with ECA, OAU and relevant subregional organizations.

39. They also invite UNDP and the donor community to consider financing UNCTAD and ITC programmes and projects designed to assist African countries to adapt to and derive benefits from the Uruguay Round Agreements.

41. UNCTAD should follow up closely the implementation of the Uruguay Round Agreements with a view to providing policy-oriented recommendations from a development perspective, with particular emphasis on LDCs. This should include: (i) identification and assessment of new trading opportunities; (ii) analysis of national implementing legislations and subsequent trade policies and practices in the major trading countries and the impact on the trading opportunities of developing countries; (iii) analysis of the problems of implementation of the Uruguay Round Agreements in the developing countries; and (iv) analysis of how developing countries could best utilize the various transitional periods available to them to adjust their policies and strategies - and how they could be assisted - in order to be able to comply, at the end of the relevant implementation periods, with their multilateral obligations.

42. While welcoming the ongoing cooperation between the World Intellectual Property Organization (WIPO) and UNCTAD for purposes of considering the overall implications of the TRIPs Agreement for developing countries, with special emphasis on the social, economic and technological aspects, the Ministers note that further studies and technical assistance are required for the implementation of this Agreement. In particular, they note the need to provide developing countries with advice and technical assistance in the implementation of the provisions of the Agreement, particularly within the transitional period, and urge UNCTAD, in cooperation with appropriate international organizations, including WTO and ITC, to provide inputs and technical cooperation to facilitate the implementation of the TRIPs Agreement.

43. UNCTAD should continue its analysis in the area of trade in services with a view to identifying trading opportunities for developing countries which would arise from the implementation of the General Agreement on Trade in Services (GATS) on a sectoral basis. Taking into account the special provisions in the GATS pertaining to developing countries, the assessment should also identify appropriate measures, at the national and international levels, to assist developing countries to take full advantage of those opportunities, including measures to develop strategies to strengthen their services sector and their domestic services capacity and to expand their services trade.

44. In view of the importance of telecommunications as a service in itself and as an infrastructure for the provision of other services, international and regional organizations (including financing institutions), as well as the developed countries, should encourage and support the development of the telecommunications and computer-related infrastructures, and the services trade, of developing countries. Special attention should be given to ways and means of assisting developing countries to strengthen their domestic telecommunications infrastructure and service capacity, including through transfer of technology, training and human resource-development in telecommunications and computer-based technologies. Given the severe lack of telecommunication infrastructure in Africa, special consideration should be given to the establishment of telecommunication nodes in the continent.

45. Recent advances in information technologies offer opportunities for considerably more efficient ways of conducting international trade transactions, as well as for seizing new trading opportunities. Over the past decade, UNCTAD has built up evidence which shows the practical results that can be obtained in this domain. The Columbus Ministerial Declaration of UNISTE, which designates UNCTAD as the focal point for its implementation, states the need to promote electronic trade world-wide based on the principle of equality of access of all countries to systems compatible with international standards recommended by the United Nations. UNCTAD should serve as a forum for the creation of intergovernmental consensus on the developmental aspects of the global information infrastructures. A Trade Efficiency Review Mechanism (TERM) should also be established within UNCTAD for the dissemination of information on the efforts made by countries to implement the recommendations of UNISTE. Donors and funding agencies are invited to consider financing such efforts.

46. The Ministers recognize that, in order for trade to develop rapidly and efficiently, a well-functioning transport system is a necessity. Considering its very important contribution to the development of transport systems in developing countries and in Africa in particular, UNCTAD should continue and strengthen its action in the implementation of the second phase of the Second United Nations Transport and Communications Decade in Africa (UNTACDA II) Programme. They invite Africa's development partners to seize the opportunity of UNCTAD IX to strengthen UNCTAD's capacity to implement transport programmes and, with particular reference to Africa, to pursue the objectives of the UNTACDA II Programme, taking into consideration the situation of land-locked countries.

47. The Ministers took note of the Advance Cargo Information System (ACIS) developed by UNCTAD which enables transport operators and their clients to track cargo throughout the transport chain and which is currently being installed on a pilot basis in a number of developing countries. Given that this system enables countries to access world trade markets by using electronic data interchange techniques and improves the efficiency of national transport operators by providing the right information at the right time on each operator's network, Ministers urge UNCTAD to extend the system to all interested African countries.

48. The Ministers reaffirm that the pursuit of the built-in future work programme contained in the various Uruguay Round Agreements must take fully into account the interests of developing countries, particularly those of African countries. In the area of services, the objective should be to achieve substantial liberalization in sectors and in modes of supply of export interest to developing countries, including in particular the movement of natural persons. Further efforts will also be required in the area of tariffs, especially with respect to products of export interest to developing countries. The problems of tariff peaks and tariff escalation which has an inhibiting effect on the development of processing industries in developing countries remain substantial in product groups of major export interest to developing countries such as tropical products and natural-resource-based products. While there is no multilateral agreed agenda in WTO for immediate future negotiations with regard to tariffs, further liberalization could be achieved through improvements in GSP schemes or other preferences. This could provide additional access to developing countries, particularly the least developed countries, for which tariff margins in their favour were eroded in the Uruguay Round.

49. The Ministers urge the following improvements to GSP schemes: (i) extension of the product coverage to include agricultural products, textiles and clothing, processed food, leather and footwear; (ii) deepening of tariff margins where GSP rates are above zero; (iii) elimination of quantitative restrictions; (iv) simplification and harmonization of the rules of origin; (v) reduction of procedural complexities and avoidance of frequent changes in schemes; (vi) removal of any conditionalities attached to the GSP; (vii) study of the inclusion of new areas such as services and investments; (viii) adoption of criteria for country graduation in consultation with the developing countries.

50. The Ministers call on the European Union to implement its commitment to compensate losses of preferences affecting ACP countries' competitiveness on the EU markets, as stipulated in Annexes XXVII and XXIX of the Lomé Convention. They equally call on Africa's other development partners to emulate these provisions and seriously consider setting up a compensatory mechanism to support their adjustment efforts towards full participation in the emerging trading system under the Uruguay Round Agreements.

51. In the implementation of commitments under the Uruguay Round Agreements, the developed countries should, as far as possible, provide more favourable treatment for exports and services from developing countries. In particular, customs regulations and administrative procedures adopted to implement market access commitments in the agricultural sector should not impose new regulatory burdens and restrictions on imports from developing countries. For products subject to agricultural tariff quotas, the allocation of quota licences should be such as to enable developing-country suppliers, particularly African exporters to increase their market share. Developed countries should faithfully implement the General Agreement on Trade in Services (GATS) in letter and spirit, particularly Article IV, Article XIX and the Annex on Telecommunications which aim at facilitating the development of the domestic services capacity of developing countries and their increased participation in world services trade.

52. The Ministers welcome General Assembly resolution 50/95 of 20 December 1995 on international trade and development which emphasizes, among other things, the urgent need for assistance to African countries for evaluation of the impact of the results of the Uruguay Round on them and to enable them to identify and implement adaptive measures to enhance their competitiveness. The resolution also invites UNCTAD IX, inter alia, to transmit its assessment of challenges and opportunities arising from the Uruguay Round Agreements from a development perspective to the Ministerial Conference of the WTO to be held in Singapore in December 1996. In this connection, the Ministers urge that the assessment of UNCTAD IX, which might require further elaboration by the Trade and Development Board before the Singapore meeting, should be as comprehensive and country-specific as possible and include proposals for benefiting from the trading opportunities and dealing with the transitional difficulties of developing countries, particularly the least developed countries, many of which are in Africa, and the net food-importing developing countries.

53. The central objectives of international commodity policy have been broadly to achieve stable conditions in international commodity trade at price levels that are remunerative to producers and equitable to consumers; to improve productivity and increase commodity export earnings, in particular those of developing countries; to maximize overall efficiency in the use of resources by, among other means, halting and reversing protectionism and removing distortions to trade; and to enhance the ability of developing countries to manage commodity dependence and to diversify their productive capacity and exports. UNCTAD IX should agree on concrete measures to further the achievement of these goals. The development of commodity exchanges in developing countries can help strengthen efficiency in commodity trade, as well as improve the participation of their enterprises in commodity trade.

54. In order to help achieve a better balance in commodity markets between supply and demand, particularly for commodities in recurrent excess supply, ways and means should be found to facilitate an exchange of information and voluntary cooperation among producers on a regular basis, in particular by studying the possibility of the establishment within UNCTAD of an international commodity observatory.

55. As a matter of priority, financing mechanisms to deal with the instability and risks faced by commodity-export-dependent developing countries should also be strengthened. In particular, there should be a reduction in the conditionality of the IMF's Compensatory and Contingency Financing Facility (CCFF) and a significant expansion of the resources of bilateral compensatory schemes such as the Lome Convention's STABEX. UNCTAD, in cooperation with other relevant agencies including ITC, should establish a mechanism to explore practical means to enhance the ability of developing countries to reduce the negative effects of commodity dependency through, inter alia, the use of modern instruments of marketing and risk management.

56. The Ministers also underscore the need for local processing, partially or fully, of primary products produced by African countries in order to mitigate the adverse impact on their economies of substantial fluctuations in commodity prices.

57. To promote commodity diversification, both horizontally and vertically, there should be a binding commitment to provide special financial assistance for the promotion of commodity diversification in Africa, for the identification and promotion of diversification projects, for removing the supply constraints affecting the commodity sector in African countries, in particular the least developed among them, and for achieving and maintaining adequate levels of mineral exploration in Africa.

58. Donors are invited, in accordance with General Assembly resolution 49/142, to give particular attention and support to the commodity diversification efforts of African countries. States which participate in the African Fund for Development of the African Development Bank are invited to consider making, as soon as possible, adequate initial contributions to the Fund so as to make it operational. Multilateral institutions are also invited to give high priority to providing technical and financial assistance to African countries for commodity diversification, particularly for the preparatory stages of related projects and programmes.

59. The Ministers call for appropriate efforts to be made to mobilize more effectively international resources for the financing of commodity diversification in African countries, including in particular the voluntary contributions which had been pledged to the Second Account of the Common Fund for Commodities, most of which have not been yet paid. Since the First Account of the Common Fund is not operational, UNCTAD IX should call for a suitable amendment to the mandate of the Fund with a view to increasing its ability to finance commodity-sector diversification and development programmes, particularly in favour of the least developed countries.

60. While governmental restraints on trade have been substantially reduced in recent years, through actions taken both unilaterally and in the context of the Uruguay Round multilateral agreements, little has been done to address the restrictive business practices (RBPs) impeding trade at the international level. In order to ensure that trade concessions and obligations are not nullified by private anti-competitive practices, the multilateral trading system needs to be strengthened with binding multilateral rules to address restraints on trade by private firms. Such rules could be developed from the common ground of competition principles which are embodied in national competition laws, bilateral and plurilateral trade agreements and the Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices. UNCTAD IX should agree on practical steps and on appropriate institutional mechanisms to promote international consensus on binding competition principles.

61. UNCTAD should follow up the recommendations of the African Workshop on Competition Policy, held at Tunis on 17 and 18 October 1995. In particular, UNCTAD should: organize an annual African regional meeting on competition policy; establish an inventory of institutions and regulations on competition policy in Africa; provide data bases and mechanisms for the exchange of information on restrictive business practices; and establish a regional technical cooperation programme for Africa on competition policies involving, inter alia, training.

62. The Ministers express concern regarding the unilateral and extra-territorial application of environmental standards in international trade. They emphasise that environmental measures should not be used as a form of protectionism. Environmental problems with cross-border effects should be addressed through the framework of multilateral environmental agreements (MEAs). Environmental measures should be anchored on the principles of necessity, non-discrimination, least trade restrictiveness and transparency.

63. The need to comply with externally imposed environmental concerns may divert resources from the immediate development needs of developing countries and slow down their development process. In view of the costs of compliance with environmental standards, which are relatively more onerous for developing than for developed countries, and considering that the developing countries' contribution to global environmental problems has been lower than that of the developed countries, special efforts, in keeping with Agenda 21 (chapter 2, parts A and B) and Principle 7 of the Rio Declaration, should be made to include positive measures in MEAs. Positive measures, rather than trade-restrictive measures, should include incentives which encourage trade and the use of environmentally friendly alternatives, as well as facilitating mechanisms related to the transfer of technology and finance. Such measures should support the efforts of African countries to move towards higher environmental standards and should assist them to meet internationally agreed targets in the context of MEAs.

64. Taking into account the work done by other organizations (in particular WTO and UNEP), UNCTAD should continue its work on trade and environment, including efforts to build international consensus on principles and modalities regarding the interface between trade, environment and development, and to provide developing countries with assistance in negotiating more balanced agreements in this field. Keeping in mind that development objectives must go hand in hand with environment objectives, UNCTAD should also assist in identifying positive measures, including facilitating mechanisms related to the transfer of technology and finance (including foreign investment), to support the efforts of developing countries to adjust to higher environmental standards and to meet internationally agreed environmental targets. UNCTAD, in cooperation with ITC, should extend technical assistance to African countries to enable them to identify and clarify issues of interest to them concerning trade and environment, including the creation of internationally recognized national environmental systems, as well as to participate effectively in negotiations on trade and environmental issues.

66. The Ministers note that the overwhelming majority of enterprises in African countries are of small or medium size. The involvement of these enterprises in a wide variety of activities, ranging from providing goods and services in the informal sector to the manufacture and export of goods and services in the modern sector, give them a particular significance in economic and social development. Being labour-intensive, they play an important role in creating employment and in upgrading skills. By providing self employment or wage employment, they add to existing income opportunities, thus helping to fight poverty. Small and medium-sized enterprises (SMEs) also play a crucial role in enhancing the participation of women in production and in entrepreneurial activities. Moreover, SMEs are able to use resources of the informal sector that may otherwise not be drawn into the development process.

67. The Ministers note with concern that in many African countries, in particular in least developed ones, the development of the domestic enterprise sector has stagnated. A large number of industrial enterprises of these countries are working at a capacity utilization rate that is lower than 30 per cent. The productivity gap between the enterprise sectors in the developed countries and in the African countries has been further widened, despite the structural adjustment efforts and economic reforms undertaken by many of the latter. These structural adjustment programmes, which were expected to revive the manufacturing sector in African countries and to promote exports of these countries, had an impact on the enterprise sectors that was often far from positive. The Ministers therefore call for measures to be included in structural adjustment programmes in favour of enterprise development. These measures should include the provision of loans on concessional terms with a view to enhancing the supply response of domestic enterprises to other measures contained in such programmes.

68. The Ministers note the importance of foreign direct investment (FDI) flows for economic modernization and structural transformation in a globalizing and liberalizing world economy. They also recognize the need for ensuring an enabling environment in their countries that is conducive to national and foreign investments for enterprise development. The Ministers request UNCTAD to undertake studies and provide assistance to promote opportunities for FDI offered by Africa in general and by individual African countries.

69. At the same time, the Ministers express their concern at the fact that, despite the efforts of many African Governments to attract FDI, the many profitable opportunities waiting to be explored and the relatively high rates of return on foreign direct investment in Africa, the recent upsurge of investment flows to developing countries has largely bypassed the continent. Most FDI flows are directed towards a few countries and are negligible for the least developed countries. The Ministers urge the Governments of developed countries to adopt positive policies and measures to ensure that the dynamism, global resources and vast capabilities of the TNCs are harnessed and directed towards indigenous technological capacity-building in African countries, for the expansion of their export opportunities and for measures to ensure their access to new technologies and structures, including information and transport networks, distribution and marketing channels and key services, that enhance the competitiveness of domestic enterprises in African countries. The Ministers call on their development partners to support the economic reform efforts of African countries in order to attract foreign direct investment for the development of national enterprises and to enhance their competitiveness.

70. The Ministers acknowledge that economic liberalization and the ensuing globalization of investment and production have been the hallmark of economic policy throughout the world. However, because of sluggish growth in the enterprise sector, lack of success in the acquisition of new technology, insufficient FDI flows, poor infrastructural facilities and weak national institutional capacities, domestic enterprises of African countries have not been able to participate to any significant extent in the globalization of production of goods and services. The Ministers therefore call for measures at both the national and international levels that will promote the activities and enhance the competitiveness of the domestic enterprise sector at the national, regional and interregional levels. In view of the increased competitive pressures on the enterprise sector brought by liberalization and globalization, the Ministers assert that UNCTAD IX provides a unique opportunity for policy dialogue on resource flows and improved conditions for market access and transfer of technology so that SMEs can benefit from their adaptability to swiftly changing market conditions and to new technological developments.

71. The Ministers note that many African countries have pursued public enterprise reforms and privatisation programmes with the objective of increasing economic efficiency, enhancing enterprise productivity and promoting dynamic growth. Privatization assumes a particular significance in this context since, under appropriate conditions, it could help to diminish budgetary deficits, spin off new enterprises and lead to new investment providing access to modern technology and new markets. However, in some cases privatization has led to substantial social costs. The Ministers stress the need for pertinent policies and measures by both their Governments and the donor community that may help to cushion against adverse social consequences of privatization that are being experienced by some countries.

72. The Ministers request UNCTAD to continue to provide a forum for intergovernmental discussions, with the participation of representatives from the private sector, concerning issues related to privatization, enterprise development and international flows of investment. In particular, UNCTAD should promote the international dialogue among development actors for the purpose of assessing the challenges and opportunities for enterprise development arising from the emerging new economic conditions, including the post-Uruguay Round environment. This policy dialogue within UNCTAD should also be conducted with a view to identifying and disseminating "best practices" and lessons concerning the effects of government policies and market mechanisms on the development of enterprises, particularly SMEs, and their links to trade, investment, technology and finance. The Ministers also request UNCTAD to undertake preliminary work in identifying and clarifying issues of interest to developing countries concerning a multilateral framework on investment, bearing in mind the work undertaken in other organizations. ECA could complement such an enquiry in respect of how such a proposed multilateral framework on investment could impact on the development of African countries. Technical cooperation activities undertaken by UNCTAD in the field of enterprise development and advisory services on investment and technology should be continued and strengthened, taking into account the work of other relevant organizations, in particular ITC.

73. The Ministers, recalling the 1995 Gaborone Declaration of African Ministers of Industry on the implementation of the programme of the Second Industrial Development Decade for Africa (IDDA II), note that African countries require considerable assistance from the international community in framing industrial restructuring and technology strategies to meet their particular needs. In this connection, they urge UNCTAD, in cooperation with UNIDO, to assist African countries to evaluate and strengthen the contribution of science and technology policies and institutions to the development of their productive sectors, in particular agriculture, and to elicit the support of the international community in these efforts. In this regard, UNCTAD is urged to establish a special mechanism to facilitate and monitor the transfer of technology to African countries.

75. The Ministers consider that UNCTAD's work should continue to focus on global economic trends and the interrelated issues of international trade, investment, finance and transfer of technology from a development perspective, taking into account the special needs of the least developed countries. In fulfilling its mandate and tasks, UNCTAD should work closely with other relevant international and regional organizations, as well as non-governmental actors, including the private sector.

76. The Ministers consider further that the Cartagena Commitment launched a process of revitalization, reorientation and consolidation of UNCTAD's institutional machinery and substantive work programmes. This process should continue through a dynamic and flexible sequence which involves identifying relevant issues; carrying out high-quality analytical work drawing on contributions from governmental and non-governmental actors; and conducting intergovernmental consultations, dialogue and interaction aimed at consensus-building and, when appropriate, negotiations. UNCTAD's activities should also include technical assistance aimed at supporting the efforts of developing countries to modernize and integrate their economies into the global economy. In this connection, UNCTAD should strengthen its information base in the various areas of its competence, taking into account the work of other relevant organizations. The Ministers urge all donors to increase their financial contributions in support of UNCTAD's technical cooperation programmes and call upon the secretariat to play an active role in the mobilization of funds.

77. The Ministers firmly believe that the success of UNCTAD's work requires the full and effective participation of developing countries. In this regard, the institutional reform of UNCTAD should enable it to play a more proactive role in assisting developing countries, especially those in Africa, least developed and land-locked countries, to participate effectively in the global economy. They further call for the financing of the participation of experts from developing countries in technical meetings and relevant UNCTAD activities.

78. In the context of liberalization and globalization, Africa is confronted by pressing challenges of integration into the world economy. The reform and restructuring of UNCTAD's work programmes and intergovernmental machinery should therefore give priority attention to Africa's needs. In this respect, and in addition to the review, monitoring and follow-up of the implementation of the Programme of Action for the Least Developed Countries for the 1990s and of UN-NADAF, UNCTAD should give particular consideration to the situation and needs of LDCs and land-locked developing countries. The issues of major concern to Africa, include inter alia:

• (i) Poverty alleviation;
• (ii) Addressing the problems of commodity dependence;
• (iii) Transfer of technology;
• (iv) Implementation of the Uruguay Round Agreements, including mitigation of adverse effects and benefiting from trading opportunities;
• (v) Dealing with future trade negotiations and new issues;
• (vi) Attracting foreign direct investment and promoting enterprise development;
• (vii) Provision of new and additional financial resources, including the adequacy and modalities of official development assistance;
• (viii) Policy issues related to debt and the management of debt;
• (ix) Capacity-building (including trade efficiency);
• (x) Economic cooperation among developing countries;
• (xi) Development of the services sector, including tourism.

79. The Ministers decide to mandate the Africa Group in Geneva, in the context of the substantive preparatory process for UNCTAD IX, including the future of UNCTAD's intergovernmental machinery, to enter into negotiations with other regional groups and countries with a view to advancing the interests of the African region and achieving a common purpose. These negotiations should also ensure the emergence of a more focused and output-oriented UNCTAD which delivers concrete benefits to its members, while strengthening unity between all developing countries and their development partners.

80. The Ministers trust that UNCTAD IX provides an exceptional opportunity to reinvigorate the dialogue on development and international cooperation with a view to revitalizing the development of the developing countries through multilateral cooperation in a spirit of genuine partnership. In this regard, all relevant organizations, including UNCTAD, ECA and OAU, should cooperate closely to promote the integration of African countries into the new global economy.

1. We, the African Ministers of Trade, Regional Cooperation and Integration and Tourism, having met in Addis Ababa, Ethiopia, from 14 to 16 February 1996, in preparation for the ninth session of the United Nations Conference on Trade and Development, to be held in Midrand, South Africa, from 26 April to 11 May 1996, wish to welcome warmly all participants in UNCTAD IX to our continent. We express our deep appreciation to the Government and people of South Africa for hosting UNCTAD IX.

2. UNCTAD IX takes place against the background of a world economy that is becoming both more closely integrated and more economically polarized in terms of regions, countries and people. While the accelerating pace in the interrelated processes of liberalization and globalization in the world economy has increased opportunities for growth and development, it has also added new complexities and risks in managing global interdependence. Thus far, Africa has been largely by-passed by the positive effects of the globalization process, and the risk of further marginalization of this continent looms large. The main challenge at UNCTAD IX is to take urgent actions to integrate Africa rapidly and sustainably into the mainstream of the world economy.

3. The African countries realise that they first and foremost bear the responsibility for their development, and we have made unprecedented efforts to liberalize our economies. We have done this unilaterally, in particular within structural adjustment programmes and multilaterally in the Uruguay Round. However, we are concerned at the adverse effects and the significant transitional costs for the African countries, particularly the least developed and the net food-importing countries, arising from the implementation of the Uruguay Round Agreements. We firmly believe that appropriate measures should be adopted to mitigate these adverse effects and that the African countries should be assisted to reap the benefits and opportunities provided by the Uruguay Round Agreements.

4. We recognize that accelerated economic progress in the context of global economic interdependence and our present economic possibilities cannot be achieved by our domestic efforts alone. It will require a favourable external environment and substantial external assistance through the revitalization of international economic cooperation. The least developed countries should receive special attention in this respect.

5. We believe that UNCTAD IX provides an exceptional opportunity to reinvigorate the dialogue on development and international economic cooperation, with a view to revitalizing the development of the developing countries through multilateral cooperation in a spirit of genuine partnership.

6. We reaffirm the continuing relevance and role of UNCTAD as the principle forum of the United Nations system with a clear mandate for the integrated treatment of development and interrelated issues in the areas of trade, finance, investment, services, commodities, technology, sustainable development, issues relating to LDCs and land-locked countries and the promotion of international economic relations conducive to development.

7. As we approach the new millennium, UNCTAD should be at the forefront of international efforts to promote the development of developing countries, particularly the least developed among them.

8. We are determined to reform and adapt UNCTAD, so that it continues to promote development in the new context of increased interdependence and complexities in international economic cooperation. We need to ensure that UNCTAD makes a meaningful contribution to improving the conditions of life for all our people.

9. While reaffirming our full support for the Cartagena Commitment made at UNCTAD VIII, we emphasize that the ongoing changes in the world economy call for new and imaginative development policies and approaches to the emerging complex social and economic issues. We therefore call for the renewal and reinvigoration of the partnership for development between developed and developing countries and between the public and private sectors.

10. In the context of these tremendous challenges, we consider it imperative that a revitalized UNCTAD not only addresses the current development challenges facing developing countries, but provide the critical support we need in preparing for future trade negotiations.

11. We also recognize that the great advances made in the field of information technology provide us with a breakthrough in support of our development efforts. We will be working closely with all our partners to ensure that the global information infrastructure for development and other related technologies will be available to support African development.

12. We trust that the spirit of South Africa, which symbolizes hope in the resolution of seemingly intractable human problems, will inspire the continuous and constructive dialogue between all member States of UNCTAD with the ultimate objective of achieving equitable and sustainable development and prosperity for all.