Bridges Weekly Trade News Digest • Volume 8 • Number 2 • 21st January 2004

Regional Sustainable Development Meeting Considers Water, Sanitation, Settlements

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CIVIL SOCIETY DISCUSSES FUTURE ROLE OF UNCTAD IN LEAD-UP TO JUNE ASSEMBLY

The Preparatory Committee for UNCTAD XI organised a civil society hearing on 16 January. The event focused on three themes — development strategies in a globalising world economy; building productive capacity and international competitiveness; and assuring development gains from trade — with introductory statements on each. A representative of SEATINI made a presentation emphasising the need for developing countries to retain "policy space" allowing them flexibility and choices in the pursuit of development goals. Oxfam suggested that UNCTAD be given the mandate to monitor and assess the impact of trade rules at the global, regional and bilateral levels, and serve as "a forum in which developing countries share pro-poor economic development strategies and… build the political consensus, strategy, and organisation necessary for effective intervention in multilateral decision-making". A speaker from the Center for International Environmental cautioned against letting the unfounded concern that environmental considerations might hamper development aspirations limit UNCTAD’s vision. He suggested that UNCTAD could play a greater role in assessing both economic and environmental impacts of trade and investment policies. In the discussion, a number of participants highlighted the need to inject new momentum into global trade talks following the collapse in Cancun. Several raised the commodities crisis as a concern.

UNCTAD holds a conference every four years to set its priorities and guidelines, and to provide an opportunity to debate key economic and development issues. UNCTAD XI will be held from 13-18 June in São Paulo, Brazil. Another civil society hearing is scheduled for 23 February.

ICTSD reporting.

The UN Economic Commission for Europe (UNECE) organised a Regional Implementation Forum on sustainable development from 15-16 January in Geneva, Switzerland. Similar meetings have already been held in other UN regions, as requested by the eleventh session of the Commission on Sustainable Development (CSD-11). The CSD process — which seeks to enhance implementation at the regional and sub-regional levels following the World Summit on Sustainable Development (WSSD) in 2002 — is focused on the areas of water, sanitation and human settlements during the 2004-2005 cycle. Delegates to the UNECE Regional Implementation Forum heard panel discussions on human settlements, water, sanitation and interlinkages, and engaged in discussion on a wide array of related issues and agreed on key actions that should be undertaken in each area. While trade links and the ongoing offer-request phase of WTO services negotiations — which cover the areas of water and sanitation — did not feature on the meeting agenda, some participants alluded to these during discussions. The NGO grouping Stakeholder Forum highlighted the need for integrating trade and sustainable development agendas.

The next session of the UN Commission on Sustainable Development, CSD-12, will be held in New York from 19-30 April this year.

For a full report of the conference see IISD’s Earth Negotiations Bulletin at http://www.iisd.ca/csd/rim/ece/

"Water & sanitation: a problem even in so-called developed countries," UNECE RELEASE, 15 January 2004; "Human Settlements: Are recent trends compatible with sustainable development?" UNECE RELEASE, 15 January 2004.

WORLD BANK INVOLVEMENT IN EXTRACTIVE INDUSTRIES REVIEWED

The World Bank’s Extractive Industries Review (EIR) submitted its final report to the World Bank President on 16 January. The EIR — initiated in 2001 in response to pressure from the non-governmental community and concluded in late 2003 — focused on the role of the World Bank Group in extractive industries, given the obligations it has to alleviate poverty and promote sustainable development. A number of stakeholders were involved in the process, as it sought to encompass the views of industry, civil society and governments. The six-volume final report concluded that the World Bank still has a role in the oil, gas and mining sectors as long as its intervention focused on poverty alleviation through sustainable development. According to the report, preconditions for the Bank’s involvement should include pro-poor public and corporate governance, much more effective social and environmental policies, and respect for human rights. The relevant World Bank Department is expected to respond to the report in April.

However, during a December summit at which the EIR recommendation were compiled, Friends of the Earth International (FOEI) released a report criticising the Bank for supporting industries that harvest coal, oil and natural gas. According to the study, entitled "Hands Off: Why International Financial Institutions Should Stop Drilling, Piping, and Mining", developing countries experience grave environmental and social consequences as a result of the exploitation of their natural resources. Instead, FOEI recommends a gradual phase-out of investment in fossil fuel and mining projects and a greater focus on the rights of local populations in decision-making processes, both of which would have far-reaching effects on the international trade and investment scene.

The EIR and FOIE reports can be accessed at http://www.eireview.org/EIR/eirhome.nsf/be65a087e9e6b48085256acd005508f7/75971F6A8E5A111385256DE80028BEE2?Opendocument and http://www.foei.org/media/2003/handsoff.html

"World Bank Urged to Stop Financing Oil, Coal Projects," UN WIRE, 11 December 2003; "Letter to Wolfensohn," EIR, 12 January 2004.