ĦĦĦThe First South Summit: A Critical Evaluation by BHASKAR MENON

In April, the first South Summit took stock of the current economic and social situation of developing countries, set out their major priorities and issues of concern, and gave their Group of 77 unprecedented capacity for independent analysis and outreach. Its substantive conclusions were similar to past positions, but the institutional change it made could have a significant impact if backed by a coherent strategy. This is assessment of Bhaskar Menon, Editor of UNDiplomatic Times.

EVOLUTION OF THE G-77
The Group of 77 was established in 1964, when Latin American countries joined African and Asian States in a statement of common interest and purpose at the first United Nations Conference on Trade and Development (UNCTAD 1). By including all developing countries in the UN-77 countries then, and 133 now the G-77 established the basic North-South pattern of group politics throughout the UN system. In its first two decades, it was the dominant force shaping the agenda of economic and social issues at the UN. Political and security issues were left off the G-77 agenda; they were the primary focus of the Non-Aligned Movement because most Latin American countries sided with the West during the Gold War.
G-77 influence peaked in the 1970s. Energized by the rising power of the Organization of Petroleum Exporting States (OPEC), it tried unsuccessfully to negotiate a "new international economic order." Since then, due to internal and external external reasons, its influence has waned.
Internal factors. Perhaps the most obvious of these is that the G-77 has no permanent structure. Its leadership changes annually. The Chairman is supported only by a small, seconded staff that changes every few years. Institutional memory resides disproportionately in its documentation, which has traditionally been negotiated issue by issue at regional levels, with substantive input from national sources and parts of the UN system (UNCTAD and the Regional Commissions, mostly). Regional positions are then merged into a G-77 paper or negotiating text. The process allows all interests within the Group to be reflected in the documentation, but does little for coherence. Lack of coherence has been further accentuated by the strengthening identities of a variety of subgroups of developing countries within the UN membership. A number of new groups such as the Least Developed Countries (LDCs), the Small Island Developing States, and the Landlocked Countries reflect special needs. Others, to mention only a few, are based on such factors as language (French, Spanish and Portuguese), religion (Islam), history (Commonwealth), and subregion (Andean, Arab, Southeast Asia, Caribbean, and South Pacific). All these groups deal with economic and social issues. There are arguments that this is desirable because it improves the focus on special needs and interests within the G-77, which it does. But the net result has been to weaken allegiance to the larger group and sap its ability to set effective overall strategy. Increasingly, the G-77 has become an umbrella for subgroup positions.
External factors. Outside forces that had a weakening impact on the G-77 include some of the broad political developments of our time. The end of apartheid and the beginning of the Middle East peace process both had the effect of reducing African Arab dynamism and synergy within the G-77. The rise of OPEC opened up a large gap between its suddenly wealthy members and the rest of the G-77. The rise of OPEC opened up a large gap between its suddenly wealthy members and the rest of the G-77. The emergence of the Asian "Tigers" and the graduation of Mexico to the North American Free Trade Association (NAFTA) further underlined the differences between economically successful members of the G-77 and those at the opposite extreme. The end of the Cold War and the demise of the Eastern European Group at the UN (in survives only for electioneering) accentuated differences between democratic and totalitarian states in the G-77.
In sum, these developments fundamentally altered the political underpinnings of the G-77 and had the effect of obscuring the overall rationale for the existence of the Grou. Increasingly, the work of the Group became pro forma in nature.
All this is not to say that the basic rationale of the G-77 has weakened. The center-periphery paradigm for the relationship between developed and developing countries articulated by Raul Prebisch, chief strategist for the developing countries at UNCTAD 1, might need updating. However, it is certainly still relevant in a world where industrialized countries have enjoyed swift progress, and most developing countries continue to exist in circumstances of deprivation, vulnerability and weakness. As a group, developing countries, have slipped further behind developed countries in income, and the technological gap is widening at an alarming rate. Even developing countries that have prospered over the last four decades remain vulnerable to international economic volatilities over which they have little control. With four-fifths of the world's population, developing countries continue to have little voice or influence in the arrangements that shape international political and economic realities.
It was against this background that the first "South Summit" convened in Havana, Cuba, from 1 to 14 April. The analysis below presents the highlights of the Havana Declaration and Program of Action, which were issued as the final documents of the Summit and looks at some elements for evaluating them.

PRIORITIES
Economic and social development, the essential foundation for peace, is the "highest priority." It is envisaged as "a continuing process, without arbitrary limits" and involving the "eradication of hunger, illiteracy, disease and poverty."
The traditional assertion that development is "primarily [the] responsibility" of developing countries is coupled with concern that "international cooperation for development has been downplayed on the agenda of the international community, including the United Nations system." Noting that the Millennium Summit of the General Assembly in September 2000 would discuss the role of the United Nations in the 21st century, the Havana Declaration urged the G-77 and the Non-Aligned Movement to ensure that the outcome fully reflected the two subthemes: "Peace, security and disarmament" and Development and poverty eradication.
The Summit expressed concern at the continuing fall in official development fall in official development assistance (a post-Cold War phenomenon), the widening gap in income between and within countries, debilitating levels of international debt, and the marginalization of African and Least Developed Countries (LDCs ) in the processes of globalization. It was deeply alarmed at the "persistent critical economic situation in Africa," where poverty is at "intolerable levels, with negative consequences for the stability of most countries and regions of the continent."
The Summit expressed "dismay at the increasing number of children involved in and affected by armed conflict", and called for remedial action. It noted with "deep concern the increase of all kinds of criminal activities, including illicit traffic of arms, drugs and other products which are used to foster and finance organized crimes and all types of transnational crimes which continue to be a major factor of instability and a threat to development." The trafficking of women and children in that context is a particular concern. It called for stronger international cooperation and new mechanisms to prevent and eliminate these activities.
Although it emphasized the principles of sovereignty, sovereign equality and non-interference in the internal affairs of states, the Summit did deal with issues of domestic governance:
"We are committed to promoting democracy and strengthening the rule of law We will promote respect for all universally recognized human rights and fundamental freedoms, including the right t development. We pledge ourselves to provide transparent, effective and accountable governance, responsive to the needs of our peoples, which is necessary for economic growth, peace and prosperity."
The Summit considered its traditional priorities within the framework of three overarching themes: Globalization, South-South cooperation and North-South relations.

GLOBALIZATION
The Summit voiced strong support for globalization, saying it "can be a powerful and dynamic force for strengthening cooperation and accelerating growth and development." If "properly harnessed and managed", it can lay the "foundations for enduring and equitable growth." Bur for developing countries to share fully in the benefits of globalization, it had to be "based on an essential sense of social justice and human solidarity." There should be "mechanisms that will guarantee full and effective participation by the South in international decision making, on an equal basis," the Summit said. It called for "expeditious measures" to make the existing international mechanisms "more transparent, inclusive, participatory, interactive and broad based." It also urged similar measures at the national level, saying that "efforts to promote development require a true partnership that is more inclusive and participatory and which involves all stakeholders, including the private sector and NGOs."
Transnational corporations (TNCs) as the main agents of globalization were dealt with only briefly and in generally positive terms by the Summit. The global strategies of TNCs, their competitiveness and search for ever-higher profits contribute to sustained economic growth and sustainable development the Summit said. But that "is not necessarily consistent with job creation and the realization of development objectives in many developing countries." It urged that TNCs "integrate the development objectives of host-developing countries in their business strategies." It asked UNCTAD and the International Labor Organization (ILO), within their respective mandates, to study the impact of TNC mergers on unemployment and the competitiveness of small and medium enterprises in developing countries.

SOUTH-SOUTH COOPERATION
The Summit stressed the crucial importance of South-South cooperation in ensuring the "foundations for enduring and equitable growth." But for developing countries to share fully in the benefits of globalization, it had to be "based on an essential sense of social justice and human solidarity." There should be "mechanisms that will guarantee full and effective participation by the South in international decision making, on an equal basis," the Summit said. It called for "expeditious measures" to make the existing international mechanisms "more transparent, inclusive, participatory, interactive and broad-based." It also urged similar measures at the national level, saying that "efforts to promote development require a true partnership that is more inclusive and participatory and which involves all stakeholder, including the private sector and NGOs."
Transnational corporations (TNCs) as the main agents of globalization were dealt with only briefly and in generally positive terms by the Summit. The global strategies of TNCs, their competitiveness and search for ever higher profits contribute to sustained economic growth and sustainable developing countries. It urged that TNCs "integrate the development objectives of host-developing asked UNCTAD and the International Labor Organization (ILO), within their respective mandates, to study the impact of TNC mergers on unemployment and the competitiveness of small and medium enterprises in developing countries.

SOUTH-SOUTH COOPERATION
The Summit stressed the crucial importance of South-South cooperation in ensuring the "equitable and effective participation of developing countries in the emerging global economic order." It said the "platforms, strategies and plans of action" adopted by the Group of 77 and the Non-Aligned Movement constitute "a comprehensive philosophy and framework for action" for wide ranging and intensified South-South cooperation. Noting that progress over the years "has not been commensurate with the comprehensive nature of the commitments," the Summit committed the G-77 "to overcoming whatever factors that have limited this cooperation." To that end, it took the following decisions:
A High-level Advisory Group of eminent personalities and intellectuals will be convened to prepare a report on globalization and its impact on developing countries, for submission to the annual G-77 Ministerial Meeting in 2001.
The Chairman of the G-77 should review the complementarities and harmonization of all existing South-South cooperation programs.
In collaboration with the TCDC Unit of the UN Development Program, the Chairman of the 77 should issue an annual report on South-South economic and technical cooperation.
The TCDC Unit should be strengthened and given adequate resources to serve as the "UN focal point for South-South cooperation." it should establish a "network among focal points of developing countries", in order to create "a multidimensional web of information for development."
The Office of the Chairman of the G-77 in New York should be upgraded into a "compact executive secretariat." To fund it, all G-77 members should contribute $5000 annually more if they are able to.
A special fund with a target of at least $ 10 million will be established to help implement the decisions of the Summit. Contributions to the funds are invited from G-77 members, developed countries, international organizations, corporations and foundations. The G-77 Chairman will report to the Group's ministerial meeting in the last quarter of 2000 on the terms of reference and operating modalities of the fund. The Summit also asked the committee of experts overseeing the Perez-Guerrero Trust Fund (PGTF) to allocate funds annually to support the implementation of the South Summit decisions.
The Chairman of the G-77 will coordinate the networking of research institutions from the South to improve the Group's analytical capacity, especially on issues related to globalization.
Groups of Experts, chosen to act in their individual capacities, will review and comment upon the agendas of major multilateral conferences, with a view to providing guidance to developing countries on the desirable outcome of such meetings.
A "monitoring, analysis, identification, management, follow up and evaluation mechanism" will be established to ensure the effectiveness of South-South cooperation projects and initiatives.
A high level conference on South-South cooperation will be held in 2003.
Work should be speedily completed on a "vulnerability index" to focus attention on the risks of globalization to the mainly agrarian economies of developing countries.
In addition to reaffirming long-standing recommendations on how developing countries should expand trade and investment ties among themselves, the Summit encouraged the "regular organization of a business forum and a South-South trade and investment fair." Welcoming the initiative of the G-77 Chamber of Commerce and Industry (CCCI) to establish a G-77 Trade Development Bank, with headquarters in Nairobi, the Summit called on the Chairman of the Group to convene a meeting this year to review the Chamber's operating modalities, mandates and performance. It also asked for a review of proposals first made in 1983 for a "South Bank," a developing country monetary fund, an economic and social development fund, and a commodity price stabilization fund.
The Summit took several initiatives to focus attention on the need for science and technology development. It decided to establish a G-77 science and technology award for individuals, a knowledge and technology trust fund (seed money to come voluntarily from governments, corporations and foundations), and a South-South network linking research and development institutions and other centers of excellence. The Summit urged action by developing countries to protect biotechnology developed indigenously over the millennia from being exploited by others. The benefits from patenting such technology should flow back to the original developers. Governments should promote venture capital funds to help grow science and knowledge based industries, it said.

NORTH-SOUTH RELATIONS
The Summit stressed the need to revive the "North-South dialogue." The renewed dialogue it said, should focus on external factors that in recent decades "have constrained the realization of the economic potential of the South." And "placed the developing countries at a clear disadvantage." It should seek to reverse the "weakening commitment of the developed countries" to multilateral-ism and development cooperation, and restore the focus on development in existing international relations.
With a view to reviving the dialogue, the Summit asked the G-77 Chairman to "convey promptly" the concerns and interests of the Group to developed countries, including the Group of 8 (major industrialized countries). The Summit asked the G-8 countries to keep the development objectives of the South in view when setting their macroeconomic policies. The new high-level Advisory Group (see above) was asked to make a "comprehensive assessment of the North-South dialogue."
Among the many North-South issues, the most prominent are centered on finance, trade and technology.
Finance: Three major aspects of international finance have been long-term concerns of the G-77.
One is the inadequacy of finance for development. Investment capital from developed countries goes to a handful of developing countries. Official development Assistance, always inadequate, has been shrinking at an alarming rate in the post Cold War period.
The second is the unsustainable indebtedness of many developing countries. Noting that the "vicious cycle of debt and underdevelopment has become even further entrenched," the Summit called for attention to the structural causes of the problem and expressed alarm that debt servicing has grown at a much greater rate than the debt itself. It called for "outright cancellation of unsustainable debt," especially of the least developed countries. Debt cancellation should not reduce ODA, the Summit cautioned. For middle income developing countries, it espoused quick debt reductions as a way of reducing resources for development.
The third major concern, improving international financial mechanisms, has expanded in the context of globalization to a call for the reform of the world's "financial architecture." The call has gained in urgency because liberalized economic policies have left developing countries disastrously vulnerable to volatile financial flows. The Summit said that, in addition to financing for development and the need to strengthen early warning of the responses to crises, reform should make the global financial system democratic and fair, increasing the effective participation of developing countries. With a view to improving developing country positions within the existing financial institutions, the Summit decided that prior to the twice yearly sessions of the International Monetary Fund and World Bank, there should be coordination meetings between the Chairmen of the G-77 and the Group of 24 in Washington.
he Summit viewed with alarm "recent unilateral moves by some developed countries to question the use of fiscal policy as a development of so-called harmful tax competition." Each state has the fundamental right to determine its own fiscal policies "and in this regard sovereignty of States must be respected," the Summit said. Nor should "legitimate struggle against money laundering" be "used as a pretext to discredit genuine offshore financial centres because of their fiscal policies and incentives."
On corruption, a domestic issue that some developed countries have raised as an international concern, the Summit focused on the repatriation of funds stolen from developing countries and stashed in foreign bank accounts. It applauded the recent decision of the Africa-Europe summit in Cairo to act on the matter, and said the United Nations should elaborate an international convention and submit it to the Millennium Assembly for adoption.
Trade: The Summit said the confidence of developing countries in the multilateral trading system has been shaken by the selective use of projectionist measures against their exports and the failure of developed countries to fulfill pledges of freer market access. Urging intensified efforts to review and reform the international trade regime to promote a fair, equitable and rules-based system, the Summit said that WTO membership should be made universal as soon as possible. Developed countries should consider the weakness and vulnerability of developing countries in the global economy and recognize their entitlement to special and differentiated treatment as a "fundamental principle of the multilateral trading system." It called for full implementation of the decisions to protect LDCs and net-food-importing developing countries from possible negative effects of trade related reforms, taken in 1994 at the founding meeting of the World Trade Organization (WTO).
Future multilateral trade negotiations, the Summit said, should be based on a "positive agenda" with "full consideration of the development dimension." Service sectors where developing countries have a comparative advantage should be liberalized on a priority basis, and consideration given to removing restrictions on the international movement of "natural persons." Multilateral negotiations on agriculture must take fully into account the special needs of developing countries, including food security and the need to maintain rural employment in their predominantly agrarian economies.
The Summit rejected "all attempts" to introduce extraneous "conditionalities for restricting market access or aid and technology flows to developing countries." While recognizing the intrinsic importance of environmental protection, labor standards, intellectual property protection, indigenous innovation, sound macroeconomic management and promotion of human rights, the Summit said they should be dealt with in other competent forums and organizations, not in the context of trade.
The Summit firmly rejected "the imposition of laws and regulations with extraterritorial impact and all other forms of coercive economic measures, including unilateral sanctions against developing countries."
Technology: The Summit said that the Prevailing modes of production and consumption in the developed countries "are unsustainable and should be changed because they "threaten the very survival of the planet." Solutions to serious environmental problems it said, should be "based on the recognition of the North's ecological debt and the principle of common but differentiated responsibilities of the developed and developing countries."
The language of the Summit documents on these issues is very broad. Developing countries should consider closing the "North-South gap in knowledge generation and application" as a matter of high priority. As information technology is "one of the most powerful development tools of our time", the "future of the South depends" on its inclusion in economic and social development programs. Global "knowledge partnerships" are needed to help developing countries use information technology.
The section of information technology refers to the need for developing countries to balance improved access to and benefits from global information network with the preservation of their "national and regional diversity of traditions, identities and cultures which may be affected by the Globalization process." In that context the Summit welcomed the declaration of the year 2001 as the Year of Dialogue among Civilizations, and stressed the importance of this initiative as a means of enhancing understanding of diverse cultures and promoting North-South and South-South cooperation in a globalized world.

UN ROLE
Describing the United Nations as the unique and universal forum necessary to strengthen international cooperation and promote development in the context of globalization, the Summit stressed the importance of the principles enshrined in the UN Charter. The "process of glboalization and interdependence must not be used to weaken or reinterpret" Charter principles, it said, for they "continue to be the foundation for friendly and peaceful relations among States and for the solution of disputes and conflicts by peaceful means."
The Summit specifically rejected any claim that there existed a right to "humanitarian intervention," saying it had no legal basis in the UN Charter or in the general principles of international law. It asked the Chairmen of the Group of 77 and the Non-Aligned Movement (NAM) to coordinate consideration of "the concept of humanitarian intervention", as contained in the UN Secretary General's 1999 Report on the Work of the Organization.
The guiding principles of humanitarian assistance, adopted by the General Assembly in resolution 46-182, are "valid, time-tested and must continue to be fully observed," the Summit said. Humanitarian assistance should be conducted with full respect for the "sovereignty, territorial integrity, and political independence of host countries, and should be initiated in response to a request or with the approval of these States."
Noting the increasing marginalization of the United Nations in decision-making on major international economic issues and the shift of such decision making to the Bretton Woods institutions, the Summit called for a reversal of policy. TO highlight the importance of the UN System in dealing with global-economic issues, development and international cooperation, it asked that the matter be discussed by the annual ministerial meetings of the G-77 in New York and by each of its Chapters (in Geneva, Nairobi, Paris, Rome, Vieana and Washington).
In addition to the cooperative work with the TCDC Unit of UNDP (see above), the Summit called for support from UNCTAD in international trade negotiations. It asked that in close cooperation with the Geneva Chapter of the G-77, UNCTAD "establish and pursue a program to elaborate trade policy tools that promote the development dimension within the multilateral trading system. "

ELEMENTS OF AN EVALUATION
A meaningful evaluation of the first South-Summit must be based on whether or not the actions it initiated have the potential to improve G-77 effectiveness. Does the Declaration provide the proper orientation to the G-77? Can the initiatives in the work program enable the Group to engage effectively with the external realities it wants to change? The following are some of the elements necessary for such an assessment.
Leadership: As noted above, a basic problem with the G-77 has been continuity and consistency of leadership. Because of that, implementation of agreed plans has been always inadequate. The Summit decision to create a "compact executive secretariat" for the Office of the Chairman could go a long way to strengthen the Group, but much will depend on the quality and composition of personnel. The new secretariat must be politically savy and capable of pushing a complex work program with an eye to existing and potential synergies within and outside the Group.
Strategy: The overall aim of the Summit is the economic and social development of G-77 member states, but it gave no indication how the grab bag of priorities in its final documents should be ordered. However, a number of its decisions facilitate the articulation of a strategy. This can be done within the overall framework of the existing plans and programs of the G-77 and the Non-Aligned Movement, which the Summitdescribed as constituting "a comprehensive philosophy and framework for action." The Summit asked that the G-77 Chairman "review the complementaries and harmonization" of existing mandates. It also provided for a new executive secretariat for the Chairman, and called for a supportive network of research institutions, as well as Groups of Experts to help analyze the work of major international conferences. In short, the Chairman has been given the mandate and the capacity to set strategy. The new review and assessment mechanism and the annual report on South-South cooperation to be issued by the G-77 Chairman provide the means for member states to stay appropriately engaged.
The operational modalities of both the G-77 and the Non-Aligned Movement were shaped during the Gold War, when there was minimal expectation of change from their various Declarations and Programs of Action. None of them contains firm indications of how their multiple appeals and demands for change in international realities are to be implemented. The South Summit documents are in that tradition. In the current period of global economic and political fluidities, this approach is obviously inadequate. The articulation of G-77 strategy will require acute analyses of the evolving scenario, including a review of groups in the South as well as the North that can be part of a global alliance to make globalization a humane and inclusive process.
Information: In formulating and implementing strategy, information is a key element. The major policy changes that the G-77 want implemented must be broadly understood and supported, both by its own constituencies and by allies in the North. For that to happen, policy formulation and advocacy must be based on excellent information and analysis. This means the G-77 must recognize the strategic value of information, both in terms of substantive research and analysis as well as in terms of public information.
The Summit reflected deep ambiguity on the subject of information. On the one hand, it stressed the importance of "information technology" and "knowledge generation." It underlined the urgency of developing countries gaining "access to global information networks." On the other hand, the Summit sought "to achieve a connection to contemporary international information and knowledge that does not entail sacrificing our national and regional cultures and identities." It is "necessary to pay special attention to the homogenizing tendencies that may threaten this diversity," the Summit said. The concepts and attitudes behind those cautionary words need to be thoroughly probed. Group identity and culture must be clearly understood to exclude those based on patterns of dominance and or exploitation of others on the basis of differences such as gender, caste, color, language or religion.
Corporate culture: The Summit did not raise the issue of unprecedented and growing concentration of corporate power over the creation and international dissemination of cultural and news products. This is a key issue, and one on which there are significant North-South differences, as well as congruence of interests in some areas. The differences are over long-standing developing country concerns at their inadequate and biased representation by international mass media oriented to the coverage of developed countries. A common North South concern is that corporate domination of mass media, especially television, has made information a commodity rather than a service. This has serious implication for democracies, which depend on an informed citizenry. Another common North-South concern is that corporate control of entertainment media subverts cultural quality and diversity. The paramount importance on maximizing profit works against the many social ends that entertainment media must serve in any society. A specific concern in this regard is that television programming guided entirely by the profit motive tends to be less diversified and to rely heavily on the prurient appeal of sea and violence to attract mass audiences and advertising.
The issue of violence: Most developing countries are no longer in danger of outright colonial conquest, but they remain vulnerable to violent subversion and economic coercion. Many have had to cope with civil wars supported from other countries, especially through illicit supplies of arms and ammunition. What ever the rationale of these conflicts, they retard the economic and social development of the embattled countries and regions, while benefiting those who feed the conflict covertly from a distance. This phenomenon has not been fully studied or incorporated into the joint strategies of developing countries.
Peace and development: The Summit made a perfunctory reference to the essential relationship of development to peace, but did not explore the critically important linkages involved. Several references to non-aligned texts, however, indicate recognition that a fuller consideration of political can security issues must shape G-77 strategy. Key issues in this regard are disarmament and the illicit trade in arms and drugs, which are often two sides of the coin of political subversion and conflict in developing countries.

CONCLUSION
The firms South Summit made a number of bold moves to increase the capacity and revive the effectiveness of the Group of 77 in support of economic and social development. Serious obstacles must be overcome in implementing the decisions of the Summit, but they have the potential for significant impact. The outcome will depend on the quality of implementation, especially the imagination and integrity of the new executive secretariat of the G-77, and the breadth of political support it receives from the Group.