THE GREAT SOCIALIST PEOPLE'S LIBYAN ARAB JAMAHIRIYA Peace, Security and Stability as Preconditions for Sustainable Development

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1 THE GREAT SOCIALIST PEOPLE'S LIBYAN ARAB JAMAHIRIYA Peace, Security and Stability as Preconditions for Sustainable Development By H.E. Mr. Abdurrahman M. Shalghem 1 In : Financing for Development: An OPEC Presence Publication : 2002 The full text article has pages. This international event takes place to ensure the realization of the aims and purposes of the United Nations Charter in the enhancement of international cooperation to seek solutions for all economic and social issues. It also embodies the principles outlined in the International Declaration of Human Rights, and implements the outcome of the major conferences and summit conferences held by the United Nations over the past few years, chief of which were the Millennium Summit and the United Nations Third Conference for the Least Developed Countries. All peoples of the world, particularly in the developing countries, have great expectations for this event, which will address national and international issues, as well as system-wide issues related to comprehensive financing for development, in the context of globalization and interdependence. Furthermore, this event will address the issue of development from the perspective of financing, and the mobilization of resources in order to implement fully and effectively the results reached internationally over the past few years. The mobilization of financial resources constitutes an integral part of the comprehensive efforts that must be undertaken to achieve growth, sustainable development and the eradication of poverty. Such efforts cannot be made except through the establishment of a conducive environment in which all members and groups truly participate in the setting of general policies and control their implementation. 1 Secretary of the General People's Committee for Foreign Liaison and International Cooperation

2 Each of the actors involved will undertake this task within the political and organizational framework which suits him, and in a manner which leads to the realization of freedom, peace, security, internal stability, respect for human rights, including the right to development, the rule of law, gender equality, the establishment of just and democratic societies, the enhancement of public finance through the introduction and execution of effective and equitable tax systems' the increase of public expenditures to develop infrastructure, capacity-building, and technical assistance. The Great Jamahiriya Declaration In this connection, the Great Jamahiriya has taken leading and unique measures in the world since 1977, the year it declared the establishment of the People's Authority. Under that declaration, the Libyan people took control of all organs of government, thus possessing authority and wealth. Through their exercise of authority, the Libyan people could draw the general policies of the State for all bodies and institutions, implement these policies and control them. They were also able to establish public and corporate enterprises, as well as partnerships, on an individual and family level. Concessional loans to set up small and medium enterprises were also made available in order to achieve economic, social, and human development for all members of the society. The mobilization of international resources for development constitutes a vital factor that complements national and international initiatives, through the flows of private international capital, and the increase of ODA, which, in turn, augments local resources. This assistance remains the biggest source of external financing for developing countries in Africa, the least developed countries, small island countries and landlocked developing countries. In this respect, Libya calls upon the developed countries to exert their utmost efforts to implement the internationally agreed targets of allocating 0.7% of their GNP to the ODA given to developing countries, and a rate of 0.15% to 0.20% of their GNP to the least developed countries. Libya also calls for the recipient and donor countries as well as international institutions to work together to render official financial assistance more effective. Multilateral development institutions, -global and regional - must, in their turn, perform their role in the service of providing the developmental

3 requirements for developing countries. They should contribute to the provision of adequate funds to countries that face poverty challenges and lack sufficient accessibility to capital markets. Aid restrictions and conditionalities Furthermore, these institutions should harmonize their operational procedures on the highest level in order to reduce the cost of transactions, and achieve greater flexibility in the process of providing and enhancing ODA. The needs and objectives of national development, within the framework adopted by the recipient country, should also be taken into account. Moreover, effort should be made to lift restrictions and conditionalities placed on assistance given to the least developed countries: there is a need to improve the capacities for finance management in the recipient countries and the contribution of these countries to the design of technical assistance programs, including the purchase process, and to enhance the effective use of local technical assistance resources. The alleviation of the burden of external debt plays a major role in the liberalization of resources that can be subsequently invested in activities to achieve sustainable growth and development. Libya calls, therefore, for the adoption of more national and international measures in this respect, including, if necessary, the cancellation of debts, and other arrangements, aiming at the alleviation of poverty in the recipient countries. We emphasize, at the same time, that both the IMF and the World Bank should take into consideration, when putting forward policy recommendations, including those for the alleviation of debt burdens, the changes that can occur in a country's ability to sustain debt after natural disasters, shocks in terms of trade, or conflicts. We also stress the importance of setting a number of clear principles for managing and resolving financial crises in a manner that guarantees an equitable sharing of burdens between the public and private sectors, and between debtors, creditors, and investors. Donor countries are called upon to take steps to ensure that the resources they provide to lessen debt burdens do not adversely affect the resources intended to be provided to developing countries from ODA. They should also work to expand and enhance the participation of these countries in all

4 the relevant international institutions, such as the IMF, the World Bank, WTO, the Bank of International Settlements, and the ad hoc groups that provide recommendations concerning policies that have international consequences. Revitalization of the UN System Libya attaches top priority to the revitalization of the UN system, as this is a basic matter for the enhancement of international cooperation for development, and for the establishment of a just and equitable world economic order. We stress also the necessity for enhancing all the major organs of the organization, including the General Assembly, so that they can to perform their mandated principal roles. The General Assembly should be respected as the parliamentary and representative organ entrusted with the enactment of major UN policies. The Economic and Social Council should also be revitalized to be capable of performing the role assigned to it by the UN Charter. Furthermore, Libya urges the acceleration of the reform process of the Security Council, and its methods of work, in a manner that achieves justice and democracy in the adoption of its resolutions. These resolutions should reflect the will of the majority of the international community members who wish to achieve justice and enhance international peace and security. The Council should not be exploited by turning it into a tool of coercion used against small and vulnerable states, and an organ through which unjust sanctions are imposed. Such sanctions have been a major cause for the increase of poverty and diseases, and have led to the deaths of millions of peoples in many parts of the world, including Libya in the past decade, and the current suffering of Iraq. Libya calls upon the international community to stand firmly in the face of the super powers that have constantly violated the UN Charter, and other rules of international law, by imposing unilateral coercive economic measures on some developing and least-developed countries, which considerably obstructed the efforts of the affected countries in the field of economic development and sustainable development. Libyan aid efforts The G.S.P. Libyan Arab Jamahiriya is a developing country that is very much in need of all its available resources to achieve economic, social, and

5 human development for its people. However, given its leading role in the African continent, and out of its sense of responsibility towards several friendly and sisterly countries, Libya has since the start of the Great El- Fateh Revolution in 1969 contributed generously to the support of developing countries in general, and the least developed countries in particular, through financial flows in the form of grants, as well as concessional and unconditioned loans. Most African countries and a number of countries in Asia and Latin America have benefited from these flows. Several development projects were established, including the building of schools and hospitals, as well as the undertaking of joint investment projects, bilaterally and multilaterally, in the financial, banking, agricultural, mining, fishing and maritime transportation fields. Libya has also contributed to the establishment of numerous petrol stations, power plants and airports, and the drilling of wells for drinking water. Further assistance was given to the building of roads and the establishment of health centers to combat HIV/AIDS and other endemic diseases. The maintenance of international peace and security, and the reinforcement of stability, constitute an essential condition for the achievement of economic development and sustainable development, and is an effective factor in the mobilization of local and international resources for the financing of development. This has prompted Libya to make intensified efforts to put an end to disputes among some states, particularly in Africa and Asia. These efforts were successful in bringing about peace and achieving national reconciliation in several countries, turning their national energies and capabilities to the realization of development and construction. Convinced that integration is one of the means that will lead to the eradication of underdevelopment and the achievement of comprehensive development, Libya has been honored to initiate the Sahilo- Saharian Community of States and the African Union declared at the Sirt Second Summit held in the Jamahiriya in the year In conclusion, we wish to express our sincerest thanks and appreciation for the commendable efforts of the Mexican government and people, who hosted and organized this important event.

6 Descriptors : Development Aid, Financing Programmes, Poverty Alleviation,, International Cooperation, Integration, Conflict Resolution. Contact : The OPEC Fund for International Development P.O.Box 995, A-1011 Vienna, Austria Tel. : (43-1) Fax : (43-1) Website :

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