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Confrence des Nations Unies sur l'Environnement et le Dveloppement

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AGENDA 21, CHAPTER 2



SECTION I.  SOCIAL AND ECONOMIC DIMENSIONS


INTERNATIONAL COOPERATION TO ACCELERATE SUSTAINABLE
DEVELOPMENT IN DEVELOPING COUNTRIES 
AND RELATED DOMESTIC POLICIES






NOTE:	This is a final, advanced version of a chapter of Agenda 21, as 
adopted by the Plenary in Rio de Janeiro, on June 14, 1992.  
This document will be further edited, translated into the 
official languages, and published by the United Nations for the 
General Assembly this autumn.





........../2



INTRODUCTION


2.1.  In order to meet the challenges of environment and development, 
States decided to establish a new global partnership.  This partnership 
commits all States to engage in a continuous and constructive dialogue, 
inspired by the need to achieve a more efficient and equitable world 
economy, keeping in view the increasing interdependence of the community of 
nations, and that sustainable development should become a priority item on 
the agenda of the international community.  It is recognized that, for the 
success of this new partnership, it is important to overcome confrontation 
and to foster a climate of genuine cooperation and solidarity.  It is 
equally important to strengthen national and international policies and 
multinational cooperation to adapt to the new realities.

2.2.  Economic policies of individual countries and international economic 
relations both have great relevance to sustainable development.  The 
reactivation and acceleration of development requires both a dynamic and a 
supportive international economic environment and determined policies at 
the national level.  It will be frustrated in the absence of either of 
these requirements.  A supportive external economic environment is crucial.  
The development process will not gather momentum if the global economy 
lacks dynamism and stability and is beset with uncertainties.  Neither will 
it gather momentum if the developing countries are weighted down by 
external indebtedness, if development finance is inadequate, if barriers 
restrict access to markets and if commodity prices and the terms of trade 
of developing countries remain depressed.  The record of the 1980s was 
essentially negative on each of these counts and needs to be reversed.  The 
policies and measures needed to create an international environment that is 
strongly supportive of national development efforts are thus vital.  
International cooperation in this area should be designed to complement and 
support - not to diminish or subsume - sound domestic economic policies, in 
both developed and developing countries, if global progress towards 
sustainable development is to be achieved.

2.3.  The international economy should provide a supportive international 
climate for achieving environment and development goals by:

	(a)	Promoting sustainable development through trade liberalization;

	(b)	Making trade and environment mutually supportive;

	(c)	Providing adequate financial resources to developing countries 
and dealing with international debt;

	(d)	Encouraging macroeconomic policies conducive to environment and 
development.

2.4.  Governments recognize that there is a new global effort to relate the 
elements of the international economic system and mankind's need for a safe 
and stable natural environment.  Therefore, it is the intent of Governments 
that consensus-building at the intersection of the environmental and trade 
and development areas will be ongoing in existing international forums, as 
well as in the domestic policy of each country.




PROGRAMME AREAS

A.  Promoting sustainable development through trade

Basis for action

2.5.  An open, equitable, secure, non-discriminatory and predictable 
multilateral trading system that is consistent with the goals of 
sustainable development and leads to the optimal distribution of global 
production in accordance with comparative advantage is of benefit to all 
trading partners.  Moreover, improved market access for developing 
countries' exports in conjunction with sound macroeconomic and 
environmental policies would have a positive environmental impact and 
therefore make an important contribution towards sustainable development.

2.6.  Experience has shown that sustainable development requires a 
commitment to sound economic policies and management, an effective and 
predictable public administration, the integration of environmental 
concerns into decision-making and progress towards democratic government, 
in the light of country-specific conditions, which allows for full 
participation of all parties concerned.  These attributes are essential for 
the fulfilment of the policy directions and objectives listed below.

2.7.  The commodity sector dominates the economies of many developing 
countries in terms of production, employment and export earnings.  An 
important feature of the world commodity economy in the 1980s was the 
prevalence of very low and declining real prices for most commodities in 
international markets and a resulting substantial contraction in commodity 
export earnings for many producing countries.  The ability of those 
countries to mobilize, through international trade, the resources needed to 
finance investments required for sustainable development may be impaired by 
this development and by tariff and non-tariff impediments, including tariff 
escalation, limiting their access to export markets.  The removal of 
existing distortions in international trade is essential. In particular, 
the achievement of this objective requires that there be substantial and 
progressive reduction in the support and protection of agriculture - 
covering internal regimes, market access and export subsidies - as well as 
of industry and other sectors, in order to avoid inflicting large losses on 
the more efficient producers, especially in developing countries.  Thus, in
agriculture, industry and other sectors, there is scope for initiatives 
aimed at trade liberalization and at policies to make production more 
responsive to environment and development needs.  Trade liberalization 
should therefore be pursued on a global basis across economic sectors so as 
to contribute to sustainable development.

2.8.  The international trading environment has been affected by a number 
of developments that have created new challenges and opportunities and have 
made multilateral economic cooperation of even greater importance.  World 
trade has continued to grow faster than world output in recent years.  
However, the expansion of world trade has been unevenly spread, and only a 
limited number of developing countries have been capable of achieving 
appreciable growth in their exports.  Protectionist pressures and 
unilateral policy actions continue to endanger the functioning of an open 
multilateral trading system, affecting particularly the export interests of 
developing countries. Economic integration processes have intensified in 
recent years and should impart dynamism to global trade and enhance the 
trade and development possibilities for developing countries.  In recent 
years, a growing number of these countries have adopted courageous policy 
reforms involving ambitious autonomous trade liberalization, while 
far-reaching reforms and profound restructuring processes are taking place 
in Central and Eastern European countries, paving the way for their 
integration into the world economy and the international trading system.  
Increased attention is being devoted to enhancing the role of enterprises 
and promoting competitive markets through adoption of competitive policies.  
The GSP has proved to be a useful trade policy instrument, although its 
objectives will have to be fulfilled, and trade facilitation strategies 
relating to electronic data interchange (EDI) have been effective in 
improving the trading efficiency of the public and private sectors.  The 
interactions between environment policies and trade issues are manifold and 
have not yet been fully assessed.  An early, balanced, comprehensive and 
successful outcome of the Uruguay Round of multilateral trade negotiations 
would bring about further liberalization and expansion of world trade, 
enhance the trade and development possibilities of developing countries and 
provide greater security and predictability to the international trading 
system.

Objectives

2.9  In the years ahead, and taking into account the results of the Uruguay 
Round of multilateral trade negotiations, Governments should continue to 
strive to meet the following objectives:

	(a)	To promote an open, non-discriminatory and equitable 
multilateral trading system that will enable all countries - in particular, 
the developing countries - to improve their economic structures and improve 
the standard of living of their populations through sustained economic 
development;

	(b)	To improve access to markets for exports of developing 
countries;

	(c)	To improve the functioning of commodity markets and achieve 
sound, compatible and consistent commodity policies at national and 
international levels with a view to optimizing the contribution of the 
commodity sector to sustainable development, taking into account 
environmental considerations;

	(d)	To promote and support policies, domestic and international, 
that make economic growth and environmental protection mutually supportive.

Activities

(a)	International and regional cooperation and coordination

Promoting an international trading system that takes account of the 
needs of developing countries

2.10.  Accordingly, the international community should:

	(a)	Halt and reverse protectionism in order to bring about further 
liberalization and expansion of world trade, to the benefit of all 
countries, in particular the developing countries;

	(b)	Provide for an equitable, secure, non-discriminatory and 
predictable international trading system;

	(c)	Facilitate, in a timely way, the integration of all countries 
into the world economy and the international trading system;

	(d)	Ensure that environment and trade policies are mutually 
supportive, with a view to achieving sustainable development;

	(e)	Strengthen the international trade policies system through an 
early, balanced, comprehensive and successful outcome of the Uruguay Round 
of multilateral trade negotiations.

2.11.  The international community should aim at finding ways and means of 
achieving a better functioning and enhanced transparency of commodity 
markets, greater diversification of the commodity sector in developing 
economies within a macroeconomic framework that takes into consideration a 
country's economic structure, resource endowments and market opportunities, 
and better management of natural resources that takes into account the 
necessities of sustainable development.

2.12.  Therefore, all countries should implement previous commitments to 
halt and reverse protectionism and further expand market access, 
particularly in areas of interest to developing countries.  This 
improvement of market access will be facilitated by appropriate structural 
adjustment in developed countries.  Developing countries should continue 
the trade-policy reforms and structural adjustment they have undertaken.  
It is thus urgent to achieve an improvement in market access conditions for 
commodities, notably through the progressive removal of barriers that 
restrict imports, particularly from developing countries, of commodity 
products in primary and processed forms, as well as the substantial and 
progressive reduction of types of support that induce uncompetitive 
production, such as production and export subsidies.

(b)	Management related activities

Developing domestic policies that maximize the benefits of trade 
liberalization for sustainable development

2.13.  For developing countries to benefit from the liberalization of 
trading systems, they should implement the following policies, as 
appropriate:

	(a)	Create a domestic environment supportive of an optimal balance 
between production for the domestic and export markets and remove biases 
against exports and discourage inefficient import-substitution;

	(b)	Promote the policy framework and the infrastructure required to 
improve the efficiency of export and import trade as well as the 
functioning of domestic markets.

2.14.  The following policies should be adopted by developing countries 
with respect to commodities consistent with market efficiency:

	(a)	Expand processing, distribution and improve marketing practices 
and the competitiveness of the commodity sector;

	(b)	Diversify in order to reduce dependence on commodity exports;

	(c)	Reflect efficient and sustainable use of factors of production 
in the formation of commodity prices, including the reflection of 
environmental, social and resources costs.

(c)	Data and information

	Encouraging data collection and research

2.15.  GATT, UNCTAD and other relevant institutions should continue to 
collect appropriate trade data and information.  The Secretary-General of 
the United Nations is requested to strengthen the Trade Control Measures 
Information System managed by UNCTAD.

Improving international cooperation in commodity trade and the 
diversification of the sector

2.16.  With regard to commodity trade, Governments should, directly or 
through appropriate international organizations, where appropriate:

	(a)	Seek optimal functioning of commodity markets, inter alia, 
through improved market transparency involving exchanges of views and 
information on investment plans, prospects and markets for individual 
commodities.  Substantive negotiations between producers and consumers 
should be pursued with a view to achieving viable and more efficient 
international agreements that take into account market trends, or 
arrangements, as well as study groups.  In this regard, particular 
attention should be paid to the agreements on cocoa, coffee, sugar and 
tropical timber.  The importance of international commodity agreements and 
arrangements is underlined. Occupational health and safety matters, 
technology transfer and services associated with the production, marketing 
and promotion of commodities, as well as environmental considerations, 
should be taken into account;

	(b)	Continue to apply compensation mechanisms for shortfalls in 
commodity export earnings of developing countries in order to encourage 
diversification efforts;

	(c)	Provide assistance to developing countries upon request in the 
design and implementation of commodity policies and the gathering and 
utilization of information on commodity markets;

	(d)	Support the efforts of developing countries to promote the 
policy framework and infrastructure required to improve the efficiency of 
export and import trade;

	(e)	Support the diversification initiatives of the developing 
countries at the national, regional and international levels.

Means of implementation

(a)	Financing and cost evaluation

2.17.  The Conference secretariat has estimated the average total annual 
cost (1993-2000) of implementing the activities in this programme area to 
be about $8.8 billion from the international community on grant or 
concessional terms.  These are indicative and order of magnitude estimates 
only and have not been reviewed by governments.  Actual costs and financial 
terms, including any that are non-concessional, will depend upon, inter 
alia, the specific strategies and programmes governments decide upon for 
implementation.

(b)	Capacity-building

2.18.  The above-mentioned technical cooperation activities aim at 
strengthening national capabilities for design and implementation of 
commodity policy, use and management of national resources and the 
gathering and utilization of information on commodity markets.



B.  Making trade and environment mutually supportive

Basis for action

2.19.  Environment and trade policies should be mutually supportive.  An 
open, multilateral trading system makes possible a more efficient 
allocation and use of resources and thereby contributes to an increase in 
production and incomes and to lessening demands on the environment.  It 
thus provides additional resources needed for economic growth and 
development and improved environmental protection.  A sound environment, on 
the other hand, provides the ecological and other resources needed to 
sustain growth and underpin a continuing expansion of trade.  An open, 
multilateral trading system, supported by the adoption of sound 
environmental policies, would have a positive impact on the environment and 
contribute to sustainable development.

2.20. International cooperation in the environmental field is growing, and 
in a number of cases trade provisions in multilateral environment 
agreements have played a role in tackling global environmental challenges.  
Trade measures have thus been used in certain specific instances, where 
considered necessary, to enhance the effectiveness of environmental 
regulations for the protection of the environment.  Such regulations should 
address the root causes of environmental degradation so as not to result in 
unjustified restrictions on trade.  The challenge is to ensure that trade 
and environment policies are consistent and reinforce the process of 
sustainable development.  However, account should be taken of the fact that 
environmental standards valid for developed countries may have unwarranted 
social and economic costs in developing countries.

Objectives

2.21.  Governments should strive to meet the following objectives, through 
relevant multilateral forums, including GATT, UNCTAD and other 
international organizations:

	(a)	To make international trade and environment policies mutually 
supportive in favour of sustainable development;

	(b)	To clarify the role of GATT, UNCTAD and other international 
organizations in dealing with trade and environment-related issues, 
including, where relevant, conciliation procedure and dispute settlement;

	(c)	To encourage international productivity and competitiveness and 
encourage a constructive role on the part of industry in dealing with 
environment and development issues.

Activities

Developing an environment/trade and development agenda

2.22.  Governments should encourage GATT, UNCTAD and other relevant 
international and regional economic institutions to examine, in accordance 
with their respective mandates and competences, the following propositions 
and principles:

	(a)	Elaborate adequate studies for the better understanding of the 
relationship between trade and environment for the promotion of sustainable 
development;

	(b)	Promote a dialogue between trade, development and environment 
communities;

	(c)	In those cases when trade measures related to environment are 
used, ensure transparency and compatibility with international obligations;

	(d)	Deal with the root causes of environment and development 
problems in a manner that avoids the adoption of environmental measures 
resulting in unjustified restrictions on trade;


	(e)	Seek to avoid the use of trade restrictions or distortions as a 
means to offset differences in cost arising from differences in 
environmental standards and regulations, since their application could lead 
to trade distortions and increase protectionist tendencies;

	(f)	Ensure that environment-related regulations or standards, 
including those related to health and safety standards, do not constitute a 
means of arbitrary or unjustifiable discrimination or a disguised 
restriction on trade;

	(g)	Ensure that special factors affecting environment and trade 
policies in the developing countries are borne in mind in the application 
of environmental standards, as well as in the use of any trade measures.  
It is worth noting that standards that are valid in the most advanced 
countries may be inappropriate and of unwarranted social cost for the 
developing countries;

	(h)	Encourage participation of developing countries in multilateral 
agreements through such mechanisms as special transitional rules;

	(i)	Avoid unilateral actions to deal with environmental challenges 
outside the jurisdiction of the importing country.  Environmental measures 
addressing transborder or global environmental problems should, as far as 
possible, be based on an international consensus.  Domestic measures 
targeted to achieve certain environmental objectives may need trade 
measures to render them effective.  Should trade policy measures be found 
necessary for the enforcement of environmental policies, certain principles 
and rules should apply.  These could include, inter alia, the principle of 
non-discrimination; the principle that the trade measure chosen should be 
the least trade-restrictive necessary to achieve the objectives; an 
obligation to ensure transparency in the use of trade measures related to 
the environment and to provide adequate notification of national 
regulations; and the need to give consideration to the special conditions 
and developmental requirements of developing countries as they move towards 
internationally agreed environmental objectives;

	(j)	Develop more precision, where necessary, and clarify the 
relationship between GATT provisions and some of the multilateral measures 
adopted in the environment area;

	(k)	Ensure public input in the formation, negotiation and 
implementation of trade policies as a means of fostering increased 
transparency in the light of country-specific conditions;

	(l)	Ensure that environmental policies provide the appropriate 
legal and institutional framework to respond to new needs for the 
protection of the environment that may result from changes in production 
and trade specialization.


            C.  Providing adequate financial resources to developing
                countries

Basis for action

2.23.  Investment is critical to the ability of developing countries to 
achieve needed economic growth to improve the welfare of their populations 
and to meet their basic needs in a sustainable manner, all without 
deteriorating or depleting the resource base that underpins development.  
Sustainable development requires increased investment, for which domestic 
and external financial resources are needed.  Foreign private investment 
and the return of flight capital, which depend on a healthy investment 
climate, are an important source of financial resources.  Many developing 
countries have experienced a decade-long situation of negative net transfer 
of financial resources, during which their financial receipts were exceeded 
by payments they had to make, in particular for debt-servicing.  As a 
result, domestically mobilized resources had to be transferred abroad 
instead of being invested locally in order to promote sustainable economic 
development.

2.24.  For many developing countries, the reactivation of development will 
not take place without an early and durable solution to the problems of 
external indebtedness, taking into account the fact that, for many 
developing countries, external debt burdens are a significant problem.  The 
burden of debt-service payments on those countries has imposed severe 
constraints on their ability to accelerate growth and eradicate poverty and 
has led to a contraction in imports, investment and consumption.  External 
indebtedness has emerged as a main factor in the economic stalemate in the 
developing countries. Continued vigorous implementation of the evolving 
international debt strategy is aimed at restoring debtor countries' 
external financial viability, and the resumption of their growth and 
development would assist in achieving sustainable growth and development.  
In this context, additional financial resources in favour of developing 
countries and the efficient utilization of such resources are essential.

Objectives

2.25.  The specific requirements for the implementation of the sectoral and 
cross-sectoral programmes included in Agenda 21 are dealt with in the 
relevant programme areas and in Chapter 33 entitled "Financial Resources 
and Mechanisms".

Activities

(a)	Meeting international targets of official development assistance 
funding

2.26.  As discussed in Chapter 33, new and additional resources should be 
provided to support Agenda 21 programmes.

(b)	Addressing the debt issue
2.27.  In regard to the external debt incurred with commercial banks, the 
progress being made under the strengthened debt strategy is recognized and 
a more rapid implementation of this strategy is encouraged.  Some countries 
have already benefited from the combination of sound adjustment policies 
and commercial bank debt reduction or equivalent measures.  The 
international community encourages:

	(a)	Other countries with heavy debts to banks to negotiate similar 
commercial bank debt reduction with their creditors;

	(b)	The parties to such a negotiation to take due account of both 
the medium-term debt reduction and new money requirements of the debtor 
country;

	(c)	Multilateral institutions actively engaged in the strengthened 
international debt strategy to continue to support debt-reduction packages 
related to commercial bank debt with a view to ensuring that the magnitude 
of such financing is consonant with the evolving debt strategy;

	(d)	Creditor banks to participate in debt and debt-service 
reduction;

	(e)	Strengthened policies to attract direct investment, avoid 
unsustainable levels of debt and foster the return of flight capital.

2.28.  With regard to debt owed to official bilateral creditors, the recent 
measures taken by the Paris Club with regard to more generous terms of 
relief to the poorest most indebted countries are welcomed.  Ongoing 
efforts to implement these "Trinidad terms" measures in a manner 
commensurate with the payments capacity of those countries and in a way 
that gives additional support to their economic reform efforts are 
welcomed.  The substantial bilateral debt reduction undertaken by some 
creditor countries is also welcomed, and others which are in a position to 
do so are encouraged to take similar action.

2.29.  The actions of low-income countries with substantial debt burdens 
which continue, at great cost, to service their debt and safeguard their 
creditworthiness are commended. Particular attention should be paid to 
their resource needs.  Other debt-distressed developing countries which are 
making great efforts to continue to service their debt and meet their 
external financial obligations also deserve due attention.

2.30.  In connection with multilateral debt, it is urged that serious 
attention be given to continuing to work towards growth-oriented solutions 
to the problem of developing countries with serious debt-servicing 
problems, including those whose debt is mainly to official creditors or to 
multilateral financial institutions.  Particularly in the case of 
low-income countries in the process of economic reform, the support of the 
multilateral financial institutions in the form of new disbursements and 
the use of their concessional funds is welcomed.  The use of support groups 
should be continued in providing resources to clear arrears of countries 
embarking upon vigorous economic reform programmes supported by IMF and the 
World Bank.  Measures by the multilateral financial institutions such as 
the refinancing of interest on non-concessional loans with IDA reflows - 
"fifth dimension" - are noted with appreciation.

Means of implementation

	Financing and cost evaluation


2.31.  See Chapter 33.


           D.  Encouraging economic policies conducive to sustainable
               development

Basis for action

2.32.  The unfavourable external environment facing developing countries 
makes domestic resource mobilization and efficient allocation and 
utilization of domestically mobilized resources all the more important for 
the promotion of sustainable development. In a number of countries, 
policies are necessary to correct misdirected public spending, large budget 
deficits and other macroeconomic imbalances, restrictive policies and 
distortions in the areas of exchange rates, investment and finance, and 
obstacles to entrepreneurship.  In developed countries, continuing policy 
reform and adjustment, including appropriate savings rates, would help 
generate resources to support the transition to sustainable development 
both domestically and in developing countries.


2.33.  Good management that fosters the association of effective, 
efficient, honest, equitable and accountable public administration with 
individual rights and opportunities is an essential element for 
sustainable, broadly based development and sound economic performance at 
all development levels.  All countries should increase their efforts to 
eradicate mismanagement of public and private affairs, including 
corruption, taking into account the factors responsible for, and agents 
involved in, this phenomenon.  

2.34.  Many indebted developing countries are undergoing structural 
adjustment programmes relating to debt rescheduling or new loans.  While 
such programmes are necessary for improving the balance in fiscal budgets 
and balance-of-payments accounts, in some cases they have resulted in 
adverse social and environmental effects, such as cuts in allocations for 
health care, education and environmental protection.  It is important to 
ensure that structural adjustment programmes do not have negative impacts 
on the environment and social development so that such programmes can be 
more in line with the objectives of sustainable development.

Objectives

2.35.  It is necessary to establish, in the light of the country-specific 
conditions, economic policy reforms that promote the efficient planning and 
utilization of resources for sustainable development through sound economic 
and social policies, foster entrepreneurship and the incorporation of 
social and environmental costs in resource pricing, and remove sources of 
distortion in the area of trade and investment.

Activities

(a)	Management-related activities

	Promoting sound economic policies
2.36.  The industrialized countries and other countries in a position to do 
so should strengthen their efforts:

	(a)	To encourage a stable and predictable international economic 
environment, particularly with regard to monetary stability, real rates of 
interest and fluctuations in key exchange rates;

	(b)	To stimulate savings and reduce fiscal deficits;

	(c)	To ensure that the processes of policy coordination take into 
account the interests and concerns of the developing countries, including 
the need to promote positive action to support the efforts of the least 
developed countries to halt their marginalization in the world economy;

	(d)	To undertake appropriate national macroeconomic and structural 
policies aimed at promoting non-inflationary growth, narrowing their major 
external imbalances and increasing the adjustment capacity of their 
economies.

2.37.  Developing countries should consider strengthening their efforts to 
implement sound economic policies:

	(a)	That maintain the monetary and fiscal discipline required to 
promote price stability and external balance;

	(b)	That result in realistic exchange rates;

	(c)	That raise domestic savings and investment, as well as improve 
returns to investment.

2.38.  More specifically, all countries should develop policies that 
improve efficiency in the allocation of resources and take full advantage 
of the opportunities offered by the changing global economic environment.  
In particular, wherever appropriate, and taking into account national 
strategies and objectives, countries should:

	(a)	Remove the barriers to progress caused by bureaucratic 
inefficiencies, administrative strains, unnecessary controls and the 
neglect of market conditions;

	(b)	Promote transparency in administration and decision-making;

	(c)	Encourage the private sector and foster entrepreneurship by 
improving institutional facilities for enterprise creation and market 
entry.  The essential objective would be to simplify or remove the 
restrictions, regulations and formalities that make it more complicated, 
costly and time-consuming to set up and operate enterprises in many 
developing countries;

	(d)	Promote and support the investment and infrastructure required 
for sustainable economic growth and diversification on an environmentally 
sound and sustainable basis;

	(e)	Provide scope for appropriate economic instruments, including 
market mechanisms, in harmony with the objectives of sustainable 
development and fulfilment of basic needs;


	(f)	Promote the operation of effective tax systems and financial 
sectors;

	(g)	Provide opportunities for small-scale enterprises, both farm 
and non-farm, and for the indigenous population and local communities to 
contribute fully to the attainment of sustainable development;

	(h)	Remove biases against exports and in favour of inefficient 
import substitution and establish policies that allow them to benefit fully 
from the flows of foreign investment, within the framework of national, 
social, economic and developmental goals;

	(i)	Promote the creation of a domestic economic environment 
supportive of an optimal balance between production for the domestic and 
export markets.

(b)	International and regional cooperation and coordination

2.39.  Governments of developed countries and those of other countries in a 
position to do so should, directly or through appropriate international and 
regional organizations and international lending institutions, enhance 
their efforts to provide developing countries with increased technical 
assistance for the following:

	(a)	Capacity-building in the nation's design and implementation of 
economic policies, upon request;

	(b)	Design and operation of efficient tax systems, accounting 
systems and financial sectors;

	(c)	Promotion of entrepreneurship.

2.40.  International financial and development institutions should further 
review their policies and programmes in the light of the objective of 
sustainable development.

2.41.  Stronger economic cooperation among developing countries has long 
been accepted as an important component of efforts to promote economic 
growth and technological capabilities and to accelerate development in the 
developing world.  Therefore, the efforts of the developing countries to 
promote economic cooperation among themselves should be enhanced and 
continue to be supported by the international community.

Means of implementation

(a)	Financing and cost evaluation

2.42.  The Conference secretariat has estimated the average total annual 
cost (1993-2000) of implementing the activities in this programme area to 
be about $50 million from the international community on grant or 
concessional terms.  These are indicative and order of magnitude estimates 
only and have not been reviewed by governments.  Actual costs and financial 
terms, including any that are non-concessional, will depend upon, inter 
alia, the specific strategies and programmes governments decide upon for 
implementation.

(b)	Capacity-building

2.43.  The above-mentioned policy changes in developing countries involve 
substantial national efforts for capacity-building in the areas of public 
administration, central banking, tax administration, savings institutions 
and financial markets.

2.44.  Particular efforts in the implementation of the four programme areas 
identified in this chapter are warranted in view of the especially acute 
environmental and developmental problems of the least developed countries.
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