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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM (80)302 final
Brussels .29th May1980
REACTIVATION OFTHE NORTH-SOUTH DIALOGUE
(Communication from theCommission totheEuropean Council )
h-i : „ /A,. -t*l%X?Mti'^\|3
Γ Ν·Ν
COM (80)302 final

Reactivation ofthe
North–SouthDialogue
Worseninginternational tensionsandthefurtherdeterioration oftheworld
economyfollowingtheseoond"oilcrisis"makeitevenmoreimportant,
indeedessential,thatfresheffortsshouldbemadetowardsconsultation
andcooperation betweenNorthandSouth.
TheCommunitywillhaveacentralparttoplayinanyreactivation ofthe
dialogue;itsownpositioninthenetworkofinternational interdependence
makesitsinterestclear,anditsspecialeconomicandpolitical
relationship withanumberofdevelopingcountriesdeterminesits
responsibilities *
Whatistobegainedbyfurtherdialogue
ThecollectiveaimswhichtheCommunityshouldsetforareactivated
dialogueareofthreekinds:
i.Counteringthethreatofdeepandwidespreadrecessionfacingthe
economiesofbothNorthandSouth:thereareclearriskstothe
international economicsystemandworldpeaceitselfincurrent
developments ;theserisksoouldbeoomeaggravatedwiththe
strangulation ofthepoorestdevelopingcountriesandcessation
ofthegrowthprocessinmiddle-income developingcountries.
ii.Easingworldhunger:insecurityoffoodsuppliesatworldlevel
isbeyonddoubttheLeasttolerableofallformsofuncertainty ,
anditisanabsolutemoralimperativefortheinternational
oommunitytoreduoethisinsecurity. >
iii.Organizingthetransitiontoalessoil-dependent worldeconomy:
theforeseeable imbalancebetweentheoilsuppliesandpotential '
demandoverthenextfewyearsplaoesaseriousquestionmark
overthechanoesofcontinuingthegrowthanddevelopment process.
Theseoond"oilorisis"andthecontinuingtremorsithassetup
showthatdisorderlyescalationofoilpricesanduncertainties
ofsupplywillremainaproblemuntilsomewayisfoundof
establishing comprehensive cooperation betweenenergyproducers
andconsumers.
Thesethenarethecollectiveinterestswhichthereactivateddialogue
mustdealwith.Nosinglecountryorgroupofcountrieshasthemeansto
attainevenoneoftheseobjectives.TheCommunityhasmadeprogressin
establishing contractualrelationswithgroupsofdevelopingcountries
(Lom6Convention,agreementswithsouthernMediterranean developingcountries)
andregionalgroupings(ASEAN,AndeanPact).Dialogueatregionallevelis
nowanessentialpartoftheCommunity'spolicyfortheNorth-South Dialogue.
Butabroaderinternational effortisstillneeded;clearly,theremustbeafirm
commitmentfromtheindustrialized countriesasawhole,andatthesametimea
paralleleffortmustbemadebythedevelopingcountries,particularly the
oilproducers,whonowhavethefinancialcapacitywhiohsuchanundertaking
requires,andbythestate-trading countries.-

Itisnowacknowledged thatarenascenceofNorth-South cooperationis
necessary;butagreatdealiBatstakeandtheproblemsinvolvedare
immense.Thegreatestattentionmustthereforebegiventoany
developments promotingsuchcooperation :theBrandtreport,which
bearsthestampofapprovalofeminentrepresentatives ofbothNorth
andSouthandcallsforthoughtandactiononthepartofboth
industrialized anddevelopingcountries;theattempttolaunchglobal
negotations oninternational cooperation underUNauspices *
TheBrandtReport
TheBrandtCommissionputsforwardahighlyambitiouslistofobjectives
fortheensuingdecadeandbeyond,buthasnevertheless selecteda
numberofprioritytasksenshrinedinanemergencyfive-year(198O-85)
programmecoveringenergy,food,transferofresourcesandastarton
reformsoftheinternational economicsystem.
TheEuropeanCommunitymuBtthereforehelppromotetheemergency
programme,whichiswellcalculatedtodealwiththemosturgentproblems
ofthecurrentsituationandthetasksimmediatelybeforeus.The
BrandtReportisalsoavitalinstrumentformobilizingpublicopinion.
TheUNglobalne/rotiations
ThedevelopingcountriestooktheinitiativeatHavana–amovewelcomed
"bytheCommunity-ofproposingthatglobalnegotiations beheldunder
UHauspices,withenergyincludedontheagenda.
Asregardsenergy,thaCommunitymustendeavourtogetacooperation
processsetup,plusastatementofprinciplesandrulesaimedat
aehiavingadynamicenergysupplyanddemandbalanceatworldand
jnsgionallevels,andgreatersecurityandpredictability .Thetalks
11coverallformsofenergy.
Coaieninitywillalsohavetoendeavourtoinvolvetheoil-producing
6@u*iiri8Sinajointeffortwiththeindustrialized countriestohelp
developingcountriesrealizetheirenergypotentialand
reducetfaeirdependence onimportedoil.Thisobviouslymeansthat
theCofflfflonitymustholditselfopentodiscussionoftheproblems
directlyeoncamingthaoil–exportingcountries.

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,Thefutureglobalnegotiations oouldthereforehaveaclearimport,although
^thereisatwofolddanger-inherentininternational forums-of
fragmentation oftheworkwithoutanyconoernastoselectivityorcohesion
orofthenegotiations followingtheirowncourse,atexpertlevel,without
'aregularpolitioalimpetus "beinggiveninordertoovercomepossible
blockages,sketohoutsolutionsorrefocuspriorities *
Furthermore,importantastheymaybe,theinitiatives mentionedhereare
hardlylikelytobearfruitintheshortterm:theBrandtreports'
^emergenoyprogrammelookstotheperiod1980-85,andtheglobalnegotiations
1couldprovidetangibleresultsin1982attheearliest.However,the
?soaleofthesecondoilorisismakescertainactionsonthepartofthe
international oommunityfarmoreurgent,namelystepstoimprovetheprocess
ofrecyclingfundsandfinanoingdevelopment.
ApolitioalorientationfortheCommunityfortherelaunching ofthe
North–SouthDialogue
'Inthissituation,theCommunitymustactintwocomplementary directions
atitshighestpolitioallevel:itmustpromotetheadoptionofimmediate
measuresinthefinanoialfieldandexpressclearlythepolitical
importanoeitattachestotheNorth–SouthDialogue.
1.Ifitisnottoloseallcredibility,relaunchedNorth-Southoooperation
oustimmediatelytackle,themostpracticalandurgentproblemsofthe
developingoountriesthatarethreatenedwithstrangulation asaresultof
thenewincreaseinoilprices.Collectiveaction,whichmust
involvetheoil–producingoountries,shouldmovetowardsextendingthe
possibilitieifor actionoftheexistinginternationalinstitutions
(IMP-,WorldBankandregionaldevelopmentbanks)andimprovetheir
effectiveness inthedirectiontraoedoutbycertainproposalsinthe
Brandtreport.
Thiswouldinvolveinparticular:
(i)substantially increasingofficialdevelopmentassistancetothe
poorestcountriesintheformofaidthatcanberapidlydisbursed
throughbilateralormultilateral channels.Inthisrespect,the
||replenishmentofIDAresourcesisamatterofurgentnecessity;
î*(ii)strengthening thepositionoftheinternationalfinanoial
institutions (WorldBank,IMP,regionaldevelopmentbanks)andof
otheroffioialmachineryintherecyolingprocess.Thismeans
inparticular maV-ingiteasiertohaverecoursetothevarious
•'IMPfacilitiesattheappropriatemomentandimplementingrapidly
IthenewformulaofWorldBankstructuraladjustmentloans.To
*enabletheBanktomeetitsincreasedresponsibilities ,itis
essentialthatthedoublingofitscapitalshouldbeundertaken
asrapidlyaspossible.Itwillalsobenecessarytoexaminein
thisoontexttheestablishment ofintereBt-ratesubsidization
machinerywithintheframeworkoftheaboveinstitutions ;
(iii)ensuring,inasituationofincreasedrisks,thecontinuation
1oftherecyclingcarriedoutbyprivatebanksbymeansof
iintensified cooperation betweenthosebanksandthemultilateral
*institutions coordinatedactiontoensureimprovedmarketstability.
Theintroduction atinternational levelofcreditguaranteeand
investmentproteotionmachinerywillalsohavetobeconsidered.
ί

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2.Formanyreasons,whichhavealreadybeenmentioned,theCommunity
mustdemonstratethepolitioalimportanceitattachestotherelaunohing
oftheNorth–SouthDialogueandmusttranslateintopracticaltermsthe
directparticipation ofitspoliticalleadersintheprocessofdiscussions
betweenindustrialized anddevelopingcountries.ItistotheCommunity
thatthelattwrarelookingforaninitiative;itistheCommunitythatisalreadythebest-plaoedinterlocutor ofthedevelopingcountrieswithin
theUnitedNations,andlastlyitistheCommunitythathasbeenable
toindicatethepathofchangeinitsrelationswiththedeveloping
countriesatregionallevel.
Inadditionthentomerelysolemnlyreaffirming theimportanceit
attachestoNorth-Southquestions,itthereforeseemsessentialforthe
EuropeanCounciltoproposewithoutdelaythatarealpolitcaldimension
begiventotheNorth-South Dialogue.Thisorientation couldtakethe
formofconveningoneormoresummits(thecompositionofwhichoould
varyaccordingtotheoccasion)ofleadersfromtheNorthandtheSouth,
theobjectivesofwhiehwouldbetwofold:
(i)toestablishandsetintrainaminitialseriesofinternational
operationstoresolvethemosturgentproblemsofthedeveloping
countries,notablyinthefinancialfield;
(ii)toprovideandmaintainaconstantpoliticalimpetusforthe
globalnegotiations whichwilltakeplacewithinthe
UnitedNationsframeworkasfrom1981»notablybyprovidingfor
thepossibilityatalltimesofrecoursetopoliticalinitiatives
intheeventofthenegotiations beoomingblooked.