8. 8. 83 Official Journal of the European Communities No C 211/41 
Opinion on the preparation of Unctad VI 
A. LEGAL BASIS FOR THE OPINION 
At its 206th plenary session held on 23 and 24 March 1983, the Committee, acting on a 
proposal from its Bureau in accordance with the fourth paragraph of Article 20 of its 
Rules of Procedure, decided to deliver an opinion on its own initiative on the above 
matter. (Initial guidelines from the Commission with regard to the preparation of the 
Sixth Session of the United Nations Conference on Trade and Development) 
B. OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE 
The Economic and Social Committee prepared its opinion at its 208th plenary session 
held in Brussels on 1 and 2 June 1983. 
The text of this opinion is as follows: 
In view of the Community's participation in the 
UNCTAD Conference in Belgrade from 6 June to 
1 July 1983 and of the initial guidelines for this con­
ference communicated from the Commission to the 
Council on 3 December 1982, as well as subsequent 
documents emanating from the Commission, the 
Unctad Secretariat, and other international bodies, 
THE ECONOMIC AND SOCIAL COMMITTEE, 
Having regard to the decision taken by its Bureau 
on 22 March 1983 in accordance with the Rules of 
Procedure, and in particular Article 20 (4) thereof, 
Having regard to the report of the rapporteur, Mr 
Elkan, and the opinion adopted by the Section for 
External Relations at its meeting on 10 May 1983, 
Having regard to the discussions at its meeting on 
2 June 1983 (208th plenary session of 1 and 2 June 
1983), 
HAS ADOPTED THE FOLLOWING OPINION 
with 70 votes for, and four abstentions: 
1. Introduction 
1.1. The Economic and Social Committee hopes 
that Unctad VI will express the common interest of 
all members of the international community in world recovery. The Committee notes the risks to 
the outcome of the conference posed by the accu­
mulated frustrations of expectations unfulfilled by 
previous Unctads. The Committee hopes in the light 
of the events of the past two years, which have 
shown the interdependence of national economies, 
including the 'centrally planned' economies, that 
progress can be made on this occasion. All countries 
taking part therefore have an interest in working for 
the success of the conference. The Community and 
its Member States should take the lead both at Unc­
tad and in subsequent negotiations, in obtaining an 
explicit commitment by all concerned to: 
i. stimulate the growth of world trade in commod­
ities and manufactures; 
ii. improve the flow of financial resources; 
iii. allow the adjustment of the economies of devel­
oped and developing countries to take place in 
ways which will not be inimical to growth. 
1.2. Since the ultimate objective of the conference 
should be the development of the developing coun­
tries, the Committee supports whatever explicit 
measures the Community may feel able to adopt 
consistent with the commitments referred to in the 
preceding paragraph. The Committee makes the fol­
lowing observations on the major agenda subjects. 
2. Trade 
An increase in world trade would provide a major 
stimulus to the recovery of the world economy. The 
No C 211/42 Official Journal of the European Communities 8.8.83 
Committee welcomes the declaration made at the 
end of the G ATT Ministerial Conference in Novem­
ber 1982, as well as the declaration of the Commis­
sion issued simultaneously with it. It hopes that at 
Unctad the Community and its Member govern­
ments will make it plain that in the subsequent 
negotiations and studies now to take place follow­
ing this declaration, they will recognize the increas­
ing differentiation in the levels of the economic per­
formance of developing countries. Countries which 
no longer need special preferences should be 
encouraged to adhere to the rules of GATT. In this 
way there can not only be greater reciprocity in the 
trade arrangements made between all countries but 
also a greater extension of special concessions to 
those countries which need them most (such as the 
least developed). 
The Committee feels that industrialized countries 
must take all possible measures to increase develop­
ing countries' share in world trade (imports and 
exports). In particular any new forms of protection­
ism must be resisted and as many as possible of the 
non-tariff barriers to exports from developing coun­
tries to developed countries should be dismantled. 
Industrialized countries should abandon tariff struc­
tures which discourage the transformation of raw 
materials in the country of production. In addition 
South-South trade should be stimulated by all 
means available. 
3. Commodities 
3.1. The Committee recognizes that many develop­
ing countries, especially the middle income coun­
tries, are heavily dependent on commodity exports 
for their foreign exchange earnings. The Committee 
also recognizes that the Integrated Programme on 
Commodities, negotiated at Unctad IV, and other 
commodity arrangements, have not apparently suc­
ceeded in their main objective — that of stabilizing 
prices, partly because the common fund has not 
come into operation. In an attempt to get round 
some of the difficulties which have arisen the Unc­
tad Secretariat has now proposed an intermediate 
measure, the 'Immediate Action Programme' which 
aims to increase the export earnings of developing 
countries by $ 20 billions over a three year period. 
The Committee believes that such a scheme 
deserves serious and sympathetic consideration but 
points out that this intermediate proposal might 
prove difficult to put into practice because of: ii. forecast surpluses in tropical agricultural prod­
ucts. 
One source of possible finance would be the Com­
mon Fund and the Committee therefore urges all 
countries to ratify it. The Committee believes as an 
alternative to the 'Immediate Action Programme' 
that progress may best be made by concentrating on 
schemes for individual products especially com­
modity agreements for tropical agricultural prod­
ucts. The Committee also believes that a major 
objective of price stabilization schemes should be 
the improvement of the standard of living of poor 
producers in the poorest countries. 
3.2. The Committee also believes that on balance 
the ability of governments to adapt their economies 
to changing economic circumstances and to plan 
future development would be increased more by 
schemes for guaranteeing export earnings than by 
schemes for price stabilization. The Committee 
would therefore favour an expansion of the IMF's 
Compensatory Finance Facility. On the extension of 
schemes like Stabex to all the least-developed coun­
tries, the Committee would draw attention to para­
graph 18 of its opinion on the 'Definition of new 
guidelines for closer cooperation between the ACP 
countries and the Community' (')• Extension of Sta­
bex would however be conditional on further 
finance being made available. Furthermore the 
Community should strive to obtain the participation 
of all the industrialized countries in an enlarged Sta­
bex scheme. 
4. International financial and monetary issues 
4.1. Many developing countries have a serious def­
icit on the current account of their balance of pay­
ments. This is sometimes the result of low commod­
ity prices, sometimes of the rise in oil prices, some­
times of over-borrowing at high rates of interest, 
sometimes of a combination of them all. It is both a 
duty and an interest of the developed countries, and 
notably of the Community, to help to cure this situa­
tion, though much of the action needed will have to 
be taken by the countries themselves. 
The Committee considers that the help will have to 
take many forms. Freer trade, more aid, the resched­
uling in appropriate cases of existing debt, are all 
important. But the Committee would place parti-
i. problems in raising the necessary funds; (') OJ No C 90, 5. 4. 1983. 
8. 8. 83 Official Journal of the European Communities No C 211/43 
cular emphasis on on adequate flow of long-term 
capital. Long-term development should not be 
financed by short-term bank credit. To ensure this 
flow, there will have to be conditions which attract 
private investment, an improvement of the borrow­
ing countries credit-worthiness in the international 
financial institutions and more concessional lend­
ing. 
4.2. The Committee welcomes the steps already 
taken along these lines last February by the increase 
in the IMF quotas by 50 % and the improvement in 
the General Agreement to Borrow. 
4.3. The Committee notes that estimates of the 
additional finance needed to restore developing 
country liquidity to what it was in 1978 vary 
between $70 billion and $ 100 billion. The Com­
mittee is in no position to pass judgement on these 
figures. Nevertheless it hopes that the Community 
will be as generous on this issue as possible and 
encourage other industrialized countries including 
the centrally planned economies to do the same, 
since an improvement in financial flows offers the best prospect in the short term of improving trade 
flows between the Community and the third world. 
4.4. The Committee hopes that all Member States 
as well as other industrialized countries will increase 
their efforts to move towards the 0,7 % GNP aid tar­
get. The Committee considers, however, that the 
resulting increase in aid flows would serve little use­
ful purpose unless the developing countries adopt 
appropriate domestic policies which enable the aid 
to be used in ways which promote development. It 
also stresses the importance of regional cooperation. 
Furthermore, in allocating aid more attention 
should be paid to schemes likely to improve the 
recipient's balance-of-payments position. 
4.5. Many schemes to improve international 
liquidity are at present being hampered by opposi­
tion from industrialized countries outside the Com­
munity. The Committee would like to see these 
countries encouraged to bear their proper share of 
providing the resources necessary for economic 
growth in developing countries to be resumed. 
Done at Brussels, 2 June 1983. 
The Chairman 
of the Economic and Social Committee 
Francis CEYRAC 
APPENDIX 
to the opinion of the Economic and Social Committee 
Rejected amendments 
The following amendments, tabled in accordance with the Rules of Procedure, were rejected by 
the Committee during plenary session discussions: 
Page 1, Introduction 
After the words 'the success of the conference', add the following: 
'and should do so on the basis of the commitments made at the UN to build a New Interna­
tional Economic Order.' 
No C 211/44 Official Journal of the European Communities 8. 8. 83 
Reasons 
A reference to the NIEO goal and the commitment made on this introduces an element of con­
tinuity and credibility in international and intergovernmental discussions. 
NIEO provides a general reference framework for present and future negotiations and proposals 
on specific issues. 
This goal has been approved and supported on several occasions by all UN member States and 
has never been repudiated. 
It is therefore appropriate to introduce a wording which has so much meaning both politically 
and economically. 
Voting: 
For: 34, against: 38, abstentions: 1. 
End of point 2, add: 
'The Committee recognizes the impact of products and services from the industrialized 
world on social, economic and cultural life in developing countries. It therefore emphasizes 
the need for special care in evaluating the role of those corporations who are powerful but 
may also be irresponsible.' 
Voting: 
For: 26, against: 33, abstentions: 23. 
Opinion on the proposal for a Council Decision implementing Decision ... empowering 
the Commission to borrow under the new Community instrument for the purpose of 
promoting investment within the Community 
A. LEGAL BASIS FOR THE OPINION 
On 28 February 1983 the Council referred the abovementioned proposal to the Econo­
mic and Social Committee in accordance with Articles 235 and 198 of the Treaty 
establishing the European Economic Community. 
B. OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE 
The Economic and Social Committee prepared its opinion on the above matter at its 
208th plenary session held in Brussels on 1 and 2 June 1983. 
The full text of the opinion is as follows: