Main Speaker: Huan Xiang
Nine years have passed since the North-South relations was placed on the agenda of international affairs in 1974 when the Declaration for the Establishment of a New International Economic Order and Programme of Action were adopted at -the Speical Session of the United Nations Assembly. During the years thereafter, the world has been full of tension, turbulence and crises and the economies of the Western developed coun- tries are suffering from stagnation and recession, interwoven with unemployment and inflation... Many of the developing countries are confronted with grave, difficulties in food and en- ergy. The disparity between the poor and the rich in the world is growing. And the deadlock in the North-South dia- logue remains unresolved all these years. In one word, the re- lations between the North and the South, instead of relaxing, are further deteriorating. A most outstanding characteristic of the present crisis started in 1980 is-that, under its influence, most of the Third World countries are faced with unprecedented economic dif-ficulties and in turn, these difficulties have made the crisis of the developed countries more acute, thus a vicious cycle that leads to a worsening global economic crisis.
In the crisis, the Western developed countries, particularly the USA, try their utmost to force down the export prices of primary goods of the developing counties and impose restric- tions on the import of manufactured goods of the developing countries by a more strict trade barrier, thus an increasing de- terioration in the terms of trade for the developing countries and an ever-expanding unfavourable balance in their international income. Furthermore, the high interest rate policy of the Reagan Administration has brought about a general increase of the world interest rate, consequently, many of the developing countries find themselves heavily debt-ridden.
Quite a few statesmen, enterpreneurs and scholars are ponder- ing seriously over the grave situation, exploring new ways to rid their countries of the crisis, and they have put forward some views and proposals of keen insight. North and South: A Pro- gramme for Survival, which was prepared by the ICIDI with Mr Willy Brandt as its chairman, recognizes the justified demand of the developing countries for the establishment of the NIEO, advocates dialogue between the North and the South and a gradual reform of the existing irrational and unjust international economic system.
In February, 1983, the Brandt Commission prepared a Me- morandum entitled Common Crisis-North-South: Cooperation for World Recovery. The Memorandum points out soundly that the improvement of North-South economic relations is a matter of importance and emergency in easing the present global econom-ic crisis, therefore, it once again appeals for resuming North- South negotiations. We highly admire the carefully-considered proposals and the efforts made by the Brandt Commission to help to bring about a new round of North-South negotiation and break the deadlock in the dialogue.
I would like to put forward five propositions. Firstly, material base is the most essential factors in reforming economic relations. That is the reason why the developing countries must give first priority to building up their own economic strength. To achieve this goal, they must develop South-South cooperation so that they will create an international environ- ment favourable for their economic development. Secondly, the North-South dialogue puts before us many problems, which should be solved step by step in order of importance and emer- gency. The solution of specific emergent problems and the reform of the prevailing international economic system do not contradict to each other, but on the contrary, they complement and interact on each other. Thirdly, developing countries and those developed ones that stand for North-South dialogue should cooperate and make every effort so that the USA would respect the aspirations of the developing countries for economic development and national independence, and adopt a more en- lightened policy which conforms with the trends of the times. Fourthly, it is an international obligation for all the developed countries of the North, including the USSR, to offer develop- ment aids to developing countiries, to help them develop their economies and rid of poverty. And fifthly, for urging the North to take emergent actions to resume the North-South dialogue,we appreciate the resolution of the recent Conference of Non-Aligned Countries that another North-South Summit Meeting should be held.
