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WORKING GROUP II

PARAGRAPH 12: (interaction of market forces) In 12(c) (open market policy), the EU opposed the G-77 and China"s proposed deletion of "new suppliers" in reference to reduced barriers to entry. The EU added "national" corporations to the G-77 and China"s 12(d)(bis) call for transnational corporation compliance with national and international laws. In 12(e) (public and private investment), the G-77 and China reference to poverty eradication required brackets. In 12(f) (human resource development), the G-77 and China incorporated the EU call for capacity building, health education, empowerment and participation. The EU altered its proposed 12(f)(bis) (small scale economies) to refer to indigenous people"s economies.

CHAPTER 13: (prevention of socially divisive disparities) The US, supported by the EU, proposed that the chapeau read: "ensuring fiscal systems and other public policies promote social cohesiveness and equality of opportunity." In 13(a) (creating an ethical climate), the Holy See"s addition of "families" was accepted. In 13(b) (ethical responsibility of business), the Holy See suggested addressing codes of conduct. In 13(f) (strengthening international tax agreements), the Russian Federation and Armenia opposed deleting "countries with economies in transition." The G-77 and China, Benin, and Algeria thought these countries should have their own paragraph. In 13(g) (fair tax systems), China, supported by the G-77, suggested establishing tax systems "in accordance with national priorities," but the EU found this unnecessary. The US, the EU, and Ukraine supported the Canadian formulation on strengthening administrative capacity.

B: FAVOURABLE NATIONAL AND INTERNATIONAL POLITICAL AND LEGAL ENVIRONMENT (Delegates accepted the G-77 and China"s title change.)

PARAGRAPH 14: (political framework) In 14(a) (institutional capacity), the Canadian reference to "cultural sensitivity" was bracketed. The EU supported the Norwegian proposal for 14(a)(bis), to ensure the rule of law and democratic institutions, but the G-77 and China reserved. In 14(b) (rules and processes), the EU opposed the G-77 and China"s proposal to delete "adequate" rules and processes. In 14(c) (eliminating discrimination), the US agreed to a G-77 and China proposal to develop and encourage educational and media projects. In 14(d) (decentralization), Canada proposed that decentralization be compatible with the "cultural make-up of society," but the G-77 and China reserved. In 14(e) (freedom of association), delegates debated the necessity of the G-77 and China"s preface "in accordance with national laws and regulations." In 14(g) (full participation of women), the G-77 and China reserved on women"s involvement in policy monitoring.

PARAGRAPH 15: (rights of individuals) Delegates accepted the G-77 and China"s proposals to include "all human rights and fundamental freedoms" and to delete "rights of individuals." In 15(a) (existing international rights conventions), China said that if there are no provisions in existing covenants for reports on implementation, reports do not have to be given. In 15(c) (protecting women"s rights), the US preferred "working to ensure" women"s rights. Norway incorporated its 15(c)(bis) reference to the Convention of the Rights of the Child into the EU"s 15(c) (women"s rights) proposal regarding the rights of the child. Canada supported a separate sub-paragraph on children"s rights. In 15(d) (justice system), the EU and US objected to the G-77 and China"s specification of a justice system "in particular [for] the vulnerable and disadvantaged." In 15(e) (civil society capacity), delegates accepted the Holy See"s call to support social development "by education and access to resources." The G-77 and China altered the EU-proposed 15(f), regarding discrimination and violence within families.

PARAGRAPH 16: (open political and economic system) In a new 16(a), delegates expanded the Swiss call to strengthen the educational system. In 16(a) (media), the EU stressed using positive terms to encourage awareness- raising on non-violence, tolerance, and solidarity. PARAGRAPH 17: (promotion of favorable political and legal environment) Paragraph 17(a) (resolution of armed conflicts) was adopted ad referendum. In 17(b)(bis) (realization of the right to development), the EU, supported by the US, preferred "work to remove" such obstacles over "removing." In 17(e) (role of international organizations), the G-77 and China added reference to national and regional organizations, but the whole paragraph was bracketed. The G-77 and China, supported by the EU, wanted to include the right to development, while the US objected. Paragraph 17(f) (policies to support objectives of social development) was adopted ad referendum.

CHAPTER II: ERADICATION OF POVERTY

Basis for Action and Objectives

PARAGRAPH 18: (people living in poverty) The G-77 and China preferred the original wording. Algeria favored keeping poverty in generic terms at this time. Mexico asked for the Latin American region to be included. PARAGRAPH 19: (manifestations of poverty) The G-77 and China supported the original draft, but Canada, the EU and others preferred their extensive amendments, which will be considered by the contact group. PARAGRAPH 20: (causes of poverty) Algeria stated that poverty is also due to the absence of development. China added national disasters, war and unreasonable international order to the list of causes, which was bracketed. The US proposal to delete "redistribute wealth and income to eliminate existing inequities" was also bracketed.

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