1. The 26th Meeting of the Ministers of Foreign Affairs of the Group of Fifteen was held on 28 September 2004 in New York under the Chairmanship of His Excellency, Mr. Abdelaziz Belkhadem, Minister of Foreign Affairs (Ministre d’Etat) of Algeria. In his opening remarks, the Chairman expressed his appreciation to the Ministers for their participation in the meeting in spite of their busy engagements during the annual session of the United Nations General Assembly. He underlined the indispensability of the exchange of views between G-15 Foreign Ministers in view of the dramatic and rapid changes taking place globally and their impacts on the social and economic development of member countries. He added that the meeting also serves as part of the preparatory process for the XIII Summit to be hosted by Algeria in the first semester of 2005, a date to be determined after due consultations and agreement by all member countries. In the same vein, the Chairman reiterated, on behalf of the Group, his sincere congratulations to his H. E. Mr. Jesus Pérez, Minister of Foreign Affairs of Venezuela and paid tribute to the Venezuela authorities for both the success of the 12th Summit and the dedication and commitment that prevailed throughout the two difficult years of their Chairmanship. He noted that in deed, the decisions and recommendations adopted during the last Summit will constitute the road map for the next G-15 Summit to be held in Algeria.
2. The Chairman outlined the main programmes and priorities identified to be pursued under the Algerian Chairmanship, with suggestions and enrichment by member countries. In this regard, he reiterated Algeria’s call for the necessity to revitalize the Group with respect to the review of its method of work and functioning, as well as the redefinition of its objectives. He underlined the necessity and urgency of this exercise, as it would enable the Group to properly adapt to new international realities and to cope with the new challenges engendered principally by the process of globalization. To this end, the Chairman underscored the relevance of the proposal of the 24th Meeting of the Ministers of Foreign Affairs in 2003 to engage the services of external consultants to undertake a study and to submit a report on measures for reforming the Group. Without attempting to prejudge the eventual terms of reference to be elaborated for this study, the Chairman stated that the exercise should provide appropriate responses to the institutional crisis faced by the Group in the last two years, caused notably by political and legal difficulties arising from the hosting of the Summit, linked to the required quorum for the participation of Heads of State and Government; the principle of the rotation of the organization of Summits between the three regions of the Group; as well as the frequency of Summits and the modality for the transfer of Chairmanship. Within the same context, the Chairman called for the review of the restructure and composition of the Technical Support Facility of the G-15 to enable it undertake the conceptualization and analysis of current problems addressed by the Group and the provision of appropriate implementation strategies.
Report by the Chairman of the Personal Representatives on the activities of the Group
3. Ambassador Mohamed-Salah Dembri, Personal Representative of the President of Algeria to the G-15 and Chairman of the Personal Representatives, presented the highlights of his report on the activities of the Group since the last Summit, as contained in document G-15/04/FM26/3. These included the follow-up on the implementation of the key decisions and proposals of the XII Summit as well as the management of other activities and affairs of the Group. Within this context, he reported on the outcome of the deliberations by Personal Representatives on the modality of convening the meeting of the High Level Officials Commission to examine the feasibility and financial implications of the various decisions and proposals of the XII Summit with a view to the elaboration of a Plan of Action. To complement this process, he remarked that Personal representatives agreed to engage the services of external consultants, composed of three eminent personalities, one from each region of the G-15, to undertake a thorough study on the objectives and working method of the Group as well as a critical evaluation of the various decisions and proposals of the last Summit. He informed the meeting that while member countries have been requested to submit names of distinguished experts, Personal Representatives have recommended that appropriate terms of reference of the panel of experts should be elaborated taking into account, the guidelines provided by the 24th and 25th Meetings of the Foreign Ministers as well as the previous deliberations of the Personal Representatives on the situation of the Group. The Chairman of the Personal Representatives also remarked that Personal Representatives had observed that many of the proposals on the table would duplicate other efforts being undertaken at the larger level of the G-77 and the Non-Aligned Movement. He however reported that the proposed G-15 Africa Fund was unanimously endorsed and should lead to subsequent discussions with African countries to facilitate its operationalization. Furthermore, the Chairman noted the slow progress recorded in the implementation of some of the Group’s decisions and programmes of cooperation as well as cases of overlapping functions between the Committee on Investment, Trade and Technology and the recently established High Level Officials Commission.
4. The Chairman also reported that, with a view to ensuring appropriate follow-up on the various decisions and proposals of the XII Summit and the necessity to foster collaboration and consultations with relevant international institutions and groupings of developing countries, he established contacts with the Secretary-General of UNCTAD, the Chairman of the Group of 77 as well as the Chairman of the South Centre from which he received positive responses. He noted in particular that the UNCTAD had agreed to assist the G-15 in developing a database on trade and investment opportunities in its member countries. He also informed the meeting that a modest allocation had been made in the Proposed Budget for 2005 for the development of a G-15 website as endorsed at the last meeting of the Foreign Ministers in Caracas. The Chairman further reported that the G-15 Federation of Chambers of Commerce, Industry and Services (FCCIS) took some important decisions at its 11th Annual General Body Meeting held on 19 July 2004 in Tehran, Iran. In this regard, he recalled the decision of the XII Summit to promote the participation of the private sector in the activities of the Group and noted that the undertaking by FCCIS to actively participate in the Business Forum of the Algiers Summit was an encouraging development. Furthermore, the Chairman of the Personal Representatives briefed the Ministers on actions taken to convey the Group’s position and concerns to the wider world as well as to enhance its international visibility. In this regard, he informed the meeting that the XII Summit Joint Communiqué and the Caracas Declaration on Energy and Development were communicated to various international organizations.
5. Finally, the Chairman of the Personal Representatives briefed the meeting on the consultations held to find a possible host for the XIV Summit of the Group in 2006 and the Draft Proposed Budget for 2005 as well as the Group’s creeping budgetary crisis arising from the significant level of outstanding financial contributions, as vividly presented in the substantive paper prepared by the Technical Support Facility, with the title, "Background Facts and Figures on the Emerging Crisis in Financing the Annual Budgets of the Group of Fifteen" (Document G-15/04/FM26/INF.1).
6. The Ministers expressed appreciation to the Chairman of the Personal Representatives for his report and to the Personal Representatives for their commendable efforts towards the implementation of the outcomes of the last Summit. The Ministers made broad comments and particular recommendations on some crucial issues raised in the Report as follows:
· There was broad endorsement of the arrangements under way for the engagement of the services of eminent personalities conversant with the preoccupations of the G-15 to undertake a thorough study on the feasibility and financial implications of the XII decisions and proposals as well as the evaluation of the objectives and working methods of the Group. It was held that this exercise would bring the much needed fresh and independent perspectives as well as lend greater clarity to the Group’s objectives and direction. While the recommendation for the PRs to elaborate appropriate terms of reference for the panel was endorsed, it was observed that the criteria for the selection of the panel of experts should be clearly established and agreed. A point was made that the time-frame, content and financial implications of the exercise should be spelt out;
· It was underlined that the main objective of the effort to revitalize the Group and to rationalize its institutions and mechanisms of cooperation should aim at the reaffirmation of its founding objectives, the preservation of its unity and solidarity, as well as its consolidation and the strengthening of its capacity to attain set goals and to establish its international credibility in the attempt to make the Group adapt to present realities;
· While recognizing the worthiness of the South-South cooperation projects proposed at the XII Summit, the predominant view was that many of these initiatives would be better dealt with at the larger groupings of developing countries to which member countries of the G-15 belong. In this regard, it was considered crucial to avoid duplication of efforts and to ensure the viability, sustainability and broad attractiveness of proposed projects. The proposal to establish the G-15 Africa Fund and the pledges already made in that regard were important and that efforts should be made to operationalize the Fund at the Algiers Summit. A view was however expressed that, pending the envisaged evaluation of the feasibility of the various South-South cooperation proposals, the ideas should be kept alive within the Group. A call was also made for the Group to support the initiative on the establishment of an International Humanitarian Fund;
· The need for the Group to focus its attention on a few and implementable issues that are of vital interest to its entire membership. In this regard, it was stressed that greater effort should be directed at fostering greater South-South cooperation to enhance the capacity of member countries in confronting the new realities of the prevailing international order;
· The meeting underscored the increasing relevance of strengthening the Group against the backdrop of the newly emerging trade geography in which developing countries were beginning to assume greater economic space and presence;
· The need for further efforts to ensure effective implementation of Summit decisions was stressed. To this end, regular coordination and consultations between G-15 experts in Geneva and the involvement of officials and professionals from the capitals in the activities of the Group were recommended;
· In light of the Group’s past and recent experiences as well as the need for ample time for the implementation of Summit decisions, the meeting overwhelmingly endorsed the necessity for hosting biennial Summits, in place of the prevailing practice of annual Summits which currently appears increasingly troubled;
· It was also suggested to change the format of G-15 Summit to bring it in line with the universal practice of transferring Chairmanship to the country hosting a Summit rather than the other way round as is the practice now. This approach, it was held, would meant that the country hosting the Summit would be better placed to implement the mandate agreed under its Chairmanship;
· That consideration would be given to the desirability of convening the proposed meeting of the Foreign Ministers of the Troika Countries in 2005 to consider the outcome of the work of the panel of experts and the High Level Officials Commission with a view to giving the Group a new direction and ensuring the effective implementation of Summit decisions as decided in the Caracas Summit. The Plan of Action that would emerge from this process will be submitted to the XIII Summit in Algiers;
· The undertaking by the Venezuelan government to reschedule the proposed Meeting of G-15 Energy Ministers was welcomed. Venezuela also informed the meeting that, from 20 to 29 May 2004, it successfully accomplished a G-15 workshop on international economic and trade negotiations in fulfillment of its undertaking during the Caracas Summit. It was reported that several G-15 member countries participated in the event;
· The efforts of the Group to seek cooperation and technical assistance from relevant international institutions and to maintain coordination and consultations with the G-77 were commended.
Briefing by the Chairman on the preparations for the XIII Summit of the G-15 and other activities to be undertaken by Algeria
7. The Chairman of the Foreign Ministers briefed the meeting on the plans for the hosting of the XIII Summit in Algiers and other preparatory activities to be undertaken by the government of Algeria within the context of the main theme of the Summit, which is “Rural and Agricultural Development and the Management of Water Resources”. The choice of the proposed theme, according to him, was informed by the importance of the three components of the theme in national programmes and strategies for the fight against poverty and the attainment of food security in member countries. In this regard, he disclosed that Algeria intends to organize two expert workshops on the following themes:
· Management of the demand for water in urban areas and for agriculture to address all aspects of water economy;
· Protection of agricultural land against erosion and desertification.
8. The Chairman disclosed that, to the above ends, the assistance of the Food and Agricultural Organization (FAO) had been solicited with a view to the elaboration of a cooperation programme in this sector and to explore the possibility of mobilizing financial resources in this regard. He informed the meeting that other areas of cooperation under study included ICT, energy, generic drugs and public health, medical research and human resource training. He invited member countries to submit suggestions on other areas of cooperation that could be developed collectively. He called for the reactivation of the various twenty-one collaborative projects of the Group to attract the interest of more member countries. He also noted that the Sao Paulo decision that launched a new Round of the GSTP Negotiations should encourage member countries of the Group to make further efforts to ensure the necessary harmonization of their rules and commercial activities with a view to promoting enhanced intra-G-15 exchanges.
9. In their response to the briefing, the Ministers unanimously acknowledged the importance of the proposed theme of the XIII Summit to the social and economic development of member countries in general and its relevance to the priorities identified in the NEPAD, an initiative of particular relevance to the African member countries of the Group. They welcomed the range of preparatory activities being arranged for the successful hosting of the Summit, particularly the timeliness and significance of the two expert meetings to be held in Algiers. The meeting commended the Government of Algeria for its effort to obtain technical assistance and funding from the FAO for cooperative projects to be launched in the context of the main theme of the Algiers Summit.
Consultations on the host country for the 14th Summit in 2006
10. Ministers were briefed on the progress of the consultations on finding a possible host country, from among the Asian members of the Group, for the XIV Summit of the Group to be held in 2006. The meeting was informed that Iran had requested for a change in the timing of the Algiers Summit, to take into account the Presidential election to be held in the country in May 2005, at the end of which it could be possible to transfer Chairmanship of the Group. Iran reiterated that its initial offer to host the XIV of the Group was predicated on the expectation that the event would fall within 2004 or early 2005 but that the delay in hosting the XII Summit had made this impossible. It noted that the series of consultations held among the Asian member countries were yet to produce the desired result. In consequence, Iran proposed that that Group should wait until after the Presidential election to be held in the country in May 2005, after which the matter would be placed before the new Iranian government for consideration and decision. Iran however observed that this position was without prejudice to any other member that might wish to consider hosting the XIV Summit at a much earlier date. Sri Lanka on its part expressed regrets on its inability to assume the responsibility of hosting the 2006 Summit as a result of its Presidential election scheduled for that year. It however expressed its desire to host a G-15 Summit at a more convenient time in the future. The meeting was advised that in fixing the date for the 2005 Summit, the Group should take into account the fact that a G-77 Summit will be held in the same year at a venue yet to be determined. The Chairman assured the meeting that further consultations on the subject, particularly the possibility of a change in the timing of the Algiers Summit, would be resumed in due course.
Consideration of Financial Matters:
(a) Proposed Budget for 2005
11. The Chairman formally presented the Proposed Budget of the Group for the year 2005 as recommended by the Personal Representatives. He noted that the Proposed Budget, as contained in Document G-15/04/FM26/4, was within the approved budgets for the last three years. He therefore invited the Ministers of Foreign Affairs to favourably consider and approve the Proposed Budget for 2005 along with the recommended option for its financing. The meeting welcomed the modest provisions in the Proposed Budget for engaging the services of external consultants and for the development of a G-15 website. The TSF was commended for its prudent financial management. The Ministers then approved the Proposed Budget for 2005, taking into account the financing option recommended by the PRs.
(b) Outstanding financial contributions
12. The Chairman drew the attention of Ministers to the precarious financial situation of the Group, arising from the considerable level of unpaid contributions amounting to US$805,750 as of 20 September 2004. He observed with concern that this situation would significantly undermine the capacity of the Group to function properly and the ability of the TSF to rise up to its increasing responsibility unless urgent action was taken to remedy the worrying situation. The attention of the meeting was also drawn to the detailed analysis of the Group’s looming budgetary crisis undertaken by the Technical Support Facility, in the paper with the titled, "Background Facts and Figures on the Emerging Crisis in Financing the Annual Budgets of the Group of Fifteen" (Document G-15/04/FM26/INF.1). Ministers of Foreign Affairs were invited to review the situation with a view to finding appropriate solution. The meeting expressed serious concern on the magnitude and perennial problem associated with the non-payment of financial contributions. This problem, the Ministers stressed, could undermine the smooth operations of the Group and the efforts for its revitalization. They also expressed grave concern on and took due note of the timely conclusions of the TSF paper on the emerging crisis in financing the annual budgets of the Group. They therefore called on member countries with arrears of contribution to take immediate steps for the early payment of their arrears in order to place the Group on a sound financial footing. In response some affected member countries gave assurances that their arrears of contribution would be settled soon.
(c) Financial Report for the year 2003 prepared by the official Auditors of the G-15
13. The Ministers received and took note of the Financial Report for the year 2003 prepared by the official Auditors of the Group of Fifteen. The report, which indicated the financial situation of the Group as at 31 December 2003, is contained in document G-15/04/AUD.
Any Other Business
14. Having concluded the consideration of the substantive items of their agenda and in the absence of any other matter to be considered, the Chairman expressed his appreciation to the Ministers for their attendance and commended them for their demonstrated commitment to the revitalization and strengthening of the Group. On this note, he formally adjourned the 26th Meeting of the Ministers of Foreign Affairs.
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