GROUP OF FIFTEEN G-15
The Summit Level Group of Developing Countries

REPORT BY THE CHAIRMAN OF THE MINISTERS OF FOREIGN AFFAIRS OF THE GROUP OF FIFTEEN ON THEIR TWENTY-SEVENTH MEETING

New York, 21 September 2005

    1. The 27th Meeting of the Ministers of Foreign Affairs of the Group of Fifteen was held on 21 September 2005 in New York under the Chairmanship of His Excellency, Mr. Mohammed Bedjaoui, Minister of Foreign Affairs (Ministre d’Etat) of Algeria. In his opening remarks, the Chairman briefed the meeting on the activities and state of affairs of the Group. He noted that the meeting was taking place at a crucial stage in the life of the Group and at a time characterized by dramatic changes at the global level. Against this background, he remarked that the Group needed fresh impetus and collective efforts to chart a new path aimed at revamping its agenda. This, he concluded, would depend on renewed South-South Cooperation and collective self-reliance. While sharing his reflections on the situation of the Group with the Foreign Ministers, the Chairman recalled that the mandate given by the 26th Meeting of the Ministers of Foreign Affairs for the engagement of external consultants to examine the challenges facing the Group had been successfully accomplished. He paid his compliments to the three consultants for their valuable work that addressed present difficulties and identified the main focus of the future work of the Group. He noted that the report of the consultants, aimed at the reform and revitalization of the Group, had been examined by the Personal Representatives and submitted to the meeting, along with a set of recommendations for consideration and adoption. While expressing the hope that the Group would identify an effective means of implementing the key recommendations of the consultants, the Chairman assured the meeting that Algeria would do its utmost to consult with member countries with a view to injecting the desired vitality into the Group.

    2. The Chairman stated further that the challenges, stakes and risks associated with the current international environment, particularly the ongoing debates on the reform of the United Nations and international economic matters to effectively manage globalization, should inspire the Group. He therefore enjoined the Group to act individually and collectively to reshape the architecture of international economic relations with a view to maximizing its gains, and thereby remolding the international society. To this end, the Chairman stressed the importance of attaining efficiency, cohesion and solidarity within the Group as it looks to the future. The Chairman also observed that, with a view to preserving the unity of the Group, Algeria on the one hand was committed to ensuring the coordination of the activities of the Group well beyond its mandate of one year in accordance with the practice of the Group, and on the other hand, to continue the consultations aimed at designating a host country for the next Summit.

    The situation, he noted, had disrupted the normal functioning of the Group, particularly the Troika that was expected to enhance the effectiveness of the Group as mandated by the 12th Summit in Caracas. He therefore remarked that it was imperative to convene the 13th Summit within a reasonable time frame to enable the Group to put its tremendous potential at the service of international cooperation for development. On this note, he expressed the hope that Iran would give a positive response on its position on hosting the 14th Summit of the Group.

    Report by the Chairman of the Personal Representatives on the activities of the Group

    3. Ambassador Idriss Jazairy, Personal Representative of the President of Algeria to the G-15 and Chairman of the Personal Representatives, presented the highlights of his report, which covered the activities and recommendations of the Personal Representatives of Heads of State and Government (PRs) since the last Meeting of the Ministers of Foreign Affairs, as contained in document G-15/05/FM27/3. These included briefings on the preparations for the 13th Summit in Algiers; the status of consultations on the host country for the 14th Summit of the Group; implementation of the decision to engage external consultants who examined the situation of the Group; implementation of other decisions and activities of the Group; as well as the consideration of financial matters of the Group. In conclusion, the Chairman of the Personal Representatives drew the attention of the meeting to the Annex to his report, which contained Draft Recommendations on the various aspects of his Report as well as the Provisional Agenda of the 27th Meeting of the Ministers of Foreign Affairs, submitted by the Personal Representatives for consideration and adoption by the Ministers. The Ministers expressed appreciation to the Chairman of the Personal Representatives and took note of his report.

    Consultations on the host country for the 14th Summit

    4. In his briefing of the Ministers on the current status of consultations on finding a possible host country for the 14th Summit of the Group, the Chairman recalled that when the matter was discussed at the previous Meeting of the Foreign Ministers, Iran had urged the Group to wait until after the Presidential election to be held in the country in May 2005, after which the matter would be placed before its new government for consideration and decision. He also called to mind the briefing from the Chairman of the Personal Representatives that Iran had recently given assurances that its Foreign Minister would convey the decision of his government to the 27th Meeting of the Ministers of Foreign Affairs.

    5. In his response, His Excellency, Dr. Manuchehr Mottaki, the Foreign Minister of Iran informed the meeting of the readiness of his government to host the 14th Summit. To this end, he said Iran would cooperate with all member countries to make this responsibility a success. He stated in this regard that the Personal Representative of Iran had been instructed to coordinate with the Personal Representative of Algeria and the Technical Support Facility with a view to ensuring a smooth handover to Iran, which will immediately assume its responsibility as a member of the G-15 Troika. The Minister remarked that, with the support of all members, the Group could set an excellent model of South-South Cooperation. While inviting all member countries to work together to strengthen the G-15 and to enhance its role on the international stage, he paid special tribute to Algeria for commendably steering the affairs of the Group as well as advancing the cause of developing countries.

    6. The Ministers welcomed with appreciation, the announcement by Iran of its acceptance to host the 14th Summit and called for an indicative date for the hosting of the 13th Summit in Algiers to enable member countries make adequate preparations for the maximum participation of Heads of State and Government. In response, the Chairman stated that the government of Algeria would now proceed with further arrangements for the successful hosting of the 13th Summit and gave assurances that envoys would be dispatched to member countries in this regard.

    Consideration and adoption of the Draft Recommendations submitted by the Personal Representatives on the Report of the Panel of External Consultants on the Examination of the Challenges Facing the Group and Evaluation of its Projects for South-South Cooperation.

    7. The Ministers commended the Personal Representatives for their efforts at forging consensus and in presenting the meeting with draft recommendations on the Report of the Panel of External Consultants that examined the challenges facing the Group and the evaluation of its projects for South-South Cooperation. While acknowledging that the Report provided some needed fresh perspectives for retooling the Group to enable it adapt to the changing global environment, the Ministers made broad comments and particular recommendations on some crucial issues raised in it as follows:


    · The Group's potential and the opportunities it has could be successfully harnessed to enhance the role it could play for the benefit of developing countries and thus make it a shinning model for South-South Cooperation. In this regard, a case was made for cooperation projects in energy matters, intellectual property rights, joint investments and modern technologies, particularly ICT, to enable member countries that have done well in these areas to exchange experiences with, and impart their knowledge to other member countries. In this regard, India pledged its readiness to share its technical resources with other developing countries;

    · The need for cooperation among member countries to facilitate progress towards the attainment of the Millennium Development Goals (MDGs) and the forging of consensus on major international issues were also underscored;

    · The ideal of South-South Cooperation, which informs the raison d'etre of G-15, was considered of increasing relevance today than ever before. It was therefore considered important to find new approaches to fostering closer G-15 cooperation and concrete actions in the pursuit of its development agenda and the enhancement of its international relevance. To this end, it was observed that the group's credibility could only come from within;

    · That the question of political will was at the root of the problems experienced with Summit quorum, the payment of financial contributions and participation in collaborative projects. It was believed that the revamping of the agenda of the G-15 could, among other factors, improve the level of political commitment to the Group;

    · The need to be flexible on the periodicity of Summits due to the problems associated with quorum and the mounting Summitry fatigue syndrome. To this end, while recognizing the merits of annual Summit, the need to give consideration to biennial Summit was widely reiterated. The recommendation to host Summits in alphabetical order was not supported. It was also observed that rotational arrangements could be applied only on a regional basis to preserve the principle of regional balance in the hosting of Summits. While a case was made for the establishment of a minimum quorum for Summits, some called for flexibility on the matter, including the possibility of proceeding with a Summit if at least the participation of all the Troika Heads of State and Government was confirmed;

    · Support was expressed for the recommendations of the Personal Representatives relating to Summit procedures, the revamping of the institution of the Personal Representatives; projects for South-South cooperation as well as the launching of the proposed G-15 Africa Fund at the next Summit;

    · While caution was raised on the necessity to avoid ambitious projects, a case was made for subjecting the South-South cooperation projects that emanated from the last Summit to further feasibility studies to determine their viability or otherwise;

    · Some member countries favoured the expansion of membership to include some key developing countries that express interest or contacted through informal approaches. In this regard, it was suggested that while such countries should be those that bring dynamism and added value to the group, care must be taken to avoid making the G-15 unwieldy. However, other member countries felt that efforts should rather be directed at the consolidation of the Group before any attempt at expansion;

    · Some members expressed support for the recommendation for the Group to focus on the development agenda while not excluding political issues with development dimensions, while others wanted the Summits to strictly limit themselves to economic issues at the exclusion of any mention of political ones;

    · The imperative to further encourage the active participation of the private sector in G-15 activities was widely recognized;

    · It was felt that the time was not ripe for the conversion of the Technical Support Facility to a full-fledged Secretariat, particularly when some members have not been able to fulfil their financial obligations to the Group;

    · The need for the Group to work more closely with other groups engaged in South-South Cooperation. To this end, the importance of initiating collaboration between the G-15 and the NAM Centre for South-South Technical Cooperation in Jakarta was called for;

    · The importance of joint projects for addressing mutual development challenges was emphasized. To this end, projects should be made technically sound, economically attractive, realistic and sustainable to make them a veritable vehicle for advancing the aims of the Group;

    · That more consultations among member countries were needed on the Panel's recommendation to forge greater consensus that would facilitate the elaboration of a plan of action by the Personal Representatives for onward submission.

    8. In light of the reservations expressed by some member countries on some of the Draft Recommendations submitted by the Personal Representatives on the Report of the External Consultants in the course of the interventions summarized above, particularly on the necessity to consolidate the group rather than expand its membership as well as the call to focus the agenda of the Group exclusively on development issues, it was not possible to adopt the set of Draft Recommendations. In the absence of the needed consensus, the Ministers of Foreign Affairs therefore resolved to take due note of the Draft Recommendations, while requesting the Personal Representatives to further consult with a view to forging the needed consensus on the various recommendations of the Panel of External Consultants. It was agreed that, in the meantime, existing practice should be maintained in the absence of consensus on any procedural recommendation.

    Consideration of Financial Matters:

    (a) Proposed Budget for 2006

    9. The Chairman formally presented the Proposed Budget of the Group for the year 2006 as recommended by the Personal Representatives. He noted that the Proposed Budget, contained in Document G-15/05/FM27/7, amounting to US$ 971,540, was within the range of the approved budgets for recent years. He therefore invited the meeting to favourably consider and approve the Proposed Budget, along with the recommended option for financing it. The Ministers approved the Proposed Budget for 2006, taking into account the financing option involving the retention of annual contributions at US$ 25,000 per member country; the use of income from investments; and savings from previous budgets. However, in taking this action, there was no objection to the request of Personal Representatives to postpone to the year 2006, the review of the level of annual contributions that was due in 2005, as called for by the 21st Meeting of the Minister of Foreign Affairs in Mexico City in 2000.

    (b) Financial situation of the Group

    10. The Chairman drew the attention of Ministers to the significant level of unpaid financial contributions by some member states as highlighted in the Report of the Chairman of the Personal Representatives. He noted with concern that, in spite of the decision taken in 2000 by the Ministers of Foreign Affairs, which reduced annual contributions by about 50% to their current level, this unhappy trend had endured. He recalled that at the last meeting of Foreign Ministers in New York, member countries were urged to take urgent actions to fulfil their financial obligations, in addition to the threat of possible sanctions against defaulting member countries. He expressed regrets that the situation had not improved, despite the fact that the implementation of the Budget was principally contingent upon the timely payment of financial contributions by member countries.

    11. The Chairman underlined the urgency of exploring further options to arrest this disturbing trend that could seriously undermine the proper functioning of the Group. To this end, he invited Ministers to consider, among other measures, the recommendation by the Personal Representatives that the Chair should be mandated by the Ministers to express this concern in their names by writing to member countries that have accumulated more than three years of arrears of contributions. While not objecting to this course of action, some Ministers called for closer consultations to encourage defaulting members to meet their financial obligations. In their response, Ministers expressed serious concern on the persistence of non-payment of financial contributions, a matter with serious implications for the present and future welfare and survival of the Group. Defaulting members were called upon to take immediate steps to meet their long overdue financial obligations to the Group, a development that could constitute an impediment to the ongoing efforts to revive the Group.

    12. In response, some affected member countries commented on their arrears of contributions. While Sri Lanka gave assurances that its arrears of contributions would be settled within three months, Peru stated that steps would be taken to clear its own arrears as soon as possible. On its part, Zimbabwe undertook to ensure that its contribution for 2005 was up to date. Colombia remarked that it had taken due note of the appeal for the prompt payment of contributions. The Foreign Minister of Jamaica expressed surprise that his country was not up to date with its contributions and pledged immediate action to clear the country's arrears.

    (c) Financial Report for the year 2004

    13. The Ministers received and took note of the Financial Report for the year 2004 prepared by the official Auditors of the Group of Fifteen. The report, which was contained in document G-15/05/AUD, indicated the financial situation of the Group as at 31 December 2004.

    Any Other Business

    14. Having concluded the business of the day, the Chairman expressed his appreciation to the Ministers for their attendance and substantive contributions to the success of the meeting. On this note, he formally adjourned the 27th Meeting of the Ministers of Foreign Affairs.

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