> Commonwealth Ministerial Group on Small States
> Publication date: 05/03/02
> Fifth Meeting
> Coolum, Australia, 1 March 2002
> Chairperson's Report to CHOGM
> Agenda Item 6
> HGM(02)10
>
>
>
> Commonwealth Ministerial Group on Small States
> Fifth Meeting
> Coolum, Australia, 1 March 2002
>
>
> Chairperson's Report to CHOGM
>
>
> Introduction
>
> 1. The Commonwealth Ministerial Group on Small States (MGSS) held
> its fifth meeting on 1 March 2002, in Coolum, Australia, on the eve of
> the Commonwealth Heads of Government Meeting (CHOGM). The meeting was
> chaired by the Hon. Alexander Downer, Minister of Foreign Affairs,
> Australia. Representatives from 38 member governments and observers
> from the World Bank, International Monetary Fund (IMF), the European
> Commission (EC), the Caribbean Community (CARICOM) and the Pacific
> Forum Secretariat attended the meeting.
>
> 2. The meeting was opened by the Commonwealth Secretary-General, Rt
> Hon Don McKinnon. He welcomed the publication of the Commonwealth
> Secretariat/World Bank Joint Task Force Report on Small States as a
> landmark step by the international community in addressing the special
> needs of small states. He noted that the Commonwealth had played a
> crucial role in promoting the interests of small states and
> contributed to greater international awareness of the particular
> vulnerabilities of these countries. He emphasized the need to obtain
> broad support for further work in implementing the recommendations of
> the Task Force and urged MGSS to clarify the most productive areas in
> which further work could be undertaken by the Commonwealth and other
> agencies. The Secretary-General affirmed that small states were an
> integral part of the Commonwealth's diverse identity.
>
> 3. Following his election, the Chairperson said Australia had an
> enduring interest in and concern for small states. This had been
> influenced in part by Australia's proximity to a number of small
> states. He pointed out that more than 30 per cent of Australia's aid
> programme was dedicated to working with the Pacific's small states.
> This was in addition to the support Australia had given to a number of
> Commonwealth activities which addressed small states concerns. This
> included the proposing and continued support for the Commonwealth
> Small States office at the UN in New York. He urged the meeting to
> provide feedback on the progress of the recommendations of the Joint
> Task Force report and to advise the Secretariat on the priorities to
> be pursued under the New Agenda for Commonwealth Work on Small States.
>
> Implementation of the recommendations of the Joint Task Force Report
>
> 4. In reviewing the implementation of the Recommendations of the
> Joint Task Force Report, Ministers welcomed the presentations made by
> the partner organisations (the Commonwealth Secretariat, World Bank,
> IMF, the EC Pacific Forum Secretariat and Indian Ocean Commission) on
> the work that was being undertaken in their respective organisations,
> in implementing its recommendations.
>
> 5. Ministers expressed broad support for the programme of work that
> had been undertaken on behalf of small states. They called on the
> international community to provide comprehensive support to assist
> small states integrate into the global economy. They emphasised the
> need for follow-up work to pay particular attention to the special
> needs of small states in meeting the challenges and taking advantage
> of the opportunities presented by globalisation. In this context,
> they identified trade, particularly representation at the WTO, and
> graduation policies as areas that required particular attention and
> welcomed the donor support for small states representation at the WTO,
> particularly the A$250,000 pledged by the Australian Government.
>
> A New Agenda for Commonwealth Work on Small States
>
> 6. The Group welcomed the proposals for future Commonwealth work on
> small states' issues set out in a paper prepared with the help of the
> Advisory Group on Advancing the Small States Agenda. They agreed that
> the Commonwealth can be most effective by working in partnership with
> other relevant international institutions, and requested that the
> Secretariat continues to do so. They stressed the importance of
> co-ordination and co-operation among the various agencies to avoid
> duplication.
>
> 7. Ministers identified the following priority issues for immediate
> Commonwealth action over the months ahead.
>
> * Assistance on trade issues. Following the agreement in
> Doha on a new WTO work programme on small states issues, the
> Secretariat should continue to work closely with Commonwealth members,
> the WTO and with other donors to strengthen the level of WTO support
> for its small state members, further strengthen small states'
> representation at the WTO, and provide assistance to individual states
> and regional organisations in building capacity to negotiate and
> implement WTO agreements.
>
> * Promoting dialogue on the OECD Harmful Tax Practices
> Initiative. The Secretariat should continue work under its mandate to
> promote dialogue between the Organisation for Economic Co-operation
> and Development (OECD) and non-OECD jurisdictions in this area, taking
> into account the OECD's attempt to respond to earlier concerns. The
> Secretariat should support the affected jurisdictions to mobilise
> assistance to meet international standards, strengthen and deepen
> their financial sectors and diversify their economies. The need to
> distinguish clearly between money laundering and tax competition was
> highlighted.
>
> * Action to help mitigate the impact on small states of
> the events of September 11th and their aftermath, which are having a
> highly damaging impact on the economies of many small developing
> states. It will be particularly important for the Secretariat to work
> with partner institutions like the World Bank to encourage them to
> recognise the special impact on many small economies, and to provide
> relevant assistance. The Secretariat should also be ready to provide
> assistance with implementing stronger anti-terrorism measures such as
> those required under UN Resolution 1373, guided by decisions taken by
> Heads of Government on the Plan of Action recommended by the
> Commonwealth Ministerial Committee on Terrorism
>
> * World Summit on Sustainable Development (WSSD) and UN Conference
> on Financing for Development. The Secretariat should identify elements
> of follow up to the conclusions of the forthcoming UN Conference on
> Financing for Development that are most relevant to small states, and
> seek to mobilise support for taking them forward. It was noted that
> the Commonwealth stands to gain from a comprehensive and ambitious
> WSSD summit agenda, one that strengthens the social, economic and
> environmental pillars of sustainable development. Ministers looked
> for outcomes from the WSSD dedicated to poverty eradication, health,
> regional initiatives for small island developing states, and sectoral
> initiatives on oceans, energy and fresh water.
>
> 8. Looking beyond these immediate issues, Ministers suggested that
> the Secretariat's medium term programme of work on small states issues
> should attach high priority to the following areas, taking into
> account the Secretariat's comparative advantage, limited resources and
> the need to avoid duplication of the extensive work of other
> organisations.
>
> * Providing stronger advocacy. The Secretariat
> should continue its efforts to use the results of its own and other
> relevant research to demonstrate the special vulnerability of small
> states. In this respect, it will be important to maintain pressure on
> other international institutions to implement fully recommendations of
> the Commonwealth Secretariat/World Bank Joint Task Force'
>
> * Attracting private investment. The Secretariat should initiate
> consultations with the relevant IFIs and donors to secure greater
> recognition of the special difficulties faced by many small states in
> this respect, and to encourage an atmosphere conducive to increasing
> private investment in small and medium sized enterprises in developing
> small economies
>
> * Addressing the impact of global initiatives, and assistance with
> capacity building. Global initiatives and rules such as WTO rules and
> procedures, the pressing issues covered by the UN Framework convention
> on climate change, the new security measures required to comply with
> UN Resolution 1373, and actions to counter money-laundering,
> international tax crime, terrorist financing, drug trafficking and
> other transnational crimes affect all countries, advanced as well as
> developing. But the Secretariat should take action to draw attention
> to the particular implications of some of these initiatives for the
> economies of many small states, as well as to the special challenges
> they face in building capacity to implement them.
>
> 9. Other areas mentioned by Ministers included:
>
> * Disaster mitigation and insurance. New ideas for disaster
> mitigation and insurance are being developed in the private sector, in
> the multilateral institutions, such as the World Bank, and in some
> small states. The Secretariat could develop a programme to help small
> states understand these new ideas and take advantage of them.
>
> * Promoting regional approaches. The Secretariat should explore
> whether it can play a role in promoting regional approaches, for
> example by helping small states and their regional organisations to
> compare experiences and develop good practice.
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> Novotel Twin Waters Resort
> Coolum
> Australia
>
> 1 March 2002
> http://www.thecommonwealth.org/docs/reports/SMALLStates.doc
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