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                                             Distr.
                                             GENERAL

                                             A/CONF.151/26 (Vol.I)
                                             12 August 1992

                                             ORIGINAL:  ENGLISH


             REPORT OF THE UNITED NATIONS CONFERENCE ON 
                     ENVIRONMENT AND DEVELOPMENT

                  (Rio de Janeiro, 3-14 June 1992)


             SECTION I.  SOCIAL AND ECONOMIC DIMENSIONS


                              Chapter 2

   INTERNATIONAL COOPERATION TO ACCELERATE SUSTAINABLE
DEVELOPMENT
        IN DEVELOPING COUNTRIES AND RELATED DOMESTIC POLICIES

                            INTRODUCTION

2.1.  In order to meet the challenges of environment and development,
States have decided to establish a new global partnership.  This
partnership commits all States to engage in a continuous and
constructive dialogue, inspired by the need to achieve a more efficient
and equitable world economy, keeping in view the increasing
interdependence of the community of nations and that sustainable
development should become a priority item on the agenda of the
international community.  It is recognized that, for the success of
this new partnership, it is important to overcome confrontation and to
foster a climate of genuine cooperation and solidarity.  It is equally
important to strengthen national and international policies and
multinational cooperation to adapt to the new realities.

2.2.  Economic policies of individual countries and international
economic relations both have great relevance to sustainable
development.  The reactivation and acceleration of development requires
both a dynamic and a supportive international economic environment and
determined policies at the national level.  It will be frustrated in
the absence of either of these requirements.  A supportive external
economic environment is crucial.  The development process will not
gather momentum if the global economy lacks dynamism and stability and
is beset with uncertainties.  Neither will it gather momentum if the
developing countries are weighted down by external indebtedness, if
development finance is inadequate, if barriers restrict access to
markets and if commodity prices and the terms of trade of developing
countries remain depressed.  The record of the 1980s was essentially
negative on each of these counts and needs to be reversed.  The
policies and measures needed to create an international environment
that is strongly supportive of national development efforts are thus
vital.  International cooperation in this area should be designed to
complement and support - not to diminish or subsume - sound domestic
economic policies, in both developed and developing countries, if
global progress towards sustainable development is to be achieved.

2.3.  The international economy should provide a supportive
international climate for achieving environment and development goals
by:

      (a)   Promoting sustainable development through trade
liberalization;

      (b)   Making trade and environment mutually supportive;

      (c)   Providing adequate financial resources to developing
countries and dealing with international debt;

      (d)   Encouraging macroeconomic policies conducive to environment
and development.

2.4.  Governments recognize that there is a new global effort to relate
the elements of the international economic system and mankind's need
for a safe and stable natural environment.  Therefore, it is the intent
of Governments that consensus-building at the intersection of the
environmental and trade and development areas will be ongoing in
existing international forums, as well as in the domestic policy of
each country.

                           PROGRAMME AREAS

         A.  Promoting sustainable development through trade

Basis for action

2.5.  An open, equitable, secure, non-discriminatory and predictable
multilateral trading system that is consistent with the goals of
sustainable development and leads to the optimal distribution of global
production in accordance with comparative advantage is of benefit to
all trading partners.  Moreover, improved market access for developing
countries' exports in conjunction with sound macroeconomic and
environmental policies would have a positive environmental impact and
therefore make an important contribution towards sustainable
development.

2.6.  Experience has shown that sustainable development requires a
commitment to sound economic policies and management, an effective and
predictable public administration, the integration of environmental
concerns into decision-making and progress towards democratic
government, in the light of country-specific conditions, which allows
for full participation of all parties concerned.  These attributes are
essential for the fulfilment of the policy directions and objectives
listed below.

2.7.  The commodity sector dominates the economies of many developing
countries in terms of production, employment and export earnings.  An
important feature of the world commodity economy in the 1980s was the
prevalence of very low and declining real prices for most commodities
in international markets and a resulting substantial contraction in
commodity export earnings for many producing countries.  The ability of
those countries to mobilize, through international trade, the resources
needed to finance investments required for sustainable development may
be impaired by this development and by tariff and non-tariff
impediments, including tariff escalation, limiting their access to
export markets.  The removal of existing distortions in international
trade is essential.  In particular, the achievement of this objective
requires that there be substantial and progressive reduction in the
support and protection of agriculture - covering
internal regimes, market access and export subsidies - as well as of
industry and other sectors, in order to avoid inflicting large losses
on the more efficient producers, especially in developing countries. 
Thus, in agriculture, industry and other sectors, there is scope for
initiatives aimed at trade liberalization and at policies to make
production more responsive to environment and development needs.  Trade
liberalization should therefore be pursued on a global basis across
economic sectors so as to contribute to sustainable development.

2.8.  The international trading environment has been affected by a
number of developments that have created new challenges and
opportunities and have made multilateral economic cooperation of even
greater importance.  World trade has continued to grow faster than
world output in recent years.  However, the expansion of world trade
has been unevenly spread, and only a limited number of developing
countries have been capable of achieving appreciable growth in their
exports.  Protectionist pressures and unilateral policy actions
continue to endanger the functioning of an open multilateral trading
system, affecting particularly the export interests of developing
countries.  Economic integration processes have intensified in recent
years and should impart dynamism to global trade and enhance the trade
and development possibilities for developing countries.  In recent
years, a growing number of these countries have adopted courageous
policy reforms involving ambitious autonomous trade liberalization,
while far-reaching reforms and profound restructuring processes are
taking place in Central and Eastern European countries, paving the way
for their integration into the world economy and the international
trading system.  Increased attention is being devoted to enhancing the
role of enterprises and promoting competitive markets through adoption
of competitive policies.  The GSP has proved to be a useful trade
policy instrument, although its objectives will have to be fulfilled,
and trade facilitation strategies relating to electronic data
interchange (EDI) have been effective in improving the trading
efficiency of the public and private sectors.  The interactions between
environment policies and trade issues are manifold and have not yet
been fully assessed.  An early, balanced, comprehensive and successful
outcome of the Uruguay Round of multilateral trade negotiations would
bring about further liberalization and expansion of world trade,
enhance the trade and development possibilities of developing countries
and provide greater security and predictability to the international
trading system.

Objectives

2.9.  In the years ahead, and taking into account the results of the
Uruguay Round of multilateral trade negotiations, Governments should
continue to strive to meet the following objectives:

      (a)   To promote an open, non-discriminatory and equitable
multilateral trading system that will enable all countries - in
particular, the developing countries - to improve their economic
structures and improve the standard of living of their populations
through sustained economic development;

      (b)   To improve access to markets for exports of developing
countries;

      (c)   To improve the functioning of commodity markets and achieve
sound, compatible and consistent commodity policies at national and
international levels with a view to optimizing the contribution of the
commodity sector to sustainable development, taking into account
environmental considerations;

      (d)   To promote and support policies, domestic and
international, that make economic growth and environmental protection
mutually supportive.

Activities

(a)   International and regional cooperation and coordination

      Promoting an international trading system that takes account of
      the needs of developing countries

2.10.  Accordingly, the international community should:

      (a)   Halt and reverse protectionism in order to bring about
further liberalization and expansion of world trade, to the benefit of
all countries, in particular the developing countries;

      (b)   Provide for an equitable, secure, non-discriminatory and
predictable international trading system;

      (c)   Facilitate, in a timely way, the integration of all
countries into the world economy and the international trading system;


      (d)   Ensure that environment and trade policies are mutually
supportive, with a view to achieving sustainable development;

      (e)   Strengthen the international trade policies system through
an early, balanced, comprehensive and successful outcome of the Uruguay
Round of multilateral trade negotiations.

2.11.  The international community should aim at finding ways and means
of achieving a better functioning and enhanced transparency of
commodity markets, greater diversification of the commodity sector in
developing economies within a macroeconomic framework that takes into
consideration a country's economic structure, resource endowments and
market opportunities, and better management of natural resources that
takes into account the necessities of sustainable development.

2.12.  Therefore, all countries should implement previous commitments
to halt and reverse protectionism and further expand market access,
particularly in areas of interest to developing countries.  This
improvement of market access will be facilitated by appropriate
structural adjustment in developed countries.  Developing countries
should continue the trade-policy reforms and structural adjustment they
have undertaken.  It is thus urgent to achieve an
improvement in market access conditions for commodities, notably
through the progressive removal of barriers that restrict imports,
particularly from developing countries, of commodity products in
primary and processed forms, as well as the substantial and progressive
reduction of types of support that induce uncompetitive production,
such as production and export subsidies.

(b)   Management related activities

      Developing domestic policies that maximize the benefits of trade
      liberalization for sustainable development

2.13.  For developing countries to benefit from the liberalization of
trading systems, they should implement the following policies, as
appropriate:

      (a)   Create a domestic environment supportive of an optimal
balance between production for the domestic and export markets and
remove biases against exports and discourage inefficient
import-substitution;

      (b)   Promote the policy framework and the infrastructure
required to improve the efficiency of export and import trade as well
as the functioning of domestic markets.

2.14.  The following policies should be adopted by developing countries
with respect to commodities consistent with market efficiency:

      (a)   Expand processing, distribution and improve marketing
practices and the competitiveness of the commodity sector;

      (b)   Diversify in order to reduce dependence on commodity
exports;

      (c)   Reflect efficient and sustainable use of factors of
production in the formation of commodity prices, including the
reflection of environmental, social and resources costs.
(c)   Data and information

      Encouraging data collection and research

2.15.  GATT, UNCTAD and other relevant institutions should continue to
collect appropriate trade data and information.  The Secretary-General
of the United Nations is requested to strengthen the Trade Control
Measures Information System managed by UNCTAD.

      Improving international cooperation in commodity trade and the
      diversification of the sector

2.16.  With regard to commodity trade, Governments should, directly or
through appropriate international organizations, where appropriate:

      (a)   Seek optimal functioning of commodity markets, inter alia,
through improved market transparency involving exchanges of views and
information on investment plans, prospects and markets for individual
commodities.  Substantive negotiations between producers and consumers
should be pursued with a view to achieving viable and more efficient
international agreements that take into account market trends, or
arrangements, as well as study groups.  In this regard, particular
attention should be paid to the agreements on cocoa, coffee, sugar and
tropical timber.  The importance of international commodity agreements
and arrangements is underlined.  Occupational health and safety
matters, technology transfer and services associated with the
production, marketing and promotion of commodities, as well as
environmental considerations, should be taken into account;

      (b)   Continue to apply compensation mechanisms for shortfalls in
commodity export earnings of developing countries in order to encourage
diversification efforts;

      (c)   Provide assistance to developing countries upon request in
the design and implementation of commodity policies and the gathering
and utilization of information on commodity markets;

      (d)   Support the efforts of developing countries to promote the
policy framework and infrastructure required to improve the efficiency
of export and import trade;

      (e)   Support the diversification initiatives of the developing
countries at the national, regional and international levels.

Means of implementation

(a)   Financing and cost evaluation

2.17.  The Conference secretariat has estimated the average total
annual cost (1993-2000) of implementing the activities in this
programme area to be about $8.8 billion from the international
community on grant or concessional terms.  These are indicative and
order-of-magnitude estimates only and have not been reviewed by
Governments.  Actual costs and financial terms, including any that are
non-concessional, will depend upon, inter alia, the specific strategies
and programmes Governments decide upon for implementation.

(b)   Capacity-building

2.18.  The above-mentioned technical cooperation activities aim at
strengthening national capabilities for design and implementation of
commodity policy, use and management of national resources and the
gathering and utilization of information on commodity markets.

        B.  Making trade and environment mutually supportive

Basis for action
2.19.  Environment and trade policies should be mutually supportive. 
An open, multilateral trading system makes possible a more efficient
allocation and use of resources and thereby contributes to an increase
in production and incomes and to lessening demands on the environment. 
It thus provides additional resources needed for economic growth and
development and improved environmental protection.  A sound
environment, on the other hand, provides the ecological and other
resources needed to sustain growth and underpin a continuing expansion
of trade.  An open, multilateral trading system, supported by the
adoption of sound environmental policies, would have a positive impact
on the environment and contribute to sustainable development.

2.20.  International cooperation in the environmental field is growing,
and in a number of cases trade provisions in multilateral environment
agreements have played a role in tackling global environmental
challenges.  Trade measures have thus been used in certain specific
instances, where considered necessary, to enhance the effectiveness of
environmental regulations for the protection of the environment.  Such
regulations should address the root causes of environmental degradation
so as not to result in unjustified restrictions on trade.  The
challenge is to ensure that trade and environment policies are
consistent and reinforce the process of sustainable development. 
However, account should be taken of the fact that environmental
standards valid for developed countries may have unwarranted social and
economic costs in developing countries.

Objectives

2.21.  Governments should strive to meet the following objectives,
through relevant multilateral forums, including GATT, UNCTAD and other
international organizations:
      (a)   To make international trade and environment policies
mutually supportive in favour of sustainable development;

      (b)   To clarify the role of GATT, UNCTAD and other international
organizations in dealing with trade and environment-related issues,
including, where relevant, conciliation procedure and dispute
settlement;

      (c)   To encourage international productivity and competitiveness
and encourage a constructive role on the part of industry in dealing
with environment and development issues.


Activities

      Developing an environment/trade and development agenda

2.22.  Governments should encourage GATT, UNCTAD and other relevant
international and regional economic institutions to examine, in
accordance with their respective mandates and competences, the
following propositions and principles:

      (a)   Elaborate adequate studies for the better understanding of
the relationship between trade and environment for the promotion of
sustainable development;

      (b)   Promote a dialogue between trade, development and
environment communities;

      (c)   In those cases when trade measures related to environment
are used, ensure transparency and compatibility with international
obligations;

      (d)   Deal with the root causes of environment and development
problems in a manner that avoids the adoption of environmental measures
resulting in unjustified restrictions on trade;

      (e)   Seek to avoid the use of trade restrictions or distortions
as a means to offset differences in cost arising from differences in
environmental standards and regulations, since their application could
lead to trade distortions and increase protectionist tendencies;

      (f)   Ensure that environment-related regulations or standards,
including those related to health and safety standards, do not
constitute a means of arbitrary or unjustifiable discrimination or a
disguised restriction on trade;

      (g)   Ensure that special factors affecting environment and trade
policies in the developing countries are borne in mind in the
application of environmental standards, as well as in the use of any
trade measures.  It is worth noting that standards that are valid in
the most advanced countries may be inappropriate and of unwarranted
social cost for the developing countries;

      (h)   Encourage participation of developing countries in
multilateral agreements through such mechanisms as special transitional
rules;

      (i)   Avoid unilateral actions to deal with environmental
challenges outside the jurisdiction of the importing country. 
Environmental measures addressing transborder or global environmental
problems should, as far as possible, be based on an international
consensus.  Domestic measures targeted to achieve certain environmental
objectives may need trade measures to render them effective.  Should
trade policy measures be found necessary for the enforcement of
environmental policies, certain principles and rules should apply. 
These could include, inter alia, the principle of non-discrimination;
the principle that the trade measure chosen should be the least
trade-restrictive necessary to achieve the objectives; an obligation to
ensure transparency in the use of trade measures related to the
environment and to provide adequate notification of national
regulations; and the need to give consideration to the special
conditions and developmental requirements of developing countries as
they move towards internationally agreed environmental objectives;

      (j)   Develop more precision, where necessary, and clarify the
relationship between GATT provisions and some of the multilateral
measures adopted in the environment area;

      (k)   Ensure public input in the formation, negotiation and
implementation of trade policies as a means of fostering increased
transparency in the light of country-specific conditions;

      (l)   Ensure that environmental policies provide the appropriate
legal and institutional framework to respond to new needs for the
protection of the environment that may result from changes in
production and trade specialization.


            C.  Providing adequate financial resources to developing
                countries

Basis for action

2.23.  Investment is critical to the ability of developing countries to
achieve needed economic growth to improve the welfare of their
populations and to meet their basic needs in a sustainable manner, all
without deteriorating or depleting the resource base that underpins
development.  Sustainable development requires increased investment,
for which domestic and external financial resources are needed. 
Foreign private investment and the return of flight capital, which
depend on a healthy investment climate, are an important source of
financial resources.  Many developing countries have experienced a
decade-long situation of negative net transfer of financial resources,
during which their financial receipts were exceeded by payments they
had to make, in particular for debt-servicing.  As a result,
domestically mobilized resources had to be transferred abroad instead
of being invested locally in order to promote sustainable economic
development.

2.24.  For many developing countries, the reactivation of development
will not take place without an early and durable solution to the
problems of external indebtedness, taking into account the fact that,
for many developing countries, external debt burdens are a significant
problem.  The burden of debt-service payments on those countries has
imposed severe constraints on their ability to accelerate growth and
eradicate poverty and has led to a contraction in imports, investment
and consumption.  External indebtedness has emerged as a main factor in
the economic stalemate in the developing countries.  Continued vigorous
implementation of the evolving international debt strategy is aimed at
restoring debtor countries' external financial
viability, and the resumption of their growth and development would
assist in achieving sustainable growth and development.  In this
context, additional financial resources in favour of developing
countries and the efficient utilization of such resources are
essential.

Objectives

2.25.  The specific requirements for the implementation of the sectoral
and cross-sectoral programmes included in Agenda 21 are dealt with in
the relevant programme areas and in chapter 33 (Financial resources and
mechanisms).

Activities

(a)   Meeting international targets of official development assistance
      funding

2.26.  As discussed in chapter 33, new and additional resources should
be provided to support Agenda 21 programmes.

(b)   Addressing the debt issue

2.27.  In regard to the external debt incurred with commercial banks,
the progress being made under the strengthened debt strategy is
recognized and a more rapid implementation of this strategy is
encouraged.  Some countries have already benefited from the combination
of sound adjustment policies and commercial bank debt reduction or
equivalent measures.  The international community encourages:

      (a)   Other countries with heavy debts to banks to negotiate
similar commercial bank debt reduction with their creditors;

      (b)   The parties to such a negotiation to take due account of
both the medium-term debt reduction and new money requirements of the
debtor country;

      (c)   Multilateral institutions actively engaged in the
strengthened international debt strategy to continue to support
debt-reduction packages related to commercial bank debt with a view to
ensuring that the magnitude of such financing is consonant with the
evolving debt strategy;

      (d)   Creditor banks to participate in debt and debt-service
reduction;

      (e)   Strengthened policies to attract direct investment, avoid
unsustainable levels of debt and foster the return of flight capital.

2.28.  With regard to debt owed to official bilateral creditors, the
recent measures taken by the Paris Club with regard to more generous
terms of relief to the poorest most indebted countries are welcomed. 
Ongoing efforts to implement these "Trinidad terms" measures in a
manner commensurate with the payments capacity of those countries and
in a way that gives additional support to their economic reform efforts
are welcomed.  The substantial bilateral debt reduction undertaken by
some creditor countries is also
welcomed, and others which are in a position to do so are encouraged to
take similar action.

2.29.  The actions of low-income countries with substantial debt
burdens which continue, at great cost, to service their debt and
safeguard their creditworthiness are commended.  Particular attention
should be paid to their resource needs.  Other debt-distressed
developing countries which are making great efforts to continue to
service their debt and meet their external financial obligations also
deserve due attention.

2.30.  In connection with multilateral debt, it is urged that serious
attention be given to continuing to work towards growth-oriented
solutions to the problem of developing countries with serious
debt-servicing problems, including those whose debt is mainly to
official creditors or to multilateral financial institutions. 
Particularly in the case of low-income countries in the process of
economic reform, the support of the multilateral financial institutions
in the form of new disbursements and the use of their concessional
funds is welcomed.  The use of support groups should be continued in
providing resources to clear arrears of countries embarking upon
vigorous economic reform programmes supported by IMF and the World
Bank.  Measures by the multilateral financial institutions such as the
refinancing of interest on non-concessional loans with IDA reflows -
"fifth dimension" - are noted with appreciation.

Means of implementation

      Financing and cost evaluation*


           D.  Encouraging economic policies conducive to sustainable
               development

Basis for action

2.31.  The unfavourable external environment facing developing
countries makes domestic resource mobilization and efficient allocation
and utilization of domestically mobilized resources all the more
important for the promotion of sustainable development.  In a number of
countries, policies are necessary to correct misdirected public
spending, large budget deficits and other macroeconomic imbalances,
restrictive policies and distortions in the areas of exchange rates,
investment and finance, and obstacles to entrepreneurship.  In
developed countries, continuing policy reform and adjustment, including
appropriate savings rates, would help generate resources to support the
transition to sustainable development both domestically and in
developing countries.

* * * * *

      *     See chap. 33 (Financial resources and mechanisms).

* * * * *

2.32.  Good management that fosters the association of effective,
efficient, honest, equitable and accountable public administration with
individual rights and opportunities is an essential element for
sustainable, broadly based development and sound economic performance
at all development levels.  All countries should increase their efforts
to eradicate mismanagement of public and private affairs, including
corruption, taking into account the factors responsible for, and agents
involved in, this phenomenon.  

2.33.  Many indebted developing countries are undergoing structural
adjustment programmes relating to debt rescheduling or new loans. 
While such programmes are necessary for improving the balance in fiscal
budgets and balance-of-payments accounts, in some cases they have
resulted in adverse social and environmental effects, such as cuts in
allocations for health care, education and environmental protection. 
It is important to ensure that structural adjustment programmes do not
have negative impacts on the environment and social development so that
such programmes can be more in line with the objectives of sustainable
development.

Objectives

2.34.  It is necessary to establish, in the light of the
country-specific conditions, economic policy reforms that promote the
efficient planning and utilization of resources for sustainable
development through sound economic and social policies, foster
entrepreneurship and the incorporation of social and environmental
costs in resource pricing, and remove sources of distortion in the area
of trade and investment.

Activities

(a)   Management-related activities

      Promoting sound economic policies

2.35.  The industrialized countries and other countries in a position
to do so should strengthen their efforts:

      (a)   To encourage a stable and predictable international
economic environment, particularly with regard to monetary stability,
real rates of interest and fluctuations in key exchange rates;

      (b)   To stimulate savings and reduce fiscal deficits;

      (c)   To ensure that the processes of policy coordination take
into account the interests and concerns of the developing countries,
including the need to promote positive action to support the efforts of
the least developed countries to halt their marginalization in the
world economy;

      (d)   To undertake appropriate national macroeconomic and
structural policies aimed at promoting non-inflationary growth,
narrowing their major external imbalances and increasing the adjustment
capacity of their economies.

2.36.  Developing countries should consider strengthening their efforts
to implement sound economic policies:

      (a)   That maintain the monetary and fiscal discipline required
to promote price stability and external balance;
      (b)   That result in realistic exchange rates;

      (c)   That raise domestic savings and investment, as well as
improve returns to investment.

2.37.  More specifically, all countries should develop policies that
improve efficiency in the allocation of resources and take full
advantage of the opportunities offered by the changing global economic
environment.  In particular, wherever appropriate, and taking into
account national strategies and objectives, countries should:

      (a)   Remove the barriers to progress caused by bureaucratic
inefficiencies, administrative strains, unnecessary controls and the
neglect of market conditions;

      (b)   Promote transparency in administration and decision-making;

      (c)   Encourage the private sector and foster entrepreneurship by
improving institutional facilities for enterprise creation and market
entry.  The essential objective would be to simplify or remove the
restrictions, regulations and formalities that make it more
complicated, costly and time-consuming to set up and operate
enterprises in many developing countries;

      (d)   Promote and support the investment and infrastructure
required for sustainable economic growth and diversification on an
environmentally sound and sustainable basis;

      (e)   Provide scope for appropriate economic instruments,
including market mechanisms, in harmony with the objectives of
sustainable development and fulfilment of basic needs;

      (f)   Promote the operation of effective tax systems and
financial sectors;

      (g)   Provide opportunities for small-scale enterprises, both
farm and non-farm, and for the indigenous population and local
communities to contribute fully to the attainment of sustainable
development;

      (h)   Remove biases against exports and in favour of inefficient
import substitution and establish policies that allow them to benefit
fully from the flows of foreign investment, within the framework of
national, social, economic and developmental goals;

      (i)   Promote the creation of a domestic economic environment
supportive of an optimal balance between production for the domestic
and export markets.

(b)   International and regional cooperation and coordination

2.38.  Governments of developed countries and those of other countries
in a position to do so should, directly or through appropriate
international and regional organizations and international lending
institutions, enhance their efforts to provide developing countries
with increased technical assistance for the following:

      (a)   Capacity-building in the nation's design and implementation
of economic policies, upon request;

      (b)   Design and operation of efficient tax systems, accounting
systems and financial sectors;

      (c)   Promotion of entrepreneurship.

2.39.  International financial and development institutions should
further review their policies and programmes in the light of the
objective of sustainable development.

2.40.  Stronger economic cooperation among developing countries has
long been accepted as an important component of efforts to promote
economic growth and technological capabilities and to accelerate
development in the developing world.  Therefore, the efforts of the
developing countries to promote economic cooperation among themselves
should be enhanced and continue to be supported by the international
community.

Means of implementation

(a)   Financing and cost evaluation

2.41.  The Conference secretariat has estimated the average total
annual cost (1993-2000) of implementing the activities in this
programme area to be about $50 million from the international community
on grant or concessional terms.  These are indicative and
order-of-magnitude estimates only and have not been reviewed by
Governments.  Actual costs and financial terms, including any that are
non-concessional, will depend upon, inter alia, the specific strategies
and programmes Governments decide upon for implementation.

(b)   Capacity-building

2.42.  The above-mentioned policy changes in developing countries
involve substantial national efforts for capacity-building in the areas
of public administration, central banking, tax administration, savings
institutions and financial markets.

2.43.  Particular efforts in the implementation of the four programme
areas identified in this chapter are warranted in view of the
especially acute environmental and developmental problems of the least
developed countries.

END OF CHAPTER 2