North, South Still Distant on Funds

new york, mar 3 1992 (ips) -- as a u.n. environment and development meeting ended its second day tuesday, developing countries and western industrialised states remained far apart on the issue of how they would finance the protection of the world's natural resources.

the 128-member 'group of 77' developing countries (g-77), made it implicitly clear that unless western nations commit themselves to the financial resources necessary to implement decisions taken at the jun. 1-12 'earth summit' in rio de janeiro, brazil, the current preparatory negotiations would be an exercise in futility.

at the 'earth summit' -- the u.n. conference on environment and development (unced) -- governments are expected to adopt 'agenda 21' a series of steps to guide sustainable development into the 21st century and beyond. they are also expected to sign international conventions to address climate change, protect biodiversity, and safeguard forests.

the united nations has said that the implementation of agenda 21 would require about 125 billion dollars -- about 70 billion dollars over and above the current annual official development assistance (oda) from western nations to the the third world.

''we have a document that spells out everything in very definite language and has very definite concepts about funding,'' a spokesman for the g-77 told a session of the five-week unced preparatory meeting tuesday.

but japan, france, and portugal said they were not prepared to go along with the stand taken by the g-77, thereby opening up the possibility of having to start negotiations all over again.

at the last preparatory meeting for the 'earth summit' in august in geneva, the g-77 along with china, took a collective stand on the question of financing. on tuesday, the g-77 reiterated its position, arguing that there should not be any reallocation or diversion of existing multilateral or bilateral financial flows for development purposes.

the g-77 also insisted there should be a separate fund for the proposed convention on climate change, biodiversity and forestry.

the group also refused to agree to make use of the controversial global environment facility (gef), which was established by the world bank, the u.n. environment programme (unep), and the u.n. development programme (undp), to finance agreements reached at the earth summit. gef, on the other hand, is being strongly supported by western industrialised nations,

the g-77 is also supporing the concept of a green fund, initiated by china to cover activities not included in the three separate conventions.

to ensure predictability in the flow of funds, the g-77 wants mandatory contributions from developed countries ''in accordance with their responsibilities''.

funds from industrialised nations to developing countries should ''to a great extent, (be) of a compensatory nature'', on the principle that the ''polluter pays'', the grouping says.

calling for a political compromise between the opposing viewpoints of industrialised countries and the third world, the minister of housing, physical planning, and environment of the netherlands said that much of this month's preparatory meeting which began monday depends on the otcome of this week's discussions on financial resources.

''we must find the right balance between the discussions on what we want to do and how we shall pay for it. this requires some flexibility that i hope we will all be ready to show in the days to come,'' hans alders told delegates.

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