Switzerland has just announced a CHF1.44 million (about US$1 million) extra-budgetary contribution to UNCTAD. The contribution, which is earmarked for specific activities, in accordance with priorities set at UNCTAD IX, shows the strong support of the Swiss Government for UNCTAD´s practical work to enhance the expertise of developing countries in investment issues and to develop their legal and administrative infrastructures in this field. This contribution comes in addition to a bilateral trust fund of US$ 3 million established in late 1996 for trade-related technical cooperation.
"UNCTAD is very gratified by this latest instance of generous financial support from Switzerland", said Mr. Rubens Ricupero, Secretary-General of UNCTAD. "The types of activities the Swiss Government has chosen to back represent some of our top priorities."
Breaking down the contribution, an amount of US$500,000 (CHF729,000) has been allocated to UNCTAD´s work programme on a possible multilateral framework on investment (MFI). This work comprises three sets of activities, through which UNCTAD seeks to fulfill its mandate to assist developing countries to participate as effectively as possible in the discussions on a possible MFI:
- preparation and publication of a "MFI technical papers series" on key issues and concepts. The first issue, scheduled to be released in February, will deal with the interactive effects of foreign direct investment, trade and development;
- organization of regional symposia at the request of member States, as well as seminars for Geneva-based delegates, to enhance a better understanding of the issues involved in a possible MFI;
- training for possible negotiators and others involved in international discussions on investment, and the holding of events which provide a forum for dialogue among key players.
An additional amount of US$200,000 (CHF291,000) will be utilized to support UNCTAD´s programme of national investment policy reviews. At the request of the countries and the Swiss Government, the first reviews will cover Egypt, Uganda, Peru and Ecuador.
A third sum of CHF400,000 (US$270,000) is to be used for technical cooperation extended by UNCTAD in the area of investment, under an existing project called the "Quick Response Window". This allows the UNCTAD secretariat to respond quickly to urgent requests from developing countries for counselling, legal advice, and workshops on investment-related matters, through streamlined administrative procedures and donor consultations. Low-income or lower-middle-income developing countries are the intended beneficiaries of this replenishment of the Quick Response Window. Last year Switzerland provided US$148,000.
Switzerland is traditionally among the largest contributors to UNCTAD´s technical assistance work for developing countries and economies in transition. In December 1996, Mr. Ricupero and Mr. Franz Blankart, State Secretary for Foreign Economic Relations, signed an agreement whereby Switzerland pledged an initial US$3 million to a bilateral trust fund for trade-related technical cooperation projects. Among the projects currently being supported by Switzerland are the setting up of electronic Trade Points and of the Global Trade Point Network; Customs modernization; strengthening the debt-management capacity of developing countries; promoting the use of modern commodity marketing mechanisms; and training seminars for trade policy-makers.
