.
United Nations Industrial
Development Organisation
Second General Conference
of the
United Nations
Industrial Development Organisation
Lima, Peru, 12-26 March 1975
LIMA DECLARATION
AND PLAN OF ACTION
ON
INDUSTRIAL DEVELOPMENT
AND CO-OPERATION
*Adopted by the Second General Conference
of UNIDO at its final plenary meeting
A. DECLARATION
1. The Second General Conference of the United Nations Industrial Development
Organisation, convened by General Assembly resolution 3087 (XXVIII) of 6 December 1973,
entrusted with establishing the main principles of industrialization and defining the
means by which the international community as a whole might take action of a broad nature
in the field of industrial development within the framework of new forms of international
cooperation, with a view to the establishment of new international economic order, adopts:
The LIMA DECLARATION
ON INDUSTRIAL DEVELOPMENT AND CO-OPERATION
2. Having examined the situation with respect to industrialization in the developing
countries during the past decade,
3. (a) Recalling General Assembly resolution 3176 (XXVIII), of 17 December 1973, which
judged that in terms of international action the cause of development has lost momentum
since 1970;
(b) Recalling General Assembly resolutions 2952 (XXVII) of 11 December 1972, and 3087
(XXVIII), of 6 December 1973;
4. Bearing in mind resolutions 3201 (S-VI) and 3202 (S-VI), of 1 May 1974, adopted at
the sixth special session of the General Assembly on the Declaration and Programme of
Action on the Establishment of a New International Economic Order, according to which
every effort should be made by the international community to take measures to encourage
the industrialization of the developing countries with a view to increasing their share in
world industrial production, as envisaged in the International Development Strategy,
5. Recognising the urgent need to bring about the establishment of a new international
economic order based on equity, sovereign equality, interdependence and co-operation, as
has been expressed in the Declaration and Programme of Action on the Establishment of a
New International Economic Order, in order to transform the present structure of economic
relations.
6. Noting resolution 62 (III) of 19 May 1972, adopted by the United Nations Conference
on Trade and Development at its third session, concerning measures in aid of the least
developed countries, and resolution 1797 (LV) of 11 July 1973 (aid to the Sudano-Sahelian
populations threatened with famine), on assistance to the drought-stricken areas of
Africa, adopted by the Economic and Social Council at its fifty-fifth session,
7. Recalling the Charter of Economic Rights and Duties of States adopted at the
twenty-ninth session of the General Assembly as an instrument designed to bring about new
international economic relations and to contribute to the establishment of a new
international economic order,
8. Convinced that peace and justice encompass an economic dimension helping the solution
of the world economic problems, the liquidation of under-development, offering a lasting
and definitive solution to the industrialization problem for all peoples and guaranteeing
to all countries the right to implement freely and effectively their development
programmes. To this effect, it is necessary to eliminate threats and resorts to force and
to promote peaceful co-operation between States to the fullest extent possible, to apply
the principles of non-interference in each other's internal affairs, full equality of
rights, respect of national independence and sovereignty as well as to encourage the
peaceful co-operation between all States, irrespective of their political, social and
economic systems. The further improvement of international relations will create better
conditions for international co-operation in all fields which should make possible large
financial and material resources to be used, inter alia, for developing of industrial
production,
9. Considering further that the remaining vestiges of alien and colonial domination,
foreign occupation, racial discrimination, and the practice of apartheid, and
neocolonialism in all its forms continue to be among the greatest obstacles to the full
emancipation and progress of the developing countries and their populations,
10. Bearing in mind that the situation in the developing countries has become aggravated
by the persistent and marked tensions to which the present international economic
situation is subjected and that to these must be added as well as the unacceptable
practices of those transnational corporations that infringe the principle of sovereignty
of developing countries the effects of the inflationary increase in the import costs of
developing countries, the pressure exerted upon their balance of payments particularly by
such factors as heavy foreign debt servicing, the aggravation of the international
monetary crisis, and the transfers resulting from private investment and that this
situation is not conducive to the spirit of the new international economic order,
11. Recognising that problems of industrial development in developing countries at their
present stage of development do not lie entirely in those countries but also arise from
the policies of most of the developed countries, and that without meaningful changes in
the economic policies of the developed countries, the achievement of the objectives of a
new international order would be in serious jeopardy,
12. Recognising that the developing countries constitute 70 per cent of the world
population and generate less than 7 per cent of industrial production, that the gap
between the developed and developing countries has been widened owing, inter alia, to the
persistence of obstacles in the way of the establishment of a new international economic
order based on equity and justice,
13. Taking into account the fact that industrial progress has not displayed significant
advances in the developing countries as a whole, in spite of serious efforts on their
part, and that in many cases, the dependence of their economics on the export of primary
goods and the measures taken in the majority of the developed countries have not made it
possible to achieve a profound dynamic effect, which would be capable of transforming
internal socio-economic structures and laying the basis for real development,
14. Bearing in mind that any real process of industrialization worthy of the name must
conform to the broad objectives of self-sustaining and integrated socio-economic
development and that all countries have the sovereign right to make the necessary changes
to ensure the just and effective participation of their peoples in industry and share in
the benefits deriving there from,
15. Noting with anxiety that the present international crisis has aggravated the
industrialization problems of the developing countries, resulting, inter alia, in the
under-utilisation of resources, constraints in the planning and execution of industrial
projects and increasing costs of industrial inputs, equipment and freight charges,
16. Aware that some of the obstacles which are inhibiting industrial expansion in the
developing countries are of an internal structural nature and that there also continue to
exist numerous impediments arising from colonial and neocolonial policies or new forms of
dependency,
17. Considering the present general trend of industrialized countries to reduce the
technical and financial assistance needed to promote the economic and social development
of developing countries in general and their industrial development in particular, as well
as the unsatisfactory terms of the assistance given,
18. Considering also that development assistance is a legitimate need and that neither
in its present volume nor form is it sufficient, particularly taking into account the
worsening of the terms of trade of the developing countries and the drainage of their
resources,
19. Observing with concern the grave consequences with which the present international
crisis confronts the developing countries as a result of growing inflation and economic
instability, aware of the need to establish a just and equitable relationship between the
prices of raw materials, primary commodities, manufactured and semi-manufactured goods
exported by the developing countries and the prices of raw materials, primary commodities,
foodstuffs, manufactured and semi-manufactured and capital equipment imported by them, and
to work for a link between the prices of exports of developing countries and the prices of
their imports from developed countries,
20. Convinced that the establishment of a new and just international economic order
based on the common interests and co-operation of all States can only be achieved through
the equitable participation of the developing countries in the production and exchange of
goods and services, in order to achieve just and equitable international economic
relations,
21. Persuaded that, since not all developing countries have socio-economic structures
which permit them, through industrialization, to attain the objectives pursued by the
establishment of a new international economic order, it is essential to adopt more
favourable treatment for the least developed, landlocked and island developing countries
to render possible harmonious and balanced development,
22. Having decided to adopt a common position and line of action,
SOLEMNLY DECLARE
23. Their firm conviction of the role of industry as a dynamic instrument of growth
essential to the rapid economic and social development of the developing countries, in
particular of the least developed countries;
24. Their firm intention to promote industrial development through concerted measures at
the national, sub-regional, regional, inter-regional and international levels with a view
to modernizing the economies of the developing countries, and in particular those of the
least developed countries, and eliminating all forms of foreign political domination and
socio economic exploitation wherever they might exist;
25. Their resolve to ensure the speedy and effective implementation of the principles of
industrialization laid down in the International Development Strategy for the 197Os which
is being adapted to the Programme of Action on the Establishment of a New International
Economic Order;
26. That in order to facilitate the establishment of a new international economic order
and the achievement of the targets set forth in the Declaration on that subject, a system
of consultations be established in the United Nations Industrial Development Organisation
and other appropriate international bodies between developed and developing countries;
27. That countries, particularly developed countries, should undertake an objective and
critical examination of their present policies and make appropriate changes in such
policies so as to facilitate the expansion and diversification of imports from developing
countries and thereby make possible international economic relations on a rational, just
and equitable basis;
28. That, in view of the low percentage share of the developing countries in total world
industrial production, recalling General Assembly resolution 3306 (XXIX), of 14 December
1974, and taking into account the policy guidelines and qualitative recommendations made
in the present Declaration, their share should be increased to the maximum possible extent
and as far as possible to at least 25 per cent of total world industrial production by the
year 2000, while making every endeavour to ensure that the industrial growth so achieved
is distributed among developing countries as evenly as possible. This implies that the
developing countries should increase their industrial growth rate considerably higher than
the 8 per cent recommended in the International Development Strategy for the Second United
Nations Development Decade;
29. That the Governments of the developing countries should adopt, in order to
accelerate industrialization, all measures which would ensure the exercise of their
national sovereignty over their natural resources and the full utilisation of these
resources and of human and material potential at their disposal, not only at the national
level but also within the framework of systems of economic co-operation;
30. That in order to render really effective the full utilisation of their available
human resources, conditions should be created by the developing countries which makes
possible the full integration of women in social and economic activities and, in
particular, in the industrialization process, on the basis of equal rights;
31. That, in order to carry out their national development plans, and in particular,
those involving industrialization, the developing countries should raise the general
cultural standard of their peoples, in order to have available a qualified work force not
only for the production of goods and services but also for management skills, thus making
possible the assimilation of modern technologies;
32. That every State has the inalienable right to exercise freely its sovereignty and
permanent control over its natural resources, both terrestrial and marine, and over all
economic activity for the exploitation of these resources in the manner appropriate to its
circumstances, including nationalization in accordance with its laws as an expression of
this right and that no State shall be subjected to any forms of economic, political or
other coercion which impedes the full and free exercise of that inalienable right;
33. That the principles set out in the Charter of the Economic Rights and Duties of
States must be fully implemented. Consequently, it is the right and duty of all States,
individually and collectively, to eliminate colonialism, apartheid, racial discrimination,
neocolonialism, occupation and all forms of foreign aggression, and domination and the
economic and social consequences thereof, as a prerequisite for development. States which
practice such policies are responsible to the countries, territories and peoples affected
for restitution and full compensation for the exploitation and depletion of; and damage
to, the natural and other resources of these countries, territories and peoples. It is
addition, the duty of all States to extend assistance to these countries, territories and
peoples;
34. That effective control over natural resources and the harmonization of policies for
their exploitation, conservation, transforming and marketing constitute for developing
countries an indispensable condition for economic and social progress;
35. That special attention should be given to the least developed countries, which
should enjoy a net transfer of resources from the developed countries in the form of
technical and financial resources as well as capital goods, to enable the least developed
countries in conformity with the policies and plans for development, to accelerate their
industrialization;
36. That developing countries with sufficient means at their disposal should give
careful consideration to the possibility of ensuring a net transfer for financial and
technical resources to the least developed countries;
37. That special emphasis should be laid on the need of the least developed countries
for the establishment of production facilities involving a maximum utilisation of local
human resources, the output of which meets identified material and social requirements,
thus assuring a convergence between local resource use and needs as well as offering
adequate employment opportunities;
38. That in view of the needs to conserve non-renewable resources, all countries,
particularly developed countries, should avoid wasteful consumption and, in that context,
the developing countries possessing such resources should formulate a policy of economic
diversification with a view to acquiring other means of financing which are not based on
intensive exploitation of those resources;
39. That the international community, and especially the developed countries, must
mobilize human and material resources in order to cope with problems which threaten the
environment. In this connection, the developed countries should intensify their efforts to
prevent environmental pollution and should refrain from actions which according to
scientific knowledge would create pollution problems or cause upheavals in developing
countries;
40. That the countries concerned should:
(a) Fully discharge their obligations under the International Development
Strategy;
(b) In the context of the review and appraisal mechanism of the International
Development Strategy:
- Consider withdrawing the reservations they expressed at the time of the adoption
thereof, and
- Consider entering into new commitments there under; and
(c) Consider withdrawing the reservations they expressed at the time of the adoption of
the Declaration and Programme of Action on the Establishment of a New International
Economic Order with a view to its full implementation. These countries should also,
together with the developing countries, consider formulating, adopting and implementing
codes of conduct and other instruments designed to assist in the establishment of a new
international economic order;
41. That the developed countries should adhere strictly to the principle that the
General System of Preferences must not be used as an instrument for economic and political
pressure to hamper the activities of those developing countries which produce raw
materials;
42. That the unrestricted play of market forces is not the most suitable means of
promoting industrialization on a world scale nor of achieving effective international
co-operation in the field of industry and that the activities of transnational
corporations should be subject to regulation and supervision in order to ensure that these
activities are compatible with the development plans and policies of the host countries,
taking into account relevant international codes of conduct and other instruments;
43. That the developing countries should fully and effectively participate in the
international decision-making process on international monetary questions in accordance
with the existing and evolving rules of the component bodies and share equitably in the
benefits resulting there from;
44. That urgent discussion should be continued in competent bodies for the establishment
of a reformed international monetary system, in the direction and operation of which the
developing countries should fully participate. The universal system should interalia be
designed to achieve stability in flows and conditions of development financing and to meet
the specific needs of developing countries;
45. That steps should be taken to strengthened and restructure UNIDO, thereby making it
more responsive to the needs of developing countries and especially the least developed
countries in the promotion of industrialization and in the establishment of a new
international economic order;
46. That in the strengthen and restructured UNIDO, developing countries, including the
least developed countries, should be given greater participation at all levels in the
policy making and management activities of the organisation, and that their membership be
substantially increased on the Industrial Development Board;
47. That it is urgently necessary that the developing countries change their traditional
method of negotiation with the developed countries. To bring this about they must
undertake joint action in order to strengthen their negotiating position vis-a-vis the
developed countries. For this purpose, the developing countries must consider all possible
means of strengthening the action of producers associations already established, encourage
the creation of other associations for the principal commodities exported by them, and
establish a mechanism for consultation and co-operation among the various producers'
associations for the purpose of the co-ordination of their activities and for their mutual
support, in particular as a precaution against any economic or other form of aggression;
48. That developing countries should use effective means of strengthening their
bargaining power individually and collectively to obtain favourable terms for the
acquisition of technology, expertise, licenses and equipment, fair and remunerative prices
for their primary commodities and improved and substantially liberalized access to the
developed countries for their manufactures;
49. That developing countries should place a premium on self-reliance in their
development effort for the realization of their full potential in terms of both human and
natural resources and, to that end, adopt meaningful and concerted policies and pursue
action directed towards greater technical and economic cooperating among themselves;
50. That developing countries should lend support to the concept of an integrated and
multi-sectoral approach to industrial development whereby the technological and the
socio-economic implications of the process are fully taken into account at both the
planning and implementation stages;
51. That, in view of the basic complementarity between industry and agriculture, every
attempt should be made to promote agro-based or agro-related industries which besides
arresting rural exodus and stimulating food-production activities, provide an incentive
for the establishment of further natural resource-based industries;
52. That developing countries should devote particular attention to the development of
basic industries such as steel, chemicals, petro-chemicals and engineering, thereby
consolidating their economic independence while at the same time assuring an effective
form of import-substitution and a greater share of world trade;
53. That the educational system be adapted in order to give young people an appreciation
of industrial work and that policies and programmes should be adopted to train the
qualified personnel needed for new sources of employment created in the developing
countries, at the regional and sub-regional levels. The training activities linked with
the industrial development must be conceived in such a way that they make possible the
processing of natural resources and other raw materials in the country of origin and the
establishment of permanent structures for specialized, rapid, large scale and high-quality
training of national labour at all levels and for all professional specialization's,
whether technical or managerial without discrimination with regard to sex;
54. That co-ordinated programmes of literacy and workers' training must be conceived to
ensue professional promotion and development of local expertise at all levels of
employment;
55. That appropriate measures should be taken by developing countries to organise
research institutions and establish training programmes to cover the needs of their
industrial development and make possible progressive mastery of the different production
and management techniques and of industrial development, thus facilitating the
establishment of structures to absorb modern technologies;
56. That intensive efforts should be made by the competent bodies to formulate an
international code of conduct for the transfer of technology corresponding to needs and
conditions to such transactions to take place under the most advantageous conditions for
those countries;
57. That in view of the foregoing, the Conference adopts the various measures set forth
in the following Plan of Action.
B. PLAN OF ACTION
I. Measures of National Scope
58. In the developing countries, national industrialization policies should lay emphasis
on the following elements:
(a) The formulation of long-term and clearly defined industrialization plans and
strategies which rest in the first place on national effort and the introduction of
concrete measures and institutional machinery for their execution, continuous appraisal
and, if necessary, adjustment. Appropriate attention should be given to the development of
the government sector and national planning;
(b) In the formulation of industrialization plans and strategies, the characteristics
of each country in the light of its social and economic structure should be given due
consideration. In addition, social justice should be a guiding factor in achieving the
objectives of raising the living standards and eliminating extreme social disadvantages
and unemployment, particularly among young people. To this end, proper industrial
development should permit such growth as it is required for economic development and
should also be a powerful factor for the promotion of technology and growth in other
sectors, and the realization of the aspirations of mankind. It should also, by the
orientation of its objectives, make a positive contribution to world peace;
(c) The promotion of an integrated industrialization process based on the potential of
each country, with the object of achieving the highest degree on interaction between
industry and the other sectors of the economy, in particular agriculture, by setting up
agro-industrial research centres, developing new agricultural areas and introducing new
crops for industrial purposes;
(d) The equitable distribution of the benefits of industrialization among all sectors
of the population;
(e) The intensive use of national resources, infrastructural development and internal
regional development placing particular emphasis on employment policies, as well as full
and intensive utilisation and on the spot processing of raw materials;
(f) The establishment of production facilities covering all branches of industry aimed
at meeting the needs of both internal and external markets in particular though:
- The establishment of basic industries such as steel, metallurgical and petro-chemical
industries that constitute the indispensable basis for any industrialization;
- The establishment of integral industries such as mechanical engineering, electrical and
chemical industries to provide the necessary link between the different industrial sectors
and to give the developing countries the basis on which the building up of technology will
principally rely;
- The creation of manufacturing and processing industries to satisfy the needs of the
population for consumer goods and to rapidly develop local production for the purpose of
replacing imports increasing exports;
(g) Encouragement and support of small, medium-scale and rural industry and industries
which fulfil the basic needs of the population and which contribute to the integration of
different sectors of the economy; and to this end due attention should also be given to
the industrial co-operatives as means of mobilizing the local human, natural and financial
resources for the achievement of national objectives of economic growth and social
developments;
(h) Achievement of a higher degree of efficiency in import substitution processes and
the formulation of appropriate incentive measures to encourage the export of manufactured
and semi-manufactured products with the highest possible local content and value-added
potential from the developing countries, in particular from the least developed and
land-locked countries;
(i) Development and strengthening of public, financial and other institutions in order
to protect and stimulate industrial development of the developing countries, in
particular, the basic, rural, small, medium-scale and labour-intensive industries;
(j) Sound economic policies to assure economic stability and facilitate adequate
domestic savings rates commensurate with industrial development objectives;
(k) The intensification of manpower development programmes and the professional
training of management staff including the effective incorporation of women in order to
achieve the fullest possible use of available human resources with particular reference to
industrial management. In this context, measures should be adopted to attenuate the
problem of the exodus of engineers, scientific and research personnel from the developing
countries;
(l) Stimulation of the process of applied and scientific research, technological
adaptation and innovation, industrial information and standardization and the elaboration
of policies and programmes of research and development adapted to the individual
requirements of developing countries;
(m) The elaboration of national plans concerning science and technology in accordance
with the order of priorities of each country;
(n) Ensuring an adequate role for the State in the direction of industrial development
and the public sector in the expansion of industries. Elaborate measures by which private
and foreign investment could be effectively used in order to achieve the objectives of
national economy development plans;
(o) The establishment and strengthening of machinery and institutions to regulate and
supervise foreign investment and promote the transfer of technology;
(p) The formulation of policies and the application of specific measures to increase
and diversify sources of foreign exchange earnings, by exerting appropriate control over
the marketing of their products; the adoption of policies aimed at effecting increased
participation by developing countries in the international marketing of their products.
59. The developed countries should adopt the following measure:
(a) Progressive elimination or reduction of tariff and non-tariff barriers and other
obstacles to trade, taking into account the special characteristics of the trade of the
developing countries, with a view to improving the international framework for the conduct
of world trade. Adherence to the fullest extent possible to the principle of the
"standstill" on imports from developing countries and recognition of the need
for prior consultation where feasible and appropriate in the event that special
circumstances warrant a modification of the "standstill";
(b) Adoption of trade measures designed to ensure increased exports of manufactured and
semi-manufactured products including processed agricultural products from the developing
to the developed countries;
(c) Facilitate development of new and strengthen existing policies, taking into account
their economic structure and economic, social and security objectives, which would
encourage their industries which are less competitive internationally to move
progressively into more viable lines of production or into other sectors of the economy,
thus leading to structural adjustments within the developed countries, and redeployment of
the productive capacities of such industries to developing countries and promotion of a
higher degree of utilisation of natural resources and people in the latter:
(d) Consideration by the developed countries of their policies with respect to
processed and semi processed forms of raw materials, taking full account of the interests
of the developing countries in increasing their capacities and industrial potential for
processing raw materials which they export;
(e) Increased financial contributions to international organisations and to government
or credit institutions in the developing countries in order to facilitate the promotion or
financing of industrial development. Such contributions must be completely free from any
kind of political conditions and should involve no economic conditions other than those
normally imposed on borrowers;
(f) Expanded technical assistance programmes for the benefit of the developing
countries. The assistance should be such that:
- It contributes to the development of structures for professional training and middle
management training such as institutes or centres for the training of workers, and
research laboratories;
- It contributes to the financing of integrated training programmes and scientific
research;
- It is executed and managed in the developed countries by competent organisations;
- Its effectiveness is as far as possible assured by the Governments of the developed
countries, especially as regards the quality of personnel;
- It is integrated and co-ordinated with the long-term programmes of individual developing
countries; (vi) It ensures the continuance and maintenance which are indispensable
conditions for the fulfilment and functioning of the projects;
- It is executed by personnel capable of accepting the living and working conditions in
the developing countries concerned;
(g) To encourage whenever possible their enterprises to participate in investment
projects within the framework of the development plans and programmes of the developing
programmes who so desire, to do everything legally possible to ensure that such activities
are carried out in accordance with the laws and regulations of the developing countries
concerned,
(h) Co-operation with the Governments of the developing countries, as appropriate in
order that the activities of the transnational corporations of developed countries in
developing countries are in conformity with the economic and social aims of the developing
countries;
(i) Adoption and implementation of appropriate measures for the establishment of a
favourable balance for developing countries between the production of synthetics and those
natural products of the developing countries which are in direct competition with them.
The developed countries should assist the developing countries in raising the
competitiveness of their production from natural raw materials with respect to synthetic
substances in order to achieve general progress;
(j) No State shall exercise any discriminatory measures or aggression against any other
State which decides to exercise its sovereignty over its natural resources and the
exploitation, processing and marketing of those resources.
II. Cooperation Among Developing Countries
60. At the sub-regional, regional and inter-regional levels the developing countries
should adopt the following measures:
(a) Promotion of direct trade between developing countries in order to substantially
improve the share of developing countries in international trade in finished products, to
eliminate any adverse effects resulting from triangular trade, and to establish
appropriate mechanism to that end;
(b) Creation of the necessary institutional machinery to enable consultation and
co-ordination in order to obtain better terms for the acquisition of technology,
expertise, licenses, equipment, etc., for the developing countries;
(c) The harmonization and co-ordination of economic policies, particularly in the
industrial field, and the greater utilisation of industrial complementarity, taking into
account economy of scale and specialization. This complementarity must be based primarily
on the possibilities and requirements of each country through the establishment and
strengthening of consultation machinery at the regional, sub-regional and inter-regional
levels in order that it may result in a harmonious, balanced and more rapid industrial
development in the community of developing countries;
(d) In order to accelerate the industrial development of the least developed countries
and in order to promote co-operation among developing countries, the Conference invites
the developing countries' main producers and exporters of basic raw materials to grant,
within the framework of their over-all economic policy and/or bilateral arrangements,
favourable conditions, and in particular favourable facilities for payment;
(e) Measures within the framework of systems of economic co-operation, to support the
present processes of economic integration and search for new forms of economic
co-operation with a view to contributing to a steady growth of the world economy and to
the acceleration of the development of the developing countries, notably through the
action of producers' associations of the developing countries, by means of a continuous
exchange of experience; harmonization of their actions and mobilization of support for any
of them in case of need, so as to ensure, inter alia, the solidarity for developing
countries and their full sovereignty over their natural resources;
(f) In particular, action through producers' associations with a view to putting an end
to speculative practices and erratic movements in prices, harmful to the harmonious
development of world trade and the growth of the developing countries. The developing
countries can thus use existing or future producers' associations to co-ordinate their
production and pricing policies. Furthermore, the developed countries note the intention
expressed by the developing countries to set up, among themselves, a fund, yielding
returns on the capital invested therein, designed to support the prices of raw materials
exported by developing countries and, in particular, to counteract measures aimed at
bringing down the prices of raw materials exported by the developing countries;
(g) Developing countries with sufficient financial resources accept to share in the
economic and social development efforts of the least advanced countries. For this purpose,
consideration must be given to the establishment of appropriate mechanisms for regular
consultation with a view to adopting new concrete measures;
(h) The consolidation of the relevant measures for evaluating the International
Development Strategy and the Programme of Action on the Establishment of a New
International Economic Order;
(i) Conclusion of long-term agreements on product specialization, as deemed appropriate
by the respective countries or regional economic associations, and a corresponding
allocation of production or product-sharing through industrial complementary agreements;
(j) The adoption of suitable measures and the strengthening of those now in use for the
benefit of the least developed, landlocked or island developing countries and for the
developing countries most affected by the international economic crisis and those that
have been affected by natural disasters;
(k) The sharing of experience in industrialization and technology by those who have
already acquired this know-how; together with experience in the application of legislative
machinery in the economic field in order that it may be widely known among developing
countries. This knowledge may be of greater relevance than that which is acquired from
highly developed areas. While a start has been made in co-operative arrangement, more
intensive and innovative programmes are required for transmitting relevant technology and
technical and managerial skills, particularly to the less industrialized countries within
the region, through the establishment of regional and sub-regional institutional
machinery. The experience shared should include experience in dealing with foreign
investment and trans-national corporations, with a view to harmonizing and coordinating
policies in this respect. To this effect, UNIDO should implement and expand its programme
in this area;
(l) Preference should be given by the more industrialized developing countries, as far
as possible, to imports of goods produced by the less industrialized countries Positive
policies are needed to increase intra-regional and inter-regional trade in manufactures;
(m) The creation of national, regional and inter-regional enterprises in the field of
maritime transport, capable of competing with enterprises in the developed countries and
the trans-national corporations' merchant fleets, with a view to promoting the development
of trade between developing countries, facilitating the assumptions of control of foreign
trade by national, regional or inter-regional structures and improving the export returns
of the developing countries;
(n) Strengthening regional institutions responsible for the promotion of economic
co-operation between developing countries.
III. Co-Operation Between Developing and Developed Countries
61. Co-operation between developing and developed countries should take the following
forms:
(a) Application, expansion and improvement of the schemes under the generalized system
of preferences, without discrimination and reciprocity with the incorporation in them of
new products and substantial improvement of the conditions of application;
(b) Multilateral trade negotiations within the framework of the General Agreement on
Tariffs and Trade (GATT), taking fully into account the development needs of the
developing countries, should be carried out in accordance with the basic objectives agreed
upon in the Tokyo Declaration, including securing additional benefits to the international
trade of developing countries so as to achieve a substantial increase in their foreign
exchange earnings, the diversification of their exports and the acceleration of the rate
of growth of their trade. In these negotiations, the developed countries do not expect
reciprocity for commitments made by them to reduce or remove tariff and other barriers to
the trade of developing countries, ie., the developed countries do not expect the
developing countries, in the course of the trade negotiations, to make contributions which
are inconsistent with their individual development, financial and trade needs. They
further recognise the importance of the application of the differential measures to
developing countries in ways which will provide special and more favourable treatment for
them in areas of the negotiations where this is feasible and appropriate;
(c) Recognition of the industrialization needs of the developing countries, interalia,
to achieve levels of inter-regional competitiveness in the negotiations in the
Multilateral Trade Negotiations (MTN) within the framework of GATT on the subject of
incentives to industrial production earmarked for export;
(d) Urgent consultations, taking into account appropriate information with respect to
the development of demand and supply, availability of production factors and their costs,
the possibilities and conditions of investment and the availability of appropriate
equipment and technologies, with a view to facilitating, within a dynamic context and in
accord with the authorities available to Governments, the redeployment of certain
productive capacities existing in developed countries and the creation of new industrial
facilities in developing countries. These consultations should in particular relate to
industries processing raw materials exported by developing countries or which consume vast
quantities of energy, and should result in concrete proposals for inclusion in the
development programmes of participating developing countries;
(e) Implementation of the chapter concerning industry, and consideration of the
implementation of the other pertinent provisions concerning industry, contained in the
Programme of Action on the Establishment of a new International Economic Order (General
Assembly resolution 3202 (S-VI)) and the International Development Strategy for the Second
United Nations Development Decade (General Assembly resolution 2626 -XV)). In relation to
the actual transfer of resources, the developed countries should, in particular, increase
their co-operation in order to make available to developing countries the resources
required to sustain the growth effort essential for accelerating their social and economic
development. The stated targets for transfer of resources to developing countries should
be fulfilled in the shortest possible time;
(f) The credits granted by the financing institutions of the industrialized countries
and international organisations to the developing countries must be completely free of any
kind of political conditions and should involve no economic conditions other than those
normally required of borrowers;
(g) Urgent consideration of the question of re-scheduling of debt-servicing of long
outstanding debts, their conversion, if possible, into grants, and granting of favourable
treatment to the industrial and financial requirement of the developing countries most
seriously affected by the present economic crisis;
(h) Financial resources available in some developing countries may be used for
investment in other developing countries, through bilateral arrangements and/or through
the creation of a neutral international fund. Urgent consideration should be given to the
creation of such a fund which may be financed by contributions from the developed
countries and the developing countries with available resources;
(i) In the context of international monetary reform, in which the link between
financial resources for development purposes and the allocation of special drawing rights
is being studied, urgent consideration should be given to the adoption of measures which
take account of the particular needs of developing countries. In all phases of decision
making for the formulation of a reformed monetary system, full and effective participation
of the developing countries in all bodies entrusted with this reform, particularly in the
Board of Governors of the International Monetary Fund, in accordance with the existing and
evolving rules of such bodies;
(j) The developing countries should be granted access to technological know-how and
advanced technology, whether patented or not, under fair, equitable and mutually
acceptable conditions, taking into account the specific development requirements of the
recipient countries;
(k) Appropriate measures, including consideration of the establishment of an industrial
and technological information bank, should be taken to make available a greater flow to
the developing countries of information permitting the proper selection of advanced
technologies;
(l) International conventions on patents and trademarks should be reviewed; and all
aspects of the question of their revision, including inter alia additional provisions of
special benefit to the developing countries, should be studied through the work of the
World Intellectual Property Organisation (WIPO), with appropriate contributions from
UNCTAD and other interested United Nations bodies, in order that they may become an
appropriate instrument to assist the developing countries in the transfer and development
of technology;
(m) Negotiations on the formulation of an international code of conduct for the
transfer of technology corresponding to needs and conditions prevalent in developing
countries by defining terms and conditions to enable such transactions to take place under
the most advantageous conditions for these countries;
(n) International subcontracting arrangements should be encouraged between developing
and developed countries, but such arrangements should not result in the developing
countries being assigned the least advanced and least remunerative branches of industry,
or those likely to upset the economic structure of the developing countries;
(o) The use of renewable natural resources which are in direct competition with
synthetic substitutes should be promoted, interalia, through the work of the UNCTAD
Permanent Group on Synthetics and Substitutes in order to permit increased production and
industrial processing in developing countries;
(p) A growing share of the world's research expenditure should be directed to the
development of appropriate technology of direct benefit to developing countries.
IV. The Least Developed, Land-Locked and Island Developing Countries
62. The least developed, land-locked and island developing countries present a set of
problems which require special measures if these countries are to attain an acceptable
level of economic development. Recalling General Assembly resolutions 3201 (5-VI) and 3202
(5-VI) on the Declaration and Programme of Action on the Establishment of a New
International Economic Order, industrialization in these countries must take place at a
more rapid pace than average. Concerted action and special measures of assistance from
other countries and international organisations are necessary to mobilize a greater volume
of resources to make possible the launching of innovative projects in these countries, and
the laying of a sound basis for the promotion of their industrialization through projects
and measures such as:
(a) Specific, urgent measures to establish the necessary conditions for
industrialization: infrastructures, inventories of natural resources, and the technical
and financial assistance required for the exploitation of these resources;
(b) The establishment and financing of complete industrial estates and pilot plants
based as much as possible on the use of available local resources;
(c) The creation of integrated production units such as agricultural machinery plants,
appropriate engineering industries, and repair and maintenance services;
(d) The implementation of an appropriate agrarian policy as an essential basis for the
promotion of integrated rural development schemes involving the establishment of
small-scale production units to meet both the needs of internal markets and export
requirements;
(e) The development of crafts and cottage industries including artistic crafts;
(f) Assistance for systematic studies of their industrialization potential;
(g) Speedy examination and establishment of infrastructures permitting the harnessing
and full utilisation of water resources and the establishment of agro-industries with
special emphasis on the countries affected by drought;
(h) Preferential treatment within the context of international agreements for
industrial products and processed commodities from these countries as well as the setting
up of joint enterprises under regional co-operation;
(i) Special aid and assistance to the least developed, land-locked and island
developing countries in the establishment and development of adequate means of transport
and communications;
(j) Urgent measures to increase the import and export capabilities of the least
developed countries and to help offset the disadvantages of the adverse geographic
situation of the land-locked countries, particularly with regard to their additional
transportation and transit costs;
(k) In addition to priority assistance from UNIDO and other international organisations
in all fields, additional favourable financial and technical assistance with exemption
from counterpart requirements, where appropriate, should be given to these countries
through bilateral and multilateral channels to accelerate their industrialization in
conformity with their national policies and development plans.
V. Institutional Arrangements
63. The new distribution of industrial activities envisaged in a New International
Economic Order must make it possible for all developing countries to industrialize and to
obtain an efficient instrument within the United Nations system to fulfil their
aspirations.
64. Industrialization must be pursued in such a way as to promote the global harmonious
development of the countries of the international community.
65. (a) The report of the Ad Hoc Committee on Long Range Strategy for UNIDO, the
resolutions of the sixth special session of the General Assembly, and the present
Declaration and Plan of Action shall form the basis determining the role and activities of
UNIDO;
(b) UNIDO should play a central role in the implementation of the Declaration and Plan
of Action, by initiating and co-ordinating activities within the United Nations system
aimed at achieving the objectives contained therein, as far as they fall within the
competence of UNIDO. Further, UNIDO has a crucial role in the implementation of the
Declaration and Programme of Action on the Establishment of a New International Economic
Order, adopted at the sixth special session of the General Assembly, in so far as they
relate to industrial development. To this end, the scope and functions of UNIDO need to be
extended and its organisational machinery strengthened.
66. In order to attain the above objectives, UNIDO should not only intensify and expand
its present operational activities and action-oriented studies and research programmes in
the field of industrial development but should include among its activities a system of
continuing consultations at global, regional and sectoral levels, for the purposes set
forth in paragraph 61 (d) above. UNIDO should be prepared to serve as a forum for
negotiation of agreements in the field of industry between developed and developing
countries and among developing countries themselves at the request of the countries
concerned.
67. In order to give concrete content to the process of industrialization in the
developing countries, studies must be undertaken and specific measures formulated in
different sectors of industry, special attention being given to priority sectors. Such an
approach needs to be reflected in the organisational structure of the UNIDO Secretariat,
in the committees of the Industrial Development Board which may be established for the
purpose, and in the review at ministerial level at the General Conference to be
established for the purpose, on a permanent basis.
68. In order that it may intensify and extend its activities in the manner indicated
above and play the central coordinating role in the field of industrial development within
the United Nations system, and in order to increase its ability to render assistance to
the developing countries in the most efficient way, it is essential that UNIDO's autonomy
and functions should be increased and expand substantially and that UNIDO should be
provided with the resources for this purpose.
69. For this purpose, it is recommended to the General Assembly of the United Nations
that UNIDO should be converted into a specialized agency. To this end, the
Secretary-General of the United Nations, in consultation with the Executive Director of
UNIDO, is requested to submit to the seventh special session of the General Assembly,
through the Economic and Social Council, draft statutes of a specialized agency for
industrial development.
70. In the event that the General Assembly of the United Nations at its seventh special
session should decide to transform UNIDO into a specialized agency, draft statutes of that
agency should, interalia, include:
- Industrial Development Board
- Functions In addition to the functions stipulated in General Assembly resolution 2152
(XXI) of 17 November 1966, the Industrial Development Board should be responsible for the
implementation of the decisions of the General Conference and examine and approve the
programme and budget of UNIDO;
- Membership The representation of the developing countries on the Industrial Development
Board should be increased;
- Subsidiary Organs To assist the Board in the examination of the biennial programme and
budget of UNIDO and other financial matters pertaining to UNIDO, a Programme and Budget
Committee may be established. Other technical committees may also be established by the
Board if it considers this necessary;
(b) Secretariat The number of officials from developing countries at professional and
higher levels in the Secretariat of UNIDO and in the panels of consultants that advise the
Secretariat should be increased within the desirable range of equitable geographical
distribution to be established by the Industrial Development Board, with due regard to the
need for ensuring the highest standards of efficiency, competence and integrity;
(c) General Conference In order to allow for periodic global consultations at a high
level on international co-operation for the industrial development of developing countries
and other aspects of world industry, the General Conference of UNIDO should be institutionalised. The General Conference should be convened every four years, and each
session of the Conference should decide on the date and venue of the next session. The
functions of the General Conference should be, inter alia:
- To review progress in the implementation of the present Declaration and Plan of Action;
- To examine ways and means of increasing the share of the developing countries in world
industrial output;
- To recommend policies and procedures to member Governments to facilitate co-operation
among nations in matters relating to industrial development for the benefit of the
developing countries;
- To serve as a co-ordinating mechanism to provide over-all integrated and continuing
attention for the successful co-ordination and follow-up of policies concerning industrial
production, industrial co-operation among developing countries and other related matters
by all the agencies of the United Nations family;
- To review major problems and policy issues affecting the world industrial situation and
the steps being proposed to resolve them by Governments, UNIDO, the regional economic
commissions, etc.;
- To receive reports and maintain contacts concerning the above functions through the
UNIDO Secretariat;
- To review the effectiveness of UNIDO's institutional arrangements and take appropriate
decisions on further strengthening the institutional machinery.
71. Pending the conversion of UNIDO into a specialized agency coming into effect, the
Secretary-General of the United Nations and the Executive Director of UNIDO are requested
to work out interim arrangements regarding greater autonomy of UNIDO. The Executive
Director is requested to report to the Industrial Development Board on such arrangements.
Industrial Development Fund
72. The establishment of an Industrial Development Fund is crucial to both increasing
the resources of UNIDO and enhancing its autonomy and ability to meet, promptly and
flexibly, the needs of developing countries. The Fund should be established through
voluntary contributions to UNIDO and existing voluntary funds under UNIDO's authority
would be consolidated as part of the new Fund. The terms of reference and the rules for
the functioning and administration of the Fund shall be established by the Industrial
Development Board taking full account of the Report of the Secretary-General of the United
Nations as contained in document A/9792. They should provide for sufficient flexibility so
as to increase the possibility of obtaining further voluntary contributions.
73. In particular, the Industrial Development Fund should enable UNIDO to:
- Participate in the implementation of the Declaration and Programme of Action on the
Establishment of a New International Economic Order, adopted at the sixth special session
of the General Assembly, in so far as they relate to industrial development;
- implement the recommendations of the Ad Hoc Committee on Long-Range Strategy for
UNIDO;
- Implement field projects, particularly those of non-traditional nature, with special
attention to the needs of the least developed among the developing countries, land-locked
countries and the island developing countries;
- Intensify its activities in the development and transfer of technology;
- Intensify its programmes aimed at establishing and/or intensifying cooperation among
developing countries and between developing and developed countries;
- Strengthen its promotional activities.
Relationships with the Organisations of the United Nations System
74. UNIDO should have the primary responsibility as executing agency in the field of
industrial development. To this end, UNIDO should hold consultations with UNDP with the
specific objectives of ensuring that it receives the major share of UNDP projects in the
field of industry, in accordance with the central role of UNIDO in this field.
75. In order that UNIDO should be able to fulfil effectively its central co-ordinating
role in the field of industrial development, especially with respect to the implementation
of the Programme of Action on the Establishment of a New International Economic Order,
UNIDO should hold consultations with the United Nations and with the specialized agencies
and other organisations related to industrial development. For this purpose an advisory
committee should be established composed of representatives of the secretariats of the
United Nations and of the relevant organisations of the United Nations system and chaired
by UNIDO.
The
Lima Declaration
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