The Lima Declaration

Andrew Phillips

March 2005

Although originating from 1975, the Lima Declaration has had far reaching effects and can clearly be seen as the blueprint for the disastrous policies embracing the bizarre philosophy known as “Globalisation”.

The Second General Conference of the United Nations Industrial Development Organisation (UNIDO) met in Lima, Peru, during the period March 12-26 1975 and the resulting declaration had disastrous ramifications for Australian industry. The basic reasoning behind the declaration was the drastic plight of the Third World was the result of the rapacious policies of the advanced industrial nations — Australia listed as one of these. The only way to rectify the situation was to transfer industrial resources from the advanced to the Third World, then to provide markets for Third World exports by buying products once produced locally.

Both major parties are equally to blame for betraying the nation. The Fraser Government took over where Whitlam left off, Hawke and Keating increased the tempo of the programme with Mssrs. Hawke, Keating, Button and other senior ministers telling unsuspecting Australians they were working to “INTERNATIONALISE” the Australian economy.

More than half of Australia’s manufacturing capacity has been destroyed since 1974 and the economic carnage continues while Australia imports vast quantities of goods once produced locally.

In 1970 estimates numbered Australian farmers at around 300,000, the number has now fallen below 125,000 with tens of thousands more in the current government’s sights.

The following are the MAIN recommendations of the Lima Declaration:

(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 industrialisation.”

(41) “That the developed countries should adhere strictly to the principle that the Generalised 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”

(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 competent bodies and share equitably in the benefits resulting therefrom”

(52) “That the 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”

In order to achieve the above “altruistic” recommendations, the Lima Declaration advocated the following Plan of Action:

(59) “The developed countries should adopt the following measures:”

(a) “Progressive elimination or reduction of tariff and non-tariff barriers and other obstacles of trade, taking into account the special characteristics of the trade of developing countries, with a view to improving the international framework of the conduct of world trade”

(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 redevelopment of the productive capacities of such industries to the 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 potentials 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

Following on from Section 59 (e) was added the following in Section 61 (g): “Urgent consideration of the question of re-scheduling of debt servicing of long outstanding debts, their conversion, if possible, into grants and granting favourable treatment to the industrial and financial requirement of the developing countries most seriously affected by the present economic crisis”

Clearly, Australian workers are just the sacrificial offering upon the alter of economic rationalism to the bizarre cult of globalisation. It is recommended that all those at risk take time to investigate GATS and other international agreements regarding trade — before it’s too late.

Articles by Andrew Phillips