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                  AGENDA 21, CHAPTER 1


                        PREAMBLE



NOTE:     This is a final, advanced version of a chapter of
          Agenda 21, as adopted by the Plenary in Rio de
          Janeiro, on June 14, 1992.  This document will be
          further edited, translated into the official
          languages, and published by the United Nations
          for the General Assembly this autumn.


1.1.  Humanity stands at a defining moment in history.  We
are confronted with a perpetuation of disparities between
and within nations, a worsening of poverty, hunger, ill
health and illiteracy, and the continuing deterioration of
the ecosystems on which we depend for our well-being.
However, integration of environment and development
concerns and greater attention to them will lead to the
fulfilment of basic needs, improved living standards for
all, better protected and managed ecosystems and a safer,
more prosperous future.  No nation can achieve this on its
own; but together we can - in a global partnership for
sustainable development.

1.2.  This global partnership must build on the premises of
General Assembly resolution 44/228 of 22 December 1989,
which was adopted when the nations of the world called for
the United Nations Conference on Environment and
Development, and on the acceptance of the need to take a
balanced and integrated approach to environment and
development questions.

1.3.  Agenda 21 addresses the pressing problems of today
and also aims at preparing the world for the challenges of
the next century.  It reflects a global consensus and
political commitment at the highest level on development
and environment cooperation.  Its successful implementation
is first and foremost the responsibility of Governments. 1/
National strategies, plans, policies and processes are
crucial in achieving this.  International cooperation
should support and supplement such national efforts.  In
this context, the United Nations system has a key role to
play.  Other international, regional and subregional
organizations are also called upon to contribute to this
effort.  The broadest public participation and the active
involvement of the non-governmental organizations and other
groups should also be encouraged.

1.4.  The developmental and environmental objectives of
Agenda 21 will require a substantial flow of new and
additional financial resources to developing countries, in
order to cover the incremental costs for the actions they
have to undertake to deal with global environmental
problems and to accelerate sustainable development.
Financial resources are also required for strengthening the
capacity of international institutions for the
implementation of Agenda 21.  An indicative order of
magnitude assessment of costs is included in each of the
programme areas.  This assessment will need to be examined
and refined by the relevant implementing agencies and
organizations.

1.5.  In the implementation of the relevant programme areas
identified in Agenda 21, special attention should be given
to the particular circumstances facing the economies in
transition.  It must also be recognized that these
countries are facing unprecedented challenges in
transforming their economies, in some cases in the midst of
considerable social and political tension.

1.6.  The programme areas that constitute Agenda 21 are
described in terms of the basis for action, objectives,
activities and means of implementation.  Agenda 21 is a
dynamic programme.  It will be carried out by the various
actors according to the different situations, capacities
and priorities of countries and in full respect of all the
principles contained in the Rio Declaration on Environment
and Development.  It could evolve over time in the light of
changing needs and circumstances.  This process marks the
beginning of a new global partnership for sustainable
development.

1.7.  Throughout Agenda 21 the term "environmentally sound"
means "environmentally safe and sound", in particular when
applied to the terms "energy sources", "energy supplies",
"energy systems", or "technology/technologies".



                          Notes

     1/   When the term Governments is used, it will be
deemed to include the European Economic Community within
its areas of competence.


                  AGENDA 21, CHAPTER 2


       SECTION I.  SOCIAL AND ECONOMIC DIMENSIONS


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



NOTE:     This is a final, advanced version of a chapter of
          Agenda 21, as adopted by the Plenary in Rio de
          Janeiro, on June 14, 1992.  This document will be
          further edited, translated into the official
          languages, and published by the United Nations
          for the General Assembly this autumn.


                      INTRODUCTION


2.1.  In order to meet the challenges of environment and
development, States 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 entitled "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


2.31.  See Chapter 33.


 D.  Encouraging economic policies conducive to sustainable
               development

Basis for action

2.32.  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.

2.33.  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.

2.34.  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

2.35.  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

2.36.  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.

2.37.  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.

2.38.  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

2.39.  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.

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

2.41.  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

2.42.  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

2.43.  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.

2.44.  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.


                         * * * *

                  AGENDA 21, CHAPTER 3


                    COMBATING POVERTY


NOTE:     This is a final, advanced version of a chapter of
          Agenda 21, as adopted by the Plenary in Rio de
          Janeiro, on June 14, 1992.  This document will be
          further edited, translated into the official
          languages, and published by the United Nations
          for the General Assembly this autumn.


                     PROGRAMME AREA

  Enabling the poor to achieve sustainable livelihoods

Basis for action

3.1. Poverty is a complex multidimensional problem with
origins in both the national and international domains.  No







Jul 13 15:18 1992  (cdp) en.unced.documents Page 20


uniform solution can be found for global application.
Rather, country-specific programmes to tackle poverty and
international efforts supporting national efforts, as well
as the parallel process of creating a supportive
international environment, are crucial for a solution to
this problem.  The eradication of poverty and hunger,
greater equity in income distribution and human resource
development remain major challenges everywhere.  The
struggle against poverty is the shared responsibility of
all countries.

3.2. While managing resources sustainably, an environmental
policy that focuses mainly on the conservation and
protection of resources must take due account of those who
depend on the resources for their livelihoods.  Otherwise
it could have an adverse impact both on poverty and on
chances for long-term success in resource and environmental
conservation.  Equally, a development policy that focuses
mainly on increasing the production of goods without
addressing the sustainability of the resources on which
production is based will sooner or later run into declining
productivity, which could also have an adverse impact on
poverty.  A specific anti-poverty strategy is therefore one
of the basic conditions for ensuring sustainable
development.  An effective strategy for tackling the
problems of poverty, development and environment
simultaneously should begin by focusing on resources,
production and people and should cover demographic issues,
enhanced health care and education, the rights of women,
the role of youth and of indigenous people and local
communities and a democratic participation process in
association with improved governance.

3.3. Integral to such action is, together with
international support, the promotion of economic growth in
developing countries that is both sustained and sustainable
and direct action in eradicating poverty by strengthening
employment and income-generating programmes.

Objectives

3.4. The long-term objective of enabling all people to
achieve sustainable livelihoods should provide an
integrating factor that allows policies to address issues
of development, sustainable resource management and poverty
eradication simultaneously.  The objectives of this
programme area are:

    (a) To provide all persons urgently with the
opportunity to earn a sustainable livelihood;


    (b) To implement policies and strategies that promote
adequate levels of funding and focus on integrated human
development policies, including income generation,
increased local control of resources, local







Jul 13 15:18 1992  (cdp) en.unced.documents Page 21


institution-strengthening and capacity-building and greater
involvement of non-governmental organizations and local
levels of government as delivery mechanisms;

    (c) To develop for all poverty-stricken areas
integrated strategies and programmes of sound and
sustainable management of the environment, resource
mobilization, poverty eradication and alleviation,
employment and income generation;

    (d) To create a focus in national development plans and
budgets on investment in human capital, with special
policies and programmes directed at rural areas, the urban
poor, women and children.

Activities

3.5.  Activities that will contribute to the integrated
promotion of sustainable livelihoods and environmental
protection cover a variety of sectoral interventions
involving a range of actors, from local to global, and are
essential at every level, especially the community and
local levels.  Enabling actions will be necessary at the
national and international levels, taking full account of
regional and subregional conditions to support a locally
driven and country-specific approach.  In general design,
the programmes should:

    (a) Focus on the empowerment of local and community
groups through the principle of delegating authority,
accountability and resources to the most appropriate level
to ensure that the programme will be geographically and
ecologically specific;

    (b) Contain immediate measures to enable those groups
to alleviate poverty and to develop sustainability;

    (c) Contain a long-term strategy aimed at establishing
the best possible conditions for sustainable local,
regional and national development that would eliminate
poverty and reduce the inequalities between various
population groups.  It should assist the most disadvantaged
groups - in particular, women, children and youth within
those groups - and refugees.  The groups will include poor
smallholders, pastoralists, artisans, fishing communities,
landless people, indigenous communities, migrants and the
urban informal sector.

3.6.  The focus here is on specific cross-cutting measures
- in particular, in the areas of basic education,
primary/maternal health care, and the advancement of women.

(a) Empowering communities

3.7.  Sustainable development must be achieved at every
level of society.  Peoples' organizations, women's groups







Jul 13 15:18 1992  (cdp) en.unced.documents Page 22


and non-governmental organizations are important sources of
innovation and action at the local level and have a strong
interest and proven ability to promote sustainable
livelihoods.  Governments, in cooperation with appropriate
international and non-governmental organizations, should
support a community-driven approach to sustainability,
which would include, inter alia:

    (a) Empowering women through full participation in
decision-making;

    (b) Respecting the cultural integrity and the rights of
indigenous people and their communities;

    (c) Promoting or establishing grass-roots mechanisms to
allow for the sharing of experience and knowledge between
communities;

    (d) Giving communities a large measure of participation
in the sustainable management and protection of the local
natural resources in order to enhance their productive
capacity;

    (e) Establishing a network of community-based learning
centres for capacity-building and sustainable development.

(b) Management-related activities

3.8.  Governments, with the assistance of and in
cooperation with appropriate international,
non-governmental and local community organizations, should
establish measures that will directly or indirectly:

    (a) Generate remunerative employment and productive
occupational opportunities compatible with country-specific
factor endowments, on a scale sufficient to take care of
prospective increases in the labour force and to cover
backlogs;

    (b) With international support, where necessary,
develop adequate infrastructure, marketing systems,
technology systems, credit systems and the like and the
human resources needed to support the above actions and to
achieve a widening of options for resource-poor people.
High priority should be given to basic education and
professional training;

    (c) Provide substantial increases in economically
efficient resource productivity and measures to ensure that
the local population benefits in adequate measure from
resource use;

    (d) Empower community organizations and people to
enable them to achieve sustainable livelihoods;

    (e) Set up an effective primary health care and







Jul 13 15:18 1992  (cdp) en.unced.documents Page 23


maternal health care system accessible to all;

    (f) Consider strengthening/developing legal frameworks
for land management, access to land resources and land
ownership - in particular, for women - and for the
protection of tenants;

    (g) Rehabilitate degraded resources, to the extent
practicable, and introduce policy measures to promote
sustainable use of resources for basic human needs;

    (h) Establish new community-based mechanisms and
strengthen existing mechanisms to enable communities to
gain sustained access to resources needed by the poor to
overcome their poverty;

    (i) Implement mechanisms for popular participation -
particularly by poor people, especially women - in local
community groups, to promote sustainable development;

    (j) Implement, as a matter of urgency, in accordance
with country-specific conditions and legal systems,
measures to ensure that women and men have the same right
to decide freely and responsibly on the number and spacing
of their children and have access to the information,
education and means, as appropriate, to enable them to
exercise this right in keeping with their freedom, dignity
and personally held values, taking into account ethical and
cultural considerations.  Governments should take active
steps to implement programmes to establish and strengthen
preventive and curative health facilities, which include
women-centred, women-managed, safe and effective
reproductive health care and affordable, accessible
services, as appropriate, for the responsible planning of
family size, in keeping with freedom, dignity and
personally held values, taking into account ethical and
cultural considerations.  Programmes should focus on
providing comprehensive health care, including pre-natal
care, education and information on health and responsible
parenthood and should provide the opportunity for all women
to breast-feed fully, at least during the first four months
post-partum.  Programmes should fully support women's
productive and reproductive roles and well-being, with
special attention to the need for providing equal and
improved health care for all children and the need to
reduce the risk of maternal and child mortality and
sickness;

    (k) Adopt integrated policies aiming at sustainability
in the management of urban centres;

    (l) Undertake activities aimed at the promotion of food
security and, where appropriate, food self-sufficiency
within the context of sustainable agriculture;

    (m) Support research on and integration of traditional







Jul 13 15:18 1992  (cdp) en.unced.documents Page 24


methods of production that have been shown to be
environmentally sustainable;

    (n) Actively seek to recognize and integrate
informal-sector activities into the economy by removing
regulations and hindrances that discriminate against
activities in those sectors;

    (o) Consider making available lines of credit and other
facilities for the informal sector and improved access to
land for the landless poor so that they can acquire the
means of production and reliable access to natural
resources.  In many instances special considerations for
women are required.  Strict feasibility appraisals are
needed for borrowers to avoid debt crises;

    (p) Provide the poor with access to fresh water and
sanitation;

    (q) Provide the poor with access to primary education.

(c) Data, information and evaluation

3.9.  Governments should improve the collection of
information on target groups and target areas in order to
facilitate the design of focused programmes and activities,
consistent with the target-group needs and aspirations.
Evaluation of such programmes should be gender-specific,
since women are a particularly disadvantaged group.

(d) International and regional cooperation and coordination

3.10.  The United Nations system, through its relevant
organs, organizations and bodies, in cooperation with
Member States and with appropriate international and
non-governmental organizations, should make poverty
alleviation a major priority and should:

    (a) Assist Governments, when requested, in the
formulation and implementation of national action
programmes on poverty alleviation and sustainable
development.  Action-oriented activities of relevance to
the above objectives, such as poverty eradication, projects
and programmes supplemented where relevant by food aid, and
support and special emphasis on employment and income
generation, should be given particular attention in this
regard;

    (b) Promote technical cooperation among developing
countries for poverty eradication activities;

    (c) Strengthen existing structures in the United
Nations system for coordination of action relating to
poverty eradication, including the establishment of a focal
point for information exchange and the formulation and
implementation of replicable pilot projects to combat







Jul 13 15:18 1992  (cdp) en.unced.documents Page 25


poverty;

    (d) In the follow-up of the implementation of
Agenda 21, give high priority to the review of the progress
made in eradicating poverty;

    (e) Examine the international economic framework,
including resource flows and structural adjustment
programmes, to ensure that social and environmental
concerns are addressed, and in this connection, conduct a
review of the policies of international organizations,
bodies and agencies, including financial institutions, to
ensure the continued provision of basic services to the
poor and needy;

    (f) Promote international cooperation to address the
root causes of poverty.  The development process will not
gather momentum if 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 in developing
countries remain depressed.

Means of implementation

(a) Financing and cost evaluation
3.11.  The Conference secretariat has estimated the average
total annual cost (1993-2000) of implementing the
activities of this programme to be about $30 billion
including about $15 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.  This estimate overlaps
estimates in other parts of Agenda 21.  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

3.12.  National capacity-building for implementation of the
above activities is crucial and should be given high
priority.  It is particularly important to focus
capacity-building at the local community level in order to
support a community-driven approach to sustainability and
to establish and strengthen mechanisms to allow sharing of
experience and knowledge between community groups at
national and international levels.  Requirements for such
activities are considerable and are related to the various
relevant sectors of Agenda 21 calling for requisite
international, financial and technological support.

                         * * * *

                  AGENDA 21, CHAPTER 4


              CHANGING CONSUMPTION PATTERNS



NOTE:          This is a final, advanced version of a
               chapter of Agenda 21, as adopted by the
               Plenary in Rio de Janeiro, on June 14, 1992.
               This document will be further edited,
               translated into the official languages, and
               published by the United Nations for the
               General Assembly this autumn.


4.1.  This chapter contains the following programme areas:

     (a)  Focusing on unsustainable patterns of production and
consumption;

     (b)  Developing national policies and strategies to
encourage changes in unsustainable consumption patterns.

4.2.  Since the issue of changing consumption patterns is very
broad, it is addressed in several parts of Agenda 21, notably
those dealing with energy, transportation and wastes, and in the
chapters on economic instruments and the transfer of technology.
The present chapter should also be read in conjunction with
chapter 5 (Demographic dynamics and sustainability).








Jul 13 15:18 1992  (cdp) en.unced.documents Page 27



                        PROGRAMME AREAS

 A.  Focusing on unsustainable patterns of production
                  and consumption

Basis for action

4.3.  Poverty and environmental degradation are closely
interrelated.  While poverty results in certain kinds of
environmental stress, the major cause of the continued
deterioration of the global environment is the unsustainable
pattern of consumption and production, particularly in
industrialized countries, which is a matter of grave concern,
aggravating poverty and imbalances.

4.4.  Measures to be undertaken at the international level for
the protection and enhancement of the environment must take fully
into account the current imbalances in the global patterns of
consumption and production.

4.5.  Special attention should be paid to the demand for natural
resources generated by unsustainable consumption and to the
efficient use of those resources consistent with the goal of
minimizing depletion and reducing pollution.  Although
consumption patterns are very high in certain parts of the world,
the basic consumer needs of a large section of humanity are not
being met.  This results in excessive demands and unsustainable
lifestyles among the richer segments, which place immense stress
on the environment.  The poorer segments, meanwhile, are unable
to meet food, health care, shelter and educational needs.
Changing consumption patterns will require a multipronged
strategy focusing on demand, meeting the basic needs of the poor,
and reducing wastage and the use of finite resources in the
production process.

4.6.  Growing recognition of the importance of addressing
consumption has also not yet been matched by an understanding of
its implications.  Some economists are questioning traditional
concepts of economic growth and underlining the importance of
pursuing economic objectives that take account of the full value
of natural resource capital.  More needs to be known about the
role of consumption in relation to economic growth and population
dynamics in order to formulate coherent international and
national policies.

Objectives

4.7.  Action is needed to meet the following broad objectives:

     (a)  To promote patterns of consumption and production that
reduce environmental stress and will meet the basic needs of
humanity;

     (b)  To develop a better understanding of the role of
consumption and how to bring about more sustainable consumption







Jul 13 15:18 1992  (cdp) en.unced.documents Page 28


patterns.

Activities

(a)  Management-related activities

     Adopting an international approach to achieving sustainable
     consumption patterns

4.8.  In principle, countries should be guided by the following
basic objectives in their efforts to address consumption and
lifestyles in the context of environment and development:

     (a)  All countries should strive to promote sustainable
consumption patterns;

     (b)  Developed countries should take the lead in achieving
sustainable consumption patterns;

     (c)  Developing countries should seek to achieve sustainable
consumption patterns in their development process, guaranteeing
the provision of basic needs for the poor, while avoiding those
unsustainable patterns, particularly in industrialized countries,
generally recognized as unduly hazardous to the environment,
inefficient and wasteful, in their development processes.  This
requires enhanced technological and other assistance from
industrialized countries.

4.9.  In the follow-up of the implementation of Agenda 21 the
review of progress made in achieving sustainable consumption
patterns should be given high priority.

(b)  Data and information

     Undertaking research on consumption

4.10.  In order to support this broad strategy, Governments,
and/or private research and policy institutes, with the
assistance of regional and international economic and
environmental organizations, should make a concerted effort to:

     (a)  Expand or promote databases on production and
consumption and develop methodologies for analysing them;

     (b)  Assess the relationship between production and
consumption, environment, technological adaptation and
innovation, economic growth and development, and demographic
factors;

     (c)  Examine the impact of ongoing changes in the structure
of modern industrial economies away from material-intensive
economic growth;

     (d)  Consider how economies can grow and prosper while
reducing the use of energy and materials and the production of
harmful materials;







Jul 13 15:18 1992  (cdp) en.unced.documents Page 29



     (e)  Identify balanced patterns of consumption worldwide
which the Earth can support in the long term.

     Developing new concepts of sustainable economic growth and
     prosperity

4.11.  Consideration should also be given to the present concepts
of economic growth and the need for new concepts of wealth and
prosperity which allow higher standards of living through changed
lifestyles and are less dependent on the Earth's finite resources
and more in harmony with the Earth's carrying capacity.  This
should be reflected in the evolution of new systems of national
accounts and other indicators of sustainable development.

(c)  International cooperation and coordination

4.12.  While international review processes exist for examining
economic, development and demographic factors, more attention
needs to be paid to issues related to consumption and production
patterns and sustainable lifestyles and environment.

4.13.  In the follow-up of the implementation of Agenda 21,
reviewing the role and impact of unsustainable production and
consumption patterns and lifestyles and their relation to
sustainable development should be given high priority.

Financing and cost evaluation

4.14.  The Conference secretariat has estimated that
implementation of this programme is not likely to require
significant new financial resources.

  B.  Developing national policies and strategies to encourage
              changes in unsustainable consumption patterns

Basis for action

4.15.  Achieving the goals of environmental quality and
sustainable development will require efficiency in production and
changes in consumption patterns in order to emphasize
optimization of resource use and minimization of waste.  In many
instances, this will require reorientation of existing production
and consumption patterns that have developed in industrial
societies and are in turn emulated in much of the world.

4.16.  Progress can be made by strengthening positive trends and
directions that are emerging, as part of a process aimed at
achieving significant changes in the consumption patterns of
industries, Governments, households and individuals.

Objectives

4.17.  In the years ahead, Governments, working with appropriate
organizations, should strive to meet the following broad
objectives:







Jul 13 15:18 1992  (cdp) en.unced.documents Page 30



     (a)  To promote efficiency in production processes and
reduce wasteful consumption in the process of economic growth,
taking into account the development needs of developing
countries;

     (b)  To develop a domestic policy framework that will
encourage a shift to more sustainable patterns of production and
consumption;

     (c)  To reinforce both values that encourage sustainable
production and consumption patterns and policies that encourage
the transfer of environmentally sound technologies to developing
countries.

Activities

(a)  Encouraging greater efficiency in the use of energy and
     resources

4.18.  Reducing the amount of energy and materials used per unit
in the production of goods and services can contribute both to
the alleviation of environmental stress and to greater economic
and industrial productivity and competitiveness.  Governments, in
cooperation with industry, should therefore intensify efforts to
use energy and resources in an economically efficient and
environmentally sound manner by:

     (a)  Encouraging the dissemination of existing
environmentally sound technologies;