We, the Heads of State and Government of seven major
industrial nations and the President of the European Commission,
have met in Naples on 8th-9th July 1994 for our 20th meeting.
We have gathered at a time of extraordinary change in the
world economy. New forms of international inter-action are
having enormous effects on the lives of our peoples and are
leading to the globalization of our economies.
50 years ago, at Bretton Woods, visionary leaders began to
build the institutions that provided our nations with two
generations of freedom and prosperity. They based their efforts
on two great and abiding principles -- democracy and open
markets.
As we approach the threshold of the 21st century, we are
conscious of our responsibility to renew and revitalize these
institutions and to take on the challenge of integrating the
newly emerging market democracies across the globe.
To carry out this responsibility, we have agreed that, in
Halifax next year, we will focus on two questions: (1) how we can
assure that the global economy of the 21st century will provide
sustainable development with good prosperity and well-being of
the peoples of our nations and the world? (2) what framework of
institutions will be required to meet these challenges in the
21st century? How can we adapt existing institutions and build
new institutions to ensure the future prosperity and security of
our people?
A year ago, recovery was absent or hesitant in all our
economies. Today, encouraging results are emerging. Recovery is
under way. New jobs have been created, and in more and more of
our countries people are getting back to work. Inflation is now
at the lowest levels in over three decades and the conditions are
in place for strong and lasting non-inflationary growth.
Therefore we reconfirm the growth strategy we agreed in Tokyo. We
call on our Finance Ministers to cooperate closely to keep
recovery on track and we have asked them to enhance the ongoing
process of multilateral surveillance and policy cooperation. We
also encourage stronger cooperation between our appropriate
authorities to respond to the growing integration of the global
capital markets.
But unemployment remains far too high, with over 24 million
unemployed in our countries alone. This is an unacceptable
waste. It is particularly damaging when -- as in many of our
countries -- it is concentrated among young people and those who
have been out of work for a long time.
Following the jobs conference in Detroit and the analysis of
the OECD we have identified the actions we need to take.
-- We will work for the growth and stability, so that business
and individuals can plan confidently for the future.
-- We will build on the present recovery by accelerating
reforms so as to improve the capacity of our economies to create
jobs.
Both of these elements are essential in order to achieve a
lasting reduction in the level of unemployment.
We will concentrate on the following structural measures.
We will:
-- increase investment in our people: through better basic
education; through improving skills; through improving the
transition from school to work; through involving employers fully
in training and -- as agreed in Detroit-- through developing a
culture of lifetime learning;
-- reduce labour rigidities which add to employment's cost or
deter job creation, eliminate excessive regulations and ensure
that indirect costs of employing people are reduced wherever
possible;
-- pursue active labour market policies that will help the
unemployed to search more effectively for jobs and ensure that
our social support systems create incentives to work;
-- encourage and promote innovation and the spread of new
technologies including, in particular, the development of an
open, competitive and integrated worldwide information
infrastructure; we agreed to convene in Brussels a meeting of our
relevant Ministers to follow up these issues;
-- pursue opportunities to promote job creation in areas where
new needs now exist, such as quality of life, and protection of
the environment;
-- promote competition, through eliminating unnecessary
regulations and through removing impediments to small and
medium-sized firms;
For the implementation of this programme we call for the
active involvement of business and labour and the support of our
people.
We are determined to press ahead with this action programme
and will review the progress made towards realizing our
objectives of sustained growth and the creation of more -- and
better quality -- new jobs.
Opening markets fosters growth, generates employment and
increases prosperity. The signing of the Uruguay Round
Agreements and the creation of the WTO are important milestones
in postwar trade liberalisation.
We are determined to ratify the Uruguay Round Agreements and
to establish the WTO by January 1st, 1995 and call on other
countries to do the same.
We are resolved to continue the momentum of trad
liberalisation. We call on the WTO, IMF, World Bank and the OECD
to cooperate within their own areas of responsibility.
On new international trade issues we encourage work under
way in the OECD to study the interaction of international trade
rules and competition policies. We support the further
development of international investment rules in order to remove
obstacles to foreign direct investment.
We welcome the work on the relation between trade and
environment in the new WTO. We call for intensified efforts to
improve our understanding of new issues including employment and
labour standards and their implications for trade policies.
In our meeting next year we will review progress on these
issues.
Environment is a top priority for international cooperation.
Environmental policies can contribute to enhancing growth,
employment and living standards, for example through investments
in appropriate technologies, energy efficiency improvements and
cleaning up polluted areas.
We urge the multilateral development banks to continue
making progress in promoting local participation and
incorporating environmental considerations into their
programmes.
We support the work of the Commission on Sustainable
Development in reviewing progress in the implementation of the
Rio process. We look forward to the implementation of the
Conventions already concluded, in particular those on biological
diversity and climate change and in this respect we will work for
the success of the forthcoming Conferences of these subjects in
Nassau and Berlin.
We welcome the restructuring and the replenishment of the
Global Environment Facility (GEF) and we support its choice as
the permanent financial mechanism of these two Conventions.
We welcome the recent conclusion of the Convention on
Desertification and the results of the Conference on Small
Islands, which add to the framework agreed in Rio.
We are determined to speed up the implementation of our
national plans called for under the Rio Climate Treaty and we
will each report what we have achieved at next year's Summit. We
also recognize the need to develop steps for the post-2000
period.
We welcome the economic progress of many developing countries. We are concerned, however, by the stagnation and continued poverty in some countries, particularly in Africa. Since rapid
population growth has aggravated poverty in many countries, we stress the importance of a positive outcome of the Cairo Conference on Population and Development.
We are committed to
continue our efforts to enhance development assistance
as
well as promoting
trade and investment in developing countries.
We are encouraged by significant private capital
flows to developing countries
and by
the efforts of many of
these countries, particularly in Latin America and Asia,
to
increase trade among themselves.
We call on the World
Bank as well as the regional development banks to
strengthen
their
efforts to reinforce private
capital flows to the developing world while
providing
growing resources for health,
education, family policies and environmental
protection.
We encourage the Paris Club to
pursue its efforts to improve the debt treatment
of the
poorest and most indebted countries.
Where appropriate, we favour a reduction
in
the stock of debt and an
increase in concessionality for those countries facing
special
difficulties.
We welcome the renewal of the ESAF and
the measures under consideration by the
IMF to increase support to
developing countries and to ensure that all members
take
part in the SDR system.
In addition we agree to explore ways to mobilize more
effectively the existing resources of the
international financial institutions
to respond
to the special needs of countries emerging
form economic and political
disruption and
the poorest most indebted countries.
In the Middle East, economic development
is essential to underpin the peace
process. Thus, along with others,
we are providing financial and technical
assistance
to the Palestinian Authority
and are working to promote cooperation and
development in the region.
We call for an end to the Arab boycott of
Israel.
We warmly welcome South Africas
transition to full democracy. This will open
new
opportunities for trade and inward
investment. We will provide further
assistance to
help strengthen economic and social development,
in particular for the poorest
groups. Not only the people of South
Africa but also her regional neighbours
have
much to gain from steady economic
policies that unlock her full potential. We
also
welcome the adjustment measures taken by the
countries in the CFA Franc area
after
the recent devaluation and prompt
support from the international community.
We welcome the progress made in the nuclear safety
programme, agreed by the Munich and Tokyo summits, concerning the
countries of Central and Eastern Europe and former Soviet
Union.
An effective framework for coordinated action is now in
place. The World Bank, working with other lending institutions
including the EBRD and the EIB, and with the IEA, is helping
countries develop long-term energy strategies. Some near-term
safety improvements are on the way. More needs to be done and
longer-term actions must be carried out. The IFIs are invited
according to their mandate to make full use of their lending
possibilities for this purpose.
We remain committed to the existing international
initiatives to promote an early closure of high risk reactors.
The closing down of the Chernobyl nuclear power plant is an
urgent priority.
We are therefore putting forward to the Ukrainian Government
an action plan for the closure of Chernobyl. This plan will
require measures to be taken by the Ukrainian authorities as well
as financial contributions from the international community.
The closure of Chernobyl would be accompanied by the early
completion of three new reactors to adequate safety standards, by
comprehensive reforms in the energy sector, increased energy
conservation and the use of other energy sources.
In this context we welcome the contribution by the European
Union. As a further step we are ready to provide for the Action
Plan an initial amount of up to US $200 million in grants,
including a replenishment of the Nuclear Safety Account for this
purpose. In addition, loans should be provided by the IFIs.
We call on other donors and international financial
institutions to join us in supporting this action plan and will
review progress regularly.
We welcome the Trilateral Statement, Ukraine's ratification
of the START I Treaty, and steps to remove nuclear weapons. We
look forward to Ukraine's accession to the NPT as a non-nuclear
weapon State.
But we are deeply concerned about the economic situation.
Genuine reform is the only way to improve the economy. We urge
the Ukrainian Government to design and implement rapidly
stabilization and structural reforms, including price
liberalization and privatization. This would provide the basis
for IMF lending and for substantial loans by the World Bank and
the EBRD. We are committed to support comprehensive reform
efforts through intensified technical and financial assistance
and by facilitating improved access to our markets for Ukrainian
products.
With a renewed commitment to comprehensive market reform,
Ukraine could gain access to international financing of over $4
billion in the course of a two-year period following the
commencement of genuine reforms.
We endorse the proposal for a conference on Partnership for
Economic Transformation in Ukraine to be held in Canada before
our next meeting.
We recognize the historical dimension of the reform process
in Russia. We are encouraged by the commitment to reform, both
political and economic, of the Russian leadership and by the
progress made so far.
The approach we endorsed in Tokyo last year is producing
results. We welcome the agreement with the IMF on an economic
programme and the recent series of loan agreements with the World
Bank and the EBRD. We encourage Russia to work with the
international financial institutions to stabilize the economy,
reinforce the reform process, and reduce social hardship.
The increases in IMF limits, provision of SDRs to new IMF
members and acceleration of World Bank lending that are now under
consideration will significantly augment the ability to support
Russian reform efforts. The recently agreed comprehensive
rescheduling of Russia's 1994 debt obligations will also help.
We continue to look to the Support Implementation Group to
help remove practical obstacles in Russia to our support
efforts.
Mobilizing domestic savings for productive use and
attracting foreign direct investment will be crucial to the
success of Russia's reforms. We therefore urge Russia to improve
the legal and institutional framework for private investment and
for external trade. We ourselves will continue to work with
Russia towards GATT membership, in order to advance Russia's
integration into the world economy and further improve access to
our markets for Russian products.
We welcome the progress made and reaffirm our support for
the reform efforts of the countries in transition.
In particular, we commend the political and economic
transformation of the Central and Eastern European Countries and
support their integration into free market.
Cooperation against transnational crime and money-laundering
We are alarmed by the growth of organized transnational
crime, including money laundering, and by the use of illicit
proceeds to take control of legitimate business. This is a
world-wide problem with countries in transition increasingly
targeted by criminal organisations. We are determined to
strengthen international cooperation to address this
situation.
We welcome the UN Conference on Organized Transnational
Crime to be held in Naples next October.
On money-laundering, we recognize the achievements of the
FATF, which we set up in 1989, and reaffirm our support for its
continued work over the next five years. In order to achieve our
goal, we agree that counter-measures need to be implemented by
FATF members and other countries with significant financial
centers. Ultimate success requires that all Governments provide
for effective measures to prevent the laundering of proceeds from
drug trafficking and other serious crime or offences which
generate a significant amount of proceeds.
We urge countries to adopt necessary legislation wherever
appropriate.
Our discussions this year have convinced us of the benefits
of a less formal Summit procedure, as we agreed in Tokyo last
year. In Naples, we have been able to have a freer exchange of
views and to forge a closer understanding between us. Next year
we look forward to an even more flexible and less formal
summit.
We have accepted the Invitation of the Prime Minister of
Canada to meet in Halifax in ... 1995.
—
This Information System is provided by the University of Toronto Libraries and the G7 Research Group at the University of Toronto.
Please send comments to:
g7@utoronto.ca
This page was last updated
August 15, 2024.
