Introduction

2.1 In order to confront the challenge of environment and development, States decided to establish a new 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. It is recognised that, for the success of this new partnership, it is important to overcome confrontation and to foster a climate of genuine co-operation and solidarity. It is equally important to strengthen national and international policies and multilateral co-operation 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 co-operation 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 liberalisation;

(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 recognise 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.