FOR MEDIA 23 JULY 1981
DECLARATION OF THE OTTAWA SUMMIT
The Government welcomes the willingness of the members
of the Ottawa Summit to participate in preparations for
global negotiations, and their agreement on the need for
constructive and substantive discussions between developed
and developing countries.
By its recognition of the reality of interdependence and of
common interests, its commitment to substantial assistance,
and its awareness of the need to increase public
understanding of the need for aid, the Ottawa Summit has
made a promising contribution to ending the stalemate which
has for too long hindered progress on the North-South issue.
The Ottawa Declaration clearly opens the prospects for
more constructive meetings later this year in Cancun and
also in Melbourne.
DECLARATION OF THE OTTAWA SUMMIT ( UNDERLINED)
WE HAVE MET AT A TIME OF RAPID CHANGE AND GkEAT CHALLENGE
WORLD ECONOMIC PROGRESS AND PEACE. OUR MEETING HAS SERVED TO
-REINFORCE THE STRENGTH OF OUR COMMON BONDS. WE ARE CONSCIOUS THAT
ECONOMIC ISSUES REFLECT AND AFFECT THE BROADER POLITICAL PURPOSES WE
SHARE. IN A WORLD OF INTERDEPENDENCE, WE REAFFIRM OUR COMMON
OBJECTIVES AND OUR RECOGNITION OF THE NEED TO TAKE INTO ACCOUINT THE
EFFECTS ON OTHERS OF POLICIES WE PURSUE. WE ARE CONFIDENT IN OUR
JOINT DETERMINATION AND ABILITY TO TACKLE OUR PROBLEMS IN A SPIRIT OF
SHARED RESPONSIBILITY, BOTH AMONG OURSELVES AND WITH OUR PARTNERS
THROUGHOUT THE WORLD.
THE ECONOMY ( UNDERLINED)
2. THE PRIMARY CHALLENGE WE ADDRESSED AT THIS MEETING WAS THE NEED
TO REVITALIZE THE ECONOMIES OF THE INDUSTRIAL DEMOCRACIES, TO MEET
THE NEEDS OF OUR OWN PEOPLE AND STRENGTHEN WORLD PROSPERITY.
3. SINCE THE VENICE SUMMIT THE AVERAGE RATE OF INFLATION IN OUR
COUNTRIES HAS FALLEN, ALTHOUGH IN FOUR OF THEM INFLACTION REMAINS IN
DOUBLE FIGURES. IN MANY COUNTRIES UNEMPLOYMENT HAS RISEN SHARPLY AND
IS STILL RISING. THERE IS A PROSPECT OF MODERATE ECONOMIC GROWT1H 114
THE COMING YEAR BUT' AT PRESENT IT PROMISES LITTLE EARLY RELIEF FROM
UNEMPLOYMENT. THE LARGE PAYMENTS DEFICITS ORIGINATING IN THE 15179-80
OIL PRICE INCREASE HAVE SO FAR BEEN FINANCED WITHOUT IMPOSING
INTOLERABLE ADJUSTMENT BURDENS BUT ARE LIKELY TO PERSIST FOR SOME
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T IME INTEREST RATES HAVE REACHED RECORD LEVELS IN MANdY COUNIhIES
A1ND, IF LONG SUSTAINED AT THESE LEVELS, WOULD THREAlLN PRODLICi lVi:
INVESTMENT. 4. THE FIGHT TO BRING DOWN INFLATION AND REDUCE UNEMPLOYMENT MUST BE
OUR HIGHEST PRIORITY AND THESE LINKED PROBLEMS MUST BE TACKLED AT THE
SAME TIME. WE MUST CONTINUE TO REDUCE INFLATION IF WE ARE TO SECURE
THE HIGHER INVESTMENT AND SUSTAINABLE GROWTH ON WHICH THE DURABLE
RECOVERY OF EMPLOYMENT DEPENDS. THE BALANCED USE OF A RANGE OF
POLICY INSTRUMENTED. WE MUST INVOLVE OUR PEOPLES IN A GREATER
APPRECIATION OF THE NEED FOR CHANGE: CHANGE IN EXPECTATIONS ABOUT
GROWTH AND EARNINGS, CHANGE IN MANAGEMENT AND LABOUR RELATIONS AND
PRACTICES, CHANGE IN THE PATTERN OF INDUSTRY, CHANGE IN THE DIRECTION
AND SCALE OF INVESTMENT, AND CHANGE IN ENERGY USE AND SUPPLY.
WE NEED IN MOST COUNTRIES URGENTLY TO REDUCE PUE: LICE BORROWING.,
WHERE OUR CIRCUMSTANCES PERMIT OR WE ARE ABLE TO MAKE CHANGES WITHIN
THE LIMITS OF OUR BUDGETS, WE WILL INCREASE SUPPORT FOR PRODUCTIVE
INVESTMENT AND INNOVATION. WE MUST ALSO ACCEPT THE ROLE OF THE
MARKET IN OUR ECONOMIES. WE MUST NOT LET TRANSITIONAL MEASURES THAT
MAY BE NEEDED TO EASE CHANGE BECOME PERMANENT FORMS OF PROTECTION OR
SUBSIDY. 16. WE SEE LOW AND STABLE MONETARY GROWTH AS ESSENTIAL TO REDUCING
INFLATION. INTEREST RATES HAVE TO PLAY THEIR PART IN ACHIEVING THIS
AND ARE LIKELY TO REMAIN HIGH WHERE FEARS OF INFLATION REMAIN STRONG.
BUT WE ARE FULLY AWARE THAT LEVELS AND MOVEMENTS OF INTEREST RATES IN
ONCE COUNTRY CAN MAKE STABILIZATION POLICIES MORE DIFFICULT IN OTHER
COUNTRIES BY INFLUENCING THEIR EXCHANGE RATES AND THEIR ECONOMIES.
FOR THESE REASONS, MOST OF US NEED ALSO TO RELY ON CONTAINMENT OF
BUDGETARY DEFICITS, BY MEANS OF RESTRAINT IN GOVERNMENT EXPENDITURES
' AS NECESSARY. IT IS ALSO HIGHLY DESIRABLE TO MINIMIZE VOLATILITY OF
INTEREST RATES AND EXCHANGE RATES., GREATER STABILITY IN FOREIGN
EXCHANGE AND FINANCIAL MARKETS IS IMPORTANT FOR THE SOUND DEVELOPMENT
' OF THE WORLD ECONOMY.
7. IN A WORLD OF STRONG CAPITAL-FLOWS AND LARGE DEFICITS IT IS IN
THE INTERESTS OF ALL THAT THE FINANCIAL SOUNDNESS OF THE
INTERNATIONAL BANKING SYSTEM AND THE INTERNATIONAL FINANCIAL
INSTITUTIONS BE FULLY MAINTAINED. WE WELCOME THE RECENTLY EXPANDED
ROLE OF THE IMF IN FINANCING PAYMENTS DEFICITS ON TERMS WHICH
ENCOURAGE NEEDED ADJUSTMENT.
8. IN SHAPING OUR LONG TERM ECONOMIC POLICIES, CARE SHOULD BE TAKEN
TO PRESERVE THE ENVIRONMENT AND THE RESOURCE BASE OF OUR PLANET.
RELATIONS WITH DEVELOPING COUNTRIES ( UNDERLINED)
9. WE SUPPORT THE STABILITY, INDEPENDENCE AND GENUINE NON-ALIGNMENT
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OF DEVELOPING COUNTRIES AND REAFFIRM OUR COMMITMENT 10 COOPERAlE W! W
THEM IN A SPIRIT OF MUTUAL INTEREST, RESPECT AND BtINEF IT, RECOCU] ZIN( B
, THE REALITY OF OUR INTERDEPENDENCE.
IT IS IN OUR INTEREST AS WELL AS IN THEIRS THAT THE DEVELOPING
COUNTRIES SHOULD GROW AND FLOURISH AND PLAY A FULL PART IN THE
INTERNATIONAL ECONOMIC. SYSTEM COMMENSURATE WITH THEIR CAPABILITIES
AND RESPONSIBILITIES AND BECOME MORE CLOSELY INTEGRATED IN IT.
11. WE LOOK FORWARD TO CONSTRUCTIVE AND SUBSTANTIVE DISCUSSION. S W! ITH
THEM, AND BELIEVE THE CANCUN SUMMIT OFFERS AND EARLY OPPORTUNITY TO
ADDRESS OUR COMMON PROBLEMS ANEW.
12. WE REAFFIRM OUR WILLINGNESS TO EXPLORE ALL AVENUES OF
CONSULTATION AND COOPERATION WITH DEVELOPING COUNTRIES IN WHATEVE7R
FORUMS MAY BE APPROPRIATE. WE ARE READY TO PARTICIPATE IN
PREPARATIONS FOR A MUTUALLY ACCEPTABLE PROCESS OF GLOBAL NEGOTIATIONS
IN CIRCUMSTANCES OFFERING THE PROSPECT OF MEANINGFUL PROGRESS.
13. WHILE GROWTH HAS BEEN STRONG IN MOST MIDDLE INCOME DEVELOPING
COUNTRIES, WE ARE DEEPLY CONSCIOUS OF THE SERIOUS ECONOMIC PROBLEMS
IN MANY DEVELOPING COUNTRIES, AND THE GRIM POVERTY FACED ESPECIALLY
BY THE POORER AMONG THEM. WE REMAIN READY TO SUPPORT THE DEVELOPING
COUNTRIES IN THE EFFORTS THEY MAKE TO PROMOTE THEIR ECONOMIC AND
SOCIAL DEVELOPMENT WITHIN THE FRAMEWORK OF THEIR OWN SOCIAL VALUES
AND TRADITIONS. THESE EFFORTS ARE VITAL TO THEIR SUCCESS.
14. WE ARE COMMITTED TO MAINTAINING SUBSTANTIAL AND, IN MANY CASES,
GROWING LEVELS OF OFFICIAL DEVELOPMENT ASSISTANCE AND WILL SEEK T O
INCREASE PUBLIC UNDERSTANDING OF ITS IMPORTANCE,. WE WILL DIRECT THE
MAJOR PORTION OF OUR AID TO POORER COUNTRIES, AND WILL PARTICIPATE
ACTIVELY IN THE UNITED NATIONS CONFERENCE ON THE LEAST DEVELOPED
COUNTRI ES.
WE POINT OUT THAT THE STRENGTHENING OF OUR OWN ECONOMIES,
INCREASING ACCESS TO OUR MARKETS, AND REMOVING IMPEDIMENTS TO CAPITAL
FLOWS CONTRIBUTE LARGER AMOUNTS OF NEEDED RESOURCES AND TECHNOLOG3Y
AND THEREBY COMPLEMENT OFFICIAL AID. THE FLOW OF PRIVATE CAPITAL
WILL BE FURTHER ENCOURAGED IN SO FAR AS THE DEVELOPING COUNTRIES
THEMSELVES PROVIDE ASSURANCES FOR THE PROTECTION AND SECURITY OF
INVESTMENTS. 1L. THE SOVIET UNION AND ITS PARTNERS, WHOSE CONTRIBUTIONS ARE
MEAGRE, SHOULD MAKE MORE DEVELOPMENT ASSISTANCE AVAILAB: LE, AND TAVE A
GREATER SHARE OF EXPORTS OF DEVELOPING COUNTRIES, WHILE RESPECTING6
THEIR INDEPENDENCE AND NON-ALIGNMENT.
17. WE WILL MAINTAIN A STRONG COMMITMENT TO THE INTERNATIONAL
FINANCIAL INSTITUTIONS AND WORK TO ENSURE THAT THEY HAVE, AND USE
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EFF ECl IVEL Y, 1 HE FI NANC IAL. RESOUR CES FOR T HE IR I MPORT ANT
RESPONSIBIL ITIES.
18. WE ATTACH HIGH PRIORITY TO THE RESOLUTION OF THE PROBLEMS
CREATED FOR THE NON-OIL DEVELOPING COUNTRIES BY THE DAMAGING EFFECTS
ON THEM OF HIGH COST OF ENERGY IMPORTS FOLLOWING THE TWO OIL PRICE
SHOCKS. WE CALL ON THE SURPLUS OIL-EXPORTING COUNTRIES TO BROADEN
THEIR VALUABLE EFFORTS TO.-FINANCE DEVELOPMENT IN NON-OIL DEVELOPING
COUNTRIES, ESPECIALLY IN THE FIELD OF ENERGY. WE STAND READY TO
COOPERATE WITH THEM FOR THIS PURPOSE AND TO EXPLORE WITH THEM, IN A
SPIRIT OF PARNTERSHIP, POSSIBLE MECHANISMS, SUCH AS THOSE BEING
EXAMINED IN THE WORLD BANK, WHICH WOULD TAKE DUE ACCOUNT OF THE
IMPORTANCE OF THEIR FINANCIAL CONTRIBUTIONS.
19. WE RECOGNIZE THE IMPORTANCE OF ACCELERATED FOOD PRODUCTION IN
THE DEVELOPING WORLD AND OF GREATER WORLD FOOD SECURITY, AND THE NEED
FOR DEVELOPING COUNTRIES TO PURSUE SOUND AGRICULTURAL AND FOOD
POLICIES., WE WILL EXAMINE WAYS TO MAKE INCREASED RESOURCES AVAILAEI-E
FOR THESE PURPOSES. WE NOTE THAT THE ITALIAN GOVERNMENT HAS IN MINI)
TO DISCUSS WITHIN THE EUROPEAN COMMUNITY PROPOSALS TO BE PUT FORWARD
IN CLOSE COOPERATION WITH THE SPECIALIZED U. N. INSTITUTIONS LOCATED
IN ROME FOR SPECIAL ACTION IN THIS FIELD PRIMARILY DIRECTED TO THE
POOREST COUNTRIES.
WE ARE DEEPLY CONCERNED ABOUT THE IMPLICATIONS OF WORLD
POPULATION GROWTH. MANY DEVELOPING COUNTRIES ARE TAKING ACTION TO
DEAL WITH THAT PROBLEM, IN WAYS SENSITIVE TO HUMAN VALUES AND
DIGNITY., AND TO DEVELOP HUMAN RESOURCES, INCLUDING TECHNICAL AND
MANAGERIAL CAPABILITIES. WE RECOGNIZE THE IMPORTANCE OF THESE ISSU17S
AND WILL PLACE GREATER EMPHASIS ON INTERNATIONAL EFFORTS IN THESE
AREAS. TRADE ( UNDERLINED)
21. WE REAFFIRM OUR STRONG COMMITMENT TO MAINTAINING LIBERAL TRADE
POLICIES AND TO THE EFFECTIVE OPERATION OF AN OPEN MULTILATERAL
TRADING SYSTEM AS EMBODIED IN THE GATT.
22. WE WILL WORK TOGETHER TO STRENGTHEN THIS SYSTEMS IN THE INTEREST
OF ALL TRADING COUNTRIES, RECOGNIZING THAT THIS WILL INVOLVE
STRUCTURAL ADAPTATION TO CHANGES IN THE WORLD ECONOMY.
23. WE WILL IMPLEMENT THE AGREEMENTS REACHED IN THE MULTILATERAL
TRADE NEGOTIATIONS AND INVITE OTHER COUNTRIES, PARTICULARLY
DEVELOPING COUNTRIES TO JOIN IN THESE MUTUALLY BENEFICIAL TRADING
ARRANGEMENTS. 24. WE WILL CONTINUE TO RESIST PROTECTIONIST PRESSURES, SINCE WE
RECOGNIZE THAT ANY PROTECTIONIST MEASURE, WHETHER IN THE FORM OF
VERT OR HIDDEN TRADE RESTRI CTIONS OR IN THE FORM OF SUBSIDIES
PROP UP DECLINING INDUSTRIES, NOT ONLY UNDERMINES THE DYNAMISM UURk
ECON'OMIES BUT ALSO, OVER TIME, AGGRAVATES INFLATION AND UNEMPLOYMENI.
WE WELCOME THE NEW INITIATIVE REPRESENTED BY THE PROPOSAL OF THE
CONSULTATIVE GROUP OF EIGHTEEN THAT THE GATT CONTRACTING PARTIES
CONVENE A MEETING AT MINISTERIAL LEVEL DURING 1982, AS WELL AS THAT
OF THE OECD COUNTRIES IN THEIR PROGRAMME OF STUDY TO EXAMINE TRADE
ISSUES. 2b. WE WILL KEEP UNDER CLOSE REVIEW THE ROLE PLAYED BY OUR COUNTRIES
IN THE SMOOTH FUNCTIONING OF THE MULTILATERAL TRADING SYSTEM WITH A
VIEW TO ENSURING MAXIMUM OPENNESS OF OUR MARKETS IN A SPIRIT OF
RECIPROCITY, WHILE ALLOWING FOR THE SAFEGUARD MEASURES PROVIDED FOR
IN THE GATT.
27. WE ENDORSE EFFORTS TO REACH AGREEMENT BY THE END OF' THIS YEAR ON
REDUCING SUBSIDY ELEMENTS IN OFFICIAL EXPORT CREDIT SCHEMES.
ENERGY ( UNDERLINED)
28. WE ARE CONFIDENT THAT, WITH PERSEVERANCE, THE ENERGY GOALS WE
SET AT VENICE FOR THE DECADE CAN BE ACHIEVED, ENABLING US TO BREAK
THE LINK BETWEEN ECONOMIC GROWTH AND OIL CONSUMPTION THROUGH
STRUCTURAL CHANGE IN OUR ENERGY ECONOMIES.
29. RECOGNIZING THAT OUR COUNTRIES ARE STILL VULNERABLE AND ENERGY
SUPPLY REMAINS A POTENTIAL CONSTRAINT TO A REVIVAL OF ECONOMIC
GROWTH, WE WILL ACCELERATE THE DEVELOPMENT AND USE OF ALL OUR ENERGY
SOURCES, BOTH CONVENTIONAL AND NEW, AND CONTINUE TO PROMOTE ENERGY
SAVINGS AND THE REPLACEMENT OF OIL BY OTHER FUELS.
TO THESE ENDS WE WILL CONTINUE TO RELY HEAVILY ON MARKET
MECHANISMS, SUPPLEMENTED AS NECESSARY BY GOVERNMENT ACTION.
31. OUR CAPACITY TO DEAL WITH SHORT-TERM OIL MARKET PROBLEMS SHOULD
BE IMPROVED, PARTICULARLY THROUGH THE HOLDING OF ADEQUATE LEVELS OF
STOCKS. 32. IN MOST OF OUR COUNTRIES PROGRESS IN CONSTRUCTING NEW NUCLEAR
FACILITIES IS SLOW. WE INTEND IN EACH OF OUR COUNTRIES TO ENCOURAGE
GREATER PUBLIC ACCEPTANCE OF NUCLEAR ENERGY, AND RESPOND TO PUBLIC
CONCERNS ABOUT SAFETY, HEALTH, NUCLEAR WASTE MANAGEMENT AND
NON-PROLIFERATION. WE WILL FURTHER OUR EFFORTS IN THE DEVELOPMENT OF
ADVANCED TECHNOLOGIES, PARTICULARLY IN SPENT FUEL MANAGEMENT.
33. WE WILL TAKE STEPS TO REALIZE THE POTENTIAL FOR THE ECONOMIC
PRODUCTION, TRADE AND USE OF COAL AND WILL DO EVERYTHING IN OUR POWER
TO ENSURE THAT ITS INCREASED USE DOES NOT DAMAGE THE ENVIRONMENT.
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34. WE ALSO INTEND TO SEE TO IT THAT WE DEVELOP TO THE FULLEST
POSSIBLE EXTENT SOURCES OF RENEWABLE ENERGY SUCH AS SOLAR, GEOTHERMA~ L
AND BIOMASS ENERGY. WE WILL WORK FOR PRACTICAL ACHIEVEMENTS AT THE
FOURTHCOMING UNITED NATIONS CONFERENCE ON NEW AND RENEWABLE SOURCES
OF ENERGY. WE LOOK FORWARD TO IMPROVED UNDERSTANDING AND COOPERATION W'ITH
THE OIL EXPORTING COUNTRIES IN THE INTERESTS OF THE WORLD ECONOMIY.
EAST-WEST ECONOMIC RELATIONS ( UNDERLINED)
36. WE ALSO REVIEWED THE SIGNIFICANCE OF EAST-WEST ECONOMIC
RELATIONS FOR OUR POLITICAL AND SECURITY INTERESTS. WE RECOGNIZED
THAT THERE IS A COMPLEX BALANCE OF POLITICAL AND ECONOMIC INTERESTS
AND RISK IN THESE RELATIONS. WE CONCLUDED THAT CONSULTATIONS AND,
WHERE APPROPRIATE, COORDINATION ARE NECESSARY TO ENSURE THAT, I14 THE
FIELD OF EAST-WEST RELATIONS, OUR ECONOMIC POLICIES CONTINUE TO BE
COMPATIBLE WITH OUR POLITICAL AND SECURITY OBJECTIVES.
37. WE WILL UNDERTAKE TO CONSULT TO IMPROVE THE PRESENT SYSTEM OF
CONTROLS ON TRADE IN STRATEGIC GOODS AND RELATED TECHNOLOGY WITH THE
U. S. S. R.
CONCLUSION ( UNDERLINED)
38. WE ARE CONVINCED THAT OUR DEMOCRATIC, FREE SOCIETIES ARE E' 3UAL
TO THE CHALLENGES WE FACE. WE WILL MOVE FORWARD TOGETHER AND WITH
ALL COUNTRIES READY TO WORK WITH US IN A SPIRIT OF COOPERATION AND
HARMONY. WE HAVE AGREED TO MEET AGAIN NEXT YEAR AND HAVE ACCEPTED
THE INVITATION OF THE PRESIDENT OF THE FRENCH REPUBLIC TO HOLD TH! S
MEETING IN FRANCE. WE INTEND TO MAINTAIN CLOSE AND CONTINUING
CONSULTATION AND COOPERATION WITH EACH OTHER.