Let me begin by congratulating the President of the fifty-ninth session of the General Assembly, His Excellency Mr. Jean Ping, for his tireless efforts in the lead-up to the summit meeting and for his contribution to the elaboration and adoption of the outcome document (resolution 60/1). Mongolia considers the outcome document, with all its omissions, to be another important milestone in forging global consensus on development, and pledges to contribute its modest share to the successful implementation of the commitments contained therein. In this connection, I would also like to commend our Secretary-General, Mr. Kofi Annan, for his leadership and vision and to wish him well in his bold reform activities. I also warmly congratulate Mr. Jan Eliasson on his well- deserved election to the presidency and express our confidence that his skill, experience and intimate knowledge of the matters at hand will enable us to successfully follow through on the commitments made by our leaders last week in this Assembly. Mongolia is poised to achieve most of its Millennium Development Goals (MDGs) on education, gender, child and maternal health and combating various diseases by 2015. Capitalizing on its 1990s system of public health and education and a traditional culture of gender equality, Mongolia is well on track to achieve, by 2015, universal primary education and literacy, eliminate gender disparity at all levels of education, and reduce its child mortality rate by two thirds and maternal mortality rate by three fourths. However, the most important goal of halving poverty by 2015 looks highly elusive, if not unachievable, at the moment. Aware of its responsibility for its own development, Mongolia has, by and large, managed its public finances responsibly and maintained macroeconomic stability. It has done its utmost to adopt and implement sound national policies and development strategies and to introduce good governance and the rule of law. Yet, like many other small, vulnerable and commodity-dependent economies, Mongolia’s development is severely handicapped by many factors well beyond its control. Skyrocketing oil prices, for instance, are taking a serious toll on economic growth, engulfing whatever gains we made earlier on, and are exposing already vulnerable societies to increased hardship and uncertainty. Many frustrated oil- importing developing countries have articulated a number of interesting ideas during this general debate, and we urge the international financial institutions and the oil producers to heed our collective appeal. Last week world leaders once again reaffirmed their commitment to address the special needs of the landlocked countries and their special difficulties in integrating into multilateral trading systems. Full, timely and effective implementation of the Almaty Programme of Action and the Sao Paulo Consensus adopted at the eleventh session of the United Nations Conference on Trade and Development will provide a significant boost to the development and poverty 19 reduction efforts of the landlocked countries, including Mongolia. Mongolia spends a significant portion of its gross domestic product (GDP) on transit transportation and insurance costs through its two neighbours, Russia and China, roughly double the transportation costs of other developing countries. Since 1998, Mongolia has been negotiating with these two neighbours on a framework agreement on transit transport to reduce transit transportation costs and related cumbersome procedures, both in crossing the land border and in trans-shipment at ports. Six rounds of talks ended for the most part inconclusively, but we hope that with the renewed commitment of our leaders to the Almaty Declaration, agreement will be within our collective reach. Mongolia is a small economy, highly vulnerable to commodity market fluctuations and weather and climatic conditions. The call made in the Summit Outcome document (resolution 60/1) on the need to support the efforts of commodity-dependent countries to restructure, diversify and strengthen the competitiveness of their commodity sectors merits a swift response from the international community. In this regard, I wish to draw the attention of this Assembly to the important recommendations derived from the Multi-Stakeholder Consultations organized by the New Rules for the Global Finance Coalition in preparation for the summit. Recommendations include commodity price arrangements and stabilization tools and the establishment of a rapid-responding, overarching, grant-financed shocks facility for low- income commodity-dependent countries. Immediate establishment of such a facility would make a tangible contribution to our efforts to reduce poverty. Mongolia is highly susceptible to natural disasters, which cause loss of life and extensive damage to its economy. In addition, desertification, deforestation and soil erosion hamper our development efforts. We urge the international community to redouble its efforts to address these trans-boundary threats collectively. For our part, we will continue to take specific measures in combating desertification, in using land resources properly and in protecting forests by introducing and implementing special protective strategies. Despite an encouraging increase in official development assistance (ODA) in recent years, after a decade of steady decline, the world is still well short of achieving the long-standing target of 0.7 per cent of GDP. We are encouraged that the war against poverty will now be waged more aggressively with the commitment of the world leaders to increase ODA to developing countries by $50 billion a year by the year 2010. However, it is imperative to increase the aid quantity to a sufficient level to make multiple investments in the health, education and economic infrastructure needed to break cycles of deprivation and ensure sustained growth. Furthermore, the quality of aid has to be improved, as per the principles of the Paris Declaration on Aid Effectiveness of March 2005, with a particular emphasis on providing stable and predictable multi-year financing, and with a focus on development goals, mutual accountability, building institutional capacity, untying aid, reducing transaction costs and bureaucratic procedures and increasing the recipient’s ownership of aid. Mongolia fully endorses the recommendation of the Secretary-General that, starting in 2005, developing countries with sound, transparent and accountable national strategies should receive a sufficient increase in aid, of sufficient quality and timeliness to enable them to achieve their Millennium Development Goals. In addition, new and innovative sources of financing, including an International Finance Facility, quick- impact initiatives and debt-conversion for MDG implementation projects should urgently be put in place. Mongolia, for one, resolves to introduce free school lunches, starting with those for primary schoolchildren, as a quick-impact initiative. Despite the importance of aid for developing countries, trade and investment play a pivotal role in ensuring sustainable development. According to the 2005 Human Development Report, trade barriers faced by developing countries exporting to developed countries are three to four times higher than those faced by developed countries when they trade with each other. The current multilateral trade negotiations have not produced a tangible outcome that would meet our expectations from the Doha development agenda. The Doha Round, to be successful, should result in establishing fairer and more favourable terms of trade for developing countries, especially those with special needs, in the form of enhanced and predictable market access and assistance in building productive and trade capacities. Mongolia appreciates the decision of the European Union to provide duty-free access to over 7,200 goods from small and vulnerable economies, 20 including Mongolia, under the special Generalized System of Preferences Plus scheme. Increased and better access means that more families will be able to leave destitution and poverty behind. The Summit Outcome emphasized once again the importance of a timely, effective, comprehensive and durable solution to the debt problems of developing countries. In assessing the eligibility of countries for debt relief, we urge the donor community not to limit itself to mere statistics or rigid categorizations such as “least developed countries”. Debt relief should be considered comprehensively, taking into account the history and impact of the debt on the development of the recipient country and its actual capacity to repay. Many of these factors were taken into account when Mongolia negotiated its debt repayment with Russia. I would like to take this opportunity to express from this podium the gratitude of my Government to the Government of the Russian Federation for its display of solidarity and political and economic pragmatism in resolving this issue, so important for us. We believe that education is an engine for development, a guarantee of the respect for human rights and a pillar of democracy. Mongolia has made substantial efforts in the second half of the last century to develop its education system. As a result, the adult literacy rate has reached 97.8 per cent. Nonetheless, taking stock of our recent past, we have drawn lessons so as to further improve the deliverables of the education system. Stronger emphasis is now placed on vocational and technical training, the quality of education, addressing functional illiteracy against the backdrop of the rapid advance of information and communications technology and the universal usage of English. These policy measures are taken in accordance with the Dakar Framework for Action and the United Nations Literacy Decade. Mongolia welcomes the strong focus on human rights, rule of law and democracy in the Summit Outcome. Democracy and rule of law are not part of a state of affairs that can be arranged or introduced overnight. We believe that fostering democracy and rule of law is a continuous process, and we hope that this long-term, sustained approach will prevail in the activities of United Nations institutions. We support the efforts of the United Nations to make democracy a universal environment for global governance. We believe that the United Nations Democracy Fund is an important product in the overall reform process, as it highlights the importance of democracy and the role of the Organization. Mongolia believes that the Fund should serve as a vital instrument to assist Member States in the consolidation of democracy and implementation of their commitments, including the Ulaanbaatar Declaration and Plan of Action adopted at the fifth International Conference of New or Restored Democracies in 2003 and approved by the General Assembly in its resolution 58/13. We all agree that the United Nations must be strengthened to meet the challenges of the new millennium. This will be an all-encompassing task that would involve system-wide reform of the Organization to bring it in line with the realities of our era, including, where necessary, changes in composition, mandates, procedures and working methods of the principal and subsidiary organs, the various programmes and funds, as well as the establishment of new or reinvigoration of existing bodies. Overall, United Nations assistance needs to be focused, results- oriented and tailored to the priority development needs of the countries concerned. It has to be designed to bring a tangible and speedy impact on the lives of ordinary people and to help them escape the trap of poverty and live in dignity, free from want. Accountability, oversight, management performance and transparency of the Secretariat must be brought to a new level of efficiency, professionalism and ethical conduct on a par with the best corporate governance practices. Mongolia supports the idea of empowering the Secretary-General, the chief administrative officer of the United Nations, with greater authority and flexibility in administering the work of the Organization in line with the Charter’s provisions. All too often, sound management reforms proposed by the Secretary-General have been stalled by us, the Member States. In conclusion, Mr. President, let me voice Mongolia's confidence that we collectively will succeed in reforming our world Organization, and the renewed and reinvigorated United Nations will be better equipped to address effectively the manifold challenges that lie ahead.