STATEMENT OF THE CZECH REPUBLIC ON THE
PROGRAMME OF ACTION FOR THE LEAST DEVELOPED COUNTRIES FOR THE DECADE 2001
– 2010
THIRD UNITED NATIONS CONFERENCE
ON THE LEAST DEVELOPED COUNTRIES, BRUSSELS, 14 – 20 MAY 2001
PRESENTED BY MR HYNEK KMONICEK, DEPUTY MINISTER OF FOREIGN
AFFAIRS OF THE CZECH REPUBLIC, 15 MAY 2001
Mr Chairman, Ladies and Gentlemen ...
The Czech Republic welcomes the Programme of Action (PA) as a strategic framework that picks up on the activities of the international community so far, and regards the needs of LDCs. The Czech Republic fully supports international development goals and specific actions set out by the PA on the way to achieving them. Only concrete measures, accountable results, and the transparent monitoring of PA implementation can contribute to LDCs sustainable development and their integration into the world economy.
A significant prerequisite for the fulfilment of the PA is partnership
between governments, international organizations, and representatives from the
private sector, non-governmental organizations and civil societies. The Czech
Republic seeks open dialogue with the non-governmental sector on the problems
of international development, successfully initiated at last year's joint WB
and IMF conferences in Prague.
The mobilization of development funds plays a key role in achieving PA
goals. The Czech Republic considers all elements of funding, i.e. domestic
resources, official development assistance, debt relief, investment, and the
relaxation of trade barriers to be mutually beneficial, and will do its utmost
to strive for the mobilization to the benefit of LDCs.
(Development assistance)
Mr Chairman, the Czech Republic is quick to stress the complementary
and catalytic role of development assistance in relation to other funding
facilities. Nevertheless it sees its key and stable role in the poverty
eradication in LDCs, which are the most vulnerable part of the international
community. Official development assistance for LDCs should not be only higher
in volume, but also effective, transparent, and result-oriented.
The Czech Republic believes that the fundamental requirement for an
inflow of financial resources, including development assistance, is political
stability, democracy, and respect for basic human rights, as well as a sound
economic and legal environment in LDCs. Each country carries primary
responsibility for its own development, while international cooperation is
there to provide technical assistance and funding facilities to support
sustainable development. Accordingly, the Czech Republic places an emphasis on
nationally-owned poverty reduction strategies and sustainable development
strategies as a framework for partnerships between LDCs and their counterparts.
As an emerging donor country, the Czech Republic provides, as far as it
is economically able, development assistance to less developed countries,
including LDCs. In line with the PA, the Czech Republic wants to increase the
share of LDCs in bilateral development assistance so that in the next decade
the flow of Czech development aid to LDCs will increase substantially. At
present, the Czech Republic is preparing a new strategic framework for the
provision of foreign development assistance, the aim of which is to improve the
current system and respond to the current trends of international development
cooperation.
Besides bilateral development assistance, the Czech Republic also
shares in the development activities of a number of international
organizations, especially in the framework of the UN. An important element of
these operations is LDC aid. For example, the Czech Republic regularly supplies
the work of the IDA and the PRGF II programme. As a candidate country, the
Czech Republic is prepared to do its bit to further the EU development policy.
The Czech Republic is appreciative of the Cotonou Agreement between the EU and
the African, Caribbean and Pacific states, many of which figure among LDCs, as
an example of partnership and mutual dialogue between developing countries and
their development partners.
(International Trade)
Mr Chairman, the Czech Republic sees the Conference held by the UNCTAD
as a confirmation of the importance of liberalizing international trade for
socio-economic development. The Czech Republic fully supports the provisions of
the PA with the aim of integrating LDCs
into international trade in goods, services, technology, and capital, and
therefore of overturning their marginalization in the international trade
system.
The main task of the partners is to open up domestic market access. The
Czech Republic appreciates the potential offered to mutual trade by the
dismantling of customs and other barriers. As an associated country, the Czech
Republic welcomes the recent EU decision to open up its markets for all
products (except arms) from LDCs by 2009. Imports originating in LDCs through
the Czech national GSP scheme already enjoy duty-free treatment.
On the other hand, the liberalization of international trade must be
complemented by LDC efforts at capacity building, enabling them enjoy the true
benefits of globalization. A special place is set aside for the integration of
LDCs into the multilateral trade system, in the concrete the WTO. Such a
measure should be understood as a continuity in the Czech Republic´s approach towards the broadest possible
participation of LDCs in the multilateral trade system and in the related new
round of the multilateral trade negotiations, for which the Czech Republic is
prepared to allocate the necessary financial means.
The process of integrating LDCs into the world economy should not be
limited simply to the international exchange of products and services. Nor
should LDCs be excluded from a knowledge-based global economy. The spread of
information and telecommunication technologies is not only an instrument to
increase education, but also supports better governance and transparency of development
cooperation.
(Debt relief)
Mr Chairman, as with the other provisions of the PA, the problem of
relieving LDCs of their debts must be tackled jointly by creditors and
international organizations on the one hand, and LDCs themselves on the other.
The Heavily Indebted Poor Countries (HIPC) initiative, to which the Czech
Republic makes active contributions, is fully in line with this concept.
Independently of PA proposals, the Czech Republic has already cancelled
all official bilateral debts with all LDCs eligible for the HIPC initiative.
What is more, the Czech Republic now provides development assistance
exclusively in the form of grants, which do not deepen the debts of the
recipient countries.
The Czech Republic is prepared to consider debt relief on a
case-by-case basis for other LDCs who are presently outside the HIPC
initiative, although it still regards nationally-owned poverty reduction
strategies and economic reform strategies in LDCs as the cornerstone for debt
reduction and a prerequisite for debt sustainability. Reducing the debts of
LDCs should therefore be assessed in its broader context, including, alongside
the HIPC initiative, coordination with the activities of the Paris Club.
To conclude, the Czech Republic is aware of the significance and urgency of the problems the international community is up against as it stands at the outset of the 21st century. The Czech Republic values the PA as the framework for a strategy wielded by the international community to find solutions to these problems to the benefit of LDCs, the most vulnerable element of the international community. The Czech Republic is actively involved in development cooperation and is prepared to do its utmost to fulfil the goals of the PA.
Thank you for your attention.