Statement by H.E. Dr. Abdolrahim Gavahi

Secretary General of Economic Cooperation Organization

at the Third United Nations Conference on Least Developed Countries (LDC III)

Brussels, May 19, 2001

(Check Against Delivery)

Mr. Chairman,

Please allow me first to register my own and my Organization's gratitude to yourself, Dr. Ricupero the UNCTAD Secretary General, the Executive Director and their colleagues for organizing the Third United Nations Conference on the Least Developed Countries and for giving me the floor to address this august meeting.

Economic Cooperation Organization, as the sole regional grouping in Western and Central Asia has in its membership one country officially listed as LDC; the one which is submerged in extraordinarily difficult situation hardly comparable to any other LDC. This inevitably affects many crucial aspects of the organization's work.

Our membership consists of Afghanistan, Azerbaidjan, IR Iran, Kazakhstan, Kyrgyz Republic, Pakistan, Tajikestan, Turkey, Turkmenistan and Uzbekistan seven of which are categorized under low income food deficit countries. Azerbaijan and the Central Asian member States are struggling to manage their transition from centrally planned to Market economies successfully. Approximately 13 percent of developing world's undernourished population inhabit in the ECO region. By the year 2025 the Eco region will have to produce an additional 16 million tons of food stuff to feed its population.

There are member states as well as sub-regions within ECO who experience the very plight of LDCs in a similar fashion. World Bank has estimated average per capita GNP of ECO region measured with their Purchasing Power Parity well below the global average. Such realities prompts us to remain sensitive towards the cause of the least developed states and regions and wholeheartedly follow that. We believe that the nature and scope of underdevelopment in its severest forms should be on international community's agenda for prompt actions. A universal and coherent approach, thus, becomes indispensable in dealing with specific problems of least developed countries and regions.

The measures and strategies as recommended by the Conference in respect of persistent problems of LDCs and in their integration into global economy need to incorporate the regional dynamics, too. I am confident that endemic problems of each country and region have been duly taken into account by the participants. I have to stress that there are transition economies members of ECO with very low levels of GDPs per capita whose development levels correspond with those for LDCs. Although I do not intend to refer to their specific problems I would like to recall that they, more or less, face similar challenges in their efforts to achieve development goals. Moreover, our seven new member States are all landlocked and our LDC member is the most landlocked of all. Hence, the circumstances affecting their development have become closely intertwined. Communique of the First Ministerial Meeting of the Group of Landlocked Developing Countries held last September in New York calls upon the present gathering to address the special problems of their respective countries while emphasizing the role of sub regional and regional arrangements in development of sectors vital for them. In this context, ECO region has a lot to share with those who pursue the cause of the least developed countries in terms of exchanging experiences as well as in harmonizing action policies in a regional context.

ECO, is a region in the vicinity of vast natural resources. Nevertheless, most of its member States are not immune from persistent problems other LDCs are grappling with; poor infrastructure, poverty, recurring financial and economic crises, dependence on one or two sources of foreign exchange. For a large number of the region's population who want to benefit from cross border trade and to gain a modest profit associated with that, enduring hardships in their access to means of communication even in commuting between short distances have become a simple fact of life. Inefficiency and insufficiency of transport infrastructure have overwhelmingly shadowed intra trade performance as well as their regional integration. If integration at that level is made cumbersome, wouldn't it become a little premature to talk of a deeper integration. Aforementioned deficiencies as well as lack of concerted efforts and absence of proper mechanisms among regional as well as international organizations to converge their policies could to some extent be held liable for such circumstances. There are potentials for trade and vast resources which need to be exploited efficiently. Simultaneously, there are gaps and missing links in resources utilization which could be attributed to the inefficient infrastructure already in place and also bottlenecks in implementation of regional programmes.

The recurring crises in least developed countries, emanating largely from shortfalls stated earlier, make it exigent for the international community to orchestrate effective measures and policies with the participation of the regional organizations. Regional organizations in less developed regions are potentially in better positions to identify the existing pitfalls in implementing development projects. They can play a substantive role in drawing up coherent plans and programmes in areas of poverty alleviation and creation of growth poles. By the same token organizations such as ECO need to be equipped with adequate recognition in exerting governance in overall direction of regional development policies and projects within its mandates. In foreseeing and averting economic crises generic to the regions as well as their inevitable ramifications in the form of social and political tensions there is need for mechanisms through which the regional organizations such as ECO could actively engage and supplement international community's efforts.

ECO's challenges to foster development throughout the Region, particularly in its least developed parts, are. manifold and of different natures and scopes. The organization is well equipped with legal instruments. tailored to leveling the playing field for a full-fledged regional cooperation. By the same token, ECO could formulate regional projects and. activities of superb quality and standing in terms of structures and contents.

Nevertheless, having said so I do not intend to ignore or underestimate manifold impediments on our way to serve development objectives of the region. When it comes to implementation myriad problems and issues emerge as roadblocks to step by step progress of our already well - defined goals and strategies, inter alia improving conditions for sustainable development and raising standards of living of its member States. Resource constraints pose as the main challenge of the Organization to promote its clearly stated objectives. Assumption of a holistic approach and vision in dealing with underdevelopment and the vicious cycle of poverty and instability whose regional spillovers could not be ignored becomes a sheer necessity by all parties involved. Such may entail identification and development of growth poles on the basis of real potentials of each LDCs and their respective regions. Consolidation of region wide efforts and institutions provides a better leverage for sustainable development and for averting regional tensions by promoting economic activities at the grassroots of the least developed parts and regions.

Such approach by the international community becomes sine qua non in formulation and orchestration of measures to tackle the most flagrant forms of underdevelopment. As a prelude to integrating LDCs in international economy regional dynamics need to be strengthened.

Mr. Chairman,

ECO's Transit Transport Framework Agreement as well as the one for Transit Trade, are intended to remove bottlenecks in actual movement of goods from the land locked members to the members who have access to free waters. This implies that there are enough momentum for putting the essential regulatory frameworks in place. In cases where there adequate political determinations and unanimity are lacking in respect of adopting certain legal and institutional frameworks, awareness building process should be set in motion to illuminate the right track to parties concerned. According to my experience, having ratified and adopted certain documents or courses of action by themselves, does not guarantee their implementation.

In order to address the issue of poverty and poverty stricken sub regions at the grassroots, regional initiatives to mobilize resources and to harmonize strategies and actions should be given adequate recognition and support by the international community.

This sets a daunting task before my Organization vis-a-vis its membership and in response to their ever increasing needs for setting up proper institutions and infrastructures leveraging their development processes and also in deterring and averting the phenomena such as regress and persistent backwardness. This may require tools beyond the currently available means. The notion that the regional organisations could emerge as ultra national entities with due responsibilities in exerting governance and in catalysing development of their members and finally in maintaining stability should be strengthened or at least find its proper place in the context of the globalisation. If there exists consensus on this matter, thus, this conference could provide adequate impetus to the idea whenever and wherever the cause of least developed countries is mattered.

Mr. Chairman

I would like to conclude by saying in a nutshell that ECO is prepared to share its unique experience in tackling the specific problems of the region's least developed parts. International community's provision of adequate recognition and support to this Organization will be pivotal in guiding it through the crucial tasks it has been entrusted with.

Thank you very much

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