Statement by H.E. Mr.
Nasrudin Sumintapura, Ambassador Extraordinary and Plenipotentiary of The
Republic of Indonesia to the European Communities
At the Third United
Nations Conference on the Least Developed Countries, Brussels, 14
- 20 May 2001
(check against delivery)
Mr. President,
Excellencies,
Ladies and Gentlemen,
At the
outset, my delegation would like to congratulate you, Mr. President, on your
election to the chair of this important conference. We are confident that with
your wise guidance, our deliberations will successfully address the severe
problems confronting LDCs.
We
would also like to thank the European Union and UNCTAD for hosting and
organizing this important UN Conference. We believe that this demonstrates both
the EU's commitment to solving the problem of LDCs as well as signaling its
desire to foster constructive international cooperation for development.
Mr. President,
We meet
at a time when globalization and liberalization of international trade are
giving rise to a number of opportunities for and challenges to the developing
countries, particularly for the LDCs. Although it is believed that
globalization represents a dynamic force for the development of the LDCs, it
also presents serious risk of further marginalization, simply because these
countries lack the means by which to tap its potential and minimize its risk.
Thus, LDCs are left on the sidelines, while a number of affluent countries
greatly benefit from the world economy.
To
achieve a balanced world economy that equally benefits all nations, this
conference therefore, should agree on a comprehensive international strategy
that enable the LDCs and the developing countries to participate in and to
benefit from the global economy. Only by developing a comprehensive
international strategy will all countries, including the LDCs participate in
and reap the benefits from the ongoing process of globalization and liberalization.
It is
unacceptable that only 20 percent of the global population controls more than
80 percent of the world economy, while 1.2 billion people continue to survive
on less than one dollar a day. It would constitute a human tragedy if a
minority of countries were to dominate the world economy, while the greater
majority continue to be left behind. Therefore, we see this UN Conference as a
unique opportunity to reverse these trends.
It is disturbing to
note that the implementation of the LDCs Programme of Action for the 1990s has
failed to meet its target. Indeed, during those years, development has proven
elusive for significant number of LDCs. Their economies have declined, social conditions have worsened, and they have remained
the most marginalized group of countries from mainstream of the world economy.
Since most of the LDCs are still dependent of the ODA for their
economic development, it is therefore discouraging to note that aid flows to
the LDCs, as a share of the donors' GNP have almost halved during 1990s. This
trend is in contrast to the general and specific commitment of the
international community at the Paris Conference. To recall briefly, ODA
disbursements to LDCs in 1997-1998 were 22 per cent lower, on average, than in
1990-1995. These facts should constitute a valuable lesson, given that we are
now in the process of formulating and designing the Programme of Action for the
development of the LDCs for the next ten years.
Another major challenge for international development cooperation
is the failure of the markets to provide the LDCs with access to global
finance. Foreign investment flows and loans to the LDCs are further deterred by
such factors as the costs of asset development; the lack of business support
services; and weak physical, social and administrative infrastructures.
International capital markets are also characterized by imperfections that
limit LDCs' access to private finance even when projects are in fact
economically viable.
Since the LDCs are experiencing an intolerable debt burden,
policies to address the external debt problem should be re-examined. This
should be done in light of their detrimental effects on private capital flows.
Debt relief policies should also be designed to strengthen the private sector.
In this regard, we call for a comprehensive and development-oriented approach
as well as durable solution to the external debt problem. We are pleased that
the newly improved HIPC's initiative has been launched so that debt relief for
these countries will be expanded in coverage and implementation at a faster
rate. We hope that the Conference will seek ways to expand the initiative
further to encompass a greater proportion of the LDCs. Thus, we believe it
should also be injected with fresh funds to enable all eligible countries to
benefit without further delay.
On the issue of trade, we share concern of the LDCs on the
problems of market access. Most LDCs are still dependent on a limited number of
commodities as their primary export. Although some major countries have taken
an encouraging step to open up their markets to LDCs' products, in many cases
that opportunity cannot be fully seized due to their problem of supply
capacities. Therefore, in addressing the issue of market access, it is
imperative to take into account such issue as strengthening supply capacities
as well as technical assistance to develop product diversification.
Mr. President,
It goes without saying that each country has prime responsibility
for its own development. But, in a situation where the room for policy options
of the developing countries and the LDCs, is becoming more limited, then an
enabling international environment for the development of the LDCs and the
developing countries is a necessity. It is a fact that the majority of
developing countries and the LDCs are vulnerable to any global changes
resulting from policies that were made without their participation.
There
has been much international debate on the need to improve the governance of
countries as to ensure that their development goals and eventual prosperity are
attained. In addition, the need to pursue good governance at the global level
has also been hotly debated. Despite this fact, we note that a balanced
approach to attaining these objectives is sadly lacking. Furthermore, it is
regrettable that discussions in international fora continue to focus on the
merits of good governance at the national level, to the detriment of good
governance at the global level, which are crucial to the development needs of
the developing countries and the LDCs.
Mr. President,
We have
gone through a series of preparatory processes designed to build upon a common
consensus of the need to identify the necessary actions and possible means to
address the immediate problems of the LDCs. In the course of that process, we
are heartened to note that some of the developed countries have shown
flexibility in assisting the LDCs' development efforts. Still, we should
continue to appeal for more countries that are in a favourable economic
position to follow suit. Therefore, we call for the international community,
particularly the developed countries, to demonstrate their political will in
carrying out their commitments through concrete actions.
I
strongly believe that our deliberations should focus on producing concrete
initiatives that are implementable in addressing the problems of LDCs. In this
way I believe we could make this conference a successful one. Let me just say
by way of conclusion, that I sincerely hope that we can embark on a truly new
beginning at this conference. Through a genuine spirit of partnership, we will
make headway in promoting the development of the LDCs in supporting their
formidable task of integrating their economies productively into the mainstream
of global economy.
Thank you.