May 14, 2001 – PM Session
Brussels, Belgium
(Check Against Delivery)
Mr. President,
It is an honor and pleasure for me to be here, at this Third United Nations Conference on the Least Developed Countries, to share Korea's perspectives on the development of LDCs and our commitment to join the global efforts to address this issue.
To begin with, I would like to express my most sincere gratitude to the European Union for hosting this important conference and to the Secretariat of the UNCTAD for all their excellent preparations.
Mr. President,
This Conference serves as a very timely and crucial reminder of one of the greatest global challenges that we face today-the challenge of leading the LDCs to the path of sustained growth.
Despite the global efforts of the past two decades, the international community has not succeeded in realizing the much-hoped results in the economic and social development of LDCs.
In 1998, the average per capita GNP for LDCs remained at US$287, which was only one-fifth of the average per capita GNP for developing countries and merely one per cent of that for developed countries. Meanwhile, the number of LDCs increased from 31 in the early 1980s to 49. During the same period, only one country was able to graduate from the status of an LDC.
The message from such figures is clear. In order to ensure long-term global prosperity, we cannot afford to overlook the serious economic plight of LDCs. We have to address LDC issues with full dedication and commitment.
Mr. President,
The two Action Programmes for LDCs adopted in 1981 and 1990 had been launched with great expectations from the international community, but ended up with disappointing results.
In our view, the main objectives still remain valid, but because of persistent structural challenges of LDCs and the lack of political will to implement the Action Programmes, we failed to achieve meaningful progress.
In view of the previous experiences, the new Action Programme to be finalized in this conference should be a viable and realistic one, based on shared responsibilities and a strengthened partnership of the whole international community.
The future strategy should also be designed to produce early and tangible benefits for LDCs, so that they could have both confidence and hope in solving development problems through the new Action Programme.
Mr. President,
Korea is fully aware that the responsibility for mitigating poverty in LDCs does not rest exclusively with LDCs themselves, but it is rather a collective duty that all of us, as development partners, should share together.
The Republic of Korea is often cited as a good example of a country transforming itself from one of the poorest in the world to a newly industrialized economy. However, the path has not always been smooth. We have achieved this through a process of trial and error.
In light of Korea's unique development experience, I wish to share, some of my thoughts on three main issues, which Korea considers most important. They are human capacity building, active participation in international trade, and mobilization of financial resources.
First of all, one cannot over-emphasize the importance of adequate human capacity building in realizing economic and social development. This is now all the more relevant as the information and knowledge-based economy continues to assume increasing importance.
During the early stages of its economic development, Korea focused its resources on human capacity building. Through enhanced vocational training and educational opportunities, Korea was able to provide the well-trained human resources necessary for economic development.
With a view to sharing this experience and expertise, the Korean government has already extended invitations to more than 2,500 trainees from LDCs as of the end of 2000. Another 500 people will be invited to Korea this year, and we plan to double the number of invited trainees within the next 5 years.
On the other hand, we will further expand the establishment of vocational training centers in LDCs to accommodate diverse local needs.
In order to bridge the digital divide, Korea will place a priority on the information technology field in our future efforts to promote human resources development in LDCs.
Mr. President,
International trade serves as an effective means for LDCs, not only' to develop their economies, but also to integrate them into the mainstream of the world economy.
In order to reap the full benefits of trade, LDCs. need to make ample efforts to diversify their export base, as well as to establish an open market economy. The international community should also make concerted efforts to create a more LDC-friendly multilateral trading system to ensure their improved access to the global market.
For several decades, Korea's export-driven development policy has served as the engine of its growth.
Based on this experience, Korea has introduced, since January 2000, a new duty-free import system for a number of export items from the LDCs, including coffee, cotton and lumber. Korea will continue to endeavor to ensure improved access for LDC products to the Korean market.
Furthermore, Korea has joined the global efforts for trade related capacity building in LDCs by making a financial contribution of US$300,000 to the WTO Secretariat this year, as well as hosting a series of training courses on international practices and regulations.
Mr. President,
Given the magnitude and urgency of financial needs of LDCs, their sustainable development will critically depend on adequate and stable financial resources. We all recognize the vicious cycle of "low income, low savings, low investment and low growth." The twin pillars of international cooperation--namely, Official Development Assistance (ODA) and debt relief measures--have continued to play a critical role in breaking this cycle.
The stagnating trend of ODA, however, is a source of great concern for LDCs. ODA should be effectively complemented by promoting domestic financial resources and foreign direct investment.
We believe that improved tax administration in LDCs can strengthen and expand the basis for government revenue and help enhance national saving capacity. Foreign direct investment should also be promoted by providing a favorable business environment, such as improved governance, an open market economy and well reformed legal system.
Korea, for its part, extended a total amount of US$190 million from the Economic Development Cooperation Fund (EDCF) to finance various development projects in LDCs during the 1990s. Our foreign direct investment in LDCs has reached well over US$1 billion. Korea has also made a financial contribution to the Poverty Reduction and Growth Facility (PRGF) Trust and the Heavily Indebted Poor Countries (HIPC) Trust of the IMF, specially designed for LDCs.
I am glad to state that economic assistance to the LDCs is a priority of our, development cooperation policy, and we will endeavor to increase our financial support to LDCs within our economic capabilities.
Mr. President,
With the dawning of the new century, we have gathered here once again to adopt a new Programme of Action for LDCs, which will chart a new vision and guidelines for renewed international cooperation.
On behalf of the Korean delegation, I wish to reiterate the strong commitment of the government of the Republic of Korea to join the global development partnership with the LDCs.
In conclusion, it is the sincere wish of the Korean delegation that the present conference will provide new momentum for the remobilization of the unswerving support of the international community for the realization of sustained growth for LDCs.
Thank you.
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