STATEMENT BY MR. ASHRAF QURESHI, LEADER OF THE PAKISTAN DELEGATION
TO THETHIRD UNITED NATIONS CONFERENCE ON THE LEAST DEVELOPED
COUNTRIES (BRUSSELS 14-20 MAY, 2001)
16 MAY 2001

 

(check against delivery)

Mr Chairman,

Before offering our comments on the Conference itself, I would like to touch upon some aspects of globalisation on which interpretations differ radically. Without entering into polemics, I would like to emphasise that all aspects of globalising are deeply inter-linked and require a holistic approach.

It is a fact that globalisation has so far not worked for the developing countries. It has rather made them vulnerable to external shocks and accentuated their economic problems. In fact, liberalisation of economies and open markets has in many ways adversely affected the fragile economies of the world's poorest nations. The obvious outcome is pervasive poverty and everwidening income, social and technological gaps between the "haves" and the "have-nots". Unprecedented wealth exists in this world alongside abject poverty with massive disparities in levels of economic and social development. Statistics in this regard are staggering.

Mr Chairman,

It is encouraging to note that there is a growing realisation in the international community of the need to remove these imbalances. The presence of such a number of highlevel political leaders at this Conference reflects the international resolve to eradicate poverty and accelerate development. This Conference indeed provides us a unique opportunity to create and promote an international economic environment that supports LDCs in their efforts to break the vicious circle of poverty, hunger and under-development. It is imperative that we do not allow this opportunity to slip by. Let us commit ourselves to save the succeeding generations from pervasive poverty and to avert negative consequences of globalisation and work for the widely shared goals of peace and prosperity for all.

Mr Chairman,

The implementation of the Program of Action (POA) adopted by the Second United Nations Conference on the LDCs has been far from satisfactory. In many cases, the situation of LDCs has worsened. The development programs and policies adopted by the LDCs were rendered ineffective due to challenges posed by globalisation and liberalisation, the continuous decline in ODA flows and the high level of their external debt. We should, therefore, build on the lessons learnt.

While we would have an opportunity to share our views in detail on the draft POA during our deliberations, we would like to share our general comments on this document which would be the most important outcome of this Conference.

We consider the Program of Action for LDCs as the beginning of a new effort for a more durable solution to the problems of the LDCs. We hope that new and innovative ways would be found for securing sustainable development as well as generating necessary political will to sustain them. Innovative ways should include means to provide new and additional resources and technical support to the LDCs in order to enable secure and sustainable development for their economies.

Mr Chairman,

The Conference should, among others, focus on four principal areas of concern to LDCs. Firstly, enhancement of Official Development Assistance (ODA). Secondly, finding durable solutions to the crippling external debt burden of LDCs. Thirdly, improving market access for products of export interest to LDCs. And fourthly, establishing an enabling economic environment, which fully supports the domestic policy framework, adopted by these countries.

Official Development Assistance is critical to the development needs of the Least Developed Countries. Regrettably, there has been a consistent decline in ODA flows. In nominal terms, ODA dropped from $63 billion in 1992 to $51.9 billion in 1998. With the exception of few countries, the target of 0.7 percent has not been met by donors. If the agreed target could be met, this alone would yield around 100 billion, most of which would be going to LDCs. The draft POA offers some suggestions in this regard but essentially does not go beyond urging the industrialised countries to meet the agreed targets, which is certainly not adequate.

External debt continues to be a key obstacle to development in the Least Developed Countries, and in some cases, constitutes the principal drain on their domestic savings and resources. The HIPC initiative is a welcome step but the relief granted to these heavily indebted poor countries is minimal and is fraught with complex and intrusive conditionalities. Moreover, HIPC accounts for only a fraction of the total debt of the developing world. There is a definite need to develop a comprehensive approach on this issue that should also provide debt relief to non-HIPC LDCs and other developing countries. Funding for debt relief must be additional and not a substitute for other forms of development assistance, New initiatives are needed for a durable solution including outright debt cancellation of the middle-income countries as well.

The biggest challenge before this Conference is eradication of poverty and underdevelopment. Poverty alleviation is an ongoing process, requiring constant reappraisal of strategies. A greater synergy among efforts by all stakeholders i.e. states, civil societies and international community is required to create an enabling environment both at national and international level. The Least Developed Countries must get the required support from the international community to reach these goals.

The most sustainable way to eradicate poverty could be through improved market access to the export products of the developing countries. A general willingness on the part of the developed countries to grant quota-free, duty free access to the products originating from LDCs is a welcome initiative. We expect this to be extended to all developing countries especially those that have not reached a sustainable level of development. Trade barriers against their products should be reduced, tariff peaks removed and GSP schemes expanded.

Mr Chairman,

Despite domestic financial constraints Pakistan has continued to provide technical, economic and humanitarian assistance to the LDCs. Under the Pakistan Technical Assistance Programme and Special Technical Assistance Programme for Africa fifty seats are reserved for students from LDCs in our professional colleges and more than 800 participants from LDCs have benefited from training programmes in the fields of banking, diplomacy, language skills, railways and accounting. The Government of Pakistan has also been extending trade credits and substantial humanitarian assistance to some LDCs. We would continue with our modest efforts in future as well.

Mr Chairman,

In order to ensure that this Conference succeeds in effectively contributing to the development endeavours of LDCs, the international community should not only agree on concrete and tangible measures but also muster the political will to achieve these goals. The Conference should also devise suitable implementation mechanisms to translate the POA into reality. We also hope that this Conference will lead to a reduction in the number of LDCs by utilising the innovative tools for wealth creation and development. We must commit ourselves to actions. This is the only way to achieve the goals that we set for ourselves and for LDCs.

Finally, I would like to assure you of Pakistan's fullest cooperation during the deliberations on these important issues. I would also like to assure our partners in the least developed countries of our full support to the cause which is not only theirs but ours.

 

I thank you, Mr Chairman.