Statement by

Mrs. Grazyna Bernatowicz

Deputy Minister for Foreign Affairs of the Republic of Poland

(Check Against Delivery)

Mr. Chairman,
Distinguished Delegates,
Ladies and Gentlemen,

It is my great honour and privilege to address the Third United Nations Conference on the Least Developed Countries in Brussels. I hope that the Conference shall contribute to generate enough political momentum to find successful solutions to the developmental problems of the LDCs, bearing in mind our common responsibility in this endeavor.

The Least Developed Countries represent the poorest and weakest segment of the international community. Ten years after the adoption of the Paris Programme of Action, the targets set therein have not been achieved and the Least Developed Countries have not been able to take advantage of the ongoing process of globalization, which in some cases has also led to their further marginalisation. The Least Developed Countries as a group has not overcome the most acute challenges of basic development processes such as access to education, fresh water, health services, limited productive capacity or poor infrastructure rind has been additionally confronted with new challenges such as access to information or communication technologies - indispensable in the globalize economy.

Before the UN: lies an enormous task of how to foster a favorable environment to allow the LDCs to integrate fully into the world economy. For long, the multilateral trading system was the main tool that was contributing to the improvement of living standards in Least Developed Countries, however during the period following the Uruguay Round, this impact has become somehow less noticeable. This fact weakened the Least Developed Countries' confidence in international trading mechanisms and the international community carries the responsibility to remedy this situation.

The international cooperation aiming at improving the situation of the poorest countries of the world cannot be confined to governments alone and must include a wide range of actors. The intergovernmental agreements will not be effective if they do not include participation of the private sector, civil society, and particularly those who are the most vulnerable and disadvantaged such as the poorest or women.

The programmes aimed at assisting individual countries to overcome barriers have to be country-driven and adapted to the specific circumstances of each country. But a number of conditions have to be also fulfilled by the Least Developed Countries themselves and they include, inter cilia, maintenance of political stability, rule of law, ensuring equal opportunities for all.

The Secretary General of the United Nations Mr. Kofi Annan in his r Millennium Report pointed out some encouraging examples of very poor countries which managed Millennium achieve high GDP growth thanes to their own efforts. He concluded with a very relevant question: "what precisely are the impediments elsewhere?” Lets hope this conference will allow to respond to that question.

Mr. Chairman,

In the preparatory process for this conference we have undertaken the review of our own policy versus the Least Developed Countries. The figures illustrating Poland's trade with the Least Developed Countries are not very impressive. Polish direct imports from that group amount to about 75 million US dollars, which represents about 0.3 per cent of total imports. This situation persists in spite of the fact that Poland applied a general system of preferences (GSP) covering about 80 per cent of tariff lines. It indicates that GSP itself is not a sufficient tool to stimulate imports from this group of countries.

We are determined however to further improve trade relations with the Least Developed Countries and to make trading conditions more attractive.

I am very pleased to declare our support to the initiatives aiming at improving market access to products originating from the Least Developed Countries. A great majority of goods from the Least Developed Countries will be exempted in Poland of any tariff or non-tariff barriers as of 2002. I hope that proposals such as the one submitted by the UE "Everything but Arms" and proposals of other countries, will find appropriate consideration by this Conference.

Let me also stress here my deep conviction that the future round of multilateral trade negotiations constitute an excellent occasion for further liberalization of trade which will serve as tools and mechanisms allowing the Least Developed Countries to achieve higher rates of economic growth.

I believe also that membership in the WTO can be an important stimulus for boosting trade and development of the poorest countries.

There is still a slumber of the Least Developed Countries that are not yet WTO members or are in the process of accession. We should, therefore, elaborate urgently a simplified system of gaining the WTO membership by LDCs so that they could fully and actively participate in the next round of multilateral trade negotiations and avail themselves of the WTO technical assistance.

Mr. Chairman,

Financial barriers and indebtedness create enormous problems in the development efforts. This growing problem prevents developing countries in general, and the least developed countries in particular, from active participation in the global economy as well as limits their foreign trade capabilities and access to international financial market. The importance and the worldwide scale of the problem have led to the creation the Highly Indebted Poor Countries Initiative (HIPC).

Poland wishes to participate in the efforts of the international community to allow the Least Developed Countries to leave the vicious circle of foreign indebtedness. The Government of Poland intends to contribute, in five yearly installments, the equivalent of SDR 5 million of the PRGF-ESAT Trust to facilitate the provision of debt relief to the Fund's poorest and most indebted members. The first installment of the grant was transferred in July 2000. The next annual-installments will be paid till the end of 2004.

I would like to stress that the envisaged grant contribution is an addition to the twenty-year interest-free deposit of more than 7 mln SDR that was transferred to the PRGF-HIPC Trust in June 2000.

Poland supports the HIPC Initiative and debt reduction as a significant step forward in ensuring sustainable growth of some of the poorest countries in the world.

Mr. Chairman,

Development cooperation is becoming an integral part of the Polish foreign policy. We strongly believe that an active part in efforts to resolve global development problems is our moral and political duty, especially to the inhabitants of the poorest countries as well as those, which struggle with economic and social problems or are victims of conflicts or natural disasters.

We are in the process of establishing our own system of development cooperation through which we intend to share our experience in development and transformation processes. This can be also of relevance to some Least Developed Countries. In our universities we host a large number of students of both MA and Ph.D. degrees from many Least Developed Countries and we are committed to further expand our scholarship and other programmes of assistance. At the same time we strongly believe that one of the most efficient channels to assist the Least Developed Countries is through multilateral organizations, which have an important know-how, expertise and infrastructure in this field. This is why Poland's contributions for development assistance, in particular through multilateral channels, are steady growing. The overall Poland's ODA, accounted in accordance with the DAC rules, reached nearly 29.6 mln UDS dollars in the year 2000.

Mr. Chairman,

The success of this Conference will not be measured by a number of officials attending it or statements made. Its success or failure will become evident in the near future by assessing how many countries are still to be considered the least developed ones. We gathered here to take important measures, which can enable them to break the vicious circle of poverty and underdevelopment. It is our obligation, and let me put it veer clearly, not only obligation but also the interest of all of us, to make those measures effective.

Statement by

Mr. Chairman,

We are determined however to further improve trade relations with the Least Developed Countries and to make trading conditions more attractive.

Let me also stress here my deep conviction that the future round of multilateral trade negotiations constitute an excellent occasion for further liberalization of trade which will serve as tools and mechanisms allowing the Least Developed Countries to achieve higher rates of economic growth.

I believe also that membership in the WTO can be an important stimulus for boosting trade and development of the poorest countries.

Mr. Chairman,

I would like to stress that the envisaged grant contribution is an addition to the twenty-year interest-free deposit of more than 7 mln SDR that was transferred to the PRGF-HIPC Trust in June 2000.

Mr. Chairman,

Thank you.

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