Statement by
Mrs.
Lindiwe Hendricks, Deputy Minister of Trade and Industry,
Republic
of South Africa
LDC
III Conference – May 16, 2001 (Morning Session)
(Check Against Delivery)
Chairperson,
Excellencies,
Distinguished Ambassadors and delegates,
It is indeed a privilege to be part of this historic
conference where we have the opportunity to make a contribution that could have
a positive impact on the lives of the more than 600 million people that live,
mostly in abject poverty, in the Least Developed Countries (LDC).
Allow me to first of all thank the European
Union and Belgium for funding and hosting this important Conference. Mr Rubens
Ricupero, Secretary General of United Nations Conference on Trade and
Development (UNCTAD) and his staff also deserves a special acknowledgement for
the sterling work they have done to organise this Conference.
Chairperson,
Today LDCs are in a worse situation than two
decades ago even though two UN Conferences have been held during this period
addressing their plight. South Africa’s
participation is based on the need for both the LDCs and their development
partners to establish concrete mechanisms for co-operation, which should
ultimately contribute to poverty eradication and sustainable development of the
LDCs. All countries present here today re-affirmed their support for addressing
the needs of the LDCs through their contribution and acceptance of the
Millennium Declaration. In that Declaration we agreed to halve by the year 2015
the proportion of the world’s people whose income is less than 1 US dollar a
day.
Furthermore, the Declaration urged Industrialised
countries to:
·
Institute a policy of duty- and quota-free
access for exports from the LDCs;
·
Increase the speed of the delivery of debt
relief;
·
Cancel all official bilateral LDC debt; and
·
Grant enhanced development assistance.
Chairperson,
South Africa welcomes the increased prominence
being given to market access issues for LDC products. Increased market access
would contribute to poverty reduction, enhance and stimulate economic growth in
LDCs. This would also lead to an expansion of the export base as well as an
increase their revenue base. LDCs would therefore be in a position to finance a
larger portion of their own development needs.
Nevertheless, with underdeveloped productive
capacities LDCs are not able to take advantage of these market access
opportunities offered to them. For LDCs to adequately seize these
opportunities, developed countries are called on to assist them with skills
enhancement and technology transfer to promote the beneficiation of primary
commodities.
Chairperson,
Furthermore, there are industries in developed
countries which are inefficient and which LDCs have comparative advantages in, such
as agriculture, clothing and textiles. In the same manner as LDCs have
undergone structural adjustment, developed countries are encouraged to
institute similar measures in terms of restructuring these sectors by reducing
and eventually eliminating distortive support measures. According to the World
Bank, protection to the agricultural sector by developed countries amounted to
US$ 266 billion annually, during 1997-1999.
South Africa is of the view that
employment-creating manufacturing could be an important catalyst raising the
competitiveness and value-adding of LDC products. The development of
infrastructure must support efforts to diversify the export base of these
countries. FDI flows to LDCs must be enhanced into extractive sectors of the
economy as well as into down-stream processing activities. Economic growth and
development could also be stimulated through the development of the Small,
Micro and Medium sized Enterprise (SMME) sector.
Furthermore, advances in Information and
Communications Technologies (ICTs) have reduced the cost and increased the
speed of communications across the globe and affects all areas of social and
economic life. A further positive aspect is the integration of national systems
of production and finance. We are however concerned that it has also
contributed to the further marginalization of those countries unable to compete
effectively. Developed countries have a role to play in assisting developing
countries to bridge the digital divide through institution building and the
strengthening of the technological base of LDCs.
Chairperson,
South Africa, along with other African countries is
in the process of developing the Millennium Partnership for the African
Recovery Programme, known as the MAP. At this stage a detailed programme of
action is being developed for consideration by the OAU summit in Lusaka in July
2001. On the basis of such a programme
Africa will seek partnership based on mutual respect, interdependence and
commitment with developed nations. We would therefore like to use this
opportunity to call on the developed world and multilateral organisations to
support the MAP.
A critical element of this programme will be that
Africans themselves will take responsibility for the development of the
continent.
This new partnership envisaged in the MAP should
also be extended to include the contribution and participation of the private
sector. The private sector plays a vital role in wealth creation,
capacity-building, facilitating technological transfers and providing financial
support to LDCs. We acknowledge that for the private sector to flourish and
play a meaningful role, issues such as stability, rule of law, good governance
and predictable macro-economic policies need to be addressed.
The MAP also contains a recognition of the rich
environmental resources in Africa, which we intend to nurture and use for
sustainable development and trade. This is by no means a task that the
developing world, least of which the LDCs, can do by themselves. In this
regard, South Africa urges all parties to the UN Framework Convention on
Climate Change to actively seek solutions for the problem of global warming and
to continue the engagement of all parties in the Kyoto protocol negotiations.
Chairperson,
The request for increased Official Development
Assistance (ODA) is also of great importance as persistent poverty in most LDCs
makes it difficult for development to be stimulated through national savings
only. The evidence that ODA is increasingly being better utilised by LDCs should
encourage the developed world to increase its contribution of ODA. While we
appreciate the efforts of 15 OECD countries, which have increased their ODA in
2000, we are at the same time disappointed by its overall decline. We urge
donor countries to honour the level of ODA with respect to GNP which they have
agreed to, namely 0,7%.
South Africa would like to see the creation of an
enabling environment for LDCs, which would provide them with the
infrastructure, financial, educational and technological means to become
integrated into the global economy as equal partners. A particular challenge
for LDCs is attracting investment. In this regard, the industrialised countries
should assist LDCs with programmes to attract foreign direct investment.
We have noted that the LDCs have also acknowledged
that they have a contribution to make through their country specific programmes
and accept the need to take responsibility for their own development. The
request by LDCs for a fair and stronger partnership with the rest of the global
community, in their endeavours to facilitate their integration into the global
trading and financial community, should be supported.
Chairperson,
South Africa considers that this Conference offers
all of us an opportunity to renew our commitment to address the development
challenges facing LDCs. Developing
countries also having a responsibility and obligation to assist the development
of LDCs. In this regard, South Africa has taken the following actions:
·
The cancellation of Mozambique’s bilateral
debt;
·
Pledging resources to the Poverty Reduction
Growth Facility of the IMF;
·
The cancellation of debt of Namibia;
·
A commitment to assist Lesotho to graduate
from LDC status within five years;
·
Collaborating with LDCs on projects of
building basic infrastructure such as the Maputo development corridor;
·
Taking an active part in regional peace
building initiatives; and
·
In the context of trade related capacity
building for LDCs South Africa has hosted several workshops the most recent of
which was the pre LDCs III workshop on mainstreaming gender in development
strategies.
Chairperson,
In addition, South Africa, Algeria and Nigeria were
mandated by the OAU to raise the issue of debt cancellation for African
countries with the industrialised countries. Consultations between our leaders
and the leaders of the G-7 industrialised countries continue and we welcome
recent positive announcements on this issue.
In this regard, we note the resolve of our leaders
in the Millennium Declaration to take special measures to address the
challenges of poverty eradication and sustainable development, including debt
cancellation, improved market access, enhanced ODA and increased flows of FDI
as well as transfers of technology.
Chairperson,
Furthermore, South Africa believes that the World
Trade Organisation, despite its imbalances, offers the best opportunity to
level the playing field in the multilateral trade arena. We are committed to
see the concerns of LDCs addressed in a way that will enhance their integration
into the global economy. In this regard, we urge all member countries to
actively participate in a rules based trading system that is more responsive to
the needs of LDCs.
Chairperson,
As highlighted during the workshop on “Building
Capacities for Mainstreaming Gender in Development Strategies”, held in Cape
Town, South Africa during March this year, it is important to emphasise the
linkages between gender, poverty reduction and development. In this regard,
LDCs should be supported in promoting capacity-building to mainstream gender at
all levels. Gender equality should be advanced and promoted as an integral
component of the economic agenda. It is therefore critical that the empowerment
of women should become a major focus in the areas of trade, finance and
investment.
One of the most significant outcomes of the
Workshop was the call for the Secretary General of the United Nations to
establish an eminent persons group, who will be tasked to examine the best
methods of mainstreaming gender in development. As delegates will know, I, as
host of the workshop, have reported to this conference on the developments at
and outcome of the Cape Town workshop. I am pleased to see that some aspects of
the Cape Town workshop have already been reflected in the Plan of Action. We
were encouraged by the commitment made by the Secretary General of UNCTAD
yesterday to institute a mechanism within the Secretariat in line with the
outcome of this Workshop.
Chairperson,
We encourage more developing countries, in the
context of South South co-operation, to play a greater role in the development
of LDCs. We would however like to re-iterate that this in no way diminishes the
special obligations of developed countries towards LDCs.
Conference participants are aware of the specific
challenges facing LDCs and the demands being placed on both LDCs and
development partners to ensure that this event is successful. Let us not miss
this opportunity to agree on a framework that will ensure that international
development targets, such as those set out in the Millennium Declaration, are
met.
It is important that the follow-up to this
conference should contribute to the effective execution of the proposed
Programme of Action, involving all stakeholders, without creating any
duplication and wastage of valuable and scarce resources.
Chairperson,
We also consider that the outcome of this
conference will have far reaching implications for the World Summit on
Sustainable Development, scheduled to be held in Johannesburg next year. In
this regard I would like to appeal to all countries represented here to
participate in preparations for the Summit.
South Africa is committed to playing a supportive
role in assisting LDCs to reach their full potential. It is our hope that at
the next decade, we will look back at this Conference as having been the
starting point of an effective global partnership that addresses the needs of
the poorest of the poor.
I thank you.
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