Speech by the Swedish Minister for Development Cooperation, Mrs. Klingvall, at the UN World Conference on the Least Developed Countries, 15 May 2001

Honourable guests,

Mr/Madam Chair,

Ladies and gentlemen

It is an honour for me to be here. I hope that we through this conference can come closer to the overall goal; to facilitate for the Least Developed Countries to lift themselves out of poverty through integration in the world economy on terms that they can benefit from.

This conference must focus both on countries and on people. In the centre for development efforts are individuals, women and men, girls and boys and their right to a life in dignity. The World Bank Report "Voices of the poor" was a powerful testimony. It put the human being in the centre and recognised that poverty is much more than lack of material resources.

To be poor is to feel insecure and time and time again be forced to take short term decisions of vital importance for oneself and one's family. To be poor is about lack of rights, knowledge and influence.

This conference must address all aspects of poverty.

We are gathered in a time when there is a political commitment to reduce poverty at the highest level. International development goals have been adopted and confirmed in the UN Millennium Declaration last fall.

The international community has undertaken a joint responsibility to reduce by half the population living in extreme poverty by 2015. This conference is a window of opportunity to make a landmark to fulfill this goal.

It is a complex challenge - not at least in LDCs. The overall picture is one of increasing human suffering.

At the same time we have seen impressive advances. We have seen amazing progress in the fields of technology and science. Living conditions have improved considerably for many people. We have also seen a stable trend towards democracy and economic growth in many developing countries.

This shows that it is possible. I believe that we today possess the knowledge and resources to eradicate poverty.

Chair,
We can achieve the international development goal by working together not primarily as donors and recipients - but as partners.
The political will must be demonstrated within all governments. The global response must be stronger in terms of more resources and market access to the least developed countries. But the main responsibility lies with the government and the people in the developing countries.
Only good governance, in all its aspects, and consistent, stable and suitable economic policies can offer a solid ground on which effective poverty reduction strategies can be founded.
Good governance also implies involvement and co-operation with an active and organised civil society.
Good governance means democracy and respect for human rights.

Chair,
As donors we should be serious in our support to the poverty eradication efforts by the countries concerned. To that end financial resources are definitely needed.
The fact that overall ODA flows last year declined and returned to its lowest level ever casts a dark shadow over this conference. I believe that this issue will be one of the key topics we need to address.
But let me also highlight some important progress. The decision in OECD Development Assistance Committee last April to untie all ODA to LDC's is groundbreaking. It was a historic decision that will considerably add value to international development co-operation.

I am also pleased to announce that Sweden will substantially increase its allocations for development co-operation. Last year the Swedish ODA disbursements reached 0.81 percent and allocations will continue to grow up to 0.87 percent 2004. These are clear steps towards our goal of again realise the one percent target of ODA.

Of particular importance to this very conference is that this makes it possible for Sweden within the coming decade, to increase the ODA to LDC's to 0.25 percent of GNP.

In terms of value added this will provide large amounts of new financial resources. Our first estimates suggest that the increase could provide for new additional resources to LDC's in the magnitude of about 4 billion Swedish Crowns over the coming ten years. This would be equivalent to some 400 million US dollar.

The debt burden continues to be a major obstacle to development in many of the developing countries. The enhanced HIPC initiative gives many of the poorest and most heavily indebted countries an opportunity to look forward beyond the worst debt crisis. But even after countries have reached their decision and completion points, debt service will continue to be a major budgetary cost for LDCs.

We have found budget support to be a useful tool supporting HIPCcountries in their efforts to realise their poverty reduction strategies. Only last week Sweden took a decision to allocate another 50 million US dollar to debt relief and budget support this year.

During the protracted debt crises the productive capacity in many LDCs has deteriorated. With HIPC in place, LDCs and donor partners can now shift the focus to measures that enhance productive capacity. These measures must strengthen human capacity for development through education and health.

We must also support investments in infrastructure. Farmers need better roads and means of transportation to reach their markets. Sustainable energy must be available - not only in urban areas. In the era of globalisation the LDCs cannot postpone their connectivity. This demands for greater investment also in ICT.

Hiv/aids destroys human productivity. It tears apart the fabric of society and blocking progress in all fields of human endeavour. This scourge demonstrates the need for coherent action between a broad range of issues, from development co-operation, social policies, treatment and care, to trade and intellectual property rights. I welcome the new EU policy framework and programme for action on communicable diseases closely related to poverty reduction. It includes the increase of affordability and access of key pharmaceuticals and willingness to stimulate research and development of new generations of global public goods such as vaccines, drugs and diagnostics. But it also recognises that prevention is a key priority to fight communicable diseases and so is support for the development of sustainable equitable health systems.

The EU decision to provide duty and quota free access to the EU for all products originating in the LDCs, except arms and ammunition is another major deliverable to this conference. I hope that other trading partners will follow the EU-example and expeditiously open up their markets.

Chair, Sweden will continue to work actively with other delegations to produce a final document which contains deliverables which can assist the LDCs in making headway.

In doing so, I would like to stress the need for the cross-cutting themes that we would like to see fully reflected in the Programme of action:

Firstly. It is pivotal that the programme of action reflects the fact that peace-building and conflict prevention are prerequisites for development at large.

Secondly. In fighting poverty, we need to address the gender based discrimination. This must be reflected in the Programme of Action. Gender equality and the empowerment of women should be fully considered in all areas.

Thirdly. The programme of action should also reflect the mutual dependence between poverty eradication and environmental protection.

Chair, Let me return to from where I started and quote one of those this conference is really about:

"Poverty is pain; it feels like a disease.. It attacks a person not only materially but also morally. It eats away one's dignity and drives one into total despair".

This is one of the voices of the poor.

Thank you.