Third Conference on the Least Developed Countries

Brussels, Belgium,

15 May 2001

 

Statement on behalf of

Mr. Nitin Desai, Under-Secretary-General,

Department of Economic and Social Affairs

United Nations

 

Delivered by Ms. Yvette Stevens,

Director, Office of the Special Coordinator for Africa and the LDCs

Department of Economic and Social Affairs

 

 

            The Third LDC Conference represents a major turning point in the history of the Least Developed Countries. Since the Second LDC Conference in 1990, we have seen the unprecedented integration of the world through information and communications technology, particularly the Internet, as well as through trade and capital flows, particularly short term capital flows. Private capital flows now dwarf public flows to developing countries through official development assistance and multilateral credits. Regarding developing countries, the attention of the world media and of the private financial sector has progressively moved to a small group of high-growth economies on various continents, to which most of the foreign direct investment and other private capital outside the industrial world flows.

 

This is the backdrop against which the present conference takes place. One of the most important functions that this conference must play is to refocus world attention on the Least Developed Countries.

 

            Why should the world community, particularly the rich countries and the private sector, focus on helping the Least Developed Countries address their problems?  Because the sheer interconnectedness and rapid movement of goods, services, people and problems in today’s globalising world conspires to make the problems of poor countries also those of the rich countries. 

 

National boundaries cannot stop the HIV/AIDS virus, or the vectors of other diseases or the violence and unrest born of poverty and misery. These problems sooner or later stealthily seep through national frontiers and diminish the quality of life in other parts of the globe. With the growing global interconnectedness we can be sure that it will be sooner rather than later unless the world community joins forces with the governments of LDCs to fight the root causes of these problems at the country level, and to provide the enabling international environment for their resolution.  Today, therefore, the problems of LDCs have direct consequences for all of us, no matter where we live. 

 

Many of the most severely afflicted countries are LDCs, where these diseases have reached epidemic proportions.  These epidemics are rooted in the poverty of these countries and they can also spread with speed and severity to the industrial world.  Poverty and the competition for the control of minerals in these countries leads to chronic conflicts and civil wars that wind up costing the industrial countries and other countries of the affected regions far more in terms of peace-keeping efforts and humanitarian aid than the cost of development aid or of the risk-premiums that the private sector would require for investing there.

 

            For the United Nations entities that make up the Executive Committee on Economic and Social Affairs, which is chaired by the Under-Secretary-General for Economic and Social Affairs, Mr. Desai, the Least Developed Countries continue to be an essential constituency both for the United Nations’ policy work as well as its operational activities for development at the global, regional and country levels.  I shall address specifically the contribution that the Department of Economic and Social Affairs makes and will continue to make to the Least Developed Countries.

 

Most of you are familiar with the policy and normative role of the Department, which includes its very visible function as the substantive secretariat for the Economic and Social Council and its functional commissions as well as for the series of major United Nations conferences and for the United Nations Action Plan for the Development of Africa (UN-NADAF). For their part, developing countries and the LDCs in particular are very familiar with and appreciative of the important contribution made to their own development efforts by the country-level technical cooperation, including advisory services, provided by the Department. I will address how both the normative and  operational roles of the Department help LDCs.

 

An important contribution of the normative work of DESA to the advancement of the LDCs is through its substantive support to the Financing for Development Conference scheduled for 2002 in Monterrey, Mexico.  The Secretary-General’s report on Financing for Development calls for donor countries to contribute rapidly and generously to the trust fund for the integrated framework for trade-related technical cooperation in LDCs. The report also calls for donor agencies to harmonize their policies and procedures and to help improve the debt management capabilites of developing countries, including LDCs .

 

Another part of the normative role of the Department involves supporting the Committee for Development Policy, which for the past thirty years, has been mandated to identify which developing countries could be considered as “least developed”.  The Committee classifies countries as least developed if they face structural impediments to growth, either because of the nature of their economies or because of inadequate human capital.

 

The Committee bases its decisions on four criteria that are intended to reflect these impediments: (a) per capita Gross Domestic Product (GDP) of less than $900; (b) an Augmented Physical Quality of Life Index (APQLI); (c) an Economic Vulnerability Index (EVI); and (d) a maximum population size of 75 million. The EVI is aimed to identify structural deficiencies while the APQLI is a composite indicator of human resource capacity. To be recommended for addition to the list of LDCs, a country must meet all four criteria.  To date, the Committee has classified 49 countries as LDCs, of which 34 are in Africa. At the 1990 LDC Conference, there were  41 countries classified as LDCs, of which 28 were in Africa. This increase over the past decade highlights the urgency for converting the Programme of Action emerging from the present conference into concrete deeds.

 

These very characteristics that define LDCs pose a major constraint not only on traditional growth processes but also on these countries’capacity to take advantage of the new opportunities offered by globalisation. As pointed out in the documentation for this conference, the Least Developed Countries face not only a development resources gap but also a  gap in capacity and skills. It is that gap that the Department helps the LDCs to fill through its technical cooperation. The pressing need for human resources development and capacity building in the LDCs cannot be met without additional efforts by the international community in terms of both technical assistance and financial resources. This implies that the capacity building and technical cooperation programmes of the United Nations system – those of the United Nations funds and programmes, regional commissions, and the specialized agencies, and of DESA – are particularly important to and should focus on – the special needs of the LDCs

 

As concerns the initiative of UNCTAD on identifying “deliverables” in development cooperation for the LDCs, DESA is currently contributing or plans to contribute to several of the identified deliverables either directly or through related projects. I will specifically address concrete deliverables by DESA in the areas of water, energy, science and technology, governance, population research and statistical capacity-building which are key development challenges for the LDCs.

 

  1. DESA, in cooperation with the UN regional commissions, the ITU and the UNU, has launched a two-year project from the United Nations Development Account, of US $1.6 million, directed at selected countries in Africa and the South Pacific, aimed at improving water resources management and water services, at improving training and education in the water sector (including sanitation) in order to keep pace with demographic trends. It will develop a core curriculum in integrated water resources management; identify regional and country needs in order to customize the curriculum; establish regional electronic networks; train decision makers and trainers; and link with other regions to facilitate training through a “Virtual Learning Centre for Water.

 

  1. DESA, in cooperation with UNIDO has designed an innovative programme budgeted at $8.9 million euros over five years in rural capacities for water, energy, and local initiatives. This deliverable of universal interest for LDCs as a path to poverty eradication, is being proposed to interested donors for funding. The programme will contribute to the joint development of sustainable access to safe drinking water and renewable energy, through rural capacity building and provision of related technologies, as a leverage to create a dynamic of sustained improvement of livelihoods, health, employment and income for the rural population of LDCs. The programme will be tested in three West African countries, Benin, Mauritania and Chad, with another three African countries as “observers”, before being replicated in other LDCs, in the framework of a partnership between interested countries and donors, UNIDO and DESA. It is expected that the European Commission will be part of the partnership. The programme will be proposed by the governments of Mali and Austria and by UNIDO at the round table on energy.

 

  1. The LDCs desperately need energy to fuel their development. Natural gas is the least polluting fossil fuel, emitting only two thirds of the amount of carbon dioxide emitted by oil for equivalent energy produced. Sub-Saharan Africa possesses significant quantities of natural gas, but most of it is associated with oil and at present flared, that is burned off and wasted.  Therefore, DESA has proposed, along with other partners, a Natural Gas Exploration and Development Initiative for LDCs, which will establish a revolving fund, identify promising projects, and design and manage the projects as well as the recovery of the funds. 

 

  1. The Sustainable Development Division of DESA, along with the Office of the Special Coordinator for Africa and the LDCs, following an inter-governmental experts group meeting on energy and sustainable development, is currently preparing a regional plan of action for energy for sustainable development in Africa, which will, inter alia, help create the enabling policy environment for the energy initiative proposed by UNCTAD. The two units of DESA will also promote the South-South exchange of successful experiences and best practices in the use of renewable energy technology.

 

  1. A similar South-South exchange is planned in the application of productivity enhancing technologies in agro-food processing, preservation and export promotion in LDCs. DESA organizes triangular South-South cooperation with support from the governments of Japan and the Republic of Korea.

 

  1. DESA has set aside advisory services equivalent to $100,000 over the biennium 2002-2003 to provide technical support to the negotiation of double taxation treaties involving LDCs as a means to promote private sector investment in these countries. This assistance will complement a similar support by UNCTAD to the negotiation of investment treaties.

 

  1. DESA, along with UNDP, the European Union, and others intends to participate in the deliverable identified for improving public sector investment performance to enhance good governance, peace and social stability, particularly in the components on restructuring and strengthening public administration reform; transparent and accountable public sector management; decentralisation and strengthening of aid coordination and management capacity.

 

8.      DESA will also play a major role in the deliverable identified for conflict prevention, management and resolution for durable peace; particularly in the components on governance and the rule of law; conflict risk assessment and conflict management.

 

9.      DESA is helping address the digital divide in the population policy and research area in developing countries, including LDCs, through a set of activities launched in 1999 called the “Internet for Population Research,” which aim at promoting the effective use and sound institutionalization of information and communication technologies by population training and research centres in developing countries, while fostering cooperation – particularly South-South cooperation – among the institutions concerned. Two regional networks have been launched so far. One called ‘Demoneta’, comprises six population research and training institutions in francophone Western Africa in Burkina Faso, Benin, Mali, Cote d’Ivoire, Cameroon, and Togo. The other network links institutions in Asia. A third network, comprising population research centres in the five Portuguese-speaking countries in Africa as well as in Brazil and Portugal is currently at the planning stage. In substantive terms, it is envisaged that the networks will increasingly explore the use of information and communications technologies for distance learning in population studies as well as for enhancing the role of national population research institutes as public providers of high quality population data and analyses.

 

  1. The technical cooperation programme of the UN Statistical Division of DESA addresses the lack in LDCs of accurate data on economic and social variables required for policymaking and monitoring of progress, through its regular budget programme of technical cooperation and advisory services for statistical capacity building; through country projects funded by UNFPA and UNDP dealing with population and housing census-taking and statistical capacity building; as well as through on-going and planned development account projects in statistical capacity building covering the CARICOM, ASEAN and ESCWA regions. The Statistics Division has also been mandated by ECOSOC to support national efforts aimed at promoting basic indicators for the integrated and coordinated implementation of and follow-up to major United Nations conferences and summits. Guided by the Statistical Commission of ECOSOC, these activities focus on rationalizing and harmonizing the various sets of conference indicators and on strengthening national statistical capacity to produce relevant indicators for policy decision-making.

 

  1. The Division of Social Policy and Development of DESA is extensively involved in providing capacity building technical cooperation to LDCs and small island states and is actively supporting the follow-up and implementation of the Social Summit held in 1995, which addressed, among other things, the need to provide enhanced capacity to LDCs to address extreme poverty, social exclusion, lack of opportunity and unemployment.  Four major follow-up workshops are being implemented under the Development Account to implement the commitments made at the Social Summit, in Africa, Latin America and the transition economies. The workshops enhance capacity for social development and complements the on-going technical support activities spanning some 30 or more LDCs. One of the new concerns is the need to support countries to obtain the maximum benefits from globalisation and be able to meet the challenges and reap the opportunities of a rapidly globalising world.

 

 

In concluding, I wish to say that DESA, along with its other United Nations partners, looks forward to the outcomes of this landmark conference, particularly the Programme of Action, which will serve as our roadmap for cooperating with the LDCs in this first decade of the new Millennium. As I mentioned, since the 1990 LDC Conference, the total number of LDCs has increased from 41 to 49 and the number of African LDCs has increased from 28 to 34.  During this time only one country graduated from the category. It is our fervent hope that, in contrast with the past decade, over the next ten years, with the joint efforts of the LDCs themselves and the world community, a substantial number of countries will be able to progress and prosper in the direction of graduation from the category of LDCs.  To further that end, DESA will continue to work alongside its UN and other partners in the normative, analytical and operational areas.