(Brussels, 18 May) New bilateral investment treaties, venture capital opportunities for rising entrepreneurs from among the world’s poorest countries and a proposed “Buy LDC” campaign, all initiated today at the UN Conference on the Least Developed Countries, are giving a new look to the business profiles of the LDC nations.

Twenty-two treaties paving the way for increased foreign direct investment between developed countries and LDCs (mostly in francophone Africa) were signed at the ministerial level at a ceremony presided over by Rubens Ricupero, Secretary-General of the Conference, and Boutros Boutros-Ghali, Secretary-General of the International Francophone Society and former Secretary General of the United Nations. The treaties were facilitated by the UN Conference on Trade and Development, which is headed by Mr. Ricupero.

At a press conference on investment opportunities, Cambodian Commerce Minister Cham Prasidh stressed the need for governments to prepare the ground for increased flows of foreign direct investment (FDI), and to avoid the dangers of a “race to the bottom”.

The business community itself wants to avoid a “race to the bottom” effect, by which nations seek to attract FDI by bringing down standards and relaxing regulation, said Maria Cattaui Livanos, Secretary-General of the International Chamber of Commerce (ICC).

“Governments with low standards are not going to attract the companies we represent”, she said, at the same briefing at which Mr. Prasidh spoke. Rather, all the studies show that investment favours countries with strong governance. One problem is that the message of good work done by governments in the LDCs is not getting out.”

Ms. Cattaui Livanos also agreed with other participants at today’s briefing that aid and investment complement each other, and that increased private capital flows will not substitute for official development assistance. Especially in support of governance, she said, “more development assistance is needed, not less”.

Mr. Prasidh said that as a follow-up to the Conference, LDCs will be discussing the possibility of an international “Buy LDC” campaign. By labeling the portion of value in consumer goods that derives from LDCs, consumers would be able to choose to support economic advancement in poor countries. Also, governments might be encouraged to steer procurement in the direction of these nations, he said.

Today’s afternoon meeting of more than 100 aspiring business leaders featured a session known as “Let’s Make a Deal”. Young entrepreneurs from the LDCs pitched an audience of venture capitalists on proposed start-ups, and then met one-on-one to talk terms. Organizers say that it will take several weeks to compile the results, but deals concluded at similar sessions in the past have been in the range of $500,000 to $35 million.

Issued by the UN Department of Public Information

Contact: Tim Wall, 32-2-280-6295