RESOLUTION NO.5/29-E

ON ECONOMIC PROBLEMS OF THE LEAST DEVELOPED AND LAND-LOCKED MEMBER STATES

The Twenty-ninth Session of the Islamic Conference of Foreign Ministers (Session of Solidarity and Dialogue), held in Khartoum, Republic of Sudan, from 14-16 Rabiul Thani 1423H (25-27 June 2002),

Recalling Resolution No. 5/9-E(IS) adopted by the Ninth Session of the Islamic Summit Conference;

Recalling also Resolution No. 5/28-E adopted by the Twenty-eighth Session of the Islamic Conference of Foreign Ministers;

Expressing its profound concern over the serious economic problems faced by the Least-Developed Member States in particular the sharp decline in Official Development Assistance (ODA);

Expressing concern over the lack of access by the Least Developed Member States to private financial flows, and noting with regret the diminishing shares of these countries in official capital flows.

Expressing concern over the sharp decline in the prices of the raw materials, particularly those produced and exported by the least developed countries; as well as over the marginalisation of the LDCs in the world economy.

Having taken note with satisfaction that the Islamic donor countries continued to provide significant external aid and that the amount of aid distributed to the least developed countries exceeded 0.15 per cent of their Gross Domestic Product;

Noting with appreciation the efforts of UNCTAD in favour of the Least Developed and Land-locked countries and its useful annual Report on the Least Developed Countries and the Trade and Development Report.

Noting also with appreciation the holding of the International Conference on Development Finance on 18-22 March, 2002 in Monterrey, Mexico;

Expressing satisfaction with the IDB's efforts for the extension of assistance to the Least Developed Countries and for the opening of a special account for them as approved by the IDB's Board of Governors at its Seventeenth Annual Session held in Tehran in November 1992;

Noting with appreciation the study prepared and presented by SESRTCIC on the Problems of Least Developed and Land-locked Member States;

Having taken note of the report of the Secretary General,

1. Emphasizes the importance of achieving reductions in the outstanding debt of the Least Developed Countries to sustainable levels through debt-relief measures, particularly the HIPC initiative, in order to help relieve their financial burdens, enhance their credit-worthiness and improve their external financial prospects.

2. Notes with satisfaction that the Third United Nations Conference on the Least Developed Countries was held on May 2001 in Brussels from 14 to 20 May, 2001 and Appeals to the international community, particularly the developed countries, to fully and expeditiously implement the Programme of Action for 2001-2010 adopted by the Conference.

3. Reaffirms its decision to set up an open-ended OIC intergovernmental group of experts, including representatives of the OIC General Secretariat, IDB, ICCI, ICDT and SESRTCIC, with the mandate of examining the ways and means of implementing the Programme of Action for 2001-2010 in respect of the Least Developed Countries within the OIC and submitting proposals of intra-OIC cooperation in this regard for consideration by the Islamic Conference of Foreign Minister.

4. Calls upon the international community to help the LDCs to progressively integrate themselves into the world economy and strengthen LDC’s capacity to participate in the multilateral trading system, including facilitating accession to WTO by those LDC’s which are not already members.

5. Urges developed countries to increase their contributions and initiate new means within the framework of the International Development Strategy and to follow the example of countries who converted the debts contracted by the least developed countries into grants in order to facilitate the implementation of the structural adjustment measures undertaken by these countries.

6. Expresses concern at the declining trend in the quantity of ODA to the LDCs and stresses the importance of increasing Official Development Assistance (ODA) granted by the developed countries in favour of the developing countries in general and the Least Developed Countries in particular and calls upon developed countries to continue providing their official development assistance in parallel with facilitating the access of the products of the developing and the least developed countries to the markets of developed countries.

7. Notes with satisfaction the efforts of some Member States to extend assistance in the technical, financial, food and other forms to the least developed Member States and hopes that such assistance will continue.

8. Appreciates the efforts of the Islamic Chamber of Commerce and Industry in initiating a proposal of activating private sector in Islamic Least Developed Countries and Land-locked countries by establishing a Network of Small and Medium Enterprises (SMEs) in these countries.

9. Notes that the OIC Secretary General has set up a Task Force on Small and Medium Enterprises (SMEs) comprising of representatives of the OIC General Secretariat, IDB, ICDT, ICCI, SESRTCIC and some selected OIC country Chambers in accordance with Resolution 5/27-E adopted by the Twenty-seventh Session of Islamic Conference of Foreign Ministers and appreciates the efforts of the ICCI in organising, in cooperation with the Federation of Bangladesh Chambers of Commerce, a meeting of the Task Force along with a seminar on SMEs on 27-29 January 2002 in Dhaka. The Committee also noted that the second Task Force meeting will be held in Mozambique in 2003.

10. Calls upon the land-locked countries, their transit neighbours and donor counties to implement measures to strengthen further their cooperative and collaborative efforts in dealing with the transit problems in accordance with the Global Framework for Transit Transport Cooperation between Land-locked and Transit Developing Countries and Donor Countries.

11. Recognizes the necessity to respond effectively to the needs of Land-locked and transit countries so as to allow them to develop their transport infrastructure and road network and called on the developed countries to provide the necessary assistance to promote trade among the various parties.

12. Requests the Secretary General to follow up the implementation of this resolution and submit a report thereon to the Thirtieth Session of the Islamic Conference of Foreign Ministers.