Statement by Ms. Rabab Fatima at the High-level Euro-Asian Regional Review of the Vienna Programme of Action

Statement by

Ms. Rabab Fatima

High Representative and Under Secretary-General,

Least Developed Countries, Landlocked Developing Countries  and Small Island Developing States,

and Secretary General of the Third United Nations Conference on LLDCs

High-level Euro-Asian Regional Review of the Vienna Programme of Action for

the Landlocked Developing Countries for the Decade 2014–2024

22 August 2023, 9:00am

United Nations Conference Centre, ESCAP

Bangkok, Thailand

Honorable Ministers,

Executive Secretary of UN ESCAP, Ms. Armida Salsiah Alisjahbana,

Excellencies,

Distinguished Delegates,

Dear Colleagues,

Good morning to you all.

I am very pleased to join UN ESCAP and UN ECE in extending a warm welcome to all of you to this Europe and Asia regional review meeting on the implementation of the Vienna Programme of Action for Landlocked Developing Countries (LLDCs).

This is our third and final regional review meeting in preparation for the Third UN Conference on LLDCs to be held in Kigali, Rwanda next year.

I am especially pleased to see the presence of transit countries, development partners, UN system organizations and other international, regional, and sub-regional organizations here. Your engagement and support are critical to our shared endeavors.

Excellencies,

This meeting is a timely one.  

The Vienna Programme of Action for the LLDCs is coming to an end soon. And we are at the mid-point of the implementation of the 2030 Agenda.

Our primary objective is to undertake a comprehensive review of the implementation of the VPOA in Europe and Asia, reflecting on the challenges encountered, lessons learned, and the way forward. 

The outcome of this meeting will make important contributions to the next Programme of Action for the LLDCs, which will essentially be a development compact between the LLDCs and their development partners for the coming decade.

Over the last ten years, progress has been made in the implementation of the six priority areas of the VPOA, but it has been mixed and uneven.

The latest Sustainable Development Goals progress report paints a worrying picture, revealing that globally out of 140 targets, only 12 per cent are on track.   

It is estimated that by 2030, 575 million people will still be living in extreme poverty  around the world.

Many of these people will be from the LLDCs.

Even before the COVID-19 pandemic, many LLDCs were off track in achieving the SDGs.  Today, in the face of lingering impacts of the pandemic, overlapping crises, adverse geopolitical and economic conditions, the situation in the LLDCs has become worse.

For the Euro-Asian LLDCs, the pandemic has severely impacted international trade.

Over the review period, LLDCs’ share of global trade decreased from 1.2% in 2014 to 0.98% in 2021, with exports concentrated on primary commodities that have little impact on transformation and value addition.

Tourism, an important driver of economic activity in the region, continues to lag pre-pandemic levels.

Trade costs remain high, stifling global economic integration.

Structural economic transformation has also progressed slowly, and both Official Development Assistance and Foreign Direct Investment have stalled.

As always, food insecurity remains a serious threat, as does climate change and other systemic vulnerabilities.

Despite these challenges, there have been some promising signs.  

Progress has been achieved on the Asian Highway Network, the Trans-Asian Railway Network, Euro-Asian Transport Links, and the expansion and upgrading of airports.

Except one, all Euro-Asian LLDCs are WTO Members and have ratified the WTO Trade Facilitation Agreement. Progress is being made in implementing the Agreement.

LLDCs and their transit neighbours are improving transit and trade facilitation measures, such as the establishment of one-stop border posts, coordinated border management, national single windows, and information portals.

In the Euro-Asia LLDCs, transit and transportation times have been reduced. For instance, in 2020, transit cargo along Central Asia Regional Economic Corridors (CAREC) traveled on average 545 km per 24 hours. This is well above the VPoA target of 300-400 km per 24 hours.   However, this does not apply to all the corridors.

Further, noteworthy progress has been achieved in advancing the implementation of various other regional and sub-regional programmes and agreements, such as the South Asia Subregional Economic Cooperation Program (SASEC); BIMSTEC, (the Multi-Sectoral Cooperation Initiative bringing together Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand);  Bangladesh, Bhutan, India and Nepal Initiative (BBIN), and the United Nations Special Programme for the Economies of Central Asia (SPECA).

However, there is certainly scope to further enhance the potentials of the existing arrangements. 

Furthermore, Euro-Asian LLDCs are yet to  become parties to important international conventions and agreements concerning transit and trade facilitation.

Similarly, while efforts have been made to improve infrastructure development,  lingering challenges remain in some areas, such as  gaps in financing, poor road quality, and a general lack of widespread connectivity. This  situation is further exacerbated by climate change-driven disasters.

Excellencies,

The modest progress we have seen is not enough.

Now is the time to identify what has worked, what did  not, and what needs to be done moving forward to better execute on the unfinished goals and targets of the VPoA and the 2030 Agenda.

Our task is to ensure that the next Programme of Action for LLDCs is comprehensive and action oriented that charts an ambitious course of action for the transformative change in LLDCs.

While I recognize that it is the prerogative of the Member States to determine the key priorities for the next Programme of Action, allow me to present some specific suggestions  drawn from recent discussions and reports:

First, effective regional and sub-regional integration – including the implementation of relevant agreements -- is critical for the development of regional infrastructure, trade, and transport facilitation measures to enhance the connectivity of corridors and ensure faster, cheaper cross-border trade.

It is important that the international community supports the efforts of the LLDCs including in implementing the WTO Trade Facilitation Agreement.

Second, enhanced structural transformation –especially through extensive industrialization- is critically important.

The LLDCs need increased support to move to higher production frontiers and actively engage in regional and global value chains,  both in terms of goods and services.

Further, supporting micro, small, and medium-sized enterprises (MSMEs) and women entrepreneurs in the economies across this region will be pivotal.

Third, LLDCs need greater participation in e-commerce, new and dynamic service sectors, and digitally deliverable services. The digitally deliverable service sector is now a $3.8 trillion market and the LLDCs’ share is only $8 billion.  There is clearly huge potential to scale up.  

In order to do this, LLDCs will need help building a modern digital ecosystem that includes seamless broadband connectivity, access to energy, including renewable energy, and a digitally equipped community of experts. Additionally, LLDCs will also need better access to emerging technologies such as blockchain, AI, and IoT.

To this end, UNESCAP member countries should actively engage in the Asia-Pacific Information Superhighway initiative to accelerate digital transformation in the region.

Fourth, as per the provisions of Article 11 of the WTO Trade Facilitation Agreement and Part X of the UN Convention on the Law of the Sea (UNCLOS), the LLDCs have freedom of transit through the territory of transit States. We need greater collaboration for translating these provisions into concrete actions.

To do so, it is important to develop efficient transit infrastructure such as one-stop border posts, integrated check posts, as well as harmonizing transit and trade facilitation procedures. These are vitally important in the Euro-Asian LLDCs. Similarly, harmonizing technical and regulatory standards and achieving interoperability in transport infrastructure, are essential steps.

Fifth, the LLDCs face serious challenges due to extreme climate-related events. Their needs and priorities must be better integrated into the global climate related agreements and general discourses.

These countries more support to reduce climate risks, by scaling up adaptation and resilience building measures. There should be well-functioning, multi-hazard early warning systems, national risk information systems, and reliable data.

Finally, financing for development will be key to advancing a successful development agenda in the LLDCs for the next decade.

Indeed, the LLDCs need enhanced financing from all sources. This includes domestic sources, bilateral and multilateral donors, International Financial Institutions, Regional Development Banks, and Multi-lateral Development Banks, as well as South-South and Triangular Cooperation, and other sources of innovative and blended financing.

Around half of the LLDCs are either in debt crisis or at a high risk of it. Comprehensive debt relief measures are urgently needed and ODA and aid for trade commitments must be scaled up.

LLDCs also need capacity building support in several areas including for development of bankable projects, promotion of innovation and adaptation of technology, mobilizing domestic resources, data collection, and strengthening the enabling environment for investments.

The list is not exhaustive. I look forward to hearing your concrete ideas and contributions to our goal for an ambitious and action-oriented new programme of action.

Excellencies,

As we prepare for the Third UN Conference on LLDCs, let us seize this once-in-a-decade opportunity to galvanize global support and strengthen partnerships for transformative change in the lives of the 564 million people residing in the world's 32 landlocked countries.

To that end, we should aim to create the broadest possible coalition between LLDCs, their transit neighbors, development partners, the UN, and other stakeholders – both in this region, and globally.

As the Secretary General of the Conference, I, and my entire Office, remain fully committed to providing all support to make the Conference a success.

I wish you all a very productive and successful meeting.

I thank you.