UNCTAD TRUST FUND FOR LEAST DEVELOPED COUNTRIES BECOMES OPERATIONAL
Press Release
TAD/1838
UNCTAD TRUST FUND FOR LEAST DEVELOPED COUNTRIES BECOMES OPERATIONAL
19970205 GENEVA, 3 February (UNCTAD) -- Thanks to contributions and commitments by both developed and developing countries, a new initiative by the United Nations Conference on Trade and Development (UNCTAD) to establish a Trust Fund for Least Developed Countries to help them integrate in the world economy has now firmed up. Finance pledged so far and commitments in the pipeline represent over one third of the initial target of $5 million.At informal consultations of the UNCTAD Trade and Development Board on 31 January, governments were informed by the UNCTAD secretariat of the formal announcements by India, Switzerland and the Republic of Korea to contribute to the Trust Fund. In his statement, Officer-in-Charge of the UNCTAD Office of the Special Coordinator for Least Developed, Land-locked and Island Developing Countries, Chandra Kant Patel, stated that Switzerland, as part of its contribution of $3 million to UNCTAD's technical cooperation activities, has agreed to earmark $1 million towards the Trust Fund for Least Developed Countries. Both India and the Republic of Korea have made initial pledges of $100,000 each.
The Netherlands had made a contribution of $1 million to UNCTAD's technical cooperation activities in favour of least developed countries prior to the announcement of the intention to establish the Trust Fund for Least Developed Countries. The UNCTAD secretariat understands that the Government of the Netherlands will consider a further additional contribution for the Trust Fund once the Fund is operational. Likewise, France, Norway and Turkey have informally advised the secretariat that their authorities are actively examining the possibility of contributing to the Trust Fund. Other developed and developing countries are also considering contributing.
An innovative aspect of the Trust Fund is that it is funded not only by traditional donors, but also by developing countries, and potentially by least developed countries themselves. Financing will be sought also from the non-governmental sector, for example, non-governmental organizations, foundations and private companies.
Technical activities to be undertaken under the Trust Fund will focus on strengthening export supply capacities through the development of integrated country-level programmes. Such programmes may include support for trade policy reforms and trade diversification, and financial and fiscal sector reforms. Other objectives are to improve trade and investment supporting/ promoting services, enterprise development, enhancing the role of women in the development process, trade efficiency, and technology.
- 2 - Press Release TAD/1838 5 February 1997
For the Secretary-General of UNCTAD, Rubens Ricupero, "it is heartening that even in times of domestic budget stringency, the international community translates into action its concern, expressed at various United Nations conferences, regarding the risk of the weaker countries becoming increasingly marginalized in a globalizing economy".
There are currently 48 countries, 33 in Africa, classified by the United Nations as least developed, with a population of approximately 600 million and an average annual income of less than $700 per capita.
The 48 least developed countries are: Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Cape Verde, Central African Republic, Chad, Comoros, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Lao People's Democratic Republic, Lesotho, Liberia, Madagascar, Malawi, Maldives, Mali, Mauritania, Mozambique, Myanmar, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Sierra Leone, Solomon Islands, Somalia, Sudan, Togo, Tuvalu, Uganda, United Republic of Tanzania, Vanuatu, Yemen, Zaire and Zambia.
For more information, contact Chandra Kant Patel, Officer-in-Charge, Office of the Special Coordinator for Least Developed, Land-locked and Island Developing Countries, UNCTAD, Geneva, tel. (41 22) 907 5893/5892 or fax: (41 22) 907 00 46.
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