ENTREPRENEURS FROM POOREST COUNTRIES CAN SEIZE GLOBAL ECONOMY’S OPPORTUNITIES, SAY SPEAKERS AT BRUSSELS CONFERENCE BUSINESS ROUND TABLE

  ENTREPRENEURS FROM POOREST COUNTRIES CAN SEIZE GLOBAL ECONOMY’S OPPORTUNITIES,

 SAY SPEAKERS AT BRUSSELS CONFERENCE BUSINESS ROUND TABLE

(Received from a UN Information Officer.)

BRUSSELS, 16 May -- Despite facing serious supply-side and market-access challenges, entrepreneurs from the world’s poorest countries can seize emerging opportunities in the global economy.  This was the message of a business-sector round-table discussion today at the Third United Nations Conference on Least Developed Countries, being held this week in Brussels.

Some 75 participants -- entrepreneurs and senior policy-makers from least developed countries (LDCs), buyers of LDC products from developed countries and LDCs’ bilateral and multilateral development partners involved in trade development -- took up a variety of topics related to the meeting’s theme:  “Converting Least Developed Country Export Opportunities into Business: a Strategic Response”. 

Among the points raised were that successful entrepreneurs from the world’s poorest countries had overcome the enormous obstacles facing them by proper selection of markets for their products, building a strong and sustainable position within the selected market, and consistently working to increase competitiveness.  Speakers pointed out that there were many impediments to trade, including tariffs and non-tariff barriers, and called for efforts to overcome them.  In that context, they urged governments to consider all aspects of the private sector.

Other speakers drew links between the success of local entrepreneurs and the overall success of a country’s economy and pointed out that, although their revenues might be relatively small on the global scale, LDC entrepreneurs had achieved considerable success.  Others noted that, despite efforts to reduce trade barriers, LDCs were not always in a position to take advantage of them.  The need for new thinking and approaches to the problems facing LDCs, such as the use of new information technology, was also supported, as was the absolute imperative of public-private sector partnerships in efforts to improve trade. 

The meeting was divided into two segments:  products and markets for LDC exports; and creating an enabling environment for export competitiveness. 

During the first segment, presentations were made by a number of successful entrepreneurs from LDCs.  The Managing Director of Nali Ltd., a chili-and-hot sauce exporter from Malawi, for example, noted the difficulties she had faced in

penetrating market barriers, and called on her Government to place greater emphasis on trade to help exporters like herself.  She said her success was attributable to long-term ownership, the relative stability of the country, the fostering of a good working environment, and an improved product. 

Other success stories were told by representatives of:  Frager, in Haiti; Nabekam-Bio, Guinea; Etho Metho Tours and Treks Ltd., Bhutan; Meskel Flower Inc., Ethiopia; Magin Confeccoes Lda, Mozambique; Cheetah Zambia Ltd., Zambia; Greenfields Ltd., and Tiviski, Mauritania.  The last speaker, Tiviski’s managing director, noted how many jobs the companies of those who had spoken provided.  Small-scale private operators created great wealth, but had to face many barriers.  She had the feeling that the aid flows to LDCs did not go to her sector.  She urged governments to take exporters into consideration, as part of their poverty- reduction efforts.

In the second segment, speakers addressed a number of subjects related to trade-strategy formulation and the importance of quality and standards for the export competitiveness.  They placed great stress on the importance of trade as a development tool and emphasized the need to create adequate conditions for trade and investment in LDCs.  Presentations during this segment focused on three LDCs: Guinea; Cambodia; and Burundi. 

During a presentation on Cambodia, Uri Dadush, the Director of the Economic Policy and Development Prospects Group of the World Bank, said that it was possible even for the poorest countries to integrate into the world economy and achieve reasonable growth if the proper conditions -- macroeconomic stability, openness, and peace -- were in place.  He cited, however, the considerable impediments to exports, both inside and outside an LDC’s borders.  Exposing those impediments was essential, as was ownership of the process by the countries concerned. 

Adien Sibomana, President of Gexhobu, an agricultural export company in Burundi, drew the participants’ attention to the great difficulty posed to the private sector by crisis and conflict.  Throughout the segment, representatives of both the public and private sector stressed the need for governments to create environments suitable for trade and investment.  The private sector, speakers urged, should be closely involved in all efforts to improve trade.

In an opening statement delivered at the outset of the meeting, Rubens Ricupero, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), noted the interactive format of the LCD Conference and emphasized the importance of coming up with “deliverables” that could be practically applied.  Trade was very frequently taken as meaning trade negotiations, but that was only one side of the coin.  Measures must be taken at the policy and entrepreneurial levels to implement the outcome of the negotiations.  He stressed the importance of making developing countries competitive, so that they could take advantage of trade negotiations.

Ablasse Ouedraogo, Deputy Director-General of the World Trade Organization (WTO), also made an opening statement, saying the private sector and governments must work together towards sustainable growth.  The WTO agreements were signed by governments, but would end up being used by the private sector.  One of the prime

concerns of the private sector was that more liberalization should take place in market access, he noted.  Tariff and non-tariff obstacles were still placed as blocks against imports, making it difficult to export high-value products from LDCs.

A representative of the United Nations Industrial Development Organization (UNIDO) stressed the need to master globalization, so it was a positive force for globalization.  The private sector was the international community’s most powerful ally in the fight against poverty, he stressed.  Competitiveness was really the imperative for globalized trade, he noted.  He announced that UNIDO had launched a new and comprehensive initiative on enabling LDCs to participate in international trade.

Kweronda Ruhemba, Uganda’s Minister for Economic Monitoring, gave an overview of Uganda’s efforts over the past 10 years to improve the trade climate in his country.  Sok Siphana, Secretary of State, Ministry of Commerce of Cambodia, presented his country’s economic situation, as did Guinea’s Trade Minister.

Mpho Malie, Minister for Trade, Marketing and Industry of Lesotho, moderated the segment of the meeting on products and markets for LDCs exports, while Musa Sillah, Minister for Trade, Industry and Employment of the Gambia, moderated the segment on creating an enabling environment for export competitiveness.

Jean-Denis Belisle, Executive Director of the International Trade Centre, presided over the meeting and made introductory remarks.

At 10 a.m. Thursday, 17 May, in another of the Conference’s parallel events, there will be a forum on young entrepreneurs.

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