Sixty-third General Assembly

Second Committee

23^rd Meeting (AM)

GLOBAL TURMOIL COULD WIPE OUT GAINS FROM RECORD GROWTH RATES

IN LEAST DEVELOPED COUNTRIES, SECOND COMMITTEE TOLD

 

The current global crises would most likely wipe out the benefits of record growth rates in the least developed countries, undermining prospects for sustained growth and poverty reduction, Under-Secretary-General Cheick Sidi Diarra said today, as the Second Committee (Economic and Financial) began its general debate on groups of countries in special situations.

Introducing reports for the Committee’s consideration, Mr. Diarra, Special Adviser on Africa and High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States, said that, given that the international community was called upon to address the effects of the crises, it could not afford to neglect their impact on the least developed countries.  They were in the weakest position to respond to a global economic downturn and would be hardest hit by external shocks and commodity price volatility.  There was an urgent need for multilateral action to alleviate the impact of the current financial crisis on the development agenda, especially in the least developed countries, and failure to act swiftly would seriously hinder collective capacity to build on existing accomplishments and deliver on the promises of the Millennium Development Goals.

Turning to landlocked developing countries, he said very high trade and transport costs remained the single biggest obstacle to increasing their share in international trade.  In addition to inadequate infrastructure and long distances to market, recent research pointed out that higher costs were largely due to the inefficiency and unpredictability of logistics chains in landlocked developing countries.  They hampered productivity and lowered competitiveness, thus creating a massive disincentive to invest.  National policy reforms were urgently needed to tackle those bottlenecks.  It was also imperative that landlocked and transit developing countries work together in a coordinated way in seeking regional and subregional solutions.

During the ensuing debate, many other speakers, including the representative of Haiti, who spoke on behalf of the Caribbean Community (CARICOM), underscored the need to emphasize the special situations, challenges and needs of least developed countries in all efforts to achieve sustainable development and the Millennium Goals, as well as the urgent need for the international community to step up its efforts on all fronts, particularly by living up to pledges and commitments and by increasing official development assistance.

Calling for comprehensive, decisive policy action to overcome the global crises, the representative of Bangladesh, speaking on behalf of the least developed countries, said they were not in a position to withstand further export, investment and capital-access shocks that the crises could potentially cause in the long term.  The food crisis alone would drive 100 million more people into poverty and hunger, with the least developed countries hardest hit.  Out of the 49 east developed countries, the Food and Agriculture Organization (FAO) classified 47 as low-income, food-deficit countries, and 20 as countries in a food crisis.

Indonesia’s representative, speaking on behalf of the Association of South-East Asian Nations (ASEAN), stressed that participation by and integration of least developed countries and landlocked developing countries into the world trading system should be at the centre of global efforts.  Their full inclusion in the World Trade Organization would address their marginalization.  While Asia continued to grow economically, the region’s least developed countries had some of the world’s highest rates for child and maternal mortality, as well as prevalence of and death from tuberculosis.  Similarly, ASEAN might be at the centre of a dynamic Asia, but it was also in the midst of addressing fundamental challenges associated with emerging economies and societies in transition.  Support for least developed and landlocked developing countries was needed from the international community for the full and effective implementation of the Brussels and Almaty Programmes of Action.

Other speakers today were the representatives of Antigua and Barbuda (on behalf of the “Group of 77” developing countries and China), France (on behalf of the European Union), Mali (on behalf of the landlocked developing countries), China, Russian Federation, Morocco, Saudi Arabia, Burkina Faso, Benin, Mongolia and Japan.

Also making a statement was a representative of the Inter-Parliamentary Union.

Prior to its consideration of the day’s business, the Committee heard several draft resolutions and draft decisions introduced.

The Second Committee will meet again at 10 a.m. on Tuesday, 4 November, to conclude its consideration of groups of countries in special situations.

Background

Taking up groups of countries in special situations -- including the Third United Nations Conference on the Least Developed Countries and specific actions related to the particular needs and problems of landlocked developing countries:  outcome of the International Ministerial Conference of Landlocked and Transit Developing Countries and Donor Countries and International and Financial and Development Institutions on Transit Transport Cooperation -- Committee members had before them the Secretary-General’s report on the Implementation of the Programme of Action for the Least Developed Countries for the Decade 2001-2010 (document A/63/77-E/2008/61).

According to the report, the majority of least developed countries, except those in the Pacific, met or were on track to achieve the growth and investment targets of the Brussels Programme by 2010.  Progress made on human development targets has been noticeable in health and education, but less so in improved access to water and sanitation.  Much less progress than previously thought has been made in respect of gender parity in education and no progress has been made in relation to maternal mortality.  Furthermore, the progress made on many social indicators does not seem sustainable.  In half of the least developed countries for which trend data are available, almost 50 per cent of the population continues to live in extreme poverty, and malnutrition seems to be worsening, particularly among children and women.

The report concludes that, on the demand side, energy consumption should be significantly decreased by the adoption of cost-effective, energy-efficient technologies in buildings, industry and transport, and carbon savings strategies, which will facilitate measures to tackle climate change and secure the provision of sustainable energy.  On the supply side, the short-term strategy would include the provision of immediate humanitarian assistance to countries in food crisis; social protection measures, such as cash support, food-for-work and school-feeding programmes; and financial lending and crop insurance schemes.

Also before the Committee was a note by the Secretary-General on the Outline of the modalities of the Fourth United Nations Conference on the Least Developed Countries and its preparatory process (document A/63/284), which concludes that, in order to launch timely preparations, the General Assembly should decide at its sixty-third session on the specific dates and venue for the Conference.  The Secretary-General has decided that the Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States will serve as the focal point for the preparatory process, and he will designate the Secretary-General of the Conference upon the relevant decision by the Assembly on convening the event.

The Committee also had before it the Secretary-General’s report on Implementation of the Almaty Programme of Action:  Addressing the Special Needs of Landlocked Developing Countries within a New Global Framework for Transit Transport Cooperation for Landlocked and Transit Developing Countries (document A/63/165), which says that over the past five years, both landlocked and transit developing countries -- with the support of their development partners -- made tangible progress in implementing the specific actions agreed in the Almaty Programme of Action.  Landlocked and transit developing countries in Africa, Asia and Latin America have moved the transit transport issue higher in the priority list of their development agenda.  In addition, the international community came to recognize that high transit transport costs represent a more important barrier than most favoured-nation tariffs for landlocked developing countries.

According to the report, the most striking feature of the progress made towards implementation of the Almaty Programme of Action since 2003 has been the recognition of the special needs of landlocked developing countries and the much-stronger engagement of development partners with respect to transport infrastructure development and trade facilitation, aid, debt relief and market access.  Multilateral and development institutions, as well as regional organizations, have allocated much greater attention and resources to establishing efficient transit systems.

The report concludes that the high cost of international trade continues to represent a serious constraint to the trade and economic development of landlocked developing countries.  Measures to deal with the transit problems must address inadequate infrastructure, trade imbalance, inefficient transport organization, and weak managerial, procedural, regulatory and institutional systems.  There is little doubt that, without real solutions to the disadvantages that beset landlocked developing countries, they will continue to be driven to the outer fringes of the global economy.  Among other recommendations, the international community should provide greater market access for goods originating in landlocked developing countries to mitigate the high trade transaction costs stemming from their geographical disadvantages.  Increased and immediate technical assistance should be extended to ensure their effective participation in World Trade Organization trade negotiations, particularly those related to trade facilitation.

Committee members also had before them a draft resolution submitted by the President of the General Assembly and containing the Outcome document of the midterm review of the Almaty Programme of Action:  Addressing the Special Needs of Landlocked Developing Countries within a New Global Framework for Transit Transport Cooperation for Landlocked and Transit Developing Countries (document A/63/L.3).

Introduction of Drafts

The representative of Antigua and Barbuda, speaking on behalf of the “Group of 77” developing countries and China, introduced draft resolutions on the international financial system and development (document A/C.2/63/L.9), and external debt and development:  towards a durable solution to the debt problems of developing countries (document A/C.2/63/L.7).

Committee Vice-Chairman MARTIN HOPPE ( Germany) introduced five draft decisions under the agenda item on follow-up to and implementation of the outcome of the 2002 International Conference on Financing for Development and the preparation of the 2008 Review Conference.

The first three draft decisions reflect proposals set out in the Secretary-General’s note on the item.  Specifically, the first draft decision refers to the proposed arrangements and organization of work for the Review Conference (document A/C.2/63/L.19); the second refers to the provisional rules of procedure (document A/C.2/63/L.20); and the third refers to the provisional agenda (document A/C.2/63/L.21).  The fourth draft decision lists intergovernmental and non-governmental organizations requesting accreditation to the Conference (document A/C.2/63/L.22), and the fifth reflects the lists annexed to the letter from the General Assembly President addressed to the Chairperson (document A/C.2/63/L.23).

Committee Chairperson U JOY OGWU ( Nigeria) then called attention to the letter from the Assembly President transmitting the lists of intergovernmental and non-governmental organizations requesting accreditation to the Doha Review Conference, and agreed by Member States on a no-objection basis.  She said that, in order to facilitate and expedite preparatory work for the Conference, the Assembly may wish to take appropriate action on the proposals contained in the Secretary-General’s note and on the lists contained in the President’s letter, which had been “translated” into the draft decisions introduced by Mr. Hoppe.  She then requested that the Committee act on those items on Wednesday, 5 November.

NADIESKA NAVARRO ( Cuba) then asked about the proposed rules of procedure at the Review Conference in respect of the physical presence in the Conference meeting area of the World Trade Organization and the Bretton Woods institutions, and whether they would be given special seating preference.

OSCAR DE ROJAS, Director, Financing for Development Office, Department of Economic and Social Affairs, said that under the rules of procedure the World Trade Organization and the Bretton Woods institutions would be given special consideration in that they would be seated in the same area and allotted the same number of seats in the main conference hall as Member States.  The same procedure had been followed during the 2002 International Conference on Financing for Development in Monterrey.

JANIL GREENAWAY ( Antigua and Barbuda) noted the need for sufficient time to review the draft decisions introduced by Mr. Hoppe concerning the Doha Review Conference.

Introduction of Reports

CHEICK SIDI DIARRA, Under-Secretary-General, Special Adviser on Africa and High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States, introduced the Secretary-General’s report on the implementation of the Programme of Action for the Least Developed Countries for the Decade 2001-2010 (document A/63-77-E/2008/61), and the Secretary-General’s note on the modalities of the Fourth United Nations Conference on the Least Developed Countries and its preparatory process (document A/63/284).

He said the report highlighted an overall strong economic performance by the least developed countries, with most of them having met or being on track to meeting the 7 per cent growth rate and the 25 per cent target for the ratio of investment to gross domestic product (GDP).  However, the report was based on 2006 data and did not reflect the current challenging global environment.  The financial crisis, as well as high energy and food prices, would most likely wipe out the benefits of record growth rates in the least developed countries, undermining the prospects for sustained growth and poverty reduction.  High energy and fuel prices were already causing inflationary pressures and might dampen the sustainability of positive trends in debt reduction.  Similarly, food price hikes were raising food bills and reducing foreign exchange reserves.

As the international community was called upon to address the effects of the current crisis, he said, it could not afford to neglect the impact on the least developed countries.  They were in the weakest position to respond to a global economic downturn and would be hardest hit by external shocks and commodity price volatility.  That was compounded by the global food crisis.  With declining agricultural productivity, many of the least developed countries that had been net exporters of agricultural produce in the 1960s had become net importers of food during the 1990s.  Most of the least developed countries today were either food- deficit countries or in a food crisis.  Rising food prices would exacerbate the incidence of malnutrition, with adverse impacts on infant mortality and that of children under five years of age.

The least developed countries remained highly dependent on external finance, and official development assistance was critical to their public finances, he said, noting that loans and grants accounted for as much as 40 per cent to 70 per cent of their public investments.  Yet, progress on meeting assistance targets had been mixed.  In spite of record aid levels in 2006, much of that increase had focused on emergency assistance and debt forgiveness, which had left development aid to least developed countries at its 1990 level.

He said that, as the Secretary-General had noted recently, there was an urgent need for multilateral action to alleviate the impact of the financial crisis on the development agenda, especially in the least developed countries, and failure to act swiftly would seriously hinder collective capacity to build on existing accomplishments and deliver on the promises of the Millennium Development Goals.  To that end, the Financing for Development Conference was a precious opportunity to address those issues.

There was a need for substantive progress in scaling up assistance and improving the effectiveness of the current aid system, he said.  The Secretary-General’s note reflected the constraints just presented and proposed the convening of the Fourth Conference on the least developed countries with three strategic goals.  It should assess the implementation of the Programme of Action since 2001; it was expected to review the implementation of international support measures, particularly in the domains of official development assistance, debt, investment and trade; and it would consider the formulation and adoption of national and international measures for achieving sustainable development in the least developed countries, further promoting their integration into the world economy.

Mr. Diarra then introduced the Secretary-General’s report on the progress made, lessons learned and constraints encountered in the implementation of the Almaty Programme of Action, including recommendations, with a view to the preparation for midterm review meeting and the way forward (document A/63/165).

Very high trade and transport costs remained the single biggest obstacle to landlocked developing countries seeking to increase their share in international trade, he said.  In addition to inadequate infrastructure and long distances to market, recent research pointed out that the higher costs were due largely to the inefficiency and unpredictability of the logistics chains of landlocked developing countries, which hampered productivity and lowered competitiveness, thus, creating a massive disincentive to invest.  National policy reforms were urgently needed to tackle those bottlenecks.  It was also imperative that those countries work together in a coordinated way and seek solutions at the regional and subregional levels.  Regional economic communities were contributing substantially to that end by designing and implementing targeted policies for improved transit transport.

He said the consensus Declaration adopted by ministers and heads of delegation participating in the Almaty Programme midterm review was a comprehensive, action-oriented resolution embodying an in-depth assessment of the severe economic and social limits imposed on landlocked developing countries by their geography.  Seizing the momentum generated by the review, the Office of the High Representative was working, in close cooperation with United Nations system partners, on a road map that would guide activities in the next five years to expedite implementation of the Almaty Programme.

Discussion

The representative of Benin asked how Mr. Diarra envisaged implementing the process so that the preparations and the entire process leading up to the Fourth Conference did not interfere with the rest of the period for the programme.  There was still the rest of 2008, all of 2009 and, to a certain extent, 2010 to implement the programme.

Mr. DIARRA responded by saying the formal start of the preparatory process, if the decision was taken at the current sixty-third session, would take place towards the middle of 2009, in parallel and simultaneously with the Office of the High Representative carrying out its statutory functions as mandated by the Economic and Social Council and the General Assembly.  At the same time, the Office of the High Representative would continue to produce the traditional reports to assess implementation of the Brussels Programme of Action.  All the entities involved were basing themselves on the experience of the First and Third Conferences, preparations for both of which had begun early.  Each process would take place without interfering with the other.

The representative of the Sudan asked about the best way to take into account the difficulties faced by least developed countries in international efforts to address the financial crisis.

Mr. DIARRA said discussions at the United Nations were one way to provide guidance, adding that intervention by the General Assembly in trying to provide policy guidance, as well as the support of the rest of the Group of 77 and special partners, was also important.  If left by themselves, the least developed countries would not have enough say in the current financial crisis.

Statements

Ms. GREENAWAY (Antigua and Barbuda), speaking on behalf of the Group of 77 and China, said that, while least developed countries had achieved an annual average growth rate of 6 per cent in the present decade, growth had not been accompanied by a significant decrease in poverty.  Instead, it had been accompanied by even greater social disparities in many cases, especially between rural and urban areas.  The Group of 77 and China reiterated its call for an inclusive and holistic approach to development, with a clear focus on poverty reduction.

Without programmes that targeted poor and marginalized groups, economic growth would remain a mere statistic while human development indicators worsened, she warned.  Much work remained in addressing declining agricultural production and productivity, increasing malnutrition, the lack of progress in achieving sustainable development targets on water and sanitation, and growing income inequality.  There was slow progress on gender equality, and little or no progress on maternal mortality.

She said one of the most constraining factors to achieving and sustaining progress to implement the Brussels Programme of Action had been the failure of the donor community to provide the agreed 0.15 per cent to 0.2 per cent of GDP as official development assistance to least developed countries.  If that level of donor commitment had been met, those countries would be in a much better position to weather the current storm of challenges to development.  The global food crisis would constrain significantly both national and international efforts to achieve the objective of halving by 2010 the proportion of people living in extreme poverty and hunger in the least developed countries.

Duty-free and quota-free market access had not resulted in an increase in the share of least developed countries’ exports in world trade, which remained marginal at less than 1 per cent, she said.  There had been insufficient focus on raising productive capacities and on economic and export diversification.  The Fourth Conference on the Least Developed Countries must conduct a comprehensive implementation review of international support measures, particularly in terms of official development assistance, investment and trade, while calling for additional international measures to assist least developed countries.

STÉPHANE CROUZAT ( France), speaking on behalf of the European Union, said the regional bloc was one of the largest supporters of least developed countries.  It had pledged 0.15 per cent to 0.20 per cent of its gross national income to aid for them, and initiated a major reform of its relationship with African, Caribbean and Pacific countries, many of which were least developed countries.  The Tenth European Development Fund, which covered 2008-2013, was endowed with €22.7 billion, 90 per cent of which would be allocated to least developed countries.

He said that one of the specific measures the European Union had on the table for addressing the needs arising from the food crisis, which affected least developed countries in particular, was the creation of an ad hoc instrument -– a facility for rapid response to soaring food prices in developing countries –- which could amount to €1 billion.  The European Union looked forward to the Fourth United Nations Conference, which would give all development partners the opportunity to assess together implementation of the Brussels Programme of Action.

The European Union would also have to take into account the impact that the results achieved at the Doha Review Conference to follow-up implementation of the Monterrey Conference would have on the least developed countries, he said.  At Doha, the European Union would do its utmost to achieve greater mobilization so as to encourage sustainable development in the least developed countries and achieve the Millennium Development Goals, particularly the eradication of poverty, which primarily affected those countries.

He said the European Union would particularly like the Doha Review Conference to address the need for least developed countries to take control of their national development strategies, build their agricultural productive capacities, and develop infrastructure.  It continued to regard graduation from the list of least developed countries as a positive step in the development process, but it was aware, however, of the need to ensure a smooth transition for graduating countries so as to best prepare them for full integration into the world economy and provide continuity in development plans and programmes.

MUHAMMAD ALI SORCAR (Bangladesh), speaking on behalf of the least developed countries, said that, despite some progress in human development and governance, least developed countries still faced significant challenges in several areas, such as maternal mortality, access to water and sanitation, and gender parity.  The high prevalence of poverty was dismaying.  Structural weaknesses, lack of capacity and an unfavourable external environment were primarily responsible for that.  The new and emerging crises had further magnified the challenges that least developed countries faced in striving to attain internationally agreed development targets, a situation that warranted increased global action to secure implementation of the Brussels Programme of Action by 2010.

The protracted nature and high intensity of the financial, oil, food and climate change crises may cause significant developmental impacts on the least developed countries, he said, adding that they were in no position to encounter further shocks in terms of export, investment and access to capital that the current crisis could potentially cause in the long term.  Comprehensive, decisive policy action was critically important to overcoming the crises.  The food crisis alone would drive 100 million more people into poverty and hunger, with those in least developed countries the hardest hit.  Out of the 49 least developed countries, 47 were classified by the Food and Agriculture Organization (FAO) as low-income, food-deficit countries and 20 as countries in a food crisis.  A sustainable solution was necessary.

Climate change -- intensified by droughts, floods and other extreme weather events -- posed another big challenge for least developed countries, he said, noting that they would diminish productivity and biodiversity, among other ill effects.  An extra 50 million people were at risk of hunger by 2020.  In light of the potentially serious effects for the food and livelihood security of least developed countries, urgent and decisive action was needed to address climate change.  Developed countries must make unilateral, meaningful and unconditional commitments to reduce greenhouse gas emissions.  The international community should provide the necessary funds, in a predictable manner and from additional resources, to meet the adaptation needs of least developed countries.

Describing the collapse of the Doha Round of World Trade Organization negotiations as a major setback for the multilateral trading system, he called for the marshalling of the political will necessary for the successful completion of the round and the full realization of the development agenda.  There was also an urgent need for trade-capacity building for least developed countries.  The Aid for Trade initiative should help them address supply-side constraints and the erosion of preferences.

ARRMANATHA NASIR (Indonesia), speaking on behalf of the Association of South-East Asian Nations (ASEAN) said she looked forward to the Fourth United Nations Conference on Least Developed Countries in 2011, in the belief that it would undertake a comprehensive appraisal of the implementation of the Brussels Programme of Action, formulate national and international policies and measures for sustainable development, support the progressive integration of those countries into the world economy, and address emerging challenges.

The ASEAN supported the outcome of the High-Level Midterm Review of the Almaty Programme of Action in October, she said, noting that a viable and predictable transit system, as well as trade facilitation, could be realized through the implementation of the Almaty Declaration and Progamme of Action.  Trade was a powerful engine for growth and development, and participation by and integration of both least developed countries and landlocked developing countries into the world trading system should be at the centre of global efforts.  Their full inclusion in the World Trade Organization would address their marginalization.

While Asia continued to grow economically, the least developed countries in the region had some of the highest rates of child and maternal mortality, as well as tuberculosis prevalence and death in the world, she continued.  Similarly, while ASEAN might be at the centre of a dynamic Asia, it was also in the midst of addressing fundamental challenges associated with emerging economies and societies in transition.  Various programmes and workplans, as contained in the Vientiane Action Plan for 2004-2010 and the Initiative for ASEAN Integration, were being implemented with the support and assistance of older ASEAN member States (ASEAN-6) and the Association’s dialogue partners.  In addition, the ASEAN Economic Blueprint had been concluded in November 2007.  The Initiative for ASEAN Integration Workplan for 2009-2015 was expected to be adopted at the ASEAN Summit in December.  All those efforts were not only aimed at narrowing the development gap among members, but also at addressing the special needs of least developed countries and landlocked developing countries in the region.

Reaffirming the key importance of a an efficient and integrated transport system for integration into the global economy, improve competitiveness and enhanced inflow of foreign direct investment, she said ASEAN attached great importance to implementation of its Transport Action Plan for 2005-2010, the Framework Agreement on Multimodal Transport, and Transport Agreement on the Facilitation of Goods in Transit.  A new protocol to the ASEAN Transport Agreement on designation of transit transport routes and facilities would be a significant milestone in the Association’s efforts to facilitate the transportation of goods within the region.  To facilitate the flow of goods, ASEAN had established National Single Windows, which would be operating partially or fully by the end of 2008, in conformity with the timeline set in the agreement to establish the ASEAN Single Window.  Preparatory works were now under way for the establishment of National Single Windows in Cambodia, Lao People’s Democratic Republic, Myanmar and Viet Nam.

WILLIAM EXANTUS (Haiti), speaking on behalf of the Caribbean Community (CARICOM) and associating himself with the Group of 77 and China, said least developed countries suffered from a growing vulnerability to many things, including climate change and the high cost of energy.  The latter had an impact on the cost of their imports, and the steep rise in food prices had provoked social unrest of many of those countries.  The Doha Review Conference would be following one of the worst financial crises since the 1930s.  The combined impact of natural phenomena and structural problems had clearly led to very serious challenges for the least developed countries.  In the short time that remained until 2010, CARICOM recognized that implementation of the Brussels Programme of Action would be difficult to achieve, as would sustainable development.

The target rate of growth contained in the Brussels Programme of Action had only been achieved by very few of the least developed countries, he said -- those endowed with natural resources that could be exported.  That target growth rate was difficult to achieve for a growing number of least developed countries and the result had been an increase in social inequality.  Growth driven only by exports and not accompanied by growth in domestic markets led to an imbalance in that growth.  Such factors would not help in the attainment of Millennium Development Goal 1.

The CARICOM was also very concerned about the threat represented by natural phenomena and the economic events and by their impact on the encouraging progress achieved by the least developed countries, he said.  The latest hurricanes had indiscriminately struck small islands and, only four months after social unrest provoked by an increase in food prices, Haiti had been struck by four hurricanes, which had destroyed thousands of tonnes of agricultural production upon which the Government had been counting to mitigate the food crisis.  It was, therefore, necessary to emphasize the special situation and needs of least developed countries, which required support from the international community and the United Nations system.  In the two remaining years of the Brussels Programme of Action, the international community must step up its efforts on all fronts.  The Doha Review Conference would be an excellent opportunity for the development partners of the least developed countries to fulfil the pledges made within the Brussels Programme of Action.

A new, more aggressive and ambitious Programme of Action would be needed from the Fourth Conference, he said, calling on development partners to demonstrate more responsibility.  It was also necessary to add to the list of non-compliance the commitment to allocate 0.2 per cent of GDP to official development assistance.  While the least developed countries had achieved some progress, they would have performed even better had their development partners lived up to their pledges and commitments.  The CARICOM believed in the possibility of least developed countries to achieve sustainable development, and nothing should stop in working towards that.

OUMAR DAOU (Mali), speaking on behalf of the landlocked developing countries, said the ministerial meetings in Ouagadougou, Burkina Faso, in June 2007 and Oulan-Bator, Mongolia, in August 2007 on Transit Transport Infrastructure Development of Landlocked and Transit Developing Countries had been followed by regional review workshops and seminars.  There had been very encouraging results since the adoption of the Almaty Programme of Action in 2003.  However, landlocked developing countries continued to suffer from their status, which had been worsened by the financial crisis and the impact of climate change.  Those were serious obstacles to the attainment of the Millennium Development Goals by 2015.

Landlocked developing countries had still not integrated into the global trading system, despite the reforms they had undertaken, he said, adding that the increased cost of transport and imports were a deterrent.  The Almaty Programme of Action required the international community to move quickly and decisively.  The midterm review had bolstered the hope of millions of people waiting to benefit from reliable infrastructure adapted to their specific needs, enabling them to transport goods to ports and to ensure that their merchandise could be moved without obstacles.  They should be able to benefit from the opportunities created by world trade, participate in globalization, and overcome the poverty that their geographical situation often imposed on them.  Least developed countries were committed to accelerating implementation of the Almaty Programme of Action.

LIU ZHENMIN (China), associating himself with the Group of 77, said that, in the context of the financial, energy and food crises, the international community should pay more attention and lend more support to the landlocked and least developed countries by implementing the full Brussels Programme of Action for the Decade 2001-2010.  The developed countries should promptly translate their commitments into action, reversing the downward trend in official development assistance flows, improving market access for least developed countries, and taking into full consideration the economic vulnerability index.

The special needs of the landlocked developing countries must also be addressed, he said.  For that purpose, the ratio of development assistance funding for infrastructure development should be increased and regional organizations should be brought into full play in developing policies for cross-border transit.  There should be a scaling up of preferential trade treatment, trade facilitation and assistance for landlocked developing countries.

For its own part, China was cancelling 24.7 billion yuan in debt owed by 49 heavily indebted poor countries in Asia and Africa, he continued, adding that the country had provided 206.5 billion yuan assistance.  The country had also granted tariff exemption to goods from 42 least developed countries, and announced initiatives in the areas of agricultural development, food, personnel training and energy.  China would continue to work with landlocked developing countries on the basis of “equal footing, mutual benefit and common development”.

ALEXANDER ALIMOV ( Russian Federation) said the global financial crisis, which had been exacerbated by the energy, climate and food security crises, represented a real threat to achievement of the Millennium Development Goals by those countries which, through special circumstances and geographic locations, found themselves in complicated situations.  Efforts by the international community to support those countries should not stop.  For its own part, Russia had taken concrete steps to help.  For example, it had gradually increased its commitment to financing for international cooperation programmes for development, raising its annual contribution twofold in 2007 compared to previous years.  In addition, the President of the Russian Federation had adopted a strategy for the country’s participation in international support, and there would be a further increase in its aid.

Starting from 2009, the Russian Federation’s annual contribution to the World Food Programme (WFP) would reach $15 million a year, he said.  Russia had also decided to contribute to the International Monetary Fund (IMF) programme providing assistance to the poorest countries suffering from external shocks in the amount of $4.5 million.  It had also provided considerable assistance through debt write-offs, having already written off or pledged to write off debt owed by African countries to the tune of $11.3 billion.  Russia commended the High Representative’s work in developing landlocked and transit countries and welcomed the outcome of the Almaty Programme of Action.  Russia had been active and creative in terms of implementing the Almaty Programme, and had not tried to gain an unfair advantage as a result of its geographical location.

TARIK IZIRAREN ( Morocco) recalled that the Cotonou Strategy recommended speeding up implementation of the Almaty Programme of Action, but prospects for achieving that and the Millennium Development Goals by 2015 were not encouraging.  Stifling debt, limited infrastructure, a meagre share of international trade, the spread of disease, declining internal resources, insufficient official development assistance, and significant deficits in economic and human development were among the challenges faced by least developed countries.  The number of poor people living in least developed countries would jump from 34 million in 2000 to 447 million in 2010, despite efforts to fight poverty.  The international community must adopt measures to help least developed countries.

He said the financial crisis was linked to a surge in the food and energy crises.  The crises would only exacerbate the socio-economic situations of least developed countries and threaten to reverse the progress they had made.  The donor community must make good on its commitment to allocate 0.2 per cent of GDP to official development assistance for least developed countries.  To bring about essential change in support of growth, least developed countries needed significant international mobilization in terms of aid, market access and technology transfer.

A more liberalized trading system must also be set up, he said, noting that, thus far, least developed countries had not benefited from trade liberalization.  Despite preferential trade regimes, their goods’ share of world trade products had not even reached 1 per cent.  Morocco had set up several partnerships and coordination programmes with African least developed countries in the areas of trade, transport, and information and communications technology.  Morocco had cancelled its bilateral debt with all African least developed countries.

TARIQ AL-FAYEZ (Saudi Arabia), associating himself with the Group of 77 and China, said his country attached special importance to current global issues because they affected development, and called on all countries to make efforts to create the necessary conditions to face up to the global financial difficulties so that developing countries could promote their economic growth.  That required improving the global economic and financial systems, enhancing market access, and addressing the problems of globalization.  The world had seen major economic changes, taking place at incredible speed, and Member States must, therefore, cooperate in promoting an investment climate that could establish equal economic situations among all countries, developed and developing alike.

To address the economic situation, there must be transparency among States, he said, noting that his country attached importance to liberalizing terms of trade in order to create an environment that would attract investment and cooperation.  Saudi Arabia had contributed to programmes for financing development, combating poverty and reducing the debt of poor countries.  The Saudi Government had also cancelled the debts of many developing countries, and given credit to new countries in special circumstances.

He said the international community should undertake major efforts to address poverty in the framework of the global programme to combat poverty, through better harmonization of efforts by donor countries and development funds.  All Member States should cooperate to reach tangible solutions to the problems of hunger and poverty.  Saudi Arabia stressed the importance of the role of the United Nations to strengthen international cooperation, as well as the role of the conference devoted to the least developed countries to achieve the Millennium Development Goals.

REGIS KEVIN BAKYONO ( Burkina Faso) said that, despite firm commitments to the development of least developed countries, the financial, food and energy crises continued to compromise their ability to meet the Millennium Development Goals.  The international community must continue to mobilize and support least developed countries, landlocked developing countries, and small island developing States.  The Monterrey Consensus, the Almaty Programme of Action and the Millennium Development Goals were manifestations of the international community’s will to help resolve global problems, but ineffective implementation remained a problem.  It was important to ensure that the achievements already made were not placed in jeopardy.  Effective efforts were needed, including through partnerships.

Appealing for cooperation, solidarity and a new reading of the present paradigm of cooperation for development, he said it was necessary to avoid the largest number of blows cast by poverty and to guarantee a world of peace and security.  Globalization required that greater cooperation and assistance be given to the most vulnerable countries and peoples.  To work for a more balanced and equitable society, it was necessary to take into account the challenges, situations and needs of agriculture, infrastructure and international trade.  Burkina Faso called for more fruitful cooperation between landlocked developing countries and neighbouring countries with access to the sea, and for more integrated regional transport systems.

ALESSANDRO MOTTER, Inter-Parliamentary Union (IPU), said that achieving the broad objectives of the Brussels Programme of Action depended on the improvement of governance in the countries concerned.  Parliaments could and should play a robust role in putting together the building blocks of governance that would create a propitious environment for the realization of the Programme’s goals.  Parliamentarians were particularly conscious of the imperative of good governance as a precondition for effective forms of sustainable development.  Indeed, the institution of Parliament was central to good governance and, by extension, to development.  The Brussels Programme of Action and the Millennium Development Goals gave Parliaments an opportunity to make a veritable impact on the lives of the people they represented.

Nevertheless, most Parliaments in least developed countries were weak in the face of dominant executive arms of Government, and all too often beset by inefficient practices and a lack of resources and skills, he said.  That prevented them from exercising fully their oversight and legislative functions.  Aggravating that was the fact that many Parliaments in least developed countries operated in conflict and post-conflict contexts, and were obliged to divert their efforts to restore normality at the expense of long-term development planning.  States owed it to the peoples of the least developed countries to work towards correcting such discrepancies.

Most Parliaments in least developed countries were ill-equipped to develop and sustain a consistent focus on implementing the Brussels Programme, he said.  For that reason, the IPU and the Office of the High Representative had developed a project that would seek a more active role for Parliaments in sensitizing the public about the Programme, initiating debate on its various provisions, and ensuring effective implementation.

FERNANDE HOUNGBEDJI (Benin) said the least developed countries had to grapple with structural limits, high vulnerability to external shocks, limited institutional, human and production capacity, disease, as well as limited access to education, social services, information and communications technology, infrastructure and climate change, among other constraints.  World economic prospects had become more complicated, leaving least developed countries in a difficult position to achieve the Millennium Development Goals, including that of reducing extreme poverty.

The international financial crisis and the general economic turmoil were problems for all countries, and they had destroyed many of the efforts by least developed countries to achieve development, she said.  Least developed countries had limited resources to fund small and medium-sized enterprises and reduced budget outlays for their economies.  The drop in the prices of raw materials and reduced foreign direct investment flows had exacerbated their situation.

The risk of seeing poverty aggravated, economic growth slowed and the advent of recession was very real, she said.  Emergency international measures to strengthen international lending were good, but not enough.  Global financial markets called for protecting the global economy in the future.  The IMF had a habit of subjecting poor countries to harsh conditions before granting them loans.  That must change.  The development model hitherto imposed on least developed countries was not viable in the long run.  The High Representative should improve his role in terms of follow-up to the Brussels Programme of Action.

BAATAR CHOISEREN, General Director, Multilateral Cooperation, Ministry of Foreign Affairs of Mongolia, said that last year’s preparatory meetings for the midterm review of the Almaty Programme of Action in Burkina Faso and Mongolia had provided substantive inputs to that process.  While landlocked developing countries around the world shared many similar problems, one could not deny that there were regional and often subregional peculiarities that must be taken into account in implementing the Programme.  Despite progress in transit transportation, least developed countries as a group remained fundamentally marginalized from the global economy.  Therefore, the Doha Round of multilateral trade negotiations had substantial potential to enforce simplification and favourable treatment of trade by least developed countries.  In that connection, Mongolia reiterated the need to consider negotiating a separate multilateral agreement on issues covered by GATT (General Agreement on Tariffs and Trade) article V on freedom of transit.

With a view to promoting a comprehensive subregional agreement to harmonize transit regulations and reducing transit costs, he said, Mongolia had initiated a framework agreement on transit transportation with the Russian Federation and China.  The draft instrument had been agreed in principle and negotiations continued on annexes.  Many delegations at the Ulaanbaatar meeting had highlighted such challenges for landlocked developing countries’ transit transport and trade as excessive import/export documentation requirements, lack of adjacent border control, complicated customs procedures, non-transparency of trade and customs laws, lack of institutional capacity, and low-level adherence to international transit conventions.  As a member of the main conventions on international transportation and customs, Mongolia had introduced amendments to the customs and tariff laws and adopted laws on railways and roadways.  It had also become a party to the trans-Asian railway network and core instruments relating to international transportation.

As a result of its accession to those agreements, 60 per cent of the country’s import and export goods and almost all its transit transport goods were now carried exclusively by railway, he said.  However, road transport activities were limited to the border regions of neighbouring countries and could not reach their sea ports.  Although the agreements stipulated exemption from customs duty securities, simplified procedures and other favourable terms, the possibilities of enjoying those conditions were still limited, due to bureaucracy, unexpected delays, detention and loss of cargo, and other factors.  However, Mongolia had introduced the latest techniques and technologies in its customs inspection and improved the quality of its human resources.  It was taking measures to make customs procedures more transparent, efficient and simplified.

MOTOYUKI ISHIZE ( Japan) said his country continued to place high importance on least developed countries in directing its foreign assistance.  It was necessary to renew and reaffirm the will to address collectively the special needs of the most vulnerable countries.  The Government of Japan remained committed to continuing its assistance to priority sectors in the least developed countries, including export promotion, physical and human capacity development for trade facilitation, and sector-specific technical cooperation.

For any assistance to be truly effective, ownership by the least developed countries was vital and partnership with the international community was indispensable to reflect accurately the needs on the ground, he said.  The concept of human security was one tool to ensure and enhance the sustainable development of a country through both protecting individuals and empowering them and their communities.  Japan earnestly hoped that any development policy would emphasize the human security aspect.

The recent discussion on the root causes of poverty had focused on its high relevance to violent conflict, he said.  Unless the international community stood united to prevent new conflicts, as well as relapse into conflict, the global target of ending poverty would never be met.  A holistic approach to addressing poverty was more necessary than ever, and Japan stood ready to engage in creative and constructive discussion about contributing to innovative ways to fight poverty, including in its capacity as Chair of the Peacebuilding Commission.  Regarding landlocked developing countries, States should demonstrate the same spirit of cooperation in the next five years to implement faithfully the Almaty Programme of Action as they had during the midterm review meeting.

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For information media • not an official record