New Action Programme Vows to Halve Number of Least Developed Countries by 2020, As United

LDC Conference Plenary- 1 -LDC/ISTANBUL/12

9th & 10th Meetings (AM & PM)13 May 2011

New Action Programme Vows to Halve Number of Least Developed Countries

by 2020, as United Nations Conference Closes in Istanbul

Consensus Text Sets Forth Decisive Steps to Transform

World’s Poorest Nations into ‘Future Developed Countries’

Slashing by half the list of 48 States with the most extreme poverty and vulnerability to crises is the goal of a new 10-year action plan agreed by the world’s Governments at the conclusion this evening in Istanbul, Turkey, of the Fourth United Nations Conference on the Least Developed Countries.

Countries at the Conference, which opened on 9 May, reviewed progress in implementing the foundational Brussels Programme of Action, launched by Governments in 2001 in response to the profound challenges facing a stricken population of some 880 million. The Brussels plan introduced good governance principles, among others, into the relationship between the least developed countries and their development partners and was widely seen as a results-oriented comprehensive poverty reduction strategy for the decade.

But amid mixed reviews on progress towards its implementation — only three countries graduated since its adoption from the United Nations-identified list of least developed countries — Botswana in 1994, Cape Verde in 2007 and Maldives in January 2011 — leaving still 48 countries behind. The aim this week was to set policy priorities for the 10 years to significantly improve that record.

Indeed, Governments tonight committed to further strengthen their support to the poorest countries by “creating a favourable environment for sustainable development, increasing productive capacities, diversification of economies and building the necessary infrastructure”, according to the political declaration (document A/CONF.219/L.1).

The declaration underscores that the ownership, leadership and primary responsibility for escaping poverty rests with the countries themselves, with good governance, inclusiveness, transparency, respect for human rights, reduced corruption and domestic resource mobilization central. It also emphasizes, however, that those efforts must be given “concrete and substantial” international support “in a spirit of shared responsibility and mutual accountability through renewed and strengthened global partnership”.

The text serves as a sort of preamble to the new Programme of Action (document A/CONF.219.3), which calls for, among other things, development partners to “provide enhanced financial and technical support for infrastructure development in line with least developed countries’ sectoral and development needs and priorities” and use other funds to catalyze and leverage other sources of funding including foreign direct investment and domestic resources.

Noting that official development assistance had risen from $12 billion to $38 billion between 2001 and 2008 but still had fallen short of meeting the needs of the least developed countries, Governments pledged to ensure the fulfilment of their commitments and further align aid with the priorities and systems of their partners. They also vowed to further advance trade policy in favour of the poorest countries in areas such as market entry and access, tariffs, customs and regional integration.

To assist more States in making the complex transition to graduation from the list of least developed countries, the new action plan specifies joint action by those countries and their development partners, covering 27 priority areas, from infrastructure building to provision of energy to disaster risk reduction to enhancing human resources through health measures and empowerment of women and youth — which formed a huge portion of the population in poor countries.

Organs of the United Nations, including the General Assembly and the Economic and Social Council, along with such agencies as the United Nations Conference on Trade and Development (UNCTAD), were tasked in the document with overseeing follow-up activity, and the Assembly was invited to conduct a comprehensive five-year review. The United Nations Secretary-General was also asked to report on implementation at the sixty-seventh General Assembly.

“We have a goal oriented, substantive Programme of Action for the next decade,” said Cheick Sidi Diarra, United Nations Under-Secretary-General, Special Adviser on Africa and High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States and Conference Secretary-General.

Now, he asserted, the more challenging phase was starting: ensuring that our actions make a difference in the lives of the 880 million people in the LDCs (least developed countries)”. He pledged that the United Nations would work with all stakeholders to assure that the results of this Conference would be something in which all could take pride.

While the agreement did not entirely reflect the aspirations of the “Group of 77” developing countries and China, or of the least developed countries, said Argentina’s representative on the Group’s behalf, he said he was nevertheless pleased it had maintained commitments that had proven feasible in the Brussels plan. In implementing the new Programme, it would be important to recognize developed countries as associates.

The representative of the European Union expressed satisfaction with the proceedings and their “ambitious and realistic” outcome, saying that the Conference had marked the beginning of a new era, with States entering a new and strengthened partnership for mutual accountability. He pledged that the Union would continue its lead role in support of the work ahead.

“The Programme of Action provides a clear road map for the future of almost 1 billion people living in LDCs,” said Upendra Yadav, Deputy Prime Minister and Foreign Minister of Nepal and Chair of the Global Coordination Bureau of the Least Developed Countries, following the text’s adoption. Noting the intensity of negotiations during the past five days and the compromises made, he said the strategic focus of the Programme towards economic development intended to address the key challenges of all the poorest countries, related to high rates of poverty, deep structural constraints and vulnerabilities, in a coherent and sustained manner.

Closing the proceedings, Turkey’s Foreign Minister, Ahmet Davutoğlu, said the Istanbul Programme had drawn the parameters for renewed partnership during the next decade. As a developing country, Turkey had many experiences to share with least developed countries,and it was ready and willing to do its part.

In fact, he announced that his country would make available $200 million annually starting in 2012 for technological cooperation and scholarships, building on its history of support for development projects. It also hoped to up its total investments in least developed countries to a total $5 billion by 2015 and to $10 billion by 2020.

“Let us be part of a process that builds hope and aspirations,” he asserted, suggesting that least developed countries instead be called “future developed countries”. Turkey believed a brighter future was possible and it would do its utmost to make that happen.

Earlier today, the Conference heard the views of senior officials of United Nations organizations, as well as regional multilateral finance and development institutions, as its week-long general debate concluded. Some speakers argued for a significant scale-up of agricultural investments and speedy conclusion of the long-stalled Doha Development Round of World Trade Organization negotiations.

Others said that smart nutrition and security policies should revolve around investing in people. Social protection programmes were essential, including safety nets, which should be scaled up or down as needed, in times of life-threatening events, many added. Investing in nutrition was also key, as malnourished children tended to have lower adult earnings, which robbed countries of 2 to 3 per cent of their gross domestic product (GDP).

A key question posed by some revolved around what young people would do in the coming decade. The labour force in least developed countries was growing by 10.2 million annually and jobs must be created simply to maintain poverty levels. The challenge hinged on creating activities both within and outside of the agriculture sector, as urbanization trends would only accelerate in the coming decade.

In the meantime, expanded access to information and communications technologies was already opening new avenues for growth in the poorest nations. At the end of 2010, 3 per cent of their populations was connected to the internet, 10 times higher than in 2001, said Cosmas Zavazava, Chief of the Projects and Knowledge Management Department of the International Telecommunication Union (ITU). “This is a big deal.” The Internet could “massively” expand delivery of such vital services as healthcare and education over the next decade.

Round-up

The Conference, launched by General Assembly resolution 63/227 of 2008, opened on Monday with an appeal by Secretary-General Ban Ki-Moon: “Let us recognize these 48 countries as vast reservoirs of untapped potential.” He called for a new vision to reverse the profound poverty of the people living in the world’s least developed nations — 33 of which are in Africa, 14 in Asia and one, Haiti, in the Western hemisphere. He said that investing in those countries was an opportunity for all. “I am not arguing for charity, but investment,” he said, stressing that “the returns can be profound — not just for people living in the LDCs, but for the global economy”.

Among the other high-level speakers who addressed the opening were General Assembly President Joseph Deiss, who stressed that the international community must ensure a global environment that facilitated trade, investment and technology transfers conducive to diversifying the economies of the least developed countries. In addition, Abdullah Gül, President of Turkey, insisted upon a new vision that reflected the parameters of the global development agenda and the development priorities of those countries themselves.

During the Conference’s general debate, which stretched over eight meetings, 150 statements were made by 36 Heads of State and Government and 96 Ministers, civil society organizations, private-sector actors and chiefs of international agencies. A common theme was the need to preserve the range of pledges by all parties under the Brussels action plan, but to give greater weight to investment in productive sectors, chiefly agriculture and infrastructure. Calls were also made for women’s empowerment, investment in youth job creation, and tearing down trade barriers that seriously hampered the efforts of the least developed countries to jump-start development.

The Conference also featured a series of high-level interactive thematic debates, seen by the participants as an innovative mechanism for renewing partnerships, identifying challenges and providing solutions. Those expert-led discussions focused on: enhancing productive capacities and the role of the private sector in least developed countries; resource mobilization and global partnership; harnessing trade for development and transformation; good governance at all levels; reducing vulnerabilities, responding to emerging challenges, and enhancing food security; and human and social development, gender equality and empowerment of women.

In further business, Jarmo Viianen of Finland, Chairman of the Committee of the Whole, introduced that Committee’s work to the Conference, which was then adopted. Jean-Francis Zinsou of Benin, Conference Rapporteur, introduced the draft Conference Report, contained in document A/CONF.219/L.2, which was also adopted.

Also, the representative of Argentina, on behalf of the Group of 77 developing countries and China, introduced a draft resolution, entitled “Expression of thanks to the people and Government of Turkey”. It was adopted by the Conference.

Statements in the general debate were made today by representatives of the International Organization of Migration (IOM), African Development Bank (AfDB), World Food Programme (WFP), United Nations Children’s Fund (UNICEF), Preparatory Commission of the Comprehensive Nuclear-Test-Ban-Treaty Organization (CTBTO), United Nations Economic Commission for Africa (ECA), International Maritime Organization (IMO), and United Nations Commission on Trade and Development (UNCTAD).

The President of the Economic and Social Council also spoke.

Explaining their position on the outcome documents were the representatives of the Delegation of the European Union, and Australia (on behalf of Canada and New Zealand-CANZ).

Background

The Fourth United Nations Conference on the Least Developed Countries this morning continued its week-long meeting in Istanbul, Turkey. (For background, see Press Release DEV/2877 of 5 May).

Statements

WILLIAM LACY SWING, Director General of the International Organization of Migration (IOM), said “our world is on the move”, due, not just to population growth, but to the information and communications revolution. Ten years ago, 300 million people were connected to the Internet; today, that figure was at 2billion. Labour market requirements, economic and social disparities between the North and South and the increasing effects of climate change were also driving migration.

The issue of migration, which 10 years ago would have received very little notice, was today front and centre for every Government, he said, noting that it was a principal determinant of whether societies prospered or development opportunities bore fruit. The Istanbul outcome must reflect the relationship between migration and development, and the need to identify strategies for a smooth partnership.

At least $350 billion circulated from host to home countries, and attention must be paid to how best to use remittances, he said. The nexus between migration and climate change also deserved more attention, as migration was a survival strategy for some and an adaptation strategy for others. South-South migration — which was much larger than South-North migration — as well as women and family migration were also important. Those issues must be included in national development plans and donor strategies.

KAMAL EL-KHESHEN, Vice-President of the African Development Bank (AfDB), said the Bank continued to target its activities towards infrastructure, private sector development, governance and skills development to the least developed countries. It also supported efforts to build capable Government institutions, particularly through sound public financial management to effectively generate, manage and expand public resources and create an enabling environment for private-sector development. Through its unique “fragile States” facility, which had helped mitigate persistent vulnerabilities, the Bank worked to bolster development in the African least developed countries, particularly the 17 most fragile and post-conflict States.

He said that growth must become inclusive and sustained, and the Bank was working to ensure that, even as many African countries continued to struggle with weak capacities and economies that were built around single or few commodities. The Bank also supported the movement towards scaling up investment in the continent’s agriculture sector. At the same time, African countries must begin to seek out innovative solutions, such as public-private partnerships, remittances and diaspora networks.

The Bank, he noted, was supporting that effort by, among other ways, reducing risks of doing business on the continent by building institutions and promoting good governance and economic stability. He remained highly optimistic about the future of African least developed countries and hoped the Istanbul programme of action would help them achieve their development goals. For that to happen, it was imperative that an effective and participatory monitoring mechanism be established to guide the programme’s implementations.

MUSTAPHA SINACEUR, representative of the Food and Agriculture Organization (FAO), expressed support for the proposal put forward by Turkey to review the term “least developed country”, so the potential of those countries was recognized. The rapid rise in food and commodity prices was troubling. For example, the prices of cereals — the food staple for most people worldwide — had jumped by 68 per cent in the past 18 months. That trend was exacerbated by the increase on natural disasters and the inexorable effects of climate change.

He said that eradicating hunger and meeting food and nutrition demands by 2050 required increasing production by 70 per cent globally and nearly 100percent in the developing world. Accomplishing that required, among other things, a significant scale-up of investment in agriculture and the speedy conclusion of the long-stalled Doha Development Round of World Trade Organization negotiations. The Food and Agriculture Organization, for its part, had launched a series of food security initiatives, totaling some $3.7 billion. It had also worked in recent years to combat rising food prices in the least developed countries by, among other ways, securing through the European Union Food Facility a programme to increase farmers’ access to credit and other funds to enable them to increase production.

COSMAS ZAVAZAVA, Chief of the Projects and Knowledge Management Department of the International Telecommunication Union (ITU), said information and communications technology played a catalytic role in accelerating local economies and meeting development goals. In 2001, combined “teledensity” in least developed countries stood at 1.17 per cent, while in developing countries — including powerhouses such as China— that was at 17 per cent.