Second Committee Speeches & Interventions

Statement by Mr. Babar Khan Ghori, Delegate of Pakistan to the Second Committee on Agenda Item 102: United Nations Conference on the Least Developed Countries (7 November 2003)

Mr. Chairman,

Let me at the outset thank the Secretary-General for his detailed report on the Implementation of the Programme of Action for the Least Developed Countries. We would also like to thank Under- Secretary- General Mr. Anwarul Karim Chowdhury, for his presentation.

2. We would like to associate ourselves with the statement made by Morocco on behalf of G-77 and China.

3. The Third United Nations Conference on Least Developed Countries was held at a time when the process of globalization was widening income, social and technological gaps and increasing the vulnerabilities of the Least Developed Countries. The Conference provided an opportunity to analyze the negative consequences of globalization on LDCs; and device ways and means to create and promote an international economic environment which is supportive of their development.

4. Since the adoption of the Brussels Programme of Action, the objectives of achieving development in Least Developed Countries have been on the priority list of the international community. A number of steps have been taken by the international community as well as by the LDCs themselves in order to attain these objectives. In certain cases, there have been successes but the overall condition of LDCs has remained precarious. In many cases, the situation has even worsened. Poverty, disease, famine, lack of human resource development, external debt burden, conflicts and strife have remained as the major obstacles to their development.

Mr. Chairman,

5. To achieve the goals and objectives of the Programme of Action, urgent action is need on a number of fronts. It would need the improvement of the economic and social development indicators of the LDCs and creation of an international climate supportive of LDCs development, so that they could break the vicious circle of poverty, hunger and under-development. This would require consorted efforts by all relevant stakeholders, particularly in the following areas:

One; enhancement of Official Development Assistance (ODA).

Second; finding durable solutions to the crippling external debt burden of LDCs.

Third; improving market access for products of export interest to LDCs. and;

Fourth, establishing an enabling economic environment, which fully supports the domestic policy framework, adopted by these countries.

6. Official Development assistance is critical to the development needs of the least developed countries. In majority of these countries, it is the bedrock of their developmental projects. Unlike private flows which are profit driven, ODA helps governments of the LDCs invest in sectors that are crucial for development. Regrettably, there has been a consistent and continuous decline in ODA flows. With the exception of few countries, the target of 0.7 percent has not been met by donors. If the agreed target could be met, this alone would yield around 100 billion, most of which would be going to LDCs.

7. The deteriorating economic situation of least developing countries is further complicated by the crippling debt burden which is a continuous drain on their meager and depleting resources. Even IMF has admitted that the external debt situation for a number of low-income countries, mostly in Africa has become extremely difficult. For these countries, even full use of traditional mechanisms of rescheduling and debt reduction, may not be sufficient to attain sustainable levels. There is, therefore, a definite need to develop a comprehensive approach including new initiatives to provide debt relief to these countries. New initiatives should include debt moratorium, debt swap and outright debt cancellation. In this regard, the proposal to divert the money spent on debt servicing towards social development budget merits serious consideration.

8. Trade is yet another area which could boost economic growth, generate employment, and reduce poverty in developing countries. It is also the single most important external source of financing development. Increased market access is an effective way for developing countries to reach sustainability. Every extra dollar of exports feeds a poor family and builds a better future for them. We have however noted with concern that the share of Least Developed Countries in international trade has fallen from 3 percent in 1960s to 0.4 percent in 2002. Improved market access to the export products of the developing countries, especially in those areas where they have comparative advantage will be essential for their development. In this context, an early agreement on the “cotton” initiative proposed by some African least developed countries should be explored as a priority.

9. The biggest challenge for LDCs remains “poverty eradication”. This would need adopting a multi-dimensional approach. It would also necessitates a greater synergy among efforts by all stakeholders i.e. states, civil societies and international community. The Least Developed Countries must get the required support from the international community to eradicate poverty and reach the internationally development goals including those contained in the Millennium Declaration.

Mr. Chairman,

10. Despite domestic financial constraints, Pakistan has continued to provide technical, economic and humanitarian assistance to the LDCs. Under the Pakistan Technical Assistance Programme and Special Technical Assistance Programme for Africa, fifty seats are reserved for students from LDCs in our professional colleges. More than one thousand participants from LDCs have, so far, benefited from our training programmes in the fields of banking, diplomacy, language skills, railways and accounting. The Government of Pakistan has also been extending trade credits and substantial humanitarian assistance to some LDCs. We would continue with our modest efforts in future as well.

11. In order to ensure the fulfillment of the objectives of the Brussels Programme of Action, it is important that the international community not takes on concrete and tangible measures but also musters the political will to achieve these goals.

I thank you, Mr. Chairman.

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