BRUSSELS CONFERENCE COMMITS TO ERADICATING POVERTY IN WORLD’S POOREST COUNTRIES; DECADE-LONG ACTION PROGRAMME CALLS FOR PARTNERSHIP, ‘MUTUAL COMMITMENTS’

Third UN Conference on LDCs
20 May 2001



Round-up



BRUSSELS, 20 May -- The United Nations Conference on Least Developed Countries concluded today in Brussels by adopting a political declaration in which 193 participating governments committed themselves to the eradication of poverty in the world’s poorest countries and to the improvement of the quality of lives of the more than 600 million people living in them.

The Conference, attended by more than 6,500 participants from governments, specialized agencies and civil society, also adopted an ambitious programme for the next decade that addresses development assistance, debt cancellation, and private investment in the 49 least developed countries (LDCs).

By the “Brussels Declaration on LDCs”, governments stated that a “transparent, non-discriminatory and rules-based” multilateral trading system was essential for LDCs to reap the benefits of globalization and that the accession of LDCs to the World Trade Organization (WTO) should be encouraged and facilitated. In that context, they committed themselves to seizing the opportunity of the WTO’s fourth Ministerial meeting in Doha, Qatar, in November, “to advance the development dimension of trade”.

Governments also committed themselves to seizing the opportunity of the Conference on Financing for Development in March 2002 in Monterrey, Mexico, for mobilizing resources for development; took it upon themselves to reverse the declining trends of official development assistance (ODA); and committed to providing full financing and speedy implementation of the enhanced Heavily Indebted Poor Countries (HIPC) Initiative of the World Bank and the International Monetary Fund (IMF).

The Programme of Action for the Decade 2001-2010 calls initiatives to arrest the marginalization of LDCs an “ethical imperative”. It outlines a broad range of measures to be taken by the developed nations and the LDCs themselves in the form of a framework for partnership and specific commitments on, among others, good governance at national and international levels; building human and institutional capacities; enhancing the role of trade in development; reducing vulnerability and protecting the environment; and mobilizing financial resources.

Rubens Ricupero, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), said the Conference had already made important progress possible in vital areas. However, he asked, in light of the current circumstances, were the results satisfactory? Unfortunately, the answer was no.

Many decisions highlighted by non-governmental organizations, for example, were still not achievable and it had not been possible to make major breakthroughs on such issues as debt relief, trade or ODA.

A new way to make progress on the question of LDCs had been necessary, he said. In planning the Conference, UNCTAD had tried a new approach, keeping the intergovernmental process, but having another process side by side, thus, bringing together large-, small- and medium-sized companies, women and young entrepreneurs to discuss concrete issues with a view to finding practical solutions. The “deliverables”, even if modest, were useful, as they created a momentum for those who no longer had hope. The possibility now existed for a new globalization -– one that would promote understanding and the cross-fertilization of cultures.

Statements in the final session were also made by: Gun-Gritt Andersson, State Secretary of Sweden; Boutros Boutros-Ghali, Secretary-General of the Organisation internationale de la francophonie; Christine Mandela of the Coalition of African Organizations, speaking on behalf of the Non-Governmental Organization Forum; Eddy Boutmans, Secretary of State for Development Cooperation of Belgium; Poul Nielson, European Commissioner for Development and Humanitarian Affairs; and John Alexander Corrie, Member of the European Parliament.

The representatives of Bangladesh (on behalf of the least developed countries), China, and Iran (on behalf of the “Group of 77” developing countries) also made statements, as did the observer for the Holy See.

John Cuddy the Executive Secretary of the Conference, also spoke.

Conference Highlights

Following an opening ceremony that was addressed by, among others, the President of France, Jacques Chirac, United Nations Secretary-General Kofi Annan, and the Prime Minister of Bangladesh, Sheikh Hasina, who is also the Coordinator of the Global LDC Community, a special event was held on “The Challenge of Eradicating Poverty.” The Conference then embarked on a series of a dozen interactive thematic sessions over the next week aimed at producing specific, concrete results –- referred to by Mr. Ricupero as “deliverables” -- on a range of issues.

The events addressed: Governance, Peace and Social Stability; Enhancing Productive Capacities -- the Agricultural Sector and Food Security; Intellectual Property and Development -- an Instrument for Wealth Creation; Enhancing Productive Capacities -- the Role of Health; Education; International Trade, Commodities and Services/Tourism; Energy; Enhancing Productive Capacities -- the Role of Investment and Enterprise Development; Human Resources Development and Employment; Infrastructure Development; Transport; and Financing Growth and Development.

One highlight, which took place in the context of the discussion on the role of investment and enterprise, was the signing by ministers of Benin, Burkina Faso, Comoros, Cambodia, Burundi, Chad, Mali, Guinea, and Mauritania of 29 bilateral investment treaties, paving the way for increased foreign investment and future economic cooperation.

There were also a number of parallel events during the Conference, which provided a forum for civil society. Those events included discussions on the digital economy, the business sector and the music industry, and forums on women entrepreneurs and city-to-city cooperation. A high-level parliamentarians round table, and the Eighth World Summit of Young Entrepreneurs also met as parallel events to the Conference.

During the Summit, the World Trade University -- a mechanism to help foster a broader understanding of the multilateral trade system among young people -- was launched. The University, which will be based in Toronto, with campuses in Asia and Africa, will serve as an institution of higher learning that is affordable, accessible and adapted to the present-day training needs of entrepreneurs and policy makers from LDCs, developing countries and countries in transition.

Another significant outcome during the parallel events was the adoption by more than 200 mayors from throughout the world of a declaration of commitment to city-to-city cooperation and the fight against poverty. The declaration took special note of the particular structural difficulties facing cities in LDCs, as well as the poor living in them.

Closing Statements

ABDUL JALIL (Bangladesh), speaking on behalf of the least developed countries (LDCs), expressed profound thanks to the European Union for having hosted the Conference, its financial and other support, and the excellent arrangements. The Conference signified a milestone of development cooperation between the European Union and the global community. The most notable aspect of the session was the excellent atmosphere between the LDCs and their partners.

He said the Declaration was a political document that incorporated the commitments for the development of the LDCs. Its overarching goal was to make progress in halving the number of people living in poverty by 2015. The LDCs had also reiterated their primary responsibility for their own development, but assisted by their global partners. Turning to the newly adopted Programme of Action, he stressed that cooperation would ensure that it did not fail like its two predecessors. The Conference had rekindled hope in the minds of 630 million people that their aspirations might finally begin to be realized.

JOHN CUDDY the Executive Secretary of the Conference, presented the report on deliverables and recommendations of the interactive thematic sessions, parallel and civil society events. Among the deliverables were commitments to increase official development assistance (ODA); provide innovative technical assistance; and provide speedy financial resources for the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. The European Union also decided to forego payments on all special obligations by LDCs. Agreement was reached that all developed countries would provide access to LDCs’ products through duty-free access and other measures.

A World Trade University was also launched to help entrepreneurs in LDCs, he added. Twenty-nine bilateral treaties had been signed, while a programme to facilitate investments between foreign companies and entrepreneurs had been established. Development partners had also announced their commitment to support infrastructure development in the pursuit of energy resources. There was also a commitment to establish a revolving fund to help LDCs develop and manage their natural gas resources.

GIOIA SCAPPUCCI, of the Holy See, said that her delegation had joined the consensus on the Programme of Action, but she wanted to make clear its position on the expressions regarding reproductive health and reproductive rights in the population section of commitment three. Her delegation’s attitude towards that section should be interpreted in the spirit of the opening statement of that section, which referred to the reports of the International Conference on Population and Development (ICPD) and of the twenty-first special session of the General Assembly. The fact that the Holy See welcomed the consensus decision should in no way be interpreted as constituting a change in its well-known position regarding the use of contraception for family planning, which the Catholic Church found morally unacceptable.

BAGHER ASADI (Iran), speaking on behalf of the “Group of 77” developing countries and China, said that the travel to the finale of the Conference had been a long journey, which had taken hard work and dedication. Now, it was necessary to be realistic and objective, for everyone knew how much hard negotiations and inevitable compromise had made the agreement possible in the early hours of Sunday. There was a determination to respond to the challenge of the plight of the less fortunate of the world.

The Programme of Action, by its very nature, represented the greatest achievement of the Conference, he continued. Concrete deliverables had been agreed upon, although not as many as his delegation had hoped for. Much more remained to be done, however, for the end of the Conference was the beginning of a much longer journey towards bridging the chasm between the rich and the poor. The question of implementation and follow-up was all-important at this stage. Monitoring, implementation and review would be needed at national, regional and international levels. A number of measures had been envisioned in that regard. He looked forward to the Secretary-General’s report to the General Assembly and adoption of follow-up measures.

GUANG XIANG SUN (China) said the Conference had achieved positive results, and he extended congratulations to it on its complete success. The 2001-2010 Programme of Action was significant to LDCs, since it would help put them back on the track of social development. What was notable also was that the developed partners would turn their commitments into action at the earliest stage. China would continue, as always, to provide assistance to LDCs within the context of South-South cooperation and help those countries to realize prosperity.

GUN-GRITT ANDERSSON, State Secretary of Sweden, said that the Programme of Action and the Declaration had been negotiated in the spirit of good will and cooperation. The Programme contained strong actions to ensure the development of the worked towards consensus.

BOUTROS BOUTROS-GHALI, Secretary-General of the Organisation internationale de la francophonie, said that the outcome of the Conference would remind the world that no man was an island. The world was a global village, and there was a great exchange of ideas throughout the world. Countries could no longer put their heads in the sand like an ostrich, pretending that there was no poverty in the world.

The Conference had allowed all the stakeholders to participate in the discussion of relevant issues and in the decision-making process, he continued. Ten years had passed since the second Conference, and the world could see the changes that had taken place since that time. Globalization today was a true world phenomenon, which needed to be taken into account. It was important to take a lucid look at the state of LDCs and respond to their needs. Education, health and access to information technology were of particular importance to the LDCs, and it was important to respond to their needs.

For its part, Africa should become more ambitious and realistic about its possibilities, he said. The LDCs should denounce the lack of human rights, corruption, underdevelopment and poverty. Development did not mean following a single model imposed from the outside. The diversity of mankind, its languages and traditions needed to be taken into account. It was important to take advantage of the cultural riches of the LDCs. It was important to grow the seeds of change in the LDCs, and it was necessary to remember that sometimes it was the smallest seeds that bore the biggest fruit.

CHRISTINE MANDELA, speaking on behalf of the Non-Governmental Organization Forum, said there had been calls for a more focused report on human rights and clear expression of workers rights, along with clear commitments and policies. Free access to the world market, no restrictions, a framework for good governance, and guarantees for the right to basic and quality education for all had all been among the issues raised and addressed in depth this week.

Yet, she continued, the final conclusion did not take account of the issues of the greatest concern and the most fundamental themes. The Programme of Action stressed access to the market, trade, among other things, but the commitments must be followed through or the Conference would have no impact whatsoever in LDCs.

EDDY BOUTMANS, Secretary of State for Development Cooperation of Belgium, said the approach to the issues during the current Conference signified a new approach for the United Nations. Six hundred million of the planet’s inhabitants were individuals with legitimate expectations of a better life. “That is why we must make sure that we have at least attempted to respond to their expectation”, he said.

“If local, national and international authorities pull together, we might achieve a positive result”, he said. The follow-up to this Conference was, therefore, vital. “We must go beyond mere semantics and discussion of the relative merits of New York versus Geneva. We want to look at the substance and not the venues”, he said. The international community had a shared responsibility to combat poverty, and the new challenges did not allow anyone to rest on their laurels.

POUL NIELSON, European Commissioner for Development and Humanitarian Affairs, said that many in the room had probably thought it would not be possible to pull the Conference through. Despite the differences, however, the agreement reached was worth the work. The Conference had emphasized the role of the LDCs themselves in determining their future. It stressed the importance of good governance and reaffirmed the responsibility of the international community in helping the developing countries to overcome their problems. International cooperation and partnership had been also been reaffirmed.

A substantive programme of action at the outcome of the Conference included a number of initiatives to address the plight of the LDCs. The so-called “deliverables” had been delivered. He was pleased that the Conference had resulted in the first international agreement ever to allow the LDCs tariff-free access to markets. Now it was time to start a new round of trade negotiations in the World Trade Organization (WTO), which would allow the LDCs to address their problems in a comprehensive manner.

JOHN ALEXANDER CORRIE, Member of the European Parliament, President of the ACP/EU Joint Parliamentary Assembly, said that he was representing the President of the European Parliament. The Conference should become a milestone in a progression of 49 LDCs out of poverty. The first stage of the process was the establishment of goals. Now that a start had been made in Brussels, there was a long road ahead.

Turning to the outcome of the Conference, he said that he had been particularly heartened by the statement that the European Union would forego payments on all outstanding LDC obligations arising from special loans under the terms of the Lomé Conventions. That initiative, coming as it did in the wake of the decision to grant duty-free access in the European Community market for all LDC products, except arms, clearly demonstrated the Union’s determination to do something concrete to assist the poorest countries.

Continuing, he also welcomed the initiatives regarding HIV/AIDS and the Organization for Economic Cooperation and Development (OECD) agreement to untie an additional $2 billion annually of bilateral aid to the LDCs. Those actions, however, would not by themselves transform the economies of the poorest countries, unless they were accompanied by new attitudes and determination. All countries must muster the political will to realize the aspirations contained in the Programme of Action for the LDCs for the coming decade. There was no need to be too ambitious. It was better to set modest goals that were achievable, than idealistic targets that could not be attained.

RUBENS RICUPERO, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD) and Secretary-General of the Conference, said the Conference had already made some important progress possible in vital areas. In light of the current circumstances, were the results satisfactory? Unfortunately, the answer was no. Many decisions highlighted by non-governmental organizations, for example, were still not achievable. It had not been possible to make major breakthroughs on major negotiations, such as debt relief, trade or ODA. In those areas, he was afraid there was less promise even in terms of a perspective. The question then was, what could have been done?

There were three routes, he continued. Go back as had been done in the past -- but that led nowhere. The second approach was resignation or passivity, which was a threat even to development aid. Even those who were really committed were showing strange passivity in the face of current trends. “We should not give into passivity”, he urged. He hoped UNCTAD would show rationally why it was necessary to reverse the current trend.

The third option was to seek new methods, he continued. “We started from the assumption that if there was no consensus or political will to move beyond what we are able to deliver, then we should find ways of creating more consensus and more political will”, he said. “Based on that, we proposed a new approach.” That approach was to keep the intergovernmental process, but to have another process side by side -- one where “we would not be called on to approve agreed language in a formalized forum, but to organize a debate to reach possible outcomes”.

This Conference, he continued, also broadened participation by bringing in international organizations and asking them to deliver practical and tangible results. The outcome was varied -- some were better than others. Yet, how could there be a conversation about development without including the major developmental actors? he asked.

Large-, small- and medium-sized companies, women and young entrepreneurs had all discussed concrete issues with a view to finding practical solutions. The “deliverables”, even if modest, were useful as they created a momentum for those who no longer had hope. The sessions had covered a wide variety of issues ranging from HIV/AIDS to the $50 billion per year music industry. Now, there was a possibility for new globalization -- one that would promote the understanding and the cross-fertilization of cultures. That was the aim of the Conference, and he was sure the LDCs had much to contribute to it.

Closing the event, representing the country that served as Conference President, the Minister of Trade, LEIF PAGROTSKY, Minister of Trade of Sweden, said it had been an intensive week of negotiations, which had not been easy. The results were worth the effort, however. The message was clear and loud -- “we must all move now to concrete actions”. The European Union had already decided to grant the LDCs free market access for all their goods, except arms. Without the Conference, such a step would not have been possible. At the global level, the international community had now agreed on such actions as increased assistance to the LDCs and improved access to essential medicines. This week, the Conference had also managed to agree on facilitated access to HIPC for countries just out of conflict.

The Conference was not a solution, but an important building block, he continued. The new multilateral trade round must be a development round, for the developing countries could and should have a voice in the WTO. It would be the weakest who would suffer most if the world failed to launch a new round of negotiations in November. The Conference had contributed to the creation of an integrated international framework for dealing with globalization. The agreement on coherent coordination was of great importance at both national and international levels. Additional financial resources were needed, and the ODA had a special role to play in support of development. The Conference had launched a competition for initiatives, which could serve as a historic start in favour of development.

Programme of Action

The aim of the Action Programme (document A/CONF.191/L.18), through its partnership framework and seven commitments, is to significantly improve the conditions of the LDCs’ 600 million people, and to that end it outlines within each commitment policies and measures for the LDCs and development partners. Throughout its 60 pages, it describes ambitious goals, such as halving the proportion of people living in extreme poverty by 2015, while acknowledging that the objectives and goals set at the last LCD Conference in Paris 10 years ago “have not been achieved”.

The Programme points out that, while the LDCs have pursued the economic reforms called for in Paris -- including reducing trade barriers and strengthening regulatory frameworks -- the results have been “below expectations”. Their growth and development prospects have diminished during the decade through a combination of, among others, declining financial aid, an increasing debt burden, and complex trade barriers. Reversing their increasing marginalization and promoting their integration into the world economy is, the Programme says, “an ethical imperative”.

The Programme’s partnership framework describes implementation of the mutual commitments by LDCs and development partners as a “shared responsibility”. The commitments that follow fall under the headings of: fostering a people-centred framework; good governance at national and international levels; building human and institutional capacities; building productive capacities to make globalization work for the LDCs; enhancing the role of trade in development; reducing vulnerability and protecting the environment; and mobilizing financial resources. The Programme concludes with a chapter on implementation and follow-up.

Under financial resources, development partners agree to, among others, implement the OECD recommendations to “untie” aid to LDCs -- provide aid without conditions -- which, the document states, will significantly increase the value of aid. They also agree to implement a number of commitments previously made in Paris: those providing more than .2 per cent of their gross national product as ODA to LDCs agree to continue; others, providing .15 per cent of gross national product, undertake to reach .2 per cent expeditiously; and still others that have committed themselves to the .15 per cent target reaffirm their commitment and undertake to achieve the target within the next five years.

On debt, partners agree to provide the resources to fully implement the enhanced HIPC Initiative of the World Bank and the IMF and make expeditious progress towards full cancellation of all outstanding official bilateral debt owed by HIPC LDCs. They also agree to assist LDCs in their efforts to use resources released by debt relief for nationally owned development and poverty eradication strategies for long-term economic growth. In order to increase foreign investment, LDCs agree on policies to strengthen regulatory and legal frameworks, as well as reduce risks for foreign investors through such things as bilateral and regional investment treaties, and donors agree to support LDCs in such areas as technology, training, and the establishment of foreign investment advisory bodies and by underwriting, where appropriate, perceived political and commercial risks.

The commitment on trade includes separate sections on: trade, commodities and regional arrangements; services; and reducing the impact of economic shocks. It states that “integration into the world economy is an insufficient but necessary precondition for long-term sustainability of poverty reduction”. Under the commitment, development partners aim at improving preferential market access for LDCs by “working towards the objective” of duty-free and quota-free market access for all LDC products in the markets of developed countries. They also aim at implementing in full the special and differential measures for LDCs, as contained in the final act of the Uruguay Round, while considering new measures for LDCs as part of future multilateral trade negotiations.

The partners also intend to strengthen technical assistance for the implementation of multilateral trade negotiations and consider making such assistance an integral part of commitments undertaken in future trade agreements. They further outline a number of steps aimed at facilitating the accession process to the WTO on terms that take into account their stage of development and the basic principle of special and differential treatment. On commodities, the Programme states “Diversification of the export base would ... help the LDCs to overcome one of the most important weaknesses of their development”. To address that, among a number of other measures, partners will support diversification programmes, including by strengthening activities covered by the Second Account of the Common Fund for Commodities and development of small- and medium-sized enterprises.

The commitment on building human and institutional capacities addresses such areas as: social infrastructure and social service delivery; population; education and training; health, nutrition and sanitation; and social integration. It describes goals and sets out measures and policies to meet them. For example, by 2015 it calls for: making reproductive health accessible to all individuals; ensuring that all children have access to free primary education and achieving a 50 per cent improvement in levels of adult literacy; and reducing the infant mortality rate below 35 per 1,000 live births and reducing the maternal mortality rate by three quarters of the current rate.

Among a wide variety of measures, development partners agree to provide strengthened support in implementing population and development policies, and enhancing ODA for health, safe water and sanitation, assist in setting up effective health infrastructures and increase access to necessary medicines and vaccines, including urging the pharmaceutical industry to make drugs related to communicable diseases -- particularly HIV/AIDS, malaria and tuberculosis -- more widely available and affordable.

The commitment on building productive capacities contains measures addressing physical infrastructure, technology, enterprise development, energy, agriculture and agro-industries, manufacturing and mining and rural development and food security.

In its follow-up section, the Secretary-General is requested to submit recommendations for an efficient and highly visible follow-up mechanism, including the possibility of transforming a current United Nation office into an Office of High Representative for Least-Developed, Landlocked Developing Countries and Small Island States.




* *** *