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Chairman,
Dear colleagues,
Let me thank Kandeh for convening the
Conference to examine the impact of the crisis on least-developed
countries (LDCs). This conference is very timely, coming just one day
after the closure of the 7th WTO Ministerial Conference, and just before
countries arrive in Copenhagen for a crucial summit on climate change.
Since we last met two years ago, our
understanding and appreciation of the impact of the global financial and
economic crisis on the LDCs has become clearer. We have not just heard
but seen with our own eyes the damage this crisis has had on LDCs. We
now have empirical data that confirms its negative impact on the gains
LDCs had made towards achieving their development targets under the
United Nations Millennium Development goals.
Unlike rich countries, LDCs have not been able
to provide huge bailout packages to their ailing industries and expand
social safety nets to those who lost their jobs. We have seen a few
developed countries spending around $15 billion on their “cash for
clunkers” programmes. And yet for LDCs this is out of reach.
Many of you were at the WTO 7th Ministerial
Conference. The statements and interventions made by all ministers
reconfirmed the importance of trade as an engine for growth. There was
recognition that trade is the stimulus package available to developing
countries and that it has to be part and parcel of the economic recovery
effort for growth to be sustainable.
The crisis has demonstrated the importance of keeping trade open and
fighting against protectionism. What we heard from our ministers in
Geneva during the last few days is that the monitoring of trade policies
that the WTO put in place at the outset of the crisis has served the
members well and proved the resilience of the multilateral trading
system. But as long as we continue to see unemployment rise, we need to
remain vigilant.
Many of you also highlighted the need to
strengthen the rules-based multilateral trading system. The single most
valuable contribution in this respect is the conclusion of the Doha
Development Round.
The conference also provided an opportunity to
consider assistance being offered to LDCs in the accession stage and how
we can best support their endeavour to become members of the WTO family.
Finally, we are also united on the need to
keep momentum on Aid for Trade (A4T). We need to keep mainstreaming
trade in countries' development strategies. We need additionality and
predictability of resources. I took note of the calls made by many of
you to urgently recapitalize Multilateral Development Banks and in
particular the African Development Bank, as has been done with the Asian
Development Bank. I will be conveying this message to their shareholders
as a priority issue they need to look into to help mitigate the crisis
in the coming months.
On Tuesday I also hosted an LDC Ministerial
event to look at the Enhanced Integrated Framework (EIF), which is the
A4T vehicle specific to LDCs. All EIF partners, the LDCs, donors and
agencies attended and I was impressed by the concrete and specific
examples of how you are using EIF funding to change the realities on the
ground. We heard about how Mali is using it to improve the quality of
mangoes to access export markets. About how Zambia is using it to tackle
infrastructure bottlenecks and reduce the costs of doing business. About
how Yemen, an acceding LDC, is using the EIF to build capacity to
implement future accession commitments.
Cambodia shared with us their own experience
in setting domestic priorities and ensuring good coordination of EIF
stakeholders at the national level. These are essential ingredients for
ownership and efficiency.
More and more LDCs are now using the EIF and
projects are being rolled out. It is therefore important that donors
deliver on the pledges made in Stockholm in 2007 — and we heard many say
they are or will do soon — in order to gain a better understanding of
resources needed over the next five years.
As I have highlighted in the past, UNIDO is a
key partner in the Aid for Trade initiative and the leadership it has
shown in this regard is exemplary. The reality is that UNIDO has the
capacity and has shown the commitment to help LDCs enhance their
productive capacity and thereby limit the negative impact of the crisis.
An enhanced capacity to produce is central to
ensure that real benefits will result from the successful conclusion of
the Doha Round.
I am also happy to see Cheick Sidi Diarra here
this morning because as you have just heard from him, the international
community will be joining the LDCs in 2011 in Turkey to take stock of
what has been done in the last decade to improve the situation of LDCs.
For the WTO, I can pledge to him and to all of you our full commitment
to make sure that the 4th UN Conference for LDCs does not become just
another international speechmaking event but that it results in concrete
and measurable commitments towards the LDC development.
A key contribution that the WTO can make to
that conference is to deliver on the Doha Round. The coming months will
be crucial for closing remaining gaps and starting to walk the last mile
to a deal. It is through the conclusion of the Doha Round that members
will have an opportunity to deliver on a number of commitments they made
at the UN LDC Conference in Brussels in 2001 which I remember having
attended in a previous life. We have seen progress on this front. Just
three days ago Brazil announced that in four years it will be granting
LDCs 100 per cent duty-free and quota-free treatment. This is a positive
signal in the direction of the poorest.
I look forward to continuing to work with my
colleague Kandeh, UNIDO and with all its members to ensure the benefits
of a more open trading system translate into reality for developing
countries.
Thank you.
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