STATEMENT OF THE CZECH REPUBLIC ON THE PROGRAMME OF ACTION FOR THE LEAST DEVELOPED COUNTRIES FOR THE DECADE 2001 – 2010

 

THIRD UNITED NATIONS CONFERENCE ON THE LEAST DEVELOPED COUNTRIES, BRUSSELS, 14 – 20 MAY 2001

 

PRESENTED BY MR HYNEK KMONICEK, DEPUTY MINISTER OF FOREIGN AFFAIRS OF THE CZECH REPUBLIC, 15 MAY 2001

 

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Mr Chairman, Ladies and Gentlemen ...

 

The Czech Republic welcomes the Programme of Action (PA) as a strategic framework that picks up on the activities of the international community so far, and regards the needs of LDCs. The Czech Republic fully supports international development goals and specific actions set out by the PA on the way to achieving them. Only concrete measures, accountable results, and the transparent monitoring of PA implementation can contribute to LDCs sustainable development and their integration into the world economy.

 

A significant prerequisite for the fulfilment of the PA is partnership between governments, international organizations, and representatives from the private sector, non-governmental organizations and civil societies. The Czech Republic seeks open dialogue with the non-governmental sector on the problems of international development, successfully initiated at last year's joint WB and IMF conferences in Prague.

 

The mobilization of development funds plays a key role in achieving PA goals. The Czech Republic considers all elements of funding, i.e. domestic resources, official development assistance, debt relief, investment, and the relaxation of trade barriers to be mutually beneficial, and will do its utmost to strive for the mobilization to the benefit of LDCs.

 

(Development assistance)

 

Mr Chairman, the Czech Republic is quick to stress the complementary and catalytic role of development assistance in relation to other funding facilities. Nevertheless it sees its key and stable role in the poverty eradication in LDCs, which are the most vulnerable part of the international community. Official development assistance for LDCs should not be only higher in volume, but also effective, transparent, and result-oriented.

 

The Czech Republic believes that the fundamental requirement for an inflow of financial resources, including development assistance, is political stability, democracy, and respect for basic human rights, as well as a sound economic and legal environment in LDCs. Each country carries primary responsibility for its own development, while international cooperation is there to provide technical assistance and funding facilities to support sustainable development. Accordingly, the Czech Republic places an emphasis on nationally-owned poverty reduction strategies and sustainable development strategies as a framework for partnerships between LDCs and their counterparts.

 

As an emerging donor country, the Czech Republic provides, as far as it is economically able, development assistance to less developed countries, including LDCs. In line with the PA, the Czech Republic wants to increase the share of LDCs in bilateral development assistance so that in the next decade the flow of Czech development aid to LDCs will increase substantially. At present, the Czech Republic is preparing a new strategic framework for the provision of foreign development assistance, the aim of which is to improve the current system and respond to the current trends of international development cooperation.

 

Besides bilateral development assistance, the Czech Republic also shares in the development activities of a number of international organizations, especially in the framework of the UN. An important element of these operations is LDC aid. For example, the Czech Republic regularly supplies the work of the IDA and the PRGF II programme. As a candidate country, the Czech Republic is prepared to do its bit to further the EU development policy. The Czech Republic is appreciative of the Cotonou Agreement between the EU and the African, Caribbean and Pacific states, many of which figure among LDCs, as an example of partnership and mutual dialogue between developing countries and their development partners.

 

(International Trade)

 

Mr Chairman, the Czech Republic sees the Conference held by the UNCTAD as a confirmation of the importance of liberalizing international trade for socio-economic development. The Czech Republic fully supports the provisions of the PA with the  aim of integrating LDCs into international trade in goods, services, technology, and capital, and therefore of overturning their marginalization in the international trade system.

 

The main task of the partners is to open up domestic market access. The Czech Republic appreciates the potential offered to mutual trade by the dismantling of customs and other barriers. As an associated country, the Czech Republic welcomes the recent EU decision to open up its markets for all products (except arms) from LDCs by 2009. Imports originating in LDCs through the Czech national GSP scheme already enjoy duty-free treatment.

 

On the other hand, the liberalization of international trade must be complemented by LDC efforts at capacity building, enabling them enjoy the true benefits of globalization. A special place is set aside for the integration of LDCs into the multilateral trade system, in the concrete the WTO. Such a measure should be understood as a continuity in the Czech Republic´s  approach towards the broadest possible participation of LDCs in the multilateral trade system and in the related new round of the multilateral trade negotiations, for which the Czech Republic is prepared to allocate the necessary financial means.

 

The process of integrating LDCs into the world economy should not be limited simply to the international exchange of products and services. Nor should LDCs be excluded from a knowledge-based global economy. The spread of information and telecommunication technologies is not only an instrument to increase education, but also supports better governance and transparency of development cooperation.

 

(Debt relief)

 

Mr Chairman, as with the other provisions of the PA, the problem of relieving LDCs of their debts must be tackled jointly by creditors and international organizations on the one hand, and LDCs themselves on the other. The Heavily Indebted Poor Countries (HIPC) initiative, to which the Czech Republic makes active contributions, is fully in line with this concept.

 

Independently of PA proposals, the Czech Republic has already cancelled all official bilateral debts with all LDCs eligible for the HIPC initiative. What is more, the Czech Republic now provides development assistance exclusively in the form of grants, which do not deepen the debts of the recipient countries.

 

The Czech Republic is prepared to consider debt relief on a case-by-case basis for other LDCs who are presently outside the HIPC initiative, although it still regards nationally-owned poverty reduction strategies and economic reform strategies in LDCs as the cornerstone for debt reduction and a prerequisite for debt sustainability. Reducing the debts of LDCs should therefore be assessed in its broader context, including, alongside the HIPC initiative, coordination with the activities of the Paris Club.

 

To conclude, the Czech Republic is aware of the significance and urgency of the problems the international community is up against as it stands at the outset of the 21st century. The Czech Republic values the PA as the framework for a strategy wielded by the international community to find solutions to these problems to the benefit of LDCs, the most vulnerable element of the international community. The Czech Republic is actively involved in development cooperation and is prepared to do its utmost to fulfil the goals of the PA.

 

Thank you for your attention.