Lao People's Democratic Republic

STATEMENT by H.E. Mr. Somsavat Lengsavad, Deputy Prime Minister and Minister of Foreign Affairs of the Lao People's Democratic Republic

at The Third United Nations Conference on the Least Developed Countries,

Brussels, May 15, 2001

Mr. Chairman,

On behalf of the delegation of the Lao People's Democratic Republic, I would like to convey my sincere congratulations to you on your unanimous election as Chairman of the Third United Nations Conference on the Least Developed Countries. We are confident that under your able and wise leadership our deliberations will be concluded successfully.

I would like to take this opportunity to recognize the guidance and valuable contribution of the Secretary General of the Third UN Conference on the LDCs to ensure an effective preparation for the Conference. May I also recognize the active role played by the European Union, the host of the Conference, and the involvement of the United Nations System in its entirety, in the preparatory process at various levels.

Finally, I wish to voice our sincere appreciation to the Government and the people of the Kingdom of Belgium for the warm hospitality extended to us during this eminent gathering.

Mr. Chairman,

Since the Second UN Conference on the Least Developed Countries, Official Development Assistance (ODA) has declined substantially while external debt burden had reached alarming proportion, adding considerably by reduction of Foreign Direct Investment (FDI), world exports and imports. Collectively, these problems have undermined efforts made by the LDCs to breakout of their precarious socio-economic situation and the structural weaknesses inherent in their economies.

Indeed, in spite of major policy reforms initiated by many LDCs to carry out a structural transformation of their domestic economies, and supportive measures taken by a number of donors in accordance with the adopted Programmes of Action, the economic situation of these countries, as a whole, worsened during the 1990s, with the result that today, there are twice as many LDCs than in 1972.

Mr. Chairman,

Over the past decade, the Lao PDR has concentrated its efforts in implementing the Paris Program of Action on LDCs, which has been reflected in the 8 National Priority Programs. These programs also respond to three omnipresent, transcendent concerns of the Lao PDR, namely, achieving permanent food security, preserving the country's natural resource base and environment and developing the national human resource potential.

The Lao PDR 's commitment to eradicating mass poverty has been consistently translated through the improvement of the living standards of its multiethnic population, based on sustainable growth with equity. Through the efforts so far pursued by the Lao government and people and with the assistance and cooperation received from the international community, including the General Special Preferences treatment accorded by the European Union, these development priorities have yielded some positive outcomes. Indeed, our country has experienced relatively high economic growth rates: between 1991 and 1995 the average annual economic growth rate was of 7.0 per cent. Furthermore, between 1993 and 1998, the poverty incidence fell from 46 per cent to 39 percent which we consider very encouraging.

These achievements cannot hide, however, the difficulties due to the country's backwardness of economic structure and lack of strong industry. Moreover, the country was hard hit by natural calamities and the regional financial crisis, and as a result, the average annual economic growth rate from 1996-2000 downed to 6.2 per cent. The average annual per capita income remains as low as $US 350.

Taking into account the reality of the country, the Lao government has set the development goal of exiting once and for all the status of a LDC by 2020 as formulated in the National Economic and Social Development Plans from 20012010. The major targeted goals are aimed to basically stop slash-and-burn cultivation and to completely eradicate opium cultivation by 2005 through having permanent means of subsistence. The ultimate objective of accelerating growth with an equitable development and improving the living conditions of the people would be achieved through basic poverty reduction by 2010. In our quest to exit the LDC status, the national efforts should be complemented by supportive measures from the international community, which are indispensable factors for least developed countries like my country.

Mr Chairman,

The Third UN Conference on the LDCs is convened when the process of globalization and liberalization, in full swing, has created many opportunities. However, many LDCs have faced the greatest challenge of dealing with the credibility gap and growing frustration. The continued marginalization of LDCs is reflected in their low and declining share in world trade, investment and output while their inability to take advantage of the opportunities offered by the rule-based multilateral trading system is compelling.

Their efforts towards achieving sustainable development and poverty eradication are rendered more difficult and complicated unless radical interventions, comprehensive and well coordinated supportive measures from the international community are made to improve their productive capacity, their access to international markets and their full integration into the global economy and international trading system. Establishment of a clear, simplified and fasttrack procedures for the accession to WTO by those LDCs, which are not yet members should also be an important part of the efforts by the international community to integrate LDCs in the world economy. In this respect, the task of this Conference is of paramount importance as it has to chart and adopt a collective vision for joint action for the next decade to enable the LDCs to emerge decisively, once and for all from their marginalization.

Mr. Chairman,

After the two previous Conferences, the said reality is that their respective Programmes of Action to address the development problems of LDCs failed to deliver the desired results. Against this backdrop, we, the LDCs, want to place our hope to this Third UN Conference held at the start of the new millennium. Its outcomes must lead to a real change and to improve the fate of LDCs. On this note, the Lao PDR will do its utmost to contribute to the effort of making this big event a fruitful one.

Thank you for your attention.