S T A T E M E N T
by
Mr.
Jaroslav Chlebo
at
the
Third United Nations Conference on the Least Developed Countries
Brusels,
Belgium 14 - 20 May, 2001
Mr.
Chairman,
Distinguished
delegates,
Let me start with the words of appreciation to the
European Union for hosting this conference and thus providing excellent
conditions for our deliberations. Our thanks go also to DG Mr. Rubens Ricuppero
and UNCTAD staff for all preparatory work for this conference.
Mr.
Chairman,
Despite three decades of
international action in favour of LDCs and despite the efforts of the LDCs
themselves, their socio-economic situation deteriorated and their
marginalization in the world economy continued. We gathered here again to
tackle this challenge and fulfil the promise of development and the equity for
all. The conference is very timely and provides an unique opportunity to
consider plan of action how to change existing scheme because for political and
even more for humanitarian reasons nobody should tolerate this luxury for more.
The main question of today is how to assure the adequate distribution of gains
from globalisation to all countries, industrialised, transitional, developing
and LDCs alike, how to stop the growing technological and development gap
between industrialised countries and some developing ones, especially LDCs.
There must be adequate response to these questions based on common
understanding on how to generate resources for development and pursuing
effective longterm development strategies.
Mr.
Chairman,
Let me comment few aspects of our agenda from Slovak
Republic perspective. We agree with the opinion that the new approach to
tackling problems of LDCs must incorporate the trade dimension. Economic growth
of LDCs heavily depends upon real exchange relations, which on the other hand depend
on permanent price moves of all commodities on world market. If combined
with protective custom duties and quantitative restrictions disadvantaging
processing of raw materials and semifinished goods, limited access for
labour-intensive products, which are by and large the biggest comparative
advantage of LDCs, we got almost complete picture of what is necessary to
change. EU‘s initiative EBA {Everything but Arms} should be therefore
considered as right step.
In
order to support economic growth of developing countries, LDCs including,
Slovak Republic also provides duty free market access to LDCs and preferential
treatment to the import of goods originating in developing countries. At the
same time we do not apply any quantitative restrictions or other measures to
these imports. We can only call the others to join this approach which can only
rise credibility of all of us in the eyes of LDCs.
The
failure of the Seattle should therefore be attributed mostly to the fact that
it did not address properly also these issues. The future WTO round of
multilateral trade negotiations can constitute an excellent occasion for
further liberalisation of trade, which will serve as tool and mechanism
allowing the LDCs to achieve higher rates of economic growth.
In
90s we could not record expected reduction of gap between the LDCs and
developed countries and their inputs into global economy as a result of
globalisation of manufacturing processes and liberalisation of capital flows.
Issue of development financing plays fundamental role in that. This is, in my
view, vital issue for acceleration of economic growth and development of
productive capacities, structural adaptation and integration into world
economy. Unfortunately, LDCs are currently moving in vicious circle where low
level of economic development means not sufficient income level, savings and
thus investment and by that the circle is almost completed. Initiative to
reduce LDCs indeptness arrives too late and too slowly and moreover it is not
definite solution. What LDCs need is not reduction or simple writing-off their
debts, but sort of „new deal“ for integration developing cooperation which
figures out at this conference as well. New approach should therefore be
constructive new beginning, not mere trade as it was so far. Any programme
should be tailored according to the conditions of every single country
otherwise we can again meet not encouraging results similar to those of
Integrated Framework for Trade related technical Assistance, though the
original idea was correct.
My
country despite its limited resources granted part of its payments to IMF to
the Poverty Reduction and Growth Fund and participates in supplying of funds
for IDA of World Bank and as a new member of the OECD we start to act as donor
country but our record of developing assistance is much more wide and goes back
by about 40 years. Training of labour force from developing countries educating
youth and preparing highly qualified specialists, transfer of know-how and
technologies are only few examples of that. Thanks to that we can enjoy today
very cordial relations with most of LDCs. I would like to confirm that the
policy of our country shall be pursued for future as well. Speaking about this
we would welcome the industrialised
countries renewed commitment to bring the volume of ODA in line with the
target of 0,7 % of industrialised countries GNP agreed at the Copenhagen
summit. Though ODA is only limited source for development support, it is a key
to infrastructure, human resources development, it can help significantly to
close the digital divide between developing and developed countries.
Developing
assistance should be considered and conducted in two way traffic and not only
one way movement. Financial resources, technical capacities and all the means
from provider of assistance must be balanced by adequate responses from the
side of recipient countries. Improved governance, institution and capacity
building, stable political environment and rule of law are the basic
preconditions. This would also help the developing countries integration into
world economy.
In
conclusion, Mr. Chairman, Slovakia supports the adoption of Programme of Action
for the Least Developed Countries for the decade 2001-2010, which was
negotiated in New York and submitted to this Conference. We think that it
represents good balance between the needs and interests of all UNCTAD members
and provides a good basis for strengthened cooperation among LDCs and
their development partners in highlighted areas.
Thank
you for your attention.
Brussels, May 16, 2001