Background
In 1971, the international community recognized
the existence of a category of countries whose distinctness lies not only in the profound
poverty of their people but also in the weakness of their economic, institutional and
human resources, often compounded by geophysical handicaps. Currently, 49 countries with a
combined population of 610.5 million - equivalent to 10.5 per cent of world population
(1997 estimates) are identified as "least developed countries" (LDCs). These
countries are particularly ill-equipped to develop their domestic economies and to ensure
an adequate standard of living for their populations. Their economies are also acutely
vulnerable to external shocks or natural disasters. The group of LDCs thus constitutes the
weakest segment of the international community and the economic and social development of
these countries represents a major challenge for themselves as well as for their
development partners.
49 LDCs make up 10.5% of the
world population. |
To respond to this challenge, the
United Nations General Assembly decided to hold in 1981 the first United Nations
Conference on the Least Developed Countries in Paris. At that Conference the international
community unanimously adopted the Substantial New Programme of Action for the 1980s for
the Least Developed Countries (SNPA), containing guidelines for domestic action by LDCs,
which were to be complemented by international support measures. However, despite 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 the areas of
aid, debt and trade, the economic situation of these countries as a whole worsened during
the 1980s.
The 1st UN Conference on
LDCs was held in Paris in 1981 and adopted the SNPA. |
For the international community,
the refusal to accept the deterioration in the least developed countries was an ethical
imperative. Thus, the United Nations General Assembly convened the Second United Nations
Conference on the Least Developed Countries. The Conference was held in Paris from 3 to 14
September 1990. It reviewed the socio-economic progress in the Least Developed Countries
during the 1980s as well as progress in international support measures during that decade;
it also formulated national and international policies and measures for accelerating the
development process in the Least Developed Countries for the 1990s. Drawing on the
experience and lessons from the 1980s, the Conference was able to agree on the strategies
and development priorities for those countries for the 1990s.
The outcome of the Conference was embodied in
the Paris Declaration and the Programme of Action for the Least Developed Countries for
the 1990s. In these documents, the international community committed itself to urgent and
effective action, based on the principle of shared responsibility and strengthened
partnership, to arrest and reverse the deterioration in the socio-economic situation in
the Least Developed Countries and to revitalize their growth and development.
Lack of progress in the
1980s led to the
convening of the 2nd Conference in Paris in
1990 which adopted the Programme of
Action for LDCs for the 1990s. |
Arrangements for implementation,
follow-up and monitoring and review
The Programme of Action recognized that
effective follow-up and monitoring mechanisms should support the development efforts of
the LDCs and are a key to the successful implementation of the Programme. The Paris
Conference agreed on a three-tiered mechanism covering national, regional and global
follow-up to monitor the effective implementation of the Programme. The mechanisms, which
have been viewed as complementary and mutually supportive, are to maintain focus on
national situations and priorities, ensure responsiveness to changing exogenous conditions
and provide for the sharing of national experiences as a basis for strengthening and
deepening the development partnership.
A Mid-term Review of the
Implementation of the Programme of Action for the LDCs for 1990s concluded that these
countries continue to be marginalized. |
At the global level, UNCTAD has
been entrusted with the focal role of the review, appraisal and follow-up of the
implementation of the Programme of Action. The Trade and Development Board of UNCTAD has
conducted annual reviews of progress in the implementation of the Programme of Action.
The main mechanisms for the country level review
are the World Bank Consultative Group Meetings and the UNDP Round Table meetings. The
Mid-term Global Review of progress in the implementation of the Programme of Action was
held in New York during the period 25 September - 6 October 1995. The High-level
Intergovernmental Meeting which conducted the mid-term review adopted conclusions and
recommendations to accelerate the implementation of the Programme of Action during the
second half of the 1990s.
The Mandate
In its resolution 52/187 of 18 December 1997,
the General Assembly decided to convene the Third United Nations Conference on the LDCs in
the year 2001 and set the mandate of the Conference as follows:
- To assess the results of the Programme of Action during the
1990s at the country level;
- To review the implementation of international support
measures, particularly in the areas of official development assistance, debt, investment
and trade; and,
- To consider the formulation and adoption of appropriate
national and international policies and measures for sustainable development of the least
developed countries and their progressive integration into the world economy.
| In 1997, the General Assembly
responded to the marginalization of LDCs by deciding to convene the 3rd United Nations
Conference on LDCs and designated UNCTAD as the focal point for the preparation of the
Conference. |
The General Assembly designated
UNCTAD as the focal point for organizing the Conference and accepted the offer of the
European Union (EU) to host the conference during the first semester of 2001. In its
resolution 53/182, the General Assembly welcomed and accepted the EU's offer to host the
Conference and designated the Secretary-General of UNCTAD as the Secretary-General of the
Conference and requested him in that capacity to make all necessary preparations for the
Conference. It also decided, among other things, to convene a two-part intergovernmental
preparatory committee and three expert-level preparatory meetings. It asked that the UNDP
Round Tables and the World Bank Consultative/Aid Groups make substantive contribution to
the preparations for the conference and requested the UNDP Administrator, in his capacity
as the convenor of the UN Development Group to ensure the full involvement of the resident
coordinators and country-teams in LDCs in the preparatory process. The General Assembly
called upon the Secretary-General of the Conference to organize well-focused sectoral and
thematic and country-specific round table meetings during the Conference to contribute to
the work of the conference. It also invited the Secretary-General of the conference to
facilitate the involvement of civil society, including NGOs and the private sector in the
preparatory process. In its resolution 54/235, the General Assembly decided to convene the
Meetings of the Intergovernmental Preparatory Committee (in two parts) in New York.
The General Assembly also
designated
Mr. Rubens Ricupero, Secretary-General
of UNCTAD, as Secretary-General of
the 3rd UN Conference on LDCs. |
The Conference secretariat is
also arranging three regional-level preparatory meetings in Addis Ababa (Ethiopia) in
March 2000; Kathmandu (Nepal) and Niamey (Niger) in April 2000.
Venue
The European Union offered to host the
Conference to be held in Brussels in 2001.
State of preparations for the Conference
A. The Official Launch of the Preparatory -- Process for the
Conference
In order to initiate the preparatory process for
the Conference, the Secretary-General
of UNCTAD, in his capacity as Secretary-General of the Conference, designated
Mrs. Anna Kajumulo Tibaijuka, Special Coordinator for the Least Developed,
Land-locked and Island Developing Countries, as the Executive Secretary for
the Conference. Following
her appointment as Executive Director of UN-HABITAT, the Secretary-General
designated Mr. John Cuddy as the Executive Secretary of the Conference.
Subsequently, he officially launched the preparatory process in the first
Inter-Agency Consultations convened by the Secretary of ACC for that purpose
and in the first meeting of the Consultative Forum on the preparatory process
for the Conference on 20 July and 21-22 July 1999, respectively. The
preparatory process for the Conference at country-level was launched during
the Ministerial Meeting of the LDCs, convened in New
York, on 29 September 1999.
|
Mr.
John Cuddy, Acting Special Coordinator for LDCs, has been designated as
Executive Secretary of the Conference. |
The First Inter-agency
Consultation reviewed the preparatory arrangements for the Conference, exchanged views on
substantive issues to be addressed by the Conference and discussed the contribution of UN
organs, organizations and bodies to the Conference and to its preparatory meetings.
Consultative Forum is to serve as a medium of
interfacing and consensus-building between the United Nations system and other
stakeholders, discussing and exchanging views on the conceptual framework of the
objectives of the Conference as well as on the intergovernmental preparatory process. The
meeting emphasized the importance of comprehensive country-based preparations for the
Conference where the LDCs themselves will have a central role in the process. It stressed
the importance of the involvement of civil society, including NGOs, and the private sector
both at the country and international levels. It exchanged views on the organizational and
substantive aspects of the Conference. It underlined the importance of the Conference
resulting in feasible, tangible, measurable and action-oriented outcomes. It also
underscored the importance of linking the preparatory process with other major forthcoming
conferences/events, including the Third WTO Ministerial Conference at Seattle, UNCTAD X,
Millennium Assembly and Finance for Development.
Mechanisms for Inter-agency
consultations have been created for UN system organizations and a Consultative Forum for
all the stakeholders including
the host and civil society and private sector. |
B. Consultations with the
European Union and the European Commission
In accordance with paragraph 3 of General
Assembly resolution 53/182, the Secretary-General of the Conference and the European Union
have agreed to convene the Third UN Conference on the Least Developed Countries in
Brussels during the period 13-20 May 2001. The Conference will be held in the Brussels
headquarters of the European Parliament.
The Executive Secretary of the Conference
discussed with the representatives of the European Commission questions relating to
Conference facilities, host agreement including the financial cost and budget of the
Conference and the substantive preparations and organizational aspects of the preparatory
process for the Conference. She held meetings with officials of the Ministry of Foreign
Affairs in Belgium and the Liaison Office of the European NGOs in Brussels. She also had
consultations with the current and incoming Presidencies of the European Union (Germany,
Finland and Sweden who will assume the Presidency of the EU at the time of the
Conference). The European Commission has already informed its representatives in LDCs to
provide support to the country-level preparatory process. In order to support this
process, the EU has donated ECUs 80,000 to each LDC and other donors are invited to assist
the shortfall.
C. Preparation at the country level
In launching the preparatory process for the Conference at global
and country levels, the Secretary-General of the Conference emphasized the importance of a
comprehensive and participatory preparatory process at the country level which should
involve inter-ministerial departments, civil society, private sector and local government
representatives. Such an approach should lead to the formulation of relevant and
legitimate national level comprehensive programme of action for each LDC. These programmes
will become the basis for formulating an umbrella global programme of action to be agreed
at the Conference. He addressed a Note Verbale to the governments of the least developed
countries, inviting them to initiate the preparatory process at the country level. In
order to facilitate the preparatory process at the country level, representatives of the
Executive Secretary of the Conference have, todate, visited, 39 least developed countries
with the purpose of initiating the preparatory process at the country level, in
particular, the establishment of National Preparatory Committees and the designation of
focal points to provide substantive support to the Committees.
As of end of January 2000, country-level
preparations had been initiated in 39 LDCs. |
D. Preparatory activities at the regional level
At the thirty-third session of the ECA/twenty-fourth meeting of the
Conference of Ministers responsible for economic and social development and planning, and
seventh session of African Ministers of Finance, held jointly during the period 6 to 8 May
1999 at Addis Ababa, resolution 834(XXXIII) on the Third United Nations Conference on the
Least Developed Countries was adopted. In the resolution, the Executive Secretary of ECA
was requested to provide support to African least developed countries in their preparation
for the Conference at the country, regional and global levels.
ESCAP initiated preparations for the final review on progress in
the implementation of the Programme of Action at national, regional and international
levels. The review will identify the constraints and impediments faced in the
implementation in the Programme of Action and recommend measures to support the efforts of
the LDCs. The Commission will undertake subregional studies which will cover finance for
development, social issues, external trade performance and economic infrastructure in the
LDCs of the subregion. The conclusions and recommendations from these studies will be
considered at the fifth session of the Special Body on Least Developed and Land-locked
Developing Countries which will be held in early 2001. The results of the regional reviews
will be presented to the Intergovernmental Preparatory Committee and subsequently to the
Third United Nations Conference on Least Developed Countries.
Historical
Background
Special attention to what were then called the
"less developed" among the developing countries began at the first
session of UNCTAD in 1964 and has gathered momentum since.
The first resolution on the subject of the least
developed countries was adopted at UNCTAD II in 1968 (resolution 24 (II)).
Provision for special measures in favour of the least developed countries (LDCs)
was included in the International Development Strategy for the Second United
Nations Development Decade. A detailed description of the general situation of
these countries was set out in reports by two groups of experts, in 1969 and
1971 respectively, although at that point there was no agreed list of least
developed countries.
It should be recalled in this context that until
the mid 1960s, developing countries were considered as homogeneous with the only
distinctions being the structure of their commodity exports. As such an approach
was simplistic and inadequate for conceptualizing certain policy measures, the
UNCTAD secretariat embarked on basic research into what was termed the
"typology" of developing countries. Drawing upon UNCTAD's work on
identification and classification and on the recommendations of the Committee on
Development Planning (CDP) which looked into the establishment of a list of
least developed countries, a task that was fraught with methodological and
political problems, the General Assembly approved the list of the LDCs in 1971.
After considerable debate the CDP decided to use the following criteria: per
capita gross domestic product (GDP) of $100 (in 1968 United States dollars) or
less; share of manufacturing in total GDP of 10 per cent or less; adult literacy
rate of 20 per cent or less.
The original list included the following countries:
Afghanistan, Benin, Bhutan, Botswana, Burundi, Chad, Ethiopia, Guinea, Haiti,
the Lao People's Democratic Republic, Lesotho, Malawi, Maldives, Mali, Nepal,
Niger, Rwanda, Somalia, Sudan, Uganda, United Republic of Tanzania, Upper Volta
(now Burkina Faso), Samoa and the Yemen Arab Republic. Subsequently the
following countries were added to the list: Bangladesh, Central African
Republic, Democratic Yemen and the Gambia in 1975; Cape Verde and the Comoros in
1977; Guinea-Bissau in 1981; Djibouti, Equatorial Guinea, Sao Tome and Principe,
Sierra Leone and Togo in 1982; Vanuatu in 1985; Kiribati, Mauritania and Tuvalu
in 1986; Myanmar in 1987; Mozambique in 1988; Liberia in 1990; Cambodia,
Madagascar, Solomon Islands, Zaire and Zambia in 1991 and Eritrea and Angola in
1994. Botswana is the only country which graduated from the list of the LDCs in
1994.
As a result of the creation of a specific list,
UNCTAD was able to begin more focused analytical work about special measures in
favour of least developed countries. The first comprehensive resolution on
special measures for these countries was adopted at UNCTAD III in 1972
(resolution 62 (III)), and a further resolution was adopted at UNCTAD IV, in
1976, (resolution 98 (IV)). In 1974, the UNCTAD Trade and Development Board
recognized the need to have integrated action on behalf of the least developed
countries and decided to convene an intergovernmental group to initiate
intensified efforts towards the formulation, development, review and appraisal
of policies and measures in their favour. The Intergovernmental Group on the
Least Developed Countries met for the first time in 1975 and gave a substantial
push towards the elaboration of special measures for these countries.
During the 1970s, it became evident that least
developed countries were lagging further and further behind, and in some cases
moving backwards. Their average growth rates were lower in the Second United
Nations Development Decade (about 0.6 per cent) than in the first (about 0.9 per
cent), and much lower than those of other developing countries. As a group least
developed countries recorded per capita declines in this period in each of the
following key economic areas: agricultural production, manufacturing output,
gross domestic investment, export purchasing power, and import volume. Thus the
second session of the Intergovernmental Group, which met in 1978, requested the
UNCTAD secretariat: to carry out a series of detailed studies on the overall
assistance requirements of least developed countries, which were to be examined
by a high-level expert group at the end of 1979; and to prepare a document which
would outline a programme of action for these countries. It also suggested that
full consideration be given at the fifth session of the Conference to launching
a coherent, sustained and effective substantial new programme of action for the
1980s.
The secretariat put forward such an outline in the
form of an issues note for the fifth session of the Conference, which provided
the basis for resolution 122 (V) launching a comprehensive and substantially
expanded programme in two phases: an immediate Action Programme (1979-1981) and
a Substantial New Programme of Action (SNPA) for the 1980s for the least
developed countries. This resolution stressed the urgent need to reverse the
poor performance of least developed countries, mostly through the infusion of
vastly increased flows of foreign assistance. It also contained the first
mention of the need to double aid to these countries as soon as possible.
The First United Nations Conference on the Least
Developed Countries (1981)
In view of the special importance of the SNPA, the
General Assembly decided in 1979 to act upon the recommendation in Conference
resolution 122 (V) to convene a United Nations Conference on the Least Developed
Countries in order to finalize, adopt and support the Substantial New Programme
of Action. The United Nations Conference on the Least Developed Countries was
held in Paris from 1 to 14 September 1981.
The Substantial New Programme of Action (SNPA)
At that Conference the international community
unanimously adopted the Substantial New Programme of Action for the 1980s for
the Least Developed Countries (SNPA), containing guidelines for domestic action
by LDCS, which were to be complemented by international support measures.
However, despite 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 the areas of aid, debt and trade, the economic
situation of these countries as a whole worsened during the 1980s. Factors which
contributed to this worsening state of affairs included domestic policy
shortcomings, natural disasters and adverse external conditions. In addition,
external debt servicing emerged as a major problem for most LDCs during the
1980s.
The Second United Nations Conference on the
Least Developed Countries (1990)
For the international community, the refusal to
accept the deterioration in the socio-economic situation of the least developed
countries was an ethical imperative. Thus, the United Nations General Assembly,
upon the recommendation of UNCTAD VII, decided at its forty-second session in
1987, to convene the Second United Nations Conference on the Least Developed
Countries. The Conference, in which 150 Governments participated, was held in
Paris from 3 to 14 September 1990. It reviewed the socio-economic progress in
the Least Developed Countries during the 1980s as well as progress in
international support measures during that decade; it also formulated national
and international policies and measures for accelerating the development process
in the Least Developed Countries for the 1990s. Drawing on the experience and
lessons from the 1980s, the Conference was able to agree on the strategies and
development priorities for those countries for the 1990s.
The outcome of the Conference was embodied in the
Paris Declaration and the Programme of Action for the Least Developed Countries
for the 1990s. In these documents, the international community committed itself
to urgent and effective action, based on the principle of shared responsibility
and strengthened partnership, to arrest and reverse the deterioration in the
socio-economic situation in the Least Developed Countries and to revitalize
their growth and development. The various elements of the Programme should be
viewed as an essential component of the overall strategy for economic and social
progress for the developing world. It represents a qualitative step forward
beyond the SNPA adopted in 1981 and contains many novel features. One notable
aspect concerning actions at the national level relates to the emphasis placed
on the need for development to be human-centred and broadly based. Other
elements highlighted in the Programme include respect for human rights and
observance of the rule of law, the need to improve and expand institutional
capabilities and efficiency, and the importance of decentralization,
democratization and transparency at all levels of decision-making.
The Programme sets out detailed policy provisions
for mobilizing and developing human capacities in the Least Developed Countries
as well as for the development of their economic base. On the key issue of
external financial support, the international community, particularly the
developed countries, collectively committed itself to a significant and
substantial increase in such support. The Programme provides for a set of
alternative targets, which maps out clearly the different undertakings made by
the donors in this regard.
The impact of UNCTAD's efforts
These results of UNCTAD's work that originally led
to the creation of the list of least developed countries has subsequently led to
an increasing awareness of the special needs of these countries. This awareness
has changed policies of countries and multilateral agencies in several important
ways. There has been a shift in the share of official assistance going to this
group of countries; several donor countries have not only provided an increasing
share of their assistance but have also under Board resolution 165 (S-IX)
"Debt and Development problems of developing countries" (1978)
cancelled the debt of, or taken other debt relief measures in favour of, these
countries. The shift has been particularly noticeable for major multilateral
organizations, which are now providing a major share of their assistance to the
least developed countries. This awareness has also led to a few innovations in
commercial policy measures on behalf of these countries. The creation of a
special sub-committee for least developed countries within GATT previously and
now within WTO should be noted, as should the WTO Plan of Action for the Least
Developed Countries. Trade preferences, including provisions in the Lomé
Conventions and within the generalized system of preferences (GSP), have also
resulted. The international community's growing awareness has also resulted in
the creation of special focal points for activities on behalf of least developed
countries within many organizations of the United Nations system, which in turn
have led to an increasing emphasis on them in both regular work programmes as
well as in technical co-operation activities.
The efforts of the 1960s, 1970s and 1980s have thus
led to the identification of a relatively small category of the very poorest and
structurally weakest countries and to the acceptance by the international
community that these least developed countries are deserving of special and
specific attention.
