Board´s 52nd session to focus on lessons from 1990s, globalization challenges, development in Africa, problems of poorest nations, assistance to Palestinians
The Trade and Development Board, UNCTAD´s governing body, opens a two-week annual session today buoyed by signs of economic recovery in the world´s poorer regions but also challenged by the task of transforming this economic improvement into broad-based and long-term economic growth, particularly where it is based on demand for raw materials, and against a backdrop of persistent global imbalances which could still generate obstacles to sustained growth.
The prevailing situation -- as summarized in UNCTAD´s flagship publication, the Trade and Development Report 2005 (UNCTAD/TDR/2005) -- is marked by rising imbalances among the industrialized countries, with slow growth in the European Union (EU) and Japan, and the emergence of East and South Asia as a new growth pole of the world economy. Rapid growth, particularly in India and China, has raised import demand, especially for oil and industrial raw materials, which has contributed to stronger growth in many other developing countries and to better terms of trade in Africa and Latin America. However, even a growth rate for sub-Saharan Africa of the order of 4.4% will be insufficient for reaching the Millennium Development Goals in that region. Recent progress in developing countries´ overall growth performance could be jeopardized by the existing global trade imbalances, a smooth correction of which requires a well-coordinated multilateral approach. Moreover, high oil prices are overshadowing the outlook for many developing countries that have become more energy-dependent as a result of industrialization and urbanization. The Report will serve as the basis for a day-long discussion 4 October on "Interdependence and global economic issues from a trade and development perspective: New features of global interdependence".
The session´s annual "high-level segment," scheduled for the afternoon of 3 October in which government ministers of trade, finance and foreign affairs will participate, will also examine the relationship between economic growth and poverty reduction by focusing on the lessons from the 1990s. A report entitled "Growth and development in the 1990s: Lessons from an enigmatic decade" (TD/B/52/7) will set the background for the discussion. The report describes a decade of disparate growth and development experiences among poorer countries and contends that formulaic, one-size-fits-all development strategies should be replaced by plans tailored to the situations of specific developing countries. It notes that the few that made steady economic progress during the decade used an array of policy options to carefully manage their participation in the global economy and to ensure that much of the value added from increased trade stayed at home. Such countries applied a range of measures to encourage strong capital formation, expand domestic markets and support technological upgrading. The report also contends that while an accelerating pace of economic interdependence has added to the development challenge facing most poorer countries, "the record of uneven development, persistent levels of indebtedness and financial crises in the 1990s . . . suggests that current global arrangements are not delivering the financial resources and monetary stability needed to sustain expansion of employment and output in developing countries." Speakers will be Alan Kyerematen, Minister of Trade and Industry of Ghana, Leiv Lunde, Vice-Minister for International Development of Norway, and Arturo O´Connell, member of the Board of the Central Bank of Argentina.
As in previous years, the Trade and Development Board, or TDB, will take up agenda items on least developed countries (LDCs), Africa, and the economic status of the Palestinian people.
A day-long review of the Programme of Action for the Least Developed Countries for the Decade 2001-2010 will be held on 5 October, along with a debate on an emerging problem: the recent decline in preferential market access offered to such countries by developed nations. As a background note stipulates (TD/B/52/4), these preferences have had major positive effects for several LDCs, leading to job creation, increased foreign direct investment (FDI), and reductions in poverty. UNCTAD and the world´s poorer countries are concerned by the trend towards elimination of the preferences. Serving as a basis for the discussion of UNCTAD´s work to aid LDCs will be progress report TD/B/52/3.
In considering the state of affairs in Africa, where the majority of LDCs are located, the Trade and Development Board will spend 10 October debating "Economic development in Africa: The role of foreign direct investment in growth and development". An overview of a report on FDI in Africa (TD/B/52/5) will be available in conjunction with the full study, contained in document UNCTAD/GDS/AFRICA/2005/1. These documents note that in recent years, attracting FDI has assumed a prominent place in economic development strategies as a key to financing development in African countries without increasing their indebtedness. In addition, expectations have risen that by creating jobs, transferring new technologies and building linkages with the rest of the economy, FDI will directly address the continent´s poverty challenge. Thus, policy reforms aimed at improving the investment climate in African countries have increasingly been centred on attracting FDI. These reforms have not, in most circumstances, had the desired results either in increasing FDI flows in productive sectors or in ensuring more rapid growth and poverty reduction. The report proceeds from the need to take a more critical approach to evaluating the size, quality and impact of FDI in African countries.
The TDB´s annual consideration of UNCTAD assistance to Palestine will be based on a report (TD/B/52/2) that reviews recent economic developments, summarizes the mounting damage caused by five years of crisis in the region, and proposes a "pro-poor development policy framework" that could lay the groundwork for a viable economy when Palestinians achieve formal statehood.
Other matters to be taken up by the TDB include a review of UNCTAD technical cooperation activities (based on report TD/B/52/WP/181 and Adds. 1 and 2); an investment policy review of Kenya (document UNCTAD/ITE/IPC/2005/8), which will include a discussion with the team that carried out the review; a survey of developments and issues of particular concern to developing countries related to the "post-Doha" work programme of the World Trade Organization (TD/B/52/8); and discussion of UNCTAD´s contribution to the implementation of, and follow-up to, major United Nations conferences and summits (TD/B/52/6). Of particular concern in relation to this last subject is the status of the Millennium Development Goals on reduction of poverty and improvement of living and educational standards around the world. The UNCTAD Trade and Development Report notes that even with recent encouraging economic growth in Africa and other regions, not enough progress is being made to meet several of the main targets set by the Millennium Development Goals.
The TDB will also hold discussions on progressive developments in laws relating to international trade (A/60/17) and on joint work by UNCTAD, the International Trade Centre and the World Trade Organization.
The annual session open´s this morning with a keynote address by UNCTAD Secretary-General Dr. Supachai Panitchpakdi, who assumed office on 1 September.
Meetings of the TDB will be held in room XXVI and will run from 10 a.m.-1 p.m. and 3-6 p.m. Delegates of the TDB consist of government representatives of UNCTAD´s 191 member countries.
Ransford Smith (Jamaica) was elected President of the Board for the coming year. He replaces outgoing president Mary Whelan (Ireland).
