Republica
March 24, 2011
Secretary General of the United Nations Conference on Trade and Development (UNCTAD) Supachai Panichpakdi has urged the Least Developed Countries (LDCs) to mobilize their own resources to increase their trading capacity as donor countries are themselves embroiled in their own financial problems leading to a decline in aid to poor countries.
Panichpakdi was speaking at the concluding session of a three-day UNCTAD Regional Workshop on Productive Capacities, Economic Growth and Poverty Reduction in Asian and the Pacific LDCs jointly organized by UNCTAD and the government of Nepal.
“Some European Union (EU) countries are bogged down by debt crisis and the USA is also passing through around 9 percent unemployment in the aftermath of the global financial crisis. Given the declining aid to LDCs due to adverse condition of the donors themselves, LDCs have to develop themselves to help themselves utilizing their domestic resources,” he said. He expressed dissatisfaction at the growing trend among donor nations of not fulfilling their aid commitments to LDCs.
“Donors had made commitment for US$ 22 billion to deal with the food insecurity in LDCs, however only US$ 1 billion has been given by the EU. Donors are making commitments after commitments but they are not honoring their previous commitments for their pledges for the assistance of LDCs,” he further added.
However, the highlighted the potentialities that LDCs can reap by mobilization of domestic resources and huge remittance inflow, encouraging micro finances and cooperatives to boost domestic investment to lessen the dependence on external assistance. Illustrating the success stories of Rwanda, Ethiopia and Uganda in development governances despite long-running internal conflicts, he also urged the governments of LDCs to enhance their competitive edge to lead themselves to gradual self-dependence.
Speaking on the occasion, Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari called on the developed countries to increase their trade-related assistance at a time when LDCs are facing the adverse impact of global financial crisis, rising food prices and ballooning fuel prices.
“We need external assistance to enhance our capacity on trade as we are passing through limited internal resources, slow growth of remittance and rising food prices due to natural calamities and climate change,” said Adhiakari. Charles Gore, chief of the LDC Division in UNCTAD, urged LDCs to enhance agricultural investment, mobilize domestic resources and concentrate their national priority on finance, trade, technology, commodities and climate change issues.
