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Ahead of the Fourth United Nations Conference on the Least Developed Countries (LDCs) in Istanbul, Turkey from May 9 to 13, the 48 LDCs look to reduce their number in half by 2020 by seeking measures that would “bump” 24 countries off the UN's ‘least developed' category.
While only three of the 51 countries in total named to the LDC category by the UN's Development Policy Committee have moved out of this category – Botswana, Cape Verde and Maldives – there are key areas on which the LDCs are focussing their action.
According to the latest United Nations in Focus, five core areas are identified in which progress is essential. First is agriculture, second is engaging women's capabilities, third is better targeting of official development assistance (ODA), improving governance and fifth is making commodities pay off.
The last issue is indispensable because LDCs are rich in the hard (mineral) and soft (agricultural) commodities that are at a premium in today's global economy. Possession of these resources has not helped most of them to escape poverty traps in the past, the UN said adding that countries need to find ways that would bring the proceeds into play in terms of economic diversification.
It said if returns are more widely spread among populations, growing domestic markets would attract global investment into non-commodity sectors.
Meanwhile, a policy brief by the UN Conference on Trade & Development (Unctad) said growing development needs as well as the global crisis require a ‘trade' stimulus for the LDCs, particularly in their non-commodity trade.
It said they need a substantial spurt in their export revenue to maintain their current level of development and to build resilience against any future crises.
To provide such a trade spur, Unctad contends, the early conclusion of the Doha Round of WTO negotiations would be of interest to all countries.
To build trust among LDCs, an ‘early harvest' in specific areas (Dar-e-Salaam Declaration of trade ministers from LDCs in 2009) could be agreed at LDC IV in Turkey, Unctad said adding that the accelerated implementation of the duty-free quota-free (DFQF) market access promised to them would be crucial in strengthening the Global Partnership for Development between 2010 and 2015.
Other equally critical elements of an ‘early harvest' include, among others, a waiver to accelerate service exports from LDCs, the easing of the accession requirements for LDCs to join the WTO and an immediate resolution to the problem of trade-distorting cotton subsidies.
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