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Statement on LDC-III-Conference in Brussels

Mr. Chairman,

Dear friends,

Thank you for inviting me to participate in the opening session of this NGO Forum that will take place parallel to the formal LDC-conference. I'm glad to see that the civil society organizations are growing stronger and that there is a broad capacity to mobilize so much interest and debate around the UN-conferences. This is an important part of the substantial outcome of the conferences.

Civil society is one of the key pillars of development. Engagement of, and close co-operation with, civil society is essential to ensure the widest possible participation of all sectors of society to reduce poverty in all its forms, and for strengthening a culture of democracy.

The civil society actors have been crucial in the development co-operation. The NGOs have a practical, down to the earth approach, and good knowledge about the situation in the LDC's. You are important partners for us - the EU member states - and for our partner countries in our joint poverty reduction efforts. Let me underline how important it is to have a constant dialogue with the civil society actors in the poverty reduction strategy work.

This third UN Conference on the Least-Developed Countries held in Brussels May 14 - 20 is special. For the first time ever, EU is a host for a UN World Conference. This is as a sign of the commitment of the EU to LDC's. I hope that we through this conference can come closer to the overall goal of the conference; to facilitate the integration of LDC's in the world economy and in international trade as well as to promote economic growth in countries and well being among people.

We all know the figures:

• Approximately 10% of the population in the world lives in LDC's.
  
• The average per capita income per year is less than 765 USD.
  
• The share of the value of the export and import of the LDC's in the world amounts to only 0,5%.

Poverty in LDC's is widely spread. Only about half of the people have access to clean water, not more than 60 percent receive basic education. And the average life expectancy is approximately 55 years, compared to 65 in other developing countries in the South and over 75 years in many countries Europe.

In order to make poverty reduction and sustainable development possible, the World Bank has estimated that there is a need to have an annual growth in Africa of 6-8 percent. But conflicts and HIV/ AIDS reduce the growth with approximately two-percent each and are therefore major obstacles to development. Fifteen of the LDC's in Africa have experienced war or civil strife in the 1990's, aggravating their already fragile situation. Another obstacle to development is the foreign debt. 29 out of 49 LDC's continue to be heavily indebted, paying at an average some 90% of their GNP in dept service.

The great majority, around ¾ of the population in LDC's, lives from agriculture, often with an extreme low productivity. Therefore it is important to make investments and strengthen agriculture and rural development and development of local markets as a first step before an increase in food export production. Access to land, water, technology, markets and functioning, protection in rule of law, democratic institutions as well as possibilities to credits is crucial.

Manufacturing of food products, textiles and clothing represents some 2/3 of the value of all industrial production in LDC's. Trade, in particular foreign trade, is very small. On an average, LDC's exports of food to the industrialized world represent only 2% of all food-imports. While the 1980s was a very difficult decade for LDC's, the 1990s brought some improvement. However, foreign investments remained low - partly due to unstable conditions in LDC's, armed conflicts and lack of good governance.

* * *
LDC's receive a very limited - and decreasing portion of ODA. By the end of the 1990s, DAC members allocated only 0,05 % of their ODA to LDC's, far below the international target of 0,15% and the share of some 0.13% in 1990.

There are several things we must do:

- As a sign of international solidarity we must focus even more on the need to reduce and eradicate poverty among the poorest countries in the world. The international development objectives oblige us to do so.

- We have a common responsibility. There is a need for action both by the global community and the richer countries and by Governments in LDC's, mainly at the national level,

- We need to highlight disadvantages and constraints that are specific to the LDC's in nature, structure and extent in view of globalization processes, like debt burden and lack of market access,

- Apply a broad, holistic approach seeking synergies between the different political areas (development co-operation, trade, security, migration, agricultural policy, etc.) to promote comprehensive, coherent and consistent strategies and policies in the search for sustainable global development,

- Focus on good governance and make a comprehensive approach to human rights as universal and non-divisible a guiding principle. We need to meet the increased vulnerability with strengthening of democratic institutions for rule of law. This includes political and social rights as well as the right to development and the right to functioning institutions.

- Reaffirm the need to mainstream gender equality in all areas such as education, health, access to credit and land and freedom from violence;

* * *
In establishing a framework for our work, the Millennium declaration is pivotal with its emphasis on coherence agenda, building on the achievements of the major United Nations conferences and follow-up meetings (UNCTAD X, Cairo + 5, Beijing + 5, Copenhagen + 5, the Millennium Summit, Rio + 5, etc).

It is important to link the LDC process to other main international agendas, to integrate the Plan of Action better with the outcome of other UN World Conferences - and vice versa - in order to include the LDC's in the shaping an international framework.

It is also crucial for implementation to link the Plan of Action to related processes such as UNDAF and Country Assessment Strategies of the UN and with the Comprehensive Development Framework, the Poverty Eradication Strategy Papers and the HIPC initiative.

Of paramount importance is, of course, also the work of the World Trade Organization as well as the up-coming UN conference on financing for development.

* * *
In analyzing difficulties for the LDC's and in setting an agenda for action we must focus both on external and internal factors; the global context as well as the national situation. Global factors would be decisive for terms of trade, market access and preferences of private and public investors. We must make globalization work for all and to a tool in the poverty reduction efforts.

The discussion on globalization has to a large extent centered on trade and capital movements, but equally important are technological development, international exchange of culture, information and ideas, support for human rights, striving for democracy and the impact on the environment.

Globalization poses new challenges to international collaboration. The increased participation of developing countries in global exchanges and changes in national policy have led to a positive development in large parts of the world and better living conditions for many of the world's poor. However, we see also risks and problems today where the need for the changes and the challenges, posed by globalization, are hard to meet. Poverty itself, but - of course - also violent conflicts, mismanagement and vested interests are also obstacles for making globalization work for the poor.

Regional trade and regional integration can play an important role in strengthening economic growth and poverty reduction in the LDCs. Regional integration will enhance competitiveness and as such be an important step towards successful integration of the LDC countries into the wider world economy.

But we must not forget the national level, with far greater scope for governments to create an enabling environment for growth and development. Domestic policies are imperative for a country's possibilities to grow out of poverty. Economic growth is a necessary but not sufficient prerequisite for development. Crucial is, of course, the distribution of the economic growth. Governments have the main responsibility to ensure respect for human rights on a non-discriminatory basis, applicable for all, regardless of sex, age, income or ethnicity. And to seek to solve conflicts by peaceful means, to set the foundation for the well being of people.

Good governance in all its aspects and consistent, stable and suitable economic policies sets the basic framework for effective poverty reduction strategies and improves for the integration of LDCs into the global economy.

The importance the EU attaches to the non-state actors, like the civil society is based on the respect the fundamental principles of ownership, participation, dialogue and transparency in order to consolidate democratic and participatory structures. But since all the regions have different possibilities different methods and approaches must be used. It is therefore important that each LDC-country finds its own way to identify flexible openings for such dialogue and co-operation. And the representative and legitimate actors within the civil society also have a great responsibility to be constructive in the dialogue.

* * *
The EU has in the process leading up to this conference stressed its preparedness to assist in efforts to promote open international trade to enhance economic growth in LDC's and to integrate them into the world economy. For example the EU - both some member states and the Commission - has made strong significant increases in support to the ACP states.

I would particularly like to high-light the EU decision earlier this spring to provide duty free and quota free access for all products originating in LDC's - in the so called EBA- initiative (Everything but arms). The EU will also aim at increasing the affordability and accessibility of key pharmaceuticals to combat HIV/ AIDS, malaria and tuberculosis in LDC's.

EU will seek to promote international initiatives to enhance investments promotion in LDC's, enhance technical assistance and capacity building to help LDC's meet standards in export market, facilitate accession of LDC's to the WTO and consider specific measures for LDC's in the context of the WTO Implementation Work Programme.

It is essential to increase levels of ODA. I regret that ODA has decreased, but several countries in Europe - among them Sweden - have recently increased their ODA. But there is also a need to increase aid efficiency. The EU will continue to take action to improve aid effectiveness, by measures such as increased co-ordination and information sharing. The creation of the new Europe Aid Office is one step towards a more effective development co-operation.

A number of EU members are supporting LDC's in debt management and encouraging flows of direct foreign investment to the LDCs, trough various schemes. Action is also taken by a number of EU members to increase - sometimes very substantially, the level of ODA to LDC's, in line with agreed targets.

The decision of the OECD Development Assistance Committee on April 25 to untie aid to LDC's was groundbreaking. We should build on this to enhance our seriousness in the efforts to contribute to a considerable increase of the value of ODA.

The EU is also committed to continue to take action to assist those LDC's who have a heavy debt burden. Both the Commission and member countries are major supporters of debt relief measures to assist LDC's. The EU member states and the commission have provided the lion share of the funds to the Heavily Indebted Poor Countries and the Enhanced HIPC, with contributions of more than one billion Euro. Needless to say, the EU will during the decade covered by the Programme of action continue to play an active role in debt relief measures to benefit heavily indebted LDC's who commit themselves to poverty eradication.

Here in Brussels, the EU will also seek to obtain effective follow-up mechanisms that can promote system wide activities to assist LDC's, with more coordinated and coherent measures to be taken both within and outside the UN system, including the Bretton Woods institutions and the WTO.

* * *
At last I want to say the one crucial objective of the conference is to give impetus to positive progress in individual LDCs. It is vital that all actors, including civil society, to contribute to a broad based ownership for the development processes.

I can assure you that the EU will continue to work actively to secure value added results with the LDC III-process and continue to identify deliverables in the spirit of international solidarity, to live up to our responsibility to fellow citizens in the world community and a global neighborhood.

I hope that representatives of governments from North and South the coming week will respond positively to your invitations to different seminars and that they will listen what you have to say. I certainly will do that.

Thank you for inviting me, and good luck with the NGO Forum!

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