aitic + cuts

AITIC + CUTS

Preparing for UN – LDC IVLDCs: Trade and Development Challenges

May 18, 2010“Reflections on Ways of Responding to LDCs Challenges: Overview”

H. E. Dr Mothae A Maruping Mission of the Kingdom of Lesotho

04/21/23 1DR Mothae A Maruping - Lesotho

BPOASUCCESS OR FAILURE

BPOA MIXED BAG: SOME PROGRESS IN LDCs, MORE IN SOME THAN IN OTHERS

ONLY 3 LDCs GRADUATING ( CAPE VERDE, SAMOA, MALDIVES)

SO NOT EFFECTIVE ENOUGH TO BEAR CONVINCING RESULTS

NOT FULLY IMPLEMENTED (DOSAGE, TIMING, SEQUENCING)

NO RIGOROUS MONITORING AND EVALUATION MECHANISM


BACKGROUND: SERIES OF CRISESIN LDCs: CHALLENGES

• UNSUSTAINABLE LEVELS OF DEBT• COMMODITIES PRICES• FOOD PRICES • ENERGY PRICES• GLOBAL FINANCIAL & ECONOMIC CRISES• CLIMATE CHANGE IMPLICATIONS


SERIES OF CRISES:THEIR CONSEQUENCES

• ODA Levels Jeopardised• FDI Flows (slowed or halted or reversed)• Remittances flows declined• Net Export Revenues dropped• Domestically mobilised resources declined


SERIES OF CRISES:FURTHER CONSEQUENCES

• Increased bankruptcies• Worsening external current account• Jeopardised External Reserves• Public Revenue base strained• Intensified threat of rising fiscal deficits• Looming danger of relapse into unsustainable

levels of debt


SERIES OF CRISES:IMPLICATIONS OF THOSE CONSEQUENCES

• Rising unemployment• Spreading and deepening poverty• Compromising of social safety nets• Unmet or partially met commitments by

development partners• Slowed pace and frustrated efforts towards

achievement of MDGs


UN LDCs IV:TACKLING ENORMOUS CHALLENGES AHEAD

WHAT IS REQUIRED:o Solid Programme with specificso Ownership by LDCso Firm Commitmentso Genuine Team-work and working partnershipso Recognition & accommodation of differenceso Prioritisation (not everything about everything)


PROCESS:GENUINE OWNERSHIP OF THE PROGRAMME

Genuine consultation of stakeholders:• Thorough consultation of the stakeholders• Process must be inclusive and participatory (relevant arms of

government, private sector and civil society)• Process must be transparent

REAL LDCs OWNERSHIP AND NOT PRETENCE


PROCESS:TEAM WORK AND PARTNERSHIPS

In assisting LDCs in the Process Agencies should assume true team-work and refrain from usual competition:

• Politically correct: Profession of collaboration – e.g. clusters

• Reality: Competition

• Desirable: Complementarity – synergies (adhere to TORs)Working Partnerships would yield convincing programme(LDCs, Developing and Developed Partner Countries and

Agencies)


PROCESS:SEQUENCING

• Technical work must precede political work in order to lay strong foundation

• There has been a tendency to rush to the political level before thorough technical work

[ e.g. Satisfactory review of BPOA and mapping of way forward]


PROCESS:COORDINATION

• Need for Co-ordination within LDCs among Working Groups Capital based New York based Geneva based Groups where other major international

organisations are located


CONTENT:PRIORITISATION

THE PROGRAMME SHOULD NOT TRY TO BE EVERYTHING AND ABOUT EVERYTHING

PRIORITISATION OF CRITICAL AREAS SHOULD YIELD BETTER RESULTS THAN BPOA


CONTENT:SPECIFICS

PROGRAMME SHOULD BE SUFFICIENTLY SPECIFIC (AVOID GENERALITIES):

PERHAPS THERE COULD BE:• OUTCOME DOCUMENT (ISTANBULL);• DOCUMENTS SPECIFYING STRATEGIES AND PROGRAMME OF

ACTION • PROGRAMME OF ACTION SHOULD SPELL OUT CONCRETELY: WHAT? HOW? BY WHOM? WITH WHAT? WHEN? WHY? AND INCLUDE RISK ANALYSIS


CONTENT:DIFFERENT FEATURES OF LDCs

LDCs ECONOMIES DIFFER: Programme should accommodate uniqueness:

• Anatomy (i.e. structure)• Physiology (i.e. functioning)• History (historical experiences)Some are: Post conflict but resource endowed Size of the population Already more advanced relatively than others and are growing at

different rates Landlocked

AMPLE POLICY SPACE IS NEEDED


CONTENT:CRITERIA AND TIME FRAME

• Classification criteria: could be revisited

• Timeframe of the Programme: could be reconsidered

Should it continue to be 10 years (5yrs x 2) Or 12 years (4years x 3) with thorough review every 4 years


CONTENT:MONITORING AND EVALUATION

TO BE MEANINGFUL THE NEW PROGRAMME SHOULD CONTAIN:

CLEAR ACCOUNTABILITY FRAMEWORK

MONITORING AND EVALUATION MECHANISM


IMPLEMENTATION:WORKING PARTNERSHIPS

WORKING PARTNERSHIPS SUCH AS THAT OF EIF ARE ESSENTIAL:

LDCsDEVELOPED AND DEVELOPING COUNTRIES AS

LDCs DEVELOPMENT PARTNERSAGENCIESWITHIN LDCs: • Government• Private Sector• Civil Society


IMPLEMENTATION:LEVEL OF COMMITMENT

ALL PLAYERS SHOULD BE MORE COMMITTED THAN UNDER BPOA:

THIS IS MANIFESTED BY FAITHFUL FULFILLMENT OF PROMISES AND REALISATION OF PLEDGES MADE BY ALL PARTNERS RIGHT THROUGH THE PROGRAMME


IMPLEMENTATION:FACTORS TO PAY ATTENTION TO

THE NEW PROGRAMME SHOULD PAY ATTENTION TO:

GENDER

YOUTH

ENVIRONMENT


FINANCING OF THE PROGRAMME• ODA – ADDITIONAL AND HIGH QUALITY (SEPARATE

FROM AFT AND EIF FOR LDCs) MINIMAL CONDITIONALITIES

• FDI – CREATE NECESSARY CONDITIONS• REMITTANCES – FACILITATE MODE IV• MOBILISATION OF DOMESTIC RESOURCES• DEBT RELIEF• SPECIAL PACKAGES BY GLOBAL AND REGIONAL

DEVELOPMENT FINANCE INSTITUTIONS (WITH MINIMAL CONDITIONALITIES)

• PRUDENT FISCAL, MONETARY & EXCHANGE RATE POLICIES


TRADE:LOCOMOTIVE OF ECONOMIC GROWTH

GRANT WHAT LDCs REQUEST UNDER DDA (S & D):o DFQF MAo ROOso NTBso DELAYED PREFERENCE EROSIONo TFo SERVICES WAIVERo ACCESSION (FOR THOSE LDCs STILL IN THE PROCESS)


PRODUCTIVE CAPACITIESIN ORDER TO TRADE THERE HAS TO BE PRODUCTION (THAT TO

BE TRADED HAS TO BE PRODUCED): DEVELOP ENABLING ENVIRONMENT:• EFFECTIVE STATE INSTITUTIONS• GOOD GOVENANCE AND RULE OF LAW• PHYSICAL, INSTITUTIONAL AND SOCIAL INFRASTRUCTURE TECHNOLOGY DEVELOPMENT AND TRANSFER UNIDO’s COMPETE, COMPLY, CONNECT (CCC)• SMEs DEVELOPMENT• PPPs• DIVERSIFICATION ( FOR CUSHIONING & RESILIENCE)• VALUE CHAINS • ETC,


STRATEGIES FOR VIABILITY

• REGIONAL INTEGRATION

• SOUTH-SOUTH COOPERATION TO SUPPLEMENT NORTH – SOUTH COOPERATION


THANK YOU FOR YOUR KIND ATTENTION


aitic + cuts

Documents