LDCs need aid, trade and local capacity<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
If the world does not want to see 80 million people in 14 least
\ndeveloped countries in the Asia Pacific in poverty, special
\npoints on commitment, aid and trade must be addressed by the
\nglobal community.<\/p>\n
A working group discussing the progress of least developed,
\nlandlocked and small island developing countries in the current
\nministerial meeting on the Millennium Development Goals (MDGs)
\nhere on Wednesday emphasized the need for tripling official
\ndevelopment aid as well as strengthening the countries'
\ncommitment in enhancing the human capacity to achieve the goals.<\/p>\n
Currently, the official development aid for these countries
\namounted for US$4 billion, and they hope to have reached $12
\nbillion by 2006.<\/p>\n
The working group recommended that the development aid should
\nbe directed toward the financing of basic investments in physical
\ninfrastructure for least developed countries, as well as special
\nneeds in transportation and communications-related infrastructure
\nto provide better access to the landlocked developing countries
\nsuch as Bhutan and Nepal.<\/p>\n
Meanwhile, for small islands developing countries like the
\nMaldives and Timor Leste, development aid should be directed
\ntoward investments to reduce environmental vulnerability due to
\nnatural hazards and to preserve biodiversity.<\/p>\n
These least developed countries or countries with special
\nneeds generally face problems of isolation from major
\ninternational markets, prohibitive transit and transport costs,
\nas well as heavy dependence on transit services.<\/p>\n
In addition, they also have a problem of a small domestic
\nmarket due to small populations and find themselves relying on a
\nfew key export commodities, which are subject to international
\nmarket fluctuations, as well as vulnerability to natural
\ndisasters.<\/p>\n
All the above increase the transaction costs of doing business
\nin these countries, making it difficult for them to compete in
\nthe free trade environment, which leads to lower capacity to
\nfinance their own development.<\/p>\n
Director for the Millennium Project Jeffrey Sachs said that it
\nwas not trade that was the barrier for poor countries in
\neradicating poverty. \"Their problem is the supply limitation, no
\nresources and insufficient infrastructure,\" he said.<\/p>\n
UN Assistant Secretary-General Hafiz Pasha concurred and said,
\n\"These countries also need to reiterate commitments to
\ninstitutional change and progress, and signal to the
\ninternational community that they are serious about the task,
\nparticularly of delivery of basic services.\" (003)<\/p>\n
Recommendations to help least developed countries (LDCs)<\/p>\n
Recommendations of facilitating trade and market access for
\ncountries with special needs to achieve the MDGs
\n* At the national level
\n1. Mainstreaming trade into overall development plans
\n2. Undertaking social impact assessments of various trade
\nliberalization options
\n* At the international level
\n1. Granting duty and quota-free access for the countries' exports
\n2. Establishing preferential schemes for market access
\n3. Making more commercially meaningful commitments in terms of
\ntemporary movement of natural persons as well as cross-border
\nsupply of services such as outsourcing
\n4. Intensifying technical assistance for human resources
\n5. Increasing funds allocated to trade and supply-side responses
\n6. Strengthening global development partnerships by addressing
\nvolatilities in the financial and monetary systems
\n7. building regional economic cooperation in the development of
\neconomic infrastructure and trade liberalization and facilitation<\/p>\n
Recommendations on aid and debt relief
\n* At the national level
\n1. Ensuring good governance
\n2. Creating harmonization and coordination in making aid
\neffective
\n3. Strengthening domestic capacities for planning and project
\nimplementation, improve monitoring and evaluation, achieve
\ngreater decentralization of project implementation
\n* At the international level
\n1. Meeting the targets made in previous commitments for least
\ndeveloped, landlocked and small islands developing countries
\n(Brussels and Almaty Actions, as well as Mauritius strategy)
\n2. Taking steps for better coherence among donors in areas of
\npolicy conditionalities, official development assistance (ODA)
\npractices, trade regimes and technology transfers from donor
\ncountries
\n3. Continuing dialogs with recipient countries on grant
\ncomponents, tied purchases and financing of recurring costs to
\nimprove these areas
\n4. Introducing economies of scale by implementing regional
\nsolutions for smaller countries on issues that would be too
\ncostly to implement at the country level
\n5. Ensuring that the given assistance continue to address the
\nchanging needs of the recipient countries<\/p>\n
Source: Voices of the Least Developed Countries of Asia and the
\nPacific MDG report (UNESCAP and UNDP)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ldcs-need-aid-trade-and-local-capacity-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}