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Statement delivered by UNDP Nepal Country Director Shoko Noda on the occasion of the UNCTAD Regional Workshop on Productive Capacities, Economic Growth and Poverty Reduction in Asian and the Pacific Least Development Countries (LDC): en route to the UN LDC IV conference

March 22, 2011



Senior Government Officials,
Distinguished Guests,
Excellencies, Ladies and Gentlemen

Good morning and a warm welcome!

I feel privileged and honoured to be welcoming all the dignitaries and participants of this Regional UNCTAD Workshop on behalf of UNDP?this is my first event attended in Kathmandu in my capacity as the Country Director for UNDP Nepal, having assumed my duty only less than a week ago.
I would like to take this opportunity to thank the Government of Nepal, especially the Ministry of Commerce and UNCTAD for arranging this important and timely workshop.
As Nepal is currently the Chair of LDCs? a United Nations group of 49 under-developed nations? the role of the Chair is crucial in advancing the trade and development interests of all 49 LDCs by harmonizing their positions and representing their views and interests at global summits and conferences ? as well as in various intergovernmental meetings, consultations and negotiations. Hence this workshop is critically important to bring conclusive recommendations for the LDC IV Conference to be held in Istanbul, Turkey, in 2011 which will;

? Assess the results of the 10-year action plan for the Least Developed Countries (LDCs) adopted at the Third United Nations Conference on LDCs in Brussels, Belgium, in 2001 &
? Adopt new measures and strategies for the sustainable development of the LDCs into the next decade.


The UNCTAD?s Least developed Countries Reports have been providing an annual, comprehensive source of socio-economic analysis and data on the world?s most
impoverished countries; the 49 ?Least Developed? countries so-classified on the basis of low income, weak human capital and economic vulnerability. Across these 49 countries 80 percent of the population lives on less than $2 per day. Because of this reality, the UN and its Member States have repeatedly committed themselves to prioritizing the needs of the LDCs in our development efforts and to continue to do so effectively require;
? An in-depth understanding of the development process at work in these countries
? The medium and long-term trends underway (in the multilateral trading system, in the field of development financing and in the area of technical assistance)
? The different policy instruments that respond to the specific needs of different country contexts (for eg. for landlocked LDCs and small island developing states the challenge is remoteness from the international market. Their physical handicaps have further compounded the ability of these countries to produce and trade on the regional and international markets, thus, undermining their international competitiveness)
It is disheartening to see that while there has been progress on the MDGs at the global level, significant challenges remain in the LDCs. Poverty has not been reduced to the extent necessary to meet the targets in many countries. Poverty rate has not halved as targeted- the decline was from 60.4 to 53.4 per cent.
The number of people living in extreme poverty in the LDCs has continued to increase throughout the last 30 years, even during the period of economic boom. The LDCs are also off track to meet many MDG targets such as access to safe drinking water and sanitation facilities and reducing infant, child, and maternal mortality. Recent global crises (Food, Fuel, and Finance), the climate change and natural disaster factors as well as ongoing conflicts in many LDCs have made the challenge to reach the MDGs more complex. This raises serious concerns over the long-term economic crisis impact on the LDCs, given their inherent economic vulnerability and susceptibility to external shocks.

According to the UNCTAD, the value of exports from only very few LDCs increased from 2000 to 2008, but declined drastically in 2009. This sharp decline in export earnings is largely due to a decline in commodity prices and is associated with declining government revenues and investment. Remittances to developing countries also decreased in 2009.
Even though the area to be covered for countries to graduate out of LDC status is broad, I would like to highlight some key points that I feel that the discussants should keep in mind during this important workshop;

? The LDCs should aspire to a kind of good governance which harnesses the principles of participation, fairness, accountability, transparency and efficiency in a non culturally specific way? which delivers developmental outcomes such as growth in the per capita income, expansion in employment opportunities in line with the increasing labour force and reducing poverty.
? The LDC economies need to improve agricultural productivity and diversify their economies to create non-agricultural employment opportunities and generate inter-sectoral linkages.
? The resource allocation should be targeted towards women, socially excluded people and those participating in the informal sector ? who are important determinants of growth leading to poverty reduction and human development.
? The LDCs should increasingly rely on domestic resource mobilization to finance their economic growth, lessen their dependence on aid and attract private capital inflows.
? The rules that govern international relationships with regard to trade, finance, investment and technology flows must be designed in ways that support development in the LDCs.
? The Government should formulate suitable policies and create an enabling environment for the private sector to come forward.



Having said this I would like to stress that the Governments have to make right policy choices to place their countries on track to faster and more equitable growth. The donors must play in supporting the countries in these efforts. We need a much greater sense of urgency amongst all those responsible to get our countries out of it. Only effective economic policies that create employment, increase agricultural productivity and reduce dependence on commodities can ensure that growth ? when it comes - will translate into poverty reduction.
Finally I would like to reiterate;
UNDP will continue to provide support to the LDCs and in Nepal we have been providing support in specific development areas at both the Macro and Micro level such as, strengthening governance institutions, building capacities of the Government and other stakeholders, increasing income through skills development and generating employment; protecting Nepal?s development gains from the ill-effects of natural disasters and climate change and developing as inclusive development programmes as possible covering most remote and marginalized areas.
I once again wish all the delegates a very warm welcome and a successful deliberation that will set a milestone to the IVth Conference as well as all the undertakings of the LDCs for the next ten years.

Thank you!