Summary
| Forty experts from least developed countries – the world’s 50 poorest nations – met to identify concerns that should be addressed as a priority at UNCTAD XII. |
The experts requested that UNCTAD strengthen its support to least developed countries seeking accession to the World Trade Organization. Such membership is considered important to protect these countries´ interests and provide opportunities for future economic growth. The experts also said there is an urgent need for least developed countries to diversify economically, because currently they are too dependent on commodities. Some 85 developing countries now rely on commodities for more than half their export earnings. For 70 of them, more than half of their exports consist of three or fewer commodities. Reliance on commodities is especially pronounced among LDCs.
The recent encouraging economic growth in least developed countries, driven by unusually high demand for commodities, should be translated into productive employment creation and poverty reduction, the experts said. In many cases, higher exports during the current boom have not resulted in widespread job growth or broad improvements in living standards.
Meeting participants urged steps to make it easier for domestic private businesses to be created, grow, find financing and obtain the knowledge and technology they need to be competitive. They said least developed countries should diversify the economic sectors that are most attractive to foreign direct investment; currently such investment is overly focused on extractive industries such as petroleum and mining. And they said more should be done to use remittances - money sent home by least developed country nationals working overseas - to spur domestic economies. These remittances are so substantial that in most cases they exceed foreign investment or official development assistance.
| Among the themes to be discussed at UNCTAD XII are global policies that can contribute to poverty reduction. |
