Yet another meet to make 'correct noises'?

By Batuk Gathani

BRUSSELS, MAY 14. Under the auspices of the United Nations, representatives of 49 Least Developed Countries (LDCs) have gathered in Brussels this week at the European Parliament to discuss ways and means to improve their trading and economic profile with the world's more prosperous regions. The five-day conference is hosted by the European Union which has recently agreed to phase out duty and quota free entry of all products, `except weapons' from the LDCs, but it remains a utopia. The U.N. International Trade Centre has also invited several entrepreneurs from poor countries to talk about their experiences of accessing the developed markets.

The 49 countries have a population of 630 millions or a tenth of global population - and half of them live on an income of less than a dollar a day. In the last quarter century, the list of such countries has grown from 25 to 49 and 34 of them are in sub- Saharan Africa region. The LDCs count for less than half per cent of the global trade and investment.

The cynical perception is that the Brussels conference like the two previous such conferences can at best be a mere `talking shop' but the more pragmatic view is that the debate could pave way for a meaningful trade and economic dialogue between the developed and the developing world.

This is the third U.N. conference on the LDCs. If results of the previous two such conferences are any criteria, lack of both will and ability to make any significant impact on the proceedings can be a major handicap. The LDCs have sent high- profile delegations while the developed world has sent junior functionaries.

The representative of the British `Oxfam' - international charity organisation - was today quoted saying: `` The danger is that this conference will become another high-cost, low-output U.N. talking shop.'' Mr. Ricupero, representative of the U.N. Conference on Trade and Development (UNCTAD), says the grand but unworkable declarations of the previous two conferences would be avoided this week in favour of `deliverables' - comprising specific projects to improve the economic profile of the poorest countries.

Amid bitter opposition from American textile and apparel industry, the U.S. authorities last year relaxed restrictions on imports from sub-Saharan African countries. It is argued that this strategy is not likely to make any significant impact. Because of corrupt administrations and bad governance, the LDCs have consistently failed to improve their economic infrastructure to pave way for investment in capital projects.

At the same time, rich countries have failed to live up to their earlier commitment to provide 0.2 per cent of their national income in aid to the LDCs and 0.7 per cent for all development assistance.

A majority of the LDCs are struggling with unsustainable external debt burdens. To compound the crises, the fast spreading disease of AIDS in recent years has reduced by 10 years the average life expectancy in some of the LDCs.

The more prosperous regions of the world have in the last two decades dramatically improved their economic profile and level of prosperity with unprecedented growth in trade and economic development. The E.U.'s much heralded initiative to liberalise trade with the LDCs under the banner of ``all items but arms'' has been drastically watered down, because of pressure from agricultural lobby groups. The E.U. policies are essentially based on self-interest rather than any trace of idealism.

The reality is that the developed countries are mainly motivated to help the poorer countries to develop greener pastures for their goods and services there.

If the current mood at the WTO headquarters in Geneva is any criterion, the U.S., Japan and the E.U. will not ``budge an inch'' from the ``substantial positions'' they took at Seattle. The E.U. politicians are more worried about the impact such liberal trade policies may have on their farmers who are often hardcore of their traditional votebanks.

Hence, the tendency is to make ``correct noises'' on trade liberalisation front and also to ensure that the real impact is minimal. The E.U. officials have argued that all developed countries provide special concessions to exports from the LDCs but nothing substantive has so far materialised.

The LDCs have not received the benefits of globalisation which have made a significant impact in other parts of the world. The truth is that their share of the global trade declined from 0.48 per cent to 0.4 per cent in 1999. Mr. Mike Moore, Director- General of the WTO writes: ``The problems facing Least Developed Countries are deep-rooted and trade alone will not lift them from poverty. Sound macroeconomic policies, solid infrastructure, debt relief and good governance are essential'' and states that at the Brussels conference, new initiatives may be identified.

Send this article to Friends by E-Mail

Section  : International
Previous : McVeigh issue evokes varied emotions