UNITED
NATIONS
Distr.
GENERAL
GENERAL
A/C01IF. 104/6
17 July 19G1
ASSEMBLY
Original:
UNITED NATIONS CONFERENCE ON TIIE LEAST DEVELOPED COUNTRIES
Paris, 1 September 1931
REPORTS OF TEE ESVIiirJ HESTBTGS .K)R rMi^ I.HA3T DEVELOPED
COUNTRIES OF CIOUOESRN AHIICA, GUIS^A-BISSAU AND lifilTI
hold at the Palais des Nations, Geneva,
from 22 to 26 Jiane 1921
GE.01-54211
ENGLISH
A/CONF.104/6
page
ii
CONTENTS'
Introduction by the Confei^ence secretariat
-i "
Reports of the review meetings for:
I.
II.
III.
IV.
V.
Botswana
2
Guinea-Bissau
j
Haiti
]5
Lesotho
21
Malawi
28
Appendix
Notification of the meetings and list of countries and organizations invited to
each of them
A/C0ITF.104/S
iii
Abbreviations
FAO
Food and Agriculture Organization of the United Nations
IDA
International Development Association
IFAD
International Fund for Agricultural Development
ILO
International Labour Organisation
IMCO
Inter-Governmental Ilaritimo Consultative Organisation
IMF
International Monetary Fund
ITU
International Telecommunication Union
OAU
Organization of African Unity
OECD
Organisation for Economic Co-operation and Development
UNCDF
United Nations Capital Development Fund
UNDP
United Nations Development Programme
UNCTAD
United Nations Conference on Trade and Development
UREP
United Nations lirvironment.. Programme
UNESCO
United Nations Educational, Scientific and Cultural Organisation
UNICEF
United Nations Children's Fund
UNIDO
United Nations Industrial Development Organ izati or.
UNITAR
United Nations Institute for Training and Research
WHO
Vorld Health Organization
A/COUF.104/6
■pafce
iv
INTRODUCTION BY TIE CQlTi
1.
As part of the. preparations
Developed Countries,
countries
for the United nations Conference
of southern Africa,
Guinea-Bissau and Haiti
took place
Falais des Nations, Geneva, during tho period 22 to 26 Juno 19G1.
covered "by these
2.
on the Least
individual review meetings for the three least developed
reviews were Betcwana,
These review meetings wore
Guinea-Bissau,
Haiti,
the
Tho countries
Lesotho and Ilalavi.
convened by the Secretary-General
United iTations Conference on the Least Developed Countries,
at
of the
in accordance with
resolution 3 (i) adopted by the Preparatory Committee for the Conference, at itc
first session in February 1SCO,
and wibh tho
conclusions and. recommendations adopted
^oy it at its sc-cond session in October 1^30 and endorsed oy the General Assembly in
its resolution 35/205 of 16 December 1>GO.
J,
At the
inaugural meeting of this
the representatives
lir.
Gamini Corea,
series
of review meetings s which was
of countries and organisations
Secretary-General ox the
open to
invited to participate,
Conference, made a statement.
Hn
said
that the principal objectives of the in3ctings wore- to give greater specificity to
the prograjrciea of tho least developed 3ounti?ioE concerned, to enhance the understanding
of their situation and to hear the reactions of their partners in- development.
He
described the difficulties confronting the least developed countries and the handicaps
from which
they suffered.
Not only wrec
those countries exposed to hardships
varying degrees by reason of their cli;iates
in
geographical situation or other
circumstances, but in addition the international economic situation had caused them
to lag behind other developing counters;
their import, bills hud increased, the
purchasing power of their export earnings ^e-r capita had declined, their GDP had
diminished and their agricultural outrn.it wa^ insufficient to keep pace with the
growth of the population.
Because.of the fragility and vulnerability of their
economies those countries needed the support of the international community, and he
expressed the hope that at tho Paris Conference a broad concensus could bo found on
the nature of thj measures to be taken in c^rdor to give oc:-.c:-ote chape to that support.
4.
In the course of his statement lir. Coroa. referred to the financial contributions
made by tho Governments of Canada, Kuu&it and Saudi Arabia to the travelling and ether
expenses incurrod by representatives ox least cevelopcd countries in ccming to Geneva
to participate in thiri jcrios of review meeting.:.
He also referred to the
contribution by jvitserlanti. imich had net the cr-ct of technical assistance to
Guinea-Bissau in preparinr; its
5.
country papcv-.
A statement was naco by the representative of the Economic Commission for Africa,
who referred to the conditions affecting tho economies of the least developed,
countries in the African region and, rrore specifically, these in southern Africa.
6.
I^ach country review mooting was atter.dod by representatives of countries and
international organizations ai-ion^; those which had boon invited to participate by
the Government
of tlio least dove 1 cried
country concerned.
1/
1/ Particulars of attendance are ^iven in the annexes to each of the reports.
For the te::t of the notification convenint: tho rcviev.' meetings and listing the
countries and intornational or;"^riizaticj:is invited Ay~ each ^ieetin^;, see tne appandir
to this document.
The final lir't of tho participant,; in tho review meeting will
bo issued in document IJ)C/rdi.4/^;-^''>l*
A/coinr. 104/6
7.
the
l-Ir.
Philippe
de
review moetings
Series,
Director
of the Project of the Future, UHITAR,
for Botswana and Guinea-Bissau,
I jr.
Carlos Vegega,
chaired
Deputy
Administrator and Director, Regional Bureau for Latin Ar?ric\t TJI^TDP9 chaired the
review meeting for Haiti.
lie, Jan Pronr, Deputy Secretary-General of ulTCTAD,
chaired the
8.
review meeting
for Lesotho
and M
Uach review meeting considered a country presentation which
assessment
of development potentials,
priorities,
assistance requirements,
bottlenecks,
included an
development objectives
end projects and programmes.
This
and
document
(available in the original) was presented by tho Government of the country concerned
and introduced by the head of its delegation at the
outset
of the meeting.
9.
A report on the proceedings of each review meeting, comprising a summary of
the introductory statement by the iicad of delegation of the least developed country,
the subsequent exchange of views among participants and the conclusions drairn
therefrom, was adopted by the participants for submission to the United nations
Conference on the Least Developed Countries.
Those reports arc reproduced in the
present document.
Similar reports have been circulated on the review meetings
for
the least developed countries of Asia and the Pacific (Vienna, 30 Harch to
10 April 1981) in document A/CCiir.104/3, for those of eastern Africa (Addis Ababa,
A to 15 I Jay 19ol) in document A/COiIP.104/4, D>n& for those- of western and central
Africa and for Somalia (Hie Hague, 25 Iiay to 5 Juno 19Gl) in document A/COIIF.IO4/5.
10.
A closing mooting was held on 26 June ±931, which was open to the representatives
of all countries and organisations invited to participate in this series of review
meetings.
Statements were rcado on that occasion by the head of the delegation of
Guinea-Bissau, speaking o.lso on behalf of the least developed countries whose
presentations had been reviewed in the course of the round of meetings held at
Geneva, who thanked the Governments whoso financial contributions had facilitated
the attendance of representatives of those countries at the meetings and who
expressed appreciation for the frank and cordial dialogue which had taken place;
by the head of tho delegation of Haiti, who voiced similar so-tinc-nts:,
and by the
representative
of Venezuela,
speaking also
on behalf of the states members
of the
Group cf ?7 represented at the meetings, who stated that the spirit of solidarity
of the Group of 77 with the least developed countries conformed to the decisions
adopted at the conferences of Arusha arid Iloxico City and ?,t the more recent
11.
Vir, Gamini Corea, Secretary-General of the Conference, in a closing statement
drew attention to the novel character of the series of review meetings (of which
the Geneva meetings wero the last) as part of the preparations for a United Hations
conference.
He paid tribute to the quality of the documentary material submitted
by the least developed countries, which contained a wealth of fresh information,
and to the good atmosphere that had prevailed during the dialogue between these
countries and their partners in development.
He expressed the hope that the fruits
of the endeavours to which the review meetings bore witness would materialize at
the Paris Conference.
12.
in conclusion, he expressed his thanks to the Governments of Canada, Kuwait,
Saudi Arabia and Switzerland for their support for the present scries of meetings.
He reiterated his thanks to the Government of Austria for its support for the meetings
in Vienna, to the Government:; of Sweden and Finland for their support in connection
with those hold in Addis Ababa, and to tho Government :>f the ITcthorlands in connection
with the meetings hold at The Hague.
He further oppressed his gratitude to the
organisations and bodies of tho United Nations system, including the specialized
agencies and regional commissions, which had provided valuable inputs into the series
of review meetings.
Lastly, he thanked the eminent -oeortle who had chaired the
a/colif. 104/6
page
.
1.
As part
of
I.
1
REPORT OF THE REVIEW I-EKFIIIG FOR BOTSWAM \j
-he
preparation for the
■ nited
Nations
Con.'jrence
on the
Least Developed Countries, and in accordaJice with resolution 5 (l) adopted in
February
I98O by the Preparatory
as well as with the
Committee
conclusions and
for the
Conference
recommendations adopted
at its first
at its
second
in October 19S0 (A/CONF.IO4/PC/9 2/, chap. Il), which were endorsed by the
General Assembly in resolution 35/205 of 16 December 1980,
the Republic of Botswana took place
22 and
25 June
19S1.
chaired hy Mr.
Director, Project of the Future, LITITAPl.
The countries and
listed
2.
the review meeting1 for
at the Palais des Nations,
The meeting was
Geneva,
on
Philippe de Seynes,
The report was adopted on 25 June 1901.
international organizations that participated
in the meeting are
in the annex.
The main document
considered was
the
report prepared by the Government
review meeting (country presentation of Botswana, LDC/CP/23).
available in the original language (English))
by the
secretariat
(A/C0NF.10A/SP/2S).
3.
session,
session
of the
Conference was
for the
The report \ia,&
a summary of the report prepared
circulated
in Arabic,
English and
French
The preparation of the country programme and itfj presentation to the review
meeting were
a major step in the pro-conference activities.
4.
In his introductory address, the head of the Botswana delegation,
Mr. L. Mothibatsela, Chief Economist at the Ministry of Finance and Development
Planning1, called attention to the report prepared by his Government in response to
the request
of the Secretary-General of the United Uations
Least Developed
Countries,
which highlighted
and policy for Botswana over the period
1979-19G5*
as well as some of the salient points of the
in paragraphs
5
Conference on the
the development
objectives,
strategy
The main points of his address,
country presentation,
are
summarized
to 10 below.
5.
Mr. Mothibacsela noted that the country reports prepared by the least developed
countries formed a major part of the preparations for the United Nations Conference
on the Least Developed Countries,
whose main objective,
according" to General Assembly
resolution 34/205? was to take into full account the special and pressing problems
which these
Third
6.
United
countries
Nations
faced
in the formulation of a strategy for the
Development
Decade.
The current population of Botswana was estimated at 884,000 persons, of whom
about one-half were under the age of 15 years.
Three-fifths of the country's labour
force (i.e. about 250,000 persons) depended mainly on subsistence agriculture and on
informal non-monetary activities for a livelihood,
Botswana's
was very large
export
1/
and
an important source of income
and
cattle population-
earnings.
In recent
Original English.
2/
See also Official Records of the General Assembly, Thirty-fifth session,
Supplement No. 45 (A/35/45)* Part Two.
a/cow. 104/6
pa-go
2
years, the fastest growing area of economic activity had teen the mining- sector;
in the ten years from 19&7/63 to 1977/73? mining1 and quarrying1 had increased its
share of GDP from 1.6 per cent to I4.;1 per cent.
7.
He said that the economy of Botswana was particularly vulnerable because the
country was land-locked and heavily dependent on South Africa $
about 35 per cent
of imports were furnished by South Africa, and almost the whole of Botswana's exports
of meat and metals flowed through thai; country.
South Africa provided the food that
Botswana needed to supplement its own output, amounting to about one-third of
domestic consumption, and in time of drought grains furnished under the
World
Food Programme to prevent
South African ports.
starvation also had
This dependence had
political future of the region as a whole,
for Botswana's security,
8.
Mr,
Mothibatsela pointed
the objectives,
the
since
considerable uncertainty
his Government's presentation was based
same as
on
guided
On the whole,
Botswana
in its
the
struggle
In preparing the report,
therefore beeoi simply to indicate the extent of the
resource gap that existed in the
presenting a document
1979 to 1935•
those which had
the early days of independence.
the Government's aim had
chosen to
which posed
which covered the period
remained
for development
Plan.
thai
through
strategy and policies outlined in Botswana's Fifth National
Development Plan,
principles
out
to be supplied
to be seen in the light of the unsettled■
current National Development Plan.
covering the whole decade of the 1930s,
focus attention on the implementation of the
Rather than
the Government had
current National Development
This Plan represented a balanced development programme,
prepared
after a
lengthy process of consultation at all levels of Botswana society.
9.
The projects listed
in Botswana's report had been extracted
National Development Plan and represer.ted
still unfunded when the report was being finished
the projects
included
in the
a large portion,
programme,
The
estimated
to
total cost of
be Pula 20J
Although some projects had now been funded,
including some of the most
remained
in February.
development programme was
million (approximately f^260 million).
from the
that portion of the Plan which had been
critical
sections
of the development
to be financed.
10.
He stated that it was his Government's strong* belief that the responsibility
for alleviating poverty and providing at least the minimum internationally
acceptable
standard
themselves.
of living in Botswana must
Nevertheless,
it was
cle^ar that,
Botswana did not possess all of the
task.
Botswana must
continue to
support1of the
international
community.
11.
The meeting commended
particular the
the very- high quality of the
emphasis on the rural
out in the
sector,
and the provision of social services, were
the
to achieve
supplement its
The ■development objectives set
country report was also commended,
economy within its present constraints.
this development
efforts with the friendly
country presentation of
country report,
water resources
in
and mineral development,
considered pertinent.
as was
of Botswana
as a young developing country,
resources required
Hence,
Botswana.
rest with the people
The realism of
the success of Botawana in managing its
The head of the delegation explained that
the investment programme in the report did net go beyond 19S4-1935 since the projects
A/C01IP. IO4/6
page 3
were extracted
from the National Development Plan, and the Flan was the "best estimate
of the country's absorptive capacity, . Inadequate data and other difficulties of
forecasting- requirements accounted for the
adoption of a five-year planning horizon.
Several of Botswana's partners in ■development noted
that their existing- aid
programmes were in full accord with the priorities in the report.
12.
The question was asked why the forecast growth rate had fluctuated no
significantly in certain years.
The head of the delegation stated that the
f]_uctuations in growth rates, which had also occurred in the past? reflected the
snail size of the Botswana economy and the impact of relatively large mining
development.
13.
While recognizing" the successful economic growth of Botswana, several
representatives asked whether the benefits had spread to the mass of the rural,
population.
The desirability of planning no that the benefits could reach
specific groups rather than relying on a "trickle-down" approach was mentioned.
The head of the delegation of Botswana stated that rural development was a maj,or
objective of the National Development Plan.
In urban areas an economic fee was
charged for services, in contrast to the complete subsidy afforded to services in
rural areas.
He explained the difficulty of recruiting enough nationals with skills
and education tc provide the managerial skills in the necessarily labour-intensive
rural development prefects.
Botswana had used the Brigades -- a youth organization
for training in vocational and technical skills - as one approach to solving1 the
middle-level skill shortage, and vocational training facilities needed to be
expanded.
?or micro-project aid to have an Impact at the grass-roots level, quick
disbursement at the initiative of the local representative was essential to capitalize
on the Immediate interests of the local community.
A further difficulty in
promoting rural development highlighted by the head of the delegation was tne
physical area ox Botswana, which was so huge that there appeared to be little
visible impact from thinly spread development expenditure.
The Government
was attempting to Identify growth points in rural areas for further investment.
He would welcome any suggestions by donors to make development expenditure for
rural development more effective,
14.
One representative asked how the expected revenues accruing to Botswana from
the mineral development at Jwaneng would affect Its least developed country status
and the situation regarding reimbursable aid.
The head of the delegation replied
that, if the forecast diamond prices were realized, the revenue earned would be
significant and should enable Botswana tc shoulder more responsibility for financingits development programme.
Botswana had financed all of its recurrent expenditure
since 1972 arad approximately half of its development expenditure in the last
financial year,
Nevertheless the economy? based on mining- and cattle, vras still
fragile.
The rate of growth of recurrent expenditures compared
to development
expenditures In the 1979-1^5 budget projections was referred to by one
representative, in the context of the declining share of the development "budget in
total government expendituresThe Botswana delegation attributed this phenomenon
in general to the recurrent cost burden of past development expenditures.
The
delegation also pointed out that the data presented in table 11, page 25, of the
country programme were to some extent cut of date, jjy
2/
LDC/CF/2-:
A/CGHP;104/6
page
4
15. One representative asked how the Government intended to tackle the problem cf
unemployment since the country presentation anticipated that new .job creation would
be'10,000 per annum, as against an incrsase cf 16-17,000 per annum in the work force.
It was further observed that mining was net labour-intensive and that there
might be a need to develop local and small-scale industry.
The head cf the
delegation cf Botswana replied that the seriousness of the unemployment problem was
recognized in Botswana, especially for those youths finishing' primary education.
An employment unit had recently been or-ated in the Ministry of Finance and
■
.Development Planning.
The.development of local industry was impeded by the small
size of the domestic market, leading to high-unit costs, a less"adequate economic
infrastructure and less skilled manpower than in the South African Customs Union
partners, where industry tended to be located. The Customs Union was not, however,
the major impediment to the development z£ these sectors.
Botswana needed an
experienced entrepreneurial cadre, and the Government had started programmes aimed
at creating a cadre of self-reliant entrepreneurs.
The report of a committee set
up to examine and design a comprehensive subsidy policy for the economy was expected
in the near future.
The head of the delegation stated that, in order to appreciate
fully the Intersectorai linkages and co-ordination between the different sectors,
it was necessary to view the investment programme- in the country report as part of
the national Development Plan,
16.
The issue of the advantages and disadvantages of Customs Union membership for
Botswana van raised.
'Jhe head of the delegation indicated that the point had not
yet been reached where the disadvantages to Bctsvana rere so great as"to justify
setting up soperate customs facilities, particularly given the shortage of suitable
manpower.
17.
Several representatives queried the low direct investment in arable agriculture ■
compared with investment in other sectors, particularly given the central role of
agriculture in development and employment.
She head of the Botswana delegation
emphasized that the agricultural Investment programme v/ao based on a. realistic
assessment of the development potential cf the sector. Prospects of expansion in
the cattle sector were unfavourable since the size of the national herd was reaching
its limit.
The potential for expanding arable ag-riculcure v/ao paxticularlv
hampered by the -unfavourable climate.
He pointed out that, when comparing" the
sectoral breakdown of investment in the country report, it should be noted that only
projects exceeding Pula 1 million had be on included.
13. Several representatives requested further information on Botswana's plans for
the railway sector.
The head of the delegation of Botswana stated that a
contingency plan had been orav/n up In response to the liberation war in Zimbabwe
and to the need to ensure the continued operation of the railway to transport
Botswana1 s imports and exports.
The question of a taka-ovor by Botswana" of the
railway was aa far off as ever since Botswana's own traffic did not justify an
independent rail- authority.
The emphasis vas on co-operation, within the context of
the Southern African Development Co-ordination Conference (SADCC), with Botswana
gradually becoming more Involved in operational activities.
a/conf.104/6
page
5
19.
The head of the Botswana delegation clarified the Government's plans for
developing the country's exploitable coal reserves, on which studies had recently
"been completed.
The private sector would continue to play a major role? as in other
mineral development.
The output from the planned expansion of the existing- nine
vould be for domestic consumption and not for e:rpcrt.
Expected future mining
development for coal exports would have rji impact after the current plan.
A
delegation from Botswana had recently visited Zimbabwe and I;bsambicue to discuss in
particular co-ordination of transport requirements for coal exports.
20.
The head of the Botswana delegation warmly welcomed the initiative of one
delegation in inviting Botswana to-discuss projects in the
bilateral basis at a later date,, with a view tc
21.
country report on a
funding them,
In response to a question en aid modalities, the head of the Botswana delegation
concern about the slow progress of project implementation due to avoidably
expressed
cumbersome aid modalities, particularly in the area of rural and poverty-focused
projects or programmes.
He called for greater flexibility in the use of aid funds,
for example, through an increase in programme assistance.
22.
The representatives of several international organizations described
efforts
to assist
in the development of Botswana and
organisations were ready to
continue
and
stated
their
that these
intensify their assistance in their
respective areas of competence.
23.
The participants agreed
review meeting* had
provided
that the discussions that had
Botswana's development programmes.
spirit
of goodwill and
taken place
at the
an opportunity for a useful exchange of views on
the positive
This exchange would further strengthen the
interest
felt by all the partners in Botswana's
development in assisting the country to achieve ita development goals on a
self-sustained basis.
•,/ooiw. 104/6
page 6
Annex
Participation in the review meeting for Botswana
The following- countries and international organizations among those invited
tc participate in the review meeting were represented:
Countries
i3-^lgiui3i
I[etherland s
C anad a
Norway
D e iinark
Sw e d en
Trance
United Kin^o::i of Great Britain and
Gorraanjr.
Federal Repuolic
of
Kawai!;
northern Ireland
United fjtates of America
United Nations bodies
-Department
Economic
of Technical
Uhitod ITations
United
Co-operation for Development
Commission for Africa
Industrial Sevolopnont Organisation
Ifat ions i")evGlopmcnt rro^rairune
United Nations Centre for Hunan Settlements (HABITAT)
International Trade- Centre UITCTAD/GATT
Specialized
a^eneies
ir-tei'national Labour Or/janisatio-i
Food and Agriculture Organisation of the United iTations
United Katj.onw Educational, Scientific and Oultural Organisation
I/orId Health Organization
World Baj-k.
Ir.ternationsl I'iovietary HXmti
Universal Postal Union
African Uevelopiient Bank
European F,cono"iic
Cordr.unity
Organisation for .hconor-ri.c
Co-operation and ])cvelopnont
A/COMj?, 104/6
II.
1.
REPORT OF THE REVIEW MEETING FOR
As part of the
preparation
for
the United Nations
Conference on the Least
Developed Countries, and in accordance with resolution 3 (-"0 adopted in February 1980
by the Preparatory Committee for the
the
Conference at its first session,
conclusions and recommendations adopted at its
as well as with
second session in October I960
(a/COKF.1O4/pc/9j 2./ chap. II"), which were endorsed by the General Assembly in
resolution 35/20? of 16 December I?o0,
place at
the Palais des Nations,
the review meeting for Guinea-Bissau took
Geneva,
on :?3 and 24 June
19S1.
The meeting was
chaired by Mr. Philippe dt: Seynes, Director, Froject of the Future, UHITAE.
The
report was adopted on ?6 June 19^1.
The countries and international organizations
that participated
2.
in the meeting are
listed
The main document considered was
in the
annex.
the report prepared by the Government for the
country review meeting- (country presentation of Guinea-Bissau (LDC/CP/31)).
report was available in the original language (French);
prepared by the
secretariat of the
French (A/COMF.IO4/SP/31).
3.
The preparation of the
Conference was
country programme and
The
a summary of the report
circulated in Arabic, English and
its presentation to the review
meeting- were a major step in the pre-conference activities.
4.
The
head of the
delegation of Guinea-Bissau, Mr. Vasco
Economic Co-ordination and Planning1,
described the
Cabral,■Minister of
situation in his
country and
submitted its programme in an introductory statement which is summarized in
paragraphs 5. to 10 below.
5.
After
thanking the
international
in the group of least developed
community for Guinea-Bissau's recent
countries,
country had had only a short time
inclusion
the head of the delegation said that his
in which
to submit its
country presentation to
the
meeting.
Describing the situation in his country, he first mentioned the onerous
heritage bequeathed to it by colonization and the war of liberation, particularly in
the form of the profound disruption of the weak production system and of Guinea-Bissau
society itself.
Despite a significant recovery in agricultural production, which had
nevertheless been affected by drought in recent years,
emergency food aid.
respect to education,
population living
6.
He
stressed
the
country's
health and housing,
in village
communities
the country still needed
continued precarious
situation with
particularly for the 87 per cent of the
in the
interior.
Pointing out that it was because of those structural difficulties that
Guinea-Bissau had been eligible for inclusion in the group of least developed countries,
the head of the delegation proceeded to describe the economic crisis affecting his
country.
The crisis was reflected in a constantly deteriorating balance of payments
l/
Original French.
—/
See also Official Records of the General Assembly, Thirty-fifth session,
Supplement No. 45 (A/55/45), Part Two.
A/C01IF. 104/6
and in a depletion of currency reserves, which was paralysing essential imports,
including- imports of foodstuffs.
The train cause of the crisis was to bo found in
poor agricultural performance, largely duo to the drought yoarc of 1977, 1979 end
I9B°, increased import prices, particularly oil price?, and the size of investments
that were not directly productive.
In 19-;1, the balance-of-payraents deficit was
expected to reach &U3 y?_ million, and the external debt, whose
burden or. the national economy, approximately $U3 170 million.
and financial difficulties
were
development administration.
to be
added the
servicing1 was a heavy
To those economic
continued weaknesses affecting-
7He then listed the country's substantial development potential, particularly its
fishery and forestry resources, the possibility of doubling: the arable area to a
million hectares and the potential use uf productive capacity to the full once certain
bottlenecks had been removed, the bauxite reserves (over 200 million tons) and the
promising signs with respect to phosphates and petroleum.
people's capacity to use technology adapted to the
He also highlighted the
conditions of the country.
8.
He pointed out that the development strategy adopted by his Government was that
agriculture would play the basic role and industry that of a dynamic stimulus.
The
strategy called, in particular, for priority for investment in the rural sector?
an
increased allocation of resources to the regions rather than to the capital?
efforts
to use productive capacity to the full before new investments were made;
and
rationalization of imports and of domestic distribution to ensure that supplies
reached the people.
In addition,
assistance projects
to
subordinate
the
Government would
them to
ensure
strict
supervision of
that strategy.
9-
In order to overcome the current crisis, the country required emergency assistance
in 19B1 amounting' to .d-US 34 million, made up in the following way:
$US 7-5 million
to finance trading' arrears;
$'US 11.5 mi-llion, to establish minimum international
reserves (equal to tv/o months' imports).
#US 6 million to finance debt servicing due
in 19S1; and ffiTJS 9 million to form a food security stockpile (20,000 tons of white
rice). He added that, in addition to such emergenc^ assistance, medium-term
assistance was ese
ntial for
implementing
he
development pr^^rammes.
The amount of
such assistance required, for 19?-?-19n5 r?F- or tinted e.t plZ 437* 5 million, correspondin
to $US 230.6 million in assistance for financing programmes and projects;
$US 53*9 million in food aidj
$US 81.3 million in assistance for financing-
restructuring programmes (:!*US 53.4 million for energy financing and ^;US 27.9 million
for financing recurrent costs of spare parts and technical assistance for maintenance);
and $US 71*7 million in direct balance-of-payments assistance.
10,
In view of the debt-servicing burden for the coming years (an annual average of
$U3 10 million) and of the need for the country to be able to rely ou a minimum of
financial stability,
the
head of the
that a study should be made,
Countries,
with the
of
in the
delegation,
the possibility of cancel],ing the
requests made
by
the
International Economic Order.
on behalf of his Government,
context of the
Conference
country's external debt,
Group of 77 and with the principles
Lastly, lie added that,
renegotia.tion of th-3 debt to be held as
proponed
on the Least Developed
of the
in accordance
New
as well as a meeting for the
a Round Table was to be
organized In 1982 for financing the Development Flan for I9O3-I9Q6, which was currently
in preparation.
soon as possible,
/COKP. 104/6
-w
11.
The delegations of the various countries and international organizations stressed
the clarity and frankness of the presentation made by the head of the delegation of
Guinea-Bissau, and commended the analysis of the economic situation made in the country
presentation.
They took note of the majcr approaches and development priorities
chosen by that country's authorities.
The main points raised during the discussion
are
12.
summarized
in the
following paragraphs.
Several delegations asked for details of the
country's development priorities.
The head of the delegation of Guinea-Bissau replied that those priorities had been
selected on the basis of a historical analysis and of the
social and economic
realities bequeathed to the country on the eve of its independence (a. large rural
population,
an under-exploited farming potential, monoculture, weakness of industry
and the precarious living conditions of most of the population).
The over-riding
priority given to rural development as the economic development base was accompanied
by priorities for sectors closely linked to agricultural development;
industry,
trade, education and health.
Based on a definite potential, the development of
agriculture was directed towards the growth and diversification of production-with a
view to achieving future self-sufficiency in food and to increasing exports of surplus
products.
Industry had a dynamic role to play in agriculture through the processing
of food products and the provision of equipment and inputs
that would promote
increased agricultural production.
Trade and the supporting infrastructures should
provide development conditions offering transport and product distribution facilities.
The development of education (both basic education and the training of skilled
personnel) and health should be able to contribute to increased production and was a
prerequisite
for the
people's participation in development.
13.
The head of the delegation recognized that there
that development strategy during its implementation:
industrial development projects that were
too large
had been some
deviation from
the premature
introduction of
in view of the poor management
capacity (ouch as the Cumere agro-industrial project).
19'31 onwards
steps were
being taken to remedy the errors
He added, however, that from
that had been ma.de.
14.
Several delegations had asked for additional information on the economic and
financial recovery measures envisaged by the Government of Guinea-Bissau.
In reply,
the head of the
delegation first described the
on the one hand,
of action which was designed,
contents of the short-term programme
Improve the balance-of-payments
to
situa.tion,
the trade balance, the administrative organization and the social and
cultural situation and. on the other, to regulate imports and reduce energy consumption
(particularly of oil).
and financial
He then described the main lines of the medium-term economic
stabilization programme,
to be adopted in July 1531, which was designed
to improve the country's public finances (particularly through increased earnings,
rationalization of expenditure arid the application of austerity measures), to ensure
improved investment control (through better preparation of the capital equipment
budgets) and to make bettor control of the economy possible through both the
rationalization of imports and the application of a prices and wages policy consistent
with development needs.
15.
Referring to a question concerning pricing policy,
the head.of the delegation of
Guinea-Bissau emphasized the great importance attached by his Government to the
correct
formulation of that policy, and particularly to the fixing of remunerative prices for
agricultural producers as a means of encouraging increased and diversified production
for both the domestic market and export.
While noting1 the existing delays in that
1.104/6
area,he pointed out that steps had already been taken to remedy the situation
(particularly in the form-of■"■some increases in agricultural producer priGes).
He
also mentioned that tha 'current pricing policy studies were co-ordinated with those
on v/ages policy, which, from the institutional point of view, was reflected in"the
establishment of a national commission, to re-examine the wage structure in the civil
service and in public enterprises.
16.
Replying- to some delegations whish had asked for information on the role reserved
by the Government for private initiative, the head, of the delegation said that the ■
private^sector had hitherto been smothered, particularly in the area of trading
activities, but that it would receive greater prominence than in the past in the
context of the rationalization of commercial enterprises. Ee added that the
Government was in the process of establishing conditions to enable the private sector
to widen its activities in various areas of the country's economic life, although
that did not imply any abandonment of certain forms of State control.
17. In reply to questions asked by several delegations concerning the role of the
State trading enterprises, particularly the people's shops and Socorain, the head of
the delegation of Guinea-Bissau said that those enterprises wore of the greatest
importance for the country's economy, particularly as a means of ensuring" that the
population was supplied with essential consumer goods. Re added nevertheless that the
size of those enterprises, in view of the conditions in the country (management staff,
etc.;, had exceeded the desirable level and that, in the future, they should
rationalize their activities by concentrating on essential priorities and ensuring
that they were mutually complementary so as to cover more effectively all the regions
of the country. He also stated that Euch rationalisation would be greatly assisted
by the surveys that were currently being- carried oux to obtain a better knowledge of
the people's needs (village card indexes).
IB.
n/ith reference to the ways and means of achieving the objective of self-sufficiency
in xood and the time-table for this, the head of the delegation of Guinea-Bissau "
replied that the development plan, which would be prepared with the participation of
the people, was aimed at increasing ar.d diversifying- production by measures designed
to increase the area cultivated, Improving yields by introducing better cultivation
techniques (training, a nampaign against the practice of burring over land, use of
draught animals for cultivation, etc.), founding an agricultural credit bank and
improving tn& planning and food security system (creation of a national planning and'
lood security commission). He added, however, that, in view of the climatic hazards
and desertification, it was difficult to set a date for the achievement of that
objective. He-gave tne participants s:>me information concerning the machinery for
managing food aid.
19.
In reply to a question on the options for industrial development, he said that,
apart from the operational rationalization of existing- units, efforts would be
concentrated on small and medium-size enterprises in the agro-industrial sector, which
did not require technical end organizational skills beyond the country's capacity.
20. In answer to a question asked h-y one delegation concerning the development of
education and health, he replied that /hese sectors constituted basic priorities i:i
view of the social and cultural underdovolopment inherited by the country on
independence and the importance of making optimum use of homan resources, having- regard
to the concern for economic and social progress.
He said that the development of
education aimed at the generalization of educational services, th- diffusion of
scientific and technical knowledge and independent cultural development. As regards
development in the health sector, he said that its o^ph^si^ w^s on^revpntion the
expansion of the rural infrastructure and maternal end cMld r>rotncti-n.
A/COIDT. 104/6
page
11
21.
With reference to a question asked by several delegations concerning the ways
and means of training qualified personnel, he said that his Government's main concern
in that area was to establish, primarily by national training and also by supplementary
external training, training programmes that would be quantitatively and qualitatively
commensurate with the needs, particularly the crying need to train middle-level
technical and professional personnel.
He referred, incidentally, to the difficulties
of planning the training of qualified personnel, in view of the country's dependence
en fellowships offered by external assistance,
22.
In connection with the country's capacity to absorb external assistance,
concerning which a question had been asked by one participant, he emphasised that
greater co-ordination of assistance was sought, going beyond projects initiated
independently by sectoral ministries, and that, in the future, preference would be
given to integrated projects involving several ministries and forming part of planned
developme nt programme s.
23.
He stressed that administrative discipline, at all planning levels, would be a
prerequisite for achieving the desired objectives.
He gave
some information concerning
the gradual improvement of the statistics and planning system (creation of regional
structures, strengthening of the central unit and improvement of statistics), although
current conditions were not as conducive to scientific preparation as those prevailing
at the time of the first national development plan (1983-I986).
He also emphasized
that planning, the cornerstone of development organization, implied not only co
ordination but also involvement of the people in the preparation and implementation of
development plans.
He referred to the Government's intention to encourage private
initiative in the form of co-operatives and associations of small producers.
24- With reference to the external assistance received, the head of the delegation
of Guinea-Bissau while thanking the donors, said he would like to see more flexibility
in the criteria of the assistance sources so as to meet more effectively the country's
priorities and the specific needs arising- from the difficulties encountered (e.g. the
means of economic management).
He also stressed the importance of the contribution of
non-governmental organizations which could operate at the level of basic development
and of social needs, a sector that was of little interest to bilateral and multilateral
assistance agencies.
25.
In reply to a. question concerning the conclusions to be drawn from the current
economic and social situation as compared with the
situation at the time of
independence, he stated that the economic advancements made (improvement of agricultural
working conditions, relative development of industry and of infrastructures)together
with the social progress that had taken place (improvement of living conditions in the
countryside, health and educational development, free education and its adaptation to
needs, free medical care and its availability) constituted some positive achievements
during the few years that had elapsed since the accession of Guinea-Bissau to national
sovereignty.
26.
In reply to a question concerning the expected growth in exports, he stated that
the potential sectors were agriculture, forestry, fishing and mining. The exploitation
of those sectors would, in the medium term, make it possible once again to bring
foreign trade flows into balance.
a/cow . 104/6
page
12
27. In reply to a question concerning1 the scope of the reouest for the cancellation
of external debt, he said that Guinea-Bissau hoped its debt would be cancelled by all
its creditors. With regard to loans, h2 stated that, in general and if made available
on favourable ter^s, they constituted use.'al assistance for the future in the context
of the implementation of the development strategy.
28.
The representatives of several developed countries expressed their intention of
undertaking or continuing some concrete activities in Guinea-Bissau.
29. The representatives of the developing countries stressed the importance of and
potential for technical and economic co-operation between Guinea-Bissau and their
respective countries in the context of the Arusha Programme of Collective Self-Reliance
and solidarity among developing countries.
30. The representatives of several international organizations described their
organizations1 efforts to assist the development of Guinea-Bissau, and stated that
they were ready to continue a.nd intensify their assistance in their respective areas of
competence. Representatives of non-governmental organizations invited by Guinea-Bissau
as partners in its development efforts also made statements to that effect.
31. The participants specially appreciated the review meeting as having offered a
felicitous opportunity for a better understanding of the development programmes of
the Republic of Guinea-Bissau and for an enriching and fruitful exchange of views on
those programmes.
a/oohf. 104/6
page
Annex
.:...
13
_
■-,
.
. —-
Participation in the review meeting for Guinea-Bissau
The following countries and international organizations among those invited
to participate in the review meeting- were represented:
Countries
.
. -
, .
.
Algeria
Japan
Argentina.
Libyan Arab Jainahiriya
Aus tralia
Luxembourg
Austria.
Mexico
Belgium
Netherlands
Brazil
Portugal
Cuba
Romania
Egypt
Spain
France
Sweden
India
Switzerland
Iraq
United Kingdom of Great Britain
Ireland
anc* Northern Ireland
United States of America
Venezuela
Yugoslavia
United Nations bodies
Economic Commission for Africa
United Nations Industrial Development Organization
United Nations Development Programme
International Trade Centre UNCTAIj/GATT
Specialized agencies
Food and Agriculture Organization of the United Nations
United Nations Educational, Scientific and Cultural Organization
World Health Organization
World Bank
International Monetary Fund
Universal Postal Union
International Telecommunication Union
Inter-Goverranental Maritime Consultative Organisation
'
A/COUF.104/6
page 14
Intergovernmental organizations
Agency for Cultural and Technical Co-operation
.
. .
European Economic Community
Organisation for Economic Co-operation and Development
Non-governmental organizations
Euro Action Accord
Weltfriedensdienst
Dienste
in Uebersee
Quaker United Nations Office
Deutsche Welthungerhilfe, Bonn
OXFAM
a/cohf.104/6
page 15
III.
1.
IEFORT OF TIIE IEVIE1./ IEETIi:G FOR HAITI l/
As part of the preparations for the United Nations Conference on the
Least Developed Countries, and in accordance with resolution 5 U) adopted m
February 1900 by the Preparatory Comittee for the Confeience at its first session,
ao well as'uitb the conclusions and recommendations adopted at its second cession
in October 1900 (A/CO1IF.IO4/PC/9, 7j chap. Il), which were endorsed by the
General Assembly in resolution 35/205 of 16 December 19-30, the review meeting
for Haiti tool: nlace at the Palais ties ITctions, Geneva, on 24 and 25 June 19ol.
The meeting vc/ chaired by Mr. Carlos Vegega, Deputy Administrator and Director,
Regional Bureau for Latin America, WDT.
The report was adopted on 26 June 1901.
The coimtries and international organizations that participated in the meeting
are listed
2.
in the annex.
The main document considered was the report prepared by the Government for
the review meetinC (country -oresentaoion of Haiti, LDC/CP/27).
The report was
available in the original language (French); a summary of the report prepared by
the secretariat of the Conference was circulated in Arabic, English and French
(A/COIJF.1O4/SP/27).
>
The preparation of the country programme and its presentation to the review
meeting wore a major stop in the pre-confercncc activities.
4.
II.E. Dr. Edouarcl Francicque, Secretary of jtate for Foreign Affaire and
Religious Matters, head of the delegation of Haiti, presented his country's
programme in an introductory statement, starting with an analysis of^recent
developments in Haiti's economy and going on to the identification ox the main
bottlenecks, the objectives of development and the modalities of co-operation
with other countries.
His statement is summai-ised in paragraphs 5 to 9 below,
5.
Reviewing recent developments in Haiti's economy, he recalled that during the
the 1960s there had been a sharp drop in Haiti's per capita GDP but that a recovery
had begun in tho early 1970s which had led to increasingly rapid growth towards the
second°half of the decade.
That grov, .h had been clue to ^he revival of public and
private investment in the infrastracturo, manufacturing industry, construction and
the services sectors, and had been assisted ]jj an increase in the price of coffee,
the country's main expert product.
However, that growth had not initiated a
process of self-suotained development because the underlying structures had not
been radically changed, particularly in the agricultural sector, which had been
unable to meet the increased demand for food products.
At the start of the l$COs,
growth was slowing down.
6.
The main consti-r.intc on development were inadequate and little-known natural
resources, mediocre agricultural productivity, an inappropriate educational sy
limited administrative ability, the breakdown of the basic infrastructures and
poor financing capacity.
l/
Original French.
2/ See also Official Records of the General Assembly, thirty-fifth session,
Supplement No..._45 (A/35/43), Part Two.
a/cohp.104/6
page 16
7.
For the 1930s,
the Government
of Haiti had
sot itself the following "basic
objectives:
(a)
Sustained growth of national production, particularly in the sphere of
agriculture and food
domestic market;
(b)
production and- in that of consumer industries aimed
at the
Creation of productive jobs, particularly for the most underprivileged
rural and urban masses,
through the encouragement of highly labour-intensive
activities;
(c)
Satisfaction of the essential needs of the people and assurance of a
better distribution of income, with particular reference to the moct deprived
social
groups 5
(d)
0,
Reduction of the imbalances "between the various regions of the country.
For the preparation of the 19G1-19S6 development plan,
had been considered and
the authorities had
particular the following;
selectee1 model
three different models
II which included
an over-all annual growth rate ox
>5 per cent,
in
a sharp
incres.se in development expenditure (C22G million per annum), a rapid growth in
agriculture
of 2.5 per cent per annum and
services.
Within that scenario,
very rapid
development
of all social
the head of the Haitian delegation indicated the
strategic objectives for the various economic and
social sectors, and gave details
of the fiscal and financial reform in progress, which should serve to increase
public
9.
savings substantially.
Lastly,
the head
of the Haitian delegation referred
to the
important part played,
in the past by external assistance (57 per cent of the financing of public expenditure
on development during the period 1976-l?3l).
lie recognized that certain domestic
factors, which he enumerated,
stressed
the need
grants rather than loans,
costs,
limited
the country's absorptive capacity but he also
for donors to liberalise the conditions
contributing in a larger measure
abandoning the principle
to local and
recurrent
of the proportionality of counterpart funds and
simplifying administrative procedures.
that public savings would
of assistance by supplying
For the period 1901-1906, it was estimated
account for some
'.'30 million out
of the planned annual
public investment of 022C million.
Thus, external financing needs would amount to
approximately 3200 million per annum, or a total of (;1 billion for the period of the
plan.
It waa estimated that some 0140 million per annum would be contributed by the
traditional donors; and about 060 million per annum of additional resources were thus
being sought ao a prerequisite for the achievement of the country's
objectives.
10.
The delegations 01 the various countries and international organizations stressed
the clarity and frankness of the presentation by the head of the Haitian delegation
and expressed appreciation of the analysis in the report of the country's economic
situation, its constraints and. potential.
11.
Referring to Haiti's general economic and social development policy and to the
steps to be taken to accelerate the growth rate, several u peal: ere expressed their
agreement with the objectives of the strategy the Government intended
the new five-year plan currently being prepared.
to pursue under
They expressed the hope that the
a/cow. 104/c
page
17
administrative and fiscal reforms contemplated by the Haitian authorities, and already
partly initiated - in particular as regards fiscal natters - would be quicl:ly put
into effect, at; well as the complementary measures designed to increase the country1 s
capacity to absorb greater external assistance through improved management of ■
resources end. the accelerated training of administrative and technical personnel
who would bo motivated and devoted to the cause or Haiti'c development.
12.
The representative of Venzuela said that Haiti would shortly benefit from the
onrjr^ co-operation programme which his Government had devised,
jointly with that
of Mexico, in favour of nine Central American and Caribbean countries.
Haiti13
oil bill would be lightened because 3° i^r cent.of the value of hydrocarbons from
llexico and Venezuela would be made available to Haiti in the form of short-term and
medium-term credits at an interest rate of i\ per cent and tons-term credit at a rate
of 2 per cent.
The hoac of the Haitian delegation, expressing his Government's
gratitude to the Venezuelan delegation, said that his Government uas ready to sign
and ratify the relevant San Jose agreement as soon as -oossiblo.
1?. The representative of the international Monetary Fund, recalling the close
relations which the HIT had maintained with Haiti for more than 20 yearn, said that
since mid-1970 the HIT had supported Haiti's medium-term economic development
programme,
a major objective of which was a fundamental reform of the administration
end structure of public finances.
Apart fron technical assistance, the HIP bed
made available to the Haitian Government, under the extended facility, substantial
resources (approximately 30 million J^Hs) i:a part to help it overcome the effects of ■
the decline in export receipts during the fiscal year I9GO/19OI.
He added - in the
.nope that the current economic difficulties would prove to be transitory - that the
country vas in a position, as a result of the fiscal and administrative reforms, to
increase domestic savings and apply them to tho priority sectors.
Although efforts
were being made to restore financial equilibrium, it would take time for the measures
introduced for this purpose a few months earlier to produce the desired result;..
He also pointed out that Haiti's economy would.require- further external aid for its
development but that there was unquestionably a link between the scale of ouch
foreign assistance and the matching funds provided from domestic savings.
14.
Referring to the development targets that the Haitian Government had sot itself
the representative of the Vorlci .Oank noted that the investment necessary to reach
an annual mean growth rate of 3.3 per cent would be equivalent.to 15 or 16 per cent
of Gj)r.
That, in turn;, would require a considerable expansion in public savings,
strict fiscal discipline and more extensive concessional assistance so ao not to
raise the coat of servicing the external debt.
The projects comprising the
forthcoming five-year plan, once elaborated; should ensure its internal coherence
and respect the economic priorities.
The stress already placed, in the country
presentation, on -;hc rapid development of social services seemed particularly
appropriate.
A very judicious use of counterpart fraidn would be essential in the
future, in view of tho link botvoon the d^ir-cd scale of external assistance and
national savings.
Geveral projects mentioned in Haiti's country presentation might
be suitable for IDA financing, once their details had been worked out.1
15. Inferring co the statement of the representative of HiT. the head of the
Haitian delegation strongly emphasized that His Government was anxious to intenaify
:Lts co-operation further with the l\mc!.
He noted i;i particular that the Haitian '
A/COW. 104/6
page
18
authorities would seel: the emergency assistance of HI? for the consolidation ef
Lho bucket and subsequently for th« purpose of half-yca-ly oud^t. ~f oi th-
national account, so ao to rnalco the country's public finances both c]ccr ar-i
v.o1^l,uj._^iuj^jil
16.
ui
a
:Lnv;
^iseai
ano:
ouo^otary
system.
In reply to a question on the structure of external-debt servicing the
Hainan delegation stated that data on the per creditor structure of the debt were
nox ye. available but would shortly bo published.
?he servicing of the dobt
would amount so approximately '.I* million per annum betv^n 13m anci 1^
including ^ S mliion for amortization.
The rario of debt servi^-'^ GxPort3
uas es.unated at ^ per cent for 19OI and vac expected to rise to a^roximately
4 per cent, towards the nicldlo of the accede.
17.
"
The head of the Haitian deletion, th?nl:inG the other zvccl.orz 10- their
constructive comments and GU-c^tiono, expressed the homo that the ;/orld Banl; vould
increase its activitioc in Haiti, particularly uith ^e'-rr to tho ^T-orraraninr- of
investments and the financing of anriculturol^^velo^ent ^njec^^t^^
frameworlc of a sectoral policy that would ohortly be'nad.e mblic.
He also'announced
the imminent eataoiialinont of a permanent beJv to deal \ri th the ^^^r- cau-od 1-natural catastrophes, one effect;: of which coy Id be mi ^atod by an -^m^iatc"
system oi meteorological information and warning.
""
'
10. In connection with the steps i:o be talccn to accelerate invoctment bv the
private sector, the head of tho Haitian r^l^tioa described the various* incentives,
facilities and, ra exemptions rrantod to nov inductries, which should hel^ to remote
tne desired decentralization 01 industries and em^lojiaent.
In addition to beinreligiole^for tne incentives of the investment code, private entrepreneurs would °
bene.it xrom new industrial estates and a free .one.
-J?hG now custons tariff uoiO d
also oner increased protecticn? while expandinc the state's -cvenu-s, ov-in- to n
reduction of the duty-free inroorto rc.-ino,
^
19. One delegation stated that the Haitian Government should -orove that it is fu
capable of mano,,0lnG its income bxiO to formulate- its budgets in"an optimum manner,
in conformity with a rre-cstablished investment pirn, if it expected the various
sources of external finance to be able to conniclrr ;vr "o^; out -oolic^- f.-v
financing recurrent costo.
The head of the Haitian delegation replied that the
recurrent coot;g of d.evelopnient projects usiu:.lly amounted to between 16 end 25 "oer cent
of the investment cost, and he avpodeC to his coiurtr^'s -partners in soften the
conditions of their assistance. Ho +,hoiv:U that countcr-i^t costs should bo
considerably reduced and that recurrent cojt.o sho:.ild be borne in part by the donors.
20. One delegation asl:ed for more information on intecratod rur?J develo^nc^i;
projects.
The head 01 the Haitian delegation ru-olied that xhey formed part of tho
country's development strategy ana that, with the experience that could be r;ainco
from_ the projects under way? it would be possible to establi';h a general methodolo^
for 'die formulation and execution oC such projects,
Ke alco stateo ";h?t the
authorities had already adopted some measures "in L.up-ort of^he integrated development
strate^- formin- pari; of the I9GI-I905 pl^n, such as the Community Movement Act and
the esta^blishment of a national council for co-o-oorativcr;.
A/COHF.104/6
page
21.
One delegation asked
1>
for further information on the rural land register and
on the security of the land tenure of peas curt farmers;
'The-head of the Haitian
delegation said that the authorities hat1 long been concerned about -;hose matters but
that the peculiar conditions of Haiti's rural areas (the ..ubdivision of land into
minute holdings, a very complicated
cuc"jomai*y inneritancc cyst en,
the broken relief
of the countryside, etc.) macle it ex^r^moly difficult to eolve the problems.
Mentioning that an urban land register was in preparation for two towns, he said that
special tribunals had been set up in rural areas to help to solve problems of. land
use by peasant farmers.
He said that'there wore no large estates in Haiti and
that 00 per cent of the land belonged to smallholders.
that
22.
Preferring J^° onc of 'the major constraints on Haitian development, the lack of
qualified personnel, the head of the Haitian delegation invited his country's
partners to help in the establishment of a nations,! school of administration end in
the training of managers.
Administrative regulations for the civil service would
be approved by the Council of llinisters upon the conclusion of the sectoral
consultations.
Furthermore, special meaoures were being planned to encourage
Haitian technicians living abroad to return home and to discourage the current exodus.
It was indeed essential to increase the number of salaried jobs, and that was an
objective of the current development programme which required considerable- assistance
from the partners.
23.
Details were provided by the head of the Haitian delegation in reply to questions
on education and
training policy and
objectives.
It was
stated
that there was no
problem as regards children at the primary-school level passing iron Croole to French,
and that the private schools were both able and willing to adopt the new educational
system as well as a revised, scheme of vocational training in Haiti, with the help
of UHBSCO.
Among the major problems to be resolved was that of the placement of
secondary-school pupils, whose numbers far exceeded the jobs currently available.- ■
Practical training of a new type was advocated and that would require extensive
educational material as well as the training of educational personnel.
24.
At the conclusion of the debate, t;_e head of the Haitian delegation expressed
his satisfaction with the exchange of views, which had been very useful for a better
understanding of the Haitian Government's development efforts, and had made it
possible to rectify certain nisunderstandings concerning Haiti's development policy.
25.
The representatives of several countries expressed their intention of undertaking
or continuing come concrete
26.
activities
in Haiti.
"
"
The representatives of several international organisations described the
efforts of these organizations to assist the development of Haiti and stated that
they were ready to continue and intensify their assistance in their respective areas
of competence.
The representative of a non-governmental organization invited by
the Haitian delegation as a partner in its development efforts also made a statement
to that
effect.
27.
The participants agreed that the review meeting had provided a good opportunity
for a useful exchange of views on Haiti's development programmes.
A/C013F. 104/6
page
20
Annex
Participation in the^reviev meeting Tor Haiti
The following countries and
international organizati.. nc .among those invited
to participate in the review meeting were rcp±"c cent eel?
Countries
Argentina
Japan
Australia
liexico
Austria
Romania
Belgium
Spain
Brazil
Switzerland
Canada
United Kingdom of Great Britain
Denmark
and
France
Northern Ireland
United states
Germany,
Federal Republic
of
of America
Venezuela
YugoslaviaUnited
Nations bodies
Department
United
of Teclmical Co-operation for Development
Nations Industrial Development Organization
United Nations Environment Programme
United
nations Development Programme
International Trade Centre UITCTAD/GATT
United Nations Centre for Human Settlements (HABITAT)
Specialised agencies;
International Labour Organisation
Food, and Agriculture Organization of the United ITations
United Nations "'.ducational,
Scientific .uicl Cultural Organization
1/orld Bank
International I-lonetary Fund.
International Telecommunication Union
World Meteorological Organization
Intergovernmental organizations
European Economic Community
Organisation for Economic Co-operation and Development
ITon-governmental
or;-;anizations
Catholic Relief Services
Deutsche 1/elthungerhilfe,
Bonn
/,/CCliF. 104/6
page
IV.
1.
21
REPORT OF TI-IE REVIEW MEETING FOR LESOTHO l/
As part cf the preparations for the United Nations Conference en .the Least
Developed Countries, and in accordance with resolution 3 (i) adopted in February 1980
by the Preparatory C omit tee for the Conference at its firr/; cession, as well as with
the conclusions and' recommendations adopted at its second session in October 1980
(A/COHF.IO4/PC/9 2/, chap. II), which were endorsed by the General Assembly in
resolution 35/2C5 of 16 December 1980, the review meeting for Lesotho took place at
the Palais dos Uaticns, Geneva, on 23 and 24 June 1981.
The meeting was chaired
by Mr. Jan Fronk, Deputy Secretary-General cf UHCTAD.
The report was adopted on
26 June 1981.
The countries and international organizations that participated in
the noeting are listed in the annex.
2.
The stain document considered was the report prepared by the Government for the
review meeting (country presentation of Lesotho, LDC/CP/29).
The report was
available in the original language (English);
a summary of the report prepared by
the secretariat cf the Conference was circulated in Arabic, English and French
(A/C0HF.104/SP/
5.
The preparation cf the
meeting were a major
4.
The head cf
country programme and its preoeutation to the
step in
the
pre-conference activities.
:ho delegation of Lesotho,
Lho Honourable Mr. E.It.
Minister of Finance and Development planning,
and highlighted its objecvives,priorities,
requirements
summarized
during
the
in paragraphs
submitted his
Sekhonyana,
country's programme
constraints and financial assistance,
period l^ol'-lfOb,
j
review
The
main points
of his
statement
are
to 17 below.
5.
The .head of the delegation stated that the Kingdom of Lesotho, which had
become independent in i960, was land-locked and comprised only JOjOOO square
kilometres.
While its entire population of about 1.3 million relied on traditional
agriculture, only 13 per cent of the total area was suitable for crop production
and almost all households, particularly in the mountains and the foothills,
subsisted on livestock farming.
Lesotho was completely surrounded by the
economically more advanced Republic of South Africa, to which it had historically
supplied a large part of its male workforce and where most of its imports originated,
6.
In the last decade Lesotho's GDF had increased substantially at an annual rate
of about
9 per cent in real terms.
While migrant labour contributed significantly
to Lesotho's economy and largely redressed
expressed his Government's
volatile
cost s
7-
and subject
concern about
the
this
to exogenous factor;;-:.
country's chronic trade
source
of earnings,
Moreover there
were
deficit,
he
which was highly
social
and economic
involve■■"!.
Because of Lesotho's narrow productive base and the existence of a more efficient
industry in the Republic of South Africa,
most "products were imported and Lesotho's
industrialisation efforts had been retard*-'.'!.
Since 1910 Lesotho had oeen a member
cf the South African Customs Union,
While the customs revenue received from this
source was substantial} the Union clearly tended to restrict agricultural and
industrial growth in Lesotho.
The current Fivp-Yoar development Plan therefore
aimed at reducing Lesotho's dependence
Original English.
on
this source
of revenue.
A/C OK?. 104/6
page 22
8.
Turning to the
over-all objectives of the Third Five-Year Development Plan
1930/81-1904/85, he stated that, as in the case of the previous plans, there
continued to "be a commitment to. a self-reliant economy with particular emphasis
on the protection of the land base and development of water resources, the
achievement of self-sufficiency in food grains, the increase of domestic employment
opportunities, the promotion of an equitable distribution of income, and increased
and effective participation of the community in the national development effort.
9.
The Minister said that employment generation was the greatest challenge faced
by the Basotho nation.
He referred, to the possibility of a significant reduction
of the Basotho labourers in the mines of tho .Republic of South Africa,' which could
lead to a major dislocation of Lesotho's economy.
In the circumstances, it was
imperative for changes in industrial strategy to be introduced, with emphasis on
appropriate technology.
Labour-intensive methods were therefore being given
emphasis throughout government activities.
10.
He stressed the importance of industrialization to his country's development
and the potential role of the private sector in that respect.
The Government had
adopted a number of measures to promote industrialization, including many incentives
for foreign investors.
Special attention was being given to import substitution
and export-oriented industries.
These endeavours in the industrial sector were,
however, hampered by an inadequate infrastructure, lack of financial resources and
the scarcity of managerial and technical ]oicw-how.
11.
Agriculture was not yet contributing as it should to the improvement of the
for a number of reasons including soil erosion,
over-stocking and consequent over-grazing, insecurity of land tenure, poor farm
management practicos and ina.deque.to marketing arrangements.
Ho said that his
population's living conditions,
Government had initiated a programme based on land use
management practices.
This programme was
coupled with
quality of stock through a variety of programmes,
planning and proper range
an improvement
of the
including Breed improvement and
disease control.
The Government had also launched the Basic Agricultural Services
infrastructure for the supply and distribution of
inputs and had reorganized the extension cervices at the farmer level with a viow
to increasing1 crop production.
In support of these measures, agricultural credit
Programme in order to create the
institutions had been consolidated,'and streamlined marketing facilities were
being introduced.
Tc achieve complete self-sufficiency in basic food grains over
the coming five years, an investment programme of about 45 million Haloti was
envisaged,
12.
He said that Lesotho's literacy rate was relatively high but that the
educational system needed to bo improved in order to provide the skills required
in the development process.
This war; tc be achieved through the establishment of
new facilities and the expansion of existing ones, the expansion of non-formal
education, a reform of the curriculum, the -orovicion ri teaching materials and the
over-all improvement
13-
of teacher training.
The population still suffered iron a number of diseases, especially water-borne
disease.
He
indicated that in
of primary health
intensified,
uhe
1980s emphasis would be placed on the prevision
care in the rural areas.
The
immunization campaign would be
and planned improvements to village water supplies,
health education would'enhance
the well-being ox
facilities would be expanded and improved.
the
population.
sanitation and
All physical
a/cokf.104/6
page
23
14The "basic aim of the Government's rural development policy was to design
integrated programmes at the village level.
Four categories of activities were
being undertaken;
Thaba-Tsaka mountain district development, village infrastructure,
village technology, end water supply and sanitation.
In the Third Five-Year Plan
these activities would include affcresta:icn.
A number of programmes, particularly
emphasizing labour-intensive methods, were "being undertaken in this context.
He
said that the prevision of village water supply on a self-help "basis had proved to
be very successful,
15«
Turning to transport and communications, which faced a special handicap in
Lesotho because of the ragged terrain and the
scattered villages, he said that the
road network was largely undeveloped. ' The basic strategy and objectives as
contained in the Third Plan were to provide uain and feeder roads in the lowlands
and foothills and all-weather roads in the mountain regions.
A transportation
study had just been completed-,'.on the basis of which a 20-year-development programme
would be
drawn up,
lb.
Referring to water resources, he said that his Government placed emphasis on
the provision cf safe drinking wcter to communities,, and had embarked on a
Major Village Water Supply Programme.
Of particular interest was the Highland
Water Project, which would make it possible to store vator in the highlands of
Lesotho for the generation of hydroelectric power, for ensuring a supply ex
drinking water for irrigation and for sale tc the Republic of South Africa.
This
scheme, which would le.sscn Lesotho's dependence on South Africa, was now at the
feasibility stage.
In addition, a number of other mini-schemes aimed at providing
hydroelectric powor and water to communities were also proposed.
17-
Vifch regard to aid requirements, he said that Lesotho'^ capital programme for
156l/l>62 of 167 million Haloti included 55 million in government contributions.
However, the main portion of the requirements would have to be financed by foreign
aid.
One of the major accomplishments of the First Plan had been to eliminate
external support to the recurrent budget and tc generate a surplus for transfer to
the capital account.
In the Third Plan, however, it had become necessary to seek
donor support to cover essential rcourrir,_ costs and to ask donors to liberalize
their conditions governing substantial lo^.al counterpart contributions to projects.
18.
The Third Five-Year Plan envisaged t, real increase of about 10 per cent per year
in the level of the capital outlay ever the 196l/l982 fiscal year.
amount to between 110-1 ^iO nillion Kaloii,
vt 1>61 prices,
This would
in oach of the next three
years.
He expressed his Government's concern about the portions of the programme
which remained unfunded,especially those concerning the development cf water
resources; rural infrastructure,
works.
agriculture,
sduoation and labour-intensive public
19.
The meeting expressed appreciation to the G^ernment uf Lesotho for presenting
useful and concise documentation, and for the clarity and comprehensiveness of the
introductory statement made by the head of the Lesotho delegation.
It also expresses
general appreciation for the development ^oals and ."hjoctives stated, especially the
efforts to improve the standard of living -d' ure rural population.
20.
The meeting had an extensive discussion on the bac'ic strategy and other aspects
of the agricultural development progra^inc-• . Clarifications were sought on a number
of issues, including the- relative importfjicc of rho bru:io services approach' compared
with that of mechanized fanning;
the; possibility -:f implementing an effective
producer price policy and of achieving1 ^elf-sufficiency in food given the
fron the Republic cf South Africa;
competition
The implications of the; 1380 Land Act for rural
a/coiie1. 104/6
pago 24
21.
The head of the Lesotho delegation stated that the basic agricultural services
project
and the mechanization programme were mutually complementary.
was essential to provide
technical
support and credit
encourage him to use better techniques?
to bring about a rapid increase
conditions in the
22.
whereas the
in the
latter was necessary in order
in agricultural production given the
on food inportsj
he
the C-cvemmonb was
shortest possible time.
imports,
Although "the
stated that
initial
decision of the Republic of South Africa to
indigenous products
Customs Union.
developed.
there were
climatic
could mere
In the medium term,
At present, however,
in view of Lesotho'n
committed to achieving self-sufficiency
costs of preparing the
and building the agricultural infrastructure had been high,
after the
erratic
country.
On the question of food sclf-sufficiency,
dependence
The former
to the farmer and thereby
impose
surcharges on food
easily compete with those
therefore,
soil
it had been found that,
from the
an efficient agriculture
could be
owing to poor' rainfall .and severe frosts,
shortages of essential commodities,
and consequently food aid would "be
required.
25.
Commenting on the Land Act,
the head of the Lesotho delegation stated that this
legislation had been well received by rural people
as it had eliminated the past
insecurity of land tenure by providing long-term leases.
The new power of the
Government under the Act to designate certain areas for development would help to
bring about a wide range
of the
of rural
quality of livestock.
important
as
sales cf mohair generated a
contributed substantially to the
promote rural growth
income
he
significant
of farmers.
including the
stressed,
volume
improvement
were particularly
of foreign exchange
and
The Act would also help to
centres paid thereby act as a catalyst for rural development,
With respect to the problem of
including land use planning,
were being undertaken.
24.
development projects,
Such improvements 7
soil erosion,
he
stated that a number of measures,
and grazing management
Referring to the Highland Water Project,
ho
and afforestation programmes,
stated that
at present the
project
was at the feasibility stage.
It had been conceived as a national project'to be
operated entirely by the Lesotho authorities.
While the Republic of South Africa
would be the major client fcr the purchase of water. cX the present stage it was
very difficult
to
specify whether there
would b^
any financial
comiitnenx
on the
part
of that
25*
In reply to a question concerning the way in which rural communities were
organized so
country.
that
the head of the
they could participate
effectively in the
development
process,
delegation stated that heavy reliance was placed en village
committees and other grassroots organisations.
Through them the people were able
not only tc determine their own priorities but also to make concrete contributions
to local programmes.
26.
Several delegations expressed the view that while !;he Customs Union night be
advantageous in the short tern,
its advantages were not
long-term economic development,
and possibly some degree of protection would be
so evident for Lesotho's
necessary.
The head of the Lesotho delegation stated that the pros and cons of the
Union had been evaluated,
While attempts were being made to improve the terms of
the agreement, wherever possible efforts were bein{.' made to move away from it.
The
negotiations for joining the proposed preferential trade area of Southern and
East African countries was an indication of that endeavour.
In that respect, he
A/C0I1F. 104/6
also
stated that efforts Hero being made
and reduce dependence
on th :
to id. den
the revenue "base
revenue from the Customs Union.
of the Government
Despite the
high income to:: rates, it was proposed to introduce a number of now tcxes
rales tax and an animal tax.
27-
already
such as a
The neeti:"../ r:cc an extensive discussion :n issues relating -to employment}
and ifho
educational
the Government
to
system,
create
Information va=s
adequate- orrcloymeiy:
sought
abou'
for Migrant
measures
The he.ad of the Lesotho
concerned, abouu
the
South Africa's policy of
labour returning
techniques and the
thai
iron the
Concern vas
the C-overnmoi1.i. va;: deeply
of increas-iny unemployment
iu view si
!~he Republic
introducing rvtc:^ativu in the ninefi and of roplaoino
labour 'by labour frcr. the
vsre
o'elo^aticr. stated
prospects
oo-called liou.elond::.
developnon!; of
snail-scale
trainin,
contemplated "by
Republic of South Africa and to lee^p trained personnel from emi^rati;^ .
also expressed about the hi^h drcp-ou^" rater1 in schools,
28.
Iho use
of
Lesotho1
of l.obwur-inten^ive
indno:rieo o,nd cottage
induotrieo
"i;horefore beinoj on^ouro^ed in .Lesotho and ex tended ro nz\; areao in order to
alloviai"'-= uneroployi:ienl.
The ;ibrain drain" of skilled ncnpoorer \;:\^ negligible,
r ij wo-laries vsre r>.o\: much more competitive in LeoothC',
Referring to tjie
howover*
high drop-cut rate in school^ he stated that the poor teacher/pupil ratio iras
undoubtedly -.
were
contributory factor.
bein^ :uo,J.e
to improve
the
Tl.^e
difficulties vere *:V:v7 jq^/jv.tl and efforts
curricula;
t^' ro.ise
the
quality of tho teaching
staff
and to increase" !;heir niLiber.
29*
Several delegations: aslced i.\or j.'v.rther details
prograiririG
rnd the ineasures beinp
taken
hha"^
the
'>■;
of
encourage
accent
i"/ie r>ri:nary heo.lth,
family planning.
of the health
the Lesotho delegation
stored
Apurt fron ;;e:u:rol iixnmizatiou and nutrii;i-nal profrrainnes?
o. soibntantiai training; pro^.rvu.iic- -.-/as bein^r underta]-cenT
oaro
care
The head of
preventive medicine.
pre^raxne \7aa
witJi emphasis" on the
30.
by
support
The ro;feroncLseme
tiiis
in the
deleg'ati^nsj
^n
training
f~f paramedical rvl.aff for fry--- r>;ral areai'..
I11, t^e n.o.hter '".I fomily plrjuiin^",
main e-.ipho.Gis "/ao on educati-in.
.lattjmal and child health centres had been
Gsvfblished to
tiie
educa";"ienr.l procos,,.
^/antry present'-otien
!-•:■ the rele
.rhioh ;,s'-:el for further:1 inf :rm '■ion
of vrmen
on the
i:;-:,o
sx;.b,}ect.
corauended
The lecjj.
of the Lesotho delegation stated "^h-'.t v.',:.v;r. vad a prominent role to play ir, the
o.evelop;ient
of the
country.
■"ctiviti.GS cir aorir-u]_ ti^re
pif.
31.
Their partieiprf ion was be inf extended-from- sacl:
ro^d trie bnildi:v
of .Oeo-lor roads
ir-iportancG
of "the
head of
the
tourisiii and i-lio
r-r:ctur was bein:.
yZ,
ouch
as
tourisi:: sector as an earner of foreiooi exciiouiire was
stressed by some cole^rtion^ an^. fur-her details about
The
cr> nev; areas
and poultry production as '^11,
The
I-i.setl"o
."'ele^ti^?-! soid that Iri^h
necessary infrastructure
this
sector vere
sought.
priority -;c-,3 bein^1 ai^'en to
required fo-r "'he
developvoont
-f this
c/.-eat^-1.
8ever-.l delegations asi:ed -,;hat
co-operation.
ul-ns The Go^emm-:o:t hr,C-
Tie head of the Lesotho
"to promote regional
ielcoatio'H stated That Lesotho was actively
participating in voriovs r^reas of the prooraune of
the
Southern African Development
Co-ordination Conference (SAI)CC;. particularly th-:,(;e concerned with food security
and transport
and counuj-iicatien;:,
In aodition?
o,ctively in the proposed preferential tariff
it was
areo .
"
the
inception
to participate
a/cow. 104/6
page 26
33The meeting had en extensive discussion on issues related to the planning and
implementation capability of the Government and the over-all absorptive capacity of
the economy.
In view of the fact that many previous targets had not been achieved,
further details were sought about the measures being taken by the Government to
improve the situation in that respect,
34.
The head of the Lesotho delegation stated that the problems had been reviewed
and bottlenecks identified with a view to improving the situation.
The planning
machinery had been strengthened and placed under the direct authority of the
Prime Minister.
The over-all statistical system was being improved and updated.
In addition, the capabilities of certain key sectors, such as construction, had been
improved.
As a result of these measures, projects were now being implemented at a
much faster rate.
35.
One delegation requested the head of the Lesotho delegation to comment on
Lesotho's experience in international co-operation.
In reply, he stated that
Lesotho had had an extremely good relationship with its development partners.
External assistance had increased sharply ever the years, and the -achievement of
high growth rates in the past was a reflection of the great value of such assistance
in putting the country on the path to self-reliance.
36.
The representatives of several developing countries stressed the importance of
and potential for technical and economic co-operation between Lesotho and their
respective countries in the context of the Arusha Programme of Collective
Self-Reliance.
37- The representatives of several international organizations described their
efforts to assist the development of Lesotho and stated that they were ready to
continue and intensify their assistance in their respective areas of competence38.
In conclusion, the head of the Lesotho delegation stated that his country had
high hopes for the Paris Conference and that, while pledges were not expected, he
hoped that something definite in the way of commitments would emerge from it.
39. The participants agreed that the review meeting had resulted in a useful
exchange of views.
This exchange would further strengthen the spirit of goodwill
and the positive interest of all the partners in the development of Lesotho as
they sought to assist the country to achieve its development goals on a selfsustained and self-reliant basis.
A/COHF.104/6
page
27
Anne:;
Participation in the review mooting for the Kingdom of Lesotho
The following countries and international organizations among those invited
to participate in the review meeting were represented^
Countries
Austria
Belgium
Canada
Denr.iark
Egypt
France
Germany,
Federal Republic of
India
Ireland
Italy
Japan
Kuwait
Libyan Arab Janahiriya
Netherlands
Nigeria
Switzerland
United Kingdom of Great Britain and Northern.
Ireland
United States of America
Yugoslavia
United Nations bodies
Department
of Technical Co-operation for Development
Economic Comission for Africa
United Nations Industrial Development
Organisation
United Nations Children's Fund
United Nations Development Programme
United Nations Capital Devolopoent Fund
.
.
.
-
■
United Nations V'^luJiteors
International Trade Centre UITCT/^d/GATT
Specialized agencies
International Lo.bour Organisation
Food raid Agriculture Organisation of the United Nations
United Nations Educational, Scientific and Cultural Organisation
World Bank
International iionetary Fund
International Telecommunication Union
World Heteorological Organization
Intergovernmental ■;^^iscvtions
European Eoononic Comivauii >.y
a/gohp.104/6
paffe
28
■rri/
V.
1.
As part
REPORT OF TIE ?d]VIEV 1EETIHG FOR MALAWI-
of the preparations Tor the United Natrons
Conference
on the Least
Developed Countries, and in accordance with resolution 5 (i) adopted in
February 1980 "by the Preparatory Committee for
as well as with
the
conclusions
uho Conference at its first
and recommendations adopted at its
session,
second cession
in October l?80 (a/C0H£\1O4/PC"/95 2/ chap. II), which wire endorsed by the
General Assembly in resolution 35/205 of 16 December 1900.
Malawi took place at' the Palais deo ITationc,
meeting was
chaired by fir.
J,
Pronic;
Deputy
report was adopted on 25 June 1901,
The
Genevas
the review meeting for
on 22 and 23 J"ane 1981.
Secretary-General
of U1TCTAD.
countries and international
The
The
01-ganizations
that participated in the meeting are listed in the anne::.
2.
The main document
considered was
the renort prepared "by the
Government for
uhc
review meeting (country presentation of Malawi. LDC/CP/30). The report was available
in the original language (English); a summary of the report prepared by the
secretariat of the
(A/COUF.IO4/SP/3O).
3.
Conference was
The preparation of the
circulated in Arabic,
English and French
country programme and its presentation to
the review
meeting were a major step in the pre-conference activities.
4.
to
The head of
the
delegation of IIalawi3
the European Economic
Community and to Norway}
statement.
Community,
to five
presented his
The main points
Ilr, D.P.V.
ox
the
Kachilcwo,
Ambassador of Malawi
covntries members
of the
country's programme in an introductory
of his statement are summarize£ in paragraphs 5 to 10
below.
5.
He described the progress made by I'lrJawi since independence in 19^4*
During
the 1970s Llplawi had achieved a growth rate of noro than 3 per cent per annum
per caioita.
However, since 1973.. the combination of a number of unfavourable
factors, such as the weather, falling prices for agricultural exports-and rising
costs
of fuel,
in the
had led to a deceleration of
deterioration of the
the
country's terras 01
economy.
trade.
Those factors had resulted
The rate
of growth of
agricultures manufacturing and construction haC declined, the rate of consumption
had increased and the savings rr.te had declined, tlrun weakening the capacity of the
economy to finance investment from domestic resources and increasing the deficit on
the current account of the balance of payments-
6.
The Government had taken z. number of arsterity measures' since 1978-1979;
including tax increases, reductions in recurrent and capital budgets, restraint
of imports and low credit ceilings.
In the i;,eaiitine, the resource gap had been
covered by IHP credits,
on commercial
terms;
a
by
the drawing down cf foreign resets and foreign borrowing
structural
adjustment loan was alco being negotiated with
the World Bank.
l/
Original English.
2/
See also Official Records of the General Assembly, Thirty -fifth session
Supplement Ho. 45 (A/35/45)» Part Two.
A/C0HF.104A
oa/rc
7.
The strategy of 1-Jhlawi for the next 10 years nas to attempt to transform the
economy so as to attain cell-sustained development in the 1990s through the gradual
monetisation of the subsistence sector, reduction of the dependence on expatriate
expertise, strengthening of the nation's resources of technical and managerial
manpower and enlargement of its potential
for profitable foreign trade.
Provided that
the required external recourceo -acre made available, it was hepod to raise the
growth rate of GDP from about 6 per cent in 1903 (after the. recovery from the present
downturn) to about 8 per cent by the qvjX of the decade.
S. ^It was expected that the private sector would, ao in the past, generate moat
of the growth; with public investment fining at the spreading of economic development
to all areas of the country, in particular the subsistence sector. The proposed ■
public sector investment programme for the 1930s would increase fro:;. 9.6^per cent of
GDP in 1931 to about 14 per cent by 199C
The investment would be concentrated
on the encouragement of smallboleor production through the expansion of the
National Rural Development Programme and export crop -projects. Infrastructural
development would continue to conm?.nd a high proportion of public investment
expenditure, whereas social service? would claim a much higher proportion
(20.6 per cent of the total) than in the past.
The Government v.-oulc also encourage
private^investment in industry, particularly agro-industry, and exolore
possioilities of reducing dependence on imported fuels.
9.
It was estimated that Ualr.vi would need :r;orc than 5o billion Malawi Kwachas
(:^US 6.15 billion approximately) to achieve its programme for the 1930s„ 90 per cent
of which would have to be provided by external sources.
10. On the subject of aid moralities, the head ox the delegation welcomed the
willingness of donors to consider introducing greater flexibility into their aid
programmes for tho least developed countries.
In the care of I-3alawi, he considered
that the major part of the external financing required should be in the form of
grants,, so that debt service would not hamper development. Ee also appealed for a
reduction in the counterpart contribution to donor-uivpported pr/
11.
The meeting expressed appreciation c? the quality cf t'e counts presentation
as well as of the introduction c-/ the hor.d of tii- :tlawi delegation/ Several
delegations commended the pa<-^ good economic performance of Malawi, although some
concern was expressed about the trend of economic decline and the wio.ening°of the
current account deficit since 1973. Regarding the size of the expenditure envisaged
under ths Substantial Hew Programme of Action for the 1930c ;;,- reflected in the
country presentation « in comparison with the Actual Five-Year Development Plan -
one representative, however, rai<-. that thir wars rather ambitious.
In"response the
heaa of r,he Malawi delegation said that the expenditure unaer the Substantial
ITew Programme was based on the oxoectation of e much larger flow of external
resources.
If the expected increase in the flow of aid did not materialize, the
austere tfive-Year Development Programme would be adhered to,
12,
The meeting commended the priorities cat in the country presentation,
particularly the special emphasis put on agriculture} in which the smallholder
subsector played an important role.
The head of the'^rlcwi delegation said that
agriculture would continue to play a key role in tho over-oil development
strategy, although in the longer tern: its share in COP would tend to decline as
other sectors expanded.
A/comr.104/6
13.
One delegation requested more information on the planning machinery.
The heaa
of the Malawi delegation said that the planning process -was essentially decentralized
and that the main departments concerned with planning were the Economic Planning
Division and the Development Division, 'ooth of which were in the Office of the
President and Cabinet.
The former was responsible for advising en economic policy,
whereas
the latter was an implementing agency.
14.
The representative of the V/orld Bari; supported both the development strategy
and the over-all economic performance of Llalawi.
With reference to agriculture, he
said that smallholder agriculture had shown steady growth but that it;:) performance
should "be improved.
He considered that the estates subsector was efficient and
that diversification should be encouraged although possibilities wore limited.
Referring to the country's recent balance-of-paynentp problems cnO. the Governments
effort to reduce the flocal imbalance, he confirmed that a structural adjustment
loan to help ease the country's current problems was at an advanced stage ox
consideration.
He said that in the main the Br.nl: supported the country's original
five-year investment programme.
15.
The representative of the II'IF commended the country's past growth performance
but also referred to the recent bc-lancc—ci-payncntr problems.
He outlined the
package of support measures the Fund liao undertaken since 1979 to help the country,
and said that with the economic stabilisation policy now being pursued by the
Government the Fund anticipated an early recover:/ of the economy.
He sale1, the Fund
would continue to work closely with Ilalaui.
16.
Several delegations requested i.iorc information on various aspects of
agricultural development and rural oovclopuen:.
/fie head of the Malawi delegation
said the main vehicle for r.gricultural development was the National Rural Development
Programme, which v.zc essentially focused on the assistance of smallholder farmers
through "the provision of essential support services. As regard;; increased fooa
production, he said that it :-iac the GovcrnTient 's intention to continue pursuing
a policy of oelf-sufficiency in food s-z well a;;: being a not e::pcrtcx of food to
neighbouring countries.
In support of ilia program;".-]e noro intensive methods of
cultivation were going to be us'id; .Mid the u^s of -gricvatural input;:, particularly
fertilizers, was going to bo expanded. Furthermore, the food crop base would
"be enlarged through the cultivation of other typen ox
crop;:.
. Vtaerer.3 fooo. storaee
facilitiee iicd already been prov.Uea at :;he national lovrl, mo-e and better storage
faoilitiec at bhe village level would bo provided in oroer to minimize wastage
and loafien of
fooo.
17.
There was considerable potential for livestoci: development, wo. the head of the
Malawi delegation said that the e^loitcvtioii of thin potential wan bo be accelerated.
One of ihe important m^acures being xuidcrtaUen in this a.-o.i v;a;.i jhe^'trengthening of
the aiseaoe ■control prograirine.
Anothoi- related area of yome potential was fiGnerio:;
development, in which intensive crplor:'/cicn r.nd rerearoh was being unaertaken.
This
effort' to diversify the agricultural sector, \:hich at present waj based mainly on the
production of tea and tobacco, includeu tli3 o::.)anoion of a rar^e or other cash crops
such as coffee;. groundiTitG3 rioe, oac;he>, nubn; nac^damia nutc. vegetables and fruit.
a/coiet, 104/6
pago
■)!
18.
Another important area of agricultural policy whore the Government was talcing
serious initiatives related to commodity price policy.
Price incentives were "being
provided to fanners and3 in this connection, a yearly review of producer prices was
carried out in order to keep the difference!: "between farm-gate prices and world market
prices
on a reasonable
scale.
19.
With reference to rural development, the hoad to the Malawi delegation said that
one of the several measures that had been undertaken was the establishment of rural
growth centres to provide basic infrastructure facilities and services.
These
included market and health facilities,
roads and schools.
20.
Several delegations requested moro information on the potential for further
indtistrial development in the non-agro-based oubsector.
The head of the Malawi
delegation said that although agro-based industries would continue to play the
major role, some initiatives had already been taken to establish other types of
industries.
In particular reference was made to the Viphya Pulp arid Paper Project,
a planned fertilizer plant, a cenont factory and other planned units to produce plate
glass, bricks and tileo, as well as a tannery.
Furthermore, it was planned to
establish more centres for small-scale industries, including handicrafts, which, as
some representatives observed,
were important generators of employment.
21.
In response to a question about the Governments initiative to encourage
foreign private investment, the head of the Halawi delegation said the Government was
pursuing a favourable policy in this respect which made provision for a range 01
investment allowances, permitted a modified restriction on the repatriation of profits
and gave guarantees against nationalisation. Furthermore, the consistently liberal
policy of the Government and the facilities it provided in the form of
infrastructure and cervices, low labour costs and raw materials, wore a good
inducement to private foreign investors.
22.
One representative referred to lirlawi's narrow export base and the need to
diversify the structure of exports.
The head of the Malawi delegation said that "the
diversification programme referred to earlier in areas of agriculture and industry
•W&L
rn. effort towards
solving this problem.
23.
Several delegations referred to the particular problems which Malawi faced
as a land-locked country and bo the need tc improve the transit transport
infrastructure in the region and the internal North-South transport links.
In that
connection, they said that .the Southern African Development Co-ordination Conference
(SADCC) could provide a useful framework for implementing transport projects in the
area5 from which Hal an i would benefit.
One ■■:£ the delegations emphasized the need
for greater use of railways and waterways.
Some representatives asked what Malawi
was planning to do to improve and diversify its transit routes to !;he sea.
The head
of the Malawi delegation referrred to the measurer; that had been taken to strengthen the
road and rail link to Zambia and Mozambique.
Plans were also under way to establish
links with the United Republic of Tanzania.
The delegation also referred tc the
important role which the new ICamuzu international airport would play in the
strengthening of the country's links with the outsido world.
0I1F. IO4/6
24.
Some delegations referred tc Malawi' s heavy
dependence
en imported fuel and. the
need to develop alternative sources of energy.
They said that, with the country' s
vast bydropower potential, there was considerable scope for such development.
One
of the delegations referred to the project to produce ethanol from molassec and
asked for .more information on the effort;- to expand sugar \.voCaction.
He also
1*0commended the establishment of small hydroelectric power stations in the isolated
northern part of the country, a measure which woulc contribute significantly to the
reduction of fuel transportation co^t-;.
The head 01 the Malawi relegation said that
a transmission line was being extended to the northern region and that studies would
he undertaken to evaluate the potential for the development of email hydro-electric
plants.
Furthermore, he confirmed that the Government was indeed making on effort
to reduce the dependence on imported fuel and that ethanol production wac one of the
means
of doing so.
25.
One representative asked about efforts to develop the mineral potential.
The
head of the Malawi Jeiegation saidj although there were few known minerals in Malawi,
plans were under way to
26.
carry out extensive mineral
surveys.
Several delegations emphasized the serious lack of skilled manpower in Malawi,
particularly at
the technical and management levelr.
The head 01
the Malawi
delegation stressed the groru and increasing importance which the Government
attached to the development of the cov.nbry's manpower resources.
He outlined some
of the measures that the Government wrs tailing to overcome this development
constraint,
and referred particularly
to tho efforts
that were being made to
strengthen the educational and training infrastructure and to promote the development
of professional
and technical
;.kills.
27.
One delegation asked for more information on the Government's wage policy.
The head cf the Malawi delegation said that the Government pursued a policy of uage
restraint which, inter alia, was intended to curb rural urban migration and to
avoid cost-induced inflation,
28.
With regard to population policys some representatives asked - in view of the
population pressures on the land - about :he Government's t" inking regarding
family planning.
The head cf the lialawi lolegation /uid that there uas no
deliberate policy on birth control but that a higher standard of living would
create a greater consciousness of the need for small-sized families.
29.
One of tbe delegations stressed the need for regional balanced development.
The head of the Malawi delegation soil that the transfer of the capital to Lilongwe.,
the National Rural ^Development Programmes and the extension of the transport network
in all regions were indications of the importance the Government attached to balanced
regional,
development.
30. As tc the question of political and economic disengagement from South Africa,
which had been raised by one delegation,, the head of the I'lalawi delegation said that
the political position of the Government of Ilalawi had been made absolutely clear
in the United Nations aiv< at the OAU in Acudc; Ababa.
As regards economic relations,
he stated that the reasons for his country's relations with the Republic of South
Africa viere similar to those whicl: forced such relations upon other southern African
countries and that, for the future, the vehicle for less economic dependence on
South Africa was OADCC!, of which II-l,wi v;au a staunch member.
He added that Malawi
would act as host to SADCC in Iloveirjljer 1?31.
A/COHF.104/6
page-
yy
31.
Some delegations referred to the important role which SADCC could play in the
evolution of the development process in Malawi,
The head of■"the Malawi delegation
said that Malawi's country presentation contained several projects of a regional
nature which would he appropriately funded under the SADCC programme.
32.
Some delegations briefly referred to thoir aid programmes for Malawi, making
references to forecasts of planned aid flows and to the conditions of the
financial assistance provided.
33.
The representatives of several developed countries expressed their intention of
undertaking or continuing some concrete activities in Malawi.
34*
The representatives of the developing countries stressed the importance of and
potential for technical and economic
respective countries in the
co-operation "between Malawi and their
context of the Arusha Programme of Collective
Self-Reliance.
35The representatives of several international organisations described the
efforts of these organizations to assist the development of Malawi and stated that they
were ready to continue and intensify
competence.
36,
i;heir assistance in their respective areas of
The participants agreed that the review meeting had provided an excellent
opportunity for a. fruitful
exchange of views on Malawi's development programmes.
a/cohp.104/6
page 54
Annex
Participation in the review meeting for Malawi
The following countries and international organizations among those invited to
participate in the review meeting were represented:
Countries
Algeria
Ireland
Argentina
Italy
Australia
Japan
Austria
Kuwait
Libyan Arab Jamahiriya
Belgium
Brazil
Mexico
Canada
Netherlands
Cuba
Nigeria
Egypt
Romania
Prance
Spain
United Kingdom of'Great Britain
Germany, Federal Republic of
and Northern Ireland
India
United States of America
Iran
Venezuela
Iraq
Yugoslavia
United Nations "bodies
Economic Commission for Africa
United Nations Industrial Development Organization
United Nations Development Programme
United Nations Capital Development Fund
United Nations Centre for Human Settlements (HABITAT)
International Trade Centre UNCTAD/GATT
Specialized agencies
International
Labour Organisation
Pood and Agriculture Organization of the United Nations
United Nations Educational,
Scientific and Cultural Organization
World Bank
International Monetary Fund
Universal Postal Union
International Telecommunication Union
World Meteorological
Organization
Inter-Governmental Maritime Consultative Organisation
Intergovernmental organizations
African Development Bank
European Economic Community
. 104/6
page
Appendix
Notifications of
the meetings and list of countries and
organizations invited to each of them
35
CONFERENCE DES NATIONS UNIES
UNITED NATIONS CONFERENCE
SUR LES PAYS LES MOINS AVANC^S
0N THE LEAST DEVELOPED COUNTRIES
TDO 330/17(2-4)
NOTIFICATION
Individual review meetings
for the least developed countries
of Southern Africa and for Haiti and Guinea-Bissau
Geneva,
22-26 June 1981
Pursuant to the conclusions and recommendations adopted "by the
Preparatory Committee for the United Nations Conference on the Least
Developed Countries at its second session (A/CONF.1O4/PC/9, chapter II) and
endorsed "by the General Assembly in its resolution 35/205 of 16 December 1980,
individual review meetings for the least developed countries are to "be held
"between March and June 1981.
Accordingly,
the individual review meetings for the least developed
countries of Southern Africa (Botswana, Lesotho and Malawi) and for Haiti
and Guinea-Bissau will take place at Geneva during the period 22-26 June 1981.
The series of review meetings for these least developed countries will open
at 11 a.m. on Monday, 22 June 1981, at the Palais des Nations.
Each least developed country mentioned above has informed the
Secretary-General of the United Nations Conference on the Least Developed
Countries, in accordance with paragraph 8(b) of the conclusions and
recommendations adopted by the Preparatory Committee, of its decision
regarding the States and multilateral agencies which it wishes to invite to its
review meeting.
The countries and multilateral agencies which %are hereby
invited by each least developed country to its review meeting are listed in
annex I.
The individual review meeting for each least developed country will have
before it the country's presentation in the original language of submission
(English or French).
The Conference secretariat will endeavour to provide a
summary of each presentation in Arabic, English and French.
A timetable for
the individual country review meetings is attached as annex II.
The Governments of the least developed countries of Southern Africa, the
Governments of Haiti and Guinea-Bissau, and the States and multilateral
agencies invited by them to the individual review meetings, are requested to
submit to the Secretary-General of the Conference, by 15 June 1981, the names
of their representatives, alternate representatives and advisers.
sent,
All communications concerning representation at these meetings should be
in duplicate, to the UNCTAD secretariat, Meetings and Credentials Unit,
Palais des Nations,
CH 1211 Geneva 10.
Corea
Secretary-General of the
United Nations Conference on the
Least Developed Countries
20 May 1981
TDO 350/17(2-4)
AKNEX I
States invited by the
3 least developed countries
of
Southern Africa to their individual
3 3 •%
m m 1
ffl (E J
country review meetings
and by
Haiti and Guinea-Bissau to
their
review meetings
(see note page 5)
. > 5 1
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0
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1
m
? ?J
Algeria
Alge"rie
j
-
-
X
-
X
-
-
X
X
X
-
X
X
X
X
-
X
X
X
X
X
X
X
X
X
-
X
X
X
-
-
X
-
X
X
X
X
X
X
-
-
X
-
X
-
-
X
-
X
-
-
X
X
X
-
-
-
-
X
5lj»JI
Argentina
Argentine
Australia
Australie
Austria
Autriche
|
^|
Belgium
Belgique
I
f.fc |.
Brazil
Bre*sil
»
Bulgaria
Bulgarie
1
ajLii*
Canada
Canada
China
Chine
09—11
Cuba
Cuba
"—o*
Czechoslovakia
Tchecoslovaquie
1
*flfcl-*Ai
Democratic People's Republic of Korea
Rep. populaire democratique de Core"e
a
.u » * II ZJs\^j ^Jl L-jj^ S^5^*a-
'
- 2 -
States invited by the
3 least developed countries of
Southern Africa to their individual
country review meetings
aJ a!
review meetings
(see note page 5)
' 5 a 1
gid ro5 -Z1
j,
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Denmark
Danemark
X
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X
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X
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X
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-
X
-
X
X
X
X
X
X
-
-
X
-
X
-
-
X
-
X
-
X
X
-
X
X
-
X
X
X
German Democratic Republic
Germany, Federal Republic of
Allemagne, Re"publique fe"de"rale d1
m
I
-
■■-,**$
Re*publique de"mocratique allemande
pq
I
X
France
France
pq
X
-
Finland
Finlande
Lesoth
X
Egypt
Egypte
m
-
f
Hungary
Hongrie
Iceland
Islande
India
Inde
Iran
Iran
-
Iraq
Iraq
-
-
X
-
X
-
X
X
-
X
Ireland
Irlande
'%
"T
at to J
and by
Haiti and GuineaTBissau to their
m
■
1
*
I
I
**
States invited by the
3
least developed countries of
Southern Africa to their individual
country review meetings
and by
Haiti and Guinea-Bissau to their
review meetings
(see note page 5)
« 5 il
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Japan
Japon
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X
-
X
X
-
X
-
-
X
X
X
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X
-
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-
X
-
X
X
X
X
X
X
X
X
X
-
-
X
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-
-
X
-
X
Kuwait
Koweit
Libyan Arab Jamahiriya
Jamahiriya arabe libyenne
i
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Luxembourg
Luxembourg
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Mexico
Mexique
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Netherlands
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New Zealand
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Nigeria
Nigeria
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Norvege
Poland
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Portugal
Portugal
1
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Italy
Italie
*
fq pq —1
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- 4 -
States invited by the
3 least developed countries of
Southern Africa to their individual
country review meetings
and by
m
CO
t
Haiti and Guinea-Bissau to their
review meetings
o
Si Si
tn
(see note page 5)
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Roumanie
-
-
X
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X
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-
-
X
X
X
X
• X
X
X
X
-
X
X
X
X
-
-
X
-
X
-
X
X
X
X
X
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X
X
X
Saudi Arabia
Arabie Saoudite
Spain
Espagne
U
*
Sweden
Suede
Switzerland
Suisse
i
^j*^.
Union of Soviet
Socialist
Republics
Union des Republiques socialistes
sovietiques
United Arab Emirates
Emirats arabes unis
United Kingdom of Great Britain
and Northern Ireland
Royaume-Uni de Grande-Bretagne et
d'Irlande du Nord
1 .wJ^lj j-h-^l \*>U*sJ S **uJ1 ttUJI
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1
1
States invited by the
3 least developed countries
of
Southern Africa to their individual
to <6
country review meetings
and by
Haiti and Guinea-Bissau to their
review meetings
(see note below)
SSi
01
O
"+> -P
o o
United States of America
Etats-Unis dTAme*rique
X
Venezuela
Venezuela
-
.f;/VIS Wt-ll.-.I.Mj"
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Yugoslavia
Yougoslavie
Note:
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X
-
X
X
X
X
X
X
X
The Economic and Social Council, in its resolution 1981/34 of 8 May 1981,
decided to add Guinea-Bissau to the list of least developed countries.
Multilateral agencies
of the United Nations High Commissioner for Refugees (UNHCR)
Nations Children1s Fund (UNICEF)
Nations Development Programme (UNDP)
Nations Environment Programme (UNEP)
Nations Industrial Development Organization fUNIDO)
World Food Council (WFC)
World Food Programme (WFP)
United Nations Institute for Training and Research (uNITAR)
Office
United
United
United
United
International Trade Centre TJNCTAD/GATT (iTC)
General Agreement on Tariffs and Trade (GATT)
Pood and Agriculture Organization (FAO)
Inter-Governmental Maritime Consultative Organization (IMCO)
International Civil Aviation Organization (ICAO)
International Fund for Agricultural Development (IPAD)
International Labour Organisation (lLO)
International Monetary Fund (IMF)
International Telecommunication Union (ITU)
United Nations Educational, Scientific and Cultural Organization (UNESCO)
Universal Postal Union (UPU)
World Bank (IBRD/IDA)
World Health Organization (WHO)
World Intellectual Property Organization (WIPO)
World Meteorological Organization (WMO)
(see note page 7)
Haiti and Guinea-Bissau to their review meetings
and by
invited by the 3 least developed countries of Southern Africa
to their individual country review meetings
BotMswan LeMh
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ENGLISH ONLY
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Secretariat:
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Tt
-VTT
Elote:
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—
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_
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-
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-
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-H
organizations;
those which participated are listed in the annex to the report of the individual meeting concerned,
Invitations were also extended on behalf of the Governments of Haiti and Guinea-Bissau to non-governmental
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-
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3
a
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m
•H
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in its resolution 1981/34 of 8 May 1981, -decided to add Guinea-Bissau to the
list of least developed countries.
'The Economic and Social-Council,
International Investment Bank (IIB)
Cslamic Development Bank (IDB)
DPEC Fund for International Development (OPECFIIND)
Organisation for Economic Co-operation and Development (OECD)
Drganization of African Unity (OAU)
[nter-American Development Bank
Commission of the European Communities (EEC)
and European Development Fund (EDF)
Council for Mutual Economic Assistance (CMEA)
European Investment Bank (EIB)
^rab Fund for Technical Assistance for African and Arab Countries
irab Fund for Economic and Social Development (AFESD)
irab Bank for Economic Development in Africa (BADEA)
Lfrican Development Bank (ADB)
Igency for Cultural and Technical Co-operation (AGECOOP)
"
-VTT
X
Office of the Director-General for Development and International Economic Co-operation
Economic Commission for Africa (ECA)
economic Commission,for Latin America (ECLA)
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X
X
X
X
X
Department of International Economic and Social Affairs
Department of Technical Co-operation for Development
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o
o
Bot Les
CO
Haiti and Guinea-Bissau to their review meetings
(see note below)
S
and by
Centre for Human Settlements (HABITAT) (UNCHS)
Centre on Transnational Corporations (UtTCTC)
Jnited Nations
Multilateral agencies
invited by the 3 least developed countries of Southern Africa
to their individual country review meetings