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Statement by

Mr. Gyan Chandra Acharya

Under-Secretary-General

High Representative for the Least Developed Countries, Landlocked

Developing Countries and Small Island Developing States

Introducing

The

report of the SG on the implementation of the Programme of Action for the LDCs for the Decade 2011 to 2020 (A/67/88); and the report of the SG on ensuring the effective implementation of the functions of the

Office of the High Representative for the Least Developed Countries,

Landlocked Developing Countries and Small Island Developing States

(A/67/262).

Second Committee

Agenda item: "Groups of countries in special situations"

Under sub-item (a)

Wednesday 17 October 2012

10:00-13:00

ECOSOC Chamber, NLB

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Mr. Chairman,

Let me begin by congratulating you upon your assumption of the Chairmanship of the Second

Committee Bureau. My congratulations also go to other members of the Bureau. I have no doubt that, under your able leadership, the work of the Second Committee would progress to a successful conclusion. May I take this opportunity to assure you of the fullest cooperation of my Office in your work.

I have the honour to introduce to you the report of the SG on the implementation of the

Programme of Action for the LDCs for the Decade 2011 to 2020 (A/67/88) and the report of the SG on ensuring the effective implementation of the functions of the Office of the High

Representative (A/67/262).

Allow me to start, first, with the Report of the Secretary General on IPoA. This report reviews the recent trends and targets of the priority areas for action of the Istanbul Programme of

Action, highlights efforts deployed so far to implement its provisions, identifies challenges, and offers recommendations. My presentation will follow this structure. Also, while presenting the SG report, I will underscore major developments that have occurred since this report was introduced to ECOSOC last July.

Mr. Chairman,

Given the time lag in data production, the report of the Secretary General measures progress achieved in the past decade and analyses the current situation in the eight priority areas for action of the IPoA.

The SG report indicates that economic growth picked up very strongly in LDCs in the past decade but stood below the 7 per cent target set both in the Brussels Programme of Action and the IPoA. Economic activity continued to be vulnerable to exogenous shocks. Recent

DESA estimates indicate that LDCs’ GDP growth is expected to stand at 4.1 percent in 2012, a two-percentage point less than what was projected earlier this year.

While progress is slowly being made in various sectors, most LDCs did not witness a meaningful structural change, with the natural resource-based sources accounting for a growing share of GDP. Progress in building infrastructure and access to energy turned to be rather mixed. Expansion of mobile communication was impressive, while that of internet, electricity generation and all modes of transportation was moderate.

The incidence of poverty and hunger is still the greatest challenge in LDCs, despite reduction in the percentage of people below the poverty line. Agriculture output did not expand much in most LDCs. Food security seemed to have improved over the last decade, thanks to the consolidation of institutional measures such as social safety nets. However, the proportion of the undernourished in total population remains high in LDCs, standing at 30 percent. The reduction in world cereal production in 2012 and its attendant effects on internal prices might increase the number of the food insecure across LDCs. The situation is all the more dire in the

Sahel, where—according to FAO’s October 2012 Crops Prospects and Food Situation-- 19 million people are in need of continued assistance as a result of insecurity and armed conflict and localized flooding, among other things.

In the meantime, the share of LDCs in global trade increased. This trend continued in 2011 as suggested by a recent WTO Secretariat report. LDCs total exports of goods and services reached US$229.8 billion in 2011, which represented a 23.9 per cent growth over the 2010

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level. The increase in LDCs’ share in global trade is a welcome sign. However, it comes with some caveats. In fact, much of the growth in LDC exports was, for instance, basically driven by the boom in exports of minerals and commodities and low-skilled manufactured goods.

Sustainability of growth remains an issue for LDCs. The number of market access preferential schemes expanded, although their coverage varied. Stringent rules of origin, preference erosion and non-tariff barriers had limited their effectiveness. Moreover, infrastructure bottlenecks and limited supply response hampered the ability of LDCs to harness to full potential of these preferences.

I would like to highlight that WTO members agreed to streamline and facilitate the accession of LDCs to WTO. This agreement was formally adopted by the General Council on 25 July

2012. I am also pleased to report that Vanuatu joined the WTO membership in August 2012 and Lao PDR is expected to follow suit, when the General Council meets next week.

On human and social development front, most LDCs have made important strides towards universal primary education, gender equality and empowerment goals. Maternal, child and infant mortality rates and HIV prevalence rates still remain at high levels despite significant reductions recorded over the last decade. In particular, those LDCs affected by conflict have not been able to meet many MDGS.

Another commendable aspect was the fiscal space built during boom period, which enabled some LDCs to stage countercyclical response during the fuel, food price, financial and economic crises. In the face of currently rising food prices, very few LDCs have the same fiscal space they had before. Also, despite the success of HIPCs in reducing the external debt of several LDCs, 7 of these countries remain in or at high risk of debt distress according to the

2012 MDG Gap Task Force Report. This calls for continued international efforts to reduce the debt burdens of LDCs and other vulnerable countries.

On ODA, I would like to commend EU and Canada for reaching 0.15% target of IPoA in

2011 and 2010 respectively. Finland and UK reached for the first time the 0.2% target in

2010. However, I would also like to express concern over the overall decline in bilateral aid to LDCs in 2011, the first time in a decade. In view of the heavy dependence on ODA for the development works in LDCs, development partners should deliver on their commitments.

Financial and economic crisis should not be a factor for not fulfilling commitments, as the crisis disproportionately affect the poor in LDCs.

As called for by the Istanbul Programme of Action, issues of climate change, environment sustainability and disaster reduction received growing attention in LDCs and in global context. The Rio+20 Conference and its outcome document took up these issues, including green economy, within the broader framework of sustainable development. The “Future We

Want” underscores that it should be a priority for all to achieve simultaneously economic growth, environmental protection and social development in an integrated manner. As the priority areas of IPoA have been integrated into Rio+20 outcome and poverty alleviation is at the centre of sustainable development, implementing the outcome of Rio+20 Conference will contribute to the realization of the development aspirations set in the Istanbul Programme of

Action.

Key achievements in governance include continued commitment to the fight against corruption, improvement in budget execution and reporting and macroeconomic stability.

There is a need to do more to institutionalize progress in these areas, and make further progress in quota and voice reforms of BWIs.

The sum of all the above positive economic and social developments is that --for the first time--a growing number of LDCs, although a very few, have met the graduation criteria or are likely to do so in the years to come. Samoa is expected to graduate in 2014, after consistently

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fulfilling the graduation criteria for years. Equatorial Guinea, Tuvalu and Vanuatu continue to meet the graduation criteria, while Kiribati and Angola meet them for the first time. Some other LDCs are working on to develop strategies for graduation within the decade. Whereas graduation from the LDC category--in itself—constitutes a major achievement, there is a need to ensure the sustainability of progress, so that they do not fall back into the category and continue to get strong support from development partners.

Being cognizant of this, the IPoA requested the General Assembly to establish an ad hoc open-ended working group on smooth transition. This report highlights that stronger incentives are needed for graduating countries and the strengthening of the graduation process.

Development and trading partners should consider extending or gradually phasing out LDC specific support measures for all graduated countries in the areas of financial and technical support as well as trade. Graduating countries should be supported more efficiently in formulating, implementing and monitoring their smooth transition strategies, including by the

UN system. Furthermore, monitoring mechanisms of smooth transition strategies should be reinforced to guarantee the timely and full implementation of the agreed concrete measures.

New measures should provide additional reassurance for LDCs that they will not fall back in their development process due to abrupt withdrawal of LDC specific support. It is my expectation that the resolution on smooth transition, which will be negotiated in the Second

Committee based on the recommendations of the ad-hoc working group on smooth transition, would come out with an enhanced level of predictability and confidence in LDCs to move towards graduation.

Mr. Chairman,

The SG report also shows that the implementation of various provisions contained in the

IPoA has commenced. Individual member states--including LDCs and donor countries-- UN system organizations and other international organizations, parliaments, the private sector, the civil society and academia have deployed efforts towards that end.

Thanks to a strong political commitment, priority areas of action and broader visions of the

IPOA are being increasingly echoed in the national development plans, long-term visions of several LDCs. On the donor side, some have started to make reference to the IPoA in their strategic documents. A number of countries have also acted in the context of South-South cooperation by committing specific support packages in favour of LDCs.

The governing bodies of many UN system entities and other organizations called on these organizations to mainstream the IPoA into their respective programmes of work. In line with these commitments, some of these organizations have continued their normative and operational work to advance development in LDCs. Their interventions cover many priority areas of action spelled out in the IPoA.

My Office and UN system and other international organizations have reflected on the IPoA and developed a way forward for the implementation of the Istanbul Programme of Action by agreeing on the contours and content of a road map for implementation. A number of specific activities contained in this Road Map, for instance, the working group on the indicators to monitor, review and implement the IPoA, has been established and a set of indicators have been finalized.

Non-governmental stakeholders--such as parliaments, civil society and the private sector-have also started to contribute to the implementation of the IPoA.

Mr. Chairman,

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To conclude, the report shows that the first year of implementation of the IPoA has helped create a growing awareness of LDCs’ development challenges and a consensus, among the

LDCs and their development partners and the international community in general, on the need to address these obstacles. It has also been marked by efforts to mainstream the IPoA into

LDCs’ national development strategies and development partners’ cooperation strategies.

These efforts should continue and be scaled up in the years ahead to fully and effectively implement IPOA.

The first year of implementation also coincides with the preparatory process in the lead up to

Rio+20 Conference, the outcome of which took up LDC priorities and concerns in an effective and inclusive manner. The implementation of the outcome of this conference will also contribute to the achievement of the development aspirations contained in IPoA. This framework provides LDCs with the opportunity to leapfrog into a green and sustainable development path with strong support from development partners and technical and institutional support from the UN system.

As discussions on post-2015 Development Agenda and SDGs have commenced, it is imperative that LDCs and other vulnerable countries’ concerns and needs should inform the discourse on the future shape of global development framework. Issues such as building resilience, structural transformation, productive capacity--including infrastructure development and access to energy—and equity as well as environmental sustainability should receive greater attention in the context of specific challenges faced by LDCs and others in these areas.

Mr. Chairman,

LDCs would be able to fulfill their long-term development aspirations, if due consideration is given to develop productive capacity, including infrastructure and energy, promote access to knowledge and technology, improve delivery of social services, resilience building—in the face of multiple crises including food insecurity--and improved governance at all levels.

LDCs should continue to take the lead on these issues and their development partners should support them in these endeavors. The countries in the South should expand their cooperation based on the principle of South-South cooperation. Such support should include—among other things--- providing increased, targeted, timely and adequate aid to LDCs, operationalising the Green Climate Fund and channeling a fair share to LDCs, delivering on trade-related commitments, supporting privates sector development and foreign direct investment, and encouraging innovation in and technology transfer to LDCs. These should be effectively complemented by stronger national ownership and leadership as well as capacity building and institutional development in these countries. Sustainable development of LDCs will not only contribute to reduce poverty and uplift the lives of the people, but it would also contribute to promote international peace, security, human rights and global sustainability in the days ahead.

I would now turn to the report of the Secretary-General on ensuring the effective implementation of the functions of the OHRLLS and strengthening its capabilities and its effectiveness, as well as the effectiveness of the United Nations system support provided to

LDCs contained in document “A/67/262”.

The report articulates the genesis of the OHRLLS, its original mandates, evolution of wider responsibilities that emerged over the span of a decade, review of the delivery of mandates by the Office, existing resource capacity and the need for calibrating the magnitude of responsibility with the capacity of the Office. It also provides a brief account of the existing

UN system support for LDCs. The report ends up with a set of recommendations.

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The original mandate of the Office encapsulates coordination, reporting and advocacy for the

Programmes of Action in favour of LDCs, LLDCs and SIDS.

Over the years, the mandate of the Office has expanded in many ways, such as organizing UN

Conferences on these groups of countries, reporting on a broad range of issues in an analytical manner, engaging with an expanded range of partners, including the donor countries, countries of the South, UN System and other international organizations, private sector, CSOs, academia and the foundations. The Istanbul Programme of Action has also mandated the

OHRLLS to support the integration and implementation of the IPoA as well as its review and monitoring at the national, regional and international levels in a more effective manner.

Additionally, there is an increasing demand for substantive support to the Group of LDCs and

LLDCs from the Office of the High Representative. The General Assembly resolution 66/213, requested the Secretary-General to undertake a joint gap and capacity analysis on a priority basis by 2013 with the aim of establishing a technology bank and science, technology and innovation supporting mechanism dedicated to LDCs.

The new and emerging issues and a number of relevant UN conferences and summits have further widened the areas of activities of the Office. To give some examples, the Member

States have agreed to fully integrate the priority areas of the IPoA into the framework for action of the Rio+20 outcome. The Rio Outcome also agreed to achieve sustainable development, including through green economy in the least developed countries. The

ECOSOC resolution of this year strongly encourages giving appropriate consideration to the special needs and development priorities of the least developed countries in the post-2015 development agenda. LDCs also have major stakes in the upcoming processes such as QCPR as well as the upcoming conferences and summits on migration, climate change, food security etc. LDCs are in great need of substantive support for all relevant upcoming processes and conferences as the most vulnerable group of countries in the international community.

The significant increase in the responsibility of the Office is yet to be matched with the commensurate level of resources. The Office had started with 13 temporary posts and has grown only up to 18. The total number of membership that falls within the jurisdiction of this

Office constitutes about half of the UN membership. However, the approved programme budget resources of the Office represent only 0.14 per cent of the total budget for the biennium 2012-2013.

The report undertakes a critical review and appraisal of the functioning of the OHRLLS and its results on the ground. The report finds that the Office has succeeded in bringing the issues of LDCs, LLDCs and SIDS to high visibility as well as in forging consensus on their issues at the global level. The Office has also made efforts to mobilize all relevant entities of the UN in support of the three programmes of action under its mandate. The OHRLLS has established meaningful partnership in the follow-up and monitoring of the Programmes of Action through the establishment of the inter-agency consultative group mechanisms.

United Nations’ internal assessment of the programme performance of the Office of the High

Representative has reflected a high percentage rate of programme implementation in terms of delivery of outputs and results. The assessment also concluded that the Office of the High

Representative had contributed to the increased awareness of the special development needs of LDCs, LLDCs and SIDS, resulting in greater visibility of the respective programmes of action. However, the evaluation indicated the need for better coordination of programme delivery.

The SG’s report also undertakes a critical assessment of the UN system support to LDCs. A survey conducted by OHRLLS demonstrated a greater level of involvement of the UN system

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organization to the implementation of the Programme of Action. Many of them have already taken decisions to mainstream the IPoA. Some organizations have set up programmes targeted to LDCs and participate in joint programmes with other UN system organizations. In this regard, I very much welcome today’s launch of DESA’s redesigned Support Measures

Portal for LDCs, which can be accessed at www.un.org/ldcportal. However, in view of the comprehensive concerns and urgent needs outlined in IPoA and Rio+20 outcome documents, much remains to be done. The capacity of the Office and effectiveness of the support to LDCs and other vulnerable countries require further strengthening of the OHRLLS.

Distinguished delegates,

The report of the Secretary-General contains a set of concrete recommendations. It has recommended that the UN system should scale up its substantive and technical assistance to the least developed countries in a timely, long-term, predictable and flexible manner. It is also stressed that the existing Inter-Agency Consultative Group Mechanism should be institutionalized within the framework of the High-level Committee on Programmes as standing inter-agency mechanisms.

The Secretary-General also suggested that the new and expanded mandates of OHRLLS require further strengthening of the OHRLLS in terms of its capacity and scope of operations.

In this regard, he has suggested reviewing the resource requirements of the OHRLLS in respect of the programme budget for the biennium 2014-2015.

In conclusion, may I also mention that all the challenges and responsibilities of the United

Nations, be they relate to international peace and security, fundamental human rights, sustainable development or humanitarian concerns, they all intersect at LDCs, SIDS and

LLDCs. It is therefore logical that we deal with these issues more cohesively now than ever before. Therefore, I very much count on your continued support and cooperation in enabling

OHRLLS to fulfil its mandates. This is a cause worthy of stronger support of the global community, because there is a critical gap in the capacity of these countries to deal with these structural issues and growing vulnerabilities on their own. I thank you all.

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