WORLD TRADE WT/LDC/HL/17
14October 1997
ORGANIZATION(97-4444)
Original: English High-Level Meeting onIntegrated Initiatives for
Least-Developed Countries 'Trade Development
DECLARATION OFTHE SEVENTH ANNUAL MINISTERIAL
MEETING OFTHE LEAST-DEVELOPED COUNTRIES
NEW YORK, 30SEPTEMBER 1997
We,theMinisters oftheLeast-Developed Countries, meeting inNew York during the
52nd Session oftheUNGA pursuant tothedecision oftheDhaka Declaration ofFebruary 1990;
Recalling theParis Declaration andtheProgramme ofAction fortheLDCs forthe1990s,
aswellastheoutcome oftheHigh-Level Intergovernmental Meeting ontheMid-term Global Review
oftheProgramme ofAction fortheLDCs forthe1990s;
Recalling theMinisterial Declaration adopted inNewYork on30September 1996during the
51stSession oftheUNGA;
Having assessed progress intheimplementation oftheProgramme ofAction, solemnly declare
thefollowing:
1. Wearedeeply concerned thattheoverall rateofgrowth oftheLDCs asagroup declined in
1996 compared with1995 despite thepainstaking efforts undertaken byLDCs. Thelackofprogress
intheimplementation oftheParis Declaration andtheSubstantial Programme ofAction fortheLDCs
forthe1990s andthepooroutcome ofthestructural adjustment measures arelargely attributed tothe
failure oftheinternational community tocome withthelevelofcommitted support totheLDCs.
2. Thedisbursements toLDCs ofofficial development assistance (ODA), theiroverwhelmingly
dominant source ofexternal resources, hascontinued todecline inrealterms. TheratioofODA flows
toLDCs totheGNP ofDAC countries fellto0.06percentin1995, thelowest levelonrecord. This
declining trend isinsharp contrast withthecommitment made intheProgramme ofAction toprovide
LDCs withsignificant andsubstantial increases intheaggregate levelofexternal support. Wecall
upon ourdevelopment partners totakeurgent actions toreverse thenegative trend andensure that
adequate resources tosupport theefforts oftheLDCs aremade available.
3. Thestrenuous structural adjustment andeconomic reform measures undertaken byLDCs have
produced amodest growth insome countries, andtheLDCs arecommitted tocontinue anddeepen
theprocess ofreform. Inorder forthese initiatives totakedeeproots, thenecessity ofsupport from
thedevelopment partners inproviding adequate external assistance, debtrelief andeasyaccess to
technology, product andservice markets cannot beover-emphasized. Inthisregard, wewelcome the
initiative taken bytheG-7Summit atDenver on"Africa: Partnership forDevelopment" andhopethat
importance willbegiven toitsspeedy implementation. WealsohopethatthecallattheLyon G-7
Summit lastyearforgiving preferential access toproducts from LDCs willmaterialize soon.WT/LDC/HL/17
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4. TheshareofLDCsinworldexportscontinuestobeunder0.04percent,indicatingtheirgrowing
marginalizationinworldtrade.Tradeliberalizationmeasuresinmanycaseshasbeenadoptedunilaterally
bymany LDCs, without expansion ofaccess tomarkets ofdeveloped economies. Major declines in
theirexport prices inrecent months andsharply rising import prices serve toindicate thattheprospects
ofLDCs losing outfurther intheprocess ofglobalization andliberalization isveryreal. Indeed, it
hasbeenestimated thattheLDCs stand toloseuptoUS$600 million ayearfrom theglobalization
process.
5. TheLDCshavebeenby-passedbyinternationalforeigndirectinvestmentflowsdespiteincreasing
magnitude anddynamism ofthecurrent investment boom. Indeed inalarge number ofLDCs the
ratioofFDIandGDP hasfallen overthepastdecade. OutofUS$350 billion ofworld FDIlowsin
1996,thedevelopingcountriesreceivedarecordinflowofUS$129billion.However,foreigninvestment
flows haveremained limited toahandful ofdeveloping countries, andthenetinflow toLDCs have
merely beenaround US$1 billion. Thishasoccurred inspiteofgeneral acknowledgement bytheprivate
sector oftheexistence ofinvestment opportunities intheLDCs. Institution offinancial support and
specific incentives bythehome countries arenecessary toencourage investment flows. Wereiterate
thatunder thepresent condition, foreign direct investment cannot beasubstitute forofficial development
assistance intheLDCs. TheLDCs desperately needODA forcapacity building, establishment ofbasic
institutional infrastructure andstrengthening theexisting fragile means ofdevelopment.
6. Since investment flows areoften tiedupwithtransfer oftechnology, theLDCs aremostly
leftoutoftheknow-how forachieving development. Theinternational community should promote,
facilitate andfinance access tosound technology andcorresponding onpreferential terms taking into
account thespecial needfortheLDCs. Inorder toencourage transfer oftechnology andcorresponding
know-how from theprivate sector, specific financial andother incentives should beinstituted.
7. Theexternal debtsituation ofLDCs continues toremain amatter ofgreat concern. Thedebt
burden hascontinued togrow: between 1990 and1995, thecombined debtstock increased byUS$20
billion. Clearly, thedebtrelief measures currently inplace haveproved tobegrossly inadequate.
Without adecisive reduction indebtstock anddebtservice obligations, itwould notbepossible to
attain anymeaningful growth rate.
8. Weconsider theHIPC initiative oftheWorld Bank andIMFasastepintherightdirection.
However, theeffectiveness ofthescheme willdepend critically onthespeed ofimplementation and
theextent ofrelief provided. While amajority ofLDCs areincluded under theHIPC, thedebtrelief
requirements oftheother LDCs should alsobepromptly andadequately met. Wealsoappeal toall
creditor countries tofullycancel alloutstanding bilateral official debtowed byLDCs.
9. Wewelcome theWTO PlanofAction forLDCs, adopted atthefirstMinisterial Meeting of
theWTO, heldinSingapore inDecember 1996. ThisPlanofAction, which provides aframework
foraccording further market access concessions toLDCs andforundertaking actions toimprove their
supply capacity, needs tobegiven fullandadequate content. Wecalluponourtrading anddevelopment
partners toundertake, attheHigh-Level Meeting onLDCs tobeheldinGeneva during 27-28 October
1997, further market access commitment, including duty-free access provisions forallexports from
LDCs. Wealsourgethatanintegrated initiative beagreed upon atthatmeeting onproviding LDCs
withcoordinated andsubstantially increased technical cooperation intradeandtrade-related areas with
aviewtostrengtheningtheirsupplycapacityofexportablegoodsandservices,inlinewiththeMarrakesh
Ministerial Decision onMeasures inFavour ofLDCs.
10. Inthisconnection, weexpress ourappreciation totheSecretary-General ofUNCTAD forhis
initiative, incooperation andcoordination withtherelevant international organizations, toassist LDCs
toformulate Integrated Country Programmes (ICP) forstrengthening supply capacity ofexportableWT/LDC/HL/17
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goods andservices, pursuant totherelevant decision oftheTrade andDevelopment Board atitsannual
session lastyear. Wenotetheprogress thathasbeenmade sofarinthisregard, andurgeupon all
developmentpartnersandothercountriesinapositiontodoso,tocontributegenerouslytotheUNCTAD
Trust Fund forLDCs which aimstoprovide start-up costs forICPs. Wewelcome thecooperation
amongconcernedorganizations,particularlyUNCTAD,WTO,ITC,UNDPandRegionalCommissions
intheprocess offormulation andimplementation oftheICPs. Wealsostrongly stress thattheabove
actions intrade andtrade-related areas willneed tobecomplemented byfullandexpeditious
implementation ofallspecial anddifferential measures forLDCs contained intheFinal Actofthe
Uruguay Round, theoutcome oftheMid-term Global Review oftheProgramme ofAction forLDCs
andother agreements. Wefurther emphasize theneedforadditional measures suchasexempting LDCs
from tariff peaks andtariff escalation andremoving allnon-tariff barriers, ‘safety net'mechanisms
tohelpLDCs overcome thetransitional difficulties intheaftermath oftheUruguay Round, andthe
provision ofadequate financial support anddebttariff.
11. Thethird UNConference ontheLeast-Developed Countries willprovide theinternational
community with aforum toundertake acomprehensive assessment oftheoverall development
problematique oftheLDCs andtolaunch anewaction programme forthefirstdecade ofthecoming
century, withaviewtopromoting theirlong-term economic andsocial development andaccelerating
theirintegration intotheinternational economic andtrading system. Ascalled forinUNGA resolution
50/103 werequest thecurrent session oftheGeneral Assembly tofinalize itsdecision onthetime-frame,
venue andthepreparatory process oftheThird UNConference ontheLDCs, proposed tobeheld
intheyear2000. TheTrade andDevelopment Board, atitsannual session nextmonth, should provide
necessary inputs totheGeneral Assembly regarding thepreparatory activities fortheConference, and
consider issues thatcould form thecoreofitssubstantive agenda.
12. TheUnited Nations mustrevamp itselftoaccord highpriority topoverty eradication measures.
While welcoming theefforts oftheSecretary-General toassign priority totheLDCs, westress that
theUNshould significantly enhance itssupport totheLDCs from itspresent level. Wehope that
theUNsystem, afteritsreform would beadequately equipped totakeonadditional responsibility
concerning LDCs. Wealsobelieve thatthebulkoftheexpected savings fromthereform process would
beearmarked fordevelopment activities, andhighpriority should beaccorded toLDCs intheir
allocation.
13. WereaffirmthecentralroleofUNCTADwithintheUNsystemindealingwithissuesconcerning
LDCs, andemphasize thatitbeadequately strengthened todischarge itsmandates inregard totheLDCs.
Wealsoaskthefunds andprogrammes aswellastheregional commissions toattach special importance
totheLDCs intheiractivities. Inparticular, theOffice oftheSpecial Coordinator fortheLeast-
Developed, Land-locked andIsland Developing Countries should beprovided withrequired resources
foreffective discharge ofitsresponsibilities.
14. Wewelcome theoutcome oftheMicrocredit Summit inWashington, DCfrom2-4February
1997which launched aglobal movement toreach 100million oftheworld 'spoorest families, especially
women, withcredit forself-employment andother financial andbusiness services, bytheyear2005.
Werecognize thatmicrocredit programmes areakeystrategy inpromoting self-employment, income
generation, eradication ofpoverty andempowerment ofpeople, particularly women, andattaining better
social justice through facilitating access tocredit bythepoor. Inorder toreach thegoaloftheSummit,
weneedtoestablish newandstrengthen theexisting microlending institutions forfacilitating access
ofcredits topeople living inpoverty. Wecallonallregional andinternational institutions working
toeradicate poverty tocome forward tohelpusattain thegoaloftheSummit.WT/LDC/HL/17
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15. Weexpress ourgratitude toHerExcellency Sheikh Hasina, Prime Minster ofBangladesh,
forcontinuing substantive communications onbehalf ofLDCs, withtheHeads ofStateandGovernment
oftheG-7countries. Weareconvinced thatthisstanding arrangement forsuchadialogue willcontinue
toprove tobegreatly beneficial totheLDCs. Wewould liketorequest HerExcellency thePrime
Minister tocontinue herdialogue withtheleaders oftheG-7countries, aswellasofother development
partners, withaviewtobringing totheirattention issues ofparticular concern toLDCs.