8 June 2015 / By Tom Kaydor
Introductory
remarks by Hon. Mr. Thomas S.B. Kaydor, Jr., Deputy Minister for International
Cooperation and Economic Integration, Ministry of Foreign Affairs, Liberia
At the Ministerial Meeting of African Least Developed Countries on ‘Structural
Transformation, Graduation and the Post-2015 Development Agenda’ in Milan,
Italy.
I call this meeting to order.
Hon´ble Ministers
Excellencies
Ladies and Gentlemen,
Let me start by thanking the Government of Italy and the Office of the High-Representative
for the Least Developed Countries for convening this meeting.
I have the honour to co-chair this session with Mr. Wu Hongbo, Under-Secretary-General
of the United Nations Department of Economic and Social Affairs.
I am pleased to co-chair this session in such a timely moment for all of
us. Ongoing discussions on a Post-2015 Development Agenda already indicate that
sustainable development will require substantial efforts on areas that go well
beyond the MDGs. The timely fulfilment of commitments already made as well as additional
resources will be of paramount importance to implement the Sustainable
Development Goals (SDGs) in the Least Developed Countries.
Official Development Assistance (ODA) remains the most important source
of public international development finance for all LDCs. Promoting structural
transformation of their economies and building productive capacities requires
resources that go beyond what is domestically available in the LDCs. Their
limited access to international financial markets further exacerbates their
difficulties in financing sustainable development. ODA and debt relief are critical to overcome
the finance gap faced by the LDCs.
Building capacity in the African LDCs for enhanced domestic resource
mobilization is also of great importance. Improving the ability of the public
administration in collecting taxes in a transparent, efficient and equitable
manner can bring many benefits, besides increasing the resource base to finance
sustainable development. Addressing illicit financial flows, transfer pricing
and other practices that erode the tax base of the African LDCs will also
require dedicated support from the multilateral system and development partners.
Leveraging additional finance from innovative sources can provide much
needed resources to implement sustainable development in the African LDCs. Mobilizing
private resources through blending instruments or public sector guarantees can
also help increase access to credit to public and private actors in the LDCs. These
instruments can reduce the risk associated to projects where there is not
sufficient available private finance. In an environment characterized by
constrained availability of resources, blending can be an effective tool in
sectors that have high social impact or that are critical to the development
strategy of the country. It is important, however, to carefully evaluate the
context in which blending finance can be effective.
Promoting an environment conducive to productive investment that reverts
into the productive fabric of the African LDCs and generate decent employment
will be critical for implementing the SDGs. The African LDCs have committed
themselves to continue strengthening national policies and regulatory
frameworks for stimulating foreign investment in production. Despite all these
efforts, the share of global FDI inflows in LDCs remains very low. The proposal
of establishing an international investment support centre would greatly improve
the ability of the LDCs to attract FDI.
African LDCs participation in global trade is very small and in most
cases a few number of commodities represent an extraordinarily large share of
exports. Trade, however, can be a catalyser for productive capacity building. Enabling
African LDCs to improve their participation in global value chains and
diversifying the composition of their exports are necessary steps to harness
the potential of trade for poverty reduction and productive capacity building.
Building productive capacity in African LDCs will necessarily entail
substantially strengthening the science, technology and innovation base of the
African LDCs. The ability to acquire new technologies and to developed
indigenous capacity on research and development must be greatly enhanced to
support structural transformation in the African LDCs. The establishment of the
Technology Bank and Science Technology and Innovation Mechanism for the LDCs
would be an important element in overcoming the science, technology and
innovation gaps in the LDCs, as mentioned by the Chair of the High-level panel
of experts this morning.
I am extremely pleased to count today with such a distinguished panel. I
look forward to hear from them concrete proposals, initiatives and mechanisms
that could assist the African LDCs, their development partners and the
multilateral system in raising the adequate level of resources to finance
sustainable development, fosters structural transformation and promote the
building of productive capacities in the African LDCs.
The specific questions that this session will address are:
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How can we bridge the
substantial finance gap required to foster structural transformation and
promote building of productive capacities in the LDCs?
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How can we ensure that ODA
goes where is most needed? Would a target share of ODA to LDCs help to reduce
their finance gap?
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What are the mechanisms
needed to facilitate leveraging additional development finance for the African LDCs?
What would be the role of different stakeholders in supporting the LDCs efforts
to increase access to development finance in the African LDCs?
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How can we increase the
share of FDI to the LDCs? What would be needed to ensure that FDI contributes
to sustainable development and support the building of productive capacities in
the African LDCs?
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What are the policies and strategies
needed to enhance the role of trade in productive capacity building in African
LDCs?
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How can we assist the African
LDCs in improving their Science, Technology and Innovation base? What kind of
mechanisms can bolster science, technology and innovation in African LDCs?
I have the honour to introduce Mr. Erik Solheim, Chair of the Development
Assistance Committee of the OECD, who will deliver a keynote presentation.
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I would like to thank Mr.
Solheim for his insightful remarks, which certainly help to frame the
discussion.
Now I have the privilege to
introduce our distinguished panelists.
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Mr. Joakim Reiter, Deputy Secretary-General of UNCTAD
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Mr. Xiaozhun YI, Deputy Director-General, World Trade Organization
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Mr. Mario Matus, Deputy Director General, Development Sector, WIPO
Please limit your
interventions to 7 minutes.