Brainstorming Meeting on the Substantive Preparation for LDC IV
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Brainstorming Meeting on the Substantive Preparation for LDC IV MOBILIZING INTERNATIONAL SUPPORT FOR LDCs New York, 15 July 2010. Rob Vos Director Development Policy and Analysis Division UN-DESA e-mail:[email protected] Existing international support measures for LDCs.

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Brainstorming Meeting on the Substantive Preparation for LDC IV

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Brainstorming meeting on the substantive preparation for ldc iv

Brainstorming Meeting on the Substantive Preparation for LDC IV

MOBILIZING INTERNATIONAL SUPPORT FOR LDCs

New York, 15 July 2010

Rob Vos

Director

Development Policy and Analysis Division

UN-DESA

e-mail:[email protected]


Existing international support measures for ldcs

Existing international support measures for LDCs

A. Official Development Assistance:

Financial flows and technical assistance

Bilateral and multilateral donors

Special targets under MDG 8 (0.15-0.20% of DAC member GNI)

B. International trade:

 Special and Differential Treatment in WTO obligations

 Market Access

C. Other forms of support:

 Caps in contribution to UN budget, discounts in contributions to PKO

 Travel funds

 Other

Since 1981, support by development partners framed by the Programmes of Action for LDCs


Current status of international support

Current status of international support

Official Development Assistance

Aid targets have not been met

GAP: $23-43 billion (0.06 – 0.11% of donor GNI)

Aid remains highly fragmented and volatile (though improvements in some cases)

Enhanced Integrated Framework Trust Fund reached $100 million in 2008

Aid for Trade to record level, but top 20 recipients in 2008 included just three LDCs

SDT for LDCs in the WTO Provisions

Not well utilized due to lack of understanding and effectiveness

Not all LDCs have access (32 LDC WTO Members)

Accession negotiations remain complex and lengthy

Market Access

No full DFQF

Actual market opening had little effect on increasing LDC market shares and export diversification since 2004

LDCs face the challenge of preference erosion

Restrictive Rules of Origin and other non-tariff barriers


Limited results from international support

Limited results from international support

Goals too ambitious in relation to support measures…

…or, support measures inadequate to meet ambitious goals

Difficulties in strategy implementation owing to inadequate external support, misguided domestic policies, poor governance, and random shocks.

Programs of Action overemphasized international measures whose impact on growth, poverty alleviation and graduation has not been convincingly demonstrated.

International support measures necessary but not sufficient to address the structural handicaps affecting LDCs:

many important (domestic and international) obstacles to development were neglected.


Strengthening existing international support

Strengthening existing international support

ODA

Reiterate target of 0.15 per cent of GNI for LDCs, but ….

… align more fullybehind national development strategies

to better fit country needs (see WESS 2010)

…. provide ODA mostly in form of budget support (covering gaps in financing the NDS)

to reduce transaction costs and reduce fragmentation of aid

… provide ODA through multi-annual agreements aligned with medium-term expenditure frameworks

to enhance predictability of aid flows

Recognition of non-traditional donors in the new aid architecture

Define clearly additionality of new financing needs (for climate change, food security, disaster relief).


Strengthening existing international support1

Strengthening existing international support

TRADE

Aid for Trade and IF

Increased funding needed to respond to country-based formulations of trade-related needs and priorities (as part of NDS’s)

EIF is a promising initiative and should be expanded

SDT WTO agreements

SDT provisions should be simplified, meaningful and more effective (i.e. better tailored to country needs)

Accession of LDCs should be further facilitated.

Market Access

Accelerate progress towards full implementation of DFQF

Creation of more simplified and harmonized rules of origin

Removal of non-tariff barriers

Increasing South-South collaboration


More tailor made approach needed

More tailor-made approach needed

Need to articulate tailor-made national and international responses for each LDC:

Alignment behind NDS’s

Principles for allocation and SDT could be set in function of types of key vulnerabilities (CDP clustering idea):

LDCs with low land productivity

LDCs vulnerable to environmental & economic shocks

LDCs involved in, or exiting from, a conflict

Better framework for smooth transition strategies needed for graduating countries

EBA extensions one of few elements available

Increase the knowledge on available support measures

DESA - Development account project


Additional international support and considerations

Additional international support and considerations

Enhancing policy coherence across international development strategies and related support measures:

MDG strategies and PRSPs

Climate change adaptation and mitigation (financing, technology transfer)

Food security

More realistic alignment of new BPoA targets and the international support measures that are made available

Debt relief: continued heavy debt burden of some LDCs requires action from creditors

Extending HIPC initiative

Deliver more ODA as pure grants

Include support measures from large developing country partners and NGOs


Annex

Annex


Aid for trade increased to record level of 42 billion

Aid for Trade increased to record level of $42 billion

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Large gap remains in providing duty free access

Large gap remains in providing duty free access

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Brainstorming meeting on the substantive preparation for ldc iv

Enhanced market access has not led to greater export diversification(Concentration index: 1 = extremely concentrated)

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Brainstorming meeting on the substantive preparation for ldc iv

x

Use of survey results - Information portal fact sheets

http://www.un.org/esa/policy/devplan/ldcproject.html

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