“LDCs should be reclassified as the ‘vulnerable and fragile countries’” -Finance Minister

Sharke Chaman Khan: Finance Minister of Bangladesh Dr Abul Maal Abdul Muhith emphasized the need to re-classify the economic status of the countries of the globe in order to properly handle the development problems of the LDCs. He suggested designating this group as the “vulnerable and fragile countries” group. He also suggested that a different kind of Programme of Action should be taken for this group while he was delivering the key note speech at the ‘Fourth United Nations Conference on the LDCs: Enhanced International Support and Smooth Transition of LDCs towards graduation’ on 15th October at the UN-HQ. Under-Secretary-General, Special Advisor on Africa and High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States, Mr. Cheick Sidi Diarra was the moderator of the session while it was chaired by Ms. Enkhsetseg Ochir (Mongolia), Chair of the Second Committee. Mr. Ahmed Naseem, Minister of State for Foreign Affairs, Maldives, Professor Patrick Guillaumont, Professor Emeritus, Université d’Auvergne, France, Mr. Peter Thompson, Director for Development and Economic Partnership Agreements, Directorate General for Trade, Commission for the European Union and Mr. Pierre Encontre, Chief, Special Programmes, Division for Africa, Least Developed Countries and Special Programmes, United Nations Conference on Trade and Development joined the session as panelists.

As a Consultant in evaluating The Brussels Programme of Action the Finance Minister observed that in reality the commitments of that programme have remained largely unfulfilled and the concomitant Action Plans largely unimplemented.

He pleaded for writing off all the debt of all LDCs, including multilateral debt. He proposed that for LDCs aid to be effective must be earmarked, should be predictable and virtually unconditional and it should be more as budget support grant.  A comprehensive and decisive policy action is critically important at all levels to overcome the current multiple crises, he added.

Dr. Muhith suggested that the items to be given importance in the LDC Programme for the next decade should be survival of life in the vulnerable and fragile countries, food production, social protection, development of infra-structure, human development, essentially in the areas of education, health and very importantly housing, the issue of equity and particularly prevention of growing inequality, adaptation and mitigation measures for climate change and management of economic migration.

Regarding the smooth transition of LDCs towards graduation, he stated that the graduation process in an LDC actually begins as soon as it undertakes a targeted programme for poverty reduction and economic growth. He also stated that through carefully planned steps a country should be enabled to get used to withdrawal of all concessions.

Finance Minister emphasized on a comprehensive appraisal of the implementation of the Brussels Programme of Action. He also suggested adopting an ambitious, comprehensive, forward-looking, targeted, and results-oriented Programme of Action for the LDCs for the next decade.

The event was followed by a question-answer session.