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AITIC + CUTS

AITIC + CUTS. Preparing for UN – LDC IV LDCs: Trade and Development Challenges May 18, 2010 “Reflections on Ways of Responding to LDCs Challenges: Overview” H. E. Dr Mothae A Maruping Mission of the Kingdom of Lesotho. BPOA SUCCESS OR FAILURE. BPOA MIXED BAG:

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AITIC + CUTS

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  1. AITIC + CUTS Preparing for UN – LDC IV LDCs: Trade and Development Challenges May 18, 2010 “Reflections on Ways of Responding to LDCs Challenges: Overview” H. E. Dr Mothae A Maruping Mission of the Kingdom of Lesotho DR Mothae A Maruping - Lesotho

  2. BPOASUCCESS OR FAILURE BPOA MIXED BAG: • SOME PROGRESS IN LDCs, MORE IN SOME THAN IN OTHERS • ONLY 3 LDCs GRADUATING ( CAPE VERDE, SAMOA, MALDIVES) SO NOT EFFECTIVE ENOUGH TO BEAR CONVINCING RESULTS • NOT FULLY IMPLEMENTED (DOSAGE, TIMING, SEQUENCING) • NO RIGOROUS MONITORING AND EVALUATION MECHANISM DR Mothae A Maruping - Lesotho

  3. BACKGROUND: SERIES OF CRISESIN LDCs: CHALLENGES • UNSUSTAINABLE LEVELS OF DEBT • COMMODITIES PRICES • FOOD PRICES • ENERGY PRICES • GLOBAL FINANCIAL & ECONOMIC CRISES • CLIMATE CHANGE IMPLICATIONS DR Mothae A Maruping - Lesotho

  4. SERIES OF CRISES:THEIR CONSEQUENCES • ODA Levels Jeopardised • FDI Flows (slowed or halted or reversed) • Remittances flows declined • Net Export Revenues dropped • Domestically mobilised resources declined DR Mothae A Maruping - Lesotho

  5. SERIES OF CRISES:FURTHER CONSEQUENCES • Increased bankruptcies • Worsening external current account • Jeopardised External Reserves • Public Revenue base strained • Intensified threat of rising fiscal deficits • Looming danger of relapse into unsustainable levels of debt DR Mothae A Maruping - Lesotho

  6. SERIES OF CRISES:IMPLICATIONS OF THOSE CONSEQUENCES • Rising unemployment • Spreading and deepening poverty • Compromising of social safety nets • Unmet or partially met commitments by development partners • Slowed pace and frustrated efforts towards achievement of MDGs DR Mothae A Maruping - Lesotho

  7. UN LDCs IV:TACKLING ENORMOUS CHALLENGES AHEAD WHAT IS REQUIRED: • Solid Programme with specifics • Ownership by LDCs • Firm Commitments • Genuine Team-work and working partnerships • Recognition & accommodation of differences • Prioritisation (not everything about everything) DR Mothae A Maruping - Lesotho

  8. PROCESS:GENUINE OWNERSHIP OF THE PROGRAMME Genuine consultation of stakeholders: • Thorough consultation of the stakeholders • Process must be inclusive and participatory (relevant arms of government, private sector and civil society) • Process must be transparent REAL LDCs OWNERSHIP AND NOT PRETENCE DR Mothae A Maruping - Lesotho

  9. PROCESS:TEAM WORK AND PARTNERSHIPS In assisting LDCs in the Process Agencies should assume true team-work and refrain from usual competition: • Politically correct: Profession of collaboration – e.g. clusters • Reality: Competition • Desirable: Complementarity – synergies (adhere to TORs) Working Partnerships would yield convincing programme (LDCs, Developing and Developed Partner Countries and Agencies) DR Mothae A Maruping - Lesotho

  10. PROCESS:SEQUENCING • Technical work must precede political work in order to lay strong foundation • There has been a tendency to rush to the political level before thorough technical work [ e.g. Satisfactory review of BPOA and mapping of way forward] DR Mothae A Maruping - Lesotho

  11. PROCESS:COORDINATION • Need for Co-ordination within LDCs among Working Groups • Capital based • New York based • Geneva based • Groups where other major international organisations are located DR Mothae A Maruping - Lesotho

  12. CONTENT:PRIORITISATION THE PROGRAMME SHOULD NOT TRY TO BE EVERYTHING AND ABOUT EVERYTHING PRIORITISATION OF CRITICAL AREAS SHOULD YIELD BETTER RESULTS THAN BPOA DR Mothae A Maruping - Lesotho

  13. CONTENT:SPECIFICS PROGRAMME SHOULD BE SUFFICIENTLY SPECIFIC (AVOID GENERALITIES): PERHAPS THERE COULD BE: • OUTCOME DOCUMENT (ISTANBULL); • DOCUMENTS SPECIFYING STRATEGIES AND PROGRAMME OF ACTION • PROGRAMME OF ACTION SHOULD SPELL OUT CONCRETELY: WHAT? HOW? BY WHOM? WITH WHAT? WHEN? WHY? AND INCLUDE RISK ANALYSIS DR Mothae A Maruping - Lesotho

  14. CONTENT:DIFFERENT FEATURES OF LDCs LDCs ECONOMIES DIFFER: Programme should accommodate uniqueness: • Anatomy (i.e. structure) • Physiology (i.e. functioning) • History (historical experiences) Some are: • Post conflict but resource endowed • Size of the population • Already more advanced relatively than others and are growing at different rates • Landlocked AMPLE POLICY SPACE IS NEEDED DR Mothae A Maruping - Lesotho

  15. CONTENT:CRITERIA AND TIME FRAME • Classification criteria: could be revisited • Timeframe of the Programme: could be reconsidered • Should it continue to be 10 years (5yrs x 2) • Or 12 years (4years x 3) with thorough review every 4 years DR Mothae A Maruping - Lesotho

  16. CONTENT:MONITORING AND EVALUATION TO BE MEANINGFUL THE NEW PROGRAMME SHOULD CONTAIN: • CLEAR ACCOUNTABILITY FRAMEWORK • MONITORING AND EVALUATION MECHANISM DR Mothae A Maruping - Lesotho

  17. IMPLEMENTATION:WORKING PARTNERSHIPS WORKING PARTNERSHIPS SUCH AS THAT OF EIF ARE ESSENTIAL: • LDCs • DEVELOPED AND DEVELOPING COUNTRIES AS LDCs DEVELOPMENT PARTNERS • AGENCIES WITHIN LDCs: • Government • Private Sector • Civil Society DR Mothae A Maruping - Lesotho

  18. IMPLEMENTATION:LEVEL OF COMMITMENT ALL PLAYERS SHOULD BE MORE COMMITTED THAN UNDER BPOA: THIS IS MANIFESTED BY FAITHFUL FULFILLMENT OF PROMISES AND REALISATION OF PLEDGES MADE BY ALL PARTNERS RIGHT THROUGH THE PROGRAMME DR Mothae A Maruping - Lesotho

  19. IMPLEMENTATION:FACTORS TO PAY ATTENTION TO THE NEW PROGRAMME SHOULD PAY ATTENTION TO: • GENDER • YOUTH • ENVIRONMENT DR Mothae A Maruping - Lesotho

  20. FINANCING OF THE PROGRAMME • ODA – ADDITIONAL AND HIGH QUALITY (SEPARATE FROM AFT AND EIF FOR LDCs) MINIMAL CONDITIONALITIES • FDI – CREATE NECESSARY CONDITIONS • REMITTANCES – FACILITATE MODE IV • MOBILISATION OF DOMESTIC RESOURCES • DEBT RELIEF • SPECIAL PACKAGES BY GLOBAL AND REGIONAL DEVELOPMENT FINANCE INSTITUTIONS (WITH MINIMAL CONDITIONALITIES) • PRUDENT FISCAL, MONETARY & EXCHANGE RATE POLICIES DR Mothae A Maruping - Lesotho

  21. TRADE:LOCOMOTIVE OF ECONOMIC GROWTH GRANT WHAT LDCs REQUEST UNDER DDA (S & D): • DFQF MA • ROOs • NTBs • DELAYED PREFERENCE EROSION • TF • SERVICES WAIVER • ACCESSION (FOR THOSE LDCs STILL IN THE PROCESS) DR Mothae A Maruping - Lesotho

  22. PRODUCTIVE CAPACITIES IN ORDER TO TRADE THERE HAS TO BE PRODUCTION (THAT TO BE TRADED HAS TO BE PRODUCED): • DEVELOP ENABLING ENVIRONMENT: • EFFECTIVE STATE INSTITUTIONS • GOOD GOVENANCE AND RULE OF LAW • PHYSICAL, INSTITUTIONAL AND SOCIAL INFRASTRUCTURE • TECHNOLOGY DEVELOPMENT AND TRANSFER • UNIDO’s COMPETE, COMPLY, CONNECT (CCC) • SMEs DEVELOPMENT • PPPs • DIVERSIFICATION ( FOR CUSHIONING & RESILIENCE) • VALUE CHAINS • ETC, DR Mothae A Maruping - Lesotho

  23. STRATEGIES FOR VIABILITY • REGIONAL INTEGRATION • SOUTH-SOUTH COOPERATION TO SUPPLEMENT NORTH – SOUTH COOPERATION DR Mothae A Maruping - Lesotho

  24. THANK YOU FOR YOUR KIND ATTENTION DR Mothae A Maruping - Lesotho

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