BARRIERS TO TRANSFER OF TECHNOLOGIES TO LEAST DEVELOPED COUNTRIES (LDCs )

1. BARRIERS TO TRANSFER OF TECHNOLOGIES TO LEAST DEVELOPED COUNTRIES (LDCs) Mr. Bubu Pateh Jallow On behalf of the Chairman LDC Expert Group (LEG) UNFCCC Workshop on Technology Transfer 9 to 10 April 2003 Ghent, Belgium

2. Reminder on LDCs and the LEG • LDCs under the UNFCCC is a group of countries given special consideration by the Convention process under Article 4, paragraph 9 of the Convention. This is due to their special circumstances {LOW NATIONAL INCOME, WEAK HUMAN ASSET AND HIGH ECONOMIC VULNERABILITY: unctad.org/}. • The LEG is the technical group mandated to provide technical advice to LDC Parties on the implementation of the relevant Articles of the Convention Process • Current Composition of the LEG is (1) Laavas Malua (Samoa as Chair); (2)Paul Desanker (Malawi as Vice Chair) (3)Lubinda Aongola (Zambia as Anglo Rapporteur); (4) (Franco Rapporteur vacant), (5)Dechen Sering (Bhutan); (6)Bubu Pateh Jallow (Gambia) (7)Abebe Tadege (Ethiopia); (8)Mizan Khan (Bangladesh), (9) Mohamed Ali (Maldives); (10)Philip Baker (Canada); (11)Henk Bosch (The Netherlands also CGE Member); (12) (3rd Annex II vacant)

3. Framework for Implementation of Article 4.5 of the Convention Purpose of the Framework • To develop meaningful and effective actions to enhance the implementation of Article 4, paragraph 5, of the Convention by increasing and improving the transfer of and access to environmentally sound technologies (ESTs) and know-how. • Agreed and to be implemented by all Parties but with the understanding that • Parties have common but differentiated responsibilities; • Parties are at different levels of development (Developed, EITs, Developing (LDCs, SIDs, etc))

4. Barriers to technology transfer to the Least Developed Countries • Assessment of Barriers to technology transfer to LDCs is judged and based on the following components of the Framework • technology needs and needs assessment, • technology information, • enabling environments, • capacity-building, and • mechanisms for technology transfer

5. Barriers to technology needs and needs assessments to be undertaken by LDCs • LDC have very low human and institutional capacities and competencies to manufacture and maintain various technologies. • Lack financial capacity to undertake assessments of country-specific technology needs; • poor technical information base in many LDC countries which seriously affects the capacity for effective identification and selection of technologies; • lack of an appropriately-skilled critical mass at the technical level.

6. Technology information • poor technical information base in all LDC countries is a barrier which seriously affects the capacity for effective identification and selection of technologies;

7. Enabling environments • According to the TT Framework the enabling environments component focuses on government actions to create an environment conducive to private and public sector technology transfer. • However we have often heard Annex I Parties in their negotiating positions express that technology development and transfer is a private sector activity with very little control by the public sector (government) • The creation of enabling environments in the Developed and Developing World, particularly in Least Developed Countries present critical barriers to the process of Technology Transfer under the UNFCCC

8. Enabling environments (Barriers) • The private sector and investors in most LDC countries have not been actively engaged in climate change and so are yet to see clear links between business and climate change; • Inadequate macro-economic policies and explicit national policies that support technology development, acquisition of skills and knowledge from external sources, and upgrading of indigenous skills in these group of countries; • This inadequacy of policies creates an investment environment that often discourages participation by the private sector, investors and other non-government stakeholders;

9. Enabling environments (Barriers) • Inadequate services, communications and transport infrastructure at the national and regional level and inadequate coordination mechanism between local, national and regional institutions in LDCs inhibit widespread market deployment of ESTs. • Weak regulatory and enforcement mechanisms, non-transparent legal systems with long arbitration processes and high legal fees discourage investors and the private sector in effectively participating in technology transfer; • lack of institutional capacity to influence global thinking on local and foreign technology development and dissemination initiatives.

10. Enabling environments (Barriers) • lack of local ability and institutional capacity to participate in the transfer of technology and conduct technology research and development; • Unwillingness of the developed countries to open-up their technologies to the developing world and collaborate to share technical skills and provide economic assistance to communities with the greatest problems and the least resources. This contributes to continuous reliance upon foreign technology.

11. Enabling environments (Barriers) • Resistance to change is a serious barrier in LDCs as it leads to inefficiencies and also stagnation in the development of new methods and techniques. • Markets in LDCs lack incentives to stimulate the development and deployment of environmentally-sound technologies because • The size of the markets is relatively small, fair pricing system is non-existence or weak and lower rates of return on investments are not uncommon. • the financial systems fails to give correct price signals and views investment in ESTs as risky.

12. Capacity-building Barriers • Inadequate collaboration and cooperation among LDCs at the sub-regional and regional levels in the implementation of the capacity building component of the Technology Transfer Framework; • Non response of Annex II Parties in the provision of resources to assist developing countries, particularly LDCs in the implementation of the capacity-building component of the Technology Transfer Framework; • Very weak levels of human and institutional capacities in LDCs which is places these countries at a disadvantaged position to choose and cooperate with; • The situation also makes capacity building more expensive in LDC countries compared to other developing countries

13. WAY FORWARD • To remove the Barriers to Technology Transfer in LDCs it is an opportunity for these countries to highlight these in the NAPAs and propose activities to remove the barriers. THANK YOU