Implementation of the Programme of Action for the Least Developed Countries for the 1990s, G.A. res. 50/103, U.N. Doc. A/RES/50/103 (1995)



                       
 
     The General Assembly,
 
     Recalling its resolutions 45/206 of 21 December 1990, in which it
endorsed the Paris Declaration and the Programme of Action for the Least
Developed Countries for the 1990s, and 49/98 of 19 December 1994, in which it
decided to convene the High-level Intergovernmental Meeting on the Mid-term
Global Review of the Implementation of the Programme of Action for the Least
Developed Countries for the 1990s,
 
     Reaffirming the Paris Declaration and the Programme of Action, the prime
objective of which is to arrest the further deterioration in the
socio-economic situation of the least developed countries, to reactivate and
accelerate growth and development in those countries and, in the process, to
set them on the path of sustained economic growth and sustainable development,
 
     Expressing serious concern that the least developed countries as a group
have not been able to achieve many of the objectives of the Programme of
Action and that their overall socio-economic situation has continued to
deteriorate,
 
     Noting with concern the reduced flow of development resources to the
least developed countries, the resulting need to accord them priority in the
allocation of concessional resources and their continued marginalization in
world trade, as well as the fact that many least developed countries face
serious debt problems and more than half are considered debt-distressed,
 
     Taking note of agreed conclusions 423 (XLI) of 31 March 1995 of the Trade
and Development Board on the annual review of progress in the implementation
of the Programme of Action for the Least Developed Countries for the 1990s,
which was underpinned by The Least Developed Countries 1995 Report,
 
     Taking note of the note by the Secretary-General transmitting the report
of the High-level Intergovernmental Meeting on the Mid-term Global Review of
the Implementation of the Programme of Action for the Least Developed
Countries for the 1990s,
 
     1.   Reaffirms the Programme of Action for the Least Developed Countries
for the 1990s as the basis for continuing cooperation between the least
developed countries, which have the responsibility for their own development,
and their development partners, based on shared responsibility and
strengthened partnership, as well as its commitment to the full and effective
implementation of the Programme of Action;
 
     2.   Endorses the measures and recommendations contained in the report of
the High-level Intergovernmental Meeting on the Mid-term Global Review of the
Implementation of the Programme of Action for the Least Developed Countries
for the 1990s, annexed to the present resolution, which are designed to ensure
the full implementation of the Programme of Action over the second half of the
decade;
 
     3.   Calls upon all Governments, international and multilateral
organizations, financial institutions and development funds, the organs,
organizations and programmes of the United Nations system, and all other
organizations concerned to take immediate, concrete and adequate steps to
implement the Programme of Action, taking full account of the measures and
recommendations of the mid-term global review so as to ensure sustained
economic growth and sustainable development in the least developed countries
and to enable them to participate in and benefit from the process of
globalization and liberalization;
 
     4.   Notes that many least developed countries, for their part, have been
implementing courageous and far-reaching policy reforms and adjustment
measures in line with the Programme of Action, and in that regard emphasizes
the need for national policies and measures aimed at establishing
macroeconomic stability by rationalizing public expenditure and adopting sound
monetary and fiscal policies so as to ensure a dynamic private sector by such
means as providing a sound legal framework and improving human resources
development, living standards, health and the status of women, and calls upon
the international community to provide adequate support thereto;
 
     5.   Strongly urges all donor countries to implement fully and
expeditiously their commitments in all relevant areas, including the agreed
menu of aid targets and commitments as set out in the Programme of Action and
support to reinforce structural adjustment reform, as well as the measures
agreed upon at the mid-term global review so as to provide a significant and
substantial increase in the aggregate level of external support for the least
developed countries, keeping in mind the increased needs of those countries as
well as the requirements of the countries added to the list of the least
developed countries following the Second United Nations Conference on the
Least Developed Countries;
 
     6.   Stresses the critical importance of providing multilateral
assistance for the least developed countries, in the form of grant-based
multilateral programmes, and in that regard calls attention to the need to
ensure adequate replenishment of the International Development Association and
the soft-term windows of the regional development banks;
 
     7.   Emphasizes the serious debt problems of the least developed
countries, which necessitate strengthened efforts to formulate an
international debt strategy that should include concrete measures to alleviate
the debt burden and increased concessional financing in support of appropriate
economic policy measures, which will be critical to the revitalization of the
growth and development of the least developed countries, and encourages the
Bretton Woods institutions to expedite the ongoing consideration of ways to
address the issue of multilateral debt, including those concerning the least
developed countries;
 
     8.   Reiterates that increased opportunities for trade can help
reactivate economic growth in the least developed countries, calls for
significantly improved market access for their products and emphasizes the
importance of applying effectively the provisions of the Final Act Embodying
the Results of the Uruguay Round of Multilateral Trade Negotiations, and
further emphasizes in that context the importance of taking concrete action,
as appropriate, to fully and expeditiously implement the Marrakesh Declaration
as it relates to the least developed countries and the ministerial decision on
measures in favour of the least developed countries, as well as the measures
agreed to at the mid-term global review, with a view to enabling the least
developed countries to maximize their benefit from the Final Act and to cope
with any adverse effects arising therefrom;
 
     9.   Also reiterates the importance attached to the implementation of the
ministerial decision on measures concerning possible negative effects of
reform programmes on the least developed countries and net food-importing
developing countries;
 
     10.  Reaffirms the importance of the follow-up and monitoring mechanisms
for implementation of the Programme of Action at the national, regional and
global levels as crucial to the implementation of the Programme of Action;
 
     11.  Recalls that in its resolution 49/98, it invited the
Secretary-General to make recommendations to the General Assembly at its
fiftieth session, with a view to ensuring that the secretariat of the United
Nations Conference on Trade and Development had sufficient capacity to
undertake an effective follow-up of the outcome of the mid-term global review
and to follow up the conclusions and recommendations relating to the least
developed countries adopted by major United Nations conferences, and in this
regard takes note of the relevant proposals of the Secretary-General related
to the programme budget for the biennium 1996-1997;
 
     12.  Emphasizes the importance of the annual reviews by the Trade and
Development Board of progress in the implementation of the Programme of Action
and the pressing need for enabling representatives of the least developed
countries to participate in such annual reviews, and to that end requests the
Secretary-General to defray the cost of participation of representatives of
least developed countries by mobilizing extrabudgetary resources for that
purpose and by reallocating existing resources of the regular budget, if
required;
 
     13.  Recalls that at the end of the decade, a global review and appraisal
of the implementation of the Programme of Action will be carried out, in
accordance with paragraph 140 of the Programme of Action and paragraph 7 (c)
of General Assembly resolution 45/206 regarding the consideration by the
Assembly at its fifty-second session of the holding of a third United Nations
conference on the least developed countries;
 
     14.  Calls upon the United Nations Conference on Trade and Development at
its ninth session to take into account the outcome of the High- level
Intergovernmental Meeting on the Mid-term Global Review of the Programme of
Action for the Least Developed Countries for the 1990s;
 
     15.  Requests the Secretary-General to submit to the General Assembly at
its fifty-second session a report on the implementation of the present
resolution.
 
 
                              ANNEX
 
         MID-TERM GLOBAL REVIEW OF PROGRESS TOWARDS THE IMPLEMENTATION OF THE
                         PROGRAMME OF ACTION FOR
                 THE LEAST DEVELOPED COUNTRIES FOR THE 1990s
 
 
                            Part One
 
   DECLARATION OF THE HIGH-LEVEL INTERGOVERNMENTAL MEETING ON THE
   MID-TERM GLOBAL REVIEW OF THE IMPLEMENTATION OF THE PROGRAMME OF
   ACTION FOR THE LEAST DEVELOPED COUNTRIES FOR THE 1990s
 
     The Meeting
 
     Declares, in particular, the following:
 
     (a)  The participants in the Meeting have undertaken an assessment of
progress in the implementation of the Programme of Action and agreed on
concrete recommendations to ensure that the Programme is more effectively
implemented throughout the remaining part of the decade.
 
     (b)  They reaffirmed their commitment to work cooperatively towards
achieving the prime objective of the Programme of Action which is to arrest
the further deterioration in the socio-economic situation of the least
developed countries, to reactivate and accelerate growth and development in
these countries and, in the process, to set them on the path of economic
growth and sustainable development based on shared responsibility and
strengthened partnership.
 
     (c)  The least developed countries as a group have not been able to meet
many of the objectives of the Programme of Action and their overall
socio-economic situation has continued to deteriorate.  This deeply concerned
the participants at the Meeting.  At the domestic level, civil strife and
recurrent natural disasters in some of the least developed countries and the
resulting social economic burdens, macroeconomic imbalances and poor
performance of the productive sectors, inter alia the lack of adequate
physical and institutional infrastructures, have contributed to this
deterioration.  Persistent and serious debt and debt-servicing problems, very
low levels of exports, and a declining share in world trade and the
insufficiency of external finance, have had unfavourable consequences on their
growth and development.
 
     (d)  However, the least developed countries have continued to implement,
under many difficulties, wide-ranging and far-reaching reforms.  In some
countries these efforts, complemented by a favourable external climate, have
shown encouraging results.  Many development partners have provided increased
support to least developed countries, although the commitment to provide them
with a significant and substantial increase in the aggregate level of external
support has not happened.
 
     (e)  The participants are determined to pursue their efforts to implement
the measures and recommendations agreed at the present Meeting.  They are
confident that the success of these efforts would lead to a reactivation and
acceleration of growth and development in the least developed countries, and
enable them to participate in and benefit from the processes of globalization
and liberalization.
 
     (f)  They call upon all Governments, the United Nations system, regional
and subregional organizations, and the competent non-governmental
organizations, to combine their efforts in implementing the measures and
recommendations agreed upon by the present Meeting so as to ensure the success
of the Programme of Action.
 
     (g)  They firmly believe that, given political will on the part of the
least developed countries, which have the primary responsibility for their
development, and the support of the international community, the least
developed countries will be able to enter the next century with better
prospects for their peoples.
 
 
                            Part Two
 
    ASSESSMENT OF PROGRESS IN THE IMPLEMENTATION OF THE PROGRAMME
    OF ACTION FOR THE LEAST DEVELOPED COUNTRIES FOR THE 1990s AT
    THE NATIONAL LEVEL, AND PROGRESS IN INTERNATIONAL SUPPORT MEASURES
 
                          INTRODUCTION
 
1.   The Second United Nations Conference on the Least Developed Countries,
held in Paris in 1990, adopted the Paris Declaration and the Programme of
Action for the Least Developed Countries for the 1990s.  The basic principles
and aims of the Programme of Action are as valid today as when they were drawn
up.  The prime objective of the Programme of Action is to arrest the further
deterioration in the socio-economic situation of least developed countries
(LDCs), to reactivate and accelerate growth and development in these countries
and, in the process, to set them on the path of sustained growth and
development.  The policies and measures in support of these objectives set out
in the Programme of Action revolve around the following major areas:
establishment of a macroeconomic policy framework conducive to sustained
economic growth and long-term development; development and mobilization of
human resources; development, expansion and modernization of the productive
base; reversing the trend towards environmental degradation; promotion of an
integrated policy of rural development aimed at increasing food production,
enhancing rural income and enhancing non-agricultural sector activities; and
the provision of adequate external support.
 
2.   It was noted with great concern that only one country, i.e. Botswana, has
graduated from the group of LDCs since the early 1970s.  At the same time the
number of LDCs has increased from 41 at the time of the Paris Conference in
September 1990 to 48 countries at present, without a proportionate increase in
support measures despite national and international efforts.
 
 
          I.  MAIN DEVELOPMENTS DURING THE EARLY 1990s
 
3.   Despite vigorous efforts by LDCs to implement economic reforms as
envisaged by the Programme of Action, the LDCs as a group have not been able
to meet many of the objectives of the Programme of Action and their overall
socio-economic situation has continued to deteriorate.  Several factors, both
domestic and external, have contributed to the overall socio-economic
deterioration in the LDCs.  The domestic factors include:  civil strife and
recurrent natural disasters in some LDCs and the resulting social and economic
burdens, political instability, macroeconomic imbalances, manifested in large
fiscal and balance-of-payments deficits, in many cases the unfavourable
short-term impact of macroeconomic policy adjustments on specific areas, in
particular the most disadvantaged and vulnerable sections of the population,
and poor performance of the productive sectors including lack of adequate
physical infrastructure.  The external factors include:  persistent debt and
debt-servicing problems; the decline in the share of LDCs in world trade and
their continued marginalization; the inadequacy of external finance; and the
emergence of new claimants for aid.
 
4.   According to United Nations Conference on Trade and Development (UNCTAD)
statistics, the real GDP growth rate of the LDCs averaged only 1.7 per cent
per annum during the first four years of the 1990s, having declined from the
growth rate of 2.3 per cent achieved during the 1980s.  Despite the recovery
in the world economy, the situation in the LDCs continues to be precarious,
although a few of them made limited progress.  With population growing at an
average annual rate of 2.9 per cent, GDP per capita suffered an annual 1.1 per
cent decline, thus threatening to worsen the already precarious income and
consumption levels, as well as to widen the savings-investment gap in these
countries.
 
5.   While the slow-down in economic growth rates was common to both Asian and
African LDCs, the former, which benefited, inter alia, from a relatively
favourable regional environment, attained an average per capita output growth
of 1.4 per cent in the 1990s, as compared with a 2.1 per cent per annum fall
suffered by the latter.  There have also been significant inter-country
variations in growth performance.  Thus, it is encouraging to note that,
despite the poor performance for the group as a whole, nearly one quarter of
LDCs were able to attain positive per capita income gains in the early 1990s.
A strong expansion of agricultural production, internal stability, strong
government commitments, a sound political and regulatory framework for
development, complemented by significant external support, among other
factors, have contributed to raising economic growth rates.
 
6.   The worsening of socio-economic conditions in many LDCs in the 1990s has
increasingly been translated into a marked deterioration in human welfare as
reflected in reduced caloric intakes, increased mortality and morbidity, the
re-emergence and spread of diseases, lower school enrolment, further
marginalization of the weakest members of society, and other signals of acute
social distress, as further reviewed below in section V.
 
7.   Overall, the external environment facing LDCs has remained difficult.  As
these countries moved into the 1990s, despite an increase in exports of
manufactured goods, their share in world exports and imports fell by more than
three eighths and one third from the already low levels of 0.7 per cent and
1.0 per cent respectively in 1980.  Despite vigorous efforts to diversify the
largely commodity-based composition of their exports, the LDCs' economies
continued to be vulnerable to vicissitudes and instability in commodity
markets.  Official development assistance (ODA), on which LDCs depend
principally for their external financing, registered a decline over the early
1990s, and the aid outlook remains uncertain.  Although a large number of LDCs
have adopted national regulatory frameworks conducive to foreign investment,
they have not yet attracted significant foreign direct investment (FDI).
Despite measures adopted to alleviate their external debt burden, this burden
continued to be unsustainably high for many LDCs and seriously compromises
their adjustment and development efforts.
 
8.   Some developing countries are also important development partners of
LDCs. They have technical assistance and training programmes from which the
latter have benefited.  The potential for expanded economic and technical
cooperation between LDCs and other developing countries merits further
exploration and support by the international community, especially in view of
the new opportunities emerging with the dynamic growth experience of a number
of those other developing countries.  As a means of maximizing the potential
for such South-South cooperation, triangular funding arrangements which
include the active contribution of developed countries and relevant
international organizations can be initiated.
 
9.   Several LDCs have been taking a number of measures to promote trade with
neighbouring countries.  For example, a number of African LDCs, especially
land-locked ones, have sought to establish some form of free trade area or
customs union at the subregional level.  However, the establishment of such
subregional arrangements has encountered a number of obstacles which have
limited their effectiveness.
 
10.  In sum, therefore, the requisite progress has not been made in most LDCs
during the first half of the 1990s in realizing the overall objective of the
Programme of Action, although some progress has been recorded in a number of
LDCs as a result of the implementation of appropriate policies.  Furthermore,
the ongoing processes of economic globalization and liberalization are likely
to have profound consequences for the future development of the LDCs.  These
processes, which offer great opportunities for growth and development, also
entail risks of instability and marginalization.  LDCs as a whole have made
limited progress in overcoming structural constraints, infrastructural
insufficiencies, debt overhang, promoting and diversifying the enterprise and
export sectors, attracting foreign investment and creating a sufficient
technological base.  In this context, most of the LDCs will face globalization
and liberalization from the situation of a constrained environment.
 
 
                 II.  THE POLICY REFORM PROCESS
 
11.  In recent years, most LDCs have embarked on a process of structural
adjustment and wide-ranging reforms, often under internationally agreed
frameworks for structural and sectoral adjustment.  Important areas of policy
focus have been towards coping with fiscal and balance-of-payments deficits,
improved mobilization and use of domestic resources, through tax reforms,
improving the effectiveness of the public sector and providing greater
opportunities for the private sector.  LDCs have also initiated reforms in
critical areas such as population, education, health, food security and trade
policy.
 
12.  There are, however, some cases where the pace and scope of these reforms
contrast with the limited progress achieved.  In particular, despite success
in securing short-term macroeconomic stability, certain situations sometimes
existed where the reforms appear neither to have helped in lifting structural
constraints facing the economies of LDCs nor to have improved supply capacity
and export diversification.  Thus, while it was recognized that the reform
process sometimes could not guarantee immediate results, it was emphasized
that the efforts of LDCs provided a context in which, over the longer term,
growth and structural transformation could reinforce each other under more
favourable circumstances.
 
13.  The experience of LDCs points towards a number of factors which
determined the success or otherwise of reform measures.  Prime among them has
been government commitment to reforms, the appropriateness of national policy
contents, sequencing of reforms and the level of external financial support to
underpin reform efforts.  Problems inherent in policy design, particularly the
neglect of structural conditions and endowment-related considerations,
retarded and even reversed the momentum of reforms.  Inadequate domestic and
external resource mobilization has been a particularly critical constraint for
development in the LDCs.
 
14.  The socio-economic difficulties of most LDCs have been further
exacerbated by a specific set of environmental problems, such as land
degradation and erosion, drought and desertification, which impair prospects
for their development.  These environmental problems have been aggravated in
LDCs by a number of complex and interrelated factors, which include poverty
and poverty-linked population pressures and cross-border refugee movements
resulting from man-made and natural disasters.  A noteworthy development has
been that LDCs have demonstrated growing awareness of environmental issues and
problems and many have implemented policies, strategies and institutional
mechanisms to deal with them.  The special situation and needs of the LDCs
should be given special priority.  International cooperation for sustainable
development should be strengthened in order to support and complement the
efforts of the LDCs.  In particular, new and additional financial resources
from all sources, both public and private, that are both adequate and
predictable are necessary for environmentally sound development programmes and
projects.  However, adequate international support is needed to facilitate the
transition from emergency relief to rehabilitation and development, and in
particular in the context of activities under the International Decade for
Natural Disaster Reduction and the promotion of national capacity-building to
help prevent and mitigate future emergencies.
 
15.  In many LDCs, it is encouraging to note that far-reaching changes in the
system of governance, ranging from free elections to democratic constitutional
reforms, have ushered in new possibilities for establishing more participatory
and transparent systems of government.  Generally, LDCs which achieved a
revival of economic growth were those where greater progress has been made in
securing popular participation and respect of human rights.  In a number of
LDCs, the consequences of man-made and other disasters have continued to drain
resources, hampering overall long-term development.  In some of these LDCs,
armed conflict has often resulted in large-scale displacement of population,
food emergencies and the unleashing of other destabilizing forces.  The
developmental task of Governments in meeting the socio-economic challenges
posed became highly constrained under these circumstances.  Besides
destabilization caused by the presence of a large number of refugees, some
LDCs have been obliged to provide asylum, with far-reaching implications for
the budget, the environment impacts, other resource needs and related security
problems which require urgent concrete international support for those
countries hosting the refugees.  The LDCs undergoing fundamental political,
economic and social transformation, in the process of consolidating peace and
democracy require the support of the international community.
 
 
          III.  DEVELOPMENTS IN THE PRODUCTIVE SECTORS
 
16.  During the early 1990s, agriculture in most LDCs has been characterized
by lags in production growth relative to that of the population, continued
declines in terms of trade and loss of market shares for traditional
agricultural commodities.  Agricultural production in LDCs fell by 1.1 per
cent per annum in per capita terms during the period 1990-1993.  Several LDCs
responded to the continued poor performance of the sector by introducing
reform measures, particularly reforming producer price incentives and
marketing systems and the provision of essential agricultural inputs.  While
the overall thrust of these measures has been the removal of barriers to the
private sector in agriculture, they have been unable to provide support
services.  A particularly disquieting trend in many LDCs is the growing
incidence of man-made and recurrent natural disasters such as drought, flood,
and devastating cyclones, which are the most important causes of food
insecurity in many African LDCs.  The situation has been further exacerbated
by declines in food output and limited capacity to offset shortfalls through
imports. 
 
17.  Notwithstanding the wide variations in manufacturing growth rates among
LDCs, the performance of the manufacturing sector on the whole has weakened in
recent years, manufacturing activities have remained relatively undiversified,
and the utilization of capacity and resources has been low.  The sector growth
rate decelerated to 1.4 per cent per annum during the early 1990s, from 2.1
per cent per annum in the 1980s.  While some one third of LDCs maintained a
positive growth of manufacturing value added (MVA) in the 1980s and early
1990s, most LDCs experienced stagnation and even declines in manufacturing
output.  The response of the LDCs to deteriorating manufacturing performance
has been through adjustments of macroeconomic policies and instruments, and
sectoral measures to augment manufacturing output and efficiency.  At the
sectoral level, the LDCs have reoriented their incentive structure and
introduced changes in institutional policies and regulatory arrangements in
order to improve the macroeconomic environment for manufacturing production.
 
18.  The LDCs have made major efforts to improve their transport and transit
infrastructure systems during the last decade.  The budgetary constraints
faced by LDCs have, however, gradually undermined the financial capabilities
of Governments to maintain the momentum of these efforts.  These constraints
are particularly felt in land-locked and island LDCs, where inadequate
physical infrastructure poses major obstacles to structural transformation and
economic development.
 
 
      IV.  LAND-LOCKED AND ISLAND LEAST DEVELOPED COUNTRIES
 
19.  Sixteen of the 48 least developed countries are also land-locked.  The
high transport costs which result from their particular geographical handicaps
continue to have a significant adverse impact on their international trade
performance and overall economic development.  In order to alleviate the
particular problems which these countries face, the land-locked and transit
developing countries, as well as the donor community, adopted a Global
Framework for Transport Cooperation,  which contains a comprehensive set of
recommendations for concrete action at the national and subregional levels
designed to improve the efficiency of transit transport systems.  The
Framework underscores the need for extensive financial and technical support
by the donor community.  The donor community recognizes this.  Furthermore,
the Framework calls upon UNCTAD and the regional economic commissions to play
a leading role in promoting the implementation of the agreed actions.
 
20.  Island least developed countries continue to face particular problems
resulting from their smallness, insularity and remoteness from the major
economic centres.  They are vulnerable to a number of adverse factors,
including environmental degradation.  Poor internal and external transport
links to world markets negatively compound their ability to participate
effectively in world trade.  The Programme of Action for the Sustainable
Development of Small Island Developing States, adopted in Barbados in May
1994, outlines a range of measures that need to be undertaken in order to
alleviate the particular problems which these countries face.  The Programme
calls for increased support by the international community to ensure effective
implementation of these measures in conjunction with national measures in
support of sustainable development.
 
 
                 V.  HUMAN RESOURCES DEVELOPMENT
 
21.  LDCs have adopted and are implementing policies, measures and programmes
to tackle key problems in human resources development.  However, the expansion
of national population programmes within the overall framework of human
resources development has been difficult for a number of reasons, such as
funding constraints, among others.  These programmes have been complemented by
strong efforts to change attitudes, including persuasion and campaigns relying
on traditional and modern information techniques.
 
22.  Despite major difficulties, there have been some encouraging results
achieved by some LDCs, particularly in the areas of health and education.
However, in many LDCs, mortality rates continue to be high.  The situation is
exacerbated by poor sanitation and hygienic conditions and the lack of safe
drinking water supplies.  Acquired immunodeficiency syndrome (AIDS) and
tropical epidemic and endemic diseases have become a major cause of death in
recent years in some LDCs, as these countries have limited resources to deal
effectively with such endemics and epidemics.  The economic crisis faced by
LDCs has further undermined health conditions in many countries as living
standards have fallen, health services have been cut owing to budgetary
pressures, and the availability of imported medicines and other medical
supplies has dwindled.  Education services continue to be affected by
deteriorating economic conditions, in particular by budgetary constraints.
There is need for investment in the development of human capacities,
particularly in programmes of health, nutrition, education and training and
population activities.
 
23.  Although women constitute half of human resources in the LDCs, they have
continued to be hampered by their marginal position from playing their full
role in socio-economic development.  Despite measures being taken to enhance
their role in development, women in the LDCs still lag behind their male
counterparts as well as women from other developing countries in all areas of
social and economic development.  They face particular problems related to
gender discrimination, such as limited access to productive resources,
restricted education and training opportunities, poor health status, low
representation in strategic decision-making positions, as well as having to
bear a high dependency burden:  the more so, as deepening poverty is felt more
acutely by women-headed households.  In addition, prevalent attitudes
regarding women's abilities and their proper socio-economic role, and women's
own lack of knowledge about their rights, have kept them away from mainstream
development.  The lack of follow-up of decisions and internationally agreed
recommendations aiming at the advancement of the status of women has also been
a major cause of the poor prevailing situation.
 
 
                    VI.  EXTERNAL TRADE AND THE IMPLICATIONS OF
                         THE FINAL ACT OF THE URUGUAY ROUND
 
24.  The Programme of Action underlined that it is essential that all
countries contribute to developing a more open, credible and durable
multilateral trading system, recognizing that the results of this process
could be a reflection, inter alia, of their respective weight in world trade.
It is encouraging to note that the LDCs have contributed to this process by
implementing important trade liberalization measures.  The Programme of Action
also called for important support measures in favour of LDCs in such areas as
duty-free treatment of their exports, exemptions from quotas and ceilings and
the use of simplified and flexible rules of origin.  Progress made in the
provision of such support has been important in the case of a number of
countries.  While a number of LDCs have been able to increase their exports,
the overall trade situation of the LDCs has deteriorated, in that their share
in global trade has continued to decline.  Although globalization and
liberalization offer opportunities to LDCs, these processes also pose major
challenges, particularly in the form of increased global competition.  Despite
recent improvements, world commodity markets have remained volatile and
depressed.  As a result the LDCs have become further marginalized and this
trend needs to be reversed.
 
25.  The extremely low export capacity of most LDCs has continued to be one of
the major obstacles to growth and a source of the high dependence on ODA for
financing the necessary investment, imports and technical support for
development.  Difficulties have persisted in expanding the external trading
opportunities of LDCs, as commodity and market diversification measures have
been rendered difficult principally by lack of investment, technology and
skills to augment levels of production and efficiency.
 
26.  LDCs have been granted special tariff preferences under various
Generalized System of Preferences (GSP) schemes and other preferential
arrangements.  Following the conclusion of the Uruguay Round, a number of
countries have taken steps to improve their GSP schemes in favour of LDCs.
However, some schemes still exclude a number of products of export interest to
LDCs (e.g.  textiles, clothing, carpets, footwear, leather goods etc.) and
have rigid rules of origin.  As the ability of many LDCs to utilize such
facilities remains constrained, only a part of GSP-covered imports from LDCs
has received preferential treatment.  Thus the use of GSP schemes, in
particular by African LDCs, has remained limited.
 
27.  The adoption of the Final Act of the Uruguay Round will have significant
consequences for the trading prospects of LDCs, in particular as regards
preferences and the competitiveness of LDC exports.  Increased transparency of
trade regimes and the reduction of trade barriers, particularly tariff-binding
on agricultural products and reduction in tariff escalation, as foreseen in
the Marrakesh arrangements, provide LDCs with increased opportunities in the
long run.  On the other hand, concerns have been expressed that LDCs may
suffer erosion of preferential margins in relation to many of their exports to
major markets and a possible consequential loss in export market shares and
export earnings.  In addition, the net food-importing LDCs may face higher
import bills, at least in the short run, resulting from the agreement on
agriculture.  In the long run, the Final Act poses to LDCs the twin challenges
of, first, developing and strengthening institutional and human capacities to
formulate and manage legislation implementing the complex set of agreements of
the Round, and secondly, building capacities for maximizing opportunities
arising from these agreements.  In this regard, the provisions of the
Marrakesh Declaration and the ministerial decisions in favour of LDCs should
be fully implemented.
 
28.  A number of developed countries have set up in their own countries import
promotion agencies in order to promote more trade with LDCs.  Such agencies
have played a helpful role in providing support services and in acting as
contact points for business/trade missions from LDCs, undertaking market
research and giving publicity to LDC products.
 
29.  Trade among the LDCs, on the one hand, and that between LDCs and other
developing countries within the same subregional or regional economic
groupings, on the other hand, remains insignificant as a share of
international trade.  Only a few LDCs at present receive preferential
treatment for their exports under the Global System of Trade Preferences among
Developing Countries (GSTP) on a non-reciprocal basis.  Additionally,
subregional and regional trade is constrained by a number of obstacles, such
as the fact that most countries produce similar export products, that
subregional transport infrastructure is geared to trade with developed
countries, that progress in tariff reduction is limited due to fiscal revenue
implications for preference-giving countries, and that international support
remains limited.
 
 
                     VII.  EXTERNAL FINANCE
 
30.  It was noted with concern that ODA remains the single most important
source of external financing for LDCs.  While welcoming improved aid
performance by some donors, at the same time it was noted that overall aid
performance by donors fell short of the commitments undertaken in the
Programme of Action.  ODA flows (actual disbursements) from Development
Assistance Committee (DAC) countries, and multilateral agencies mainly
financed by them, to the LDCs declined sharply in 1993.  In absolute terms,
ODA flows fell by $1.5 billion.  Almost $1 billion of this was due to a drop
in multilateral aid flows to LDCs.  In view of the important role of
multilateral funding in meeting the financial needs of LDCs and the uncertain
resource outlook for some of the major multilateral financial institutions and
grant-based programmes, this is a particularly worrying development.  The
ODA/GNP ratio for DAC donors as a whole declined to 0.08 per cent in 1993 as
compared with 0.09 per cent in 1990.  Moreover, this shortfall has to be seen
against the agreed menu of aid targets and/or commitments as set out in
paragraph 23 of the Programme of Action for the Least Developed Countries for
the 1990s which call for a significant and substantial increase in resources
to LDCs and include, inter alia, the targets of 0.15 per cent and 0.20 per
cent of donor GNP as ODA.
 
31.  Donors have modified and improved their policies in the area of aid
modalities.  Most DAC donors have now shifted to a grant basis in their aid
programmes for LDCs, resulting in a further increase in the grant element of
bilateral ODA (which averaged 97 per cent in 1993).  Most multilateral funding
to LDCs is also on highly concessional terms.  Multilateral funding
constitutes an important complement to bilateral ODA for the LDCs and it is
crucial that the base of this multilateral funding be sufficiently broadened.
International efforts should continue to mobilize resources to LDCs
implementing structural adjustment programmes, such as the World Bank-led
Special Programme of Assistance (SPA) process, which in some cases have
resulted in limited progress.
 
 
            VIII.  EXTERNAL DEBT AND RELIEF MEASURES
 
32.  The external debt and its servicing burden remains a crucial issue for
the majority of LDCs.  According to Organization for Economic Cooperation and
Development/Development Assistance Committee (OECD/DAC) information, LDC total
debt stock amounted to $127 billion in 1993, corresponding to 76 per cent of
their combined GDP.  It appears that for half of these countries, their
external debt is equal to or exceeds their respective GDP.  The difficulties
many LDCs have in meeting their external obligations, in the context of the
critical current economic situation and their poor export performance, is
reflected in the relatively low levels of debt service paid in relation to
scheduled payments.  The share of multilateral debt in total long-term debt,
as well as debt service, has increased considerably in recent years.  Thus, in
1993 the multilateral debt constituted around 36 per cent of total debt of
LDCs as compared with 27 per cent in 1984.  The corresponding share in total
debt service during this period increased even more, from less than 30 per
cent to almost 50 per cent.  This increase partly reflects the "lender of last
resort function" of the international financial institutions and the fact that
an increasing number of bilateral creditors are relinquishing many of their
ODA claims to LDCs and have shifted from credit lending to grants.
Debt-relief measures taken so far have not yet fully provided an effective and
durable solution to the outstanding debt and debt-servicing burden of LDCs,
although important relief measures have been taken to reduce their debt stock
and debt-service obligations.  In particular, following the adoption of the
Toronto terms in 1988 (and enhanced Toronto terms in 1991), from which 19 LDCs
benefited, the Paris Club in 1994 improved the debt treatment of the poorest
countries by adopting the "Naples terms".  These may constitute a step forward
for the LDCs but might not be sufficient by themselves to resolve their
external debt problem.  Eight LDCs have already benefited from these
provisions, which notably offer the possibilities to reduce the eligible debt
of the poorest and most indebted countries by 50 to 67 per cent.
 
 
                IX.  ARRANGEMENTS FOR IMPLEMENTATION, FOLLOW-UP AND
                     MONITORING OF THE PROGRAMME OF ACTION
 
                     A.  The national level
 
33.  At the national level, review arrangements, including United Nations
Development Programme (UNDP)-sponsored round tables and the World Bank
consultative and aid groups, have been further consolidated during the early
1990s, with additional countries joining or rejoining the process and meetings
taking place more frequently and on a more regular basis.  A strengthened
country review process was considered the principal means of policy dialogue,
and for coordinating the aid efforts of development partners with the
development programmes of LDCs as well as mobilizing the required resources
for their implementation.  In all, over 60 full-scale consultative aid groups
and round table or similar meetings were organized from the adoption of the
Programme of Action until early 1995.  While results in terms of resource
mobilization have varied between countries, these meetings no doubt have an
important role to play in improving aid flows to LDCs and in aid coordination.
An important aspect of the country review process in recent years has been the
attempt to link these arrangements more closely to national policy-making and
programming.
 
 
                     B.  The regional level
 
34.  At the regional level, the Programme of Action called for monitoring
progress in economic cooperation between LDCs and other developing countries,
particularly those in the same region.  It also called for organizing cluster
meetings to improve and strengthen existing cooperation arrangements at the
regional and subregional levels.  The United Nations regional commissions
have, as part of their ongoing work, continued to follow up and monitor the
implementation of the Programme of Action in LDCs in their respective regions.
The Economic and Social Commission for Asia and the Pacific (ESCAP) has
established a Special Body on Least Developed and Land-locked Developing
Countries.  The Economic Commission for Africa (ECA) has continued to consider
progress in the implementation of the Programme of Action in African LDCs
during the annual meetings of the Commission.  However, owing to resource
constraints in the United Nations the cluster meeting process has not been
initiated.
 
 
                      C.  The global level
 
35.  At the global level, UNCTAD has responsibility as the focal point for the
monitoring, follow-up and review of the implementation of the Programme of
Action.  In addition to the regular follow-up, monitoring and review of
progress in the implementation of the Programme of Action at the global level
by the UNCTAD Trade and Development Board, efforts have also been made to
promote the full mobilization and coordination of all organs, organizations
and bodies of the United Nations system for the purpose of the implementation
and follow-up of the Programme of Action, but more remains to be done.
Individual agencies have continued to develop and implement assistance
programmes for the LDCs and pursued their advocacy and policy advisory
missions with regard to these countries.  There is need for regular reporting
of progress made by various agencies.
 
 
                           Part Three
 
                         RECOMMENDATIONS
 
36.  The present recommendations are based on the assessment of progress in
the implementation of the Programme of Action for the Least Developed
Countries for the 1990s presented above, as well as on information contained
in The Least Developed Countries 1995 Report, and recommendations made by the
expert groups convened by the UNCTAD secretariat as part of the preparations
for the High-level Intergovernmental Meeting on the Mid-term Global Review of
the Implementation of the Programme of Action for the Least Developed
Countries for the 1990s.  These recommendations cover a number of key areas of
concern for the LDCs.
 
 
                      I.  MAJOR CHALLENGES
 
37.  The challenges facing LDCs in the second half of the 1990s are to reverse
the decline in economic and social conditions, to promote sustainable economic
growth, development and structural transformation and to avoid becoming
further marginalized in the international economy.  An intensified policy
commitment by both LDC Governments and the international community will be
required to meet these challenges.  In implementing domestic policies, LDCs
should endeavour to focus on measures to restore and maintain macroeconomic
stability; to promote the growth and diversification of exports; to strengthen
an enabling environment for private sector investment and entrepreneurship; to
enhance human resources development; to continue to implement population and
development programmes with full respect for the various religious and ethical
values and cultural background of each country's people; to adhere to basic
human rights recognized by the international community which strike an optimal
balance in the interrelationship between their population, their natural
resource base and the environment, taking into account economic imperatives;
to strengthen the infrastructure; to promote good governance as mentioned in
the Programme of Action; to broaden popular participation in the development
process; and to ensure the full utilization of human resources along with
democratization, promotion of good governance, observance of the rule of law
and peaceful resolution of any civil conflicts where such conditions exist.
The broad outlines of a domestic economic policy framework conducive to
meeting the challenges facing the LDCs are delineated below.
 
 
               II.  THE ECONOMIC POLICY FRAMEWORK
 
38.  (a)  Macroeconomic stability would require rationalization and sound
management of public expenditure, properly planned monetary growth and
maintenance of appropriate exchange rates commensurate with ensuring a
sustainable external balance;
 
     (b)  Policies to increase export earnings, including appropriate exchange
rate and trade policy reforms to reverse the decline in the share of world
trade of the LDCs, diversify the composition of their export structure and to
facilitate their ability to exploit opportunities arising from the Final Act
of the Uruguay Round, are essential;
 
     (c)  This will entail strengthening of existing policies and measures for
the promotion and support of the private sector complemented with public
investment, including policy-based incentives or the adoption of new policies
and measures where necessary;
 
     (d)  The potential for economic and technical cooperation between LDCs
and other developing countries merits further exploration.  The international
community should help LDCs promote trade links and should take appropriate
measures to support such trade links, particularly subregional and regional
trade.  Such trade could be promoted by identifying complementarities in
production structures among countries, strengthening the institutional and
human capacities for the operation of subregional trading arrangements,
establishing subregional trade information networks, and associating the
private sector more closely with the integration process.  There are potential
gains for the LDCs in participating in the Global System of Trade Preferences
among Developing Countries (GSTP).  LDCs should be encouraged to accede to
GSTP and be provided with appropriate technical assistance to enable them to
benefit fully from the system.  Least developed countries should strengthen
subregional, regional and interregional cooperation in order to benefit from
economies of scale and to attract foreign direct investment more easily from
developed and other developing countries.  More attention should be given to
promoting triangular cooperation and technical cooperation among developing
countries (TCDC) as well as South-South joint ventures and economic
cooperation among developing countries (ECDC) investment in these countries;
 
     (e)  The growth of a dynamic private enterprise sector requires an
appropriate economic, fiscal and legal framework.  Essential features of this
framework are stable and predictable policies, tax, monetary and trade
policies which ensure adequate incentives for investment, and a legal system
which protects property rights and commercial contracts.  These features are
also needed to tap into international capital flows in the form of direct and
portfolio investments;
 
     (f)  Enhancing human resources development is imperative if LDCs are to
raise productivity, output and living standards.  With the support of the
international community, LDC Governments should intensify their efforts to
raise education and training standards, promote life-long learning, improve
the health status of their populations, and strengthen the status of women, by
implementing appropriate policies in accordance with the provisions of the
International Conference on Population and Development and the Fourth World
Conference on Women;
 
     (g)  To enable women in LDCs to play their full role in development,
efforts should focus on legislative and administrative reforms to give women
full and equal access to economic resources, including the right to
inheritance and to ownership of land and other property, credit, natural
resources and appropriate technologies, and to involve women directly in
planning, decision-making, implementation and development of macroeconomic and
social policies, programmes and projects.  Special initiatives and innovative
schemes which can give women increased access to credit, training, information
on marketing channels, as well as other support services, to alleviate the
burden of their role as mothers and housewives, should be adopted;
 
     (h)  The economic policy strategies adopted by the LDCs should be
consistent with the need to eradicate the chronic levels of poverty afflicting
these countries, in particular by promoting the development of the private
sector and entrepreneurship, by ensuring that all people have access to
productive resources, and benefit from a policy and regulatory environment
that enhances their overall capacities and empowers them to benefit from
expanding employment and economic opportunities;
 
     (i)  LDC Governments are attempting to implement comprehensive structural
adjustment reforms in very difficult circumstances, often in the face of
severe administrative and financial constraints.  Many of the constraints that
they face are structural, deep-seated and not amenable to short-term
solutions.  Consequently, successful structural adjustment reforms require a
government commitment to reform, and a medium-term to long-term perspective
for implementation;
 
     (j)  In order to ensure that structural adjustment programmes include
social development goals, in particular the eradication of poverty, the
generation of productive employment and the enhancement of social integration,
LDC Governments, in cooperation with the international financial institutions
and other international organizations, should:
 
     (i)  Protect basic social programmes and expenditure, in particular those
          affecting the poor and vulnerable segments of society, from budget
          reductions;
 
    (ii)  Review the impact of structural adjustment programmes on social
          development by means of gender-sensitive social-impact assessments
          and other relevant methods, and develop policies to reduce their
          negative effects and improve their positive impact;
 
   (iii)  Further promote policies enabling small enterprises, cooperatives
          and other forms of micro-enterprises to develop their capacities for
          income generation and employment creation;
 
     (k)  Agreeing on a mutual commitment between interested developed and
developing country partners to allocate, on average, 20 per cent of ODA and 20
per cent of the national budget, respectively, to basic social programmes, and
in this context, the proposal of the Government of Norway to host a meeting in
1996 among interested countries and representatives of relevant international
institutions, with a view to considering how the 20/20 initiative can be
applied operationally, is welcomed;
 
     (l)  Commitment of the LDCs and the assistance of the international
community are essential components for the success of structural adjustment
programmes.  Without such support, the long-term objectives and the
sustainability of the programmes will be jeopardized.  In this regard,
therefore, renewed commitments by the international community as defined by
the Programme of Action adopted in Paris and other relevant instruments to
support the efforts of the LDCs with adequate resources is vital.
 
 
               III.  EXTERNAL TRADE AND INVESTMENT
 
39.  The extremely low export capacity of LDCs, their very low level of export
receipts, and the fluctuation and the resulting sharp limitation on their
capacity to import, are the major structural constraints to developing LDC
trade.  This situation is more acute in the case of land-locked and island
least developed countries, as their external trade is further impeded by high
transportation costs.
 
40.  Action by the international community, including increased technical
assistance as foreseen in the Marrakesh Ministerial Decision on Measures in
Favour of LDCs, complemented by adequate financial support, can help LDC
efforts to increase export earnings through increased production in both the
traditional and the modern sectors of the economy, through diversification of
the commodity structure and export markets, and thereby help to obtain better
prices for their export commodities.  It can also help LDCs to mitigate any
adverse effects of the implementation of the Uruguay Round agreements and to
integrate themselves better into the international trading system.  The
interest of LDCs regarding the idea of considering the setting up of a "safety
net" to help them cope with any such effects in the immediate and short term
was noted.  The Final Act of the Uruguay Round of multilateral trade
negotiations, including the special clauses providing differential and more
favourable treatment, and the decision on measures in favour of least
developed countries, provide the institutional framework for these matters.
 
 
                                A
 
41.  All provisions of the Final Act of the Uruguay Round should be
effectively applied.  In this regard, concrete action, as appropriate, should
be taken, consistent with the Final Act, to fully and expeditiously implement
the Marrakesh Declaration as it relates to LDCs, and the Ministerial Decision
on Measures in Favour of LDCs, and to give effect to the Ministerial Decision
on Measures Concerning the Possible Negative Effects of the Reform Programme
on Least Developed and Net Food-importing Countries, with a view to enhancing
LDC participation in the multilateral trading system, taking into account the
impact of trade liberalization, and the relatively weak capacities of LDCs to
participate in an increasingly competitive global market in goods and
services.
 
42.  Consideration shall be given to further improving GSP schemes and other
schemes  for products of particular export interest to LDCs, e.g. agricultural
products, fish and fish products, leather and footwear, and textiles and
clothing, through, where possible, the widening of product coverage; the
reduction of procedural complexities, and the avoidance of frequent changes in
the schemes.  Consideration should also be given to a significant reduction in
tariff escalation.
 
43.  The rules set out in the various agreements and instruments and the
transitional provisions of the Uruguay Round, including those relating to
anti-dumping, countervailing duties, safeguards, and rules of origin, should
be applied in a flexible and supportive manner for the least developed
countries.
 
44.  As for textiles and clothing, consideration should be given, to the
extent possible, to permitting meaningful increases in the possibilities of
access for exports from LDCs.
 
45.  In the area of services, efforts should be directed at building and
strengthening the efficiency and competitiveness of the weak domestic service
sectors of the LDCs.  Their participation in trade in services could be
enhanced by effective application of article IV of the General Agreement on
Trade in Services (GATS) with special priority given to LDCs.  Furthermore,
ways should be explored to facilitate LDC access to information technology and
networks and distribution channels, and to give easy access to information to
LDC service suppliers through contact points to be established, in accordance
with GATS.  It was noted that the movement of labour for the provision of
services to other countries is an area of interest to LDCs.
 
46.  Care should be taken so that domestic laws and regulations of importing
countries in areas such as labour and the environment do not constrain the
export opportunities of LDCs in a manner inconsistent with the Final Act of
the Uruguay Round.
 
47.  The home countries of foreign investment are urged to encourage
investment in LDCs by taking appropriate supportive action.
 
48.  South-South cooperation at the subregional and regional levels should be
promoted to enhance regional and subregional trade by providing market access
for LDCs by neighbouring countries.  Appropriate measures should be taken to
promote, support and strengthen trade initiatives of LDCs in subregional and
regional groupings.  Efforts of the LDCs to diversify their exports need to be
supported so that their trading prospects become more viable.  Such
cooperation can be critical in complementing actions by LDCs and their
development partners to attract foreign investment to LDCs.  Measures should
be taken to grant preferential access to the exports of LDCs on a
non-reciprocal basis by developing countries under the GSTP, and also to
augment resources, where appropriate, for promoting economic cooperation among
developing countries (ECDC) and technical cooperation among developing
countries (TCDC) through multilateral and bilateral institutions.  Developing
countries should, inter alia, introduce preferential schemes for LDCs under
the GSTP.
 
 
                                B
 
49.  Technical assistance should be refocused and wherever necessary
intensified to help LDCs adapt to and take advantage of the new trading
environment created by the conclusion of the Uruguay Round.  Common efforts of
donors, international organizations as well as the LDCs themselves are needed
in the implementation of the commitments undertaken and for maximizing the
opportunities arising from the Uruguay Round agreements.  Main areas of
technical assistance in this regard should include:
 
     (a)  Enhancing institutional and human capacities to comply with the new
obligations arising from membership of the World Trade Organization (WTO) or
to assist LDCs to accede to WTO, as well as to formulate and implement future
trade policy;
 
     (b)  Developing and strengthening supply capabilities in relation to
tradeable goods and services, and the competitiveness of enterprises;
 
     (c)  Improving the microeconomic trading environment and expanding the
use of new communications technologies in the service of trade through the
UNCTAD Trade Efficiency Programme;
 
     (d)  Enhancing the capability to make full use of GSP schemes;
 
     (e)  Supporting commodity diversification and marketing efforts;
 
     (f)  Expanding the trading and investment opportunities of LDCs, in
particular, by identifying new trading opportunities which could be carried
out, inter alia, through import promotion agencies by developed and other
countries, developing an environment conducive to attracting foreign
investment, and through advice and technical support.
 
50.  With a view to achieving these aims, it is essential to eliminate
duplication and strengthen cooperation between relevant international
organizations, in particular UNCTAD, WTO and the International Trade Centre
UNCTAD/GATT, in order to conserve scarce resources and make full use of the
existing and potential synergies among these organizations.  Among the
measures that should be considered is the establishment of a technical
assistance fund administered by WTO in order to help LDCs participate actively
in WTO.
 
 
                      IV.  EXTERNAL FINANCE
 
51.  The overwhelming dependence of LDCs on official development assistance
(ODA) is likely to continue during the rest of the present decade and beyond.
The basic policy issues that the international community faces in this respect
in the current climate of budgetary stringency and ODA scarcity, are:  (a) how
to improve aid allocations to the LDCs; and (b) how to enhance the quality and
effectiveness of assistance to these countries.  Donors need to expeditiously
implement the agreed menu of aid targets and/or commitments as set out in
paragraph 23 of the Programme of Action and fulfil their commitments to
provide a significant and substantial increase in the aggregate level of
external support to LDCs, keeping in mind the increased needs of these
countries, as well as the requirements of the new countries included in the
list of LDCs following the Paris Conference.  The various provisions of the
relevant resolutions adopted in the General Assembly in recent years, as well
as the various relevant provisions adopted by recent major United Nations
conferences, in particular the World Summit for Social Development, should
also be taken into account, as adopted.
 
52.  In view of the enhanced assistance capacities of a number of developing
countries over the last few years, they should be invited to join the
traditional donor countries in providing assistance to the LDCs.
 
53.  The following measures and actions by donors can be highlighted:
 
     (a)  Specific measures to incorporate the agreed menu of aid targets
and/or commitments as set out in paragraph 23 of the Programme of Action more
explicitly into the national aid strategies and budgetary planning mechanisms
of donors;
 
     (b)  Ensure adequate funding of the multilateral institutions and
programmes which are major sources of financing for LDCs.  Particular
attention will have to be paid to replenishment of the International
Development Association (IDA) and the soft-term windows of the regional
development banks, and other grant-based multilateral programmes.  The
relevant multilateral financial institutions are also invited to explore the
possibility of tapping new sources of funds to help support LDC development
efforts; 
 
     (c)  Support United Nations development efforts by substantially
increasing the resources for operational activities on a predictable,
continuous and assured basis commensurate with the increasing needs of
developing countries as stated in General Assembly resolutions 47/199 of 22
December 1992 and 48/162 of 20 December 1993, while giving particular
consideration to the special needs of LDCs as underlined in the programmes of
action of major United Nations conferences organized since 1990;
 
     (d)  Continue to give high priority to LDCs in the operational activities
of all parts of the United Nations system for development, bearing in mind
decision 95/23 of 16 June 1995 of the Executive Board of the United Nations
Development Programme and of the United Nations Population Fund, in which it
is stated that 60 per cent of UNDP programme resources in its future
programming arrangement should be allocated to LDCs;
 
     (e)  Continue to provide financial support to adjustment programmes in
LDCs on a timely basis and on terms adapted to the special needs and
circumstances of LDCs, adequate external financing for the development and
diversification of the productive sector, as well as additional support for
poverty eradication, environmental conservation and social programmes;
 
     (f)  An increased level of technical assistance should be provided to
LDCs and priority should be given to skill transfer, with a view to developing
national capacity;
 
     (g)  Ensure the maintenance of mutual transparency and accountability in
the management of aid resources by the aid officials of donor countries/
organizations and managers in recipient countries, as well as ensure the
active support of the donor countries/organizations towards the promotion of
ownership of development programmes by the recipient countries;
 
     (h)  The international community should support the measures being taken
in the LDCs towards the eradication of poverty.  Increased resources should be
made available from all possible sources, public and private, in this regard.
 
 
                        V.  EXTERNAL DEBT
 
54.  Many LDCs face serious debt problems and more than half are considered
debt-distressed.  The serious debt problem of the LDCs necessitates
strengthened efforts on the international debt strategy.  This strategy should
include concrete measures to alleviate the debt burden and increased
concessional financing, in support of appropriate economic policy measures,
which will be critical to the revitalization of growth and development.
Debt-distressed LDCs should benefit from substantial debt-relief schemes.
 
 
                   A.  Official bilateral debt
 
55.  (a)  All donors that have not already done so are urged to implement
Trade and Development Board resolution 165 (S-IX) of 11 March 1978 by
cancelling or providing equivalent relief for ODA debt as a matter of priority
in such a way that the net flows of ODA are improved for the recipient.  Those
creditors still holding such claims, including non-OECD creditors, are urged
to take similar measures;
 
     (b)  Adopt measures to substantially reduce the bilateral debt of the
LDCs, in particular the countries of Africa, as soon as possible;
 
     (c)  Paris Club creditors are invited to continue to implement
expeditiously and in a flexible manner the very concessional treatment under
the Naples terms;
 
     (d)  Other non-Paris Club creditors are also invited to take similar
measures in order to alleviate the debt burden of debt-distressed LDCs,
including by setting up special debt-reduction programmes and debt-relief
mechanisms.
 
 
                      B.  Multilateral debt
 
56.  In order to address the multilateral debt problems of LDCs, the Bretton
Woods institutions are encouraged to develop a comprehensive approach to
assist countries with multilateral debt problems, through the flexible
implementation of existing instruments and new mechanisms where necessary.  In
this respect the Bretton Woods institutions are encouraged to expedite the
ongoing consideration of ways to address the issue of multilateral debt.
Other international financial institutions are invited to consider, within the
scope of their mandates, appropriate efforts with a view to assisting LDCs
with multilateral debt problems.
 
 
                       C.  Commercial debt
 
57.  (a)  Invites creditor countries, private banks and multilateral financial
institutions, within their prerogatives, to consider continuing the
initiatives and efforts to address the commercial debt problems of the LDCs;
 
     (b)  Mobilize the resources of the Debt Reduction Facility of the
International Development Association in order to help eligible least
developed countries to reduce their commercial debt, considering alternative
mechanisms to complement that Facility.
 
58.  In accordance with the Copenhagen Declaration on Social Development,
techniques of debt conversion applied to social development programmes and
projects should be developed and implemented.
 
 
       VI.  ARRANGEMENTS FOR IMPLEMENTATION, FOLLOW-UP AND MONITORING
                   OF THE PROGRAMME OF ACTION
 
59.  It is important that UNCTAD, which is the focal point at the global level
for the monitoring, follow-up and review of the implementation of the
Programme of Action, has sufficient capacity and resources to follow up the
outcome of the mid-term global review.  In this regard, it is recalled that
the General Assembly, in resolution 49/98, invited the Secretary-General to
make recommendations to the General Assembly at its fiftieth session with a
view to ensuring that the UNCTAD secretariat has sufficient capacity to
undertake an effective follow-up of the outcome of the mid-term review as well
as the follow-up of the conclusions and recommendations relating to LDCs
adopted by major global conferences, as appropriate.
 
      

 

 



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