LDCs IN COTONOU :
MAJOR CONSULTATIONS TO MEET
THE CHALLENGE

One year after Brussels Conference on LDCs followed by Monterrey Conference on Development Financing in March 2002 as prelude to Johannesburg Meeting on Sustainable Development, Cotonou Ministerial Meeting becomes a major event. It appears as a need for LDCs to conduct a kind of a rehearsal in view of future negotiations.

Since the establishment of the ‘’Least Developed Countries’’ Group by the United Nations in 1971, the number of such countries whose identification criteria are economically and socially worrisome has virtually doubled. From the start, they were 25 and now 49 – with Senegal which joined them recently – divided in four regional groups (Africa, Asia, Pacific and Caribean States) – they have the lowest human development indicators, the highest population growth rates whose environmental impact became a serious threat to the balance of the eco system ; they have low incomes (less than 900 dollars per capita per annum) with a low literacy rate and a short life expectancy, the whole in a context of ongoing economic vulnerability. Nevertheless, LDCs possess their cultural, even political peculiarities to be taken into account in their analyses.

POVERTY

By deciding to classify them specific economic grouping, the international community found them structurally handicapped in their development, thus running, more than other developing countries, the risk of not overcoming poverty and therefore deserving a particular attention in development assistance. Thirty years after, LDCs group remains the scene of major challenges among which the emergence of poverty.

The overall image displayed by LDCs is first and foremost a permanent agriculturally – dependent economy. Seventy percent (70o/o) of the population indulge in agricultural related activities in general. This sector contributes to more than one third of the GDP and about 40o/o of exports. The other not new challenge, but particularly exacerbating today and which LDCs should take up are inter and intra state conflicts, secessional upheavals and rebellious terrorism. The openness of borders does not favour such a situation in that it seriously benefits illegal traffickings including arms trafficking.

This stands as an additional difficulty in the democratisation process whose financing is not always obvious.

The financing challenge is a key concern for LDCs. Private sector enterprises mainly in small scale agriculture and the urban informal sector are under capitalised.

FINANCING

The lack of investment in LDCs economies can widely be felt in areas of physical infrastructures, training in human resources and health, the up-keeping of an efficient public service and public order. As it can be noted, the needs here are expressed in short term non-productive areas. The free financing on local resources is therefore restricted as a result of high poverty and poor incomes. At the same time, assistance flows decrease and it is noted that LDCs do not attract private capitals that are supposed to redress economies.

That is somehow what led the UN, during the Third Conference on LDCs held in Brussels, to lay the foundations of a new global commitment in favour of such poor countries.

Against this background, a special attention was given to issues and answers relating to good governance, human resource development, human capacity building and productive capacity, trade promotion, reduction of vulnerability to external impacts, environmental protection and increase of available development financial resources.

AGENDA

In view of this new commitment in favour of LDCs, the Cotonou meeting is an opportunity for this group of poor countries to review the concerns as part of the follow up to the major world events, including Doha Ministerial Meeting of the World Trade Organisation and Monterrey Conference on Development Financing. The agenda is not less important in the next months. It should be noted, among other key international meetings, the World Summit on Sustainable Development in Johannesburg, the 57th Session of the UN General Assembly and the 13th Session of LDCs Ministers of Foreign Affairs.

LDCs should harmonise their concerns and adopt a strategy for resource mobilization toward LDCs Programme of Action financing.