POVERTY: UN Summit Endorses Plan to Lift Millions Out of Poverty

May 13 2011
A United Nations conference on the world's poorest countries adopted a plan Friday that stresses the importance of foreign investment and the private sector in lifting millions of people out of poverty.

The fourth Conference of the Least Developed Countries ended with the goal of halving the number of the current 48 Least Developed Countries, or LDCs, by 2020.
The head of the Global LDC Coordination Bureau is Nepal Foreign Minister Upendra Yadav. He says achieving this goal is in the interests of the international community.
"No country or region can remain aloof from each other. Prosperity for all is a must for sustainable peace and global security. Islands of prosperity cannot be sustained in a sea of poverty for long," he said.
The emphasis on productive capacity -- energy, infrastructure and agriculture -- marked the most significant difference from the last LDC action plan in Brussels in 2001, which concentrated on health, education and other social programs.
The nearly 50-page Istanbul action plans set out recommendations for rich and poor countries and covers climate change, aid, health and foreign direct investment. It stresses the importance of developing cooperation and support between LDCs and emerging markets.
As for the goal of halving the number of LDCs, Cheick Sidi Diarra, U.N. undersecretary general and high representative for the LDCs, says five or six countries are in line to "graduate" in the next two years, including Equatorial Guinea, Angola, Timor Leste, Bangladesh and Nepal.
"All the advantages would be withdrawn from them once they graduated. In order to make it acceptable and agreeable, it has been decided that a process of smooth transition will be put in place in order that these countries don't lose abruptly the assistance that they (are) receiving from the international community," Diarra said.
Diarra says with the world still struggling to shake off the worst financial crisis since the Great Depression of the 1930s, attaining such targets will be difficult. That is why, he says, the future lies more with foreign direct investment and the private sector.
Turkish Foreign Minister Ahmet Davutoglu says Turkey has become a voice for the LDCs and will continue to do so. "Turkey will be happy to host again just for a much broader, much more comprehensive assessment in 2015," he said.
Turkey also announced it will continue its support to LDCs by offering 1000 university scholarships. Turkey, as a percentage of gross domestic product ((GDP)), is now among the biggest donors to the developing world.
http://www.voanews.com/english/news/economy-and-business/UN-Summit-Endorses-Plan-to-Lift-Millions-Out-of-Poverty-121806804.html

POVERTY: Study: Poorest Countries Must Diversify to Break Out of Poverty Cycle

Lisa Schlein: Geneva 25 November 2010

 Photo: AP
A woman shops in a well-stocked food shop in Bujumbura, Burundi (File)

A new United Nations study argues the Least Developed Countries must diversify and modernize their economies to achieve development and break out of their poverty trap. The UN Conference on Trade and Development's 2010 Least Developed Countries report says LDC's are stuck in old ways of doing things and this is preventing them from moving their economies forward.
The report says the world's 49 poorest countries have done a fair job of weathering the global downturn. But, it says they are still trapped in the so-called boom-bust cycles, which have long plagued their economies.
The report says the Least Developed Countries must develop their abilities to produce an increasing range of higher value-added goods and services through expanding investment and innovation.
Otherwise, it warns they will have difficulty achieving substantial and lasting poverty reduction. UNCTAD Secretary-General, Supachai Panitchpakdi, says LDCs are too heavily dependent on exports of primary commodities and low-value-added manufactures.
"LDC's have shown positive trends in the trade activities. But, it is mainly driven by commodities and mainly oil and gas and all these primary commodities. They have not been able to benefit from any global trends to wean themselves away from increasing dependence on commodities," said Panitchpakdi.
Supachai says there has been very little diversification into manufacturing activities. He says only the LDCs in Asia have been relatively successful in diversifying their economies.
New poverty figures estimate the number of people in extreme poverty has increased by three million per year during the boom years of 2002 and 2007. In 2007, the figures show more than 420 million people were living in poverty, that is twice as many as in 1980.
UNCTAD economists note the focus of support for LDCs is mainly in the area of trade. They say this must change and greater emphasis must be put on helping the poor countries expand other areas of economic interest.
The report argues the need for more and new forms of financial assistance to support the LDCs domestic activities. It says technology and commodities, as well as climate change adaptation and mitigation also should be given priority.
The main author of the report, Zeljko Kozul-Wright, says globalization has not treated everyone well or equally. She says the LDC's have been on the losers' side.
Kozul-Wright says the LDC's must break free of their dependence on trade in exports because business as usual will not deliver growth.
"We also believe that South-South linkages offer significant growth opportunities for all developing countries, including LDCs through free trade and investment flows. And, indeed, one of the reasons for the resilience of LDCs to the shock owes something to the growth of these linkages in recent years, and it is particularly strong in Asia," she said.
The report says LDCs face a difficult medium-term outlook. It says low investment levels and weak financial development continue to pose serious concerns.
Therefore, it says the world's poorest countries will depend largely on the speed of economic recovery in the rest of the world and on increased support from international donors.
http://www.voanews.com/english/news/africa/pan/Poorest-Countries-Must-Diversify-to-Break-Out-of-Poverty-Cycle-110654304.html