LDCs' debts and market access
Friday, 26 October 2007
Ahmed Sobhan
The least developed countries (LDCs) have been so categorized for special or preferential treatment by the rich and resourceful countries. Unlike countries at other stages of development described as middle-income and semi-developed ones, the LDCs are at the bottom rung deserving concessions in trading matters and developmental assistance from the developed countries.
Bangladesh is now heading a caucus of 50 identified LDCs at the world stage. This has again created for Bangladesh both opportunities as well challenges in exercising the leadership role with the dedication it requires. Countries grouped under a particular category, if they are represented by dynamic persons or governments, can achieve quite a lot at the international level to promote their interests collectively. Examples would be Brazil and India which are both developing but middle income countries and they were noted for successfully advocating and urging issues of interest to them at the Doha round of talks of the WTO. Bangladesh should aim to play out a similar leadership role in to-day's international context so that this can prove to be of great benefit to it as well as serving the group interests of all the LDCs. This has to be a pro-active role. Waiting indefinitely for meetings to be scheduled or just waiting responses without goading, sensitizing or applying other means of persuasion on the targeted countries, results cannot be expected. In this context, activism and dynamism only can speed up the two-way dialogue between the LDCs and the rich countries which is essential for arriving at a fruitful outcome at an early date. Thus, Bangladeshi authorities need to be resolved to be a real mover and doer to get the LDC interests highlighted, understood and acted upon at the fastest. The foreign ministry should consider staffing a separate cell with capable persons drawn into it also from other relevant ministries to formulate and discuss LDC policies as well as the strategies to push forward for their acceptance. The cell may include specialists from outside the civil services to be able to accomplish well its tasks.
Meanwhile, the Finance Adviser told a high-level dialogue of the United Nations General Assembly last Wednesday to waive the debts of the LDCs and create market access for their trade. He also stressed on freer labour migration from the LDCs. All of these are meritorious proposals indeed. Many of the LDCs such as the African ones are direly in need of very urgent debt relief. Actions taken in this line by the rich countries can be of the greatest immediate value to them. Other Asian LDCs such as Bangladesh would welcome conditions created for better market access of LDC products to the developed countries. For instance, Bangladesh's main export product, readymade garments (RMG), has not yet got the permission of duty free entry in its biggest market in the USA. But providing this facility alone can enormously help the RMG industries to survive and expand when these are facing very stiff competition from rival producers of some developing countries with economies much stronger than Bangladesh.
The rich countries ought to facilitate the greater inflow of LDC products into their markets because the same can be more valued than direct aids and grants. Helping workers in increasing number from the LDCs to take up employment in the developed countries, has the same effect. Foreign aids and grants are often misused or misappropriated. But trade facilitation leads to more economic activities, job creation and earnings in the poorest countries and also plays a part in transforming them from the pathetic seekers of aid to countries standing on their own feet and earning their sustenance.
However, this is not to say that the developed countries should not meet their long standing pledge of contributing 0.2 per cent of their gross natural product (GNP) as official developmental assistance to the LDCs. The meeting of this target is of crucial significance for some African LDCs like Ethiopia and Somalia which are going through great human sufferings.
The least developed countries (LDCs) have been so categorized for special or preferential treatment by the rich and resourceful countries. Unlike countries at other stages of development described as middle-income and semi-developed ones, the LDCs are at the bottom rung deserving concessions in trading matters and developmental assistance from the developed countries.
Bangladesh is now heading a caucus of 50 identified LDCs at the world stage. This has again created for Bangladesh both opportunities as well challenges in exercising the leadership role with the dedication it requires. Countries grouped under a particular category, if they are represented by dynamic persons or governments, can achieve quite a lot at the international level to promote their interests collectively. Examples would be Brazil and India which are both developing but middle income countries and they were noted for successfully advocating and urging issues of interest to them at the Doha round of talks of the WTO. Bangladesh should aim to play out a similar leadership role in to-day's international context so that this can prove to be of great benefit to it as well as serving the group interests of all the LDCs. This has to be a pro-active role. Waiting indefinitely for meetings to be scheduled or just waiting responses without goading, sensitizing or applying other means of persuasion on the targeted countries, results cannot be expected. In this context, activism and dynamism only can speed up the two-way dialogue between the LDCs and the rich countries which is essential for arriving at a fruitful outcome at an early date. Thus, Bangladeshi authorities need to be resolved to be a real mover and doer to get the LDC interests highlighted, understood and acted upon at the fastest. The foreign ministry should consider staffing a separate cell with capable persons drawn into it also from other relevant ministries to formulate and discuss LDC policies as well as the strategies to push forward for their acceptance. The cell may include specialists from outside the civil services to be able to accomplish well its tasks.
Meanwhile, the Finance Adviser told a high-level dialogue of the United Nations General Assembly last Wednesday to waive the debts of the LDCs and create market access for their trade. He also stressed on freer labour migration from the LDCs. All of these are meritorious proposals indeed. Many of the LDCs such as the African ones are direly in need of very urgent debt relief. Actions taken in this line by the rich countries can be of the greatest immediate value to them. Other Asian LDCs such as Bangladesh would welcome conditions created for better market access of LDC products to the developed countries. For instance, Bangladesh's main export product, readymade garments (RMG), has not yet got the permission of duty free entry in its biggest market in the USA. But providing this facility alone can enormously help the RMG industries to survive and expand when these are facing very stiff competition from rival producers of some developing countries with economies much stronger than Bangladesh.
The rich countries ought to facilitate the greater inflow of LDC products into their markets because the same can be more valued than direct aids and grants. Helping workers in increasing number from the LDCs to take up employment in the developed countries, has the same effect. Foreign aids and grants are often misused or misappropriated. But trade facilitation leads to more economic activities, job creation and earnings in the poorest countries and also plays a part in transforming them from the pathetic seekers of aid to countries standing on their own feet and earning their sustenance.
However, this is not to say that the developed countries should not meet their long standing pledge of contributing 0.2 per cent of their gross natural product (GNP) as official developmental assistance to the LDCs. The meeting of this target is of crucial significance for some African LDCs like Ethiopia and Somalia which are going through great human sufferings.