UNCTAD XII Should Signal Resolve of International Community to Tackle Causes of Food Crisis and Other Urgent Development Challenges
Accra, 21 April 2008 — Secretary-General Supachai Panitchpakdi urged UNCTAD XII to reach an agreement this week that sends a signal of the international community’s renewed resolve to make globalization deliver for the world’s poorest.
Addressing the opening plenary of twelfth ministerial meeting of the United Nations Conference on Trade and Development, Dr. Supachai called on the organization’s 193 member states to cap six months of negotiations with a full agreement that addresses urgent challenges. These include tackling the root causes of the current food crisis, which he said “threatens to undo seven years of progress in poverty reduction.” Among other pressing issues cited by the Secretary-General were risks to developing countries from current economic and financial turmoil, the persistence of deep poverty in African and other least-developed countries, meeting the energy needs of the poor without undermining food production and the threat that climate change poses to economic development.
“All of these urgent challenges await fresh thinking and fresh approaches for an integrated solution. This conference can send a signal of resolve, and should mandate the UNCTAD to mobilize its full intellectual and operational resources in addressing these issues,” Dr. Supachai said.
UNCTAD’s quadrennial ministerial meetings address key trade and development issues as well as set organization’s mandate and work priorities. UNCTAD XII, running from 20 to 25 April, has as its theme Addressing the opportunities and challenges of globalization for development. Dr. Supachai spoke at the opening of the Committee of the Whole, which reports back to the conference on substantive issues, most notably the negotiating text for agreed conference conclusions.
“This forum is the heart of UNCTAD XII, and it is here that we must find consensus on the state of the world’s economy, its challenges and opportunists for development, and on the appropriate policies to address them. The people of the world are looking to this conference …. Let us not disappoint them,” Dr. Supachai said.
Such policies must reflect a dramatically altered international context, in which developing countries play an increasingly vital economic role. The share of developing countries in world trade grew from 29% to 37% between 1996 and 2006, reflecting strong export performance by dynamic emerging economies. Moreover, economic ties between developing countries are growing stronger, with South-South trade almost quadrupling in the past decade to reach over $2 trillion, or 17% of world trade. There are similar trends regarding investment and finance, as developing countries not only draw more investment but also account for increased outward investment.
These changes require “us to adjust our thinking about development, and to design innovative policy responses. Strengthened economic cooperation among developing countries must be a key priority,” Dr. Supachai said.
In his speech, the UNCTAD Secretary-General highlighted the success achieved by conference host country Ghana in reducing poverty, expanding international trade and attracting foreign investment. “Ghana has shown that with the right policies, institutions, and favourable external conditions, globalization can be harnessed for development,” Dr. Supachai said.
UNCTAD members began discussions on the negotiating text for UNCTAD XII conference conclusions. Negotiations aimed at reaching a consensus are continuing in Accra during daily sessions of the Committee of the Whole, which is scheduled to hold a closing plenary on April 25.
