Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States - Graduation

Statement on Asia-Pacific LDCs' Graduation, Trade and Pandemic

Anonymous — Thu, 28 Jan 2021 19:51:00 +0000

Statement by Ms. Fekitamoeloa Katoa‘Utoikamanu, High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States

27 January 2021
New York, USA

Excellencies,
Colleagues,
Ladies and gentlemen,

First, I would like to thank ESCAP for organizing this webinar meeting.

Graduation and the issues and challenges surrounding it have long been at the core of the work of the United Nations system and of the work we do at OHRLLS.

Graduation from the LDC category is more than a symbolic step in a country’s development journey.

The label, if I may say so, sends a strong signal about strength and stability in socio-economic progress, encourages investors, and encourages the business community.

In turn, that means greatly enhanced potential for trading, investment and commercial activities.

I stress that we talk potential because , let us be clear, the overall set of development challenges that a country faces as an LDC do not disappear overnight with graduation.

Take, for example, a shared threat cutting across all graduating LDCs. That is the threat of their extreme vulnerability to climate change and related hazards.

Let us also not forget that graduation means the end of access to LDC-specific international support measures. It also implies loss of flexibility in the implementation of various international agreements, including TRIPS.

Ever since the advent of the global COVID pandemic, we can see that graduation faces additional challenges given the intertwined health, economic and financial consequences of COVID-19.

The pandemic spreads at a rapid pace through weak and vulnerable health system. The new and emerging variants and mutations pose additional and not yet really known threats.

The protracted economic recession triggered by the pandemic will result in massive economic downturns and, let us not overlook this, societal disruptions all threatening hard won gains and stability.

The impact is likely to be the hardest on micro-, small- and medium-sized enterprises (MSMEs), on the informal sector and the labour markets of graduating LDCs. Yet, this often is the engine room for growth in LDCs!

The pandemic’s impacts on exports of goods and services coupled with growing costs of imports are likely to result in growing trade deficits of LDCs exceeding those of the pre-COVID levels.

Export items graduating LDCs rely on- like RMGs, fuels and tourism services - will be hit hard.

The small island LDCs are projected to be hardest hit by the severe downturn in world tourism. Yet, tourism is their GDP driver !

What is already clear is that this puts into question the achievement of SDG target 17.11- which is “doubling the LDCs’ share of exports by 2020 compared to 2011”.

Add to this that remittances, another major source of income for some graduating countries, are also under stress. This will further worsen the current account balance of countries.

More than ever timely, adequate and appropriate external support must kick in if we do not want to lose the hard won gains countries achieved in the past on their trajectory to a sustainable and inclusive development for their peoples.

However, we are concerned that all categories of external flows of funding are either waning or at best stagnant.

In short, the multifaceted challenges graduated and graduating LDCs are confronted with , demand NOW and not tomorrow bold and decisive action.

What is at stake is to ensure that the encouraging development trends of graduating countries remain sustained and can reach a higher trajectory.

I believe there is a mix of measures we could consider taking.

First : policies and measures must be taken to recover from the massive impacts of COVID-19. Reinforcing the public health infrastructure ecosystem is needed more than ever. The Secretary-General has already appealed to make vaccination as a global public good.

Graduating countries and other LDCs need immediate access to appropriate and affordable vaccines and therapeutic medicines as well as equipment.

A virus does not know borders and we know that it is only if we globally can achieve immunity, and not just in some parts of the globe, can we overcome the dramatic challenges this pandemic poses to all.

Secondly: We need to work on and invest in comprehensive transition strategies, developed through consultative processes, to ensure what I call smooth transitions.

This requires ex-ante impact assessments and vulnerability analysis. Appropriate policies and measures can then be put in place for sectors that are highly sensitive to preference erosion.

Thirdly: Graduating countries need to engage with their key development partners to negotiate extension of select LDC-preferential treatments for a period of time consistent with development needs and priorities.

In this regard, OHRLLS leads an Inter-Agency Task Force on LDC Graduation. The aim is to strengthen and better coordinate UN system-wide support to graduating countries.

Fourth: trade is and will continue to remain a key driver of development for graduating and graduated countries.

The Group of LDCs have already placed their proposals for the extension of LDC-specific special and preferential treatments. This includes a provision for a transition period under TRIPS Article 66.1 for a certain number of years after graduation.

This proposal warrants a review and favorable consideration by the international community, especially in the current context of the impacts of COVID-19.

Fifth: COVID-19 once again exposes the digital divide in LDCs. It is with urgency that we must build the infrastructure for a digital economy and e-commerce but also distance learning, health services and so much more.

Sixth: the pandemic has taught us once more the deep lesson of the history of our shared humanity that there is no certainty or predictability about future shocks and hazards.

Yet, the pandemic has also brought home once more that the LDCs are highly exposed to shocks and hazards while suffering from poor resilience systems.

Investing in building sustainable and comprehensive resilience systems in LDCs is not a luxury but a must.

Finally, allow me to alert you to a shared opportunity we have to put this into action.

We have embarked on the preparation of the Fifth UN Conference on LDCs to be held in Doha, Qatar from 23-27 January 2022.

Graduation will be a key priority in the deliberations and negotiations of the outcome of the LDC5.

In preparation of the LDC5, OHRLLS, jointly with Bangladesh and ESCAP, is holding the Asia-Pacific Regional Review meeting in Dhaka tentatively from 22-26 April 2021. The primary focus is on how to make graduation sustainable.

The outcome of Dhaka meeting, which is a Ministerial Declaration, will be an important building block for the next Programme of Action for LDCs.

So, I invite you all to actively participate in this meeting and contribute to its outcome.

Thank you.

Front Page Article:

Vanuatu Graduates from Least Developed Country Status

Anonymous — Fri, 04 Dec 2020 15:52:00 +0000

graham_crumb_for_dfatanuatu_graham_crumbdfat.jpg

In all its cultural vividness, performers from Futuna island, Vanuatu, celebrate their traditional dance.

Graham Crumb / DFAT

NEW YORK 4 December 2020 – The small island nation of Vanuatu is celebrating today as it is officially no longer classified as one of the world’s least developed countries, or LDCs.

Despite the compounding threats of COVID-19, natural disasters and climate change, the Vanuatu government sees graduation as a positive sign that the country is increasingly able to build resilience and meet its citizens’ needs.

Vanuatu is the sixth country to graduate out of the LDC category, an achievement that the Secretary-General of the United Nations, António Guterres, called “historic” and the result of years of effort resulting in hard-won sustainable development gains.

In a video address to the people of Vanuatu, Mr. Guterres said:

“It is admirable that Vanuatu’s graduation will move forward despite the setbacks it has suffered from the ever-worsening impacts of climate change and natural disasters, and the economic devastation caused by the COVID-19 pandemic, on tourism, trade and remittances.“

He continued,

“Let me assure you of my full and undivided support to weather these challenging times, to combat climate change and to defeat the pandemic and recover better from its impacts.”

Repeated natural disasters, including Cyclones Pam and Harold, and recent volcanic eruptions, have decimated food stocks and forced mass displacement in Vanuatu over the last five years.

And while Vanuatu only recorded its first COVID-19 case in November 2020 - much later than the rest of the world - the small island State has still been seriously impacted by the pandemic, especially by the collapse in tourism from nearby countries like Australia and New Zealand.

Congratulating the people of Vanuatu, Fekitamoeloa Katoa ‘Utoikamanu, United Nations High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States, called upon the international community to provide their full support to Vanuatu after graduation:

"The people of Vanuatu have always been resilient, and graduation is a sign that their economy is increasingly so too. Graduation is a major achievement but also a major challenge. Development and trading partners, and the entire UN system, must commit to providing their full support to ensure a smooth and sustainable transition for Vanuatu.”

H.E. Mr. Odo Tevi, Permanent Representative of the Republic of Vanuatu to the United Nations, expressed confidence in his country’s ability to weather the storm:

"Graduation shows the world Vanuatu’s potential and its ability to achieve its development goals and visions. We will adopt a route of sustainable, resilient and inclusive development that protects our serene ecology and ensures that our children grow up with a new world of opportunities, and a safe and healthy environment.”

46 countries remain classified as least developed, with eleven on, or about to join, the path to graduation. This reflects significant progress over the past number of years. Angola is due to graduate early in 2021, followed by Bhutan in 2023 and São Tomé and Príncipe and the Solomon Islands the following year.

Graduation from the category of Least Developed Countries continues to be a high-priority development objective for LDCs, development partners and multilateral organisations. But it brings important challenges. Ensuring smooth graduation requires transitioning away from LDC-specific support measures, including preferential market access for exports and access to some concessional financing instruments.

Front Page Article:

Twelve Least Developed Countries on Path to Graduation Reflects Significant Development Progress – Despite Ongoing Setbacks

Anonymous — Mon, 12 Oct 2020 19:15:00 +0000

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Third grade students mastering literacy skills and acquiring new concepts during class at Norsup Primary School, Vanuatu.

Connor Ashleigh / AusAID

NEW YORK 12 October 2020 – The Istanbul Programme of Action for the Least Developed Countries (LDCs) set an ambitious goal to see half of the LDCs graduate from the category during its period of implementation of 2011-2020. Though that target has not been met, progress made by several LDCs has led to a record number meeting the graduation criteria.

The United Nations Committee for Development Policy (CDP) reviews the Least Developed Country (LDC) Category every three years to monitor member countries’ progress against measurements of income, human assets and vulnerability.

At present,twelve countries out of 47 are on, or about to join, the path to graduation.This is a positive development reflecting significant progress in the past number of years, especially when compared to previous decades.

Graduation from the LDC category marks an important milestone in the development path of each LDC. However, the phasing-out of international support measures associated with LDC status could present challenges for graduating countries in their efforts to further integrate into the global economy.

This December, Vanuatu will graduate, followed by Angola in early 2021. Bhutan is scheduled to graduate in 2023 and São Tomé and Príncipe and the Solomon Islands the following year.

In February 2021, the CDP is expected to hold its triennial review of the LDC category. Lao PDR, Bangladesh and Myanmar, depending on their performance on the LDC criteria and other aspects of their development trends, could be recommended for graduation.

The potential eligibility of Nepal, Timor-Leste, Kiribati and Tuvalu for graduation will also be reconsidered in 2021.

However, the 2021 triennial review will be held against the backdrop of one of the worse global multifaceted crises in the history of the United Nations.

The COVID-19 pandemic has wrought devastating social and economic consequences, including on global trade and tourism, key sectors for many LDC economies. It is now threatening to roll back progress made by a growing number of LDCs on the path to graduation. 

Strong support from development and trading partners has never been more urgently needed.

For graduating LDCs, the commitment to recover and Build Back Better along a sustainable graduation path has been remarkable. UN System support of these efforts, on the ground and at Headquarter level, has been a lifeline for many.

Graduation from the category continues to be a high-priority development objective for LDCs but it brings important challenges.

Ensuring a smooth graduation requires appropriate management of a transition away from LDC-specific support measures, including preferential market access for exports and access to some concessional financing instruments.

Graduating countries must also juggle other development objectives, including economic diversification, enhanced international value chain participation, and making productivity improvements. The impact of COVID-19 has added another layer of complexity to the task.

The Inter-Agency Task Force (IATF) on graduation support established by OHRLLS in 2017 brings all entities involved, UN and otherwise, to the same table. Together, they formulate a common programme of assistance to help smoothen transitions and better coordinate the UN System-wide support for graduation.

For example, the IATF has been collaborating with the United Nations Resident Coordinators for Lao PDR, Vanuatu, Solomon Islands and São Tomé and Príncipe to funnel support from all parts of the international system in the wake of COVID-19.

In September, the first in a series of virtual sessions on graduation implications for Lao PDR was held in collaboration with the government , the UN Resident Coordinator and the Task Force, represented by OHRLLS, DESA, UNCTAD and ESCAP.

More virtual sessions are planned to look at the trade and development finance implications of graduation, helping the Lao PDR prepare their own transition strategy as part of its national development plan.

In October and November, the Task Force will virtually host UN Resident Coordinators for Solomon Islands and São Tomé and Príncipe to help guide each country’s recovery and graduation plans.

Front Page Article:

Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States - Graduation

Statement on Asia-Pacific LDCs' Graduation, Trade and Pandemic

Statement by Ms. Fekitamoeloa Katoa‘Utoikamanu, High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States

27 January 2021 New York, USA

Vanuatu Graduates from Least Developed Country Status

graham_crumb_for_dfatanuatu_graham_crumbdfat.jpg

Twelve Least Developed Countries on Path to Graduation Reflects Significant Development Progress – Despite Ongoing Setbacks

vanuatu_connor_ashleigh.jpg

27 January 2021
New York, USA