LDCs and Brussels Programme of Action (BPoA) Organized by LDC Watch SAAPE – South Asia Alliance for Poverty Eradication Equity and Justice Working Group Bangladesh Its LDCs’ Time to Revisit Policies

Background: To address LDCs special needs in achieving development the UN conference on the LDCs adopted a Programme of Action for the Decade Overarching Goal: To make progress towards halving the extreme poverty and suffering from hunger by 2015; promote sustainable development of the LDCs Aim: To improve the living conditions in the LDCs by providing a framework and global partnership BPoA : Aim, Objective

Fostering people centered policy framework Ensuring good governance at national and Intl level Building human resource and institutional capacities Building capacities to make globalization work for the LDCs Enhancing the role of Trade in Development Reducing Vulnerability and Protecting Environment Mobilizing financial resources Strategies of BPoA Implementation Mutual Commitments of the LDCs and the Development partners in 7 interlinked areas

Sustainable development Special needs of land-locked & Small Islands LDCs Challenges faced by the LDCs affected by conflicts Cross Cutting Priority Areas of BPoA Poverty Eradication Gender Equality and Employment Governance at national and intl levels Capacity building

Guiding Principle of BPoA Integrated Approach Integrated into all intl. processes of concern to the LDCs including with the agencies outside of the UN System Genuine Partnership To be alignment between national policies and strategies in LDCs and the external assistance strategies of the partners Country Ownership Genuinely country led development

Guiding Principle Market Consideration To be operated within a stable legal and economic framework; good balance between public action and private initiatives Result Orientation Towards achieving international development targets and gradually graduation from the LDCs list

Implementation Challenges of BPoA Commitment 1: Fostering People-Centered Policy Framework Goals: Annual GDP Growth Rate at least 7 % Ratio of Investment to GDP to 25% per annum Progress halving the extreme poverty by 2015 Progress in halving hungry people by 2015 Context : BUT economic growth does not guarantee poverty reduction. There should be reorientation in policies to improve living standards

Proposal and Concern on Commitment 1 Proposals A stable macroeconomic framework Sound investments in physical and human capital development Good governance and quality institutions Resource transfer in the poverty stricken areas Ensuring active participation of poor people in the productive sectors

Proposal and Concern on Commitment 1 Concern Reducing of development assistance Imposing development policies by the donors Market failure in ensuring food security Dependence on external and internal credit sources and increasing of debt servicing Lack of long term development planning

Proposal and Concern on Commitment 2 Commitment 2: Good Governance at National and International level National Level Ensuring rule of law Conflict resolution People’s participation Empowerment of women Transparency, accountability of public Institutes International Level Transparency in financial, monetary & trading Open, equitable, rule based and non-discriminatory multilateral trading and financial system

Proposal and Concern on Commitment 2 Concern LDCs share to the global trade is around 1%. LDCs share in world exports fell from 3% in the 1950s to 0.7% in the 2000s LDCs share in agricultural exports dropped from 3.3% in the 1970s to 1.5% in the 1990s LDCs attracted less than 2% of global foreign direct investment

Proposal and Concern on Commitment 2 Concern Multilateral trade regime failed to provide 100% duty-free and quota-free market access for the LDCs. Doha Round of UN FfD has remained inconclusive due to tussle between developed and advanced developing countries

Proposal and Concern on Commitment 3 Commitment 3: Building Human and Institutional Capacities Targets Reducing TB deaths and prevalence by 50% by 2010 Reducing infection rates and deaths from Malaria by 50% by 2010 Reducing HIV/AIDS infection rates in persons age by 2005 in all countries and by 25 % in the most affected countries

Proposal and Concern on Commitment 3 Building Human & Institutional Capacities :TARGETS Infant mortality below 35/ 1000 births & Under-5 Mortality below 45/1000 births by 2015 Ensuring complete, free and compulsory access to good quality primary education by 2015 Increasing percentage of women receiving maternal and prenatal care to 60% by 2015 Reducing inaccessibility to safe drinking water by 50 percent by 2015

Proposal and Concern on Commitment 3 Building Human & Institutional Capacities Concerns Privatization of public services like health, education, water etc. Corporate control over common resources IPR on generic medicine items Prevalence of new diseases and health hazards due to global warming

Proposal and Concern on Commitment 4 Commitment 4: Building Productive Capacities to Make Globalization Work for LDCs MeasuresPhysical infrastructure Technological development Enterprise development Energy Agriculture and agro-industries Manufacturing and mining Rural development and food security Sustainable tourism

Proposal and Concern on Commitment 4 Commitment 4: Building Productive Capacities to Make Globalization Work for LDCs Concerns Concrete support based on national and long term planning development/ poverty reduction There should be policy consistency within trade, investment and enterprise development Full implementation of DDA Trade support services for the LDCs Support for overcoming structural and supply side constrains

Proposal and Concern on Commitment 5 Commitment 5:Enhancing Role of Trade in Deve MeasuresTransform trade into powerful engine for growth and poverty eradication Concerns Improving country specific S &D measures Strengthening preferential market access; changing in the Rules of Origin restrictions, helping to meet sanitary and phyto-sanitary product standards, reduction of TBTs etc. Implementation of GATS Mode 4

Proposal and Concern on Commitment 6 Commitment 6:Reducing Vulnerability and Protecting Environment Aim:Protecting Environment form loss of Bio- diversity, Drought and Desertification Concerns: Chemicalization in agricultural practices Privatization of public commons Industrial pollution, Ill Governance Changing of natural habitat due to changes in climatic parameters

Proposal and Concern on Commitment 6 Commitment 6:Reducing Vulnerability and Protecting Environment AimReducing Vulnerability from stress, shocks and natural disasters Concerns Increasing of natural disasters due to climate change Loss of human habitat and risk of migration Crop loss, asset loss and increasing of environmental refugees

Proposal and Concern on Commitment 6 What to be incorporated Polluter pay and Exploiter pay principle in relation to financing climate change Reparation of the resources of colonial exploitation, ecological debt and carbon debt Free movement of environmental refugees Technological cooperation for adaptation and GhG mitigation Additional resources for DRR for the LDCs

Proposal and Concern on Commitment 7 Commitment 7: Mobilizing Financial Resources Measures:Domestic resource mobilization Quality of Aid and its effectiveness External debt Increasing FDI & other private external flows Concerns: Developed world failed to realize commitment of allocating 0.15% of their GNI to the LDCs Aid Quality of its effectiveness still a concern

Even Bangladesh shown promising in MDG (especially in gender parity in primary enrolment, poverty reduction, maternal and child mortality), international aid is decreasing and the country is not entitled for debt cancellation. 33 % reduction in international assistance from 1999 level. Loan has increased while project aid decreased. Food aid come down to zero almost. Reality: MDG A Game of False Hope and Broken Promises in International Commitment

Bangladesh was not entitled for debt cancellation due to “debt to export ratio” as set by World Bankand IMF, all though Jaffry Sacks and Kofi Annan (2005) has pleaded for debt cancellation for country like Bangladesh for achieving MDG. Bangladesh at present receives annually 1.5 billions but for MDG achievement its need 7.5 billion annually which is four time bigger then the present international assistance. MDG: A Game of False Hope and Broken Promises in International Commitment

Reality: International Assistance 25 % goes to aid giving countries, 25 % to consultants and bureaucrats and 25 % to rural and urban elites, only 25 % to the poor. 75 % Illegitimate and Odious Debt ?

NOW Its LDCs’ Time to Revisit Policies Thank You All