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Lamy's speeches > Speeches of former WTO Directors-General
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Allow me to begin by thanking the government
of Sweden for hosting this event and in particular, Ministers Gunilla
Carlson and Ewa Bjorling for their tireless efforts to make this event a
success. It is entirely fitting that this conference is taking place
here in Sweden, which has always been at the forefront of efforts to
help the world's poorest countries better integrate in today's rapidly
changing world.
We are meeting here ten years after the launch of a major international
initiative focused on helping the world's least developed countries
successfully integrate trade into their development strategies. It was
in 1997 that six international agencies represented here today, together
with the donor community and the least developed countries launched the
so-called “Integrated Framework”. Ten years later it is important that
we take a few minutes to reflect where these countries stand today in
the multilateral trading system and their overall development situation
in general.
In 1997, the share of global exports of the (then) 49 Least Developed
Countries was 0.5% with primary commodities, mainly minerals and
tropical agricultural products, making up 70% of this total. Their
export profiles were characterised by a very narrow range of products,
usually two or three products.
Ten years later we can see some positive signals with basic social
indicators showing a positive trend. On the trade front, however,
despite a decade of substantial economic growth in most developing and
developed countries, the Least Developed Countries have only been able
to marginally benefit from the tremendous expansion of world trade,
their share of world exports being today estimated at 0.6% and 0.8% of
world imports. Their limited capacity to broaden their export product
base, the still limited institutional capacity and poor infrastructure
continue to undermine their capacity to benefit fully.
This continued marginalisation of the Least Developed Countries in the
global economy has not, however, diminished our acceptance that trade
can be a positive engine for growth, poverty reduction and human
development. Nor has it diminished our collective determination to face
together the challenge of making a fairer world trading system for all
its members, including the weakest.
Let us recall that the Integrated Framework — today covering 45 out of
the 50 LDCs — was born out of a realisation that for the Least Developed
Countries to be able to address some of these complex development and
trade related challenges, they require a coordinated and integrated
program in order to tap the resources and expertise of the donor
community. It seeks to assist them to integrate trade priorities into
their overall development strategies and to provide support towards
addressing their supply side constraints and through this enhance their
capacity to fully exploit the benefits of trade opening.
We are here today because we want to make sure that the new
opportunities that hopefully will result from the Doha Development
Agenda — whether the duty-free and quota-free access to developed and
developing country markets, the sharp reductions in agriculture
subsidies in rich countries, including those on cotton, the elimination
of export subsidies, the disciplines on fishery subsidies or the new
rules on trade facilitation — translate into trade realities for the
Least Developed Countries.
An evaluation of the Integrated Framework in 2003/4 revealed three
weaknesses that severely limited the effectiveness of this project:
trade related reforms were not being adequately mainstreamed into the
countries' development strategies; on the donor side, coordination was
lacking resulting in sometimes conflicting and overlapping objectives
and finally, only limited funding was available for projects once a
country's priorities had been identified.
This joint diagnosis led us to the setting up of a Task force in 2005,
which was mandated to provide recommendations to address the weaknesses
and enhance the effectiveness of the Integrated Framework. Its
recommendations were adopted in July 2006 are at the heart of what we
have called the “Enhanced Integrated Framework”.
The first recommendation was the need to provide increased, predictable
and additional funding on a multi year basis. The second recommendation
highlighted the need to strengthen in-country institutional capacity
including through mainstreaming trade into national development plans.
Finally, the need to improve the Integrated Framework decision-making
and management structure were also highlighted.
We are here today to respond to the first recommendation, the provision
of predictable and additional funding over a multi-year basis and I am
confident that you will respond generously to it. But while the
importance of predictable and additional funding to the future success
of this endeavour cannot be overemphasised, it is important to also note
that on its own, funding will not enhance its effectiveness.
There are a number of issues that we will need to address simultaneously
to achieve our stated objectives.
Key among these is the principle of full political ownership by its
beneficiaries, the Least Developed Countries. Unless the governments are
fully on board in the process of identification and formulation of
priorities, and are committed to integrating trade into their
development strategies, the Enhanced Integrated Framework will be of
limited value. A demonstrable commitment to mainstreaming is therefore
indispensable to the future success of this initiative.
Furthermore, the active involvement of all stakeholders in the
consultative process of identification and formulation of national
priorities is equally important and on this I would like to appeal to
all of you to lend your support. Of particular importance is the
involvement of the private sector in the process. Not just at its
conclusion but from the beginning. The private sector is an important
partner in this endeavour.
A set of clear and politically endorsed priorities is the only stable
foundation for donor coordination. Coherence begins at home, and if
coherence and ownership are there, then coordination among donors would
be greatly improved. Coordination will then mainly focus on “how does
what” instead of “who thinks what”.
While today you will make pledges towards the multilateral Enhanced
Integrated Framework trust fund, funding for its activities can also be
channelled through bilateral/regional channels. The bilateral programmes
can help address some the requests for larger and more complex needs
including some national and regional infrastructure projects. To this
end funding for these national and regional programmes should also be
guided by the needs and priorities identified in the Enhanced Integrated
Framework process.
Let me conclude by highlighting two recent developments on the
institutional side of the Enhanced Integrated Framework. We are moving
forward in setting up a small secretariat in Geneva, administratively
housed in the WTO and reporting to the Enhanced Integrated Framework
Board on policy matters. This secretariat will be headed by an Executive
Director for whom the search has already begun.
Furthermore, the process of selecting a trust fund manager is also
underway. You will agree with me that this is an important function of
the Enhanced Integrated Framework management structure, and therefore we
should finalise the selection process without further delay.
Finally, last week the interim board of the Enhanced Integrated
Framework endorsed an accountability framework as the basis for its
operations. This is a key step forward that will — as highlighted by
most of you — facilitate your ability to pledge today. I want to thank
all of you for the flexibility you have all shown in concluding this
founding stone of our future work and would like to encourage you to
wrap up the remaining details of the overall accountability structure so
that we can be fully up and running.
Let me in closing pay tribute to Swedish Ambassador Mia Horn, Canadian
Ambassador Don Stephenson and Lesotho Ambassador Maruping as well as all
their troops for the long sleepless nights spent over this. I am sure it
will be worth it!
Thank you.
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