For the 700 million people in the least developed countries, United Nations’ decisions could mean the difference between opportunity and poverty, peace and war, life and death

For the 700 million women, men and children in the least developed countries (LDCs), United Nations’ decisions - and their follow-up - could mean the difference between opportunity and poverty, peace and war, life and death, Deputy Secretary-General Louise Fréchette told the Economic and Social Council (ECOSOC), as it opened its substantive session this morning.

Placing international development cooperation and achievement of real progress on the Millennium Development Goals at the top of the global agenda, she stressed that, for the international community, working to achieve those Goals constituted a vital part of “keeping its word” and advancing the ideals of the Organization’s Charter. Therefore, while sustained economic growth remained a sine qua non for success, specific measures must be taken to ensure that the “green shoots of economic growth blossomed into real progress” towards the Goals and brought benefit and opportunity to the poor.

The four-week session started today with a high-level dialogue focusing on the current developments in the world economy and international economic cooperation, as well as development challenges confronting the world’s 50 poorest nations. The event is part of a three-day high-level segment on the theme: “Resources mobilization and enabling environment for poverty eradication in the context of the implementation of the Programme of Action for the Least Developed Countries for the Decade 2001-2010”.

Adopted in May 2001 in Brussels, Belgium, the Programme of Action, a set of key commitments for implementing the Millennium Development Goals, includes seven specific commitments made by the LDCs and their development partners, including mobilization of financial resources, as well as governance, trade and sustainable development.

In his keynote address, Mathieu Kérékou, President of Benin, said that only mobilization of financial resources would ensure the implementation of the Brussels Programme of Action. The LDCs Group hoped that the thinking on the session’s theme would be profound and exhaustive and that special problems faced by the LDCs would be addressed.

Real political will had to back up professions of commitment, he said. The results so far had not been encouraging. Official development assistance (ODA) had not increased, as pledged, and support for exports had negatively impacted the LDCs in world markets. Rare preferential treatment for LDCs remained underutilized and, despite praiseworthy efforts, the LDCs continued to bend under the crushing burden of debt, resulting in the weakening of social protection infrastructure, conflict and the continued ravage of the AIDS pandemic.

The 2015 deadline of reducing by half the number of people living in poverty was approaching rapidly, he added, and global action was needed, which would take into account not only the economic components of the situation, but also social, humanitarian and environmental considerations. It was up to the developed countries to increase ODA, promote direct investment, reschedule debt and open markets to LDC goods. It was up to the LDCs to achieve significant progress in the areas of good governance, respect for constitutional legality for combating corruption, decentralization, and the process of national development without discrimination on the basis of race, sex and religion.

Participating in the morning discussion were heads of multilateral financial and trade institutions of the United Nations system, including Rubens Ricupero, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD); Juan Somavia, Director-General of the International Labour Organization (ILO); Ibrahim Gambari, Under-Secretary-General and Special Adviser on Africa; and representatives of the World Bank, the International Monetary fund (IMF) and the World Trade Organization (WTO). Statements were also made by Ministers from Qatar (on behalf of the “Group of 77” developing countries and China) and Ireland (on behalf of the European Union), as well as representatives of Ecuador, the United States, El Salvador, Jamaica, Bangladesh and India, and the Commissioner for Development and Humanitarian Aid of the European Commission.

“If we can’t deliver to the people of less developed, landlocked and small island countries, which are most in need, what is left of other issues?” Mr. Somavia asked. The international community was also falling short on the tremendous potential of “fair globalization” that would create opportunities for all. To address those issues, “decent work as a development tool” must become a global priority. Employment, sustainable livelihoods and income-generating opportunities, were the sustainable way out of poverty. A fair globalization was the external enabling environment for development, and global governance needed a serious upgrade. Follow-up was a priority.

Mr. Ricupero acknowledged that the goal of poverty eradication was daunting. Given current trends, extreme poverty in LDCs would jump from 334 million people in 2000 to 471 million in 2015. Domestic resource mobilization in the LDCs was problematic, given that, after subsistence consumption, only $0.15 per person per day was left for investment in capital formation, public investment and the running of vital services. Thus, alternative sources of financing must be found, including through improved ODA, increased immigrant remittances, foreign direct investment, trade and debt relief.

Other participants noted, however, that the present improvement in the world economic situation created a favourable environment for developing countries. Among the reassuring statistics presented to the Council was the expected 3.75 per cent gross world product growth in 2004, compared to 2.7 per cent in 2003. More countries, including developing ones, would see greater growth in their per capita income in 2004 than in any year since 2000. The most rapidly growing group of countries included economies in transition, and the two most populous countries, China and India, were emerging as engines of growth for the world economy as a whole.

The favourable economic conditions should not lead to complacency, however, warned the Under-Secretary-General for Economic and Social Affairs, José Antonio Ocampo, who insisted that the economic recovery should be used to address current potential weaknesses at all levels, reducing global and domestic imbalances and private sector debt, in both firms and households.

“If we are to withstand short-term downturns, it is imperative that we take advantage of the opportunities offered by current conditions to tackle some of our problems and to build defences against future shocks”, he said. The agenda for long-term action was broadly agreed: the focus must be on the fight against poverty and the attainment of the Millennium Development Goals and decisions of the global conferences. To reinforce the actions already taken by the majority of developing countries themselves, it was necessary, above all, to make further progress on the triad of aid, trade and debt.

Those issues and mobilization of financial resources were also the subject of an Investment Promotion Forum in the afternoon, whose participants elaborated on various aspects of the problem in five round tables, which followed an opening statement by the President of ECOSOC, Marjatta Rasi (Finland), and statements by Mr. Ocampo and the Under-Secretary-General and High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States, Anwarul K. Chowdhury. The questions addressed in the afternoon included local private sector development, the role of microcredit, measures to attract foreign direct investment, the role of trade preferences for promoting investment in the LDCs, the role of partnerships in mobilizing resources, and investment in human settlement in the world’s poorest countries.

During the organizational part of today’s meeting, the Council adopted its agenda and programme of work and granted observer status to an intergovernmental organization -- the World Deserts Foundation.

The 2004 substantive session will continue with a coordination segment (1 to 7 July), an operational activities segment (7 to 12 July), a humanitarian segment (12 to 14 July), and a general segment (15 to 22 July). The Council will conclude its work on Friday, 23 July, with action on all outstanding proposals.

The Council will continue its work at 10 a.m. tomorrow with a high-level general debate on resource mobilization and creation of an enabling environment for poverty eradication in the LDCs.