LDC Conference adopts Istanbul Declaration, no new aid pledged

The Istanbul conference adopted a declaration which reaffirmed solidarity with the poorest nations, but yielded no fresh development aid commitments for the LDCs.

Sanya Smith

THE Fourth United Nations Conference on the Least Developed Countries (LDC-IV) ended on 13 May with the adoption of a political document, the Istanbul Declaration, as well as the Istanbul Programme of Action.

These outcomes were achieved after months of intense and often contentious negotiations that took place at the United Nations in New York and continued to the last day and hours in Istanbul.

The most disappointing aspect of the outcomes is that no additional aid was pledged for the LDCs. This fact was recognised and remarked upon by the Turkish Foreign Minister Ahmet Davutoglu, who was also the Chair of the Conference, in his concluding speech.

The outcome of the Conference was heavily criticised by civil society organisations present at LDC-IV in Istanbul for falling far short in assisting the LDCs. In its final statement, the Civil Society Forum said the Conference failed to meet its expectations as well as the UN General Assembly mandate for LDC-IV. (See the full text of the civil society statement on pp. 19-22.)

'Civil society is frustrated that, having caused massive costs in the LDCs through financial and food speculation, unjust trade rules, illegitimate loans with onerous conditionality, and ecological damage, including climate change, the developed countries have not even committed to provide more aid to LDCs,' said the statement.

'Even worse, many donors are either reducing their aid or diverting it to pay for climate change damage, despite their commitments in UNFCCC [UN Framework Convention on Climate Change] negotiations to provide new and additional funding for climate finance. Current levels of aid are dwarfed by the mounting costs of the damage done to LDC economies and their people.'

Hard negotiations

In the closing plenary session after the adoption of the Istanbul Declaration and Programme of Action, Argentina, on behalf of the developing-country Group of 77 (G77) and China, made a closing speech. It remarked that it had been a very hard process of negotiations at times and the agreement does not entirely reflect the aspirations that the G77 and China and LDCs had had when they began the negotiations.

'We are nevertheless pleased that we maintained various [parts] of the commitments that are still present in the Istanbul Programme of Action,' said Argentina. It added that in implementing the Programme of Action, the role of developed countries is crucial while the UN system, including the Bretton Woods institutions, are also called upon to support the LDCs.

It stressed that at the same time, the developing countries feel proud to be able to support the LDCs through South-South cooperation, in the Programme of Action. 'In this way, we maintain the specific identity of cooperation amongst developing countries based on solidarity and respect for national development priorities in every country. So we look forward to South-South cooperation to give added value to the Programme of Action.'

In particular, said Argentina, 'we would like to note that partnership for development is not a matter of charity, we are investing to improve the quality of life for human beings and future generations. We are talking about remedying the tremendous injustice that has affected the world for many centuries.'

The representative from the European Union (EU) expressed their satisfaction with the proceedings of the conference and the ambitious and realistic outcome in the Istanbul Programme of Action and Declaration. The EU pointed out that it is the largest donor to LDCs and gives full market access for all products from LDCs and encourages other countries to do likewise.

In the only other speech by a delegation upon adoption of the Declaration and Programme of Action, Australia, on behalf of Canada, New Zealand and Australia, said they sought to be constructive partners and will be serious about implementing it.

Chair's statement

Davutoglu, the Turkish Foreign Minister and Conference Chair, remarked that 'developed countries abstained from additional financial commitments in the Conference.'

In his closing statement, the Minister quoted a famous hadith (commentaries based on the statements and actions of the Prophet Muhammad, considered by Muslims as essential supplements to and clarifications of the Koran): 'He who sleeps on a full stomach whilst his neighbour goes hungry is not one of us.'

He then announced that Turkey will make available a total of $200 million annually to LDCs, starting in 2012, for technical cooperation projects and programmes as well as scholarships.

According to the Minister, Turkey's current investments in LDCs are almost $2 billion and it aims to increase this level of direct investment in LDCs, particularly from its private sector, to a total of $5 billion by 2015 and $10 billion by 2020. In addition to an International Science, Technology and Innovation Centre, Turkey is also prepared to host an International Agriculture Centre dedicated to LDCs.

The Minister also declared that Turkey will allocate $5 million for the monitoring of the implementation of the Istanbul Programme of Action and that it was ready to host a Mid-Term Review Conference of the Programme of Action in 2015.

He concluded by reminding the participants that Turkish President Abdullah Gul had stated in his opening remarks that a world that tolerates extreme inequalities is not a world built upon shared values and objectives. 'Thus, we need to work together to build a more dignified future for the people of the LDCs ... We believe a brighter future is possible. And Turkey will do everything in its power to make it [a] reality. Istanbul will then be remembered as the place where the misfortune of 900 million people has taken a positive turn.'

Istanbul Declaration

The final version of the Istanbul Declaration had not been issued by the time of the final plenary, but an advance draft was available. The Declaration begins by reaffirming that solidarity and partnership with the poorest, weakest and most vulnerable countries and their people is not only a moral and ethical imperative, but also an economic and political one which corresponds to long-term interests of the international community and serves the cause of peace, security and prosperity for all.

It recognises that not all the objectives and goals set out in the last Programme  of  Action  (adopted  by the Third UN LDC Conference held in Brussels in 2001) have been fully achieved and commits to implementing  the  Istanbul  Programme  of  Action.

The Declaration expresses deep concern that the ongoing impacts of the economic and financial crisis as well as the volatile energy and food prices, problems of food security and increasing challenges due to climate change, natural disasters and loss of biodiversity are threatening the development gains that LDCs have made so far.

The Istanbul Declaration also recognises that LDCs deserve support in line with their development strategies to address their development needs in a coherent manner in trade, investment, finance, including official development assistance (ODA) and technology. In addition, it recognises the need for enhancing the voice and participation of LDCs in relevant multilateral institutions and international fora.

The Istanbul Declaration underscores that ownership, leadership and primary responsibility for development in LDCs rest with the LDCs themselves. After recognising LDCs' development efforts thus far, the Declaration underlines the importance of gender equality and the empowerment of women to development and eradication of poverty in LDCs.

On ODA, the donor countries undertake to fulfil all the ODA commitments to LDCs and consider further enhancing the resources for LDCs in the Declaration.

Productive capacity is prioritised in the next decade in the Declaration, which in this regard: underscores the importance of reliable and affordable infrastructure services; recognises the importance of mobilisation of financial resources including ODA and foreign direct investment; underscores how essential sustainable agriculture focusing on small-scale farmers is to achieving food security; acknowledges the potential of regional economic integration and undertakes to promote access of LDCs to knowledge, information, technology and knowhow and aims to establish a Technology Bank.

On trade, the Declaration commits to the timely implementation of duty-free and quota-free market access, on a lasting basis, for all LDCs, consistent with the Hong Kong Ministerial Declaration adopted by the World Trade Organisation in 2005. (The Hong Kong Ministerial Declaration agrees that developed-country WTO Members shall, and developing-country Members declaring themselves in a position to do so should, provide duty-free and quota-free market access on a lasting basis, for all products originating from all LDCs by 2008 or no later than the start of the implementation period. It allows Members facing difficulties at this time to provide 100% market access to provide duty-free and quota-free market access for at least 97% of products originating from LDCs by 2008 or no later than the start of the implementation period.)

The Istanbul Declaration also commits to ensuring that preferential rules of origin applied to products from LDCs are simple, transparent and predictable and contribute to facilitating market access.

New innovative financing mechanisms are voluntary and should not be a substitute for traditional sources of finance and should be disbursed in accordance with LDCs' priorities and not unduly burden them, according to the Declaration.

On climate change, the Declaration shares the aim of strengthening LDC capacity to adapt to and mitigate climate change, bearing in mind the provisions of the UNFCCC. It notes that mobilisation and provision of additional, adequate and predictable financial resources are necessary to address LDCs' adaptation and mitigation needs. It welcomes the decision to establish the Green Climate Fund  and  underscores  the  need  for the  access  of  the  LDCs  to  appropriate, affordable and clean technologies that foster their sustained economic growth and sustainable development.

The 48 LDCs have a combined population of 880 million and only three countries have graduated from being LDCs. The Declaration commits to assisting LDCs to enable half of them to meet the criteria for graduation from LDC status. It also promises to work on developing and implementing smooth transition strategies for graduating and graduated LDCs.

The Declaration acknowledges the role of parliaments and the private sector and calls on civil society to enhance their roles in the development efforts of LDCs and takes note of the civil society declaration of the Conference.                                               

Sanya Smith is a researcher with the Third World Network. The above is extracted from an article which first appeared in the South-North Development Monitor (SUNS, No. 7151, 17 May 2011) published by TWN.

*Third World Resurgence No. 249, May 2011, pp 10-12