
Mr. Chairman,
Excellencies, distinguished participants, ladies and gentlemen: This meeting responds
to a call by WTO Ministers at their Conference in Singapore last December. It is an
enormously important meeting. It is important because for the first time we are bringing
all the energy of the multilateral system to bear on the problem of economic
marginalization. It is important because without the full integration of the
least-developed countries we can never have a truly 'global' trading system. And it is
important because it represents a tangible sign of the extent to which your countries have
embraced openness, integration and trade as the keys to economic development.
The goal we
are all working towards is a full partnership of today's least-developed countries in the
global economy and its opportunities. We will not make progress towards that objective
with stirring speeches and fine words. Over the next two days, we must produce meaningful
results - results that will be of real and practical significance to the
least-developed countries.
There are
three main ways in which this meeting should produce concrete and practical results:
first, by opening up new market access opportunities for least-developed country exports;
second, by designing an integrated approach to building trade capacity which reflects the
real needs of the least-developed countries themselves; and third, by using new technology
to open a window of new opportunity between North and South - a window through which
information, knowledge and ideas can flow freely and productively. I can assure the
delegations from these countries who are here today that the WTO is completely committed
to this task.
I don't want
to underestimate the scale of the problems facing your countries. Above all is the problem
of poverty, and its crippling effects on all aspects of the existence of millions of
people - on their nutrition, their health, on infant mortality and life expectancy,
on their prospects to educate themselves and their children - in every respect the
facts are unacceptable. With 10 percent of the world's population, the least-developed
countries account together for barely one-half of one percent of world trade. Their share
of international investment is still insignificant, and their access to key modern
technologies totally inadequate - in agriculture, in manufacturing, in
communications, in practically every area of economic activity.
But if the
challenges are immense, we now see signs that things are changing in a positive direction
and that new opportunities are opening up. Around the world, we have seen in the past
twenty years many developing countries break away successfully from conditions of
debilitating poverty to share in the growth and prosperity that have been generated in the
world economy. The World Bank, the IMF, UNDP, UNCTAD - all of the major international
economic institutions paint a strikingly similar picture of improvements, often dramatic,
in the economic performance of many least-developed countries over the past few years. As
reported by UNCTAD, more than half of the least-developed countries have improved their
economic performance in the mid-1990s. Taken as a group, the least-developed countries
grew at around 5 per cent in 1995 and 1996, up from an average of
3 per cent in the first half of the 1990s and only 2 per cent in the
1980s.
More
important, this impressive record of economic growth is having a real impact on the
everyday lives of people. For example, among a group of some twenty developing countries
undertaking structural reform, the IMF has found that average spending on education has
increased by 5 per cent in real terms - or by more than 2 per cent on a per capita
basis. Real expenditure on health has increased by 7.5 per cent per year. Illiteracy rates
have declined by 3 per cent per year, while primary and secondary school enrolment has
grown by over 1 per cent per year. Access to health care improved by almost ten per cent
per year; access to safe water improved by 5 per cent per year.
And UNDP has
reported (and I quote its words) that by the end of this century - only three years
away - some 3 to 4 billion of the world's people will have experienced
substantial improvements in their standard of living, and about 4 to 5 billion will
have access to basic education and health care. These gains, UNDP notes, make eradicating
poverty not some distant ideal but a true possibility.
These
positive trends reflect the determination of many countries to embrace and institute
sustained economic reforms as the best available path to real improvements for their
people. Their efforts richly deserve the support of the international community. At this
meeting, we have an opportunity to show that the WTO, working with the other
intergovernmental agencies involved, can make a significant contribution.
Let me
outline a little more fully the nature of this contribution. First, market access.
Increased market access for the least-developed countries' exports is essential if we are
serious about improving the trading opportunities of these countries. At the G-7 Summit
Meeting in Lyon last year, I made a proposal to remove all tariffs and import quotas on
imports from least-developed countries - and I take this opportunity to reiterate
that proposal.
This Meeting
provides an opportunity for WTO Members to announce steps they will be taking, on an
autonomous basis, to improve market access for products of export interest to
least-developed countries. I have been encouraged to learn over the past few months that a
number of WTO Members - including some of the main trading partners of the
least-developed countries - are examining seriously what steps they can take to
reduce restrictions on LDC exports, to extend existing preference schemes, particularly in
areas such as textiles and agriculture; to simplify drastically the conditions attached to
them; and, in the case of some developing country Members, to introduce entirely new
preferences in favour of these countries' exports.
I applaud
these initiatives, and I urge all WTO Members to continue to reflect on what actions they
can take in the future in this regard. This is one of the principal ways in which this
meeting will be seen to produce not just words but deeds. The needs of the least-developed
countries for open and predictable access to overseas export markets will only increase as
policy reforms and capacity-building at home enhance their productivity, expand their
economic diversification, and result in higher sustained real growth rates. If investors
are to respond effectively to the efforts of both the least-developed countries themselves
and the international community to improve supply-side conditions, they must be reassured
early on that attractive and stable market opportunities exist which warrant long-term
investment.
The second
major area for action at this Meeting is to address supply-side constraints in the
tradeable goods sectors of the least-developed countries' economies, and help improve
their capacity to trade. Over the past six months the WTO Secretariat has worked closely
with its colleagues in the UNCTAD and ITC, UNDP, the World Bank and the IMF, on three
related projects.
We have put
together for the first time an inventory of technical assistance and cooperation
activities that exist to support the trade of the least-developed countries. The core of
this inventory is the activities of the six agencies themselves, and with the cooperation
of other intergovernmental organisations and of the OECD Secretariat we have begun to
broaden the project to create a genuinely new and comprehensive management tool for
trade-related technical assistance and cooperation. I believe the results, which are
presented in the background documentation for this Meeting, will allow the least-developed
countries to ensure that the technical support they are receiving to expand their trade is
truly demand-driven and meets their needs effectively. It will allow these countries'
development partners to design their assistance programmes more efficiently, in full
knowledge of the range of complementary activities that are in place.
Furthermore,
we have created a new Integrated Framework for designing technical assistance and
capacity-building in least-developed countries in the specific area of trade. At the
centre lies the government of each least-developed country; they are in the driver's seat,
and a large part of the success of this initiative will depend upon the sense of ownership
and commitment they bring to the endeavour. The new Framework, which this Meeting will be
invited to endorse, will link together the resource-bases of the six agencies, allowing
them to integrate their efforts to meet the specific needs of individual least-developed
countries. The potential of the Framework is, however, much broader than that. It can help
increase the benefits that the least-developed countries derive from trade-related support
provided by their development partners, and I believe that by increasing transparency and
accountability it will act as a catalyst in mobilizing additional resources from the
international community for these countries' trade development.
We will
present for the first time today and tomorrow the results of our application of the new
Integrated approach to a pilot group of twelve least-developed countries. Here is an
example of one of the practical results we intend to achieve at this Meeting - the
opening of a new door towards least-developed countries. The results will be presented by
the least-developed countries themselves, at a series of "Roundtable" meetings.
They represent many months of intensive work by individual least-developed countries and
all six agencies involved in this project. By demonstrating our commitment to the
exercise, we hope to create a strong multiplier effect, attracting other multilateral and
regional intergovernmental organisations, the main trading partners of the least-developed
countries, and the private sector to contribute their resources and experience also to
this effort.
Let me
emphasize that for the purposes of this effort, the High-Level Meeting should be
considered only a step along the way. In addition to the twelve least-developed countries
that will be featured at country-specific roundtables over the next two days, 20 other
least-developed countries have accepted our invitation to participate in the exercise and
we will work hard with them to prepare the ground for their own country roundtables in the
months ahead.
The third
major area of action is an exciting new departure for us in the WTO. This is to provide
least-developed countries - as they themselves have asked - with better access
to the global information infrastructure. The new information technologies which we are
exploiting in partnership with our friends in the World Bank provide a gateway to
development, a path which can provide the developing world with the most important
resource for raising living standards - knowledge. Through knowledge we can better
educate our young and better care for our sick. It is knowledge that makes all of us
better managers, better workers, better citizens.
I urge of all
of you to explore our Cyber-Cafe, set up next door in the Salle de Pas Perdus, so you can
see at first hand how we are making use of these new technologies to aid developing
countries in their efforts to bring themselves into the mainstream of the global trading
system. Our web site offers officials in developing countries the ability to access, often
for the first time, WTO documents which are vital to their understanding of our rules. Our
joint interactive site with the World Bank allows trade officials to continue, through
cyberspace, the training which they began here in our technical cooperation training
seminars.
But this
access to knowledge about the trading system is by no means limited to those with past
experience of WTO training seminars here in Geneva. Our new system enables even those
unfamiliar with international trade, or computers for that matter, to access the basic
information that is critical to policy making or business planning. Through the use of
on-line forums, officials can consult the WTO and World Bank secretariats on trade matters
and learn about emerging developments in the trading system.
We will be
holding several demonstrations of this forum throughout the next two days, and I'm sure
you will find these demonstrations to be of great interest. This month, WTO secretariat
staff went to four African countries, providing government officials there with computers,
equipment and the know-how they need to access the information that is available on our
web site.
Later this
year we will visit four more countries and do the same. Our goal is to "wire"
all of our least-developed members by next year, so that they can take full advantage of
the information revolution that is liberating such powerful forces for integration and
growth.
Let me
conclude by inviting you to look to the future with renewed hope. Finding a solution to
the problem of economic marginalization is a shared responsibility. It is clear that for
the least-developed countries it requires pursuing sound domestic economic policies and
addressing questions of governance in a positive way. The access to information and
assistance that new technology makes possible should be helpful in this effort. It should
be equally clear that in the WTO you have a totally committed partner in reaching these
solutions and in achieving your economic potential. I am confident that the results of
this meeting will live up to all our expectations that trade - and the multilateral
trading system - can deliver concrete results to those countries which are at present
most in need of our collective support, but which I ardently hope will be counted among
the most dynamic trading nations of the 21st century. |