WTO NEWS: SPEECHES — DG PASCAL LAMY

Supporting a Focus on Concrete Deliverables


MORE:
> Pascal Lamy’s speeches

  

Secretary-General Supachai,
Ministers and senior officials,
Executive Director of the EIF Executive Secretariat Dorothy Tembo,

At a recent occasion in Geneva where the Enhanced Integrated Framework (EIF) was the focus of the discussion, the Ambassador of Haiti — who happens to now lead the Least-developed Countries (LDCs) Group in the WTO — said that the EIF is akin to ‘looking at yourself in the mirror’, the reflection of which allows each of us an opportunity to show how committed we are to supporting development in the least-developed countries. I believe that this is a wise analogy as we all — collectively — have a role and a responsibility in ensuring that the EIF delivers on its mandate and on our expectations.

The EIF, at its core, is about placing trade as an engine of growth, poverty reduction and employment. How? By creating a platform where demand and supply of trade-related assistance can be expressed, bridged and operationalized.  It is also about shared responsibility. Those who support the EIF through funding, institutional strengthening and in-kind assistance have a dual responsibility: to help lift the poorest countries out of the vicious cycle of development malaise but also to their domestic stakeholders who are quite rightfully calling for results and value for money.

The LDCs themselves have a responsibility to use the EIF process to better identify and address their weaknesses and strengths, to enable better internal coordination. To use the EIF as a platform to solidify trade within their national development plans and priorities. To leverage additional Aid for Trade support to consolidate current efforts. The LDCs also have a responsibility to their constituency. To show that the energy exerted in the development of Diagnostic Trade Integration Studies (DTISs) and needs assessments transforms into game-changing policies on the ground where the transformative power of trade can be leveraged.

Organizations such as UNCTAD, ITC, the World Bank, IMF, UNDP and the WTO also have critical roles to play to support these processes.  The WTO continues to be an active partner, especially through our coordinating role in Aid for Trade, and is a firm supporter of the output already produced by the EIF. I am confident that we will continue to see an acceleration of results-centred outcomes in the months ahead. The EIF has made substantial progress.  Seven DTISs and 23 DTIS updates have been approved. Thirty of the 46 EIF beneficiary countries have also accessed Tier 1 project funds for institutional capacity building to support National Implementation Arrangements.  Furthermore, four Tier 2 projects have been approved and an additional ten Tier 1 and 26 Tier 2 projects are in the pipeline.

The focus now is firmly on impacts and delivering results. This will entail assisting LDCs to better hone their priorities and ensure operationalization of these priorities.

 The EIF will undertake its mid-term review later this year. This independent process will provide an assessment of how the EIF has been delivering on its mandate. Without pre-judging the outcome of that review, I will say that my impression is that the EIF is delivering and is good value for money. In a time of increasing budgetary concerns, the EIF is a smart investment. For the EIF to continue to deliver, it will need continued commitment from the LDCs and commitment from development partners on the sustainability of funding. Investing in trade capacity, in particular in the special situation of LDCs is a medium to long-term investment, but it holds the potential to deliver a rapid multiplier effect on growth and poverty reduction.

The OECD recently noted that major donors’ aid to developing countries fell by nearly 3 per cent in 2011, with LDCs seeing a fall in net bilateral ODA flows of -9 per cent in real terms to around USD 28 billion. In light of the budget tightening in traditional development partners, the future is less than certain.

I am pleased, however, that Aid for Trade, including that to LDCs has continued to increase. The outlook for Aid for Trade beyond 2010 (which is the latest data we have) may also be affected by financial and political constraints in development partners but the preliminary data shows that in 2010 Aid for Trade commitments reached USD 45 billion, a real increase of 12 per cent compared with 2009 and an 80 per cent increase compared with the 2002-2005 baseline average. There has also been a more than doubling of Aid for Trade to LDCs, from the USD 6.5 billion base line average to almost USD 14 billion in 2010.

 Beyond Aid for Trade, LDCs have also been at the centre of the recent decisions at the WTO Ministerial Conference. Work on the simplification of LDC accession procedures has gained good traction and I hope that in the coming months we will see the LDCs begin to operationalize the services waiver. Duty-free quota-free (DFQF) remains high on the LDC agenda, as does seeking an outcome in the trade facilitation negotiations — an agreement that has the potential to substantially increase the efficiency and investment attractiveness of LDCs.

Central to all of this is the imperative that LDCs keep identifying and prioritizing their needs, mainstreaming the EIF activities within their broader country strategies, and effectively delivering results with impact, through the support of the broader Aid for Trade funding.

LDCs are an integral part of the WTO and they stand to lose more than any other member if the current stalemate in the Doha Development Agenda is not resolved.  The LDCs are not part of the problem. But they can use their political weight to push for a solution. A proactive and empowered LDC membership is crucial. And this can be honed through a clear concept of your needs and priorities and through your partners continuing to demonstrate their commitment to address these. The EIF has a vast comparative advantage in helping us — collectively — to do that.

In the coming months as the mid-term review progresses, I would call on all of you at the political level to remain engaged and provide leadership in the acceleration of delivery, as well as ensure that the country teams provide the necessary inputs to facilitate a timely and successful conclusion of the mid-term review.

Thank you

 

 

RSS news feeds

> Problems viewing this page?
Please contact [email protected] giving details of the operating system and web browser you are using.