UNCTAD should address challenges faced by developing world

The UNCTAD, in the present context, should focus on addressing the increasing and diverse challenges faced by the developing world. “My delegation welcomes the theme of this conference, with its focus on addressing development led-globalisation towards sustainable and inclusive development paths.  While globalisation was an important and positive phenomenon, it should not be encouraged at the expense of social welfare and development priorities.   Globalisation is a means to an end, and not an end in itself,” said Minister of Industry and Commerce Rishad Bathiudeen addressing the UNCTAD General Assembly Session on 22 March.

Minister Bathiudeen is now in Doha leading the Sri Lanka delegation to the 13th Ministerial Meeting of UNCTAD being held at the Qatari National Convention Centre in Doha.

The Thirteenth Ministerial Conference of the UNCTAD, started on 22 April.

The Minister’s delegation includes Sri Lanka’s Ambassador and Permanent Representative to the United Nations in Geneva, Ambassador for Sri Lanka in the State of Qatar and senior officials from the Ministry of Industry and Commerce and the Department of Commerce.

The member states attach a high degree of importance to the Ministerial meetings, as they debate and adopt the UNCTAD’s action plan for the next four years.

Minister Bathiudeen said that Sri Lanka had been a pioneering member of the UNCTAD, and Sri Lankans were especially proud to have had one of their own countrymen, distinguished economist Dr. Gamini Corea, steered the UNCTAD as Secretary General in its early years.

In his address, the Minister also stated that the past four years since the last Ministerial held in Accra, Ghana, had proven both fulfilling and challenging for Sri Lanka.  He said that Sri Lanka had achieved steady economic growth, coupled with strong investor confidence since the ending of three decades of conflict and terrorism in 2009, which had long stifled the country’s potential for strong growth and development.

He pointed out that Sri Lanka, however, faced a number of challenges, including rebuilding and reconstruction commitments in the affected areas of the country and those challenges had been exacerbated by the uncertainties stemming from the volatile global economic environment.  

“As a small and vulnerable economy with substantial dependence on external trade, this volatility in the international markets is a matter of grave concern for Sri Lanka, particularly in the face of the challenges Sri Lanka must address in its reconstruction efforts,” highlighted the Minister.

He added that while globalisation was an important and positive phenomenon, it should not be encouraged at the expense of social welfare and development priorities. “Globalisation is a means to an end, and not an end in itself. Unchecked, it has resulted in serious ramifications for all of us, both in the developed and developing world. For instance, the effects of the 2008 financial crisis which originated in developed countries were rapidly felt in the developing world.”

The Minster also said that Sri Lanka strongly believed that the UNCTAD, which had been a pillar of strength for developing countries, had to play a crucial role in this backdrop.  

“Sri Lanka, for instance, is not an LDC and therefore, does not have the benefit of improved market access and flexibilities, nor the benefit of prioritised aid.  At the same time, we are not on par with larger developing countries or emerging economies.  Moreover, we are at the very early stages of recovery from a thirty-year old conflict, which decimated most of our country.  By virtue of size and increased dependence, we are extremely vulnerable to external shocks.   Therefore, I am of the firm view that the UNCTAD should continue to have a broad mandate to address all the varying requirements of the diverse countries that comprise the developing world,” the Minister said in this context.

The Minister also appreciated the valuable contribution made by UNCTAD in the establishment of the Generalised System of Preferences (GSP) and the Globalised System of Trade Preferences (GSTP).

He said that Sri Lanka looked forward to a productive Ministerial Session with tangible decisions that would facilitate UNCTAD’s role in identifying and effectively addressing the specific issues and challenges faced by the developing world, particularly in the context of this highly volatile global scenario.