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Chair of the 85th Session of the Working Party, Ambassador Priyanka Chauhan, Deputy Permanent Representative of India
Deputy Secretary-General of UNCTAD, Mr. Pedro Manuel Moreno,
Excellencies,
Distinguished delegates,
Ladies and gentlemen,

1. The Group of 77 and China would like to start by congratulating you, Mr. Chair, on your election to preside over this 85th session of the Working Party on the Programme Plan and Programme Performance, as well as the Deputy Permanent Representative of Nigeria, Mr. Gabriel Okoko, on his election as Vice Chair-cum-Rapporteur. We are confident that under your joint leadership we will have a productive meeting.

2. Our Group would like to thank the Deputy Secretary-General Mr. Pedro Manuel Moreno for his statement and for the update on the commitments previously made by Secretary General Rebeca Grynspan, on ongoing issues and on the way forward on several issues.

3. As we have stated in previous occasions, our Group considers the Working Party to be the right forum for Member States to exercise our oversight on the implementation of the mandates and work programme of the Secretariat. Moreover, our exercise during this session is particularly relevant as the year 2024 will be the last full year of implementation of the mandates of the Bridgetown Covenant. It is therefore paramount that we work collectively among the membership and with the UNCTAD secretariat to ensure that the programme captures the expectations of member States for this final stretch before UNCTAD 16.

4. Turning specifically to the programme plan for 2024, our Group would like to start by thanking the secretariat for providing the draft in a timely manner. As the trial period in relation to the budgetary cycle and its supporting documentation comes to a close with the final decisions adopted by the General Assembly, we can see how the programme plan document has come to a more stable state, being able to provide a better picture of the overall programme of work of UNCTAD.

5. Nevertheless, our Group continues to believe that there is room for improvement in successive programme plans, including through a maximum balance of the different areas of work of a given subprogramme, and of the regions highlighted, over a given set of consecutive yearly programme plans. We thus encourage the secretariat to consider such approaches in subsequent programme plans.

6. Looking beyond the programme plan document, it is clear that a number of issues of interest for member States do not fall within the scope of the programme plan discussion, given the New York-driven and strict documentation format of this process. We therefore call on the Secretariat to continue to explore ways and means to strengthen the existing mechanisms for member States to exercise their oversight role, including through the Annual Report of the Secretary-General to the Trade and Development Board, which should ideally include a written component, and through the other sessions of the Working Party.

Mr./Madame Chair.

7. The members of our Group will be presenting specific comments and concerns during the informal session and will engage with our partners in order to finalize the outcome of this meeting. Before we close, we would like to take a moment to make some brief remarks about some of the issues raised by the Deputy Secretary-General during his opening statement.

8. Firstly, we would like to express our satisfaction for the approval of additional resources for UNCTAD for 2023 in the form on nine posts. We look forward to the feedback on the specific allocation of these posts within the subprogrammes for which they were approved, as well as to the output generated by this additional capacity.

9. Secondly, we are pleased to see that there is progress on the definition of a multi-year framework with measurable indicators, for the implementation of the Bridgetown Covenant, as previously requested by our Group. We understand that this initiative has been taken forward in conjunction with the implementation of a results-based management framework for the work of the UNCTAD secretariat. With our Group being composed exclusively of developing countries, we continue to be the most interested in ensuring that development interventions generate tangible results and impact. We would nevertheless like to reiterate our wish for the due consideration to the guidance of member States and the political and multilateral nature of decision-making in how such a framework is applied. We therefore reiterate our call for a sustained dialogue with member States on the matter and move forward.

10. Once again, our Group would like to reiterate our support to the Secretary-General and the entire team in their efforts to more effectively implement the mandates provided by the membership.

I thank you, Mr./Madame Chair.

President of the Trade and Development Board Ambassador Hasans of Latvia,
Secretary-General of UNCTAD Ms. Rebeca Grynspan,
Excellencies,
Distinguished delegates,
Ladies and gentlemen,

1. On behalf of the Group of 77 and China, I would like to begin my remarks by expressing our deepest condolences to the people and the government of the Syrian Arab Republic, and the people and the government of the Republic of Turkiye following the devastating effect of the earthquake and aftershocks that hit the northern Syrian Arab Republic and the south-eastern Turkiye on 6th February, 2023 which, resulted into tragic loss of lives and unfathomable destruction, exacerbating the suffering of the Syrian and Turkiye people. With a heavy heart, we stand with all those grieving for their loved ones, searching for their loved ones, and for those fighting for their lives. I also take this opportunity to call upon the international community to join forces with respective Governments in extending the much-needed humanitarian support to the affected communities.

2. On the substantive agenda item, the Group of 77 and China would like to start by thanking the Secretariat, in particular the Division on Africa, LDCs and special programmes under the lead of Director Akiwumi, for The Least Developed Countries Report 2022: The Low-Carbon Transition and Its Daunting Implications for Structural Transformation.

3. The year 2023 has started with a lacklustre outlook for the world economy, battered by the succession of the shocks of COVID-19, the crisis in Eastern Europe, the rise in world inflation – especially for food and energy -, the sharp increase in interest rates in developed countries. World economic activity is slowing down and the forecasts for economic growth in all major economies has been revised downwards, with some of them projected to stagnate in 2023. Likewise, global trade volume is expected to stall this year.

4. Developing countries have been hard hit by this deteriorating international environment, which started this year, a situation which they had not yet been able to recover the level of economic activity they had achieved prior to the outbreak of COVID-19 pandemic. At present, they are struggling to cope with the adverse effects of this world economic downturn and, additionally, with the onslaught of the emerging external debt crisis. Among developing countries, least developed countries are the hardest hit by the lacklustre international environment and its deteriorating performance, due to their high levels of vulnerability. Moreover, given their low level of resilience, LDCs bear the least capacity to counteract and compensate these adverse international developments.

5. In this context, the UNCTAD’s Least Developed Countries Report 2022, the Low Carbon Transition and its Dauting implications for Structural Transformation, is a stark reminder of the fact that climate change has sharpened the development challenges of the LDCs. The LDCs need to reconcile the imperative of pursuing their development path with climate and environmental constraints. We welcome the report and commend the quality of its research and analysis, as well as the pertinence of its discussion of the policy implications.

6. The cornerstone of climate multilateralism is the principle of common but differentiated responsibilities, and respective capabilities, which appears in the text of both the United Nations Framework Convention on Climate Change and of the Paris Agreement. The LDC Report 2022 innovates by shedding light on how it applies to the specific case of LDCs.

7. First, in terms of the common responsibilities, the LDCs in the context of climate negotiation have made bold pledges of contribution to combatting climate change, in spite of the fact that are not the main responsible for climate change. The challenge for LDCs with transition to a low-carbon economy is on the question of how to accelerate their catch up with growth and development while simultaneously struggling to close the lingering wide economic and technological gaps that separate them from more advanced economies. Given that the responsibility to combat climate change is common to all countries, LDCs need even more support of the international community in order to be able to implement the ambitious commitments that they have made. They need to receive enhanced assistance especially in the fields of finance, technology, and capacity-building.

8. In terms of differentiated responsibilities, the report shows that LDCs have historically emitted just 3% of global greenhouse gases and at present account for just 4% of current greenhouse gas emissions. This means that their contribution to climate change is at most marginal level. They should therefore be given special consideration in international commitment on the low-carbon transition and be given special assistance for their participation in transition to a climate compatible development trajectory.

9. Concerning respective capabilities, the LDCs are countries with most limited institutional and economic capabilities to respond to the adverse consequences of climate change or to plan and implement this type of development trajectory. Therefore, they need strong international assistance, support and backing to help them not only cope with the negative effects of climate change, but also design and implement policies that narrow their development gap, while simultaneously contributing to an environmentally more sustainable future. To this end, they ned to receive decisive international support to strengthen the institutional capabilities of their state but also of their enterprise sectors to be able to adopt and mitigate climate change effects.

10. The principle of common but differentiated responsibilities and respective capabilities remains the cornerstone of the multilateral climate and regime and of environmental governance more broadly. It must be not only upheld, but also applied through concrete initiatives.

11. The LDC report 2022 proposes a framework of sustainable structural transformation for the development policies to be put in place in LDCs with the backing of their development partners. Implementing such framework consists of a way of reconciling LDCs’ developmental and environmental goals. This includes slowly orienting their development strategies in such a way that allows them to make use of new and emerging opportunities that arise in the wake of the transition towards low-carbon economies, for which they need external assistance to be able to do so.

12. The LDCs’ successful implementation of a sustainable structural transformation strategy requires not only the strengthened support from development partners, but also a conducive international environment for their trade, finance and technological relations with the rest of the world.

13. The Group of 77 and China encourages the UNCTAD secretariat to continue to analyse the implications and the consequences of the unilateral measures taken by major trading partners to provide incentives for the transition to a low-carbon economy. Despite their environmental intention, it is clear that such policies and programmes can have a strong impact on the trade and development prospects of developing countries, and particularly of LDCs, and on the outlook for their sustainable structural transformation.

14. Beyond vigilance on the consequences of such measures, LDCs also need the enhanced support from their development partners in terms of the establishment of new international support mechanisms which effectively accelerate their structural transformation in a way that is environmentally sustainable. The enactment of previously assumed commitments on official development assistance and the implementation of the climate financing commitments made by developed partners during COP 21 are initial steps in the right direction, though far from sufficient. They need to be complemented by active and decisive support to the weakest members of the world economy, as are the least developed countries.

15. As part of this effort, the Group of 77 and China calls for the strengthening of the work on LDCs carried out by UNCTAD, so that it can play the leading role in the implementation of the Doha Programme of Action that member States expect. This is an important element of the support of the international community to the LDCs.

I thank you, Mr. President.

President of the Trade and Development Board Ambassador Hasans of Latvia,
Secretary-General of UNCTAD Ms. Rebeca Grynspan,
Excellencies,
Distinguished delegates,
Ladies and gentlemen,

1.    The Group of 77 and China would like to start by thanking the Secretariat, in particular the team at the Division on Globalization and Development Strategies under the lead of Director Kozul Wright, for The Trade and Development Report 2022: Development prospects in a fractured world: Global disorder and regional responses.

2.    As the recovery from the COVID recession shows clear signs of fatigue, monetary and fiscal policy actions in advanced economies risk inflicting serious damage on the world economy, possibly worse than that suffered by many countries in 2009 and 2020. At a time of falling real wages, fiscal tightening, financial turbulence and insufficient multilateral support and coordination, excessive monetary tightening could usher in a period of stagnation and economic instability for many developing countries and some developed ones.

3.    Prospects are worsening, with growth in 2023 expected to decelerate further to 2.2%, leaving real GDP still below its pre-pandemic and a cumulative shortfall of more than $17 trillion, close to 20% of the world’s income. The synchronised slowdown is hitting all regions, but is especially alarming for developing countries, where the average growth rate is projected to drop below 3%, a pace insufficient to ensure sustainable development, further squeezing public and private finances and damaging employment prospects.

4.    Moreover, net capital flows to developing countries have turned negative with the deterioration of financial conditions since the last quarter of 2021. In net terms, developing countries are now financing developed ones. The situation in developing countries is much more tenuous than recognized by the G20 and other international financial fora, with talk of a global financial safety net increasingly at odds with reality.

5.    In order to provide lasting and sustainable solutions to finance development, the Group of 77 and China therefore supports the calls for the increasing of Official Development Assistance (ODA), a larger, more permanent, fairer and more effective use of SDRs, hedging mechanisms to deal with exchange-rate volatility, greater leveraging of multilateral capital to support developing countries with comprehensive social programmes. Most notably, progress is sorely needed on a multilateral legal framework for handling debt restructuring, including all official and private creditors. Furthermore, the activities and role of regional development banks must be duly supported.

6.    In short, our call is for new sources of finance and more policy space in which to use them. Yet, a lasting solution is only part of the equation, with the other being a programme of reforms in developing economies to boost productive investment and constrain capital moving to exploit tax and regulatory loopholes, along with new arrangements to support closer regional trade, investment and financial ties.

7.    The empirical analysis of regional trade patterns contained in the Trade and Development Report reminds us of the positive development impact that expanded regional trade can provide. There is evidence of a more important development impact, including through more industrialization, from regional trade than from integration into global value chains. Moreover, the increased attention that developed countries are devoting to geopolitical interests, such as “friend-shoring” or “strategic autonomy”, risks eroding further the already limited effective benefits of integration into global value chains.

8.    The dilemma facing developing countries is how to react to such trends. The Report we are considering discusses “open developmental regionalism” as a complement to multilateralism to support the development of regional value chains and help protect the vulnerability in developing countries. It could also help to strengthen the voice of developing countries in international trade governance and be a pathway towards more inclusive multilateralism.

9.    Open developmental regionalism is also associated with shallow trade agreements that do not unduly reduce the policy space available to developing countries. As such, it would be a useful strategy to consider in areas that pose new challenges to global governance but do not lend themselves to trade rules or where developing countries do not yet have the capacity to engage in binding multilateral commitments, as is the case for those related to digital economy and data governance and climate change.

10. Indeed, on digital economy and data governance, it would seem unwarranted to apply the traditional logic of trade rules to data flows. Instead, it needs to be recognized that the main sources of distortion in the digital economy are high market concentration and the proliferation of anticompetitive practices, with the policy response thus needing to focus on tackling these. Our Group therefore reaffirms its view that any negotiations on international data governance should take place in fora that are inclusive and that look at data from the systemic perspective that characterizes data. Hence, the United Nations may be a better forum to ensure inclusiveness of governance framework and systemic approach to data flows.

11. The Trade and Development Report 2022 also makes an important point about the missing development dimension of trade agreements related to climate change, flagging a skewed distributional impact against developing countries of potential unilateral measures taken by major trading partners. The Report concludes that such measures would have little impact on global carbon emissions but have adverse implications for the foreign exchange earnings of developing countries as result of trade distortion.

12. In contrast, UNCTAD has offered a positive trade and environment agenda that aims to address the developmental dimension that is missing in the discussions happening in other organizations such as the World Trade Organization.

13. The Group of 77 and China welcomes the proposals made in the Trade and Development Report for which we endorse as areas requiring special attention, such as:

• Facilitating patent-free environmentally friendly technology transfer;
• Providing additional financial resources to promote trade of environmentally sustainable products, such as through the Trade and Environment Fund;
• Building technical capacities, especially of least-developed countries (LDCs) and small island developing states (SIDS), in setting up climate-smart infrastructure and broader adaptive measures;
• Providing incentives such as preferential market access based on progress towards nationally committed goals or incentives for promoting trade and renewable substitutes; and
• Ensuring adequate policy and fiscal space for developing countries to design their trade policies around environmental goals.

14. A shift to such an agenda would provide a global framework to address climate change that is not narrowly focused on trade but propose policies that will allow developing countries to make the most of the coherence between special and differential treatment and the principle of common but differentiated responsibilities.

Mr. President,

15. Before concluding, our Group would like to turn to comment on the original research on global corporate arbitrage and its impact on developing economies contained in the Trade and Development Report 2022. Indeed, the Report is a tool for policymakers to gain a deeper insight into whether foreign direct investment (FDI), channelled through the corporate structure, creates new economic activity in the host country.

16. This research shows that typically, even if hosted by a developing country, a global multinational enterprise would strategically locate the activities yielding most income elsewhere. As a result, a quarter of the observed subsidiaries of multinational enterprises in the Global South engaged in no apparent associated economic activity but were simply dormant entities or phantom structures. In advanced countries, by contrast, the proportion of such entities in the overall corporate structure comprises less than 1 per cent.

17. There are important policy implications arising from this analysis, including on the development effectiveness of FDI inflows, on fiscal issues and tax policy, and on the need to enhance transparency. Our Group encourages UNCTAD to pursue this evidence-based research work further as part of its core research and analysis pillar, and to provide policy recommendations for an integrated, global approach on these interrelated issues. We also welcome further dialogue at the multilateral level on the relevant policy responses.

18. The Group of 77 and China would like to conclude by congratulating UNCTAD for another solid Trade and Development Report. Longstanding development problems will not be solved by pursing longstanding approaches, but rather by bold, innovative action resulting from out-of-the-box thinking, such as the one contained in this report. Our Group would like to invite our development partners to consider this report as part of the body of intellectual inputs that can help find durable solution to systemic development challenges.

I thank you, Mr. President.

Item 2 – High-level segment: Decarbonization opportunities and challenges in the Blue Economy

President of the Trade and Development Board, Ambassador Hashmi,
Secretary-General of UNCTAD, Ms. Grynspan,
Excellencies,
Distinguished delegates,
Ladies and gentlemen,

1. The Group of 77 and China would like to start by thanking the Secretary-General of UNCTAD for her comprehensive remarks at this high-level segment focusing on decarbonization opportunities and challenges in the Blue Economy. We would also like to express our sincere appreciation to the Secretariat for the various work undertaken relating to this particular area.

2. Oceans and seas are crucial in regulating climate and weather while providing essential ecosystem services. The ocean is a vital component of the global economy, with over 80% of trade transported via sea routes and providing employment for more than 150 million people. According to the UNCTAD Trade and Environment Review 2023, the ocean economy presents export opportunities worth over $1.3 trillion in ocean-based goods and services, accounting for approximately 6% of global trade.

3. The IPCC’s Special Report on the Ocean and Cryosphere provides evidence that global warming has already reached 1°C above pre-industrial levels, causing the ocean to become warmer, more acidic, and less productive. Melting glaciers and ice sheets are leading to sea-level rise, and extreme weather events are becoming more severe, dramatically impacting coastal communities.

4. G-77 members are affected by climate change in different ways. From the UNCTAD 2022 report, LDCs account for only about 1.1% of total global CO2 emissions from fossil fuel combustion, while SIDS contribute with less than 1% of total GHG emissions (IPCCC, 2018). At the same time, coastal and island countries with hot climates, particularly SIDS and most LDCs, are disproportionately bearing the adverse consequences of climate change with minor possibility to revert them. Seawater surface warming, sea-level rise, and extreme weather events are negatively impacting fisheries and aquaculture output and hindering the connectivity and productivity of maritime transport, ports, offshore energy, and tourist facilities.

5. Due to structural, institutional and economy limitations and with the aim of implementing ocean economy related commitments in NDCs, developing countries need massive support in terms of transfer of technology, capacity building and blue finance. The decarbonisation of ocean value chains will be important to secure exports, seize emerging ocean economic opportunities, enable resilience, and promote diversity through economic activities. This would be relevant to SIDS and LCDs as ocean-based sectors such as fisheries, seafood processing, maritime and port services, and coastal tourism represent a significant share of their GDP.

6. Shipping and air transport are the main lifelines for many developing countries, including SIDS and hence addressing challenges that undermine this sector is a critical sustainable development goal for them. Many developing countries are more prone to high transport costs, low shipping/transport connectivity, reduced export competitiveness and prohibitively priced imports. Impacts of rising costs will be harder on developing countries that export to distant markets, generated by the mere fact of the great distance to the final destination. Most of developing countries and are marginalized in international liner shipping networks, with low liner shipping connectivity levels. Concentrated markets in shipping together with low trade volumes and imbalances in flows are also undermining SIDS transport connectivity. Among the 50 least connected economies globally, 37 are SIDS. During the pandemic, SIDS experienced interrupted shipping services leading, in some cases, to shortages of foodstuffs and fresh food. The transport and logistics sector in SIDS is also highly dependent on imported fossil fuels, making decarbonization, including in transport and the attainment of SDGs economic, environmental and social targets in SIDS ever more challenging.

7. In this context, G77 and China expresses great appreciation for the support provided by UNCTAD in addressing the challenges faced by SIDS. UNCTAD’s support plays an important role in assisting countries to embrace sustainable and low-carbon strategies and solutions for their freight transport systems. The G-77 acknowledges the vital role played by UNCTAD’s research and data analysis efforts, such as the Review of Maritime Transport, as well as the organization’s initiatives and programs, including sustainable freight transport and finance (and PPPs), and sustainable smart ports ad energy transition.

8. Seaports are essential for global trade-led development, and for the ‘Blue Economy’. They provide access to global markets and supply-chains for all countries, including those that are landlocked, and are integral to maritime transport, as well as fisheries, offshore energy development, and many economic activities in coastal zones. But these critical infrastructure assets are at high and growing risk of climate change impacts, with important implications for global trade and the sustainable development prospects for the most vulnerable countries. As UNCTAD has been highlighting for many years, climate-resilience building and adaptation for seaports and other critical transport infrastructure is becoming an increasingly urgent imperative. However, as noted in a recent UNCTAD Policy Brief, better availability and access to infrastructure adaptation finance will be critical from the perspective of developing countries – often at the frontline of impacts, but with low adaptive capacity, and facing a COVID-related debt crisis. The G-77 strongly supports UNCTAD’s continued active engagement on this important issue.

9. The maritime sector is currently at the centre stage of the debate on sustainability. To address this pressing issue, collaboration between UNCTAD and the International Maritime Organization (IMO) is of essence.

10. Regarding the far-reaching implications of the COVID-19 pandemic, this Group highly appreciates UNCTAD’s active and extensive engagement in collaborative efforts to help address the COVID-19 related seafarers and crew change crisis, which has major implications for their health, wellbeing and human rights. The G-77 also recognizes UNCTAD’s technical assistance on ‘Transport and trade connectivity in the age of pandemics’, including extensive guidance, recommendations and training on the commercial law implications of the COVID-19 pandemic, which have been particularly useful in addressing some of the broad range of legal issues affecting traders across the globe. We appreciate, as well, the capacity building activities conducted since in port communities around the world through the TrainForTrade course on “Building Port Resilience against pandemics (BPR) and related emerging strategies derived from the experience of 4’600 participants from 163 countries (UNCTAD policy brief 96).

11. UNCTAD efforts to promote sustainable and resilient maritime supply chains and assist developing countries in addressing transport and trade logistics challenges arising from the COVID-19 pandemic are highly appreciated and welcome to continue. In particular, the G-77 value the capacity building guidebook to “Manage Risks and Enhance Resilience for Ports”, which is further supported by a dedicated UNCTAD website on “Resilient Maritime Logistics” and case studies.

12. To end, we would like to welcome UNCTAD’s continuous support in the field of trade facilitation and digitalization of international Trade and Customs procedures. These programs are essential for our group’s members to continue to integrate into global supply and value chains and to increase their trade capacity while aligning with international and trade system and rules.

Thank you, Mr. President.

President of the Trade and Development Board, Ambassador Hashmi,
Secretary-General of UNCTAD, Ms. Grynspan,
Excellencies,
Distinguished delegates,
Ladies and gentlemen,

1. At the outset, allow me, on behalf of the Group, to congratulate you and the Bureau on your election. I would like to assure you of the full support of G-77 and China during your tenure in taking forward the work of the Board. We would like to express our appreciation to the outgoing President the Ambassador of Latvia for his excellent and able leadership.

2. Mr. President, you have assumed the office at a crucial time when we are looking forward to reinvigorate the revitalization of UNCTAD’s intergovernmental machinery. As the President of the Board who had the honor and responsibility of the process, I know fully well the importance of the task as well as its delicacy.

3. The revitalization process began right after Bridgetown, with a clear and ambitious belief and understanding of the scope of the exercise which would involve a broad discussion on certain matters, leading to eventual clarity on possible specific measures, including the restoration of the negotiations function in UNCTAD. However, the geopolitical realities disrupted our work, yet the efforts did not cease. The Secretary-General of UNCTAD and the President of the Trade and Development Board continued their work quietly, given the broader systemic realities that prevented the process we envisioned after UNCTAD 15.

4. From the perspective of G77 and China, we found it would have been counterproductive to start our discussions with the nature of UNCTAD, its priorities, and its structure, given that these questions were settled long ago. Reopening these issues, would simply have polarized the membership and paralyzed our discussions. And, learning from the lessons of previous reform exercises, without addressing the central issue of restoring negotiations in UNCTAD, our revitalization exercise would have ended in frustration. Our view is that the central issue is to restore meaningful and substantive negotiations in UNCTAD with the aim of advancing the global consensus on trade and development, of which its resulting details will be useful in other relevant forums.

5. We therefore welcomed Ambassador Hasans’ vision and wisdom in proposing that at this session of the Board, we should come up with negotiated outcomes on the productive capacity index. Attaining a negotiated outcome at least in the productive capacities during this session will imply that we have begun the journey of revitalizing negotiations at UNCTAD, with expectations to achieve more in the next executive session of the Board.

6. Our priority as a group therefore, Mr. President, is to conclude the revitalization exercise by restoring negotiations in UNCTAD. That way we can focus on the substance ahead of us as we embark on the preparations for the 60th anniversary of UNCTAD and from there prepare for UNCTAD XVI.

7. I would also like to take this opportunity to thank Secretary-General Grynspan for her statement delivered this morning covering various related agenda items. We believe that this comprehensive treatment of related agenda items helps to bring greater clarity and coherence to our deliberations.

8. In the same manner, I would like to also thank the Secretary-General for organizing what I believe will be a very interesting discussion on “Decarbonization opportunities and challenges in the Blue Economy” at the high-level segment. The Group looks forward to that discussion and will make specific interventions on the discussions. But I would like to signal that we consider the high-level segment of great importance and it would have been even much better to come up with negotiated outcomes resulting from such discussions.

9. On other agenda items, I would like to touch briefly on the following as we will be intervening at greater length and details in the respective agenda items:

10. On agenda item 5 – Technology and Innovation Report 2023: Opening green windows – Technological opportunities for a low-carbon world, we agree with the Secretary-General that, ”to address the current technological challenge we need two key things – agency and urgency.” The report provides important insights and recommendations, which we will discuss in the coming days. What is key is the report’s observation and insight that the future requires different pathways, requiring not only innovation and adaptation but also courage and resources. The urgency is there, but the agency requires in part that developing countries are able to express themselves meaningfully, that their voice is given due weight and consideration. In the context of the Board, this requires all partners being open to discuss the agenda and priorities of the Global South. It requires the expression of their voice and not the repression of their aspiration. The reluctance of our partners to appreciate this, and to translate the voice of developing countries into intergovernmental outcomes in the Board and its subsidiary bodies is problematic and greatly restricts the utility of our discussions on matters as important as the issues raised in the technology and Innovation report 2023.

11. Turning to agenda item 6 – Activities undertaken by UNCTAD in support of Africa, we commend the secretariat on its various activities in support of Africa. We look forward to continued efforts and success. We also call on all partners in a position to do so to enhance their contributions to enable UNCTAD to deliver more ambitious especially given the current global reality of multiple and intersecting crises and challenges facing developing countries.

12. With regard to agenda item 7 – Productive Capacities Index (PCI) for Evidence-Based Policymaking we appreciate the work of the secretariat in developing the index and call for its further refinement. We also stress that this is the sort of work that helps to bridge the gap between the three pillars. In this case, the index helps to identify areas for improvement, the technical cooperation pillar can strengthen the capacity of beneficiary countries to close the gap, and the TDB can consider the lessons learned and policy options to advance the global consensus on the related issues. While we are prepared to work out for a negotiated outcome that will formalize and further the secretariat’s work in this area, we urge the secretariat to provide a more policy-level topic, and therefore more appropriate for negotiated outcomes in the Board, for next year.

13. Finally, on agenda item 8 – Evolution of the international trading system and its trends from a development perspective we welcome the return of this agenda item after many years of absence. Especially given the lack of progress on some key issues for developing countries in the WTO, this agenda item gives us the opportunity to discuss some of the difficult issues and offer possible solutions to issues under consideration. This is also an important forum for discussing cross-cutting issues that span various international organizations and negotiating forums. As the Group has repeatedly observed, the currency of diplomacy and multilateralism is negotiations. Consensus building without negotiations is just a seminar or workshop. We are looking forward to have negotiated outcome in this important area in the next sessions

14. In closing Mr. President, allow me to underscore what should have become evident by now: that our priority in revitalizing the intergovernmental machinery is to restore meaningful and substantive negotiations to the Board, and eventually to its various subsidiary bodies for a strong UNCTAD. UNCTAD is by its nature a conference and hence an intergovernmental body. As such, the ultimate expression of success to our work is to advance trade and development dialogue through intergovernmental outcomes making UNCTAD’s work more meaningful.

Thank you, Mr. President.

President of the Trade and Development Board, Ambassador Hashmi,
Deputy Secretary-General of UNCTAD, Mr. Moreno,
Director of the Division on International Trade and Commodities, Ms. Shirotori,
Excellencie and Distinguished delegates,
Ladies and gentlemen,

1. G77 and China has welcomed with appreciations the organization of a session dedicated to trade and the international trading system in the Trade and Development Board of UNCTAD. The group is of the view that this issue needs to be discussed in the UNCTAD main forum with more regularity to facilitate discussion on the emerging common vision of the need to improve the contribution of international trade in the SDGs achievement efforts.

2. Our discussions today constitute an excellent opportunity to look back and take stock of the international trading system since the creation of WTO in 1995. The multilateral trading system has been one of the underlying factors that facilitated the rapid growth in trade between 1995 and 2020. This trade growth has been one of the main engines of sustained economic growth over the past 3 decades. Some parts of the world, including some members of our groups, have undoubtedly benefited from trade in reducing poverty. However, these gains have been very unevenly distributed, and the COVID-19 crisis revealed a lack of resilience of some members of the group in times of economic shocks. The current cascading crisis continue to threaten developing countries to further derail the important progress they had achieved during the past decades as the poverty is in a high rise again.

3. The SDG target 17.11 was to “Significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020”, of which has not been met, with the LDCs’ share of the world’s exports even declining from 0.95% in 2011 to 0.91% in 2020 (Source: Boosting trade opportunities for least-developed countries: Progress over the past ten years and current priorities (wto.org)

4. The Uruguay Round and the creation of the WTO had instilled hopes for a transparency, enforced rules, and improved market access for all members, including developing countries. About a third of the WTO MFN tariff lines in the world are now duty-free as opposed to 15% three decades ago. However, this progress has been compromised by other developments. While market access may have improved in terms of tariff levels, the increase in Non-Tariff Measures translates into difficulties for our countries to achieve their export potential. Even for preferential markets provided by developed countries and to some developing countries to least developed countries and some developing countries, their utilization has remained low due to their stringent rules of origin and its administrative requirements. As result, some members of our group remain affected by commodity dependence, and the benefit they can derive from trade is, therefore, at the mercy of the vagaries of prices in international markets, over which our nations have little influence.

5. These past few decades have seen new challenges emerge that are radically transforming the context in which business and trade are carried out. This includes digitalization and climate change. The shifts in the configuration of global value chains, with increased near-shoring and re-shoring, also had a massive consequence for some of our economies. It is undoubtedly the digitalization including e-commerce, is opening new opportunities, including for developing countries. Yet the digital divides among countries persist, particularly for least developed countries risks further exacerbating the existing inequalities.

6. Climate change exerts strong influences on the structure and the contents of a country’s trade policy. Developing countries are the least responsible for climate change but often are bearing the burden of its impact disproportionately. Countries, particularly LDCs and SIDS, lack the technical and financial resources to adapt to climate change, wreaking havoc on their trading infrastructure and agricultural sectors. Decarbonization and energy transition are calling for immediate actions and are seeing the emergence of new technologies and markets. But as research and investments are concentrated in very few countries, most of developing countries risk being marginalized in the emergence of these new sectors.

7. Considering the mentioned imbalances and asymmetries, G77 and China aspires for a Multilateral Trading System that genuinely supports the achievement of the SDGs. More than ever, we need a transparent and rules-based framework that helps our countries grow and diversify our economies for inclusive and resilient societies.

8. As we approach UNCTAD’s 60th birthday, the world needs more than ever the contribution of UNCTAD in discussions to help devise an international trading system that is more development-centred. Our group welcomes the return of discussions on “trade” as a new standing agenda item of the TDB and looks forward to having agreed outcomes in the future deliberations.

9. In closing, G77 and China welcomes with appreciation the continued support of UNCTAD to developing countries in capacity building on trade policy formulation and the continuation of work in the areas of Commodities, Trade Facilitation, Non-Tariff Measures and other market access challenges, Services trade and Creative Economy, Competition and Consumer Protection Policies, Trade and Environment, and others.

Thank you, Mr. President.

President of the Trade and Development Board Ambassador Bahtijors Hasans,
Secretary-General of UNCTAD Ms. Rebeca Grynspan,
Excellencies,
Distinguished delegates,
Ladies and gentlemen,

1. The Group of 77 and China would like to start by thanking the Secretary-General of UNCTAD for the detailed presentation on the implementation of the outcomes of the 15th Session of the UNCTAD Conference. In this regard, the group would like to commend her willingness and efforts geared at re-focusing the work of UNCTAD to respond to the mandate set out in the Bridgetown Covenant.

2. We are highly appreciative of the comprehensive information that has been provided. As a large, diverse Group we would be able to react more meaningfully if some highlights are shared in advance, so we encourage the Secretariat to make arrangements for some advanced information for the next time we consider similar agenda items.

Now, turning to our statement.

4. Mister President, our group believes that it is of utmost importance that the implementation of the Bridgetown Covenant is properly planned, documented and regularly presented to the Membership. Only through this reporting process will member States understand the advancements made and what parts of the Mandate need more attention. It is important to prevent a situation where we arrive at a new Conference without knowing the level of implementation of the pervious mandate.

5. We wish to stress the importance of the continuation of the implementation of the Bridgetown Covenant within the three pillars of UNCTAD’s work. In research and analysis pillar, the group expects to see topics and recommendations that allow developing countries to overcome the challenges identified in the Covenant, as well as new challenges. In technical assistance, the Group expects the work to directly impact developing countries in their structural and economic transformation. Finally, under the consensus building pillar, the group emphasizes the importance of reflecting the priorities and challenges identified in the Covenant as the basis for choosing the topics of all meetings of the intergovernmental machinery.

6. Finally, the group notes that in the past, a written report of UNCTAD`s contributions to the implementation of and follow-up to the outcomes of the major United Nations conferences and summits in the economic and social fields was published in advance of the TDB meeting. We would like to request the continuation of this practice so as to allow us to better prepare and respond to the reported elements.

Mister President, I thank you.

President of the Trade and Development Board, Ambassador Hashmi,
Deputy Secretary-General of UNCTAD, Mr. Moreno,
Director of the Division on International Trade and Commodities, Ms. Shirotori,
Excellencie and Distinguished delegates,
Ladies and gentlemen,

1. G77 and China has welcomed with appreciations the organization of a session dedicated to trade and the international trading system in the Trade and Development Board of UNCTAD. The group is of the view that this issue needs to be discussed in the UNCTAD main forum with more regularity to facilitate discussion on the emerging common vision of the need to improve the contribution of international trade in the SDGs achievement efforts.

2. Our discussions today constitute an excellent opportunity to look back and take stock of the international trading system since the creation of WTO in 1995. The multilateral trading system has been one of the underlying factors that facilitated the rapid growth in trade between 1995 and 2020. This trade growth has been one of the main engines of sustained economic growth over the past 3 decades. Some parts of the world, including some members of our groups, have undoubtedly benefited from trade in reducing poverty. However, these gains have been very unevenly distributed, and the COVID-19 crisis revealed a lack of resilience of some members of the group in times of economic shocks. The current cascading crisis continue to threaten developing countries to further derail the important progress they had achieved during the past decades as the poverty is in a high rise again.

3. The SDG target 17.11 was to “Significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020”, of which has not been met, with the LDCs’ share of the world’s exports even declining from 0.95% in 2011 to 0.91% in 2020 (Source: Boosting trade opportunities for least-developed countries: Progress over the past ten years and current priorities (wto.org)

4. The Uruguay Round and the creation of the WTO had instilled hopes for a transparency, enforced rules, and improved market access for all members, including developing countries. About a third of the WTO MFN tariff lines in the world are now duty-free as opposed to 15% three decades ago. However, this progress has been compromised by other developments. While market access may have improved in terms of tariff levels, the increase in Non-Tariff Measures translates into difficulties for our countries to achieve their export potential. Even for preferential markets provided by developed countries and to some developing countries to least developed countries and some developing countries, their utilization has remained low due to their stringent rules of origin and its administrative requirements. As result, some members of our group remain affected by commodity dependence, and the benefit they can derive from trade is, therefore, at the mercy of the vagaries of prices in international markets, over which our nations have little influence.

5. These past few decades have seen new challenges emerge that are radically transforming the context in which business and trade are carried out. This includes digitalization and climate change. The shifts in the configuration of global value chains, with increased near-shoring and re-shoring, also had a massive consequence for some of our economies. It is undoubtedly the digitalization including e-commerce, is opening new opportunities, including for developing countries. Yet the digital divides among countries persist, particularly for least developed countries risks further exacerbating the existing inequalities.

6. Climate change exerts strong influences on the structure and the contents of a country’s trade policy. Developing countries are the least responsible for climate change but often are bearing the burden of its impact disproportionately. Countries, particularly LDCs and SIDS, lack the technical and financial resources to adapt to climate change, wreaking havoc on their trading infrastructure and agricultural sectors. Decarbonization and energy transition are calling for immediate actions and are seeing the emergence of new technologies and markets. But as research and investments are concentrated in very few countries, most of developing countries risk being marginalized in the emergence of these new sectors.

7. Considering the mentioned imbalances and asymmetries, G77 and China aspires for a Multilateral Trading System that genuinely supports the achievement of the SDGs. More than ever, we need a transparent and rules-based framework that helps our countries grow and diversify our economies for inclusive and resilient societies.

8. As we approach UNCTAD’s 60th birthday, the world needs more than ever the contribution of UNCTAD in discussions to help devise an international trading system that is more development-centred. Our group welcomes the return of discussions on “trade” as a new standing agenda item of the TDB and looks forward to having agreed outcomes in the future deliberations.

9. In closing, G77 and China welcomes with appreciation the continued support of UNCTAD to developing countries in capacity building on trade policy formulation and the continuation of work in the areas of Commodities, Trade Facilitation, Non-Tariff Measures and other market access challenges, Services trade and Creative Economy, Competition and Consumer Protection Policies, Trade and Environment, and others.

Thank you, Mr. President.

Chair of the 86th Session of the Working Party, Secretary-General of UNCTAD, Ms. Rebeca Grynspan, Excellencies, Distinguished delegates, Ladies and gentlemen,

1. We would like to start by congratulating you Mr President, on your election to preside over this 86th Session of the Working Party on the Program Plan and Program Performance. We are confident that under your leadership we will have a productive session.

2. We would like to also express our appreciation to the Secretary-General Ms. Rebeca Grynspan for her presence in this session and the introductory remarks she has provided this morning, updating the members about the implementation of previous commitments made.

3. The Working Party provides us with an opportunity to exercise our role of oversight on the implementation of the mandates and committed work programmes. Therefore, during the session will have an opportunity to discuss thoroughly the performance review of the technical cooperation activities of UNCTAD and their financing, the evaluation of UNCTAD activities notably Subprogram 2 and the preparatory session on the programme plan for 2025.

4. Mr President, our specific interventions will be made during the discussion on the respective agenda items. However, at this juncture, we will share few general comments on those items. With regards, to the review of technical cooperation activities, we would like to express our gratitude to the development partners who have contributed funds to be used in the UNCTAD’s technical cooperation projects. In the same manner, we would like to invite partners to consider enhancing their participation in the trust funds in the form of non- earmarked resources.

5. We recognize the efforts being taken to create synergies among UNCTAD three pillars, and the positive results of a technical cooperation anchored on strong analytical tools and have noted the emphasis placed on the sustainability of the projects outcomes. Similarly, we commend the Secretariat’s efforts to also enhance synergies with other agencies as result, UNCTAD has acquired a meaningful place in the UN Reform process.

6. As for the evaluation of UNCTAD activities, we welcome the use of resource-based management framework as a recently adopted tool. While we are still learning on the effectiveness and the value addition of the tool is bringing, it is worthwhile to continue assessing its usefulness for the sake of improving it.

7. Moreover, we commend the Secretariat for undertaking the external evaluation for Subprogramme 2, Investment and Enterprise and for attaining positive outcome that resulted from it. We believe the provided recommendations from evaluators will be appropriately implemented, in particular regarding enhancing the collaboration within UNCTAD as well as with other United Nations entities.

8. The G77&China highly appreciates the Secretariat for the provision to member States of the performance report on the implementation of deliverables for the past years, in line with the agreed conclusions from the previous session and looking forward that they will continue doing so for this year and in the future sessions of the Working Party.

9. On the resources for UNCTAD for the year 2023 presented during the last Working Party regarding the geographical representation of UNCTAD staff, the G77&China calls upon the Secretariat to continue providing such information and taking actions towards improving geographical representation of UNCTAD staff.

10. The G77&China would like to encourage UNCTAD to continue delivering assistance with priority to structurally weak economies like LDCs and African countries as well as those with challenging environment such as Palestine people and the SIDS. We urged UNCTAD to ensure the necessary resources and funding is allocated for implementation of activities and programs in those countries.

11. Lastly, the Group would like to reiterate our support to the Secretary-General and the entire team of UNCTAD in their efforts to effectively execute the mandates as provided by the membership.

I thank you, Mr President.

Chair of the 86th Session of the Working Party,
Director of the Office of the Secretary General of UNCTAD,
Excellencies,
Ladies and gentlemen,

1. On behalf of the Group of 77 and China, I would like to take this opportunity to commend you Chair for your leadership during the 86th Session of the Working Party on the Programme Plan and Programme Performance.

2. During the last few days of this session, we have had an opportunity to review the UNCTAD programme performance and programme plan 2025. We once more congratulate the Secretariate for the excellent work and achievements on Subprograme 2 and the continued efforts to implementation the mandate enshrined in the Bridgetown Covenant.

3. We welcome and encourage the Secretariat to continuously improve upon the new result-based management tool of evaluation of UNCTAD’s work.

4. Mr. President, we would like also to take this opportunity to once again call developing partners and members who are in a position to do so, to increase their contribution to UNCTAD funds, particularly in the form of non-earmarked in order to allow broader membership to benefit from UNCTAD technical cooperation projects.

5. The group considers important to have frequent briefings from the Secretariat on the toolbox and different projects being implemented by UNCTAD. It is critically important for relevant Divisions to keep Permanent Representatives informed and aware of the projects and their outcomes particularly those being implemented in the respective countries.

6. Lastly Mr. President, we would like to take this opportunity to thank all members for the interactive engagement we had during the session. It is their demonstrated openness and flexibility, has made it possible for our session to be successfully concluded with agreed outcomes. In the same manner, I thank Secretary General, the Secretariate and with a special recognition to the staff of the Group Liaison Section for their hard work. Similarly, we extend our appreciations to the regional groups coordinators for their coordination role they have played during the session.

I thank you Mr. President. Merci beaucoup!

Dr. Mukhisa Kituyi, Secretary General of UNCTAD,
Mr. Vicente Yu, Deputy Executive Director South Centre,
Amb. Farukh Amil, Vice Chair of G77 and China,
Excellencies,
Distinguished delegates.

1. I have the honour to welcome you to the Handover Ceremony of the Chairmanship of the Group of 77 and China. At the outset allow me to begin by presenting you with our best wishes for the New Year 2018. We are meeting today to welcome the new Chair of the Group of 77 and China, the Islamic Republic of Pakistan.

Excellencies,

2. You will recall that, a year ago, Tanzania was given the honour of chairing the Group of 77 and China, and we took such responsibility to heart. Before passing the gavel to the new Chair today, I wish to convey my Government’s sincere appreciation to all Members of the Group, for the unwavering support and guidance given to us throughout our tenure as Chair.

Excellencies, 

3. I would also like to extend our deepest appreciation to Dr. Mukhisa Kituyi, the Secretary General of UNCTAD and his staff for their dedicated support over the course of the past year. We have steadily forged increasingly closer ties with UNCTAD and I believe that through working together we have restored much of the special relationship between UNCTAD and the Group of 77 and China in Geneva.

4. Once again, I wish to single out for thanks to the dedicated staff of the Group Liaison Unit – Ms. Yan He, Ms. Mispa Ewene, Ms. Rima Kebbe, Ms. Yvette Fernandez for their steadfast assistance to the group.  I also wish to extend our appreciation to the former Group Liaison Chief Mr. Miguel Bautista who during his time provided invaluable support to our Group, moreover we look forward to getting his replacement as soon as possible to continue steering the group work.

Excellencies, 

5. As I handover the Chairmanship, I can’t help but feel proud of what we as a group have accomplished over the past year. I am confident that we will achieve even more in this year under the good leadership of my successor.

6. I need not remind colleagues that UNCTAD is our organization, established Fifty Three Years ago to fulfil the demands of developing countries in confronting obstacles and trade barriers at international level, to realize their economic potential. It is an organization borne out of the Group of 77 and China. This gives UNCTAD a very special place in our Group.

7. UNCTAD remains an important organisation to us even today because 53 years after its founding, the conditions that existed then, such as the lack of an enabling environment, the imbalances, the vulnerabilities, the lack of resilience to external shocks, still to this day threaten all of us.

8. It is true that some of us have developed and we have created our own institutions and our own safety nets, yet we still live in a world where the ideas, institutions, and systems of the North dominate the trade and development system that we are all supposed to benefit from. We still do not have the level playing field that we set out to establish 53 years ago. In other words, the Group of 77 and China still needs a well-functioning UNCTAD and the UNCTAD needs a stable and well organised Group of 77 and China.

Excellencies,

9. In 2017 we embarked on the implementation of the Nairobi Maafikiano. I believe what the Group accomplished in the past year laid the foundation for our success in the years ahead. Although the Tanzania Chairmanship was one filled with challenges, I believe our Group achieved much in what was a banner year in the field of development. We started 2017 preparing the Terms of Reference for the establishment of the two important Intergovernmental Expert Groups namely Financing for Development and E-Commerce and Digital Economy. Negotiations for the TORs were lengthy but we managed to secure balanced TORs for both working groups and most importantly resorted to have agreed negotiated outcome of our experts from these meetings.

10. The group also participated actively in Working Party negotiations throughout the year, the multi-year expert meetings, in the commissions and of course the 64th Session of the Trade and Development Board (TDB). During the TDB session the Group tabled a proposal for the first time on agreed conclusions/resolution for all agenda items of the Trade and Development Board. Although partners rejected the proposed resolution, the group succeeded to insert the proposal on the report of the Trade and Development Board. Also the 64th Session approved the proposal to shift the Trade and Development Board to June to allow better linkages with New York dialogue and high level participation.

Excellencies,

11. There were other accomplishments, which I believe have enhanced our negotiating capacity and strengthened our group unity. We held the G77 and China retreat in June, 2017, where we managed to agree on our position for Phase II implementation of the Nairobi Maafikiano “The revitalization of the Intergovernmental Machinery” and featured notable speakers and experts who have been working in the development field for decades. During the retreat we also agreed to establish a Taskforce of Ambassadors to prepare the group strategic direction.  The Taskforce namely “Friends of the Chair” met in November, 2017 and I am confident that they will accomplish the work and provide a good proposal for our group.

12. I would like to emphasise that any success of the Tanzania Chairmanship was because of the strong support and solidarity of the Group. If we, as a Group, are to be successful we need to maintain and promote our “unity in diversity” in pursuing vigorously our common interests. The greatest strength and bargaining power of the Group of 77 and China lies in our ability to maintain and negotiate as a united front. As an outgoing Chair I would like to urge the group to remain united and strong. We should not let issues within the group divide or break us. WE MUST ALWAYS PRESENT A UNITED FRONT.

Excellencies,

13. At this juncture, I wish to thank all those that supported Tanzania Chairmanship and I would like to begin by acknowledging all the members of the Group of 77 and China. I also wish to thank wholeheartedly the South Centre for their tirelessly support and being an important partner of our Group. Aside from South Centre, let me also thank UNITAR for their support in co-organizing the group retreat in June, 2017.

14. Lastly, I thank all the UNCTAD experts particularly the regional coordinators from the Group of 77 and China for their hard work, dedication, and commitment.

15. In closing, I wish to assure H.E Farukh Amil, the Ambassador of the Islamic Republic of Pakistan my delegation’s strong support throughout his chairmanship of the Group of 77 and China. He has a challenging task ahead, but if we show him the same support that you all provided to Tanzania in the past year, I have no doubt that his Chairmanship will be a resounding success.

I THANK YOU.

Ambassador Dr. James Mskela, Permanent Representative of Tanzania,
Secretary-General Dr. Mukhisa Kituyi,
Distinguished ambassadors and delegates,
Ladies and Gentlemen:

It gives me immense pleasure to be with you all at the handover ceremony of the Group of 77 and China in Geneva. At the outset, let me commend the outgoing Chairperson, Permanent Representative of Tanzania, Ambassador Dr. James Mskela for his leadership and his tireless efforts to provide direction to the Group. We feel honored to assume the coordination of the largest group of developing countries for the year 2018. It is a matter of great responsibility also to steer the important work concerning trade and development especially during these challenging times when very fabric of multilateralism is at risk. Pakistan attaches great importance to the work of the Group of 77 and China and values its stewardship. Right at its establishment in 1964, Pakistan’s Ambassador Syed Amjad Ali served as first ever Chairman of the Group. Our chairmanship in 2018 will continue that honored tradition.

Dear colleagues, distinguished delegates:
We need to increase the relevance and awareness of UNCTAD work and participation of developing countries with a view to benefit from its expertise and technical assistance. The reinvigoration of the G77 & China and UNCTAD is absolutely critical to address contemporary challenges. We need to encourage UNCTAD and developing countries to focus on emerging technologies (3D printing or additive manufacturing, Internet of Things, Big Data, Genetic Engineering, Artificial Intelligence and Electronic Commerce) which have far-reaching implications not only on economic and social development of developing countries but also for the mutually beneficial international trading and economic system. In particular, developing countries should fully tap into the potential of e-Commerce – the democratization of opportunities.
In addition to our priority areas, developing countries need to explore other important themes such as the role of private sector and importance of public-private partnership especially in the implementation of Sustainable Development Goals (SDGs). The G77 and China, Geneva Chapter should seek to enhance UNCTAD’s liasion and coordination with the Department of Economic and Social Affairs (DESA) and the Secretariats of the regional economic commissions and other United Nations Agencies/International organizations. UNCTAD’s foundational resolution of General Assembly also stipulates to carry out economic, trade and development functions of UNCTAD in coordination with these important entities. Similarly, we should strengthen the relationship of the Group of 77 and China with institutions/forums of the Global South such as NAM and the South Center, Geneva. We should improve coordination with other Chapters of the Group of 77 and China especially New York Chapter. It is also important to enhance visibility of the UNCTAD’s work in New York, particularly at the UNGA’s Second Committee. The G77 and China, Geneva Chapter should seek to actively participate in the Second Committee’s work related to UNCTAD’s mandate. The G77 and China should fully utilize UNCTAD’s unique intergovernmental role as an organ of the General Assembly – as embodied in General Assembly resolution 1995 (XIX) – to raise issues of concern to us related to trade and development.

Dear colleagues, distinguished delegates:
Pakistan remains committed to promoting the Group’s common interests. During our coordination, we will be open to ideas on how best to achieve meaningful results for all of us. It goes without saying that we would require your active participation, encouragement and support in all our deliberations.

Lastly, I once again thank you all for your confidence in Pakistan to assume this huge responsibility and looking forward to work with you all.

Mr. President,
Secretary-General/Deputy-Secretary-General
Distinguished colleagues,

I have the honor to deliver this statement on behalf of the Group of 77 and China.

We congratulate you on your election as the TDB President and assure you of the Group’s full support in discharge of your duties. We hope that under your leadership the TDB would again resume its normal functions and serve as important part of the UN development pillar.

I would like to thank the Secretary-General for his detailed annual report outlining important milestones. We also appreciate the Secretariat for their work.

Mr. President the G77 and China welcomes the State of Palestine as a full member of UNCTAD

Mr. President,

This important session of the Trade and Development Board is being held in the background of momentous challenges posed to multilateralism as a whole and international trading system in particular. Forces of protectionism are seeking to overturn the painstaking accomplishments realized by multilateralism over the decades – a multilateralism which is deeply anchored into hard-won principles. Whilst we can argue whether or not multilateralism is delivering for developing countries, it is now developing countries alone who continue to defend it in the face of indifference of developed countries.

Amidst challenges of world economy and international trade, upholding multilateralism is absolutely critical which can deliver for all and not just for the few. To that end any trust hurting moves which make trading atmosphere turbulent, including unilateralism in its all forms and politicization of developmental issues should be avoided and development approach should be accommodated the the center of all negotiation process.
The Group calls for a constructive dialogue between developed and developing countries for strengthening of international cooperation and the promotion of economic growth and development of developing countries. The dialogue – reflecting mutual interdependence – should be based on common interests and benefits to developed and developing countries. Shirking from such a constructive engagement would further erode the trust and confidence reposed to international trade and economic system in general and multilateral institutions in particular.

Mr. President,

The role of UNCTAD is critical in narrowing the trust deficit especially on trade and development issues. UNCTAD speaks the language of future and it is important that developed and developing countries maintain and enhance their support to UNCTAD for it to continue functioning as a great space of dialogue between governments and with other important stakeholders especially the private sector.

The contribution of UNCTAD is invaluable in support of all developing countries especially Africa, LDCs, LLDCs and SIDS. We would like UNCTAD to continue focusing on longstanding issues including debt and international finance, investment, structural transformation and industrialization, transport and logistics, trade facilitation, trade trends and regulations as well as emerging issues of technology, innovation and growing role of e-Commerce and digital economy.

Mr. President,

The Group of 77 & China attaches great importance to the work of this Conference and would like to see its intergovernmental machinery delivering to its potential and working for consensus-building which remains its raison d’etre. Fulfilling the mandate given by the Nairobi Maafakiano, we should all strive for revitalization of intergovernmental machinery of UNCTAD to better respond to contemporary challenges and support the implementation of Sustainable Development Goals (SDGs).

The Group believes that the process of revitalization – to be concluded by this session – should focus on strengthening the outcomes of the Trade and Development Board and other intergovernmental bodies of the Conference. Robust, practical and concrete outcomes of excellent discussions held at the intergovernmental meetings would ensure better impact of UNCTAD’s contribution to the UN’s development agenda. Due consideration and follow-up of outcomes of UNCTAD intergovernmental machinery at the Economic and Social Council and the General Assembly would help in addressing development challenges. This would also neatly fit into the “ECOSOC Review” process currently going on in New York where a reformed ECOSOC is being envisaged to play active role in building strong linkages with entities across the UN system.

Mr. President,

The Group of 77 & China would like to highlight few institutional issues of importance to the Group:

• The Group calls for establishing an institutional mechanism to assess and follow-up the implementation of the Conference’s outcome as well as decisions taken by the TDB. Such a stocktaking exercise established on an institutional basis would ensure strong, effective and efficient working of the Conference and its Secretariat;
• The Group is concerned over the delay in filling the post of Group Liaison Unit, and Director of Trade Division even after its being vacant for more than a year. We call on the Secretary-General to urgently address the matter and report to Member States;
• The Secretariat must ensure the availability of parliamentary documents and reports in advance of all meetings especially the TDB, as per Rules of Procedure. We understand that due to rescheduled regular session of the TDB, some documents could not be made available on time. However, this must be taken as an exception rather than routine practice.

Mr. President,

The Group would actively participate in the session’s proceedings and assure you of our cooperation for a successful TDB. We would highlight other issues of importance under their respective agenda items.

I thank you Mr. President.

Mr. President,
Secretary-General/Deputy-Secretary-General
Distinguished colleagues,

I have the honour to deliver this statement on behalf of the Group of 77 and China.

At the outset, the G77 and China would like to commend UNCTAD Secretariat for the issuance of the Economic Development in Africa Report 2018 subtitled “Migration for Structural Transformation” which is a necessary addition to the available documentation in the lead up to the global compact on Migration.

The Group strongly believes that well-managed migration benefits both origin and destination countries, hence African migration can play a key role in the structural transformation of the continent’s economies and also provides an important means for helping to achieve the Sustainable Development Goals, both in Africa and beyond.

Recognizing the recent agreements on the establishment of the African Continental Free Trade Area (AfCFTA), the Protocol on the Free Movement of Persons and the launch of the Single African Air Transport Market, this Report will contribute to a better understanding of the implications of intra-African migration for the continent’s socio-economic transformation.

Realizing the fact that Africa is projected to have the largest population growth of any geographical region by 2050, which will have important consequences for international migration, and major implications for the continent’s economic development. The G77 and China request the international community to exert stronger efforts to support Africa for establishing the necessary mechanisms for migration management that best contributes to the continent’s structural transformation.

The G77 and China believe that this report offers new and innovative analytical perspectives, relevant for both long-term policymaking and for the design of demand-driven technical cooperation projects, with a shorter time frame and will help Governments and other stakeholders in reaching informed decisions on appropriate migration policies in the context of Africa’s regional integration process.

The G77 and China request that international migration to and from Africa driven by historical, geopolitical and economic factors, including South-South Foreign Direct Investment, warrants a stronger consideration for the co-dependent relationship between Africa and countries of origin of migrants in Europe, America and Asia in the Global Compact for Migration.

The Group stress the importance of agreeing a development pillar as part of the Global Compact for Migration which galvanizes support from the international community.

The Group request UNCTAD, to continue its research and analysis on Africa’s development issues and to strengthen efforts to enhance the developmental impact of its activities.

I thank you Mr. President.

Mr. President, Ambassador Salim Baddoura (Lebanon),
Secretary-General, Mr. Mukhisa Kituyi,
Minister of National Economy, State of Palestine, H.E. Ms. Abeer Odeh,
Excellencies,
Distinguished colleagues,

I have the honour to deliver this statement on behalf of the Group of 77 and China.

I would like to thank the Secretary-General and his team for the report on the Assistance to Palestinian people.

The G77 and China express its concern that Palestinian people and economy continue to face challenges of poverty, Israeli settlements land confiscations, movement restrictions, closures and de-development and other extreme conditions imposed by the Israeli Occupation. As the report mentioned there is an urgent need to replace the customs union with Israel enshrined in the Paris Protocol with a new framework that helps the State of Palestine to break the cycle of de-development.

The group emphasizes the importance of the UNCTAD’s assistance to the Palestinian people program, in raising international community’s awareness of the Palestinian suffering and in supporting the efforts to achieve a just, lasting and comprehensive peace in the Middle East in accordance with the General Assembly resolutions and UNCTAD’s mandates related to development and trade in the occupied Palestinian territory.

Mr. President,

We reiterate the need of the technical assistance to the Palestinian people undertaken by the UNCTAD and call for their further enhancement and reinforcement by attributing adequate budget and human resources, securing resources is critically important for UNCTAD to strengthen its assistance to the Palestinian people and the implementation of paragraph 55(dd) of the Nairobi Maafakiano.

It’s a matter of concern that full implementation of para 55 (dd) could not be made possible due to “budgetary constraints and limited extrabudgetary support”. We call for implementation of this important decision in support of Palestinian people and request the Secretariat to provide detailed proposal and the budget estimates required for fulfilling its mandate.

I thank you Mr. President.

Mr. President, Ambassador Salim Baddoura (Lebanon),
Secretary-General, Mr. Mukhisa Kituyi,
Distinguished colleagues,

I have the honour to deliver this statement on behalf of the Group of 77 and China.

I would like to thank the Secretary-General and his team for the detailed report highlighting the Secretariat’s role and contribution in the implementation of mandate received from the last Ministerial Conference.

The 14th UN Conference on Trade and Development held in July 2016 in Nairobi, Kenya should rightly be considered as an important milestone in the United Nations’ multilateral work on trade and development and interrelated issues of investment, finance, technology and sustainable development. However, since then we have already witnessed enormous deterioration in the principles and practice of multilateralism as a whole and multilateral trading system in particular. Indeed, ideological and fiscal onslaughts on multilateralism and multilateral institutions could overturn the painstaking work done over the decades.

Mr. President,

The Group of 77 & China call for correcting inherent imbalances in the trade, economic and development systems that remain heavily tilted in favour of developed countries. We are still a long way from our overarching goal of providing enabling environment to developing countries to achieve their full economic potential. The need for constructive, structured and result-oriented dialogue between developed and developing countries has thus grown, not diminished, with even broader set of issues. Longstanding issues such as debt, illicit financial flows and Financing for Development still warrant our immediate attention as well as 21st Century challenges including climate change, environmental protection and the Fourth Industrial Revolution characterized by automation, robotics, Internet of Things, artificial intelligence, 3D printing and big data. Without such dialogue the gap between developed and developing countries would only grow further to the detriment of both.

Today after three years of adoption of Sustainable Development Goals (SDGs), the progress in their implementation can best be characterized as mixed. Clearly, we need to step up our work for realization of these goals. As international cooperation and partnership were part of the SDG package, the Group calls for a robust mechanism to assess and follow-up the implementation of commitments made at international level. We want to see UNCTAD’s robust role in the implementation of Agenda 2030 and Addis Ababa Action Agenda, as called for in the Nairobi Maafakiano.

Mr. President,

Nairobi Maafakiano had set the mandate for UNCTAD’s work for four years and equally importantly provided policy analysis on trade, economic and development issues. The G77 & China had asked for undertaking a Mid-Term Review in order to assess the implementation of Ministerial Conference, take stock of progress made so far and suggest ways and means to improve our future work.

The Group of 77 & China would like to highlight few issues of general nature with regards to the Mid-Term Review of Nairobi Maafakiano. In subsequent sessions, the Group will provide detailed comments/observations on individual paragraphs/sub-themes of the document:

i. At the global level, the developments since UNCTAD XIV in the areas of trade, investment, finance and technology demand constant and continuous attention from the international community; and some challenges in these fields have become more acute to many developing countries. Trade tensions are rising and the multilateral trading system is under severe stress. Productive investments appear to be in a negative cycle. The increase in many developing countries’ public and private debt and a likely interest rate hike in advanced economies could lead to financial distress. Moreover, the role of technology in economic growth has further risen with digital economy, creating opportunities and challenges as “closing technological gaps” is becoming harder as the pace of innovation continues to accelerate;

ii. The Group reaffirms important principles underpinning all of our work including policy space, special and differential treatment and right to development;

iii. The G-77 & China reiterate the importance of right to development. We cannot think of fulfilling human rights without ensuring human dignity through economic opportunities, trade and development. Freedom from poverty is a human right too;

iv. As we called for dialogue between developed and developing countries, we believe that there is immense potential in UNCTAD to provide necessary space and platform enabling informed and confidence-building dialogue involving all stakeholders. With the “revitalization of intergovernmental machinery”, we tried to put fresh impetus to these efforts. Although that exercise did not yield optimum results, we are determined to continue our efforts for UNCTAD intergovernmental machinery to live up to its potential;

v. We consider the establishment and operationalization of Intergovernmental Groups of Experts (IGE) on E-Commerce and Digital Economy and Financing for Development as one of the key successes of Nairobi Maafakiano. Overwhelming participation of relevant experts, concrete policy recommendations and visibility of these IGEs outside Geneva prove that with right conditions and political will, intergovernmental machinery can serve its intended purpose of building consensus on important longstanding and emerging issues. In fact, IGE on E-Commerce and Digital Economy is one of its kind in the UN system. Therefore, we would like these IGEs to continue and be further strengthened in the next Ministerial Conference;

vi. We are pleased to note the progress made in several important areas as identified in the Nairobi Maafakiano. However, there is much to be desired for progress in many areas including on tax evasion, tax avoidance, transfer of technology, illicit financial flows, trade and Intellectual Property;

vii. Member States should be better informed and consulted before and after important meetings where UNCTAD Secretariat takes part to present a collective view of the organization. By making it a regular feature of UNCTAD’s work would remove information gap and improve follow-up on important issues;

viii. North-South Cooperation still remains the primary vehicle of international cooperation complemented but not substituted by South-South and Triangular Cooperation. With diverse backgrounds, varied economies and different levels of development achieved within the developing countries, there is a tremendous scope for cooperation on trade, investment and sharing experiences;

ix. We have noted with concern the sharp decline in contributions from developed countries for important work done in the technical cooperation. If this trend is not arrested immediately, there is a concern that many important projects/initiatives could not be sustained;

x. It’s also a matter of concern that full implementation of para 55 (dd) could not be made possible due to “budgetary constraints and limited extrabudgetary support”. We call for implementation of this important decision in support of Palestinian people and request the Secretariat to provide detailed proposal and the budget estimates required for fulfilling its mandate.

As this is an important exercise, the Group of 77 & China would be making detailed comments/remarks on each sub-theme as we progress in the meeting.

Mr. President, we assure you of our full cooperation for a successful session.

I thank you.

Mr. President, H.E. Ambassador Salim Baddoura (Lebanon),
Mr. Mukhisa Kituyi, Secretary-General of UNCTAD
Mr. James Zhan, Director, Division on Investment and Enterprise
Excellencies,
Distinguished Colleagues,

I have the honour to deliver this statement on behalf of the Group of 77 and China.

We thank Director James Zhan for the presentation of the 2018 World Investment Report.

Mr. President,

We are concerned to note the Report’s main finding which observed a sharp fall in global foreign direct investment (FDI) in 2017. FDI flows fell by 23 percent in 2017 to USD 1.43 trillion from USD 1.87 trillion in 2016 in large part due to a 22 percent decrease in the value of cross-border mergers and acquisitions. However, as Report states, significant fall was also observed in the value of announced greenfield investment which fell by 14 percent to USD 720 billion. It is important to note that despite significant fall, investment still remains the largest external source of finance for developing countries.

We also note that even as global FDI fell by 23 percent, flows to developing Asia remained stable at USD 476 billion – regaining its position as the largest FDI recipient in the world. There was a modest increase in FDI flows to Latin American and Caribbean. However, FDI in Africa was at a 10-year low.

Mr. President,

Investment is recognized as one of the major sources of financing the 2030 Agenda, together with the provision of financial resources, transfer of technologies and capacity building for developing countries. As stated by the World Investment Report 2018, “the Addis Ababa Action Agenda on Financing for Development recognizes the important contribution that FDI can make to sustainable development, while noting that the other flows are also critical”. In this regard, fall in investment – in quantitative or qualitative terms – would surely have negative impact on the realization of the 2030 Agenda and its Sustainable Development Goals. The Secretariat is requested to share further insight into the implications of such decline in investment on financing the SDGs. How do we see investment trends in coming years and its impact on SDGs?

Developing countries need quality investment which can create jobs, enhance competitiveness and productivity and open up opportunities for local businesses including most importantly micro, small and medium-sized enterprises.

The Report has also observed a sharp decline in number of new International Investment Agreements (IIAs) concluded in 2017, which was the lowest since 1983. This may be partly due to high number of Investor-State dispute settlement claims. There are many questions surrounding the efficacy of IIAs in delivering the desired results at a time when alternative mechanisms have worked well in some jurisdictions. We need to further contemplate the reasons for decreasing level of confidence on IIAs for promotion of investment.

I thank you Mr. President.

Mr. President, H.E. Ambassador Salim Baddoura (Lebanon),
Mr. Richard Kozul-Wright, Director, Division on Globalization and Development Strategies,
Excellencies,
Distinguished delegates,

I have the honour to deliver this statement on behalf of the Group of 77 and China.

We thank the Secretariat for the presentation of Trade and Development Report 2018 and appreciate the panelists for their insights.

The Report highlights weak spots of world economy which is again going under stress. Ten years after the financial crisis and the start of Great Recession, the economic recovery especially for many developing countries is excruciatingly slow. The growing debt, volatile financial flows, huge technological and digital gaps, high inequalities, trade and tariff wars for so-called race to the bottom are all weighing down on the prospects for robust economic turnaround.

Mr President,

Policy analysis is showing weakened economic and trade outlook due to strains on multilateralism and multilateral frameworks. UNCTAD analysis has observed sharp decline in investment in 2017. Just few days ago, the World Trade Organization (WTO) has again lowered down its outlook for the global trade from 3.9 percent to 3.7 percent due to escalating trade tensions and tighter credit market conditions.

There are growing concern that the imbalances that caused the financial crisis have not been addressed and the consequences are hitting developing countries again. The tariff escalation will not solve these imbalances but will make it more difficult to build cooperation to find inclusive and sustainable solutions. The Group therefore calls for strengthening rules based multilateral trading system and addressing imbalances in the prevailing regime to enable greater and meaningful participation of developing countries.

The Report shows that very large international firms have been the big beneficiaries of the international trading system in recent years leading to inequality and uneven development. We need a fresh approach to dealing with the asymmetric power relations that this implies and hampers development prospects in many countries. Therefore, we call for more research and analysis on this crucial aspect.

Mr President,

As international cooperation and partnership were part of the SDG package, the Group calls for a robust mechanism to assess and follow-up the implementation of commitments made at international level. South-South cooperation can help but it’s not a substitute for an inclusive multilateralism that works to bring prosperity for all. That system is now in crisis and we need fresh thinking from UNCTAD about how to ensure rules and institutions to work for development

The Group welcomes the Report’s focus on infrastructure and its call for a more integrated perspective on the infrastructure challenge linked not just to the financing of projects (which is critical) but also to how infrastructure can feed in to efforts to build more robust and diversified economies.

Mr President,

We do recognize the growing influence of digital technologies on the world economy. Digitalization has transformational effects and is generating both opportunities and risks. Many developing countries, especially the LDCs, are inadequately prepared to capture the many opportunities emerging as a result of digitalization.

The Report also highlights that technological and digital gaps may create or exacerbate existing inequalities as productivity gains may accrue mainly to a few, already wealthy and skilled individuals. The Group is concerned that the potential benefits from new technologies particularly digital may be skewed in favour of big platforms.

We also recognize that there are concerns over how data flows and digital platforms should be harnessed while at the same time addressing concerns related to privacy and security, implications for competition and taxation.

To this end member States will need to explore relevant approaches to policy making at the national, regional and global level, taking all development aspects into account. Given the differences in readiness to engage in a benefit from digitalization, there are no one-size-fits all solutions to apply.

I thank you Mr. President.

Mr. President, H.E. Ambassador Salim Baddoura (Lebanon),
Mr. Paul Akiwumi, Director of the Division on Africa, Least Developed Countries and Special Programmes,
Excellencies,
Distinguished Colleagues,

I have the honour to deliver this statement on behalf of the Group of 77 and China.

We thank the Secretariat for preparing its report highlighting the activities carried out by UNCTAD in supporting Africa to achieve its development endeavours.

Mr. President,

The Group appreciate the efforts of the UNCTAD Secretariat through the technical cooperation pillar and looks forward to its continuity by enhancement efforts in building productive capacities for Africa and exchanging best practices to assist the implementation of SDGs as part of a broader effort to bring-about inclusive and sustainable development.

The Group recognizes the importance of UNCTAD research and policy analysis which provides pragmatic policy recommendations that support African countries in transforming their economies to accelerate sustainable development and facilitate the region’s integration into the world economy. In this context the Group requests UNCTAD Secretariat to continue its activities across its three pillars of research and policy analysis, technical assistance and consensus-building to help African countries harness domestic and foreign investment as a means of catalysing structural transformation in their economies.

Mr. President,

The Group expresses its concerns that financial resources committed to Africa in 2017, total expenditure on national, regional and interregional projects in support of Africa stood at $15,887,439 which indicates the decline by 7.4 per cent form amount spent in Africa activities in 2016. In this regard the Group urges the Development partners to increase and sustain the support to UNCTAD activities.

The Group encourages UNCTAD Secretariat to continue its assistance to African countries to reduce the vulnerability of their economies due to commodity dependence, and to increase value addition of their economic activities from commodities, including agricultural goods by providing research-based policy recommendations, enhancing development linkages in the extractive sector and improving value addition in all agriculture products.

Stressing the importance of Debt Management and Financial Analysis System (DMFAS), we request the UNCTAD Secretariat to continue is support to African countries to strengthen their capacity to manage debt in an effective and sustainable way.

Mr. President,

Illicit financial flows are impacting developing countries, particularly in Africa. The Group welcomes UNCTAD work with the United Nations Economic Commission for Africa in defining, estimating and disseminating statistics on illicit financial flows in Africa, we call upon UNCTAD Secretariat to continue this endeavour and provide pragmatic solutions at all levels on illicit financial flows.

The Group appreciates the contribution of UNCTAD in its support to Africa in realizing its Agenda 2063 and the Sustainable Development Goals.

I thank you Mr. President.

Mr. President, H.E. Minister Paul Oquist (Nicaragua),
Ms. Isabelle Durant, Deputy Secretary-General of UNCTAD,
Mr. Richard Kozul-Wright, Director, Division on Globalization and Development Strategies, UNCTAD
Excellencies,
Distinguished panelists and participants,

Mr. President,

I have the honour to deliver this statement on behalf of the Group of 77 and China.

The second session of the Intergovernmental Group of Experts (IGE) on the Financing for Development is being held at a particularly critical juncture when developing countries are facing challenges of debt crises.
The Group appreciates valuable work done by the Secretariat in this important area. We also thank the Deputy-Secretary General of UNCTAD for her remarks. We would have benefitted from the presence of the Secretary-General and his insights into this important area of work.

Mr. President,

Total external debt stocks of developing countries are estimated to have reached USD 7.64 trillion in 2017, having grown at an average yearly rate of 8.5 percent between 2008 and 2017. In 2017, almost 14 per cent of developing country export revenue went into debt servicing, on average. These aggregate figures mask growing financial and debt distress in various regions, with some of the more worrying trends being:

• Forty per cent of Low-Income Developing Countries, or about twice as many as in 2013, are now at a high risk of debt distress. Moreover, ten of thirteen countries that have moved into the high-risk category since 2013 are in sub-Saharan Africa. For these countries, both the debt service to exports ratio and the debt service to government revenue ratio have more than tripled since 2011. These developments also reverse much of the achievements of the debt relief initiatives of the late 1990s and early 2000s, since they affect many of the countries in receipt of debt relief measures;
• Small Island Developing States (SIDS) have been particularly affected. The total external debt stocks of SIDS have more than doubled between 2008 and 2017 and average debt to GDP ratios deteriorated across the board, increasing from 28.3 percent in 2008 to 58.2 percent in 2017, with some SIDS facings debt to GDP ratios well above the 100 per cent mark. Average debt service to exports, external debt to export earnings and debt servicing costs as a ratio of government revenue have all more than doubled between 2008 and 2017. For example, debt now accounts for a staggering 163% of exports;
• Total debt stocks in emerging markets grew at an average rate of 9.5 per cent during 2008-2017, a percentage point above the growth rate of developing countries as a group. The relatively easy access of emerging market economies to international capital markets exposes them to a specific set of vulnerabilities, largely driven by non-financial corporate borrowing. From USD 629 billion in 2000, private sector gross debt, ballooned to USD 21.6 trillion by the end of 2016. As recent currency crises in several emerging markets highlight, these economies remain vulnerable to adverse investor sentiments and ‘sudden stops’ of private capital inflows as well as domestic capital flight responding to USD appreciations and policy decisions in advanced economies rather than real and firm specific factors of the domestic economies.

Mr. President,

We need to look at the main causes of developing country debt vulnerabilities:

• These developments have to be seen against the background of global debt-driven growth. According to UNCTAD estimates, the ratio of global debt to GDP in 2017 is nearly one third higher than in 2008. Global debt stocks rose from USD 168 trillion at the end of 2007 to USD 247 trillion at the end of the first quarter of 2018. This points to the core cause of developing country financial and debt crises at present. Their fast integration into international financial markets and their consequent high exposure to volatile cross-border private capital flows that are cheap in good times and expensive in more difficult times;
• The post-crisis period has not seen any progress in improving the management of private capital flows for purposes of longer-term productive investment and development. Not only are private cross-border capital flows today at least as volatile as in the 1990s, but they involve larger magnitudes and more pronounced reversals. Such reversals (or ‘sudden stops’) are increasingly driven by external and global factors, such as tightening financial conditions and USD appreciations, rather than by country-specific factors;
• At the same time, transfers, such as aid flows and remittances, have declined. In Low-Income Countries aid flows fell from 2.2 per cent of their GDP in 2013 to 1.8 percent in 2016, and remittances to these economies fell by 6 percent in dollar terms in 2016. More generally, we have to remember that these difficulties are occurring in the context of net negative resource flows from developing to developed countries since the 1980s, of over 16 trillion USD.

Mr. President,

We should consider these policy responses to address debt woes in developing countries:

• Borrowing, both by governments and private entities, is an important tool for financing investment critical to achieving sustainable development, as well as for covering short-term imbalances between revenues and expenditures. However, high debt burdens can impede growth and sustainable development. In the context of the 2030 Agenda, developing countries must balance these considerations as they endeavor to mobilize to harness the potential of external finance to support national development strategies while avoiding the risks of external and financial instability;
• In this context, considerations regarding debt sustainability play a prominent role in the Addis Ababa Action Agenda (AAAA) on Financing for Development. The AAAA recognizes the need to assist developing countries in attaining long-term debt sustainability, including through coordinated policies aimed at fostering adequate debt financing, debt relief, debt restructuring and supporting sound debt management;
• In the worrying global economic context described, this IGE tackles an issue of core importance to developing countries: How can their policy space be widened to allow them to use external debt financing as one of many sources of developmental finance rather than an unstable and high-risk burden that undermines their wider growth prospects?
• While initiatives to improve debt management capacities at home are very welcome and timely – and we look forward to their discussion – it is important to recognize that the cause of the current debt vulnerabilities in developing countries lies outside – in volatile international financial markets. It will therefore be important to also focus policy debate on this central cause, and on the fact that financial distress affects all developing countries, independently of their average income levels and stages of development: How can the international monetary and financial system be reformed to provide a more development-friendly environment?
• Discussion on debt sustainability have to be seen in the wider context of financing for development: Debt is only one financing tool, and the more reliable and substantive other financing mechanisms are, the less reliance on indebtedness is required.

Mr. President,

We look forward to a rich discussion on these important issues. We will come back with more inputs as we move along in our discussion on other substantive issues.

I thank you.