UNCTAD – 72nd Trade and Development Board Item 6 – UNCTAD contribution to the implementation of the Doha Programme of Action for the Least Developed Countries.

Mr. President,

My Delegation would like to thank UNCTAD for providing an update on its contribution to the implementation of the Doha Programme of Action (DPoA) for the Least Developed Countries (LDCs).

Three years after the Programme of Action was adopted, longstanding obstacles to development - including insufficient structural transformation, export diversification and critical infrastructures - have recently been further compounded by growing levels of debt, trade tensions and a decline in official development assistance and foreign direct investment. Allow me to highlight a few figures that illustrate the challenges faced by these countries.

The 44 LDCs represent around 20 percent of the international community and comprise 15 percent of the global population. However, they account for less than two percent of global gross domestic product (GDP) and around one percent of world trade. It is worrying that growth in the LDCs is expected to slow to 4.1 percent in 2025, which is far below the 7 percent target set out in the DPoA.

Official development assistance (ODA) has decreased by $6 billion in just five years. It is concerning that estimates suggest a further 20 percent decline in ODA. The wide informal sector shrinks the taxable base internally, limiting the ability to fund essential services and increasing dependence on external borrowing. Meanwhile, mounting debt servicing costs have compelled approximately half of the LDCs to allocate more funds to interest than to health and education.

Moreover, the challenges faced by LDCs continue after graduation. None of the three LDCs that have recently fulfilled the graduation criteria have met the GNI/Capita threshold.

The reality of LDCs cannot be reduced to figures alone. These challenges hinder the quest for the integral human development of 1.3 billion people worlwide. As Pope Leo reminded us, “helping the poor is a matter of justice before a question of charity.”[1]

Furthermore, Pope Leo XIV inisists that “If we acknowledge that all human beings have the same dignity, independent of their place of birth, the immense differences existing between countries and regions must not be ignored.”[2]

Overcoming these challenges and setting the LDCs on a sustained path towards development will require continued support from the international community based on the LDCs’ actual needs and requests, as well as strengthened domestic efforts to mobilize revenues and improve public financial management. In this regard, we positively note the timely operationalization of a dedicated UNCTAD Graduation Support Programme and encourage its implementation.[3] As Pope Leo stressed,  “What the poorest countries hope for is that their voices will be heard without filters, that their needs will be truly understood and that they will be offered an opportunity, so that they can be considered when it comes to solving their real problems.”[4]

Thank you.