STATEMENT BY CHAIR AND SPOKESPERSON OF LDC-IV CIVIL SOCIETY FORUM DR ARJUN KARKI AT THE INDIA-LDC MINISTERIAL MEETING “HARNESSING THE POSITIVE CONTRIBUTION OF SOUTH-SOUTH CO-OPERATION FOR LEAST DEVELOPED COUNTRIES’ DEVELOPMENT”

18-19 February 2011, New Delhi

Mr Chairman, Honourable Ministers, LDC-IV Secretary General Mr Diarra,

Excellencies, ladies and gentlemen,

Thank you for allowing me to speak on behalf of the LDC-IV Civil Society Steering Committee at this important Pre-Conference Ministerial meeting focusing on South-South co-operation for LDCs.

We are all aware that for over 30 years, since the Buenos Aires Plan of Action was adopted back in 1978, South-South Co-operation has been part of the United Nations’ strategy for advancing regional development agendas in the South. And, we have also witnessed that in the context of the most vulnerable development bloc – the LDCs – within the global South, the vision of sustainable development that should follow is still elusive in terms of a just and an equitable world. We recognise South-South Co-operation as integral to the advancement of LDCs and therefore, as we move ahead we should seek to rectify the weaknesses and blunders that mirror the traditional North-South co-operation. The upcoming LDC-IV conference gives us an opportunity to revisit and redefine a progressive South-South Cooperation, highlighting creative and substantive evidences of South-South development solutions, and thus forging innovative and inclusive partnerships for LDCs’ development. We must agree to a new framework for South-South Co-operation that is based on the principles of solidarity, justice and equity towards human development and human dignity.

Having faced various constraints in their own development programs by the imposition of rigid conditionalities and the use of tied aid by development partner countries and international financial institutions, the LDCs need enhanced just and equitable development co-operation from the emerging economies of the global South. If the richer and fast growing partner countries of the South do not extend an alternative development co-operation in light of the most vulnerable and poorest populations in their own very region, then this would be most unfortunate for the LDCs – both, in terms of the principle of partnership for development as well as still untapped mutual interest for development .

We call for total commitment to and the full implementation of the Paris Declaration (PD) and the Accra Agenda for Action (AAA) also in the context of South-South Co-operation. This is also crucial in light of the Fourth High Level Forum on Aid Effectiveness 2011 to be held in Busan, Korea in November 2011. The use of country systems and country ownership of all development programs is equally relevant to South-South Co-operation and must be respected and implemented. Lack of predictability of incoming aid has made it difficult for LDC governments to plan effectively for the long run so a longer term aid commitment of at least 10 years would effectively address the issue. We call for better aid for development effectiveness!

The global financial crisis has shaken the economic foundations of the North and has now become an excuse to renege on their promises of aid equaling 0.7 per cent of their GNI to developing countries and 0.2 per cent to LDCs. South-South Co-operation cannot be a replacement to traditional North-South development co-operation, only a complement to it! Having said this, it is nonetheless the right time to explore how greater South-South cooperation can help LDCs to cope with the existing multiple crises of food prices, energy, debt and climate change; these again being burdened on them with no contribution of their own.

It is quite unfortunate to see developing countries still limiting market access to LDC products. All non-tariff trade barriers need to be removed for LDCs, the sanitary and phyto-sanitary requirements handicap LDC trade. It is imperative to immediately implement duty-free quota-free market access (DFQFMA) to LDCs. The gains from trade between LDCs and their developing neighbors of the global South can outweigh the amount of aid LDCs receive from the Northern development partner countries. This would not only result in a win-win situation for all the countries of the South but also free the LDCs from the chains of foreign debt, strengthening their sovereignty towards implementing a pro-poor sustainable development agenda that is often compromised by the dominant forces of globalisation.

Last but not the least; we appreciate the political will of the Government of India for committing to the immediate follow-up and implementation of the upcoming Istanbul Programme of Action and in this regard, we urge other member states to take similar initiatives soon. LDCs are suffering from the burden of debt crisis and debt servicing which often takes precedence over public expenditure. Therefore, LDC support must be extended in the form of untied grants NOT loans so that LDCs may be able to invest their resources instead in providing essential services to their people.

South-South Co-operation today will therefore have to be seen with a new vision and commitment for the upliftment of LDCs in the real sense - with an integrated alternative development approach grounded on the twin LDC-specific issues of vulnerability and poverty, thus leading the coming decade towards a world without LDCs!

Thank you.