Statement by
Mr. Djauhari Oratmangun
Indonesian Delegation
before
the Ministerial High-Level Segment of ECOSOC

on

“Resource Mobilization and Enabling Environment for Poverty Eradication in the Context of the Implementation of the Program of Action of LDCs
for the Decade 2001-1010”

New York, 29 June 2004

Madame President,
Honorable Ministers,
And distinguish delegates,

My delegation is pleased to address 2004 ECOSOC’s High-level Segment on mobilizing resources and creating an enabling environment in the context of the implementation of the Brussels Programme of Action, specifically formulated to allow the Least Developed Countries to progress during the decade 2001-2010. I would first of all like to associate myself with the statement made by H.E. Mr. Ahmad Bin Al-Mahmoud, Minister of State for Foreign Affairs of Qatar, this morning, on behalf of the Group of 77 and China.

Madame President,

The Brussels Program of Action (BPoA) is a strategic mechanism that comprehensively addresses the key development concerns and goals of the LDCs. While welcoming the progress made in its implementation, with the current negative trends, it seems unlikely that most of LDCs will achieve the goals and objectives set out in the PoA, especially the overarching objectives of eradicating poverty and hunger, as well as the achievement of MDGs by 2015. It is therefore important that this meeting enable us to review the progress made, the challenges and obstacles faced since 2001 after the solemn adoption of the BPoA. The result of this meeting should contribute meaningfully to the creation of an enabling environment at the domestic and international levels for LDCs to achieve the objectives of BPoA. Hence, real practical solutions to problems of resources mobilization are therefore needed.

Madame President,

Indonesia is of the view that the international community should continue to spare efforts and genuine partnerships to deal with important issues affecting developing countries as a whole, namely matters pertaining to trade, ODA and external debt problems. These issues are of critical importance to enable developing countries, especially LDCs to eradicate poverty and hunger as well as to continue their pursuit of sustained economic growth and sustainable development. It is therefore my delegation’s suggestion that addressing financing for development for LDCs should begin with a comprehensive strategy to resolve trade issues, ODA and external debts. As well, the partnership framework for actions as spelled out in BPoA should be honored and implemented.

Let me first of all address trade matters. While acknowledging trade as the engine to finance development, many LDCs are facing volatility in export revenues for their commodities, caused mainly by excessive instability in primary commodity prices. Solutions for commodity-dependent LDCs need to be tackled and, to this end, reform of the global trading system is critical to ensure commodities from developing countries, including from LDCs, have freer and predictable access to developed markets. In the same vein, export diversification becomes increasingly more important for LDCs if they are to enhance export revenues and financial resources. The capacity building program through technology transfer, including in the field of agriculture and processing industry, are also required. My delegation has been consistently supportive of the creation of a universal, ruled-based, open, non-discriminatory and equitable multilateral trading system, as well as meaningful trade liberalization. It is also imperative to place the needs and interest of developing countries at the heart of the Doha Work Programme and increase commitment to its implementation.

On the issue of ODA, my delegation is of the opinion that ODA still plays an important role as a major source of external financing. This is particularly true for countries unable to attract private direct investment and FDI like LDCs. Credible and predictable medium and long-term ODA commitments to recipient countries are indispensable. After declining over the years, there has been a reversal in the quantity of ODA made available in the last three years. However, total net official flows declined and additional disbursements have been concentrated in a few LDCs. In this connection, my delegation strongly urges reform of aid delivery mechanisms, including institutional capacity building for aid management, and aid effectiveness including through greater policy coherence and coordination at all levels.

Let me now move on to the issue of external debt. Debt relief and grant elements of ODA for LDCs should become major priority for development partners. If, for instance, revenue from trade has to be used to service loans LDCs will not experience progress but will stagnate economically. The two must go hand in hand, increased revenues from international trade coupled with meaningful relief from debt. In effect, what should be avoided is new debt being added to old debt. The new debts should be used for revenue-producing investments and not merely adding to the burdens of those countries that have access to such loans because that certainly is not the way out of the debt trap, which has impoverished and continues to impoverish many nations, particularly the LDCs.

Madame President,

While emphasizing the three areas mentioned above, my delegation is supportive of the continued work of ECOSOC in assisting countries emerging from conflict, as shown by its Ad Hoc Advisory Groups in Burundi and Guinea-Bissau. We believe that special assistance should be allocated to assist LDCs emerging from conflict in their development, and we are encouraged by the work of ECOSOC in this regard. Hence, cooperation and coordination in mobilizing financing to those countries should be further developed.

Finally, my delegation underlines the need for an enabling international environment, one that can be positively impacted by South-South cooperation. Indonesia believes that through such cooperation developing countries can, in a spirit of collaboration, work together to safeguard and pursue their common development interests through sharing lessons learned and best practices utilized in the developing South. The Monterrey Consensus advocated such collaboration through triangular cooperation, because South-South cooperation cannot take place without the necessary resources.

Two weeks ago, during UNCTAD XI in Sao Paolo, the Group of 77 celebrated its 40th Anniversary. It was emphasized that developing countries need to maintain their solidarity and further pursue South-South cooperation as an effective complement to the North-South dialog. My delegation would like to underline the significance of the third round of the GSTP program that was launched during UNCTAD XI, and hopes that developing countries, especially LDCs could reap benefits offered by South-South trade.

Madame President,
In short, my delegation would like to lend its unstinting support to the just cause of the LDCs. As part of its contribution to LDCs within the framework of South-South cooperation, in 2005, Indonesia will hold the Golden Jubilee Summit of the Asia-Africa Conference of 1955. In conjunction with this commemoration, it is expected that the New Strategic Partnership between Asia and Africa will be launched. Concrete programs are currently being developed through Asia-Africa Sub-Regional Conference (AASROC), among others, in agriculture, human resources development, infrastructure development, transportation and information and communication technology. This partnership will not only further invigorate South-South cooperation but is also expected to contribute to the development of LDCs in Asia and Africa.

Thank you