India seeks workable models for helping LDCs

New York, September 19 :

India wants international organisations to provide replicable models to help the world’s 50 poorest and most vulnerable countries build national capacity for domestic resource mobilisation to reduce poverty.

“The key to achieving sustained economic growth in the Least Developed Countries (LDCs) is developing productive capacities,” said India’s Minister of State for External Affairs Anand Sharma Monday at the United Nations General Assembly’s high-level meeting on these nations.

“For this, the development partners need to move vigorously in supporting the efforts of LDCs,” said Sharma, head of the Indian delegation, at the meeting, reviewing progress on an agreement forged five years ago in Brussels aimed at assisting the LDCs.

The issue of debt is a critical one for many LDCs, he said. India welcomed the Multilateral Debt Relief initiative (MDRI) and looked forward to the G-8’s political intentions being fully converted into unqualified commitment.

India has demonstrated its commitment to help LDCs in reducing their external debt burden by writing off the debt owed by seven Highly Indebted Poor Countries (HIPCs.

Debt relief through HIPC initiative or MDRI alone is not sufficient unless accompanied with efforts to improve debt management capacity and a proactive approach to assist achieve higher growth, enhanced exports performance and revenue mobilization through better market access and enhanced trade related opportunities, Sharma said.

The launching of the third round of negotiations for the Global System of Trade Preferences holds promise in terms of immensely benefiting both LDCs and other developing countries.