UNCTAD 54th Session
Friday, 5 October 2007
Plenary meeting,
Item 5: Economic Development in Africa: Reclaiming Policy Space: Domestic Resource Mobilization and Development States


At the beginning on the session, M. Guy Alain Emmanuel Gose from Ivory Cost, appointed by the African group was elected as the Chairperson of the Sessional Committee II and Ms. Lee Xuan Lu first secretary of Permanente Mission of China appointed by the Asian group was elected as Vice-Chairperson.

The first comments came from Mr. Supachai, the Secretary General of UNCTAD, for general comments. He stated that the average of approximately 5,7 – 6% growth in Africa was episodic. And added that it wasn’t really due to the African progress but that the cancelling of the debts where playing an important role.

He pointed out other issues: ownership, assistance, support, project and comments from the UNCTAD to answer the real domestic needs of LDCs. Africa need to growth by 6 or 7 % per annum and that around 25% of the GDP should be dedicated to the TDP instead of 15% presently.

The financial assets are not in place to put the African savers in confidence. The Diaspora plays an important role in the Official Development Assistance. There is a need to strengthen the financial system. The micro credit institutions have contributed to the emergence of small and medium enterprises. UNCTAD should find a way to help this system and include it to the financial system.

How to encourage the migrant workers and the Diaspora to send back their foreign change? The money must be sent for more productive issues, for investment: Rwanda and Ghana are countries that succeed on it.

En concluded by stating that the developing countries must work on training education and be able to define good policies.



Mr. Habib Ouane, Director of the Division for Africa, Least Developed Countries and Special Programmes, then introduced the item 5.
If first comment was that since 2004 growth increased gradually and that it hadn’t been seen since the 1970 decade. The Sub-Saharan region is the only region that will certainly not reach the millennium goals of reducing the poverty by half by 2015 if it doesn’t annually increases it growth by 8% or more.

He stressed out that the African financial gap can not be filled only with international aid. There is a need for domestic resources which are not utilized and mobilized. Remittances in most African countries are higher than ODA flow.

General Statements:
Benin taking the floor on behalf of the LDCs argues that even thought the International aid has increased, it’s not sufficient and that Africa should receive the double. Without the international aid, Africa will not be able to attract foreign investors. He added that the distribution of this aid is not equilibrated: ten countries are receiving 40%. As for the remittances of the Diaspora, one should reduce the transaction costs.

Cuba talking on behalf of GRULAC, was very critic toward African countries and other LDCs stating that there is a lack of political will from the African leaders. He wonders how come they didn’t succeeded yet to reduced or even eradicate poverty in some areas.

On the contrary Russia believes that there is a need for new partnership with Africa.

European Union reminded his participation on the Ghana meeting of 2008 (UNCTAD 12) and that an African summit that take place in Lisboa.

Japan also informed that Tokyo will held a Conference on Development of Africa in may 2008.

According to USA UNDP should better coordinate their action and that there is a need to redouble the efforts.

China concluded the debate by saying that it signed assistance programs with 45 African countries, cancelled debts of 22, and have given 25 loans without rates. According to USA UNDP should better coordinate their action and that there is a need to redouble the efforts.

China concluded the debate by saying that it signed assistance programs with 45 African countries, cancelled debts of 22, and have given 25 loans without rates.

Ismaila Pedro FAYE