Nepal, Bangladesh, Lao call for continued int’l support

DPM Shrestha seeks adequate resources through climate finance mechanisms

Kathmandu, Mar. 5

Three countries graduating from the  status of Least Developed Country (LDC) to ‘developing’ ones in 2026 have called upon the international community and development partners for the continued partnership, cooperation and support to formulate and implement strategies in creating strategies in reducing digital divide and promoting international trade and foreign investment during and beyond graduation.

They also called for support in fostering structural transformation and improving competitiveness of domestic producers, read a joint statement issued by Bangladesh, Nepal and Lao PDR after a conference organised as a part of the side event on the margins of the Fifth United Nations Conference on Least Developed Countries (LDC5) which is going on in Doha of Qatar.

“We call for the continuation of international support measures beyond graduation, for which a formal submission has been made to the World Trade Organisation (WTO) for consideration, including preferential market access and TRIPS waivers, particularly for pharmaceutical products for combating public health-related challenges and pandemics,” read the joint statement.

The joint statement was issued after a discussion on ‘Sustainable and smooth transition for the graduating Cohort of 2021’.

 The three countries – Bangladesh and Nepal from South Asia and Lao PDR from East Asia – are graduating to the ‘developing’ status in 2026 and are busy in devising strategies to be adopted following their upgrading. They will lose the benefits in trade and development provided by the developing countries in Europe, America and elsewhere.

According to the Ministry of Industry, Commerce and Supplies of Nepal, the government has finished the draft of the post-graduation strategy while the ministry is also busy negotiating with the European Union and United States of America to sustain the facilities they have been providing to Nepal now.

The joint statement also called for post-graduation extension of the waivers in the regional and sub-regional trade agreements and other support measures provided to the graduated LDCs. 

The ‘club’ of graduating countries sought support for the mobilisation of international support to promote export diversification both in terms of commodities and markets, and advocate for necessary help for recently graduated countries including through the WTO processes.

They called upon the international community and development partners for providing easy flexible access to climate mitigation and adaptation finance on a concessional basis, including in the context of loss and damage, and continuation of technology transfer to the LDCs after their graduation, as emphasised through the Conference of the Parties (CoP) process.

Other supports the graduating LDCs are seeking include the areas of data and infrastructure, modernisation of tax administration, attaining the SDGs, and remittance and micro, small and medium enterprises.

According to the joint statement, the three countries are confident that the global economic recovery will enable the LDCs to attain at least 7 per cent Gross Domestic Product (GDP) growth rate a year in line with the 2030 agenda.

“Maintaining the progress throughout the transition, and ensuring that the graduation is sustainable and irreversible, requires continued and concerted support measures from the international community and development partners along with our collective endeavor and commitment to implementation of the Doha Programme of Action,” read the statement.

They also expressed their commitment to utilising the existing or new inclusive consultative mechanisms to ensure that the transition is smooth, sustainable and engages a wide spectrum of voices across our respective countries.

Meanwhile, Narayan Kaji Shrestha, Deputy Prime Minister and Minister of Physical Infrastructure and Transport, addressed the LDC5 on Summit of Least Developed Countries organised by the LDC Chair Malawi in Doha on Saturday.

In his address, he emphasised on enhancing productivity, creating stronger industries, and a diversified export base for the structural economic transformation of LDCs, without which they could not meet their development goals, the Permanent Mission of Nepal to the United Nations in New York informed in a statement on Sunday morning.

“Our economies are facing the onslaught of mega global crises, such as the pandemic, conflicts, and climate disasters,” he said and urged the development partners to scale up ODA, investment, and technology transfer to the LDCs.

Adding that the LDCs are the worst victims of the climate crisis, he called for urgently mobilising adequate resources through climate finance mechanisms in the areas of adaptation, mitigation, and loss and damage with simplified access to LDCs.

According to the Mission, DPM Shrestha also highlighted that Nepal was implementing a transition strategies for smooth and irreversible graduation from the LDC status and expressed commitment to making all-out efforts for the effective implementation of the Doha Programme of Action.

On the sidelines on Saturday, the DPM had a meeting with the Secretary-General of the United Nations Antonio Guterres. The discussion was focused on strengthening cooperation between Nepal and the United Nations including in the areas of UN peace operations.

Later in the afternoon, the DPM Shrestha also attended the interaction program with Nepali diaspora organised by Non-Resident Nepali Association and Nepali community organisations. He underscored the role of NRNs in Nepal's socio-economic development largely in the sectors of investment, culture and tourism promotion, and urged them to contribute to Nepal’s development efforts.

Published in The Rising Nepal daily on 6 March 2023.