DOCUMENTS/ARTICLES

Perspectives on the LDC III: Kathmandu Declaration

Forty participants from seven of Asia's nine least developed countries (LDCs) met in Kathmandu Nepal 26 and 27 March 2001 to share views and identify key issues in preparation for the upcoming LDC III conference in May.

Nothwithstanding the inter-relatedness and complexity of the issues, we identified four areas of common concern:

Finance & the Market

Debt: There should be immediate debt cancellation for least developed countries on the basis that debt and debt servicing is inhuman, illegitimate and irresponsible.

Foreign direct investment: LDCs policies and programmes for foreign direct investments and borrowings should be based on a clear goal and framework for developing domestic productive capacities. LDCs do need certain types of foreign direct investment, however this FDI should be complementary to their development priorities. It should enhance local productive capacities and domestic markets, should create employment and incomes, and have positive links to local enterprises and consumers. It should comply with binding environmental standards and guarantee training and technology transfer.

LDCs should cooperate to establish frameworks for investment regulation, especially to avoid excessive and damaging competition between LDCs.

Markets: Trade liberalisation and free market policies should benefit and protect the interests of the peoples of LDCs. Openness of markets should not be confined only to capital, but there should be freer flows of information, technology and people.

Capital markets must be regulated to reduce volatility and to protect vulnerable economies. Currency transaction taxes can be used to reduce volatility and to raise revenue for development need.

Governance & Political Structures

Governments must ensure transparency, accountability and participation of the people in managing state affairs including public expenditures and negotiating with donors. Governments must facilitate processes, which allow active participation of the grassroots communities in all stages of decision making.

Political structures must allow the involvement of the vulnerable sectors of society, particularly women, minorities and poor people.

Mass media should reflect the lives and the aspirations of the people and must not be monopolised and abused by the ruling oligarchy.

Access to & control of natural resources

Since the majority of people in least developed countries depend on natural resources for the livelihood, appropriate policies should be formulated and implemented to ensure equitable access to and control over natural resources, including land, forests and water. Strict policy guidelines should be enforced for the protection and management of the environment and bio-diversity. In this context, traditional wisdom should be integrated with modern scientific knowledge for development of the productive capacity. Nonetheless we strongly reject the patenting and private ownership of all life forms.

Global warming is a life-threat to many LDCs and we demand immediate steps be taken to curb greenhouse gas production in the industrialised countries of the North.

People's empowerment

Development of people's capacities is a precondition for empowerment. This can only be ensured by increased investment in and universal access to education, health and physical infrastructure.

All forms of discrimination and all discriminatory laws must be abolished. In particular the marginalisation of women and the socially oppressed classes must end and their participation in all aspects of social, political, economic and cultural life must be promoted. This means positively creating new opportunities for the disadvantaged sectors of society.

People to people contact

Finally, we have valued greatly the opportunity provided by this meeting to meet each other, to share our experiences and to develop a common view on some issues. We believe that deepening and broadening the people to people contact between least developed countries in the region will help our efforts to achieve economic and political democracy and human development in our countries.

Kathmandu, 27 March 2001