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Boosting Production, Crucial for Least Developed Countries, Post Pandemic – UNCTAD

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The world’s poorest countries will remain on the margins of the global economy if States are unable to boost economic production, and the international community fails to provide more support, the UN Conference on Trade and Development (UNCTAD) has warned.

UNCTAD’s Least Developed Countries Report 2021, released on Monday noted that their ability to respond to and recover from crises such as COVID-19, and to advance towards sustainable development, is dependent on increasing production capacities.

The UN agency called specifically for increased investment in State and productive capacities for the Least Developed Countries (LDCs) grouping.

“Today LDCs find themselves at a critical juncture,” said UNCTAD Secretary-General Rebeca Grynspan.

“They need decisive support from the international community to develop their productive capacities and institutional capabilities to face traditional and new challenges.”

UNCTAD defines productive capacities as “the productive resources, entrepreneurial capabilities and production linkages that together determine the capacity of a country to produce goods and services and enable it to grow and develop.”

Developing production allows the world’s LDCs to foster structural economic transformation, which will in turn help reduce poverty and accelerate progress towards the UN Sustainable Development Goals (SDGs).

The report warns that reaching SDGs will require massive investment and spending, which go well beyond LDCs’ own financial means.

The UN established the LDC category 50 years ago. The grouping of the world’s weakest economies has expanded from an initial 25 countries in 1971, peaking at 52 in 1991, and stands at 46 today, with only six countries progressing enough to no longer be considered an LDC.

Over the last two decades, only a handful of LDCs have displayed encouraging signs of structural transformation and meaningful productivity improvements, the report said.

LCDs recorded the worst growth performance in about three decades during 2020. The COVID-19 pandemic has dramatically highlighted their institutional, economic and social shortcomings, the report highlights.

LDCs’ limited resilience is reflected in their low COVID-19 vaccination rates, as only two per cent of their population have managed to get shots, compared with 41 per cent in developed countries.

Grynspan urged LDCs’ development partners to consider the special needs of the more than one billion living in these countries during UNCTAD’s upcoming conference in October, under the theme, From inequality and vulnerability, to prosperity for all.

The UNCTAD report describes LDCs’ financing needs as ‘daunting’, especially in relation to structural transformation targets.

For example, the report estimated that the average annual investment required to reach the 7 per cent growth target (SDG 8.1) is around US$ 462 billion, while the average annual investment requirements to end extreme poverty (SDG 1.1) in LDCs, is estimated at US$ 485 billion.

The average annual investment required to double the share of manufacturing in GDP (SDG 9.2) is estimated at over US$ 1 trillion.

To generate sufficient development finance, LDCs will need to strengthen their fiscal capacities, increase domestic resource mobilization and improve the effectiveness of public expenditures, the report said but warned that even this will not be enough.

“The international community has an essential role to play in supporting LDCs in their efforts to mobilize adequate financing for their sustainable development needs,” the report said.

According to UNCTAD’s analysis, most LDCs will need three to five or more years, to recover the level of GDP per capita they had in 2019.

Domestic efforts to recover need to be supported by a new generation of international support measures that are more closely aligned to LDCs’ needs and 21st-century realities, Paul Akinwumi, director of UNCTAD’s division for Africa and least developed countries, said.

“A purposeful industrial policy should be at the core of LDCs’ pursuit of green growth and structural transformation because these countries need to urgently diversify from their overdependence on primary commodities.”

Akinwumi added that increasing investment in state capacity and productive capacities must be at the heart of the next programme of action for these countries for the decade 2022 to 2031, to be adopted at the Fifth UN Conference on LDCs in January 2022.

He also urged LDC governments to adapt programmes negotiated at the international level to their unique national conditions and to resolve trade-offs when formulating their national developments plans (NAN)

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Senate Demands Compulsory Screening of Foreign Arrivals

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By Eze Okechukwu, Abuja

The Senate yesterday ordered mandatory health screening for every international passenger arriving Nigeria airports, seaports, land borders as Ebola resurfaces in the Democratic Republic of Congo with a scare case reported in the FCT.

The resolution followed an urgent motion by Senator Francis Fadahunsi, who warned that with Lassa fever already ravaging states, Nigeria cannot afford another outbreak.

“Protecting our entry points is far cheaper than managing Ebola,” Fadahunsi told the chamber.

Lawmakers insisted screening must be total and indiscriminate — no exemptions based on nationality or departure country because infected travellers can transit through safe-listed nations.

Senator Diket Plang raised the stakes further, demanding immediate funding for NCDC and Port Health Services, including release of withheld funds and emergency budget.

Senate President Godswill Akpabio said the Federal Government has started releasing Ebola response funds but ordered relevant committees to track every kobo.

“Ascertain whether the funds were released and judiciously utilised. Any outstanding debt must be released by the Finance Ministry without delay,” Akpabio directed.

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Dozens of Gold Prospectors Kill in Strikes on Egypt-Sudan Border

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At least 72 civilians who had been prospecting for gold in a border region of Sudan have been killed in air strikes, a regional rights group said.

Emergency Lawyers, based in the Sudanese capital, Khartoum, said jets targeted the so-called artisanal miners at a popular gold mining site on Saturday.

Neither the Egyptian government nor the de facto Sudanese authorities have so far commented.

Cairo has previously faced accusations of deadly strikes on gold prospectors as part of a crackdown on illicit activity along its southern border.

Emergency Lawyers noted the previous alleged attacks and said they represented not only a violation of Sudan’s sovereign territory but demonstrated the government’s lack of control over the region.

“The deliberate targeting of unarmed civilians violates international humanitarian law and the right to life,” it said in a statement on Sunday. “These acts may constitute war crimes.”

It noted that its death toll was provisional and could rise.

The Paris-based Sudan Tribune reported that the death toll could far exceed the number reported by Emergency Lawyers, citing a survivor of Saturday’s attack who said many more people had been injured.

Eyewitnesses said the attack began around 06:00 local time (04:00 GMT), with the aircraft firing more than five missiles directly at the miners’ camps, destroying them and excavation pits with people still inside, the newspaper wrote.

The Sudan Tribune reported claims in June that Egyptian forces had used drones and artillery to target artisanal mining sites in the same region, killing several, after sporadic incidents of Egyptian border guards of burning equipment, torching temporary shelters, and firing live ammunition to disperse mine workers.

Days later, Egypt’s border agency announced that it and the military had begun a sweeping security campaign along the border to foil illegal migration, drug smuggling and illegal mining.

At the same time, Sudan’s de facto leader announced an investigation into the alleged strikes, which were said to have killed dozens.

Gold lies at the core of the border tensions.

Sudan’s ongoing civil war has led to a surge in artisanal mining – and often risky practice conducted by civilians with rudimentary tools and without official permission – particularly in remote areas near its borders.

Gold-rich areas lie along porous borders in terrain historically associated with cross-border smuggling routes, with artisanally mined gold potentially feeding into those channels.

Egypt’s border force said in June that it had seized 86 tonnes of gold ore along with amateur prospecting equipment.

Artisanal mining has also reportedly continued in Sudan’s conflict zones and smuggled gold may be a source of income for armed insurgent groups.

This has raised concerns of illicit Sudanese gold undermining the legitimate Egyptian gold market.

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German Jets Arrives Italy for Multinational NATO Exercise

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Several German fighter jets will take part in the Northern Atlantic Treaty Organisation (NATO) annual nuclear defence exercise this week as troops from 17 countries take part in the Steadfast Noon drill.

The German Air Force said three Tornado jets will take part in the exercise hosted by Italy, which starts Tuesday and runs for about a week and a half.

The jets are normally stationed in Büchel in the German state of Rhineland-Palatinate.

NATO has not revealed the exercise scenario but said its scale would be comparable to last year’s drill, which involved around 2,000 personnel and more than 70 aircraft.

Last week, NATO’s head of nuclear policy, Nassima Barrows, said the exercise was designed to demonstrate the alliance’s readiness and ability to defend its territory.

No real nuclear weapons will be used, she added.

NATO said the exercise was not linked to current events or directed at any specific country.

Military experts say the drills, held regularly in October, include practising the safe transport of weapons from underground storage facilities to aircraft and mounting them on fighter jets.

Only practice bombs without real nuclear warheads are used during the drills.

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