U.S. Statement at UNCTAD’s 53rd Trade and Development Board

Delivered by Lisa M. Carle
Counselor for Economic and Science Affairs

U.S. Mission, Geneva
September 27, 2006

Mr. Chairman, on behalf of the United States’ Government, let me congratulate you on your appointment and assure you that my delegation will do all it can to help you bring this meeting to a successful conclusion.  I would also like to thank Dr. Supachai for his remarks and recognize the hard work and dedication of UNCTAD’s staff in preparing for this gathering.

Mr. Chairman, the 53rd Trade and Development Board begins its work as the UN system is undergoing a difficult but necessary process of reform to deal effectively with a global context that has changed radically in the 42 years since UNCTAD was established.

Faced with both the opportunities and challenges of globalization, member states debate how UNCTAD can best promote development and help build the productive capacities that developing countries need to achieve economic growth and eradicate poverty. 

As we do so, we need to recognize that today’s global economy is driven by private finance and trade.  Attaining the Millenium Development Goals requires empowering developing countries to harness these resources to achieve sustainable progress.  As the United Nations’ focal point for trade and development, we all acknowledge that UNCTAD has a leading role to play.  We also all acknowledge that it has fallen short of our hopes.  Where we differ is in defining our expectations and in our answer to the question of how UNCTAD can best play its role.

To succeed, the United States believes that UNCTAD must clearly identify and develop its comparative advantages relative to other agencies in the UN’s integrated development framework.  Beyond trade and development, UNCTAD has recognized expertise in such areas as Aid-for-Trade, investment for development, and South-South cooperation, to name a few.

UNCTAD must then establish mechanisms for developing coherent policy advice and technical assistance based on sound empirical research, rigorous and objective analytical review, and the best practices among emerging economies, recognizing that there are no one-size fits all recipes for development.   

Country ownership, capacity-building, just and inclusive governance, effective institutions and rule of law, open markets, trade and productive investment, environmental sustainability and mobilization of financial resources must all be part of the mix.

UNCTAD needs to focus on practical and proven solutions for overcoming barriers to business formation, growth and competition, and creating regulatory environments that empower entrepreneurs and unleash the private sector as a driver of development.

Unfortunately, two recent UNCTAD publications, the 2006 Trade & Development Report, and the Report on Economic Development in Africa, fall short of the standards I have just outlined. 

The United States is particularly concerned that the Trade & Development Report appears to advocate historically failed policies and ignores or draws the wrong conclusions from the overwhelming evidence of record economic growth and the concomitant prosperity gains in emerging economic giants such as China, India, and Brazil.  That much remains to be done is clear, but it is equally clear that these and other countries achieved progress only after implementing policies to unleash their private sectors.

On the positive side, UNCTAD's recent Less Developed Countries Report provided useful analysis, and we look forward to discussing it and the other reports later during this meeting.

In conclusion, let me be clear:  the United States remains committed to working constructively to enhance UNCTAD’s development role and impact.  We will engage fully and positively to help UNCTAD fulfill its potential as a catalyst for achieving global prosperity. 

Thank you, Mr. Chairman.