By Chernor Alimamy Kamara
President Julius Maada Bio has called on partners from the Global North and South to support the Least Developed Countries' (LDCs) quest for structural transformation by promoting Infrastructure development, technology transfer, and foreign investment.
He made the call at the high-level thematic Round Table 3 on structural transformation in LDCs in Doha, Qatar on the 6th March, 2023.
He also called for the promotion of ease of trade and transit and to enhance productive capacity development which he said will lead to lasting dividends not only for LDCs but the entire world.
President Bio who was serving as Co-chair of the segment explained the ‘unfortunate realities’ for most economies of LDCs such as low productivity and low growth figures, high debt distress, and high inflationary pressures. He also mentioned price hikes, food and energy insecurity, weak and subdued levels of investment especially in infrastructure, and low levels of human capital development, as the other ‘unfortunate realities’ facing those countries.
He spoke about the recent global headwinds and downturns, occasioned by the lingering impact of the COVID-19 pandemic and the geopolitical crisis in Europe that has had adverse consequences on Food, Fuel, and Finance in the economies of least developed economies.
He also said that supply chain disruptions, limited development, investment finance, and the tightening of monetary policies in advanced economies, have all put a further squeeze on the economies of these countries.
“These have all been deeply destabilizing and undermined the peace and stability of the economies and societies of LDCs. Of course, we cannot afford massive economic stimuli for regenerating our economies,” Bio said.
With an abundance of extractive and natural resources, arable land, and youthful populations, the President challenged economies of these countries to do more to overcome such volatility and transform their economies.
He emphasized that the countries have lagged behind in agricultural sector output, value-addition and manufacturing, innovation, and the digital economy, with the service sectors having all remained relatively undeveloped.
President Bio said countries should generate new models of development and new pathways to prosperity that are more sustainable, and resilient that can set an irreversible pathway to middle-income status. He also stressed the concrete steps that will help LDCs transition from poverty and low productivity to prosperity.
The President stated that as the world veers from one crisis to another and global economic challenges stiffen, structural transformation in poorer countries would require the full support of all stakeholders and partners.
He said while the primary responsibility to adopt policies and strategies that are supportive of structural transformation is with the LDCs themselves, development partners have an equally important role to play.
The round table focused on the theme “Structural transformation as a driver of prosperity in the Least Developed Countries.”
Copyright © 2023 Politico (09/03/23)
