Summary of discussions
1. The discussion was chaired by H.E. Mr. Mohlabi Kenneth Tsekoa, Minister of Foreign Affairs of Lesotho. He recalled that to integrate themselves into the world economy, LDCs need to increase their competitiveness, and to that end it is essential to bridge the technology divide between developed countries and LDCs. Paradoxically, while modern technology is easily available, it is hardly accessible to LDCs. As a result, they remain disadvantaged in trade and manufac- turing, innovation and learning and agricultural production. This impedes their efforts to increase production, create jobs, generate wealth, achieve food securi- ty and eradicate poverty.
2. Mr. Charles Gore, Senior Economic Affairs Officer and Chief of Research and Policy Analysis in the Division for Africa, Least Developed Countries and Special Programmes in UNCTAD, presented the main conclusions of the issue paper ‘Globalization and the Least Developed Countries: Issues in Technology’. 3. In his presentation, Mr. Gore recalled the importance of building productive
capacities through capital accumulation and technological change. He empha- sized that globalization should involve innovative actions by the governments of both developed countries and emerging economies. These actions need to be driven by the private sector through the development of public-private partner- ship arrangements.
4. He added that while LDCs are being integrated into the global economy, they have a very low level of technological development. Structural adjustment pro- grammes, which most LCDs pursued so vigorously, have dismantled their indus- trial base. New directions are now needed to increase agricultural productivity, develop manufacturing industries and expand productive employment outside the agricultural sector.
5. To escape from the trap of poverty, these countries need new policies that could narrow the technology gap and increase the knowledge intensity of the econo- my. They need to increase their local value-added and competitiveness through the development of training, learning and knowledge. LDCs also need financial resources as well as know-how.
6. Finally, Mr. Gore mapped out some actions that LDCs can take to bridge the tech- nology gap, including the mainstreaming of science and technology in their national development policies. He underscored that they will require active poli- cies to promote industrial productivity and a green revolution. Actions of their development partners could include the increase of ODA for science and tech- nology development, the transfer of technology within TRIPS regimes and
addressing the issue of brain drain. He also emphasized the central role of South- South cooperation in technology learning and awareness.
7. During the discussion that followed Mr. Gore’s presentation, some participants mentioned that access to technology is part of the Programme of Action for the Least Developed Countries for the Decade 2001-2010. Acquisition, transfer, dif- fusion and development of technologies could boost economic growth and ensure sustainable development in these countries.
8. Other participants noted that while access to new and emerging technologies is important, technology should also be appropriate to the levels of development of LDCs. Participants stated that the transfer of technology should avoid the ‘one size fits all’ approach and include both agricultural and non-agricultural technol- ogy. Some participants argued that to be competitive in the tradable sector, least developed countries do not only need modern but also state-of-the-art technol- ogy. Others underscored the importance of the absorptive capabilities of LDCs for successful technology transfer as well as the need for blending cutting-edge technology with indigenous knowledge.
9. The affordability of technology in view of the financial constraints faced by LDCs was identified as the most important aspect of technology diffusion to these countries. In this regard, the critical role of ODA for science and technology development was underscored in a number of interventions. The importance of mobilizing domestic resources was also emphasized. Participants recognized that LDCs themselves are responsible for their development and should identify their own needs, increase their budget allocation for research and development and use their own materials. They must assume full ownership and take the lead role in turning ICT into a vital development tool.
10. Participants further stated that since LDCs were primarily dependant on labour intensive technology, the use of modern technology negatively affects their unemployment levels. Therefore, employment should be carefully taken into account while formulating technology policy development in LDCs. It is impera- tive to look for alternative sources of employment for people when adopting new technology. In this regard, some participants referred to the experience of some developing countries that were successful in introducing new sectors that had absorbed labour freed by technology diffusion.
11. All participants agreed that learning and education underpin any technology transfer. In this regard, LDCs need to develop core competencies and technolog- ical capabilities. Investing in people is necessary to develop the capacity to use transferred technology. Infrastructure and capacity development are a sine qua non for access to new information and communication technologies.
12. Participants expressed their concern about brain drain, which impedes the efficient use of technology in LDCs. They suggested that science and technology should be used both to prevent brain drain and to ensure the effective replace- ment of emigrants. ODA for education and training was also mentioned as a potential leverage in the fight against brain drain in LDCs.
13. Participants were unanimous in their view that LDCs need balanced IPR systems. The representative of the World Intellectual Property Organization informed the Conference about technology centres to be established in each of the least developed countries. The first centre in Dar es Salaam, Tanzania, is already functional. Three new centres will open in 2007 in Bangladesh, Cambodia and Ethiopia. These centres aim at stimulating technological, industrial and economic development, providing advisory services and promoting the use of technological infrastructure to R&D as well as business communities.
14. Some delegations argued that LDCs needed full flexibility in TRIPS.
15. Participants recognized that South-South, North-South and triangular coopera- tion plays a central role in technology transfer. Interregional cooperation, like the Africa-Asia partnership, is also a good vehicle for transferring affordable tech- nology. Cooperation between LDCs and emerging economies should also be further strengthened and nurtured.
16. Turkey was cited as exemplary in promoting South-South cooperation and all participants thanked this country for taking the initiative to organize the confer- ence on ‘Making Globalization Work for the Least Developed Countries’. They said such initiatives should be further encouraged.