Developing countries lacking in infrastructure and skills will not benefit from economic globalization regardless of open market access, a United Nations trade official said Wednesday.
Speaking in Geneva, the Secretary-General of United Nations Conference on Trade and Development, Supachai Panitchpakdi emphasized the need for richer countries to increase aid and investment in developing countries. â€œUNCTAD, development, and the way forwardâ€ was the topic he discussed.
â€œOnly investment in the productive sector will create employment, increase household income and reduce poverty over the long term,â€ he said, citing especially the worldâ€™s 50 least developed countries (LDCs)â€, said Panitchpakdi, the former WTO Director â€“General.
LDCs are countries which according to the UN have the lowest indicators of socio-economic development and the lowest Human Development Index ratings worldwide. Out of the 50 countries considered to be LCD, 34 of them are in Africa.
These countries â€œsimply lack the capacityâ€ to benefit from globalization, Supachai commented. They do not have â€œthe ability to produce goods and services, the knowledge needed to create a broad industrial base and the infrastructure that enables countries to trade and communicate.â€