Private sector can boost growth in landlocked developing countries – senior UN official

In his opening remarks to the Business and Investment Forum, Secretary-General of the Conference, Gyan Chandra Acharya, said that the exchange between business and governments is “critical for partnerships and strategies to ensure a proper role for the private sector in the overall sustainable development of LLDCs.”

The day-long forum is an integral part of the Second UN Conference on LLDCs and brings together business leaders, government officials from landlocked countries and transit countries, as well as development partners.

It is important that the discussion consider the emerging post-2015 development agenda and the role that the private sector can play in successfully implementing the anticipated sustainable development goals, added  Acharya, who is also the UN High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States.

Also speaking at the event, Ole Hansen, head of UN Global Compact LEAD noted, “Many LLDCs face unique and significant economic, environmental and social challenges. The long distances from world markets and absence of ocean ports literally take a toll on growth, on tax revenues and on standards of living.”

On average landlocked developing countries are some 1,370 kilometres from the nearest seaport – which is vast when compared to industrialized economies, such as those in Europe, which on average, are some 170 kilometres away from the nearest port. The reality is that the lack of access to the sea means that it is costlier for LLDCs to do business than it is for their maritime neighbours.

In her remarks the Permanent Representative of the International Chamber of Commerce to the United Nations, Louise Kantrow highlighted that, “Over the last decade, it has come to be understood that it is important for the private sector to be engaged in the early stages of policy development and partnerships [and] also for the dynamic role that it can play in transforming societies and being a driver of economic growth in LLDCs.”

During an open exchange of views, John Sullivan from the Centre for International Enterprise highlighted the need for an enabling business environment, where the registration of companies and intellectual property rights was simplified. Panelists also collectively emphasized the need to support small and medium enterprises and to view entrepreneurial set ups as key to the sustainable growth of the LLDCs.

Over 15 members of landlocked and transit countries were surveyed in the lead-up to the Conference to identify concrete proposals for how the private sector can effectively work with LLDCs.

Recommendations from this group have made up a committee survey to inform the intergovernmental deliberations on areas such as infrastructure, international trade, technological innovation and constraints on access to capital.