The current global food crisis will impact most in the world’s poorest countries civil society leaders said in Accra today. “Increases in global food prices are hitting people hard in the Least Developed Countries ” Demba Moussa Dembele, Board member of LDC Watch told a meeting organised by LDC Watch on the opening day of UN Conference on Trade and Development (UNCTAD).”Riots have taken place in many least developed countries, including my own country Senegal, showing the feelings of ordinary people. This unrest only adds to the existing vulnerability of these countries” he added. The meeting, organised with the collaboration of UNCTAD and the UN’s Office of the High Representative for LDCs, LLDCs and SIDS (UN-OHRILLS), was addressing the continued vulnerability of LDCs. Hosted by Ghana, the UNCTAD XII conference entitled “Making Globalisation Work for Development” is seeking to identify opportunities of globalisation for developing countries. However as the civil society meeting heard current international policies are not addressing the systemic problems facing LDCs. Mr. Habib Ouane, Director of UNCTAD’s Division for Africa, Least Developed Countries and Special Programmes told the meeting that over the past two decades LDCs have experienced economic growth, averaging at an annual rate of 7%. However for most LDCs this has not led to increases in employment or to a reduction in poverty. Systemic instability remains and since most LDCs are net importers of food, increased prices are exacerbating this instability. Mr. Ouane said that the current development paradigm is driven by structural adjustment policies and poverty reduction strategy papers. These give primacy to implement macro economic approaches and must be changed. More focus must be given to the promotion of production and generation of employment, Mr. Ouane said. He hoped that the UNCTAD conference would emphasis this in its outcome. He also said that it should be seen as the start of the process of reviewing the UN’s current Programme of Action for LDCs adopted in 2001, and the preparations for the next major conference on LDCs scheduled for 2011. Mrs. Zamira Eshmambetova representing the UN’s High Representative responsible for LDCs said that LDCs continues to face critical challenges. Social disparity between rural and urban communities has deepened. Agricultural production has declined. And early progress on providing clean water and sanitation has stopped and even begun to be reversed. She said that civil society has a critical role to play in advocating better policies and practices and in monitoring the implementation of agreed actions. Aid for LDCs might have increased but still remains well below the target of 0.15% of donor country GNP. Foreign direct investment is concentrated in countries where oil and valuable minerals are to be found. 75% of LDC exports are primary products subject to unstable global prices. Instead of the regional integration that is needed to help address the vulnerability of LDCs, deep divisions remain. LDC Watch President, Dr. Arjun Karki re-enforced the message that change was needed. “Development policies towards the world’s poorest countries must be drastically overhauled. Current policies have failed the people in the world’s poorest countries and they have little hope without these changes” he said. He warned that “the inherent instability of the global financial system impacts most drastically on least developed countries. The impact is apparent today with the current crisis in the banking system. But development of LDCs is continually constrained by the macro economic policies of the donor community. In requiring governments to limit their expenditure in social sectors because of the vulnerability of the global system, LDCs are unable to invest adequately in the future capacities of their people.” In response to a call for gender to be brought into the debate Mr. Habib acknowledged that promoting gender equality was critical. “Women make up the majority of jobless people, and they are increasingly significant in numbers migrating from rural to urban areas.” Mr. Iktekhar Chowdhury, Bangladesh Foreign Minister and current Chair of the LDC group of countries said that “we must break out of the clap-trap of poverty and lift LDCs out of the conundrum of poverty. LDCs face new risks that must be addressed. But the problems of some must be faced by all.” Mr. Chowdhury said that development in the LDCs needed peace and stability, adherence to human rights and the rule of law, and good governance. He also drew attention to the statement produced by LDC Ministers for the UNCTAD Conference. LDC Ministers agree that the current food crisis is a political issue more than a financial issue. They have therefore called on the UN Secretary General to establish a High Level Task Force looking at the food crisis which should make recommendations to an international conference later this year. In closing the meeting Arjun Karki welcomed the LDC Ministerial statement. “We fully support the aspirations of the Ministers and the proposal to establish the High Level Task Force” he said. “Civil society representatives must play an active role in this Task Force” he continued “as they have critical experience to bring to the debate. As LDC Watch we will continue to work with our colleagues in all LDC countries towards making the policy changes needed for sustainable development to be achieved in LDCs. We look forward to working with the UN and LDC governments over the coming years to make this a reality when the Fourth LDC Conference meets in 2011”. For further information contact Arjun Karki on +977 985 102 32 54 (Nepal) or Prajeena Karmacharya on +233 24 836 72 10 (Ghana)