World Bank outlines four key reforms to boost growth, create jobs

Nepal has achieved remarkable success in poverty reduction, nearly eradicating extreme poverty, largely driven by remittances. To strengthen future growth, Nepal should prioritise policy actions that unlock domestic opportunities, according to the World Bank’s Nepal Country Economic Memorandum: Unlocking Nepal’s Growth Potential, released today.

Despite progress, Nepal’s economic growth lags regional peers, it reads, adding that Nepal's economy grew at an average annual real rate of just 4.2 per cent between 1996 and 2023, ranking sixth out of eight South Asian nations. Structural challenges such as low productivity, declining exports, and a stagnant industrial sector have held back the economy and led to slow job creation in non-agriculture sectors. Young workers are migrating abroad in search of better job opportunities as domestic prospects remain limited.

“Nepal's success in poverty reduction is impressive, but its economic potential remains largely untapped,” said World Bank Division Country Director for Maldives, Nepal, and Sri Lanka David Sislen. “Nepal has significant potential to drive stronger growth and create jobs by implementing key reforms to increase the returns from migration, boost exports, use hydropower efficiently, and boost digitalisation.”

“The 16th Plan for Nepal outlines a vision of good governance, social justice, and prosperity and prioritizes productivity and competitiveness, decent and productive jobs, social security, and ensuring a smooth transition from LDC status,"  vice chair of the National Planning Commission (NPC) Prof Dr Shiva Raj Adhikari said, adding that the government is committed to ensuring an enabling policy environment for Nepal’s sustainable growth.

The Nepal Country Economic Memorandum produced every five years, offers a roadmap for faster growth in key sectors. It recommends policy actions in four critical areas to unlock Nepal's economic potential.

Getting more out of migration: A systematic and institutionalised migration system can enhance the returns from migration. Integrating migration into national development, job creation, and poverty reduction strategies will provide a platform to work towards such a system. Policies should focus on reducing the cost and increasing the benefits and safety for current low-skilled migrants, while also eyeing longer-term skill and destination diversification. Expanding and better implementing bilateral labor agreements will be critical. Initiatives promoting entrepreneurship and retraining and reskilling programmes would allow returning migrants to reintegrate into the domestic labour market.

Improving export performance: Improving market competition in key sectors and addressing infrastructure deficits can boost exports. Better managing inflationary pressures would address the erosion of exporters’ price competitiveness. Encouraging people to use remittances for investments and business growth could help ease inflation. Simplifying the process for businesses to get tax refunds on imported materials and lowering import taxes would make it easier for them to export more products. With Nepal’s transition from Least Developed Countries (LDCs) status and the loss of trade preferences, authorities should seek additional preferential trade agreements. 

Harnessing the potential of hydropower: Developing a clear financing strategy to develop the hydropower sector will help mobilise much-needed investments. This strategy could include developing the domestic bond market and an effective framework for large-scale public-private partnerships. Strengthening the regulatory and legal frameworks, by reducing bureaucratic red tape and streamlining the current licensing process, would improve the structure of the electricity market and attract additional investment.

Boosting the digital sector: Updating the Telecommunications Act and the digital strategy and adopting key digital infrastructure faster would boost the development of the digital sector. Low digital skills, one of the key roadblocks in the sector, need to be addressed by integrating these skills in school curricula and through training programmes for different age groups and demographics.

Nepal improves ranking in human development index

Nepal's Human Development Index (HDI) value is 0.601 —placing the country in the medium human development category and  —positioning it at 146 out of 193 countries and territories. 

Nepal’s ranking was 149 in 2021, according to United Nations Development Programme (UNDP) report. "As compared to 2021, Nepal’s progress on HDI value is 0.010 which is higher than global average of 0.004."

Countries with HDI values between 0.550 and 0.699 fall under the medium human development category.

Between 1990 and 2022, Nepal's HDI value changed from 0.395 to 0.601, representing a change of 52.2 percent. During the same period, Nepal's life expectancy at birth increased by 15.7 years, expected years of schooling by 5.4 years, and mean years of schooling by 2.1 years.

Nepal's GNI per capita changed by about 165.7 per cent between 1990 and 2022, the report adds.

The 2022 female HDI value for Nepal is 0.562, contrasting with 0.635 for males, resulting in a GDI value of 0.885.

Between 1990 and 2022, Nepal's life expectancy at birth changed by 15.7 years, expected years of schooling changed by 5.4 years and mean years of schooling changed by 2.1 years.

The 2022 female HDI value for Nepal is 0.562 in contrast with 0.635 for males, resulting in a GDI value of 0.885.

“Nepal performed progressively in the last 5 decades, yet fall into gridlock at times, particularly following the pandemic– be it related to decent jobs for youths, spatial and social inequalities, economic growth, as well as trust on institutions," UNDP Nepal’s Resident Representative Ayshanie Medagangoda-Labé said, adding that it is fundamental to collaborate not only between three levels of governments, but also with the private sector, civil society, international community, and people at large. "The federal government could focus more on transparency, accountability, and integrity; provincial and local governments can enhance planning and service delivery; Civil Society Organisations (CSOs) could further promote people’s participation and voice to revive hope and trust, and using multilateralism, a proven path that benefit everyone in the society.”

The report argues that advancing international collective action is hindered by an emerging ‘democracy paradox’: while 9 in 10 people worldwide endorse democracy, over half of global survey respondents express support for leaders that may undermine it by bypassing fundamental rules of the democratic process, as per data analysed in the report. "Half of people surveyed worldwide report having no or limited control over their lives, and over two-thirds believe they have little influence on their government’s decisions."

Political polarisation is also a growing concern with global repercussions. Along with a sense of powerlessness, report authors say, it is fuelling inward-turning policy approaches – starkly at odds with the global cooperation needed to address urgent issues like the decarbonisation of our economies, misuse of digital technologies, and conflict. This is particularly alarming in light of 2023's record-breaking temperatures, which emphasise the immediate need for united action to tackle the climate crisis, or in the advent of artificial intelligence as a new and fast-evolving technological frontier with little or no regulatory guard rails.

The report highlights that deglobalisation is neither feasible nor realistic in today’s world and that economic interdependence remains high. It points out that no region is close to self-sufficiency, as all rely on imports from other regions of 25 per cent or more of at least one major type of goods and services.

The report emphasises how global interdependence is being reconfigured and calls for a new generation of global public goods. It proposes four areas for immediate action:

- planetary public goods, for climate stability, as we confront the unprecedented challenges of the Anthropocene;

- digital global public goods, for greater equity in harnessing new technologies for equitable human development;

- new and expanded financial mechanisms, including a novel track in international cooperation that complements humanitarian assistance and traditional development aid to low-income countries; and

- dialling down political polarization through new governance approaches focused on enhancing people's voices in deliberation and tackling misinformation.

In this context, multilateralism plays a fundamental role, the report argues, because bilateral engagements are not able to address the irreducibly planetary nature of the provision of global public goods.

More key data from the report

• In 2023, all 38 countries that are members of the Organisation for Economic Co-operation and Development (OECD) achieved higher Human Development Index (HDI) scores compared to their levels in 2019.

• Among the 35 least developed countries (LDCs) that experienced a decline in their HDI in 2020 and/or 2021, more than half (18 countries) have not yet recovered to their human development levels of 2019.

• All developing regions have not met their anticipated HDI levels based on the trend before 2019. It appears they have shifted to a lower HDI trajectory, indicating potential permanent setbacks in future human development progress.

• The impact of human development losses is in sharp focus in Afghanistan and Ukraine.

Afghanistan’s HDI has been knocked back by a staggering ten years, while Ukraine’s HDI dropped to its lowest level since 2004.

• The report cites research indicating that countries with populist governments have lower GDP- growth rates. Fifteen years after a populist government assumes office, the GDP per capita is found to be 10 percent lower than it might under a non-populist government scenario.

Nepal’s trade with China yet to return to normal

With significant disruptions to cross-border trade between Nepal and China stemming from the 2015 earthquake and the global Covid-19 pandemic, Nepal’s trade with China is yet to return to normal. The challenges arising from the sanitary and phytosanitary (SPS) measures impacting Nepali products require prompt attention, as do the specific issues surrounding transportation, connectivity, and logistical aspects, in both exports and imports, opined the experts today during a roundtable discussion on 'Nepal-China Trade: Prospects and Challenges,' organised by South Asia Watch on Trade, Economics, and Environment (SAWTEE), and supported by The Asia Foundation (The Foundation).

The discussion centred on the trade relationship between Nepal and China, examining the challenges within the overall trade ecosystem that have contributed to the lacklustre export performance. According to a study conducted by SAWTEE on Nepal-China Trade, between 2020 and 2022, over 90 per cent of the value of goods exported to China from Nepal were covered by the zero-duty list for the least developed countries (LDCs), but the utilization of preferences averaged 68 per cent.

On the occasion, research officer at SAWTEE Rupesh Tha highlighted -- in his presentation -- that although China stands as Nepal's second-largest trading partner, the trade balance has distinctly favoured China. "It is vital for Nepal to fully harness the advantages of zero-tariff treatment provided to over 8,000 products originating in Nepal and diversify its exports to China," he said, adding that bilateral agreements, such as the trade and payment agreement 1981, are currently outdated and ill-suited to the present circumstances and need to be reviewed. "This is particularly pertinent as Nepal grapples with a significant trade deficit with China."

Former joint secretary at the Ministry of Industry, Commerce and Supplies (MOICS) Rabi Shanker Sainju, on the occasion, said that Nepal's trade with China is adversely affected by the high transportation costs resulting from its inadequate logistics infrastructure. "With the evolution of the landscape of the Chinese consumer market, demand for high-quality products has increased, and this must be taken into account when looking to boost exports to China," he added.  

Under secretary at the ministry Achyut Dhungana identified infrastructure and logistics, the negotiation and execution of trade agreements, market access, and the facilitation of cross-border payments as the four key factors that should be considered for enhancing trade with China. He also informed that a meeting has already been held to discuss the review and amendment of the trade and payment agreement signed between the Ministry of Industry, Commerce and Supplies and the Chinese Ministry of Commerce to enhance bilateral trade relations.

Chairman of Nepal Trans Himalaya Border Commerce Association Ashok Kumar Shrestha emphasised the need for enhancing trust between stakeholders -- public and private sectors -- of the two countries, in addition to improving infrastructure, logistics, and connectivity, to build trust to give a boost to Nepal-China trade ties. Highlighting the need for meeting phytosanitary requirements for the export of Nepali products to China, he suggested establishing a multifunctional quarantine laboratory.

Likewise, former trade secretary Bindra Hada highlighted the longstanding history of bilateral trade relations between the two countries.

Delivering the special remarks on the occasion, joint secretary at the ministry Ram Chandra Tiwari said that Nepal's incentive structure doesn't place enough emphasis on supporting entrepreneurship, startups, and the overall industrial ecosystem, leading to a lackluster export performance.

Moreover, he noted that the three-tiered structure of government under federalism has diminished collaboration between the different levels of government, resulting in ineffective resource utilization and subpar export performance. 

Participants -- including trade experts, policymakers, and representatives from the private sector -- also drew attention to evaluate the trade consequences for Nepal following its graduation from the LDC category in 2026. They further suggested that studies on Nepal-China trade should also look into the impact on trade with China and the existing tariff benefits provided by China, and explore alternative trade agreements and provisions to safeguard Nepal's trade with China in the years after graduation.

Poor supply capacity hits export growth

Poor supply capacity has hit Nepal's export, according to the expert.

While Nepal has accorded the highest priority to export promotion, even acknowledging the importance of promoting exports in the directive principle of the Constitution, the export performance in the past decade has been dismal, primarily because of poor supply capacity, chairman of South Asia Watch on Trade, Economics and Environment (SAWTEE) Dr Posh Raj Pandey said at a seminar on 'Trade policy and economic diplomacy in Federal Nepal', organised by SAWTEE, in collaboration with The Asia foundation (TAF), here today.

Likewise, speaking at the inaugural session, industry secretary Toyam Raya said that Nepal’s future trade policies must be formulated through proper and adequate consultations among all the tiers—local, provincial and federal—of the government as well as the private sector. "Diplomatic missions play a vital role in promoting exports," he added.

Discussing on the findings of two studies on 'Trade policy and economic diplomacy in Federal Nepal', on the occasion, foreign secretary Bharat Raj Paudyal said that federalism can be leveraged to address the major issues that plague Nepal’s exports: weak intergovernmental coordination, supply-side constraints, poor adoption of technology, weak production capacity, lack of trade policy coherence, and finally poor implementation of policies.

He also pointed out that economic diplomacy cannot function in isolation, hence collaboration and coordination between various stakeholders are essential.

On the occasion, executive director at SAWTEE Dr Paras Kharel said that as Nepal stands on the verge of graduating from the Least Developed Country (LDC) category in 2026, trade and economic diplomacy carry special importance in charting the post-graduation landscape.

Presenting the findings of a study, trade expert Purushottam Ojha and researcher at SAWTEE Neelu Thapa recommended identification and development of products along with the need for product and market diversification to boost Nepal’s exports. The study highlighted the need of technical support and capacity building programmes. It also recommended strong coordination within the three tiers of governments for effective implementation of trade policies.

The panelists, including former policymakers, on the occasion, emphasised on the need to make trade policy more focused.

Similarly, the private sector representatives including president of Federation of Women Entrepreneurs Association of Nepal (FWEAN) Neeru Rayamajhi Khatri, director at the Kanchanjangha Tea Estate and Research Centre (KTERC) Shanta Baskota Koirala and Entrepreneur at the Himalayan Natural Food Product and Export Pvt Ltd Rajendra Timilsina called attention to the need to integrate trade policy to promote entrepreneurship by increasing access to technology, infrastructure, knowledge, and capacity building activities of the entrepreneurs.

Urging the policymakers to take advantage of the federal structure, former president of Nepal Freight Forwarders Association Rajan Sharma emphasised on the need to allow subnational governments to play a role in enhancing the supply-chain.

On the occasion, former ambassador Dr Dinesh Bhattarai and research officer at SAWTEE Swastik Aryal presented the findings of a study on 'Economic diplomacy for trade facilitation and export promotion in the context of federal Nepal'.

The study has identified underutilisation of economic diplomacy for trade facilitation and low coordination within government agencies as well as with other stakeholders as the major gap. It also recommended strong partnership between government agencies for the utilization of economic diplomacy and the need to establish and strengthen the institutional arrangement for economic diplomacy.

Discussing on the the findings of the study on 'Economic diplomacy for trade facilitation and export promotion in the context of federal Nepal,' former ambassador Prof Shambhu Ram Simkhada highlighted the importance of focusing on improving structural and supply-side constraints to trade. He also emphasised to focus on high-value niche products instead of mass production of low-value products for export.

Likewise, former president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Suraj Vaidya gave an insight into the challenges faced by the private sector in trade such as lengthy bureaucratic processes. He called for putting Nepal’s internal house in order, which he deemed a precondition for diplomacy to work efficiently.

Trade and economic diplomacy expert Rabi Shankar Sainju, on the occasion, highlighted the importance of infrastructural development, better linkages between buyers and suppliers, and effective diplomacy to remove protectionist measures applied by other countries.

Global economy will slow down in 2022

The growth in global real GDP will drop from 5.7 per cent in 2021 to 3.3 per cent in 2022, according to a report.

The report released by United Nations Conference on Trade and Development (UNCTAD) released today also shows that trade in both goods and services will slow down. “Growth in merchandise exports is expected to decline by half, from the strong 26.5 per cent increase recorded in 2021 to 13.8 per cent this year. “For services exports, which include transport and travel, the slowdown will be less pronounced – from 17.2 per cent to 14.6 per cent,” the Handbook of Statistics 2022 – the global reference for trade and development trends published each year – reads. 

Despite the strong growth in trade in services in 2021, the value of exports ($6.1 trillion) remained below their pre-Covid-19 levels ($6.3 trillion in 2019), it reads, adding that prices soared, especially for fuels, driving inflation. “The prices of primary commodities, such as food and energy, soared by 55 per cent in 2021.” Fuels accounted for 22 percentage points of the growth.

The upward trend continued this year, with prices hitting in August 2022 their highest levels in nearly three decades. Inflation also soared, especially in Africa, where consumer prices jumped by 22.7 per cent in 2021. Meanwhile, households in Latin America and the Caribbean saw prices rise by 15 per cent.

Likewise, trade surplus of developing economies also increased. “The trade surplus of developing economies grew, especially in Africa,” it reads, adding that the increase was mirrored by a widening trade deficit for developed economies. “Developing countries traded more with developed nations ($8 trillion) than among themselves ($5.4 trillion). Trade between developed nations was slightly higher at $8.5 trillion.”

The report also states that export diversification remains a challenge for developing countries. But the products that countries depended on varied across regions. Around three quarters of Africa’s exports consisted of primary goods (77 per cent), while developing economies in Asia and Oceania exported manufactured goods in nearly equal proportions (76 per cent).

Least developed countries fall short of growth targets, the report reads further. “The world's 46 least developed countries (LDCs) reported real GDP growth of only 2 per cent in 2021, less than half the global average of 5.7 per cent.”

GDP growth in LDCs fell far short of the 7 per cent annual per-capita growth target enshrined in the UN’s 2030 Agenda for Sustainable Development.

Likewise, population hits 8 billion while dependency rates increase. “The global population hit 8 billion in November 2022, even though growth has been declining since the late 1980s. In 2021, it stood at 0.87 per cent,” it adds. “Global dependency rates also increased among the population. On average, there are 54 dependent children or older people for every 100 workers. Africa has the highest dependency ratio at 72 per cent.”

The handbook provides in one report the key data and indicators on how the global economy has evolved – for regions, countries and sectors. It also provides projections based on real-time estimates – called nowcasts – to help governments anticipate ongoing shifts and improve policymaking.

“Timely and quality data are critical now more than ever as concurrent global crises test our resilience,” UNCTAD secretary-general Rebeca Grynspan said. “These statistics will help countries take evidence-based policy measures to cushion the blow of the global crisis on the most vulnerable.”

Norway pledges NOK 25 million to back developing countries’ growth through safe food

The Norwegian Agency for Development Cooperation (Norad) is pledging NOK 25 million (approximately CHF 2.5 million) from 2021 to 2023 to the Standards and Trade Development Facility (STDF). The grant will be used to strengthen the capacity of developing and least-developed countries (LDCs) including Nepal to comply with international food safety, animal and plant health standards, produce safe, quality food and increase their access to global and regional markets.

WTO director-general Ngozi Okonjo-Iweala welcomed Norway's continued generosity, and said that this new pledge will support developing countries to implement international SPS standards, including using science-based approaches to protect plant, animal and human health. "These efforts strengthen the safety and stability of a developing country’s food supply, so thousands of farmers can sell goods in new markets, improving livelihoods," he added.

Likewise, Norad director-general Bård Vegar Solhjell  said that food security and enabling viable food systems is a priority for Norwegian development assistance. "Norad is proud to support the STDF in its work to ensure that LDCs build capacity and can engage in safe trade, which is one of the keys to economic growth and poverty reduction," he said, adding that the global pandemic emphasises that one must continue to invest in and scale up safe trading systems.

The signing of this agreement marks the first time Norad, a directorate under the Norwegian Ministry of Foreign Affairs, is directly contributing to the STDF. Norad's main purpose is 'to ensure that Norwegian development aid funds are spent in the best possible way, and to report on what works and what does not work.'

The partnership will support developing countries' efforts to comply with the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement). The STDF will use Norad's contribution to support the development and implementation of collaborative and innovative SPS projects that make safe trade a reality on the ground.

Not including this latest disbursement, Norway has provided CHF 5.2 million to the STDF through multiple agreements since 2007. Overall, Norway has contributed about CHF 41 million to various WTO trust funds over the past 20 years.

To date, the STDF has funded more than 230 projects benefiting LDCs and other developing countries. The contribution by Norway will also strengthen the STDF's coordination platform, connecting diverse stakeholders across agriculture, health, trade and development to share experiences, find opportunities for collaboration and promote a more coherent approach to SPS capacity development.

The STDF was established by the Food and Agriculture Organisation (FAO) of the United Nations, the World Organisation for Animal Health (OIE), the World Bank Group, the World Health Organisation (WHO) and the WTO, which houses and manages the partnership. The STDF responds to evolving needs, drives inclusive trade and contributes to sustainable economic growth, food security and poverty reduction, in support of the United Nations' Global Goals.

Without better productive capacities, poorest countries will remain margins of global economy

UNCTAD’s Least Developed Countries Report 2021 to be released next week is calling for increased investment in productive capacities and state capacity in least developed countries (LDCs), as the Covid-19 crisis and the emerging two-speed global recovery threaten to reverse many hard-won development gains in these countries.

"The development of productive capacities in LDCs is necessary for boosting their ability to respond to and recover from crises such as the pandemic, and to advance towards sustainable development," the report reads, adding that to achieve that, they need the decisive support of the international community to finance the immense investments required and to build technological capabilities.

The UN established the LDC category 50 years ago. The grouping of the world’s weakest economies has expanded from an initial 25 countries in 1971, peaking at 52 in 1991, and stands at 46 today, with only six countries having graduated – stopped being an LDC – to date.

Call for equitable, affordable and universal access to vaccines to fight Covid-19

Nepal called for equitable, affordable and universal access to vaccines to fight Covid-19 pandemic.

Addressing annual ministerial meeting of the Least Developed Countries (LDCs) held virtually on the margins of the 76th session of the United Nations General Assembly (UNGA), today morning foreign secretary Bharat Raj Paudyal highlighted the consequences of the Covid-19 pandemic on peoples, societies and economies of the LDCs, including Nepal, and called for equitable, affordable and universal access to vaccines.

He said that LDCs must build resilient economies with adequate physical infrastructure, advanced industrial and technological capacity, and expanded social protection systems to win the war against the virus, eradicate poverty and ensure the well-being of their people. He also underlined the need to build productive capacity for the structural transformation of their economy.

He called for an enhanced level of support from the international community in the areas of ODA, FDI, aid for trade, debt relief, climate financing, and technology transfer.

While expressing concerns about the upfront cost and loss of support measures, he said that graduation from the LDC category is our long-held aspiration and an important development milestone, and we are committed to making it smooth, sustainable and irreversible.

"As we prepare for LDC5 in Doha, we must focus on the unfinished business of the IPoA and chart out actions for sustainable and resilient recovery of the LDCs," he stressed, emphasising the need for a unity of purpose, global solidarity and strong and ambitious programme of action to avert the risk of another lost decade of development.

A number of ministers from LDCs, friends of LDCs and development partners, and high-level UN officials participated in the meeting. The meeting also adopted a Ministerial Declaration at its conclusion.

WTO members agree to extend TRIPS transition period for LDCs

 The global trade regime members agreed to extend until 2034, July 1 the deadline for least developed countries (LDCs) to protect intellectual property under the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

The members reached consensus on the 13-year extension of the current transition period, which was set to expire on 2021, July 1, at a formal meeting of the TRIPS Council on June 29, acording to a press note issued by the WTO.

Since the inception of the TRIPS Agreement, LDCs have benefitted from an extended transition period to apply provisions of the TRIPS Agreement, in recognition of their special requirements, their economic, financial and administrative constraints, and their need for flexibility in order to create a viable technological base, it reads, adding that the transition period for LDC members under Article 66.1 of the TRIPS Agreement had been extended twice before (in 2005 and 2013). "The he decision adopted was the result of intensive consultations over several months."

The members were broadly in agreement on the principle of the extension but were unable to reach a decision due to their differences on the additional request that members graduating from LDC status should be accorded additional flexibilities under the TRIPS Agreement after their graduation.

LDCs favoured extending the transition period for as long as the member remains categorised as an LDC, and for an additional period of 12 years from the date of graduation of a member from the LDC category. A group of delegations expressed a preference for extending the period for a limited time, while others argued that a transition period for members that have graduated from LDC status went beyond the TRIPS Council's mandate under Article 66.1, the press note adds.

Given the lack of consensus on this latter issue, and the urgency to agree on the transition period extension, members agreed that the post-graduation element of the request would best be pursued under an LDC proposal already on the agenda of the General Council.

Under the agreed decision, LDC country members shall not be required to apply the provisions of the TRIPS Agreement, other than Articles 3, 4 and 5, until 2034, July 1 or until the date when they  cease to be a least developed country, whichever date is earlier.

"The important decision proves that finding consensus is still within reach for members of this organisation,” said the chair of the TRIPS Council ambassador Dagfinn Sørli of Norway. The chair commended all delegations involved in this effort “for their sense of responsibility in finding a timely solution, for their commitment in pursuing their respective objectives, and for the flexibility and pragmatism they showed when this was necessary to close the deal.

"It is thanks to the hard work and diplomatic acumen of these delegations that we have a draft decision before us, agreed by those most directly affected by this matter, that can once again extend the transition period for LDCs before the current period expires in just over 24 hours' time,” he added.

On behalf of the LDC Group, Chad noted this is a compromise solution they accept with the understanding that members have also expressed their readiness to continue discussions in good faith at the General Council on the post-graduation transition period for LDCs.

In expressing their support for the extension, developed members acknowledged the unique challenges facing LDCs, which in many cases have been exacerbated by the Covid-19 pandemic. They encouraged LDCs to use the transition period to build reasonable and balanced IP systems for themselves, including by availing themselves of technical assistance available from the WTO and other international organisations.

Several members expressed their satisfaction at the fact that members have demonstrated they can work together constructively to reach consensus and deliver important results. The work done by the delegations of Chad and Bangladesh, who led the LDC effort in bringing the discussion to a successful and multilateral outcome, was also commended by a large number of delegations.

Nepal to graduate in 2026 to developing country

The United Nations Committee for Development Policy (CDP) has recommended for Nepal’s graduation from the Least Developed Country (LDC) category with preparatory period of five years. "This means that the graduation of Nepal would be effective in 2026," according to a press note issued by the Permanent Mission of Nepal in New York. 

The CDP – in its triennial review held from February 22 to 26 – made the recommendation as Nepal had met the criteria for graduation for three consecutive reviews. Out of three indices which the CDP considers while deciding on the question of graduation – GNI per capita, Human Assets Index (HAI), and Economic and Environmental Vulnerability Index (EVI) – Nepal met the thresholds for the latter two, thus being eligible for graduation.

Though Nepal had met the graduation criteria for the first time in 2015, the CDP in its 2018 triennial review recommended to defer the graduation on the request of the government considering the setback on Nepal’s economy by the 2015 earthquake and other disasters in the following years.

Nepal  – seeking a sustainable growth and graduation  – had requested the UN to delay the graduation till 2021. The then vice chair of the National Planning Commission (NPC) Dr Swarnim Wagle recommended the government to delay the graduation as Nepal has long way to go to meet the GNI per capita requirement, which is considered the milestone for a sustainable graduation. The government – led by prime minister Sher Bahadur Deuba  – wrote letter to the UN seeking postponement.

This time too, due to the extraordinary challenges posed by the Covid-19 pandemic and based on the request of the government, the normal preparatory period of three years has been extended to five. In addition to Nepal, Bangladesh and Lao People’s Democratic Republic have also been recommended for graduation by the CDP.

The CDP’s recommendation is an important milestone in Nepal’s development trajectory towards the national ambition of ‘Prosperous Nepal, Happy Nepali’ and the nation’s development aspirations as reflected in the fifteenth Periodic Plan, claims the press note. 

The recommendation needs to be endorsed by the United Nations Economic and Social Council (ECOSOC) which shall then be ‘noted’ by the UN General Assembly later this year. Nepal will continue to have access to all LDC-specific support measures until 2026. The preparatory period of five years is given to provide adequate time for a smooth transition during which Nepal would be enabling itself to offset the loss of support measures exclusive to the LDCs. But a section of Nepal's business fraternity is still reluctant as they think that without improving the capacity and trade logistic cost, the loss of LDC-specific support measures will hit the country's economy. 

"Nepal scored 72.1 in the HAI but the threshold being above 66, and 25.5 in the EVI, the threshold being below 32, whereas Nepal has $1027 Gross National Income, while the threshold is $1230. "The government is planning to announce $1400 as the gross national income on the basis of revised indices," according to National Planning Commission. 

The private sector is however not comfortable with graduation. Though graduation will increase Nepal's reliability and credibility in the international arena for keeping its words, the country will lose the benefits it is getting due to least developed country (LDC).

Nepal currently enjoys duty free and quota free access to the Canada and US markets due to its LDC status. With graduation -- in five years -- Nepali will lose competitiveness in the international market as it has to compete with the goods produced by the great manufacturing giants.

Likewise, Nepal also has to face a gamut of challenges to make the recommendation irreversible during the review. With the current unstable politics and economy, Nepal must chart out a national level strategy to make Nepali produce more competitive. The planning commission, however, claimed that it is charting out the five-year strategy to bring the policy shift. But the government needs to be serious in dcreasing the cost of trade and private sector be serious on market competition. The resource crunch country will find it difficulty to even prepare the budget, as it is going to lose large chunck of aid from development partners apart from dutyfree quotafree market access.  

Nepal should start negotiations with the EU, India, China, Japan and other countries so that the trade will not be hampered. But with the right strategy and planning during these five years, Nepal could mitigate the challenges. According to the National Planning Commission, Nepal also needs to conduct a fresh review of the scheduled graduation plan considering the impact Covid-19 pandemic and must prepare a transition strategy in cooperation with trade and development partners to avoid adverse impacts from the country’s graduation as it risks losing preferential treatment and as the Covid pandemic has had a profound impact on global economy, with new risks of rising trade and export costs impacting external markets, and the need for more concessional aid, including debt relief, to overcome multiple crises.

UN and EIF launch interactive guide on cross-border paperless trade

 Cross-border paperless trade has great potential to not only grow trade competitiveness but also to address new challenges associated with e-commerce and the digital economy. The United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP), in collaboration with the United Nations Commission on International Trade Law (UNCITRAL) and the Enhanced Integrated Framework (EIF), today launched an interactive guide to support readiness assessments on cross-border paperless trade.

The Online Readiness Assessment Guide for Cross-border Paperless Trade is designed to support countries in the region to conduct self-assessments of legal and technical readiness on cross-border paperless trade, according to a press note issued by the UNESCAP. “With the new guide, countries have at their disposal, comprehensive guides on how to conduct readiness assessments, without the need for intensive physical travelling of experts,” it reads, adding that they will also be able to interact virtually with experts for further guidance on conducting readiness assessment on a request basis.

“The guide being launched today is expected to support member states in conducting self-assessments of their legal and technical readiness for cross-border paperless trade, as a first step towards developing a concrete action plan for implementation,” UN under-secretary-general and executive secretary of ESCAP Armida Salsiah Alisjahbana said at the launch.”

The Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific, that the guide is supporting the implementation of, is designed so that countries at all levels of development and digitalisation can participate, leaving no one behind, she said, urging all member states to complete ratification as soon as possible.

“The Online Readiness Assessment Guide for Cross-border Paperless Trade is an important diagnostic tool to identify opportunities for adopting laws and regulations that enable paperless trade,” UNCITRAL secretary Anna Joubin-Bret said, adding that UNCITRAL texts are a core component of that legal environment. “The importance of taking prompt action in this area has recently been highlighted by the discussions on how to mitigate the economic effects of the Covid-19 pandemic.”

“We are pleased to have cooperated with ESCAP and EIF in preparing this Online Guide and look forward to work with all concerned partners to support States in this critical endeavor,” she shared.

“The potential benefits from digitalization of trade processes are substantial,” executive director of the Executive Secretariat for the EIF Dr Ratnakar Adhikari said.

“The online interactive guide on cross-border paperless trade will be instrumental in supporting countries to assess their technical and legal gaps in electronic exchange of trade data and documents with other trading partners,” he said, adding that they look forward to working with the partners, including ESCAP, to support least developed countries in the region to strengthen their institutional capacity and harmonise data standards towards the vision of an Asia-Pacific paperless trading environment.

Readiness assessments on cross-border paperless trade support implementation of the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific, which will soon enter into force on February 20, 2021. Five countries – Azerbaijan, Philippines, Islamic Republic of Iran, Bangladesh and China - have thus far ratified or acceded to this UN treaty. In addition, Armenia and Cambodia have signed in 2017, with several more in the process of completing their domestic processes for accession.

The treaty, with its common set of general principles and a dedicated intergovernmental platform, will support countries in building on the bilateral and subregional digital trade solutions they have already developed to achieve greater, region-wide paperless trade. By enabling exchange and legal recognition of trade data and documents, it could reduce trade costs by 25 per cent across the Asia-Pacific region and support more seamless and resilient trade.

Moreover, the policy responses to the Covid-19 pandemic are having a significant impact on the cost of trading goods across borders. Despite measures taken by many countries to keep goods moving across borders, ESCAP research reveals that international trade costs faced by importers and exporters in the region are expected to rise by 7 per cent on average this year, with some facing increases in costs exceeding 20 per cent.

The new guide is relevant to all countries globally, as it can support the implementation of not only the treaty but also the full digital implementation of the World Trade Organisation (WTO) Trade Facilitation Agreement (TFA).

The Online Readiness Assessment Guide resulted from strong partnerships and continuous efforts in the Asia-Pacific region and beyond. It is based on legal and technical readiness assessment checklists developed by the Interim Intergovernmental Steering Group on Cross-border Paperless Trade Facilitation at ESCAP and its Legal and Technical Working Groups, with contributions from the United Nations Network of Experts for Paperless Trade and Transport in Asia and the Pacific (UNNExT). It benefited from the legal expertise on e-commerce of the UNCITRAL, as well as support from the EIF under a joint project on facilitating cross-border trade in LDCs for sustainable development. It also incorporates lessons learned from other ESCAP trade facilitation projects funded by China, the Russian Federation as well as the Republic of Korea.

Japan extends grant for School Sector Development Programme

The government of Japan has extended grant assistance of up to 300 million Japanese Yen (¥300,000,000), equivalent to Rs 335 million to Nepal for implementing the School Sector Development Programme (SSDP).
Japanese ambassador to Nepal Saigo Masamichi and finance secretary Sishir Kumar Dhungana signed notes to this effect today at the Finance Ministry.
Another set of grant agreements for implementing the programme were also signed by chief representative of JICA Nepal Asakuma Yumiko and joint secretary at the International Economic Cooperation and Coordination Division under Finance Ministry Shreekrishna Nepal, according to a press note issued by the Embassy of Japan in Kathmandu.
Education is an investment in human capital and the foundation of a nation's sustainable social and economic development, the press note reads, adding that the vision of SSDP is to contribute to the development of self-sustainable, competitive, innovative and value oriented citizens for the socio-economic transformation of the nation.
SSDP is considered as an important vessel for Nepal's school education. As such it will produce the needed human resources to elevate Nepal's status from a Least Developed Country (LDC) by 2022 and reach the status of a middle-income country by 2030. Ambassador Saigo hopes that the programme will improve the equity, quality, efficiency, governance, management and resilience of the education sector.
He also pointed out that the Covid-19 outbreak has made the situation difficult for both countries. The pandemic has had serious impacts on students' learning and well-being, he said, adding that with regard to this, the schools have incorporated innovative technologies (eg digital and mobile technologies combined with traditional technologies such as radio and television) in order to provide continuous education.
In view of this, ambassador Saigo hopes that even during this pandemic, the country will take up the challenge to ensure that children and their education will help to contribute to a more prosperous Nepal in the future. The Embassy of Japan in Kathmandu – in the press note – also said that it is confident that the objectives envisaged by the project will be achieved, and will contribute towards further strengthening the relationship, friendship and cooperation between the peoples of Japan and Nepal.

Covid-19 is exacerbating the global trade finance gap

The Covid-19 pandemic is a tragic health crisis causing irreversible damage to the global economic and financial system. It is also worsening trade restrictions and reducing trade volumes globally. Coupled with the scarcity of financing in general, and trade financing in specific, coronavirus is causing serious damage to developing economies, according to the global trade body.
The least developed countries (LDCs) are among the hardest hit. Their already fragile economies are facing further challenges, as the value of their exports plummet and their borders are closed to trade and tourism, like most countries worldwide. “Local and foreign investments are drying up,” the World Trade Organisation (WTO) said, adding that small business revenues and orders have been reduced drastically. “The cost of financial transactions is increasing, as working with financial institutions in LDCs is perceived to be riskier than before.”
The issuance of letters of credit and other trade finance instruments is becoming difficult, if available at all, and the appetite of correspondent banking is decreasing each day as the crisis unfolds. Because of this, LDCs are seeing a rapid depletion of their foreign reserves, and their financial institutions are facing a shortage of liquidity. The persistence of this situation could lead LDCs to drift further away from global value chains and to be left out of the international trade system, it added.
Access to trade finance was already an issue prior to the pandemic. The global trade finance gap is estimated at $1.5 trillion and it is mostly impacting small and medium-sized enterprises in developing countries. Over 50 per cent of requests for financial support to trade are rejected.
The actions that were being taken to reduce the global trade finance gap – including policy advancement, technical assistance, capacity building, regulatory reform and increased financing – are more important now than ever before, to ensure that the world’s most vulnerable countries are not further entrenched in economic inequality because of the pandemic.
Multilateral development banks (MDBs) have launched immediate responses and financial support amounting to more than $200 billion for emerging and low-income countries. For instance, the Islamic Development Bank Group has launched an initial 3Rs, as in ‘Respond, Restore, Restart’, for a total $2.3 billion to support Organisation of Islamic Conference (OIC) countries at different stages of the recovery trajectory. More specifically, trade finance is a pivotal component of support to the private sector as acknowledged by the G20 Ministers of Finance and Central Bank Governors at their April 2020 meeting.
In addition the WTO and MDBs committed to support trade finance The International Islamic Trade Finance Cooperation (ITFC) has pledged an initial $300 million response package to support strategic health, food and energy trade flows and further grant elements to build the capacity of medical personnel and laboratories in OIC countries.
In addition to finance itself, technical assistance programmes are enabling LDCs to build their capacity to provide trade finance. For example, a successfully piloted international trade e-learning programme developed by ITFC and the International Chamber of Commerce is now being provided digitally to financial institutions in LDCs, with the support of the Enhanced Integrated Framework (EIF) and several multilateral development banks and major commercial banks. MDBs are also working together to overcome trade finance barriers, including compliance challenges.

Protection of migrant workers key

Prime Minister KP Sharma Oli has said that protection of the most vulnerable, including the migrant workers and those in informal sectors, and provision of adequate social security and health care is key to minimise the impact of Covid-19.
Prime Minister oli – addressing virtual ‘Global Summit on Covid-19 and the World of Work: Building a Better Future of Work’ convened by the International Labour Organisation (ILO) today, he also said that the world economy has suffered a lot due to global decline in investment, trade and disruption in travel industry, which has thrown millions of workers and enterprise vulnerable. “The impact is unevenly high in the LDCs and low-income countries,” he said.
Expressing support to the human-centred agenda of decent work, he called for robust global response to the pandemic with United Nations (UN) and its specialised agencies like ILO at the centre.
Highlighting that the migrant workers are losing hopes and returning home in the midst of pandemic without protection of job and income, Prime Minister Oli said that this situation could have been avoided and norms of WHO should have been observed in the process.
“Humanity is tested in the time of crisis; our conscience should guide us to uphold justice and fairness even in the time of extreme difficulty,” he said, adding that international solidarity at this hour could prevent the job loss, return of migrant workers and reversal in the progress of SDG and resulting rise of poverty.
The Prime Minister underlined the efforts made by Nepal to the prevention and mitigation of the impact of Covid-19 pandemic. Highlighting the immediate and medium-term measures taken to the protection of workers in the formal and informal sectors and creation of sustainable employment opportunities, he expressed commitment to partnership and social dialogue at the national level and called for greater solidarity to address the situation globally.
The Global summit has brought together over 50 heads of the State and Government, prominent leaders of employers organisations and trade unions as well as heads of international organisations to discuss on the impact of Covid-19 in the employment and livelihoods of hundreds of millions of workers around the world.

WTO report looks at trade developments in poorest countries in wake of Covid-19

A new information note published by the global trade regime secretariat looks at how the Covid-19 pandemic has affected the participation of least-developed countries (LDCs) in global trade.
The note stresses that LDCs have seen a significant decline in export earnings due to decreasing demand in key markets, falling commodity prices and a decline in remittances and are likely to be the hardest hit by the crisis due to their limited resources to stimulate growth.
Most LDCs have experienced a significant decline in export earnings since the outbreak of Covid-19. The World Trade Organisation (WTO) report anticipates that the downturn in world trade in 2020 will continue to be particularly severe for LDCs.
LDC exports of textiles and clothing have been badly affected by declining global demand and supply chain disruptions. In addition, LDCs that depend on tourism revenues are being hard hit by the slump in this sector. There are currently 47 LDCs, 36 – including Nepal – of which have become WTO members. The note underscores that the pandemic is undermining the development gains of countries such as Angola, Bangladesh and Vanuatu that are expected to graduate from LDC status in the near future. 
The note also collates the measures that LDCs have taken to combat the pandemic, ranging from strengthening health care systems to providing stimulus packages to export-oriented sectors and liquidity support for small and medium-sized enterprises.
In early May, the LDCs group called on other WTO members to refrain from imposing export prohibitions or restrictions on medical goods and food. They urged governments to facilitate trade in these goods, including by implementing the provisions in the WTO’s Trade Facilitation Agreement.
The report also notes that the international community is seeking to support LDCs’ participation in world trade by providing debt relief and strengthening social sectors.
Among the Covid-19 pandemic’s far-reaching consequences for the global economy, the LDCs face the most daunting challenges. A lack of resources to support an economic rebound is compounded by LDCs’ dependence on a limited range of products exported to a few markets, some of which have been those worst affected by the Covid-19 outbreak. The pandemic threatens to derail hard-won development gains in LDCs, it reads.
The year 2020 started against the backdrop of a subdued trade performance in 2019. The value of LDC exports of goods and services declined by 1.6 per cent in 2019, a greater decline than that of world exports (1.2 per cent). Consequently, the share of LDCs in world exports also registered a marginal decline, falling to 0.91 per cent in 2019. The expected downturn in trade in 2020 is likely to be even more severe for LDCs than at the global level.
The pandemic has accentuated the slump in oil prices seen in 2019. Declining demand, as well as supply disruptions, have weighed significantly on LDC exports, especially exports of textiles and clothing products. LDCs dependent on tourism revenues have seen the sector come to a virtual standstill. As migrant workers from LDCs return from host countries affected by the pandemic, flows of remittances – a critical source of foreign exchange for many countries – have dramatically dried up. All of these factors are predicted to worsen further in the coming months.
The ongoing pandemic may affect the near-term prospects for some countries to graduate from LDC status. Angola and Vanuatu, which are scheduled to graduate soon, and LDCs such as Bangladesh, which are on the path to graduation in the next few years, have been experiencing unavoidable declines in economic growth and export earnings.
The LDCs have called for countries to refrain from export prohibitions and restrictions on medical goods and food, of which many are net importers. Several LDCs have lowered duties on medical goods to ensure their availability at more affordable prices to their citizens.
Since the start of the pandemic, at least two-thirds of LDCs have put in place a variety of lockdown measures. Some LDCs have announced stimulus packages, which have covered export-oriented sectors. They have also strengthened healthcare systems and ensured social relief packages and liquidity support to small and medium-sized enterprises (SMEs).
The international community has announced support measures ranging from debt relief to strengthening social sectors and providing social safety nets for the most vulnerable. Maintaining this momentum, while redoubling coordination efforts, remains vital as the world moves towards economic recovery, the note reads.

UN calls for smooth transport facilitation to and from LDCs

Chiefs of UN agencies have also asked the governments to refrain from any unjustified restraints on traffic and goods in transit to make sure that goods, medical equipment and basic goods and commodities, can depart from and reach the Landlocked Developing Countries (LLDCs) when needed, without delay or hinderance.
Issuing an urgent statement today, the heads of major UN agencies called for decisive action to help LLDCs not only to protect public health but also smooth transport facilitation to and from LDCs.
“LLDCs and neighbouring countries should make use of trade facilitation standards and digital technologies that limit physical checks in transit, physical contact at borders and protect the health of workers, such as electronic exchange of information, electronic tracking, automation of customs procedures and paperless solutions,” the statement reads, adding that the implementation of international conventions on trade and transport is of utmost importance. “The governments around the globe to respond to this pandemic not only by minimising disruptions to international transport but also by viewing the crisis as an opportunity to reorient international freight transport operations towards a more sustainable path.”
They also called for strengthening of global and regional cooperation on transport connectivity. The statement asserts the UN’s readiness to continue its support to LLDCs and their trading partners. “The Covid-19 pandemic is the defining global health crisis of our time,” it reads, adding that it is causing disruption and human suffering around the world. Its far-reaching social, economic and multidimensional impacts will be felt across all corners of the globe for some time to come. “The measures to contain the spread of Covid-19 have resulted in reduced demand, struggling service sectors, falling commodity prices and millions of jobs lost, pushing people into unemployment and poverty.”
Trade is expected to fall steeply in every region of the world and across all sectors of the economy, they claimed, adding that global freight transport volumes in 2020 could be reduced by more than a third compared with estimates foreseen without Covid-19.
Nowhere are the risks of this health crisis turning into a development crisis higher than in the most vulnerable countries in the world, which are ill equipped to deal with the fallout from this pandemic. The LLDCs are amongst the most vulnerable countries facing binding constraints to growth and development, including isolation from global markets, dependence on transit neighbours, small size, lack of productive capacities, structural challenges and vulnerability to external shocks.
While it may appear that LLDCs have been less exposed to Covid-19, it is important to remember that the situation is constantly evolving, with confirmed cases on an upward trajectory in many countries, the statement further reads, adding that low levels of health spending and low capacities present unique challenges to many LLDCs in effective testing, containment and eventual treatment. “At the same time, the economic and social conditions are deteriorating rapidly in many LLDCs, mostly as a result of the domestic lockdown measures and international restrictions on the movement of people and goods.”
Given already existing challenges, a large informal sector and limited safety net schemes, the socio-economic effects on LLDCs could be severe, they adds. “In some countries, infrastructure at inland border-crossing points is extremely precarious, not only posing additional challenges to the processes at borders, but also exposing staff to higher contagion risks.”
The Covid-19 pandemic has also already begun to generate negative impacts on imports from LLDCs, it adds, reinforcing that facilitating smooth movement of goods and keeping borders open for trade is fundamental. “We call on governments and organisations in the regions to collaborate to keep cross-border transport corridors and regional transport networks open as much as possible, while protecting public health.”
Calling that the global and regional cooperation on transport connectivity needs to be strengthened, they stressed on regional and global value chains and transport systems and services to and from LLDCs have to be sustainable, affordable and resilient to help them respond to the Covid-19 pandemic and future disruptions of similar nature. “In the spirit of solidarity and building on the progress achieved in line with the Vienna Programme of Action for LLDCs, strengthening of regional cooperation between LLDCs and transit countries, in particular on transit and transport along important corridors and promoting public and private partnerships is now more critical than ever.”
The UN system stands ready to continue its support to LLDCs and their trading partners by offering analytical and methodological tools and best practices, providing capacity building and, above all, supporting systematic global and regional dialogue on the challenges faced by LLDCs and opportunities for impactful actions, they added.

Nepal elected Governing Council member at APCTT

Nepal – along with eight ther member states – has been elected Governing Council member of the Asian and Pacific Centre for Transfer of Technology (APCTT) for three-year term from 2020 to 2023 during the 76th session of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) today.
APCTT is a United Nations Regional Institution under the ESCAP, reads a press note issued by Nepal’s Embassy in Bangkok. “APCTT promotes transfer of technology to and from small- and medium-scale enterprises in Asia and the Pacific.”
Nepal's election to the Governing Council member of the APCTT – for the first time after more than six years – confirmed ambassador of Nepal to Thailand and Permanent Representative to the UNESCAP Ganesh Prasad Dhakal, who led the Nepali delegation to the virtual 76th Commission Session. The session adopted two resolutions on ‘Strengthening cooperation to promote the conservation and sustainable use of the oceans, seas and marine resources for sustainable development in Asia and the Pacific’ and the second on ‘Regional cooperation to address the socioeconomic effects of pandemics and crises in Asia and the Pacific’.
While delivering a brief statement in the session, ambassador Dhakal highlighted the impact of Covid-19 pandemic on the national economy and underscored the need of enhanced level of support and cooperation to the LDCs, LLDCs and SIDS to strengthen their resilience.
The next year's Commission Session will be held in Bangkok from April 26 to April 30 on the theme of ‘Building back better from crises through regional cooperation in Asia and the Pacific’.
The governments of Asia and the Pacific meeting today also agreed to pursue coordinated and decisive actions, as well as reinforce regional and global cooperation in the fight against the Covid-19 pandemic.
Endorsing a resolution at the 76th Economic and Social Commission for Asia and the Pacific (CS76), they declared profound solidarity and vouched to provide unimpeded support and technical assistance to those most affected, particularly in developing countries with weaker health systems and vulnerable populations.
“Governments and leaders are grappling with a wide range of challenges that risk recent progress in the Asia-Pacific region and around the world,” United Nations Secretary-General António Guterres said opening the meeting. “Many countries are charting a solid course toward Covid-19 solutions, but millions in the region remain highly vulnerable and at risk,” he said, adding that the world has an opportunity to build back better on the foundations of the 2030 Agenda for Sustainable Development.
“When addressing the health crisis, countries face an unprecedented dilemma: the need to balance measures to contain the pandemic against those for socio-economic recovery,” United Nations Under-Secretary-General and Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP) Armida Alisjahbana said, adding that in order to support countries in building back better, refocusing our work is necessary. She further highlighted three priority areas – supporting economic recovery, protecting people and enhancing resilience, and restoring supply chains and supporting small and medium enterprises, while urging countries to align policies with environmental protection and climate action.
Deliberations this year focused on the theme ‘Promoting economic, social and environmental cooperation on oceans for sustainable development.’ Towards this end, countries endorsed a resolution to conserve and sustainably use oceans and marine resources in the region. The resolution calls for countries to strengthen regional cooperation and redouble efforts to reduce marine pollution, improve ocean data and statistics, and support sustainable maritime connectivity. Countries also agreed to boost public-private and civil society partnerships in the sustainable management of fisheries, aquaculture and tourism to increase economic benefits for small island developing States and least developed countries.

WTO issues report on trade impacts for WTO members graduating from LDC status

A new report issued by the World Trade Organisation (WTO) today seeks to help least developed countries (LDCs) better understand the trade-related implications of graduation from LDC status. The product of a joint effort between the WTO and the Enhanced Integrated Framework (EIF), ‘Trade Impacts of LDC Graduation’ looks at how graduation may affect LDCs’ participation in world trade, including their access to export markets, and implications for their WTO commitments.
The report responds to a specific request from the LDC Group in the WTO for an analysis of how graduation will impact countries’ trade relations. LDCs are accorded special treatment in the WTO, in particular with regard to enhanced market access opportunities and the implementation of WTO rules and disciplines.
While graduation represents an important milestone in their development path, phasing out of the special treatment provisions associated with LDC status could present challenges to graduating LDCs. As a result, graduation-related concerns are increasingly becoming an integral part of LDC proposals in the WTO.
The report was completed before the outbreak of the Covid-19 pandemic and the issuance of the WTO’s recent trade forecast, which foresees a sharp downturn in global trade this year. Nevertheless, the study remains pertinent as it examines the trade impacts resulting from graduation, not the factors that could constrain prospects for graduation due to the pandemic.
“The WTO remains committed to helping LDCs use trade to raise incomes and reduce vulnerabilities, and thereby to graduate from LDC status,” WTO director-general Roberto Azevêdo said, adding that a quarter of LDCs today are on track to graduate – or at least were, prior to the economic dislocation arising from the Covid-19 pandemic. “They need to be supported.”
It is very positive that the international community is continuing to explore measures to facilitate a smooth and sustainable graduation process for LDCs, he added.
A WTO member ‘graduates’ from LDC status when it meets certain socio-economic thresholds set by the United Nations (UN). The decision regarding graduation is taken by UN members at the recommendation of the Committee for Development Policy, an advisory body of the United Nations Economic and Social Council (ECOSOC).
There are currently 47 LDCs, of which 12 are at different stages of the graduation process. Of these LDCs, seven are WTO members including Nepal, Angola, Bangladesh, Lao PDR, Myanmar, Solomon Islands and Vanuatu, while three are in the process of negotiating their WTO accession including Bhutan, Sao Tome and Principe, and Timor-Leste. The other two LDCs on the graduation path are Kiribati and Tuvalu.
The report notes that while graduating LDCs have diverse economic and trade profiles, for most of them the impact of graduation appears limited, with only marginal increases in tariffs due to the loss of preferences. The biggest impact is likely to be confined to a handful of export items including clothing, fish products, footwear destined for a few developed country markets including Canada, the European Union (EU) and Japan. With a considerable share of graduating LDC exports going to markets covered by regional trade agreements, the impact of graduation is likely to be limited for this trade.
Graduating governments may need to take certain steps to adhere to their new non-LDC obligations, particularly with regards to increased notification requirements, the report notes.
The report explores options for graduating LDCs, including through forging appropriate trade arrangements with their trading partners and seeking recourse to instruments and procedures available under WTO rules that allow them to engage with WTO members should they face difficulties in meeting their commitments. It also identifies potential support measures that graduating LDCs can build on by working hand-in-hand with their development partners to ensure sustainable graduation.
The WTO Secretariat intends to undertake a Covid-19 impact analysis for graduating LDCs under the aegis of this project.
“Trade Impacts of LDC Graduation” is the outcome of a joint project between the WTO and the EIF that aims to help graduating LDCs to address graduation-related challenges and support their integration into global trade,” he added.

Don’t let children be the hidden victims of Covid-19 pandemic: UNICEF

Not only are children and young people contracting Covid-19, they are also among its most severely impacted victims. Unless nations act now to address the pandemic’s impacts on children, the echoes of Covid-19 will permanently damage our shared future.
According to the UNICEF, some 99 per cent of children and young people under 18 worldwide (2.34 billion) live in one of the 186 countries with some form of movement restrictions in place due to Covid-19. “60 per cent of all children live in one of the 82 countries with a full (7 per cent) or partial (53 per cent) lockdown – accounting for 1.4 billion young lives, a press note from the UNICEF reads.
 “We know that, in any crisis, the young and the most vulnerable suffer disproportionately,” it reads, adding that the pandemic is no different. “It is our responsibility to prevent suffering, save lives and protect the health of every child and we must also ensure that risk-informed decisions on Covid-19 control measures are made based on the best available evidence in order to minimize and prevent any collateral damage, and to provide mitigation measures so the damage is not lasting.”
It starts with resisting the temptation, in times of potential global recession, to deprioritise investment in our future, it adds. “Increased investments now in education, child protection, health and nutrition, and water and sanitation will help the world reduce the damage caused by this crisis and avoid future crises.”
The world will open up again, and when that happens, the resilience of the weakest health systems will be the gauge of how well we will do against future threats, it hopes.
Countries and communities around the world must work together to address this crisis. “As we have learned painfully in the past two months, until there is a vaccine, coronavirus anywhere is a threat to people everywhere, the UN arm said, adding that they need to act now to strengthen health systems, as well as other child-focused social services, to keep track with global development priorities, in every country around the world.
This week, UNICEF is launching its global agenda for action to protect the most vulnerable children from harm. The agenda has six pillars, Keep children healthy; Reach vulnerable children with water, sanitation and hygiene; Keep children learning; Support families to cover their needs and care for their children; Protect children from violence, exploitation and abuse; and Protect refugee and migrant children, and those affected by conflict.
Without urgent action, this health crisis risks becoming a child rights crisis, it adds. “Only by working together, can we keep millions of girls and boys healthy, safe and learning.”
In health, Covid-19 has the potential to overwhelm fragile health systems in low- and middle-income countries and undermine many of the gains made in child survival, health, nutrition and development over the last several decades. “But too many national healthcare systems were already struggling. Prior to the Covid-19 crisis, 32 per cent of children worldwide with pneumonia symptoms were not being taken to a health provider,” it states. “What will happen when Covid-19 hits in full force? We’re already seeing disruptions in immunisation services, threatening outbreaks of diseases for which there already exists a vaccine, such as polio, measles and cholera.”
Many more newborns, children, young people and pregnant mothers could be lost to non-coronavirus related causes if national healthcare systems, already under great strain, become completely overwhelmed. Likewise, many nutrition programmes are disrupted or suspended, as are community programmes for the early detection and treatment of undernourished children. “We need to act now to preserve and strengthen health and food systems in every country around the world,” the UNICEF adds.
Likewise, protecting ourselves and others through proper handwashing and hygiene practices has never been more important. But for many children, basic water, sanitation and hygiene facilities remain out of reach. Globally, 40 per cent of the population – some 3 billion people – still lack a basic handwashing facility with soap and water available at home, and this is as high as nearly three quarters of the population of the least developed countries (LDCs).
The UNICEF has also urged to ensure that every household, school, and health care facility has the means to a hygienic and healthy environment.
In education, an entire generation of children have seen their education interrupted. Nationwide school closures have disrupted the education of more than 1.57 billion students – 91 per cent – worldwide. The closure of schools also eliminates access to school-based nutrition programmes, driving malnutrition rates upwards. An entire generation of students could suffer damage to their learning and potential. “The socio-economic impact of Covid-19 will be felt hardest by the world’s most vulnerable children,” it adds.
Many already live in poverty, and the consequences of Covid-19 response measures risk plunging them further into hardship. As millions of parents struggle to maintain their livelihoods and income, governments must scale up social protection measures – providing social safety nets and cash transfers, protecting jobs, working with employers to support working parents, and prioritising policies that connect families to life-saving health care, nutrition and education.
The UN secretary-general has launched a Global Humanitarian Response Plan for Covid-19. 

Trans-Himalayan connectivity key for Nepal's development

The trans-Himalayan connectivity is key to Nepal's development and prosperity, according to deputy prime minister and defence minister Ishwor Pokharel.
Addressing one-day conference on ‘Friends of Silk Road Trans-Himalaya Connectivity Cooperation for Shared Prosperity’ organised by Trans- Himalaya Development Center in the Kathmandu, he said that connectivity along the trans-Himalayan region is crucial for Nepal's development.
Saying that adequate discussions were needed to ensure uniformity in understanding the connectivity before initiating any action, he said that the Belt and Road Initiative (BRI) is very relevant for Nepal’s development and Nepal should not get confused.
Referring to Chinese President Xi Jinping's remarks about helping Nepal transform to a land-linked country from a landlocked one by opening more customs points, Pokharel also argued that the trans-Himalayan connectivity will bring benefits not just to Nepal but to the whole trans-Himalayan region.
Saying that unprecedented interdependence among countries highlights the importance of connectivity, ambassador of China to Nepal Hou Yanqi said that better roads improve lives of the people. “Strengthening the connectivity in the Himalayan region, the most complicated topography in the world, is of great difficulty,” she said, adding that the challenge will however not stop them. “We made efforts with the hope to deepen the bilateral cooperation in the areas of trade, investment, cultural and people-to-people exchanges, and with the view to contribute to Nepal's development agenda that includes graduating from the LDC status at an early date.”
Former Foreign Minister Dr Prakash Sharan Mahat, on the occasion, also said that Nepal should be very serious to take maximum benefits from trans-Himalayan connectivity. While adding that identification of project was very crucial based on the expert opinions and the returns of investment, he argued that China could be a good source country for foreign investment to help Nepal generate employment at home and reduce the trade deficit with China.
Likewise, former Nepali ambassador to the US, Dr Shankar Sharma highlighted the need for carrying out more research in several key areas like the impact of railway project to the trade of Nepal and overall economy of Nepal, employment generation, improvement in people's day to day livelihoods and contribution of connectivity to the GDP.
Chair of Trans-Himalaya Development Centre Dr Kalyan Raj Sharma, on the occasion, said that a trans-Himalayan connectivity network will be the best option to end infrastructure gaps and development bottlenecks in the region.