Statement by H.E. Mr. Hemayetuddin, Foreign Secretary of Bangladesh at the High Level Segment of the Substantive Session of ECOSOC on "Creating an environment at national and international levels conducive to generating full and productive employment and decent work for all, and its impact on sustainable development" Geneva, 4 July 2006


Mr. President,
Distinguished delegates,
Ladies and Gentlemen,

At the outset I would like to associate my delegation with the statement made by H.E. the Minister of Labour of South Africa on behalf of the G-77 Chair.

It is a privilege to address this 2006 ECOSOC Session High Level Segment. I would like to congratulate you, Mr. President, for bringing together an assembly of some brilliant minds and visions at this session. It helps ECOSOC improve its contribution to economic and social development.

Mr. President,

My delegation has listened with great interest to the keynote addresses yesterday, and presentations that have articulated the urgency of the poverty challenge. We endorse the views expressed. Poverty is indeed the mother of all ills; its continued existence poses a clear and present danger to all our societies. The malaise has to be addressed in all earnestness.

During the last fifteen years, Bangladesh has grown at a rate of around 5% a year. We are projected to grow at more than 6% next year. Though this is robust growth, it is not enough. Alongside sound macroeconomic performance, Bangladesh's success in pursuing and implementing the MDGs has been widely praised. We have attained the two MDG goals of gender-parity in primary school enrolment and access to safe drinking water. We have also made significant strides in reducing infant mortality rates and consumption poverty. This is reflected in the June 26 issue of Newsweek International in its report on Bangladesh where the country was described as "one of the world's most amazing turnarounds", adding that "Bangladesh is the only South Asian country on track to meet its UN Millennium Development Goals of reducing poverty by half by 2015". This recognition of the Government's commitment to address poverty by one of the world's most reputed journals is indeed encouraging.

Mr. President,

According to the ILO, unemployment rate in South Asia stands at 4.7%. However, this masks the reality of underemployment, or under utilization of labour. Agriculture and the rural sector still remain the major sectors of employment for us. Employment in the agricultural sector is seasonal, and for a significant part of the year, agricultural workers need employment in other economic activities.

To address this problem, we need to create opportunities in other sectors, particularly in manufacturing and services. The key to achieving this is through the growth of the private business sector. We need to ensure that private sectors in our countries can become competitive and have meaningful market access, thus helping attain our development objectives.

Our reliance on aid is falling rapidly, from nearly 7% of our GNP in early 1990s to less than 2% in 2004. While there is continued need for assistance in capacity building and infrastructure development, what we need most is trade and foreign direct investment. Our investment policy is one of the best in our region. We are confident that the policies we are pursuing for achieving full and productive employment will succeed with the support from the international community.

Mr. President,

The Hong Kong WTO Ministerial Declaration and the follow up meetings leaves us less than optimistic about the prospects of concluding a development-friendly trade round. Currently, the LDCs, including Bangladesh, enjoy duty free access for its exports to EU market under 'Everything But Arms' initiative. The U.S. offers restricted duty free access to selected African and Caribbean countries under its AGOA and CAFTA programs. These systems of preferences must be made more comprehensive, more secure and predictable and easier to avail of. The Hong Kong Ministerial takes the first attempt to multilateralize duty-free access for LDCs. The developed countries agreed at Hong Kong to allow LDCs duty-free access for 97% of tariff lines, but it may very well be that the 3% exclusion list will contain most of the items that the LDCs are interested in. My delegation feels that full employment and sustainable development will remain elusive for the LDCs if the Doha Round concludes without ensuring unfettered market access for LDC products.

Mr. President,

I turn, next, to the issue of short-term movement of service providers, not just for employment but also for its impact on economic development. Bangladeshis working overseas remit over 4 billion dollars every year. Experts are emphatic that mobility of labour makes economic sense: numerous studies have shown that labour mobility can help improve economic efficiency in both source and recipient countries.

Labour mobility nevertheless faces stiff opposition in the receiving countries, mostly in terms of stringent entry laws and political backlash. The key challenge before us is to change our mindset, recognizing that organised labour mobility benefits both the recipient and the source countries.

Labour mobility is part of the trade debate in services. At Hong Kong, the LDCs expected a breakthrough in the negotiation on mode IV - the movement of unskilled and semi-skilled labour. Our collective efforts should focus on facilitating labour mobility on terms acceptable to all.

Mr. President,

Employment generation is at the core of our development and poverty reduction strategy. The Government's efforts have been focused almost entirely in addressing the issue. Although still far from achieving the coveted goal of complete eradication of poverty, our own national efforts have produced some positive results. We have invested in developing human resources. With 140 million people in an area of 55,000 square miles, the challenge for the Government is formidable by any standard. And yet, we do take pride that we are among the world's largest functioning democracies, have attained self-sufficiency in food, reached a GDP growth of over 6% and now calling for trade rather than aid.

Mr. President,

Finally, my delegation reiterates the commitment of the Government to continue our efforts for full and productive employment, work that is decent, and working environments that enable workers to develop their potential. We also express our interest to work with other members of the United Nations to fulfil the conditions needed for sustainable development.

I thank you, Mr. President.

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Ministry of Foreign Affairs, Dhaka, Bangladesh. Tel: (880-2)9562862, Fax: (880-2) 9555283, E-mail: webmaster@mofabd.org
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