71st Trade and Development Board Meeting of UNCTAD

Mr. Chair,

     The Holy See would like to express its gratitude to UNCTAD for the organization of the 71^st Session of the Trade and Development Board. This represents a valuable occasion to address key emerging challenges and opportunities, particularly in the digital economy, as well as to track progress on the activities undertaken by the Organization. 

     UNCTAD plays a key role in combating poverty and promoting sustainable and inclusive growth that reduces the ever-widening inequalities within and among States. In particular, it focuses on addressing the needs of developing countries. Despite these efforts, inequalities still persist, exacerbated by an economic system that prioritises “the identity of the more powerful, who can protect themselves, but tends to diminish the identity of the weaker and poorer regions, making them more vulnerable and dependant”.[1]

     Eradicating poverty in all its forms is unfortunately beyond the capacity of many developing countries, which are compelled to divert scarce and precious resources towards the repayment of unsustainable debts. Indeed, in many countries facing such circumstance, there is a notable discrepancy between the proportion of government expenditure allocated to debt repayment and that allocated to essential services, including education, healthcare and social protection. It is therefore imperative that the international community takes a radical and transformative action on debt, including by lowering interest rates, extending repayment periods, and even considering debt forgiveness, in order to achieve the goal of a world without poverty by 2030.

     The digital economy can offer an opportunity to lift millions out of poverty by providing access to global markets, improving education, and fostering innovation. However, we must also recognize that these benefits are not equally distributed. Many developing countries are struggling to participate in the digital economy. The digital divide, if left unaddressed, risks further entrenching inequality and leaving those in vulnerable situations even further behind.

     Additionally, in the fight against poverty and under-development, investment facilitation is vital to ensure that resources flow efficiently to the areas where they are most needed.[2] In this regard, three important elements should be highlighted.

     Firstly, it is imperative that business practices are promoted in order to ensure that investment contributes not only to profit, but also to the well-being of society. Indeed, the economy cannot be detached from its moral connotations.[3] Any economic activity and business practice must serve the interests of each and every person. In this respect, there is a duty upon business and governments alike to give full consideration to the ethical dimensions when seeking solutions to contemporary challenges.[4]

     Secondly, it is necessary to streamline administrative procedures and reduce costs and uncertainties to avoid deterring potential investors. In this regard, it is of the utmost importance to implement analogous and more efficient mechanisms to reinforce bureaucratic and financial transparency, with the objective of fostering investments and promoting sustainable development.

     Thirdly, a clear and transparent regulatory framework ensures that investors can operate with confidence, while also protecting the rights of individuals and the interests of local communities. Without transparency, trust is lost, and the system falls into corruption. Thus, a normative regulatory framework is needed at the national level in order to ensure such transparency.[5]

     In this regard, technical assistance and capacity building in all their forms should be provided to countries in these situations, to translate such administrative procedures and normative regulations into practice.

     This scenario underscores a sense of urgency to adopt a farsighted ethical approach to address the complex and interconnected nature of these crises and to promote a new multilateral governance that “serve[s] the interests of peoples and the common good of humanity.”[6]

Mr. Chair,

     The Holy See would like to take this opportunity to congratulate UNCTAD on its 60^th Anniversary. Sixty years ago, a sense of solidarity inspired us to build a better world in which prosperity was considered as essential for peace.

     Guided by this vision, States expressed their determination “to seek a better and more effective system of international economic co-operation, whereby the division of the world into areas of poverty and plenty may be banished and prosperity achieved by all.”[7]

     The Holy See remains committed to working with UNCTAD to this end, promoting meaningful dialogue and consensus-building among all countries for the integral development of each human being, where “all members of the human family are included in the search for the common good and can contribute to it.”[8]

Thank you, Mr. Chair.