Bandung, May 14 (AseanAll) — Amidst of a world situation characterized by geopolitical competition and economic fragmentation, developing countries need to continue to voice increased cooperation for mutual progress. This was conveyed by the Indonesian Vice Foreign Minister, Pahala Nugraha Mansury, at the High-Level Conference Commemorating the 60th Anniversary of the United Nations Conference on Trade and Development (UNCTAD) held in Bandung,Indonesia on May 14, 2024.
The event, which was also attended by Ambassadors of friendly countries, international organizations, Ministries/Institutions, universities and the general public, aimed to discuss the role of UNCTAD and identify cooperation opportunities that can be utilized by Indonesia.
In his keynote speech at the event themed "Charting a New Development Course in a Changing World", Vice Minister Pahala conveyed 5 main points that need to be considered in formulating a long-term global development agenda.
First, the need to strengthen economic integration and cooperation. The Vice Foreign Minister said that the number of trade barriers has increased almost 3 times since 2019. The increase could result in a 7% reduction in global GDP in the long run.
In particular, the Vice Foreign Minister expressed concern over the rise of trade barriers under the pretext of the environment or green protectionism. UNCTAD is expected to play a role in analysing these discriminatory policies and their negative impacts on developing countries.
Second, a just energy transition and economic transformation. The Vice Foreign Minister said that the energy transition from fossil fuels requires critical mineral resources owned by many developing countries.
The Vice Minister emphasized that developing countries must obtain maximum benefits from the processing of these mineral resources, through processing that can increase added value and make them an important part of the global supply chain.
To that end, Indonesia supports the establishment of the UN Secretary General's Panel on Critical Energy Transition Minerals (CETM). It is hoped that UNCTAD, as a co-lead in the panel, can bring the perspective of developing countries and ensure a balance between right to development and environmental sustainability.
Third, ensure access to finance and technology that supports the achievement of sustainable development and just transition. The Vice Minister said that developing countries need investment by 4 times until 2030 to achieve a net zero economy. For this reason, it is necessary to mobilize funding, both from the government and the private sector, including innovative financing.
The Vice Foreign Minister also conveyed the need for technology development support for developing countries, including for critical mineral processing, renewable energy development, and semiconductors. In this case, UNCTAD can provide support by providing experts and capacity building.
Fourth, build a stronger supply chain. The Vice Minister said the situation in the Middle East has caused supply chain disruptions that can trigger inflation, food insecurity, and decreased growth for developing countries.
Therefore, it is necessary to strengthen and diversify supply chains, including finding alternative sources of energy, food, and other commodities; technology development to support domestic production; and infrastructure development to strengthen connectivity.
Fifth, development cooperation. The Indonesian Vice Minister of Foreign Affairs conveyed the importance of development cooperation in achieving sustainable development through financing cooperation, capacity building, and technology development and transfer.
In this regard, UNCTAD can continue to play its role in strengthening development cooperation not only between developed and developing countries, but also within the framework of South-South cooperation.
"Sixty-nine years ago, in Bandung (at the Asian-African Conference), world leaders encouraged cooperation between nations for economic and social progress based on equality, sovereignty and common interests. We need to continue to encourage this spirit in the preparation of the future development agenda, "said Pahala.
UNCTAD, whose establishment was inspired by the spirit of the Asian-African Conference in Bandung, is expected to continue to support and voice various interests of developing countries.
One tangible form of cooperation between Indonesia and UNCTAD is the holding of a Workshop in Bandung on May 15, 2024 on the formulation of just and sustainable energy transition policies, which was attended by national and international participants from various backgrounds. The Ministry of Foreign Affairs will continue to consistently encourage UNCTAD to provide concrete support for development.