GROUP OF 77
GENEVA

STATEMENT BY H.E. AMBASSADOR DELMER ORBIZO, (HONDURAS) ON BEHALF OF THE G77 AND CHINA, AT THE 11TH SESSION OF THE UNCTAD COMMISSION ON ENTERPRISE, BUSINESS FACILITATION AND DEVELOPMENT (Geneva, 19 23 February 2007)


Good Morning,

On behalf of the Group of 77 and China, I would like to congratulate you Mr Chairman for your election. 

Mr. Chairman

The G77 and China would like to pronunciate itself on the following items

On item 3 Improving competitiveness of SMEs through enhancing productive capacity

Overcoming supply-side constraints is of significant importance for development and helping developing countries better integrate into the global economy. Building productive capacities through increasing the capabilities, abilities and opportunities for developing-country firms to supply goods and services demanded by the world deserve close attention by this Commission and in UNCTAD's analytical work. The role of enterprise and that of entrepreneurs in building national productive capacities cannot be emphasised enough. They are important cogs in the wheels in building productive capacities. Efforts to develop a competitive SMEs sector and measures to unleash entrepreneurship talents in developing countries are crucial aspects of policy issues and development initiative that should be given due consideration in international debate.

In this regard, it is important that the Aid for Trade initiative include efforts at building productive capacities by embracing investment and technology transfer, in particular enterprise development dimension. The Group of G-77 and China agreed with the views of the Expert Meeting on Building Productive Capacities held in 2006 that strengthening supply capacities should be placed at the heart of national and international policies to promote sustained economic growth, wealth creation and poverty reduction in developing countries.

In addressing enterprise development, the UNCTAD EMPRETEC's programme has contributed to helping developing countries expand the pool of their entrepreneurs and SMEs. The Group of G-77 and China welcomed the recent efforts of the EMPRETEC's directors to strengthen regional networks of EMPRETEC centres such as through the EMPRETEC African Forum. The Group of G-77 and China also concur with the views that the benefits and usefulness of the UNCTAD EMPRETEC's programme be extended to include more developing countries and economies in transition. Development partner should see the program as an important vehicle to support developing countries SMEs effort and development to participate and integrate to global arena. They could also play an important role in this context through providing appropriate support.

Mr. Chairman,

Enterprise internationalisation such as through global value chains and business linkages is another crucial contributor to building productive capacities. It offers an essential channel for developing countries to improve competitiveness, linkage to the global economy and productive chains, including as global suppliers driven by the abilities of their enterprises to participate actively in international production system. The growth of outward FDI from developing countries, another key aspect of enterprise internationalisation, has been receiving increasing international discussion partly because of the South-South cooperation dimension as a significant proportion of such FDI goes to other developing countries. But less is known of the development impact potentials and in overcoming constraints that limit the capabilities of developing-country firms to engage effectively in the different aspects of enterprise internationalisation in building competitive enterprises, particularly SMEs. Equally less is known of how more SMEs from developing countries could be supported to be active linkage partners to TNCs, to invest abroad, to participate in global value chains and to help strengthen South-South cooperation. UNCTAD is well placed to carry out further policy and analytical work on these aspects of enterprise internationalisation in the context of building productive capacities.

On item 4: Efficient transport and trade facilitation to improve participation by developing countries in international trade

On item 5: ICT and E-Business for Development

On item 8: Other Business

Discussion on Ad-Hoc Expert Meeting on "Building Skills in Developing Countries: Training, Networking, and ICTs"

Thank you Mr. Chairman

(1) UNCTAD Report of the Panel of Eminent Persons (2006) Chapter 1., part D, paragraph 23, section g.

(2) http://www.oecd.org/document/6/0,2340,en_2649_33757_34227910_1_1_1_1,00.html