NES Professor Natalya Volchkova took part in this year’s plenary meeting of the UN Committee for Development Policy, a subsidiary body of the Economic and Social Council (ECOSOC).
The plenary sessions covered various aspects of new development contexts and pathways, including financing for development, human and social development, and trade. Discussions also focused on advancing sustainable development beyond 2030, the role of the CDP in the High-Level Political Forum (HLPF), monitoring graduated and graduating countries, and the challenges faced by the LDC category. The President of ECOSOC, His Excellency Bob Rae, and Li Junhua, Under-Secretary-General for Economic and Social Affairs, set the tasks for the Committee for the next three years.
The main issue discussed was how to organize support for the least developed countries (LDC) in a world where long-standing institutions of multilateral cooperation are weakening. How can the global system, including the financial system, be changed so that aid reaches the LDC when and where it is urgently needed? What needs to be done with the Sustainable Development Goals to ensure they drive real development rather than remain purely formal?
On February 26 Natalya Volchkova gave a talk on how to design a smart trade policy to contribute to the sustainable development of the LDC. A key message of Natalya’s remarks was that exports are essential for economic growth in developing countries, particularly LDCs. Due to their limited domestic markets, these countries must rely on global trade to achieve economic convergence. However, despite having preferential trade access, many LDCs fail to leverage their access to global markets. The primary reason is not external restrictions but internal inefficiencies, such as poor infrastructure, bureaucratic obstacles, and a lack of skilled labor.
Another major theme is the shifting global trade landscape and the role of multilateralism. While the decline of global trade frameworks is often seen as a threat, Natalya argues that LDC have historically gained little from them. To mitigate uncertainty, LDC must implement a trading strategy that prioritizes reducing internal barriers, improving logistics, and fostering resilience. Foreign direct investment (FDI) plays a crucial role in bridging productivity gaps, and policies should focus on attracting investment to sectors where LDC hold a comparative advantage, such as low-cost labor and natural resources.
Finally, structural reforms are necessary for long-term economic stability:
“A "smart trade policy" should be built on key pillars: flat and transparent import tariffs, strong infrastructure, efficient governance, and an education system aligned with investor needs. LDC must develop a skilled workforce to attract investment and integrate more effectively into global markets”, Natalya noted.
The Committee for Development Policy, a subsidiary body of the Economic and Social Council (ECOSOC), advises the Council on a wide range of issues that are relevant to the implementation of the 2030 Agenda for Sustainable Development. The CDP meets once a year at the Plenary and subsequently submits its report to ECOSOC.