The Secretary-General of the United Nations, Antonio Guterres, denounced what he called the strangulation of the world's rich countries and major energy companies in poor countries with greedy interest rates and high fuel prices.

This came at a leaders' summit that precedes the official launch tomorrow, Sunday, of the Fifth United Nations Conference on the Least Developed Countries, which will be hosted by the Qatari capital, Doha.

"Our global financial system was designed by rich countries, to benefit them greatly," Guterres said.

"While you are deprived of liquidity, many of you are deprived of access to capital markets due to greedy interest rates," he added in remarks addressed to poor countries.

Guterres stressed that rich countries should provide $ 500 billion annually to help countries, which he described as stuck in vicious circles that impede their efforts to strengthen their economies and improve health and education.

The conference on 46 countries classified as among the least developed in the world is usually held every 10 years, but it has been postponed twice since 2021 due to the Corona pandemic.


Scarcity of resources and debt problem

The Secretary-General of the United Nations also denounced the way richer countries treat poorer ones, and said that "economic development becomes difficult when countries suffer from scarcity of resources and are mired in debt, while they still suffer from historical inequities and an uneven response to Covid-19."

Guterres stressed that "combating a climate catastrophe that you did not cause in any way is difficult when the cost of capital is so high" and the financial assistance received is "a drop in the ocean."

"The giant fossil fuel companies are making huge profits, while millions in your countries are not able to secure their own food," he added.

He noted that poorer countries were left behind in the "digital revolution", while the war in Ukraine raised food and fuel prices.

A number of presidents and ministers denounced the terms of financing the least developed countries, whose debts have increased more than 4 times over a decade, to an estimated amount of $50 billion in 2021.

Doha work programme

Richer countries have pledged hundreds of billions of dollars to help poorer countries tackle climate change, something Guterres stressed the United Nations would "keep pressing" to achieve.

The proposals known as the "Doha Work Program" provide for the establishment of a system that helps countries facing a hunger crisis in light of drought and high prices.

The plan also calls for efforts to help least developed countries attract external financing and reduce interest rates to mitigate the repercussions of their debts.


What are the least developed countries?

Since 1971, the United Nations has recognized the least developed countries as a category of countries that are extremely disadvantaged in their development for structural, historical and geographical reasons.

The least developed countries face greater risks of extreme poverty and being left behind than other countries.

The Committee for Development Policy uses 3 criteria to determine the status of LDCs:

  • Individual income (gross national income per capita).

  • Human assets (nutrition, health, school enrollment and literacy indicators).

  • Economic vulnerability (indicators of natural shocks affecting trade, physical and economic vulnerability to shocks).

The privileges associated with LDCs include advantages in the following areas:

  • Financing development efforts, especially grants and loans from donors and financial institutions.

  • A multilateral trading system, such as preferential market access and private transactions.

  • Technical support, especially with regard to generalization of trade.

What are the least developed Arab countries?

The United Nations Economic and Social Commission for Western Asia (ESCWA) classifies Sudan, Yemen, Somalia and Mauritania as least developed Arab countries.

These countries suffer from chronic challenges and difficult economic conditions due to conflicts and the absence of political stability.

One of the characteristics of least developed countries is low per capita income and poor social and human development.