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World's Poorest Nations Need Technological Know-How to Reduce Poverty, says U.N.


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July 30, 2007 By

Foreign official aid has been much less effective than it should be because it does not recognize the essential role that technological change plays in sustained economic growth, a new UN Conference on Trade and Development (UNCTAD) report says.

High-income countries, such as those belonging to the Organization for Economic Cooperation and Development (OECD), almost all have programs to strengthen their own national innovation systems and to promote innovation among domestic businesses. But in poor countries the development of science, technology and innovation has been largely missing from the foreign assistance they receive from high-income countries, says UNCTAD's Least Developed Countries Report 2007.

The report, subtitled "Knowledge, Technological Learning and Innovation for Development", argues that such progress is as relevant in the poorest countries as it is in the richest. Technology acquisition in the least developed countries (LDCs) through international markets is currently weak. So aid has a major role to play in spurring technology transfer and in the development of the technological capabilities of domestic enterprises -- both firms and farms.

Donor priorities do not comply with these needs. Reported annual technical cooperation commitments for improving governance in LDCs in 2003-2005 were US$1.3 billion, while reported aid commitments for agricultural extension were only $12 million. While good governance certainly matters, it is difficult to see how it will be achieved unless a country has a vibrant economy which generates productive livelihoods for it citizens.

Aid for science, technology and innovation in poor countries is an essential component of aid which is not a handout, but a hand up, the report contends. Shifting the focus there could lead to a radical break with past aid failures.


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