Feasibility Study for a United Nations Technology Bank for the Least Developed Countries
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Feasibility Study for a United Nations Technology Bank for the Least Developed Countries United Nations Secretary-General’s High-Level Panel on the Technology Bank for the Least Developed Countries UNITED NATIONS United Nations Secretary-General’s High-Level Panel on the Technology Bank for the Least Developed Countries Feasibility Study for a United Nations Technology Bank for the Least Developed Countries Table of Contents Acknowledgements ................................................................................................................ 1 Executive Summary ................................................................................................................ 2 Chapter 1: Introduction ........................................................................................................ 10 A. Background and legislative mandate ........................................................................ 10 B. Overall approach and orientation ............................................................................. 17 Chapter 2: State of STI in LDCs and support by the development partners ........................ 20 A. State of science, technology and innovation in LDCs ............................................... 20 B. Support by the development partners ..................................................................... 25 Chapter 3: UN system activities in support of LDCs in the area of STI ................................ 28 A. United Nations system activities ............................................................................... 30 B. Other international organizations and initiatives ..................................................... 41 Chapter 4: Overall Structure of the Technology Bank ........................................................ 42 A. Science, Technology and Innovation-Supporting Mechanism .................................. 43 B. Intellectual Property Bank ......................................................................................... 46 Chapter 5: Activities of the Technology Bank during the Initial Phase ................................ 50 A. Science, Technology and Innovation-Supporting Mechanism .................................. 50 B. Intellectual Property Bank ......................................................................................... 68 Chapter 6: Institutional matters: Governance, Staffing, Cost Estimates, Funding and Financial Arrangements ....................................................................................................... 79 A. Background ................................................................................................................ 79 B. Comparative analysis of governing arrangements of selected UN entities.............. 79 C. Suggested governance and related arrangements ................................................... 81 D. Status and Authority ................................................................................................. 94 Chapter 7: Recommendations to the High-level Panel ........................................................ 95 Annex - I. The Istanbul Programme of Action and STI policies and Issues in LDCs .............. 98 Annex II - Excerpts from intergovernmental documents on the Technology Bank ........... 104 Annex-III - About the High-Level Panel .............................................................................. 109 List of Charts and Tables Chart 1 Number of patents filled by residents and non-residents in LDCs and selected developing countries ............................................................................................................... 22 Chart 2 International Agreements and Conventions with Technology Provisions .................. 28 Chart 3 Organizational structure of the Technology Bank ...................................................... 42 Chart 4 Number of LDC members of WTO reported as receiving TRIPS related assistance ... 47 Chart 5 Number of cooperation partners providing TRIPS related assistance ........................ 47 Chart 6 Organigramme of the Technology Bank ..................................................................... 85 Table 1 ODA for STI to developing countries and LDCs ........................................................... 26 Table 2 Comparing key aspects of governance arrangements of UNU, UNGC and SE4ALL .... 82 Table 3 Staff and non-staff cost estimates .............................................................................. 92 Feasibility study of the Technology Bank | 1 Acknowledgements This feasibility study was prepared under the overall supervision of the Chair of the Secretary-General’s High-level Panel on the Technology Bank, Romain Murenzi, and with the financial support from the Government of Turkey, by a team led by Khalil Rahman, Executive Secretary of the Panel (on loan from UNCTAD to UN-OHRLLS) assisted by Abdul Alim, Programme Officer and Tomas Gonzalez, Economic Affairs Officer at UN-OHRLLS and consultants George Dragnich, Andrew Hirsch, Barbara Aronson and Venketachalam Krishnan. Comments were received from Under Secretary-General Gyan Chandra Acharya of UN-OHRLLS; former Chair of UNCSTD Andrew Reynolds; and Oumar Diallo of UN-OHRLLS. Substantive contributions were made by Cathrin Stover of GÉANT, Kimberly Parker of the WHO, Jacob Assa, Economic Affairs Officer and Rita Ruohonen, Associate Expert at UN- OHRLLS and Guliz Sutcu, Senior Expert at the Scientific and Technological Research Council of Turkey (TÜBİTAK). Contributions received from the UN system organizations are gratefully acknowledged Feasibility study of the Technology Bank | 2 Executive Summary Science today is a global enterprise involving some 7 million researchers drawing upon a worldwide research and development (R&D) spending of over US$1,000 billion and publishing their findings in some 25,000 specialized journals per year. Significantly, increased investments in R&D by more-advanced developing nations have enabled several of them to scale the heights historically held by the global science, technology and innovation (STI) triumvirate of Japan, North America, and Europe – with outsized returns in terms of their economic performance. Emblematically, those developing countries which constitute the so-called emerging markets are the same ones identified by the Royal Society as “new emergent scientific nations.” 1 Against this encouraging trend, UNESCO has remarked: "By contrast, the group of least developed countries […] still plays a marginal role.”2 Indeed, by any measure – research spending, articles/citations in peer-reviewed journals, or patents applied for – LDC activity in the STI arena barely registers, and would be within the margins of a rounding error of the leading scientific nations. It is telling that the combined average of annual patent filings of all LDCs for which data is available is well below those of many individual developing countries. Left unaddressed, this striking STI disparity could leave LDCs perennially at the margin of the global economy. All the while, broader environmental and societal challenges -- climate change; water, food and energy security; loss of biodiversity; and demographic issues -- seem to have coalesced into an ominous storm cloud over their future. Without rapidly building up national capacities in STI, the goals of eradicating widespread poverty and removing daunting structural constraints on their economies and unleashing sustained growth and sustainable development will remain a distant dream for the nearly a billion people living in LDCs. Building STI capacities will not be enough; it should to be coupled with transfer of much needed technologies to LDCs on voluntary and mutually agreed terms and conditions. Dedicated and coordinated actions on these two fronts, building on and scaling up ongoing initiatives, will help initiate in LDCs a virtuous cycle of high growth, sustained social progress, and robust resilience against natural and human- 1 “Knowledge Networks and Nations: Global scientific collaboration in the 21st century,” The Royal Society, London, 2011, p. 5. https://royalsociety.org/~/media/Royal_Society_Content/policy/publications/2011/4294976134.pdf 2 "UN Science Report 2010: The Current Status of Science around the World," p. 5. Feasibility study of the Technology Bank | 3 induced episodes and, in the process, beneficially mainstream these countries into the world economy and the international trading, financial and technological systems. This is what the Technology Bank, a seminal initiative in the annals of the United Nations, will seek to contribute to. This feasibility study concludes that the Technology Bank is feasible with the expected benefit from its work far outstripping the cost of its operations. It will be a key instrument in ensuring that the LDCs are no longer left behind in achieving internationally agreed development goals, especially the Sustainable Development Goals (SDGs). With the offer of the Government of Turkey to host the Technology Bank, this initiative has already made a very auspicious start. This Feasibility Study recommends that the Technology Bank should be headquartered in Istanbul. Improved prospects of Official Development Assistance (ODA) to LDCs as reflected in the outcome of the Financing for Development Conference in July 2015, coupled with the opportunity provided by the Technology Bank to channel increased ODA to LDCs in the area of STI, also augur well for the funding prospects of the Bank.