United Nations Radio

A warning that a 10% reduction in demand for vehicles, electronics and textiles and clothing in the North, could reduce developing country exports by $95 billion - almost as much as annual Overseas Development Assistance -ODA flows.

The warning comes from the head of the UN body that deals with trade and development (UNCTAD) Supachai Panitchpakdi.

In a statement to the executive session of the UNCTAD Trade and Development Board, Executive Session, Panitchpakdi admits that while there are no definite statistics as yet, productive capacity and exports of developing countries will also be adversely affected:

"A fall in consumption and demand will also affect exports of commodities, whose producers are already suffering from lower prices, manufactured products and services. And what is very crucial, a global recession increases the risk of protectionism, as the prevailing mood is one of 'every man for himself'."

Panitchdaki says the flow of remittances, a key source of external finance for many developing countries, is also expected to decline in 2009, even though the magnitude of the decline is still open, and estimated to be between 1 to 6 per cent.

This is Donn Bobb reporting for United Nations Radio.

(duration: 49")