STATEMENT BY
THE PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA
HIS EXCELLENCY BENJAMIN WILLIAM
MKAPA
AT THE THIRD UNITED NATIONS
CONFERENCE ON THE LEAST DEVELOPED COUNTRIES, (UNLDC III)
BRUSSELS, 14th MAY 2001
Mr.
President;
Your Excellencies Heads of
States and Government;
Distinguished Heads of
Delegation;
Distinguished
Representatives of International Organisations;
Distinguished Delegates and
Invited Guests;
Ladies and
Gentlemen.
On behalf of my delegation, I should like to thank His Majesty’s Government and the People of Belgium for the warm and friendly welcome extended to us since we arrived in this beautiful city of Brussels, and for the assistance and facilities put at our disposal.
I should also like to express my sincere appreciation to the European
Commission for agreeing to host this Conference. The support extended to the Least
Developed Countries in terms of financing their national level preparations and
participation in global pre-conference consultations is highly appreciated. This support has, I am sure, enhanced
the quality of participation by other LDCs, as it did to my own. This indeed is a practical reflection of
the European Union’s concern for the problems of LDCs, and their commitment to
work with us in addressing them.
Mr.
President,
Let me also take this opportunity to congratulate you for being elected
President of this historic conference, confident that you, and other members of
the Bureau, will guide us successfully to the end. I assure you of my delegation’s full
support and co-operation.
Mr.
President,
As already eloquently expressed by speakers before me, in spite of our
commitments at the two conferences held in Paris in 1981 and 1990 respectively,
the overall social-economic conditions in most of the least developed countries,
and in particular Sub-Saharan Africa, have continued to deteriorate. At those conferences we committed
ourselves to programmes for addressing the situation.
However, for more
than 20 years, meaningful progress in LDCs has eluded the whole of mankind,
notwithstanding the large amount of resources available globally, the current
unprecedented levels of scientific knowledge, and the number of global
resolutions and strategies intended to address the plight of LDCs. It is regrettable that the number of
LDCs has increased continuously from 25 in 1981, 42 in 1990 and 49 as we meet
here. Africa alone accounts for 34
of those countries, one having joined the group just before the
Conference.
Mr.
President,
The challenge for this third Conference should be to renew the hopes of
those living in LDCs by establishing effective and more result-oriented
programmes that will result in improving the lives of those of us in LDCs. That is why we are looking forward to
the outcome of this Conference, and to the action thereafter, with great
interest and with high expectations.
This should not be just another Conference, whose resolutions will join
many others collecting dust on shelves in important offices across the
globe.
Mr.
President,
The draft programme of action before this conference is a product of
considerable preparatory work undertaken at national, regional and global
levels. In this context, the seven
commitment areas under negotiation constitute the new framework of partnership
in addressing critical problems facing the LDC economies. The commitment to fostering a
people-centred policy framework; to promote good governance; to build human and
institutional capacities; to build productive capacities so as to make
globalisation work for LDCs; to enhance the role of trade in development; to
reduce the vulnerability of, and to protect, the environment; and to mobilise
financial resources for all these, are not only important for this Conference,
but are at the centre of country level programmes and actions in LDCs. What is required in this regard is to
reach objective consensus on the expected roles for all development actors,
namely LDCs, the development partners and the international community as a
whole; and to create a framework for follow-up, monitoring and
evaluation.
Mr.
President,
As part of the preparatory process, each LDC has prepared its Action
Programme for the period 2001 to 2010.
These action programmes were developed through a participatory approach,
making use of local consultative machinery for all stakeholders. These action programmes should,
therefore, be good pointers of what needs to be done in each LDC in order to
address respective problems for poverty eradication, as well as to promote
sustained economic growth and sustainable development.
Mr.
President,
The success of our collective efforts to ensure rapid economic growth and
development, and thus to improve the well being of our people depends, in a very
vital way, on our close co-operation, and the creation of a strong partnership
involving all the stakeholders, and our development partners. In this context, since the mid-1980s,
Tanzania has been undertaking deep and far-reaching socio-economic reform
measures, with the support of those development partners. Simultaneously, we embarked on political
reforms that saw Tanzania moving from a single to a multi-party democratic
dispensation.
The objectives of the economic reforms have been the removal of
structural rigidities so as to correct the existing macro-economic imbalances
and lay the foundation for sustainable growth. The political reforms were intended to
expand and entrench people’s freedoms and other human rights, and put in place
the framework for democratic and good governance, which we all agree is also
necessary in creating the correct environment for sustainable
growth.
Mr.
President,
An impression is often created that LDCs are not sufficiently committed
to political and economic reform. I
intend to show by the example of my own country that where circumstances,
domestic and external, are right, LDCs are not only ready to take painful
measures necessary to facilitate growth and development, but they do it with
commitment and diligence.
The government has adopted a strong reform programme that restored the
macro-economic balance. Major
progress has been made in terms of achieving Tanzania’s stabilisation objectives
as well as strengthening the role of the private sector in the
economy.
Achievements in structural reform include, among other things,
streamlining the civil service, privatisation of 67% of public enterprises so
far, and restructuring the financial sector. Many elements required for private
sector-led growth are now in place and the process of privatisation of utilities
such as power and water and other large monopolies is underway. The petroleum sector has been fully
liberalised and subsidies removed.
In the last five years, Tanzania attained a strong macro-economic
performance, with real GDP growing at an average of 4% year. The rate of inflation declined sharply
from over 30% to about 5% now, the lowest rate in more than 25 years. Foreign reserves have continued to
strengthen, guaranteeing over 4 months of imports of goods and non-factor
services, up from only 1.7 months in 1994.
Government revenues have increased by over 130% in the last 5
years.
Tanzania has tremendously improved the investment environment. We have focused on enhancing efficiency
of the government machinery, removing major policy-related and institutional
impediments to private investment.
In addition, policies and administrative systems governing access to land
by private investors have been reviewed to ensure transparent, timely and secure
access to property titles with mortgage and transfer rights. These changes are reflected in the new
Land Act of 1999.
The government has also restructured the financial sector, creating a
system that operates on market-oriented principles, efficient in mobilising and
allocating resources, and effective in fostering long-term growth. New foreign and domestic private banks
have been established.
Protection of foreign investments is a key and sensitive element to
investors. The government has taken
this into consideration and is a party to several regional and global
arrangements, which promote and protect foreign investments. We are also members of the Convention
Establishing Multilateral Investment Guarantee Agency (MIGA). Internally, we have established a
commercial court to facilitate prompt and fair adjudication of commercial
disputes.
The increase in Foreign Direct Investment to Tanzania is evidence that
things are improving. In 1997,
Tanzania was the sixth largest destination for inward direct investment in
sub-Saharan Africa. In 1994/95
Foreign Direct Investment into Tanzania was only USD 104.1 million. By 1998/99, it was USD 181.5 million,
and in 1999/2000 it was in excess of USD 200 million. These are investments by the private
sector, and would not be made if Tanzania were not making efforts to improve as
an investment destination. It is also significant that the Africa
Competitiveness Report launched at the World Economic Summit for Southern Africa
at Durban last year showed that Tanzania is among the countries with the highest
improvement in the indices of competitiveness and
optimism.
In addition to macro-economic stabilisation and structural reform, the
government has intensified its efforts to directly address poverty issues. In 1997 we adopted the National Poverty
Eradication Strategy, and in 1999 we issued “Poverty and Welfare Monitoring
Indicators,” as a basis for assessing poverty eradication programmes. Poverty reduction priority areas have
been identified in the context of the Medium-Term Expenditure Framework (MTEF),
and are also reflected in the budget.
The preparation of our Poverty Reduction Strategy Paper (PRSP) was
centred on the “Tanzania Assistance Strategy” (TAS) process, a broad-based
forum, including the government, civil society (including NGOs) and donors. It is a process underpinned by national
ownership of the development agenda and partnership with development
partners. The PRSP focuses on
specific policy targets for poverty reduction, social indicators, and
institution building.
Tanzania is largely a peaceful country, one of the few African countries
to enjoy an unbroken record of political stability and concord among its
people. We have vowed to keep it
that way. Our national unity and
social cohesion is a great advantage.
We have also focussed on improving governance, through among other things
the development of sectoral and national anti-corruption strategies, as well as
legislating for the establishment of a Commission for Human Rights and Good
Governance.
Mr.
President,
I have dwelt at length on what we have tried to do in Tanzania to show
how much we have conformed to what is believed now to be the correct approach to
development and poverty reduction. In spite of these efforts, achievements in
poverty reduction have at best been mixed. Progress in a number of macro-economic
aggregates, as I have stated, have been commendable. However, performance in social
indicators does not show the same positive picture. For example:
·
For all these efforts,
economic growth as measured by GDP has averaged about 4 percent for the past
five years, compared to an average of less than 2 percent prior to reforms. Nevertheless, this rate is still too low
for any meaningful transformation of the economy, and for stimulating effective
actions for poverty eradication.
The challenge remains on how to bring it to at least 8 percent if we are
to create a dent in poverty levels;
·
Nominal per-capita income
has increased slightly from US$ 161 in 1990 to USD 240 in 1999, and by this
criterion Tanzania remains a typical least developed country;
and
·
Social indicators remain
typical LDC. Infant mortality rate
is 90 per 1000 live births; under 5 mortality rate is 141 per 1000 live births;
on average only 54 percent of the population has access to safe water; adult
literacy is 87 percent for men and 82 percent for women; Gross Primary School
enrolment ratio is 77 percent for boys and 76 percent for girls, while Secondary
School enrolment in the relevant age group is only 6 percent for boys and 5
percent for girls.
Mr.
President,
The sluggish performance in the social sector, even with all efforts
taken by the Government in reforming the economy in accordance with all
conventional approaches, attests to the fact that a fresh approach is required
in addressing the problems of Tanzania and those of other LDCs in general. This again is what should come out of
this conference. As for us, we
think that the following should form the corner stone of this new
approach.
First, Tanzania and other LDCs in general should continue to assume a
leading role in facing the challenges of their economies. At the national level we should continue
to establish the appropriate policies and institutional frameworks that promote
economic growth to desired rates, and put vivid emphasis on poverty eradication
and in addressing the unsatisfactory achievements in the social indicators. It is also important for the LDCs
themselves to take all necessary actions to promote peace and good governance
within their nations and their regions.
Of equal importance is for our countries to deepen the required reforms,
taking into account specific conditions for each country. The objective should be to create the
basic conditions for domestic resource mobilisation and self-propelling economic
growth. We should take this to be a
pre-requisite for all other actions from within or from
outside.
Mr.
President,
The second important factor for positive achievements in the LDCs is the
nature, content and quantum of external support we get from our developed
partners. In order to improve our
performance in the economic indicators and to reverse the negative trend in
social indicators, our development partners should be ready to provide us with
significant, comprehensive and sustained support.
Significant increases in support by way of ODA and other non-debt
creating arrangements will make it possible for us to push the performance in
the economic aggregates to levels that will be commercially viable, and at the
same time create the capacities and resources required to address poverty on a
sustainable basis. As of now gains
in economic growth do not have the capacity for releasing resources for social
consumption. We thus call upon the
international community to reverse the declining trend of ODA to LDCs, and to
honour their commitment to the LDCs of providing at least 0.20% of their GNP as
ODA to LDCs. This was a specific
commitment of the international community made at the Paris Conference in
1990.
In addition to having significant support from our developed partners, it
is very important to make sure that the contemplated support is offered in a
comprehensive manner covering all the priority areas established by LDCs
themselves. According to the Action
Programme for Tanzania, the priority areas for domestic interventions and
external support have been identified as follows:
·
Agriculture, to improve and
raise the standards of living of the rural poor, and ensure sustained food
self-sufficiency;
·
Manufacturing, to improve
competitiveness, increase linkages with other sectors, create jobs, transfer
technology, and increase export earnings, with focus on the processing of, and
adding value to, agricultural, livestock and fish
products;
·
Mining, to improve
access to technology and capital for artisanal miners; to control environmental
degradation, pollution of ground water and surface water; monitor encroachment
on farming and ensure that royalties are paid by miners for the benefit of the
domestic economy;
·
Tourism, to create
conditions for optimal utilisation of tourist attractions, in a sustainable way,
and with due regard to delicate ecosystems;
·
Trade, to provide free
access for commodities of interest to our countries and address the supply side
constraints particularly in reference to physical infrastructure and trade
support services;
·
Transport and
Communication, as key facilitating
sectors for productive, commercial, social and administrative
activities;
·
Water, to ensure
access to clean and safe drinking water with a view to meeting global
targets;
·
Education, to reverse the
declining enrolment at primary level, low transition rate to secondary and
tertiary levels, and improve the quality of education throughout the education
system, again with a view to meeting global targets; and
·
Health, to improve the
quality of health services for primary health care, preventive and curative
services and to fight the specific and very serious problem of HIV/AIDS, Malaria
and TB.
Mr.
President,
Tanzania welcomes
the enhancement to the HIPC Initiative and the progress being made to deliver
debt relief and poverty reduction.
It is noted that by the end of year 2000, 22 countries had reached the
decision point, a number that marginally exceeds the G7 Cologne Declaration but
somewhat short of earlier promises that 24 countries would reach decision point
by year 2000. However, of the 22
countries, only one has reached the completion point. Tanzania is pleased to note that the
IMF, World Bank and the African Development Bank have addressed the financing
requirements of the HIPC Initiative and have included in their mechanisms wide
scope for front-loading relief to accelerate poverty reduction. However, while these efforts are
underway there are indications that reinforce earlier worries about delays in
the provision of debt relief.
There is, for instance, evidence that conditionality is being applied
very strictly after decision point, with the multilateral debt relief being
delayed until the “donor community” are happy with progress on economic reform,
poverty reduction and an array of governance issues. Moreover, failure to include domestic
debt and contingent liabilities in debt sustainability analyses implies that
some countries may have to use HIPC savings to reduce domestic debt thereby
undermining the amount of HIPC resources available for spending on poverty
reduction. We therefore recommend
that:
·
Countries that have reached
the decision point should be moved to the completion point as soon as possible
on the basis of evident commitment to poverty reduction. Multilateral institutions should
therefore, simplify their conditionalities with a view to avoiding delay;
and
·
It should be recognised that
for HIPCs to achieve sustained growth and poverty reduction it will require, in
addition to debt relief, continued flows of concessionary aid, better and more
effective donor co-ordination in support of poverty eradication strategies,
access to developed countries’ markets for their exports, and other post-HIPC
arrangements.
Mr.
President,
In addition to significant and comprehensive support, that support should
be sustained for at least the ten years period of the programme to be adopted
here in Brussels in order to push the LDCs economies to levels with capacities
for exiting from poverty, and levels that can not allow
lapses.
Mr.
President,
Let me end by restating that the Brussels Conference is an opportunity
for the International Community to deal comprehensively and decisively with the
problems confronting the 600 million plus inhabitants of the world living in 49
least developed countries. However,
the outcome of this Conference will only be meaningful if it will include an
effective arrangement for implementation, follow-up, monitoring and review. This
was lacking in previous Conferences and we believe it contributed to the poor
performance in implementation. It is, therefore, the expectations of my
delegation that we shall establish that mechanism and create required capacities
at national, regional and global levels and that at the end all development
actors will respect the outcome of this Conference, and take it to be a global
programme for guiding all interventions in the LDCs.
Thank you.