Special Event

STATEMENT BY:

Mr Apolo Nsibambi,

THE RT HON PRIME MINISTER REPRESENTING
HIS EXCELLENCY PRESIDENT YOWERI KAGUTA MUSEVENI
OF THE REPUBLIC OF UGANDA

TOPIC:

REALITY: HOW CAN WE REACH THE 2015 INTERNATIONAL DEVELOPMENT GOALS?

The Chairperson

The International development goals are mainly to reduce poverty and increase industrial and agricultural output. If the Least Developed Countries (LDCS) are to eradicate poverty and other forms of underdevelopment, it is essential that we own up our persistent internal weaknesses and address them, inter alia, through acquiring accountable, visionary and democratic leadership. The leadership must also be countervailed by non-sycophantic and understanding followers, civil society and the private sector.

Owning up our weaknesses and addressing them assiduously and persistently is a pre-requisite for absorbing external assistance for meaningful transformation of our economies.

Unity of Least Developed Countries is another requirement for the Least Development Countries to face the intricate forces of globalization, which for example, demands free flow of goods and services across national borders. However, for the Least Developed Countries to be active participants in the global market, they require assistance from the developed partners to build their capacity so that they can produce goods and services competitively.

The main issues on the agenda of this Conference are aimed at the eradication of poverty, which can be divided into two broad categories:

The international support measure to address structural weaknesses which have constrained development in the Least Developed Countries.

The Least Developed Countries' own effort to mobilize domestic resources for development.

1. International Support Measures:

Uganda and other Least Developed Countries appreciate the assistance by the Developed Countries in their endeavor to fight poverty. Debt relief measures such as the Highly Indebted Poor Countries Initiative of which Uganda is a beneficiary, are part of the effort in this regard.

It is, however, our view that there are other measures, which our developed partners need to attach commitment to if the Least Developed Countries have to eradicate poverty. These measures include:

(i) Commitment by the Developed Countries to the agreed official development assistance target of 0.15% of their Gross Domestic Product. Some of our developed Partners who have met their targets have greatly contributed to the fight against poverty in the Least Developed Countries and it is appreciated. In the case of Uganda, absolute poverty level dropped from 56% in 1992 to 44% in 1997 and 35% in 2000. We attribute the reduction of absolute poverty to Uganda's visionary accountable leadership, which has enabled the polity to efficiently absorb and utilize the external support.

(ii) Debt relief measures beyond the current Highly Indebted Poor Countries Initiative such as debt waivers and debt for equity swaps should also be considered as they provide opportunities for the least Developed Countries to channel their resources to the economic and social needs of their Countries.

(iii) Enhanced market access schemes for the least Developed Countries' exports, is yet another important measure for improving the productive capacity of our Countries to eradicate poverty.

Some of the recent initiative includes the following:

European Union's "Everything But Arms" initiative.

The United States' African Growth and Opportunity Act allows specified Sub-Saharan Countries' products e.g. textiles, footwear, handicrafts to access the American market.

The Canadian Government's extension of duty free treatment to an additional 570 Least Developed Countries' products.

These initiatives are important and are commended. It is also our view that other industrialized Countries be urged by this Conference to grant duty-free market access for the Least Developed Countries' products.

2. The role of the Least Developed Countries:

Whereas it is the responsibility of each Least Developed Country to fight poverty, it is important to recognize our inherent weaknesses which either undermine the international support or which render us highly vulnerable. Some of the issues that the Least Developed Countries need to address include the following:

(i) Enabling Environment

The Least Developed Countries need to provide an enabling environment, which is internationally competitive. This implies instituting policies and legislations, which are conducive to business. This environment is necessary for rapid and sustainable economic growth.

(ii) Good Governance

Good governance is essential in order to address persistent internal and external conflicts. Conflicts destroy property; social infrastructure and scares investments and thus polities, which should be able to harness their resources to eradicate poverty, are instead pre-occupied with political and other forms of survival. In order to prevent conflicts, it is essential that leaders allocate scarce resources equitably and adhere to constitutionally reasonable tenure of office.

(iii) Ability of the Poor to Raise Incomes

Poor agricultural yields, unreliable rainfall, environmental degradation and lack of production and processing machinery are some of the major problems facing the farmers in the Least Developed Countries. Some of the possible solutions to these problems, which the Least Developed Countries have to focus on, include research in drought resistant and high-yielding crop varieties, affordable irrigation, provision of credit, improvement of transport network, power distribution and other infrastructure.

(iii) Quality of Life:

Poor nutrition; inadequately equipped health services; illiteracy HIV/AIDS pandemic; and low levels of industriousness and work ethic among a large segment of the population in the Least Developed Countries, have contributed to poor quality of life. It is, therefore, imperative that deliberate effort be made to channel resources to training with the view to address low productivity. There is also need to deliberately focus on levels of remuneration of the workforce whose contribution to the economy is of critical significance. Access to cheaper and affordable anti-HIV/AIDS drugs is equally of paramount importance in the eradication of poverty.

3. Is there International Commitment?

There is international commitment to eradicate poverty and it is appreciated but it is inadequate. The commitment by several developed Countries, which have contributed, significantly to Official Development Assistance, has accorded commendable relief to the Least Developed Countries as this initiative provided them additional resources for their development programmes.

Some of the debt relief measures beyond the Highly Indebted Poor Countries Initiative are testimony to the Developed Countries commitment to fight poverty. Examples are:

· The United Kingdom offered to cancel US$3 billion worth of trade debts owed to it by Countries completing Highly Indebted Poor Countries Programme.

· In early December 2000, the United Kingdom announced a special scheme to cover some poor countries, which have so far failed to qualify for Highly Indebted Poor Countries assistance. This scheme will involve a flat sum of US$ I billion worth of debts.

The Government of Germany agreed to write off US$ 5billion worth of trade and aid credits for the World's 30 poorest Countries, including borrowers graduating through Highly Indebted Poor Countries process. Gennany's total claims the poor Countries are estimated at US$ 6.1 billion.

The United States Congress in late October 2000 lifted its hold on funding for Highly Indebted Poor Countries and authorized the full United States contribution of US$ 435 million. It also approved an IMF accounting change allowing the Fund to use its gold reserves to underwrite an additional US$570 million in debt relief.

From January 1, 2000, Canada started applying a moratorium on debt payments of 11 Highly Indebted Poor Countries. Six more were to be considered once they demonstrated adherence to good governance. The 17 Countries owe Canada US$725 million.

Whereas the above initiative reflects commitment by the Developed Countries to fight poverty, there are inadequate areas that need to be addressed. For example, the Developed Countries are monopolizing intellectual property rights. The Least Developed Countries have to incur high costs in order to use patented technologies. Patented naturally existing life forms indigenous in some communities e.g. Neem tree with medicinal properties, also fall in this category.

While we recognize that researchers must be rewarded for their effort, the results of the research should not be too expensive. In the same vein, while the communities with naturally existing life forms have to derive benefits, they should at the same time make it possible for the whole world to benefit from life forms existing in their areas.

These topics are under discussion in The World Trade Organization. We therefore, urge The World Trade Organization to consider the plight of the Least Developed Countries and objectively finalize these matters.

The Collapse of the State Machinery in some African Countries

In some African Countries, the internal and external conflicts have become so intense that the State machinery has collapsed. Such a State has ceased to establish central control over its subordinate units. In other words, such a State has lost the attributes of territorial integration. Consequently, massive loss of life and property has occurred in the broken States. There cannot be any development in such a situation.

When such disasters occur, the international community has a fundamental responsibility to invest heavily in policing the broken State and also in creating a dialogue among the warring elites. We note that when Kosovo faced such a disaster, the international community responded speedily and invested a lot of resources in restoring peace and order. Unfortunately, this international response has been slow and low where States have collapsed in Africa.

Conclusion

The interests of the Least Developed Countries might appear to be in conflict with those of the Developed World. However, since all of us are committed to globalization and free flow of goods and services across borders, it is our global challenge to find mutually beneficial solutions to the problems that we face in the struggle to eradicate poverty.

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