SECRETARY-GENERAL SAYS OBSERVANCE OF AFRICA INDUSTRIALIZATION DAY OCCURS AT TIME OF RISING HOPES FOR MUCH OF CONTINENT
Press Release
SG/SM/6402
OBV/22
SECRETARY-GENERAL SAYS OBSERVANCE OF AFRICA INDUSTRIALIZATION DAY OCCURS AT TIME OF RISING HOPES FOR MUCH OF CONTINENT
19971120 Following is the text of Secretary-General Kofi Annan's statement on Africa Industrialization Day delivered today in the General Assembly Hall:We gather on Africa Industrialization Day to raise public awareness and harness international support -- political, technical and financial -- for Africa's industrial development.
Industrial development is a key element of sustainable economic growth. It helps countries achieve important social objectives, such as jobs and equity. It creates opportunities for the integration of women. In rural areas, linked with agricultural development, it can help stem migration and relieve pressure on cities.
With industrial development, the continent can take decisive steps towards full-throttle competition in the globalized marketplace. But without it, as African leaders themselves declared last June in Harare, African economies will be condemned to persistent crisis, dependence on humanitarian relief and deepening poverty, despair and political unrest.
This eighth observance of Africa Industrialization Day occurs at a time of rising hopes for much of Africa.
Africa's economy grew by more than 4 per cent in 1996, the strongest growth rate in 20 years. An increasing number of countries are experiencing economic revival. The private sector has begun to play a dynamic role. Institutions of civil society are increasing both in numbers and importance.
Policy makers continue to pursue vigorous political, economic and social reforms. Good governance -- with legitimate power, the rule of law, predictable administration -- has become a major objective.
- 2 - Press Release SG/SM/6402 AFR/30 OBV/22 20 November 1997
Despite progress, performance in industry has been weak. Africa continues to be constrained by poor physical infrastructure, weak institutional capacity, inadequate regulatory and incentive systems, and a widening technology gap among nations. Thus it has been difficult for Africa to benefit fully from globalization and from the liberalization of trade, and to integrate fully into the world economy.
This year's Africa Industrialization Day focuses on the development of small- and medium-scale industries. Such enterprises are the backbone of economic activity in Africa. They are a major source of livelihoods and income.
In both the formal and informal sectors, small entrepreneurs play a pivotal role in alleviating poverty and promoting economic progress. Increasingly at ease with new technologies and niche marketing, they can respond quickly to changes and new opportunities.
But small-scale industries need support from governments and the international community. They require a favourable policy environment. They need to upgrade the skills of their workers, to improve the quality of their products, to find sources of financing and to gain market access. They need technology and the requisite physical infrastructure. They need partners -- partners from within and beyond the region.
In this light, I welcome recent initiatives by Africa's development partners to promote trade and investment with African countries.
The outcome of last month's World Trade Organization/United Nations Conference on Trade and Development (UNCTAD)/International Trade Centre high- level meeting on the least developed countries is very encouraging. With 33 out of 48 least developed countries, Africa stands to benefit greatly from the integrated framework adopted in Geneva, especially the market access facilities that have been announced.
The Alliance for Africa's Industrialization launched last year is another important undertaking, in particular its focus on partnerships with the private sector.
The United Nations system -- through the United Nations Industrial Development Organization (UNIDO), the United Nations Development Programme (UNDP), the Economic Commission for Africa and others -- will continue to support such ventures. UNIDO, as the only specialized agency dealing with industrial development, is already promoting technical assistance to small- and medium-scale enterprises. As you know, I am committed to a strong UNIDO.
- 3 - Press Release SG/SM/6402 AFR/30 OBV/22 20 November 1997
The work ahead will not be easy. There is "donor fatigue" toward Africa. Aid is declining.
As we move forward, Africa's leaders must rise to the occasion. Their commitment -- not only to getting the economic fundamentals right but to creating the broader conditions that will encourage investment and development -- is of vital importance. Only then will African industry take off. Only then will Africa find the path to sustained prosperity.
For my part, I renew my pledge that the industrialization of Africa will remain one of the top priorities of the United Nations, and that I will continue to be a strong champion of African industrial development. Thank you.
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