SECRETARY-GENERAL SAYS HIGH-LEVEL PANEL ON AFRICAN DEVELOPMENT WILL INSPIRE AND ASSIST IMPLEMENTATION OF RECOMMENDATION ON PEACE AND DEVELOPMENT
Press Release
SG/SM/6751
DEV/2187
SECRETARY-GENERAL SAYS HIGH-LEVEL PANEL ON AFRICAN DEVELOPMENT WILL INSPIRE AND ASSIST IMPLEMENTATION OF RECOMMENDATION ON PEACE AND DEVELOPMENT
19981015 CHECK AGAINST DELIVERY The following is the statement given today by Secretary-General Kofi Annan at the opening meeting of the Panel of High-level Personalities on African Development:Let me start by thanking all of you for joining this Panel of High-level Personalities on African Development. I know most of you agreed to come at relatively short notice. I am grateful for this clear indication of support for the efforts of African countries to work for peace, stability and sustainable development.
This Panel serves as the Secretary-General's "think tank" on critical issues of African development and provides advice on actions to be taken towards an environment conducive to sustainable development. Members also have the specific responsibility of advising and assisting me on the effective implementation of the United Nations New Agenda for the Development on Africa in the 1990s and mobilizing political support for the United Nations System-Wide Special Initiative on Africa.
And so, this forum provides a timely and important opportunity for high-level experts of diverse background and experience -- from Africa and from other regions -- to exchange views on development challenges and opportunities on the continent. Your voices will provide a valuable source of proposals and ideas.
Six months ago, I submitted a report to the Security Council on "the causes of conflict and the promotion of durable peace and sustainable development in Africa". Since then, the Security Council has been working actively on the implementation of my recommendations on ways of addressing conflict situations. Last week, I submitted the same report to the General Assembly, but this time with special emphasis on the economic aspects. I was greatly encouraged by the positive response. Many countries have not only expressed their solidarity with Africa; they have also indicated how they intend to translate it into action.
I have not only continued to encourage African countries to assume greater responsibility for building durable peace and promoting sustainable development; I have also urged their development partners to provide the necessary support.
African countries bear the burden of the negative consequences of the Asian financial crisis. The cost of the collapse in commodity prices is equivalent to 15 per cent of the value of Africa's 1997 exports. We do not yet know for sure how this will translate into the real economy. We do know that prospects for commodity-dependent economies have deteriorated significantly, placing in jeopardy fragile recoveries.
These developments further underscore the urgency to make more decisive efforts. Last month, I convened an informal meeting with the foreign ministers of the Development Assistance Committee of the Organisation for Economic Cooperation and Development (OECD). I drew their attention to the urgent need to take actions in five areas: increasing the volume and improving the quality of official development assistance (ODA); converting remaining bilateral official debt into grants for the poorest African countries; providing more flexibility in the implementation of the Heavily-Indebted Poor Countries (HIPC) Debt Initiative so as to increase the number of beneficiary countries; maintaining open markets for African products; and encouraging private investment in Africa.
These five action areas were unanimously endorsed. Many countries of the Development Assistance Community have informed me of the concrete steps they have taken.
The general reactions of this Panel to the report will help inspire and assist the implementation process at the intergovernmental level in the Security Council and the General Assembly, as well as within the United Nations system. Your views will be particularly helpful to the meeting of heads of organizations and specialized agencies scheduled for the end of this month.
I am also hopeful that your deliberations will focus on the recommendations I have made with respect to external debt, the opening of international markets and harmonization of international and bilateral initiatives. If dealt with appropriately, these could greatly enhance the efforts of African countries to achieve sustained economic growth and sustainable development.
As my report tells you, I strongly believe that long-term solutions to conflict situations in Africa require a comprehensive approach linking peace,
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security, good governance, respect for human rights and the rule of law, and sustainable development.
In that context, I have presented to the Security Council and to the General Assembly an analysis covering a variety of causes of conflict, including political, ethnic, social and economic circumstances of situations in individual countries. In the same spirit, I have also made specific recommendations, both for responding to conflict situations, and for building durable peace and promoting economic growth.
Africa's external debt, estimated at $323.5 billion in 1996, is clearly unsustainable. It represented over 200 per cent of exports, and its servicing absorbed more than 16 per cent of export earnings. For many individual African countries, these indicators reveal an even grimmer picture.
The massive external debt burden has been a major obstacle to economic growth and sustainable development in Africa. In many countries, it is threatening the sustainability of reform efforts and disrupting the smooth functioning of the State. Available evidence suggests that the burden of external debt deters private investment -- domestic as well as foreign -- as it calls into question the credibility of, and confidence in, the economy.
My report recommends that creditor countries should convert remaining bilateral debt into grants for the poorest African countries. Bilateral debt represented about 40 per cent of total external debt in 1996. I have also recommended that financial institutions significantly increase access to the HIPC Debt Initiative for a larger number of African countries, so that sufficient resources could be released to enable them to attain substantial growth and sustainable development. I would urge you to look into these proposals and to recommend any actions that would facilitate their implementation.
Today's environment of liberalization, globalization and the regional trade agreements offers increased export opportunities in developed countries. However, globalization and the liberalization of factors of production, including the flow of capital across borders, have so far failed to benefit many African countries -- despite the enabling environment they provide.
African countries' products must gain greater access to the markets of developed countries. Specifically, more progress is needed to reduce further the average level of tariffs on Africa's major exports. I would encourage the major industrialized countries to place on the agenda of their next meeting the question of eliminating trade barriers to African goods -- with a view to adopting a common policy for implementation on a bilateral basis, as well as
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through the World Trade Organization. I hope you will explore the best avenue to achieve this.
With respect to initiatives on African development, a number of these have been launched in recent years -- both by African countries, and their bilateral and multilateral development partners. This is a most welcome development. It demonstrates that Africa is high on the agenda. It is particularly important that these initiatives be fully harmonized with African countries' own priorities. In addition to ODA and external debt relief, new and innovative mechanisms must also be explored to facilitate the access of African countries to adequate financial resources for development. This is particularly urgent at a time when world attention is mainly focused on the financial needs of emerging market countries.
Your deliberations on all these issues deserve, and will get, our fullest attention. They will be a source of inspiration and encouragement as we explore ways for the United Nations to work with African countries and their development partners towards a stronger Africa. On behalf of the United Nations, I wish you every success in your meeting.
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