Wednesday, 13 September 2006
At the grand opening ceremony of this year Commonwealth Finance Ministers’ Annual Meeting yesterday (12), President Mahinda Rajapaksa reiterated his call to LTTE to renounce terrorism and entre in to negotiations in order to promote peace and development for the benefit of all segments of Sri Lankans. He emphasized the significance of peace and security and added that it is of paramount importance and the world is united on the need to combat terrorism.
“Apart from their (terrorism) adverse humanitarian, social and economic consequences, they undermine the prospects of a meaningful globalization and regional economic cooperation,” Mr. Rajapaksa said. “We need to guard ourselves against the adverse fall-out of these clusters of challenges and risks. And in order to do so, there is an urgent need to further consolidate the on-going efforts of the international community with effective policies and activities, within a framework of medium and long-term strategies,” he further stated.
Commenting on the theme of this year meeting – Agenda for Growth and Livelihoods, President Rajapaksa explained that growth, sustainable livelihoods and poverty reductions are closely linked and stand on one another. Hence, a considerable weight to pro-poor growth approach covering all segments of poor is essential.
“We are living in a world that gripped by many serious challenges. To respond to these, we need to take effective action at all levels. And in doing so, the presence of the Commonwealth and other regional organizations provides us with strength, as they can act as the catalysts of change and provide support to our efforts to promote sustainable economic development,” said the President conveying his best wishes for the success of deliberations in the coming two days.
Highlighting the significance of the discussion themes the Secretary General Mr. Don McKinnon of the Commonwealth Secretariat stated, “ …… The first is representing the interest of small states. We now have the final version of the review of the conclusion of the 2000 task force. The second is in promoting changes to increase the voice and representation of developing countries at the International Monetary Fund (IMF) and World Bank. …..”
He stressed the regional countries will be more and more strong if we have Commonwealth consensus around such matters as these two.
Prime Minister and Minister of Finance of St. Kitts and Nevis Hon. Dr. Denzil L. Douglas and Minister of Finance and Development Planning of Botswana Hon. Mr. Baledzi Goalathe delivered very delighting speeches at this ceremony.
The delegates will discuss the need to give their countries the opportunity to develop their own policies for economic progress rather than having prescriptive solutions imposed upon them.
President Mahinda Rajapaksa officially declare the opening of the meeting sessions yesterday evening at the exclusive ceremony held at the Cinnamon Grand Hotel, Colombo.
The full speeches of H.E. the President and Hon. Secretary General of Commonwealth Secretariat are below.
Speech of His Excellency Mahinda Rajapaksa, President of Sri Lanka At the Opening of the 2006 Commonwealth Finance Ministers’ Meeting on 12th September 2006 in Colombo, Sri Lanka
Distinguished Heads of Delegation and delegates, Your Excellencies, Members of Public and Private Sector Organizations and of Civil Society, and dear School Children. I thank you for your presence here today, at the opening of the 2006 Commonwealth Finance Ministers’ Meeting. I extend a warm welcome to you all.
The Annual Commonwealth Finance Ministers’ Meeting is a platform for pushing forward the development policies conceived by the Commonwealth. I thank all Heads of Government and Finance Ministers of the Commonwealth countries for selecting Sri Lanka for this year’s meeting.
The theme of our meeting this year, - “An Agenda for Growth and Livelihood” – is of special significance for us all. This meeting is preceded, as you know, by a meeting of senior officials on an equally important theme – “The Reform of the Aid Architecture”.
Let us recall the Commonwealth Principles set out in the 1971 Summit in Singapore. They emphasized “the need to foster international peace and security, democracy, liberty of the individual and equal rights for all; the significance of eradicating poverty, ignorance and disease; and the need to oppose all forms of racial discrimination”.
We are proud to be members of an organization that upholds these principles and tries to promote democracy and good governance, human rights, the rule of law, gender equality, and sustainable economic and social development.
We the commonwealth countries account for a large share of the world’s output and trade. As such, the group of commonwealth countries plays a significant role in shaping the process of economic and social development in the world. The Secretary General of the Commonwealth and his staff in the Commonwealth Secretariat, have worked hard to contribute effectively to this process.
Our Commonwealth is a community of 53 sovereign, independent states which range from the wealthy industrialized countries to some of the ‘Least Developed’ countries of the world. We represent about 30% of the world’s population.
Our membership is rich in its diversity. It is composed of many cultures, races and traditions. It also shares certain common features, such as the widespread use of English as a common language. Our countries have similar administrative and legal systems, and we share a common interest in certain sports activities. These all flow out of our sharing of a common historical experience.
Our meetings in Colombo this year are held against a back-drop of several major risks and challenges which affect us all in common.
The first of these is the escalation of oil prices. This has resulted in severe adjustment burdens in oil importing countries such as Sri Lanka. Added to this is the uncertainty about the future of oil prices in general.
The second is the difficulty of economic planning in the environment of large economic imbalances among the major players in the world, and developments in the world financial markets especially in regard to interest rates and rates of exchange.
The third of these is the fact that the failure to stabilize the increasing interest rates will have an adverse impact on growth prospects, while adding to the cost of servicing commercial debts.
The fourth is the need to ensure adequate and reliable resource flows to developing countries to ensure sustainable economic growth and help achieve the Millennium Development Goals. We note that the delivery of aid has unfortunately been below expectation.
And the fifth is that in addition to these economic issues, the world is also faced with increased threats of terrorism. Apart from their adverse humanitarian, social and economic consequences, they undermine the prospects of a meaningful globalization and regional economic cooperation.
In this regard, peace and security is of paramount importance, and as the world is united on the need to combating terrorism, I reiterate my call to LTTE to renounce terrorism and enter into negotiations to promote peace and development for the benefit of all segments of our citizens.
We need to guard ourselves against the adverse fall-out of these clusters of challenges and risks. And in order to do so, there is an urgent need to further consolidate the on-going efforts of the international community with effective policies and activities, within a framework of medium and long term strategies.
It is precisely against this background that the theme of this year’s meeting, - “Agenda for Growth and Livelihoods” assumes significance. And, as developing countries represent a large constituency of the Commonwealth, it is appropriate to comment on the theme of the meeting from the perspective of these countries.
Growth, sustainable livelihoods and poverty reduction are closely linked, one to the other. Our development strategies, whether developed in consultation with external development partners or otherwise, must therefore give considerable weight to a pro-poor growth approach, covering all segments of the poor.
Agriculture is the backbone of many developing countries and the main source of income generation in the rural economy. Any agenda for development and growth should focus on the improvement of the agricultural sector, and aggressively pursue measures and methods to optimize its productivity. Poor farmers need help, as they have to encounter difficult challenges.
Farming is a dignified profession, and its dignity needs to be protected. In this regard let me quote from Robert Knox the 17th century British traveler. Referring to the Sri Lankan paddy farmer of his time, this is what he says in his book “Historical Relations of the Island of Ceylon”: “Take a Plough-man from the Plough and wash off his mud and he is fit to rule a Kingdom”. We say in our own Sinhala language – “Mada Soda Gath Kala, Goviya Rajakamatada Sahe”.
Public investment is a vital factor for rural development. For, it is the lack of infrastructure facilities such as better roads, transport, irrigation, communication and electrification that has stood in the way of growth in the rural economy. Though the many issues affecting the development of remote areas have been identified and discussed, such areas have continued to remain poor. In Sri Lanka’s current development strategy, therefore, we have launched a programme of action to speed up the process of rural economic growth in our country.
Urbanization is also a challenge faced by many countries. It has impacted on urban – rural disparities, and resulted in problems relating to the living conditions of the urban poor. In the set of recommendations we will be making at the end of our deliberations, I will propose the establishment of a Commonwealth Fund to address the human settlement issues of the urban poor.
I re-iterate once more that the timely delivery of aid in support of home-grown policies and strategies is essential, for countries to make progress towards reaching the millennium development goals.
Sri Lanka as a nation has enjoyed independence for more than 50 years. Many have been the challenges that we have faced successfully. For example, the tsunami of December 2004 put our country through a massive test of resilience and commitment. We came out of it, stronger than we were before.
Our vision now is to re-engineer our economy to create economic opportunities for the people to move out of poverty. We do so through a policy framework that aims to build a new economy with social justice.
There is no one single answer to the problems of economic growth and development. At the same time, sound macro economic policies, sectoral reforms, institutional strengthening, infrastructure development, better access to information, and investment in research and development, are the essential pre-requisites of growth and sustainable livelihood.
We also need to promote a partnership between the public and private sectors where necessary and appropriate, as a driving factor for economic growth. An effective and positive role for civil society, also adds significant value to the development effort.
As I said before, we are living today in a world that is gripped by many serious challenges. To respond to these, we need to take effective action at all levels. And in doing so, the presence of the Commonwealth and other regional organizations provides us with strength, as they can act as the catalysts of change and provide support to our efforts to promote sustainable economic development.
I wish the Commonwealth Finance Ministers’ meeting and the Senior Officials’ Meeting all success. And in a context in which we are also preparing for the Annual Meetings of the World Bank / IMF in Singapore, I know that the discussions in Colombo will also contribute to more constructive cooperation between North and South.
I now declare the Annual Meetings open. Thank youPresident calls on LTTE to give up terrorism
At the grand opening ceremony of this year Commonwealth Finance Ministers’ Annual Meeting yesterday (12), President Mahinda Rajapaksa reiterated his call to LTTE to renounce terrorism and entre in to negotiations in order to promote peace and development for the benefit of all segments of Sri Lankans.
He emphasized the significance of peace and security and added that it is of paramount importance and the world is united on the need to combat terrorism.
“Apart from their (terrorism) adverse humanitarian, social and economic consequences, they undermine the prospects of a meaningful globalization and regional economic cooperation,” Mr. Rajapaksa said. “We need to guard ourselves against the adverse fall-out of these clusters of challenges and risks. And in order to do so, there is an urgent need to further consolidate the on-going efforts of the international community with effective policies and activities, within a framework of medium and long-term strategies,” he further stated.
Commenting on the theme of this year meeting – Agenda for Growth and Livelihoods, President Rajapaksa explained that growth, sustainable livelihoods and poverty reductions are closely linked and stand on one another. Hence, a considerable weight to pro-poor growth approach covering all segments of poor is essential.
“We are living in a world that gripped by many serious challenges. To respond to these, we need to take effective action at all levels. And in doing so, the presence of the Commonwealth and other regional organizations provides us with strength, as they can act as the catalysts of change and provide support to our efforts to promote sustainable economic development,” said the President conveying his best wishes for the success of deliberations in the coming two days.
Highlighting the significance of the discussion themes the Secretary General Mr. Don McKinnon of the Commonwealth Secretariat stated, “ …… The first is representing the interest of small states. We now have the final version of the review of the conclusion of the 2000 task force. The second is in promoting changes to increase the voice and representation of developing countries at the International Monetary Fund (IMF) and World Bank. …..”
He stressed the regional countries will be more and more strong if we have Commonwealth consensus around such matters as these two.
Prime Minister and Minister of Finance of St. Kitts and Nevis Hon. Dr. Denzil L. Douglas and Minister of Finance and Development Planning of Botswana Hon. Mr. Baledzi Goalathe delivered very delighting speeches at this ceremony.
The delegates will discuss the need to give their countries the opportunity to develop their own policies for economic progress rather than having prescriptive solutions imposed upon them.
President Mahinda Rajapaksa officially declare the opening of the meeting sessions yesterday evening at the exclusive ceremony held at the Cinnamon Grand Hotel, Colombo.
The full speeches of H.E. the President and Hon. Secretary General of Commonwealth Secretariat are below.
Official Opening Statement by theCommonwealth Secretary-General Rt Hon Don McKinnonat theCommonwealth Finance Ministers’MeetingColombo, Sri Lanka5.30pm,Tuesday, 12 September 2006
President Rajapaksa; Prime Minister Douglas; Commonwealth Ministers;other distinguished Heads of Delegation and guests; Ladies and Gentlemen.Let me first express my thanks for thewarm and generous welcome we havereceived from President Rajapaksa, the government and people of Sri Lanka.A little less than two years ago, through TV and Radio, I was calling on
Commonwealth governments everywhere to come to the aid of Sri Lanka andseveral others of our members in this region which had been struck by that dreadful tsunami.
The response was swift and generous.The Commonwealth has since turned its attention to improving natural disaster warning and responses. And I was very pleased to see some of this in the field not far from Colombo this morning. It reminded me – coming from the Pacific where we have more than a fair share of cyclones – that rebuilding shattered communities is extremely difficult and time-consuming andexpensive. It can also become politicised.That led me to think about my own two decades in politics including a decadeas a Minister. So often, politicians are criticised for taking decisions with an eye only to the short term.
But even if our decisions could be short-term in their scope and impact, we were always conscious of the long term. We would try to recognise the early trends and warning signs, calculate their consequences in the distant future, and think how best to act accordingly. If “long term view, short term decision-making” is a fair description of local and even national political life, it certainly does not characterise Commonwealth Ministerial meetings.
And as we know, Sri Lanka’s long-term decision-making of taking younger and new players into your national cricket eleven is leaving the rest of us shaking at the crease.So, occasions like the one on which we are embarking in the next few daysare a chance to take a long term view; to improve our vision by seeing issues through the lenses of others from all over the world; and to arrive at decisions with long term and far-reaching impact. Some of you, like me, will have arrived here on SriLankan Airlines. And some of you may also have seen the in-flight magazine in which I contributed an article. It conveys the essence of the message I want to make today. Your meeting here this week has the potential to change people’s lives fundamentally.
Commonwealth Finance Ministers have an impressive pedigree.When your predecessors met in Barbados in 1987, they were the first to consider seriously the possibility of cancelling debts that hung like millstones around the necks of low income countries. The idea seemed outlandish at the time – but the Commonwealth pushed it, far beyond its own circles. Our proposals led to the Heavily Indebted Poor Country Initiative in 1996. 10 years later,
about $120 billion of debt has been cancelled for 30 countries. Commonwealth Finance Ministers broke further ground in the ‘90s when they were the first to give full voice to the concerns of small states. With 32 of our 53 member countries having populations of less than 1.5 million people, our work with the World Bank on tackling the vulnerabilities and development challenges facing small states is ground-breaking. When 53 nations come together freely and equally, representing 30% of humanity, 25% of all countries, 20% of global trade, and 80% of all those on this planet living in poverty, then we have tremendous potential, and an obligation to speak up. Ladies and Gentlemen, the Finance Ministers’ meeting last year took place just a few days after the UN review of the Millennium Development Goals. It is also about one year since that landmark Gleneagles G8 Summit, with its breakthrough on debt and aid. This is a good time to take stock on what I termed at that time the need for, “delivery, delivery, delivery.” In the last few years, developing countries as a group have enjoyed a period of strong growth. This will be the fifth consecutive year. And over the period, virtually every developing region, including Africa, has performed well.
But despite per capita growth in Sub-Saharan Africa having turned positive over the past decade, most countries in the region are unlikely to meet the majority of MDGs, especially in health.
On debt, there has been progress as I said, including the Multilateral Debt Relief Initiative. But there are a number of implementation challenges. I am particularly concerned to avoid what I see as, “paying once and claiming credit twice” where donors’ debt reduction payments are claimed as part of aid flows when they should be additional to them. We also need to ensure that countries never again incur excessive debt.
The picture on aid is not as favourable. Although the headline aid figures for2005 will show a sharp rise, this is due to exceptional amounts of debt relief for a few countries. The underlying trend is falling well short of what is needed to meet the Gleneagles pledge. Yet we know – and our own country studies of Tanzania, Ghana, Malawi and Bangladesh confirm this – that there are many poor countries that could absorb and make excellent use of really substantial increases.
