Statement by the Hon. Masatoshi Wakabayashi, Senior Vice Minister of Finance, Japan, at the Thirty-Sixth Annual Meeting of the African Development Bank and the Twenty-Seventh Annual Meeting of the African Development Fund Valencia, May 29th, 2001 |
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1. Introduction Mr. Chairman, Mr.President, distinguished Governors, ladies and gentlemen: It is a great pleasurefor me to address the 36th Annual Meeting of the African Development Bank andthe 27th Annual Meeting of the African Development Fund. On behalf of theGovernment of Japan, I would first like to express our gratitude to our hosts,the Government of Spain and the people of Valencia, for their generoushospitality, and being the first to host the annual meetings as a non-regionalmember. I would also like to takethis opportunity to pay tribute to the Management and Staff of the Bank Group.For the past year, they have demonstrated a strong sense of responsibility andcommitment to their mission through difficult times. 2. Poverty in Africaand the challenges for the ADB Group Mr. Chairman: The biggest challenge forAfrica is poverty reduction. In the Sub-Saharan region, the lack of developmentin institutions and human capital hampers sustainable growth, and per capita GDPhas declined over the last thirty years in many countries in the region. Infact, 300 million people in the region, or nearly half the population, live onless than $1 a day. In addition, communicablediseases, such as HIV/AIDS, tuberculosis, and malaria, are making the situationeven more serious. Regional conflicts do not only affect the countries directlyengaged but the neighboring countries as well, effecting the most damage uponthe vulnerable people. Thus, the challenge forthe Bank Group is enormous as well as complex, making it all the more difficultto address. I would like to take thisopportunity to present the views of the Government of Japan on the challengesthe Bank Group needs to address in its fight against poverty. First, the BankGroup is encouraged to further improve its operations and strengthen its reformefforts. According to “theVision” announced in 1999, the Bank Group’s ultimate mission is to bringsustainable growth and to reduce poverty in Africa. It emphasizes agricultureand rural development as key priorities to accomplish this mission. The Bank Group isexpected to conduct its operations according to this Vision and to improve theeffectiveness of poverty reduction and the efficiency of its assistance. Toaccomplish this, focused resource allocations and the development of humanresources are necessary. Also, I encourage the Bank Group to strengthenpartnerships with other development organizations such as the World Bank and theIMF, while fully drawing upon its comparative advantage of its Africancharacter. Turning our eyes todeveloped countries, we notice that the activities of the multilateraldevelopment banks are increasingly exposed to the scrutiny of taxpayers. Thus,increased transparency and efficiency of the Bank Group’s operations will beindispensable to reaching successful agreement on the Ninth GeneralReplenishment of the African Development Fund. Second, the BankGroup needs to tackle the issue of loan arrears by some member countries. The arrears now amountingto 1 billion UA is not only a threat to the sound finance of the Bank Group butalso undermines the credibility of African countries within the internationalcommunity. The Bank Group hascontinued policy dialogues with the countries falling in arrears, and iscontinuing its efforts to address the issue, including the amendment of theAgreement Establishing the Bank. Japan supports theimplementation of these measures, as it reflects the Bank’s firm commitment toaddressing the issue of arrears. However, the real solution will require evenfurther efforts. I believe it is essential for the Bank Group to continuecountry-specific dialogue intensively with the concerned parties. Third, the BankGroup is expected to address the issue of Heavily Indebted Poor Countries (HIPCs). In order to addressthis issue, it is essential for the international community to join hands topromote debt relief under the Enhanced HIPC Initiative. In this regard, Japanhas already applied a 100% debt reduction to countries that qualify for theInitiative. This means Japan’s total bilateral debt reduction to the 19African countries that have reached their decision points would amount almost to2.6 billion US dollars. This is among the largest sums of debt relief ever madeby a single creditor country. I strongly hope the HIPCs and the Bank Group willcontinue their efforts to further implement the Initiative, so that they willlead to poverty reduction in HIPCs. However, such debtrelief can not be considered a solution in itself. Japan will continue toprovide assistance by taking a comprehensive approach that covers varioussectors, including health, education, trade, and private investment with a viewto middle- to long-term development in Africa. 3. Japan’scontribution to Africa Mr. Chairman: Earlier this year whenour former Prime Minister Yoshiro Mori visited Africa as the first JapanesePrime Minister to visit Sub-Saharan countries, he was sincere in stating: “The 21st century isthe century in which Africa will finally make big strides, and that there willbe no stability and prosperity in the world in the 21st Century unless theproblems of Africa are resolved.” In order to promoteAfrica’s own development in the region after the end of the cold war, Japansponsored the meetings of the Tokyo International Conference on AfricanDevelopment in 1993 and in 1998. These conferences have resulted in agreementsabout basic directions to take: a comprehensive approach that includes theestablishment of political stability; ownership by Africans themselves; and thebuilding of partnerships with members of international society. We, along withother donor countries, would like to listen to development strategies proposedby Africa itself, and to discuss how we might join Africa in making thesestrategies become reality. In this context, ministerial-level talks on Africandevelopment will be held in Tokyo this December. Japan has alwayshighlighted the danger of communicable diseases, which have had a severe impacton the African countries. Japan announced the “Okinawa Infectious DiseasesInitiative” at the G8 Summit last year, and promised to contribute a total ofUS $3 billion over the next 5 years. While this Initiative is steadily beingimplemented, theJapanese Governmentintends to make active use of it for Africa. Japan also providestechnical assistance and scholarship programs through the Policy and HumanResource Development Grant established at the Bank. Japan is prepared thisfiscal year to make a further contribution of US $1 million. I hope the Grantwill be utilized for reducing poverty, developing human resources, and buildingcapacity in the African countries. 4. Conclusion Mr. Chairman, Mr.President, distinguished Governors, ladies and gentlemen: In the global fightagainst poverty in Africa, the ADB Group is expected to play an increasinglysignificant role. To do this, it is essential for the ADB Group to carry reformmomentum and promote sound finance and efficient management even further.
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