Statement by Mr. KiyoshiKodera,
Temporary Governor for Japan,
Ministry of Finance,
At the Annual Meetings of the African Development Bank
and the African Development Fund
Addis Ababa, Ethiopia
3 June 2003
1. Introduction Mr. Chairman, Mr. President,distinguished Governors, ladies and gentlemen: In addressing the 38th Annual Meeting of the AfricanDevelopment Bank and the 29th Annual Meeting of the African Development Fund, Iwould first like to express our gratitude to the Government of Ethiopia and thepeople of Addis Ababa, for their warm hospitality and excellent organization ofthe meetings with such a short lead-time.
In 2001 and 2002, the region's economy demonstratedan average growth rate of over 3 percent. A number of African countries havealso made progress in their macroeconomic management. Thus, in 2002, the averagefiscal deficit was contained below 3 percent of GDP and the average inflationrate declined to below 10 percent. In selecting the policies and actions needed toachieve the MDGs, each country must adopt a country-specific approach that isbuilt around its development strategies, such as the Poverty Reduction StrategyPaper (PRSP) to be developed and implemented with strong ownership. In otherwords, it is essential for each country to localize the MDGs, and then to selectand implement the policies and actions needed to achieve localized goals.
This past year has been an extremely difficult yearfor the Bank Group. While there has been some positive progress, such as theconclusion of the ADF-IX replenishment negotiations and its effectuation, theBank Group's activities on the whole have stagnated due to the disturbances inthe headquarter country. In such an adverse environment, however, pursuant tothe two GCC recommendations the Bank Group has made a temporary relocation fromAbidjan to Tunis without interrupting its core business, such as borrowing anddisbursement, and succeeded in restoring its functions almost fully by the endof May. So, I would like to express our high appreciation to the President andStaff for their efforts to meet this unprecedented logistical challenge. We are most encouraged by the fact that the BankGroup has continued to promote its financial and business reforms throughoutthis period to bring positive results, such as the strengthened financial baseand brighter medium-term prospects. The past year has seen progress in two other areas,and this should also be commended. First, an improvement in thePerformance-based Allocation Framework in the ADF-IX. Second, a decision topublish robust and measurable indicators of development effectiveness in allproject documents of the Bank.
The relationship between Japan and Africa wasdistant both geographically and historically. Yet, for the last several years,Japan has been high up on the list of ODA to Africa. Our bilateral ODA to thisregion remains in the neighborhood of 800 million US dollars a year. Also, later this year, inviting heads of state andcabinet-level officials from Africa and other countries, Japan will host theTICAD III with United Nations organizations, the GCA, and the World Bank -- fromSeptember 29 to October 1. This conference will mark the 10thanniversary of the TICAD process. Throughout the TICAD process, Japan has insistedthat two points are essential to Africa's sustainable growth. One is theownership by African countries of their development process. The other is thepartnership of the international community. We find it encouraging that suchthinking is reflected in the basic philosophy of NEPAD. However, there are someconcerns: the level of participation in NEPAD varies by country, and tangibleresults from NEPAD are yet to be seen. Two weeks ago, our Prime Minister Junichiro Koizumiannounced Japan's initiative for cooperation in Africa. The initiative focuseson poverty reduction through sustainable economic growth, in addition to"human-centered development" and "consolidation of peace". For sustainable economic growth, increasedagricultural productivity and reduced dependency on food imports should be highon the agenda. Japan will attach importance to agricultural aid. In line withthis policy, we will continue to help develop and disseminate the "New Ricefor Africa (NERICA)". With regard to debt relief under the HIPCInitiative, Japan has already made the biggest contribution among the donorcountries; and we are prepared to provide the heavily indebted poor countries inAfrica with debt relief amounting to approximately 3 billion US dollars. In closing, the international communityis looking at how African development and poverty reduction will be implementedin an extended partnership. Thank you. |