STATEMENT BY
H.E. MAHADHI J. MAALIM (MP), DEPUTY MINISTER FOR FOREIGN AFFAIRS AND
INTERNATIONAL COOPERATION OF THE UNITED REPUBLIC OF TANZANIA TO THE UNITED
NATIONS DURING THE SIXTH HIGH-LEVEL DIALOGUE ON FINANCING FOR DEVELOPMENT,
7
OCTOBER 2013
Theme: “The Monterrey Consensus, Doha Declaration on Financing
for Development and related outcomes of major United Nations conferences and
summits: status of implementation and tasks ahead”
Mr. President,
Distinguished delegates,
Ladies and Gentlemen.
We welcome the convening of this
important dialogue on financing for development and thank both the PGA and the
Secretary General for their introductory remarks on this subject.
My delegation aligns this statement
with the statements delivered by the Distinguished Delegates of Fiji, Benin and
Ethiopia speaking on behalf of the G77 and China, Least Developed Countries
(LDCs) and the African Group, respectively.
Mr.
President,
This high-level dialogue is taking
place while the UN and the entire world is focussing its attention on two
important processes: accelerating progress for achieving the Millennium
Development Goals (MDGs) within the remaining period of less than 800 days to the
2015 deadline, and discussions on the post-2015 development agenda. We wish to
underscore that the most important common denominator in the achievement of the
current MDGs and any future development agenda is the means of implementation particularly financial resources and
technology.
We note and commend efforts at both
national and international levels in mobilizing resources for financing for
development. Goal 8 of the MDGs was basically to facilitate creation of global
partnerships in mobilizing resources for development. It was clear that through
the reform of global trade and financial architectures further mobilization of
financial resources could be secured. Over 43 years, we have had the ODA target
of 0.7% of GNI of developed countries. To-date, only five countries have
achieved and/or surpassed this target.
The Monterrey Consensus which came
into being soon after the adoption of MDGs reaffirmed this target and
apportioned responsibilities to both national governments and international
community on resources mobilization. Among other things, developed countries were urged to make
concrete efforts towards the target of 0.70 per cent of their GNP as ODA to
developing countries and 0.15 to 0.20 per cent of their GNP to least developed
countries (LDCs). This undertaking was reinforced in various international
conferences, including the Fourth United Nations Conference on Least Developed
Countries, held in Istanbul in May 2011 and recently by the Rio +20 Conference.
Both the Monterrey Consensus and Doha
Declaration on Financing for development underscore the importance of domestic
resources mobilization in achieving economic growth, poverty eradication and
sustainable development. They also stress in this regard the value of national
ownership and leadership in developing policies and strategies that included
financing, good governance and accountability.
Mr. President,
Many developing countries have taken
bold initiatives to mobilize resources domestically. Most have established
ambitious national development strategies for the eradication of poverty and
achievement of sustainable development. They have established policies and
regulatory frameworks which have facilitated conducive environment for
attracting both domestic and foreign investments. Moreover, there have been
deliberate actions to strengthen good governance, rule of law, human rights and
democratic institutions. As a result of these efforts, the economies of
developing countries are growing steadily. This is justified by the fact that,
out of 10 global fastest growing economies, 6 are from Africa.
Despite these efforts, domestic
resources have proved to be insufficient in themselves; hence the continued
relevance of international resources mobilization for development, especially
private international capital flows in terms of Foreign Direct Investment
(FDI). The Rio +20 outcome document, entitled “The future we want” cannot be
more lucid in this regard.
The United Republic of Tanzania is
making satisfactory progress in this regard, with a steady broadening of its
tax base, whereby from July 2011 to March 2012 the tax revenue collection
amounted to Tshs 4,765.5 billion which is equivalent to around USD 3 billion.
Likewise, the Government continues with the implementation of the National
Economic Empowerment Policy (2004) by extending soft loan-terms through 20
empowerment funds, with particular emphasis on farmers, women and young
entrepreneurs.
Moreover, the implementation of the
National Micro-finance Policy (2001) is also underway with millions of
Tanzanians gaining access to financial services through banks, Savings and
Credit Cooperative Organizations (SACCOS); and community based organizations
(CBOs). Micro-finance services through mobile phone operators have given
millions of Tanzanians further access to such services.
We have put in place favourable
investment climate including the enactment of Public Private Partnership Act
(2010) and the designation of the Tanzania Investment Centre (TIC) as well as
the Zanzibar Investment Promotion Authority (ZIPA) as “one stop centres” for
prospective investors. We are putting in place mechanisms for speeding up the
time for setting up a business so as to attract more businesses and investment
in the country.
Despite the challenges in investment,
which in Africa is largely focused on extractive industry, we are witnessing
increasing investment in other sectors such as agriculture, energy, transport
and telecommunication, health and education. Indeed, my Government has
identified some of these sectors as the key drivers of development which under Big Result Now Initiative will
accelerate progress in achieving the Five Year Development Plan (2011/2012 –
2015/2016) as well as the Vision 2025 thus transforming Tanzania to a middle
income country. We believe that investments in areas such as agriculture,
through sustainable partnership, can uplift thousands out of poverty while
ensuring food security and nutrition for Tanzania and its neighbours.
Initiatives such as the Southern Agricultural Growth Corridor of Tanzania
(SAGCOT) are a step in the right direction for my country.
Mr.
President,
I have highlighted just few of the
issues raised in the Monterrey Consensus and Doha Declaration on financing for
Development. Indeed, the rest of the issues, namely international trade;
international financial and technical cooperation for development; external
debt; and systemic issues also deserve our undivided attention. We trust ample
time will be provided to address these issues, including those relevant to the
WTO Ministerial Conference to be held in Bali in December 2013, which we hope
will provide a way out of the current impasse on the Doha Round of multilateral
trade negotiations.
Tanzania will unrelentingly continue
to render its voice on this important subject.
I thank
you for your kind attention.
