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Doha-Qatar, November 29, 2008

President Mwai Kibaki in talks with President Stjepan Mesic', President of Croatia during the International Conference on Financing for development in Doha, Qatar.

President Kibaki addresses Doha International Conference

President Mwai Kibaki has reassured the international community that Kenya remains dedicated to the commitments of the Monterrey Consensus.

Towards this end, President Kibaki said Kenya has developed the Vision 2030 which is aimed at transforming Kenya into a newly industrializing, middle income economy providing a high quality of life to all its citizens.

Noting that the Vision requires massive resources to fully realize its objectives, President Kibaki said his Government is exploring innovative ways and means of mobilizing resources and welcomed support from its development partners in order to succeed.

President Kibaki said, "While significant steps have been taken on debt relief much more needs to be done. Kenya, like other developing countries, can only be on a sustained growth path if increased development assistance and debt relief, supplements our efforts".

President Kibaki was speaking today during the official opening of the International Conference on Financing for Development held in Doha, Qatar.

Recalling that the last International Conference on Financing for Development was held six years ago in Monterrey, Mexico, President Kibaki pointed out that both the developed and developing countries under the auspices of United Nations agreed to forge a new partnership for development.

"In the Consensus that was reached, developing countries took primary responsibility for their development through the mobilization and appropriate utilization of domestic resources. On the other hand, developed countries pledged to promote an international environment conducive for the development of poor nations and to increase Official Development Assistance to developing nations to enable them achieve the Millennium Development Goals, among other development objectives" said President Kibaki.

However, the Head of State said that at the midpoint since the Consensus, progress on the Monterrey commitments has been one of mixed blessings, saying some regions, particularly in sub-Saharan Africa, are clearly not on track and expectations under the Monterrey Consensus have not been met.

President Kibaki said, "Moreover, the commitment to increase official development assistance has not been achieved as expected. While levels of official development assistance, including new commitments, rose after 2002, they fell off beginning 2006. Indeed, the sustained increases in aid required to meet targets agreed at Monterrey have not materialized".

The President further added that the commitment to create an international environment conducive to the growth of developing countries has remained elusive following the collapse of the Doha World Trade Organization negotiations.


In the light of these setbacks, President Kibaki said that progress on the Monterrey Consensus must be cast in less than flattering light, noting that many people in the developing world remain steeped in poverty and other challenges of underdevelopment.

The President noted that in recent times, the situation in most developing countries has been worsened by the challenges of climate change, high costs of food and energy as well as the current global financial crisis.

"These dynamics, and the overall situation in most developing countries, underline the need for a review of the Monterrey Consensus and the strengthening of the international partnership on development" President Kibaki added.

In reviewing the Monterrey Consensus, President Kibaki emphasized the need for developed countries to increase concessional financing to developing countries saying that it remains an essential input for the realization of the MDGs and other development goals.

President Kibaki said, "The need for the developed countries to enhance official development assistance flows, particularly meeting the 0.7 per cent target, is therefore an absolute imperative. In addition to this, there is need for harmonization and coordination of available donor funding. This is critical in ensuring predictability, proper planning and the optimal utilization of resources in order to ensure greater aid effectiveness".

Pointing out that foreign direct investments play a critical role in spurring economic development in critical sectors such as infrastructure, President Kibaki said that many developing countries lack the ability to attract private investment flows required to finance expensive projects, which are fundamental to sustainable development.

"The United Nations system, in collaboration with other relevant stakeholders, should put together a plan of action here in Doha, aimed at enhancing the ability of developing economies to attract private and multilateral investments. In this regard, we should consider the introduction of international and national investment guarantee schemes, tax and other incentives. Revised risk rating arrangements should also be considered in order to direct larger private investment flows to developing countries that cannot attract such transfers through normal market mechanisms" , President Kibaki said.

While acknowledging the importance of debt relief initiatives under the Heavily Indebted Poor Countries Initiative and the Multilateral Debt Relief Initiative, President Kibaki said much more needs to be done noting that the resources released through debt relief are inadequate to enable developing countries to realize the internationally agreed development goals, including the MDGs.

Pointing out that the gap in the availability of net concessional financing remains far too large, President Kibaki called for urgent, bolder and more encompassing initiatives to solve the external debt problems of the developing countries in an effective, equitable and development-oriented manner.


In addition to debt relief, President Kibaki said, "There is need for comprehensive reform of the international financial architecture. The world needs to develop a strategic consensus on a comprehensive reform of the international financial and monetary system in order to facilitate rapid, balanced and sustained economic growth across the world. In particular, action is needed to increase the voice and participation of developing countries in the international financial institutions. This is essential for the legitimacy, ownership and effectiveness of these institutions".

Regarding the need to create a international environment conducive to the growth of developing countries, President Kibaki said developed countries should demonstrate the political will and commitment required to break the current deadlock in the Doha Round of trade negotiations and to work towards their resumption and timely completion.

In this regard, the Head of State said it is important to recognize the mandates contained in the Doha Ministerial Declaration, the World Trade Organization General Council decision of August 2004, and the Hong Kong Ministerial Declaration, in order to meaningfully integrate the developing countries into the multilateral trading system.

President Kibaki commended the Government and the people of the State of Qatar for hosting the conference and the United Nation's Secretary-General Ban Ki-moon for organizing the conference to review the implementation of the Monterrey Consensus.