SPEECH BY HIS EXCELLENCY HON. MWAI KIBAKI, C.G.H., M.P., PRESIDENT AND COMMANDER- IN-CHIEF OF THE ARMED FORCES OF THE REPUBLIC OF KENYA DURING THE INTERNATIONAL CONFERENCE ON FINANCING FOR DEVELOPMENT, DOHA, QATAR, NOVEMBER 29TH - 2ND DECEMBER 2008.

Excellencies,
Ladies and Gentlemen,

Allow me, at the very outset, to express my compliments to the Government and the people of the State of Qatar for hosting this important conference. We are most grateful for the generous hospitality that has been extended to us since our arrival here in Doha.

I wish also to take this opportunity to commend His Excellency Ban Ki-moon, the Secretary-General of the United Nations, for organizing this conference to review the implementation of the Monterrey Consensus. It is my hope that this conference will mark an important step forward towards the achievement of our common goal of development and the creation of a secure and better world for all.

Excellencies,

As will be recalled, the International Conference on Financing for Development was held six years ago in Monterrey. At the Conference, both the developed and developing countries came together under the auspices of United Nations to forge a bold 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.

Excellencies,

At the midpoint since the Consensus, progress on the Monterrey commitments has been one of mixed blessings. Some regions, particularly in sub-Saharan Africa, are clearly not on track and expectations under the Monterrey Consensus have not been met. 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. Moreover, the commitment to create an international environment conducive to the growth of developing countries has remained elusive following the collapse of the World Trade Organization negotiations here in Doha.

Accordingly, progress on the Monterrey Consensus must be cast in less than flattering light. Many people in the developing world remain steeped in poverty and other challenges of underdevelopment. 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.

Excellencies,
Ladies and Gentlemen,

In reviewing the Monterrey Consensus, and in seeking to forge a stronger partnership on development, there are several considerations that require, in my view, our close attention. First, for the majority of the developing countries, concessional finance remains an essential input for the realization of the MDGs and other development goals. 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.

Second, foreign direct investments play a critical role in spurring economic development through capital outlays especially in critical sectors such as infrastructure. 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.

Third, while we welcome debt relief initiatives under the Heavily Indebted Poor Countries Initiative and the Multilateral Debt Relief Initiative, much more needs to be done. Indeed, the resources released through debt relief are inadequate to enable developing countries to realize the internationally agreed development goals, including the MDGs. The gap in the availability of net concessional financing remains far too large. The situation clearly demands urgent, bolder and more encompassing initiatives to solve the external debt problems of the developing countries in an effective, equitable and development-oriented manner.

Fourth, 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.

Fifth, in an integrated and globalized world economy, the developing countries are increasingly vulnerable to actions and policies originating in the developed countries over which they have no control. This is particularly true as regards the innovative and complex financial products developed and introduced in the markets of the advanced countries. There is clearly need for stronger regulatory mechanisms and greater transparency in the management of such new products and instruments in view of the recent impact they have had on global financial markets.

Finally, the 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, 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.

Excellencies,
Ladies and Gentlemen,

As regards my country, Kenya remains dedicated to the commitments of the Monterrey consensus. Indeed, we have developed the Vision 2030 which is our blue print towards transforming Kenya into a newly industrializing, middle income economy providing a high quality of life to all its citizens. We are acutely aware of the massive resources that are required to fully realize our objectives under Vision 2030.

Nevertheless, although we are exploring innovative ways and means of mobilizing resources, we will require the support of our development partners in order to succeed. Kenya, like other developing countries, can only be on a sustained growth path if increased development assistance and debt relief, supplements our efforts.

In conclusion, I wish to express my hope also that this conference will arrive at concrete positions that will re-energize the international community towards tackling challenges facing the developing world. The challenges are certainly surmountable. What is remaining is a genuine commitment among us all to create a better world of equal opportunities for all.

Thank You and God bless you all.