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Address to Board Members by Netherlands Alternate Governor 0

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Address to Board Members by Netherlands Alternate Governor 0 Address by Mrs Agnes VAN ARDENNE-VAN DER HOEVEN Netherlands Alternate Governor and Minister for Development Co-operation The Netherlands as delivered to Members of the Board of the African Development Bank Group Tunis, 7 February 2006 President Kaberuka, Distinguished Executive Directors, Vice Presidents, Members of the Board, Members of staff, Ladies and gentlemen, It is a great pleasure to address this informal meeting of the Board of Executive Directors of the African Development Bank, here at the Temporary Relocation Agency in Tunis, where we are enjoying such splendid surroundings and such warm hospitality. These are exciting and important times for us all: international development is high on the political agenda and so is Africa. A new spirit of mutual cooperation is emerging . As the British Prime Minister Tony Blair said at Gleneagles: "It isn't the end of poverty in Africa, but it is the hope that it can be ended." The growing international consensus on Africa and renewed energy in the Bank will reinvigorate the Bank’s mission to furthering development in Africa. I have full confidence that president Kaberuka will accept the enormous challenges and can lead this Bank in this process. The year 2005 was marked by renewed international commitment to achieve the MDGs. The United Nations Millennium Summit, the G8 Gleneagles Summit and the Commission for Africa were crucial in advancing the cause of development in Africa as they addressed such key issues as doubling aid inflows, improving aid 1 effectiveness, closing the infrastructure gap, providing debt relief, and opening markets. The European Union has played a particular constructive role as a catalyst for the increased aid commitments and consolidating its integrated approach in a new Africa strategy that was approved by the European Council at the end of 2005. In all these initiatives the Bank’s contribution is being recognized as more and more central. The African Union is increasingly active in crucial matters regarding peace and security and good governance. There are positive developments and also the situation on the continent itself shows signs of promise. Democratic elections are becoming the norm. Tanzania and Burundi are just two recent examples. Africa has been swept up in a global wave of political reform that has greatly increased the number of nominally democratic countries in the world. African governments now reject single party constitutions and military rule. Only very few single party states are remaining, where this was the rule in the eighties. The number of military coups has decreased dramatically. Economic growth is accelerating, be it at varying rates. Perspectives on solutions for long running conflicts are gradually improving. In Sudan a long lasting North-South conflict came to an end and in Liberia democratic elections have been hold, resulting in the landmark appointment of a female President. However, the challenges are clear. Too many African countries are still widely off track for most of the MDG targets. The urgently required development of a more open global trading system remains unresolved. The WTO Ministerial Conference in Hong Kong was disappointing, let me not beat around the bush on this crucial point. Without a much improved international trade regime, sustainable economic development threatens to remain beyond the horizon for large parts of Africa. We in the international community and African leaders alike, must therefore maintain the momentum, honour our commitments and uphold our promises. It is our shared responsibility to facilitate those developments that bring Africa a better future. 2 Political will, both in the developed world and in Africa itself, to meet the current commitments is a condition necessary for further progress in Africa. But let me stress that while both trade and aid can play an invaluable role in jumpstarting sustainable development, everything ultimately depends on domestic policies and institutions. Development starts at home, with implementation of programmes and policies – particularly in creating a conducive business climate both in the domestic and the international private sector. Therefore, to put things in clear terms: Africa must accelerate reform, the developed world must increase aid volumes and we, and as Member States and shareholder countries of this Bank, we are together, we must collectively improve aid delivery. It goes without saying that our improvements with regard to delivery of assistance should be matched by Africa’s record in improving governance in all its aspects. The Netherlands attaches great importance to the effort of generating additional resources for the MDGs and is therefore very supportive of the Multilateral Debt Relief Initiative. Reaching the MDGs requires a solid international development system, that needs strong IFIs, like the African Development Bank. Therefore donors should enable International Financial Institutions to play their central role in development. Moreover on this occasion I would once again urge donors to provide strong enough financial Instruments of Commitment. They must be enough as compensation to replace the foregone loan reflows and maintain the Fund’s ability to deliver on its commitments. Main features of Dutch policy on Africa In this connection, I would like to briefly touch on our national policy on Africa. The Netherlands currently allocates 0.8% of its GNP to poverty reduction, a solid 50% of which is allocated to Sub-Saharan Africa. Out of a total of 36 bilateral partner countries, 15 are in Africa. Moreover, special attention, both in terms of development co-operation and in terms of political, security and economic relations, is given to the Great Lakes region and the Horn of Africa. 3 Africa’s problems, as we have learned over the past decades, require a holistic approach. The Netherlands does recognise this fully and therefore co-operates at different levels and with a range of different partners, focusing on five priority themes: 1) promoting peace, security and stability through conflict management and prevention, 2) promoting good governance and good policy at every level; regional, national and local, 3) investing in people, mainly by improving reproductive health and education and combating HIV and AIDS, 4) promoting pro-poor growth through support for the private sector in Africa and finally 5) sustainable development, focusing on management of natural resources, environment and water. The Netherlands can and will make significant contributions to the transfer of specific knowledge and technology to developing countries, notably in the areas of water, energy and biodiversity. Also, special efforts are made when it comes to capacity building, investing in people and institutions. The African Development Bank is an African development institution, but at the same time a part of the global multilateral structure. Let me make it clear, in that context, that my country is committed to maintaining its position as a key donor to those multilateral financial institutions and UN agencies that are seen to be making a tangible contribution to its policy goals: focus on the MDGs, quality and effectiveness and results. Last year, our ODA effort amounted to 4.2 billion Euros. One third of this was bilateral, and one third of this went to multilateral institutions. Since the UN Summit in September last year, the Netherlands has been active to promote radical reform in order to achieve more effectiveness, both at Headquarters and in the field. Ladies and gentlemen, This brings me to the position of the ADB: Focus is the key message: define the institution’s strengths and weaknesses in relation to other partners. The Bank has been given clear mandates on water, infrastructure, 4 regional integration and economic and financial governance. To maximize effectiveness the Bank must be implement reforms, be selective, and explain its choices well. Action plans are only as good as their record of implementation. Last year was not only an important year with regard to the many international development meetings, it also brought forward a new president for the ADB. On this occasion I would like to reiterate my full support to president Kaberuka. President Kaberuka’s recent institutional reforms have been a bold and very welcome move into the right direction. In order to deliver, visibility in international forums is crucial. We applaud President Kaberuka’s remarkable progress in increasing the role of the African Development Bank, in debates about policies for Africa in Davos, Washington, New York, in Paris and Rome, and also on the continent I am sure. In order to deliver, field offices, with relevant expertise and with delegated powers to really make a difference, are key as well. My advice to you would be to consider all options, to continue learning and not to be afraid to adjust your original plans if you feel the end result can be better this way. Again, let us think about the end result. Again, let us remember whom our aid is meant to help. Implementation is one step, being able to show concrete results is another. Development results, as we all know, are notoriously difficult to measure. This has not stopped me at home from publishing for the first time ever a report to parliament on development results of my bilateral programs. As I owe this kind of reporting to our tax payers, I feel that the African population is entitled to learn more about actual results as well. They are the ones that should ultimately benefit from our (yours and mine) efforts. All the more reason to pay explicit attention to the quality and effectiveness of aid efforts. We have a mutual responsibility. Let me take the example of trust funds: I very warmly welcome the Bank’s endeavor to reform the current system of trust funds. By establishing multi-donor untied thematic trust funds, the administrative burdens of the present system can be reduced. But the donor community will have to follow suit and I can confirm that the Netherlands will continue to be a committed partner in this reform process.
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