2006 Government of Rwanda and Development Partners Meeting 22-23 November 2006, InterContinental Kigali – Rwanda Draft Opening Statement by the UN Resident Coordinator in Rwanda Mr. Moustapha Soumaré, on behalf of Development Partners Your Excellency, President of the Republic of Rwanda, Right Honorable Prime Minister, Honorable Ministers, Excellencies, Members of the Diplomatic Corps and Heads of International Organizations Distinguished Guests, Partners in Development, Ladies and Gentlemen. INTRODUCTION Mr. President, from the outset, I wish to take this opportunity to express our appreciation of your exceptional leadership and your strong support for a continued dialogue between your government and the development partners towards sustained and equitable development in Rwanda. I would also like to thank you, Honorable Minister James MUSONI, for your leadership in organizing the Sixth Annual Government of Rwanda and Development Partners Meeting (DPM). I am pleased and humbled by the opportunity to address, for the second time, such a distinguished audience and to make this statement on behalf of all of Rwanda’s Development Partners. On a personal note, I am particularly delighted to resume my functions of Resident Coordinator of the United Nations System in Rwanda. As you may know, I have spent seven months on detachment as Research Director for the Secretary General’s High Level Panel on UN System-Wide Coherence in the Areas of Development, Humanitarian Assistance, and the Environment. The work has been both challenging and enriching, and my experience here in Rwanda has proven very valuable in completing this assignment. Excellencies, Ladies and Gentlemen, Over the past twelve months, we have all worked hard and succeeded in making substantive contributions to the objectives agreed upon since our last DPM meeting – For this, I wish to congratulate both the government and development partners. As is the case in any development endeavor, the development program embarked upon by the Rwandan Government with our support is a continuous 2006 DPM – UN RC Opening Statement 1 of 10 process. As such, I am sure that you’ll agree with me that despite the many achievements, much remains to be done. We are therefore gathered here again this year, to take stock of what has been achieved and how we will work together to address the remaining challenges through dialogue, with mutual accountability and with a sharp emphasis on achieving results that tackle poverty head-on. The agenda over the next two days offers an opportunity for all of us to review major achievements and constraints in development processes, assess the challenges that have come about, and deliberate on policies and strategic priorities for Rwanda’s development. Excellencies, Ladies and Gentlemen This year, the Government of Rwanda proposes that we focus on “Long-Term Investments for Economic Growth and Poverty Reduction”. We welcome this theme for it emphasizes the government’s commitment to reduce poverty and achieve economic development through long-term investments. This policy direction, embedded in Rwanda’s Vision 2020, is further justified and supported by your recent statement, Mr. President, when you reiterated in September 2006 that Rwanda’s goal is to become a middle income country by the year 2020. Keeping in mind the principles of dialogue, mutual accountability, and pro-poor development, certain key questions arise: • First: How do we ensure that long-term investments in Rwanda effectively put an end to poverty and offer a better life for all? • Second: What do we do to make sure that the fruits of economic growth are shared by all members of Rwandan society and that all Rwanda’s people can contribute to the nation’s progress? • Third: How should the government, development partners, private sector and civil society each fulfill their various responsibilities and commitments vis-à-vis the country’s development policies and programmes and stand accountable for their actions? Mr. President, in a sense you anticipated these reflections when during a speech at Columbia University last year, you asked us all to: Quote “Collectively agree that development is liberation from want and from fear, so that all people[s] can live dignified lives. All people[s], not some.” Unquote These questions and your call, Mr. President, require that we look carefully at our theme of long-term investment for economic growth and poverty reduction. 2006 DPM – UN RC Opening Statement 2 of 10 Perhaps we should consider how investment, investors, and interventions will contribute to the development outcomes set out in the MDGs and Rwanda’s Vision 2020: • Rwanda needs the right kind of investment: long-term, predictable public or private sector finance with clear and transparent terms and conditions which are fair and can be publicly monitored and reported. • Such investments should fund development interventions which can clearly be shown to be appropriate, efficient and effective. Poor interventions waste scarce human and financial resources: a luxury Rwanda cannot afford. • The right kind of investments will only come from the right kind of investors and the right kind of investment partnerships. Whether investors come from among the development partners, from the private sector or from civil society, investment partnerships need to be nurtured and carefully managed. This is where dialogue, mutual accountability and a strong focus on results comes in. But investment, investment partnerships and interventions can only succeed in the right kind of environment. I think we all know what this environment looks like: • it requires far-sighted leadership and national commitment – something Rwanda already enjoys to a very high degree; • it requires sound policies and a robust legal and institutional framework, where Rwanda is making good progress; and • it requires well-developed human and institutional capacity, which Rwanda is struggling hard to develop. In aiming for rapid growth, it will be important to keep working on these fundamentals to be sure that momentum is maintained – and in an ever upward direction. Excellencies, Ladies and Gentlemen, My hope, therefore, is that our discussions over the next two days will help to develop a framework that can ultimately provide for the successful implementation of national development policies and strategies. Allow me at this moment to highlight some of the achievements and challenges in key development sectors in Rwanda. MACROECONOMIC PERFORMANCE With regard to Macroeconomic Performance, we are pleased to note that there has been increasingly sound macroeconomic management in Rwanda throughout the PRSP I period. The period saw better tax administration, controlled fiscal deficits, and sound monetary policy, resulting in controlled inflation and unprecedented debt relief. Growth has averaged 5.6% over 2002-05, above 2006 DPM – UN RC Opening Statement 3 of 10 average by the standards of sub-Saharan Africa. We must therefore work to keep growth on an upward track, which will require some changes in the structure of the economy, first in agriculture and later in the service sector. The Government of Rwanda has made significant progress in undertaking profound Public Financial Management (PFM) Reforms. 2006 has seen 220 public accounts trained and the Government has endorsed the PFM Action Plan, drawing a comprehensive roadmap for its implementation and a clear legal framework in the Organic Budget Law. Such reforms are necessary to establish transparent and accountable practices, which in turn, contribute to the overall improvement of macroeconomic performance. Nonetheless, let me stress that, without more pro-poor critical interventions, sound macroeconomic management might not be sufficient to support growth and poverty reduction in a situation where a rapidly growing population is supported by limited arable land. It is thus important to successfully implement reforms in order to enable the Government to attract and absorb increasing levels of aid, while investing in the productive and social sectors, and further developing sound family planning policies. This brings me to the review of the PRSI and to the preparation of the second generation PRS. PRS I REVIEW AND PLANNING Throughout 2006, the Government of Rwanda and its Development Partners have been focusing on the elaboration of the Economic Development and Poverty Reduction Strategy (EDPRS) in an exemplary participatory process. An independent evaluation of the first PRS, combined with joint sector self evaluations, is providing indispensable guidance for the elaboration of the EDPRS. The EDPRS needs to serve as a vehicle for integrating Rwanda’s national political vision of unity and prosperity with the necessity to reduce poverty, enhance equity, and provide broad based growth for all. Consultations with poor and socially vulnerable groups thus need prioritization in order to develop relevant pro-poor policies and programs and to build a legal framework that protects the rights of all. And issues of gender equality need to be addressed openly if Rwanda is to maintain its reputation of being progressive in this area. We must also stress the need for the Long-Term Investment Framework (LTIF), which aims to bring about the development objectives articulated in Vision 2020, to be fully linked with the EDPRS in order to provide for coherent and complementary strategies. In finalizing the EDPRS, it is of utmost importance to ensure not only that we are faithful to the inspiring vision