Minister calls for aid, trade, debt relief

Minister for Foreign Affairs and International Cooperation Jakaya M Kikwete on Tuesday expressed concern at the continuing fall-off in levels of Overseas Development Assistance (ODA) from donor countries.

Kikwete said that availability of ODA, long-term inward capital flows, and access to the technology markets of developed countries were "necessary pre-requisites" for development in countries like Tanzania.

Speaking at the 56th session of the UN General Assembly, he called on the United Nations to retain a development agenda at the heart of its objectives and activities in order to assist developing countries, such as Tanzania.

Kikwete also said that the flow of foreign direct investment (FDI) to countries like Tanzania left much to be desired.

"So far, the flow of FDI is not as we would have wanted and expected," he said, especially considering that Tanzania had done everything demanded of it to create "a financial, legal and institutional framework as attractive and competitive as one would find anywhere in the world."

"We have a sound macro-economic environment, there is political stability, good governance and democracy are vibrant, yet FDI flows are minimal," he said. "We are at a loss on what else we have to do."

The problem of external debt continued to be a serious threat to developing countries, according to Kikwete.

In Tanzania, he said, the government spent, on average, one-third of its budget on debt-sevicing, and a further third on salaries. This left only a third to maintain law and order, and provide basic social and economic services like health, education, water, communications and transport.

"This clearly underscores the fact that debt relief and debt forgiveness will go a long way towards enhancing government capacity to discharge its duties," he added.

Kikwete welcomed moves towards faster debt relief but was concerned that, despite these efforts, "the scope and magnitude of debt continues to build up to dangerous proportions." He, therefore, called for "more surgical measures" to deal more effectively with this crippling problem.

Ready access for developing countries to the technology and markets of developed countries could contribute immensely towards the alleviation and eventual eradication of poverty, the Tanzanian minister stated.

He said Tanzania was encouraged by initiatives like the Africa Growth and Opportunities Act (AGOA) of the US (which allows over 1800 products from 35 countries of Sub-Saharan Africa to enter the US duty and quota free) and the Cotonou Agreement between the European Union and African, Caribbean and Pacific (ACP) group of countries, which allows duty free and quota free entry to the EU of all ACP goods except armaments.

Accessing the financial, scientific and technological resources available in developed countries was crucial for accelerating growth and development in the Third World, he added.

Kikwete also pledged Tanzania's support for the multilateral war on terrorism and called for increased efforts to reform the workings of the UN Security Council. In particular, he called for its permanent and non-permanent members to be distributed on an equitable georgraphical basis, and for Africa to have two seats in the permanent category.

"As the continent with the largest membership of the organisation, such a representation is well-deserved," he added.