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- 02/06/12: Remarks by Donald Steinberg, Deputy Administrator, US Agency for International Development - Beyond Victimhood: The Crucial Role of Marginalized Groups in Building Peace
- 02/02/12: Statement of Dr. Sarah E. Mendelson, Deputy Assistant Administrator for Democracy, Conflict, and Humanitarian Assistance, before the House Subcommittee on Africa, Global Health, and Human Rights - U.S. Policy toward Post-Election Democratic Republic of the Congo
- 01/20/12: Remarks by USAID Administrator Dr. Rajiv Shah at the Environment and Security Conference, Washington, DC
- 01/19/12: Remarks by USAID Administrator Dr. Rajiv Shah at the Brookings Institution, Washington, DC - U.S. Aid and Transparency for Global Development
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This is an archived USAID document retained on this web site as a matter of public record.
Statement as Delivered
by Andrew S. Natsios, Administrator
U.S. Agency for International Development
United Nations High-Level Dialogue on Financing for Development
New York, NY
June 27, 2005
Thank you, Mr. President.
Today, three years after the UN Conference on Financing for Development, its outcome – the Monterrey Consensus – has become the definitive framework for successful development. Developing countries and donors alike have embraced its emphasis on good governance and domestic ownership of development strategies, while trade and private investment are widely recognized as essential.
In setting out the principles of the New Partnership for African Development (NEPAD), African leaders are linking poverty eradication, sustainable growth, global integration, and good governance. We, in the United States, are enthusiastic about NEPAD and are providing support to the initiative.
For its part, the United States has increased Official Development Assistance even beyond President Bush’s Monterrey pledge – U.S. assistance increased from $10 billion in 2000 to $19 billion in 2004 – a quarter of the OECD total.
However, these ODA increases must be matched by increases in effectiveness and sustainability. Achieving the goals of the Millennium Declaration is not just about the mobilization of resources alone.
Countries that have proven their commitment to change and reform – that govern justly, invest in their people and maintain policies and institutions that support market-led growth will receive billions of dollars from the Millennium Challenge Corporation of the United States Government in coming years.
Too often, humanitarian relief has been separated from development and from achievement of the goals of the Millennium Declaration, as though they are not related to each other. In Africa – which has more fragile or vulnerable states than any other region – we must respond to the current food emergency or these countries will be destined for further instability and the achievement of their development goals will be even more difficult.
To assist states in crisis and conflict return to stability and get on the path to sustained growth, President Bush recently announced that we will provide an additional $674 million for humanitarian emergencies in Africa this year in partnership with the United Kingdom -- beyond the approximately $1.4 billion already committed.
By joining with socially-responsible private sector partners in our Global Development Alliance, USAID since 2002 has invested $1 billion in 290 public-private alliances in 98 countries – and thus leveraged more than $3.7 billion in total partner resources.
As a founder and largest donor of the Global Fund to Fight HIV/AIDS, Tuberculosis and Malaria, the United States Government provided $459 million to the Fund in 2004. The U.S. contribution for HIV/AIDS programs totaled more than $2.8 billion in the current fiscal year. In addition, we provide approximately $500 million annually for voluntary family planning and maternal health care in 60 countries.
Without sustained high rates of economic growth in developing countries, the achievement of the goals of the Millennium Declaration will be put at risk.
The United States leads the world in liberalizing trade and helping countries participate in negotiations, obtain commitments, and benefit from trade. The completion of the Doha Round, to which the U.S. is committed, could add $200 billion annually to developing countries' income and lift more than 500 million people out of poverty.
The U.S. and other G-8 countries have called for 100 percent cancellation of debt obligations owed to the World Bank, the African Development Bank, and the International Monetary Fund which will result in approximately $40 billion in immediate debt relief – and could reach more than $56 billion if all Heavily Indebted Poor Countries become eligible.
We recognize that the volumes of aid and other development resources must increase significantly. But if we are to continue the recent increases in ODA and assure the goals of the Millennium Declaration are achieved, we must also ensure aid effectiveness, sustainability and results.
There is ample evidence that ODA is not usually the limiting factor on national development. Development progress is, first and foremost, a function of country commitment and political will to rule justly, promote economic freedom and invest in people.
The Report of the UN Commission on the Private Sector and Development estimates that developing countries have $9.4 trillion dollars in private financial assets that cannot be fully mobilized for development, largely because of corruption and inadequate legal protections for property and contracts.
Competitive, well-regulated private markets are indispensable because they are the most effective institution ever devised for allocating resources efficiently, for fostering innovation, and for communicating information that helps consumers and producers make decisions. Regulatory frameworks should aim to build the public's confidence in private markets to protect property, enforce contracts, and generally respect the rule of law.
According to a World Bank study, in one developing country, it takes 203 days to register a business, while in yet another country, enforcing a contract takes 1,459 days. With barriers to business formation and entrepreneurship like this, businesses remain small and in the informal sector. There is no point in debating whether ODA should be $68 billion or $100 billion or $195 billion when the most basic policies for generating wealth are not in place.
A significant way that the UN can support development is by helping countries make and implement the right choices in governing well. The UN is well placed to offer such assistance, for example, through providing a forum for south-south peer reviews and showcasing progress on nations' efforts to strengthen the rule of law, govern justly, end corruption, strengthen the financial sector, attract businesses to the formal sector, and open up trade. Policy reforms such as these should be at the heart of the UN’s development activities.
Mr. President, ending poverty is a serious challenge. Building effective and equitable economic institutions takes time, persistence, and reform. Policies must be put in place to safeguard the most vulnerable members of society. The good news is that many countries have already blazed a trail and that the United States and the international community will help those prepared to help themselves. With the right choices, we have a good chance of reaching the goals we set for ourselves at Monterrey and in the Millennium Declaration.
Thank you.
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