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| news.lk17 May 2010 | |
 President Mahinda Rajapaksa has proposed that the G 15 worked very closely with the G 8 to promote constructive dialogue on all major aspects of development. He said a clear methodology needs to be worked out for this dialogue to be realistic and fruitful.Addressing the G 15 Summit in Tehran, President Rajapaksa said that the G 15 with its unique composition representing about 33 % of the world population, with clearly identified objectives has the potential to play a constructive role in promoting people- centered development initiatives in global economic and social policy dialogues. For this reason the G 15 stresses the need for reforms in the international financial architecture to better enable it to monitor, respond and to prevent financial and economic disasters. To attain this objective there must be an open, inclusive and transparent dialogue. President Rajapaksa added, that the Bretton Woods Institutions when working with the developing countries should take into account their specific conditions as well as structural constraints they confront. ‘These Institutions should refrain from imposing conditionalities which we see in retrospect, did lead in their own way to fuelling the recent crisis,’ he continued. President Rajapaksa also said ‘the developing world has not run away from its responsibility to contribute to the progressive liberalization of global trade. It is all the more regrettable that we are yet waiting the conclusion of the Doha Round of negotiations in the WTO and the delivery of its development mandate. The G 15 must remain firm that the final package should address the concerns of the developing countries.’ The Sri Lankan President stressed that there must be increased market access for the goods and services of export interest to us. They should not tie up with politically motivated conditionalities. Referring to climate change President Rajapaksa said, ‘it is an issue towards which we in the developing world owe limited, if not little historical responsibility. It must be recognized that the present trend should lead to the reduction of the environmental and carbon emission space available for developing countries in such a manner as to impact on our entitlement to development. In this situation, it is the principles of equity and of common but differentiated responsibilities as enshrined in the UN Framework Convention on Climate Change that provide the direction for our future guidance’. Following is the text of the speech: I greatly value this opportunity to participate in the 14th Summit of the G-15 in Tehran. I wish to sincerely thank Your Excellency and the people of Iran for the warm welcome and generous hospitality extended to me and my delegation. I also would like to express my appreciation for the excellent Summit arrangements. I congratulate Your Excellency, on your effective stewardship of the G-15 in the last four years, a period that has been characterized by global economic uncertainty induced by a financial crisis resulting from mismanaged globalization. Despite these odds, under your able leadership, the projects component of the G-15 has been revitalized and several initiatives focusing on further advancing South-South cooperation have been launched. Excellencies, I consider it a special privilege and an honour for Sri Lanka to assume the Chair of the G-15 at the milestone of its 20th anniversary. The twenty years, since the inception of our Group, have seen significant changes in its collective economic profile. Some of our members, who have progressed to development indicators earlier limited to the ranks of the G8 countries, are already playing an influential role in the global economic power structure. The Group, has countries who are leading producers … of oil and natural gas, of extractive resources and of commodities. Others have economies with large and diversified industrial bases accompanied by advanced technological capabilities. Common to our nations is a fast growing reservoir of human capital, contributing to the knowledge economy. The G-15, continue to translate the economic progress for a greater voice in the global arena. In claiming such a voice, we can point to the strength of our collective developmental experiences. My country, Sri Lanka, has displayed capacity for growth despite many obstacles. We have achieved an economic growth of about 6 percent per annum, with consequently our per capita income increasing from US dollars one thousand sixty (1,060) in the year 2005, to US dollars two thousand fifty (2,050) in 2009. What is significant is that it took us over 55 years since we gained independence to reach the one thousand dollar mark in our per capita income, but during the last 4 years that it has doubled. All of this was achieved despite an almost thirty year struggle against brutal terrorism and separatism, the devastation of the 2004 Asian Tsunami and the recent global financial crisis which reminds us of the systemic risks and vulnerability of the global financial system. Excellencies, The crux of the development approach of my country, as presented in the Mahinda Chintana, my electoral manifesto, is a people focused approach. We are committed to this approach and have set ourselves the multiple goals of rapid economic growth and employment generation, reduction of poverty accompanied by re-distributive justice, regionally balanced development and environmental sustainability. All of this, we seek to accomplish while remaining true to our longstanding framework of democratic governance and cultural values. As I stated to my colleagues, the other Heads of State or Government of the South Asian nations during the 16th SAARC Summit in Bhutan, we in Sri Lanka, have the conviction that economic progress does not require the mass movement of populations from the rural hinterland to urban areas. Rather than moving people to urban areas, which brings about a variety of problems connected with housing, water, sewage and many social issues, my Government has consistently preferred to make facilities and resources available to the rural population in their own areas to ensure that they have equal access to become partners as well as beneficiaries of modern development. This was a factor behind the recent resounding mandate my Government received from the rural population in all areas of Sri Lanka. Excellencies, It is pertinent to note in this regard that the Central Bank of Sri Lanka itself has been re-oriented to facilitate poverty reduction and micro-financing and development finance projects in the country, departing from their conventional approach to central banking. Equally, our state banks have taken the lead to open rural areas by providing greater access to finance and promote private banks to follow such a path of development through competition in the banking and finance industry. Through such a spread, we have achieved a rate of 82 percent of households accessing the services offered by financial institutions. I made a revolutionary change in the conventional poverty reduction strategy as well, by empowering the community to participate in their development through the popularly known Gama Neguma or the village re-awakening programme. This initiative was enriched with the development of rural access roads, electricity, drinking and irrigation water and other basic facilities connecting people. Therefore, my vision was to make the whole country one unique township and place the whole country on a path to become an emerging economy in Asia, with per capita income rising in excess of US dollars four thousand the next 5 years. Given that background, we would be happy to share our experiences in re-shaping development strategies to meet our own needs. Excellencies, We all agree that our own development policies as well as those of the international and regional bodies that we represent must be people centered and result in a fair distribution of benefits. The G15 with its unique composition, also representing about 33 percent of the world population, and clearly identified objectives, has the potential to play a constructive role in promoting people centered development initiatives in global economic and social policy dialogues. It is for this reason that we stress the need for reforms to the international financial architecture, to better enable it to monitor, respond and prevent financial and economic disasters. To attain this objective, there must be an open, inclusive and transparent dialogue. Furthermore, the Bretton Woods Institutions when working with the developing countries, should take into account the latter's specific conditions and needs, as well as the structural constraints they confront. These Institutions should refrain from imposing conditionalities which we see in retrospect, did lead in their own way to fuelling the recent crisis. Though many of the developing economies have raised concerns in the past over so called Washington consensus and stressed the need for alternative development models and thinking for our progress, developing countries as a group has not succeeded in the past. However, now we see a paradigm shift towards strategic state interventions, increased role for the government, safeguards to liberalization, deregulations etc, following the recent experience in the western economies. In addition, we are concerned that despite the presence of the global economy, and financial surveillance through multilateral organizations and existence of early warning systems, adequate progress has not been made in crisis prevention efforts. Excellencies, The developing world has not run away from its responsibility to contribute to the progressive liberalization of global trade. It is therefore all the more regrettable that we are yet awaiting the conclusion of the Doha Round of negotiations in the WTO and the delivery of its development mandate. The G-15 must remain firm that the final package should address the concerns of the developing countries. There must be increased market access for the goods and services of export interest to us. They should not tie up with politically motivated conditionalties. We must also be clear that the provision of the policy space needed to develop our economies and to contribute to self sufficiency in agriculture would be an essential pre-requisite for a balanced outcome to the Round. Excellencies, Our 21st Century challenge of climate change is an issue towards which we in the developing world owe limited, if not little historical responsibility. It must be recognized that the present trend could lead to the reduction of the environmental and carbon emission space available for developing countries in such a manner, as to impact on our entitlement to development. In this situation, it is the principles of equity and of common but differentiated responsibilities as enshrined in the UN Framework Convention on Climate Change that provide the direction for our future guidance. Given the fast growing reservoir of human capital in our nations, we in the G-15 must remain sensitive to the growing importance of issues. While we will always be committed to the safeguard and protection of intellectual property, the developed nations must also provide the flexibility necessary for the sharing of knowledge and information, which would lead to a better world for us all. For us in Sri Lanka, being blessed by nature as we are with a rich bio-diversity, measures to prevent the misappropriation of genetic resources are especially paramount. We also urge a greater focus on the protection and preservation of traditional knowledge, including other aspects of our heritage such as folk-lore. Excellencies, The G-15, with the rich diversity of experiences and civilizations inherent in its ranks, is uniquely placed to advocate the need for constructive balance in global policies. I am confident that the G-15 as it embarks on its third decade, would not be found wanting in meeting its responsibilities to its Member States and to the rest of the international community. In this context, I propose that G 15 work very closely with G 8 to promote constructive global dialogue on all major aspects of development. A clear methodology needs to be worked out for this dialogue between the G 15 and G 8 to be realistic and fruitful. The G 15, to harness its full potential within the group for promoting people centered development, it is important that we launch a collective project for fair assessment of progress and prospects for enhanced co-operation in economic, financial and other areas including scientific and cultural aspects and appoint a high level task force using the great repository of expertise that we have in our government institutions, academia and the private sector. I propose that we concentrate on action to strengthen Development Corporation in the area of infrastructure development, human resource development and trade and investment promotion within the group. We together also should demonstrate to the world our clear commitment to promote prosperity and preserve sustainable peace and security within and across all nations, and further develop our capacities for strong co-existence. In addition to the proposed Task Force, a mechanism to facilitate exchange of human resource skills within the group should be launched. Excellencies, Ladies and Gentlemen, I thank the Member States of the G15 for the confidence and faith placed on Sri Lanka to lead the group in the next term. I am confident that we have with us the capacity to ensure the resurgence of our countries and to revitalize our organization to be a more powerful player in promoting economic and social progress for the benefit of all. I thank you for your kind attention. May the Blessings of the Noble Triple Gem be with you. |
jaya wewa
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