2. Opening Statement of the U.S. Delegation by Mr. Allan Reed, Mission Director, USAID
The Mission Director of USAID, Mr. Allan Reed, stated that Zambia was progressing relatively well on four conditions (as set out by the USAID Administrator) that should exist for poverty reduction to take place- political leadership, policy reform, people and partnerships.
He explained that Zambia had made significant progress in policy reform in its liberalization and privatization of the agricultural sector in the last ten years and that the country had transformed its negative growth rates to increasing positive growth rates in the past three years. He commended Government’s efforts to integrate trade in its Interim National Development Plan, as this would increase exports and further accelerate its growth rate.
The U.S. Government called for an educated and healthy workforce, which needs basic medical care and protection from major infectious disease epidemics. The Government was commended for its efforts in producing a comprehensive proposal for the Global Fund support for HIV/AIDS, Malaria and TB as well as its multisectoral approach to HIV/AIDS. In the education sector, the U.S. Government commended Zambia for its efforts to address the Millennium Goal of Education for all and expressed happiness with the increased allocation to the sector in the 2002 national budget.
On the PRSP, the U.S. Government believed that if implemented as planned with well-articulated and participatory budget allocation, and measures taken to enhance good governance and accountability, positive effects of policy reform would be furthered. In addition, the Government’s priority to develop a vibrant private sector working in partnership with Government to place Zambia in competitive as well as comparative advantage in regional and international markets was fully endorsed. The establishment of a Public/Private Sector Committee on the Integrated Framework for Trade Related Technical assistance was commended and Government urged to reinvigorate the committee as soon as possible.
The U.S. Government observed that significant constraints needed to be addressed to create an enabling environment for increasing private sector investment by providing better implementation of open market economic policies stabilizing the exchange rates, reducing inflation and interest rates, energy costs and addressing the tax system. The significance of Information and Communications Technology (ICT) was emphasized in transforming the economy and society of Zambia. Zambia was called upon to formulate and implement an effective policy and regulatory framework to enable the required development of ICT.
Additionally, the U.S. Government expressed willingness to support the Zambian Government in its effort to prevent the drought from becoming a famine by contributing to the relief effort. The U.S. Government however pointed out that a supportive environment for the private sector to import and cover the balance of the deficit through commercial channels must be created, and necessary investments to tap Zambia’s vast agricultural potential to reduce vulnerability to drought exploited.
While Zambia’s remarkable political progress was hailed, the U.S. government felt that greater democratization would require fundamental issues to be addressed. These issues relate to constitutional and parliamentary reforms. Government was urged to see the urgency of developing a medium term plan for systematic implementation of the above issues.
|
Related documents