State Secretary Sigrun Møgedal : Address at Africa Development Bank annual meeting

Mr. Chairman,
Mr. President,
Distinguished governors,
Ladies and gentlemen,

First of all, a note of appreciation to the Spanish Government and the City of Valencia for hosting this annual meeting in such an excellent way.

Let me also say how stimulating it has been to read the background policy documents from the ADB in preparing for this meeting. It is documentation of high quality and with high relevance, also beyond the African development agenda. They provide inputs of analysis and policy options, which makes a significant contribution to the stakeholder dialogue, both here and in other fora.

Yesterday we had a whole day debating partnerships for development; we discussed the value of partnerships, the modalities and the quality. We noted the need for a framework of mutual accountability for the partnership to be credible, and the need for deeper change in the way we do things. A mark of quality recognised was space for diversity and dialogue on options, avoiding prescriptions and, as president Chissano put it, not undermining the capacity of African countries to think differently. This is truly a way of talking about ownership and African leadership that should set the direction as we move on.

Opting for partnership entails both shared interest and shared risks. As we look at the daunting challenges we face, both as a global community and as partners with Africa in development, there is a new honesty and a new urgency. The initiatives coming out of Africa, as the Millennium Partnership for African Recovery and the new steps towards regional integration are extremely important as leads for a truly African agenda. So is the Abuja declaration on HIV/Aids and other infectious diseases.

It is in this context that ADB needs to find its place as a privileged partner for African efforts. The ADB vision gives such a direction. Yet, individual African countries may not yet have found a way to claim real ownership of the ADB and give it a chance to be both a financing partner, an advocacy partner and a broker in the debate on policy options at the country level. The donor partners may at the same time have demanded that the ADB move closer into partnership with the global institutions, making it a sub-set of the same. Here we have more work to do together.

We have reached remarkable consensus on the poverty agenda and on promising mechanisms for co-ordination and aligning of actors towards national development priorities. The challenge now is not so much technocratic but political: Creating alliances, weighing options, counting the risks and building credibility rooted in a broad-based democracy.

The International Financial Institutions are not about politics. But they need to understand the political implications of their advice. It is the lender that must have the job of integrating technical expertise with a sound political platform for policy choice. To be relevant, ADB needs to be more and more responsive to this situation. Being about economic and social development, there is no way to avoid the realities of young democracies, the situations of pre-conflict and the role of economic and social development in peace building. At the same time the Bank must be effective and efficient. The question is how to make the organisation fit dual challenge.

Most important is the ability to be responsive to countries. Countries are already largely overloaded with development actors. What is needed for the ADB is to find the right strategic alliances at the country level, not to compete in terms of the size of country presence.

The ADB is a Development Bank to specifically serve Africa. It must be wanted and given space as a partner. This is as much a challenge to regional member countries as it is to the way the Bank organises its business.

The Bank has carried out a successful reform process under the able leadership of President Kabbaj. This has set out a clear role and raised the institution's professional standards. We need an organisational structure that ensures proper communication and co-operation between strategic and operational departments and countries.

We appreciate the prominence given to crosscutting issues in the vision and assume that particular attention will be given to environment and gender in the re-organisation process.

The current rapid developments in the area of regional integration underlines the ADB’s role in facilitation and economic co-operation. The establishment of an effective focal point for regional co-operation is therefore now vital.

Mr. Chairman,

Partnership means participation. There is a need to respond to the growing challenges facing both governments and global and regional institutions; those of transparency and accountability. We do depend on governance practices in our countries that allow democratic control and democratic contribution. We need to continue and strengthen the serious work done in the ADB on matching some of the same criteria. The regional banks should be in the forefront in building credibility and trust. We, the partners do need to do our part of this work, including revisiting the issue raised by South Africa.

ADB should be well placed to offer advice on sensitive issues like governance. Several countries, including the Nordics, have expressed an interest in providing support for the operationalization of the ADB’s policy paper on good governance. However, in order to show commitment and ownership, the ADB will need to take the necessary action and set aside the necessary internal resources to increase its capacity and expertise in this new priority area.

First and foremost the credibility of the ADB has to do with how we do business in countries. But it also has to do with how we do business together. Out there is not only a growing interest from civil society. It is indeed also a question of demonstrating effectiveness in relation to the private sector; getting the investment climate right. The institutions should not be the ones to carry the blame for the frustration that has built up as we see the effects of a globalisation that is not proving benefits to the poor. The governments and the institutions are in the same boat. Together, we have failed to meet expectations and commitments. Together, we have failed to communicate. We need to find solutions that do not systemically and systematically marginalise and we must do it together.

Mr. Chairman,

Participation and partnership are also keywords when it comes to the fight against HIV/AIDS. There are obviously no universal prescriptions in the hard choices that individual countries face when shaping public policy on HIV/AIDS. Yet, there is a growing body of experience as to what is doable, with examples of good policies and practice. Tailoring responses to the realities in countries must be country-led and country-owned, based on access to the best possible information on options, and supported by the international community.

The Abuja Declaration provides good direction in this regard.

It is in this context that I welcome the ADB’s new HIV/AIDS strategy. The ADB should participate fully with countries and in the international community’s broad-based multisectoral efforts to prevent the spread of the pandemic. This also includes active engagement in the preparations for the special session of the General Assembly on HIV/AIDS in June.

Mr. Chairman,

I commend the ADB for building partnerships with the United Nations agencies and regional and sub-regional organisations. The UN Conference on Financing for Development in 2002 represents a unique opportunity to consider the various national and international sources of development finance as a whole. The UN Secretary General’s main document is a successful comparative effort by the UN, the World Bank, the IMF and WTO. However, it does not incorporate the very important regional dimension present in separate documents to the preparatory Committee. This makes it all the more important that the ADB takes an active part in the preparations and in the conference itself.

In conclusion,

Norway is looking forward to co-operating with the other shareholders and the Bank itself in shaping the future of the ADB. We are committed to do our part to achieve a successful completion of the upcoming replenishment negotiation.

Thank you for your attention.