Promoting people- centered development
Excerpts of the text of the speech by
President Mahinda Rajapaksa at the G-15 Summit in Tehran yesterday after
assuming office of the Chair of G-15
The 20 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.
President Mahinda Rajapaksa addressing the G 15 Summit after
assuming office of the Chair of G-15. Picture by Sudath Silva |
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. Sri Lanka, has
displayed capacity for growth despite many obstacles. We have achieved
about six percent economic growth per annum, with consequently our per
capita income increasing from US $ 1,060 in 2005, to US $ 2,050 in 2009.
What is significant is that it took us over 55 years since we gained
independence to reach the $ 1,000 mark in our per capita income, but
during the past four years that it has doubled. All of this was achieved
despite an almost 30 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 systematic risks and
vulnerability of the global financial system.
People-focused approach
The crux of the development approach of my country, as presented in
the Mahinda Chintana, 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 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.
Poverty reduction
It is pertinent to note in this regard that the Central Bank 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 program. 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 $ 4,000
the next five years. Given that background, we would be happy to share
our experiences in re-shaping development strategies to meet our own
needs.
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 G-15 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.
Economy and trade
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.
Climate issues
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.
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.
Balance in policies
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.
I thank the Member States of the G-15 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. |