It is for me a great pleasure to welcome you to Addis Ababa for this important gathering aimed at articulating the position of Africa on fundamental issues relating to development with a particular focus on financing for development, and the situation in the least developed countries.

I would like to acknowledge with deep appreciation the creative initiative taken by the ECA and its Executive Secretary Dr. Amoako for bringing us all together today. The ECA is serving as a major resource center on African development issues and the initiatives introduced by Dr. Amoako in this area are of no small significance.

That we have among us officials from OECD countries who are directly responsible for development cooperation will, in my view, enrich this conference of ministers of finance. We have the opportunity to share views on vital issues of developmental interest.

Excellencies,
Distinguished Guests,

This conference has been convened to address a number of important matters with the aim of building a consensus. I wish to take this opportunity to share with you my thoughts on a number of issues I believe to be relevant to your deliberations.

We in Ethiopia consider that the debt and poverty reduction strategy embodied in the HIPIC (Highly Indebted Poor Countries) initiative is a major step forward seen in the light of the options that had been available for such countries earlier.

Having said that, however, it must be underlined that we still have concerns relating to the HIPIC initiative.

In the first place, the HIPIC arrangement is characterized by an arbitrary definition of what constitutes debt sustainability. It is also believed that HIPIC's capacity to provide adequate relief is questionable. In light of this it appears only logical that it would be necessary to review the HIPIC program with the objective of achieving the desired result both in the assessment of debt sustainability and in the provision of adequate relief.

Secondly, although the concept of ownership, or country ownership to be precise, is generally accepted, the various conditionalities introduced have not only slowed down the process, but have further undermined the capacities and functions of state institutions. The concept of development and its ownership has been subjected to continuously changing 'development fads' which, at the end of the day, may result in thwarting ownership.

So while the HIPIC initiative represents a major step forward, the problems outlined earlier need to be resolved, and resolved positively.

I wish to also draw your attention to the fact that although reforms undertaken in Africa so far have contributed in no small way to stabilize African economies and to make them more "market driven," the supply response has been neither adequate nor sustained. Unless the scope of economic reform and development strategy is widened and redefined in light of the problems that have been identified to date, Africa's marginalization will continue and defeating poverty will not be possible.

All these implies, Mr. Chairman, that there is an urgently felt need to identify and embark on creative solutions to the festering developmental problems of the continent. Africa must be enabled to export much more and to absorb much higher levels of foreign direct investment. We need to move quickly and deal with the structural bottlenecks that are hindering economic progress.

In this regard, OECD countries should accord non-reciprocal and privileged access to their markets for African products. The private sector in OECD countries should be actively encouraged to interact with the agricultural and business communities in African countries. This can be done, for instance, through subcontracting arrangements and other forms of business partnerships in order to enable greater access to OECD markets for products of our countries. Such an activity requires the coordinated and concerted efforts of both governments and the private sector. Our partners within the OECD need to focus on building the capacity of the public and private sector in developing countries in order to generate a real development capacity and hence, momentum.

Unless the major challenges we face are addressed by "taking the bull by the horns" and providing the type of support required to make a difference in our capacity to trade, the statement "what Africa needs is trade not aid," could be worse than an empty phrase.

I would also like, Mr. Chairman, to underline the need for the global financial infrastructure in place to accommodate Africa's agenda for development and to allow Africa's capacity to regulate financial institutions to grow. This will require a shift of thinking and action in view of the fact that the policies promoted so far in Africa aimed at across the board liberalization of the financial sector, have had a predominantly negative effect in promoting development of financial systems in our countries. Care needs to be taken as policies are formulated and pursued to ensure that the African development agenda is adequately catered for.

Mr. Chairman,
Distinguished Ministers and Delegates,
Ladies and Gentlemen,

By no means have I attempted to outline the issues that we face in the development arena in an exhaustive manner. Far from it. I only wished to use the opportunity you have graciously provided to me to bring to your attention some of the concerns upper most in our minds here in Ethiopia.

As our countries face similar constraints I have the feeling that you may also share my concerns.