Informing humanitarians worldwide 24/7 — a service provided by UN OCHA

Mozambique

Statement by Administrator of UNDP programme to international reconstruction conference on Mozambique


Mr President, excellencies, honoured guests, ladies and gentlemen,
I am very pleased and honoured to be here as Secretary-General Kofi Annan's representative and as Administrator of UNDP and I want to thank you all very much for joining us today. As the Secretary-General said last week, the United Nations system as a whole is committed to helping in every way it can to help ensure that part of the hard-won gains of Mozambique and its people are not washed away in the aftermath of the floods. The caliber and character of the support we provide here today to help them rebuild marks a critical test of the international community's commitment to real reform in Africa. Indeed it is not an exaggeration to say we are on trial here: for if we fail to provide for a close friend and model reformer in their hour of greatest need, how can we encourage other countries to follow the same path towards real, sustainable economic and political reform?

Because Mozambique is a success story. Not too long ago it was, by some measures, the poorest country in the world: crippled by conflict, its infrastructure and economy in ruins. Through sheer hard work and perseverance, the government and people of Mozambique have turned that around. Not only have they put in place a stable, accountable, democratic government, but President Chissano and his team have maintained steady, sound and sensible economic policies. And before Cyclone Eline intervened, they had begun to reap the rewards: new investment, lower debt, a burgeoning private sector and sustained growth rates near 10% annually - among the highest in the world.

The international community has been a strong supporter and partner for Mozambique throughout this difficult reform process. And many countries have already responded generously to the humanitarian disaster caused by the raging floodwaters: the helicopters and emergency supplies that many of you helped to deliver were essential to ensuring the tragedy was not compounded by lack of food, shelter and healthcare. Through the consolidated appeal process led by OCHA, $130m was raised in essential humanitarian assistance. But that marked just the first part of what must be a three phase process. What I want to do today is to draw special attention to the country's pressing, medium-term needs - that is Now: the period between the highly visible crisis where donors responded promptly and the longer-term economic development where, given the support in this room, I think there are already good prospects for substantive support.

POST-EMERGENCY RECONSTRUCTION

In that regard, I would particularly like to thank the government of Italy for hosting this conference and the Department for International Development of the United Kingdom for its contribution to support the preparation of all the documentation and follow-up materials. We at UNDP are already helping the Mozambican authorities deal with the threat of land-mines shifted by the floodwaters. We are also working with NGOs, other agencies and the Mozambican government using $2.5m in funds from Italy to help rehabilitate some of the poorest people. But these are only very small first steps. What we need to do now is to respond to the real needs identified by the government of Mozambique in its proposed Post-Emergency Reconstruction Programme.

As the video we have just seen shows, the reconstruction challenge is immense. Nearly 2 million people have been affected in some way by the floods, with over 500,000 displaced, and some 650 killed. Around 10% of the country-s agricultural areas have been damaged, tens of thousands of cattle have disappeared and large chunks of public infrastructure from roads and railways to schools and hospitals have all been badly damaged. Mozambicans are already hard at work repairing, replanting and rebuilding. But they cannot and should not have to do it alone: we must not only help, we must ensure that our help makes Mozambique stronger and better prepared for future crises.

As most of us involved in the so-called Brookings process, which clearly identified the "Gap" between emergency funding and long-term reconstruction - meetings, by the way, attended by my co-chair the foreign minister of Mozambique - know, this is too frequently an empty space. Donor resources often stall as the medium term needs fall between two stools: humanitarian and development budgets. Since the Brookings process, we have seen the process repeat itself in Kosovo and East Timor. We must not let it happen here. For me this conference is in considerable part designed to bridge that Gap once and for all -- to ensure an unbroken funding chain between OCHA's humanitarian appeal and longer term activities that the World Bank in the Consultative Group meeting in Paris next month will no doubt raise again. But to cover it requires that in your statements of support you state as specifically as possible what portion of your pledges you can make available now to ease the return of people and re-start their lives.

A dollar or euro today may be worth ten later.

As the document carefully sets out, Mozambique needs $450m to help rebuild shattered infrastructure and markets and minimize longer-term economic disruptions. This number was arrived at by a government-led consultative exercise that built on the World Bank's initial damage assessment. It sets out a comprehensive recovery process that, critically, can take place without diverting resources from ongoing development activities: it is aimed at restoring both infrastructure and human capital, incorporating improved designs and methods for roads and bridges, irrigation, water, sanitation, schools and public buildings.

Today people are spontaneously going home. The waters have receded and they are rushing to catch the second planting seasons. That needs tools and seeds and basic rehabilitation of village infrastructure - shelter, and education and health care provision, local roads and irrigation. It also needs underlying economic stimulation to get the wheels of commerce and markets turning, to restore incomes for the worst affected. And while these initiatives are focused on the southern parts of the country that were worst affected, they incorporate measures, like rebuilding the national highway connections to the capital, that are critical for the health of the entire national economy.

So this appeal is based on both realistic assessments of damage and clear-headed awareness of capacity constraints and future needs. And that is important. Because we already know that any further aid to Mozambique will not be - as it all too often is elsewhere - siphoned off or wasted. The government has repeatedly proven its ability to work with international and bilateral partners fairly, efficiently and equitably. We know they will do the same with any assistance we are able to offer now. "The government has constructed its own trust fund at the central bank to channel funds and for donors for whom this may pose practical difficulties UNDP has also opened a special trust fund."

LONGER-TERM CHALLENGES

Let me also say a brief word about the longer-term. As I mentioned, the physical damage from the floods is concentrated in the South of the country - a relatively poor area that accounts for 10% of agricultural production. I think the good news of the disaster is that it has not directly jeapordised the overall economy of Mozambique. Rather the cost is opportunity lost. Instead of 8-10% growth this year, Mozambique is likely to register 5-6% -- very respectable by regional standards although obviously still very damaging in that it defers for many Mozambicans the effective date when they can break through the poverty line.

However there are still real risks elsewhere:

  • First, this is a relatively underdeveloped region of a poor country. Therefore, absent help, disparities with the rest of the country are likely to grow with the attendant political and economic strains.
  • Second what is critical about today is that we are seeking grant resources and further debt relief rather than concessional finance. Because we must recognize how Mozambique has so painfully and carefully, with the help of the HIPC mechanism, worked towards debt sustainability. We should not put that that macro-economic equilibrium at new risk. It is unfair and unrealistic to demand that a country that has only recently managed to free itself from much of its crippling debt burden be forced to borrow again simply to meet basic needs imposed by an unforeseen tragedy.
  • Third, the reconstruction effort is also intended to reduce future vulnerability through better disaster preparedness and management initiatives. Because while these floods may be the worst in living memory, the region is notoriously prone to climate related crises. By taking this opportunity to put in place better early warning systems, environmental impact studies, civic education and enhanced regional cooperation we can help ensure the past does not repeat itself. And by installing stronger, smarter infrastructure and new private sector support programmes, we will strengthen the capacity of all sections of society to overcome future challenges.

So this is a remarkable document we have before us. It reflects wise support from Jim Wolfensohn and the World Bank in making space for this appeal to cover medium-term and grant-based needs in advance of the Consultative Conference. Jim as a sponsor of Brookings is honouring its vision for which I thank him. It reflects the efforts of a collegial, dedicated UN country team working together under Emmanuel Dierckx de Casterle's inclusive leadership. It reflects the responsiveness and quick support, as I have acknowledged, of key bilateral donors including our hosts the Italian government. And it reflects the commitment and hard work of the people and government of Mozambique whose assessment this is. It lays the foundation for a plan of action that does not merely return us to the status quo ante but helps to build an even more vibrant and dynamic Mozambique for the future. Most important, it is a document that honours participation and is true to the reputation of sound, consistent economic management that President Chissano and his administration have earned. For Mozambique and Africa, we must today repay this commitment.

Thank you