Second Committee Speeches & Interventions

Statement By Mr. Muhammad Hassan, Delegate of Pakistan to the Second Committee on agenda Item 98: Implementation of the First United Nations Decade for the Eradication of Poverty (1997-2006) and draft Programme of Action for the International Year of Microcredit (9 October 2003)

Mr. Chairman,

Let me at the outset thank the Secretary-General for his report contained in document A/58/179 concerning the agenda item.

2. My delegation aligns itself with the statement made by Morocco on behalf of G-77 and China.

3. We are acutely aware of the challenges poverty poses to humankind. We note with concern that more than half of 4.6 billion people living in developing countries subsist on less than two dollars a day and 1.2 billion below the poverty line of one dollar a day or less. Despite the pledges made in the Millennium Declaration, there is no hope of halving the global poverty by 2015. In fact in many regions, the poverty has increased.

4. The real challenge is how to address this multidimensional problem. Clearly, urgent action is needed on a number of fronts involving all relevant stakeholders. In a world where North controls more than 80% of resources and 95% of the international liquidity and investment, the developing countries alone will not be able to break the shackles of poverty. Only a comprehensive and integrated approach, based on the principle of shared responsibilities, can help eradicate poverty.

Mr. Chairman,

5. In the Millennium Summit, our leaders agreed to attack poverty from all directions. They decided to place the people in the center-stage of development and invest in their health and education. At Monterrey, they reaffirmed those commitments. It is now incumbent on both parties to this Compact, to implement their part vigorously. Developing countries should continue to improve their policy framework and governance, while development partners need to act, and act quickly, to meet their commitments towards enhancing the transfer of resources to developing countries through enhanced market access, and by scaling up the quality and level of ODA.

6. The progress on human development and poverty eradication is not progressing, mainly due to lack of requisite financial and technical resources. We learnt from the report of the Secretary-General that the actual increase in ODA during 2002 remained a fraction of the actual requirements. This is disappointing. We share the views of the Secretary-General that new and innovative methods should be vigorously explored.

7. Debt relief is yet another means of promoting development and should, therefore, be the integral part of a comprehensive concept of poverty eradication.

8. Trade is yet another area which could boost economic growth, generate employment, and reduce poverty in developing countries. It is also the single most important external source of financing development. Increased market access is an effective way for developing countries to reach sustainability. Every extra dollar of exports from a developing country feeds a poor family and builds a better future for them.

Mr. Chairman,

9. Pakistan is well aware of the challenges posed by poverty to its people. The Government has, therefore, taken a number of steps. We have adopted a five-pronged approach focused on economic growth, investment in human capital, targeted interventions, improved governance, and greater social safety nets. We have put in place our interim PRSP, CCA/UNDAF and other development mechanisms. We are now in the process of adopting full PRSP. We are investing in our people, in infrastructure development, in transport and communication, in industry and above all in agriculture which is the backbone of our economy. We have established a Human Development Fund, aimed at poverty alleviation. We have undertaken stringent policies and far reaching structural, macroeconomic, institutional and governance reforms, the results of which, at the macroeconomic level, are evident in stable currency, low inflation, improved levels of foreign exchange reserves, decline in fiscal deficit and public debt as a proportion of GDP, a vibrant stock market, and better than targeted growth.

10. We are also aware that we still have to go a long way in order to attain the cherished goal of development and poverty eradication. We are, however, determined to work with our development partners for the attainment of our shared objective.

Mr. Chairman,

11. Microcredit is one of the most effective tools for poverty eradication. It is not merely a means to gain access to credit. It is about empowering poor families and communities within their homes and villages.

12. The International year of Microcredit will provide a good opportunity for the United Nations to strengthen international cooperation in the field of microcredit. In this regard, we are pleased to see a number of constructive proposals in the Secretary-General’s report. We are confident that the implementation of such proposals would greatly help developing countries in their effort to alleviate poverty by enhancing the income of the poorest people and generating economic activity for them.

Mr. Chairman,

13. In Pakistan, we are using microfinance as an important tool of poverty alleviation. We have introduced a third generation microfinance sector development programme providing for a microfinance policy and a regulatory framework. The private sector is being encouraged to set-up microfinance institutions. An integral part of this initiative is the Khushhalibank - a well capitalized institution established to serve as a flagship of the program.

14. Pakistan is also supporting the Non Governmental Organizations and the rural support programs with a view to expanding their outreach by organizing communities at the grass root level and helping them access microcredit alongwith training in various entrepreneur skills and capacity building.

15. While we have put in place the requisite institutional and legislative framework to promote Microcredit and other poverty alleviation programmes, the challenges ahead are great. We are aware that we need to forge global partnerships to surmount these challenges. We all need to respond to them collectively- the governments, the donors, the NGO’s and the civil society

I thank you, Mr. Chairman.

* * *