MR. PRESIDENT 
YOUR EXCELLENCIES 
DISTINGUISHED LADIES AND GENTLEMEN

ON BEHALF OF THE GOVERNMENT AND PEOPLE OF LESOTHO, AND ON BEHALF OF MY DELEGATION, I WISH TO EXPRESS OUR HEARTFELT GRATITUDE TO THE PEOPLE AND GOVERNMENT OF MEXICO FOR HOSTING THIS AUGUST MEETING. MR. PRESIDENT, ALLOW ME, TO CONGRATULATE YOU UPON YOUR ELECTION AS PRESIDENT OF THIS IMPORTANT SUMMIT ON FINANCING FOR DEVELOPMENT.

FURTHER, 1 WISH TO PAY A SPECIAL TRIBUTE TO THE SECRETARY- GENERAL OF THE UNITED NATIONS, MR. KOFI ANNAN FOR HIS STERLING GUIDANCE, CONTINUED DYNAMIC LEADERSHIP AND COMMITMENT TO OUR ORGANIZATION IN ITS QUEST TO TACKLE THE CHALLENGES OF OUR TIME, AND SHAPE THE FUTURES OF NATIONS OF THE WORLD.

MR. PRESIDENT

THERE IS GLOBAL CONSENSUS THAT SUSTAINABLE DEVELOPMENT IS DIFFICULT TO ACHIEVE IN THE ABSENCE OF TRUE DEMOCRACY, GOOD GOVERNANCE, RESPECT FOR HUMAN RIGHTS, PEACE, SECURITY, AND THE RULE OF LAW. IN RECENT YEARS, WE HAVE WITNESSED A RAPIDLY GROWING MOVEMENT AWAY FROM DICTATORSHIP AND AUTHORITARIANISM. DEMOCRACY AND GOOD GOVERNANCE ON THE POLITICAL FRONT REMAINS INCOMPLETE UNLESS IT IS REPLICATED IN SOCIO-ECONOMIC DEVELOPMENT, TRADE AND OTHER DECISION MAKING PROCESSES AT THE GLOBAL LEVEL. AT BOTH SUB-REGIONAL AND REGIONAL LEVELS, GOVERNMENTS ARE PULLING RESOURCES TOGETHER FOR THE CREATION OF A POLITICAL ENVIRONMENT UNTENABLE TO POLITICAL DICTATORSHIP, COUP-D'ETAS AND OTHER UNDEMOCRATIC SYSTEMS OF GOVERNANCE.

MANY GOVERNMENTS ARE ENACTING ANTI-CORRUPTION LEGISLATIONS AND ESTABLISHING INSTITUTIONAL AND ADMINISTRATIVE STRUCTURES TO COMBAT CORRUPTION, DRUG-TRAFFICKING, TERRORISM, INCLUDING PROLIFERATION OF SMALL ARMS, ETC. THE ULTIMATE OBJECTIVE OF THESE INITIATIVES IS TO CREATE AT NATIONAL, REGIONAL, AND GLOBAL LEVELS AN ENVIRONMENT THAT IS CONDUCIVE FOR THE PROMOTION OF DEMOCRACY, GOOD GOVERNANCE, RESPECT FOR HUMAN RIGHTS, PEACE SECURITY AND THE PARTICIPATION OF PEOPLE IN THE MOULDING OF THEIR DESTINY. THE END RESULT OF ALL THIS SHOULD BE INCREASED INVESTMENT IN DEVELOPMENT.

THE NEW PARTNERSHIP FOR AFRICA'S DEVELOPMENT (NEPAD) IS A CLEAR COMMITMENT OF AFRICAN LEADERS TO INDIVIDUALLY AND COLLECTIVELY, PUT THE CONTINENT ON A PATH TO SUSTAINABLE GROWTH AND DEVELOPMENT; WHILE ACTIVELY PARTICIPATING IN THE WORLD ECONOMY AND BODY POLITIC. AFRICA'S CONTINUED MARGINALISATION FROM GLOBALISATION PROCESS REMAINS A SERIOUS THREAT TO GLOBAL STABILITY AND TO GOOD GOVERNANCE. NEPAD IS, THEREFORE, AFRICA'S CALL FOR A NEW AND STRONGER PARTNERSHIP WITH THE INTERNATIONAL COMMUNITY, TO HOLD AND REVERSE DECADES OF INEQUITABLE DISTRIBUTION OF WEALTH AND UNFAIR TRADE RELATIONS.

MR PRESIDENT

MORE AND MORE DEVELOPED COUNTRIES AND INTERNATIONAL ORGANIZATIONS HAVE DEMANDED THAT DEVELOPING COUNTRIES SHOULD PUT THEIR HOUSES IN ORDER WITH RESPECT TO DEMOCRACY AND GOOD GOVERNANCE. WHILE THIS IS UNDERSTANDABLE, IT IS IMPORTANT THAT ACHIEVEMENT OF THESE IS DULY REWARDED BY MORE MEANINGFUL FINANCING FOR DEVELOPMENT BY COOPERATING PARTNERS.

MR. PRESIDENT,

IN MAY THIS YEAR, THE PEOPLE OF LESOTHO WILL GO TO THE POLLS TO FREELY ELECT A GOVERNMENT OF THEIR CHOICE, AND OUR BORDERS ARE OPEN TO THOSE WHO WISH TO COME AND OBSERVE THIS PROCESS. OUR JOURNEY TO TRANSPARENCY AND POPULAR PARTICIPATION AND THE FOSTERING OF THE RULE OF LAW AND GOOD GOVERNANCE IS IRREVERSIBLE. IN THIS REGARD, WE REQUEST OUR COOPERATING PARTNERS FOR INCREASED AND UNCONDITIONAL SUPPORT (FINANCIAL, MATERIAL AND OTHERWISE) FOR STRENGTHENING, DEEPENING AND BROADENING THE TENETS OF DEMOCRACY.

MR PRESIDENT,

HIV/AIDS AND POVERTY ARE SOME OF THE MAJOR CHALLENGES CONFRONTING US TODAY. THEIR CONTINUED EXISTENCE DOES NOT AUGUR WELL FOR THE SUSTAINABILITY OF OUR DEVELOPMENT OBJECTIVES AND TO MANKIND'S SURVIVAL. LESOTHO HAS ADOPTED A NATIONAL STRATEGY FOR ADDRESSING HIV/AIDS AND HAS ESTABLISHED LESOTHO AIDS PROGRAMME COORDINATING AUTHORITY UNDER THE PRIME MINISTER'S OFFICE. LESOTHO'S POLICY ON HIV/AIDS EMPHASISES THE INVOLVEMENT OF ALI, STAKEHOLDERS IN THE FIGHT AGAINST THIS SCOURGE. WE WELCOME THE SUPPORT EXTENDED TO OUR NATIONAL STRATEGY AGAINST THIS PANDEMIC.

AS A COMMITMENT TO ADDRESSING POVERTY, THE GOVERNMENT OF LESOTHO IS AT AN ADVANCED STAGE OF FORMULATING A POVERTY REDUCTION STRATEGY PAPER, WHICH INCORPORATES VIEWS FROM ALL STAKEHOLDERS. THIS STRATEGY WILL BE READY BY THE END OF THIS YEAR, AND WILL FORM THE BASIS FOR TARGETED POVERTY REDUCTION PROGRAMMES.

MR PRESIDENT,

AN INCREASING NUMBER OF MAJOR INTERNATIONAL CONFERENCES HAVE REGISTERED COMMENDABLE SUCCESSES TOWARDS A CLOSER AND STRONGER INTERNATIONAL COOPERATION. MANY NATIONS ACKNOWLEDGE THAT POVERTY, LACK OF EDUCATION, ABSENCE OF HUMAN AND POLITICAL RIGHTS, LACK OF EQUAL OPPORTUNITIES FOR INDIVIDUALS AND GROUPS CONTINUE TO BE A MAJOR THREAT TO PEACE AND SECURITY AND CAN BECOME A ROOT CAUSE FOR TERROR, DISPAIR AND POOR GOVERNANCE. THE MONTERREY CONFERENCE ON FINANCING FOR DEVELOPMENT OFFERS US A UNIQUE OPPORTUNITY TO TRANSLATE WORDS INTO CONCRETE ACTIONS.

THE UNFORTUNATE EVENTS OF I IT" SEPTEMBER 2001 IN NEW YORK AND WASHINGTON HAVE ONCE AGAIN DEMONSTRATED AN URGENT NEED FOR THE ESTABLISHMENT OF THE UNITED NATIONS INTERNATIONAL CRIMINAL COURT TO DEAL WITH CRIMES AGAINST HUMANITY. ALL NATIONS OF THE WORLD, LARGE OR SMALL, RICH OR POOR SHOULD ENGAGE THEIR BEST EFFORTS TO ENSURE THAT GAINS IN MULTILATERAL COOPERATION ARE CONSOLIDATED AND BROADENED. WHILE UNILATERALISM IS ABANDONED IN FAVOUR OF STRONGER MULTILATERALISM IN OUR EFFORTS TO FIGHT TERRORISM, IT IS INCUMBENT UPON US ALL PEACE LOVING NATIONS TO JOIN HANDS IN SOLIDARITY TO COMBAT IT. TERRORISM DOES NOT ONLY UNDERMINE WORLD PEACE AND SECURITY, BUT DRAINS AWAY THE SCARCE RESOURCES NEEDED FOR ECONOMIC DEVELOPMENT AND SOCIAL PROGRESS.

MR PRESIDENT

THE FULFILMENT OF INTERNATIONALLY AGREED OFFICIAL DEVELOPMENT ASSISTANCE (ODA) TARGETS BY ALL DEVELOPED COUNTRIES WILL GENERATE INCREASED RESOURCES FOR DEVELOPMENT FINANCIN. IN THIS REGARD, WE EXPRESS OUR GRATITUDE TO THOSE DEVELOPED COUNTRIES, WHO HAVE MET THEIR ODA TARGETS. HOWEVER, WE DO URGE THAT ALL DEVELOPED COUNTRIES MEET THESE TARGETS, SINCE ODA REMAINS THE LARGEST SOURCE OF EXTERNAL FINANCING FOR LANDLOCKED, RESOURCE POOR LDC'S LIKE LESOTHO. DUE COGNISANCE NEEDS TO BE ACCORDED TO THE UNITED NATIONS MILLENIUM DECLARATION AS A GUIDING PRINCIPLE.

WE ARE APPRECIATIVE OF THE EFFORTS BEING MADE IN SUPPORT OF THE HIPC. IT IS OUR CONSIDERED VIEW THAT IF EXTERNAL DEBT RELIEF COULD ALSO BE TARGETTED TO LESS INDEBTED POOR COUNTRIES LIKE LESOTHO, IT WOULD LEAVE AT OUR DISPOSAL SIGNIFICANT RESOURCES TO INVEST IN POVERTY ALLEVIATION PROGRAMMES, HUMAN RESOURCE DEVELOPMENT, ECONOMIC AND SOCIAL INFRASTRUCTURE. CANCELLATION OF LESOTHO'S DEBT, COUPLED WITH THE AVAILABILITY OF ODA, AND OTHER DEVELOPMENT ASSISTANCE WOULD GIVE US THE REQUIRED CAPACITY TO INVEST IN ECONOMIC DEVELOPMENT PROGRAMMES, AND HELP US INTEGRATE INTO TIE GLOBAL ECONOMY.

MR. PRESIDENT,

LESOTHO IS COMMITED TO SOUND MACRO-ECONOMIC POLICIES THAT ARE AIMED AT ACHIEVING KEY OBJECTIVES OF SUSTAINED ECONOMIC GROWTH, EMPLOYMENT CREA'T'ION AND POVERTY REDUCTION, WHILE TAKING INTO ACCOUNT THE NEED TO ENSURE LOW INFLATION AND SUSTAINABLE FISCAL AND CURRENT ACCOUNT BALANCES. IT IS WITH THIS COMMITTMENT IN MIND THAT LESOTHO CONTINUES TO IMPLEMENT A COMPREHENSIVE ECONOMIC REFORM PROGRAMME WHICH INCLUDES PRIVATISATION OF STATE OWNED ENTERPRISES, REFORM AND RESTRUCTURING OF PUBLIC UTILITIES SECTOR AND THE ESTABLISHMENT OF A REVENUE AUTHORITY. IN ORDER FOR THIS REFORM PROGRAM TO ACHIEVE ITS BROAD AIMS, WE INVITE THE INTERNATIONAL COMMUNITY TO EXTEND SUPPORT IN THE FORM OF INCREASED TECHNICAL, FINANCIAL AND OTHER FORMS OF ASSISTANCE.

DEVELOPING COUNTRIES SHOULD GIVE HIGH PRIORITY TO STRENGTHENING MACRO-ECONOMIC INSTITUTIONS CAPACITY BUILDING REQUIREMENTS THROUGH TRAINING PROGRAMMES AND PROVISION OF TECHNICAL KNOWHOW AND TECHNOLOGICAL INFRASTRUCTURE. EMPHASIS SHOULD BE PLACED ON STRENGTHENING INSTITUTIONAL ARRANGEMENTS THAT BRING THE MAIN ELEMENTS OF MACRO-ECONOMIC POLICY INTO THE PUBLIC DOMAIN. AS A RESULT, FULL CONSEQUENCES OF THOSE POLICIES, INCLUDING THEIR SOCIAL DIMENSIONS, CAN BE DISCUSSED IN A WAY THAT HELPS TO ACHIEVE A BALANCE BETWEEN ECONOMIC AND SOCIAL PRIORITIES.

MR. PRESIDENT,

IT IS A PRIORITY POLICY OF MY GOVERNMENT TO PROMOTE THE CREATION OF JOBS. HOWEVER, LESOTHO'S SMALL ECONOMY IS CONFRONTED WITH FORMIDABLE CHALLENGES AND CONSTRAINTS SUCH AS LACK OF CAPACITY TO TAKE OPTIMAL ADVANTAGE OF BENEFITS ACCRUING FROM TRADE LIBERALIZATION, ENHANCED MARKET ACCESS, HUMAN AND INSTITUTIONAL CAPACITY EXACERBATED BY A WEAK BUSINESS SECTOR. WHILST WE RECOGNIZE THE PRIVATE SECTOR AS AN ENGINE OF GROWTH, WE REALIZE THAT IT CONTINUES TO FACE SERIOUS SHORTAGES OF ENTREPRENEURIAL SKILLS AND FINANCE WHICH UNDERMINE ITS ABILITY TO CONTRIBUTE MEANINGFULLY TO THE COUNTRY'S ECONOMIC ACTIVITIES. UNLESS ITS CAPACITY IS URGENTLY STRENGTHENED AND EXPANDED, THE SECTOR'S POTENTIAL IN JOB CREATION AND FOREIGN EXCHANGE EARNINGS THROUGH EXPORTS WILL CONTINUE TO BE UNDER EXPLOITED, THEREBY MINIMALLY CONTRIBUTING TO POVERTY REDUCTION.

MR. PRESIDENT,

PROMOTION OF BOTH FOREIGN AND DOMESTIC INVESTMENTS REQUIRES THE EXISTENCE OF A CONDUCIVE AND ENABLING INVESTMENT CLIMATE. MANYDEVELOPING COUNTRIES HAVE MADE SIGNIFICANT PROGRESS IN FACILITATING A FAVOURABLE INVESTMENT CLIMATE. HOWEVER, FOREIGN INVESTMENT FLOWS CONTINUE TO BE VERY LOW, PARTLY DUE TO INSTITUTIONAL CAPACITY CONSTRAINTS, AND HIGHLY VOLATILE DEFINITIONS OF "FAVOURABLE INVESTMENT CLIMATE" BY OUR PARTNERS IN THE NORTH; AND POOR ECONOMIC INFRASTRUCTURE PARTICULARLY IN THE LEAST DEVELOPED COUNTRIES. WE CALL UPON THE DEVELOPED COUNTRIES TO REVIEW THEIR INVESTMENT POLICIES IN A WAY THAT DIRECTS FINANCING TOWARDS INFRASTRUCTURE DEVELOPMENT, IN ORDER TO ATTRACT FOREIGN DIRECT INVESTMENT IN THESE COUNTRIES.

MR PRESIDENT,

TRADE LIBERALISATION PLAYS A VITAL ROLE IN PROMOTING ECONOMIC GROWTH. EMPLOYMENT AND DEVELOPMENT AMONG NATIONS. LESOTHO ENCOURAGES DEVELOPED COUNTRIES THAT HAVE NOT LIBERALISED THEIR MARKETS TO DO SO. IN ORDER TO ADDRESS SPECIFIC CONSTRAINTS FACED BY DEVELOPED COUNTRIES, SHOULD TAKE INTO COGNISANCE THE REVIEW OF SPECIAL AND DIFFERENTIAL TREATMENT PROVISIONS, WITH A VIEW TO STRENGTHEN. AND MAKE THEM MORE PRECISE, EFFECTIVE AND OPERATIONAL.

WE SUBSCRIBE TO A NOTION OF A UNIVERSAL, RULES BASED, OPEN, NONDISCRIMINATORY AND EQUITABLE MULTILATERAL TRADING SYSTEM UNDER THE. AUSPICES OF THE WTO, AS A TOOL TO A MEANINGFUL TRADE LIBERALISATION THAT CAN SUBSTANTIALLY STIMULATE ECONOMIC GROWTH. AS A RESULT, HERE IS A DIRE NEED FOR THE INTERNATIONAL FINANCIAL INSTITUTIONS AND DEVELOPED COUNTRIES TO GENEROUSLY AND SUBSTANTIALLY CONTRIBUTE TO CAPACITY BUILDING INITIATIVES OF DEVELOPING COUNTRIES, IN PARTICULAR THOSE OF THE LEAST DEVELOPED COUNTRIES IN ACCORDANCE WITH THE DOHA AGREEMENT, AND FOR AN ENHANCED PARTICIPATION OF THESE COUNTRIES IN THE MULTILATERAL TRADING SYSTEM.

MR. PRESIDENT,

LESOTHO HAS EMBARKED ON A PROGRAMME OF DEVELOPING A LONG -TERM NATIONAL VISION TO ADDRESS THE MANY PROBLEMS THAT FACE HER ECONOMY. CONTINUED IMPLEMENTATION AND THE CONSOLIDATION OF THE GAINS FROM THE MACRO ECONOMIC REFORM PROGRAMME SUPPORTED BY THE IMF IS AWARDED HIGH PRIORITY. THE GOVERNMENT BELIEVES THAT IMPLEMENTATION OF PRUDENT FISCAL AND MONETARY POLICIES CAPABLE OF MAINTAINING INFLATION AND EXCHANGE RATES AT ACCEPTABLE LEVELS, CREATES A CONDUCIVE CLIMATE FOR POLITICAL STABILITY, INCREASED INVESTMENTS AND CREATION OF EMPLOYMENT. IT IS IN LINE WITH THIS BELIEF THAT THE GOVERNMENT CONTINUES TO VIGILANTLY CURTAIL WASTEFUL EXPENDITURES AND ABUSE OF PUBLIC ASSETS. IN ADDITION, LESOTHO IS IN THE PROCESS OF IMPLEMENTING A PUBLIC SECTOR IMPROVEMENT AND REFORM PROGRAMME AIMED AT IMPROVING FINANCIAL MANAGEMENT AND PUBLIC SERVICE DELIVERY, INCLUDING RATIONALISATION OF THE CIVIL SERVICE. WE WOULD HIGHLY APPRECIATE INCREASED DONOR ASSISTANCE AND SUPPORT TO THESE INITIATIVES.

MR PRESIDENT

MAY I END MY STATEMENT WITH A PLEA THAT THE MONTERREY CONSENSUS SHOULD BECOME A GUIDING LIGHT, A UNIFYING THEME AND A SOURCE OF FRESH HOPE AND ENERGY. AS WE FORGE AND IMPLEMENT STRATEGIES THAT WILL ENHANCE 'THE ACHIEVEMENT OF A BETTER WORLD IN WHICH THE GLOBAL COMMON WEALTH IS DISTRIBUTED MORE EQUITABLY FOR THE COMMON GOOD OF ALL HUMANITY.

I THANK YOU, MR PRESIDENT.