New York: High-level Dialogue on Financing for Development The Monterrey Consensus: status of implementation and tasks ahead

Ministry of Finance Igor Lukšić: Mr. President,
Excellencies,
Ladies and Gentlemen:

It is my particular pleasure to address this High-level Dialogue on Financing for Development at this important moment for the follow-up to the implementation of the Monterrey Consensus and ahead of the Doha conference in 2008. At the outset, I would like to point out that Montenegro has fully aligned itself with the statement made by the representative of Portugal on behalf of the European Union Presidency. Therefore, I will take the opportunity to make a statement in my national capacity by emphasizing a few issues that are of particular importance for Montenegro.

The overall advancement toward the achievement of the internationally agreed Millennium Development Goals in Montenegro has been very positive as it evolves alongside the European Union integration processes. Montenegro signed the Stabilization and Association Agreement on 15 October 2007 thus opening the new chapter not only with regard to the political, but also the economic, market, and fiscal areas of development. This framework will enable us to promote sustainable development and carry out poverty reduction strategies.

In recent years Montenegro has achieved macroeconomic stability and prospect of growth remains strong. Real GDP growth is expected to average 7% in last 3 years, low inflation between 2-3%, budgetary surplus of about 4% in last two years and moderate level of public debt of 35%. We have championed the FDI inflows in our region in the last two years. FDI is an important vehicle for the transfer of knowledge, skills and technology, and reduction of poverty, as noted at the Secretary General Report. Montenegro has recognized that the challenge for developing countries is to attract FDI in a way that would maximize its contribution to the long-term development and has carried out a comprehensive set of activities to ensure the sustainability of economic growth.

As stated in the World Summit Outcome, our development is our responsibility. Creating friendly business environment for domestic and international investments is of an utmost importance. Stable macroeconomic environment, market-friendly frameworks, availability of human resources, and a measure of predictability are recognized as crucial to the effective implementation of my countrys development strategies as well as for fostering public-private partnerships, improved transparency, and accountability. Montenegro recognizes that it is its primary responsibility to develop adequate administrative capacities, to design and implement development strategies, and set priorities and timelines for their implementation.

Being a small Mediterranean country in the last stage of transition, we understand that mobilizing domestic resources and foreign investments are of particular importance. The Montenegrin Government understands that infrastructural bottle necks impose the greatest challenge in stimulating growth and development. Investors know-how to allocate resources but it is up to the Government to commit energy to motivate their decisions on the basis of a solid infrastructure.


Ladies and Gentlemen,

I would like to take this opportunity to stress particular relevance of the IFIs and their technical support. As a small and MIC Montenegro maintains good relations with our IFI partners. Therefore, we welcome the latest decision of the World Bank to cut interest rates. At the same time we call that the allocation of the net income of the IFIs be directed into more technical support for the countries to transfer know how to address social inequalities and global climate change as well as to help prepare infrastructural projects.

To this end, Montenegro commends activities that foster international financial and technical cooperation and welcomes ongoing efforts at the global level to achieve 0,7% of Gross National Income for Official Development Assistance by 2015 as well as improvement of quality, predictability, and effectiveness of ODA.

In my deep belief this important momentum for the global development will not be lost and several different initiatives will foster the implementation of MDGs and IADGs. Montenegro also supports a Ministerial declaration-style outcome document that would focus on the further implementation of the Monterrey Consensus.

Thank you for your attention.

Here you can download video file : Speech of Ministry of Finance by clik on save target as.