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Position Paper
Related to country: Angola

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General Assembly - Second Committee

Republic of Angola

The issues before the Second Committee are:

1: Economic and Financial Crisis: Impact of achieving the Millennium Development Goals
2: Climate Change and Post-Kyoto Arrangements: A Big Challenge to the Achievement of the Millennium Development Goals

1: Economic and Financial Crisis: Impact of achieving the Millennium Development Goals
The Republic of Angola welcomes one of the four recommendations in the Secretary-General’s Report on the Economic and Financial Crisis. The Angolan government supports the implementation of a credible and effective mechanism for international policy coordination. Our nation believes in an inclusive process, which includes participation not only of major developing countries but also the participation of more representative institutions of global governance. The Angolan government does not support fundamental reforms of existing systems of financial regulation and supervision to prevent the re-emergence of excesses. Angola further does not support reform of the present international reserve system, away from the almost exclusive reliance on the United States dollar and towards a multilaterally backed multi-currency system, which, perhaps, over time could evolve into a single world currency-backed system. Our nation also does not support reforms of liquidity provisioning and compensatory financing mechanisms backed through better multilateral and regional pooling of national foreign-exchange reserves.
The discussion of what measures should be taken by the UN in achieving the Millennium Development Goals (MDGs) in the current economic climate are of upmost importance. Angola believes that the economic and financial crisis requires a global response that involves developed and developing countries in a partnership of cooperation and mutual respect.
After 27 years of civil war, reconstruction is occurring in Angola as a result of oil revenues, which have developed through foreign investment by major oil companies. However, less than 1% of the nation’s workforce is employed in the oil business so it is essential other sectors improve their performance in increasing job opportunities and diversifying the internal market and international exports. Our President, His Excellency Jose Eduardo dos Santos, stated that it is important for the consolidation of the Peace Process and the political stabilization in Angola to present incentives that produce economic and social development that will guarantee the creation of jobs. A significant development has occurred in terms of orientation and adequacy on economic policies. The measures implemented in the monetary-exchange and tax fields and other developments supported by the International Monetary Fund (IMF) and World Bank (WB) include the Program of Humanitarian Help for the War Displaced and the initial implementation of the Public Investments Program. The World Bank Group supports Angola’s efforts to reduce poverty and to promote sustainable economic growth.
The impact of the financial crisis on our economy can be seen on three levels. First, there is a marginal impact on the financial sector because there is no stock exchange, very small inter-banking credit markets, limited transaction flows with international markets (except via Portuguese Bank), low level of banking services and low ratio of loans to deposits. Second, a favourable impact is expected on inflation due to the decline in import prices, especially food and construction materials. Third, a negative impact on the real economy is expected as oil prices decline to very low levels. The Angolan minister of Economy, Manuel Nunes Junior, stated that the impact of the financial crisis in Angola will be evident in the reduction in incomes from oil and diamonds, the foreign financial flows and the problems in the access to foreign funds. This will involve a lower quantity of exchange values into the country.
Angola is unable to support three of the recommendations because of ongoing competition with other states on Africa’s west coast. Furthermore Angola is one of the United States main trade partners in the African continent.
There is risk the economic and financial crisis may have an impact on Angola through liquidity restrictions imposed by the headquarters of foreign-owned banks, which will influence credit delivery. Less liquidity in international credit markets may reduce private investment flows as the price of capital increases and commercial banks’ credit lines may be lowered. Bilateral credit lines are likely to remain to finance Angola’s imports from countries issuing them, however further deterioration of economic conditions in those countries may cause lower levels of new bilateral financing.

2: Climate Change and Post-Kyoto Arrangements: A Big Challenge to the Achievement of the Millennium Development Goals
Angola welcomes the recommendations in the Secretary-General’s Report on Climate Change and Post-Kyoto Arrangements and supports their implementation. Our nation insists on the importance of ensuring rights to land, forests, water, energy and livelihood for the poorest people. Our government further supports the recommendation to integrate climate change initiatives into national MDG-based sustainable development plans as part of our contribution to global mitigation. The Angola Government also supports the recommendation to prioritize renewable energy resources, where possible.
Angola would like to stress our aim of joining the international community in fighting against climate change and to achieve the MDGs. The implementation of post-Kyoto arrangements will help mobilise Angola and improve its integration in the protection of the climatic system. A priority for Angola is creating an enabling environment for improving the population’s welfare. Our government expresses its support for monitoring and evaluating projects aimed at promoting sustainable development.
It needs to be acknowledged that the challenge of meeting the MDGs in African countries is compounded by the long term risk of climate change. African countries require additional resources for adaption because they are vulnerable to the harsh impact of climate change and the risk of natural disasters. Furthermore the threat of conflict threatens to reverse development gains in Africa.
Forest occupies 35% of Angola’s territory while the coastline of over 1,600km is rich in fish species. Yet, the recent trend of environment loss and the threat it poses to fish resources raises concerns of the risk to environmental sustainability. Environmental degradation in rural areas is associated with the high price of fuel, the interruption of road networks and the subsequent inability to distribute farming production. The massive population influx to urban centres has contributed to localized degradation.
Angola believes that human resources are a key factor in achieving the MDGs. Capacity building of staff with the support of the international community will allow improved management of environmental resources. Our government strongly urges that the private sector be responsible for the preservation of the environment in areas where they operate, in particular oil and diamond companies who need to be responsible for the preservation of areas of exploration. In order to avoid environmental degradation caused by irresponsible cutting of trees and illegal hunting, the Angolan government calls for measures to be taken with the aim to put in place sustainable forestry exploration policies and to facilitate access for inhabitants in rural areas to affordable kerosene, as a substitute for timber and coal.
The application of the Montreal Protocol, which addressed the gradual elimination of substances that deplete the ozone layer, is an environmental sustainability challenge our government is working towards. In partnership with NGOs, our government calls for the implementation of ongoing sustainable development programs. The Ministry of Agriculture and Rural Development through the Institutes for Agrarian and Forestry Development is running programs promoting environmental issues of deforestation, combating desertification, soil erosion and improvement of traditional farming methods.

July 31, 2009 | 3:53 PM Comments  0 comments

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