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Fund flow key to developing nations' growth
OUR BUREAU
CHENNAI, January 9: The ability to attract a continuous flow of investments, development of natural resources and value addition to such resources were some of the most important challenges facing emerging economies like Uganda and sub-Saharan Africa, Uganda's minister for planning and development, Richard Kaijuka told the summit's sixth plenary session, on the key issues in restructuring of emerging economies, here on Friday.The large demands in the infrastructure sectors needed a continuous flow of investments, he said, and added that the ``question now is whether we will be able to attract serious investment and how quickly.'' Timely integration with regional and global economic systems, were just as vital the Ugandan minister said. At the same time, multilateral bodies like the WTO must ensure equity in removal of trade barriers. Speaking on Uganda's experiences in recovering from the ``economic and political mismanagement of earlier years'', Kaijuka said his country had succeeded in ``transforming
the entire structure''. Developing countries must focus on value addition he said, adding that had Uganda done so it would have now been classified as a mid-sized economy. ``We would have been in a position to extend aid,'' he said. British minister of state for employment and education, Baroness Blackstone said investment in education was ``fundamental to restructuring''. Continuing education would ensure a more literate and skilled workforce which in turn would see productivity rising. It was an absurd situation when learning stopped after leaving school, she said. The corporate sector in particular must play a greater role in vocational and continuing education, she said. Blackstone spoke of two projects for which the UK Govt had extended funds. The first in Andhra Pradesh had been granted a Pound 46 million aid package for increasing primary access to education, reducing drop-out rates, etc. Another Pound 42 million had been committed to a project in West Bengal, she revealed. Earlier, Ahmed AGoueli, Egypt's minister of trade and supply, said his country had initiated a five year restructuring programme during 1990-91. Structured along with the IMF, the reforms package included liberalisation of interest and exchange rates, streamlining of administration and the privatisation of public enterprises. This had resulted in not just a stable exchange rate and brought the inflation rate down from around 24 per cent to four per cent, but had also helped build up the Central Bank's forex reserves to $22 billion. The growth rate had also climbed from around two per cent to five per cent, he said. Investment laws had been amended, he said, to include tax holidays with provision of land ownership. The Egyptian government was also establishing industrial cities, aimed at overcoming problems of population and speeding development. Indian businessmen could establish several projects in these cities, Goueli said, especially in the areas of software and electronics, small and medium sized enterprises,
garments and textiles, pharmaceuticals, automobiles and auto-components and engineering sectors.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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