MCA Signing Ceremony Transcript

I am particularly pleased to be a part of this event today, which is the first of what I hope to be many, many signing ceremonies for African countries during my tenure as assistant secretary for Africa.

I have the pleasure of introducing you today to the minister of finance to the Republic of Malawi, Minister Gondwe, Edward Gondwe, and I would like to take this opportunity before introducing him to highlight the excellent relationship that the United States and Malawi enjoy. 

Just last week at the U.N. General Assembly meeting, I had the chance to discuss these bonds of friendship with the foreign minister, Katsonga, Minister Faiti, Minister Banda and the ambassador, Sande.

So it's, indeed, a strong relationship, and I look forward to meeting, discussing and working very closely with you in the implementation of the threshold program and the compact when it comes as well.

The Millennium Challenge Account country threshold program that Minister Gondwe will sign today on behalf of the people and the government of Malawi allows us to embark on a new chapter in this relationship.

As Charles and Lloyd have said and illustrated in their remarks, this MCA threshold program is about partnership.  And this agreement represents yet another step in our efforts to work with the government of Malawi toward good governance and economic prosperity.  The two go hand in hand.

The plan that Malawi has designed will enhance its ability to fight corruption, improve fiscal policy and improve people's lives.  We commend Malawi and its president for these extremely important efforts.

The United States has been impressed with the self-reliance with which Malawi is investing in a brighter future for its people, including the measures it's taking that I learned of more at the U.N. General Assembly, the measures it's taking to deal with food and security.  We are honored to partner with them to achieve these goals.

So without further ado, allow me to introduce the Honorable Goodall Edward Gondwe, the minister of finance of the Republic of Malawi.  The minister had previously served as the chief economic adviser to the president of Malawi and as director of the African Department of the International Monetary Fund.

He holds a B.S. degree in economics from the University of London.  He also has children living in the United States and going to school here in very prestigious universities as well.  So please join me in welcoming the minister to the podium.

(APPLAUSE)

GONDWE:  Thank you, Ambassador Dr. Frazer, Mr. Pierson, Mr. Sethness, distinguished ladies and gentlemen.  Permit me introduce my colleagues here.  I have the Honorable Joyce Banda sitting over there.  I have the Honorable David Faiti, really the person who is the architect, as far as we're concerned, on our side of this program.

I have the governor of the Central Bank of Malawi, and I have (inaudible) member of parliament (inaudible) northern region.

I am honored to be here today to sign the agreement for the threshold program for the Millennium Challenge Account on behalf of my president, His Excellency Dr. Bingu wa Mutharika, and the entire people of Republic of Malawi.

We are particularly proud and grateful to be second country to sign the agreement (inaudible).  This occasion marks a milestone in the relations between United States of America and Malawi in particular, and Africa in general.

With doubling of aid to Africa and programs such as the Millennium Challenge Account the Presidential Emergency Fund for AIDS Relief, the presidents fighting malaria in Africa the administration of His Excellence President George Bush has embarked on an unprecedented vibrant foreign policy on Africa which epitomizes the generosity of the American people.  We are indeed very grateful for it.

On its part, the government of Republic of Malawi is determined to drive the country out of abject poverty and improve the quality of life of its people.  In this respect, the government's development strategy is premised on fiscal discipline and zero tolerance on corruption to ensure not only market economic stability but also optimal utilization of resources.

It is in this vein that the Malawi threshold country plan focuses on interventions to build capacity, to fight corruption and ensure proper management of public finances.

Corruption is an enemy of development and prosperity.  It robs the people, especially the poor, of their rights to economic well being by diverting resources away from economics and social development.

Our strategy in the country plan, therefore, focuses on the broad underlying pieces of the governance environment.  It also proposes specific ways in target institutions to improve systems and procedures and install mechanisms of restraint.

Specifically, we will undertake 18 interventions over a two-year period of the threshold program, which includes building legal skills capacity, increasing the effectiveness of the law enforcement agencies, strengthening added capacity and building (inaudible) abilities.

Apart from addressing corruption, the program is also intended to improve the country's credit rating.  We are convinced that if corruption is stemmed and finances are well managed, the country's credit rating will be improved.

The signing of this program could not only have -- could not have come at a better time than this, when the International Monetary Fund has just approved a three-year arrangement for Malawi under the Poverty Reduction and Growth Facility.

This is in recognition of the positive steps being undertaken by our-- to improve the country's economy which had significantly deteriorated at the time when President Bingu wa Mutharika took over power in May 2004.

I want to assure the government of United States through you, Ambassador Frazer, that as a government we are determined to enhance the welfare of our people in all aspects.  We have therefore decided to take up the challenge by the United States, et al.  Give us two years, and you will see discernible change in Malawi.

Lastly, let me once again thank the government and the people of United States of America for their continued generosity.

In particular, I wish to thank officials from the Millennium Challenge Corporation and United States Agency for International Development; the Department of State, including the American Embassy in Lilongwe, have done a lot to encourage us in this endeavor; and everybody else who made this day possible.

May God bless Malawi and the United States of America.  Thank you very much.

(APPLAUSE)

END