INTER-AMERICAN DEVELOPMENT BANK REGIONAL OPERATIONS DEPARTMENT II

Transcripción

1 INTER-AMERICAN DEVELOPMENT BANK REGIONAL OPERATIONS DEPARTMENT II REPORT ON THE CONSULTATIVE GROUP MEETING FOR THE RECONSTRUCTION AND TRANSFORMATION OF NICARAGUA IDB HEADQUARTERS Washington, D.C May 23-24, 2000

2 INTER-AMERICAN DEVELOPMENT BANK REGIONAL OPERATIONS DEPARTMENT II REPORT ON THE CONSULTATIVE GROUP MEETING FOR THE RECONSTRUCTION AND TRANSFORMATION OF NICARAGUA IDB HEADQUARTERS May 23-24, Summary Report of Proceedings 2. Agenda 3. List of Participants 4. Opening Statement by Dr. Arnoldo Alemán, President of the Republic of Nicaragua 5. Opening Remarks by Mr. Enrique V. Iglesias, President of the Inter-American Development Bank 6. Introductory Remarks by Mr. Miguel E. Martínez, Manager, Regional Operations Department II 7. Report by the Stockholm Follow-up Group 8. Closing Statement by Mr. Miguel E. Martínez, Manager, Regional Operations Department II 9. Press Release

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4 1. SUMMARY REPORT OF PROCEEDINGS

5 SUMMARY REPORT OF PROCEEDINGS The Consultative Group meeting for Nicaragua, hosted by the Inter-American Development Bank was held in Washington, D.C. at IDB headquarters on May 23-24, The meeting was attended by over 45 delegations representing bilateral donors, multilateral lending institutions, U.N. agencies, and high level representatives of the Nicaraguan Government and a broad spectrum of members of Nicaragua s civil society. This meeting for Nicaragua was a country-specific follow-up to the Consultative Group meeting held in Stockholm, Sweden in May 1999, co-hosted by the Government of Sweden and the IDB, which reviewed the National Reconstruction and Transformation Plans of each of the Central American countries hit by hurricane Mitch in October 1998, the worst natural disaster in the history of Central America, resulting in enormous physical destruction and in the loss of thousands of lives. In Stockholm, the donor community pledged more than US$9 billion in humanitarian aid, long-term concessional loans and debt relief for the Central American countries. The donors and beneficiary countries also agreed to the Stockholm Declaration, which calls for them to work together to reduce poverty and promote sustainable growth within a framework of democracy, respect for human rights, the rule of law, good governance and transparency, decentralization, and the reduction of ecological vulnerability. The President of the IDB, Mr. Enrique V. Iglesias, in his opening remarks stated that this Consultative Group meeting for Nicaragua reflects the best example of international solidarity to help the Nicaraguan people fulfill their aspirations for consolidating democracy and achieving sustainable and equitable development. The Government was commended for the excellent and comprehensive documentation prepared for this meeting and for its exemplary consultation process which involved NGO s, the private sector, municipal authorities, and the indigenous population, as well as members of the international community. The Consejo Nacional de Planificación Económica y Social (CONPES) was recognized as the key mechanism for continuing this consultation process and for effectively monitoring progress in the implementation of the National Plans. In , despite the damage by hurricane Mitch, Nicaragua s macroeconomic performance was solid with increasing annual growth rates and declining levels of inflation. Recently there have been some slippages, and the donors encouraged the Government in its efforts to implement a series of policy measures which should bring it back on track with the IMF program, and emphasized the importance of Nicaragua maintaining macroeconomic stability and going forward with its privatization programs, with greater reliance on the private sector, as well as expanding trade liberalization to enable Nicaragua to

6 - 2 - compete in the global economy. The servicing of Nicaragua external debt continues to be a severe program absorbing an enormous amount of domestic resources which could be used instead for economic and social development. Donors stated that Nicaragua benefitting from the HIPC Initiative was a top priority and support Nicaragua s efforts to develop a poverty reduction program with broad civil society participation, and good governance programs so that Nicaragua can attain HIPC Initiative decision point as soon as possible. Nicaragua s application of the Stockholm principles in its National Plans were discussed in great detail. The Stockholm Follow-up Group submitted a report on their coordination efforts with the Government and their observations concerning Nicaragua s progress and challenges regarding implementation of the Stockholm principles. There was unanimous agreement that poverty reduction is the overriding development goal and challenge confronting Nicaragua. The Government was congratulated for its comprehensive poverty reduction strategy developed with deep involvement of the civil society, which is essential for the sustainability of the strategy. The strategy has a solid analytical basis and contains three basic pillars: the generation of broadbased economic growth emphasizing modernization of the rural sector; the improvement of human capital, particularly of the rural poor; and the maintenance of an adequate safety net for the poor. It was recommended that in the implementation stage, the following factors need more attention: concentrating on modernizing agriculture, particularly increasing the production and incomes of small farmers, which is key for economic growth and reducing poverty because 70% of Nicaragua s poor live in the rural areas; and defining precise priorities and integrating the costs of poverty reduction program into the national budget. During the meeting, issues of good governance and transparency received major attention. said: President Alemán in his opening statement stressed the critical importance of governance when he Without good governance it is impossible to wage a frontal war against poverty and to solidify the structures of stable development. Many donors echo this same sentiment and added that good governance is essential for maintaining democracy and promoting social justice. Transparency requires a public administration that is honest and efficient with the responsibilities

7 - 3 - of public institutions clearly established and with accountability by public officials in the use of public funds. The Nicaraguan Government recognizes the need for action in this area. A program for improving public procurement and contracting, developed with the assistance of the IDB, was recently enacted under the Ley de Contrataciones del Estado and requires continued support of the donor community for its implementation. The Office of the Controller is the most important institution for combating corruption. Concern was expressed that the recent changes in the Ley de Reforma de la Controlaría be implemented in a manner that maintains the independence and professionalism of the Controller s Office. Donors recommended that in order for the Controller s Office to carry out its mission effectively requires: developing an internal plan of action with defined priorities; having access to all necessary information for its investigations; making its reports public and vigorously pursuing anyone guilty of misconduct; and receiving adequate budget resources to carry out its mission. During the 1990's, for the first time in its history, Nicaragua experienced the transfer of governmental power via free elections. The democratic process in Nicaragua needs to be consolidated by ensuring that national and local elections are held as planned and that the Supreme Electoral Council apply the new Electoral Law in a manner that protects the voting rights of all citizens and facilitates fair and open elections. The Government is strengthening the responsibilities and capacities of municipal authorities with the Ley de Carrera Administrativa y de Servicio Civil and the Proyecto de Fortalecimiento y Desarrollo de los Municipios. However, the Government s basic strategy is to go slow with decentralization because municipalities have limited financial and management capacities which limits their efficiency in delivering public services. Donors emphasized that decentralization is key to participation and promotes local democracy, and called for expanding the capacity of municipalities by providing them with adequate financial resources and expanded training to strengthen technical and management capacity at the local level. Furthermore, they pointed out that allowing local people to identify local priorities leads to more efficient use of resources. Hurricane Mitch clearly demonstrated the linkage between poverty and ecological degradation. The Nicaraguan Government is pursuing a two-pronged approach involving a major poverty reduction strategy and disaster mitigation program, coupled with improved national resource management. The challenge now is to fully develop early warning systems to monitor climatic risks and expand disaster response capacity at the municipal level, coupled with investments in reforestation and watershed protection. Donors welcomed the Government s plans in this area and pledged continued support to help reduce Nicaragua s vulnerability to natural disasters and environmental degradation.

8 - 4 - There was general agreement that the meeting was very successful in providing a good ambiance for full and frank exchange of views which contributed to building the mutual understanding and confidence required for continued cooperation between the Government, the civil society and the international community. The donor community reaffirmed its strong support for Nicaragua s efforts to modernize its economy and transform its society. In response to the donors recommendation for a CG meeting next year, IDB indicated its willingness to organize such meeting at the request of the Nicaraguan Government.

9 2. AGENDA

10 REVISED Page 1 of 3 TENTATIVE AGENDA INTER-AMERICAN DEVELOPMENT BANK REGIONAL OPERATIONS DEPARTMENT II CONSULTATIVE GROUP MEETING FOR NICARAGUA 2:00 p.m. - 6:00 p.m. Registration of Participants ANDRES BELLO AUDITORIUM Washington, D.C. May 22-24, 2000 Monday, May 22, 2000 Tuesday, May 23, :00 a.m. - 9:00 a.m. Registration of Participants 9:10 a.m. - 9:40 a.m. Opening statement by the President of Nicaragua, Dr. Arnoldo Alemán 9:40 a.m. - 9:50 a.m. Statement by Mr. César Gaviria, Secretary General, Organization of American States 9:50 a.m. 10:00 a.m. Welcoming statement by the IDB President, Mr. Enrique V. Iglesias 10:00 a.m. -10:15 a.m. Coffee break 1015 a.m. - 10:25 a.m. Introductory statement for the Plenary Session by Mr. Miguel E. Martínez, Manager for Mexico, Belize, Central America, Panama, Haiti and Dominican Republic 10:25 a.m. -10:40 a.m. Presentation on Nicaragua s accomplishments, by Mr. Esteban Duque Estrada, Minister of Finance and Governor for Nicaragua to the IDB 10:40 a.m. 11:00 a.m. Presentation on Economic Policies, Macroeconomic Accomplishments and External Debt - Mr. Noel Ramírez, President of the Central Bank of Nicaragua 11:00 a.m. 11:05 a.m. Brief intervention by Civil Society representative, Mr. Roberto Terán, President of the Superior Council of Private Enterprises (COSEP) 11:05 a.m. 11:10 a.m. Brief interventions by Civil Society representatives, Mr. Julio Cárdenas, Private Bank Association (ASOBANC) and/or Mr. Armando Castillo, of the American Chamber of Commerce (AMCHAM) 11:10 a.m. - 11:40 a.m. Summary of the Achievements and Proposals of the Government regarding the Stockholm Declaration (Highlighting Governance issues), by Mr. Mario De Franco, Advisor to the President and Coordinator of the Consultative Group meeting 11:40 a.m. - 11:55 a.m. Brief presentations on the New Constitutional Reforms, by Mr. Iván Escobar Fornos, President of the National Assembly; and on Changes in the General Comptroller s Office, by Mr. Guillermo Argüello Poessy, President of Comptrollers

11 Page 2 of 3 TENTATIVE AGENDA INTER-AMERICAN DEVELOPMENT BANK REGIONAL OPERATIONS DEPARTMENT II CONSULTATIVE GROUP MEETING FOR NICARAGUA ANDRES BELLO AUDITORIUM Washington, D.C. May 22-24, :55 a.m. 12 n. Brief intervention by civil society representative, Ms. Violeta Granera, CIVITAS 12:00 n. - 12:05 p.m. Brief intervention by civil society representative, Mr. Carlos Valle, JCOP 12:05 a.m. - 12:30 p.m. Report of the Follow-up Group regarding the Stockholm Declaration 12:30 p.m. - 1:30 p.m. Discussion 1:30 p.m. - 3:00 p.m. Working lunch hosted by the IDB for the participants in the CG Meeting in Las Américas dining room 3:00 p.m. - 3:30 p.m. Presentation on Decentralization and Municipal Development, by Mr. Norman Caldera, Minister of Development, Industry and Commerce 3:30p.m. - 3:35 p.m. Brief intervention by civil society representative, Ms. Ana Quiroz, Civil Coordinator for Emergency and Reconstruction 3:35 p.m. - 3:40 p.m. Brief intervention by the Governor of the North Atlantic Autonomous Region, Ms. Alba Rivera 3:40 p.m. - 5:20 p.m Discussion 5:20 p.m. - 5:35 p.m. Coffee break 5:35 p.m. - 5:55 p.m. Presentation on Ecological Vulnerability and Early Warning Systems, by Dr. Claudio Gutiérrez, Executive Director, Nicaraguan Institute for Territorial Studies 5:55 p.m. - 6:10 p.m. Presentation on Prevention, Mitigation and Attention to Disasters, by Mr. Arturo Harding, Executive Secretary of the National System for the Prevention, Mitigation and Attention to Disasters 6:10 p.m. - 6:15 p.m. Intervention by civil society representative, Mr. Telémaco Talavera, National Agrarian University (UNA) 6:15 p.m. - 7:30 p.m. Discussion 7:30 p.m. Cocktail party hosted by the Nicaraguan Government (at IDB Terrace, 7 th Floor)

12 TENTATIVE AGENDA Page 3of 3 INTER-AMERICAN DEVELOPMENT BANK REGIONAL OPERATIONS DEPARTMENT II CONSULTATIVE GROUP MEETING FOR NICARAGUA ANDRES BELLO AUDITORIUM Washington, D.C. May 22-24, 2000 Wednesday, May 24, :00 a.m. - 9:40 a.m. Presentation on the Strategy for the Reduction of Poverty, by Mr. Luis Durán, Technical Secretary - Office of the President 9:40 a.m. - 9:45 a.m. Brief intervention by civil society representative, Mr. Ernesto Medina, ` National Autonomous University of Nicaragua - León (UNAN-León) 9:45 a.m. - 9:50 a.m. Brief intervention by civil society representative, Mr. Daniel Núñez, National Agrarian Union (UNAG) 9:50 a.m. - 10:10 a.m. Presentation on issues related to External Aid to Nicaragua and Follow-Up Mechanisms, by Mr. Eduardo Montealegre, Ministry of Foreign Affairs 10:10 a.m. - 10:15 a.m. Brief intervention by civil society representative, Mr. Iván Salvador Madriz, National Project Party (PRONAL) 10:15 a.m. - 10:20 a.m. Brief intervention by civil society representative, Mr. José Augusto Navarro, Union of Nicaraguan Producers (UPANIC) 10:20 a.m. - 10:35 a.m. Coffee break 10:35 a.m. 11:05 a.m. Brief Interventions by members of Political Parties 11:05 a.m. - 1:00 p.m. Discussion 1:00 p.m. - 2:30 p.m. Working lunch reporting on Key Programs on Governance and Social Protection, hosted by the Nicaraguan Government in Las Américas Dining Room 2:30 p.m. - 4:30 p.m. Donors update on status of Stockholm pledges and on disbursement of donors funds 4:30 p.m. - 4:45 p.m. Coffee break 4:45 p.m. - 5:00 p.m. Closing statement by the Government of Nicaragua 5:00 p.m. - 5:15 p.m. Closing statement by the IDB President, Mr. Enrique V. Iglesias 5:30 p.m. Press Conference

13 3. LIST OF PARTICIPANTS

14 INTER-AMERICAN DEVELOPMENT BANK REGIONAL OPERATIONS DEPARTMENT II CONSULTATIVE GROUP MEETING FOR NICARAGUA Washington, D.C. May 23-24, 2000 LIST OF PARTICIPANTS ARGENTINA Mr. Felipe Frydman Minister Embassy of Argentina Washington, D.C. TEL.: HEAD OF DELEGATION Mr. Marcelo Massoni Secretary Embassy of Argentina Washington, D.C. TEL.: AUSTRIA Mr. Hermann Spirik Director Department for Development Cooperation Minoritenplatz 9 A-1014 Vienna, Austria FAX: TEL.: hermannspirik@wien.bmaa.gv.at HEAD OF DELEGATION Mr. Hans Georg Danninger Ministro Cooperación Austriaca para el Desarrollo en Centroamérica Oficina Regional de Cooperación Técnica Embajada de Austria De Plaza España 1 cuadra al Lago Managua, Nicaragua TEL.:

15 Mrs. Doris Kroll NGO Austrian Development Service Contiguo a HISPAMER Managua, Nicaragua TEL.: oednic@ibw.com.niu BELGIUM Mrs. C. Buggenhout Head of Investments Office Embassy of Belgium Washington, D.C. HEAD OF DELEGATION CANADA Mr. James Sutherland Regional Analyst Canadian International Development Agency 200 Promenade du Portage Hull, Quebec Canada K1A 0G4 HEAD OF DELEGATION Mr. Jack Adams Counsellor Development Canadian International Development Agency P.O. Box 500 (MNGUA) STA D Ottawa, Ontario KIN 8T 7 Canada FAX: TEL.: jack.adams@dfait-maeci.gc.ca Mr. Russell Stubbert Deputy Director (LCR) Cuba and Central America Department of Foreign Affairs and International Trade 125 Sussex Drive Ottawa, Ontario KIA 0G2 Canada FAX: (613) TEL.: (613) rwstubbert@hotmail.com

16 CHILE Mr. Arturo Vergara Moreno Programas de Triangulación Agencia de Cooperación Internacional de Chile Teatinos Pisos 10 y 11 Santiago, Chile FAX: TEL.: HEAD OF DELEGATION DENMARK Mr. Christian Oldenburg Head of Department Royal Ministry of Foreign Affairs Asiatisk Plads 2 DK Copenhagen, Denmark FAX: HEAD OF DELEGATION Mr. Orla Bakdal Ambassador Embassy of Denmark Managua, Nicaragua FAX: Mr. Nicolai Prytz Head of Section Royal Ministry of Foreign Affairs Asiatisk Plads 2 DK Copenhagen, Denmark FAX: FINLAND Mr. Risto Veltheim Ambassador for Central America and Haiti Ministry for Foreign Affairs Katajanokanlaituri 3 P.O. Box Helsinki, Finland HEAD OF DELEGATION Mrs. Heidi Pihlatie Chargé d Affairs a.i. for Nicaragua Embassy of Finland Managua, Nicaragua

17 Mr. Hannu Räisänen Desk Officer for Central America Ministry for Foreign Affairs Unit for Latin America P.O. Box Helsinki, Finland FRANCE Mr. Marc Pinguet HEAD OF DELEGATION Conseiller Financier pour l Amérique Latine et les Caraibes Embassy of France Mexico, D.F., Mexico Mr. Jean Louis Sabatié Consejero Cultural y de Cooperación para Centroamérica Embajada de Francia Apartado San José, Costa Rica FAX: (506) PHONE: (506) GERMANY Dr. Volker Ducklau HEAD OF DELEGATION Director for the Mediterranean, Middle East, Latin America and the Caribbean Bundesministerium fur Wirtschaftliche Zusammenarbeit und Entwicklung Friedrich Ebert Allee 40 D Bonn 1, Germany FAX: Mrs. Gisela Habel Desk Officer for Nicaragua and El Salvador Bundesministerium fur Wirtschaftliche Zusammenarbeit und Entwicklung Friedrich Ebert Allee 40 D Bonn 1, Germany FAX: Mr. Ulrich Schoppmeyer Specialist for Nicaragua KfW Palmengarten Strasse Frankfurt, Germany Dr. Michael Dreyer GTZ Local Office in Nicaragua A.P. 489 Managua, Nicaragua

18 - 5 - ISRAEL Mr. Shlomo Cohen Ambassador of Israel to Guatemala, Honduras & Nicaragua Managua, Nicaragua HEAD OF DELEGATION Mr. Yitzhak Abt Senior Agricultural Advisor Center for International Cooperation (MASHAV) Ministry of Foreign Affairs Jerusalem, Israel ITALY Mr. Maurizio Fratini Ambassador Embassy of Italy Managua, Nicaragua HEAD OF DELEGATION Ms. Enrica Lomazzi Desk Officer for Central America Cooperation Ministry of Foreign Affairs Piazza della Farnesina Rome, Italy FAX: TEL.: JAPAN Mr. Masaru Ito Ambasador to Nicaragua Embassy of Japan Managua, Nicaragua HEAD OF DELEGATION Mr. Koichi Maruyana First Secretary Embassy of Japan 2520 Massachusetts Ave., N.W. Washington, D.C

19 MEXICO Mr. Moisés Pineda Padrón Executive Director for Mexico Inter-American Development Bank Washington, D.C. HEAD OF DELEGATION THE NETHERLANDS Mr. Henk Gajentaan HEAD OF DELEGATION Ambassador to Costa Rica, Honduras, El Salvador, Nicaragua, Guatemala Royal Netherlands Embassy San José, Costa Rica Mrs. Margriet Bot Chargé d Affaires Royal Netherlands Embassy Managua, Nicaragua Ms. Wendela Haringhuizen Desk Officer for Central America Western Hemisphere Directorate Ministry of Foreign Affairs P.O. Box EB The Hague, The Netherlands NORWAY Mr. Gunnar Boe Director Asia/Latin America NORAD P.B Dep. N Oslo, Norway FAX: HEAD OF DELEGATION Mr. Hans Peter Melby Advisor Policy Section/Regions Department NORAD P.B Dep. N Oslo, Norway FAX:

20 Ms. Heidi Olufsen Executive Officer Section for Latin America Royal Ministry of Foreign Affairs 7 Juni Plassen / Victoria Terrace Oslo, Norway Tel.: FAX: SPAIN Mr. Carlos Díaz Valcárcel Ambassador Embassy of Spain Managua, Nicaragua HEAD OF DELEGATION Ms. María Pérez Ribes Deputy Director General for Trade Policy with Latin America and ACP Countries Ministry of Economy and Finance Paseo De la Castellana Madrid, Spain FAX: Mr. Alfonso Portabales Subdirector General de Cooperación con México, América Central y el Caribe Agencia Española de Cooperación Internacional Ministry of Foreign Affairs Avda. Reyes Católicos Madrid, Spain Mr. Manuel Casuso Commercial Counselor Embassy of Spain Managua, Nicaragua Mr. Javier Moral Jefe de Area Ministry of Economy and Finance Paseo De la Castellana Madrid, Spain

21 SWEDEN Mrs. Gabriella Lindholm Director for the Americas Department Ministry for Foreign Affairs Rosenbad 4 S Stockholm, Sweden FAX: HEAD OF DELEGATION Ms. Eivor Halkjaer Director Latin American Department Swedish International Development Agency (SIDA) Sveavagen 20 S Stockholm, Sweden FAX: Mr. Jan Bjerninger Ambassador Embassy of Sweden Apartado Postal 2307 Managua, Nicaragua FAX: Mr. Torsten Wetterblad Counsellor Embassy of Sweden Apartado Postal 2307 Managua, Nicaragua FAX: Mrs. Anna Tibblin Delegate from the Swedish NGO s c/o Context, Brännkyrkagatan Stockholm, Sweden FAX: Ms. Asa Westermark Programme Officer Swedish International Development Agency (SIDA) Sveavagen 20 S Stockholm, Sweden FAX: TEL.:

22 SWITZERLAND Mr. Peter Bischof Head of Latin America Division Swiss Agency for Development Cooperation Ministry of Foreign Affairs Freiburgstrasse 130 CH-3003 Bern, Switzerland FAX: HEAD OF DELEGATION Mrs. Ruth Huber Program Officer for Central America Swiss Agency for Development and Cooperation Ministry of Foreign Affairds Freiburgstrasse 130 CH-3003 Bern, Switzerland FAX: Ms. Corinne Delechat Balance of Payments and Debt Relief Operations State Secretariat for Economic Affairs of Switzerland Ministry of Economy Effingerstrasse No. 1 CH-3003 Bern, Switzerland FAX: Mr. Christoph Graf Regional Coordinator for Central America Swiss Agency for Development and Cooperation, SDC/COSUDE Embassy of Switzerland Managua, Nicaragua FAX: UNITED KINGDOM Ms. Alexandra Archbold Head Latin America, Caribbean and Atlantic Department Department for International Development 94 Victoria Street London SW1E 5JL, United Kingdom FAX: TEL.: HEAD OF DELEGATION

23 Ms. Helen Appleton Social Development Adviser Latin America, Caribbean and Atlantic Department Department for International Development 94 Victoria Street London SW1E 5JL, United Kingdom FAX: TEL.: Mr. Roy Osborne Ambassador British Embassy Los Robles Managua, Nicaragua FAX: TEL.: Dr. Simon Harkin Head of Mexico and Central America Section Foreign and Commonwealth Office King Charles St. London SW1A..., United Kingdom FAX: TEL.: UNITED STATES Mr. Carl Leonard Acting Assistant Administrator Bureau for Latin America and the Caribbean U.S. Agency for International Development Ronald Reagan Building 1300 Pennsylvania Ave., N.W. - Room 5.88 Washington, D.C. FAX: HEAD OF DELEGATION Mr. Oliver P. Garza Ambassador American Embassy Managua, Nicaragua Ms. Susan D. Wood Deputy Assistant Secretary for Western Hemisphere Affairs U.S. Department of State Washington, D.C.

24 Mr. Michael Deal Deputy Assistant Administrator Bureau for Latin America and the Caribbean U.S. Agency for International Development Ronald Reagan Building 1300 Pennsylvania Ave., N.W. Washington, D.C. Ms. Marilyn Zak Mission Director USAID Mission to Nicaragua Managua, Nicaragua Mr. John Keane Director Office of Central American and Panamanian Affairs Bureau of Western Hemisphere Affairds U.S. Department of State Washington, D.C. Mr. Donald Boyd Director Office of Central American Affairs Bureau for Latin America and the Caribbean U.S. Agency for International Development Ronald Reagan Building 1300 Pennsylvania Ave., N.W. Washington, D.C. Mr. Neil Levine Deputy Director Office of Central American Affairs Bureau for Latin America and the Caribbean U.S. Agency for International Development Ronald Reagan Building 1300 Pennsylvania Ave., N.W. Washington, D.C. Mr. Gregory Thome Desk Officer for Nicaragua Office of Central American and Panamanian Affairs Bureau of Western Hemisphere Affairs U.S. Department of State Washington, D.C.

25 Ms. Linda Bernstein Desk Officer for Nicaragua Office of Central American Affairs Bureau for Latin America and the Caribbean U.S. Agency for International Development Ronald Reagan Building 1300 Pennsylvania Ave., N.W. Washington, D.C. Ms. Audrey Solis Auditor U.S. General Accounting Office Washington, D.C. Ms. Cheryl Goodman Senior Program Evaluator National Security and International Affairs Division U.S. General Accounting Office Washington, D.C. Ms. Barbara Holloway International Economist Office of International Debt Policy U.S. Department of Treasury Washington, D.C. Ms. Lydia Williams Special Advisor Office of Development Finance U.S. Department of the Treasury Washington, D.C. Ms. Meg Donovan Nicaragua Desk Officer Office of Latin America and Caribbean Nations U.S. Department of the Treasury Washington, D.C. Ms. Karen Anderson Democracy and Human Rights Team Office of Regional Sustainable Development Bureau for Latin America and the Caribbean USAID Washington, D.C. Mr. Alonzo Wind Population, Health and Nutrition Office of Regional Sustainable Development

26 Bureau for Latin America and the Caribbean USAID Washington, D.C. NICARAGUA Estado de Nicaragua Dr. Arnoldo Alemán Presidente de la República Mr. Esteban Duque Estrada Ministro de Hacienda y Crédito Publico y Gobernador ante el BID Mr. Eduardo Montealegre Ministro de Relaciones Exteriores Mr. Norman Caldera Ministro de Fomento, Industria y Comercio (MIFIC) Mr. Noel Ramírez Presidente, Banco Central de Nicaragua Mr. Luis Durán Downing Secretario Técnico de la Presidencia Mr. Mario De Franco Asesor de la Presidencia y Coordinador del Grupo Consultivo Mr. Jaime Morales Carazo Asesor Personal del Presidente Mr. Alfredo Fernández García. Secretario Personal del Presidente de la República Mr. Donald Montenegro Pasquier Médico del Presidente de la República Mr. Iván Escobar Fornos Presidente de la Asamblea Nacional Mr. Roberto Rivas

27 Presidente, Consejo Supremo Electoral Mr. Francisco Plata Presidente, Corte Suprema de Justicia Mr. Guillermo Poessy Contraloría General de la República Mr. Salvador Stadthagen Secretario de Cooperación Externa del Ministerio de Relacione s Exteriores Mr. Mario Flores Gerente General del Banco Central Mr. Carlos Noguera Director Ejecutivo del Fondo de Inversión Social de Emergencia (FISE) Mr. Carlos Lacayo FISE Mr. Mario Arana Asesor del Secretario Técnico de la Presidencia Mr. Juan Carlos Gutiérrez Asistente del Ministro de Hacienda y Crédito Publico Mr. Eddy Jerez Asistente del Asesor Presidencial Mr. Javier Llanes Cancillería, Protocolo Mr. Francisco Javier Aguirre Embajador de Nicaragua ante la Casa Blanca Mr. Francisco Aguirre-Baca Mr. Bosco Matamoros Embajador de Nicaragua en España Mr. Ovidio Reyes Banco Central de Nicaragua

28 Mr. José Marquéz Gerente de Operaciones Internacionales del Banco Central de Nicaragua Mr. Claudio Gutiérrez Director del Instituto Nicaragüense de Estudios Territoriales (INETER) Mr. Juan Marcos García Ministro-Consejero de la Embajada de Nicaragua Mr. Jorge Wong-Valle Consejero de la Embajada de Nicaragua Mr. Mauricio Rivas Consejero de la Embajada de Nicaragua Mr. Harold Rivas Cónsul de Nicaragua en Estados Unidos Mr. Arturo Harding Secretario Ejecutivo del Sistema Nacional de Mitigación, Prevención y Atención de Desastres Mr. Rodrigo Barreto Asesor, Consejo Supremo Electoral Mr. Felipe Sánchez Consejo Supremo Electoral Mr. Adonai Jiménez Consejo Supremo Electoral Mr. Arturo Tobar Mr. Tarcisio Castañeda Mr. Rodrigo Roman Mr. Roberto Incer

29 Sociedad Civil Mr. Roberto Teran Presidente del Consejo Superior de la Empresa Privada (COSEP) Mr. Armando Castillo Presidente de la Cámara de Comercio Nicaragüense-Americana (AMCHAM) Mr. Daniel Nuñez Presidente de la Unión Nacional de Agricultores (UNAG) Mr. José Agusto Navarro Presidente de Unión de Productores Nicaragüenses (UPANIC) Mr. Julio Cárdenas Presidente de la Asociación de Bancos Privados (ASOBAMP) Ms. Violeta Granera Directora Ejecutiva de CIVITAS Ms. Ana Quiroz CCER Mr. Telemaco Talavera Rector de la Universidad Nacional Agraria (UNA) Ing. Mario Caldera Alfaro Rector Universidad Nacional de Ingeniería Mr. Ramón Gamez MCN Mr. Carlos Valle Representante de las Juntas Comunitarias de Obras y Progreso (JCOP) Mr. Oscar Castillo (se paga solo)

30 JCOP Mr. José Antonio Zepeda Representante del Frente Nacional de Trabajadores (FNT) Mr. Roberto Rodríguez Obando Representante de Camino Cristiano Mr. Bayardo Arce Diputado a la Asamblea Nacional por el Frente Sandinista de Liberación Nacional (FSLN) Mr. Carlos Hurtado Partido Alianza Conservadora Mr. Emiliano Enríquez Lacayo Partido Alianza Conservadora Mr. Roberto Cedeño Partido Liberal Constitucionalista (PLC) Mr. Leopoldo Navarro PLC Mr. Francisco Guzmán Pasos Rector de la Universidad Nacional Autónoma de Managua Mr. Manuel Castillo CPT Mr. Ernesto Medina Rector de la Universidad Nacional Autónoma de Nicaragua, sede de León Mr. Randolph Hodgson Gobernador de la Región del Atlántico sur (RAAS) Ms. Alba Vallejos Gobernadora de la Región del Atlántico Norte (RAAN) Mr. Abelardo Matta Representante de la Iglesia Católica

31 Mr. Ivan Salvador Madriz PRONAL Mr. Abel Reyes Tellez Social Cristiano Mr. Manuel Ortega Coordinadora Civil para la Emergencia y la Reconstrucción (CEER) Mr. Ricardo Zambrana Godoy CEER Mr. Víctor Campo, CCER CABEI INTERNATIONAL ORGANIZATIONS Lic. Fernando García Executive Vice-President Central American Bank for Economic Integration Edificio del Banco Centroamericano Bulevar Suyapa contiguo a Supermercado La Colonia Tegucigalpa, D.C., Honduras, C.A. HEAD OF DELEGATION Mr. Luis Ernesto Santamaría Financial Manager Central American Bank for Economic Integration Edificio del Banco Centroamericano Bulevar Suyapa contiguo a Supermercado La Colonia Tegucigalpa, D.C., Honduras, C.A. FAX: TEL.: Mr. Eduardo Membreño Department of International Financing Central American Bank for Economic Integration Edificio del Banco Centroamericano Bulevar Suyapa contiguo a Supermercado La Colonia Tegucigalpa, D.C., Honduras, C.A. Lic. Eugenio Sánchez Foreign Relations Department Central American Bank for Economic Integration

32 Edificio del Banco Centroamericano Bulevar Suyapa contiguo a Supermercado La Colonia Tegucigalpa, D.C., Honduras, C.A. CENTRO DE AGRICULTURA TROPICAL, INVESTIGACION Y EDUCACION (CATIE) Mr. Pedro Ferreira Director General CATIE San José, Costa Rica HEAD OF DELEGATION Mr. Alan González Director Programa Proyección Externa CATIE San José, Costa Rica

33 Ms. María Eugenia Pineda Coordinadora CATIE Tegucigalpa, Hondura EUROPEAN COMMISSION Mr. Giorgio Mamberto Head of Commission s Delegation to Nicaragua Commission of European Economic Communities Managua, Nicaragua HEAD OF DELEGATION Mr. Antonio Crespo Desk Officer for Nicaragua and Costa Rica Task Force Mitch (DG ER/G2) Commission for European Economic Communities Rue de la Loi 200 B-1049 Brussels, Belgium FAX: TEL.: FOOD AND AGRICULTURAL ORGANIZATION OF THE UNITED NATIONS (FAO) Mr. Francisco J. Proenza HEAD OF DELEGATION Economist Investment Centre Division Technical Cooperation Department Inter-American Development Bank Washington, D.C. proenza-fao@iadb.org INTER-AMERICAN INSTITUTE FOR COOPERATION ON AGRICULTURE (IICA) Dr. Larry M. Boone HEAD OF DELEGATION Subdirector General Inter-Amerian Institute for Cooperation on Agriculture Carretera A. Coronado s/n San José, Costa Rica FAX: TEL.: Dr. John Miranda Regional Director (U.S.A., Canada, Mexico) Inter-American Institute for Cooperation on Agriculture (IICA) 1775 K St., N.W. Washington, D.C

34 FAX: TEL.: Mr. Gregorio Contreras Regional Director (Central America) Inter-American Institute for Cooperation on Agriculture (IICA Apartado Postal 1815, C.P Guatemala, Guatemala FAX: / TEL.: Dr. Jaime Mauricio Salazar IICA Representative in Nicaragua Apartado Postal 4830 Managua, Nicaragua FAX: TEL.: / Lic. Xinia López International Cooperation Specialist Inter-American Institute for Cooperation on Agriculture (IICA) Coronado San José, Costa Rica FAX: / TEL.: INTERNATIONAL LABOR OFFICE (ILO) Mr. Javier Escobar Director a.i. ILO Office in San José Apartado Postal San José 1000, Costa Rica FAX: TEL.: jescobar@oit.org.cr INTERNATIONAL MONETARY FUND (IMF) Mr. Miguel Bonangelino Deputy Director Western Hemisphere Department International Monetary Fund th St., N.W. Office Washington, D.C. HEAD OF DELEGATION

35 Mr. Claudio Loser Director Western Hemisphere Department International Monetary Fund th St., N.W. Office Washington, D.C. FAX: Mr. Jorge Guzmán Deputy Division Chief South Central America Division International Monetary Fund th St. NW Washington, D.C FAX: TEL.: Mr. Leonardo Cardemil Advisor Western Hemisphere Department International Monetary Fund th St., N.W. Washington, D.C FAX: TEL.: Mr. Toma Gudac Senior Economist South/Central American Division II International Monetary Fund th St. NW Washington, D.C FAX: TEL.: BOARD OF EXECUTIVE DIRECTORS - IMF Ms. María Antonieta Bonilla Advisor to the Executive Director for Central America, Mexico, Spain and Venezuela International Monetary Fund th St., N.W. Washington, D.C FAX: TEL.:

36 INTERNATIONAL ORGANIZATION FOR MIGRATION (IOM) Mr. Iván Dávalos Chief of Mission International Organization for Migration Apartado 3477 Managua, Nicaragua FAX: iommanagua@iom.int HEAD OF DELEGATION Mr. Roberto Kozak Regional Representative International Organization for Migration Apartado San Pedro, Costa Rica rkozac@iom.int Mr. Raúl Vergara Regional Advisor International Organization for Migration Apartado San Pedro, Costa Rica rvergara@iom.int ORGANIZATION OF AMERICAN STATES (OAS) Mr. César Gaviria Secretary General Organization of American States 17th & Constitution Ave., N.W. Washington, D.C. FAX: ó HEAD OF DELEGATION Mr. Ronald Scheman Director General Inter-American Agency for Cooperation and Development 1889 F St., N.W. Washington, D.C FAX: TEL.: Ms. Elizabeth Spehar Executive Coordinator Unit for Promotion of Democracy 1889 F St, N.W. Washington, D.C.

37 Mr. John Wood Acting Director for Promotion of Cooperation Director for Promotion of Cooperation Inter-American Agency for Cooperation and Development 1889 F St., N.W. Washington, D.C FAX: TEL.: Ms. Anne Marie Blackman Adviser Unit for Promotion of Democracy 1889 F St., N.W. Washington, D.C. Ms. Yacsire Cutler Regional Coordinator for Central America Inter-American Agency for Cooperation and Development 1889 F St., N.W. Washington, D.C. Mr. Pedro Bastidas Unit for Sustainable Development and Environment 1889 F St., N.W. Washington, D.C. ORGANIZACION DE ESTADOS IBEROAMERICANOS PARA LA EDUCACION, LA CIENCIA Y LA CULTURA (OEI) Mrs. Abigail Castro de Pérez HEAD OF DELEGATION Regional Director for Central America and Panama Oficina Regional de la Organización de Estados Iberoamericanos para la Educación, la Ciencia y la Cultura (OEI) Pasaje Istmania, 315 Colonia Escalón San Salvador, El Salvador FAX: TEL.: / / direccion@oei.org.sv Mr. Salvador Muñoz Martínez Dirección General de Recursos para la Cooperación Organización de Estados Iberoamericanos para la Educación, la Ciencia y la Cultura (OEI) Bravo Murillo Madrid, España

38 FAX: TEL.: smunoz@oei.es PAN-AMERICAN HEALTH ORGANIZATION (PAHO) Lic. Carolina Báscones External Relations Officer Pan American Health Organization 525 Twenty-Third Street, N.W. Washington, D.C HEAD OF DELEGATION SISTEMA DE LA INTEGRACION CENTROAMERICANA (SICA) Mr. Omar Orozco Director Unidad de Cooperación Sistema de Integración Centroamericana (SICA) Aptdo. Postal Centro Comercial Gigante San Salvador, El Salvador FAX: ó 6125 HEAD OF DELEGATION UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP) Mr. Carmelo Angulo Resident Coordinator of the UN System and Resident Representative of UNDP Managua, Nicaragua TEL.: carmelo.angulo@undp.org HEAD OF DELEGATION Mr. René Mauricio Valdés Coordinator Central America Unit UNDP New York, New York Mr. Alvaro Herdocia Assistant Resident Representative UNDP Managua, Nicaragua

39 UNESCO Mr. Juan Chong HEAD OF DELEGATION Director, UNESCO Office for Central America and Panama Apartado postal San Francisco de Guadalupe San José, Costa Rica Fax TEL.: Ms. Isabel de Paco Administrative Officer UNESCO Office for Central America and Panama San José, Costa Rica FAX: (506) PHONE: (506) UNICEF Dr. Juan Aguilar León UNICEF Representative in Nicaragua Apartado Postal 5541 Managua, Nicaragua FAX: TEL: jaguilar@unicef.org HEAD OF DELEGATION UNITED NATIONS POPULATION FUND (UNFPA) Mr. Tomás Jiménez Araya Representative UNFPA Apartado Postal 3260 Managua, Nicaragua FAX: TEL.: /41/42 tjimenez@unfpanic.org.ni HEAD OF DELEGATION WORLD BANK Mr. David de Ferranti Vice-President for Latin America World Bank 1818 H St., N.W. Washington, D.C HEAD OF DELEGATION

40 Mrs. Donna Dowsett-Coirolo Director Central America Country Management Unit Latin American and Caribbean Region World Bank 1818 H St., N.W. Washington, D.C FAX: Mr. Ulrich Lachler Resident Representative World Bank Managua, Nicaragua Ms. Nicolette Bowyer Country Officer Latin America Department World Bank 1818 H St., N.W. Washington, D.C Mr. Stig Tromer Country Analyst Latin America Department 1818 H St., N.W. Washington, D.C Mrs. Suzana Campos Augusto Senior Operations Officer Latin America Department World Bank 1818 H St., N.W. Washington, D.C Ms. Helena Ribe Sector Leader Human Development Central American Country Management Unit World Bank

41 BOARD OF EXECUTIVE DIRECTORS - WORLD BANK Mr. Federico Ferrer Executive Director for Spain, Mexico, Venezuela and Central America World Bank 1818 H St., N.W. Washington, D.C FAX: PHONE: Dr. Oscar Núñez Sandoval Advisor to the Executive Director for Spain, Mexico, Venezuela and Central America World Bank 1818 H St., N.W. Washington, D.C WORLD FOOD PROGRAMME (WFP) Ms. Rosa Inés Antolin Liaison Officer for Latin America and Caribbean World Food Programme (WFP) Via Cesare Giulo Viola 68/70 Parco dei Medici Rome, Italy FAX: / HEAD OF DELEGATION INTER-AMERICAN DEVELOPMENT BANK Mr. Enrique V. Iglesias President Inter-American Development Bank Inter-American Investment Corporation HEAD OF DELEGATION Ms. K. Burke Dillon Executive Vice-President Inter-American Development Bank Mr. Miguel E. Martínez Manager Regional Operations Department II (Mexico, Belize, Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Haiti and Dominican Republic)

42 Mrs. Setsuko Ono Deputy Manager Financial Support Services Subdepartment Regional Operations Department II Mr. Jorge Sapoznikow Chief Countries Division 3 (Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua) Mr. Lionel Nicol Chief Social Programs Division Regional Operations Department II Mr. Robert Kaplan Chief Environment and Natural Resources Management Division Regional Operations Department II Mr. Marcelo Antinori Finance and Basic Infrastructure Division Regional Operations II Mr. David Atkinson IDB Representative in Nicaragua Managua, Nicaragua Mr. Jorge Claro de la Maza Chief Procurement Policy and Coordination Office Regional Operations Support Office IDB BOARD OF EXECUTIVE DIRECTORS Mr. Edgard Guerra, Executive Director for Belize, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua Mr. Larry Harringon Executive Director for the United States Alvaro Rengifo, Executive Director for Austria, Denmark, Finland, France, Norway, Spain and Sweden Mr. José Carlos Quirce, Alternate Executive Director for

43 Belize, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua Ms. Mirja Peterson, Alternate Executive Director for Austria, Denmark, Finland, France, Norway, Spain and Sweden Ms. Sandra De Midence Advisor to the Executive Director for Central America and Belize Mr. Robert Pantzer Advisor to the Executive Director for Belgium, Germany, Italy, Israel, The Netherlands and Switzerland Mr. Flemming Nichols, Counselor Office of the Executive Director for Austria, Denmark, Finland, France, Norway, Spain and Sweden Mr. Pekka Hukka Counselor Office of the Executive Director for Austria, Denmark, Finland, France, Norway, Spain and Sweden

44 OBSERVERS GUATEMALA Lic. Antonio Blanco Director de Financiamiento Externo Ministerio de Finanzas Públicas Lic. Arturo Tobar Director de Análisis Fiscal Ministerio de Finanzas Públicas Lic. Lionel Figueredo Asesor del Ministro de Finanzas Públicas Lic. Ariel Rivera Irías Ambassador of Guatemala Embassy of Guatemala Washington, D.C. Lic. Lionel Maza Counselor Embassy of Guatemala Washington, D.C. HONDURAS Lic. Glenda Gallardo Director Unidad de Apoyo Técnico del Despacho Presidencial (UNAT) Apdo. Postal 4822 Tegucigalpa, Honduras FAX: TEL.: /58 TAIPEI, CHINA Mr. Bennet Chen Deputy Director, Economic Division Taipei Economic and Cultural Representative Office in the U.S. Washington, D.C. Mr. Steve Hsia Senior Assistant Taipei Economic and Cultural Representative Office in the U.S.

45 Washington, D.C

46 4. OPENING STATEMENT BY DR. ARNOLDO ALEMAN, PRESIDENT OF THE REPUBLIC OF NICARAGUA English Spanish

47 GOVERNMENT OF NICARAGUA REMARKS OF THE HONORABLE DR. ARNOLDO ALEMAN, PRESIDENT OF NICARAGUA BEFORE THE CONSULTATIVE GROUP Washington, D.C. May 23, 2000

48 REMARKSOF THE HONORABLE DR. ARNOLDO ALEMAN, PRESIDENT OF NICARAGUA BEFORE THE CONSULTATIVE GROUP WASHINGTON, DC May 23, 2000 With courage and discipline, and at considerable social and political cost, Nicaragua has traveled a great distance in its quest to become eligible for assistance under the HIPC initiative. We have stayed the course of this pilgrimage in order to preserve the prospect of this singularly exceptional opportunity for international debt relief. This assistance, prompted as much by generosity as by realism, will be invaluable to us in our efforts to modernize Nicaragua and emerge from the black hole of asphyxiating external debt, the legacy of a past marked by violence and confrontation. At the beginning of my administration, in January 1997, with firm determination and discipline we embarked on a complex and difficult process of profound changes, restructuring and adjustment, leading up to an ESAF agreement with the IMF that enabled Nicaragua to plan its future with a new vision marked by realism and confidence. We were well aware of how bitter the pill would be. But we also knew that we had no choice but to swallow it and that the pain would be temporary. We were just as certain that recovery and improvement would soon follow, once we got past the most difficult part of the treatment. At the same lime, we devoted our limited resources to rebuilding the country's basic infrastructure, both institutional and physical, in an effort to make up for the decade that we lost to military conflict, the 1980s. That was a period that we hope never returns, when, in the words of the Chilean poet Vicente Huidabro, "'the hours lost their sense of time." We assigned the highest priority to strategic sectors such as telecommunications and agriculture, to promoting private investment, and to ensuring that the most basic human needs were met. These strategic sectors had been completely neglected with catastrophic consequences for the country, victims of the violence and destruction perpetrated by past dictatorships and of the ideological and geopolitical conflicts that marked the final stages of the Cold War into which we were unwillingly thrust. Fortunately, those conflicts are now part of history, but some of their effects linger on and will require more time to heal completely. In this process of change, we Nicaraguans believe that ours was an exceptional case, since we managed to avoid the dramatic decomposition and turmoil that plagued several countries of the former Eastern European socialist bloc, Russia included, following the abrupt and traumatic transformation from totalitarian governments with command economies to free market-oriented democracies. Nonetheless, it neither possible nor fair to view Nicaragua through the same lens as other developing countries that have not lived through this particular type of transition.

49 We also wanted to stop being, as one presidential advisor put it half-jokingly "'the country- with the most studies and strategies in the world" and 'the poor country richest in million-dollar studies, with an army of consultants, experts and strategists." We have proceeded to implement simple but concrete actions, guided by clear ideas, albeit without the benefit of some of the more advanced planning instruments. We have carried out a number of projects of obvious urgency, impact and viability, running the obvious risks associated with a certain degree of improvisation and haste. The legions of the poor and unemployed have been waiting impatiently, abandoned and without hope, for years, indeed for centuries. They may not be able to resist much longer the effects of bitter medicine, ill-defined remedies and the heavy burden of adjustment they don t need more ""studies" on the extent of their poverty, or more Byzantine discussions to determine how it should be measured! We prefer deeds to words. We must being an end to years of passivity and indifference. We must get beyond the culture of dependence on foreign aid -It will take time to break these entrenched patterns, as well as hard work, training, and a renewed sense of national self-esteem. Nicaragua's unique historical circumstances prompted my Government to declare the achievement and preservation of stability as one of its most important strategic goals. We have sought to promote stability through dialogue and the search for consensus with the most representative groups of the political opposition. We have been demonized and subjected to the opportunism and the selfish interests of those who reject the civilized path of dialogue. There can be no real reconciliation without forgiveness. Reconciliation is an arduous and often bitter and thankless process, but one that is absolutely essential to guarantee a brighter future for Nicaragua. Dialogue is the centerpiece of a dynamic of mutual concessions. It requires flexibility and tolerance as well as firm convictions and unwavering principles and values. The result is that, today, Nicaraguans live in an atmosphere of political stability, peace, and the full enjoyment of civil rights and freedoms. This situation has enabled us to push forward with a development program that is objective and visible to all, which cannot be obscured from view by silence or disinformation. A key element of this process has been the institutionalization of the Nicaraguan Army and the National Police, and their subordination to duly elected civilian authority. The normal and peaceful rotation of the Commander in Chief of the Army, which took place in recent weeks, is a clear example of the improvements in governance that we have been promoting and consolidating. In my Third Annual Report to the National Assembly, I made reference to the well-known, much-debated and ancient concept of governance, since, judging from its ubiquitous reappearance in the agendas and the terminology of diverse entities; it would appear to be a concept of very recent vintage. Respectfully, and with a liberal mind always open to new philosophical currents on politics and theories of the State, I tried to convey what I perceive to be the meaning of the term. On that occasion, I said, "'By governance, we mean a situation of peace, with sustained stability and tranquility, in which law, order, security and justice prevail, enabling economic development