Annual Development Cooperation Conference

Lugano, 27.09.2013 - Closing speech (high German) by Federal Councillor Johann, N. Schneider-Ammann, Head of Federal Department of Economic Affairs Education and Research | Palazzo dei Congressi | Lugano

This afternoon, we have turned our attention to the fragility of certain parts of the world and to young African and Central Americans who live in precarious conditions.

I truly hope that this conference has made it possible to gain a clear understanding of how Switzerland helps to improve the opportunities available to these young people.

There are many causes and forms of fragility. A lack of economic prospects, extreme weather events and natural disasters, war, conflicts and violence, just to name a few. All of these events have something in common: they create insecurity. And they raise provocative questions such as: what happens next, when families lose relatives, their homes, their work and also their dreams.

Questions such as these are important for two reasons, ladies and gentlemen: First of all, they have an emotional impact, since they bring to mind disturbing images of poverty, misery and hopelessness.

At the same time, these questions are very real, since we live in a world where events transpiring in even remote corners of the globe can quickly affect us here at home.

Countries with fragile state institutions bring enormous human, political, economic and social costs. Mistrust and experiences with violence make development more difficult. The powerful can easily enrich themselves. Productive investments become increasingly rare. Impoverished populations are penalised twice as much. Fragility and violence create a vicious downward spiral that is difficult for countries to break free from.

Let us therefore take a closer look at  where there is fragility in the world. What can we do to change things? And by we, I mean those responsible for Swiss international cooperation as well as each and every one of us.

Afghanistan, Somalia, Sudan - these examples come quickly to mind. Here conflicts, violence, extreme poverty, lack of prospects, unstable governments are only some of the challenges faced.

Not all countries labelled as "fragile" match this description. Around three-fourths of the people living in absolute poverty can be found in countries such as India, China, Nigeria, Indonesia, Pakistan or South Africa.

We cannot simply look the other way. We must be aware of the fact that countries with fragile state institutions can become a regional or global security problem. We all know that problems do not stop at national borders. Examples include security issues, the relentless rise in climate-damaging emissions or the effects of the financial and economic crisis.  International problems require international cooperation. International problems can only be overcome through concerted action. If cooperation is unsuccessful or not effective enough, then unresolved issues may quickly lead to heightened tensions and unstable situations. 

This is why foresight, long-term vision and problem-solving in countries with fragile state institutions are so very important. This is also why Switzerland has reinforced its commitment both in fragile contexts and in efforts to overcome global risks that undermine the prospects of poor countries as well as our own future. For this reason, Switzerland seeks to help poor countries in their own efforts to become independent, safe and resilient.

Ladies and gentlemen, a year ago, the Swiss Parliament approved the Federal Council Dispatch on Swiss International Cooperation for 2013 - 2016. With this, Switzerland will continue the practice that has proven so successful in the past, namely helping partner countries to help themselves.  A country such as Switzerland, with its particularly dense international networks, is dependent on strong international cooperation. We show solidarity and also act in our own enlightened self interest when seeking to reduce poverty, address global risks and achieve fairness in international relations and regulations.

The Federal Council and the Swiss Parliament have also decided to increase the amount of funding allocated to official development assistance (ODA) to 0.5% of gross national income by 2015. This decision was reached in recognition of the fact that funding devoted to international cooperation also leads to investment in areas that are important for our country's future.  

The commitment in countries with fragile state institutions should build trust between the state and society. 

With its "New Deal for Commitments to Fragile States", the international community has established five objectives:

  • Develop legitimate state structures;
  • Establish a functional judicial system;
  • Achieve security;
  • Improve general economic conditions;
  • Improve income prospects and ensure better quality services.

Switzerland supports this initiative.  The day before yesterday, the United Nations General Assembly decided on measures to follow up on efforts to achieve the Millennium Development Goals (MDGs) by 2015. Priority will be given to the following three challenges:

  1. Linking poverty to the sustainability agenda;
  2. Creating a broader consensus for global sustainable development objectives;
  3. Developing innovative approaches for a global partnership and ensuring an equitable distribution of efforts between the private sector, emerging countries and developing countries. Peace building appears prominently in the agenda of international development and sustainability policy. 

The SDC has many years of solid experience with implementation of programmes in fragile states. It combines humanitarian aid with development cooperation. 

SECO takes measures to ensure that its partner countries - mostly middle-income countries - do not become fragile and remain resilient.  This includes creating stable general conditions for development, helping to overcome global risks, encouraging good governance and striving for a diversified private sector. Cooperation with middle-income countries is important for Switzerland because these countries play an important role in overcoming global problems such as the financial crisis, climate change, global environmental changes, etc. 

A peace-oriented foreign development and security policy relies on various levers. Thanks to their proximity with the populations affected and smart managerial approaches, Swiss international cooperation agencies are able to handle risks, even in difficult situations. This maintains or increases the margin of manoeuvre for development.

In Nepal, for instance, Switzerland provides long-term support. During the armed conflict, it continued to help the population to manage forests, build suspension bridges, run health centres and grow crops.  Between 1999 and 2010, around 160 km of roads were built and linked to dozens of villages. During the same period, around 700 new suspension bridges were built. Nearly 2 million people are now able to cross rivers and children can go to school.

At the international level, Switzerland supports efforts to fight the excessive economic reliance on raw materials in developing countries. We work to achieve a stronger legal and institutional framework and support the application of norms and standards in the extraction of natural resources and the trade in raw materials. The introduction of the Better Gold Initiative, which was discussed this afternoon, is an example of a sustainable value-added chain that begins with the extraction of gold from the mine and ends with the sale of gold on the market.

Switzerland also supports the transition process in North Africa. The upheavals in this region have shown us that for many young people, the apparently successful macroeconomic figures hide another reality of corruption, social inequalities and high unemployment. 

As we have seen in Egypt, the future outlook is uncertain. Despite difficulties, or possibly because of them, Switzerland's commitment is significant. We have an interest in stable and democratic conditions both in our immediate vicinity and in countries further away.

The Federal Council is convinced that a highly globalised country such as Switzerland also needs strong international cooperation. Switzerland has good reasons to shape development policy in its own enlightened self interest. In a world where countries have become much more dependent upon one another, cooperation between rich and poor countries is needed for any policy that seeks to shape globalisation.  

Last May, I took part in the OECD's Ministerial Council Meeting. This meeting was devoted to the topic of "People: Jobs, Equality and Trust." These four keywords, ladies and gentlemen, apply to all of us. No matter where we live.

People, Jobs, Equality and Trust: these keywords also apply to both societies and companies. In order to be successful, companies require stable general conditions, solid finances, face-to-face dialogue, well-trained workers and mutual trust.

Ladies and gentlemen, on behalf of the Federal Council, I would like to thank:

  • All of those who are actively involved in development cooperation, particularly at the SDC and SECO, and specifically Ambassador Dahinden and Ambassador Maser.
  • The Government of the Canton of Ticino and the municipal authorities of Lugano for their hospitality
  • The Association of NGOs in Ticino - FOSIT - for their impressive commitment.
  • All of you in the audience for being so numerous at this conference.
  • and the many young adults, both on stage and in the audience.

Do not forget, ladies and gentlemen, that the projects that we pursue today determine what prospects young people will have in the future.

Young people have dreams - no matter where they live. In the 21st Century, we also need visions of a better, fairer and happier life. We need young people who are willing to transform this vision into a reality. Young people must have the freedom to continually ask themselves how they wish to live their lives. Likewise, they must also have the freedom to decide how to answer that question.

And let us not forget that we are all young, or at least have remained young at heart.

Thank you.


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