2002, introducing a value added tax. On institutional reforms, an autonomous revenue service had been established and a unit established within the Ministry of Finance and Development Planning to give undivided attention to cost recovery and cost savings in the public sector. As a result, Botswana was funding over 90 per cent of its budget from domestic resources.

It was vital that real progress be made on the Doha Development Round, he said. More than anything else, developing countries needed market access for their products. Unless industrialized countries took the bold political steps of abolishing trade subsidies, especially in agricultural products, and removing protectionism, declarations about fighting poverty would remain largely a dream. The Dialogue should come up with special recommendations on how to assist the middle income countries,and that they had the domestic capacity needed to translate temporary assistance into permanent progress. Capacity remained a major obstacle, but that must be addressed in tandem with efforts to increase ODA flows and deliver on market access. “We have the road map and the resources”, she concluded.

SRI MULYANI INDRAWATI, Minister of National Development Planning of Indonesia, said that the Monterrey Consensus was a unique international agreement that served as a turning point to reverse the downward trend of ODA. It also promoted international cooperation and partnership to mobilize resources, both domestic and international, through international trade, foreign direct investment and mobilization of innovative financing. To realize the Consensus, much more needed to be done. Developing countries had been struggling to build strong institutions and human capital. Developing