Statement by Mr. Slavoljub Stijepovic, Minister of Labor and Social Welfare of the Republic of Montenegro

Ladies and Gentlemen,

I have pleasure to address to you at this very significant meeting when the Government of Montenegro presents one more Document, which is of crucial importance for Montenegro.

Creation of favorable economic and legal ambient for dynamic and accelerated economic growth, which should enable gradual and whole integration into European economy, is a strategic determination of the Government of Montenegro.

One of the principal documents outlining our overall economic and social development is "The Poverty Reduction Strategy Paper", which is adopted by the Government in November 6, 2003.

I would like to stress the fact that this Document was produced through an open participatory process carried out in last couple of months in Montenegro. Being involved in the consultation process, the representatives of all segments of Montenegrin society have directly provided concrete inputs to be included in this important Document.

The Strategy is based on the main objectives of the overall economic development defined in the Economic Reform Agenda, particularly on the need for providing a gradual economic growth, the increase of living standard, together with appropriate educational and health system available to all citizens as well as developed social security system.

The Strategy has outlined achievable objectives, which make possible poverty alleviation, increase of social inclusion and also creation of environment favorable to achieve sustainable and equitable society development and improvement of the basic human rights. Three basic principles in the Strategy are as follows:

1. To provide prerequisites for self-sustainable and equitable economic growth supposed to reduce the rate of vulnerable population;
2. To secure social stability and reduce poverty rate;
3. To define key poverty indicators in compliance with Millennium Development Goals and develop an integrated monitoring and evaluation system during the implementation period.

Therefore, The Development and Poverty Reduction Strategy Paper is an inevitable part of overall Montenegrin development vision, decisive reform orientation, inclusion into European integration process and contemporary development world trends. In addition, this Document is an integral part of the Government framework for international support and development cooperation, implying at the same time action plan, instruments and measures to achieve United Nations Millennium Development Goals.

By defining a clear plan for the Strategy implementation, Montenegro proves its readiness to reduce poverty of those living under and around the poverty line (€116,2) through concrete activities within the period of 2004-2006 and with international community financial support.

According to the recent researches carried out in Montenegro, below the poverty line there is 12,2 % of population.

This percentage comprises domicile population and the Roma, refugees and internally displaced persons in Montenegro.

Within the final version of the Development and Poverty Reaction Strategy the implementation action plan has been designed. In addition, there are priority sectors and new projects set out. Around 400 different projects within eleven areas have been envisaged. According to the costs of necessary projects priority sectors are the following:

• Education (22% of total expenditures);

• Agriculture and Regional Development - 14,8 %;

• Social protection - 12,5%;

• Programs on Employment - 11,4%;

• Health Sector - 10,8%;

Apart from mentioned priorities, the following areas are also included: forestry, transport, energy, environment and water management.

Funds required for these projects implementation for the period of 2004-2006 amount to € 439 mil out of which € 267 mil should be provided through international financial support (approx 61 %), while € 172 mil is expected to be provided by domestic resources.

Implementation program also implies a monitoring and evaluation system for all planned activities.

Projected objectives could be achieved with a maximum engagement of all stakeholders in Montenegro, but also with international support.

I am taking this opportunity to invite all international partners to get involved in combating poverty and provide concrete assistance to the strategy implementation. I do believe that Montenegro, by its state policy, democratic, reform objectives as well as its role in strengthening regional stability and security, attracted attention of international community as a serious and accountable partner. The international community support is of crucial importance for accelerated economic growth and a holistic development of Montenegro and so as for its general integration into the system of contemporary market economies.

Thanks for your attention.