De Voorzitters van de vaste Commissies
voor Financiën en Buitenlandse Zaken
van de Tweede Kamer der Staten-Generaal
Postbus 20018
2500 AE Den Haag
Datum Uw brief Ons kenmerk
(Kenmerk)
december 2001 BFB 2001-01017 M
Onderwerp
Verslag van de najaarsvergaderingen van IMF en
Wereldbank te Ottawa
Mede namens de minister voor Ontwikkelingssamenwerking zend ik u hierbij het verslag van de bijeenkomsten van het International Monetary and Financ
Committee (IMFC) en van het Development Committee (DC), die op 17 en 18 november 2001 te Ottawa, Canada, hebben plaatsgevonden. De communiqués van
vergaderingen zijn bijgesloten, evenals de schriftelijke interventies die Nederland mede namens de kiesgroep heeft ingebracht ten behoeve van beide
vergaderingen.
DE MINISTER VAN FINANCIËN
Verslag van de vergaderingen van het International Monetary and Financial Committee (17 november 2001) en van het Development Committee
17 en 18 november 2001 te Ottawa, Canada
Inleiding
Op 17 en 18 november vonden te Ottawa de najaarsvergaderingen van het International Monetary and Financial Committee (IMFC) en van het Development
Committee (DC) plaats. Nederland werd in de eerstgenoemde vergadering vertegenwoordigd door minister Zalm en in de tweede door minister Herfkens.
Oorspronkelijk zouden de vergaderingen, samen met de jaarvergadering van IMF en Wereldbank, worden gehouden van 30 september tot en met 3 oktober v
jaar in Washington. Door de gebeurtenissen op 11 september konden deze echter geen doorgang vinden. Het is belangrijk dat zij uiteindelijk toch zij
gehouden, omdat het IMF en de Wereldbank de centrale fora zijn om een effectief antwoord van de internationale financiële gemeenschap te formuler
door het terrorisme gestelde uitdagingen. Daarbij gaat het om de volgende hoofdzaken:
- de beleidsreactie op de door de aanslagen van 11 september verergerde groeivertraging van de wereldeconomie;
- het bestrijden van witwassen en van de financiering van terrorisme;
- de gevolgen voor de bestrijding van armoede, met name in de armste landen.
Gezien de veiligheidsvoorschriften en de beperkte faciliteiten in Ottawa waren de delegaties van de IMFC- en DC-leden relatief klein van omvang. Di
betekende helaas dat de delegaties praktisch geen vertegenwoordigers van de andere landen uit de kiesgroep omvatten, maar uitsluitend van het land
ministers die in IMFC en DC zitting hadden.
International Monetary and Financial Committee (IMFC)
Kort voorafgaande aan de bijeenkomst van het IMFC had het IMF nieuwe ramingen voor de mondiale economische ontwikkeling gepubliceerd. Deze gaven ee verdere afzwakking van de wereldwijde economische groei aan. Met name de vertegenwoordigers van de VS en Frankrijk vonden de ramingen van het IMF volgend jaar te pessimistisch. De Managing Director van het IMF, Köhler, was van mening dat de ontwikkelde economieën slagvaardig hadden gereageerd verslechterde vooruitzichten door verruimend monetair en budgettair beleid. Dit zou bijdragen aan een door het IMF verwacht economisch herstel tege midden van volgend jaar. Verder gaf het IMFC aan dat de afzonderlijke landen bereid waren verdere maatregelen te nemen, indien dit door achterblijv herstel noodzakelijk zou zijn. Het comité benadrukte in dit verband ook het belang van structurele hervormingen, met name in Europa en Japan. Speci voor de VS werd aangegeven dat de budgettaire verruiming niet ten koste zou mogen gaan van gezonde publieke financiën op middellange termijn. In di werd ook aandacht gevraagd voor versterking van de surveillance door het IMF, onder andere door dit onafhankelijker te maken. Minister Zalm steunde suggestie. Verder vroeg hij, met steun van een vertegenwoordiger van olieproducerende landen, aandacht voor de grote volatiliteit van de olieprijze alleen bij hoge prijzen moet hier aandacht voor zijn, maar ook indien zij dreigen door te schieten naar lagere niveaus. Het comité gaf vervolgens a nauwlettend te zullen toezien op de situatie, met het oog op het belang van stabiele prijzen voor consumenten en producenten.
Het comité was bezorgd over de gevolgen van de groeivertraging voor de allerarmste landen. In dit verband toonde het zich verheugd over het akkoord Doha was bereikt over de agenda voor een nieuwe wereldhandelsronde. Het IMF gaf bij monde van Managing Director Köhler aan dat het de aandacht voor handelsrestricties met name van ontwikkelde landen in zijn surveillance-activiteiten zal verhogen. Donoren werd opgeroepen te zorgen voor een tijdi volledige financiering van het HIPC-initiatief. Verder gaf het comité aan dat de ontwikkelde landen voor een verhoging van de ontwikkelingshulp (OD moesten zorgen, waartoe onder andere ook minister Zalm via zijn pleidooi voor het fasegewijs bereiken van de 0,7%-norm had opgeroepen.
Het comité verwelkomde het actieplan van het IMF ter intensivering van zijn bijdrage aan de bestrijding van witwassen en van de financiering van terrorisme. Daarbij zal het IMF binnen zijn mandaat en expertise moeten blijven opereren. Het IMF zal zijn samenwerking met de Financial Action Tas (FATF) versterken teneinde een wereldwijde standaard voor de toepassing van de aanbevelingen van de FATF te ontwikkelen, waarvan de toepassing op coöperatieve en vrijwillige basis zal geschieden. Voorts zal het IMF zijn beoordelingen van "offshore" financiële centra versnellen en in het kader Financial Sector Assessment Programs (FSAP) eveneens de belangrijke financiële centra in de wereld, via welke immers de grootste financiële stromen gaan beoordelen. Ook zal het IMF meer technische assistentie aan zijn lidstaten verlenen om hen in staat te stellen aan de standaarden te voldoen.
Verder riep het comité, op voorstel van voorzitter Brown (VK), alle landen op om financiële inlichtingendiensten op te richten om verdachte financi stromen en activa op hun relatie met terroristische netwerken te onderzoeken. Verder is afgesproken de samenwerking tussen deze diensten te verzeke informatie waarover deze beschikken uit te wisselen. Dit was als alternatief door minister Zalm geopperd voor de oorspronkelijk beoogde oprichting zogenaamd "clearing-house" en centrale database. Verder achtte het comité een verhoging van technische assistentie, bilateraal of via een internati trust fund, wenselijk om institutioneel minder ontwikkelde landen te helpen aan hun internationale verplichtingen te voldoen.
Andere punten zoals de betrokkenheid van de particuliere sector bij de oplossing van financiële crises of de conditionaliteit van het IMF zijn deze slechts zijdelings besproken. Wel lijkt er geleidelijk aan meer steun te komen voor het bestuderen van mechanismen om schuldherstructurering door l als laatste middel - op meer ordelijke wijze te laten plaatsvinden, hetgeen ook wel door sommigen wordt aangeduid als het ontwerpen van een faillissementprocedure voor soevereine staten. Minister Zalm drong hierop aan als alternatief voor de aanpak waarbij het IMF met steeds grotere fin hulppakketten het vertrouwen in het beleid van een land en in het nakomen van zijn betalingsverplichtingen tracht te doen herstellen. Andere IMFC-l steunden dit voorstel. Opmerkelijk was dat ook de regering van de VS, bij monde van de heer O'Neill, deze mogelijkheid niet langer uitsloot.
Development Committee (DC)
Ook het DC besprak de gevolgen van de recente aanslagen. Verder werd Financing for Development (FfD), de internationale conferentie over
ontwikkelingsfinanciering in maart 2002, besproken. De voortgang in het Poverty Reduction Strategy Paper (PRSP)-proces en het Highly Indebted Poor
Countries (HIPC)-initiatief kwam zijdelings in deze discussies aan de orde.
De Managing Director van het IMF, Köhler, gaf een korte weergave van de IMFC-discussie. Hij benadrukte dat er een consensus bestond over de gemeenschappelijke actie die nodig is als gevolg van de mondiale economische ontwikkelingen. MD Köhler stond lang stil bij de WTO-top in Doha, gezi belang dat hij hecht aan marktopening voor armoedebestrijding. Het IMF heeft een goed overzicht van de gevolgen van 11 september voor de lage-inkomenslanden en zal deze landen met Poverty Reduction and Growth Facility (PRGF)-kredieten ondersteunen. MD Köhler stelde tenslotte dat de ontwikkelde landen de taak hebben hun ODA te verhogen.
Gevolgen van 11 september
President Wolfensohn gaf een inleiding over de gevolgen van 11 september voor ontwikkelingslanden waarbij hij inging op de bewegingen van
grondstoffenprijzen en kapitaalstromen. Volgens President Wolfensohn heeft de Bankgroep voldoende middelen om in te spelen op de situatie. Hij bena
het belang van goed beleid en bestuur op landenniveau om de gevolgen van 11 september op te vangen. Goed beleid is essentieel om te kunnen profiter
mondialisering. Zo'n 3 miljard mensen in 30 landen hebben reeds de voordelen van mondialisering ondervonden. President Wolfensohn noemde het New
Partnership for African Development (voorheen: New African Initiative) als illustratie dat ontwikkelingslanden zelf steeds meer de verantwoordelijk
nemen voor goed beleid. Landen met slecht beleid, de zogenaamde 'poor performers' vereisen een andere benadering dan de PRSP-landen. Voor deze land
een Wereldbank Task Force opgericht, die tijdens het volgende DC een voortgangsrapport zal presenteren. President Wolfensohn refereerde aan de WTO-
Doha en voorzag dat, zodra marktopening voor ontwikkelingslanden gerealiseerd wordt, meer middelen nodig zullen zijn voor infrastructuur en andere
investeringen in de productiecapaciteit van ontwikkelingslanden. Over Afghanistan zei President Wolfensohn dat de Bank nauw zal samenwerken met UN
hulp zal verlenen zodra de fase van de humanitaire hulp achter de rug is. Een politiek raamwerk is uiteraard een noodzakelijk vereiste voor wederop
Ook de buurlanden van Afghanistan kunnen op ondersteuning van de Wereldbank rekenen.
Het comité erkende dat ontwikkelingslanden relatief harder getroffen worden door de recente gebeurtenissen en de nadelige economische gevolgen daar Verschillende ministers gingen in op de gevolgen van ruilvoetverslechtering en de dalende vraag naar exportproducten van HIPC-landen. Zo werd er v gewaarschuwd dat de resultaten die bereikt zijn onder het PRSP-proces en het HIPC-initiatief gemakkelijk weer onderuit kunnen worden gehaald, gezie feit dat de meeste Afrikaanse landen een ongediversifieerde exportbasis hebben.
Minister Herfkens gaf namens Nederland aan ook bezorgd te zijn over de HIPC-landen. Zij hebben jarenlang goed beleid gevoerd en vaak grote offers m
brengen om het HIPC beslispunt te bereiken. Deze landen verwachten nu eindelijk licht aan het einde van de tunnel te zien. Door de daling van hun
grondstofprijzen wordt thans zo diep in hun beschikbare middelen gesneden dat dit zeker ten koste zal gaan van de Millennium Ontwikkelingsdoelstell
Minister Herfkens riep de Bank en het Fonds op om de situatie nauwlettend te volgen en zo nodig de houdbaarheid van de schulden van HIPC-landen te
op basis van meer realistische grondstofprijzen. Zij drong er tevens op aan dat de Bank en het Fonds extra middelen inzetten voor deze landen. Nede
zou zo nodig extra hulp verlenen aan de getroffen HIPC-landen om hen te compenseren voor de ruilvoetverliezen, bilateraal of via een multilateraal
fund.
Minister Herfkens riep donoren ook op om de kwaliteit van ODA te verbeteren door te stoppen met het financieren van projecten buiten de PRSP's om.
moeten hun eigen hobby's opgeven en hun middelen zoveel mogelijk gezamenlijk inzetten op basis van geharmoniseerde procedures. Over de kwantiteit v
stelde Minister Herfkens dat zij het gevoel heeft dat er een consensus aan het groeien is over de noodzaak van de uitvoering van de 0,7 % -doelstel
Het gaat de goede richting op, nu de EU-lidstaten hebben afgesproken elk voor zich een tijdpad op te stellen om deze doelstelling waar te maken.
Enkele andere ministers deden eveneens een oproep aan donoren om hun gedrag aan te passen en 'hun vlaggen te strijken', dat wil zeggen hun donorzichtbaarheid op te offeren voor een effectievere inzet van ODA. Bij de wederopbouw van Afghanistan zou de Wereldbank het voortouw moeten late VN, stelde een minister, die hiermee waarschuwde tegen 'turf battles' en duplicatie. De vertegenwoordiger van de G-24 drong ook aan op betere donorcoördinatie vooral tussen de multilaterale instellingen enerzijds en de bilaterale donoren anderzijds. Een ander vond vooral de samenwerking m Inter-Amerikaanse Ontwikkelingsbank (IDB) belangrijk ten behoeve van de Latijns-Amerikaanse landen.
Een aantal ministers ging in op de gevolgen van de recente gebeurtenissen voor de onderhandelingen over de dertiende middelenaanvulling van IDA (he loket van de Wereldbank), die thans gaande zijn. Een minister van een donorland merkte bijvoorbeeld op dat met name Afrikaanse landen extra middele hebben. IDA-uitgaven zouden derhalve voor 50 % aan Afrika moeten worden besteed. Verschillende vertegenwoordigers van donorlanden stelden dat donor genereus moeten zijn bij de dertiende middelenaanvulling om een hoger niveau van IDA-uitgaven in de komende jaren mogelijk te maken.
Eén minister uitte twijfels over de toereikendheid van het IBRD-kapitaal op middellange termijn en een ander suggereerde een studie te verrichten n
noodzaak tot een exceptionele kapitaalverhoging. Ook werd de vraag gesteld hoe de uitleencapaciteit van IBRD kan worden verbeterd in de context van
groeiende vraag naar IBRD-leningen.
Verschillende ministers verwelkomden de recente WTO-afspraak om een nieuwe handelsronde te houden. Zij spraken de hoop uit dat grotere markttoegang
ontwikkelingslanden nadrukkelijk op de agenda zal staan. De G-24-vertegenwoordiger noemde het belang van initiatieven op het terrein van Commodity
Management (CRM), gericht op het ondervangen van de nadelige gevolgen van grondstofprijsbewegingen. President Wolfensohn sprak in zijn slotwoord wa
uit voor de Nederlandse steun aan het CRM-programma. Daarnaast stelde hij duidelijk dat het substantieel verhogen van ODA het voornaamste onderwerp
waarmee de internationale gemeenschap nu wordt geconfronteerd. Hij voegde hieraan toe dat dit alleen nut heeft indien de uitvoering van
ontwikkelings-samenwerking in de vorm van partnership geschiedt.
Finance for Development (FfD)
President Wolfensohn leidde het onderwerp in met verwijzing naar de aanwezigheid van de Secretaris Generaal (SG) van de VN, Kofi Annan bij het dine
zaterdagavond, waarbij het onderwerp ook uitvoerig aan de orde was geweest. De aanwezigheid van de SG onderstreepte het belang dat de VN hecht aan
vertegenwoordiging van de ministers van ontwikkelingssamenwerking en van financiën bij de topconferentie.
President Wolfensohn uitte zijn zorg over de weinig inspirerende uitkomst van de FfD prepcom (d.w.z. de voorbereidende vergadering) van oktober jl. benadrukte dat een stap terug op de ingeslagen weg van de Milleniumverklaring niet acceptabel is ("failure is not an option"). Er was tijdens de ok prepcom teveel over de inhoud van het document van de facilitator gesproken en nauwelijks over de gewenste uitkomst van de conferentie. Hij stelde voorstellen van de facilitator voor aanpassingen van de financiële architectuur prematuur zijn en derhalve van de tafel zullen worden geschoven. He hierbij om de zogenaamde "systemic issues" zoals het opzetten van een World Economic Council.
De VN, bij monde van de Plv. Secretaris-Generaal Desai, verduidelijkte dat FfD niet een gebruikelijke VN-top is, maar een internationale bijeenkoms aangezien deze wordt georganiseerd door de Wereldbank, het IMF en de VN samen. De ronde tafels tijdens FfD zullen worden voorgezeten door de Presid Managing Director of de Secretary General van deze instellingen plus die van de WTO. Er zal veel aandacht worden besteed aan een inhoudelijke bijdr vanuit het maatschappelijk middenveld. Daarbij moet vooral worden gedacht aan het - financiële - bedrijfsleven en aan NGO's. Daarnaast zal hij uite alles in het werk stellen om deelname op hoog niveau te bevorderen.
Het IMF bij monde van MD Köhler benadrukte het belang van buitenlandse investeringen voor economische groei en riep de ontwikkelingslanden op om vo werken aan hun investeringsklimaat, het macro-economisch beleid en aan capaciteitsopbouw. Hij benadrukte dat er niet zozeer gezocht moet worden naa structuren maar naar betere samenwerking tussen de bestaande instellingen.
Verschillende ministers spraken hun waardering uit voor de snelheid waarmee de Bank na 11 september een impactstudie had opgesteld, waaruit bleek d economische ontwikkelingen een extra negatief effect hebben op de ontwikkelingslanden. Ook noemden veel ministers het belang van de laatste WTO-top voor het vraagstuk van ontwikkelingsfinanciering. In Doha werd duidelijk dat de stem van het Zuiden gehoord wil worden. FfD werd gezien als een twe bouwsteen na de Doha-top. Ook de World Summit on Sustainable Development werd genoemd als een volgende stap in de goede richting.
Eén minister wees op de noodzaak om te werken aan conflictbeheersing in de ontwikkelingslanden, aangezien geld alleen geen oplossing is. Anderen we het belang van de particuliere sector als motor voor ontwikkeling. De PRSP, die vele malen werd genoemd, onder meer door de Wereldbank, het IMF en Herfkens, is een belangrijk instrument om de ontwikkelingslanden het heft in eigen handen te geven voor hun eigen prioriteitstelling.
President Wolfensohn gaf aan dat het wellicht nog te veel gevraagd is om nu unanieme instemming met de uitvoering van de 0,7% -doelstelling voor OD verwachten; wel gaat hij ervan uit dat tijdens de FfD-conferentie een definitieve verplichting wordt aangegaan voor een substantiële verhoging van bijdragen. De VN-vertegenwoordiger bevestigde dit met een verwijzing naar het politiek momentum, vooral voor de 0,7% ODA-doelstelling; hij verwees uitkomst van de recente OS-raad van de EU-lidstaten. Een Europese minister viel hem bij door aan te geven dat donorlanden bereid zullen zijn hun OD verhogen wanneer men concrete resultaten kan laten zien van de inzet van ontwikkelingshulp. De PRSP is het instrument voor verhoging van de effecti van ODA. De financiering van PRSP's zal dus voorrang moeten krijgen. Een andere minister wees erop dat het niet verkoopbaar is dat het niveau van O afgelopen 10 jaar niet is verhoogd. Verschillende andere ministers van Europese donorlanden gaven aan de 0,7%-doelstelling voor ODA te ondersteunen ondanks het feit dat hun land de doelstelling thans nog niet haalt. In het communiqué van het Development Committee werd op aandringen van Minister Herfkens alsnog een verwijzing opgenomen naar de 0,7%-doelstelling.
De vertegenwoordiger van de VS, Treasury Secretary O'Neill, was duidelijk niet gecharmeerd van de aandacht voor de 0,7 %-doelstelling. Hij suggeree
men eerst dient vast te stellen waarom 40 tot 50 jaar ontwikkelingshulp zulke povere resultaten heeft opgeleverd, alvorens de donorgemeenschap om m
te verzoeken. President Wolfensohn wees erop dat studies reeds hebben aangetoond waar fouten zijn gemaakt en waar nog werk moet worden verricht
(bijvoorbeeld op het terrein van corruptie, infrastructuur, donor hobbyisme, goed bestuur, institutionele infrastructuur). Sinds een aantal jaren t
Bank de ontwikkelingssamenwerking op een andere leest te schoeien, op basis van partnership en nationale ontwikkelingsplannen, vastgelegd in de PRS
Wolfensohn zegde niettemin toe de studieresultaten nog eenmaal kort samen te vatten in de hoop dat de VS hiermee in staat zal worden gesteld de
ODA-bijdrage te verveelvoudigen.
De VS pleitte voorts voor meer schenkingen onder IDA met als argument dat kredieten niet als kredieten mogen worden aangemerkt, wanneer vooraf al w
aangenomen dat deze niet kunnen worden terugbetaald. De Treasury Secretary herhaalde hiermee het standpunt van President Bush, die eerder dit jaar
een loket van 50 % schenkingen onder IDA had gepleit.
Verschillende ministers, alsmede het IMF en de Wereldbank, pleitten voor het nakomen van de HIPC-verplichtingen. Slechts 40 % van de toegezegde bij zijn daadwerkelijk gestort. Minister Herfkens gaf aan dat de geïndustrialiseerde landen ongeloofwaardig overkomen door wel van ontwikkelingslanden vragen hun economieën te hervormen maar vervolgens niet de noodzakelijke bijdrage aan schuldkwijtschelding te leveren, die noodzakelijk is voor de financiering van de hervormingen en armoedebestrijdingsstrategieën.
Minister Herfkens haakte verder in op het G-24-communiqué, waarin gesteld wordt dat de FfD-conferentie niet moet worden aangegrepen om de internati
financiële architectuur te veranderen. Deze stelling is enigszins opmerkelijk aangezien de VN-evenknie van de G-24, de G-77, doorgaans een tegenges
geluid laten horen. Minister Herfkens stelde dat het bestaande systeem van de Bretton Woods Instellingen de ontwikkelingslanden in principe de ruim
voor een effectieve vertegenwoordiging binnen de Raad van Bewindvoerders, maar dat de opzet van het kiesgroepsysteem beter moet worden gebruikt en
ontwikkelingslanden in hun capaciteit van aandeelhouder in beleidsdebatten in de Board beter tot hun recht moeten komen. Als voorbeeld van hoe het
kan functioneren gaf Minister Herfkens het voorbeeld van Canada, dat op overtuigende wijze de belangen van de kleine Caribische eilandstaten van de
kiesgroep vertegenwoordigt. Canada had namelijk zijn DC-zetel opgegeven aan een vertegenwoordiger van één van de betreffende eilandstaten toen de
problematiek rond kleine eilandstaten in de DC werd besproken. Daarnaast bepleitte zij dat de G-24 ook bij toekomstige vergaderingen van het DC
vertegenwoordigd zal zijn.
Vrijwel alle leden, uit Noord en Zuid erkenden de prioriteit van goed bestuur. Minister Herfkens, gesteund door de vertegenwoordigers van een aanta
ontwikkelingslanden verwees in dit kader naar de positieve start van het New Partnership for African Development.
In navolging van President Wolfensohn drongen meerdere donoren, waaronder Nederland, tevens aan op harmonisatie van procedures zowel tussen donorla
tussen de multilaterale instellingen.
Slechts weinigen vroegen aandacht voor mondiale publieke goederen. Door de Bank werd aangegeven dat dit onderwerp deel was van de discussie in de p
en dat voorop staat dat de financiering van mondiale publieke goederen altijd additioneel aan bestaande ODA moet zijn.
Bijlagen:
- Communiqué IMFC, 17 november 2001
- Communiqué DC, 18 november 2001
- Interventie IMFC, 17 november 2001
- Interventie DC, 18 november 2001
Press Release No. 01/47
International Monetary Fund
FOR IMMEDIATE RELEASE
Washington, D.C. 20431 USA
November 17, 2001
Communiqué of the International Monetary and Financial Committee of the Board of Governors of the International Monetary Fund
1. Recognizing the need for a determined and cooperative policy response to the challenges facing the world economy, the International Monetar
Financial Committee held its fourth meeting in Ottawa on November 17, 2001, under the Chairmanship of Mr. Gordon Brown, Chancellor of the Exchequer
United Kingdom. The Committee expresses its gratitude to Finance Minister Paul Martin and the Canadian government for hosting this meeting and for
excellent arrangements.
2. The Committee notes that the September 11 terrorist attacks have prolonged the slowdown in the world economy. Bold policy action has alread
taken to support a robust recovery during 2002, but the outlook remains subject to considerable uncertainty. Continuing vigilance is needed, and it
essential that the international community stands ready to take timely action to maintain stability and invigorate growth. The Committee welcomes t
Managing Director's October 5 statement on the situation of the world economy and the IMF response, which outlines a collaborative approach to give
momentum to the world economy. The IMF has a central role to play, including through a strengthened focus on surveillance, in ensuring global macro
and financial stability and in ensuring that globalization works for the benefit of all.
3. The advanced economies have a key responsibility to promote early recovery in global growth. The recent easing of monetary policy in the Un
States, the euro area, and other advanced economies is welcome, and the authorities stand ready to take further action if appropriate. While the sc
discretionary fiscal policy action varies across countries, the advanced economies should allow automatic stabilizers to operate. The Committee str
that determined implementation of structural reforms to take advantage of the promise of technology for increased productivity is important to rest
confidence and growth. Japan, in particular, needs to move ahead with vigorous reforms of its banking and corporate sectors, and Europe should give
priority to accelerating labor and product market reforms. The United States stands ready to take further action to support growth, consistent with
maintaining sound public finances in the medium term.
4. Increased trade opportunities will play a vital role in the recovery, and the Committee strongly welcomes the outcome of the Doha meeting o
World Trade Organization and the Doha Development Agenda. All countries should stand firm against protectionist pressures, and the advanced economi
particular, should improve access to their markets and reduce trade-distorting subsidies both for the benefit of their own citizens and to provide
support for developing countries. The IMF should strengthen its surveillance of these issues and help promote international efforts to open markets
Committee is vigilant on stability in the oil market at prices reasonable for consumers and producers.
5. Emerging markets and developing countries are facing a weakening of global demand, reduced capital flows, higher risk aversion in financial
markets, reduced income from tourism, and lower and more volatile commodity prices. Sound and proactive policies in these countries will be critica
IMF stands ready to provide additional financial assistance, where needed, to those countries pursuing sound policies. The IMF has a range of instr
available and its current financial position is strong. The IMF should be ready to adjust its policies if necessary. The Contingent Credit Line (CC
important signal of the strength of countries' policies and a safeguard against contagion in financial markets, and the Committee encourages eligib
countries to consider applying for it. The Committee also underscores the critical importance of involving the private sector in the prevention and
resolution of financial crises. The Committee recommends an early implementation of the Fourth Amendment.
6. The Committee expresses particular concern at the adverse impact of the global slowdown on low-income countries and heavily indebted poor c
(HIPCs). It calls on the IMF, in close collaboration with the World Bank, to respond flexibly and proactively to the needs of these countries, incl
through additional concessional financing and debt relief where appropriate. The Committee welcomes the additional contributions to the Poverty Red
and Growth Facility (PRGF), and encourages further contributions. The IMF, working closely with the World Bank, should intensify its efforts within
Poverty Reduction Strategy Paper (PRSP) framework to assess the poverty and social impacts of reforms on the poor. The Committee looks forward to
discussing the findings of the PRGF and the PRSP Reviews at the Spring Meetings next year. The enhanced HIPC Initiative framework provides for the
consideration of additional assistance at the completion point if there has been a fundamental change in a country's economic circumstances due to
exceptional exogenous shocks. The Committee recognizes the need to take into account worsening global growth prospects and declines in terms of tra
updating HIPC Initiative debt sustainability analyses at completion point. It encourages the heavily indebted poor countries to continue to work
expeditiously toward meeting the conditions that will secure access to debt relief and ensure its effective use, including through the maintenance
economic policies. Advanced economies must also be prepared to meet their special responsibility in providing increased development assistance and
relief to tackle the increased challenges of poverty reduction, and to achieve the Millennium Development Goals. The Committee reiterates the impor
fully financing the enhanced HIPC Initiative, and it urges bilateral donors to fulfill this commitment.
7. Recognizing the importance of close collaboration and effective partnership among the community of international institutions in this endea
Committee members look forward, with their colleagues in the Development Committee, to their joint discussion with the U.N. Secretary-General,
Mr. Kofi Annan, on how best to work together to meet the challenges ahead, including in the context of the upcoming Conference on Financing for
Development.
8. The Committee expresses grave concern at the use of the international financial system to finance terrorist acts and to launder the proceed
illegal activities. It therefore calls on all member countries to ratify and implement fully the UN instruments to counter terrorism, particularly
Nations Security Council Resolution 1373, and welcomes and supports the Special Recommendations of the Financial Action Task Force (FATF) to combat
terrorist financing. Each member should freeze, within its jurisdiction, the assets of terrorists and their associates, close their access to the
international financial system, and, consistent with its laws, make public the list of terrorists whose assets are subject to freezing and the amou
assets frozen, if any, with monthly reports. The fight against money laundering and the financing of terrorism requires the active participation of
financial intermediaries and the public sector. The Committee endorses the IMF's action plan to intensify, where consistent with its mandate and ex
its contribution to this global effort, namely by:
· extending the IMF's involvement beyond anti-money laundering to efforts aimed at countering terrorism financing;
· expanding its anti-money laundering work, including through FSAPs, to cover legal and institutional frameworks;
· accelerating its program of Offshore Financial Center assessments, and undertaking onshore assessments in the context of the F
· helping countries identify gaps in their anti-money laundering and anti-terrorist financing regimes in the context of Article
voluntary questionnaires;
· enhancing its collaboration with the FATF on developing a global standard covering the FATF recommendations, and working to ap
standard on a uniform, cooperative, and voluntary basis; and
· increasing technical assistance to enable members to implement effectively the agreed international standards.
In addition, the Committee urges further international action to combat the financing of terrorism, and calls for:
· all countries to establish financial intelligence units to receive and process reports of suspicious transactions from the cou financial sector, and to monitor and analyze suspected terrorist funds;
· provisions to ensure the sharing of information and cooperation between national financial intelligence units, building on the
the Egmont Group; and
· the deployment of technical assistance to ensure that every country can play its part, based on support either bilaterally or
an international trust fund.
Countries are urged to take these measures as soon as possible, preferably by February 1, 2002.
The IMF should report on progress at its spring 2002 meeting, with a full report at its Annual Meeting.
9. The Committee encourages the IMF to continue to strengthen its surveillance and crisis prevention, including through the implementation of
standards and codes (and related technical assistance), and emphasizes that these remain key priorities. It calls on the IMF to implement the agree
framework for private sector involvement, and to intensify the ongoing analysis of outstanding issues. It welcomes the progress on improving the
effectiveness of conditionality through streamlining and enhancing the country ownership of IMF-supported programs, and looks forward to reviewing
in this area at its next meeting. Quotas should reflect developments in the international economy. The Committee looks forward to further work on t
issue. The Committee looks forward to the Independent Evaluation Office (IEO) finalizing its work program and to receiving a progress report on its
activities at the next meeting.
10. The Committee expresses its heartfelt appreciation to Stanley Fischer and Jack Boorman for their eminent records of service to the IMF and dee
commitment to the well-being of all its member countries. Both have been pivotal in shaping the role of the IMF in the globalized economy and the e
international financial architecture.
11. The next meeting of the IMFC will be held in Washington, D.C. on April 21, 2002.
INTERNATIONAL MONETARY AND FINANCIAL COMMITTEE
ATTENDANCE
November 17, 2001
Chairman
Gordon Brown
Managing Director
Horst Köhler
Members or Alternates
Hamad Al-Sayari, Governor, Saudi Arabian Monetary Agency
(Alternate for Ibrahim A. Al-Assaf, Minister of Finance and National Economy, Saudi Arabia)
Sir Edward George, Governor, Bank of England
(Alternate for Gordon Brown, Chancellor of the Exchequer, United Kingdom)
Domingo Cavallo, Minister of Economy, Argentina
Peter Costello, Treasurer, Australia
Dai Xianglong, Governor, People's Bank of China
M.R. Pridiyathorn Devakula, Governor, Bank of Thailand
Emile Doumba, Minister of Finance, Economy, Budget and Privatization, Gabon
Ernst Welteke, President, Deutsche Bundesbank
(Alternate for Hans Eichel, Federal Minister of Finance, Germany)
Laurent Fabius, Minister of Economy, Finance and Industry, France
Francisco Gil Diaz, Secretary of Finance and Public Credit, Mexico
Sultan Bin Nasser Al-Suwaidi, Governor, Central Bank of the United Arab Emirates
(Alternate for Mohammed K. Khirbash, Minister of State for Finance and
Industry, United Arab Emirates)
Aleksei Kudrin, Deputy Chairman of the Government and
Minister of Finance, Russian Federation
Mohammed Laksaci, Governor, Banque d'Algérie
Pedro Sampaio Malan, Minister of Finance, Brazil
Paul Martin, Minister of Finance, Canada
Mrs. Linah K. Mohohlo, Governor, Bank of Botswana
Sauli Niinistö, Minister of Finance, Finland
Paul H. O'Neill, Secretary of the Treasury, United States
Didier Reynders, Minister of Finance, Belgium
Masaru Hayami, Governor, Bank of Japan
(Alternate for Masajuro Shiokawa, Minister of Finance, Japan)
Yashwant Sinha, Minister of Finance, India
Giulio Tremonti, Minister of Economy and Finance, Italy
Jean-Pierre Roth, Chairman of the Governing Board, Swiss National Bank
(Alternate for Kaspar Villiger, Minister of Finance, Switzerland)
Gerrit Zalm, Minister of Finance, Netherlands
Observers
Mary W. Covington, Associate Director of the Washington Branch, International
Labor Organisation (ILO)
Andrew D. Crockett, Chairman, Financial Stability Forum (FSF)
Nitin Desai, Under-Secretary-General for Economic and Social Affairs, United
Nations (UN)
Willem F. Duisenberg, President, European Central Bank (ECB)
John William Hancock, Counsellor, Trade and Finance Division,
World Trade Organization (WTO)
André Icard, Assistant General Manager, Bank for International Settlements (BIS)
Jan Allen Kregel, High Level Expert in International Finance, United Nations Conference on Trade and Development (UNCTAD)
Klaus Regling, Director-General, European Commission
Yashwant Sinha, Chairman, Joint Development Committee
Ignazio Visco, Head, Economics Department, Organisation for Economic Cooperation and Development (OECD)
James D. Wolfensohn, President, World Bank
Statement by Mr. Gerrit Zalm
Minister of Finance of the Netherlands,
International Monetary and Financial Committee meeting
November 17th, 2001, Ottawa
International economic developments
After the tragic September 11 events, policymakers have acted to sustain financial stability and it is encouraging to see that the financial system
displayed resilience. To further guide economic development, national authorities can contribute to sustaining confidence by taking appropriate mea
First, this involves implementing structural reforms, which is the appropriate way to raise potential growth. Second, fiscal policy should remain
consistent with medium-term stability. Third, it includes concluding a successful WTO round.
The projected decline in inflation coupled with sound fundamentals, including the achieved fiscal consolidation, have positioned the euro area well cushion the negative effects of the economic downturn. In the US, monetary and fiscal policies have both been eased to support growth. Consumer and business confidence have dropped sharply, but these indicators may have less predictive power in these uncertain and unprecedented times.
Emerging markets in Asia are affected by the slowdown in world trade, the downturn in the high tech sector and the situation in Japan, where the ou for recovery is still remote. However, more flexible exchange rates, lower public indebtedness and better corporate and financial governance make A better positioned today to resist financial instability. The high public debt in Japan rules out further fiscal expansion and structural reforms in banking and corporate sectors are crucial to revive economic growth.
Increased risk aversion in financial markets weighs heavily on some of the economies in Latin America, especially in the already fragile circumstan Argentina. The countries in Eastern Europe and the CIS are withstanding the global slowdown relatively well, although some are vulnerable to trade from Turkey. Emerging markets with country specific vulnerabilities are most clearly affected by financial market turbulence. The fact that capital continue to differentiate between low and high quality risks in emerging markets indicates that sound policies are rewarded. Financial sector refor particular are key to promoting the benefits while limiting the risks of integration into international financial markets. In the African region, i projected that growth rates will slow down as well, as commodity prices fall relative to the cost of manufacturing imports.
The role of IMF in the current economic situation
In the currently fragile economic situation, perhaps more than ever, the IMF should continue to provide its membership with policy advice through i regular surveillance process. In this way, the IMF, in co-operation with the World Bank, can make an important contribution to sustain financial st and to revive economic growth. Inevitably, low-income countries and some emerging countries will be hit hard by the current crisis and the associat economic slowdown. Although domestic policy adjustments by members are the primary channel for the initial response to these developments,the IMF s stand ready to provide these countries with additional funding. The IMF is well equipped to fulfil this role and the recent streamlining and focuss the activities of the IMF have further enhanced the effectiveness of the institution. In this light, there is no need to introduce new financing facilities. Also, it remains important that member states receive comparable treatment; that access limits are in principle adhered to and that the application of PSI is advanced. In this context, the catalytic approach in our view means simultaneous contributions of the private sector alongsid official contributions, rather than a temporary bail out on the assumption that this will elicit an adequate restoration of private sector financin
Combating money laundering and the financing of terrorism
We fully support the battle against money laundering and against the financing of terrorism, as this constitutes an important pillar in strengtheni international financial system. First and foremost, the main responsibility in combating these undesirable elements lies with individual countries. Nevertheless, there is also a role for the World Bank and the IMF. Given its mandate, especially the World Bank can play an active role to advance financial integrity. This is already embodied in its conditionality and technical assistance. The activities of the IMF should be focused on restri harmful practices that threaten national or international macro-economic stability. This could be done by supporting other fora through technical assistance and surveillance in the fields of regulation of the financial sector and supervision. In this light, we welcome the development of a met paper, which gives the Fund staff common ground to review anti-money laundering elements incorporated in the Basle Core Principles, IAIS and IOSCO standards. This methodology paper could be used in FSAPs and OFC-assessments. Furthermore, the IMF and the World Bank should intensify their co-ope with institutions like the Financial Action Task Force (FATF) and other organisations with expertise in the field of anti-money laundering. In this we recognise the FATF 40 Recommendations as the appropriate international standard for combating money laundering and support the design by the FAT separate module for anti-money laundering. The FATF should assess this module as the IMF retains its focus on its macroeconomic competencies and r from law enforcement issues. If carried out on a uniform and voluntary basis, such an assessment by the FATF could be included in the ROSC process.
Poverty reduction and debt relief
It has been two years since the enhanced HIPC Initiative, the PRSP concept and the Poverty Reduction and Growth Facility (PRGF) were introduced. Wi
overall goal of channelling resources towards poverty reduction through providing deeper and faster debt relief to more countries, country ownershi
recognised as a key priority. We also stressed participation, local capacity, pro poor content, partnerships and aid co-ordination as essential ele
also attach great importance to the ongoing review of the PRSP process, including the PRGF programs.The findings will probably confirm that local c
and genuine country ownership have been the most important factors for success or failure of the PRSP process, while the development of pro-poor po
is proving to be a major challenge in the PRSP process. Process issues have been critical and absorbed a great deal of our attention so far. We sho
concentrate on the content of Poverty Reduction Strategies (PRS) and help countries to develop policy scenarios with a better poverty focus. In thi
respect, Poverty and Social Impact Analysis (PSIA) is an essential tool and I urge the Bank in particular to extend the PSIA to a greater number of
PRS-countries. IMF co-ownership is key, but the Bank should take the lead. In order to safeguard the continuity of the PRS process, the Bank and th
should assist PRS-countries in formulating realistic macroeconomic scenarios, including fall back options reflecting a deterioration in the externa
environment. At the same time, donors should work hard to align their aid to the PRSP's. I believe there are still too many projects outside the PR
framework and there is still too little budget support for good policies. I am also concerned about the high demands from donors relating to the co
the Poverty Reduction Strategy. Donors should not expect perfect strategies, which reflect every priority they can think of. Of course, there are k
lessons we have learnt in development practice. If a PRSP is lacking in this respect or if it does not comply with lessons learnt, then donors shou
respond by intensifying their policy dialogue. The response should not be in the form of demands by way of additional loan conditions. In addition,
should prevent that "adverse external circumstances" take the form of a lack of Official Development Assistance (ODA). This would make attainment o
Millennium Development Goals more difficult.
Higher ODA would also enable us to deal with the unresolved financial issues of the HIPC Initiative. The HIPC Trust Fund needs new pledges in the a $ 700 million by mid 2002, to ensure smooth progress of the HIPC initiative within regional and subregional institutions. In addition, the HIPC Tru urgently needs the conversion of pledges into real payments by donors. As a result of delaying payments, the net present value of existing pledges decreases. I urge donors who choose to pay later to maintain the net present value of their pledges.
Donors made a commitment not to compromise the integrity of IDA when they agreed upon the "pay-as-you-go" approach to cover HIPC financing. This ap
leaves IDA with major unfunded gaps in the financing framework. In this approach, IDA enters into commitments while the financing in the next few y
fully has to come from internal World Bank resources. Without more donor compensation, this threatens to undermine the financial integrity of the B
fewer additions can be made to reserves. This also erodes the capacity of the Bank to make additional means available to other poor countries out o
net income. The Bank has even announced its intention to pre-finance HIPC cancellations of IBRD loans (USD 860 million) out of IDA, despite the abs
donor commitments for compensation. I trust that our commitment not to compromise IDA will be fulfilled, but at the same time, I feel a need to rem
others every now and then.
The Boards of the Bank and the Fund recently confirmed that it is possible to provide additional debt relief at the completion point to HIPC countr
experiencing severe exogenous shocks. However, this option should not be an excuse not to provide additional assistance during the interim period i
response to adverse developments to prevent exogenous shocks from frustrating the implementation of a PRS. Countries facing severe humps in their a
debt service ratios (more than 10 percent of the value of yearly exports, for example) should also be in a position to benefit from such additional
compensation.
I also urge the Bank and Fund and donors to take into consideration the domestic debt burden of some developing countries. It would be short-sighte
limit ourselves to external debt in the debt sustainability analysis, as many country cases (Bolivia, Ghana) have shown. African Ministers raised t
issue as well, at a meeting in the Netherlands on the New Partnership for African Development.
Furthermore, the IFIs should step up their efforts to resolve in the HIPC framework the issue of post-conflict countries' outstanding arrears, whic currently estimated at USD 5 billion. Under current rules, these arrears exclude them from participating in the HIPC Initiative.
Finally, the British proposal to include countries from the former Soviet Union into the HIPC Initiative should be supported, assuming that they qu The possibility to admit additional countries is of course already part of the Enhanced HIPC Initiative.
All these steps would result in a substantial increase of the costs of the HIPC Initiative. Donor support will therefore have to be increased, befo HIPC Trust Fund faces liquidity and/or commitment constraints.
Communique 64th Meeting of Development Committee
18 November 2001
COMMUNIQUE
1. The 64th meeting of the Development Committee was held in Ottawa, Canada, on November 18, 2001 under the chairmanship of Mr. Yashwant Sinha, Mi
of Finance of India. Ministers expressed their great appreciation to the Canadian Government for facilitating the holding of this meeting under unu
circumstances.
2. Impact of Recent Events in Low- and Middle-Income Countries: Response of the World Bank Group. Ministers reviewed the impact of the September 1
terrorist attacks and their aftermath on developing countries. They recognized that poverty in many developing countries was likely to worsen as th
events have deepened the pre-existing global economic slowdown, which had already led to weaker exports and commodity prices, and have other more s
impacts: e.g., increased refugee movements within countries and across borders; reduced private investment flows due to increased risk aversion in
financial markets; reduced tourism revenues; and increased trade transaction costs. Ministers called for further enhancing the collaboration among
Group, the IMF, the regional development banks and UN agencies, in their actions to help member countries address these additional challenges and t
strengthen social safety nets. Ministers underlined the importance of renewed growth in industrialized countries to the improvement of prospects fo
poverty reduction in developing countries.
3. Ministers reviewed the response of the World Bank Group. They stressed the importance of the Group using its financial capacity and the flexibi
its available instruments to respond effectively and promptly to current circumstances and emerging needs. They emphasized that financial support s
continue to be linked to strong country performance and reform programs in support of poverty reduction. Ministers agreed that, from a financial
standpoint, the magnitude of likely incremental demands on the Bank Group currently appears manageable, but they urged that the Board and Managemen
under close review the Bank Group's capacity to respond in more challenging circumstances. Ministers agreed that IDA had a particularly critical ro
helping the poorest countries manage the adverse impact of recent events on their economies and people, and emphasized that timely agreement on a
substantial IDA 13 replenishment was essential. They encouraged all member governments to complete their subscription to MIGA's general capital inc
4. Ministers considered improved governance to be an important element in generating the conditions for investment, private-sector-led growth, imp
productivity, job creation, and trade, and, as a result, for poverty reduction. Thus, they highlighted the need for the Bank and the Fund, in accor
with their respective mandates and comparative advantage, to pay more attention to governance-related issues, including public expenditure manageme
diagnostic (e.g., through the Financial Sector Assessment Program) and capacity-building work to help countries identify and address abuses such as
laundering and terrorist financing. In light of this, they also stressed the importance of working to strengthen further country procurement and fi
management systems. They also recognized the need to allocate increased resources to address capacity building concerns in many countries to help t
new internationally agreed commitments and standards.
5. United Nations Financing for Development Conference. Ministers expressed appreciation to United Nations Secretary-General Kofi Annan for the
opportunity to discuss with him, at the joint IMFC/Development Committee dinner on November 17, issues related to the March 2002 International Conf
on Financing for Development (FfD). They expressed strong interest in contributing to the Conference's success, which they saw as an important mile
the effort to halve the incidence of poverty by 2015 and to reach the other Millennium Development Goals (MDGs) (endorsed by Heads of State and Gov
in the UN General Assembly on September 8, 2000), and other agreed targets. They urged governments to involve all relevant ministries in preparing
Conference to enhance coherence of policies with impact on development. (The Committee's views on Conference issues are attached.)
6. Poverty Reduction Strategies. Ministers welcomed the significant progress made in implementing the PRSP approach, noting that 38 countries had
completed interim PRSPs and eight countries their first full PRSPs. They appreciated the extent to which poverty reduction strategies build on exis
national strategies and processes, with a focus on broadening participation and sharpening poverty diagnosis and monitoring, as well as on prioriti
costing policies and programs for poverty reduction. Ministers welcomed the Bank and Fund's efforts to work with countries to analyze the poverty a
social impact of programs and to help them to build their own capacity. Ministers noted that the joint Bank/Fund staff review of the PRSP approach
underway. They called for a broad-based inclusive process that would draw upon the experience of other stakeholders and development partners, and l
forward to considering the report at their next meeting.
7. HIPC. Ministers welcome the continued progress made in implementing the HIPC Initiative, noting that twenty-four countries have now reached the
decision points under the enhanced HIPC framework, qualifying for debt service relief amounting to some $36 billion; three countries have now reach
completion points and are receiving their full relief under the enhanced Initiative. There has also been a significant reduction in debt stock and
service in these countries, and the commitment of qualifying HIPCs to increased poverty reduction spending has been encouraging. Ministers urged th
and the Fund to work with remaining eligible countries to bring them to their decision and completion points, as quickly as circumstances permit.
8. Ministers reiterated their commitment to the enhanced HIPC Initiative as a means for achieving a lasting exit from unsustainable debt for eligi
countries. They stressed that long term debt sustainability will depend upon the maintenance of sound economic policies, strengthened debt manageme
the provision of appropriate financing. With regard to recent events, they noted that the enhanced HIPIC initiative framework provides for the
consideration of additional assistance at the completion point if there has been a fundamental change in a country's economic circumstances due to
exceptional exogenous shocks. The Committee recognized the need to take into account worsening global growth prospects and declines in terms of tra
updating HIPIC initiative debt sustainability analysis at completion point. Ministers noted that the relevant operational procedures for exercising
option were recently approved by the Bank and Fund Boards. Ministers also reiterated the importance of fully financing the enhanced HIPC Initiative
urged bilateral donors to fulfill this commitment. They welcomed the agreement among donors to continue their regular consultations on the financia
requirements of HIPC. They also urged those creditors that had yet to confirm their participation in the Initiative to do so as soon as possible.
9. Education for All (EFA). Ministers consider education as one of the most powerful instruments for reducing poverty and laying the basis for sus
growth. They welcomed the World Bank's background paper on this subject and noted the efforts of the Bank and its partners to help ensure that qual
primary education is available to all children worldwide as a necessary first step towards strengthening overall education systems. Ministers looke
forward to full consideration of this subject at their next meeting, based on an action plan that will address, inter alia, the policy and resource
requirements needed to ensure that EFA goals are reached by 2015 through the development of sustainable and high quality EFA programs at the countr
10. The Committee expressed its great appreciation to Mr. Yashwant Sinha for his valuable leadership and guidance to the Committee as its Chairman
the last fifteen months, and welcomed his successor, Mr. Trevor Manuel, Finance Minister of South Africa. The Ministers also expressed their warm t
Mr. Alexander Shakow upon his retirement as the Committee's Executive Secretary, and welcomed his successor, Mr. Thomas A. Bernes.
11. The Committee's next meeting is scheduled for April 22, 2002 in Washington, D.C.
ANNEX: FINANCING FOR DEVELOPMENT CONFERENCE (FfD)
1. Building Development Partnerships on a Foundation of Sound Policies and Good Governance. Ministers reaffirmed the critical importance of sound
policies and good governance as prerequisites for poverty reduction and sustained growth. They noted that the Millennium Development Goals (endorse
Heads of State and Government in the UN General Assembly on September 8, 2000) and other internationally agreed development targets can help guide
country-owned short- and medium-term national priorities on which external partnerships of support could be based. They noted that the Comprehensiv
Development Framework principles and Poverty Reduction Strategy Papers provide a vehicle for structuring partnerships with donors; they also provid
framework for the interventions of donors and other partners - such as through country assistance strategies and UN Development Assistance Framewor
ensure that external support is well integrated into national programs. An important contribution by the international community would be the stren
provision of technical assistance to help developing countries - particularly low-income countries and those emerging from conflict - improve their
capacity for sound economic management and efficient use of resources.
2. Strengthening the Conditions for Investment and Growth. Ministers stressed that, in addition to a stable and conducive international framework,
national policy environment, essential infrastructure and good governance are needed to allow the private sector to invest efficiently and create
employment. They recognized that in many countries major reforms of the policy and regulatory framework will be required to encourage domestic inve
and job creation. Such reforms can also help to promote foreign investment and contribute to productivity growth and the additional resources neede
sustainable development. Ministers underlined the need for coherent and comprehensive support to private sector development. They emphasized the im
role that IFC, MIGA and other agencies working directly with the private sector can play in this regard.
3. Promoting Integration into the International Trading System. Trade is an important source of growth and poverty reduction, and developing count
need to be able to take greater advantage of the opportunities it offers. In this connection, the Committee warmly welcomed the decision reached by
last week in Doha to launch a new round of trade negotiations. They endorsed the WTO Ministerial Declaration's aim to place the needs and interests
developing countries at the heart of their Work Programme. Ministers emphasized the importance of countries integrating trade into their developmen
strategies and improving their investment regulations, standards and technical regulations, removing obstacles to efficient transport of goods and
materials, and strengthening telecommunications and business services. Ministers noted that greater access to markets would provide a major boost t
development. They also stressed the priority they attach to helping developing countries strengthen their capacity to respond to market opportuniti
to implement trade-related agreements.
4. Importance of Enhancing ODA Flows. Ministers recognized that for most low-income countries the availability of Official Development Assistance
remains an essential supplement to domestic resource mobilization and foreign investment if growth and poverty reduction goals are to be achieved.
Ministers agreed that special emphasis should be placed on ensuring that adequate resources are directed to countries implementing sound policies a
exercising good governance. They recognized that a substantial increase in current ODA levels would be required if the opportunities emerging from
improvements in low-income countries are to be realized and the MDGs to be met. In this context, a number of Ministers referred to the need to reac
0.7 percent ODA/GNP target. It would also require that, among countries with sound policies and governance, ODA be allocated with greater emphasis
countries with the greatest need (in part based on the difficulties they face in the achievement of their MDGs) and with capacity to make the most
effective and efficient use of the resources. Ministers also emphasized the importance of appropriate concessionality in ODA flows.
5. Harmonization - Reducing the Transaction Costs of Aid. Ministers noted that major improvements in development effectiveness and efficiency, as
reduced administrative burdens and costs on recipient governments, would be gained from eliminating rigidities in aid delivery mechanisms. In this
they highlighted the critical importance of harmonization of operational policies and procedures by the Bank, other multilateral agencies and bilat
donors. Ministers welcomed the World Bank's report on progress achieved to date in this area and commended the action programs set forth in this re
The Committee urged that the Bank and its partners continue vigorously to pursue these programs, and that the FfD Conference be encouraged to recog
importance of, and provide broad-based support for, further progress in such harmonization and its implementation at the country level.
6. Debt and Other Instruments. Ministers underscored the need to deploy a flexible mix of instruments so as to respond appropriately to the needs
developing countries in a manner consistent with their economic circumstances and public expenditure management capacities. While urging that the H
Initiative continue to be implemented expeditiously to achieve debt sustainability for the poorest countries, they noted that debt relief is only o
many possible actions and instruments to support country poverty reduction strategies.
7. Global Public Goods. Ministers noted that FfD provides an opportunity for enhancing a common approach to global public goods and accelerating p
on the coordination of priority global public goods areas, such as those addressing HIV/AIDS and other major infectious diseases. They agreed on th
importance of focusing on specific priority activities, while consolidating initiatives to achieve efficient use of resources. They stressed the ne
ensure that activities are anchored in national as well as global strategies. In some cases this would require ensuring additionality in funding, w
others flexibility and reinforcement of existing mechanisms would be needed to help countries own and implement global public goods-related nationa
programs.
8. Making the Most of Existing Institutions. Ministers noted that FfD offers an opportunity to establish a broad international consensus - among
governments, institutions, the private sector, and civil society - for action on the basis of common objectives and for the identification of speci
that may require enhanced international action. This would provide a platform for individual institutions to use their respective mandates, governa
structures and strengths to undertake high priority initiatives as well as to promote more focused and coherent action among bilateral and multilat
agencies. Ministers strongly believe in making the most of existing institutions.
9. Integration into the Global System. Ministers agreed on the importance of promoting the greater integration of developing countries into the gl
financial system. They noted that progress is being achieved through the efforts of, inter alia, the international financial institutions, includin
areas of crisis prevention, standards and codes, legal and regulatory frameworks, transparency, financial sector strengthening, combating terrorist
financing and other abuses, debt management, and private sector participation in the resolution of financial crises. Ministers also agreed that it
important to find pragmatic and innovative ways to continue to enhance the effective participation of developing countries in international dialogu
decision-making processes.
10. Staying Engaged. Ministers noted that the FfD Conference should be seen as part of ongoing efforts to intensify concerted international action
development and poverty reduction, to expand growth opportunities for developing countries, and to improve the effectiveness and responsiveness of
development cooperation. They urged that the follow-up to the Conference be seen in this context. They believe that the dialogue among the ECOSOC a
Bretton Woods Institutions offers unrealized potential, as does further progress within the framework of the coordinating committee of the heads of
Nations agencies (ACC). Greater cooperation among existing institutions is needed, based on a clear understanding and respect for their respective
responsibilities and governance structures. For example, a combined effort by the Bretton Woods institutions and the United Nations, along with the
to check periodically on progress towards the MDGs, would provide an efficient and practical approach for improved cooperation.
11. Ministers requested their Chairman to convey these conclusions to the President of the United Nations General Assembly.
Bijlage 5: Interventie Herfkens (PDF-document, 39 Kb)