Managing Director's closing address: Camdessus sees "clear mandate" to integrate poverty reduction, growth issues into operations

• Pages: 329-330

Page 329

These have been a truly productive few days. You have conveyed a striking unity in your assessment of the current economic prospects and of the priorities for economic policy in terms of what needs to be done to strengthen the present recovery. You have offered overwhelming endorsement for our efforts to deal with the crisis of the past two years and for the work that we have been doing to strengthen the international monetary and financial system. And above all, the enhancement of the HIPC [Heavily Indebted Poor Countries] Initiative, the launching of our Poverty Reduction and Growth Facility, and all that goes with these steps have created a strong new impetus to the war on poverty. For the staff and management of the IMF, the fact that more than 90 countries, including 58 developing countries, have contributed to financing the IMF's share in the HIPC Initiative is the clearest possible vote of confidence.

Meetings emphasize action, avoiding complacency

In our discussions, I have detected three key themes. The first is a determination to avoid complacency. The atmosphere surrounding these meetings could hardly be more different than one year ago. Many governors have sounded a note of relief, perhaps even of surprise, that the recovery has become evident so soon. But, almost unanimously, governors have sounded a cautionary note, no one more clearly than the Governor for Canada in saying that "we will be making a grave error if we let the return of relative calm in financial markets and the improvement in world growth prospects lead us to believe that further reforms are not necessary." Equally, in your assessment of the work that has been done in the area of the financial architecture, I have heard notes of satisfaction, but even more forcefully, the recognition that a tremendous task lies ahead of us.

If more stable global conditions prevail, it has allowed renewed attention to be paid to the huge variety of challenges that confront so many members.

- We were reminded of the tremendous challenges of development around the world. The Governor for Madagascar spoke of the challenge for all Africa of "financing development and poverty reduction in the face of declining resource flows, the high instability of Africa's export earnings, the debt burden, Africa's marginal role in the international financial system, the threat of the HIV/AIDS epidemic, and weak human and...