Development Committee communiqué: Higher, more effective aid vital for achieving Millennium Development Goals

• Pages: 287-288

Page 287

As we celebrate the sixtieth anniversary of the Bretton Woods institutions and approach the fifth anniversary of the UN Millennium Declaration, we recommit ourselves to supporting efforts by developing countries to pursue sustainable growth, sound macroeconomic policies, debt sustainability, open trade, job creation, poverty reduction, and good governance. These actions need to be reinforced by stronger international action and partnerships, including reforming trade, more and more effective aid, and stronger private flows in order to make progress on the Millennium Development Goals (MDGs) (as endorsed by heads of state and government in the UN General Assembly on September 8, 2000). We remain concerned that most goals will not be met by most developing countries.

Global economic growth is strong, supported by exceptionally robust growth in developing countries, as the world benefits from the significant reforms undertaken by many countries over recent years. Private-sector-driven growth resulting in new jobs and higher tax revenues, which can be used to finance poverty-reducing public expenditures, is critical to the success of country-led efforts to reduce global poverty. Success in the Doha Development Agenda can only complement these developments, and we stress the importance of translating the recently agreed World Trade Organization frameworks into tangible results. We urge all countries, developing and developed, to participate fully in the negotiations and urge the IMF and the World Bank to continue to support work to this end, and to help developing countries assess the impact and to provide additional support to address potential adjustment costs.

To help developing countries take advantage of the new opportunities that can arise from a better economic setting and to strengthen the foundations for economic growth, we welcome the renewed focus being given by the World Bank Group to private sector development, improving the investment climate, and strengthening financial sectors, and urge the Bank to continue to translate this into country operations. Complementing macroeconomic stability, capacity building, and a greater results focus in public services and institutions and improving the quality of governance, successful private sector investment, social development as well as gender equality are key to accelerating pro-poor growth. We note the important role played by remittances in this context. We urge the Bank to...