Köhler says crucial test for poverty reduction is in opening access to markets for poor countries

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Page 71

Following are edited excerpts from an address, as prepared for delivery, by IMF Managing Director Horst Köhler at the Conference on Child Poverty, Education, and Health, in London, February 26. The full text is available on the IMF's website (www.imf.org).

We are united today by our belief that widespread poverty in the midst of global prosperity is both unsustainable and morally unacceptable.We agree that world poverty is the paramount challenge of the twenty-first century. It is right that United Nations (UN) conferences have established concrete goals for the year 2015 in education, health, environmental sustainability, and poverty reduction. Collectively, their aim is to break the cycle of world poverty in this generation. The IMF is committed to playing an active role in this effort, reflecting its specific mandate and expertise.

Sub-Saharan Africa trip

One of the strongest impressions I took away from the joint discussions that World Bank President Jim Wolfensohn and I had last week with 22 heads of state in sub-Saharan Africa was that that these leaders increasingly recognize their own responsibility to address homegrown causes of poverty.

* First and foremost, there is an awareness in Africa that any effort to reduce poverty must start with-and build upon-peace, democracy, and good governance at home. Lack of respect for the rule of law, armed conflict, mismanagement, and corruption are fundamental obstacles to growth and development.

* Second, there is a recognition that the prospects for rapid growth-which is indispensable for reducing poverty-will depend on the ability of these countries to unlock the creative energies of their people. In support of this process,African leaders know that there is no alternative to integration into the global economy.

This approach requires investment in human capital and infrastructure, as well as the right economic policies and institutions. It requires, especially, an economic climate that encourages private sector investment.

* Third, there is an increasing awareness among African leaders that stronger regional cooperation and integration are indispensable to increase the competitiveness of their economies.

I am encouraged by the indications that there is an emerging collective leadership in Africa. In particular, the concept of a "Millennium Africa...