Ministers stress that good policies are at core of successful development programs
| Pages | 148-150 |
Page 148
The sixty-third meeting of the Development Committee was held in Washington on April 30 under the chairmanship of Yashwant Sinha, Minister of Finance of India. The Committee also met on April 29 in joint session with the International Monetary and Financial Committee (IMFC) to focus on strengthened cooperation to foster growth and fight poverty in the world's poorest countries.
Ministers broadly welcomed the proposals put forward by the Bank following the work of the World Bank Group Task Force on Middle-Income Countries. They noted that combating poverty in this group of countries was essential for meeting the international development goals, and reemphasized the Bank Group's important role in supporting these countries' growth and poverty reduction efforts. The Committee noted that good policies, and the institutions to implement them, were at the core of successful development programs, and welcomed that an increasing number of countries were adopting this approach; that external resources were most effective when supporting such policies and institutions; and that even countries with access to international financial markets may benefit from Bank financial support, since their access is often limited, volatile, and restricted to short maturities.Ministers recognized that such volatility can lead to disruptions and cause substantial adverse effects on poverty levels.
Ministers stressed that since in most cases the Bank Group's share of a country's overall external financing is small, its role must be selective and strategic-as a catalyst for policy and institutional change, including capacity building, as well as for pro-poor policies, for stable and sustainable private investment flows, and for policy and financial support from development partners in promoting sustainable and equitable growth and poverty reduction.
Following on their discussion of this topic at the Committee's previous meeting, ministers reiterated the need to tailor Bank Group support to the widely differing circumstances found among this diverse set of countries. The Committee stressed that to ensure country ownership, this support must be grounded in the country's own vision of development. This should serve as the starting point for the Bank Group Country Assistance Strategy, backed by strong diagnostic and other economic and sector work. The Bank should systematize and strengthen its analysis of the country situation, including by expanding, in concert with its partners, support for local capacity building.Ministers noted the particular importance of stronger analysis on structural, social, and sectoral issues and priorities, as well as on public expenditure, procurement, and financial management systems.
Ministers noted the importance of a menu of lending instruments reflecting borrowers' different needs, objectives, and track records, and Bank Group comparative advantage. They stressed that lending must be based on country commitment to poverty reduction.
The Committee reemphasized the continued importance of Bank investment lending, set within a sound Country Assistance...
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