The meeting, hosted by the government of the United Kingdom, was jointly sponsored by the World Bank, the International Monetary Fund, the Asian Development Bank, and the European Bank for Reconstruction and Development. Representatives of the affected CIS states, creditor countries and international agencies will attend the two-day meeting.

The meeting focused on Armenia, Azerbaijan, Georgia, the Kyrgyz Republic, Moldova, Tajikistan, and Uzbekistan (CIS 7). Economic transition to the market economy over the last ten years has been particularly arduous in these countries, in part because economic disruptions created by the break-up of the former Soviet Union were compounded by armed conflicts and massive changes in the terms of trade. In U.S. dollar terms, the countries are among the poorest in the world, with per capita incomes in 2000 ranging from $158 in Tajikistan to $652 in Azerbaijan.

The London seminar looked at how the CIS countries can intensify reform efforts oriented toward poverty reduction both through reforms that increase economic opportunities, as well as more efficient and targeted allocation of public resources. Participants discussed how the international community can do more to help the CIS 7 through various forms of assistance and improved coordination. It also provided an opportunity to discuss improved cooperation among the countries.

For the group as a whole, real GDP fell by an average of almost 50 percent between 1990 and 1995, and poverty and inequality increased substantially. Since then, growth has resumed, but both financial and physical (life expectancy and nutritional status) indicators of living standards remain depressed and have deteriorated further in some countries. In several countries, a large volume of external debt has also been accumulated, undermining prospects for growth and poverty reduction. There are also serious regional issues that constrain trade and economic activity.

In the period following September 11, the global slowdown and the countries' proximity to the military conflict in Afghanistan have further clouded their economic outlook. The direct impact of the Afghanistan conflict on the CIS 7 has not been severe; nevertheless, heightened investor uncertainty about political and security risks will likely dampen investment and trade flows to these countries in the near term and make it more difficult for them to solve their poverty, growth and debt sustainability problems.