September 18, 2006 — The Development Committee on Monday moved forward on the World Bank's strategy paper on strengthening its engagement on governance and anti-corruption, and its strategy for middle income countries. The Development Committee is the highest policy making body of the World Bank and IMF. It is comprised of 24 ministers of finance or development appointed by the countries or groups of countries which are represented by executive directors on the boards of the Bank and Fund. It meets twice a year before the Spring and Annual Meetings to discuss critical developmental and economic issues proposed to it by the heads of the two institutions. Discussion of the Governance Papers The Committee devoted considerable time to the discussion on the governance paper at its meeting in Singapore, venue of the current Bank-Fund Annual Meetings. Several members raised concerns whether the focus on governance might result in the Bank reducing lending or imposing fresh conditions. President Paul Wolfowitz was clear that "the purpose of this is poverty reduction.The purpose is not to disengage from areas where there are problems but rather to engage more deeply to help countries solve their problems and improve governance." According to the Committee's chairman, minister Alberto Carrasquilla of Colombia, there was unanimity that "actions to promote good governance are crucial to successful development and poverty reduction, and helping member countries on these issues is therefore important to the Bank's mission." The Committee "supported the Bank's engagement in governance and anti-corruption work." Country Ownership and Leadership Essential However, Carrasquilla said country ownership and leadership would be central to implementation. At a joint press conference with Wolfowitz and IMF Managing Director Rodrigo de Rato, he said: "We also emphasized that predictability, transparency, and consistent and equal treatment across member countries are the Bank's guiding principles…and recognized that the strategy will evolve with implementation. We stressed the importance of Board oversight of the strategy as it is further developed and then implemented." In his remarks to the Committee, Wolfowitz said: "I view this paper as a starting point. As we implement the plan, it will be important to listen and learn from our developed and developing country partners. The Board has been deeply engaged in helping shape the paper and I look forward to their continued oversight and involvement as we implement this strategy." He asserted: "We have an obligation to the poor people of the world … that all of our funds go for the purposes intended. Those purposes are to provide good schools for poor children, to help poor mothers get access to good health care and to give poor workers the chance for a good job. Second, if we waste our assistance on projects or institutions where money is not being used properly, it comes at the expense of many other(s) that have demonstrated need and capability to use more than what is available for them. And finally, we need to be convincing with our donors that we are making good use of their resources." Wolfowitz told reporters that the Bank would provide the Committee a progress report on implementation of the strategy at its next meeting in spring. Middle Income Country Strategy On middle income countries, which are still home to 70 percent of the world's poor, the Committee endorsed the statement of the Bank's corporate role and mission to eradicate poverty in its partnership with them. It welcomed the Bank's proposals to strengthen IBRD's "value-added and engagement in response to the evolving and diverse needs of middle-income countries." For the proposals, click here. The Committee also considered and approved progress reports on the Education for All Fast Track Initiative, the Heavily Indebted Poor Countries and Multilateral Debt Relief initiatives, and an Investment Framework for Clean Energy and Development. |
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