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Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the Transfer of Real Resources to Developing Countries (Development Committee)

Author(s):
International Monetary Fund. Secretary's Department
Published Date:
November 1984
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Press Communiqué

September 23, 1984

1. The Development Committee held its twenty-fourth meeting in Washington, D.C. on September 23, 1984 under the chairmanship of His Excellency Ghulam Ishaq Khan, Minister for Finance, Commerce and Economic Coordination of Pakistan. Mr. A. W. Clausen, President of the World Bank, Mr. J. de Larosière, Managing Director of the International Monetary Fund, and Mr. Fritz Fischer, Executive Secretary of the Development Committee, participated in the meeting. Representatives from a number of international and regional organizations and Swtizerland also attended.

2. The Committee heard its Chairman, the Managing Director of the IMF, the President of the World Bank, and the Chairman of the Group of 24 on the world economic outlook.

3. The Committee welcomed the successful completion of negotiations of a Selective Capital Increase of $8.4 billion for the World Bank and a capital increase of $650 million for the International Finance Corporation. It noted with concern that recent efforts by IDA management and donors to mobilize a supplementary funding arrangement for IDA-VII had not yet been successful and requested that in accordance with the Canadian proposal the situation should be reviewed.

4. The Committee discussed the report prepared for the meeting by the World Bank entitled Toward Sustained Development in Sub-Saharan Africa: A Joint Program of Action. The members reiterated their concern at the severity of the sub-Saharan African economic situation and noted that many African governments were making serious efforts to rehabilitate and restructure their economies. The Committee concluded that there was an emerging consensus on the diagnosis of sub-Saharan Africa’s economic problems and on measures needed to address them. Members further agreed that delay in taking action could not be justified. The Committee expressed strong support for the report’s proposed action program, emphasizing that its implementation required the concerted and sustained efforts of African governments, bilateral donors and international organizations. The Committee encouraged the donors to provide more flexible forms of development assistance in both their bilateral and multilateral aid best adapted to Africa’s needs and urged the World Bank to take a leadership role in strengthening aid coordination efforts. In that connection, the Bank was also encouraged to explore with donors various approaches to mobilizing the resources required to implement the proposed program for sub-Saharan Africa. The Bank was asked to report to the next meeting of the Development Committee on the progress achieved in implementing the program.

5. In the discussion on linkages between trade and the promotion of development, a presentation was made to the Committee by the Director General of GATT, Mr. Arthur Dunkel. The Committee agreed that progress in maintaining open access to markets for the exports of developing countries and in reinforcing the multilateral rules and disciplines for trade was an essential support to their current adjustment efforts and to the long-term solution to the debt problem. The Committee encouraged the immediate adoption of concrete measures to combat protectionism. It noted the progress being made in the implementation of the GATT’s ongoing work program, and welcomed the consideration being given to the role that could be played in liberalizing and strengthening the trading system by a new GATT round of multilateral trade negotiations in which all countries—developed and developing alike—could participate and from which all could benefit. Members also emphasized the contribution private investment could make to trade and development.

6. The Committee noted the ongoing discussions in the World Bank on its future role and the contribution it could make to developing countries’ structural adjustment efforts and to the successful resumption of investment and economic growth. The Committee looks forward at its next meeting to suggestions from World Bank management concerning the future role of the Bank and the implications for longer-term capital requirements, keeping in mind the need for a general capital increase. It urged that sufficient progress should be made in the next several months for the subject to be considered in depth at the spring 1985 meeting.

7. It was agreed that, at an extended meeting in spring 1985, the Development Committee will discuss, within the context of a medium-to long-term framework and the current approaches toward resolving debt problems, the structural and development aspects of the problems of developing countries in their efforts to achieve sound economic growth. These include, inter alia, external indebtedness, protectionism, commodity prices, interest rates, the structure of capital flows and obstacles to direct investment and equity capital flows. In this connection, it called on the Managing Director of the Fund and the President of the World Bank to prepare in close collaboration, contributing from the perspective of their respective mandates and competences, background papers for submission, after consideration by their respective Executive Boards, to the next meeting of the Committee.

Composition

as of September 23, 1984

Ghulam Ishaq Khan, Chairman
Pierre BeregovoyFrance
Willy De ClercqBelgium
Luis Escobar CerdaChile
Kjell-Olof FeldtSweden
Giovanni GoriaItaly
Sommai HoontrakoolThailand
Ghulam Ishaq Khan1Pakistan
Abdellatif JouahriMorocco
Paul J. KeatingAustralia
Abdoulaye KonéIvory Coast
Nigel LawsonUnited Kingdom
K. A. MalimaTanzania
Pranab Kumar MukherjeeIndia
Donald T. ReganUnited States
H. O. RudingNetherlands
José Santos TaverasDominican Republic
Jesus Silva HerzogMexico
Noboru TakeshitaJapan
Wang BingqianChina
Juergen WarnkeGermany, Federal Republic of
Michael H. WilsonCanada

Press Announcement

September 26, 1984

At its twenty-fifth meeting on September 26, 1984, in Washington, D.C., the Development Committee selected His Excellency Ghulam Ishaq Khan, Minister for Finance, Commerce and Economic Coordination of Pakistan, as Chairman for another term.

Composition

as of September 26, 1984

Ghulam Ishaq Khan, Chairman
Mohammed Abal-Khail1Saudi Arabia
Pierre Beregovoy2France
Willy De Clercq3Belgium
Luis Escobar Cerda4Chile
Uffe Ellemann-Jensen5Denmark
Giovanni Goria6Italy
Ghulam Ishaq Khan7Pakistan
Abdellatif Jouahri8Morocco
Paul J. Keating9Australia
Abdoulaye KonéIvory Coast
Nigel Lawson10United Kingdom
Pranab Kumar Mukherjee11India
Donald T. Regan12United States
H. O. Ruding13Netherlands
Jesus Silva Herzog14Mexico
Arifin M. Siregar15Indonesia
Onaolapo SoleyeNigeria
Francisco H. SwettEcuador
Noboru Takeshita16Japan
Wang Bingqian17China
Juergen Warnke18Germany, Federal Republic of
Michael H. Wilson19Canada

Alternate attending for the member:

H. U. Beg

Alternate attending for the member:

Yusuf A. Nimatallah

Bruno de Maulde

Jean-Pierre Arnoldi

Luis Arturo Fuenzalida

Mogens Isaksen

Mario Sarcinelli

Said E. El-Naggar

M’Hamed Tazi Mezalek

Ronald H. Dean

Nigel Wicks

P. K. Kaul

James W. Conrow

Ferdinand van Dam

Ariel Buira

Soegito Sastromidjojo

Tsuneo Fujita

Wang Liansheng

Eberhard Kurth

Bernard J. Drabble

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