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Financing for Development Conference

Author(s):
International Monetary Fund. External Relations Dept.
Published Date:
January 2001
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Building development partnerships on sound policies and good governance. Ministers reaffirmed the critical importance of sound national policies and good governance as prerequisites for poverty reduction and sustained growth.

Strengthening conditions for investment and growth. Ministers stressed a sound national policy environment, essential infrastructure, and good governance are needed for the private sector to invest efficiently and create employment.

Promoting integration into the international trading system. Trade is an important source of growth and poverty reduction, and developing countries need to be able to take greater advantage of the opportunities it offers. The Committee warmly welcomed the launch of a new round of trade negotiations and endorsed the WTO Ministerial Declaration’s aim to place the needs and interests of developing countries at the heart of their work program.

Enhancing official development assistance flows. Ministers recognized that for most low-income countries the availability of official development assistance (ODA) remains an essential supplement to domestic resource mobilization and foreign investment if growth and poverty reduction goals are to be achieved. They recognized that a substantial increase in current ODA levels would be required if the opportunities emerging from policy improvements in low-income countries are to be realized and the Millennium Development Goals are to be met.

Reducing the transaction costs of aid. Ministers noted that major improvements in development effectiveness and efficiency, as well as reduced administrative burdens and costs on recipient governments, would be gained from eliminating rigidities in aid delivery mechanisms.

Debt and other instruments. Ministers underscored the need to deploy a flexible mix of instruments to respond appropriately to the needs of developing countries. While urging continued expedited implementation of the HIPC Initiative, they noted that debt relief is only one of many possible actions and instruments to support country poverty reduction strategies.

Global public goods. Ministers noted that the Financing for Development Conference provides an opportunity for enhancing a common approach to global public goods and accelerating progress on the coordination of priority global public goods areas such as those addressing HIV/AIDS and other major infectious diseases.

Making the most of existing institutions. Ministers noted the Financing for Development Conference offers an opportunity to establish a broad international consensus for action on the basis of common objectives and for the identification of specific gaps that may require enhanced international action.

Integration into the global system. Ministers agreed on the importance of promoting the greater integration of developing countries into the global financial system. They noted progress is being achieved through the efforts of, among others, the international financial institutions.

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