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Download Publication A WORLD VISION JOURNAL OF HUMAN DEVELOPMENT First Quarter, 2002 In thisthis issueissue...... World Bank President James D.Wolfensohn Rt. Hon. Gordon Brown MP,MP, Chancellor of the Exchequer, UK OECD DAC Chairman Jean-Claude Faure EC Director for Development Koos Richelle IMFIMF DeputyDeputy DirectorDirector forfor PDRPDR MasoodMasood AhmedAhmed plus articles from... New Economics Foundation Bretton Woods Project Finance Focus on the Global South North South Institute for development ...and...and moremore It takes money FINANCING for development is undoubtedly one of the most impor- First Quarter, 2002 tant, if not the most important, issue facing the global movement today. Finance for development Without resolving the scandal of inadequate financing, we cannot Financing for development–a time for action 1 address the health, educational and World Bank President James D.Wolfensohn suggests five areas in which economic issues that face the poor, results from the March FfD conference could assist developing countries to nor can we hope to create a more reduce poverty and strengthen their economies. stable world. Conferences on child trafficking, say, or HIV/AIDS may grab FfD and children 3 media headlines, but such issues all The Rt. Hon. Gordon Brown MP, Exchequer, UK, says ‘ensuring a require the world to solve the mat- better future for the world’s children means putting their needs at the ter of financing for development. centre of financial decision making and economic planning.’ We’ve prepared this edition with the March 2002 Financing for Development finance, policy coherence, governance 5 Development Conference in OECD’s Development Assistance Committee Chairman Jean-Claude Monterrey, Mexico, in mind, and have Faure emphasises the importance of good governance and the invited an array of leading thinkers inclusion of the poor as full partners in development financing. on global economic issues to con- tribute, in an attempt to provide Sustainable development can work in Mongolia 7 insight and fodder for discussion. FfD–what role for NGOs? 8 In our lead article,World Bank President James D.Wolfensohn sug- The IMF’s evolving role in poor countries 9 gests five areas in which results from Go with the flow? 11 the Monterrey conference could assist developing countries to reduce From hands-free to hands-off conditionality 12 poverty and strengthen their economies.The Rt. Hon. Gordon Where’s the development? 15 Brown MP,Chancellor of the Huge debts are choking Indonesia 16 Exchequer, UK, reminds us of the important role FfD can have in allevi- Donors in the dock–rethinking ODA effectiveness 17 ating the suffering of the world’s chil- Innovation and resistance–civil society and FfD 18 dren. Brown recently launched a proposal for a US$50 billion global development investment fund that Global Future is published quarterly by Correspondence should be marks one of the most creative and World Vision to encourage debate and discus- addressed to: sion on development issues. interesting ideas to emerge from an Global Future OECD state for some years. World Vision Contributors from OECD, the Publisher Dean R. Hirsch 800 W. Chestnut Ave. Editor Randy Miller Monrovia, California 91016-3198 European Community, the IMF, the USA New Economics Foundation, the Contributing correspondents: Kelly Currah, Telephone (1) 626-303-8811 Bretton Woods Project, Focus on Melanie Gow, Brett Parris, Matt Scott, Don Brandt, FAX (1) 626-301-7786 the Global South, the North South Heather MacLeod, Joe Muwonge,Alan Whaites. e-mail: [email protected] Institute, and voices from the poor, All opinions expressed in Global Future OR: themselves, round out what we hope are those of the authors. will be a useful springboard for dis- World Vision Articles may be freely reproduced, with acknowl- cussion leading up to the conference 6 Chemin de la Tourelle ■ edgement, except where other copyright is indicat- 1209 Geneva, Switzerland in March. ed.Annual subscription in USA: US$15, but sent ISSN 0742-1524 free of charge to NGOs in the South. — Randy Miller COVER PHOTO: REUTERS–THE EURO, THE NEW CURRENCY FOR 12 OF THE 15 EU STATES, HIT THE STREETS 1 JANUARY 2000. There are five areas where we Financing for development: believe that concrete results from the FfD Conference could have a signifi- a time for action cant impact on the ability of develop- ing countries to reduce poverty and James D.Wolfensohn expand their economies: 1. Increased levels of Official Development Assistance (ODA). Low- THE MILLENNIUM Declaration ment (FfD) process, leading to the and middle-income countries need a endorsed in September 2000 by more March 2002 international conference major increase in aid from rich coun- than 150 heads of governments at the in Mexico, provides a unique opportu- United Nations is a landmark effort to nity to galvanise international action ensure that the opportunities and and focus on the means required to We at the World Bank benefits presented by globalisation are reach the Millennium Goals. An believe international shared by the peoples of all countries. important feature of this co-operation to fight The Declaration gave new political process–which the Bank fully sup- impetus to pursuit of the goal of halv- ports–is the recognition that the poverty is more critical ing extreme poverty and hunger means are not only financial. While than ever. around the globe by the year 2015, mobilising public and private capital is and to the other goals promoting edu- a necessary part of the solution, it tries in order to reach the goal of cation for all, health, and a sustain- halving extreme poverty by the REUTERS able environment–now known as year 2015. Our analysis suggests the Millennium Development that up to a doubling of current aid Goals– which have emerged from levels may be needed, from just the series of United Nations con- under US$60 billion to US$120 bil- ferences in the 1990s. As the lion per year. But these additional Declaration affirms, the World resources must be focused on the Bank is an important partner with neediest countries, which have the United Nations in this effort. demonstrated that they will use Economic consequences these new resources wisely and address human development In the wake of the tragic events needs. Expe-rience shows that, in of September 11, we at the World countries without sound policies Bank believe that international co- or good governance, external assis- operation to fight poverty is more tance has a limited effect on reduc- critical than ever. Our analysis ing poverty. In countries imple- shows that economic growth will World Bank President James D.Wolfensohn responds to questions from reporters in Sydney menting sound policies and pursu- suffer world-wide in 2001 and in August as Australian Foreign Affairs Minister ing good governance, however, 2002, condemning as many as 10 Alexander Downer looks on. external assistance can have a high million more people to live in pay-off. poverty next year, and hampering the must be complemented by adopting fight against childhood diseases and good public policies, building greater Overall development malnutrition. We estimate that an capacity, expanding opportunities for 2. Establishing a hospitable environ- additional 20,000-40,000 children world trade, and empowering the ment for private sector development. under 5 years old could die from the poor to participate in development. A dynamic private sector–including economic consequences of the The Bank has been a full partici- small and medium enterprises–in September 11 attack as poverty wors- pant in the intensive intergovernmen- poor countries is essential for creat- ens.The worst hit area will be in sub- tal consultations over the course of ing jobs and contributing to a coun- Saharan Africa, where, in addition to the last year and a half to prepare for try’s overall development. Foreign the possible increases in poverty of 2- the FfD Conference. As the process investors, who can also help fuel a 3 million people as a result of lower moves to the final stages, we hope country’s growth, will not be attracted growth and incomes, a further 2 mil- that the constructive spirit that has to enter developing country markets lion people may be condemned to liv- prevailed in the discussions will con- unless there is already a good policy ing below US$1 a day, due to the tinue and will lead to identifying those and regulatory environment in place effects of falling commodity prices. areas where the conference can offer and domestic investors are active at The UN Financing for Develop- the basis for concrete progress. Global Future — First Quarter, 2002 1 home, instead of engaging in capital 5. Financing for Global Public Goods. and effective legal system, judiciary flight overseas. In addition to meeting the develop- and police to protect people’s rights, 3. Integrating developing countries ment needs of a specific country,many root out corruption and ensure public into the world trading system. of today’s development challenges safety; schools to educate the next Increased access to global markets require collective action across generation of workers and leaders; offers the best promise for developing national borders. These include pre- hospitals and clinics to ensure public countries to lift their people out of venting and treating communicable health; and modern technology and poverty. We must help developing diseases, maintaining financial stability, roads to connect people to knowl- countries build their capacity to pro- sharing of knowledge, and protecting edge and to new markets. Helping duce quality goods, and to engage in a the environmental commons. Since developing countries meet these new round of multilateral trade nego- both poor and rich countries alike needs is the focus of the World Bank’s tiations that will open fairly the doors stand to benefit, there is a compelling programs.
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