Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized ah 1 AH THE WORLD BANK

FROM CONSENSUS TO ACTION: A SEMINAR ON THE INTERNATIONAL DEVELOPMENT GOALS

Monday, March 19, 2001 8:55 a.m.

Room MC13-121 1818 H Street, N.W. Washington, D.C.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 2 CON TEN T S

OPENING SESSION: 5 Chair: Jo Ritzen, Vice President, Development Policy, World Bank Introductions & Purpose of Seminar Program Jo Ritzen 5 Opening Address via Videotape: Nick Stern, Senior Vice President and Chief Economist, World Bank 9 Opening Address: "The International Development Goals and the Bank's Action Plan" Sven Sandstrom Managing Director, World Bank 15 Opening Address: "Working Together to Reach the International Development Goals" Mark Malloch Brown Administrator, UNDP 23 SESSION I: The Role of the International Development Goals 48 Chair: Sven Sandstrom Speakers:

"The UN Strategy to Realize the Goals" Ian Kinniburgh Director, Division for Development Policy Analysis, Department of Economic and Social Affairs 51 "Incorporating the IDGs into Uganda's Development Strategy" Emmanuel Tumusimme-Mutebile Governor, Bank of Uganda 66

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 3 (Continued) "Bilateral Cooperation for Promoting IDGs" Brian Hammond and Paul Isenman OED Development Cooperation Directorate 82 Michael Schultz Chief Social Development Adviser Department for International Development United Kingdom 94 Discussants Cyril Enweze Vice President African Development Bank 108 Mats Karlsson Vice President for External Affairs World Bank 120 Open Discussion 129 LUNCH BREAK

SESSION II: Sharing Experience & Building Knowledge 164 Introduction to Session II Break-Out Groups Shantayanan Devarajan Chief Economist, Human Development Network World Bank 164 Parallel Sessions [Not Transcribed]

I SESSION III: Reporting Back on Sharing Experience and Building Knowledge 170 Chair: Eduardo Doryan Vice President, Human Development Network World Bank Reports: Karen Mason (Poverty) 171 Alex Preker (Education and Health) 173 Stephen Browne (Environmental Sustainability) 179

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 4 (Continued) Discussants: Rachid Benmokhtar President, Al Akhawayn University Morocco 184 Sanjeev Gupta Chief, Expenditure Policy Division, Fiscal Affairs Department International Monetary Fund 190 Open Discussion 195

Adjournment 239

MILLER REPORTING CO., INC. 735 9th STREET, S.E. WASHINGTON, D.C. 20003-2902 (202) 546-6666 ah 5

MR. RITZEN: Friends and colleagues, I

want to welcome you to this seminar. It is really

a privilege for me to welcome you to this seminar

on International Development Goals.

We are very pleased to see that despite a

very short period of preparation, so many of you

thought that it was worth your while to come and

join us. I think that that shows a very keen

interest. Many of you have actually made a long

trip to be here, and I am sure you have done that

with the notion that this seminar will contribute

to further our efforts in international

development.

Let me say that we made a great effort to

make sure that we had a substantial presence here

of people from developing countries. And we are particularly gratified to see so many and

particularly so many outstanding persons from

developing countries. Let me explain that for a

second.

We are here to discuss how development

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 6 partners can more effectively collaborate on the

International Development Goals, using the

International Development Goals as a platform for

furthering development.

And of course, the first and foremost

partners in development cooperation are the

developing countries themselves. They should play

the dominant role in the International Development

Goals. They know, of course, that the

international community has embraced those goals

and also that that gives rise to requiring to

deliver on commitments, and they also know that the

international agencies, donors, are willing to

deliver on that commitment.

We look forward very much to this seminar

to hear the voice of the developing countries, to

learn better what their understanding is of the

International Development Goals and also how they

see that the partners could more effectively work

together.

That is one part of the seminar--working

together.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 7 The second part, very much related, is

focused on the exchange of knowledge, the exchange

of experience, what works and also what does not

work in getting to the goals, how intermediate

targets can be set which are both ambitious and at

the same time feasible and realistic and which at

the same time stretch the room for maneuver of

countries to reach the best results for that

population, how to address problems of monitoring

and data availability, what is the role of

benchmarking and how it can help the leadership in

countries and their efforts, where the critical

research issues lie. Those are also questions to

be addressed.

But first and foremost, this seminar is

understanding, understanding and action,

understanding for action, understanding of the

place of International Development Goals in

development, understanding the roles of the

different partners and the way these roles can

reinforce each other, but understanding action,

action to create a better world for all using the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 8 International Development Goals as a platform.

In this opening session, we had planned

two speakers. They were Nick Stern, Chief

Economist of the World Bank, and Mark Malloch

Brown, the Administrator of the Development Program

of the United Nations.

Nick Stern invited you but had an urgent

call from Turkey to assist in the search for ways

out of the present crisis. In agreement with the

President of the World Bank and the Managing

Directors, he decided that that call had to be

answered even though it meant that he could not be

at the party of which he is actually the host. He

will, however, be with us through a video address.

I am particularly delighted that Mr. Sven

Sandstrom, the most senior of the Managing

Directors of the World Bank, was willing to take

his place and agreed to deliver the opening address

from the World Bank side.

So the order of this opening session will

bel first, a 5-minute video from Mr. Stern--we know

that it is exactly 5 minutes, because it was taped;

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 9 the opening address of Mr. Sandstrom, and then the

opening address of Mr. Mark Malloch Brown.

Can we have the video, please?

MR. STERN: Good morning.

My name is Nick Stern, and I'd like to

welcome you all to Washington. It is very good of

you to accept our invitation at such short notice.

I have to apologize to you for being

unable to be with you today because I was called

away at much shorter notice to Turkey where, as you

know, they are in the middle of some quite severe

financial difficulties, and I was summoned there

at, really, a couple of days' notice, and I am very

sad that I am not able to be with you because this

is such an important gathering.

This is a very timely gathering, because

there is now unprecedented agreement on the

International Development Goals, but also, I think

we have a much better understanding of what is

involved in getting there. I do think that we have

deepened our knowledge of what development means

over the last 5 or 10 years and on the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 10 effectiveness of development action.

This group also builds on actions that we

have taken together and discussions that we have

had together in the past. A year ago, many of the

organizations represented today were here together

to discuss these types of issues, and we put

together a publication, "The Better World for All."

At the Millennium Summit in the autumn of

last year, we found again tremendous agreement

amongst a very wide group of countries, around 150

or so, which pledged themselves to these

International Development Goals. So we are

building on good foundations of international

agreement and good discussions that we have been

having with all of you, that we have b~en having

together, over the last year or so.

For the Bank, these Development Goals are

basic. They are now part of the Bank's strategy

which we have been agreeing with our Board over the

last 2 or 3 months. They are build into our

detailed Country Assistance Strategies and our

Poverty Reduction Strategy Papers which are put

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 11 together working very closely with our countries

themselves. Indeed, as many of you know, on the

Poverty Reduction Strategies, it is the countries

themselves that are in the lead.

But we don't interpret these Goals in a

mechanical way. Of course, it matters to move

people from 50 cents to 75 cents a daYi that is

even more important than the movement across one

dollar a day. We know that achieving education

goals involves more than resources on education.

It involves community action; it often involves

rural roads; it involves nutrition programs. There

are all kinds of things that go into achieving any

one of these Goals, so we have to have a broad

view, and we cannot be mechanical about them.

But they are Goals which give us the

advantage of clarity, they give us the advantage of

commitment, and they also tell us very clearly that

development is multidimensional. We must not

simply look at the income dimension, important

though of course that is. We have to have this

broader view.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 12 So for many reasons, these International

Development Goals are of great value to the

development community going forward.

I think we should see them as a contract

amongst ourselves--that we have agreed to these

Goals, and now we have to try to understand in a

more deep way--I think we have some understanding

already, but we have to deepen that understanding

in order to see what kinds of actions we need to

take together.

And it is clear that we do have to work

together, and one of the reasons for having this

meeting is to discuss amongst ourselves how we can

better align our actions to achieve these Goals.

They are achievable--not in every part of the

world, but they are achievable for the world as a

whole, and it will need real commitment and working

together to make it happen. It will need policies

from developing countries, it will need policies

from developed countries, and it will need

resources from developed countries. Our task is to

try to understand what is involved and how we can

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 13 work together to get real movement forward and to

make this happen, to turn these targets into

reality.

So as I understand it, the purpose of this

meeting is to work together, all of us, from

wherever we come, but particularly, of course,

looking to the community from the developing

countries to help us all understand, and it is for

them--it is their countrYi it is for them to take

the lead in many ways in this process. So we are

particularly happy that there is such a good

community from developing countries here today.

So we are working together, then, in this

seminar to do three things, I think. First is to

understand the meaning of the International

Development Goals in the development process in a

very practical way.

The second is to understand what actions

are necessary from the whole development community,

including the developed countries particularly, but

the whole development community. Actions in the

developing countries are centrali we have to

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 14 understand the role of international institutions

also.

So let's understand what actions are

necessary and finally, how we can work together to

really turn these Goals into reality.

So thank you again for coming. My deepest apologies for not being able to be with you today.

I wish I were; I am sure it is going to be a very

good and productive meeting.

Now let me pass it over to Sven Sandstrom,

our Managing Director, who will be speaking for the

Bank right now, and then, after Sven, we are very

happy to welcome Mark Malloch Brown from the UNDP.

So thank you again for coming and again,

my apologies for not being with you.

Good luck for what I'm sure will be a

splendid meeting.

MR. RITZEN: Thank you very much, Nick.

You still look very fresh, but I know this was

taped two days ago. We wish you good luck in your efforts.

Now may I invite Sven Sandstrom.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 15 MR. SANDSTROM: Thank you very much, and

good morning to all of you.

I join Nick and Jo in welcoming you to

Washington and to this seminar. The wide

representation of so many committed members of the

international community is very strong evidence of

the importance that all of us attach to the

International Development Goals.

It is very good to see so many friends and

colleagues here this morning. We want to learn

from you, and we want to share our knowledge with

you, and we should then go forward with a stronger

sense of dedication to the achievement of the

International Development Goals and with an

enhanced process of collaboration following these

two days.

In helping to set the scene for these two

days, I would like to say a few words about the

Goals, where the world stands today in achieving

them, and how we plan to work with all of our

partners to help countries reduce poverty as we

work toward the 2015 target date.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 16 The Goals relate not only to the world

population as of today but also the millions of

people who will be born between now and 2015.

Despite a slowing in the rate of population growth,

the world population will increase from 6 billion

to 7.1 billion over these years, and most of this

increase will occur in developing countries.

This population increase and the share of

children in it poses a major challenge in a world

characterized by deep poverty amid plenty. As of

1998, according to our estimates, about 1.2 billion

people lived in extreme poverty--that is, on less

than one dollar a day. In South Asia, 40 percent

of the population lives in extreme poverty. In

Sub-Saharan Africa, the share is even higher, as we

know, at 48 percent.

So the challenge ahead to reduce income

poverty is formidable.

Under the optimistic assumption that

reforms will continue and that the industrial

countries' growth will remain robust, the world

could meet the overall goal of halving the rate of

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 17 extreme poverty by 2015. The number of people

living under one dollar a day could drop to 780

million from 1.2 billion today, and in percentage

terms, poverty could fall from 23.4 percent today

to 12.6 percent by 2015.

But this achievement is by no means a

certainty. For instance, much depends on progress

in China and in India. Any shortfall in either of

these countries will cause the world to miss the

poverty reduction targets.

Conversely, success in China and India may

mask slow develDpment progress in many other

countries. Quite a few countries, many in Africa,

are expected to miss the 2015 goal under even

optimistic scenarios.

Moreover, these optimistic projections use

the one dollar a day measure of poverty, which is a

poverty line representing extreme deprivation. If

we use the two dollar a day measure of poverty, the

goal will not be achieved on these same

assumptions.

Finally, as Nick mentioned earlier,

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 18 poverty is not just about income; it is

multidimensional, as reflected by the Development

Goals. So even if we do meet the income poverty

goals, it is less likely that all the human

development goals in the areas of education,

health, and particularly gender equity will be met.

We have a major challenge ahead of us.

To achieve the Goals, we need the right

approach--attacking poverty in all its dimensions

and ultimately achieving them will require a major

concerted effort over the next decade.

Specifically, it will require comprehensive

strategies and approaches not limited to particular

projects or sectors; it will require persistence

over the long haul and attention to exdluded

countries and regions; it will require leadership

in both developing and industrialized countries and

country ownership; and it will require partnership

among all the key development players. Individual

efforts will have little hope of real success. We

must work together, which goes to the heart of

these two days.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 19 This means both developed and developing

countries must work together. The goals will not

be achieved unless they are seen as a compact with

mutual commitment from the North and the South,

from developed countries and from developing

countries.

The developed countries have an obligation

to provide opportunities for countries that have

shown themselves to be pursuing development and

poverty reduction. Specifically, developed

countries need to open up to imports from

developing countries. Developing countries must

have access to markets if exports are to serve as a

vehicle for development. Developed countries must

provide opportunities, both by ensuring that they

meet existing trade agreements and by committing to

open markets further.

Developed countries also need to increase

aDA levels. Experience and research show clearly

that development aid is effective at reducing

poverty when a country's policies and institutions

are reasonably good. We should recognize that aDA

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 20 is an investment in global economic growth,

stability, and peace. The current levels of ODA,

at 0.24 percent of GDP, fall far short of the goal

of 0.7 percent set by many countries. This

shortfall amounts to $100 billion per year, and

this difference is almost twice the level of

existing ODA at $56 billion per year.

Finally, developed countries must also

coordinate their development efforts better. A

lack of coordination among donors leads to

inconsistent requirements and overloads the

administrative capacity of developing countries.

Better coordination would help greatly with

capacity-building.

Having outlined some of the steps that

developed countries need to take~ let me also

emphasize that developing countries themselves

obviously also have major responsibilities. They

must take the lead in ensuring that their country

development strategies and reform programs are

responsive to the concerns, aspirations and

priorities of their people, particularly the poori

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 21 and they must develop reductions in poverty.

This requires respect for fundamental

freedom, strengthening representative institutions,

and ensuring broad-based participation in decisions

that affect people's well-being. We must regard

people in poverty as part of the solution, not part

of the problem.

Finally, at the international level, the

Bretton Woods institutions, the UN and its

specialized agencies, regional development banks,

our bilateral partners and others must work

together more effectively to ensure that we all

have the right policies, instruments, and

procedures to improve our services to developing

countries.

We must increase our cooperation and

pursue a common agenda. Interdependence and the

scale of the challenge require more focused and

coherent actions.

The International Development Goals

provide both an opportunity and a challenge.

Indeed, we may never have a better opportunity to

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 22 bring the respective strengths of so many key

players to bear on the poverty that confronts the

world today.

If we want to make a significant

difference by 2015, we must all redouble our

efforts to do a better job, and I hope that these

two days will set the stage for the next level in

our cooperation.,

Thank you very much.

Back to you, Jo.

MR. RITZEN: Thank you so much, Sven, for

the way in which you very clearly laid out the

challenges ahead, particularly also the need for

strengthened cooperation. I think that that also

provides an excellent basis for the contribution of

Mark Malloch Brown, who has been working so hard on

strengthening coordination.

I particularly realize that on February

26th, when Mark Malloch Brown gave a speech in

London at the Child Poverty Conference, he was very

adamant that we should move toward what we call the

new global rating system for world poverty as a

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 23 basis for a permanent campaign to halve poverty by

the year 2015.

I am very much looking forward to the

contribution of Mark Malloch Brown at this opening

session.

MR. BROWN: Jo, Sven, colleagues and

friends, thank you.

Let me start with the obvious. We now

have an unprecedented global consensus around the

International Development Goals or the millennium

targets, testified to by the 160-plus world leaders

who came together to endorse the United Nations

Millennium Declaration last September. We now have

every right to put these targets at tee center of

development strategy.

And as the Declaration also clearly

states, we know the huge hurdle we have to surmount

to reach those targets, helping "ensure that

globalization becomes a positive force for all the

world's people." That means combining global and

national reforms to bring the poor from the margins

to the mainstream of the global economy.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 24 We can see the positive effects of this

new consensus already in events such as what Jo

just referred to, the recent conference in London

held by Gordon Brown and Clare Short on the Child

Poverty Targets that Jim Wolfensohn, Horst Koehler,

Carol Bellamy of UNICEF and I attended, that sought

to go to the next stage--defined responsibilities

and accountabilities.

After all, we are in a global environment

characterized by dramatic changes in economics,

politics, society,a nd technology, and these are

changing the face of development, and doing so at a

time when neither the UN development system or the

World Bank are what they were just a few short

years ago.

The Bank has dramatically pledged itself

to poverty reduction and moved beyond loans alone

to become a rich source of strategic country

frameworks, advice, and knowledge.

UNDP is also reforming itself into an

organization devoted to advocacy and advisory

services focused on six thematic priorities which I

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 25 will return to later.

In doing so, we have not only superseded

the old but long overtaken basis of UNDP/Bank

partnerships, our technical assistance helping to

pave the way for the Bank's loans, but have also

overcome the more recent phase of the relationship

when, in the 1980s and early 1990s, the civil war

over structural adjustment led to deep

institutional animosities.

Now we must take the next step. That does

not mean having to agree on everything to be able

to affirm resoundingly that we are on the same side

when it comes to the fight against poverty. It

does mean starting to answer the question that Jim

Wolfensohn set out in a recent letter to Kofi

Annan: How can we best work together to ensure

that the worthy aspirations embodied in the

Millennium Declaration Targets be matched by real

deeds at global and country level that bring real

benefits to the world's poor?

In London, the IMP and the World Bank

together committed to providing strong support to

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 26 governments in developing program policies and

budgets that are pro-poor and pro-growth, fully

accountable, flexible, and fully country-owned.

And of course, the main vehicle for this is

increasingly the Poverty Reduction Strategy Papers.

At the same time, we committed both to

supporting that process--following rather than

leading, as Jim would describe it--while suggesting

that we together with our colleagues in the UN

Development Group help push forward, with the

support of the Bretton Woods institutions, in a new

effort on national and global benchmarking and

monitoring of the Millennium Targets, the subject

of today's seminar.

Let me start with the PRSPs before turning

to the targets, because I think they are linked.

We believe the Comprehensive Development Framework/

PRSP process will be the structure for synthesizing

poverty strategy and macroeconomic policy in the

overwhelming majority of the 70 or so poorest

countries. Donors support them, and despite

teething pains and the acknowledgement of

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 27 limitations in the preparation process of some of

the Interim PRSPs, I am convinced that developing

countries support them, albeit with a broad and

legitimate aim of wanting to customize or

indigenize them over time as part of building

national ownership.

So let me unequivocally say that I do not

think that the UNDG's UN Development Assistance

Framework, UNDAF, is an alternative to the PRSP.

Rather, it is an important but limited business

instrument for ensuring the UN team's cohesion

behind the national development strategy which will

increasingly be expressed through the PRSP.

Do we have reservations? Of course we do.

Many members of our traditional constituencies in

developing countries and within civil society are

concerned about whether there will be enough space

for real poverty reduction. As Ravi Kanbur has

recently argued, there is, quote, "a seemingly

irreducible core of economic policy instruments

around which there are still profound

disagreements. These relate to both economic

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 28

policy distribution and poverty. 11

The good news, he also argues, is that

hopefully, the debates are no longer about motives,

analytical competence, or questioning of individual

or institutional commitment to poverty reduction;

rather, they are legitimate policy judgments

between a Group A, as he calls it, of finance types

from North and South -often, he rather unfairly

adds, trained in the Anglo-Saxon economic

tradition--and a Group B, of development

cooperation officials, civil society, the UN and others.

The two groups are obviously porous--I

don't need to be told that I move easily between

the two, for example--and there are many nuances on

both sides. But there is no doubt that these two

broad world views remain. So for our constituency,

will traditional macroeconomic stabilization goals

overpower the core objectives of tee Millennium

Targets? Will there be real consultation, or will

finance ministers end up keeping ministerial

colleagues let alone other stakeholders out? Will

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 29 the interests of women, children, and other

unempowered groups be protected?

Yet as a UN System, we have to decide--do

we throw stones from the outside or participate and

bring legitimate disagreements of our constituency

inside?

The answer is not to hold back. Rather,

we all have to pitch in and make this work. The

PRSPs are an important step forward which we, the

UN, must applaud and support. For us, that means

using our own traditional strengths to help vest

deep country ownership, such as our work in

providing support for civil society consultation,

and showing that the poverty reduction goals are

given maximum space is the macroeconomic envelope,

and our TA is used to help developing countries

develop real choices and, where appropriate, real

alternative views or analysis as they seek to map

out their own development strategies.

We have been already in UNDP working on

more than 20 PRSPs.

I think it is of real benefit to the Bank

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 30 and the IMF to make space, real partnership, for

the rest of us--bilaterals, NGOs, EU and UN--in

this country-driven process and acknowledge the

sectoral and microeconomic expertise and linkages

we are bringing to the table. And let me thank the

Bank and the Fund for all they have done to achieve

just that.

But let me also add a special plea to my

fellow funds and programs, such as UNICEF, UNFPA,

and WFP, which have accepted Jim's message that the

CDF and PRSP is a big tent with room for all, but

often find it difficult in practice to find the

entry flap. They must be included, ideally,

through government, in a way that ensures balance

between their sectoral contribution and the

overarching need for country ownership.

So in essence, I am acknowledging that the

dynamic and constructive agreements on policy

choices continue, but they must be contained within

a PRSP process, not allowed to degenerate into the

old wars. That requires clear acknowledgment by

others of the primary responsibilities of the Bank

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 31 and the Fund.

I have dwelled on this point both to

dispel lingering confusion about our commitment to

or our role in the PRSP process, but also because I

think it provides a context for the other front,

that which we are discussing today--holding

ourselves, governments and others to account for

meeting the targets.

Just as the Bank and Fund have clear

strengths in driving the PRSP process, I think the

UN System can build on the real momentum of the

Millennium Summit and Declaration and play an

invaluable role in helping develop and drive a new

campaign at global, national, and even community

level to monitor and benchmark poverty outcomes.

This will draw on the authority of the

Millennium Assembly, our convening power, the

normative role of the UN, our country presence, and

perhaps even more significantly, that we are not in

the front on the PRSPs--a division of

responsibility, in other words, that this city's

Founding Fathers might have approved of, but

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 32 perhaps unlike Washington, seeking real cross-

representation, each involved in the other's

enterprise as well as leading -in other words,

mutual responsibilities, but clear

accountabilities.

Finally, I think we have a clear track

record. UNDP's Global and National Human

Development Reports already do this kind of

benchmarking very well and have an enormous impact

in stimulating debate and policy and providing key

benchmarking tools for countries, states, and

municipalities allover the world. With local

partners, some 360 reports have now been issued in

120 countries. In Brazil, for example, President

Cardoso has targeted a $7.4 billion anti-poverty

program at the 14 states with the lowest human

development index. In Madhya Pradesh, India, the

chief Minister, E.J. Singh, recently described to

me how he governed by his human development index;

it is at the heart of his extraordinary success in

poverty reduction.

Now, as part of the Millennium

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6 6 6 6 ah 33 Declaration, the Secretary-General wants to go the

next step. The UN Development Group has begun a

process of preparing new country reports focused

specifically on the development targets, and UNDP

together with the UN Department of Economic and

Social Affairs, has been tasked with taking the

lead in this initiative.

We unveiled the first of these, on

Tanzania, in London two weeks ago. It was drawn up

with the support of the Government, by the UN

country Team, including in this case the IMF and

the World Bank. We expect that they will become

key inputs for a forthcoming new Annual Report by

the Secretary-General on meeting the Millennium

Targets, which was mandated by the General Assembly

last December.

But I hope it will have a broad public

resonance as well as a narrower utility for all of

us assessing our own performance in poverty

reduction. This is the moment to launch a

revolutionary effort to build up a new global

poverty rating system linked directly to the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 34 targets. It will help mobilize government and

civil society, business and labor, activists and

policymakers, and the public of North and South

alike, in a global race to halve poverty by 2015.

At a global level, the Secretary-General's

report will obviously build on liThe Better World

for All" document that we all participated in last

year, and I hope it will retain the same partners,

including the OECD, together with civil society and

strong Southern representation.

It must be both a sober, statistically

sound, annualized account of results and progress

at the country and global levels that will inform

government and international organizations and

seize the attention of policymakers bec~use of its

focus and credibility--a Standard and Poor's or

Moody's, if you like, of poverty rating.

Obviously, that is a huge, complex

methodological and statistical challenge--how do we

draw up the national data? How can we aggregate up

from, literally, the municipal level to the global

focus? How do we legitimately show movement over

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 35 the short time frame between annual reports?

These are all questions that I hope we

will be able to work together to answer

effectively, drawing in not just the support of

your excellent research here at the Bank, but also

key nongovernmental organizations, such as Social

Watch.

The next two days will offer, I hope, a

lot of the first answers to some of these issues.

So, verify, yesi but then, campaign. I

see these reports as the foundation for a movement

that builds a wide political constituency

encompassing development activists, broader civil

society, and other stakeholders, working in a way

that OXFAM or the Campaign Against Land Mines did

to build and sustain support across North and South

in an ongoing effort to maintain real momentum for

a sustained national and international focus on the

Millennium Targets.

To do that, it cannot exclusively be an

enterprise of the UN or the Bretton Woods; it must

become a global movement, owned firstly, like the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 36 PRSPs, by governments and countries themselves--in

this case, as Sven just said, a compact between

North and South covering not just the outcomes of

Southern performance but also Northern performance,

on aid, trade, support to Rand D regimes, and

investment.

So these indicators must travel well--at

one level, a tool that can inform key policy

instruments from the PRSP to national budgets to

social and political frameworksi a policymaker's

benchmark of effectiveness in poverty reduction.

At another, they must spark public

mobilization and political actions that will drive

tough choices around policies. These indicators

must be smart enough to inform development

decisions by all of our organizations about

strategies and performance while accessible enough

to form the basis of public campaigns against

poverty--an accountability framework for all of us.

So there you have it--an international

effort against poverty organized in significant

part around two instruments--a PRSP to secure

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 37 country-level coherence, and a national and global

monitoring system.

The Bank and UNDP have much to build on as

we move down these two tracks. The success of

initiatives like CGIAR or our work together in the

Water and Sanitation Program, that pioneered issues

of community involvement in gender and delivery of

water and sanitation services to the poor, or

successful balance of responsibilities and programs

that we share between our two institutions along

with UNEP and the Global Environment Facility. All

of my UN colleagues can point to similar successes

in their own relationships with the Bank.

Finally, a word about UNDP's own new,

tighter focus. Built around six sectoral

priorities together with our UN coordination role

and that of advocacy, it has made life a lot

simpler.

In our Bureau of Development Policy alone,

we have closed more than 700 projects and dropped

out of project sectors such as forestry,

agriculture, education, and health. Worldwide, we

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 38 are focusing on six key practice areas--democratic

governance t pro-poor policies , peace-building and

crisis prevention t sustainable energy and the

environment t information and communications

technologYt and the non-health dimensions of

HIV/AIDS. In none do we aspire to dominate the

sector. In each t we think we have particular

comparative advantages that allow us to develop

deep niche expertise. In alIt we work with

partners t and each represents the choice of our

program countries.

Take good governance t which has rightly

become the centerpiece of a new global development

agenda and was singled out in the Millennium

Declaration as a key vehicle to achieve" these

targets.

The UNDP governance broadly makes up half

our program work today and increasingly focuses on

the political side--areas like strengthening human

rights t bolstering parliaments and electoral

capacitYt public sector management t justice

systems t decentralization that brings institutions

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 39 closer to the people and empowers women.

Indeed, that is why we now style it our

democratic governance practice area. Just last

week, I announced a new UNDP center in Oslo that

will do very applied work on the links between

democratic institutions and poverty reduction,

conflict prevention and human rights. Let me

observe, as you at the Bank wrestle with the issue

of focus or "selectivity," as you call it, that it

is a liberating business, ballast out of the

balloon, particularly if focus is combined with

partnerships to cover the consequent gaps in

service.

In each of our priority areas, I see the

'promise of further partnerships with the Bank,

because while these comprise a small subset of your

priorities, you are nevertheless making a major

commitment in each of them. And I suspect this

moment is one when a broader partnership is

important for both of us, with donors and all of

our stakeholders. And I cannot think of a better

place to start than on these interlinked goals, the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 40 PRSPs and the Millennium Targets.

Thank you.

MR. RITZEN: Thank you very much for this

impressive opening speech, Mark.

I think this was excellent in terms of

itself but also in terms of the complementarity

with what Sven brought to the table, because in

many respects, it makes our work easier. It is, as you said, not focusing, I think, on the things

which divide us, but on where we have found

strength in working together--in your words,

finding the flap for the big tent in which we all

have a place.

You also mentioned the international

development targets, the Millennium Declaration

Development Goals study on Tanzania. We found that actually quite quickly, and we found it extremely

refreshing and very pertinent, so we would very

much like to add it to our documentation, so we

will spread it around.

Thanks to the way in which you presented

your speech, we have some time now for questions,

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 41 and if you would be willing, I think we might have

two or three questions from the floor to have the

start of the debate.

Whom could I invite?

Yes, please.

REPRESENTATIVE OF FAO: Thank you for the opportunity.

MR. RITZEN: Please, could you introduce yourself?

REPRESENTATIVE OF FAO [Mr. Hjort] Yes. I am Howard Hjort with FAO.

I wanted to note that Mr. Stern made

reference to the unprecedented agreement on tee

Goals, and I noticed that Mark Malloch Brown has

spoken of the consensus on the International

Development Goals, but then went on to speak about

the Millennium Goals.

I am sure that everybody knows that there

is a fundamental and significant difference between

the Millennium Goals and the International

Development Goals.

My question is will the International

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 42 Development Goals be modified in the approaches

that are being used from the country level on up to

conform to the Millennium Goals.

As you might expect, my primary concern is

the omission in the International Development Goals

of the goal that was established by the heads of

state of all the governments that are represented

here today to halve the number of persons hungry in

the world by 2015. That goal is not in the

International Development Goals; it is in the

Millennium Goals, although it is a less aggressive

goal there--it is the proportion, as it is with

respect to poverty, instead of the number.

Thank you.

MR. RITZEN: Yes?

MR. BROWN: On that, my view is that the

International Development Goals were a step toward

a process which has now culminated with a unique

act of endorsement, which is the 160-plus world

leaders--not ministers, but world leaders--at the

Millennium Summit, and therefore, my view is that

it is a step back to return to a less universally,

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 43 less high-level endorsed set of goals.

I also like the fact that they are

slightly wider--we think there are 10 as against

the 7 or so in the International Development

Targets. So I think both are steps forward. I

think that, frankly, both have some omissions, and

we may have to slip in a few extra ones. Some of

my colleagues are worried that neither pays quite

enough attention to some aspects of education. I

think more seriously, some of us are worried about

what Sven referred to, that North-South compact of

holding the North accountable to levels of

development assistance, et cetera, are not

explicitly in either set. I think we have to build

the political case to include them, bec~use

otherwise it is not balanced.

But certainly going to the Millennium

Targets and then trying to go even beyond then some

by referring to the broader Millennium Communique,

which does demand levels of higher global action on

imbalances in the world economy and therefore

provide the legitimacy for this slightly expansion

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 44 and balancing of the Goals--that strikes me as the

way to go.

MR. RITZEN: Thank you so much.

[Pause. ]

MR. RITZEN: No questions at this stage,

if I am correct--yes, please.

MR. BRADFORD: I am Colin Bradford, and I

am a professor of economics at American UniversitYi

but I was in the u.s. Government and in fact Chief

Economist of AID and our representative at the DAC

when we launched this whole effort to develop what

became the International Development Goals.

I would just like to rise on this point,

and I am sorry to intervene so soon in this

discussion, but I have thought a lot about this,

and I think the issue that the representative from

FAO has raised is a crucial one, because the

advantage of the International Development Goals as

articulated in this conference is that they are

few, they are concrete, they are monitorable, and

they are achievable, so they telegraph to the world

community in ways that I think we haven't fully

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 45 exploited yet and which Mark Malloch Brown I think

has articulated a very strong strategy for

mobilizing public opinion in parliaments. But I do

think that it would be unwise for us to dicker

about the differences between the Millennium Goals

and the IDGs, but rather think about them as one

and the same thing. If necessary, we could put

together a task force which would attempt to

reconcile the Goals, but I think that in fact they

are complementary, and that it doesn't take too

much intellectual work to figure out how to make

them concordant.

I would just like to put that forward,

because I think, Mark, that the politics of what

you articulated is something that I think was

behind why in the DAC we came up with this strategy

in the first place, and what we don't want to do is

to give on the outside, especially to parliaments,

any sense that we don't have our act pulled

together behind something very, very clear and

finite and specifically focused.

Thank you.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 46 MR. RITZEN: Thank you very much.

I am sure that this issue will be

discussed time and again during these meetings, and

I am particularly looking forward to the discussion

of the interlinkages between the different set of

goals as we will be doing today in the session on

"Sharing Experiences and Building Knowledge," but I

am also looking forward to the discussion tomorrow

from the countries' perspective, because in the

end, I think the countries will be the main focus

of all the work and in that respect will be

dominant. But that is just as a way of introducing

the answer from Mark Malloch Brown.

MR. BROWN: I think it is a very important

point. As a campaigner, I am very uneasy with the

idea of the list growing longer and returning to

some of the laundry lists of the past. So we have

got to keep it tight--and you are the expert--but I

think I am right in saying that until the

Millennium Summit, whereas all the other individual

targets had been endorsed at high-level conferences

such as Copenhagen or Copenhagen Plus-5, there was

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 47 a feeling that the 2015 halving of world poverty,

for example, lacked a clear, unequivocal, explicit

global endorsement.

So we got some more political weight

behind that one, and there are a couple which were

added--and there are people in the room much more

expert than I am on this--but they included things

like the incidence of HIV/AIDS and bringing that

down, where a set of goals which didn't include

such a clear, dramatic global challenge would, I

think, look incomplete to people.

But you are absolutely right--this has got

to be seen as just IDTs plus--it is absolutely the

son of the IDTs--not even the son of--it is a

modest expansion but a very controlled expansion,

and we must not let the process escape from us and

become something which is not monitorable or cannot

be the basis for global political mobilization.

MR. RITZEN: Thank you very much.

We are now in our time frame exactly on

time--very unusual, but I think very much in line

with our own monitoring of progress.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 48 I would very much like to thank the

speakers--Mark Malloch Brown as the person from the

I outside who I think has set the stage in a very

convincing way; Sven Sandstrom, for his opening

'' address; and of course also Nick Stern for his ' ! I contribution.· 'i I I would like very much to give them a big i' ~ ,:/ :I hand for their presentations·.

[Applause.]

MR. RITZEN: I would now like to turn to t the chairman of the next session, who is Sven Sandstrom.

MR. SANDSTROM: Thank you very much, Jo.

I guess this is where we get down to the real work. i I believe we have four presentations, five '

speakers, in this session, so let me introduce all

of them at 'this stage so you get the overview o£

what you are going to hear in the next hour or so--

~our or less, I hope.

The first presentation will be from Ian I , Kinniburgh. I am very pleased to welcome you. I I Many of you know him already from his work '/'',::,! 'I' ,I : ,,\, II,',: l'•i: 'I i ::; MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 .. (202) 546-6666 ah 49 with the UN, where he has been now for, I believe,

12 years. He is currently director of the UN's

Division for Development Policy Analysis in the

Department of Economic and Social Affairs. He will be speaking to us about the UN strategy to realize

the IDGs.

So, welcome to you, Ian.

The next presentation will be by Emmanuel

Tumusiime-Mutebile. Welcome to you.

Emmanuel was recently appointed Governor

of the Central Bank of Uganda, and before that, he

was Permanent Secretary for Finance and an advisor

to President Museveni. Emmanuel not only has a

developing country perspective but also an

international one; he has worked as a consultant

with a number of international organizations

including OECD, the IMF, and the Bank. His

presentation will focus on how to incorporate the

IDGs into Uganda's development strategy.

The third presentation, with two speakers,

will be from OECD and its Development Assistance

Committee. Brian Hammond, who is the Head of

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 50 Reporting Systems in the Development Cooperation

Directorate of OECD, and Paul Isenman, who is Chief

of the Aid Policy Division in the DAC Secretariat,

will make the presentation.

Brian, in his time at OECD has, among

other things, focused on organizing and

coordinating work on indicators to track progress

toward the IDBs, and Paul is well-known to many of

us. He has spent quite a few years--20-plus--at

the Bank, and he has experience in nearly every

Region and many sectors and, maybe most

importantly, he led the team which prepared the

first World Development Report on Poverty, some 20

years ago or so.

We are very delighted that the two of them

are here today, and they will be discussing

bilateral cooperation for promoting the IDGs.

Our fourth presentation will be made by

Michael Schultz, who is Chief Social Development

Adviser in the British Department for International

Development. Much of his work at DFID has focused

on incorporating social policy and poverty analysis

MILLER REPORTING CO., INC. 735 6th STREET, S.E. WASHINGTON, D.C. 20003-2602 (202) 546-6666 ah 51 into national development strategies, working

particularly with countries in Africa and Asia.

We are very happy to welcome you, Michael.

Michael will brief us on the UK white paper on the

International Development Goals and I hope also on

the Conference on the Child Poverty Initiative

which took place recently in London.

With that, most of my work is done, and I

will simply turn it over now to Ian Kinniburgh.

Ian, please.

MR. KINNIBURGH: Thank you very much

indeed, Mr. Sandstrom.

First of all, 1 et me apologize for Mr.

Nisin Desaya [phonetic], Under Secretary General

who, like Nick Stern, is traveling and "is unable to

be here today, but this should not be taken as any

underestimation of the importance of this meeting.

We at the UN attach particular importance to this

meeting because we do see it as the beginning of a

long road ahead of setting our program of work

collectively.

In that respect, I would like to thank

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 52 very much the organizers- the Bank, for organizing

this meeting on particularly short notice- and to

thank all the people behind the scenes in

particular, because we all know how difficult it is

to put on a meeting of this magnitude. But it is a

very important event, and we are grateful to be

here.

I feel that it is rather difficult, as Mr.

Ritzen said, to follow up on the very impressive

statement by Mark Malloch Brown, and again, since I

also come from the United Nations, but I also think

it is useful to follow up at the beginning with

some of the, if you like, background and context

from the UN perspective on the International

Development Goals.

As has been said in the last few minutes,

these were initially drawn up by the DAC, but they

were indeed rooted in the UN global conferences of

the 1990s. So of course, we at the UN have a very

heavy invested interest in these goals.

But I think it is also important to

realize--and this was touched upon--that these were

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 53 taken from a number of different conferences--the

Social Summit, the Population Conference, the

Women's Conference, and so on and so forth; they

were extracted from those--but each of those

conferences in its own right was, I would say, a

balanced package, and we therefore took from those

certain goals, but we also need to reference that

these conferences, each one individually was a

carefully crafted balance of commitments and

responsibilities. I think that that is something

that has to be underlined again.

I think it is important--and Mark

mentioned that we moved on to the Millennium

Summit. This was in fact the occasion when,

collectively, governments endorsed the so-called

Millennium Goals. And it is true that they are not

exactly the same, but I think one of tee things

that has to be underlined, and I think the driving

force behind the meeting here today, is tee

commitment that was made by governments

collectively, developed and developing countries,

at the Millennium Summit. I don't wish to blow the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 54

UN's trumpet too much, but I am going to do so a

little bit.

As everybody knows, this was a meeting of

heads of state and government, and as Mark said,

140 to 150 heads of state and government signed

onto the Millennium Declaration. I think the

political commitment here is very important, and it

is something that has to be sustained. A critical

part of this process for coming years will be to

sustain, if I might say, the political commitment

to these goals.

I would say that the Millennium Summit--I

will be perfectly frank- there was some

apprehension, I think Mark would agree, before the

event took place that it might not work very well.

We have to be perfectly honest about that. And I

don't think it is an exaggeration to say that ex

post, it worked very well. One reason for this was

precisely the personal commitment of the heads of

state and government. This was not quite just

because they all got up and made speeches in the

General Assembly Hall. But an important part of

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 55 the process for those of you who do not know was a

series of roundtables among the heads of state--at

literally a table this size--there were four

sessions, and heads of state and governments met.

I think that that did go a very long way toward

generating a genuine sense of commitment,

collective commitment, and mutual understanding.

And I think the important word in the title, apart

from the focus on the Development Goals, is very

importantly the word about "consensus." I think

there was an unprecedented degree of consensus--

maybe not on the specific words, but this global

consensus on the development challenges ahead of

us.

One of the roles of the United Nations

servicing its governmental bodies, the UN

Secretariat, is to maintain this political

momentum, and at the same time, this is only going

to be achieved if the international community--and

that really means literally all of us--is

successful in moving forward on the Goals.

So I think the political commitment is

MILLER REPORTING CO., INC. 735 6th STREET, S.E. WASHINGTON, D.C. 20003-2602 202 546-6666 ah 56 extremely important, and I would underline that.

And there is, of course, a balanced commitment

between both developed and developing countries,

and I will come back to that in a second, because

that is the first point that I want to underline.

Now I would just say that the basis for

the Millennium Assembly was a report put out by the

Secretary-General, and it is not in your binder,

but we do have copies available; it is a rather

thick document. This provides the background to

that Assembly, and it is summarized in this folder.

So this is the documentation that was provided and

gives the background to the various Millennium

Goals.

It is important to realize when we talk

about interrelationship, again, that the Millennium

Assembly addressed more than the development

aspect; it also addressed security issues, human

rights issues, and so on--the full United Nations

spectrum. And here again, the interrelationship

between these Development Goals and the other

objectives of the international community is very

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202 546-6666 ah 57 important. It is not something that we are going

to focus on here today, but I think it is important

as we all recognize the interrelationship between

development and the other aspects of the work of

the United Nations, in particular, peace and

security.

NOw, as has been mentioned, the specific

development targets within the Millennium

Declaration are not exactly the same as the

International Development Targets. As Mark has

said, I think to some extent there is inevitably

some evolution. There are some things which were

added, and I think he has referred to one, which is

the HIV/AIDS objective, which is something that has

evolved and come more to the forefront since the

initial list of International Development Targets

was drawn up. There is also the issue of Cities

Without Slums, reducing slum-dwellers, and so on.

I think this is something that has to be

discussed, but I agree that we should not spend--I

think it would not be fruitful to spend a lot of

time arguing about this. I think that what we have

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 58 to do, again, is to maintain this overall

consensus.

But it is also important--and I go back to

this--the compact in essence, as someone referred

to, between the developed and developing countries.

The developing countries, it is clear now, fully

appreciate that they have the primary

responsibility for their own development. This is

not a subject of discussion or debate anymore.

They realize this responsibility, they understand

this responsibility. They understand that they are

the people who have to mobilize the resources to

make this effort, and that the attainment of the

goals is going to be primarily their

responsibility.

I think this is accepted, and this is an

important foundation of the consensus. But it is

also argued- and this has to be underlined--that

for a variety of reasons--moral, ethical, and now

the rights-based approach, self-interest--developed

countries also have responsibilities. This is

recognized very clearly in the Millennium

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 59 Declaration in statements about globalization and

so on, but also in some of the other areas that

have been mentioned here already this morning in

terms of ODA, a critically important commitment

that has to be responded to by developed countries;

very clearly, the trade area; very clearly, the

debt area; very clearly, effectiveness and

coordination among donor countries.

So one of the important things here again

is the balance, the political commitment on both

sides that forged this consensus, and this is

something that has to be maintained.

Possibly the difficulty with the

Millennium Declaration, one might say--and the key

reason for this meeting today--is how we translate

all of these things into action. This involves

many people--everybody in this room--and one of the

key issues we are going to have to face is indeed

how we work together in order to achieve these

goals. Obviously, the UN will play its role in

continuing to bring people together to discuss how

we work together to attain these goals.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 60 The important thing, of course, as has

been said this morning, is that tee goals are

indeed, we believe, attainable, which is critically

important, in contrast to some of the earlier, we

would argue, wishful thinking. It is going to be

extremely difficult to achieve them--that, we all

also recognize. But it is also therefore

particularly important that we have this collective

approach.

Now, in terms of the UN strategy to

realize the goals, without being bureaucratic, this

of course to some extent depends on what we mean by

the UN. One important dimension of the term "the

UN" is of course the collection of member states,

the intergovernmental level. As I started out by

saying, and as we all know, the goals originated in

tee global conferences in intergovernmental

discussion, and these discussions are, of course,

in a way continuing, and there will be some very

important events where we can continue to refine

these goals in the years ahead.

The most immediate one is the Conference

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 61 on the Least-Developed Countries which is coming up

in May, and subsequently, there is next year a very

critical UN conference on which I have already

distributed a brochure outside, on the financing

for development process.

One of the difficulties of many of the

global conferences so far is that they have not

addressed the vexing question of the resources

necessary to implement them. One exception--

somebody opposite me here is nodding away a little

bit--there was a slight exception in the Population

Conference where there was an attempt to quantify

the resources which are necessary to implement that

conference. But by and large, for the other

conferences, there has never been any concrete

specification of the resources required either

domestically or internationally, international

transfers required to achieve the goals.

Next year, under the auspices of the

United Nations, it has been agreed that there will

be a conference on "Financing for Development," one

of the objectives of which will be to address the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 62 resource issues. This is one way in which the UN

will be carrying forward the objectives of

attaining the Millennium Declaration.

At the same time, it will also be

complemented by the other follow-up review

processes to the earlier global conferences. There

are a number of these. Fairly shortly, you will

have the follow-up to the Children's Summit. But

most importantly also, there will be the follow-up

to the Rio Environment Conference which, amazingly

enough, is now 9 years ago; and next year, there

will be a summit on the follow-up to the

Environment Conference that was held in Rio de

Janeiro. This again will be an opportunity to

advance, I would think, some discussio~ on a number

of the Development Goals, but particularly those

pertaining to the environment.

I would then go on to the UN--I am

skipping some of the things, as Mark has touched on

many of the things that we are addressing here.

Mark also mentioned that on the Secretariat side,

purely as a Secretariat responsibility, the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 63 secretary General has been called upon to produce

in the follow-up to the Declaration annual reports

on implementation. This clearly will be a

mechanism, as Mark has elaborated quite clearly,

for following up and in particular, I think,

pulling together and coordinating the various

organizations of the system.

Here, I think it is important that while

the UN Secretariat itself is not directly involved

in what we would call operational activities to

such a great extent, the UN itself is not involved

in providing assistance directly to developing

countries, but the UN System as a whole does

through the specialized agencies, as we all know,

and including notably through the funds and

programs. And the UN Secretariat has the

responsibility for pulling these various programs

of assistance together in a coordinated fashion

through the Administrative Committee on

Coordination. This has been called upon in the

follow-up resolution to prepare a road map for the

implementation of the Millennium Declaration.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 202 546- ah 64 This road map will be prepared by the Secretary

General, and it will provide guidelines for all the

programs of the United Nations System, the

specialized agencies, funds and programs, and the

regional commissions, and will be presented to the

General Assembly next year.

Clearly, this meeting that we are having

today will provide a very important input into the

preparation of that road map, in particular getting

the views of the developing countries as to how

they see the role of the United Nations System in

following up on these various commitments.

Mr. Chairman, I have cut short some of the

things I was going to say precisely because Mark

Malloch Brown gave, as you said yourself, a very

impressive statement, but let me finish by quickly

summarizing and quoting from the Secretary General

himself, who says, and I quote: "Ultimately, it is

the leaders themselves who are the United Nations.

It lies within their power and therefore is their

responsibility to reach the goals that they have

defined. To them and to their constituents, the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 65 people of the world, I say only you can determine

whether the United Nations rises to tee challenge."

But at the same time the Secretary General

says: "I rededicate myself and my staff to

carrying out the mandate embodied in the

Declaration."

Therefore, Mr. Chairman, we are very

pleased to be here today in particular, I think, to

listen and learn from the developing countries that

are represented here on the role that they expect

the United Nations to play in assisting them--I

repeat, to assist them- in achieving these goals.

Thank you very much, Mr. Chairman.

MR. SANDSTROM: Thank you very much, Ian,

for setting the context and for the road map to the

UN System. It is not easy for all of us to

understand how it works all the time, but you have

been very helpful.

Let me note before we proceed that we have

been asked to hold our comments and questions until

the end of these four presentations. We also have

a couple of discussants who will come in then to

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 66 help lead off the discussion, and before that

starts, after the fourth presentation, we'll have a

coffee break.

Let me move on. We are doing reasonably

well on timing; we.'re going to try to stick to

about 15 minutes for each presentation.

We will move on now to Emmanuel, and we

will hear from him on the Ugandan experience with

the IDGs.

Emmanuel, please.

MR. TUMUSIIME-MUTEBILE: Thank you, Chair.

In recent years, two major changes have

taken place in development paradigms. First, there

is now a consensus that the overriding objective of

development should be poverty reduction. Moreover,

it is now generally agreed that poverty reduction

does not follow automatically from economic growth.

Whereas economic growth is a necessary condition,

it is not a sufficient condition for poverty

reduction. The nature and quality of that growth

is also crucial for poverty reduction.

Secondly, the concept of poverty must be

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 67 broadened beyond indicators of income and

expenditure to encompass a broad range of

indicators of the welfare of the poor, such as

access to education, improvements in health, gender

equality, and environmental protection.

I would like to stress that the experience

from the Ugandan Participatory Poverty Assessment

Project demonstrates that security of life,

security of livelihoods, and security of property

from violence and lawlessness is a crucial factor

in poverty reduction and welfare of the poor.

Let me now turn to the implications for

public policymaking in LDes of the International

Development Goals.

It is important to point out that

achieving the International Development Goals

involves a central role for the state in terms of

regulating markets and enforcement of contracts and

in terms of the government budget through the

provision of public goods in sector-sensitive

poverty reduction.

This role of the state requires market-

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 68 friendly economic policies and a stable macro

economy. I must emphasize that these two are a

prerequisite to raising household incomes and

reducing poverty.

Although there is a broad consensus at the

political level in LDCs that poverty eradication

should be a priority for public policy, it is far

more difficult to translate such a consensus into

policies which are optimal for poverty eradication.

This is partly because the economics

underlying optimal policies are often poorly

understood even among economists. Trade policy is

a good example of this. But also partly because

there may be influential political constituencies

which stand to lose from these optimum policies--

for example, the reallocation of public expenditure

from subsidizing loss-making parastatal enterprises

to funding social services will obviously be

opposed by those who would benefit from the

spending on parastatals.

In such circumstances, a clearly-

articulated and coherent poverty reduction strategy

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 69 in which is embedded all of the country's economic,

budgetary, and social policies within a consistent

and viable macroeconomic framework can play a

crucial role in promoting public and political

support and understanding for the policies which

are necessary for poverty eradication.

This is a very important lesson from my

experience in Uganda with the Poverty Eradication

Action Plan, or PEAP , which is Uganda's

comprehensive development framework and is also the

basis of our PRSP.

I think it is worth emphasizing this

point, that we in Uganda don't have a separate CDF

process, PRSP process, from a poverty reduction

strategy--no. We have one long-term framework for

poverty eradication from which all these other

processes fall.

I should also point out that when the PEAP

was first drawn up in 1997, it was after 2 years of

lengthy, broad-based consultations with all

stakeholders long before widespread stakeholder

participation became involved internationally--long

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 2 2 ah 70 before.

It is in this sense that it can

justifiably be claimed that the PEAP is

domestically owned. The PEAP was extensively

revised last year to set out a comprehensive

strategy for poverty eradication by the year 2017,

based on four pillars--first, creating a framework

for economic growth and transformation, and in this

framework, I must emphasize that macroeconomic

stability is supreme; second, to assure good

governance and securitYi third, to ensure that the

poor can directly increase their incomes; and

fourth, to increase the culture of life of the

poor.

The PEAP as a tool for shaping public

policy and building political support for the

policies which reduce growth has been particularly

important in three crucial aspects--a point that I

make in paragraph 2.5 in my paper, I say in two

aspects--but three crucial aspects. First, the

PEAP has identified the key sectors of the

government budget which can make the maximum

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 71 contribution to poverty reduction. Governments'

monetary priorities as identified by the PEAP

incorporate the main social objectives entailed in

the International Development Goals.

Secondly, the PEAP has brought into focus

the imperative of modernizing the smallholder food

crop agricultural culture, where the vast majority

of the poor earn their livelihoods, and has

stimulated the development by government of the

plan for modernizing agriculture, which focuses on

the need to enhance the natural resource-based

livelihoods of poor farmers.

Thirdly, the PEAP has forced the

government to confront the hard choices which must

be made between competing claims on government

resources and to evaluate these policies in terms

of their impact on poverty_

I think the challenge for policymakers is

to understand the interrelationships between all

the different aspects of poverty in order to devise

the optimal mix of policies which achieves the

maximum progress toward the stated objective, but

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 72 which is also feasible within the resources

realistically likely to be available to a country.

I must stress this point, because the

discussions in international fora since the CDP

tend to proceed as if the CDP has abolished hard

budget constraints. Nothing can be more than an

illusion.

Living within the resource envelope and

avoiding excessively expansionary fiscal policies

is especially important for the poor because the

poor have only a limited range of financial assets

and hence are more likely to hold their financial

assets in cash if they have any savings at all.

The poor therefore bear a disproportionate

burden of the inflation tax.

Living within the available resources, I

repeat, requires policymakers to make choices. Not

all choices that are thought to have a poverty-

reducing impact can be implemented in a given

budget year. Ideally, policymakers have a whole

list of proposals and policies to choose from,

drawing, for example, from conferences like this

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 73 one, but also based on domestic research and the

proceedings of other stakeholder consultations and

meetings.

But when necessitated to make choice

requires a full understanding of the

multidimensional nature of poverty and of all the

characteristics contributing to poverty and the

interrelationships, but always within hard budget

constraints.

As I said, it is a dangerous illusion to

say that the need to attain the International

Development Goals can somehow set aside the need to

prioritize in order to live within the resources

realistically likely to be available from both the

domestic sources as well as from external sources.

I would like to say something about the

importance of accurate data on the incidence and

nature of poverty for public policy formulation in

LDCs -not DCs, but LDCs.

Beginning in the early 1990s, the Uganda

Government has conducted six country-wide household

budget surveys designed to yield quantitative

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 74 information on household income and expenditures,

utilizing the evolving techniques of international

best practice in this field. These household

surveys have provided hard evidence that the

incidence of poverty fell in Uganda during the

1990s by 22 percentage points of the population.

This evidence has proved invaluable in

demonstrating to an often skeptical public and

politicians that sound economic policies combined

with budgetary policies which focus on delivering

basic social services to the poor can be effective

in reducing poverty.

Over the recent past, the proportion of

Ugandans in consumption poverty has fallen from 56

percent in 1992 to 44 percent in 1997, and a

further fall to 34 percent in 2000.

We believe that if the performance of the

last decade is sustained into the future, the goal

of poverty reduction in Uganda will be attained.

Without this hard quantitative evidence of the

impact of Uganda's economic and budgetary policies,

the political pressure for populist measures to

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 75 reduce poverty, such as unsustainable increases in

public spending, such as the enforcement of minimum

wages, or protectionist trade policies which might

be intuitively appealing to the public and

politicians but will be very damaging to economic

growth and welfare in the long run would be very

much harder to resist.

There has been much progress toward

meeting the International Development Goals, but

let me select a few areas. Progress has been made

in areas of water and sanitation where the

provision of safe water supply and hygienic

sanitation facilities for all Ugandans is envisaged

by the year 2015.

The introduction of the policy of

universal primary education has increased in

enrollments threefold in primary schools since

1997, and the key issue now is to improve the

quality of education, supported by generous donor

aid flows and government funds saved from the HIPC

multilateral debt relief initiative.

Between 1994 and 1997, enrollments have

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (?I'l?) "4~-~hhh ah 76 been raised by a total of 64 percent, composed of

56 percent for males and 74 percent for females.

For the health sector, a National Health

Strategy Plan has been developed with the goal of

reducing the causes of ill health and premature

death. The Health Sector Strategic Plan is

designed around a basic minimum package which is

based on the predicted impact of cost-effective

interventions for the prevention and control of the

major causes of the burden of disease. I think

most people know that the biggest success in this

area has been the reported reduction in the

incidence of HIV infections and the virtual

eradication of guineaworm, polio and leprosy from

Uganda.

Environmental policy in Uganda also aims

at sustainable social and economic development,

which maintains or enhances environmental quality

and resources productivity on a long-term basis,

but meets the needs of the present generation

without compromising the ability of future

generations to meet their own needs.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 202 546-6666 ah 77 The Government created a Poverty Action

Fund in 1998 to ring-fence the financial resources

which were saved as a result of debt relief under

the HIPC initiative. The Government voluntarily

earmarked all the savings from debt relief for

spending in the poverty Eradication Action plan

priority areas.

Since 1998, the Poverty Action Fund has

attracted additional donor support over and above

the debt relief, and this has enabled the

Government to increase tremendously the amount of

money going to the poverty reduction areas and

designed to attain the goals of the International

Development Targets as well as our own goals.

Finally, I would like to point out that

the Poverty Action Fund expenditures are an

integral part of the Government budget as envisaged

by the PEAP. The PEAP provides a framework for

sector-wide plans and investment programs which in

turn are translated into actual budgets in the

Medium-Term Expenditure Framework. The purpose of

the Medium-Term Expenditure Framework is the design

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 78 of all public expenditure by a clear analysis of

the links between inputs, outputs, and outcomes to

ensure consistency of sector expenditure levels

with overall resource constraints so as to ensure

macroeconomic stability and maximize the efficiency

of public expenditure in attaining predetermined

outcomes, including the IDGs.

Let me turn briefly to the question of how

IDGs can improve donor. There is now widespread,

strong empirical evidence that donor aid when

combined with sound economic policies can yield

important benefits for poverty reduction. The

donors have a vital role to play in supporting

efforts of LDCs--I am sorry the text says "DCs"--to

achieve the International Development doals,

notably in providing financial and technical

assistance to facilitate the expansion of the

public service provision in key poverty-reducing

sectors.

What do developing countries want from

their donor partners? Uganda has formulated a

comprehensive Poverty Reduction Strategy and an

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 79 associated Medium-Term Expenditure Framework which

is consistent with this Strategy which has achieved

the broad backing of its donor partners. Uganda

needs donor partner support for its budget,

currently around 50 percent of all the resources

for the budget--a situation which is not untypical

in Africa. But I would like to stress that if

donors are to maximize the value of the financial

support, they must take on board two key points.

First, donors should provide their aid in

the form of general budget support, leaving it to

the government to allocate these resources within

its budget in accordance with the broad budgetary

priorities agreed to by both government and donors.

Secondly, donors must try to provide

firmer long-term commitments of financial support

to the budget. Expanding access to public services

and improving the efficiency of the services

requires long-term budgetary planning, and hence a

degree of stability in the budget resource envelope

available to the government is required.

Donor funds are often the most volatile

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 80 element of the budget resource envelope, which can

create severe difficulties for budgetary management

and planning.

In order to improve the partnership

between donors and recipient governments, the

partners need to change their behavior. In the

case of Uganda, my paper mentions 10 areas in which

Uganda needs to change and 10 areas in which donors

need to change in order to strengthen partnerships

for achievement of the IDGs and indeed of our other

objectives for poverty eradication.

I have also given the organizers copies of

a paper which I wrote for a Stockholm Conference on

"Making Partnerships Work on the Ground," which

explains most of these requirements for change.

In conclusion, I believe that the

International Development Goals have an important

role to play in terms of strengthening the focus of

the budgetary process in developing countries to

give priority to poverty eradication policies. To

be effective, these budgetary policies must be

harnessed within a sound economic framework and

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 81 underscored by political commitment.

The IDGs also enable LDCs and their

development partners to articulate a consensus

around policy goals, and as LDCs commit themselves

to achieving these goals, this should give

development partners the confidence to enhance

their financial commitments to LDCs in the form of

budget support.

The eradication of poverty requires a

holistic approach that considers all constraints.

Thus, whereas the IDGs can be used to monitor both

progress toward the goal of poverty eradication,

policymakers remain with the challenge of devising

an optimal policy mix to work toward that goal

without neglecting other constraints, most

particularly the macroeconomic constraints.

I thank you.

MR. SANDSTROM: Thank you very much for

sharing this real-world experience from Uganda with

us.

Uganda, as we all know, has clearly been

among the leaders in pursuing the poverty focus,

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 82 and we have a lot to learn from you.

I must also applaud you for the 10-10

compact you are proposing. We will take a close

look at that and see how we can follow up. I'm

sure that others later today and tomorrow will also

follow up and amplify on some of your experience.

I see Mr. Zongo from Burkina Faso here, and he has

gone through similar experiences.

Let us move on.

Brian and Paul. In which order would you like to proceed?

Brian first, please.

MR. HAMMOND: Thank you very much, Sven.

I must say it is a great privilege to be

here today representing the Development Assistance

Committee and to see that the International

Development Goals have really arrived.

I think that when this publication was

issued in May 1996, "Shaping the 21st Century, II we

were perhaps a little overly ambitious with the

title--but perhaps we weren't. Perhaps we really

here do have an opportunity to shape the 21st

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 83 century, and the partnerships that has led to the

Millennium Development Goals and that endorsement

of this compact set of goals which are deliberately

selective in order to fulfill that advocacy role, I

think is very important.

It is a shame Colin Bradford has left,

because I think that here, a number of the authors

of the report are in this room, but there are also

many friends with whom we have worked over the last

4 years or so on how to turn those goals into this

truly international partnership and come up with

the indicators and finally, "The Better World for

All" publication on monitoring progress.

I think it is important to remember that

in "Shaping the 21st Century" there were four main

pillars identified. One of them was the goals,

what have now become known as the International

Development Goals. For a while, they were known as

the DAC goals, and I am absolutely delighted that

our name has been removed from them; these are

indeed shared goals.

The second pillar was local ownership and

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 84 partnership, and that is absolutely important, and

again, I think we see the partnership in evidence

around this table. And we just heard from

Emmanuel, again, a friend from helping on the

indicator work, just how much local ownership is

vital and how much it has taken off in Uganda.

The third pillar is resources, and people

have already discussed the need for resources, in

particular aid, official development assistance

funding in support of the goals. And the story on

that, as you know, has been disappointing, and the

donors are very well aware of that. ODA has turned

up in the last 2 years, and we will know in about 2

or 3 months whether that increase has been at least

maintained in the year 2000.

The fourth pillar was policy coherence,

and Paul, among other things, will address OECD

work in that area.

Picking up on the partnership issue, one

of the papers that we put in your pack was

something we wrote a couple of years ago called "On

Common Ground" which was published in the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 85 Development Cooperation Report. What this showed

was the convergence of thinking around common

frameworks, around local ownership, around

partnership, around managing results. And I think

it is very important what Emmanuel has just said

about the fact that Uganda doesn't have a CDF,

doesn't have whatever--it has its PEAP, and that

then serves these mUltiple purposes, because I

think that that demonstrates local ownership par

excellence.

As I said, it was a privilege to work on

"The Better World for All" publication last year.

It is a delighted to see the graphics up there,

doing their job as an advocacy role. It was

deliberately pictorial and simple, to just get the

message across, and that is an important part of

keeping the momentum up into the future.

That was achieved through a unique and

critical partnership between mainly the four

actors--the United Nations System, many agencies

within that, with the Bretton Woods institutions,

the Fund and the Bank here in Washington, but also

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 202 546-6 6 ah 86 with the bilateral donors working under the

Development Assistance Committee in the OECD. And

that is a critical partnership, because I think the

criticism of "The Better World for All," that it

did not reflect enough balance between development

outcomes in terms of the International Development

Goals and the responsibilities of the donor

community in delivering on resources, on trade

access, on more coherent policies, is an important

one, and that will be recognized in further work on

such publications, and I think it therefore very

important that the donor community recognize that

and are present to give that sort of balance sheet

where, perhaps on the left-hand side, we can see

what progress is toward the IDGs, and on the right

hand side, how those resources and market access is

coming together, are policies being more coherent,

are donors making progress on what Emmanuel was

just saying about the burden of donor procedures.

We have just set up a new task force to address the

burden of donor practices to see if those can

indeed be relieved.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 54 -6666 ah 87 Before I hand it over to Paul, perhaps just a word on the Millennium Goals and the IDGs.

I entirely agree with those who have said let us

not get too excited about the consistency between

those .two sets. I think it was very important that

the Millennium Assembly gave that formal

recognition of the goal 'of halving poverty or the

proportion of people in poverty by 2015. Poverty was recognized at Copenhagen but no timetable was

set for the eradication of poverty. I think that that recognition at the Millennium Assembly was

absolutely vital and that setting of what actually

is; of course, only an intermediate goal.

Copenhagen rightly set eradicating world poverty.

We have to recognize that we are in this,

therefore, for the long haul.

But others have also said the importance

of not ~hopping and changing--not, as Ian was

saying, having goals that were no more than

aspirations and really not achievable. I think that is pne of the unique features of the IDGs and

of most of the Millennium Goals, but I think that

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 88 importance that they are achievable, are

measurable, and are a compact advocacy tool is a

vital role and that we are in this for the long

term and are not going to move the goalposts,

because I think that that has been too much a

feature of past conference declarations.

So in conclusion, I certainly on behalf of

OECD/DAC look forward to working within this

partnership on the exciting agenda that Mark

Malloch Brown set out, of looking at how the PRSPs

are involved--and certainly, in the DAC, we are

working closely with the Bank and the Fund on the

donor role in countries on the PRSPs, but also on

the agenda of reporting on progress toward the IDGs

and the MDGs, and I think that [inaudible] report

is an excellent example of that, and that was

precisely the title it put in the top left-hand

corner; it just used the acronyms for both sets of

goals.

Thank you.

MR. SANDSTROM: Thank you very much,

Brian.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 89 Paul?

MR. ISENMAN: Thank you, Sven.

I am going to pick up where Brian left

off, and I have to start with an apology. If I

stumble occasionally as I go through this, it is

because my computer broke down on the flight

between Paris and Washington, and I am faced with

the impossible task of reading my own handwriting.

We are all deeply committed here to

poverty reduction, and in that connection, we are

deeply committed to the International Development

Goals. But if we all spoke very frankly, sometimes

we would say we are not quite sure exactly how they

relate to each other, and I would like to talk

about some aspects of that because I think it is

relevant to operationalizing the IDG concept.

With apologies to Professor Ragav Gaiha

[phonetic], I am going to use the title of his

January paper, "Are DAC Targets Useful? II as a

jumping-off place for some points on

operationalizing IDGs.

First, as Brian just pointed out, they are

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 90 certainly no longer DAC goals--they are very much

international development goals. Well, how come we

have this small set of goals to stand for something

so broad as poverty reduction?

I'd say the IDGs are a stretch subset and

symbol of a broader set of objectives related to

sustainable poverty reduction. Colin Bradford, one

of the parents indeed of this whole effort, has

also reminded us that they need to be few,

concrete, monitorable, and achievable.

The IDGs are achievable, but they clearly

are stretch objectives, and there is lots of

experience that stretch objectives can, if handled

right, help achieve stretch results.

Will each IDG be met globally and for each

region and country? Of course not. Sven already

pointed out that Africa is behind, for example, in

some areas.

Are there some, like gender equality and

education in 4 years, that are much more of a

stretch than others? Of course.

Now, I don't want to go too far here. I

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 91 think that research on the feasibility of achieving

different IDGs in different circumstances is quite

useful, including for helping to judge country

progress over time.

The IDGs are also clearly a subset of

anti poverty objectives. They are vital in

themselves and address key dimensions of poverty.

But do we also care about incomes of those a bit

above one dollar per day, or consumption above one

dollar per day, or about the health of poor adults,

even perhaps of adult males? Of course. Do we

care about qualitative anti-poverty objectives like

human rights and political voice? Do we care about

the broader set of country-set objectives in PRSPs?

Of course.

Finally, the IDGs are also very important

as a symbol--Paul Collier has used the word

"metaphor". They are readily accessible and

powerful, speaking to the heart as well as to the

head. They help mobilize broad support for poverty

reduction and for aid, which we all know needs all

the support it can get these days. And as we can

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 92 see by this meeting or by the IDG cards distributed

in the past by the Fund and by DFID, they can

mobilize aid donors and other partners to work more

closely together in support of country-led programs

of poverty reduction.

The DAC is presenting to its high-level

meeting next month three important and interlinked

sets of guidance for donors. They are on poverty

reduction per se, conflict prevention, and

sustainable development. The Bank and the Fund and

UNDP, as well as DAC members and in fact a number

of other people in this room, have participated in

preparing these guidelines, and we are very

grateful for this partnership.

But I want to talk just about one point

from the poverty guidelines, and this is the point

that has come up several times before, of policy

coherence.

You have in your notebooks -and I'm sure

everyone has read through their notebooks fully by

now--most of the draft poverty guidelines that will

be presented to the high-level meetings. One of

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 93 the chapters, Chapter 4, is on policy coherence.

This is a chapter that came out of the work of the

Poverty Network of the DAC. As a result of the

work done by this Poverty Network and with a very

strong push from a number of the bilateral donors,

the OECD board, called the Council, has just

launched its first systematic effort to get OECD

countries to address policy coherence for

development.

I want to be realistic about this. I

don't think that OECD agricultural markets are all

going to open up instantly to developing countries.

But I think that having OECD committees and OECD

countries considering explicitly the development

impact of all their relevant policies can help

improve decisions and can help have a positive

impact on development, and this applies country by

country and hopefully, over time, it could have a

positive impact on international negotiations.

Thus, in sum, from the OECD point of view,

we are very much in sympathy with the views that

have been expressed by several around here that we

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003 2802 (202) 546-6666 ah 94 do need to look symmetrically at what developing

countries need to do and at what OECD countries or

rich countries need to do. Whether it is the 10-10

formula, I don't know, but that is a very nice way

of putting it.

Finally, we appreciate the chance to be

here and to learn from the distinguished

representatives of developing countries and

multilateral agencies in this very, very important

joint effort.

Thanks.

MR. SANDSTROM: Thank you very much, Paul.

That was very helpful. I don't think you need your computer anymore.

I am very glad that we were able to hear

from two of the many parents or godparents of the

International Development Goals this morning.

Let's now turn to the fourth presentation,

Michael Schultz, on the DFID perspective.

Michael, please.

MR. SCHULTZ: Thank you very much.

It is a testament to the degree of

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 95 international agreement and coherence on how to

achieve the goals that much of what I was planning

to say has already been said. So I hope that will

manage to get us to the coffee break on time.

I do have a computer, and I think it

works, and maybe it is going to the screen up here,

so you don't just have to listen to my voice, but

you'll have some visual distraction at the same

time.

Anyway, while we are waiting for that, let

me start. There are just three things that I want

to talk about. First of all will be a general talk

about the International Development Goals and how

it has affected the work of DFIDi secondly, to say

a little bit about coherence in policy--again, I

think that that has already been mentioned by many

speakers; and thirdly, to say a little bit about

the importance of consistency of effort.

To start with the International

Development Goals and the impact that they have had

on DFID, as everyone probably knows, DFID became

DFID in 1997. There are just three quick points I

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 96 want to make about these and the way in which it

has affected the work of DFID.

The first one is that they are a joined-up

set--and I think this point has been made by

several other speakers. We don't regard them as

being sort of hierarchically organized or causally

related, but they are a nice set of indicators of

progress across a wide range of different aspects

of social, human, and economic development.

The second point is that they have

international legitimacy. This has been said often

enough by everyone else around this table.

And thirdly, they do characterize very

nicely what we want to see in terms of impact on

people; that it really does put people ~gain back

at the center of development. I think that is

worth dwelling on.

The way in which these have had an impact

on DFID--I'll just run quickly through the ways in

which we have documented this. We started off with

the first white paper, and I'll just talk a bit

about the two white papers we have published. The

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 97 first one asserted that poverty elimination as

expressed by the International Development Goals

would be at the center of all of our work. We then

went on to document in a little more detail how we

would achieve those goals through various target

strategy papers. The way in which that change in

DFID policy has been characterized is that prior to

having poverty at the center of all of our work, we

used to have lots of different objectives, and

poverty elimination was one of them, and we only

had one or two ways in which to deliver on these

objectives, so we were a conventional deliverer of

bilateral development assistance, mainly through

bilateral aid projects.

We have really turned it completely around

now. We now have poverty as our single objective,

but we have a very much wider range of instruments

by which we can deliver this objective, and our

view of the complexity of the processes, both

nationally and internationally, that have to be

worked on deliver poverty reduction is much more

sophisticated than it used to be.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 98 If we could go on to the next slide--

policy coherence. Again, there has been mention

made already this morning about the conference that

was called on the 26th of February this year by

Gordon Brown, our Chancellor of Exchequer and Clare

Short, our Secretary of State for International

Development, and there is a nice indication of the

extent to which the achievement of poverty

elimination worldwide and the delivery of DFID's

policy objectives are now integrated into all of

the UK Government's objectives.

There are a number of examples of how this

is working within the UK Government on trade,

whereas prior to 1997, the Department for

International Development, or the Overseas

Development Administration which it then was,

wouldn't really have had very much impact or

interaction with departments of trade, and now we

have a very close relationship with them.

Also, in order to work on conflict in

Africa, we have established joint funds, and we are

working together with the foreign office and the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 99 Ministry of Defense, recognizing that there is no

point in having one arm of your government trying

to eradicate poverty and then perhaps another bit

of the same government perhaps working against

that--not deliberately, but perhaps there is scope

for more coherent working there. So there are a

number of examples there of how that is working.

The second part of our coherence is that

the International Development Goals are now pretty

comprehensively embedded into all the work that

DFID is doing, and one example is that our Public

Service Agreement, which is the agreement that we

sign with the Treasury in order to get the funds

for our aid budget, now have the International

Development Goals embedded in them. This does not

mean that DFID is in a very close way accountable

for percentage changes in particular International

Development Goals in individual countries, but that

overall, the Treasury's assessment of our

performance is going to be on the basis that we

begin to see improvements in the International

Development Goals in the countries that are major

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 100 recipients of DFID assistance.

So it is not just--we have the

International Development Goals not just as a

general statement of intent, but we are beginning

to embed them into our thinking about resource

allocation. So the final point on this is that

more and more within our internal resource

allocation procedures, where we put our money and

where we put our people is where we think we are

going to have results and where we think we are

going to deliver quickly against these

International Development Goals.

I think we are fairly early on in that

process, and I'm sure this will be a subject of a

very lively discussion in the second part of this

meeting, because this obviously brings with it some

very uncomfortable dilemmas--should one be

essentially rewarding success, or should one be

trying to support the people who have not yet

managed to achieve that success. So there are some

difficult decisions to be made there.

Finally, just to talk a little bit about

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 101 the consistent effort that is needed to deliver

this--again, mention has been made of this--

countries come first, and Poverty Reduction

Strategies, and countries' own budgetary and

planning mechanisms shoul& be at the center of the

process, and DFID is very happy to contribute in a

major way toward countries where we think there is

a strong national, country-based ownership of

Poverty Reduction Strategies.

Secondly, I think everyone has recognized,

the DAC as well in the poverty guidelines, that we

need to streamline our procedures. We have all

seen countries where a dozen or so different donors

all in the same sector, all with slightly

conflicting and competing reporting and

accountability requirements, and posing an almost

intolerable burden on our partners, and there is

clearly a great deal of scope for getting rid of

some of the redundancy and competition and

competitiveness there.

The final point--a longer-term view. That has been ment.ioned already, but 2015 is slightly

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 102 further away than the planning horizon of most

governments and development organizations. I think

that now, DFID is trying to build into its planning

procedures a much longer-term view rather than

simply, reacting to last week's events and what we

think is going to be in the headlines next week. So

we are thinking a bit about a much longer-term

engagement with countries where we think that that

engagement is going to payoff.

I think that's about all that I want to

say at the moment. Certainly, we are now nearly 4

years into this process of building the

International Development Goals into our policy

work and allocation of resources. We haven't

gotten to the end of the road yet, but ultimately,

I think our desire is to see DFID's identity

somehow disappear to the extent that it is possible

for an individual donor's identity to disappear and

for it to become just part of a much more joined-

up, coherent, and consistent international

development effort.

Just one final point, back to coherence in

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 103 policYt and this is perhaps a challenge for the

discussions later in the day. Our Chancellor of

the Exchequer t when he called the conference on

working against child poverty at the end of

FebruarYt saw part of the purpose of that meeting

as being to join up what he saw as being the global

social t economic and political institutions t and he

described the UN institutions t the social

institution, as being in a sense the custodians or

guardians of the social development objectives t if

you like t of the IDGs 1 but the Bank was more of a

guardian of the economic development objectives,

and there are other global political institutions--

the various G-8, G-20 t G-77 arrangements. And he

wanted to see these three sort of streams of

institutions work very much more closely together.

His sense was that they tended to pursue little

bits of the International Development Goals which

they felt were particularly relevant to them. They

saw the purpose of that conference as trying to

bring together these social, economic, and

political objectives to see them as mutually

MILLER REPORTING CO., INC. 735 8th STREET, S.E~ WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 104 reinforcing rather than ones you could pick and

choose with.

I think we are beginning to see at the

start of the first year of the 21st century that

there is increasing policy convergence. The World Development Report and the Human Development

Report, although they are still separate

publications, do seem in their tone and focus to be

moving closer together. I don't know whether by

the end of this first decade of the 21st century,

we are going to see them merge entirelYi I am sure

some would argue that it is worth keeping them

separate. But I think there is a great deal of

progress there, so I think the prospects for a more

coherent and consistent effort are great.

MR. SANDSTROM: Thank you very much,

Michael, for a very helpful overview of the DFID

approach. I think it is important for all of us to

understand, because you provide very clear

leadership in this area.

Let us now break for coffee, and I am sure

that during the coffee break, some of the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 105 discussion will start. But then we should return,

I am told, by 11:10 for the discussion, and Jo

Ritzen will then guide the discussion, which I'm

sure will be lively and take us even further.

Enjoy the coffee.

MR. SWANSON: Let me make a couple of

housekeeping announcements as we break. We'd like

to come back at 11:10 so we'll have time for the

discussion.

While you are out there, if you would give

any corrections to the Participants List to the

people running the registration table, we'll get

your names, phone numbers, and email addresses

correct. So look at what you have in your binder

right now and then correct it and give it to us.

Second, there are additional materials out

there that were not available to us in time to put

into the binders. I think that Mr. Tumusiime-

Mutebile's paper is among those things out on the

table. Some other things, we are still duplicating

and will try to have available by the end of the

day for you.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 106 Finally, you will find that there are some

demonstrations in the lobby of the Bank's data

systems. Feel free to walk up, try the computers

yourself, or rely on one of our guides out there to

help you through that.

WeIll see you in 15 minutes.

[Coffee break.]

MR. RITZEN: Let's restart our session.

I would like very much to thank all of you

who came to me and to other organizers to say that

things are moving quite nicely. Indeed, someone

actually remarked that we have already reached so

much of an agreement that we might as well spend

the rest of this beautiful day outside.

Actually, I think we are in a very

interesting position that clearly, the

presentations this morning showed a very strong

convergence and a very strong commitment to making

that convergence stick with respect to countries

and ccuntries' room for maneuver essentially as the

basis for thinking; and secondly, with respect to

being far more elaborate with respect to the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 ah 107 balance in commitments on the part of countries and

also on the part of the international community and

the way it was expressed by Emmanuel, the 10-10 as

an expression of commitment and of compact; and

thirdly also with respect to moving beyond the

terms, IDG or Millennium Declaration Goals--that

should not be in the way of promoting whatever was

the original intention.

We now have a chance, I think, to

elaborate and to also be more precise, to move

beyond where we were, and where we were positioned

this morning, which we will do with two

discussants. And then, there have already been two

requests for comments, from Denise Lievesley from

UNESCO and from the International Fund for

Agricultural Development.

Let me first ask Cyril Enweze to take the

floor as a discussant. Mr. Enweze is the highly

respected Vice President of Operations at the

African Development Bank, quite often supported by

several international organizations, to lead that

position. He has been very active in his services

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 -hhhh ah 108 throughout Africa, having served in, among other

capacities, the East Africa Division, Northwest

Africa Division, West Africa Division, and Central

Africa Division of the IMF, and prior to becoming

Vice President for Operations at the African

Development Bank, Mr. Enweze was Assistant Director

of the Indian Ocean Division of the International

Monetary Fund.

Mr. Enweze was educated in economics at

the University of Nigeria, the University of

Cambridge, and Columbia University.

Mr. Enweze?

MR. ENWEZE: Thank you very much, indeed, Jozef.

First, I would like to thank the World

Bank for this unique opportunity. I think as a

background for what I have to say, if you'll permit

me, I'd like to just very quickly like to remind

all of us about just a few things that happened

this morning which I think are very, very

important, because I have a concern that it is easy

to forget some of the highlights of this morning.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 109 In a nutshell, you talked yourself, Jozef,

about the need for us to reinforce each other's

roles. You also talked about the tremendous

convergence, which was very clear, and the need for

more precision. I shall be bold later on and make

some suggestions about that.

But Nick Stern talked about the need for a

contract among ourselves and to better align our

roles to achieve the IDG targets. And I thought

Sven Sandstrom laid out the full work which is

very, very important. He reminded us that the IDG

targets actually have implications for the future--

sometimes this is not so obvious, but I think this

is very important--that the goals are

multidimensional, and that we need the right

approach, he said, for a major, concerted effort.

We must try to work out some kind of compact, he

said, and so on.

And then, Mark Malloch Brown spoke about

two important focus areas, the PRSPs and the global

monitoring system. But I was also struck about a

debate that almost surfaced this morning, which I

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 110 would hope that we can rise above, and that is the

relationship between the lOG targets and the

Millennium goals and so on and so forth.

Frankly, the more specific we are, the

more focused we are, the more concrete we are, the

better. As Professor Colin Bradford said, the lOG

targets have for me a particular beauty in that

they are very few, they are very concrete, they are

highly monitorable, and they are achievable.

Sometimes, I think we get away with a lot--we go to

these conferences, we talk in generalities, and we

never pin ourselves down. The lOG targets pin us

down, and we cannot get away from those targetsi we

must not get away from those targets.

It is in that context, therefore, that I

have a few suggestions. First of all, in my view,

there is a challenge, and let me tell you what the

challenge is. The challenge is the following. In

light of these very specific targets, how can we

around this table prevent the implementation of the

lOG targets from being an endless recital of what

we are all of us doing individually and severally.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 46-6hhh ah 111

I have listened to people say what UNICEF is doing l

what ADB is doing l what the World Bank is doing l

what UNDP is doing. That is very important l but

franklYI I think it is also important that l as

everybody keeps saying l we find a way for synergy

to work together.

Therefore l everybody talked about concrete

partnerships I but so far l in my view 1 I think we have to face up to the fact that we are paying

substantively lip service to this l and therefore l the task before this group in my view is to see how

indeed can we give meaning to this whole idea of

partnership for synergYI and what resultant

division of labor that can come out of itl and who

is going to lead in what area, and who is going to

complement whom.

One of the beauties of this particular

meeting l Jozef l is that as I look around the

tablel everybody who counts in the process insofar

as the IDG targets are concerned is here. I was

reminded by what Mark Malloch Brown said that it is

really not a question of standing outside the room

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 112 and throwing stones at the window, but to find a

way for all of us to be inclusive in this process.

If we do it that way, everybody has a role to play,

and I think this is what we have to try to do.

That is the challenge before us. And what

are the issues? Very concretely, in my view, the

issues are the following. If we are going to

measure and monitor, I think we had better, all of

us collectively, have a good idea and agreement

about what indeed it is that we are going to

measure and how.

The IDG targets have a beauty in that most

of them have been defined, but there are a few of

them that need a consensus definition by all of us

so we know what we are talking about, so that I

don't measure differently in the ADB, you don't

measure differently in the World Bank and in UNICEF

and the UN System, and so on--so that we know

exactly what we are talking about, .because we are

talking about global targets, as Mark Malloch Brown

said, global monitoring targets.

Secondly, if we are going to monitor, I

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 02 46-6666 ah 113 think we also have to get an agreement as to how we

are going to monitor these IDGs. These two points

bring me to the conclusion that we should, I hope,

before we leave here today have a clearer sense

among ourselves of who is going to do what with

whom--and I mean very specifically--because you

know, when Sven spoke this morning, he broke it

down nicely, I thought. He said let's map or

delineate exactly what is going to be done by the

donor community; let's delineate exactly what is

going to be done by the developing countries

themselves; and let's delineate what is going to be

done by the international financial institutions,

the IFls.

I think this breakdown is very useful, at

least as a starting point--it is very, very

precise--and within that context, how are we going

to, concretely and very specifically, collaborate.

Now, against the background of this

challenge and the issues, I think there is some

good news, in my view, because it is really not so

difficult. The good news is that actually, the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 114 developing countries themselves are looking at us

in the donor community among the IFIs to actually

coordinate our actions. We keep saying it, we keep

saying it, but we send different missions to all

these countries, asking the same questions on the

same issues, et cetera, et cetera, and we waste

everybody's time, we waste our own time, and we

waste their time.

So they are looking to find a way to

collaborate in order to avoid what Mark Malloch

Brown called "the old wars."

The second good news, as I said earlier,

is that quite frankly, there is tremendous

potential for everybody in this room to play a

role--all the institutions, all the countries, and

so on and so forth. Our challenge is to tap these

various comparative advantages and weld them into a

way that will enable us to accomplish these IDG

goals.

Therefore, what is my specific suggestion?

I said I was going to be very bold--and sometimes,

fools go where NGOs fear to tread. But I like to

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202 546-6666 ah 115 get results; I don't like a lot of talk, because

quite frankly, we have talked a lot--l mean, there

is so much consensus, there is hardly anything else

to say. So I have a very specific suggestion.

I think we need a task force of some sort,

and that task force will have certain terms of

reference--and if you don't think that is bold

enough, I was bold enough to jot down this morning

what I think are some of the things a task force

could be charged to look at--so that when we meet

the next time, we don't go over the same ground

again.

First of all, the task force can try to

align the lDG targets and the Millennium targets.

Frankly, I think that that is a very simple task

that can be done very quickly. I had a quick chat

with Colin at tea, and he has already done that.

So let's not waste time on that, but let's

recognize that it is there, and let's let the task

force align it for us, and then we can dispose of

it so that everybody can feel comfortable that we

are all in the same place. So that is number one.

MILLER REPORTING CO., INC. 735 8th STREET, S.B. WASHINGTON, D.C. 20003-2802 ah 116 The second thing the task force can do is

to help us in light of everybody who is here to

delineate what I call this division of labor--what

are the lead rules by various institutions based on

their comparative advantages, and what are their

complementarities. When I speak about this, I am

saying that with tremendous confidence because of

two things.

One, we have a certain relationship now

between the ADB and the World Bank where we are in

fact actually working on trying to define in the

context of the African Continent who does what, and

that relationship with the World Bank tells me

quite frankly that there is a lot that you can gain

from that kind of discussion.

Secondly, we are trying to do the same

thing with other institutions in the UN System. It

can be done. So let's get down to concrete basics.

If we don't do that, in my view, we are really

talking around the subject. So that is the second

thing the task force should do.

The third thing the task force should do

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 ~-~~~~ ah 117 is try to define standards and harmonize approaches

to measurement issues and monitoring modalities so

we are all talking about the same thing. As I said, in terms of the targets, the IDG is a

beautiful piece of work. It is very, very clear.

You cannot quarrel with the definitions and

summaries, but the monitoring modalities are not

clear; that is for us to figure out.

The fourth thing that the task force

should do in my view is--what are the resource

implications? I believe Ian Kinniburgh talked

about this. The resource implications are very

important in light of what is happening with the

ODA targets, what is happening with the soft

lending of the World Bank, the IDA, and for us in

the ADB, the ADF, and so on and so forth.

The Governor for Uganda talked about the

volatility of donor resources in light of all of

this, and what are the resource implications,

because that is not addressed in the IDGs as such.

I think e need to tackle that.

The fifth thing that I think the task

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 118 force can do is to look at the institutional

implications of these lDGs. What do I mean by

this? I think there is a very implicit issue of

capacity-building both for our various institutions

and for the countries themselves, so that if they

are going to take the lead--we talked about taking

the lead in the PRSP process and so forth--they can

take the lead. We all recognize in our various

institutions that there is a major problem of

capacity in our countries, so how can we make it

possible for these countries to take the lead in

the PRSP process, for example? So that is the

fifth thing the task force can do.

The other thing the task force can do is

to give us suggestions as to how do we deal with

these issues and other implementation issues. Now,

the list that I am giving you is not comprehensive,

but these are just some thoughts that occurred to

me listening to all the presentations this morning.

And I think that if we do this, subsequent meetings

can then focus on stock-takingi they can focus on

the balance sheet which I believe Brian talked

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 119 about, so we know where we are going and where the

deficits are; and we can do that at various points

in time and really monitor what we are doing.

Otherwise, I think we run the risk--and I am really

terrified of the prospect--that we will have

another meeting on the IDG, and we'll sit around

and hear the same kinds of presentations--that

would be terribly boring.

Thank you very much indeed.

MR. RITZEN: Thank you so much. Up to

now, nothing has been boring, and in that sense, I

think you are very right in making sure that also

the next meeting will be more precise and bring us

further along. I think you gave us a lot of

stimulation.

I would now like to ask Mats Karlsson to

give us his comments and enter into the arena,

giving us room for discussion. Mats Karlsson came

only recently to the Bank. He has been Vice

President now for one and a half years, as Vice

President for External Affairs. But his presence

here is very much related to his other job, which

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 120 is Vice President for United Nations Affairs, where

we have taken very seriously the linkage with other

international agencies.

Before Mats came to the Bank, he was the

Swedish State Secretary for Development Cooperation

and one of tee persons who was very much involied

in the document, "Shaping the 21st Century: The

Contribution of Development Cooperation," at OECD,

which very much gave rise to the thinking around an

international compact on International Development

Goals.

I mentioned to Mats that it is always a

good sign if so may different partners take credit

for being part of the furthering of something,

because that means that the baby is growing well.

I now go to Mats.

MR. KARLSSON: Thanks, Jo.

Let me make five points to get this

discussion going between us.

I believe very strongly in the Development

Goals, but my first two points are caveats. I

believe that if we don't respond to them, we may

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 121 well not get the Development Goals to realize the

opportunity inherent in them.

The first is that we don't miss out on the

major progress made in the past couple of years of

deepening our understanding of poverty and again

fall into the fallacies of averages, averages at

global or even at national level, that we

understand that what goes on inside communities,

inside households, power relationships, men and

women, different strategy in societies--this is not

just in order to enable us to monitor more truly

what goes on for poor people, but it is precisely

that we must not lose our understanding of the real

dynamics of what it is that ultimately beats

poverty.

We have made progress in this; let's keep

that very much at the focus of our attention.

The second point or the second caveat is

that the Development Goals will only work to align

our efforts if we respect country leadership. Of

course, that point has been made repeatedly, but it

is an important one, and I think in particular,

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 122 Governor Mutebile made the point very well this

morning--there are hard choices to be made. And we

all know that governments live in a political

reality, and the political economy they face in

making these hard choices must be made an integral

part of the understanding. No mechanistic

application of the Development Goals therefore will

deliver.

With these two caveats, I believe the IDGs

offer tremendous opportunity. Let me, then, as my

third point again focus--and forgive me for

repeating what was said, but I think it is so

important in legitimizing our effort--emphasize the

Millennium Declaration and the political legitimacy

coming from the heads of state and government from

allover the world.

The problem in the past, of course, has

been that many agreements have been made, but they

do require different parts of government to align,

and that has been one of the most problematic

thresholds both at developing country level and in

developed countries to cross to get the thing done.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 . (202) 546-6666 ah 123 So the idea of a compact that was placed

here squarely on the table this morning is very

important. Of course, that idea has been around as

long as we have had a North-South dialogue, and we

are seeing it inherent in a lot of the practical

progress being made from the end of the eighties,

when the Special Program of Assistance really

changed the way we coordinated work in support of

the poorest countries. That same understanding led

eventually to the HIPC initiative, to its

radicalization, and now, of course, the PRSP

process that, as Mark Malloch Brown said this

morning, is the centerpiece of coordinated support.

The need for a compact is clearly also

validated in the analysis that exists on what makes

aid work. The "Assessing Aid" research that came

out a few years ago, and a sequel coming out in

just a couple of weeks, "Aid and Reform in Africa,"

clearly show that unless that compact between good

policy at country level and outside support is in

place, the efforts by us all won't be efficient.

And the compact was very much at the core

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 202 546-6666 ah 124 of the thinking in the DAC circle of donors back in

1996. I re-read it over the weekend, and the

compact argument is squarely there. Many thing of

that report as a report that again brought out the

DAC goals. Well, of course, first of all, there

never were DAC goals. They were UN goals, and in

the discussion, then, explicitly chosen to be the

UN goals from the past. So that was a misnomer

from beginning to end calling them the DAC goals.

But perhaps equally interesting is that

the DAC report, as Brian Hammond reflected, had two

chapters--one on the output goals, but also a

second chapter on how one should work to achieve

them, and bringing up the best modern thinking on

what the compact means. And perhaps, rereading it,

it is all the more disconcerting to reflect now,

some 5 years later, on the lack of progress in

particular on the developed country side of that

compact. Aid levels continued to fall after that

report. Progress on coherence and particularly on

trade has been very difficult to achieve. The one

area where there has been some progress is

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 125 regarding coordination at country level; but again,

as Governor Mutebile mentioned, we are very, very

far from responding to developing countries'

legitimate demands on their donors to be much more

responsive in reducing the cost of doing business

with them.

Nevertheless the ideas are there to be

built on, and I really think that we should take

the Millennium Declaration now as the political

document that embodies the compact and build on it

going forward, because nothing can beat that in

terms of political strength.

The fourth point, then, is for us in the

multilateral system obviously to align. "Old wars" were mentioned by Mr. Enweze, picking up on that

from this morning's discussion. That must be made a

part of history. We must take this opportunity to

show to our financiers--we in the multilateral

system, the UN, the World Bank, the MDBs, the IMF,

and I would also make an argument about the World

Trade Organization--that we can function as a truly

functional, accountable, benign multilateral

MILLER REPORTING CO., INC. 735 Bth STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 126 system. We must in this area of nervousness around

what globalization means show ourselves to be a

locus of trust and someone who can deliver.

And if we are to deliver, we must, one, of

course, internalize this--and that is particularly

what we are doing; we must secondly continue,

whenever we meet in a multilateral context, to

always bring it one step forward and not repeat

past discussions. We will have a key stage in

Mexico in March in a year's time in financing when

the World Conference for Financing for Development

takes place. That will be very important.

But I see three particular tasks that go

very much along your lines, Mr. Enweze, of a task

force. They are, first of all, to express again

clearly, beyond the acronyms of UNDAFs and CDFs and

PRSPs, et cetera, what are the common guiding

principles at country level--what is good

development practice. I know that in the OECD,

there has been a lot of good work on this, and in

every institution, and the developing countries are

demanding it from us. Let's express those common

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 202 546-66 6 ah 127 guiding principles.

Secondly, obviously, is the monitoring

work--we talked about that.

Thirdly, could we not express ourselves in

terms of a shared framework of accountability? I

thought that came through very clearly this

morning. Mark said it--mutual responsibilities,

but clear accountabilities; the synergy, you said,

Mr. Enweze. This is the commitment that we from

the World Bank certainly bring to the table, and I

think we can deliver on that, and we must show that

we have delivered on it. On that basis, I think we

can expand the envelope of our finance as a

multilateral system, not just marginally, but

substantially, which we know is part of what is

necessary to achieve the Development Goals.

The last point, fifthly, are we ready to

engage as well on the supporting global agenda.

These poverty goals are what we are about as

multilateral institutions. But we know in an

increasingly interdependent world that you cannot

deliver on poverty unless you help create the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 128 institutions that support an enabling environment,

if you will, globally.

These issues, the emerging issues of

global public policy, global public goods,

coherence in governments' approach to these issues

as multilaterals we have a role to play in shaping

that agenda and responding to it.

There is a dialectic--unless you deliver

on poverty, I don't believe the world as a whole

can manage the urgent global issues--but the other

way around, we won't deliver on the urgent global

issues that truly also impact developed countries

unless we make real progress on poverty. So I

think that that dialectic is very much at the core

of our institutional choices. Again, the

Millennium Declaration set us on course, but we

have a lot of work--we know it--and the Secretary-

General will be providing a road map. But are we

ready to again look at the whole multilateral

system as a system responding to each perhaps as

clusters of institutions around specific issues of

great urgency?

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 129 Thank you.

MR. RITZEN: Thank you so much, Mats, for

underlining the need for such a shared framework

and also for making progress toward what OECD, I

thought, so nicely outlined--almost a checklist of

policy coherence--what Paul Isenman called a major

challenge, whether indeed we could go in that

direction.

I would very much like to invite comments

from the floor and would then like to give each of

the presenters about 3 minutes toward the end to

reflect on what has been put on the table.

1/11 first go to Denise Lievesley and then

to IFAD, World Food Programme, WHO--sorry for using

the institutional affiliations as your name--UNFPA I

UNDP, Mr. Zongo l Germany. I think it's a good idea

if you just put your name plates in a vertical

position so that I can see them. That gives us a nice list to start with.

Ms. LievesleYI please, who is Director of

UNESCO Institute of Statistics.

REPRESENTATIVE OF UNESCO: Thank you very

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202 546-6666 ah 130 much.

I'd like to begin by thanking the

organizers very much for inviting me to this

meeting and to apologize for the fact that I have

to catch an international flight this evening, so

I'll be having to leave rather earlier, I am

afraid, and won't be here tomorrow.

The first thing I want to do is to

underline UNESCO's commitment to the IDGs. We have

internally been looking at how we can bring our

statistical systems into coherence with the work on

the IDGs.

I very much welcome this meeting as a

recognition of the critical value of data to inform

us in the worldwide fight against poverty and in

support of countries in their efforts to achieve

sustainable and equitable development.

We also recognize the importance of having

a tight list of indicators. The focus is

absolutely critical, as a number of people have

said. I think there does need to be work on

reconciling the differences, but as Brian Hammond

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 131

underlined t that should not take a lot of time and

effort. It is really a straightforward activity

that we need to do.

So what we want t obviouslYt is concrete

indicators that we are measuring t and in the same

waYt harmonized indicators of cohesion of aims.

That is also important for two other

reasons which haventt been mentioned. One is the

burden upon countries in terms of statistical

reporting t and related to that t the concerns that

there have been in terms of data duplication by the

different international agencies. And I think the

international agencies are very much committed to

eliminating turf battles in terms of data

collection and working together to share data.

Having said all of that, I think I would

like to just pick up on a point that was made by

Mr. Karlsson in a rather different way. That is

that I think we have to recognize that the IDGs

inevitably are the lowest common denominator of

statistics t because one of the things that drives

us is being able to have comparable data across

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 132 different countries of the world. And we are

currently in a situation where, in some of our

areas--I would not particularly in education

statistics--we have weak statistical systems in

many countries, and therefore, the data that we

would like to collect in order to determine whether

or not we are meeting the goals that have been set

are not the ones we are able to collect. So

although I am very committed to having this set of

indicators, I think that we do need to have a

system of reviewing it; I think we do need to

enable countries to develop statistically and to

improve the set of indicators.

So I am not talking about changing the

goalpost; I am saying that we have inadequate

measures of tee goals, and we need to make

improvements.

The UN Statistical Commission at their

meeting last week I think recognized this. They

have set up a group called Friends of the Chair of

the UN Statistical Commission to look at the whole

issue of how we try to improve the quality of the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 133 development indicators within a framework of

addressing response burden and problems of weak

statistical systems within countries.

I think it was Mr. Kinniburgh who

mentioned the need for the indicators also to feed

into an assessment of the resources needed to

achieve them. I am very pleased that we believe

around the table that these goals are achievable.

I wake up in a panic at night about the extent to

which they are achievable. Universal primary

education for the year 2015 sounds an awfully long

way off, but if we are to achieve it, it means that

we have to get children into school in 2007, and to

get children into school in 2007 means that we have

to have the teachers being trained now, which means

that we need to have had the secondary education

before now in order to achieve this. And we are

doing this in an environment where, in some countries, due to the problems of AIDS, teachers

are dying at twice the rate they are being

recruited. So I just wonder how we are going to do

this--and it is not just financial resources; it is

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 134 also capacity of countries, absorption capacity.

So I think there is a really vital role

for us to play alongside the goals in terms of

translating them into what this means in terms of

resources.

So I would say that just reporting on the

indicators is not enough. That is not what

monitoring is, in my sense. Monitoring actually

has to have interim targets. It has to have

feedback loops. It has to have systems of flagging

when we are not meeting the targets. And I think

it is important that this meeting take on board the

process of how we are going to do that.

The other point that I wanted to make is

that I am very pleased that statistics is rising up

the political agenda. I think that that is really

very valuable. Statistics to some extent is coming

out of a very dark, bleak period. I would like to

recognize in particular the work of DFID in this

area.

And statistics are important in terms of

advocacy, and they are also important in terms of

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 135 monitoring. But we must not forget that statistics

are also important in terms of developing the

policies in the first place, and we need much

richer data sources in order to develop and inform

the policies in the first place.

In that respect, I think we have to think

of the indicators as being the top layer of a

statistical system that enables the countries to

look at, say, inequalities within the countries to

determine the extent to which they can develop

policies that enable them to be on target for

meeting the goals.

I would like to put in a plea at this

point for the need for a more coherent effort in

the area of statistical capacity-building in order

to help countries not only to collect the data that

is needed for policymaking, but also to get better

dialogue between users and producers of statistics

at the country level to ensure that the statistics

are being used for policy purposes within the

countries.

So to sum up what I am actually arguing

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 136 for, it is, yes, commitment to the IDGs, very, very

much supportive of them, but that they should be

seen within a broader statistical framework.

Thank you.

MR. RITZEN: Thank you very much.

As Chairman of the Governing Board of the

UNESCO Institute of Statistics, of course, I share

everything which was just mentioned.

IFAD, please.

REPRESENTATIVE OF IFAD: Mr. Chairman, my

name is Antiqur Rahman, and I am from IFAD.

I thank you very much for inviting IFAD to

this very valuable meeting. I and my colleagues

who corne here agree, and IFAD agrees, as our

colleagues in UNESCO, with the International

Development Goals. We fully share these goals, and

in our organizations, we work toward achieving

those goals by 2015 and we would like to see how we

can achieve them.

I would like to make one or two comments--

in fact, I have six or seven points, but I will

collapse them into a few comments.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 202 6- ah 137 First, I would not that many of tee

comments made by Mr. Mats Karlsson were very close

to our comments, and we fully share and agree with

his comments.

Having said that, I fully agree with the

point that he made that we need to deepen our

understanding of poverty. We have come a long way

in understanding how poverty works, what poverty

does, what has to be done to reduce poverty, but we

need to deepen these understandings.

In the process, we also have to unlearn a

few things, and it is on this unlearning issue,

some of the things that we have to unlearn and some

of the things that we have to deepen that I would

like to make some comments.

Before going to that, first, on these

International Development Goals of 2015, while we

agree with these goals, we also agree with the

point made that these are a political agenda, these

are rallying points to mobilize world attention,

world resources, synergy, to achieve these goals.

But then, we have to look beyond these.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 138 It is not in an effort to break this into a laundry

list, but in a way it is to break these up into

more realistic targets which are understood by the

various partners involved in the process--by the

countries, by financial institutions, by

development agencies, and most importantly, Mr.

Chairman, by the poor themselves, who are the main

partners in this process.

It is from this point of view that I would

like to make the first point, that is, in our

process, we have to take seriously the partnerships

of the poor. We have to go beyond the countries,

and we have to work with the poor and make the poor

the focal point for our development efforts--and

not only just in terms of paper but in ~erms of

understanding what are their characteristics and

their aspirations and desires.

From this point of view, I would just like

to mention--and it is not a point to publicize IFAD

or this poverty report--we have just brought out

this Rural Poverty Report, and when we talk about

the poor, we have to understand that a large

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 139 majority of the poor are the rural poor; and if we

look to the future, if we have to reduce poverty by

half, the proportion of the poor living on below

one dollar a day, then we have to understanding

that a large majority of them will have to be rural

poor, and we have to understand that we will have

to focus on living conditions and the

sustainability of those livelihoods, which includes

agriculture, which includes the rural sector, and

which includes food production.

Saying this, Mr. Chairman, we have to

understanding also that the rural poor have

enormous diversity and are not just

agriculturalists or just farmers--they are non-farm

workers, they are livestock operators,

pastoralists. We have to understand their

diversity and work with a wide variety of these

things.

What does it mean in terms of operational

terms? When we talk about development targets, we

have to understand various indicators and targets

in relation to these diverse categories of the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 202 546-6666 ah 140 poor. I will not go into the details, but we can

in the subsequent discussion go into the details of

what sort of targets and different categories we

are talking about.

The third point, Mr. Chairman, is the

point that has been mentioned that we need to have

more resource to achieve these. We need to have

more official development assistance, more

commitments of donor countries. But I think it is

more than that, and that is a point that we would

like to mention, and we have mentioned it in our

report also, that we have to talk about more

resources going to the poor themselves, and these

resources are not just official development

assistance but are more of country resources, more

of private sector resource, more of development

assistance. It is also, and very importantly, the

efficiency of the use of resources that one has to

focus on. And apparently, in the past, many of

these resources have not been used efficiently by

the countries, by the poor themselves, because of

lack of environment and lack of institutions.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202} 546-6666 ah 141 Fourthly, Mr. Chairman, when you talk

about efficiency of resource use, it is a question

of whether resources should be put in agriculture

or put in non-farm sectors, and whether non-farm

use of resources will give high returns. There is

a lot of discussion on this, but we like to believe

that if we put investments in agriculture, these

will be more efficient, and from the point of view

of poverty reduction, both direct and indirect

returns will be higher in the longer run. Again,

we can elaborate on this, but because of the time

shortage, we will not, but we can elaborate on what

we mean by this more efficient use of resources if

we invest in agriculture.

On the question of governance, we have to

understand that we are not talking only about

governance at the country level, governance at the

ministry of finance or agriculture or ministry of

rural development--we are going much beyond that.

We are talking about governance from the consumer

side, from the poor themselves, their partnership,

their participation, their rights, their

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 142 aspirations, and their capabilities. From this

perspective, if we talk about International

Development Goals, we have to talk about the

training, the capacity creation, the building of

their capacities, so we are talking about a whole

range of issues which are different and which go

beyond the International Development Goals in that

sense.

I will stop here, Mr. Chairman, but later

on, we will come back to some of these issues.

Thank you.

MR. RITZEN: Thank you very much, Mr.

Rahman.

Let me now turn to Mr. Namanga Ngongi,

Deputy Executive Director of the World Food

Programme.

REPRESENTATIVE OF WORLD FOOD PROGRAMME:

Thank you, Mr. Chairman. I have just a few points.

The statements this morning have been very

enlightening and very useful, and I appreciate very

much the chance to be here.

I am particularly happy to hear from Mr.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003 2802 (202) 546-6666 ah 143 Enweze that progress has already been made to try

to realign the International Development Goals with

the Millennium Goals.

The particular concern of the World Food

Programme is not just this year, but last year, I

took part in the Paris Meeting on "The Better World

for All," and if we want to keep a few focused

targets or goals, we cannot really ignore the

nutrition and food aspect. It is just not

possible. Some of the things that we are trying to

measure, especially if we measure infant mortality

and stunting and the rest, are actually a direct

result of nutrition programs.

So I do not have the formula for it, and

if it has been aligned already, so much the better.

But I think that that is an area that we cannot

ignore. The fact that the World Food Summit came

last does not mean that the important goals should

not be reflected.

My second point is to thank my colleague

from IFAD for raising the point, because the

discussion was very much focused on development and

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 144 the Development Goals. If the emphasis is on

poverty and poverty reduction l maybe we need to

slant the discussion a little bit differently. We

have to know who are the poor l where they are l why

they are poor l why they are blocked from

participation in all of the opportunities which are

available at the national level.

Most of the development in most of our

countries will not be carried out by government or

by the international financial institutions l by the

World Bank or the UN System. It will be people

themselves l being able to identify and take

advantage of opportunities arising in their own

countries.

If we do not know what is blocking people

from taking part in their own development efforts

in their own countries l it is very difficult for us

to obtain the objective of poverty reduction. We

may attain the objective of development l of overall

development, but the poor will probably still be

there, especially the hard-core poor.

As my colleague from IFAD said, if we are

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 145 talking about poverty, clearly, we have to be

talking about rural areas. Unfortunately, a lot of

the discussions which go on on development ignore

the rural areas and therefore ignore the problem of

poverty. And if we are talking about rural areas,

although not all of them are in agriculture, a

large majority of them are in agriculture. And if

we are not investing--actually, we are de-

investing--in agriculture, how will we be able to

overcome the problems of the poor and of poverty in

many of the countries?

So I think that some of these issues are a

little bit contradictory. I think the overall

objective in itself is good, but really, when it

comes--the seminar itself says IIfrom consensus to

ll action - if we are going to go to action, we have

to clearly identify a little bit more precisely

what we need to do rather than just saying again

what we have all agreed on.

Clearly, the targets are very important,

but even more important is what we need to do to be

able to attain those targets, what actions we need

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 202 546-6666 ah 146 to put in place so that we can attain those targets

rather than the targets being of themselves the

ultimate objective. The ultimate objective is to

get human beings who are able to stand on their own

feet and earn more than one dollar a day, and if

they don't earn more than one dollar a day, at

least they are living slightly better by improving

their own condition.

So I would suggest also that we identify,

as we have identified from the national level, what

needs to be done in a country for a country to be

able to take leadership, to lead its own

development process, and we should also identify

those factors which block the individual. Some of

these have been mentioned, such as education. Some

of it is also health. And probably one of the most

critical is nutrition, and that is very much

missing in the discussion.

So I am just saying that although we all

agree on all of these goals, I think that if we are

passing to action, we have to now go into the areas

which actually block individuals from being able to

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 ah 147 improve their own lots in life.

Thank you, Mr. Chairman.

MR. RITZEN: Thank you so much.

We are corning now to what Emmanuel put on

the table earlier, that is, the area of hard budget

constraints--not this time in money, but in time.

So I think we have only the possibility for two

additional contributions, and I would very much

like to contribute to the mixture, and I hope very

much that those from the international

organizations will bear with me. I think they will

have ample chance to bring up their points of view

in the discussion this afternoon on "Sharing

Experience and Building Knowledge," because I think

there, many of the points will definitely corne up.

I would very much like to listen now to

Mr. Zongo and also, if Germany could be short in

its presentation--but that is also not a sound from

the table in the sense of the donor community.

Mr. Zongo, please.

REPRESENTATIVE OF BURKINA FASO: Thank

you, Mr. Chairman. My name is Mr. Zongo, and Mr.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 148 Chairman, if you will allow me, I will speak in

French. I think it is possible.

MR. RITZEN: Yes, please.

REPRESENTATIVE OF BURKINA FASO

[INTERPRETED FROM FRENCH] : Thank you very much,

Mr. Chairman.

I think that after everything that has

been said, we have had excellent presentations,

excellent comments. It is the importance of such

big meetings where we see that everybody speaks

well, and we all agree on everything.

I wanted to add two or three things.

First, all that we have just heard shows that we

agree on one thing--that is to say that poverty is

a threat for everybody. At the same time, we all

agree to say that international goals seem quite

relevant.

But we have a problem. When we look at

these goals, we realize that there is a certain

number of aspects when you ask the poor about the

image of the poor, how the poor see their poverty.

I do not know if you have ever done it--go and ask

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 149 the poor, I1What is poverty for you? What does it look like to yoU?11

I think that in the different surveys that

are carried out, you would see that people will

tell you that poverty is the absence of having

anything. It is not because I have no money that I

am poor. I am poor because I have no access to

basic services--I can't go to school, I can't take

care of my health.

Of course, all of this is in the 2015

goals--but what is lacking in these goals is the

political aspects of poverty, and I think the

political aspects of poverty are important. What

do we say about human rights? How can we translate

human rights into goals? What do we do about

humiliation? What can we do about that in the

goals, because the political aspects mean exclusion

and marginalization of individuals.

So I agree with what has been said, but I

will add two things. What should we do to reduce

poverty? Mr. Mutebile was a good example, and I

think everybody else, of course, also made good

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 150 speeches, but in our countries, the real problem is

the question of capacity. Development can only be

done by the country itself.

Everybody likes to say that there should

be ownership, national ownership, that we should be

the pilot. How do you want us to be the pilot if

we don't have all of the elements to be able to

pilot? Therefore, we need more capacity.

If you talk about capacity, then you have

to see what are the priorities. Unfortunately,

everything is a priority in our countries. But

what are the real priorities--who decides?

And--everybody said it, UNDP and all the

others--all of the PRSPs and the other strategies

are a good thing in themselves. It is good,

because these are national processes that allow the

population themselves or that allow the social

society to participate. Therefore, the leaders

have to listen to the people.

But something should be added on the

PRSPs. The PRSPs have too narrow a vision.

Poverty is not a national affair; it is a regional

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 151 affair. There are many things that are the

elements of poverty. When you look at the social

sectors, how can you fight against AIDS if you do

not widen it to the regional framework?

So these are also priority aspects.

National priority, of course, but regional priority

also.

Mr. Chairman, the second problem is how do

we measure progress; how do we do that today? We

are asked, well, where are you, how far have you

gone. Unfortunately, Mr. Chairman, we have our own

indicators. Each donor has different indicators--

who measures what, who measures whom. This is the

problem. We should all agree on indicators and see

how we measure. The measure indicators must be how

to measure impact; how can we see that public

policies have a real impact on people's daily

lives.

That is why I think that the problem of

coordination should be a priority. Unfortunately

this morning, we have seen that every institution

says the same thing--I agree, I do this, I do that.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 152 In our consensus, we should understand that the

institutions' actions must all fall into the

national priorities of the countries. And as he

said, we shouldn't say, well, I have CDF, I have

PRSP, I have this and that and the other--no. We

should have a national framework, and each

institution according to its competence helps us,

because we don't all have the same competence.

Each institution will help a different priority

field of the government.

So I would like it if all of us together

could decide on priorities and on indicators. We

should see how we can better spend public moneys.

What other progress do we want to measure?

If you look at education, for instance, if you look

at health, whose progress are we measuring? Are we

measuring the progress of the government? In that

case, we need more transparency. We have to give

the government a budgetary framework that is

transparent. We have talked a lot about

transparency.

Secondly, we have to see to it that at the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 153 evaluation stage, we should have a consensus. We

don't want UNDP to come and see us and evaluate,

and then the World Bank has an evaluation mission.

If we multiply all of these missions by 10, each

mission, we have to receive, we have to send

people, and we are wasting time. We have to

harmonize, we have to have joint evaluations,

including the beneficiaries, because our final aim

is to see to it that the beneficiary sees that its

poverty has been reduced. The beneficiary has to

feel less poor, less marginalized.

I am going to conclude, because I will

come back later and speak during the workshops.

It is true that resource mobilization is

important, but it is the coordinated .mobilization

of resources that is the most important. We need

resources, of course, but they have to be in a

coordinated framework.

A simple example--take education. If you

come to our countries, you are going to have a lot

of donors who agree with education, but each tells

me, I am going to build a school. If you tell him

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 154 that you also have to build housing for the

teachers, he will say, oh, no, that's not my

problem--I am not building any housing for the

teachers.

And if you also tell him, okay, if you

build us a school, there is no road to get to the

school; or I need a bridge so the kids can go from

the village to the school--he will tell you, well,

I build schools, but I can't build bridges.

Well, then, how do you want us to manage?

How do you want us to have an education that can

reach out or objectives if everybody says, well, I

can only do this--see somebody else for the rest.

This is not the way to work. Of course,

let's mobilize resources, but in a coordinated

framework, as I said.

Finally, Mr. Chairman, I am convinced that

the consensus that we see here is a consensus to

strengthen statistics at a national level so that

when we talk about progress, we really know what we

are talking about, because very often the

statistics do not work. Therefore, we are really

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 155 wondering if the figures correspond to reality.

These are the few elements that I wanted

to propose, and excuse me for having spoken French,

obliging you to wear these helmets.

Thank you very much.

MR. RITZEN [INTERPRETED FROM FRENCH]

Thank you, Mr. Zongo, especially for having

underlined the necessity for having a common

framework and'also for having deeper coordination.

I would like to invite Mr. Klasen from

Germany to speak now.

REPRESENTATIVE OF GERMANY [Mr. Klasen] I

will switch back to English, if you will allow me.

My name is Stefan Klasen, and I was asked

to represent the German Ministry of Development Cooperation.

I just want to make three quick points.

One is on the role of the International Development

Goals, and I think some have mentioned it, but I

think there is still a little bit of lack of

clarity.

I think the main role as far as I can see

MILLER REPORTING CO., INC. 735 8th STREET, S,E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 156 it is to gain political support for the development

enterprise and globalized resources. In that

sense, for example, in Germany, I think the

Millennium Summit has been extremely important

because at that Summit, the Prime Minister declared

that he will present a strategy that will

comprehensively address the International

Development Goals, and the strategy will be

launched next month. That is something that would

not have happened without the Millennium Summit,

because then, there would only have been perhaps a

strategy from the Ministry of Development

Cooperation but not one that goes across all of

government and leads to the policy creation that is

so critically necessary to move on this.

So I think that that is one important

thing, to get political support within government

and get it from the top so that strategies are

developed and implemented.

The second thing is that I think it is

also important to hold the First World and the

multilateral community accountable to something. I

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202 546-6666 ah 157 think that that is another important aim. At the

same time, clearly, when it comes from this global

level to the national level, they have to be

operationalized. So I think that at the national

level, another process that is informed from

International Development Goals but is not equal to

the International Development Goals has to take

place and has to be driven by the countries and

supported by multilateral organizations and donors,

but how to operationalize those global goals into

what is feasible, possible, and measurable at the

national level. I think we have not talked enough

about how this translation of the global goals to

national goals can take place, and that is

certainly something that one might want to focus

the discussion on later on. So there is the whole

issue of operationalizing.

The second point I wanted to make is that

there is some tension that Sven Sandstrom has

mentioned at the global level in terms of

priorities. There are several ways that one can

reduce poverty. One is to focus all efforts on

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 158 India and China and basically say that if you

really succeed there, then we will have reached our

global goals, because that is where most of the

people are and also most of the poor people are,

and therefore, if they have massive reductions in

poverty and massive expansions in education, we

will have done well on some of the goals,

obviously, not all of them.

On the other hand, there are some

countries where it will be easier, and there are

some countries where it will be harder to achieve

those goals.

Now, in effect, this means that hard

choices will have to be made, and it is not clear

enough yet where the international and the

multilateral institutions stand on these hard

choices of saying are we going to concentrate on

the cases where it is going to be difficult, are we

going to concentrate on the cases where we think

there has been a lot of progress, and we want to

support that progress, or are we going to

concentrate on the cases where the most poor people

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 159 are. Those are some difficult issues and choices,

and maybe it is important to hear something about

what the thinking is on those difficult choices.

The last point I want to make is on this

nutrition discussion which has been going on, and I

now I am really speaking more as an academic than a

representative of the government.

While it is extremely important to have

nutrition as part of the goals, unfortunately, at

the moment, we don't have a commonly-agreed

standard of easily measurable and monitorable

goals. We have an FAO approach to measuring under-

nutrition; we have a UNICEF/WHO approach to

measuring under-nutrition, which is focused on

anthropometrics of children, both of which are

subject to considerable criticism, and do not yield

the same answers--in fact, they yield very

different answers on where under-nutrition is

worst. Therefore, I think it is quite difficult to

incorporate such a goal at this stage before one

has not resolved those issues.

So I think that yes, in principle, it is

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 160 very important; in practice, I think there is a

serious issue here which does not exist to the same

extent, for example, with enrollments or with the

other goals. So I think I would support that at

the moment it not be included until these kinds of

issues have been resolved.

Thank you.

MR. RITZEN: Thank you very much.

We are now reaching the time when we

should go and have lunch. I think people have been

looking forward to having a break, which also means

that I really apologize to the speakers that they

are not now in a position to bring their

reflections to the table. But there will be ample

room for bringing feedback from this discussion to

the table in the sharing of country experiences and

in general sharing experiences.

I think it is impossible to come to a

conclusion, but one of the points which was brought

up I think very much in this discussion was the

point of Mr. Enweze--let's start to become more and

more concrete in terms of processes and in terms of

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 161 content with respect to follow-up.

I think one point which was very strongly

stressed was, on the one hand, that the country

will definitely be the unit where there is room for

maneuver. That is where governments can do things,

and governments are looking forward to working on

the International Development Goals in this

international compact.

At the same time, it will be very

important to move ahead in a broader world

framework, and there, the need for developing that

framework is very important.

One of the specific points on which I

wouldn't want to come to a conclusion but which I

would very much want to suggest is that with

respect to the statistics, there seems to be a

strong need for collaboration so that not all

parties go on with their own ways of measurement.

Also, I think this does not do justice to the need

to be frugal and to use our scarce resources well.

There, I think that the so-called Paris 21, the

partnership in statistics for development in the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 162 21st century, might be a useful vehicle. That

partnership has already taken on some of the tasks,

but I think it might be worthwhile to see whether

we could come to some understanding among the

partners here, that we also would entrust them on a

sharp time line, and maybe also with different

steps, to come up with a strong statistical

framework on which there is a general agreement and

that we will no longer have diverging ways in the

collection of statistics but also ways which very

much converge.

That would be my message for lunch first,

but I realize that during lunch, we will have the

privilege of a presentation by Mr. Rehman Sobhan,

and I will introduce him when we have lunch.

Thank you so much.

MR. SWANSON: Before you get up, just some

housekeeping announcements.

Lunch will be in the Bank's East Dining

Room on the MC-1 level. You can get it to it from

this elevator bank outside.

I must apologize to many of my colleagues

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 163 from the Bank who have joined us here for the

discussion this morning. We are only able to offer

lunch to our visitors and to the Bank staff who

have been designated as speakers or chairs or

participants in the meeting. The rest of you will

have the chance to recover on your own. I do apologize.

We would like everybody to be back here

promptly at 2:00, and Shanta Devarajan at that

point will give us our charge for the ensuing

discussion this afternoon, when we will break up

into three groups.

So we'll meet back here at 2:00 in order

to do that, and if we can make it sharply at 2:00,

we'll get the afternoon off on schedule.

Thanks very much.

MR. RITZEN: And a big hand for the

speakers, the discussants, and all those who

contributed.

[Applause.]

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 164 AFTERNOON SESSION

MR. RITZEN: Friends and colleagues,

welcome to this afternoon session.

I would now very much like to move

directly to Shant a Devarajan and ask him to give us

introduction for the breakout groups.

MR. DEVARAJAN: Thanks very much, Jo.

As Jo mentioned, we start now with the

breakout groups. I was a little concerned earlier,

given all the consensus and solidarity that we have

had so far on the International Development Goals,

whether it was a good idea to break out into

smaller groups; but then we learned from Ian

Kinniburgh this morning that even the world leaders

had to break out into three or four groups in order

to reach the Millennium Goals. So I think building

on their success, we can have a very productive

exchange in our smaller groups.

Let me just say a few things about the

theme. I think this is in many ways where the

rubber hits the road. We have had a very good

discussion about the International Development

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 165 Goals t their rationale t if you like t and some of

the consequences t but the real question is how are

we going to get therei what is the process or the

relationship between public action and progress

toward the International Development Goals.

That is what I hope you will be discussing

in your breakout groups this afternoon. In

particular as the questions you laid out mentioned t we would like you to discuss two aspects of the

IDGs. One is what are appropriate intermediate

indicators--this is another theme which came up

several times already this morningi and secondlYt

given those intermediate indicators t what do we

know about public action and those intermediate

indicators.

By "public action t " again, I want to emphasize and echo the theme that Emmanuel

Tumusiime mentioned earlier this morning. We should

be careful not to wrongly infer that public action

means spending more money. The hard budget

constraint is with us and will be with us forever.

So the question about public action has to be at

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 166 least about prioritization, about different inputs

that can go into achieving the International

Development Goals.

A second theme about public action that

has been echoed by several people this morning is

the whole role of institutions and the incentives

for the efficient delivery of public services. A

lot of the International Development Goals have to

do with l for any given amount of money allocated

toward l say, health care or education , how do you

get productive health and education outcomes at the

other end.

So keeping in mind the hard budget

constraint , I hope that we will be able to discuss

and exchange ideas on both the prioriti~ation of

expenditures and other public actions as well as

the improvement of service delivery.

Let me add a third theme that has come up

in the discussion this morning, and we didn't plan

on it in this write-up, and that is that people

have been talking about how to capitalize on this

political consensus that has emerged around the

MILLER REPORTING CO., INC. 735 8th STREET, 8.E. WASHINGTON, D.C. 20003-2802 {2021 546-6666 ah 167 International Development Goals. And I think that

to some extent, that consensus is pointing in the

direction of how to mobilize more resources for

foreign aid. But another aspect of that is how to

mobilize more resources and more action toward the

acquisition of knowledge.

I think we all know that the binding

constraint in development has often been knowledge l

knowledge about what processes work and what

processes do not work. We might have--and many of

us have been struggling to make inroads in that

acquisition process--we might have the possibility

here l given this unprecedented consensus l to also be able to build a momentum for a movement to

acquire the knowledge, exchange the knowledge, make

the knowledge accessible for improving the outcomes

of public action. So that is something else to

think about as we proceed.

Let me now finally say some things about

the logistics. We will be split up into three

sessions l and againl I want to remind everybody

that the goals are all interdependent, so this

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 168 doesn't mean we think that we can cleanly separate

the goals into three groups, but just like the

world leaders, we have to break people up into

groups.

The three sessions will cover poverty,

which is essentially the first goal; the second

will be concerned with education and health, which

are goals 2 through 6; and the third one will cover

environment.

Let me now introduce my colleagues who

will act as chairs, resource persons, and

rapporteurs for the three sessions.

The session on poverty will be chaired by

Jan Vandemoortele from UNICEF, and the resource

persons will be Martin Ravallion on my right and

Karen Mason. Karen will also act as the

rapporteur.

The session on education and health will

be chaired by Paul Van Look, from WHO; and the

resource persons will include Alex Preker, Ruth

Kagia, and Beth King.

And finally, the environmental

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 169 sustainability session will be chaired by

Kristalina Georgieva, and Kirk Hamilton learned

just 60 seconds ago that he will act as the

rapporteur, and I am very grateful for that quick

response.

Then, one important announcement is that

there will be coffee available in each of the

rooms, so you don't have to take a coffee break,

but you can go out and get your coffee and come

back in.

Whatever you do, make sure that you are

back here at 4:30, when we are going to present to

the plenary the main findings of the three

sessions.

Let me announce the rooms for the three

sessions. Poverty will be on this floor in MC-13-

130. Education and health will be in MC-4-W1S0i

and environment will be in MC-6-W1S0.

You can go to whichever session you want,

and we hope you will find it fruitful, and we'll

see you back here at 4:30.

[At 2:16 p.m., the plenary recessed into

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 170 parallel sessions and reconvened at 4:45 p.m. in

Session III.]

MR. DORYAN: Your attention, please. I

hope that you can sit down and we can resume this

Session III. We will divide this session into

three parts.

First, my name is Eduardo Doryan, and I am

Vice President for Human Development here at tee

Bank.

We are going to divide the session into

three very concrete parts. First, we will listen

to the three rapporteurs from the three groups that

have been discussing over the last couple of hours.

As the second part, we will listen to the

two discussants who are with us this afternoon.

And the third part will be an open

discussion where we are going to entertain short

additions, value-adding comments.

So let me proceed immediately to hear from

the three groups and their rapporteurs.

The rapporteur for the first group, which

is related to poverty, is Karen Mason.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 171 You have the floor, and please be as

short, sharp, and to-the-point as possible.

MS. MASON: Always--and then I will invite

other members of this group if they want to add

anything.

We debated at some length about whether

the 21 indicators that have been developed are

adequate or whether there should be country-

specific indicators, and there were very strong

statements made on both sides.

There was an attempt to reconcile them by

saying that in terms of international or global

tracking and reporting, the 21 indicators are

adequate, and we should not add to them, but as

poverty specialists, we might want to do research

on and talk about other indicators.

There was also an expression that it

really is up to the recipient countries to

determine if these are an adequate set or not, and

if they want to propose others, they should. But I

would say that that debate went on without really

being resolved.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 172 There was a second debate that was

originally phrased as should there be pro-poor

growth as opposed to steps to reduce inequality in

society. The two main proponents of these two

positions then met privately after the group

disbanded for coffee and rephrased their argument

as really should we invest assets in the poor or

give assets to the poor, was the pro-poor growth

position, as opposed to shifting assets from the

wealthy to the poor. And the proponent of that

second point of view was really asking is it

adequate to simply invest assets in the poor, or do

we also need to shift them, and I think that there

is still a disagreement between them as to which

position is accurate.

The one issue where I think there was some

consensus was that these 21 indicators are much

more meaningful if there is disaggregation of them,

because poverty is not an average in a country. We

know that women experience poverty more than men,

and we know that ethnic minorities tend to

experience more. In many countries, there are

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 173 geographic regions that are particularly subject to

poverty. In many countries, the rural population

is poorer than the urban; some, vice versa. In any

case, I think there was some sense that these

indicators are more meaningful and more useful if

they are disaggregated, and there was a bit of

discussion about how we probably need better data,

at least for gender disaggregation, and perhaps for

other forms of disaggregation as well.

That was the gist of our discussion.

MR. DORYAN: Thank you.

I like those three issues, which are very

clear; they obviously open a set of further

comments later on.

Let me now call on Alex Preker to report

on the group that discussed education and health.

MR. PREKER: Thank you, Eduardo.

We had a very lively discussion around the

issues related to health and education, and I will

summarize those in four categories--discussion

related to tee goals themselves, household

contribution to those goals, action in terms of

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 54~-6666 ah 174 systems and also system inputs, and then the

policies available to governments. Those were the

four categories that we went through.

I think, like Karen, there was a very

strong feeling that we realize that the goals and

the indicators are blunt aggregate indicators of

what we are really trying to achieve and that we

had to be careful that we didn't overstate what

those indicators meant and that those indicators

captured everything that we were trying to achieve.

So there was a caution about looking at

what was behind the indicators, and the metaphor

was used of trees that have branches that flap in

the wind--it is not the flapping branches that

cause the wind, but the wind that causis the

flapping of the branches--and that we have to be

very careful as we are looking at these goals. The

indicators are an indication of the underlying

goals that we are trying to achieve; it is not the

indicators themselves that we really ought to be

excessively focused on. I think that was a nice

little metaphor that captured that.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 175 There was also a strong feeling that

households play a very important role and that

households are quite different across different

contexts. So, like in the poverty group, there was

a strong feeling that the goals which are aggregate

goals don't tell the full story in terms of

regional differences, income differences. And

particularly there was a strong emphasis that they

don't capture completely the gender differences

among various groups.

In terms of actions, there was a very

strong feeling that the actions needed to achieve

these goals are very much multi sectoral actions and

that great caution should be exercised that one

does not look too narrowly at the proximal

determinants of any particular goals, because if

you look too closely at the partial determinants,

you will probably miss some of the important

intersectoral synergies and also some of the

broader determinants of any individual goals.

So there is a very strong feeling that one

should look at the big picture intersectorally

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 176 feeding into the goals. In that sense, several

people emphasized also the importance of financing.

An example was given that the international

community has had goals before, such as health for

all goals and education for all goals, and several

people mentioned why did those goals fail in the

past, and let's not repeat that, but let's look at

what the failure was and then, as we move forward

on the goals that are put on the table now, let's

try to move forward with that agenda.

Finally in terms of the policy levers,

there was quite a lively discussion around what

types of policies are available to governments,

ranging from purely information to more direct

action in terms of regulations, contracts, subsidy

types of things to actual production of some

services.

We didn't actually get into a very

detailed discussion on that, but tee preliminary

feeling was that there probably wasn't a silver

bullet there, but that a range of instruments were

needed and that governments may be better at some

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 177 of those instruments than others.

There was quite a lot of discussion around

government failure and international donor

community failure and what could be done about that

and why was it that governments in the past who may

have had access to known information on how to

improve health and education had not been able to

exercise that and, likewise, why the international

community had not been able to do that. I think

there was a feeling that it was time to move away

from donor to client relationship and start looking

at partnerships and local ownership.

That covers the four topics, and now I

will just touch on three other quick issues that we

dealt with, which were the process of arriving at

the goals, the context in which it takes place, and

the actors or the people involved.

I think there was a very strong feeling

that in terms of the process, the political economy

has probably been down played in the past, probably

at the demise of countries and also the

international community, and that much more

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 178 emphasis should be put on the political economy

dimension in the future, particularly the issue of

fully recognizing that there are in any of the

processes both winners and losers, and if too many

losers are on the side of people who vote for

governments or politicians, you are very unlikely

to be successful in those kinds of reforms.

On the context side, there was a strong

feeling once again that silver bullets are probably

not going to work and that it is very important to

look at the local country context and adapt the

policies that we are talking about to local

context, not just at the national level, but also

at the subnational level, and for particular groups

like, for instance, gender differences and

subregional differences.

The final point was really to emphasize

that it is people who are going to make all of this

work, so at least in health and education, the

providers of health care and the providers of

education, the educators, if you leave those out,

it is unlikely that you are going to succeed, at

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 179 least with the health and education goals, and that

we really must in the future put much more emphasis

on the human dimension of these reforms.

Thank you.

MR. DORYAN: Thank you, Alex.

The third group related to environmental

sustainability, and Stephen Browne will report on

the results of that group.

MR. BROWNE: Thank you very much.

As an example of the cross-functionality

of this process, I had intended to be in the income

poverty group; not finding a chair there, I found

myself on the sixth floor, where I was put at the

end of the table to chair this rather more compact

group, which comprised a few bilaterals, a country,

seven people from 19th Street and six from the UN.

So it wasn't unrepresentative.

It was an interesting discussion, and I

think we made quite a lot of progress. I would

like to summarize our discussions under three

headings--the nature of the environment indicator

and its monitoring; second, we had an interesting

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 180 discussion on the nexus between national

sustainable development strategies and poverty

reduction strategies; and third, a kind of coda on

why we may be doing everything backward.

Let me start with the indicator itself.

First of all, I think it is recognized that

sustainable development is fundamental to all of

these indicators, and it is not a concern that is

confined only to Target Number 7.

But IDT 7 is rather unique in at least

three ways. It is a nondiscretionary target--it is

sort of an on-off target, although it has a kind of

quality element. In other words, you either have

or you have not achieved the drafting of a national

environment strategy, but you need to examine

whether it is effective.

Number two, it is unique because it does

not talk about human development or human well-

being as such. It is a target at one removed.

And thirdly, notwithstanding that,

environment is still fundamental and can find its

way, at least indirectly, into other indicators, in

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 181 particular health.

When it comes to the monitoring of this

target, there isn't a great deal to be done as far

as the IDTs are concerned, but there was a

discussion on the six components out of the 21

indicators that make up that overall target. And

the feeling was, I think, that it should be left to

the individual country to determine which of those

sub-indicators or those six indicators should be

utilized for meeting the goal.

I have to say also on monitoring that the

ongoing process of follow-up to the Millennium

Declaration will imply a slightly different

approach when it comes to environment-related

targets, because the MDGs, as I like to call them,

do have certain differences. The MDG does not have

the 7th IDT goal at all, but it does include access

to safe water explicitly, and it has a set of

different environment goals in a different part of

the Declaration which the UN will inevitably be

monitoring in its follow-up.

I commend to the group, and I commend to

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 182 this meeting a quick glimpse at the Tanzania report

to see how that first of many country reports on

the monitoring of the targets this problem was

tackled.

The second area was a discussion about the

nexus between the national sustainable development

strategies and the PRSPs--at least, that was how it

was originally couched. I think there is a

recognition that the rather hasty process, the

inevitably hasty process, by which the Interim and

now increasingly the full PRSPs have been drafted

has left out of account some of the environmental

concerns.

But it was also pointed out that PRSPs,

which have been done in something over 30 countries

and I think are intended for about 70, will still

not be anything like the totality of the developing

countries. And really, the discussion came to a

conclusion that where it is necessary to influence

the development agenda, national strategies or

national agendas on sustainable development may

still be necessary. But in an ideal state, whether

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 183 we are talking about high-, medium- or low-income

countries, what is required is a comprehensive

development framework or strategy which takes into

account sufficiently poverty aspects, sustainable

development aspects, gender aspects, and all other

cross-cutting issues.

Finally, a discussion which I initiated by

stepping out of my chairing role but which I think

is worth mentioning because it found sympathy with

a couple of other participants, at least, is my vie

that I think we may have gotten everything the

wrong way around. We are so concerned with the

quality of the document and the content of the

strategy and what it actually has to say--I think

that probably this is an opportunity, when we are

concentrating for two days' on these IDTs or MDGs,

to remind ourselves that probably the right way to

go about the eradication of poverty is to

concentrate country by country and target by target

on the status of those human development indicators

and determine what it is that that country and its

development partners need to do in terms of

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 184 creating a policy environment, providing the

resources, facilitating trade, aid, alleviating

debt, and so on, to meet those targets.

If countries could come together with

their development partners around an indicator-

related strategy, I think this would be the right

way forward.

Thank you.

MR. DORYAN: Thank you.

I think we have more than enough material

for our two discussants to start their

presentations.

First, it is a pleasure for me to

introduce Rachid Benmokhtar. He has training as an

engineer and also in business administration. He

was the Minister for Education in the Kingdom of

Morocco and now he is actually a university

president and also an advisor to the Council of the

World Bank Institute.

You have the floor.

MR. BENMOKHTAR: Thank you.

I will try to share with you some personal

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 185 remarks regarding this session. I will start by

saying that setting international goals is

something that is very important in my view.

Why? Because perhaps for the first time,

we are creating some kind of hope among people, and

that is very important. And of course, when

setting goals, we have to try to succeed if these

people who are hoping that something will change

will find, finally, that not only the government

but also the international community is helping to

achieve these goals.

The question is how to meet the goals. We

discuss a lot about them; we try to share

experience. I would personally say that something

which is very important is how to create leadership

in developing countries, leadership which will

support the ideals of the IDGs. That is very

important.

If we don't create leadership, it means

that it will be very difficult to implement any

change in the future.

When speaking about leadership, I think

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2~02 (202) 546-6666 ah 186 that this leadership will be at the national level

as well as at the local level--within the

government, with the local government, but also

within NGOs. That is the first step to be

successful.

Second, we have to train coachesi we have

to train persons at the grassroots level who will

be able on a daily basis to push the population

toward these goals. That is very important.

Teachers and nurses may perhaps be good resource

persons, but they need to be trained seriously, of

course, and accurately.

Why? Because first, in almost all

countries, you can find a school, but you don't

find any government office. That means' that it is

a part of government service which is present in

most countries. Teachers are involved with

children, and they may be involved also with the

parents, so it is important to have them as leaders

at the grassroots level, but also to really train

them as coaches. That would be something very

interesting.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 202) 54 -66 ah 187 The other remark that I have is how to

make policies and resources devoted to these goals

sustainable. That is something which is very

important. We know that very often, politics

change, and as soon as a new minister comes, he has

new politics, and generally, he thinks that the

former minister was wrong. What does that mean?

It means that if there is not a global project that

is a country project, in fact, decided for a long

period and approved at the highest level and by the

parliament, then, every change of government will

of course jeopardize the projects. That is very

important. It is more important for the countries

that are experiencing democracy, because a change

means that people have not yet adapted to the rules

of democracy.

It also means that people who want to be

elected have, of course, to fulfill some of their

electors' demands, and elector demands do not

always fit with the objectives of development.

That is also something which is very important.

The question for developing countries is--

MILLER REPORTING CO., INC. 735 8th STREET, S.B. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 188 is a democratic policy something that will help, or

is it something that in fact will create more

conservatism among politicians. That is the right

question to ask. I am not sure that the answer is

that democracy will foster the implementation of

these goals. Perhaps it will act in the reverse

and create more conservatism.

The other issue that appears to me very

important is the issue of environment, and here,

there is a lot of concern in any developing

country, because poverty in fact--and perhaps also

when a government is dealing with a lot of issues--

appears as a problem that is a developed world

problem or issue, and not a developing country

issue. Of course, this is not true.

How to react to that, how to create a kind

of consensus about the environment--I think that

education perhaps may help. This means that

environment has to be a part of education and also

part of the local economy. If we involve the local

population in environment projects, I think they

will understand and will have an interesting in

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 189 protecting the environment.

Finally, I will say a few words about

global knowledge for development. I think that is

also an issue which is very, very important. The

problem is more than educating people--it is

education and learning and learning globally. That

is true for the high education graduates, but it is

also true for basic education students as well. If

the developing countries do not have global

knowledge, that means that they will stay far away

from all these objectives. That is why I think the

World Bank must work harder on the global knowledge

development program which I am sure will help a lot

to implement all of these goals.

Thank you.

MR. DORYAN: Thank you very much for your

comments. I am sure they will trigger a lot of

discussion later on.

Our second discussant is Sanjeev Gupta,

who is in part responsible for "The Better World

for All," which he worked on last year and probably

for a long time before. In his present position as

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 190 Chief of the Expenditure Policy Division of the

International Monetary Fund Fiscal Affairs

Department, he has been looking at the nexus

between sustainable fiscal spending and improvement

in social indicators, including the IDGs.

You have the floor.

MR. GUPTA: Thank you, Mr. Chairman.

The points that were summarized by the

three groups, one cannot disagree with, so I

thought I would raise some additional issues to

facilitate discussion.

First, I attended the meeting of one of

the groups, on education and health, and there was

some discussion about raising spending in these

sectors. The point I want to make is that simply

allocating resources to these programs will not

produce the desired impact on the International

Development Goals. And I am not talking

necessarily in terms of the efficiency

considerations which were discussed in that group.

It is important that the budgetary processes ensure

that the public resources are directed to poverty-

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 191 reducing programs. This tracking of poverty

spending is in addition to ensuring the effective

use of public resources in terms of their pro-poor

incidence.

The issue of tracking is also quite

relevant since some of the groups talked about a

shift toward budgetary support for social programs

from donors. What that requires is that there be

sufficient safeguards in the budgetary process to

ensure that the money reaches the poor and is used

for the intended purposes.

What does tracking entail here? It means

that poverty-reducing programs identified in the

context of each country's poverty-reducing strategy

will need to be appropriately classified in the

budget, and spending on these programs monitored

during budgetary discussion.

The tracking is actually complicated by

the fact that different kinds of public spending

impact on health and education-related indicators.

This issue was highlighted in the session on

education and health.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 192 Therefore, what is poverty-reducing will

need to be determined on a country-by-country

basis. This then raises the question as to what

should the budget be monitoring. Should it be

monitoring just social sector spending, or the

entire poverty-reducing programs? The answer is

that the budget will need to monitor all poverty-

reducing programs because of the fungibility issue,

especially if some of the programs are being

financed by foreign donors, because if there is an

increase in the level of education and health

spending which is funded by donors, there can be a

corresponding reduction in education and health

spending by the countries themselves without any

additionality of spending in the budget.

However, in many countries, tracking of

poverty-related spending may not be feasible, as I

said earlier, within the current budget systems.

This is reflected in the inability of the budgets

to appropriately classify and distinguish poverty-

reducing programs. Furthermore, the accounting and

audit systems are quite poor in generating

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 193 comprehensive and timely information for monitoring

progress toward the International Development

Goals, at least in the near term.

The implication is that concerted efforts

will be required by countries themselves and by

donors to strengthen the public expenditure

management capacity in the developing countries.

The second point that I thought I would

raise is the issue of costing public expenditure

programs. Some of the issues that were discussed

in the education and health sector discussion

included the linkages between public spending and

education and health outcomes. The PRSP process is

expected to provide important insights in this

regard.

At the same time, the PRSP process should

help in costing different education, health care,

and other poverty-reducing programs to facilitate

an assessment of tradeoffs between different public

programs and the integration into the fiscal

framework.

If one looks at the PRSPs, I should note

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 194 that the costing of the poverty-reducing programs

is rather uneven.

The third and final point that I would

like to raise is the issue of data, which was

discussed in the education and health group. Here, I thought I would present some evidence from the

experience with the PRSPs that have been produced

so far.

As you were told a few minutes ago, there

are some 30 full-fledged and Interim PRSPs.

Actually, there are only 4 full-fledged PRSPSi the

rest are Interim PRSPs.

What one finds is that in nearly one-third

of the 30 PRSPs, it is noted that a considerable

amount of work needs to be done to collect and

analyze information on social indicators before the

countries can lay down concrete, monitorable

indicators to measure progress against the

International Development Goals.

These PRSPs therefore provide virtually

no, or in some cases, very limited, information on

existing levels of social indicators. And

,MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 195 therefore, it is an indication of the amount of

work that needs to be done in terms of building

capacity of these countries. At least for the

countries which are going to be coming up with

full-fledged PRSPs, some kinds of goals would have

to be established there, of course, driven by the

countries themselves, so that progress in those

could be monitored.

With those comments, I thank you, Mr.

Chairman.

MR. DORYAN: Thank you.

I think we have a full plate in order to

launch the discussion, because besides the issues

of the goals per se, there has been a lot about the

political economy, the process, the context, the

tracking of data. So I think we can open the

discussion, but let us remember at least two basic

rules of tee game--at this session, we are trying

to answer a set of questions which were outlined,

and I think the groups did a good job in this

direction; and second, on the interventions, let's

try to make them short, lively, and addressing some

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 196 of these issues and posing any divergent position

in order to make the most of the contributions and

add the most value to the discussion.

So let's open the floor for comments that

will add to each of the groups or to the general

framework that our discussants put forward just a

minute ago.

Who would like to start?

[Pause. ]

MR. DORYAN: Good. We can tell the world

that we have complete accord.

Yes, please.

REPRESENTATIVE OF UGANDA [Mr. Tumusiime-

Mutebi Ie] : Thank you, Mr. Chairman.

I just want to comment on one point which

was made by the IMF representative and really to

generalize it. He said that the issue as discussed

was whether to monitor social spending or monitor

all poverty-reducing programs, and he correctly

pointed out that because of the fungibility issue,

we need to reduce all poverty-reducing programs.

I want to go beyond that and say that it

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 197 is unrealistic to expect most of these countries to

straight-away prioritize their expenditures in such

a way that the majority of government resources

actually go to poverty reduction, the majority of

domestically-raised resources actually go to

poverty reduction.

If that is the case, it becomes important

not to track only poverty-reducing programs but to

track the entire budget, because there is no

mechanism for addressing fungibility other than

discussing the priorities across the entire

spectrum, both locally-funded and donor-funded.

This is extremely important.

That is why it is extremely important to

situate the entire development program within a

coherent and consistent fiscal framework.

Thank you.

MR. DORYAN: Do you want to comment at

this point? I think that that is a point which

should be present with us for the rest of the

session.

Yes, please.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 198 REPRESENTATIVE OF BURKINA FASO [Mr. Tongo]

(Interpreted from French) : Thank you, Mr.

Chairman.

I have two things to say. First of all, I

would like to reply to what the representative of

Uganda just said. It is the problem that we have

had in the three breakouts, because if you have a

breakout called "poverty" and then a subgroup

working on health and education and another one

working on environment, this gives us a perspective

where we do not feel that there is integration of

all this.

What is poverty? Poverty is education,

poverty is environment, poverty is health. We

should have a global approach, first of all.

sectorally, what can we do? For me,

poverty is what I wrote in the paper I distributed-

-fighting against poverty is to look for human

security. What is human security for a man? HUman security is economic security, so that the person

has a job, can pay for his own way, go to school.

Invest in the human being. The first group said

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 199 that. We have to invest in the human being.

Security is also food security. We have

to do so that a man can eat and have drinking

water. Security is also health security, but it is

also in the environment.

If you take all of these aspects--somebody

who has a job, who has a little bit of money, but

who is sick, who has no health center, could die

with a lot of money under his mattress. Is this

person poor? Of course he is poor. He has money,

but he is poor, because he cannot take care of

himself--he has no health care. Health is part of

poverty.

If somebody wants to take care of his

needs, and he has to destroy nature to do that, is

he creating conditions so that the next generations

can feed themselves? Of course not.

So you see, the environment is included in

any struggle against poverty.

Finally, the last security is political

and individual security. We have to see the

political aspects of poverty. What do I mean by

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 200 the political aspects? Well, it comes to the fact

that I, a small citizen, as our friend from

Bangladesh said, participate; I am involved. But

how can I feel like I participate if I live in a

remote area, and I am very poor? I have to know

that I have a voice; that the voiceless have a

voice.

So the way you divided the different

sessions, we think that poverty is the main thing,

and the rest are sub-elements, really.

The second observation that I want to make

which is quite essential is that we need to have a

global approach. A global approach must be not

only in the definition of policies but in the way

that it is applied. We cannot talk about inner

resources that will finance such-and-such aspect,

or external resources, either. More and more, when

we want to strengthen capacity, when we want to

fight poverty, we must insist on budget

transparency so that more and more, projects are

useful because--of course, each donor comes here

and does something and has a nice inauguration and

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 201 TV cameras following him, filming him cutting

ribbons--that doesn't really matter. What matters

is that all the different aids and supports should

be within a framework where we no longer talk about

the efficiency of external aid, but we should talk

about the efficiency of public expenditures--that

is to say, the funds that come from national

resources.

Our friend from the IMF mentioned a very

important point, and I will stop on that. He

mentioned the fact that the poor should have access

to essential services, and what should we do so

that the state budget, the fiscal instrument,

should be an instrument of equity. We have a real

problem with equity. Sometimes you have a health

center, but when the poor go to the health center,

they are asked to pay, and they cannot pay. The

supplies are there, but they do not have access.

Sometimes access demands a fiscal

instrument which absent causes problems. When we

talk about our partners, sometimes they do not

always understand; they always ask for cost

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 202 recovery, and people should pay taxes. But there

is a question of access linked to all that.

So what our friend from the IMF said is

very important. It is also an approach of income

redistribution. If the poor person goes to a

health care center and is asked to pay 100 francs

and, thanks to a fiscal instrument, he is only

asked to pay 25 francs, then, all of a sudden, he

has access to a basic service.

These are the comments that I wanted to

make so that we do not lose sight of the global

aspects of poverty. You cannot have poverty

indicators that would exclude health, that would

exclude education, that would exclude environment.

So we have a global approach, and we should really

push our countries, push developing countries, to

all have this global approach, and the global

approach must be supported by sectoral approaches.

The goals must be the ones that we have also in the

global sector.

Thank you, Mr. Chairman.

MR. DORYAN: Thank you.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003 2802 (202) 546-6666 ah 203 I think the issue of systemic relationship

among the goals on the one hand with the fiscal

policy on the other should be very much at the

forefront of our discussion.

Yes?

MR. SWANSON: I will just take a moment to

reflect on a couple of things that were said this

morning and bring us back to the specific

development goals.

I was particularly struck by Denise

Lievesley's quick account of the urgency of

beginning to move toward these goals. If you

remember, she look at the goal of universal primary

education by 2015 and said we have to then meet the

needs of the cohort that is going to be in school

in 2015, which means we need to work backward to I

think she said 2007. If we are going to do that,

we need to work backward to the cohort of teachers

who are going to teach the students who are going

to be in school whom we are going to count toward

that goal in 2015. And that means we need to be

starting now.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 204 It seems to me that that is a very

dramatic use of these indicators to tell us that

there is a very urgent need for us to form a

coherent plan to address that need--not in

isolation, definitely not in isolation, because

education is so central to everything that we

propose to do here in health and in the environment

and in income poverty reduction--but we certainly

need to focus on the outcomes of some of these

indicators.

I think you could make similar cases for

all the other indicators here. You could talk

about, for example, the goal of reducing poverty by

half. In many countries, we won't succeed in doing

that. Why? Because we won't have adequate

investment in physical capital and in human capital

in train by the time it would begin to payoff in

the form of increased income and consumption, and

therefore, reduction in income poverty by 2015.

So I want to redirect this group back from

these more abstract policy issues of how we knit

things into PRSPs and how we undertake these fiscal

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 205 reform issues, to perhaps more in the line of

Stephen Browne's comment at the end, and say that

we do know that there are certain goals that we

would like to achieve. We began the morning by

saying we have a broad consensus on that. Are we

paying adequate attention in our discussions r~ght

now to the steps we all need to take, beginning

urgently, immediately, in order to ensure that we

have a chance of meeting them by 2015?

MR. DORYAN: Thanks, Eric.

Yes, Germany.

REPRESENTATIVE OF GERMANY [Mr. Klasen]:

My name is Stefan Klasen, and I am representing the

German Ministry of Development Cooperation.

I think there is a little bit of an

unclarity that we are still working on that came

through in various comments, which is the

relationship, for example, between the

International Development Goals and the PRSPs. I

think we should really keep the two quite sep?rate

in some sense--the International Development Goals

are overarching goals of the international

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 206 community to adopt. What is happening at the

national level is informed by the International

Development Goals, should be informed by the

International Development Goals, but it is each

country setting its own goals with the capacity and

the data and the statistics available at its

disposal, and that happens as part of the PRSP

process. So I don't think in a sense what should

happen is that basically, one tries to translate

the International Development Goals into national

statistics or something, and ask can we measure

these things at a national level, but basically,

just to say these are goals at the global level,

and each country in the PRSP process then makes

them their own, takes them as a guideline, and

tries to fill them with life, with more data, more

disaggregated, better data, or maybe worse data,

because they don't have data on certain things,

rather than just trying to take them and make them

the focus of the PRSP process.

So I would still see in a sense that the

country has to have total primacy of the PRSP

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 202 546-6666 ah 207 process, not only to be informed by the

International Development Goals.

One of the things that we have not talked

about enough is the question of whether the

International Development Goals should be used to,

for example, be very clear about allocation of

funding across countries, for example, by

bilaterals or multilateral institutions, or

allocation of funding across sectors by bilateral

and multilateral institutions.

We had in our poverty debate the

contribution from Sri Lanka which said if it now

turns out that all poverty, the one dollar a day,

as the World Bank has reported, has fallen below 10

percent/ does this mean we will then be cut off

from support because we are no longer a high-

priority country--that is an unresolved question.

What exactly is supposed to happen? Are they

supposed to inform country allocations, which

currently, as we have learned from the "Assessing

Aid" work, are certainly not related to poverty

across the world/ or not very closely related to

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 208 poverty across the world -certainly bilateral

funding is not, and neither is sectoral funding

closely related to poverty--for example, funding

for agriculture and rural development is quite low

compared to other things. I think maybe one should

move the discussion a little bit also more in that

direction, whether the International Development

Goals can really be used to think about regional

and sectoral allocation of funds, and then, there

are a lot of sensitive issues that one needs to

deal with, including data issues, measurement

issues, and so on.

MR. DORYAN: Thank you.

Yes, please.

MR. TUMUSIIME [UGANDA]: I don't know

whether I misunderstand my German colleague, but if

I understand him, we are heading for trouble.

I think everybody here has said that there

has been consensus over what development enterprise

is about, and that consensus is broadly

encapsulated in the International Development

Goals. If that is true, then what he is saying is

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 209 absolutely subversive, because he is saying that if

we leave these countries to determine their own

objectives, and if we ignore the International

Development Goals, for the sake of argument--the

whole point is that we should develop a consensus

by both developing countries and developed

countries around these goals, and then we move

forward and ask what are the policies and programs

that are required to make everyone comfortable that

progress is being made toward these objectives.

Once we have agreed that this and that is what is

required to be done to move toward the objectives,

aid should increasingly be given to these

countries, untied, to support the programs that

have been agreed jointly to deliver those

objectives.

That is where we should be moving--not

shying away from getting everybody around the table

to agree to a partnership. Otherwise, there will

be no partnerships, and we shall come back saying,

"This is my sovereignty, and I don't want to talk

about it." Please, this is not a question about

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 210 sovereignty. It is a question about you agreeing

that poverty reduction is a fundamental objective

of the development program, and donors supporting

that agreement with money--putting their money

where their mouth is--and the recipient country

must accept. It has nothing to do with

sovereignty. It is about your capacity to

implement your desired programs. Since you have no

domestic capacity in terms of resources, accept

what is required for you to get foreign resources

to implement that program. That is what the

partnership should be about--not about allowing

every country to develop their own different

targets.

I thank you.

MR. DORYAN: I think this is triggering a very interesting discussion.

Please.

REPRESENTATIVE OF SRI LANKA [Ms.

GunewardenaJ : I feel that I need to qualify what

was said about the Sri Lankan experience, but in so

doing, I will try to throw some light on the issue.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 211 There are two issues here. One is that if

we were to take the statistics in this folder as

accurate, Sri Lanka has already achieved a lot of

those International Development Goals. Now, are we

going to be rewarded for doing so in terms of aid,

or are we going to be penalized for having achieved

them, because other people need that money, and we

no longer need it? That is one question which I

think Mr. Klasen actually drew our attention to

very early on this morning.

The second question, which is just a point

of clarification, is that I believe--and I think

Martin Ravallion more or less admitted it in our

group session--that the statistic on poverty that

you have there in your folder, which is the dollar-

a-day measurement, is misleading. It is an

estimate and a projection. Estimates used

following Martin's Bank guidelines, using household

data, actually gave us a fairly high figure of 25

percent, when what we have in here is less than 10

percent.

So the question that it gave rise to when

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 212

I pointed this out is should we then use this

specific indicator or as one of the indicators to

measure the goal of reducing poverty. And Martin

himself said that the point of calculating the

dollar-a-day poverty measure was to come up with

international aggregates--what has happened to

global poverty--and it was not to say that these

are country-specific poverty indices.

So since we actually have it in here, I

think it is worth underscoring the fact that there

is a danger in using that particular indicator for

the particular goal that we want to measure.

Thanks.

MR. DORYAN: Thank you.

I think one of the points raised is what

is going to be the social contract, both an

incentive for the laggers and the front-runners.

That is an issue that should be at a certain point

clearly stated in order to make this a rising tide

both for the laggers and for the front-runners.

That is probably going to appear more than once in

this discussion.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 213 Yes, Stephen?

MR. BROWNE: Yes, if I may come in at this

point, I'm not sure that there really is too much

of a fundamental disagreement about the globalized

or the localized indicators.

I think the importance of the Millennium

Declaration was that it gave an extraordinary and

unprecedented legitimacy to those International

Development Goals, which is why we like to call

them the MDGs. I think it did not merely say to

the developing countries that the world community

now thinks that to perform, you need to achieve. I

think it has to be interpreted in a much more

constructive and partner-oriented manner to say

that the world community is now committed, rich and

poor countries together, to helping every country

to meet those targets, challenging though they are

in some cases.

I do think it is inevitable that when it

comes down to the country level, a target--Iet's

take as a particular example the income poverty

target--and by the way, I think we should be using

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 214 income poverty as opposed to the poverty target; I

am very insistent upon that t because human poverty

is a much more embracing concept, and income

poverty is much more narrow--but when it comes down

to measuring income poverty, I think it will be

found that in the large number of countries in the

world, the dollar-a-day target has never been

mentioned and is not particular meaningful. It has

been done at a global level on sort of a formulaic

basis t and it has enormous value at the global

level for advocacy purposes. But at the country

level, countries have their own poverty targets,

and it is those that we should be monitoring.

Let me link what I am saying, if I may,

with the suggestion I made that we are doing things

backward. I am not really picking this out of the

air. I am saying that when we did the Tanzania MDG

report, we essentially came ~o a similar result.

We looked at nine goals which seemed to be relevant

to Tanzania. It would have been totally

unrealistic to have left out from the Tanzania

analysis a goal on HIV/AIDS if it is going to be

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 215 poverty-related. There is a goal on HIV/AIDS in

the Millennium Declaration, so it was included.

What we tried to do here was to look,

target by target, at what the country had so far

achieved, starting in 1990, to the extent the data

permitted this.

Secondly, we looked target by target at

the specific development challenges that were

required to help that country achieve that target

and, for example, a number of cross-cutting issues

came in. On food security, the gender factor was

absolutely critical.

Thirdly, we looked at the nature of the

policy environment--in other words, the nature of

the commitment that that country had made to

achieving that goal and the likelihood of it being

achieved in the current policy environment.

But fourthly--and this is very important--

was the need for development assistance

specifically for that country to meet that target.

So it was a manner in which we could combine both

the national and the international commitment for

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 216 that country, for that target, and meeting it by

the year 2015.

I happen to think that it is the right way

forward, and once again, I would commend a careful

reading of this report to this meeting.

Thank you.

MR. DORYAN: Thank you for bringing this

part of the discussion to a country-specific

example.

Jo?

MR. RITZEN: I would like very much to

elaborate on a point which was made, but picking a

different dimension. The point was just made that

there is a strong relationship between the country

approach and the international approach; otherwise,

we are talking about business as usual. And we are

not talking about business as usual, or at least I

think we do want to make an extra effort.

Let me try to stress that from the

perception of the political economy and that

dimension, which was very much put forward in the

group which talked about education and health. And

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 217 of course/ anyone who has been working on education

and health is very aware of the political economy.

Good ideas count/ but are maybe just a mini-measure

in the mile to go--that is taking two different

standards/ one from one area and one from an other-

-it is a very small part of the total road to go.

A major part is the political economy.

The political economy approach actually/ in my

view/ has been very dominant in adopting the IDGs/

at least in my view r and I think that makes it

worthwhile to flag.

The political economy dimension

essentially iS r to start with/ what was mentioned

this morning by Emmanuel and also repeated by

Rehman Sobhan. It is governments who will have to

do the work. It is not going to be this table that

is going to change anything in Uganda. It is not

going to be any other group. It is really the

Ugandan Government r essentially. Of courser the

Ugandan Government also has a representative of the

country and is very much in contact with the

country, and there r I very much like the notion

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 218 that the country can do much. I could not do much

when I was a minister in the Netherlands without

elaborate consultations with stakeholders to make

sure that stakeholders would at least follow the

tradeoffs--that was also the word used by Emmanuel,

the tradeoffs. Eduardo couldn't do anything in

Costa Rica without having strong consultations. So

in that respect, strong consultations are part of

the effort.

But then, strong consultations in this

case I think are very much fed by benchmarks based

on notions that governments can increase room for

maneuver by pointing to, say, benchmarking figures.

That is something in which I think when you look at

changes in the European Union or in OECD countries,

you can recognize the very strong role of

benchmarking.

For example, the German response to the

OECD studies on benchmarking in pensions has been

very strong. The Chancellor has repeated time and

again that we cannot continue the system, and he

simply used the benchmark; I think he wanted to

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 219 change the system anyway--I can't look into his

soul, but I think he wanted to do that anyway--and

he pointed to the benchmarking.

I think the IDGs precisely have that same

kind of possibility--benchmarking in the sense that

we can do so much better. And of course, one of

the basic elements which I think is on all of our

minds is that the experience in countries is so

different, the room for maneuver is so large, but

then, it has to be captured. Some countries on the

same level of income have maybe twice as high

poverty as countries which are the best countries. 1 In education, it is very apparent~ Countries which / have $1,000 per capita still hav~ illiteracy of 30

to 40 percent,' while other coun'ries have

absolutely no illiteracy, and even countries of

$600 per capita may not have illiteracy.

So in that respect, I think the

benchmarking is a very important element in the

developing countries. And I think one of the

discussions should be on how to create not only the

benchmarking but also the translation or

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003 2802 (202) 546-6666 ah 220 transmitter, the conveyor belt, from benchmarking

to, say, room for maneuver, how to help developing

countries in this.

In my view, that is one part of the

political economy. The other part of the political

economy is very much the role in the developed

world. Sometimes, it is really quite surprising to

see how strong the support is for ODA, for official

development assistance, if you see how little

attempt is made to promote the outcomes associated

with ODA in the developed world. Quite often, I

think the countries with high levels of ODA as a

percentage of GDP simply have the general notion

that this is good. But very little use has been

made of what is actually a battle in their own

elections. Look at elections in the U.S., fought

on the battle of education and health; elections

once again in Germany, completely fought on the

basis of environment, health, and education;

elections in the UK, very much on those topics.

Now, those topics, which are very much, of

course, embodied in the IDGs, are of little use up

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 221 to this stage in the developed world. I do think

that the IDGs--and I think that that is one of the

reasons why the British Government adopted them so

strongly in their white paper, but also in other

efforts, and why the Dutch Government very much

thinks that it is important--they see this simply

as a way to promote development cooperation better

in their countries. So in that respect, I very

much want to say two things. First of all, the

relationship between country efforts and

international efforts is strong. At the same time,

I think that does not turn away from the notion

that countries have to define their own destiny and

have to look for their own room for maneuver. But

at the same time, also saying that this political

economy link might also give some hope with respect

not only to what happens in the developing

countries, but also in what developing countries

can demand the developed world to deliver.

MR. DORYAN: I think that puts in a very

good context the discussion probably of most of the

day.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 222 We have time for a couple more

interventions.

Yes, please.

MR. BRADFORD: I will try to be brief.

I just want to build on what Jo Ritzen

just said and what a couple of other speakers have

said. That is, quite clearly, we are dealing here

with global approaches to poverty. I think the

Governor from Uganda has made that very clear as

has the representative from Burkina Faso, that you

have to integrate a variety of instruments in order

to be effective at the national level in reducing

poverty.

At the same time, if you read the

environment goal as it is in the Interriational

Development Goals, it says that national strategies

should be put in place by 2005 in every country_

That includes the developed countries, is the way I

hear it. And what I have gotten to thinking about

is the use of the word "compact" earlier in this

discussion, and the question is how--we haven't had

much conversation here about how to specifically

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON. D.C. 20003-2802 (202) 546-6666 ah 223 put flesh on that idea of a compact. But it

strikes me that one way to do it is to translate or

transfer the notion coming from our Ugandan and

Burkina Faso speakers about a national approach

that integrates instruments internally to the

advanced countries who themselves have goals of

reducing the poverty that is left in advanced

countries, of achieving gender equality within

their countries, of achieving better health systems

to improve life expectancy, which is what the other

three health goals are about, and the environment.

So the thing I put to you in terms of

conversations both formally and informally is

whether or not the idea of the compact in a global

age could not be formulated with a view of Northern

actions, if you like, OEeD actions, which are

simultaneously in a context of their own domestic

efforts to achieve the goal of the International

Development Goals and their international

development cooperation efforts to help other

countries around the world achieve theirs.

MR. DORYAN: Thank you.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 224 We have three more speakers. I think you

were the first, United States, and then ILO, then

UK.

REPRESENTATIVE OF USAID [Norman

Nicholson] : Thank you very much. Norman Nicholson from USAID.

This has been a very helpful day of

discussion indeed, and I wanted to make two or

three points.

The first point I want to make is that at

least for some donors and certainly the United

States, we have a difficult problem in that we do

not budget or program around the category of least-

developed countries. This is not a budget category

for us in our Congress. It is not a programming

concept for us in our programming. So making the link between the way in which we do business and

the implications of these indicators is a very

difficult link to make in some ways.

So I find that as we begin to get into

some of the details of the lower levels of

indicators and the implications at the country

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 225 level, it becomes much easier for us to deal with

in some ways at the country level than it is at the

global level, because we are in countries, and we

do design programs.

So I find that getting down to the meat of

it really enhances our own ability to grapple with

this problem.

The second point I wanted to make,

however, is in some ways a contradiction to the

first point. That is going back to a point which

Colin made I think very early in the day, that for

some of us, the origins of this were in the role of

these indicators in advocacy, the role of these

indicators to make a political statement and to

hold our feet to the fire at a political level.

From that point of view--and I am a social

scientist, I have done research on poverty and

development in the field, and I am very sympathetic

with the complexity and the country specificity of

all of these indicators. I am also well aware that

if I try to explain this to my political leadership

or to my Congress, I will fail, and that therefore,

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 226 somehow or other, we have to be able to pull from

this complexity a relatively simple political

message which is where we started out from.

So I guess what I am afraid of is that as

this becomes more and more academically perfect, it

becomes less and less political economy useful.

And somehow among us, we have to strike that

balance.

The third point I wanted to make is that I

find the discussion following the breakout sessions

to be very, very useful, and indeed, the practical

problem of establishing one side of the compact

which is a commitment on the part of the recipient

country to put people first, to put poverty first,

to alter its investment programs in such a way that

it will live up to its compact to reduce poverty.

I can understand the budget complexity of

that is enormous and to be able to track this, but

I think it is critical to keeping the deal. In a

sense, one of the things we learn in development is

if you make a deal on the distribution of water in

a water user association, and nobody can track who

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 227 is using the water, there isn't any deal; the deal

doesn't exist. So the ability to track is very

important.

But I would argue that the efforts of the

government through its budget are in fact, in most

of the areas we are talking about on which we have

indicators, a relatively small part of the

society's investments in health or education or

rural credit and other things. And what I am not

hearing this afternoon is what I would have

expected, which is some impact of the luncheon

speaker. civil society is, as far as I know, one

of the most efficient mechanisms known for the

production of collective goods and services--I say

collective goods and services. And what we have

learned in health, and what we have learned in

environment, and what we have learned in rural

credit is that civil society does a much better job

of producing certain collective goods that are

essential, like protecting natural resources, like

establishing community health services and things

of this sort, than the state does. Yet we are

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 228 exclusively this afternoon talking about the state

budget.

Similarly, I think what we have learned is

that you need an expanding role--the Washington

consensus argues that you need an expanding role

for the private sector. Some of the most

astounding advances that we are making these days

are in public-private partnerships that match

governmental and market mechanisms. I don't hear any discussion here of that.

So that somewhere in this discussion of

how we achieve these indicators, it seems to me we

need to address the respective roles of the state,

civil society, and the market in the process, and

perhaps our indicators need to help us to deal with

that reality, complex as it is.

Thank you.

MR. DORYAN: Thank you.

ILO, please.

REPRESENTATIVE OF ILO [Mr. Pursey] Thank you, Chairman.

This meeting is very timely for us,

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003 2802 202 546-6666 ah 229 because our governing body's Working Party on

Social Dimensions of Globalization is going to be

discussing next Monday how to connect the poverty

reduction work to the ILO's agenda on decent work.

I think that probably because the ILO's

mandate around the world of work is potentially so

large--we seem to overlap with every agency around

this table in some way or another--and that makes

our Director-General particularly preoccupied with

the issue of coherence in the multilateral system.

So I came to this meeting particularly

interested in the angle of the International

Development Goals or the Millennium Development

Goals as a tool for inter- and, I must say, intra-

agency coherence. I say intra-agency because they

have been quite useful in helping us to just look

at our own activities and try to pull them together

more coherently.

So I have just a couple of points that I

wouldn't like to end the day without getting

straight.

We had a discussion this morning on

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 \ ah 230 whether there were any problems in the differences

between the International Development Targets and

the Millennium Development Goals t and I was quite

happy with the resolution of that--that iS t that

they are consistent; they are not identical t and

letts not have a big fuss about it. I have no

problem with that t but I think that everybody in

this room needs to get their line straight t because

if anybody wants to attack this whole process t that is a very weak point. It is easy for the cynics to

say, oh, you don't know what you are talking about,

and do you mean this t or do you mean that, would

you start on this. So I think it is very important

that the system get its line straight on that.

The same thing applies, incidentallYt I

think, to the relationship between UNDAF and PRSP,

and I think that that was clarified very well this

morning t but again, it is an easy weak point. Also, I think some valuable points came

out this afternoon in terms of how to connect the

value of the targets for international advocacy to

their operational value in particular countries

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 231 where you need a little bit of flexibility as to

whether the target internationally makes sense for

the country. I think there were some very useful

points made there, and again, I don't have anything

particular to add to it, but from the point of view

of coherence, I would just like them to get sort of

cemented in.

From the point of view of the lessons so

far for the ILO, I will just say there are three

things. One, we need to know ourselves better what

we do. It seems like a very obvious point, but for

a large agency dealing with a lot of countries,

particularly in our case with a tripartite

constituency in each country, we have quite a large

number of programs that are developed over the

years, a lot of which are incidentally connected to

civil society, and they are all very interesting

and very good, but they are developed allover the

place, and they need to be brought together.

Bringing them together, we also need to

connect with what other people do. And then,

having done that, the object of the exercise is to

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202 546-6666 ah 232 offer our constituencies--in our case, it is the

employees and trade unions as well as the

governments--something that is specific from the

ILO, something that is our expertise, but that fits

with everybody else's. So for me, one of the

values of the International Development Targets and

the Millennium Development Goals, is to help us do

that process of focusing in on what we do, how to

put it together, connect it to other people, and

then offer it in some sort of package that makes

sense.

My guess is that probably all the agencies

are doing something like that, and it might be

worthwhile to exchange some experience on it,

because the political momentum that the

International Development Goals and the Millennium

UN General Assembly has given us is not going to

last forever, and it is worthwhile catching this

wave, taking it as far as we can, and then making

sure that there are some, if you like,

institutional rocks for the people to take the next

wave to build on.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 233 Thank you.

MR. DORYAN: Thank you.

I think that that is probably a reflection

for any of the agencies that are represented here.

I will take two final comments from UK and

the Netherlands.

REPRESENTATIVE OF THE UNITED KINGDOM: I

just wanted to comment briefly on the income

poverty target, because it could be possible to

deduce. It was called into question, and it might

be possible to deduce from my UNDP colleague's

remark that we might perhaps downplay the

importance of the dollar-a-day target.

I think there are two points to make here.

The first is that I think we all recognize that it

is not an objective and cannot be an objective to

impose on developing countries a particular measure

of poverty. In every practical case that I know

of, we the international community, the World Bank

in the lead, are treating this issue as one in

which countries have their own means of devising

poverty lines. But the key point is that these

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 234 should be capable of translation by simple

statistical technique into an equivalent dollar-a-

day mechanism so that there can be comparisons

across countries, so that we can aggregate to

regional and global levels.

I cannot emphasize too strongly how

valuable this particular indicator has been in

public discourse on the value of development

assistance, and if we do wish, as I am sure we all

do wish around this table, to see higher levels of

development assistance flowing from the donor

countries, I think it is very important that we

should all agree on the usefulness of the dollar-a-

day indicator in promoting public interest, in

promoting public conviction that development

assistance is useful. This is the indicator which

more, I think, than any other with the possible

exception of the primary education indicator really

mobilizes public opinion in support of development

assistance.

MR. DORYAN: Thank you.

Netherlands, please.

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 235 REPRESENTATIVE OF THE NETHERLANDS [Mr.

Roos] : Two things, Mr. Chairman. I would like to

come to the rescue of our American colleague. I

have the impression that he feels there is a need

for the U.S. to come forward with more targets and

more indicators. Nobody is asking for that, and

basically, we would ask the U.S. to calm down a bit

and do with a little bit less, because the amount

of indicators and targets that you have is I think

madness and is not manageable and might drown the

whole USAID ship.

That is one--so keep it simple, please.

That is an advice I would like to give to all of

us. I think 21 is enough. It is 3 times 7--3 is a

holy figure, and that means that for every day in

the week, we have a trinity. That must be enough.

Now, if there is need with our partners to

have more things to measure and to monitor, I think

then it is a national need they have, and they

could embed that in their national structure, in

their PRSP process, and they can ask us to support

that. If they need more indicators, they can

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 236 develop them and let us stop pushing that kind of

idea on a broader basis than just in the national

process.

Fourthly, our previous Minister for

Development Cooperation had on his desk for about 6

years a list of one and a half pages full with one

line per quantitative target. They were all

invented by him in the past. I made that list, and

it irritated me immensely. At the end of his term,

I think he had thrown about 25 percent of that list

out and had reduced it. His successor took the

whole paper and threw it out the window. There is

only on quantitative target he has, and that is the

volume of assistance that we provide, and that is

enough for us.

Thank you very much.

MR. DORYAN; Thank you.

The objective of today was to share

experience, and get the framework ready for a much

more in-depth discussion at the country level. But

I think there are a few things that we should

probably keep in mind as we to go on the next, much

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 202 5 6-666 ah 237 more socially-related activities.

One is that indeed this is a process that

implies a rethinking by all the agencies,

bilaterals and countries, about what are the

building blocks of our mutual work and our

partnerships in the future. So I think this is a

process, as was very well expressed by the ILO

representative, what we do and how we partner, and

what is the specific contribution of everyone--and

that includes not only the governments, but also

civil society, et cetera. So we are thinking about

how we can move forward.

Second, the element of benchmark I think

can contribute to overcome some of the issues

between the country and the global element.

And finally, in the technicalities of the

goals themselves, let us try to be as simple as

needed, as Einstein used to say, because there is a

political economy component in this discussion as

well, so we should be as robust and coherent from a

technical point of view, but without losing that

element to make it happen which is, I'm sure, the

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 238 aim of all of us.

I will hand it over to Eric now for some

administrative announcements and to tell us what is

going to happen next.

MR. SWANSON: We are the guests of the IMF

tonight for a reception and dinner. The reception

starts at 7:00, and the dinner will follow at 8:00.

The IMF building, for those of you who

haven't been here before, is directly across 19th

Street, and we will go in the main entrance there.

The Executive Dining Room is on the next level up.

Please make sure that you wear your badges

and also keep them for tomorrow, because this is

your pass for getting into the building, so you

will need them tonight when you go to the Fund, and

you will need them tomorrow morning when you come

back into the Bank.

Tomorrow morning, we will reconvene here,

and coffee will be out before 8:30 if people want

to show up early, and we will try to begin our

session at about 8:45 tomorrow with a charge to the

group to go off into three breakout groups to

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 (202) 546-6666 ah 239 discuss individual country experiences.

Unlike this afternoon, we have actually

organized which group you are going to, and that

list is probably already outside on the table--if

it is not there now, it will certainly be there

first thin gin the morning, so pick up the list,

see where your group is, and I hop you will be

content with your assignment.

Are there any questions about arrangements

or what happens next, or have you lost anything?

[No response.]

MR. SWANSON: You can leave papers here in

the conference room overnight. That is not a

problem. I would take your other stuff with you.

We'll see you across the street at the IMF

in a bit.

[Whereupon, at 6:15 p.m., the proceedings

were adjourned to reconvene on Tuesday, March 20,

2001, at 9:00 a.m.]

MILLER REPORTING CO., INC. 735 8th STREET, S.E. WASHINGTON, D.C. 20003-2802 202 546-6666