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A Shared Future Reducing Global Poverty

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ASHARED FUTURE REDUCING GLOBAL POVERTY A Statement by the Research and Policy Committee of the Committee for Economic Development A SHARED FUTURE REDUCING GLOBAL POVERTY A Statement by the Research and Policy Committee of the Committee for Economic Development Library of Congress Cataloging-in-Publication Data Committee for Economic Development. Subcommittee for Globalization. A shared future : reducing global poverty : a statement on national policy by the Research and Policy Committee of the Committee for Economic Development. p. cm. Includes bibliographical references. ISBN 0-87186-145-3 1. Poverty—Developing countries. 2. Developing countries—Economic policy. 3. Economic assistance—Developing countries. 4. Economic assistance, American—Developing countries. I. Committee for Economic Development. Research and Policy Committee. II. Title. HC59.72.P6 C66 2002 338.9'009172'4—dc21 2002067427 First printing in bound-book form: 2002 Paperback: $15.00 Printed in the United States of America Design: Rowe Design Group COMMITTEE FOR ECONOMIC DEVELOPMENT 261 Madison Avenue, New York, N.Y. 10016 (212) 688-2063 2000 L Street, N.W., Suite 700, Washington, D.C. 20036 (202) 296-5860 www.ced.org CONTENTS RESPONSIBILITY FOR CED STATEMENTS ON NATIONAL POLICY iv PURPOSE OF THIS STATEMENT vii CHAPTER 1: SUMMARY, FINDINGS, AND RECOMMENDATIONS 1 Findings 2 Recommendations 3 CHAPTER 2: INTRODUCTION: ECONOMIC INTEGRATION AND POVERTY REDUCTION 8 Open Markets Foster Economic Growth 8 Current Efforts to Reduce Poverty 11 The Need for a Long-Term Perspective, Realistic Expectations, and Prompt Action 15 The Need for Leadership and Support from Developed Countries 15 CHAPTER 3: THE NEED FOR POLITICAL LEADERSHIP AND INSTITUTION-BUILDING IN DEVELOPING COUNTRIES 18 Local Problems Need Local Solutions 18 Transparent Government and the Elimination of Corruption 19 CHAPTER 4: THE NEED FOR SOUND ECONOMIC POLICIES 24 Appropriate Macroeconomic and Microeconomic Policies 24 The Benefits of Open Markets for Trade and Investment 25 CHAPTER 5: BEYOND OPEN MARKETS: INVESTING IN PEOPLE 33 Education for All 35 Health 38 CHAPTER 6: FINANCING FOR DEVELOPMENT 48 A Perspective on Official Development Assistance 49 Conclusion 54 ENDNOTES 57 MEMORANDA OF COMMENT, RESERVATION, OR DISSENT 60 OBJECTIVES OF THE COMMITTEE FOR ECONOMIC DEVELOPMENT 61 iii RESPONSIBILITY FOR CED STATEMENTS ON NATIONAL POLICY The Committee for Economic Develop- ing specific legislative proposals; its purpose is ment is an independent research and policy to urge careful consideration of the objectives organization of some 250 business leaders set forth in this statement and of the best means and educators. CED is nonprofit, nonparti- of accomplishing those objectives. san, and nonpolitical. Its purpose is to pro- Each statement is preceded by extensive pose policies that bring about steady eco- discussions, meetings, and exchange of memo- nomic growth at high employment and randa. The research is undertaken by a sub- reasonably stable prices, increased productiv- committee, assisted by advisors chosen for their ity and living standards, greater and more competence in the field under study. equal opportunity for every citizen, and an The full Research and Policy Committee improved quality of life for all. participates in the drafting of recommenda- All CED policy recommendations must tions. Likewise, the trustees on the drafting have the approval of trustees on the Research subcommittee vote to approve or disapprove a and Policy Committee. This committee is di- policy statement, and they share with the rected under the bylaws, which emphasize Research and Policy Committee the privilege that “all research is to be thoroughly objec- of submitting individual comments for publi- tive in character, and the approach in each cation. instance is to be from the standpoint of the general welfare and not from that of any The recommendations presented herein are special political or economic group.” The those of the trustee members of the Research and committee is aided by a Research Advisory Policy Committee and the responsible subcom- Board of leading social scientists and by a mittee. They are not necessarily endorsed by other small permanent professional staff. trustees or by nontrustee subcommittee members, The Research and Policy Committee does advisors, contributors, staff members, or others not attempt to pass judgment on any pend- associated with CED. iv RESEARCH AND POLICY COMMITTEE Co-Chairmen PATRICK W. GROSS RONALD R. DAVENPORT CHARLES R. LEE Founder and Chairman, Executive Chairman of the Board Chairman and Co-Chief Executive Officer Committee Sheridan Broadcasting Corporation Verizon Communications American Management Systems, Inc. JOHN DIEBOLD ALONZO L. MCDONALD BRUCE K. MACLAURY Chairman Chairman and Chief Executive Officer President Emeritus John Diebold Incorporated Avenir Group, Inc. The Brookings Institution FRANK P. DOYLE NICHOLAS G. MOORE Retired Executive Vice President Chairman Emeritus Vice Chairmen GE PricewaterhouseCoopers IAN ARNOF T.J. DERMOT DUNPHY STEFFEN E. PALKO Retired Chairman Chairman Vice Chairman and President Bank One, Louisiana, N.A. Kildare Enterprises, LLC XTO Energy Inc. ROY J. BOSTOCK CHRISTOPHER D. EARL CAROL J. PARRY Chairman, Executive Committee Managing Director President 3 B/Com Group, Inc. Perseus Capital, LLC Corporate Social Responsibility CLIFTON R. WHARTON, JR. W. D. EBERLE Associates Former Chairman and Chief Executive Chairman VICTOR A. PELSON Officer Manchester Associates, Ltd. Senior Advisor TIAA-CREF EDMUND B. FITZGERALD UBS Warburg LLC Managing Director PETER G. PETERSON Woodmont Associates Chairman HARRY L. FREEMAN The Blackstone Group Chair NED REGAN REX D. ADAMS The Mark Twain Institute President Dean RAYMOND V. GILMARTIN Baruch College The Fuqua School of Business Chairman, President and Chief Executive JAMES Q. RIORDAN Duke University Officer Chairman * ALAN BELZER Merck & Co., Inc. Quentin Partners Co. Retired President and Chief Operating BARBARA B. GROGAN LANDON H. ROWLAND Officer President Chairman, President and Chief Executive AlliedSignal Inc. Western Industrial Contractors Officer * PETER A. BENOLIEL RICHARD W. HANSELMAN Stilwell Financial Inc. Chairman, Executive Committee Chairman GEORGE RUPP Quaker Chemical Corporation Health Net Inc. President FLETCHER L. BYROM RODERICK M. HILLS Columbia University President and Chief Executive Officer Chairman ROCCO C. SICILIANO MICASU Corporation Hills Enterprises, Ltd. Beverly Hills, California DONALD R. CALDWELL MATINA S. HORNER MATTHEW J. STOVER Chairman and Chief Executive Officer Executive Vice President President Cross Atlantic Capital Partners TIAA-CREF LKM Ventures JOHN B. CAVE H.V. JONES ARNOLD R. WEBER Principal Managing Director President Emeritus Avenir Group, Inc. Korn/Ferry International Northwestern University CAROLYN CHIN EDWARD A. KANGAS JOSH S. WESTON Chairman, Commtouch Chairman and Chief Executive Honorary Chairman Chairman, Kindmark Officer (retired) Automatic Data Processing, Inc. A. W. CLAUSEN Deloitte Touche Tohmatsu DOLORES D. WHARTON Retired Chairman and Chief Executive JOSEPH E. KASPUTYS Former Chairman and Chief Officer Chairman, President and Chief Executive Officer BankAmerica Corporation Executive Officer The Fund for Corporate Initiatives, Inc. JOHN L. CLENDENIN Global Insight, Inc. MARTIN B. ZIMMERMAN Retired Chairman CHARLES E.M. KOLB Vice President, Governmental Affairs BellSouth Corporation President Ford Motor Company GEORGE H. CONRADES Committee for Economic Development Chairman and Chief Executive Officer ALLEN J. KROWE Akamai Technologies, Inc. Retired Vice Chairman Texaco Inc. *Voted to approve the policy statement but submitted memoranda of comment, reservation, or dissent. See page 60. v SUBCOMMITTEE ON GLOBALIZATION Co-Chairs MATTHEW NIMETZ Non-Trustee Members Partner EDMUND B. FITZGERALD General Atlantic Partners, LLC RAYMOND OFFENHEISER Managing Director President Woodmont Associates CAROL PARRY Oxfam America President PAULA STERN Corporate Social Responsibility FRANK VOGL President Associates President The Stern Group, Inc. Vogl Communications, Inc. DONALD K. PETERSON President and Chief Executive Officer Special Guest Trustees Avaya Inc. ARNOLD B. POLLARD NANCY BIRDSALL REX D. ADAMS President and Chief Executive Officer President Dean, The Fuqua School of Business Chief Executive Group Center for Global Development Duke University GEORGE F. RUSSELL, JR. JAMES BEARD Sunshine Management Services, LLC Advisors President STEPHEN STAMAS Caterpillar Financial Services Corp. RALPH D. CHRISTY Chairman J. Thomas Clark Professor THOMAS D. BELL, JR. The American Assembly Chairman and Chief Executive Officer Department of Agricultural, Resource, Cousins Properties FREDERICK W. TELLING and Managerial Economics Vice President Corporate Strategic Cornell University * THOMAS J. BUCKHOLTZ Planning & Policy Division ISAIAH FRANK Executive Vice President Pfizer Inc. Beyond Insight Corporation William L. Clayton Professor of STOKLEY P. TOWLES International Economics LINDA M. DISTLERATH Partner The Johns Hopkins University Vice President, Global Health Policy Brown Brothers Harriman & Co. Merck & Co., Inc. ROBERT LITAN MARGARET S. WILSON Vice President and Director of W. D. EBERLE Chairman and Chief Executive Officer Economic Studies Chairman Scarbroughs The Brookings Institution Manchester Associates, Ltd. JACOB J. WORENKLEIN JOHN SEWELL HARRY L. FREEMAN Global Head of Project & Sectorial Senior Scholar Chair Finance Woodrow Wilson International Center The Mark Twain
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