Dräger Foundation in cooperation with The World Bank Public Disclosure Authorized XIII Malente Symposium XIII Public Disclosure Authorized XIII XIIIXIII Strategies to Fight Poverty in Middle-Income Public Disclosure Authorized Countries June 26-27, 2001 Lübeck Music and Congress Centre Public Disclosure Authorized XIII XIII Malente Symposium Strategies to Fight Poverty in Middle-Income Countries On 26 and 27 June 2001 the Dräger The opening speech, given by Saskia though the primary responsibility for Foundation in cooperation with Sassen, Professor of Sociology at the poverty reduction will lie with the the World Bank organized the XIII University of Chicago, focused on middle-income countries themselves. Malente Symposium. These symposia causes, dimensions, and special fea - – still bearing the name of a small tures of poverty in middle-income Speeches and discussions showed that town in North Germany where they coun tries, among others she ad - there is no panacea for poverty reduc - were first staged – have taken place dressed the problems which globali - tion in these countries – too hetero ge- at 2-3 year intervals since 1981 and zation has raised for poor people neous are the countries and are the address topical economic and socio - in these countries. The following causes of poverty. What was agreed political issues which are discussed – sessions dealt with ways and means upon, however, was the necessity of a often controversially – by international for poverty reduction on national "dual strategy": On the macroeco no - participants from politics, business and international levels. Among the mic level, middle-income countries and science, from international speakers who presented the perspec - should set up the prerequisites for organizations and NGOs. tives of countries concerned were growth by good governance and broad Josefina Vázquez Mota, Mexican educational programs while on the This year's topic "Strategies to Fight Minister for Social Development, micro level they should fight poverty Poverty in Middle-Income Countries" Pavel Mertlik, former Czech Minister by the support of local resources. One is not only of particular interest to the of Finance, and Boris Nemtsov, of the most striking challenges of international community and to the member of the Russian Duma and poverty re duc tion remains the issue international organizations like the Chairman of the faction "Union of of suitable tools which will lead to a World Bank, but also to Germany and Right Forces". measurable success. As Dieter the European Union. The potential Feddersen said in his farewell for poverty in the middle-income In his concluding speech, Johannes remarks, poverty reduction will coun tries is considerable, some 40 Linn, Vice President of the World require the combination of political percent of all the world's poor – living Bank for Europe and Central Asia, will, of eco no mic knowledge, of on less than 2 US$ per day – live in took up specific issues raised during educational and techno logical skills, this group of countries. Moreover, it the two conference days. In parti - and of social sensitivity. is not only countries in Latin America, cular, he focused on a number of Asia, the Middle East or North Africa dichotomies, or dialectics in per ce p - While this report – with the exception which belong to this group, but also tion, which were revealed in the of Johannes Linn's closing speech – Europe's direct East European neigh - discussions about the best ways to will only summarize highlights and bours, in other words the EU acces - fight poverty in middle-income conclusions of speeches and ensuing sion candidates as well as Russia. countries. discussions, full versions of the papers It was the aim of the conference to presented at the Symposium can be analyze causes of poverty in this In spite of at times quite controversial looked up at the home page of the particular group of countries and to discussions, there was widespread Dräger Foundation at discuss possible solutions. Some 65 agree ment among the participants high-ranking participants from 18 that poverty is "the ultimate systemic www.draeger-stiftung.de or at the countries discussed these issues for threat" to the global community, as attached CD-Rom. two days, many of them came from Michel Camdessus put it. Thus, pov - the countries concerned. Almost 100 er ty has been more and more recog - interested observers followed the nized as a serious global problem and discourse. as a major international task, al - 3 Welcoming Address Ladies and gentlemen, The number of poor people living in middle-income countries varies, It is my pleasure to welcome you, depending on which definition is on behalf of the Dräger Foundation taken. If an average income of less and my fellow board member Dr. than 2 US$ a day is taken as a basis, Christian Dräger, to the XIII Malente then about 40% of all poor people Symposium. I cordially welcome you world wide are living in middle- also in the name of the World Bank, income countries. They have less who supported us in the planning than the equivalent of 5 DM a day to and organization of this Symposium. live on - this is abject poverty which must be even harder to bear in those This year’s Symposium deals with a countries where large differences in very pressing problem. Our topic is income have long existed or are now the battle against poverty in middle- emerging, for instance in the former income countries. According to the socialist countries after their trans - definition of the World Bank, this formation. Another factor is that, group of countries includes a large espec ial ly in times of increasing number of highly heterogeneous econo mic problems with diminishing coun tries in all parts of the world – growth and higher unemployment in Latin America, Asia and Africa, worldwide, inequality and poverty but also in Europe or, more precisely, will be felt even more acutely by the in Eastern Europe. A distinction is poor of this world than in times of made between "lower middle-income high growth. countries" and "upper middle-income countries". The first group includes, At this Symposium we will, however, among others, China, Russia, Turkey, not focus so much on how income Morocco, Romania, Bulgaria, Lithu - inequalities can be removed, but ania and Latvia; the second group on strategies to combat poverty. It is includes for instance the East Euro - true that the link between poverty pean countries which have applied and in equality is rather more pro - for membership of the European nounced in middle-income countries Union in the first expansion talks, than in very poor countries where as well as Argentina, Mexico, South poverty is even more pre do mi nant; Africa and others. however, it applies also to middle- 4 income countries: The battle against We should keep this in mind in these In stitute for International Law of poverty has priority. Let me cite from times of declining economic growth Bonn University, who made valuable an article in the Eco n omist of 14 June and rising unemployment, when even suggestions in deter mining the focus 2001 which deals with the question the rich countries are increasingly of this Symposium. "Does inequality matter?" where it tempted to protect their product and says: "Helping the poor, the truly labor markets against undesired com - We also thank DaimlerChrysler AG, poor, is a much worthier goal than petition from abroad. the Gottfried Daimler- and Karl Benz merely narrowing inequalities. If the Foundation and OCÉ-Deutschland rich get poorer thanks to high taxa - We have gathered here in order to GmbH for their generous support of tion, some people may feel pleased, ex change our thoughts on this and the Malente Symposium. Finally, I am but few are better off. If the poor get other issues in the next two days. We very pleased to announce that three richer, how ever,the whole economy are de lighted that the participants artists from Hamburg, Beatrice Dett - will benefit." and observers of this Symposium have mann, Karin Ohlsen and Angela traveled from nearly all parts of the Preusz, are exhibiting their paintings Reduction of poverty is the ultimate world in order to propose and discuss at this conference. The three artists goal of the World Bank and also re - ideas and approaches to solutions. will be present during the next two quires joint efforts by governments, I welcome all of you cordially to the days. the private economy sector and other XIII Malente Symposium of the international organizations. There Dräger Foundation. Ladies and gentlemen, the Sympo - can be no doubt that the strategies to sium is hereby opened. I am confi - be developed and the solutions to be Before the next speaker takes the dent that the Symposium will be found for middle-income countries floor, please let me express my successful and look forward to two must be different from those for very heart felt thanks to the members of rewarding days. poor countries with high debts, which our Stee r ing Committee: Claudia as a rule do not have access to inter - von Mon bart of the Paris office of national capital markets. the World Bank, Professor Dr. Hans- Dieter Feddersen Joachim von Braun of the Center for Member of the Board "MICs", however, also need help Development Research in Bonn and Dräger Foundation from the international community in Professor Dr. Rudolf Dolzer of the their battle against poverty, which is certain ly also in the interests of the countries providing such help. Ulti - mately, not only will the national econ omies concerned benefit from a reduction of poverty in their coun - tries, but also the global economy. This was already known to econ om - ists and philosophers of the 18th century, such as Adam Smith and David Hume.