Millennium Development Goals:
IMF urges countries to redouble growth drive
IMF Managing Director Dominique Strauss-Kahn, saying the global
economic crisis had set back momentum toward the Millennium Development
Goals (MDGs), urged countries to redouble efforts to get back on track,
arguing that a revival of world economic growth was the key to success.
International Monetary Fund Managing Director Dominique
Strauss-Kahn addresses the Millennium Development Goals
Summit. AFP |
Saying that the ultimate goal was a world free of poverty and
conflict, Strauss-Kahn said in an address to the United Nations General
Assembly that before the global crisis, many developing countries had
achieved strong growth and stability, mainly driven by ‘good homegrown
policies, but supported by an enabling international environment.’
But the financial crisis and earlier food and fuel crisis had set
back momentum. As a result, about 70 million fewer people will have
escaped from the ‘chains of poverty by 2020,’ he said. And many millions
more will suffer the consequences of prolonged unemployment and
underemployment.
He urged countries to redouble efforts to get back on track. “For
this to happen - and this is my main message today - everything hinges
on the restoration of balanced, sustainable, global growth. Without
this, all other efforts to achieve the Millennium Development Goals will
be frustrated. We will be treading water against a rapidly advancing
tide.”
Sense of urgency
Strauss-Kahn, addressing a gathering of world leaders on the MDGs in
New York, said that to regain the momentum, “we need a sense of shared
responsibility between the various actors - the developing countries
themselves, the advanced economies, and the international institutions.”
The advanced economies and leading emerging markets should focus
first and foremost on securing a sustainable global recovery, and
getting the growth engine up and running again. Analysis undertaken by
the IMF and World Bank for the G-20 has shown that cooperative action by
the world’s major economies could produce real results - boosting world
growth by 2 and a half percentage points over five years, creating 30
million new jobs, and lifting 33 million people out of poverty.
“This talk of cooperation is not just a mantra, it is real, it is
essential, and it affects people’s lives,” Strauss-Kahn said.
In his own speech, UN Secretary-General Ban Ki-moon urged world
leaders attending the United Nations summit on the MDGs to turn what he
dubbed “a blueprint for ending extreme poverty” into reality by
providing the necessary investment, aid, and political will to help the
planet’s most vulnerable.
“There is no global project more worthwhile,” Ban told the nearly 140
heads of state and government taking part in the three-day meeting at UN
Headquarters in New York. “Let us send a strong message of hope. Let us
keep the promise.”
The high-level meeting of the General Assembly is being held to take
stock of the progress so far toward the MDGs - which include slashing
poverty, combating disease, fighting hunger, protecting the environment,
and boosting education - and to determine what else needs to be done to
reach the goals by their target date of 2015.
Keeping promises
Strauss-Kahn emphasized that advanced economies should keep earlier
promises made to substantially boost aid to developing countries and to
open up trade. “Exports have the ability to unleash a wave of
productivity and growth in developing countries,” he added.
The developing countries, he argued, must also help themselves, which
means building on past success. Because they built the levies during
good times, they were able to lessen the economic hardship when the
crisis arrived. They had the fiscal room - and sometimes the monetary
room - to support their economies and help vulnerable people withstand
the shock.
“They must now rebuild their policy buffers to be ready for the next
shock, including by mobilizing domestic tax revenue. This will create
room to invest in infrastructure and strengthen social safety nets, to
accelerate growth and protect the poor and vulnerable.”
The international financial institutions must also play their part.
During the crisis, the IMF rapidly increased its support for low-income
members - quadrupling its lending, with zero interest rates, and with
streamlined conditionality. These efforts were designed to support
growth - sustained, pro-poor, inclusive growth - which is the priority.
President of the World Bank Robert Zoellick, who work jointly with
the IMF, pledged to mobilize substantial new investments in a wide range
of sectors to help countries close the gap and achieve the MDGs.
“We are focusing particularly on ‘The Access Agenda,’ ” Zoellick
said, ”helping to ensure access to basic health, quality schooling,
clean water, energy, food, and jobs - looking, not just at the numbers,
but at the quality of services.”
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