SINGAPORE, Sept 18: Provision of social security nets in least developed countries and in emerging markets in volatile regions is an issue of permanent concern with the World Bank and is embedded in the commitment of the world to achieve millennium development goals.
Chairman of the Development Committee Alberto Carrasquilla said this while talking to Dawn. On conclusion of the development committee meeting, Mr Carrasquilla informed the press of several initiatives that have been worked on to address the development agenda. A communique of the committee was also circulated. He was accompanied by the World Bank President Paul Wolfowitz and IMF Managing Director Rodrigo Rato.
He said the pledges made last year to substantially increase the volume of official development assistance, including a doubling of aid to Africa by 2010, must be met. “We urged donors who have not done so to make concrete efforts towards the target of 0.7 per cent of gross national income as ODA in accordance with their commitment”.
Responding to a question after the briefing, Mr Wolfowitz named US as a major defaulter to the commitment.
On the issue of World Bank’s proposed governance and anti-corruption strategy and the priorities for its evolving engagement with middle-income countries, there was a heated debate in the committee, a source in the IMF who attended the meeting told Dawn. There is a concern amongst countries including India that anti-corruption standards could be used to stiffle assistance to developing economies.
“We agree that good governance and anti-corruption are important, but we ought not to allow them to obscure or negate the overall development agenda”, says P. Chidambaram in his position paper that was made available before the conclusion of the meeting.
“It was UK that took a position on the issue and debated it vigorously along with other finance ministers from developing countries including India, our source confirmed.
“We discussed proposed governance and anti-corruption strategy”, said Carrasquilla. The committee also discussed progress reports on investment framework, clean energy development, the Doha round, Aid for trade and education for all fast track initiatives,” he said
He said it was agreed in the meeting to promote good governance that are critical to successful development and poverty reduction and helping members on the issue to achieve millennium development goals.
“The committee strongly endorsed the statement of the bank’s corporate role and mission to eradicate poverty in partnership with middle income countries. We welcomed the bank’s proposals to deliver better and more flexible country partnership strategies, reflecting the diverse circumstances, especially in middle-income countries; the reduction in cost of doing business with the bank; the simplification in loan pricing mechanisms; the development of new ways to help countries facing external shocks; the increased provision of free experts’ services, taking advantage of the bank’s enormous knowledge; the scaling of bank’s lending to sub-national entities.
“Finally the committee encouraged the bank to develop a menu of options to respond to country demand-driven initiatives for targeted blending of concessional-donor support with multilateral development bank loans in cases of market failures or where there are affordability issues.
