Donors spell out steps to fight poverty

Published January 20, 2002

WASHINGTON, Jan 19: A four-day conference to find ways to improve international poverty reduction efforts ended here on Thursday with a call for open markets for developing country exports and increased level of concessional assistance for countries implementing strong policies.

The call came during the concluding session from International Monetary Fund Managing Director Horst Kohler, who said while success in poverty reduction must be based on the efforts of poor countries themselves, the process could not be a one-way street. The international community had a critical role to play by providing access, reducing subsidies, and by aligning development assistance with national strategies and priorities.

The session was also addressed by World Bank President James D. Wolfenson who said in the post-September 11 world, the need to address poverty had become “not only a moral imperative, not only a social and economic necessity, but also a central concern for everyone striving for national and global security and peace”.

Nearly 200 delegates representing developing countries, donor agencies and civil society groups attended the conference, jointly hosted by the Bank and the IMF. A press release said the poverty reduction strategy papers (PRSP) approach “which stresses the need for national commitment and participation for success in fighting poverty” received broad support from participants.

It was recognized that the PRSP represented an important departure in the way the international development community had traditionally done business.

The press release said there was agreement on the importance of participation, of poor people, civil society, academia, donor agencies, international organizations, as well as of all parts of government, to the success of poverty reduction efforts.

There was general agreement that governments in poor countries would need more resources and technical assistance to craft and implement poverty reduction strategies.

While assistance from developed country donors and international organizations was important, equally vital was information and experience gleaned from other developing countries further along in their fight against poverty.

There was also agreement that donor assistance should be linked to the budget cycle in developing countries to ensure that it is aligned with the priorities set forth in the poverty reduction strategy. “There is unanimous and strong support that the PRSP should serve as a framework for donor assistance,” said one donor, “and a very clear recognition to harmonize and align donor assistance.”