• Home
• /
• Business

IMF-World Bank meetings call for global consensus on development

Addressing the media at the concluding Press conference yesterday, Kaspar Villiger, Swiss Finance Minister and the chairman of the annual meetings said that there have been consensus on the current optimism that the global economy is on a recovery path, however, the positive trend remains very fragile. "In order to enhance growth and to restore confidence policy makers must continue to forcefully pursue structural reforms and reduce fiscal imbalances," he said.

The chairman also noted that the member countries need to work hard towards achieving the Millennium Development Goals by 2015. "Developing countries need to redouble their efforts to promote good policies, while industrial countries need to increase their contribution to finance growth, development and poverty reduction."

Recaping the discussions on the developmental issues during the annual meetings, James Wolfensohn, World Bank President said: "There was a greater sense of balance in the discussions between the developed and developing countries. There was a sense of realism as we approached the issues of trade, aid and debt relief."

Horst Koehler, IMF Managing Director said that he was encouraged by the meetings in Dubai and the view among the governors that the global economy is on a good track of recovery.

"The discussions have underlined that there is a spirit of multilateral cooperation and working together, which I feel is the most important thing this time."

Addressing the divide between the rich and the poor nations on issues such as developmental aid, trade disputes, and debt forgiveness, Villiger said: "The governors regretted the conclusion of the Doha Round (of WTO). A positive signal from Cancun could have played an important role in boosting confidence and raising global growth."

Emphasising the role of greater collaborative efforts, Wolfensohn added: "I believe that we need to address all these questions with urgency and probably with grater scale than we have up to now. I think this was an advance in the discussions and I think we have picked up from Cancun the fact that the voices of the developing and the developed world need to be more equal."

Calling on richer nations to be generous in their contributions for developement financing Koehler said, there is indeed a need for more financing for development adding that even more important than money is the recognition that the rich, poor and the emerging market countries are on the same boat as far as the collective future of the world is concerned.

"There is no longer a way forward for a better world with peace and prosperity if there is not a recognition that there is an independent world and therefore multilateral cooperation, a better balance in the world is needed for the way forward, and the outcome of this meeting is there was a strong encouragement for this approach," Koehler said.

Answering a question on the voting rights of developing countries in the IMF and World Bank, Koehler said that a consensus is possible on the issue. "I very much hope that shareholders from the advanced countries have listened to their colleagues from the developing countries so that they can reflect on the position. I do think that a consensus is possible for all of us, including an increase in basic voting rights for developing countries, " he said.