Historical archive

Concluding remarks - ABCDE

Historical archive

Published under: Bondevik's 2nd Government

Publisher: Ministry of Foreign Affairs

Concluding remarks - ABCDE

By Hilde F. Johnson, Minister of International Development, Norway

According to Joan Robinson, A man of words and not of deeds is like a garden full of weeds. During these three days, you have planted seeds that will yield a harvest.

The insights and knowledge that you have generously shared and debated must now guide our concrete action to eradicate poverty. We need knowledge, to constantly improve our understanding and our action. We need to monitor and evaluate what we are doing. We need you, researchers, NGO representatives, development workers, from all over the world – more than 73 countries have been represented – to correct us, to inspire us, to guide our actions, to help us shape the right policies, to eradicate poverty.

I hope that you have inspired the World Bank to take one step further towards pro-poor policies. You certainly have inspired me. I have seen many faces from the Ministry here during the three days of the conference, and I am sure that they have gained lots of new knowledge and inspiration from participating.

This conference has underlined the complexity of the development process. There is clear evidence that development aid can make a difference, but as Nick Stern’s intervention vividly showed us, development aid in general only constitutes a minor part of the GNP of developing countries. Foreign assistance can only stimulate evolving national processes.

The importance of national poverty reduction strategies as a common framework for action has been stated over and over again. It is through the PRSPs that we must confront the crucial dilemmas and contradictions that need to be addressed as we go. The conference has made a significant contribution to our understanding of how to cope with these challenges.

One of the central points in the PRSP discussion on Monday was that poverty eradication is the main goal of the World Bank and the IMF in supporting the developing countries. It is the goal that must guide the whole spectre of our advice and support, including advice on structural reforms. Allocating more resources to education, health and the social sectors – will lift millions out of poverty. But we need to be assured that the macro-economic policies do not undermine that, and contributes to reduce poverty. That is why the Social Impact Analysis-tool being installed is so important. Maybe this tool and individual cases in this regard could be an important topic for discussion at next year’s ABCDE-conference.

The PRSP has been adopted by most development actors, although it is too early to judge whether the PRSP-approach has been successful. It is still under formation. The researchers at the conference have underlined that the PRSP has contributed to open the dialogue on development strategies, and ensured that debt relief has gone to major investments in human resources and poverty reduction. For us, the donors, to ensure fully fledged country ownership of the development process - and for the countries to claim that leadership – is something that will not happen overnight. But it is imperative! We have to get there, and get there soon.

I have sensed broad support at the conference for the importance of policy coherence, not least on the part of the rich countries. The importance of policy coherence to reach the Millennium Development Goals is also reflected in the Norwegian Action Plan for Combating Poverty in the South towards 2015. ODA is only one part of our development policy.

Trade, investments and sectoral policies must also be pro-poor. Finn Tarp just referred to the Age of Complementarity in development assistance, and I am in full agreement with Finn that we need a better understanding of the interplay between public and private investment in developing countries. Through multilateral initiatives we can exploit the complementarities between development assistance, Foreign Direct Investment and trade. Here there is also a challenge on the supply-side, particularly in the LDCs. We need not only Aid and Trade, but also Aid for Trade -.

Not least the evidence brought forward by the Bank shows the crucial role of trade in creating development. This is why we will give zero-tarif market access without exception to all LDCs on July 1 st>. Trade has many aspects: it is not only a matter of market access for the poor – export subsidies in rich countries are equally important. This has to be addressed! We have to ensure that the Doha Development Round becomes exactly that – deliverables for development for the poor countries.

What happened here during these three days should have both immediate and longer-term effects. Our knowledge has increased. Our ability to make the right decisions, to take the right choices has improved. Gradually, starting today, this knowledge will become part of our policies for poverty eradication.

Mobilisation of the civil society, together with progressive development and finance ministers – and often also the leadership of the Bank has contributed to significant change in development the last 3 - 5 years. We’ve seen several breakthroughs:

The breakthrough in debt-relief at the Millenium, providing 40 billion USD in debt cancellation to 26 countries. We’re not there yet, and we have to push further, not least on the structural side and on speed. But it is significant;

The breakthrough in agreement on the Millenium Development Goals, joined in also by the IMF, the World Bank and the WTO. We’re not there yet, - in getting poverty reduction to determine priorites throughout the institutions – and in practice, but the change underway is still significant.

The breakthrough on the financing for development at Monterrey, agreeing not only on the goals, but also the means. Now the trend of decline in ODA is reversed, and we are getting 20 – 25 % increase the next years. Far from enough, but it is till significant.

The breakthrough in the trade framework, the Doha Development Round. This has to be negotiated – and delivered, but the outline is new and significant. I hope for an equally strong civil society mobilisation in trade, for a more just global trade system one that will not be biased against the poor countries, and for market access to our markets.

We’ve just started. There is more work to do, more reforms, more poicy change, more deliverables, more resources – to get there – and to reach the Millenium Development Goals.

I would like to thank all of you for making this conference a success. You participating here, bringing your knowledge and experience with you and contribute to the brain gain of us all. Everyone involved in the organising of the conference, at the World Bank, at the Ministry and at the hotel, everyone who has made sure that things have been running smoothly. I would like to thank the Norwegian police for their effort to protect the freedom of speech both at the ABCDE and in the streets of Oslo.

I would like to thank the 10.000 people who marched in the street on Monday. 10.000 people who want to fight poverty. Their engagement is needed. Disagreement about some of the means, on how to get there is a minor issue. What we saw in the streets Monday, was primarily commitment for the world’s poor. What we saw Monday was strong and heartfelt commitment to the poverty eradication. Nothing could be more welcome. We all share these goals, and the more people are engaged in reaching them, the greater are the chances that we will.

The conference has been a strong manifestation of a commitment to poverty reduction and eradiction – shared by the conference participants, the World Bank and the protesters alike. And as I said in my dinner speach on Monday, referring to the World Bank study – "Voices from the Poor". Their exclusion is our moral challenge. Let us leave this conference with a commitment to ensure that five years from now there are fewer voices of the poor – and that their voices will sound differently.

Thank you for your attention.