WASHINGTON (Thomson Financial) - The Development Committee of the World Bank and International Monetary Fund said focusing on development in Sub-Saharan Africa and conflict-affected states needs to be a 'key element' of the World Bank's mission of promoting growth and reducing poverty.
The communique, issued in Washington today on the heels of the G7 finance ministers' and IMF meetings, added that the Bank must also remain 'relevant' to middle income countries, and said private sector growth is key to development.
'We emphasized the need to sharpen the focus of poverty reduction strategies on stronger, shared, private sector-led growth, to link these strategies better to budgetary frameworks, and to implement them effectively,' the communique said.
At the same time, the document indicated that funding for the International Development Association (IDA), which gives grants and loans aimed at boosting growth in poor countries, needs to be replenished in order for World Bank activities to be successful.
Speaking to reporters today, World Bank president Robert Zoellick said he feels 'positive momentum' that the IDA fund will be replenished by the end of the year, but said more work needs to be done to ensure this goal is met.
The Development Committee's communique also welcomed efforts by the World Bank to promote and fund the use of clean technologies in developing countries, something Zoellick said he would continue to explore at the Bank.
However, the lack of anything concrete from the weekend's meetings was criticized by NGOs. Oxfam said it was 'very disappointing to see no concrete results coming out of this weekend that will lead to poverty reduction', while ActionAid said: 'We've seen a lot of talking this weekend, but hot air won't help the poor.' pete.kasperowicz@thomson.com pik/wash/ro COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.