[Mr. Kofi Annan, Secretary-General of the United Nations; James Wolfensohn, President of the World Bank; Horst Köhler, Managing Director of the International Monetary Fund; Mike Moore, Director General of the World Trade Organization]
SG: Good afternoon, ladies and gentlemen. Needless to say, I am very happy to see you all here and we are very happy to be here in Monterrey. We are here at last, discussing all the different aspects of the global economic monetary and financial system, with a view to giving developing countries a real chance to trade their way out of poverty.
I have made clear this morning that we can no longer continue to give with one hand and take with the other. We must work together in a coherent fashion if we want to achieve our goal. What makes this Conference unprecedented is not only the presence of finance ministers, businessmen and ministers of development, but also the way the United Nations, the World Bank, the IMF, and the World Trade Organization have worked together in preparing the Conference.
This partnership is essential if we are to win the battle of development. And I am confident that in the months and years ahead, we will sustain it. That is why I am pleased to share this platform with the leaders of the three Organizations, Jim Wolfensohn, Horst Köhler and Mike Moore. We will now take your questions.
Q (Financial Times): Could I ask, apart from the fact that we have now got a bit more money for it, what do we now know about development that we didn't know a week ago before the conference began?
Mr. Wolfensohn: I think what we know is that there is now a unity of purpose between the leaders of the developed countries and the developing countries, that we should treat this as a joint issue, and I think that what is coming out in the communiqué and in the Consensus is that this partnership is not only recognized but that we're going to act on it, and that the areas in which we should act are, in terms of capacity building, trade and increased development assistance with each side bearing its responsibility. And I think that while we knew that before the Monterrey meetings, the fact that we have come together and acknowledged and agreed to move forward is a tribute to the Secretary General and those who have organized this Conference.
Mr. Kohler: I would like to add, what is new indeed, at least as I see it here, that the chairmanship of the Secretary General, the heads of the World Bank, the IMF and the WTO are giving this press conference, I think this is unique up to now and should tell you something.
Q (Brazilian Daily, Folho da Sao Paulo): I would put my question to all of the four. You are talking about financing for development, there is a document about Financing for Development, but there is a country right now that just needs finance for survival, I mean Argentina. The international community just keep looking the meltdown, is just keep looking the meltdown of the country, or can it act right now to help the Argentinians to solve their crisis?
Mr. Kohler: I don't think that the international community is just observing Argentina. For the part of the IMF, we are in a working relationship with Argentina. We know that the situation is very difficult. We are concerned about the social dislocation, and our staff at the IMF and the staff of the Argentine authorities are working hard to find a way out of the crisis. But I also have to say, there is no one, neither in Argentina, nor at the IMF nor any other place, where the quick fix for very, very complex situation, and clearly the primary responsibility to define the way out of the crisis lies with Argentina itself. The IMF is very committed to continue its work. There have been some first steps, promising steps in the right direction, and I look forward to continue this work in process.
Mr. Wolfensohn: From the point of view of the Bank, we are very supportive of what the Fund and the Argentine authorities are doing, and we've told them that when they reach their agreement we will provide resources and support on the social and on the poverty areas. But we are very supportive of the discussions, which I think are very constructive, but which require a number of changes, which are being negotiated.
SG: Obviously, from what you've heard, you realize that we do not consider the crisis in Argentina as merely a financial problem. It does have impact on real people, and I think we are all concerned about the social and political aspects of what's going on in Argentina. And we will have the chance, of course, of speaking to the President here. But there is quite a lot of sympathy and support for Argentina. But the leadership and some of the key steps will have to be taken by Argentina, and the international community is ready to support, and I think you've heard from our two friends from the financial institutions, and we are all ready to help.
Mr. Moore: From the point of view of the WTO, all we can say is that, take encouragement that we must conclude the Doha development round on time, in January 2005. Our friends the Argentines say, that agriculture subsidies are costing them around 5 billion dollars a year. They are competitive. You are from Brazil. Your Agriculture Minister tells me he has 14 million hectares of land, without cutting a tree down, they could get into production, if there would not be these subsidies. And agriculture is just one serious issue. But if we could get this down within the three-year timeframe, that would return to developing countries up to five times more than the ODA, all of it; eight times more than the debt relief granted thus far. So that's agriculture. If you look at other areas of liberalization that could be achieved in the Doha Development Round, we could return magnificent results for the poor. All praise to the UN and the Secretary General for the Millennium goals. 54 billion dollars would satisfy those goals. That would be about a third of what would be returned if the Doha development round came in on time. For me, this week has reasserted my conviction and enthused our team, that internationalism is alive and well, that the world community can act in concert, and must act in concert because the customers of the future for the rich countries are the poor of today, not only from a point of view of social justice and morality, in terms of self interest, security, and development, we are all in this together.
Q (German Radio): Mr. Secretary General, even after the modest increase, in Washington and in some countries in Europe, increasing to spend more ODA, it is still a big gap. You mentioned that in your speech this morning. How are you going to collect the rest, if not just through hope? And a little question to the other gentlemen, if it's not just P.R., if it's not just coming together once in a while, what's the substantial change in your behavior towards the problems? Is it an instrumental change, would it be more giving out of money or what will it be, just to get an idea?
SG: Yes, obviously, all studies indicate that to meet the Millennium goals we will need additional 50 billion dollars per year. So, your statement that there is a gap is correct. But I hope that, apart from the money that has been given, the policy shift, or the acceptance of the fact that aid is necessary, and the realization by the public that it is in all our interest to help the poor, is going to maintain the pressure on our leaders and politicians to keep assisting the developing nations. So, in effect, apart from the money, there is this major shift in policy in some capitals, which I think over time is going to have an important impact on the work that we are trying to do. In addition to the political leaders who are here, we have quite a lot of business leaders here, who also, we had discussions with them yesterday, not only about direct foreign investment, but how they can work with governments to accelerate the process of development in the developing countries. And, in some cases, leverage some of the aid assistance, the development assistance, to encourage additional investment from the private sector. I will let my bankers speak; they have more to say on this.
Mr. Wolfensohn: I have always believed that in the financial business, that the first check, when you get it written, is the best check. I think what we have seen is an indication on the part of the United States and Europe, that they're prepared to write checks. And they have set out a basis on which they are prepared to do it, which is rational and which is agreed to between the developed and the developing countries. And I would not underestimate that. I think that if we can get started on this increased involvement of the two countries in partnership, which is what is being said here, and it can be across the board on capacity, on trade and on increased ODA, that we are off to a very much better start. Two weeks ago, there was no thought of the increase. Today there is a significance increase, and there's a basis to move forward. And personally, I think that is not a Hollywood step, I think that's a real step.
Mr. Kohler: I would like to add to this, I do think that this Conference is a further milestone to understand official development aid as an investment, in a future for all, because there is, rightly so, a debate about globalization, there is a growing awareness about the interconnectedness of poor countries, rich countries. And based on this, I do think that this Monterrey Consensus will be really a milestone to understand that we need a policy concept to define policy content, particularly also for the global level, and we need to define a concept for global governance, which takes care of public, global public goods. And again, that we are sitting here together, under the leadership of Kofi Annan, should demonstrate to you that there is a process under way to define, to shape, global governance.
Mr. Moore: I can report, and was able, to leaders, that at Doha, when we launched the first development round, that developing countries put conditionality on the rich countries. And their conditionality was, they need to build their institutions, to build their capacity so they could negotiate, participate and implement the results. I can report that we have had a substantial increase in our core budget, that in our Pledging Conference we got twice as much as what was planned, that what is new is the hard work between institutions, that the sister organizations, whether it be the World Bank, an integrated framework, whether it be UNDP, on the ground, whether it's UNCTAD, on special issues like investment, that these partnerships are working. And this gives us credibility with our donors. And where they can see we are being efficient and prudent with their resources, that we are not trying to do it all ourselves, that we are working with others, this entitles us to go back with credibility and seek more resources. The donor countries in my area are keeping their word, the resources are flowing, and I am very appreciative of it. Because unless that happens, there will be no success to this development round.
Q (Reforma /El Norte, Monterrey): My question is, after September 11, the United States put attention, or, the focus is on terrorism now. How to convince the United States and another country to put attention on poverty right now as priority?
SG: I think the fact that we are all here, and this meeting is taking place, is an indication that all the focus is not on terrorism. I have made it clear, that all the problems that existed on 10 September are very much with us. They haven't gone away. And it is even more urgent that we tackle the issues of poverty, of conflict, and this is why we are here. And in five months' time, we go to Johannesburg and continue. And I think this, in a way, answers your question. The conference itself is the best answer.
Q (Al Hayat Newspaper): Your excellencies, you all talked this morning about good governance requirements. Good governance requirements are seen and perceived as very tough by IMF and World Bank in some parts of the world, especially in the developing world. And it is sometimes perceived as political pressure and impossible conditions to be fulfilled by countries. I think here, for example, to a country like Lebanon, Mr. Köhler. It seems that conditions are very tough to endorse the programme, for an aid programme for a country like this. What is your comment on these requirements that are very difficult?
Mr. Kohler: My first comment is that I advise countries, it is our advice to our member countries, that they should not let crisis emerging, so that they are very eager to avoid the build-up, for instance, of macroeconomic instability, through unsustainable debt, through too-high inflation rates, or to, say, the disregard of the need for a competitive economy. So, crisis prevention is the first and foremost important answer to this issue. If we are in a crisis, if there is a need to correct something. There is no way out but to face often tough choices, because even the Fund has not the ability to print money or to promise the heaven on earth. Often it is a need for correction, and this is the issue of conditionality. I do think that the Fund cannot give up, and should not give up, to combine its financing with conditionality. But we should take lessons out of our experience, and this lesson is that we may have asked for too much sometimes in the past to happen nearly overnight. Therefore, the Fund is in a process, reviewing its conditionality concept and focusing conditions of what is really needed in this situation, and give also the country itself an opportunity to discuss alternatives so that this what we call ownership is getting really content. This is our answer to that. I do think that no one should expect there is an institution like the IMF where it's for all quick answers, and even quick fixes. And, therefore, I am always underlining the primary responsibility for the future of a country, of a people, lies with the country itself. And they should be proud that they have this sovereign right.
SG: If I may add, I don't think we should see good governance as something IMF or a bank or an outside force imposes. Good governance is in the interest of every country, in the interest of the people, and above all, in the interest of the poor. If you have strong institutions, strong regulatory systems, and you create an environment in the society that liberates the energies of its people, you are ahead of the game. It is the foundation on which you build sustainable development. If you do not have those institutions and good governance, you may be building on sand. We all can give examples of countries that seem to be doing very well, but crumble because there were no strong institutions, there was corruption and nobody paid attention to that. So, it is in all our interests to ensure that we have good governance, transparent, and respect the rights of our people. Thank you.
Q (USA Radio): This appears to be an apex from Cairo where there was no money. This combines sustainable development, public-private partnership and financing. What has helped facilitate moving the world to this meeting, and this point in time in history?
Mr. Moore: I can answer that. The fact that the Secretary-General has worked so hard, his team have shown vision, and you have the Millennium goals. The Millennium goals were not thought up by some bureaucrat in Geneva, or some do-gooder in New York. They were established by the leaders. And we are simply implementing what the leaders have said in those goals. And the Secretary-General has another conference in Johannesburg, the momentum is gathering. I think this is something to be welcomed and not questioned.
Mr. Kohler: I would like to add, there is, in the run-up of this conference, there was a very careful, comprehensive preparatory process where particularly, also, ambassadors from the United Nations have been involved. And, for instance, the IMF, and I know also the World Bank, have been from the beginning of this idea of a financing for development conference, been involved in this preparation. I myself met twice with the Preparatory Committee of the ambassadors, I met always with Kofi Annan, what at that time was called the ACC meeting, which is now called - what is it? - CEB meeting, that I think means Chief Executive Board, where we discussed these things during the course of the last two years. And the outcome I think is very, very successful.
Q [Translated from the Spanish]: I think that you represent the institutions that can speak to us clearly about the measures or standards required of poor countries to receive assistance.
Mr. Wolfensohn: I think the question was, what are the measures and standards that are required of poor countries to receive assistance, is that correct? Well, those measures and standards are now becoming agreed by both the donors and the recipients. And as the Secretary-General said, there is the initial phase of establishing within a country a framework, a legal system that works, a financial system that works, and a campaign against corruption. And the reason for that, is that if you don't have protection of rights and you have corruption, the poor suffer. That is something that everybody agrees on. The other conditions are to have a plan that is going to get the benefit through to the poor, and that means education and health and proper infrastructure. And it means the acceptance of responsibility in the countries to get the job done, and on the other side, from the developed countries, a recognition of that it will not work unless, as the head of the WTO says, you have markets open for trade and unless you can provide overseas development assistance. So I come back again, that there is no misunderstanding, I think, today, of what is the basis of giving development assistance. I think as was said this morning, the issue is now implementation, and that is the next step going forward from Monterrey. *****