The meeting communiqué welcomed evidence of a strengthening global economy, but noted that the Development Committee’s concern that overheating in some sectors, especially food and energy was resulting in price pressures and volatility, putting developing countries and especially their most vulnerable populations at risk.
The Committee pledged to stay alert to the economic challenges arising from natural disasters, conflict and social unrest and to remain committed to ensuring sustainable, balanced and inclusive growth and providing timely, effective support where needed.
The communiqué noted that recent events in parts of the Middle East and North Africa would have lasting social and economic impacts, which will differ from country to country.
In this context, the Development Committee, known formally as the “Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the Transfer of Real Resources to Developing Countries”, welcomed the World Bank Group (WBG) and IMF engagement and advice, including programme and policy support for jobs, social safety nets, fiscal management, governance, promotion of private sector development and other critical areas.
Commending the role of the international financial institutions in helping countries prevent and weather crises, the Development Committee welcomed the unprecedented sixteenth replenishment of the International Development Association (IDA) and the approval of the International Bank for Reconstruction and Development (IBRD) capital increase. It also appreciated the new dedicated Crisis Response Window to strengthen IDA16’s capacity to respond rapidly when member countries are hit by economic crises or natural disasters. All of these additional resources will help the WBG to continue to support member countries in their fight against poverty.
The fact that two thirds of developing countries are on target or close to being on target for reaching the Millennium Development Goals was welcomed. However, the communiqué qualified progress achieved as mixed and slowing down in places due to the global economic crisis and the recent food and energy price increases. The Development Committee pledged to intensify its efforts to achieve results by 2015, especially in lagging regions and fragile states, and to protect progress by building resilience to economic and environmental shocks.
The Committee expressed concern over high and volatile international food prices and their impact on vulnerable populations, as well as the longer term risks they pose to growth and poverty reduction. The Committee welcomed “the responsiveness of the WBG, working with partners including the G20, to help address short-and long-term challenges related to food security and price volatility”.
The Committee’s next meeting is scheduled for the 24th of September 2011 in Washington DC.