FROM THE OFFICE OF PUBLIC AFFAIRS

DAVID A. LIPTON

NOMINEE TO BE UNDER SECRETARY FOR INTERNATIONAL AFFAIRS

SENATE FINANCE COMMITTEE

I am honored to be here today in connection with my nomination to be Under Secretary for International Affairs at the U.S. Treasury Department. I am also honored that President Clinton and Secretary Rubin have expressed their confidence in me with this nomination. My wife, Susan Galbraith, and my two daughters, Anna and Sasha, are also here with me today. My four-year old son Gabriel stayed home today so that this hearing could be conducted without disruption.

For the past four and a half years I have served at the Treasury Department, first as the Assistant Secretary for International Affairs and before that as the Deputy Assistant Secretary for Eastern Europe and the Former Soviet Union. Before joining the Treasury Department, I spent a year as a Fellow at the Woodrow Wilson Center for Scholars, four years as an economic advisor helping transition countries establish market-oriented economic systems, and eight years on the staff of the IMF.

The past four and a half years have been a period of robust growth and low inflation worldwide, and thus a very satisfying time to have been at the U.S. Treasury. Perhaps most important, officials in most of the countries of the world now adhere to the "Washington Consensus" of sound fiscal policies and market and outward-oriented economic policies. That being said there have been, and will continue to be many challenges ahead, with the current financial turmoil in Asia as just one example.

If confirmed as Under Secretary, I will work to advance the Administration’s goal of

maintaining U.S. leadership on global economic issues. That work will include:

-- First, working with our G-7 partners to pursue macroeconomic polices consistent with strong rates of growth and low-inflation;

-- Second, pressing the IFIs to support sound macroeconomic policies, strong market-oriented structural reforms, and good governance as conditions through their lending operations, and to make sure that U.S. exporters are able to benefit from MDB procurement;

-- Third, using multilateral fora to encourage countries to pursue sound macroeconomic policies and market-oriented economic reforms;

-- Fourth, offering technical assistance to help key developing countries implement their reforms; and

-- Lastly, pressing our trading partners to reduce barriers to trade and investment, particularly though negotiations to conclude a strong WTO financial services agreement.

 

I believe these activities are important to the United States, because growth and stability abroad mean growth and stability at home. If I am confirmed as Under Secretary, I will do all I can to see that this work will be undertaken with professionalism and integrity.

I look forward to working with the Congress and at the Treasury with Secretary Rubin and Deputy Secretary Summers to further these goals.

Thank you, Mr. Chairman. I would be happy to answer your questions.