FROM THE OFFICE OF PUBLIC AFFAIRS

We met today at a time in which the world economy faces many challenges.  In this light, we reaffirm our commitment to multilateral cooperation.

Growth in most of our economies has been subdued, though uncertainties have diminished.  A strong and lasting recovery is essential for our own countries and for the world.  To this end, we each commit to pursue sound macroeconomic policies that support sustained growth. In a low inflation, low interest rate environment, there is potential for higher growth through productivity-enhancing structural reforms, and to buttress investor confidence through continued improvements in corporate governance practices, market discipline, and transparency.  We will respond as needed to developments in the economic environment.  We will continue to monitor exchange markets closely and cooperate as appropriate.  We underscore the importance to global growth and poverty reduction of successful trade liberalization through the timely implementation of the Doha Development Agenda, notably in financial services.

We encourage all emerging market countries to pursue sound policies and to enhance their investment climates. These policies will help attract financial flows, importantly including foreign direct investment, to reduce external vulnerabilities, and to support sustained growth. We welcome the strong macroeconomic policies and ambitious structural reforms that Brazil's authorities are implementing.

We reiterate our commitment to strengthen crisis prevention and resolution measures.  We are pleased to see progress being made on each element of our Action Plan of last April, as detailed in the accompanying update.  We will continue to work to further implementation in this area. 

We reaffirm our strong commitment to combat terrorist financing and pledge to maintain the momentum we have achieved thus far.  We will work with the Financial Action Task Force, the UN, and the International Financial Institutions to implement the work plan that we endorsed in February.  We welcome the Action Plan of the IMF and World Bank, and are encouraged by the progress of the Pilot Program agreed with FATF; we urge them to successfully carry forward this important initiative. We look forward to revised FATF recommendations by June, establishing an enhanced standard in the fight against financial crime.

We reaffirm our February commitment to address the challenge of global poverty and our support for the Millennium Development Goals and the Monterrey consensus.  Achieving these will require mobilization of greater financial resources by developed and developing countries.  We will continue to focus on the goals and their financing, including facilities, with a view to progress by Evian.  Aid is most effective in countries with sound policies, good governance, and an environment conducive to private sector-led growth.  We reiterate our support for NEPAD principles.  We will develop an approach for dealing with non-IDA countries within the Paris Club for consideration at our May meeting.  We also encourage developing countries, working with the World Bank, to integrate trade objectives as key elements of their PRSPs and CAS lending programs. 

We recognize the need for a multilateral effort to help Iraq.  We support a further UN Security Council resolution.  The IMF and the World Bank should play their normal role in rebuilding and developing Iraq, recognizing that the Iraqi people have the ultimate responsibility to implement the right policies and build their own future.  It is important to address the debt issue and we are looking forward to the early engagement of the Paris Club.