Agenda Item 84, Macroeconomic Policy Questions

Breaking the grip of poverty is the central challenge of the 21st century. We began the new millennium with ambitious development goals, and a commitment to achieve them. In Doha, in Monterrey, and in Johannesburg, the world community resolved to fight poverty by implementing proven development strategies. These strategies aimed to liberalize trade, increase agricultural productivity, and to improve debt management.

As President Bush said at the Financing for Development Conference, in Monterrey, last March: "Developed nations have a duty not only to share our wealth, but also to encourage sources that produce wealth: economic freedom, political liberty, the rule of law and human rights. When nations close their markets and opportunities are hoarded by a privileged few, no amount -- no amount -- of development aid is ever enough. When nations respect their people, open markets, invest in better health and education, every dollar of aid, every dollar of trade revenue and domestic capital is used more effectively."

Last November in Doha, we resolved to break barriers that obstructed trading opportunities for developing countries. In Monterrey, we resolved to work together to create conditions needed for development success. We looked at what worked, based on experience, and determined to implement development strategies that lift people out of poverty as quickly as possible, and for good. The World Summit on Sustainable Development in Johannesburg reinforced bedrock elements of the fight against poverty.

We, the world community, came together again and again on a vision based on a new way of doing business. As we heard yesterday, this vision involves a performance-based, results-oriented attack on poverty. We resolved to unlock and use all potential resources for development. We recognized that governance, rule of law, investment in people and access to markets are central to development strategies. We pledged our support and our determination.

The task of the Second Committee is to carry this determination forward. We can do this by re-structuring our work to focus on the agreements we made in Doha, in Monterrey, and in Johannesburg. We have an agreed plan and time-bound, measurable targets. The work of the Second Committee should closely track our objectives for development.

Export earnings from international trade are a major source of financing for development. Only domestic savings provides more. In Doha, we recognized the tremendous growth that results from nations connecting to the global marketplace. We agreed to overcome trade barriers that stifle growth, and recognize that sustained growth and productivity are not possible without trade and investment. We all stand to benefit from the hundreds of billions of dollars in new income that implementation of the Doha Development Agenda will generate.

The UN Conference on Trade and Development (UNCTAD) now focuses on the practical aspects of building developing countries’ trade negotiation capacity and improving their trade and investment climates. The United States will work closely with UN agencies on these issues.

One of the most important aspects of Doha is agricultural liberalization, and the United States is firmly committed to it. We remain firmly committed to the elimination of trade distorting agricultural subsidies.

In fighting poverty, we must address agriculture. The overwhelming majority of those living in absolute poverty live in rural areas. Agriculture is the foundation of the rural economy. The first and most effective step to address both poverty and hunger is to raise agricultural productivity steadily and sustainably. In Africa, we estimate that meeting the goal of reducing absolute poverty by half by 2015 requires an average growth rate in agricultural productivity on the order of 5 percent per year. Governance, policy, technology, investment and trade can yield this result. But the effort must be sustained.

Another of the talons holding people in poverty is the accumulation of excessive debt. The United States strongly supports the full funding of the HIPC initiative. It is also essential that new investment in development not simply lead to the re-accumulation of unsustainable debt burdens in the poorest countries. The resources from debt relief are available for development purposes. The US has led efforts to boost the grant element of IDA loans for the poorest countries.

Times are tough. The international economy shows signs of recovery but the hard work of development challenges us all.

Mr. Chairman,

The United Nations, and this Committee in particular, have made tremendously important contributions to developing a new and solid consensus on development. If we are to see real results, our work on macroeconomic issues must develop, support, and strengthen the implementation of that consensus.

The United States believes that the most efficient way to approach the macroeconomic policy for development agenda items is in an integrated manner, after delegations have had the opportunity to engage in full discussion of the issues. We hope other delegations will share this integrate approach.