FROM THE OFFICE OF PUBLIC AFFAIRS
February 22, 2005
JS-2270
Treasury Secretary John Snow
Remarks: IDA-14 Replenishment Meeting
I would like to begin by welcoming this distinguished group of donors, borrowers, and World Bank representatives to the United States and the U.S. Treasury Department. We are very pleased to have the opportunity to host the final IDA-14 replenishment meeting.
This is an important day in a crucial year of development.
We all know that development is by nature a multi-faceted undertaking. Consequently, success will not depend simply on more aid alone, but also on increased trade, private capital flows, remittances, and importantly, sound institutions and policies in developing countries.
Recent experience shows that important progress is being made. Economic growth in developing countries has been the broadest and deepest in decades. But, clearly many challenges remain, particularly in sub-Saharan
The donor community gathered here is demonstrating its ongoing commitment to this important effort and specifically to IDA as a key provider of development assistance to poor countries. We expect this strong commitment to continue for the foreseeable future.
The
I recognize that IDA often has a broad role in poor countries – one that extends beyond purely delivering financial assistance to other issues such as coordinating donors and performing research – which provide additional benefits to poor countries and other aid agencies alike. An important example is that IDA's performance allocation system was very influential in shaping how our Millennium Challenge Account functions.
As you are all too aware, our funding decisions are determined by our Congress and ultimately by the taxpayers. As a result, it is crucial that these institutions convincingly demonstrate that scarce resources are being put to the most effective use possible.
Recognizing this reality, I am greatly encouraged by the direction taken by IDA in recent years as well as the new reforms outlined in the preliminary IDA-14 Agreement.
I would like to briefly highlight a few key issues that we believe are critical to the international community's cause.
I am pleased that the IDA – as well as the African Fund – replenishment agreements represent a crucial step toward ending the lend-and-forgive cycle – which has been terribly disruptive and debilitating in many countries. The Bush Administration is very committed to addressing the ongoing debt problem in poor countries and is continuing to have thoughtful discussions about how to move this important issue even further.
The fact that 47 countries (out of 62 eligible) will receive grants is both heartening and distressing. It is heartening because these countries will stop digging and start crawling out of the hole of unsustainable debt that has constrained economic growth and poverty reduction for far too long. And it is distressing because so many countries are currently at risk of debt distress and highly vulnerable to economic shocks.
That said, we should be proud of the leadership that we've shown in taking a big step forward in putting countries on a sustainable path.
Any effective organization -- whether it's a fortune 500 company, a local NGO or a central government -- must measure performance if it is to figure out what works and what doesn't. Simply put - what gets measured, gets done. Without this measurement and analytical diagnosis, it's impossible to replicate successes, make mid-term corrections, or phase out unproductive programs.
President Bush has stressed measurable results in all
I am pleased to see focus on greater use of performance indicators connected to timelines and periodic assessments of project/program performance, and I am encouraged that World Bank Management will seek to ensure that staff incentives properly track the new measurement framework. This is an important part of creating a results-based institution from top to bottom.
These efforts and others outlined in the IDA-14 Agreement will undoubtedly improve the effectiveness and accountability of IDA's development assistance – including preventing the misuse of World Bank resources.
Transparency is another important component of fostering effective and accountable institutions. Letting the light of day shine on the internal workings of international organizations is an absolute must. Openness facilitates deeper dialogue about best practices and greater accountability to shareholders and stakeholders. On the other hand, opaqueness and shadows breed uncertainty, corruption, and inefficiency.
Therefore, I'm pleased to see that the IDA-14 Agreement will outline an ambitious action plan for the World Bank Board to pursue – such as publishing project assessments and evaluating the World Bank's internal controls. I hope that all of you sitting around this table will do your part in bringing these important reforms to fruition.
The IDA emerging from this replenishment negotiation will be strengthened not just in terms of financial capacity, but also in terms of delivering effective assistance on the ground. Clearly, recipient countries will be better off.
I will be testifying before Congress in a few weeks and am anxious to inform them about this impressive outcome. An outcome for which those of you sitting in this room are broadly responsible.
Again, welcome all of you to the
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