Opening Remarks

by

H. E. Dr. Makarim Wibisono

President of the ECOSOC

at

High-level ECOSOC Meeting with

The Bretton Woods Institutions

Tuesday, 18 April 2000

Excellencies,

Distinguished colleagues,

Ladies and Gentlemen,

It is a great pleasure for me to welcome all of you here today.  Your presence, representing policy makers in various areas including the economy and finance, development cooperation and foreign affairs, clearly signals a strong and broadly shared desire to work together to achieve our common goals.  In conference after conference, in the 1990s we agreed to resolutely eradicate poverty and to retiringly pursue development.  But, as we have come to increasingly recognized, these ambitious goals can only be realized if they inspire action and implementation, and if we can work together in mutual cooperation and partnership to achieve them.

As we launch into the 21st century the world economy is dominated by globalization and interdependence.  The lessons of Seattle point to the need for increased inclusion.  Thus the need for international cooperation and partnership has rarely been greater.  The present international economic and financial system particularly in its response to the imperatives of development and to the promotion of social equity in the global economy are being challenged.  Five years after the World Social Summit, the war on poverty is not being won.  Nor is inequality being conquered.  Rather, more countries than ever are being excluded for the onrush of the new global economy and many of them are being increasingly marginalized.  Even those developing countries that were initially able to successfully integrate into the global economy and reap the benefits of globalization, their advances were soon swept away by the recent financial crisis with devastating social, economic and political consequences.

Yet, we recognize that globalization is here to stay, and thus we have a common duty to ensure that it "becomes a positive force for the world's poor people, instead of leaving billions of them behind in squalor", as the Secretary-General said in his recent major report on the United Nations in the twenty first century.

Our great challenge during this debate today is to accept the General Assembly's invitation to consider two broad policy concerns: to explore modalities needed to strengthen and make more stable the international financial system so as to be more responsive to the challenges of development and to the promotion of economic and social equity in the global economy.  In this regard it can certainly be said that progress has been made in the process of reform of the financial system and in the promotion of international financial stability.  In this respect, we look forward to hearing about such advances made at the recent Spring meeting of the Bretton Woods Institutions.

As we see it, it as imperative that progress is continued on a broad range of reforms.  We must continue efforts to prevent and address financial crises and improve the governance of the international financial system as well as better management at the national level.  We must also deepen our efforts to ensure that the interests of the developing countries, particularly the poorer and more vulnerable economies are better reflected in discussions on financial reform.  Inclusion, participation and a greater share in the global decision-making processes is one of the great challenge facing the international community in this 21^st  Century.  This is increasingly important, logical and fair, particularly at this time when it is well recognized that no one policy fits all.  Obviously, we are only starting to address this question.

In this context, we must also face the crucial question of why resources for official development cooperation have declined so drastically over several years.  I hope we will address it with renewed ingenuity and commitment.  We should ensure that this Millennium year, and the on-going five reviews of the major international conferences, should mark the beginning of a new phase.  It is critical that we each and all work closely together to mobilize all necessary resources for development.

Moreover, we are placing a lot of hope on the forthcoming international high­level event that the General Assembly is currently preparing on Finance for Development to take place in 2001. The meeting is expected to address a broad range of issues related to the financial architecture, sustained financial flows for development, a comprehensive debt strategy and a focus on poverty eradication.  It is important that all governments fully participate in this important event and we hope that we can count on the World Bank and the IMF to fully support this major initiative.

Turning briefly to the question of poverty eradication, it cannot be denied that a conducive external environment is paramount to the promotion of sustained economic growth and sustainable development.  This is even more critical in the age of globalization.  Thus, a stable international financial system responsive to development is indeed an important part of a global partnership to eradicate poverty.  In recent years, poverty eradication has increasingly taken center-stage of agreed agendas worldwide.  Many countries have adopted national poverty eradication programmes. With Mr. Wolfensohn's Comprehensive Development Framework, the approaches of the World Bank and of the UN are increasingly in unison, It is encouraging that the IMF has also embraced poverty eradication as an important goal of its activities.  This partnership must now be consolidated through concrete actions and collaboration as our institutions work together with the developing countries at headquarters and in the field.  While, this is in fact taking place in a number of cases, it should, I believe. now become a matter of routine.

In concluding, I am looking forward to our debate today.  It shows the important role that the UN, and its Economic and Social Council, have to play in promoting dialogue and discussion in forging a consensus on world economic and social issues.  The Council has embraced this role with a renewed dynamism in recent years.  We are committed to continuing to do so and to stay the course to the best of our ability.

Considering the high turnout today, I would like to urge you to keep your comments very short, so that everyone has a chance to be heard.  It is now my privilege to give the floor to the Secretary-General of the United Nations.

Thank you