Two years after the onset of the global financial crisis, finance ministers of more than 180 countries, including Nepal, noted that the governments in LICs continue to face challenges because of fiscal constraints and difficulties in scaling up effective social protection mechanisms.[break]
“Many developing countries did well in maintaining growth and output, preserving core spending on health, education and infrastructure. However, LICs are facing the special challenge. Hence, the World Bank (WB) should extend additional efforts to protect vulnerable groups there,” they added.
The finance ministers from countries across the globe had convened for a joint meeting of development committee in Washington. They also urged the donors to lay stronger focus on results, mainly on improving the living conditions of the poor.
According to a statement, the global financial leaders mainly raised concerns over the food, fuel and financial crises reversing the progress achieved on the MDGs till 2008.
They further reckoned that food security and nutrition will remain vital concerns for many developing countries for many years to come. They urged the World Bank to strengthen efforts to address issues of agricultural productivity, food security and challenges posed by agricultural commodity price volatility in coordination with other international institutions.
The finance ministers also reiterated their commitments to intensify efforts to achieve the MDGs by 2015.
The development committee also urged the International Monetary Fund (IMF) to continue identifying policies and instruments that could best assist in preventing and responding to future crises, reduce the risks to growth and increase prospects for a sustainable recovery.
“We call on the WBG and the IMF to continue identifying policies and instruments that could best assist in preventing and responding to future crises, reduce the risks to growth and increase prospects for a sustainable recovery,” reads a joint statement the finance ministers issued at the end of the meeting.
The meeting tagged the International Development Association (IDA) as one of the most important instruments in the world for achieving the MDGs and improving the lives of millions of people in LICs. It also called for a strong IDA replenishment, with fair and broader burden sharing among all donors and the WB.
The finance ministers on the occasion also stressed on the need to revive international trade and investments for global economic recovery and growth. They particularly urged the members to avoid all forms of protectionist measures.
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