ECOSOC 3rd July 2007

High Level Segment


SUBSTANTIVE SESSION (morning session)
General discussion on the theme of the thematic discussion “Strengthening efforts at all levels to promote pro-poor sustained economic growth, including through equitable macro-economic policies”

Debates:

Pakistan,
On behalf of the Group of 77 and China
We need a strengthened interpretation of the goals of these discussions, because they touch at a complex dynamic.
Although economic growth is central to eradicate poverty it alone is not sufficient for development.
Each country must assume the responsibility of its development. Thus, efforts to eradicate poverty call for the development of national development strategies, based on:
1- The promotion of a best fiscal policy,
2- the promotion of good governance,
3- a high growth with large bases,
4- the integration of MDGs achievements in development strategies,
5- the investment in human capital,
6- the integration of poor regions in the economic development mechanism,
7- the promotion of women and minorities employment,
8- the promotion of infrastructure,
9- the promotion of small and medium-sized enterprises

However, the international cooperation is also essential to eradicate poverty, and particularly through the Public Aid for Development.


Portugal,
On behalf of the European Union
Economic growth is essential to eradicate poverty, but not sufficient for development. Growth can improve people’s lives when linked with adequately managed economic, financial, social and environmental policies.
To promote equal opportunities, it is important to look for those who are most in need and promote growth in which the poor, both women and men, have the capability to participate in and benefit from sustained economic growth.
Moreover, there is no doubt that long-term high growth can only be driven by a vibrant private sector. The challenge lies in ensuring that growth of the private sector is pro-poor, and that poor women and men can contribute to and benefit from private sector growth.
Governments have an important role in supporting this.
In this context, we have to highlight the importance of the informal sector of the economy in many countries as a source of employment for the poor.

National development strategies and policies for the promotion of poverty reduction through sustained economic growth have followed different models, based on the economic, social and political country-specific contexts.
Education, adequate infrastructure and macroeconomic stability have also a favorable effect on both growth and the distribution of income.

USA,
The USA underlines the importance of macroeconomics policies and the national regulation environment.

Pakistan,
For Pakistan, the definition of macroeconomics policies concerns not only national regulation environment, but also world-wide policies, and particularly USA’s policies, which have an international impact.


SUBSTANTIVE SESSION ( afternoon session)
National Voluntary Review

ETHIOPIA

To fulfil the MDGs, Ethiopia has integrated them into the national development policy framework and produced a 5 year plan that consisted of:
building capacity at national, sub-national level, as well as in the private sector
accelerating growth and job creation, in particular in the agriculture sector which is the main sector in Ethiopia. Knowledge must be provided to farmers and diversification of production must be encouraged.
meeting the challenge of population growth by providing education, family planning etc
empowering women and improving gender equality
strengthening infrastructures ( roads, telecoms, etc)
improving human development through education, health
managing risks
The results of this plan have been positive. Economic growth and national income have increased as well as spending in pro-poor sectors. However, the rate of progress must be accelerated and equality between regions of the country must still be attained.
Finally, the delegate of Ethiopia insisted on the “I can do” attitude to achieve the MDGs.

The moderator, Mr James P. Rubin, highlighted the problem of the interaction between democracy and poverty, and security and poverty, regarding the permanent conflicts Ethiopia is involved in with its neighbours. Ethiopia replied their actions were only defensive and that it didn’t affect their development seeing that their military budget was only of 2,5% of GDP and has been fixed in recent years.

The Economic Commission for Africa explained that the success of Ethiopia is due to different factors such as:
the active role of the diaspora as investors in the country
its relations with China
their capacity building ability

Philippines noted that what the developing countries need is not only money but above all knowledge transfer.

GHANA

In 1983, Ghana launched an Economic Recovery Programme (ERP) and a Structural Adjustment Programme (SAP) to transform the economy from a highly regulated one to a deregulated market and to encourage economic growth. However, despite these programmes, the economy was, in 2000, still small and highly dependent on external inflows. The economic growth was stagnant (under 5%), investments were low, institutions were weak, the poverty level remained at 49,5% of total population, indebtedness was high and inflation stood at 40, 5%.
Therefore Ghana could enter the Highly Indebted Poor Country (HIPC) facility which led to the establishment of the Ghana Poverty Reduction Strategy (GPRS I) in 2003-2005, a programme that includes the attainment of MDGs. From 2000-2006 big successes have been observed: inflation fell to 10,5% in 2006, and there have been gains in infrastructure and investments, especially in the social sector like education, health, water, etc. Finally, GDP increased by 6,2% and poverty declined to 26,5% in 2006.
A new programme, the Growth and Poverty Development Strategy (GPRS II) has now been implemented for the period 2006-2009. This programme focuses on growth inducing policies and wealth creation. The priorities of this programme are: agricultural modernization, closing the infrastructure gap, education, health, water supply and good governance. It also emphasises the importance of the independence of the Bank of Ghana to solve the inflation problem.
For the implementation of this programme, Ghana depends on external loans, non-concessional loans and development partners. The Ghanaian delegate expressed his worries about highlighting the successes of Ghana because the multilateral institutions tend to punish good results by stopping development funding. However, Ghana needs this aid to maintain growth and achieve the MDGs.

Brazil emphasized the necessity of the permanence of development programmes even in case of changes of government. It also introduced their law for the right of all citizens to food.

United Kingdom encouraged all developed countries to fulfil their aid promises. They also underlined how historical or geographical links play a major role in determining the recipients of bilateral aid, when sometimes actual need is greater elsewhere. They also highlighted the need for accountability with human rights to have access to international aid.

Guinea-Bissau expressed its admiration for Ghana’s success, especially its quick adaptation to a liberal market economy.

The Economic Commission for Africa explained Ghana’s success as due to:
inter-regional investments and trade
overseas assistance
good governance

Germany happily observed the African countries can now come to ECOSOC and introduce their successes and not only their problems.
Pakistan proposed that in the next meetings, the developed countries should also present their programmes for meeting the MDGs. It also criticized financial havens that hinder the fight against corruption.