Distinguished Guests, Ladies and Gentlemen,
It is my pleasure and privilege to make the closing remarks for this session. A session that has reviewed the challenge created by the economic crisis, outlined the impressive response of the Development Finance Community and considered the opportunities that lie ahead.
We are all too familiar with the fallout from the crisis. Poor countries have seen their economic progress cut short. Lower export revenues, lower remittances and the outflow of capital threaten financial stability. We recognise that it was the systems and institutions of the developed economies that have proven fallible. The price of their failure is paid today by all.
But, Ladies and Gentlemen,
We must also recognise that the crisis has speeded important, and welcome, change.
The leadership of the world economy is now broader, more inclusive. It benefits from wider counsels, including countries which understand the struggles and achievements of development.
It was the initiatives of the G20 London Summit that averted a catastrophic economic depression; And the G20 Pittsburgh Summit that moved forward to set a new global framework for a sustainable and rebalanced growth: a growth which acknowledges development and poverty reduction as major priorities.
Allow me, therefore, to put on record our gratitude to President Zoellick for giving a voice to the DFIs in these historic decisions of the G20 and above all for defending the needs of our partner countries for a sustained and equitable economic development.
The recognition of world leaders that the G20 should be the premier forum for economic cooperation surely reflects a reality that has been clear to us in the development community for many years.
We can only welcome the pledge of the leaders to improve access to food, fuel and finance for the poor – priorities which have always been at the core of the operations of the OPEC Fund.
The IFC response to the crisis will make a vital contribution to achieving these goals. Private businesses will remain under stress in the poorest countries and the additional finance should help support investment and job creation.
I would like to take this opportunity, on behalf of OFID and the many distinguished institutions represented here today, to congratulate the IFC for spearheading the DFI response. The IFC initiatives have been structured to mobilize funds from a wide range of development partners, opening new opportunities for participation and risk-sharing.
OFID is actively involved in a number of these programmes including the Bank Capitalisation Fund, the Microfinance Enhancement Facility and the Global Trade Liquidity Pool. We recognise that these programmes will be of great value to the private sector in poor countries, especially once economic recovery is under way and scarce capital is needed for expansion.
Indeed, OFID views the World Bank Group as the leading development agency, a model and a source of knowledge. For this reason, OFID is finalizing a Memorandum of Understanding with the World Bank Group that we believe will enhance the future cooperation of our two institutions and build on the recent cooperation for the crisis response initiatives.
Ladies and Gentlemen,
There has been much discussion about the need for Development Finance Institutions to cooperate in order to enhance aid effectiveness and better realize vital development objectives such as the Millennium Development Goals.
The crisis has proved the need for an inclusive and united effort to maintain growth and reduce development imbalances, but there is still a very long way to go.
To conclude these closing remarks, I would like to emphasize that we, at OFID, are prepared to build on these strong foundations. We are determined to continue on a path of harmonisation, coordination and joint actions with all development institutions for the good of our partner countries.
New problems will emerge which may require more innovation and cooperation but we are ready for the challenge.
Thank you.