Development and Recovery Go Together

Secretary General of the United Nations, Ban Ki-moon, urged the leaders of the most powerful economies to not forget the importance of development during his speech at the G-20 summit today. Ban Ki-moon asserted during this period of economic uncertainty, recovery and development must go hand in hand, and that forgetting the importance of focusing on development will only impede the gradual process of recovery.

He called attention to the promise renewed in September of UN member nations fulfilling the Millennium Development Goals by 2015 and reminded them that development aid must be accelerated in order to meet those goals. Moreover, he declared that regardless of our financial status as nations, all nations are in this recovery together and must work in harmony to provide a better world.

-Corey Cox

SOURCE: UN News Centre

IMF in Need of Change

According to the a group of global banks, the International Monetary Fund needs radical transformation in order to stimulate the international markets. G-20 leaders pledged earlier this month to increase funding for the IMF, but that money is not yet committed. The promises made at the summit need to be turned into reality, and the IMF needs to become more transparent in its actions.
Source: Financial Times

$1 Trillion Commitment

During this week's G-20 summit in London, different world leaders agreed to commit a total of $1.1 trillion towards poverty-reduction efforts. As the economic growth of developing countries slows over the next few years, this contribution will be crucial in helping them progress out of poverty. The decision underscores world leaders' commitment to the Millennium Development Goals, even in the midst of a global crisis.
Source: UN News Centre

Leaving G-20

As the G-20 summit came to an end a few days ago, President Obama had a few final thoughts on the meeting:
"Finally, we are protecting those who don't always have a voice at the G-20, but who have suffered greatly in this crisis. The United States is ready to lead in this endeavor. In the coming days, I will work with Congress to provide $448 million in immediate assistance to vulnerable populations, and to double support for agricultural development to over $1 billion so that we are giving people the tools they need to lift themselves out of poverty. We will also support the United Nations and World Bank as they coordinate the rapid assistance necessary to prevent humanitarian catastrophe. This is not just charity though. These are future markets for all countries, and future drivers of growth."
Read full transcript of the press conference here.

How to Boost the Global GDP

According to the the research commissioned by the ONE campaign recently, $50 billion in a stimulus package for Africa could increase global income by $250 billion over the next ten years. Because of the financial crisis, sub-Saharan Africa is expected to experience a $40-50 billion loss in 2008-2009. The proposed stimulus would have a positive impact on global GDP, increasing it by 0.1% in 2009-2010, roughly $44 billion. This research, a collaborative effort by the Overseas Development Institute (ODI) and the National Institute of Economics and Social Research, will hopefully encourage the leaders at this week's G20 meeting to make the issue of global poverty a priority.
Source: The ONE blog

What Should be Discussed at the G20 Summit

With the G20 summit drawing near, United Nations Development Programme's MDGs adviser Eveline Herfkens presents her opinion of what should be discussed during the April 2 meeting. The main problem, as she sees it, is that "the world lacks an effective system of global governance" as a result of three major deficits. First is the compliance deficit; country leaders agreeing on certain commitments, and quickly breaking them within just a few months. Then there is the coherence deficit; countries taking opposing positions on various issues rather than acting collaboratively to solve those issues. Finally, there is the triple democratic deficit; the lack of voice of poor countries, of people in general, and of poor people in developing countries in particular. As a result of these issues combined with the current economic crisis, "Africa might be robbed of its one chance in a generation to make real progress," says Herfkens.

"Unless we start addressing the three deficits of global governance immediately, the present crises will result not only in missing the lofty promises of the Millennium Development Goals, but set back development for decades to come."

Full article here.

Triple Win from One Financial Package

Jeffrey Sachs of Columbia University has written an article for Nature online journal, concerning his view of the current economic crisis. In his opinion, the G20 meeting in April could be a critical turning point. He suggests that they set aside $25 billion for funding African sustainable investments, and another $25 billion for low-income countries in other regions. Compared to the trillions of dollars to be discussed for bailing out wealthier countries, this request seems reasonable.

"A financial package from the G20 — a forum of cooperation among 20 large economies — to support sustainable energy, land and water use in the poorest countries could provide a 'triple win'. It could lead to stimulus for richer countries, development for poorer countries and environmental sustainability for all," says Sachs.
Source: Nature