## Transcript of the Development Committee Press Briefing

_IMF News, April 20, 2013_

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## Bibliographic details
- Published: April 20, 2013

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### End extreme poverty: target and implications
- Global target endorsed to reduce the extreme poverty rate (the number of people living on less than $1.25 a day) to 3 percent by 2030.
- Dr. Kim: "We are no longer dreaming of a world free of poverty, we have set an expiration date for extreme poverty."
- Time horizon emphasized: "The target of 2030 is closer than you think, just 17 years away."
- Annual country-by-country reporting commitments: report on the rate of extreme poverty and changes in the income of the bottom 40 percent in each country to track progress and vulnerable people slipping back into poverty.

### Shared prosperity and inequality
- Second endorsed goal: promote shared prosperity by fostering income growth of the bottom 40 percent of the population in every country.
- Shared prosperity entails:
  - Creating opportunities for all citizens.
  - Promoting gender equality.
  - Focusing on those who, although not currently poor, are vulnerable to falling into poverty.

### World Bank operational focus and priorities
- World Bank Group strategy to be unified around the two goals and considered again at the Annual Meetings.
- Specific operational emphases described by Dr. Kim:
  - Priority focus on South Asia and Sub-Saharan Africa.
  - Country strategy example: India strategy built around ending poverty and building shared prosperity, increasing investment to the poorest states.
  - Work in fragile and conflict-affected states (e.g., Great Lakes Region) linking political, security and economic development solutions.
  - Concern and active engagement in Caribbean countries (Jamaica program cited).

### IMF commitments and complementarities
- IMF actions described by Ms. Lagarde:
  - Improving lending facilities to low-income countries (approved about a month ago).
  - Providing increased and more focused support to small states.
  - Developing capacity building, noting low-income and emerging and developing countries are the biggest consumers of IMF capacity services.
- Four policy support areas IMF will actively support:
  - Managing natural resources better to avoid traps for resource-rich economies.
  - Giving policy advice on job-friendly, inclusive growth, with attention to women.
  - Technical advice on development of financial sectors to absorb capital flows.
  - Continued work on subsidies related to climate change and state revenue.

### Climate change, health, and education as development priorities
- Dr. Kim highlighted climate change: "we need a plan that is equal to the challenge of a disastrously warming planet."
- Investment in people emphasized as both moral and strategic:
  - Universal access to education and improved learning outcomes.
  - Building health care systems that provide quality care to all people.
- Ms. Lagarde noted these issues are critical to finance ministers and central bank governors as well as development ministers.

### Financing the poorest and IDA replenishment
- Development Committee called for robust replenishment of IDA, with strong participation from all members (welcomed by Dr. Kim).

### Implementation challenges and safeguards
- Land and land-grab concerns:
  - Dr. Kim stated the World Bank is "very expressly and on record as being against speculative land-grab kinds of situations" and monitors its portfolio.
- Corruption and accountability:
  - World Bank policy of zero tolerance for corruption; recent debarment example: a company debarred and barred from participating in World Bank-funded projects for ten years.
  - Support for biometric and electronic payment systems in India cited as a tool to reduce leakages and improve delivery of benefits.
- Small and indebted states (Caribbean):
  - Acknowledged classification issues (middle-income/high-income labels vs. high public debt) and the need for tailored support.
  - Commitment to not forget smaller countries even when global poverty rates decline (pointing to high poverty in fragile and conflict-affected states "in the 30 and 40 percent region").

### Regional and country-specific engagement
- South Asia and Sub-Saharan Africa:
  - Emphasis on job creation, addressing large states and fragile/conflict-affected countries, and scaling up energy investments to support growth.
- Egypt:
  - Support envisaged for removing fossil fuel subsidies paired with targeted social protection to protect the poorest; involvement contingent on country agreements (standby agreement referenced).
  - Mention of local expertise in Egypt (Smart Card system) and potential packaging of local and international expertise (World Bank/IMF) to implement targeted subsidy systems.
- North Africa and Tunisia:
  - Need to promote private sector investment, rebuild trust, create fair and enforced rules, and improve the business climate.
  - Disturbing fact cited for Tunisia: "the highest rates of unemployment are among the college-educated."
- Libya and Syria:
  - IMF provides technical assistance and capacity building in Libya; Syria described as a "much more complicated and much more unsettled situation."

### Jobs, growth, and common policy themes
- Shared challenges across advanced and developing economies:
  - Two cross-cutting tasks for all countries: rationalize public expenditures using evidence and improve the business climate while investing in infrastructure and human capital for medium- and long-term growth.
  - Ms. Lagarde highlighted female labor force participation and the informal job market as issues that span advanced and low-income countries, affecting revenue and labor market outcomes.
  - Comparative note: unemployment concerns can be similar across contexts (example: Spain and some MENA transition countries).

*Transcript of the Development Committee Press Briefing — April 20, 2013*

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## References

- [Arab Republic of Egypt and the IMF](http://www.imf.org/external/country/EGY/index.htm)
- [India and the IMF](http://www.imf.org/external/country/IND/index.htm)
- [Italy and the IMF](http://www.imf.org/external/country/ITA/index.htm)
- [Tunisia and the IMF](http://www.imf.org/external/country/TUN/index.htm)
- [The IMF and Good Governance -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/the-imf-and-good-governance)
- [Transcripts](https://www.imf.org/en/news/searchnews)
- [https://www.imf.org/external/spring/2013/index.htm](https://www.imf.org/external/spring/2013/index.htm)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Webcast of the Press Briefing](https://www.imf.org/external/mmedia/view.aspx?vid=2316625408001)
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_Source: https://www.imf.org/en/news/articles/2015/09/28/04/54/tr042013a_