2001 IMFC/Development Committee Statements 2001 Spring Meetings Home
Statement by Haruhiko Kuroda, Vice Minister of Finance for
International Affairs, Japan at the
Joint Meeting of the International Monetary and Financial
Committee and the Development Committee
Washington, D.C., April 29, 2001
Since 1999 when the international community endorsed the PRSP framework, significant
progress has been made in its implementation—32 Interim-PRSPs and four full PRSPs. I
would like to commend developing countries, the Bank and Fund for their efforts behind such
progress. High quality PRSP is essential to poverty reduction, and we welcome the progress being
made in formulating the guidelines for Joint Staff Assessment, as it will help improve the quality
of PRSPs.
To improve the quality of PRSPs even further, it is essential to strengthen Economic and Sector Work and other
analytical work, to promote capacity building of developing countries, and to strengthen the
participatory process. For our part, Japan has already committed firmly to providing support with
a particular focus on the participatory process for PRSPs.
The PRSP process is to be improved by sharing experiences. The secretariat at both the Bank
and Fund are thus required to provide feedback of the lessons they learn from their PRSP support,
so that the international community will benefit from it.
With regard to the enhanced HIPC Initiative, as many as 22 countries have so far reached
decision points. It is expected that these countries will demonstrate their ability to reduce poverty,
and will reach completion points at the earliest possible time to make significant progress in their
fight against poverty. In further implementing the enhanced HIPC Initiative, our challenge is how
to embrace countries in, or emerging from, conflict under the Initiative. For that, it is essential to
fully consider the special circumstances of these countries, and to take a case-by-case approach,
while maintaining the Initiative's core framework that links debt relief with poverty reduction. In
this respect, strengthening support for governments' capacity building, including public sector
management, should be effective. In addressing the issues of post-conflict countries, I must point
out that collaboration with other partners will be extremely important. Collaborating with the
United Nation agencies' peace process and humanitarian assistance would be one such example.
For the heavily indebted poor countries to free themselves from unsustainable debt burdens
and to achieve poverty reduction, it is mandatory that they build an economy with adequate levels
of efficiency and productivity, thus making sustainable growth a reality. While developing
countries' own initiative based on the sense of ownership is the most important factor in
accomplishing reforms, we need to support such efforts by providing them with concessional
loans and better access to markets in developed countries. Other essential measures include
appropriate debt management by HIPCs, monitoring of debt sustainability by the international
community, in particular the Bank and Fund, and better environment to attract private capital
inflows.
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