DUBAI, 24 September 2003 — The annual meeting of the Board of Governors of the World Bank Group and the International Monetary Fund (IMF) was held here yesterday. The key speakers were deputy ruler of Dubai and minister of finance and industries, UAE, Sheikh Hamdan ibn Rashid Al-Maktoum, World Bank President James Wolfensohn and IMF Managing Director Horst Koehler.

Sheikh Hamdan ibn Rashid Al-Maktoum, in his inaugural speech thanked the delegates and said that the selection of the United Arab Emirates reflect the region as an integral part of the world economy.

However he emphasized that until regional conflicts were solved and peace and security restored in the Middle East, the region’s full economic potential could not be achieved.

While discussing Iraq issue, Sheikh Maktoum said that a stable Iraq was in the interest of all. He urged the international community to contribute to the reconstruction and strongly suggested that the steady transfer of modern technology should also accompany the free flow of trade to developing countries. He urged developing countries to create a domestic climate more conducive to private sector activity in order to receive the maximum FDI inflow and reduce the technological gap.

Wolfensohn in his address urged global leaders to renew their commitment to fight global poverty. He said that a new balance was required between developed and developing countries.

He pointed to commitments made by both rich and poor countries to help reach Millennium Goals, including halving global poverty by 2015.

Wolfensohn said actions so far had not matched commitments and called on governments to fulfill their responsibilities. In his speech, Wolfensohn described imbalances in the world where one billion people own eighty percent of the GDP and where another billion struggle to survive on $1 a day. To correct this imbalance, the president urged developing country leaders to move more aggressively to fight corruption, improve governance and spur reform.

The managing director of IMF, Horst Kohler, insisted on strengthening the fabric of international financial systems. However he said that increasing interdependence of the world’s economies poses new challenges for the IMF.

To meet the challenges, one must emphasize the linkages between countries and regions and exercise evenhandedness because crises can originate in both mature and emerging markets.

He was optimistic in discussing a strategy to fight against the poverty: “In a growing number of developing countries, sound policies are beginning to bear fruit. Good governance and strong institutions are indispensable to fostering investment, job creation, and growth.” He said that the IMF would continue to focus on the macroeconomic stability as a precondition for sustained growth.

He was encouraged by the increase in IMF members from 38 to 184, which reflects the process of globalization being accelerated. He said that by working together we could ensure that all voices are heard and respected and that the benefits of globalization are more widely spread.

The second and final day of the WB/IMF meeting will be concluded by a joint press conference.