Breakdown in Doha talks will hit 'poorest' nations

The suspension of the Doha trade negotiations is a cause for concern and any breakdown in negotiations would have adverse consequences for all countries specially the poorest and the most vulnerable.

Commonwealth Finance Ministers have urged the key players in the Doha negotiations to provide the political impetus needed to revive the negotiations and bring them to a successful conclusion.

Making, the concluding remarks after the 61 Commonwealth Finance Ministers meeting they said that after five years of strong growth in developing countries the prospects for global growth remain good for the year ahead for high income countries and developing countries. But there are risks and they have to be tackled by individual countries with enhanced policy coordination which includes tighter fiscal policy in the US, continued structural reforms in Europe, increased domestic demand in Asia and oil exporting countries as well as increased exchange rate flexibility in Asia.

The ministers called upon development partners to deliver on pledges to raise assistance to the poorest countries, small and vulnerable states and those affected by trade shocks.

The theme of this year's conference An-agenda for growth and livelihoods was discussed in detail and it was agreed that sustained growth is the most effective route to poverty reduction and likely to be most pro poor when it is employment sensitive.

The agenda should be country specific and priorities should differ according to the country's circumstances. The ministers emphasised the importance of education and training and recognised the long term plans of developing countries and the need for donors to respond to them positively with predictable long term finance.

The ministers welcomed the contribution of the Commonwealth Business Council and agreed to encourage effective public private partnerships in providing infrastructure and other services so that banking and other financial services are available to an increasing proportion of the population and enhance corporate governance in Commonwealth countries.

Speaking on the aid and aid architecture they laid importance on improving the modalities of aid delivery in line with the 2005 Paris declaration on aid effectiveness. It was emphasised that the focus should be on National ownership, harmonisation, alignment, results and mutual accountability.

The ministers recognised the need to increase the voice and representation of developing and poor countries in the IMF and World Bank and urged a time-bound conclusion, welcomed and encouraged rapid further progress in the joint efforts of the banks and fund to identify opportunities to increase assistance and reforms to help countries meet the MDGs, encourage the bank and fund to support moves to strengthen governance.

The Commonwealth Private Investment Initiative (CPII) continues to contribute in the various regions of the Commonwealth. The CPII will be extended to the second phase which focuses on the SME sector covering more developing member countries.

Good governance is essential for development but banks should not forget that they should address the issues of the small states as 32 of the 53 states are small.

The ministers also agreed to adhere to the international rules relating to Anti money laundering and combatting and financing of terrorism and help small states establish standards and rules.

(S.G)