WORLD TRADE
ORGANIZATIONWT/MIN(01)/ST/24
10 November 2001
(01-5628)
MINISTERIAL CONFERENCE
Fourth Session
Doha, 9 - 13 November 2001Original:  English
INTERNATIONAL MONETARY FUND
Statement by the IMF Managing Director, Mr Horst Köhler
Presented on His Behalf by
Mr Jesús Seade, Senior Advisor, IMF
(Speaking as an Observer)
This fourth Ministerial Conference of the WTO is an historic opportunity to help build a
better world, one where the benefits of economic integration lift all nations and all peoples.
Much has changed since the launching of the Uruguay Round more than 15 years ago.
Globalization has accelerated, expanding opportunities and bringing prosperity to many parts of theglobe, while sharpening the challenge and concern about those that have not benefited from this
process.
The terrible events of 11 September, and the further weakening of global economic prospects
since then, have heightened concerns and underscored the interdependence of nations.  The fight
against poverty, or the strengthening of our economies, or the prevention of crises in the global
financial system – none of these can be achieved by nations acting alone.  More than ever, there is aneed for effective international cooperation to gu ide and shape the process of globalization, and for
institutions that help to foster that cooperation.
The creation of the WTO in 1995 completed the vision of our founders at Bretton Woods.  It
put in place the third pillar of international economic cooperation, alongside the IMF and the WorldBank.  The system is strong only when these pillars are strong – together promoting sound economic
policies, a generous flow of development assistance, and the rule of increasingly free and open trade.
The importance of a strong and resilient trading system was amply demonstrated during the
Asian crisis, when open markets hastened economic recovery.  But now that we face a deepeningglobal economic slowdown, it is even more urgent that open markets, and the boost to global
confidence that a new trade round would bring, join forces with the macroeconomic and financial
policies aimed at restoring economic growth.  And beyond these medium-term needs, further
liberalization and stronger, updated trade rules, are indispensable to building a robust global economic
system for the future.
All nations have the opportunity to join forc es here to make globalization work for all,
particularly the poor and the marginalized.  This is  the greatest challenge facing the international
community today.
These opportunities are threefold.  First, to reaffirm  open trade, as a proven way to raise
living standards in rich and poor countries alike.  Second, to renew  and strengthen the rules-based
trading system, which is an essential element of a more stable and predictable world economy.  AndWT/MIN(01)/ST/24
Page 2
third, to rebalance  the trading system, to ensure that all countries fully participate in the global
expansion of trade and investment and harvest its fruits.
Let me elaborate briefly.
First, reaffirmation :  We must not be timid about proclaiming the contribution that the
expansion of multilateral trade has made to global prosperity.  Alongside advances in technology, the
lowering of barriers to trade, and to payments and investment, has underpinned the extraordinary
growth of the global economy since World War II.  I will not elaborate on industrial countries, but
with respect to developing countries:
• It is clear that those that have combined outward-looking strategies with good
policies have prospered;  they have become successful participants in the global
trading system and have attracted the bulk of foreign direct investment going to
developing countries;
• but progress has been disappointing for many others – and the poorest countries have
seen their share in world trade decline markedly.  This reflects many factors, internal
and external, but failure to integrate into the global trading system has been all toocommon.  Contrary to what some suggest, experience shows that these countries
would benefit from more  integration and engagement in trade, not less.  In order to
succeed, they need to strengthen their own policies and institutional capacity,
alongside greater assistance from the international community and renewed growth in
the global economy.
The second dimension of opportunity for you is renewal .  To remain effective, institutions
and economic systems must constantly renew themselves to respond to new realities.  That is what we
at the Fund are doing:  refocusing our efforts in response to the globalization of capital flows and the
different pressing needs of all our Members.  This means better crisis prevention and resolution,improving and functioning of financial markets, and helping developing countries fight poverty and
make the most of the opportunities of the global economy.  But cooperative efforts in these areas need
to be underpinned by an open and up-to-date trading system – one that meets the needs of an
increasingly integrated world.
This brings me to the third key challenge that you face, which I have called the need for
rebalancing the system .  If the benefits of open trade are to be enjoyed by all, a new round must
address the issues of concern to developing countries.  A vibrant, fast-growing trade sector is vital for
growth, development, and poverty reduction.  The boost to global growth and world trade that a
successful round would bring is essential for the in ternational community to achieve the development
targets it has set for itself.  The new round should not only include ambitious goals for eliminating the
trade barriers developing countries face, but also further develop the rules-based trading system inways that best serve their needs.  In turn, if this is to happen, developing countries must be able to
participate fully in the deliberations of the round.
Developing and developed countries alike stand to gain substantially from liberalizing trade
in those areas of importance to poorer developing countries – not just traditional sectors likeagriculture, textiles and clothing, but also manufactures and services.  But just as it is necessary to
improve developing countries' access to industrial markets, they themselves gain significantly from
greater openness to competition, and the flow of new ideas, new technologies, and best practices in
business and institutional reform that such openness brings.
Together with the World Bank, we in the Fund stand ready to assist our Members in this
process wherever needed, through financial support, technical assistance, and policy advice.  It isWT/MIN(01)/ST/24
Page 3
essential, in particular, that we all help the poorest countries reduce poverty and begin to advance
their productive potential through open trade.  And I will close by stressing, as we long have done,
that these countries need duty – and quota-free access for their exports alongside debt relief and a
more generous flow of aid.
There is no better time than now, here in Doha , to move forward with courage and conviction;
to launch this negotiation with generosity of spirit, vision, and understanding of the needs of your
economies today.  That will make a lasting difference to the world in which we live and to future
generations.  Working together we can succeed, indeed we must succeed, in this endeavour.
__________