people in the world live on less than one dollar a day, which is regarded as the absolute poverty line. One in two people live on less than two dollars a day. As indicated by statistics like these, a solution to the poverty problem has become an urgent priority for the international community. Support for basic human needs (BHN), including food, health and medical services, safe drinking water, and basic education, is obviously crucial because of the direct implications for people's lives. At the same time, we also need to create the potential for medium- and long-term economic growth and to ensure that the fruits of growth are shared equally by all people of all social strata in developing countries.

A key factor determining whether or not developing countries can respond to globalization in ways that will enable them to use it to promote development is “ownership”: their ability to establish and implement appropriate policies. Such policies include fostering free trade, stimulating private-sector activity, and laying the groundwork to attract foreign direct investment. Also essential is the establishment of social safety nets and other institutions to ensure that the poor are able to cope with the social instability resulting from sudden economic downturns associated with the globalization process—as seen in the 1997 Asian currency and economic crisis.

## (2) Regional Conflicts and the Role of Development

The world has witnessed numerous regional conflicts, especially in developing countries, since the end of the Cold War. These conflicts rob people of their livelihoods as well as their lives and quickly destroy the results of years of development efforts. The negative consequences for the countries involved and their neighbors are immeasurable.

Obviously, conflicts cannot be resolved or prevented without the political will and effort of the parties involved together with the wider international community. Nor will such efforts be effective unless the efforts of developing countries are steadily linked to nation-building initiatives through the establishment of fair and efficient social systems that lead to improvements in living standards and welfare. In addition to the use of development aid to provide emergency humanitarian relief when conflicts occur and to support recovery and reconstruction when they come to an end, there is also a need for continuing efforts to deal with the issues that cause conflict—namely, poverty, income gaps, and a lack of dispute-resolution mechanisms. Conflict prevention will require support for the establishment and reinforcement of “good governance,” including antipoverty measures and democratization, in the political, economic, and social arenas.

The governments of most developing countries now recognize that promoting development through public participation requires democratic institutions and systems to support them. While good governance is an abstract concept, it has direct relevance to domestic politics in developing countries. Donor countries need to engage in frank dialogue with recipients and to exercise prudent consideration. This should be combined with innovative support for the nurturing of institutions and human resources that will allow the governments of developing countries to achieve transparency and accountability in their policies, prevent corruption, and encourage public participation in decision-making processes.

## (3) Global Issues and Global Public Goods

Many of the issues that confront developing countries directly affect the entire international community, including developed countries.