We welcome these institutions' proposals to provide enhanced financing for those African countries willing to undertake exceptionally bold reforms in the areas of trade liberalization, governance and support for the private sector. Second, we will continue to provide leadership in relieving unsustainable levels of debt for African countries that have demonstrated a commensurate dedication to reform. Third, we and Africa's other trading partners must work to ensure that all of our markets are open to Africa's exports. And finally, there is a need for more effective and sustained policy dialogue with Africa's reformers, both to support their efforts and to spread word of their successes. There is a growing consensus that corruption is a key development issue.
Corruption undermines good governance and the effective use of scarce aid resources.
In more severe cases, it can seriously undermine the economic, political and social development of a country. Corruption not only diverts resources from productive purposes, it undermines credibility and encourages corruption by others. When governments are corrupt, the private sector, wary about governmental enforcement of the rules of the game, becomes more cautious about investing, particularly in long-term projects. We are pleased that corruption is now firmly on the international development agenda. Withholding funds for specific projects, programs, or contractors is a necessary recourse when there is clear evidence of corruption.