The Bank and the Fund are also working together to ensure that their efforts are consistent and firmly grounded in their respective areas of expertise. It makes poverty reduction and faster growth an explicit objective of programs supported under the facility and, hence, a criterion for evaluating the success of those programs. Supporting national poverty reduction efforts is essential but it is not enough. Many poor countries also have unsustainable debt burdens. Reducing their debt to more manageable levels has become a worldwide campaign in the run up to the Millennium.
Initiative is the key international tool for reducing poor country debt.
First, the volume and effectiveness of aid must be increased. A lot of good research has been done on the impact of aid. It confirms that aid has a huge impact in countries that have high levels of poverty, if the right economic and social policies are in place. Allocating more aid to reforming countries will both generate results on the ground and help to build support for raising the volume of aid flows. Second, and most constructive of all for long-term development, all countries can act to lower the trade barriers that keep out the exports of the developing countries.