The recent experience in East Timor showed that a close cooperation between donors is beneficial for all concerned. Most important, however, is the Poverty Reduction Strategy. I would like to thank the Management for producing this strategy through a participatory process. Its successful implementation will depend upon the dedication of the staff of the Bank, but first and foremost upon the political will of the governments of the borrowing countries. The recognition of the link between good governance and poverty reduction is of particular importance.
Scarce resources have to be distributed cautiously and rationally.
Especially military budgets have to be in balance with the budgetary requirements for the development of each country. Let me turn now to internal governance within the Bank. I greatly welcome recent announcements that the communication between Management and Board will be intensified and I hope that other measures will follow. The advice on good governance given to external parties must be reflected within the Bank itself. Only if the Bank itself gives a shining example of good governance it has the credibility to demand it from partners.