FOR IMMEDIATE RELEASE

DEVELOPMENT COMMITTEE
JOINT MINISTERIAL COMMITTEE
OF THE
BOARDS OF GOVERNORS OF THE BANK AND THE FUND
ON THE
TRANSFER OF REAL RESOURCES TO DEVELOPING COUNTRIES
1818 H Street, N.W., Washington, D.C. 20433

Telephone:
Fax:

(202) 458-2980
(202) 522-1618

Washington, DC April 21, 2012
1. The Development Committee met today, 21 April 2012, in Washington DC.
2. The global economic outlook remains challenging. Policy adjustments and improved economic activity
have reduced the threat of a sharp global slowdown. Growth in emerging and developing economies
continues to be relatively strong, but poor countries still need support. Implementing policies and
structural reforms to promote poverty reduction and inclusive growth must continue.
3. The likely achievement of the Millennium Development Goal (MDG) to halve global poverty by 2015 is
welcome news, but we remain vigilant and continue to work with all stakeholders to advance the other
MDGs and to learn from experience. We call on the World Bank Group (WBG) and the International
Monetary Fund (IMF) to support the implementation of the New Deal for Engagement in Fragile States.
We call on the WBG to develop more innovative and stronger partnerships with middle income
countries. Providing knowledge and financing for global public goods will also remain key. We
welcome steps being taken by the IMF to implement the agreed funding package for the Poverty
Reduction and Growth Trust, which should enable it to meet likely demand for the IMF’s concessional
support through 2014.
4. Higher, more volatile food prices threaten poverty reduction and other lagging MDGs, especially
reducing hunger and child and maternal mortality. Food insecurity and malnutrition have devastating
effects, especially on women and children. The Global Monitoring Report: Food Prices, Nutrition and
the MDGs is timely and builds on our discussion last spring and the G20 conclusions at Cannes. We call
on the WBG to continue to pursue multi-sectoral solutions to food insecurity and malnutrition through
instruments such as the Global Agriculture and Food Security Program.
5. Social protection makes sound development sense. Social safety nets bolstered poor people’s resilience to
the last financial crisis and are also an important component of longer-term poverty reduction when they
are well-targeted, affordable, gender sensitive and sustainable. The WBG has increased support for
social safety nets, including conditional cash transfers, public works, and school feeding. We welcome
the report Safety Nets Work: During Crisis and Prosperity, with its focus on improving the design and
efficiency of existing social safety net programs and building new ones where needed, particularly in
low income countries. We urge the WBG to promote south-south learning and to allocate sufficient
resources to this work, continuing to collaborate with relevant institutions such as the IMF, the regional
development banks and the International Labor Organization.
6. A vibrant private sector is crucial for growth, jobs and poverty reduction. We therefore welcome the
report on the WBG’s Innovations in Leveraging the Private Sector for Development. Building on its

mandate of poverty reduction, the WBG is uniquely placed to innovate and advise clients about how to
harness the private sector for development and to promote an enabling environment. The IFC has
effectively supported development through the private sector and grown its investment portfolio and
advisory services, and innovative products such as local currency and short term finance, while
maintaining its focus on IDA countries and frontier markets. MIGA has also expanded its guarantee
portfolio. We ask management to prepare a group-wide approach that assesses the implications for
priorities and use of resources, and optimizes synergies between IBRD, IDA, IFC and MIGA to enhance
responsiveness to clients and provide integrated solutions.
7. We are encouraged by progress on the modernization agenda, designed to improve the Bank’s
effectiveness and efficiency to deliver more and better results. Cultural and organizational change will be
needed and we fully support management in bringing this about. The Update on the Bank’s Business
Modernization: Results, Openness and Accountability indicates a clear way forward. Critical areas for
reform include human resources and knowledge building and sharing. Promoting staff diversity is vital
to enhance operational effectiveness and attract motivated talent. The Corporate Scorecard is beginning
to drive a results culture through the organization. Building on recent World Development Reports, the
incorporation of gender equality and greater focus on fragile and conflict affected situations (FCS) will
incentivize improved WBG performance. The momentum behind modernization must be maintained,
and we look forward to a progress report next spring and to an updated Corporate Scorecard this autumn.
Modernization, innovation, and greater creativity in the use of capital will achieve a more efficient WBG
and contribute to its long term financial sustainability.
8. The Ministerial Dialogue on Sustainable Development, with the participation of the United Nations
Secretary General Ban Ki-moon, sent an important signal about the need for global partnership to
advance this demanding agenda. We look forward to continued discussion about inclusive, green growth
in the context of poverty reduction and sustainable development, natural capital accounting and oceans,
feeding into the Rio + 20 and G20 processes.
9. We express our profound appreciation and gratitude to Robert B. Zoellick for his leadership of the WBG
over the last five years. He has positioned the WBG at the forefront of effective and timely responses to
food and financial crises and natural disasters, as well as reinvigorating delivery of longer-term poverty
reduction and tangible results. He has championed gender equality, better performance in FCS,
adaptation to climate change, and renewed attention to agriculture and infrastructure. Under his
leadership, the Bank secured the first capital increase in over twenty years and two unprecedented IDA
replenishments, and launched a host of private sector initiatives, such as the IFC’s Asset Management
Company. He has helped transform the WBG, making it more open, transparent, accountable and ready
for a new era of “modernized multilateralism”. Reflecting this change, Mr. Zoellick has overseen the rise
in the voting share of developing countries to 47%, to be followed by a further review of voice by 2015.
10. We congratulate Dr. Jim Yong Kim on his selection as President of the WBG and commit to working in
close partnership with him. We thank Dr. Ngozi Okonjo-Iweala and Dr. José Antonio Ocampo for their
candidacies and for sharing their valuable ideas for the WBG.
11. We welcome Mr. Marek Belka as the new Chair of the Development Committee and look forward to
working with him. We also note with satisfaction the proposed revision of the Development
Committee’s membership to reflect the addition of a third chair for Sub-Saharan Africa in the WBG’s
Board.
12. The Development Committee’s next meeting is scheduled for 13 October 2012, in Tokyo.

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