Proven Steps to Poverty Reduction and Development

The world that we live in is changing fast.  We are increasingly aware of the impact of a set of new challenges that affect our ability to achieve the Millennium Development Goals.  We are emerging from a global economic crisis, and climate change risks are reversing hard won development gains. We now have a better understanding of the importance of resilient economic growth and a better understanding of the challenges of achieving development in fragile and conflict-affected countries.  

Conflict has a huge impact on Millennium Development Goals progress as it escalates the disparities between rich and poor, reverses economic growth weakens institutions and fragments communities. Twenty-two out of the 34 countries furthest from reaching the MDGs are in or emerging from conflict. Only 14 per cent of fragile countries are on track to achieve the maternal health MDG; and only 17 per cent of fragile countries are on track to achieve the HIV and AIDS MDG. 

Shifts are occurring across the international landscape, including the emergence of the G20, new donors, delivery partners and technologies which affect the way we do business. 

Poor people in poor communities need to be able to hold local, national and international bodies to account for what is delivered in their name and have a voice to demand the changes which can better benefit them and their families.  Lasting improvements to people’s lives involves undertaking long-term work to reduce vulnerability to both natural and man-made shocks.   Global institutions such as World Bank, IMF, and UN must enjoy legitimacy from their member countries and the international community. They must be responsive, with the interests of all members, especially the smaller and poorer, being taken into account. The governance of these institutions must be flexible, must respond to new challenges, national priorities and specific circumstances.

A scathing report from the Independent Evaluation Office (IEO) of IMF highlights the lack of transparency and accountability in IMF. The IEO measured governance along four dimensions – effectiveness, efficiency, accountability and voice – and against three standards – the Fund's own governing documents, other international organisations, and private & public-sector corporations. The report finds accountability and voice are the weakest features of the Fund's governance and these weaknesses entail risks to the Fund's legitimacy, which in turn has a bearing on its effectiveness.

 Nearly three quarters of these indivdiuals can be found in countries in Africa, Asia and the Middle East experiencing a number of important development challenges and constraints. We would be doing those countries a serious disservice, and missing an important opportunity, if our approach to poverty reduction and development ignored the presence and impact of refugees.

A coherent approach to poverty reduction and development must address the circumstances that cause people to flee their homes and countries in the first place. In this sense, development must be approached in an inclusive and rights-based way and not merely as a measure of GDP growth. This is recognized in the UN Declaration on the Right to Development but effectively denied to the more than 15 million people obliged to live as refugees outside their country of origin.   

In recent years, many countries have expressed concern with regard to the level of resources they devote to the reception of refugees and asylum seekers and the processing of claims to refugee status. With the still accelerating economic decline, such concerns can be expected to increase. It is imperative however measures compromising the principles of refugee protection not be introduced in an effort to save money. Rights are not for sale in this way and in any event, restrictions on mobility often prove counter-productive. 

Ultimately, in my view, a coherent approach to development is one that seeks to avert the armed conflicts, the governance failures and the human rights violations that prompt people to leave their countries and seek protection in other states.