Commonwealth Ministers to focus on debt relief, international financial reform and the OECD’s harmful tax initiatives
15 September 2000
The annual meeting of Commonwealth Finance Ministers will be held in
Ministers will be reviewing the world economic situation with globalisation as the central theme running through all the issues on their agenda, in particular how best globalisation can be managed to maximise its benefits and minimise its costs, especially for the poorest people.
On debt, the key issue to be discussed is how the implementation of the HIPC initiative can be accelerated, as progress till now has been painfully slow. One of the main obstacles is the serious overload of conditionality as a pre-condition for debt relief; this can be overcome by streamlining and prioritising conditionality and by simplifying the procedures for eligibility, shifting the focus from decision point to completion point in order to secure rapid exit from unsustainable debt burdens. Ministers will also focus on the need to ensure additional resources are available to address poverty reduction in a sustainable manner.
A second key area of discussion is reform of the international financial system, including the international financial institutions, against the background of intensive public debate about the roles and functions of these institutions. An important challenge is to adapt the roles of the IMF and World Bank to the new needs of the 21st century, in ways that strengthen their support for both low-income and middle-income countries' stability and growth. Ministers will also be examining the future role of the IMF in multilateral surveillance including the need to make this process more transparent. They will also consider ideas on enhancing the future role of the Fund and Bank in managing crises and ensuring global stability and growth. A further challenge is to increase the participation of developing countries in key forums and institutions where their participation is insufficient, and to include these countries in important forums where they are not included at all.
Offshore financial centres (OFCs), particularly those in small states, are currently facing considerable challenges from the Organisation for Economic Co-operation and Development's (OECD) new 'harmful tax competition' initiative. The OECD has indicated that some forms of sanctions might be used against those OFCs regarded by the OECD as non-co-operating. Commonwealth Senior Officials and Finance Ministers will be considering this issue which is of serious concern to a number of Commonwealth countries.
Measures will be discussed to assist small state economies in making the transition to a freer global trade regime and more broadly to reduce their vulnerability.
The Commonwealth meeting will thus provide Finance Ministers a valuable opportunity to contribute to crucial debates on debt, reform of the international financial system, tax competition and small states. These are major challenges that need to be met so the gains of globalisation can be widely spread and the potential costs can be minimised.
Press conferences:
Press contact: Mr Kaye Whiteman
17-21 September at The Radisson SAS Bay Point Resort,
Tel: 00 356 374 894
Fax: 00 356 374 895
22-26 September at Panorama Hotel,
Tel: 00 420 2 6116 1111
Fax: 00 420 2 6116 4141
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