Commonwealth Finance Ministers discuss global financial crisis, corruption and debt relief ahead of IMF/World Bank meetings
8 September 1998
Commonwealth Finance Ministers will meet in Ottawa, Canada, on Wednesday 30 September and Thursday 1 October, in preparation for the joint annual meetings of the International Monetary Fund (IMF) and the World Bank in Washington DC the following week. Their discussions will focus on three topics: the implications of the global financial crisis (especially in East Asia) and proposals for protecting countries against the destabilising effects of volatile capital flows; international and Commonwealth action to strengthen good governance and eliminate corruption in economic management; and progress in implementing multilateral debt relief for heavily indebted poor countries.
East Asian financial crisis
The meeting will consider proposals for crisis prevention and management made in a report by a group of Commonwealth experts that was established last year by Finance Ministers and Heads of Government to consider ways and means of protecting countries from volatile, international capital flows. Following on from its analysis of the causes of the East Asian crisis, the 10-person Group, comprising central bankers, academics and market practitioners, has distilled important lessons, especially for other emerging markets. The Group has recommended specific national and international measures to protect countries against capital volatility as well as manage such crises more effectively, should they occur in the future. In this regard, Finance Ministers are expected to discuss:
• specific measures of protection to soften the impact of abrupt capital movements on developing countries;
• improved monitoring of private markets, international regulation of short-term capital flows and more equitable burden-sharing between private lenders and recipient countries in crisis resolution;
• means to help strengthen financial systems;
• a larger and better co-ordinated role for international financial institutions, particularly the IMF, the World Bank and the Bank for International Settlements, in the prevention and management of financial crises, taking fuller account of the nature of each crisis, in particular the social impact of financial crises and its implication for policy choices; and
• the need for a more broad-based discussion of the new international financial architecture so as to better manage the process of globalisation.
Good Governance and Corruption
The Finance Ministers will consider how the Commonwealth can help to promote good governance and eliminate corruption in economic management through enhanced transparency, accountability and the application of the rule of law. They will discuss an interim report from another Commonwealth Expert Group established for this purpose last year, also at the request of Finance Ministers and Heads of Government. Emphasising the importance of attaining 'zero tolerance' for corruption, nationally and internationally, the Group believes the Commonwealth should consider whether it should have its own convention, codes of conduct, or other mutual co-operation arrangements to combat corruption.
Its interim proposals for action include: Commonwealth technical assistance for countries that wish to design their own national strategies to improve governance and combat corruption; the compilation and dissemination of information on good practice in Commonwealth countries; and consideration of the possibility of designing a global compact - which addresses both national and international issues - to fight corruption. The Group also calls on the Commonwealth to encourage and support the further development of other international initiatives such as the OECD's Convention on bribery. Its report will be finalised later this year after taking into account the discussions in Ottawa and will be presented to the 1999 meetings of Commonwealth Finance Ministers, Law Ministers and finally Heads of Government when they meet in South Africa.
Multilateral debt relief
Commonwealth Finance Ministers will review the implementation of the Heavily Indebted Poor Countries (HIPC) Initiative, launched nearly four years ago by the IMF and World Bank. The Initiative has been criticised by some for the slowness of its implementation and the eventual impact on the debt burdens of the 41 countries eligible for relief. Last year when they met in Mauritius, Commonwealth Ministers agreed on the Mauritius Mandate, a key element of which was to ensure that all countries eligible under the HIPC Initiative embarked on the process by the year 2000.
In Ottawa, the Ministers are expected to call for greater flexibility in the HIPC Initiative to increase the range of exceptional cases on their own merits. This would apply particularly to countries that are afflicted or recovering from conflicts such as Angola, Burundi, Liberia, Rwanda and Sierra Leone.
Finance Ministers will also review whether there is adequate financing for eligible countries to achieve debt sustainability as envisaged by the HIPC Initiative, and ensure that debt relief does not lead to diversion of concessional resources, especially for non-HPIC low income countries.
Other issues
The Ottawa meeting will also discuss the conclusions of a joint meeting earlier this year of Commonwealth Senior Finance and Law Officials, which called for further concerted actions against the continuing threat of money laundering in four key areas: guidelines to improve national co-ordination of anti-money laundering measures, especially in the financial and legal sectors; identifying and resolving the special problems of dealing with money laundering in countries where there are 'parallel' or 'underground' economies; strengthening regional initiatives for more effective implementation of anti-money laundering measures, including the establishment of anti-money laundering groups in sub-Saharan Africa; and wider participation in self-evaluation exercises in implementing the OECD Financial Action Task Force's 40 recommendations. Finance Ministers are expected to endorse the creation of a technical working group to further examine ways of dealing with the problems posed by underground economies.
Ministers will also review progress in implementing the Commonwealth Private investment Initiative (CPII) and launch a new fund of around US$10-15 million for the Caribbean region. Since 1996, when the CPII was launched, three funds have already been set up for Africa, the Pacific islands and South Asia. The CPII seeks to channel long-term commercial investments into expanding privatised or privatising companies, new ventures and small- or medium-sized private sector enterprises in Commonwealth countries outside the interests of international capital markets. The Ottawa meeting will also adopt a Commonwealth Code of Good Practice designed to help member countries attract and sustain inflows of private capital.
Note to Editors:
Press conference in Washington DC
A representative group of Commonwealth Finance Ministers will hold a press conference in Washington DC, on 3 October at 9.30 am in IMF Meeting Room B-702 (Blue Level), prior to the Interim and Development Committee meetings of the IMF and World Bank, to publicise the outcomes of their discussions in Ottawa as well as any initiatives they intend to pursue at the IMF/World Bank Annual Meetings.
Reminder Notice to the Media
Commonwealth Finance Ministers Meeting
Ottawa, Ontario, Canada, 29 September - 1 October, 1998
Canada will host the annual meeting of Commonwealth Finance Ministers at the Canadian Government Conference Centre in Ottawa, 29 September - 1 October, 1998. Chaired by the Honourable Paul Martin, Minister of Finance for Canada, the meeting will bring together Ministers and delegations from the 54 member countries of the Commonwealth.
Media representatives wishing to cover the Commonwealth Finance Ministers Meeting must be accredited in order to have access to the facilities.
Accreditation is open to all bona fide news organisations. Freelance media representatives must be sponsored by a recognised news organisation and attach a letter of assignment to the accreditation form. The attached accreditation form should be completed and sent by fax, on or before Tuesday 15 September 1998.
Media representatives are required to book and pay for their own hotel accommodation and are advised to contact the following hotel where a limited number of hotel rooms have been block-booked, before Tuesday 15 September: Minto Place Suite Hotel, 433 Laurier Ave, +1 613 782 2350. Please make reference to the media rooms block-booked by the Department of Finance for the Commonwealth Finance Ministers Meeting when speaking to the hotel (ref no 473228).
Travel arrangements are the responsibility of each media representative. A shuttle bus service will be available from the Ottawa MacDonald-Cartier International Airport which is roughly 20 minutes (15 kilometres) by car to the Government Conference Centre in downtown Ottawa. A shuttle bus service will also be available at scheduled times between the Government Conference Centre and official program events taking place away from the main meeting site. There will also be a scheduled bus service from the Minto Place Suite Hotel and the Conference Centre.
Media from outside of Canada must hold a valid passport and carry proper requirements for entry into Canada. For information on visa and other entry requirements, please contact your nearest Canadian mission. Health certificates are not required for entry into Canada.
In addition to the Finance Ministers Meeting, there are a number of other related events taking place. These include the Halifax Initiative Forum, 28-29 September, Parliament Hill, Ottawa (contact: Pamela Foster, Tel: +1 613 241 4611); Commonwealth Business Forum, 29-30 September, Chateau Laurier Hotel, Ottawa (contact: Brian Shackelton,
Tel + 1 613 238 7858 ext 222 or Stéphane Blais, Tel: +44 171 747 6566); North-South Institute Seminar, 29 September, Sheraton Hotel, Ottawa (contact: Alice d'Anjou,
Tel: +1 613 241 3535).
For more information on the Commonwealth Finance Ministers Meeting please contact:
Information & Public Affairs Division Public Affairs and Operations
Commonwealth Secretariat Department of Finance
Marlborough House 140 O'Connor Street, 19-East
Pall Mall Ottawa, Ontario. Canada
London SW1Y 5HX K1A 0G5
England Tel: +1 613 992 1574
Tel: +44 171 747 6385/6 Fax: +1 613 995 6938
Fax: +44 171 839 9081
Additional information on the Commonwealth and the Finance Ministers Meeting is available from the following Internet sites:
http://www.fin.gc.ca/ and http://www.thecommonwealth.org/
APPLICATION FOR MEDIA ACCREDITATION
Last Name: ____________________________ First Name: ________________________
News Organisation: __________________________________________________________
Address: ____________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Contact or Mailing Address (if different from above):
___________________________________________________________________________
___________________________________________________________________________
Telephone: ________________________ Mobile/cellular: _________________________
Fax: _________________________ E-mail: ______________________________________
Category:
( ) Journalist ( ) Photographer ( ) Camera Operator ( ) Technician
( ) Producer ( ) Other (specify) __________________________________________
For Non-residents of Canada:
Date of Birth: ___________________ Place of Birth:_______________________________
Passport Number: _________________ Country of Issue: ____________________________
Expected date of arrival in Ottawa: _______________________________________________
Signature: __________________________________________________________________
Please fax by Tuesday 15 September to:
Mischa Manderson Mills
Information & Public Affairs Division
Commonwealth Secretariat
Tel: +44 171 747 6385/6
Fax: +44 171 839 9081
98/61 8 September, 1998
delicious
digg
reddit
facebook
stumbleupon
News feedsLatest Speech
- Commonwealth Sports Ministers MeetingCommonwealth Secretary-General Kamalesh Sharma
Useful Resources
Subscribe to our weekly email news bulletin and quarterly ezine - click here