We met in London for our regular consultations on the global economy and to discuss how we work on issues of common concerns.
We noted that the global economic recovery is gaining traction and welcomed overall robust growth in emerging and developing economies, supported by strong private demand. However, we are concerned that the recovery is uneven, unemployment remains high, and unsustainable patterns of growth may be re-emerging. We will continue to work with our clients to promote job-creating growth that is inclusive and sustainable.
We are concerned about the current high level of food prices, resurgence in food price volatility and inflationary pressure from rising food prices. We took note of the different national measures being taken to ensure food sufficiency but believe concerted actions at a global and regional level are needed. We will work with clients to avoid harmful policies, create safety nets and promote more resilient and productive agriculture. We agreed to develop a Joint Action Plan, emphasizing the need to reduce food price volatility and improve food and water security in coordination with the G20 process.
We stressed the importance of our work in helping to finance efforts towards climate change mitigation and adaptation. We will continue to support the UNFCCC process for establishing the Green Climate Fund (GCF) with a view to a successful and early conclusion. In the interim, the Climate Investment Funds will continue to be an important instrument for scaled-up climate action and an opportunity for learning lessons that would be of direct relevance to the GCF.
We emphasized the need to develop local capital markets to boost sources of local currency funding. We stressed the importance of tackling this issue according to individual country needs and taking account of the wider macroeconomic, regulatory and market infrastructure dimensions that have led to the under development of local markets. We will continue to support deepening of capital markets in our regions, drawing on each other’s experience.
We underscored the importance of engaging with the private sector as engines of growth and job creation. We will continue to help create and strengthen markets and work to correct market failures, to crowd-in the private sector. We agreed to work on a set of general principles that help us support sustainable market development and ensure additionality.
Finally, we also discussed the fast moving developments in North Africa and the Middle East region. We are actively assessing how we can respond to the needs of each of the countries involved. We approach this challenge in a spirit of close cooperation, drawing on lessons from other regions and on the complementary capabilities of each institution.
African Development Bank
Asian Development Bank
European Bank for Reconstruction and Development
European Investment Bank
Inter-American Development Bank
International Monetary Fund
The World Bank Group
London 11 March 2011