Statement by Ambassador Richard T. Miller, U.S. Representative to the Economic and Social Council, in the General Debate on the theme of the Annual Ministerial Review, in the Economic and Social Council

Mr. President.

Yesterday we heard a remarkable series of presentations by representatives of Bangladesh, Barbados, Ethiopia, Ghana, Cambodia, and Cape Verde on their challenges and achievements in eradicating poverty and hunger. The seriousness with which they approached these presentations, and the thoughtful discussions that followed, enriched our understanding of the development process and validated the reforms we have undertaken in the Council. I commend them and thank them for their efforts.

What we heard in those presentations, and the panel discussions that preceded them, was mostly good news. Economic growth in the developing world is high. Levels of poverty and hunger are coming down, though not as fast as we would like. The countries from which we heard are undertaking policy reforms and implementing national development strategies that take advantage of a globalized international environment that is providing significant economic opportunities. We, of course, heard that more would be better: more growth, more investment, more access to markets, and more development assistance.

We also heard that economic growth is not the whole answer, or even perhaps the most important factor, in reducing poverty and hunger. Poverty is, above all, a social problem, and its eradication involves a complex array of societal changes—equality for women, an enabling environment for the private sector and entrepreneurship, respect for human rights and the rule of law, and the political empowerment of the poor. To eradicate poverty, we must create a culture in which no one is left behind, a culture of opportunity for all. We know the building blocks of such a culture.

Inclusive systems of democratic governance that guarantee civil and political liberties and economic freedom are essential. When people have control of their own destinies, they can make the economic choices that are best for themselves and their families. We talk a lot in the UN about national ownership of development strategies. I submit to you that what we ought to be talking about is individual personal ownership of development strategies.

Freedom is corroded by corruption. We must all fight corruption through policies that promote political accountability to our populations, transparent public sector management, competitive markets, and limits on the absolute power of the state.

Nations that want to grow must also make themselves attractive to investors. Private capital accounts for over 80% of the $158 billion in investment flowing from the United States to developing countries. The remainder is official development assistance, which has increased by an annual rate of 5.5% over the past 25 years. The fundamental realignment of monetary flows over this period from public funding to private funding underscores the importance of the private sector. We urge countries to implement regulatory frameworks and commercial laws that encourage business formation and build public confidence in private markets through a clear definition of property rights, transparent rulemaking, enforcement of contracts and general respect for the rule of law.

Another vital component of growth and opportunity is the liberalization of trade. Removing barriers to the free flow of goods will lead to economic growth and efficiency. The countries that benefit most from trade liberalization are the countries that liberalize. Their trading partners will benefit, too, but not as much. The World Bank has reported that per capita real income grew nearly three times faster for developing countries that lowered trade barriers than other developing countries in the 1990s. Countries must be prepared to remove trade barriers in order to achieve the necessary breakthrough in the Doha Round Negotiations. With increases in the global volume of trade, more people will benefit from economic growth, most especially the poor.

Countries that undertake measures such as these walk a path that promises prosperity for all their citizens, a path that ends in a place where poverty and hunger are things of the past.

On this Independence Day, I want to say a few words about my own country. In our discussion of the world economic situation on Monday, we heard a lot about the role of the United States in driving world economic activity. We understand this responsibility, and will continue to do everything in our power to ensure that the United States remains a champion of liberty and human rights, an engine of economic growth, a society that welcomes ideas and immigrants from around the world, an economy open to goods and services produced by others, a significant source of private investment, a generous provider of development and humanitarian assistance, and a leading developer of the research and technological change that promise a better future for all.

Mr. President, in 2000 we began to talk about a global partnership for development. The evidence at this first Annual Ministerial Review is that the partnership is alive and well, and we are seeing its positive results around the world. Unfortunately, the job is not done. We also see poverty and hunger that are persistent and devastating in many countries in many parts of the world. This is morally and ethically intolerable. To rest while others suffer is not acceptable. In the spirit of our partnership we can do more. Indeed, we must do more.

Thank you.