1. A broad range of participants including Heads of State and
government, Ministers and representatives of developing and
developed countries, heads and representatives of international
agencies, and participants from the private sector and civil
society met in Shanghai on May 26 and 27 to:
·take stock of the current state of global poverty reduction and
human development;
·share insights on the key factors underlying successful results
and scaling-up of growth and poverty reduction, drawing upon the
case studies, field visits and global dialogues undertaken
preparatory to this Conference, and
·identify practical measures required to accelerate growth and
progress in poverty reduction to give impetus to the implementation
of the previously agreed agenda of global poverty reduction.
2. In Monterrey two years ago, the global community embraced a
new partnership to stimulate economic growth and accelerate poverty
reduction, guided by the Millennium Development Goals (MDGs).
Developing countries committed to strengthen their policies and
actions, developed countries to open their markets and increase the
level and effectiveness of aid, and development agencies to provide
effective and harmonized support.
3. Finding development solutions that work, that endure and that
can be applied across the world is imperative to meet the MDGs. The
Shanghai Conference provided a unique opportunity to learn from the
rich and diverse experience on growth and poverty reduction—both
successes and failure—and to explore ways in which ingredients of
success at the project, country and global levels can be built upon
and adapted to scale up progress on poverty reduction in all parts
of the world.
4. The Conference recorded its thanks to the Government and the
people of China and to the World Bank, and to all countries and
sponsors that contributed to the Global Learning Process.
Progress in Reducing Poverty
5. Impressive progress has been made on poverty reduction and
human development in recent decades:
·Over the past 20 years, the proportion of people in developing
countries living on less than US$1 per day has fallen from about 40
percent to less than 21 percent, even as the world's population has
increased by 1.6 billion;
·Over the past 30 years, illiteracy in the developing countries has
been cut nearly in half, from 47 percent to 25 percent of all
adults, and
·Over the past 40 years, life expectancy at birth in developing
countries has increased by 20 years.
6. Uneven progress and major setbacks faced by even better
performing regions and countries, however, underscore important
continuing challenges to meeting the MDGs. In Sub-Saharan Africa, a
special focus of this Conference, economic growth and poverty
reduction faltered between 1965 and 1990, despite progress on
health and education indicators. Development results have lagged
most in low-income countries under stress (LICUS). The transition
economies of Eastern Europe and Central Asia suffered steep
declines in living standards and sharp increases in poverty in the
early 1990s, but there has been a turnaround since 1995.
7. East Asia recovered quickly from the financial crisis of 1997
but faces continuing challenges of economic restructuring and
poverty reduction. South Asia's growth and progress on poverty
reduction has accelerated over the past two decades, but the
distribution of benefits has been uneven. Growth in Latin America
has been slow and high levels of income inequality persist in some
countries. The economically diverse MENA region continues to face
economic and social challenges, the most significant being
unemployment.
8. Progress since Monterrey has fallen short, underscoring the
urgent need for a vigorous and urgent scaling up of actions by all
parties based on the principles of the Monterrey partnership if the
MDGs are to be achieved. The recent Global Monitoring Report
produced for the Development Committee suggests that on present
trends, most MDGs will not be met in most developing countries,
particularly in sub-Saharan Africa; shortfalls are expected to be
the greatest on the human development goals, especially on
health.
Lessons on Scaling Up for Results
9. The Global Learning Process of case studies, field visits and
global dialogues has explored how countries and institutions have
taken poverty reduction programs to scale, what they did, and most
importantly, how they did it. The process has yielded numerous
valuable insights, and has strongly reaffirmed many lessons from
past experience. This process tells us that scaling-up is possible,
and when countries have the right ideas, support to implement them,
and an environment conducive to long-term management and
implementation, they get results. Scaling up can happen at all
levels, countrywide or in entire regions or sub-regions, in
programs and projects, and even in countries in or emerging from
conflict.
10. From past experience, it is clear that development is a
long-term transformation requiring sustained commitment and strong
country capacity to manage development processes toward desired
outcomes. There is consensus on what needs to be done to accelerate
development at the country level:
·Countries must be in charge of their own development and
development strategies have to be tailored to country
circumstances;
·Any effort to successfully ameliorate poverty must be
comprehensive and encompass well-coordinated and integrated actions
on many fronts, but development initiatives need to be sequenced
and moved forward opportunistically;
·Growth is critical for job creation and poverty reduction. This
requires strong economic fundamentals, a sound climate for
investment and entrepreneurship, in particular for farmers and
small businesses, redressing corruption and improving governance in
both the public and private sectors, and enhanced transparency and
accountability. In China, which lifted 400 million people out of
extreme poverty since 1981, authorities focused on increasing
economic opportunity in the agricultural sector, opened up to
foreign trade and increased labor mobility for the rural poor,
and
·Growth is critical but not sufficient for the well being of poor
people. Poor people must share in the benefits of growth, and
growth must be accompanied by investments in poor people through
adequate and effective delivery of education, health and social
infrastructure.
11.?A supportive international environment is an important
complement to countries' own actions:
·A more open and balanced global trading system is central to
achieving the MDGs, and can be a powerful engine for growth and
poverty reduction;
·Aid has been an effective and powerful catalyst in good policy
environments, and when it is well aligned with country priorities
and systems, and provided with predictability and flexibility,
and
·Financial crises in a world of volatile capital can be
debilitating and can set back progress on poverty reduction by many
years, pointing to the need to strengthen the international
financial architecture.
12.?Given the scope of the global poverty challenge, it is
clear that economic growth and poverty reduction have to be
accelerated through significantly scaled up efforts in order to
meet the MDGs. The Global Learning Process leading up to Shanghai
and the 100 case studies have provided insights on how many
countries and communities have focused on implementation that led
to successful outcomes. These lessons and insights are important
for scaling up and replicating successes in one part of the world
and in one community in other parts of the world and other
communities:
·The diversity of the case studies shows that there is no single
blueprint or model for scaling up. Most of the case studies were
significantly tailored to local conditions, requiring on-the-ground
judgment and a significant investment in capacity building and
training;
·Successful scaling up requires a long-term vision and sustained
efforts over time. In West Africa, it took a broad-based alliance
and 30 years to defeat river blindness in large parts of Africa.
Seven of the original nine donors are still with the program.
·Sustained political commitment and leadership are key for
successful implementation of scaled up poverty reduction efforts,
whether at the project or program level or in pursuing effective
growth and poverty reduction strategies at the national level.
Political stability, continuity and consistency in Costa Rica,
Korea and Malaysia, among others, allowed reforms to take root that
led to visible results and widened the commitment and buy-in to
reforms;
·Visionary leadership and strong management are also key for
successful scaling up. The micro-finance story in Bangladesh has
shown how entrepreneurship and innovation transformed financial and
other service delivery to the poor; visionary social entrepreneurs
and donors worked consistently and tenaciously to help implementing
agencies do things differently;
·Empowerment and involvement of poor people is a prerequisite for
effective results and for successful scaling up of programs. The
Yemen, Malawi and Zambia Social Funds all reached nationwide
coverage by turning top-down, centralized service provision models
on their heads – and putting communities in charge.
·Programs conceived in a participatory manner that address the most
pressing needs of large numbers of people generate great interest
and support. Egypt and Bangladesh succeeded in sharply narrowing
gender disparities in school enrolment by increasing demand for
girls’ education though community awareness campaigns, reducing the
distance girls travel by building schools closer to where families
lived, providing sanitation facilities and increasing the number of
female teachers;
·Transparent rules – in budgets, processes and procedures – leads
to increased accountability, empowers clients and reduces
corruption. In India, the Bangalore Agenda Task Force is a powerful
example of a partnership between the private sector, civil society
and government leaders to improve government performance,
monitoring progress through a citizen report card;
·Appropriate sequencing of reforms and attention to their political
economy is key to effective implementation and sustainability of
reforms. Uganda first addressed security – critical in a
post-conflict situation – and generated appetite for the difficult
growth agenda;
·Learning and experimentation guided by systematic monitoring and
evaluation provide the foundations for scaling up programs. Results
tracking, periodic evaluations and information dissemination help
to make mid-course corrections, and adapt programs as
necessary;
·Changing and adapting institutions is central to effective poverty
reduction interventions and programs that can be successfully
scaled up. The highly successful Kecamatan Development Program in
Indonesia evolved from an earmarked grant to villages, because of
the emphasis on institutional development and change.
·Adequate and assured long-term financing is a necessary
prerequisite for scaling up and external financing can be used to
leverage large amounts of domestic finance. In Brazil’s community
driven development program in the Northeast, state budget
allocations were ten times the World Bank's investment.??
Donor financing is most effective when underpinned by genuine
country ownership, mutual trust and a focus on results.
Scaling Up for Accelerated Poverty
Reduction
13.?The Conference reaffirmed that the timing is propitious
to take forward these lessons so as to accelerate and broaden
results on poverty reduction. The goals are clear, as embodied in
the Millennium Development Goals, as are the means, as agreed at
the Summits in Monterrey and Johannesburg. The Conference agreed
that it is necessary and urgent to scale up actions by developing
and developed countries, and by international agencies, if the MDGs
are to be achieved. Resolute and concrete steps are needed to
implement the policies and actions that have been agreed upon to
accelerate progress on growth and poverty reduction, as recently
reaffirmed by the Development Committee.
14.?Despite a marked improvement in developing country
policies, reform efforts and the build up of capacity in
governance, legal, judicial and financial systems will need to be
sustained and deepened. A substantial scaling up of investment and
improvement in productivity is needed to fill the gaps in
infrastructure and human capital. Sustained efforts and innovations
in domestic resource mobilization are the bedrock for long-term
poverty reduction.
15.?Expanding trade by collectively reducing barriers is
the essential tool to spur global growth and tap the benefits of
globalization to reduce poverty and raise living standards. A
successful Doha Round that delivers on its promise to improve
market access and reduce subsidies, especially in such key areas as
agriculture and labor intensive manufactures, is critical for
accelerating progress on the MDGs.
16.? Much larger amounts of aid will be required to scale
up development results. Developed countries that have not yet done
so should make concrete efforts towards the target of 0.7 percent
of GNP as official development assistance. The replenishment of the
Asian Development Fund was welcomed, including the contribution for
the first time by China. A successful replenishment of the African
Development Fund and increase in IDA-14 commensurate with the
development challenges of meeting the MDGs will be important next
steps. Serious consideration needs to be given to options to
mobilize the additional financing that will be needed, including
examining an international finance facility, global taxation and
other proposals.?
17.? Aid also needs to produce effective results. For this,
aid should be predictable, timely and long term. The commitments
made at the High Level Forum on Harmonization in Rome in February
2003 to improve the management and effectiveness of aid need to be
implemented expeditiously, with an evaluation of progress at the
follow up Forum in Paris in March 2005.? This agenda involves
harmonization and simplification of donor’s support, and most
importantly, alignment of support behind countries’ own poverty
reduction strategies and processes.? The highest importance
should be assigned to supporting developing countries manage for
results in government, in business and in their communities, and
the Core Principles of Marrakech including strengthening country
capacity to manage for results should be translated into
practice.
18.? Debt reduction for the most-indebted poorest countries
is critical to help them regain momentum on growth and poverty
reduction. An early and effective implementation of the enhanced
Heavily Indebted Poor Countries Initiative, with the full
participation of all creditors is key to meeting this objective.
Continued attention and efforts are needed to preserve the
long-term debt sustainability of these countries, including through
increased provision of grants. Measures also need to be considered
to help the poorest countries better withstand exogenous
shocks.
19.?Stronger cooperation between all development partners
including South-South cooperation can facilitate scaling up through
the exchange of ideas, the transfer of resources and the
strengthening of capacity. The approaches adopted to address the
needs of less advantaged regions within their own countries were
welcomed, such as in China, where more advanced regions/provinces
provide financial and material support to less advanced
ones.?
20.? The continuing importance of financing from the
Multilateral Development Banks, of new, innovative instruments to
respond to evolving needs and of harmonized and simplified lending
policies were emphasized. The reduction in the cost of borrowing
for countries by the Asian Development Bank and the creation of the
LICUS Trust Fund by the World Bank are welcome measures in this
regard.? The meeting welcomed China’s contribution of an extra
US$20 million to create a Special Fund for Poverty Reduction and
Regional Cooperation in the Asian Development Bank, as well as the
announcement by China and UNDP to establish an International Center
for Poverty Reduction.
Summary Lessons and the Way Ahead
21.?As the review of the Millennium Summit in 2005
approaches, and with only a decade left until the target date for
achieving Millennium Development Goals in 2015, taking forward the
lessons learned here in Shanghai is of the greatest urgency.
Achieving the MDGs will depend not only on increasing resources but
also on renewed commitment to adapt and accelerate implementation
of successful approaches across and within countries.
22.?The Shanghai Conference on Scaling Up Poverty Reduction
brought together, for the first time, development practitioners
from around the world to discuss practical ways to accelerate
poverty reduction and to scale up successful poverty reduction
programs and activities.? This was a Conference about ideas,
and complements the discussions we have had in other fora.?
The systematic learning from experience and the exchange of ideas,
practitioner to practitioner, has shown that good ideas and good
evaluation of outcomes can have powerful impacts within and across
countries.?
23.?The learning process and the discussions over the two
days of the Conference have highlighted lessons that together
constitute the Shanghai agenda for poverty reduction:
??A long-term vision and targets that stretch beyond
immediate constraints are the starting points for scaling up.
??Scaling up takes time and a comprehensive approach, but must
be sequenced opportunistically.
??A strong management focus is key for scaling up, and
requires the build up of capacity and long term administrative and
management functions.
??Sustained growth is critical for job creation and poverty
reduction.
??Partnership between all stakeholders—the government, the
private sector, civil society and donors—under the genuine
leadership of the country is needed to leverage and scale up a
country’s development efforts.
??Large scale, long-term programs cannot be undertaken without
adequacy and certitude of financing, and in some cases, without
adequate debt reduction to achieve sustainable debt levels.
??Openness to trade and successful completion of the Doha
Round is essential for global poverty reduction.
??Poor people are assets and agents of change—so respect for,
empowerment and involvement of poor people is necessary for
successful results.
??Inclusion is critical in all aspects of scaling up.?
Special attention must be given to the plight of the ultra-poor, to
gender disparities, to the participation of youth and to the
disadvantaged and disabled.
??The scourge of HIV/AIDS must be aggressively tackled.
??Poverty and environmental sustainability are closely
interlinked.? Addressing the constraints of water, sanitation,
power and renewable energy are crucial for long-term poverty
alleviation.
??Experimentation, measurement and focus on results, and
systematic evaluation are key to successful scaling up.
??Culture and history are essential elements in
differentiating programs, and must be given due respect.
25.? The learning process that has been embarked upon, and
the discussions at the Shanghai Conference, are a beginning not an
end.?Continuous learning and the development of networks for
the exchange of ideas will be the enduring contribution of this
Conference by ensuring that the lessons we have learned are built
upon and translated into results for accelerating growth and
poverty reduction.
(China.org.cn May 27, 2004)