ECONOMIC AND SOCIAL COUNCIL BEGINS THEMATIC DISCUSSION ON STRENGTHENING EFFORTS

 

TO PROMOTE PRO-POOR ECONOMIC GROWTH

 

(Reissued as received.)

GENEVA, 2 July (UN Information Service) –- This afternoon, the Economic and Social Council began its thematic discussion on strengthening efforts to promote pro-poor sustained economic growth, including through equitable macroeconomic policies, hearing a presentation of the Secretary-General's report on that topic.  According to the report, policies and measures to translate economic growth into growth that was pro-poor should be determined and shaped by each country’s specific situation, and require international support.  Moreover, the current global situation called for international coordination of macroeconomic policies. 

The Council then moved to two parallel round tables, one on growth, poverty reduction and equity -- emerging paradigm, and the other on coherence and coordination of macroeconomic policies at all levels. 

Sha Zukang, Under-Secretary-General for Economic and Social Affairs, introducing the report of Secretary-General Ban Ki-moon on strengthening efforts at all levels to promote pro-poor sustained economic growth, including through equitable macroeconomic policies (E/2007/68), said that eradication of poverty was the overarching goal of the United Nations development agenda.  A multidimensional approach, taking a long-term view, coupled with measures to immediately alleviate the distress of the poor, would enable a balanced focus on present and future generations. 

The report focused on the complex issue of how to ensure that economic growth resulted in the improvement of lives of the poor, Mr. Sha said.  There were many ways to approach the concept of “pro-poor growth”.  As the report explained, pro-poor growth had been defined as any growth that brought any benefit to the poor.  It could also be defined as “growth that was poverty reducing”, leaving aside the question of the relative distribution of growth’s benefits between rich and poor.  The report suggested that policies and measures to translate economic growth into growth that was pro-poor should be determined and shaped by each country’s specific situation. 

The report also proposed some measures for pursuing this path.  First, countries should adopt national development strategies, as agreed at the 2005 World Summit.  Those strategies should be country-led and owned, encompass the broad range of development objectives, and have a long time horizon.  Second, policies focused on creating and maintaining a stable macroeconomic environment should form an essential part of a broad-based approach to reduce poverty through sustained economic growth, Mr. Sha said.  Third, despite best intentions, macroeconomic policies could adversely affect the poor relatively more than the rest of the population.  That should be addressed by targeted measures meant to ameliorate the negative impacts.  Fourth, the issue of income inequality –- which had a direct bearing on efforts to reduce poverty – needed priority attention. 

Mr. Sha observed that those measures needed to be refined according to each country’s circumstances, and would require international support, in the form of increased access by developing countries to low-cost financing, including increased and predictable flows of official development assistance.  The current global situation called for international coordination of macroeconomic policies.  While concerns for equity, pro-poor growth and global coordination of macroeconomic policies had come to the forefront, there was still a considerable lack of understanding of the linkages among them and how they should be addressed.  To realize the UN development agenda, they would have to adopt an all-encompassing approach.  It was hoped that today's discussion would contribute to that goal.

When the Council meets tomorrow, Tuesday, 3 July, at 9:30 a.m., it will continue its thematic discussion on strengthening efforts to promote pro-poor economic growth, and then hold its first Annual Ministerial Review: "Strengthening efforts to eradicate poverty and hunger, including through the global partnership for development".

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