Inter-American Development Bank

Inter-American Development Bank

Inter-American Development Bank:

Press Statement at the Annual Meetings

John B. Taylor

Under Secretary for International Affairs

United States Treasury

Okinawa, Japan

April 9, 2005

I would like to begin today by thanking the Minister Tanigaki, the government of Japan, and our hosts here in Okinawa. All of the governors and staff in attendance are impressed with the hospitality we've received on this beautiful island.

For President Bush, the economic achievement of countries in our hemisphere is – and will continue to be – among the highest international priorities of the United States. During the past four years I have had the opportunity to represent the President's commitment to the region as the United States has provided growing support for development funding, collaborative efforts to support sound economic policies, and critical assistance when countries have experienced acute times of need.

There is a great deal of positive economic news in our hemisphere. The U.S. economy continues to post strong, steady growth and job creation, which we know is very important for economic growth in the hemisphere. And it's exciting to see that Latin America last year posted the most rapid economic growth in decades, thanks to strong leadership and good economic policies in a number of countries. There are other examples, but this improved environment can be highlighted by Brazil's recent announcement that it does not need to renew its IMF program.

The IDB plays a critical role in helping countries in the region reach their economic potential and improve the standards of living for their people, and so I will be very happy to report back to the President and Treasury Secretary Snow that the Bank, the donors, and – most importantly – the countries themselves are demonstrating a strong commitment to achieve these goals. There exists a consensus on the most effective ways for development institutions like the IDB to help countries achieve growth: increased development assistance; the use of grants; and emphasis on measurable results; and a stronger focus on development of the private sector, particularly small businesses. I am pleased that each of these principles is embedded in the recent successful replenishment of the Multilateral Investment Fund (MIF). The United States is proud to be the largest donor of the MIF because we appreciate the valuable contribution of business development.

This weekend I also have bilateral meetings with representatives from a number of countries. I was fortunate to meet with President Uribe of Colombia and I look forward to my meetings with President Mesa of Bolivia, and President Maduro of Honduras. I appreciate the chance to discuss their achievements and their continued efforts to improve economic opportunities in their respective countries. On behalf of President Bush I renew the commitment of the United States people to helping them raise living standards and reduce poverty.

President Bush's focus on economic development has been to provide extra assistance to for poor countries that are working to put in place good policies – investing in its people, enforcing the rule of law, and promoting economic freedom. These principles define President Bush's Millennium Challenge Account (MCA) program. Nicaragua, Honduras and Bolivia have qualified for the program and are developing their proposals for funding. I look forward to discussing the program in my meetings here.

The best time to implement and lock-in economic reforms is when economies are strong, so we must be vigilant in forging ahead with this agenda now, and not let the seeds of complacency take root. Despite recent success there is still much to accomplish in institutionalizing macroeconomic improvements and strengthening the environment for entrepreneurs and investment. The United States looks forward to continued cooperation with our partners at the IDB and with economic leaders in the hemisphere to achieve economic growth and opportunity for our citizens.

I'll be happy to take your questions.