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FROM THE OFFICE OF PUBLIC AFFAIRS
JS-183Good afternoon. I was very pleased to host my fellow G-7 Finance Ministers and Central Bank Governors over the last two days to discuss developments in the world economy and the challenges that confront us. I appreciated the opportunity to engage on some very important issues with my colleagues.
One important issue is the future of Iraq. During our bilateral discussions and in the G7 meetings we began substantive discussions about how our nations and the international institutions can work together to help the Iraqi people recover – not just from 25 days of conflict, but from 25 years of economic misrule. We agreed that the international financial institutions should provide technical assistance and expertise in Iraq and undertake a preliminary needs study. I
noted the importance the United States attaches to international cooperation as the people of Iraq claim their liberty.
Cooperation is necessary in the efforts underway to find, freeze and marshal the assets of the Saddam regime and there was broad agreement on that subject as well.
And again we recognized that cooperation is vital for providing humanitarian assistance and for the challenges of reconstruction ahead. We had useful discussions about how to proceed with the Iraqi debt - recognizing that the Iraqi people cannot bear the burden of current debt levels - and we recognize the need of the Paris Club to begin to address this issue.
We shared the view that growth in our economies is not as strong as it needs to be -- both because of geopolitical uncertainties and other underlying weaknesses. A reduction of geopolitical uncertainty will help a global recovery, but this alone will not bring about the strong and lasting growth essential for our countries and for the world. Each of us pledged to pursue economic policies at home that support strong growth with low inflation, to raise potential growth through productivity-enhancing structural reforms, and to strengthen investor confidence through continued improvements in corporate governance practices, market discipline, and transparency.
Here in the United States, President Bush’s Jobs and Growth plan will enhance growth potential over the long term. I underscored the need for structural reform in Europe and Japan so that all are contributing to global growth.
Terrorism financing continues as a key priority. We reiterated our commitment to implement the work plan we laid out in February and thereby keep our financial institutions and systems safe from abuse by terrorists. We reiterated our commitment to wage war against terrorist financing.
We also reiterated our commitment to strengthen crisis prevention and resolution measures as reflected in the communiqué. We also adopted an action plan which documents the progress made last year and charts a course for future activity.
As for crisis resolution, we welcomed the strong leadership that Mexico has shown and there was broad agreement on the need to move forward with clauses to promote an orderly restructuring process.
We reaffirmed our support that aid is most effective in countries with sound policies, good governance, and an environment conducive to private sector-led growth.
Finally, we underscored the importance of trade liberalization to global growth and poverty reduction. Successful implementation of the Doha Development Agenda, in particular the agricultural and financial services agendas, offers potential benefits for all countries.
I would now be delighted to take a few questions.