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First, let me thank His Royal Highness King Mohammed VI and the Government of Morocco for making the inaugural meeting of the Forum for the Future such a success. I am particularly grateful to Minister Oualalou for his tremendous involvement and leadership in the finance ministers' dialogue.
This morning Ministers Oualalou, Benaissa, Secretary Powell and I had the great pleasure of co-chairing the Forum for the Future meeting. Minister Oualalou and I then co-chaired a working session of finance and economic ministers from the countries of the Broader Middle East and North Africa (BMENA), the G8 and other partners. This Forum was the culmination of dialogue fostered among the G8 and the countries of the region, both at the Sea Island Summit and in meetings between finance ministers that began over a year ago to discuss how the G8 and other partners can support economic reforms to achieve faster growth and job creation in the region. This meeting reaffirms the commitment of the G8 to its partnership with the BMENA countries. Together we will continue to work toward supporting both political and home-grown, market-oriented economic reforms in the region. We must remember that economic freedom plays a critical role in allowing the citizens of our countries to improve living standards for their families and to realize their dreams. This is true in any country, in every corner of the globe. The momentum towards economic reforms in the BMENA region is the key to promoting sustained long-term economic growth.
Recognizing the important role of the private sector, Ministers reviewed progress in launching the International Finance Corporation's (IFC) facility for technical assistance to support small and medium enterprises (SMEs) in the region. Activities are underway in SME management training, financial institutions and markets, and promoting an enabling environment for business. Donors have pledged more than $40 million to the facility, including a recent $5 million from the Islamic Development Bank, in addition to the IFC's own $20 million bringing the total level of financing to over $60 million so far an impressive figure. I particularly appreciated a presentation by Minister Mohieldin of Egypt about the achievements and benefits of past IFC technical facilities in his country. The ministers endorsed an approach to assessing the success of the IFC facility through measurable targets. We also agreed to share experiences on improving business climates by focusing on improving key indicators for small business development.
Ministers discussed a strategy that would facilitate greater cooperation among development financial institutions in the region through a Network of Funds. Building on existing mechanisms, the Network of Funds would serve as an advisory group for G8 and BMENA governments on policies to promote cooperation and improve the effectiveness of the region's official financing. In his presentation, Minister Saif of Bahrain emphasized the importance of building on the existing coordination mechanisms and that the Network of Funds should be a regionally based cooperative framework that would respect the autonomy and accommodate the different strategic missions of participating institutions. The Ministers asked the Arab Monetary Fund to organize a meeting of concerned institutions to develop the network. We look forward to discussions among regional and international development institutions on launching the Network of Funds.
Ministers agreed to establish a regional, microfinance consultative group coordinated by the Consultative Group to Assist the Poor (CGAP). Ministers also agreed to establish a CGAP technical hub and training center in Jordan by mid-2005 that aims to build capacity and introduce microfinance best practice principals to the region. Following a presentation by Jordan and Yemen, we reviewed and endorsed the initiative's first pilot program in Yemen, which could provide a strong demonstration effect for other BMENA countries.
We also had a very productive discussion on promoting financial flows for investment following a presentation by Commissioner Almunia of the European Commission. Remittances were identified as a significant component in these inflows. While it's clear that such inflows are making a substantial contribution to economic growth and development in the region, they are still impeded by inefficiencies in remittance markets. With this in mind, Ministers agreed to examine addressing impediments to these flows to allow remittances to play a more productive role in fostering sustainable development.
Finally, in order to move our discussions forward towards the practical and concrete steps necessary to realize the goals of market-oriented reforms that will promote sustained long-term economic growth, m inisters agreed to form a sub-ministerial organizing committee to prepare for future meetings and to review the activities of a limited number of working groups.
I want to thank all the G8 and BMENA ministers who have taken part in the Forum for their participation in, and dedication to, our continuing dialogue. Ministers welcomed the Kingdom of Bahrain's offer to host the next meeting of the Forum of the Future in 2005, and we look forward to another productive meeting. As we look to the future, it is our hope that this Forum will provide the finance ministers' dialogue with a framework within which they can pursue sustained engagement and on-going discussions on economic issues of interest to the region.