DEVELOPMENT COMMITTEE (Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the Transfer of Real Resources to Developing Countries) NINETY-NINTH MEETING WASHINGTON, D.C. – APRIL 13, 2019 DC/S/2019-0027 April 13, 2019 Statement by Rt. Hon. Penny Mordaunt Secretary of State for International Development and Rt. Hon. Philip Hammond Chancellor of the Exchequer United Kingdom Statement by Rt. Hon. Penny Mordaunt Secretary of State for International Development and Rt. Hon. Philip Hammond Chancellor of the Exchequer United Kingdom 99th Meeting of the Development Committee April 13, 2019 Washington, D.C. The international community has set itself ambitious Global Goals and has just over a decade left to deliver them. There are significant challenges in meeting this ambition. The biggest development challenges are increasingly concentrated in fragile contexts. The effects of climate change are being felt most by the world’s poorest. Debt vulnerabilities are emerging across low-income countries. Too many people, including women, girls and the poorest do not share the benefits of development. Many vulnerable people are at risk of being left behind, including people with disabilities. The United Kingdom is firmly committed to continue to spend 0.7% of our Gross National Income (GNI) on development assistance. However, we also recognise that the $2.5 trillion of financing required to meet the Global Goals will not be met by official aid alone. We need to forge new partnerships to mobilise new sources of finance, including mobilising private finance to support quality investment and achieve our shared ambition. The UK Government is holding a national conversation to find out more about the public’s views on and interest in ethical, responsible, and impactful investment practices. The UK Prime Minister will champion climate resilience at the UN Secretary-General’s 2019 Climate Summit. The UK will host an Africa Investment Summit to promote the investment African countries need to meet their development aspirations. Meeting the Global Goals will require getting the most out of digital technologies, we need to ensure that the benefits are accessible to all, including people with disabilities, small businesses, rural communities, women and minority groups. It will be important to redouble our efforts to support affordable, inclusive and secure internet access. The UK looks forward to working with the new WBG President David Malpass to end extreme poverty, ensure no-one is left behind and respond to global challenges, including fragility, crises and climate change. The financial and policy commitments contained in the WBG Forward Look, the 18th replenishment of the International Development Association (IDA), and the WBG Capital Package endorsed by Governors at the Spring Meetings last year will help ensure that the WBG continues to play a leading role in tackling global challenges and seizing opportunities to help meet the Global Goals. We welcome the WBG’s commitment to tracking progress against the Forward Look and capital package commitments and to update the Governors in one year. Alongside implementation of the Capital Package, the UK considers that prioritising seven specific areas will ensure that the WBG is as effective as possible: • First, we welcome the WBG’s planned Fragility, Conflict and Violence (FCV) strategy and look forward to ambitious proposals to improve ways of working in these difficult environments. • Second, delivering the ambitious climate change policy and financial commitments, including the Action Plan on Climate Change Adaptation and Resilience and the additional $200 billion in support for climate change projects between 2021-25, and supporting a pivot towards crisis preparedness. • Third, continuing to create and build markets and mobilise private finance to support quality investment, including through the implementation of the International Finance Corporation’s new strategy. • Fourth, we should ensure that no-one is left behind, including disability as a cross-cutting theme and ensuring more ambitious commitments on gender equality within the next International Development Association replenishment. Alongside this we should encourage greater investment in human capital. The UK welcomed the launch of the human capital project at the 2018 Annual Meetings, is pleased to note major progress over recent months, and looks forward to momentum being accelerated. The Bank has an important role to play in encouraging and supporting governments to make quality and inclusive investments in their own people. • Fifth, providing greater support to countries to help them adapt and harness technological change. We would like to see the Bank support effective and inclusive education, affordable, inclusive and secure internet access, and appropriately regulated financial services. These investments will create jobs and help more people to take advantage of the opportunities. • Sixth, sexual exploitation and abuse and sexual harassment. The UK urges the WBG to continue to take a leading role in tackling this critical issue. The WBG should continue to take concrete action to improve standards across the WBG institutions and help find solutions across the multilateral system. The UK would encourage all shareholders to work together on this issue. • Finally, the WBG must work with the IMF to prepare for, and mitigate against, the risks of rising debt levels, including through taking steps to enhance debt transparency and sustainability. Better transparency over existing debt will provide information to those countries’ own citizens, and better enable all stakeholders to consider and protect debt sustainability. UK Government expresses deep sadness and condolences over the tragic loss of life and devastation caused by Cyclone Idai. The WGB and international community should also ensure that they are responsive to urgent development and financing needs as they emerge, including: supporting the countries affected by Cyclone Idai to build back better; and supporting the development of a medium-term strategy for supporting displaced Rohingya and host communities in Bangladesh using developmental approaches. The UK also welcomes the strong support the WBG and the wider international community have shown to the Government of Jordan in establishing a new partnership approach for unlocking growth, investment and jobs through Jordan Growth and Opportunity: The London Initiative 2019, held in London on 28 February. This strengthened partnership will be needed to further support the path to sustainable growth and self- reliance. The UK supports effective monitoring and evaluation of progress across the WBG’s work with robust measurement of impact. We need to ensure that the WBG is maximising its impact in support of the Global Goals and also ensuring value for money. The UK looks forward to working with the WBG, its shareholders 2 and the international community to ensure that we address the challenges and opportunities outlined above so that we remain on track to meet our ambitious goals. 3