Position Paper for the Inter-American Development Bank Board of Governors Meeting

The issues before the annual Inter-American Development Bank Board of Governors meeting are: Implementation of the Recommendations from the 2001 Summit of the Americas, Strengthening and Reforming America’s Financial Systems and Institutions, and Priorities and Strategies of Rural Poverty Reduction.  Finland has great pride in being a member of the IDB and has high confidence in the IDB as a promoter of social and economic advancement within Latin America and the Caribbean.  Finland is also committed to its goals of development cooperation targeting the reduction of poverty of the poorest groups of people within Latin America and the Caribbean.  This includes: the promotion of democracy, conflict prevention, pursuing responsible and equal trade for the benefit of the developing countries and the preservation of the environment through proper development and good governance.

I.             Implementation of the Recommendations of the Summit of the Americas

Finland believes that economic growth is not enough to eradicate poverty.  Finland acknowledges that the absence of democracy maintains poverty and in accordance with Article 1of the Inter-American Democratic Charter, a democratic decision making process coupled with social-political mechanisms that increase equality are necessary.  Reaffirming Article 22 of the Universal Declaration of Human Rights, Finland believes that states in the region should have social security systems, serving the needs unique to each state, that would allow for equal distribution of income to those least advantaged members of society.  Finland strongly feels developing countries should have the ability to advance their society and economic systems through trade, but should also have a greater say in regards with trade and financing issues.  Finland acknowledges that reinforcing multilateral systems of trade are of importance but we emphasize the need for organizations to take into account specific problems voiced by developing nations.

II.            Strengthening and Reforming America’s Financial Institutions

Finland believes that LAC countries, through increased economic liberalization, can achieve improved standards of living with greater economic growth but many challenges remain.  In agreement with Article 4 of the Inter-American Democratic Charter, Finland believes that governments must be responsible and display transparency in the economic and social policies that are implemented.  Finland believes that international actors such as the Bretton Woods institutions, the WTO and IDB need to implement common rules to harness the positive powers of globalization.  In accordance with the Agreement Establishing the Inter American Development Bank Article 1, Section 2a(iv), Finland affirms that the alleviation of poverty and inequality leads to stability for economic systems and the stability of politics and governments, which further leads to solid foundations for business and development.  These policies must be also implemented with the environment in mind.  It is Finland’s view that economic prosperity and environmental protection go hand in hand.   Finland also acknowledges that the LAC countries debts should be reviewed on a case-by-case basis in order to restructure, postpone and possibly forgive in order to facilitate economic growth in economies hit hardest by great debt.  Finland stands behind these propositions by practicing these points in its foreign policy.  Finland supported the Jubilee 2000 project, which proposed the cancellation of debts of heavily indebted nations.  Finland is also a member of the Paris Club, which supports debt restructuring and exonerating policies towards heavily indebted nations.  Finland deems a high importance must be made in taking care of not applying a “one size fits all” policy to those nations in the region, rather, assessing the issues proposed by governments and applying suitable measures based on recommendations and case-by-case analysis should be the path taken by the IDB and other multilateral lending institutions.

III.  Priorities and Strategies of Rural Poverty Reduction

Steps need to be taken in order to decrease the gap between the rich and the poor.  LAC countries have some of the greatest economic disparities existing in the world today and the situation is not improving.  Finland actively supports developing nations within the region who commit themselves to market-based economic policies as well as social policies that give high priorities to poverty reduction and social justice. Article 39 (a-b) of the Charter of the Organization of the American States is the basis in which Finland considers such an economic and social foundation is necessary for strong democracies that further lead to improvements in citizens’ lives.  Strongly supporting Article 45 (a-b, g-i) of the Charter of the Organization of the American States, we further support development cooperation between Finland and developing nations that promote the attainment of basic public services such as health care and education for all, clean drinking water, basic sanitation, government subsidies for food and the advancement of woman, girls and indigenous rights.  This also includes agrarian rights for those who wish to make a living farming.  Finland also considers that governments of developing nations should also invest heavily in human capital so people may have the dignity of work in order to sustain themselves and their families in accordance with Article 23 of the Universal Declaration of Human Rights.  In this context, Finland urgently supports grass roots levels of democracy which allow for all to join in the decision making process.  This insures that all citizens have equal voice in matters of state and an equal voice in matters of resource allocation. 

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