Announcement of Encouraging Signals from the London Summit : Press Statement by A. W. Clausen, President, the World Bank on June 11, 1984

FOR IMMEDIATE RELEASE eWorldBank 1818 H Stree t, N.W , Washingt on, D.C 20433 , U.S.A. BANK NEWS RELEASE Contact: H. Martin Koelle June 11, 1984 (202) 477-4541 ENCOURAGING SIGNALS FROM THE LONDON SUMMIT Press Statement by A.W. Clausen, President, The World Bank The London Economic Summit has made progress in strengthening the prospects for a continued global growth. It is encouraging to note the recognition by the world's leaders of the interdependence between the well-being of the industrial and the developing nations. The World Bank must now move to translate the views of the summit leaders into specific and effective action. The benefits of growth must now be increasingly spread to the developing nations--and particularly to the poorest among them--that are still in the grips of recession. The summit leaders have rightly expressed great concern about the acute problems in Africa. The World Bank is preparing a special action program for Africa that can play a major role in the international effort to help the poverty-ridden countries south of the Sahara. Summit leaders have made it clear that in their view a strong World Bank is a central element in the global economic. structure. They have called on The World Bank to increase the flow of resources to developing countries, to foster development over the medium and long term. We can do that; we can become a better utilized instrument with the determined support of our major member countries. We are encouraged to continue our efforts to secure supplemental funding for the International Development Association, our affiliate that assists the poorest of the poor nations. And we will move ahead with our plans to strengthen the futur e role of The World Bank. It is now vital that actions be taken to build on the initiatives agreed upon in London. The Bank has argued for some time that an expansion of global trad e and a roll-back of protectionism are needed to restore lasting growth and to keep the debt situation in hand. It is gratifying to note that the Summit has so strongly endorsed this viewpoint . There is a good case for a new round of multilateral trade negotiations. And a multi-year perspective on debt-rescheduling will also be a step in the right direction. Trade liberalisation, increased flows of external finance and improved domestic policies are three mutually reinforcing actions. In parallel with the International Monetary Fund we shall seek to strengthen economic policies that ensure the best use of scarce funds. We shall be following up on all of these fronts, both in our contacts with individual member nations and at the next • ministerial meeting of the ·joint World Bank/IMF Development Committee in September, the mo s t appropriate forum for such comprehensive economic discussions • - 0 -