Report by Dr. Surakiart Sathirathai
Working Group: Poverty & Economic Empowerment
Petra Conference, 22 June 2006

Moderator: Dr. Surakiart Sathirathai, Deputy Prime Minister of Thailand
Presenter: Professor Jeffrey Sachs

Main Points discussed:

I had the privilege of chairing the session on Poverty and Economic Empowerment. We were honoured by the presence of His Majesty the King and His Royal Highness Prince Ali. There were approximately 30 participants attending this session including 6 distinguished Nobel Laureates. We also benefited from the views and thoughts presented by Professor Jeffrey Sachs at the morning plenary.

I started the session by highlighting the conclusions of last year’s discussions on Peace and Prosperity chaired by His Excellency Bassem Awadallah which I also participated. I informed the participants that we stressed the linkages between poverty and security; identified innovative financial mechanisms to generate jobs and income such as micro-credit initiatives; underscored the empowerment of women and good governance reforms in sustaining economic development.

Since the inaugural Petra Conference, we have been encouraged by the commitment of the international community in reaffirming their commitment to fight poverty and pursuing development as well as the opening of markets to developing and least developed countries. Indeed, the world leaders last September signed The World Summit Outcome Document (WSOD), in which one of the commitments was the pledge to achieve the Millennium Development Goals (MDGs) by 2015. However, after the 8th May meeting in the UN General Assembly, disagreement between developed and developing countries undermined efforts to proceed forward with the development agenda. Our concern is how to break this impasse.

Yesterday, in our discussions, we recognized that we have not made poverty history and that sustainable development was a complex issue. Professor Sachs gave us some horrendous figures of how extreme poverty costs 30,000 lives a day, and that 1 billion people continue to struggle for daily survival to meet the basic needs of adequate food, fresh water, health care, be they in Asia, Africa, or Latin America. What was shocking was that such extreme poverty was being tolerated despite being remediable and soluble. We also discussed Professor Sach's presentation in which he gave us a perspective of suffering being a cause of conflict and that scientific approaches can serve as effective solutions.

There was a general convergence of views on various approaches to how countries could pursue the path on long-term development and escape from poverty. Allow me to highlight these points:

First, the principle of self-help which comprise practical steps that can be taken at the national level. For instance, the shortage of water and problems of drought can be addressed by rain-making projects. I cited Thailand's 20 years experience in the application of rain-making project. In Africa, rainwater harvesting and supplemental irrigation, at low cost, can make a huge difference. We also discussed the significance of micro-credit financing and initiatives in giving local communities access to capital. I gave the example of Thailand's revolving fund for 80,000 villages which have yielded tangible results in creating jobs and income at the grassroots level. It also forms part of a lifelong learning process in accounting and management. We also stressed the role of women and their empowerment as being indispensable to promoting development.

Secondly, self-help is not enough. Partnership is needed both amongst developing countries known as South-South cooperation, and between developed and developing countries or North-South cooperation. There are many examples to illustrate the effectiveness of such partnerships through sharing of experiences and best practices. A number of countries were referred as models of development. I also added that the United Nations can serve as an incubator of ideas and a clearing house of best practices. One Nobel Laureate reminded us that international agencies as the World Bank and IMF needed to differentiate the conditions of nations and that there was a need for assessing assistance on long-term growth.

Thirdly, economic aid. There was consensus that for the poorest regions, direct assistance at the community level, for agriculture, health, education, and infrastructure is vital and urgent. It was agreed that a bottom-up approach was effective in ensuring that aid would be targeted to the people in need. It was evidenced that aid which was channeled directly to the community was better managed and yielded better results. For developing countries not trapped in extreme poverty, private investments for job creation are key. Deputy Prime Minister Simon Peres stressed how the promotion of private investments serves to generate jobs, opportunities, technology, and education.

Fourthly, on economic peace. Many of us expressed concern of the increase in military expenditure at the expense of development. We discussed how economic cooperation and confidence building could contribute to regional peace. Examples were cited such as by Deputy Prime Minister Shimon Peres on the development of a multi-national water strategy comprising Jordan, Israel, and Palestine. I gave the example of Southeast Asia's experience in turning the battlefield into a market place to overcome ideological differences. Constructing peace required the involvement of the private sector, and the promotion of public-private sector partnership. Corporate social responsibility was also mentioned.

Lastly, we agreed that the Nobel Laureates had a significant role in demonstrating leadership in what His Majesty King Abdullah described as " pre-emptive problem solving" relating to poverty. We commended His Majesty's proposal for a Laureate Commission for Sustainable Development as an important vehicle to promote the implementation of the Millennium Development Goals (MDGs).

There was a lively discussion emphasizing that the MDGs are achievable if supported by vigorous science, practical approaches, and good governance. Powerful technologies for growing more food, fighting disease, and overcoming economic isolation, already exist, and the Laureate Commission can help to identify those powerful and practical approaches and to ensure that they reach the people in need.

In concluding, it was an enriching experience for me to have moderated this session. Our discussions were candid and forthcoming. The valuable ideas generated throughout the deliberations will contribute to international efforts in addressing the scourge of poverty. I will be consulting with Professor Sachs on how to further pursue our recommendations as inputs for policy makers.

Thank you.