WASHINGTON — World financial leaders acknowledged Sunday that they are in danger of losing "the other war," conceding that their failure to follow through on past pledges is contributing to global poverty, health crises and other ills.
Members of the International Monetary Fund and the World Bank ended their spring meetings here with fresh promises to participate in the reconstruction of Iraq. But their enthusiasm was tempered by a recognition that the postwar rebuilding program could drain resources from efforts to assist other countries in need.
"Our mandate ... is to sharpen the endeavor to drive out poverty wherever it exists," said South African Finance Minister Trevor Manuel. "It is very important that the bank and the fund remain focused on that."
Yet even as finance officials declared their determination to honor commitments to Third World development, their track record came under fierce attack from critics within and outside the two institutions.
World Bank chief economist Nicholas Stern accused wealthy nations such as the United States, Japan and European countries of not living up to their end of a bargain struck when a new round of global trade talks began in 2001. Although developing countries have made progress in reforming their policies, institutions and governments, he said, rich countries have done little to reduce barriers to agricultural and apparel imports.
"The barriers to trade that the rich countries put in the face of poor countries are absolutely outrageous," Stern said. "They're telling poor countries to open up their markets to get the benefits of trade and growth but at the same time closing their markets in precisely those areas where developing countries have a comparative advantage."
Stern said trade barriers are doing more harm to the world economy than anxiety associated with the U.S. military offensive in Iraq -- an unease that over the last year, the World Bank estimates, has reduced global growth by 0.5%. Removing import tariffs could boost global trade by as much as $800 billion annually, he said, and add 2% or more to economic growth.
Outside the beige and gray buildings where the finance ministers gathered behind barricades, several hundred multihued protesters offered their own critiques.
