Minister Väyrynen: The development of the private sector and economic growth are among the most effective means to reduce poverty

Press release 317/2008
4 September, 2008

When speaking at the High Level Forum on Aid Effectiveness in Accra, Ghana, on 4 September, Minister for Foreign Trade and Development Paavo Väyrynen commended the positive impact of the so-called Paris Declaration and the Accra Agenda for Action on the reduction of poverty. However, Väyrynen underscored that the aid effectiveness must also be examined from a broader perspective than the declaration and the agenda for action can offer.

"Both the declaration and the agenda for action include important elements for improving the aid effectiveness. However, one essential factor both documents fail to address is the significance of the private sector in reducing poverty. There is clear evidence of the fact that countries with a striving private sector and, consequently, a growing economy, can most effectively reduce poverty. The public sector can indeed provide framework for economic activity, but it cannot guarantee economic growth."

In his address, the Minister also brought up the danger of increasing fragmentation of development policy and assistance.

"In our thinking and actions, we need to go back to the spirit of Rio, which strengthened the clear connection between the environment and the development. For instance, we cannot think about the climate change as a separate issue from the development policy. Instead, they are closely linked with each other. In addition, the development policy as such also includes the risk of fragmentation. The development co-operation cannot produce quick and lasting results if it is not economically, socially and ecologically sustainable. All these three dimensions of sustainable development need to be taken into account in the development policy and co-operation throughout the process," Väyrynen emphasised.

The Accra Forum ended on Thursday, 4 September. Minister Väyrynen participated in the meeting as the chairman of the Finnish delegation.

Further information: Director General Ritva Koukku-Ronde, tel. 358 40 830 4868, and Advisor to the Minister Päivi Nevala, tel. +358 40 753 4375