Feature story

Progress needed on poverty, political rights, says Board Chair Clare Short

Subscribe to feature stories email alerts

Related links Uzbekistan homepage

Clare Short and Jean Lemierre.

Parliament building in Tashkent, Uzbekistan, where EBRD held its 2003 Annual Meeting.

While reforms have paid off in the central European and Baltic countries that will soon join the European Union (EU), more must be done for progress in the poorest EBRD countries, said Clare Short, Chair of the EBRD’s Board of Governors and UK Secretary of State for International Development.

“The region has a long history in providing the trade routes that brought together East and West,” said Short in remarks opening the meeting  on Sunday 4 May in the Central Asian republic of Uzbekistan.

“This culture of exchange brought material and intellectual benefits to the world and to the people of Central Asia. Much of this progress I fear has been lost in recent years and I very much hope that by holding our annual meeting in the region we can help to drive forward progress and bring real benefits to the people of Central Asia, where the legacy of poverty, corruption and human rights abuse has yet to be overcome.

Transition has been “slower and more painful than expected"

She said the transition to market economies and democracies in some ex-soviet countries has been “slower and more painful than expected. The test of its success has to be improvements in the life of the people of the region and the reality is that levels of poverty and need are still far too high in many transition countries.”

She noted eight countries in the EBRD region have succeeded in their transition to market economies and democracy to the extent that they’ve been invited to join the EU next year. “The EBRD is working itself out of a job in these countries.”

But she said the difficulties in achieving transition throughout the ex-soviet bloc are compounded in Central Asia by terrible poverty. “One in every two people in these seven countries lives under the national poverty line. One in three lives on less than $2 a day. Inequality has increased. Life expectancy has declined. Diseases such as TB and HIV/AIDS are spreading and families have been forced to turn to subsistence agriculture to survive.

Expanding investments to poorer countries

Having initially focused on central Europe, the EBRD is gradually expanding its investments south and east to poorer countries in the Balkans, the Russian Federation and Central Asia.

“The foundation of sustainable development and improvements in standards of living is good governance,” said the Chair, who advocated action by governments and international institutions on:

• poverty reduction
• corruption
• transparent financial management and procurement
• human rights and other means of promoting stability and security
• regional integration for mutual growth via trade
• free movement across borders for labour, capital, goods and services.

Short urges Uzbek President Karimovto allow NGOs to operate freely

Short said the EBRD’s Strategy for Uzbekistan “makes clear that the country’s ability to grow its economy, attract investment and reduce poverty is dependent on progress with both economic and political reforms.

The Strategy calls for sustained progress towards multi-party democracy and more openness to allow greater freedom for the peaceful expression of all views. “There are particular concerns in Uzbekistan about lack of respect for freedom of religion, the prevalence of torture and the failure of the judicial system to protect the rights of citizens.”

Short urged Uzbek President Karimov to implement the recommendations of a Special UN Rapporteur who has concluded torture is “systematic” in the country, and to allow NGOs to operate freely.

“I was very disappointed to hear the discussions with the IMF have not made more progress (on unifying the country’s dual exchange rate). And I urge the Uzbek government to make the reforms necessary to put in place an IMF programme, in order that the economy of Uzbekistan can grow so that the people can have a better life.”

The Chair also commended the Bank on achieving record levels of investment – €3.9 billion – in 2002 “despite a global slowdown”. She paid tribute to Bank President Jean Lemierre and to Joachim Jahnke who after nine years, including five as vice-president, retired last year.

4 May 2003