Working Together to Further Reduce Poverty

The 4th Poverty Reduction Strategy Forum, held in Athens, Greece on 26-27 June 2007, facilitated an exchange of experience among the countries of the Western Balkans on how best to implement and execute national development strategies focused on poverty reduction and higher living standards. The Forum focused on the objectives of strengthening integration with Europe as a driver of economic growth, promoting greater social inclusion and poverty reduction, and designing and implementing power sector reforms to promote growth.

Orsalia Kalantzopoulos, World Bank Country Director for the Western Balkans, explained that “the Forum was organized in response to strong demand from the countries of the region that wish to enhance their capacity to implement effective growth and poverty reduction strategies, and learn from the experiences of other countries. The timing of the Forum is particularly appropriate, as growth in the region is strong and needs to be sustained and made more inclusive.”

The Forum was organized and co-sponsored by the Greek Government, the World Bank, the International Monetary Fund (IMF), and the U.K. Department for International Development (DFID). It brought together over 150 participants from Albania, Bosnia and Herzegovina, the Former Yugoslav Republic of Macedonia, Montenegro, Serbia, and UNMIK/Kosovo, as well as representatives from donor countries and civil society.

George Alogoskoufis, Greek Minister of Economy and Finance, noted that “Economic history shows that the only way to reduce poverty is to implement reforms that will lead to balanced economic growth. Greece cooperates actively with its neighbours in order to help them achieve economic and social progress. The region of South-eastern Europe, in general, and the Western Balkan countries, in particular, has the potential to be the economic hotspot of Europe.”

The Forum recognized the importance of energy sector efficiency investments and growth. The most important trends in the energy markets of Western Europe and its impact in South East Europe were discussed. Participants noted that energy market potential is best maximized through a sub-regional approach based upon the development of a common energy market and the attraction of the private sector. This requires a comprehensive and coherent approach with careful sequence of reforms and investment, supported with an adequate and targeted social assistance program, and an effective communication strategy.

The potential for economic growth, social inclusion, and poverty reduction in the Western Balkans demands greater attention to donor coordination and aid effectiveness. Evripidis Stylianidis, the Greek Deputy Minister of Foreign Affairs, stated that “the Western Balkans belong to a priority region for the Greek policy of development cooperation and assistance and, as such, they are the most significant recipients of the development assistance provided by Greece.” -The World Bank