The world's poorest countries should not be used as "laboratories" by the International Monetary Fund and the World Bank, the Taoiseach, Mr Ahern, has declared in Washington.
Delivering the World Bank's President's Lecture, Mr Ahern said past efforts by the international financial institutions to create "a one-size-fits-all" economic development plan for the developing world had not worked.
"I am suspicious of any economic model that claims to provide a unique recipe for economic growth and development. Development economics is littered with failed theories.
"The factors influencing economic growth and development are diverse and complex and cannot be reduced to a single formula," said Mr Ahern, who dined last night with the Bank's President, Mr James Wolfensohn.
"Above all, the many poor and undeveloped countries that rely on the bank, and its sister institution, the International Monetary Fund, for loans and grants should not be used as laboratories for economic theories developed in the comfort of Washington offices," the Taoiseach said.
He welcomed the World Bank's efforts to develop partnerships with developing world countries and also the recent talks at both the bank and the IMF to give the Third World a stronger voice at their tables.
"I believe that the best decisions are made when the voices of those most affected by the decision are fully taken into account," he said, adding that he was "a little hesitant" about using Ireland's recent experience as a model for everyone else.
Developing countries must be given more opportunity to trade, he said, though he believed current efforts "remain fragmented and insufficiently co-ordinated".
Despite the criticism levelled by some European Union countries at Ireland's low Corporation Tax rate, the Taoiseach insisted that it was but one part of the package that had made Ireland attractive to foreign investors.
"Political and economic stability, access to a huge and wealthy regional market in Europe, highly educated workers, a strong regulatory environment, a Government focus on competitiveness, productivity, innovation and entrepreneurship, investment in infrastructure, particularly telecommunications links and e-commerce, have all underpinned our national policy on foreign investment," he told the gathering.
Despite economic difficulties, he said the Government remained committed to meeting the 0.7 per cent GDP overseas development aid target set by the United Nations by 2007.
"Overseas development aid is not charity. It is not the spending of loose change.
"It is an important component of the globalised world and helps forge the bonds that underpin international co-operation," he said.
Urging global action to combat HIV/AIDS, he said: "In sub-Saharan Africa more teachers are dying of the disease than are coming out of training colleges.
"It is hitting the private sector hard, particularly agricultural production.
"It is leaving millions of orphans without the care and protection of their parents, exposing them to the disease and to abuse. It is a huge challenge for underfunded health systems and for Government finances."
Paying tribute to U2's lead singer, Bono for his "passionate commitment" to the fight against HIV/AIDS, Mr Ahern said: "He has operated successfully in the US to mobilise political support at the highest levels and has achieved impressive results.
"I would welcome and fully support any such similar effort that Bono might undertake in Europe," said the Taoiseach, adding that efforts to reduce the Third World's debt must also improve.
The current approach "does not pay sufficient attention to indicators linked to human development. Nor does it give adequate weight to the economic impact of HIV/AIDS," he declared.
