The Minister for Finance, Mr McCreevy yesterday criticised the anti-globalisation movement which staged demonstrations in Washington over the weekend, while at the same time calling for greater transparency in the world's financial institutions.
"Working in the supposed interests of global democracy, unaccountable and unelected groups claim unto themselves the right to set the development agenda, on the grounds that globalisation has robbed nations of the power to determine their own destiny," the Minister for Finance said.
The anti-globalisation movement was "articulate, well-organised and motivated," but it showed a lack of historical context. Long before the creation of the World Bank and the IMF, "all except the largest nations lacked the exclusive power to shape their own future.
"Market instability, and lack of confidence in the economic and financial system worldwide, were more in evidence between the World Wars than now."
Despite some popular scepticism, the Bank and the Fund were successes, not failures, as they had reduced the incidences and extent of crises and strengthened the global economic and financial systems, Mr McCreevy said, speaking at the joint annual session of the World Bank and the International Monetary Fund.
Nevertheless "we need to do more to get across to the public what we are doing and what we are going to do in the next few years." All countries should contribute to this by making public IMF reports on their economies.
Mr McCreevy noted that, as Irish experience showed, foreign direct investment could play a vital role in the development process.
However the right domestic conditions were needed to attract such investment, and the confidence and trust of international investors "should never be taken for granted."
He recommended that developing countries focus on the education of girls to produce the highest return on investment. "It leads to reduced infant and maternal mortality, improved family health and nutrition, and improved economic conditions," Mr McCreevy said.
