Annual Meeting 2003

Closing statement by Jean Lemierre, President of the EBRD

Twelfth Annual Meeting of the EBRD Board of Governors
Tashkent, Uzbekistan
5 May 2003

I will not make a statement, rather I will restrict myself to a few remarks, because it is very difficult to summarise the very rich debates that have taken place under your chairmanship, Ms Short.

You have put civil society at the core of the process, especially the Central Asian NGOs ...

My first remark concerns this meeting in Tashkent. In deciding in 1999 to hold the Annual meeting in Tashkent, you, the Bank's Governors, set yourselves and the Bank a huge challenge. The question we must ask ourselves is: what has been achieved? It is clear that this Meeting was not a reward but an incentive. In my view, you have achieved three things. The first concerns Central Asia and your commitment, and the commitment of this institution, to this part of the Bank's region of operations. The second achievement is that you have opened a debate, opened the door to criticism and brought civil society to the meeting. There are more than 200 representatives of NGOs here, and I have had very interesting meetings with them. While the Governors and I were meeting, a forum was being held with NGOs, and I am told the forum was very interesting. You have put civil society at the core of the process, especially the Central Asian NGOs. The consensus is that this is a major achievement, especially when there are questions about human rights. You have created an incentive for progress.

Of course, this is not easy and criticism is sometimes difficult to listen to, but the nature of this institution is to open up debate and to make clear statements when required, and you have done that. I am sure that President Karimov understands. Perhaps the Chair of the Board of Governors will say a word later about this, but we have had some discussions with President Karimov on this subject. I believe the process has been launched.

We shall review the situation in a year in close conjunction with the UN, OSCE, IMF ...

You have done more than that; you have sent a signal to what could be called the region. I will simply remind you of what President Karimov told you yesterday, that without you, the five heads of state would not have come together around the table. That is a major achievement of the Governors of the Bank and it has opened up a discussion between these countries. I believe Clare Short will tell you the same - that these are not easy discussions. Yesterday's lunch discussed the threat of Afghanistan and drugs. We have tried to pose questions about opportunities for regional cooperation. There are many difficulties - but also a willingness to do something because you have enabled these countries to meet.

It is too early to know if the Annual Meeting has been a full success from this point of view. We shall know later. That is the nature of the process and of transition, and we are a transition bank. We launch processes and monitor and follow up progress. The Board of this Bank is very much committed to that. We shall review the situation in a year in close conjunction with the UN, OSCE, IMF and I hope, Madam Chair, with the strong support of our Governors and shareholders. We, management and Board, need you so that there can be a sound follow-up to what you have launched.

My first remark was therefore about Central Asia. Now, at the end of this meeting, we can see that you were right in 1999 to decide to come to Tashkent. It was a big challenge but you were correct.

My second remark is about the consensus around the table and the strong commitment you have made to the Bank's mandate and actions. May I mention in particular the strong commitment some of you have demonstrated through your generous support to the operations of the Bank. I am referring to the donor agencies, donor countries and donor communities, which have a very important role in this process. We are all grateful to you, as we are for the warm support you have expressed today for the Bank's actions.

I have heard five messages concerning investment ...

My third remark is that I have heard five messages concerning investment, the investment climate and the extraordinary commitment of the countries of operations to make progress. These five messages are addressed to the management of the Bank. The first is strong support for what we should do after the accession of some members to the EU. The second message is the importance we need to attach to the cross-border dimension, which is certainly a new challenge for the EBRD. This is true in Central Asia and it is obvious in the Balkans, as you have all stated. The major news in the Balkans is that you would like us to do more on this aspect, and once again this is positive. Klaus Regling mentioned the wider Europe yesterday. The links between the countries are a very good challenge for the institution.

The third message concerns the social dimension. I mentioned in my speech that we need to pay attention to the social dimension of our projects.

The fourth message is certainly about the poorest countries and poverty. We have a focused mandate but I think we can do a great deal within this mandate. We need to take it as fast as we can and make things better by being innovative and allocating resources to this area, and by working more efficiently with the other institutions represented in this room. That is clear to us and I welcome all support. Poverty in the poorest countries is the key issue. We want to put a real focus on this and to make the CIS 7 initiative in particular concrete and efficient.

... our achievements would not have been possible without highly dedicated staff ...

I will go back to the Directors of the Bank on the last message, and that is the question of Mongolia. Briefly, strong words have been said about Mongolia. We need to make progress. That would be a very good commitment to make here in Tashkent. Mr Heinen and, I am sure, Mr Juncker will pay attention to this question.

My fourth remark is that what the Bank has achieved and what it wants to achieve in the future would not have been possible and will not be possible without three elements. The first is good cooperation with our colleagues in many institutions. I would like to mention the importance we attach to coordination and cooperation with the EIB. Here in Tashkent I would like to mention the Asian Development Bank and the World Bank. We work very well together, but we need to improve our cooperation.

Secondly, our achievements would not have been possible without highly dedicated staff. I would like to pay a tribute here to them. The staff are very good and dedicated; they want to achieve the best and to bring the best to the region within a budget of zero growth. We need to be able to say that we are improving what we do with staff who understand what it means to spend money. All of us have taken a clear decision that the Bank's money must go to the region and operations in the region. That is why we have been tough in our negotiations on the Headquarters building in London. The Bank's money must go to operations. I will not talk about the marble as that is not allowed in this institution, but you understand what I am saying. The staff are good and dedicated and they are doing well.

... the strength of this institution is the fact that there is a very strong Board ...

The third element, and I would like to be very explicit about this, is the Bank's Board of Directors. The Board of Directors of this institution is great. Madam Chair, I am not a president who is uncomfortable with his Board. I think the strength of this institution is the fact that there is a very strong Board, able to build consensus even when there is dissent, focused on the Bank's mandate and mission, and where difficult decisions are taken in an open way. Step by step we are able to build consensus when that is needed. I would like to stress this once again. I am grateful to all members of the Board, their offices and the Board Chairs for their great commitment to what we are doing and their support for our coming to Tashkent.

My last remark is addressed to the Uzbek authorities. They have been great, and their hospitality has certainly contributed to the success of this meeting. The people of Uzbekistan and of Tashkent, all their teams, the Government and the City of Tashkent, and may I mention in particular the Mayor of Tashkent, have given us tremendous support. That is a good symbol, as is the willingness to hold this meeting and the welcome we have been given. Opening the debate will lead to a permanent change in the attitude of the City of Tashkent and the Government of Uzbekistan. That must be noted, and we are grateful to them.

In a few weeks or months, we will be able, I hope, to propose to Governors a choice for the Annual Meeting in 2005. Some candidates have been mentioned, and the Board needs to discuss these. Next year, we shall be in London. We know how warm the attitude of the British authorities is towards the EBRD. After two consecutive years away, first in Bucharest and then in Tashkent, we will return to the host country for the Annual Meeting, and we are very happy to do that.

May I conclude simply by expressing my thanks to each of you for your support and comments. The management of the Bank and I feel strong after this meeting. We hope to see you and hear your advice and guidance from time to time, and we thank you for that.