DEVELOPMENT COMMITTEE (Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the Transfer of Real Resources to Developing Countries) ONE HUNDRED AND ELEVENTH MEETING WASHINGTON, DC – APRIL 24, 2025 DC/S/2025-0017 April 24, 2025 Statement by H.E. Reinette Klever Minister for Foreign Trade and Development Cooperation of the Kingdom of the Netherlands Representing the constituency of Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Georgia, Israel, Moldova, Montenegro, the Netherlands, North Macedonia, Romania and Ukraine Statement by H.E. Reinette Klever Minister for Foreign Trade and Development Cooperation of the Kingdom of the Netherlands Representing the constituency of Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Georgia, Israel, Moldova, Montenegro, the Netherlands, North Macedonia, Romania and Ukraine 111th Meeting of the Development Committee April 24, 2025 Washington, DC Introduction Since their inception 80 years ago, the Bretton Woods institutions have played a pivotal role in fostering development, economic stability, and international trade. Their contribution to poverty reduction, infrastructure development, and international financial cooperation has improved the lives of millions. With rising global tensions and challenges—such as uneven economic growth, increased trade barriers, and the rising cost of living—we welcome the focus on jobs for these Spring Meetings as a means to address some of these challenges. Jobs: A Cornerstone of Development Job creation is fundamental to fostering economic stability, reducing poverty, and promoting inclusive growth. Access to decent work empowers individuals, strengthens communities, and builds resilience against shocks. This is particularly true for women and youth, who often face systemic barriers to employment, and whose equal participation in the labor market generates higher growth and greater resilience. On behalf of EDS19, I would like to emphasize that job creation should remain a top priority for the Bank and highlight three areas where the Bank can enhance its efforts. 1. Encouraging Private Investment by Acting as a Broker The private sector is the primary engine of employment in low- and middle-income countries, accounting for 90% of jobs. Beyond generating jobs—which improve livelihoods and reduce poverty—private businesses drive skill development by investing in workforce training thereby strengthening the overall labor market. They also provide critical tax revenue that funds public services such as healthcare, education, and infrastructure. Through public-private partnerships, private companies contribute to infrastructure development, enhancing connectivity and economic efficiency. Given the importance of the private sector for client countries, we see an opportunity for the Bank to enhance its role as a broker between private investors and client countries by bridging gaps in information, reducing investment risks, and aligning market needs with development goals. The Bank can: • Help countries identify impediments to economic growth by focusing on strong potential for local value addition, job creation and promising sectors; • Incorporate these opportunities more prominently into Country Partnership Frameworks (CPF) to link these to market needs; and • Engage with investors as part of the CPF to ensure regulatory, educational, and infrastructure improvements align with market needs. In doing so, the Bank could address specific investment barriers, strengthen local companies, integrate value chains, and enhance access to financing. In addition, the Bank itself should play a catalytic role in developing local firms and industries by taking long-term equity positions in local industries, thereby signaling confidence and attracting other investors. We applaud the recent launch of the Frontier Opportunities Fund by the IFC, which we see as a step in this direction. By providing equity capital, also from its own account, to small and medium-sized enterprises (SMEs) in frontier markets—with a focus on climate-related projects that promote sustainable practices— the IFC will help SMEs access scarce capital and create decent, sustainable jobs. 2. Promoting Good Governance Good governance is the foundation of sustainable development, providing the stability and security necessary for economic growth and private sector development. Transparent laws, strong institutions, and reliable standards build confidence among local and foreign investors, thereby driving job creation and fostering economic stability. The Bank should help client countries foster private sector growth by advising on: • Improving legal frameworks, enhancing judicial efficiency, and modernizing court systems, such as through digital services and commercial litigation; • Enhancing property and land rights, which build investor confidence and encourage entrepreneurship; • Supporting legal and institutional reforms that improve public sector management and accountability. As part of its efforts on good governance, the Bank should continue its close cooperation with the Fund and intensify its efforts in the areas of fiscal policy, debt management and transparency and public financial management. These are essential to attract (foreign) investment, finance public goods, and sustain economic growth. 3. Promoting (International) Trade Integration Trade is a powerful engine for job creation and economic growth, especially in low- and middle-income countries. Expanding trade opportunities allows businesses to scale operations, improve productivity, and access larger markets. Trade integration between developing countries has the potential to unlock significant economic gains and reduce dependency on more volatile international markets. The Bank can play a critical role in fostering trade integration by supporting countries in addressing infrastructure deficits, streamlining customs procedures, and aligning regulatory frameworks to facilitate cross-border trade. Enhancing regional connectivity through better transport networks and trade corridors can lower transaction costs and improve market access. It can also strengthen economic resilience and create more inclusive job opportunities. Building Resilience by Addressing Crises Our constituency is comprised of a diverse set of countries, many of whom are struggling with challenges caused by external shocks. As shareholders, we urge the Bank to continue playing a vital role in helping all client countries to address crises, through financial support, technical assistance, aid coordination and policy guidance. Ukraine We reaffirm our unwavering support for Ukraine in light of Russia’s unprovoked invasion. We once again recall the United Nations General Assembly’s strong condemnation of the aggression by the Russian 2 Federation and its demand that the Russian Federation immediately cease its use of force against Ukraine. The war continues to have a massive humanitarian, economic, and financial impact—especially on Ukraine, but also on neighboring countries and the wider global economy. The Bank and the Fund have played an instrumental role in assisting Ukraine and other affected countries in the region, Moldova in particular, through various needs assessments, aid coordination, and implementation of programs. We will also continue to do our part: the Netherlands has so far provided a guarantee of EUR 100 million to enable a Development Policy Operation; EUR 263 million to the URTF for investments in energy, roads, bridges, housing, and schools; EUR 40 million to the IFC Ukraine Economic Resilience Action Program (ERA); and announced an additional contribution of EUR 62 million in 2024 to the Special Program for Ukraine and Moldova Recovery to restore critical infrastructure and to implement reforms. Israel/Gaza The conflict in the Middle East that ensued after Hamas’ terror attack on Israel on October 7, 2023, has taken a terrible toll on the region. We remain gravely concerned about the prolonged humanitarian crisis in Gaza. Continued negotiations on the ceasefire deal need to lead, as soon as possible, to the release of all remaining hostages, an end to civilian suffering and loss of life, and the reconstruction of the Gaza Strip. We ask management to continue cooperating with the United Nations and the European Commission in assessing the damage in Gaza, identifying pathways for supporting reconstruction within appropriate fiduciary and AML/CTF safeguards, and engaging the private sector in delivering essential services affordably while creating employment opportunities. Armenia Armenia continues to address challenges and needs stemming from the influx of refugees from Nagorno- Karabakh. The Government of Armenia has taken immediate actions to address the urgent needs of refugees, such as housing, health, and education. We extend sincere gratitude to the Bank and partner countries for prompt and significant assistance and welcome additional support, including through the Global Concessional Financing Facility to help refugees to rebuild their lives with dignity, as support of international partners remains critical. Being a landlocked country, Armenia supports regional projects fostering regional cooperation, connectivity and stability, thus Armenia prioritizes its participation in regional strategic initiatives, such as the” Black Sea Submarine Cable” and “Middle Corridor Project”. Armenia also initiated “Crossroad of Peace”, which is a testament to the steadfast commitment to promoting peace, regional integrity and prosperity. We very much welcome the Bank’s proactive role in promoting regional integration initiatives across all the countries in the region, highlighting their economic viability and potential benefits to be gained. Delivering an Ambitious IDA21 Replenishment In an interconnected world, in which challenges—be it climate change, pandemics, or economic instability—transcend borders, no nation is secure in isolation. To uphold a resilient and effective multilateral system, it is imperative that we retain solidarity with low-income countries that are facing debt distress, energy and food insecurity, and a climate crisis that is hampering their efforts to invest in the jobs agenda. Together, Armenia, Croatia, Cyprus, Georgia, Israel, North Macedonia, the Netherlands and Romania have contributed USD 1,072 million to the current IDA-replenishment, with the Netherlands shouldering the greatest burden. The transition of our constituency from mostly client countries to mostly IDA donors is testament to the success of the Association and the transformative role it can play in client countries. As 3 such, our constituency feels a particular responsibility for buttressing IDA and looks forward to confirming the historic IDA21 replenishment during the Spring Meetings. 4