Chamber Praises Administration Focus on Investment and Trade as Key to Development

WASHINGTON, D.C. — The United States Chamber of Commerce applauded the Bush administration's "results-oriented" private-sector approach to development financing discussed at the United Nations Conference on Financing for Development in Monterrey, Mexico.

"The American business community has long understood that economic development cannot exist without private-sector involvement," said Greg Lebedev, Chamber executive vice president for international policy. "But this is about countries, not just companies. It is fundamentally inconsistent to demand good corporate citizenship while tolerating systemic corruption in the governments of the same countries in which these companies operate."

"Capital goes where it is wanted and stays where it is well-treated, but the definitions of wanted and well-treated have been too frequently misunderstood," Lebedev added.

To attract and keep capital investment, countries must demonstrate a commitment to honest and effective government; sound fiscal, monetary and regulatory policies; a free-market system; property rights protections; infrastructure support; and access to good labor and raw materials. These are among the business community's criteria for identifying sound business potential.

The Bush administration deserves praise for its continuing recognition of the basic facts of global economics and for the decision that the goal of our development aid will be for nations to grow and prosper beyond the need for any aid, according to the Chamber. The recent Monterrey conference properly noted the vital roles of expanded trade and investment in the world economy. Developing countries receive about $50 billion every year in aid, compared to $200 billion in foreign investment.

"As important as official development assistance is, it cannot be a substitute for the private investment that is the engine of growth everywhere," Lebedev affirmed.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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