Continued reform of the multilateral development banks including the World Bank, by the Group of Seven finance ministers, has been given OttawaÕs support via federal Finance Minister Paul Martin.

“The multilateral development banks have made considerable progress in improving their efficiency and effectiveness over the last fewyears,” said Minister Martin. “This progress must continue if they are to carry on in their crucial role combating poverty and supporting equitable, sustainable development.”

The recommendations for reform are part of the report, Strengthening the International Financial System and the Multilateral Development Banks, released today by the G-7 finance ministers during their meeting in Rome, Italy.

Among the measures proposed in the report are calls for strengthened co-ordination among the multilateral development banks, including the World Bank and the European Bank for Reconstruction and Development, to avoid overlap or duplicated effort. As well, the report calls for improved internal governance particularly through increased transparency and accountability.

The G-7 report also recognizes the value of increased investment in critical social sectors, such as education and health, as being essential to sustained poverty reduction.

A second report, Fighting the Abuses of the Global Financial System, will also be released. It focuses on international efforts to combat money laundering and harmful tax practices, and the need for improved supervisory and regulatory practices in some offshore financial centres. Both reports will be presented to a summit meeting of G-8 leaders later this month in Genoa, Italy.