This transcript contains the speech made by Jomo K.S. at the conference on policy space in Woodrow Wilson Center, Washington D.C on December 14, 2006. In his speech the speaker has focused on the importance of policy space in realizing development aspirations, particularly of the developing countries.

At the beginning of his speech, the honorable speaker has highlighted on the pattern of development in the developing countries in the second half of the twentieth century and global inequalities in income distribution. He asserted that the poverty reduction in developing countries has been slower, not only due to less growth, but also due to worsening income distribution.

According to the speaker there are in particular three policies that have been especially influential in reducing the policy space for developing countries, namely trade liberalization, financial liberalization, and contractionary macroeconomic pressures. He has then discussed the mechanism through which these policies constrain policy space for developing nations. He also discussed how trade and financial policies/instruments, human resource and skills development and policies promoting technology and innovation can overcome the constraints in pursuing national development strategies. He is also of view that in order to expand and strengthen fiscal space for development, developing countries should shoulder more responsibility for their own national development through more effective national resource mobilization.