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In a speech, in which he points out both the good and bad moves of the Bank in its economic development policies, Wolfowitz analysed the factors that should be taken into account to successfully contribute to poverty eradication.

September 25, 2005

Opening Session of the Board of Governors of the World Bank Group and the IMF. Joint annual discussions 2005

Remarks by Paul Wolfowitz, President of the World Bank Group, at the joint annual discussions

Conference summary

Wolfowitz started his speech by making a strong call to engage in the task of poverty eradication. Although he first referred to the alarming situation in Africa (where the number of people living on less than a dollar a day amounts to 314 million), he went on giving some examples about the improvements made in the living conditions of the world’s poorest, namely: in the last 20 years, the number of people living on less than a dollar a day was reduced by 400 million; people in developing countries live longer, since on average they live 15 years more than 40 years ago; illiteracy was halved in 30 years.

Wolfowitz went on to affirm that the need for development is essential in terms of poverty reduction. However, development is not always easily measured in numeric terms, but rather depends on indispensable though hard to measure factors:
· Leadership, not as a matter of individual performance, but based on trust and teamwork. The accountability through civil society and a free press is essential to improve the performance of leaders and stop corruption.
· Civil society and particularly the role played by women. Civil society is the engine of growth and offers a huge source of knowledge, and women in particular are fundamental for a fruitful development.
· The private sector, as the engine driving growth and job creation. The Bank should continue assessing and supporting microfinancing and promoting a more favourable atmosphere for investment, as it does through the report “Doing Business” by evaluating the conditions in 155 countries.
· The legal regulations, such as equality in law and the full exercise of the rights of poor people. But also the protection of contracting rights, so as to foster investment.

The solutions to the problem of poverty require very precise interventions and deep knowledge in issues such as:

· Education. Through the Education for All Fast Track initiative, the Bank plans to join other donors in order to double girls’ enrolment in 60 countries within the next 5 years.
· Health. The same as with education, health problems represent a human tragedy. In the last 5 years, the Bank has allocated $2000 millions to stop the scourge of HIV/AIDS, but also the fight against malaria should be strengthened.
· Infrastructure. One of the most insistent messages by developing countries has been the need for the Bank to re-establish investment in infrastructure. As an example, there will be no health improvements so long as 1 billion people lack access to drinking water.
· Energy and sustainable development. It is necessary to contribute to an smart management of resources and the environment, through a development process that would pose no harm to the climate, while meeting the energy needs of the developing world.
· Agriculture. In this area, it is necessary to increase the agricultural production of developing countries, and not only grant emergency loans in case of famine. The Bank has been making efforts to redress the trend of the 1990s, by increasing aid for the agricultural sector. However, investments in agriculture are not enough; rich countries should eliminate agricultural subsidies that distort prices and restrict the access of poor farmers to the market.

World Bank/IMF Annual Meetings - September 2005 At the 2005 Annual Meetings, the Boards of Governors will decide on major international monetary issues. Civil society organizations are preparing seminars and workshops surrounding the Annual Meetings with special focus on conditionalities, debt, development financing and the Millennium Development Goals.

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