World Bank chief sees bigger role for private sector
19 Oct 2007 00:35:00 GMT Source: Reuters
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By Lesley Wroughton
WASHINGTON, Oct 18 (Reuters) - World Bank President Robert Zoellick said on Thursday the private sector was a key part of his new strategy to boost economic development and reduce poverty in poor countries.
Speaking at a news conference ahead of meetings of the World Bank and International Monetary Fund this weekend, Zoellick said the bank could work with the private sector in areas such as energy, health, agriculture and regional development.
He revealed the bank was in talks with private-sector firms about possibly contributing to a World Bank fund for the world's 81 poorest countries, expanding beyond its traditional roots of funding from rich governments.
He said a "couple of companies" had approached the bank about helping to finance the bank's International Development Association, or IDA, the world's biggest aid fund for poor countries.
Zoellick said it was an encouraging development, as talks are underway with donor nations about replenishing the fund, which provides interest-free loans to poor countries. The fresh funding will cover the lending period starting 2009 to 2011.
"It is a good statement of confidence in what we are doing (and) could help us broaden the base of support for the funding of the 81 poorest countries in the world," Zoellick said, without identifying the companies.
"If we are able to move it forward, this could offer us an opportunity to serve another one of the strategic directions I'd like to encourage, which is how to make sure we draw on the private sector," he added.
The World Bank's board of member countries would first need to approve such participation.
"We also have to work through our board. I don't see any problem but until we get through that we can't really take the steps with the companies," Zoellick added.
He said the bank's involvement should not only be limited to private companies but should also include the growing number of private charities such as the Gates Foundation, founded by billionaires Bill and Melinda Gates.
"They have not only brought resources but they have frankly brought some very impressive ideas," he said.
Zoellick has tried to boost confidence in the World Bank's ability to aid effectively by outlining a vision for the poverty-fighting institution ahead of the weekend meetings, which will include discussions about IDA's replenishment.
The strategy includes strengthening the bank's work in both poor and emerging economies, trying to expand its services to states emerging from conflict, and helping countries adapt to climate change.
He has challenged donor countries to increase their contributions to the fund for poor countries, announcing earlier this month that the bank would nearly double its own contribution to IDA using profits from its private-sector affiliate, the International Finance Corp.
A smaller IDA would mean less money for poor countries and reduce funding for development projects that can help to reduce poverty.
