SPEECH AT THE NATIONAL PRESS CLUB.docx
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SPEECHATTHENATIONALPRESSCLUB
SPEECHATTHENATIONALPRESSCLUB,WASHINGTOND.C.
RobertBZoellick.LawandBusinessReviewoftheAmericas.Dallas:
Spring2008.Vol.14,Iss.2;pg.243,12pgs
Abstract(Summary)
AspeechattheNationalPressClubbyWorldBankGrouppresidentRobertB.Zoellickispresented.HavingnowservedaspresidentoftheWorldBankGroupfor100days,thespeakerwantedtosharehisinitialimpressionsandideasforstrategicdirections.ThestaffoftheWorldBankGrouphashelpedhimlearn,shownhimtheirvitalworkinthefield,andofferedfreshideasastheysetacourseforthefuture.YettherealfaceoftheWorldBankGroupisnottheoneusuallyseeninWashington,orinthedrawingroomsofthecapitalsoftheirmajorshareholders.Giventheopportunity,peopleeverywherewanttobuildabetterlifeforthemselvesandtheirchildren.Thatimpulse,ifgivenachance,cancontributetoahealthyandprosperousglobalsociety.Globalizationoffersincredibleopportunities.Yetexclusion,grindingpoverty,andenvironmentaldamagecreatedangers.
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CopyrightSouthernMethodistUniversitySpring2008
October10,2007
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HAVINGnowservedasPresidentoftheWorldBankGroupfor100days,Iwantedtosharemyinitialimpressionsandideasforstrategicdirections.
IgreatlyappreciatetheencouragementandsupportIhavereceivedfrommanyquarters.Isensethatpeoplearoundtheworld-indevelopinganddevelopedcountries-recognizeboththeneedforandpotentialofthisuniquecreation.TheWorldBankGroupisoneofthegreatmultilateralinstitutionsestablishedafterWorldWarII.Sixtyyearslater,itmustadapttovastlydifferentcircumstancesinaneweraofglobalization.
ThestaffoftheWorldBankGrouphashelpedmelearn,shownmeourvitalworkinthefield,andofferedfreshideasaswesetacourseforthefuture.TheBoardisofferingexperiencedguidanceaswestrivetoturngoodintentionsandanalysisintoproductiveactions.
THEFACEOFTHEWORLDBANKGROUP
YettherealfaceoftheWorldBankGroupisnottheoneusuallyseeninWashington,orinthedrawingroomsofthecapitalsofourmajorshareholders.
WhenIvisitedYenBaiProvinceinthenorthernmountainsofVietnamthisAugust,Imetawomanwhonowhaselectricitytohelpgrindrice,pumpwater,powerfans,andlightheroneroomhouseholdsoherchildrencanstudyatnight-becausetheWorldBankfinancedaVietnameseelectrificationproject.Electricitynoweasesthechoresofover90percentofruralhouseholdsinVietnam.Asinothersocieties,ruralelectrificationmostofallempowersthewomenwhobearthebruntofdailyfarmlabor.
InHonduras,theWorldBankishelpingsavePicoBonitoNationalParkthroughtheBioCarbonFund,whichsupportsfarmerswhoareshiftingfromcuttingthenativeRedondotreestosellingtheirseedsandreplantingsaplings.Asonefarmersaid,"WestillhaveourtreesandIcanstillmakemoney,evenmorethanIdidbefore.Weeventakecareofthewildseedlings."
InNigeria,theInternationalFinanceCorporation,ourprivatesectorarm,helpedasinglemotherinthevillageofOvokotoobtainamicrofinanceloantobecomeavillagephoneoperator.Villagersusedtohavetotraveladaytomakeaphonecall.Nowthisentrepreneurhelpsherneighborsconnecttothebroaderworld,whileearningmoneytopayforherchildren'sschoolfeesandmedicationforherownHIV/AIDstreatments.
Giventheopportunity,peopleeverywherewanttobuildabetterlifeforthemselvesandtheirchildren.Thatimpulse,ifgivenachance,cancontributetoahealthyandprosperousglobalsociety.
ANINCLUSIVE&SUSTAINABLEGLOBALIZATION:
THENEEDS
Weliveinanageofglobalization.Yetitscontoursareuncertain.SincetheendoftheColdWar,thenumberofpeopleintheworldmarketeconomyhasincreasedfromaboutonebilliontofourorfive-vastlyincreasingtheproductivelaborforce,buildingnewmanufacturingandservicecentersthroughoutthedevelopingworld,boostingdemandforenergyandcommodities,andcreatingvastpossibilitiesforincreasedconsumption.Newpoolsofsavingsareaddingtoglobalcapitalflowsthataredrawntoinvestmentopportunitiesofferedbybothemergingmarketsandtransformingdevelopedeconomies.Thetransferofskills,technologies,information,andappliedpracticalknowledgeisrushingahead.
Theglobalflowoftradehasmorethandoubledsince1990.Moreopeneconomieslowerthecostofgoodsandservices.Morecountriesarerelyingonexport-ledgrowth.Whilethepurchasesfromdevelopedeconomiesremainimportant,newtradepatternsreflectregionalandglobalsupplychainsandincreasing"south-south"trade.Nearly300millionpeoplehaveescapedextremepoverty.
Yetmanyremainonthefringesandsomearefallingfurtherbehind.Theycanbecountedascountries,asregionsandgroupswithincountries,orasindividuals.Theirexclusionhasmanycauses-includingconflicts,poorgovernanceandcorruption,discrimination,lackofbasichumanneeds,disease,theabsenceofinfrastructure,weakeconomicmanagementandincentives,lackofpropertyrightsandruleoflaw,andevengeographyandweather.
Wecanalsoseetheenvironmentalchallengeofthisextraordinarysurgeofgrowth,withriversthatrunblack,skiesthatblockthesun,andthreatstohealthandclimate.
Globalizationoffersincredibleopportunities.Yetexclusion,grindingpoverty,andenvironmentaldamagecreatedangers.Theonesthatsuffermostarethosewhohavetheleasttostartwith-indigenouspeoples,womenindevelopingcountries,theruralpoor,Africans,andtheirchildren.
ItisthevisionoftheWorldBankGrouptocontributetoaninclusiveandsustainableglobalization-toovercomepoverty,enhancegrowthwithcarefortheenvironment,andcreateindividualopportunityandhope.
In2000,thecountriesoftheUnitedNationsestablishedeightMillenniumDevelopmentGoals-ambitioustargetstohalvepoverty,fighthungeranddisease,anddeliverbasicservicestothepoorby2015.Thesegoals,ourgoals,arepostedbythemainentranceofourheadquartersbuilding,remindinguseverydayofwhatwecometoworktoaccomplish.
Theseaimsofsoundsocialdevelopmentneedtobecombinedwiththerequirementsforsustainablegrowth,drivenbytheprivatesector,withinasupportiveframeworkofpublicpolicies.
Considersomeoftheneeds.
Everyyear,malariastrikessome500millionpeopleworldwide.YetwecouldgetclosetoovercomingthisleadingkillerofAfricanchildren.Itwouldtakeaninvestmentofapproximately$3billionayearoverthenextfewyearstoprovideeveryhouseholdvulnerabletomalariawithtreatedbednets,medicines,andmodestamountsofindoorinsecticide.
TheInternationalEnergyAgencyestimatesthatdevelopingcountrieswillneedabout$170billionofinvestmentinthepowersectoreachyearoverthenextdecadejusttokeepupwithelectricityneeds,withanextra$30billionperyeartotransitiontoalowcarbonenergymix.
Anadditional$30billionperyearisneededtoachievetheMillenniumGoalofsupplyingsafewaterto1.5billionpeopleandsanitationtothetwobillionpeoplewholackthesemostbasicnecessities,alsoimprovinggenderequalityinpoorcountries.
Thereisneedforanother$130billionayeartomeetthetransportationinfrastructurerequirementsofgrowingdevelopingcountries,includinganestimated$10billionayearformaritimecontainerterminalstoaccommodateopportunitiesintrade.
Andtoprovideprimaryeducationforsomeeightymillionout-ofschoolchildren,anotherMillenniumGoal,low-incomecountrieswillrequireabout$7billionperyear.
HOWTHEWORLDBANKGROUPCANHELP
Meetingtheseneedsisnot,ofcourse,justaquestionofmoney.NorisittheroleoftheWorldBankGrouptofinancetheinvestmentsbyitself.
ItisthepurposeoftheBankGrouptoassistcountriestohelpthemselvesbycatalyzingthecapitalandpoliciesthroughamixofideasandexperience,developmentofprivatemarketopportunities,andsupportforgoodgovernanceandanti-corruption-spurredbyourfinancialresources.
ItisthepurposeoftheBankGrouptoadvanceideasaboutinternationalprojectsandagreementsontrade,finance,health,poverty,education,andclimatechangesothattheycanbenefitall,especiallythepoorseekingnewopportunities.
Weshouldbeexpandingthefrontiersofthinkingaboutpolicyandmarkets,pioneeringnewpossibilities,notjustrecyclingthepassablyprovenwithamodestfinancialadvantage.
IhavebeenstressingtheideaoftheWorldBankGrouptomakeapoint.Weareasingleinstitution,operatingthroughspecializedaffiliates,asisthecaseformanylargefinancialfirms.WemuststrengthenourinteractionandeffectivenessasaGroup.
OurGrouphasfourprincipalparts.TheInternationalBankforReconstructionandDevelopment(IBRD)isourpublicfinancearm,providingloansbasedonmarketprices,riskmanagement,andotherfinancialservices,combinedwithdeepdevelopmentexperience.TheInternationalDevelopmentAssociation(IDA)isanaidconduitthatprovidesinterestfreeloansandgrantstotheeighty-onepoorestcountries,aswellassignificantdebtrelief.TheInternationalFinanceCorporation(IFC)isourprivatesectorarm,makingequityinvestments,loans,andguarantees,whileofferingadvisoryservicesindevelopingcountries.AndtheMultilateralInvestmentGuaranteeAgency(MIGA)suppliespoliticalriskinsurance.Operatingtogether,wecanleveragethesetoolstoensurethatthewholeisgreaterthanthesumofitsparts.
Allofthesecomponentsshareabodyofexpertlearningandexperiencecoveringahostofdevelopment