Robert Zoellick, U.S. nominee for president at the World Bank, has reaffirmed that Africa continues to be the topmost priority for World Bank. In his first interview since being nominated to succeed Paul Wolfowitz at WB, Zoellick on Saturday focused on a variety of issues, including lending practices to middle-income countries especially China.
Wrapping up the African leg of his three-continent tour, he spoke to the reporters in an hour-long session after having a meet with South Africa’s Finance minister Trevor Manuel. The tour has been designed to garner support for his tenure at the World Bank, which begins at the end of this month.
Africa - a priority
It seems that the stance that was seen under Wolfowitz pertaining to Africa will continue under its new president. Zoellick said that Africa would remain his focus at the premier lending body of the world. He said that WB was avowed to reduce poverty in the continent that has made least progress on the path of achieving Millennium development Goals.
He emphasized African diversity and said that there was a need to design country-specific approaches to solve problems. Zoellick told journalists:
I hope that the World Bank can develop a stronger partnership with the African countries to assist and support them in their strategies for development and growth. Clearly, there needs to be a big focus on Africa. This isn’t new. The question is, under changing circumstances, how one does it.
He added that there was a need for the African leaders to lobby and help him in securing funds from the rich nations. These funds would go into the coffers of International Development Association — the arm of the bank that dispenses grants and low-interest loans.
Loans to China defended
China, in spite of having the fastest economic growth in the world, continues to be the biggest borrower from WB. It has $11.2 billion worth of outstanding loans against its name - representing 11 per cent of the total funds that have been lent.
Zoellick maintains that regardless of the robust economic growth and burgeoning forex reserves there is still a need to continue lending to China. He went on to say:
China has grown a tremendous degree, but if you get out in the countryside you still see there’s an awful lot of poverty.
His comments come in the wake of increasing hue aimed at scrapping lending to developing nations like China, India and Mexico. Many believe that theses countries are more than capable of tapping the international capital markets for funds. Zoellick said that the bank should continue to lend to these middle-income countries and not just offer technical expertise and advice.
Anti-corruption campaign to continue
Paul Wolfowitz had initiated a crusade against corrupt practices in the bank’s affairs. Robert Zoellick told reporters that he will further that campaign. There was a need to get the institution to pursue a broad agenda, he said.
Zoellick is trying to strike all the right cords ahead of his succession to the helm at the World Bank. He is trying to assess the situation around the world first-hand before he takes over WB. His tours are aimed at establishing a rapport with bank’s employees. He acknowledged as much in the interview.
Whether his visits can successfully improve the tarnished image of the bank that Wolfowitz’s tenure has bestowed, is difficult to tell in theses early days.
