text:
Energy in Africa
- Today
- Past 7 Days
- Past Month
- Past Year
- Specific Date Range
- Africa (8)
- North America (3)
- South Asia (3)
- The World Region (3)
- Western Europe (3)
- Date
A sustainable forest management program in Senegal puts communities in charge of local natural resources, increasing income and opportunities for electricification. Read More »
The Jiji and Mulembwe hydropower project will finance construction of two hydropower stations of combined 48 megawatts capacity and will provide Burundians with affordable, clean, reliable, and sustainable energy. Read More »
A new project, approved by the World Bank's Board of Executive Directors on March 20th, will assist the government of DRC as it begins work to bring electricity to 9 million citizens. Read More »
With support from the World Bank, a micro-hydro plant in Yandohun has been restored, bringing electricity to homes and businesses. Read More »
Sierra Leone's six million residents are closer to having access to reliable electricity and public finance reform with the recent signing of two project agreements. Read More »
The Power of Mining to Transform Development in Africa
Good afternoon and thank you for this opportunity to address you today.First, let me say what a pleasure it has been to attend my first African Mining Indaba. It has provided rich ground on which to renew... Show More + old friendships, make new ones, and to learn from the vast array of viewpoints represented here.I have talked at length with many Ministers, with mining company CEOs, with civil society representatives, and with the many partners working - as we do - to help overcome the development challenges that Africa continues to face.From these conversations, a similar theme has been emerging. That is: the need for much more genuine and lasting partnerships between mining companies and the countries in Africa that host them. Governments rightly expect the industry to be a reliable partner for sustainable development for their people and economies. Beyond the profit motive, mining companies are looking for stability, security and certainty. Getting these two agendas to add up to stronger economies based on sustainable growth over the long-term is what we should all be working for – no matter which perspective we bring.As Former Prime Minister Tony Blair said here yesterday, countries want and deserve more than just deals. They want to move away from a relationship based on transactions to one based on collaboration. From my perspective, that collaboration must lead to opportunities for people to get a good education and jobs; for women to have equal access to the benefits that flow from mining revenues; and for society as a whole to grow and develop in a healthy, safe environment.SynergyAbout eight months ago, when the World Bank Group President – Dr Jim Yong Kim – asked me to become the new Senior Director of our Energy and Extractives Global Practice, I could see the potential for synergy.Combining the forces of our teams working to end energy poverty with those working to improve outcomes for countries with large extractive industries, made a lot of sense to me. Strong energy sectors and sustainable extractives sectors have similar underpinnings: good governance; open and accountable institutions; sound practices; clear policies…At the same time, the development implications of the two sectors are enormous. A reliable energy supply is essential for countries to move people out of poverty and toward shared prosperity. And a well-managed extractives sector can deliver huge economic and social benefits that further enhance development. Nothing motivates me more than the fact that if we continue with business as usual, by 2030 more than 650 million people in Africa will be living without energy – and this on a continent blessed with abundant energy potential and enviable growth rates. Power of the MineOn Monday, here at Indaba, we launched a groundbreaking study entitled "The Power of the Mine" that, for me, showed the synergy between energy and extractives in action.The report highlights the potential for connecting mining's demand for power in Africa with the opportunity to bring affordable, reliable energy to the one third of Africans still living without electricity. Over the last 15 years, mines in Africa have spent more than $15 billion to cover their own electricity investment and operating costs and have installed close to 1600 megawatts of generating capacity. None of this power made it onto a national grid.Rather than supplying their own energy on site, we say that mines can become anchor customers for electricity utilities or other private power producers which can then grow to bring low-cost power to the wider community.Power-mining integration can be a good deal for everyone. For mining companies, it means lower cost energy and improved competitiveness. For governments and utilities, it means more consistent revenues to help with energy expansion plans. And most importantly of all, for communities across Africa, it means a better, more reliable power supply.We recognize that in this new and relatively unchartered area obstacles exist – prominent among them a lack of transmission links, and the sometimes fragile commercial viability of electricity utilities. But these are not insurmountable challenges and we have plenty of examples of countries which have overcome them.At a time of much lower commodity prices, the mining industry may argue that this is not a further risk worth taking. I would argue that the volatility of commodity prices only strengthens the case for mines to combine forces and partner with national utilities to plan for their long-term energy needs. This is especially so when - as we heard on Monday from a mining CEO on our panel - energy costs can be as high as 30 percent for some mining operations.To be successful, power-mining integration needs the commitment and collaboration of governments, power utilities and mining companies. For our part, the World Bank Group can help bring everyone to the table, generate a dialogue, share knowledge, and where it makes sense, provide tailored financial and risk management instruments. We think this synergy could help turn Africa's energy challenges around.Governance and TransparencyOf course, as the potential of the mining industry grows in Africa, so does the need for improved governance of the extractives sector. We work in 35 countries across Africa advising governments on everything from rules of disclosure of payments to policies for managing the granting of mining licenses fairly and transparently.We are working with governments on mining governance programs in the Democratic Republic of Congo, Malawi, Tanzania, Guinea, Mozambique, Cameroon and Sierra Leone.We also work across Africa to strengthen transparency in extractive industries through implementation of the Extractive Industries Transparency Initiative (EITI). That translates into action on the ground in countries like DRC and Guinea, where we are working with the government to develop efficient and transparent frameworks for managing mineral rights.All of this work delivers results. In Tanzania, for example, strengthening mineral governance has led to more efficient government oversight and improved geological knowledge that in turn brings further investment to the country. The reforms have helped transform extractives revenues in Tanzania which have quadrupled since 2009. Helping the PoorestWhile improved governance of extractives is critical at the macro-level, partnering to improve the livelihood and working conditions of small-scale miners can have a multiplier effect – both for small and large-scale mines. Recently, we began an innovative pilot project in Tanzania to help small-scale miners work with large mining companies to learn and develop healthy and safe practices. This Multi-Stakeholder Partnership Initiative involves the Government of Tanzania, the World Bank Group, AngloGold Ashanti, Acacia Mining and small-scale miners of the Geita region.Large-scale mines are donating the time of technical employees to assist the small-scale miners in the areas of mining, geology, health and safety issues. With small-scale mining employing over 1 million people in Tanzania, this partnership has huge potential to impact the lives of some of the poorest people in the country.We are also working to improve outcomes for local suppliers to large mines. In Guinea for example, the IFC and Rio Tinto are working on a local supplier development project that strengthens the technical, management, and health and safety skills of small businesses so that they can become suppliers to the Simandou mine project. Now, over 60 small businesses are reporting improved performance, with better incomes. More than 130 stable jobs have been created. These are the kinds of results that make benefit-sharing a reality at the local level.Investment and Capacity BuildingUnlocking the potential of mining in Africa means investing in local capacity so that a flourishing mining industry can be led by local professionals.Capacity of government negotiators to develop fair and transparent mining agreements is an essential part of a genuine collaboration. That's why we recently brought over 70 government mining negotiators from around Africa to regional workshops with the world´s leading mineral law experts.Sustainability and GenderBut fair contract negotiation is just the first step, then comes the challenge of ensuring mining projects are environmentally sustainable as well as socially inclusive.Women in particular often miss out on the potential benefits of the extractive industries and bear an unequal share of its burdens. Formal unemployment rates for women in mining communities can be as high as 90 percent in some countries. Without a focus on gender, employment and incomes are largely captured by men. Women will also be exposed to risks from loss of productive agricultural land, marginalization and an increase in health risks, including HIV.That's why we work with governments to develop strategic Environmental and Social Assessments. We need to anticipate the impacts of mining and encourage better policies and regulatory arrangements that protect people and places. Health and EbolaSome risks are harder to predict and plan for. Ebola continues to heavily impact the economies of Guinea, Liberia, and Sierra Leone even as transmission rates show signs of slowing. The Bank Group estimates that these three countries will lose at least $1.6 billion in forgone economic growth in 2015 as a result of the epidemic.In response to the crisis, The World Bank Group mobilized nearly $1 billion in financing for the countries hardest hit by Ebola. This included $518 million for the epidemic response, and at least $450 million from IFC, to enable trade, investment, and employment in Guinea, Liberia, and Sierra Leone.It's at times of crisis like this when companies and investors can show that their partnership with the country is not only about the good times.Many mining companies are making major efforts to prevent the spread of disease in their operations and in nearby communities because they tend to have the infrastructure and resources that can have the quickest local impact.On Monday here at Indaba, we hosted a panel discussion that brought out many case studies of governments and mining companies collaborating to prevent the spread of disease. More signs of long-term partnerships in action.Ladies and gentlemen, these are interesting times for mining in Africa. When prices are down, the instinct is often to flee or circle the wagons. But these are the times when a collaborative, long-term and genuine relationship with countries can pay off.Now is the time to plan to cut energy costs by finding ways to connect to national grids. Now is the time to build the capacity and skills of local people and local suppliers. Now is the time to ensure employment policies encourage equality across genders. Now is the time to get your long-term social and environmental house in order.The World Bank Group, as a long-term partner of countries across Africa, is ready to work with you in all of these areas. Together in partnership we can help to transform development in Africa.Thank you. Show Less -
Speech by Managing Director and Chief Operating Officer Sri Mulyani Indrawati at Third Afro Arab Summit
Your Highness, Sheikh Sabah Al-Ahmad Al-Jaber Al-SabahYour MajestiesDr. Nkosazana Dlamini Zuma, Chairperson of the African Union CommissionDr. Nabil El Araby, Secretary General of the Arab LeaguePresidents,... Show More + Prime Ministers, Ministers,Ambassadors, Ladies and GentlemenAllow me first to express my sincere thanks to our host, His Highness Sheikh Sabah, as well as to the people of Kuwait for the gracious welcome we have received at this Third Afro Arab Summit. It is a pleasure to be here today. This event is a key step toward a collective vision of integration and collaboration. Africa and the Middle East and North Africa regions are forever bound together by history, geography, trade, and traditions. In both regions there is a deep belief that cooperation and integration will greatly strengthen both and bring benefits to all. This Summit today embodies this belief.These are times of historic changes. Many countries in the Middle East and North Africa are experiencing momentous social, political and economic transformations. Many of you face challenges I know too well from my own country, Indonesia, where the transition towards democracy and a united society took more than a decade. I urge you to stay focused on your goals for more inclusion and resilience.At the same time, in much of Africa, we still see very high rates of extreme poverty along vigorous growth rates. High commodity prices and improvements in governance and in macroeconomic management have turned Africa into a major destination for foreign direct investment. But the fight against poverty needs to continue.The World Bank Group recognizes your challenges but also your opportunities. We have set two ambitious goals: to end extreme poverty by 2030 and boost shared prosperity for the bottom 40% of the population. These twin goals have direct relevance to all of you. Nowhere is the goal of ending extreme poverty more relevant than in Africa, where 48% of the population live on 1.25$ or less a day. And the Arab Spring showed just how critical it is to share the benefits of growth and prosperity by creating opportunities for all. By sharing your collective vision of integration and collaboration, African and Arab countries can address their problems, whether this is low intra-regional trade, the enormous infrastructure deficit, the challenges of climate change and desertification, insecurity or organized crime. Today, intra-regional trade in your regions is lower than anywhere else. So it will not only require actions and investments within each country, but much greater integration within and between regions - and with the rest of the world. When I was Minister of Finance in Indonesia, I experienced how integrating trade, as we had done under ASEAN, can reap huge benefits to all members of society in these countries. There are real synergies in building regional infrastructure. For example: Africa has the largest hydropower potential in the world. Together with our other partners we are supporting the development of the Inga hydroelectric dam, which will eventually provide enough electricity to serve about half of southern Africa. We see the potential of similar projects, especially through power pools and transport corridors, elsewhere.In a globally interconnected world, information superhighways are critical. So initiatives - such as the Libya-Chad-Sudan fiber optic network – will link the Maghreb and Sahel while reducing costs and improving connectivity. However, reaping the benefits from physical infrastructure requires also investing in the "soft" infrastructure. Your leadership in reforming policies will strengthen the economy, enable you to deliver quality services, and further improve the investment climate. With sound institutions in place, private investors will stay and social inclusion will grow. Enhanced integration and collaboration require your common vision, strong leadership and relentless pursuit of win-win solutions. We at the World Bank Group are standing ready to work with you on getting there. We are committed to scaling up our engagement in African and Arab countries by providing finances. But we also bring the experience and knowledge of other regions to the table. Regions all over the world that have grappled with similar challenges and have found solutions. Our collaboration with Arab development partners is showing results. Through these efforts we have mobilized nearly $8 billion in support of Yemen's recovery, and are mobilizing much needed support to Lebanon and Jordan to help respond to the spillover from the Syria conflict.We have adopted regional approaches to development in the Great Lakes and the Sahel, and are preparing a regional initiative in the Horn of Africa. During President Kim's recent visit to the Sahel he announced over $1.5 billion in additional funding for regional projects focusing on energy, agriculture, health services and connectivity. They will support peace, security and development. The importance of the funds from the International Development Association, IDA, in supporting Africa and countries facing fragility cannot be overstated. It has contributed significantly in the ongoing fight against poverty. It is also a sound investment in fast growing economies that will contribute to a higher goal of shared prosperity. Malaysia and Brunei used to borrow from IDA, this year they have pledged to be first time donors of IDA.We are grateful that some of the countries you are representing are generously contributing to this effort, while I also encourage others who are not yet IDA members to join this collective to support the global effort to end poverty. I would also like to take the opportunity to thank many of the countries here who have offered kind support to the relief efforts in the Philippines. Such displays of global solidarity reveal to the world, the generosity, commitment, and leadership of the African and Arab community.Excellencies, distinguished guests, Poverty is not a destiny. Many countries have pulled themselves out of poverty and are shining examples of what is possible. I am convinced that with the collaboration exhibited here, with solid and meaningful reforms and policies, and with sound investments, ending poverty and sharing prosperity will be part of your shared future.I thank you. Show Less -
World Bank Group President Jim Yong Kim's Remarks at a Press Conference in Burkina Faso
DR. KIM: Thank you very much. This is my first trip to the Sahel and my trip is ending today.When you hear about the Sahel Region from the outside world, often all you hear is about drought... Show More + and about malnutrition and, more recently, about extremism and conflict. I am departing the Sahel on my first trip full of hope and optimism. We can, by working together, and especially the group that's here on this table--we can achieve much here with the leadership that we met on this trip. I was extremely impressed by the leaders here in Burkina Faso -- the Prime Minister and President Compaoré, who has been a leader in settling disputes. But what was most impressive to me was the extremely high aspirations and the effectiveness in actually delivering for the people of Burkina Faso.Burkina Faso pays the highest rates in the world for energy, and despite the fact that these prices are so high, roads have been built, industries have been started, and basic services have been brought to people. We pledged $1.5 billion in addition to our normal giving … for this Region, but that's just a start. We have to go back and think again about a much larger scale of interventions so that the Sahel can be precisely what the people have told me they want, a place that is renowned for its culture, that's renowned for its resilience, that offers health, education, social protection to everyone, and that has a growing economy with jobs for everyone. This is possible. I am more convinced of it than I ever have been, and I take from this trip the sense of urgency that we need to move now to accomplish the things that the people of the Sahel so desperately want and, without question, deserve. Thank you. Show Less -
World Bank Group President Jim Yong Kim's Comments at a Joint Press Conference with UN Secretary General Ban Ki-moon in Rwanda
DR. KIM: Thank you. I just have--Secretary-General really gave a very comprehensive statement. I would just say two things. We were very honored to accompany the Secretary-General on... Show More + this trip. We were able to put on the table an additional $1 billion for development assistance in the region. The billion dollars will go into projects focused on energy, which of course is one of things that are desperately needed in this region, but also into health care, education, agriculture, and other projects that we think will help to secure the peace in this region. We are also very happy to be here with former President of Ireland, Mary Robinson. And one of the things we're going to try to do is to continue to link the framework agreement with other initiatives which the Secretary-General holds such great promise. So, for example, if we could bring the parties together in the framework agreement and tackle the issue of sustainable energy for all, which is another initiative that the Secretary-General began, we think that by helping to focus the attention of the framework agreement on very practical issues that we know can help everybody that we will move the dialogue along and help further to secure peace. I also want to especially thank our Rwandan hosts and thank them for showing us two truly extraordinary projects. The first was a project that built homes based on universal architecture, meaning an architecture that makes them accessible to anyone, including people living in wheelchairs, to bring universal architecture to a country that's still struggling with poverty and to build these homes specifically for former combatants who were part of the FDLR, an enemy group for the Government of Rwanda I thought was truly remarkable. A state of the art project for the disabled, and at the same time, one focused on reconciliation.The other project that I wanted to mention to the Rwandan audience is the Isange One-Stop Center. It is the most forward-thinking project for victims of gender-based violence that I've ever seen in a developing country, bringing the police together with medical professionals who collect evidence to successfully prosecute perpetrators of sexual violence is absolutely a state of the art project and I think it signals in a very strong way this government's commitment to fighting gender-based violence. We know that this region is one in which gender-based violence is a huge issue, and it's steps like the one that they've taken here in Rwanda that will be critical to tackling this issue which is, frankly, a stain on all our consciousness, that so many women are being raped, and yet so many women are victims of sexual assault as a weapon of war. Having said that, I think that, despite the difficulty, the framework agreement gives us enormous hope, and our visit so far has given me hope that we can move forward with peace, security, and economic development together. Thank you. Show Less -
Globalization: Made in the Americas
Introduction Thank you for the honor of your invitation to commemorate the 30th Anniversary of the Inter-American Dialogue. The origins of this Dialogue stretch back to a discussion between Peter... Show More + Bell and Abe Lowenthal on a park bench. Peter and Abe were disturbed by the breakdown in inter-American exchanges during the Falklands/Malvinas war, and by the lack of ties with the rising democrats of Latin America. So they discussed bringing together leaders from across the hemisphere to set a new inter-American agenda. The Dialogue held its first ad hoc conference in late 1982. Today, 30 years later, Latin America's very success offers the opportunity to remake that Hemispheric partnership around new pillars:A revived free trade policy that will aid structural reforms for growth in all our countries;An energy transformation, ending the Hemisphere's energy dependency; A new diplomacy infused with private sector pragmatism to solve public problems;Shared security; andThe first Democratic Hemisphere. For the United States, this new agenda could enable us to rely on a great, home-grown asset – Hispanic-Americans – as the vanguard of U.S. connectivity in a new Western Hemispheric economy. This Dialogue can – and I believe will – help drive this change: to create a "Globalization: Made in the Americas." Under Peter Hakim's and now Michael Shifter's energetic leadership, the Inter-American Dialogue has become the leading U.S. center for policy analysis, exchange, and communication in the Western Hemisphere. The idea at the heart of the Dialogue remains very much the same as that which emerged from the conversation on the park bench: that through dialogue and shared vision, interested citizens across the hemisphere together can plant the seeds of new policy ideas and practical proposals for progress in the Americas. So tonight, let's put that idea to work. A Different Vantage Point Just two months ago, the leaders of the Western Hemisphere met in Cartagena for the Summit of the Americas. Colombia was an excellent host, and the Summit showcased the country's many hard-won achievements. But the news reports were, frankly, disappointing. Aside from the behavior of some Secret Service agents, the coverage focused on disagreements about Cuba and drugs. Some even suggested this would be the last Summit of the Americas. The agenda seemed stuck in a time warp. So when Carla Hills asked if I could join you this evening, I thought the best way to celebrate the Dialogue's Anniversary was to offer new possibilities for the Americas in a fast-changing global economy. My vantage point on our hemisphere is different from many U.S. contributors to the Dialogue. I am not a specialist in Latin America. Like many of my U.S. foreign and security policy colleagues, much of my energy has been concentrated on the issues of Europe and the Asia-Pacific, the Middle East and Southwest Asia. Yet because of my economic background, Latin America and Canada have loomed larger on my global map. In the 1980s and early 90s, working with Secretary of Treasury and State James Baker, we were immersed in issues of Latin American debt and reforms for growth, the Canadian and North American FTAs, and Central American security and democracy. In 2001, as U.S. Trade Representative, we were fortunate to build on that experience, negotiating FTAs with Chile, Colombia, Peru, Panama, the five countries of Central America and the Dominican Republic. Together with NAFTA, these FTAs cover 54 percent of the economy of our hemisphere, not including the United States, offering an underutilized web of free traders that could support deeper integration in the Americas – even hemispheric free trade and democracy. Five years as President of the World Bank Group has added to this perspective. Why am I stressing this global outlook on Latin America? Because, while working on the issues of our region, I have urged my Latin counterparts to look globally, too. Instead, for too many years, the dialogue within our hemisphere seemed constrained by a North-South framework. The United States loomed large – whether as a hegemon, source of support, market, model, danger, or even frustrating land of inattention. On development, debt, investment, competition, and trade, Latin Americans need to see the wider horizon – especially to benchmark with East Asia. And beyond East Asia, Latin America has a new role to play in building multiple engines of growth with other emerging markets. It is time to break out of that North-South construct. Consider Canada's experience in combining regional integration with global reach: of course, Canada's FTA with the United States in 1988 deepened the two countries' economic integration – but in addition, the competitive adjustment driven by that accord made Canadian business more competitive globally. A new hemispheric partnership requires leaving old habits, old mindsets, and old models of dependency behind. That partnership will necessitate a new mix of partners, public and private. That partnership should be the next challenge for the Summit of the Americas and this Dialogue. Latin America's Record of Gains Latin America's recent record of gains now puts it in a position to remake the Hemispheric partnership. The numbers tell the story. Between 2003 and 2010, the income of the average Latin American increased by more than 30 percent. A silent revolution in macro-financial policy has strengthened the economic immune system of many countries. We saw the payoff after the fall of Lehman Brothers: Sound policies in Latin America enabled expansions to offset the downturn without the aftershocks that now threaten Europe. About 73 million Latin Americans have been lifted out of poverty since 2003. Today, almost a third of the region's population is considered middle class. Latin America is breaking a pattern of persistent inequality, including through an increase in women's involvement in the economy, particularly from poor families. Colombia and Peru have buttressed this trend by boosting opportunities for people of African and indigenous origin, seeking to overcome divisions that populists have exploited. Mexico and Brazil have led in developing well-targeted conditional cash transfer programs that have revolutionized public assistance. These programs couple income grants for poor families with incentives for health check-ups and keeping children in school. Mexico's Oportunidades program has probably done more for women's health than anything in the country's history. These are safety net programs that appeal to a fiscal conservative: They cost only about half a percent of GDP. The World Bank has helped export this model to 40 other countries, ranging from Pakistan to the Philippines. Latin America is "going global." As the global trade negotiations have stalled, leading Latin American free traders have tried to keep up the momentum. Mexico has FTAs with 59 countries; Chile with 43. Colombia offers a leading example of how a democracy can combine security, development, and good governance to overcome narco-traffickers, kidnappers, and terrorists. Peru demonstrates how sound economic policy and political commitment across administrations can reverse years of stagnation. Brazil's influence is expanding – through its companies, agricultural and mining experience, development work, peacekeeping in Haiti, and interest in Africa. Brazil's leaders of the left have also turned a page in history by sticking with democracy. Rising leaders of the left in other Latin American countries have seen the benefits for the poor of Brazil's example, compared to authoritarians who tear down institutions to consolidate personal or party power. Looking Ahead So what's ahead for Latin America? Latin America's per capita income is still only at 30 percent of the U.S. level. To climb higher, Latin American economies will need to leap beyond the so-called middle income trap. Many developing economies make early rapid gains. But then productivity and growth tend to slow. This is a global challenge. In 1960, the World Bank ranked 101 economies as middle income; by 2008, almost half a century later, only 13 had made it to high income levels – and one was Greece. Many Latin American countries will need to translate the commodity boom into broader, more diversified economies. This region has lived through roller-coaster booms and busts before. Higher productivity is the antidote to the middle income trap. Since the 1980s, Latin America has underinvested in infrastructure – electricity, roads, bridges, ports, transport – and maintaining and operating these services. Currently, Latin America spends 2 to 3 percent of GDP on infrastructure, less than half the rate of investment in East Asia. Public-private infrastructure partnerships not only offer a source of financing, but also better design, maintenance, and operations to deliver high-quality services on time. Colombia has experimented with PPPs in urban water supply and sanitation. Mexico's new Highway Concession Program has mobilized PPP projects of around $11 billion, expanding the country's major toll roads network by some 25 percent. Latin America has to anticipate its human capital needs. The region is aging rapidly: today, about 11 percent of Brazil's working age-population are seniors; by 2050, it will be nearly half. Latin America also needs to improve the results of its investments in education. By age 15, the learning achievement of the average Latin American student lags two years behind his or her developed country counterparts. Latin America is recognizing that gender equality is smart economics. Today, women in Latin America outnumber men in schools and universities. Working age women represent roughly 40 percent of the entire labor force in the region. To continue to grow, the region will need more competition and innovation in the service sector. Competitive services increase productivity. They supply the 'software' of integration: transport, where delays and losses can impose significant costs; information technology, because accurate data and effective communication is vital; financial services, to create a supportive business environment; and logistics systems, which are a driver of business competitiveness. A New Agenda What do these challenges mean for a new hemispheric partnership? What should have been the news coming out of Cartagena? Let me offer five ideas. First, the Western Hemisphere needs to revive an activist free trade and economic reform policy, globally and regionally. We need fresh approaches. The United States will be cutting agricultural subsidies, especially given high prices, and eliminating protection for ethanol. Why not deploy these to prod others? Service sector liberalization can boost productivity, open new businesses, create new jobs, and cut the "Latin cost" that many countries impose on their own businesses. Why not deploy this economic need to revive a mutual interest in negotiation? A strong self-interest can drive this renewed call for liberalization. Latin American economies still need much investment and more robust capital markets – especially in local currencies – that can help Latin American entrepreneurs and family-owned businesses to expand. Infrastructure investments require capital goods and services, as Panama's 21st Century Canal project is demonstrating. Why not dismantle barriers to lower the cost of infrastructure expansion? Better logistics make economies more competitive. The World Bank's 2012 Logistics Performance Index estimated that Latin American logistics costs are between 16 and 26 percent of GDP – that's two to four times the average in Europe or East Asia. The World Bank has helped Colombia and Peru to implement a "single window" approach to customs clearance and border management. In Brazil and Peru, the Bank has worked with international freight forwarders to connect rural, remote villages and small businesses to export through national postal services; in the first six months, more than 300 small firms in Peru became exporters, most for the first time. Even as the WTO works toward a Trade Facilitation agreement, the Americas could develop an accord that points the way. Brazilian officials are focused on exchange rates. Yet to really boost growth the target should be productivity. Better infrastructure can help, and so can more efficient and effective public services. The World Bank Group has launched a deeper partnership with the Governors of the Northeastern states of Brazil to overcome these impediments. Over time, however, the United States and its free trade partners should be working with Brazil to rebuild the case for a hemispheric initiative to realize the benefits of trade liberalization and economic reforms. It takes two to tango, and this agenda requires changes on the part of the United States, too. The United States is no longer leading the open trade agenda, as it relies increasingly on defensive measures. The United States has its own high costs of trade – antiquated ports and laws to protect special interests. The United States should work with its current free trade partners in the Americas to deepen ties of development, reform, and investment. The current architecture of US FTAs in the hemisphere offers a solid legal framework, but it needs to evolve into a home for an ongoing dialogue – across countries and with business, academic, civil society, and environmental communities – to see what else can be done to lower costs and barriers and create opportunities. The United States and its partners could explore progressive integration across the FTAs, for example by expanding provisions to cumulate inputs among partners while qualifying for free trade. The United States needs to make its hemispheric FTA network dynamic, linked to business and investment policies, and improved governance. A new concept of an FTA network in the Americas could also support inclusive and sustainable development as the foundation for open societies and borders. Second, innovation in the energy sector, led by the United States, could transform energy security for North America, the Hemisphere, and the world. In 2008, imports supplied 70 percent of US oil demand. By 2020, PFC Energy estimates that imports could be down to 40 percent of US oil demand – or even 20 percent if Canadian oil is counted as part of the home market. If natural gas for Canada and the United States is added, U.S. net energy imports from the rest of the world could drop to five percent of U.S. demand. That's an amazing game-changer in energy. If Mexico opens PEMEX to real outside investment, the outlook is even brighter. With the discovery of the giant deep offshore PRESAL oil and gas fields, Brazil can play a major role in supplying oil and gas in the region. Yet there is a need to connect these energy supplies – through infrastructure – with countries in Central America and the Caribbean that have suffered from high prices and limited access. Increased efficiency and alternative sources could help the energy poor, too. It's long past time for a hemispheric energy policy – blending consideration of inclusive growth, the environment, and indigenous communities' interests. Third, this new Hemispheric partnership needs to break old patterns of diplomacy. There are now vibrant private sectors all across the hemisphere. The challenges of overcoming the middle income trap and structural reforms to boost productivity need private sector advice and solutions. All across the developing world, the World Bank is encountering a new pragmatism about involving the private sector in areas that used to be public monopolies: infrastructure; education; healthcare; skills training; delivery of public social services. Advanced economies such as the United States should be taking note, too. Yet government-business dialogues can be stilted showcases. The Summit of the Americas – and perhaps the Dialogue – should review which approaches work better and why. With some guidance, businesses can better connect possibilities with policies. Governments can commit to responses, commitments, openness, and results. Fourth, the new Hemispheric agenda should help all 35 countries overcome security threats to growth and opportunity. The fragile governments of Central America are at risk of being overwhelmed by crime and violence linked to drug trafficking, organized crime, gangs, and firepower. Spain, which has roughly the same population as Central America, has about 400 murders per year; in 2010, Central America had over 18,000. The region pays a heavy economic price for this insecurity – as much as 8 percent of GDP. The basic legitimacy of governments and institutions is fraying: About half of Central Americans say a military coup could be justified when crime levels are high. Experiences from Medellin and Rio de Janeiro have shown that the best way to attack criminal insecurity is through an integrated approach: combining stepped-up policing, prevention, and community investments. Quick turnarounds are possible. Strong regional cooperation is indispensable. The United States has an unfortunate pattern of ignoring dangers in Central America until they explode. This time U.S. diplomacy should work with Mexico, Colombia, and Panama to develop a coherent strategy – not band-aids. As in Colombia, the Central American private sector must also be part of the solution. And the United States should also take responsibility for the drug habits of its public that fuel demand for narcotics from the south. Fragility in the Caribbean is another soft spot. But small economies can be competitive in many sectors. Accelerating integration in the Caribbean can share services, add to resilience, and boost economic prospects. Latin America should also be looking toward a greater role in global security – through practical steps, not the old G-77 policies of the past. My friend and former colleague, Bernie Aronson has proposed, for example, that Brazil could lead by voluntarily ending its uranium enrichment program and then calling on other nations – including Iran – to follow its example. If Brazil wants to help shape the 21st Century, leadership in preventing the spread of nuclear weapons – with an idea and action – would send a powerful signal. Fifth, the debate over Cuba at Cartagena sounded like hollow echoes from another era. Look ahead, not back. Chavez's days are numbered. If his subsidies to Cuba and Nicaragua are cut, those regimes will be in trouble. The democrats of Latin America – left, center, and right – should be preparing. The calls for democracy – for an end to intimidating thugs, human rights, fair elections, and rule of law – should come from all its capitals. There will soon be an opportunity to make the Western Hemisphere the first Democratic Hemisphere. Not a place of coups, caudillos, and cocaine -- but of democracy, development, and dignity. This transformation will not be achieved by the Calvo doctrine. By divisive populists. By corruption. By acquiescence. By silence. You know well that if Latins leave the work to Washington and Ottawa, the opponents of liberty and human rights will play the cards of gringoism and neo-imperialism. Trump them. Conclusion For the United States, a new partnership in the Western Hemisphere offers opportunities for renewal at home, too. All the debates about macroeconomic issues – fiscal and monetary policies – as important as they are, risk inattention to microeconomic incentives, structural reforms in the United States. Energy. Infrastructure. Education. Human capital. Competition. Environment. Innovation. The United States also needs to clear away old rigidities on these new fundamentals. The United States also needs to draw on the energies, intelligence, and drive of all its citizens. As my friend Luis Alberto Moreno of the Inter-American Development Bank has pointed out, the 50 million strong Hispanic community in the United States is a growing market, source of entrepreneurship, and resource for a Hemispheric economic strategy. At over $1 trillion, the purchasing power of Latinos in the United States is larger than the economies of every Latin American country except Brazil. According to the U.S. Census Bureau, there are between two and three million Hispanic-owned businesses in the United States. Many are small. But they create jobs, earn revenues, and pay taxes. As Latin America grows, the Hispanic businesses in the United States offer an incredible asset. Hispanics in the United States could be in the vanguard of a new Western Hemispheric economy. Small and medium-sized Hispanic-American businesses will need help to expand their entrepreneurialism – information about markets, financing, and risk management services. To be most effective, this assistance should be decentralized – perhaps drawing on local chambers of commerce in cities and states where most Hispanic businesses can be found. The Small Business Administration, OPIC, Ex-Im Bank, the Inter-American Development Bank, and the World Bank could then deploy their resources to help. The world economy is still struggling to recover from the worst blows since the 1930s. Europe is a danger zone. U.S. leadership remains vital to get through the storm, to reach a new world economy of multiple poles of growth. This is why the news coming out of the Cartagena Summit was disappointing. This is not a time for drift, for old North-South debates, for retreat behind borders, old mindsets, or out-dated dependencies. This is a time for the New World to again inspire novel thinking – about development, growth, structural reforms, rule of law and human rights, democracy, and security. This Dialogue should aim high: To have the Western Hemisphere shape this next era of globalization – so that future historians will title the next chapter, not "The Passing of the New World," but "Globalization: Made in the Americas." Show Less -
Transcript: Development Committee Press Conference
MR. MILLS: Well, thank you very much for joining us for this closing press conference. Our participants will each make an opening statement and then we'll take... Show More + your questions. If I can ask everyone to please turn off your mobile devices or put them to vibrate, we would appreciate it. Chairman Belka. MR. BELKA: Thank you. As we are late, I am not going to be very descriptive about the meeting of the Development Committee. You know the agenda. The discussion was very rich, centering around the social safety nets, the private sector involvement in growth initiatives, as well we discussed modernization of the World Bank. However, one thing that is obvious, it took so long because all the delegates took the opportunity of this Development Committee meeting to express gratitude and admiration for the achievements of the outgoing President of the World Bank, Robert Zoellick. So, I give you the time to ask questions both to him and Christine Lagarde. Please. MR. MILLS: Very good, thank you. President Zoellick. MR. ZOELLICK: Okay. Well, I'd like to welcome Marek Belka as the new Chair of the Development Committee. I have great respect for what Poland has achieved over the past 20 years and also respect for Marek's service to his country and to Europe. So, I'm delighted that he can share his country's and his own experience with the Development Committee. And I want to thank Christine for a fine stewardship of the IMF at what's clearly a critical time for the world economy. The next meeting of the Development Committee will be in Japan with a new President: Jim Yong Kim. I'm sure he'll do a great job. And I also want to extend my thanks to the members of the Development Committee. I am pleased our shareholders have endorsed the World Bank Group's efforts to boost support for efficient and fiscally sound social safety nets, including conditional cash transfers, public works and school feeding. At international meetings, we hear a lot about global financial safety nets, and we need to focus equal attention on the human safety net. As we know, there are dangers that, when institutions are too big to fail. But let's remember that beyond the talk of financial systems and of regulations and of firewalls, it's people who are too important to fail. The shareholders also want us to continue to assist developing countries with multi-pronged approaches to deal with higher and volatile food prices. I'm pleased our shareholders have support for the moves for more innovative and stronger partnership with middle-income countries – home to 70 percent of the world's poor. A key element of this is the development of infrastructure to boost future growth, including through Public-Private partnerships. Shareholders endorsed the Bank's knowledge agenda, whether it be on safety nets or global public goods or the South-South agenda. The global recovery depends on proper incentives for private financing, and the World Bank Group has been a leader in developing public policies to encourage private sector innovation, investment, and job creation. And our private sector arm, IFC, has done a particularly good job in innovative financing, technical assistance, investments, and mobilizing others. At the end of the day, the best safety net is a job. So, finally, I'm pleased that Ministers endorsed our modernization agenda with its focus on results and openness and accountability. They commended the work to date and called for the momentum to continue. It's more vital than ever that support be continued to help developing countries to navigate the tricky road ahead. So, I'd like to just close with a special word of thanks to the World Bank Group staff, including our talented and diverse Senior Management team. They're superb people who bring ideas and energy and commitment from around the world to our service to our clients and shareholders. It's been a privilege to serve with them and I wish them the very best. Thank you. MR. MILLS: Thank you. Managing Director. MS. LAGARDE: Thank you very much. Very briefly, because this is late in the day and it's a day for Bob, not for me. I will just begin by saying how privileged I have been in the last nine months to work across the road from Bob and I thank him for the learning experience that this has been, including to this very last moment when he was congratulated and highly supported by his constituencies. Just very briefly, what the IMF focuses on in terms of low-income countries, and in particular developing countries in general is, number one, making sure that we have the right tools and the right analysis specific to the low-income countries and this is something that we will continue to work on going forward, because the low-income countries are facing specific risks, if they have done reasonably well, including in the post-crisis period, much more so, actually, than the advanced economies. They have the share of risks, as well, and they have clearly the risk of the external shock coming out of the advanced economies in crisis. They have less room to maneuver because they have used much of the buffers that they had before entering into the crisis. They have less scope to use policies, and they have the longer-term challenges that Bob has been dealing with and addressing during his tenure in the last five years: Make inroads in reducing poverty, generating more inclusive growth, developing infrastructure, and all the rest of it. Now, what are the priority actions for the IMF and the international community? It is moving forward on three priorities. First of all, helping countries manage global uncertainty and volatility more effectively, and to do that we need to have the right tools. We will be this summer looking at all the tools that we use for low-income countries, making sure that they are rightly adjusted to very specific needs. We also need to have the right resources on the right terms, that is, concessional terms, and we've received a boost to that effort this week, but more is going to be needed. Second, we need to push the quality of growth. It needs to be inclusive, it needs to be associated with strong social safety nets, and it needs to be creating jobs and reducing poverty. This topic was discussed yesterday at the Rio+20 breakfast, as well. And third, clearly, we need--and that's more of an internal matter, but it really means quite a lot to the low-income countries, as well. We need to push our governance reform at the IMF and make sure that the quota reform of 2010 and the governance reform actually delivers on the credibility of the institution, it's representativeness, so that it secures the voices of not only the low-income countries but more generally all countries appropriately in accordance with an appropriate share of the global economy. So, those are the directions in which we are working to make sure that we serve our constituencies in that particular respect. MR. MILLS: Thank you very much. Yes, right here in the first row. QUESTION: Thank you. Daniel Jiang with China's Xinhua News Agency. I have a question for President Zoellick and one question for Madam Lagarde. President Zoellick, what is your insight on the process of modernizing multilateralism in a multipolar world you propounded on several years ago, as well as evolving of the Bretton Woods system, and how can the Bank facilitate the process. And for Madam Lagarde, what do you hope to achieve at the Tokyo meeting? Thank you. MR. ZOELLICK: Well, as for your question to me, I think the heart of it is to focus on clients and recognize that the diversity in the developing world requires customizing approaches, but increasingly, we're able to draw from across the developing world and bring experience and insight from some developing countries to other ones. And as an institution, it's important that we recognize that good intentions are not sufficient. So, we have to be rigorous in focusing on results. We also have to be accountable, and to be accountable, it helps to be open. So, I think one of the key aspects of the modernization agenda are the initiatives we've taken in terms of open information, open data, open research. And the more we can expand that not only to the governments around the world but take it all away to communities with the use of different technologies that now enable us to engage social accountability. And one of the initiatives that we took this week in starting an effort for a Global Partnership for Social Accountability, I think is a good example of that. I think on the notion of customizing, one of the topics that came up in today's discussions was the key need for the Bank to continue to adjust to the special needs of middle-income countries. These are the countries where you still find 70 to 75 percent of those living under $2 a day. They have special challenges. And as in the case of China, as you know, we made that adjustment by working with DRC and China on a report to examine the possibilities of future structural reforms as part of China's changing growth model. In other countries, we'll use a combination of knowledge and financing. But I think that will be an ongoing dynamic for the institution. MS. LAGARDE: All right. You asked me what are my expectations or my goals for the Tokyo Annual Meetings. I have four objectives. The first one is to make sure that we have programs in place for some of the Arab transition countries. Second objective is to enhance and tailor to low-income countries our surveillance tools. Third is to get as close as possible, and if possible, the finishing light of the quota and governance reform. And fourth, I want to replenish the Poverty Reduction and Growth coffers. Thank you. MR. MILLS: Yes, Sandrine. QUESTION: Sandrine Rastello, Bloomberg. Mr. Zoellick, I'd like to follow up on the comments you made about China and working together with China, especially in the light of the contribution that China just--or that we expect China to make for IMF resources. As you know, China has become a lender of its own in Africa. I was wondering whether we see the future of the World Bank lending alongside China, and because I don't think we've seen many cases or examples of that so far, and what it would take, especially in terms of safeguards for lending. MR. ZOELLICK: So, Sandrine, you mean lending with China in third countries, or investing in third countries? Yes. Well, I think you're going to see an increase of outward investment, not only from China, but if we're looking over the medium and long term from other emerging market economies. And that's an area where IFC, our private sector arm, is already working to develop partnerships. I think there is also a key aspect in terms of the knowledge and experience transfer. Just to give you an interesting one, Indonesia was bringing some of its experience with community development after difficult situations to Haiti. So, this is much more than a Chinese issue. Brazil--I was here this past week with the head of the Brazilian Development Bank and we're talking about cooperation with the African Development Bank and areas of agriculture development. So, I think it's much broader than the Chinese side. I will say, though, that one other aspect that my colleague Justin Lin has encouraged, and I think has got very interesting prospects is that as China has a population that, over the next five years, there will be more people leaving the labor force than coming in. So, there's a need to move up the value chain, and that means increases in productivity that will warrant additional wages which warrants a higher living standard. Justin estimated the share of about 85 million workers in low-wage manufacturing in China. In all of Africa, South and North, there's about 8 to 10 million. So, some of those jobs--and one of the Party secretaries in Guangdong, Guang Yang has emphasized this. Some of these jobs are likely to move out of China. Now, some of them will move elsewhere in Asia, Southeast Asia, but Justin actually visited a recent operation in Ethiopia where there are plans for substantial numbers, even by the end of this year and over a few years probably manufacturing employment of about 25,000, which would be the same as the number they have in China. Now, to create this, we have to create an environment of ports and infrastructure and roads and energy and other things that China has had as part of its growth model. So, one of the reasons that I've been so adamant about the need to connect with the middle-income countries is that not only do they face development challenges, but I don't want the Bank to be hollowed out. I think that those countries will be very important in the future of the Bank in helping a lot of the poorer countries, because you can already see with trade and investment and even foreign assistance flows. As I noted in one of my recent remarks, last year, a conservative estimate of the traditional foreign assistance from new donors was about 15 billion. That's about 15 percent of the 100 billion that developed donors make. For our IDA process, we not only got contributions but a number of developing countries, including China, prepaid their IDA credit. So, that's one reason we're able to get a record number of 49 billion. So, there are huge opportunities. And what it just underscores is if you think about the issues that Christine was dealing with in terms of growth and macroeconomic stability, if you think about the Rio+20 issues and environment, frankly, it's going to be true in the security area, we want to draw more to bring these countries--not only China, but all the middle-income countries--as effective beneficiaries and contributors to the international multilateral system that the United States and Europe and Japan created in the first 20 years after World War II. MR. MILLS: Thank you. To the gentleman right over there, in the fourth row. QUESTION: This is Asit Mishra from Mint Newspaper, India. This is to Mr. Zoellick. The G-24 countries have expressed concern over falling development finance in the World Bank. So, this is happening at a time when your sister organization is able to garner some 430 billion for a fund. So, how do you see it? Do you see that it's lack of interest in development finance and poverty reduction among the member countries? MR. ZOELLICK: Well, I'll let Christine explain, I think, the benefits of the additional funding or backstop for the IMF, but I think they're designed for the global economy, and that would certainly include developing countries, and obviously this is part of an overall effort that's also done by the Europeans on their own behalf, but the World Bank also had a capital increase, the first one in 22 years. Our equity-to-loan ratio is about 28 percent. So, we've got some significant ability to expand, even with our current equity. I did suggest in the meetings that I think we need to continue to be creative about other ways we could support countries such as India. For example, when I was in India, we talked about a public-private partnerships infrastructure facility. It might draw some government money from the Indian government, from the World Bank Group, but also from other private partners. But to do so, we'll need perhaps to use the IFC approach to those projects as opposed to some of the things with the traditional IBRD approach. As you may know, we increased the single borrowing limit for India, made an exception. I personally think that India's credit should allow us to expand that more. Another tool that we could use and is used in the case of India is that if some of the reserves that countries hold are in the form of IBRD bonds, which actually have better returns than some of the things that they invest in, that allows us to expand the lending. So, that's another tool. And one of the things I briefed the Development Committee about is when, in the autumn of last year where financial markets were particularly in a risky situation, a number of emerging markets came to us and said, "What's most important to us is have access to large amounts of credit, regardless of whether you have to adjust the price or maturity. And we--with our current capital account we could expand that considerably if we do some flexibility and maturity in pricing. So, there's a lot of tools that one can use either from the IFC or the IBRD side. India is also in a transition stage with IDA, and some of the types of things that--where countries made contributions to the Fund are similarly the type of things one might be able to do in an IDA account where you have long-term credits at very modest interest rates. But again, I think they're slightly different. I mean, you want to be careful with the apples and oranges, because they're a backstop facility often done by central banks in the case of the Fund. And so, the idea is to have them there but not necessarily to draw on them. And what we're talking about here are ways that you can actually put investment funds to work on growth strategies. MR. MILLS: Is that fair? Okay. Yes. Lesley. This is the last question. QUESTION: Lesley Wroughton at Reuters. Bob, I wanted to find out from your discussions over the last few days what are the biggest concerns for the low-income countries as far as the spillover effects. I mean, we know the IMF is saying they're not seeing a slowdown in the low-income--in Sub-Saharan Africa, but what are you hearing? From the Finance Ministers' meeting, they were saying that they're pretty afraid of how this could really set itself into the economies. And then, for Ms. Lagarde, as the negotiations get underway for the next governance reforms, including the formula and then moving into--I think it's the 15th review--what do you think are the issues at stake here? I mean, the emerging markets want more say. The Europeans don't want to lose further power. They want to obviously hold onto something. What are the issues that you think that the membership needs to focus on to get the deal done? MR. ZOELLICK: Well, Lesley, as for your question to me, just realize this is a slight difference from your focus, but I think what we've been trying to stress is growth is one of those things that's not a zero sum; and so if you have the emerging markets in developing countries growing, that benefits developed countries and other developing countries. So, two-thirds of global growth has come from developing countries. So, it's in everybody's interest to continue their growth. I shortened my initial remarks, but what I've tried to emphasize in these meetings is that, in addition to the macroeconomic stability, which is very important, it is important for developed and developing countries alike to focus on the structural reforms, the microeconomic reforms that will drive future growth. And indeed, the Chair of the IMFC, Tharman of Singapore, made this point very well, how the fiscal adjustment needs to focus on the foundations for future growth. Now, more particularly, and I think Christine and the IMF staff have made this point: Some of the emerging markets have less space and so they have less fiscal movement and, in some cases, depending on their monetary policy, they have less flexibility if things turn down. A point that Pascal Lamy of the WTO and I have emphasized is we have some worries in the trade finance area, driven in part by the deleveraging of European banks, many of which were very active in trade finance, combined with some of the Basel rules, which have been changed but, in my view, still use as their examples more consumer finance and mortgage than the evidentiary basis for trade finance, but we will help develop the evidentiary basis for that, and that's particularly because for when you have a credit squeeze, it tends to hurt the smaller countries and the smaller banks and the smaller businesses, and those are ones that are obviously important for some of the future development. And particularly, if you're trying to build future growth models, it would probably be the intra-African trade as opposed to the African commodity trade with others. So, that's a second area. Third, it depends on the clients. The fragile states are obviously, by definition, fragile. So, they're worried about anything that could shock the system. There's a worry about oil prices, if you're an oil consumer as opposed to oil producer. And if you're a middle-income country or low-income country, I pick up a very strong interest in the infrastructure agenda, which is why I just touched on it briefly, but I think there's things that we started to do at the Bank, not only with our own investments but with public-private partnerships and really to try to make that a bigger deal flow, and what would be appealing is if we could then combine it with the private capital markets, as we're starting to do with a fund that IFC and Singapore are putting together. So, it varies a lot by market. MS. LAGARDE: Okay. On your question about governance, quota, formula, I take reforms one step at a time. So, my focus at the moment is make sure that we implement the 2010 reform, for the Tokyo Annual Meetings. Then, we have the January 2013 deadline. We've begun the discussions about the formula review of the quota. That will take its course, its time, its discussions. Everybody wants to have a bigger share of the same pie, so there will have to be gives and takes. And the 15th review will be in January 2014. So, we have a little bit of time. MR. MILLS: Very good. Thank you very much. [Whereupon, the press briefing was concluded.] Show Less -
Transcript of Opening Press Conference with World Bank Group President Robert Zoellick
MR. MILLS: Good morning, everyone. Thank you for joining us for our World Bank Group press conference for the 2012 Spring Meetings. Joining me this morning is the President of the World Bank... Show More + Group, Robert Zoellick, who will have an opening statement and then take some of your questions. If I could please ask everyone when they ask a question to identify themselves and your organization; and once again, I am sure you have been asked, but if we could have our mobile devices switched off or to "vibrate." So, President Zoellick. MR. ZOELLICK: Thank you, Rich. Welcome, and thanks to all of you for coming. This marks my last Spring Meetings as the President of the World Bank Group, so I would like to begin with a few words of thanks to the Ministers who have supported us and worked with us; to our Executive Board, who have labored hard to help our Management team to modernize the important multilateral institution; to the excellent Senior Management team that I have been proud to help build and to lead; and to the World Bank Group staff in Washington and around the world. They are motivated, they are committed, they want to make a difference, they are a tremendous asset, and we have been able to draw the best now from 170 countries. This has been a pretty busy five years, so I suppose my tenure at the World Bank Group has had three phases--a turnaround from a time of some trouble; quickly moving into faster and more flexible, large-scale support for our client countries across the food, fuel and financial crises--in financial terms alone, about a quarter-of-a-trillion dollars; and the start of the modernization of the World Bank Group for the future. That ongoing modernization effort will be a large part of my presentation to the Development Committee later this week and my discussions with our Governors. With the first large recapitalization of the IBRD in over 20 years and two record-breaking IDA replenishments totaling more than $90 billion, I am pleased to turn over a well-resourced Bank with a AAA rating. Yet we always need to think ahead about how to mobilize resources--for the growing interest in IFC and private sector development, for the poorest, and for the changing needs of our middle-income clients, which are still home to three-quarters of those living on under $2 a day. Our Modernization Agenda is driven by our focus on clients, listening to their priorities, as opposed to an old top-down approach, and modernization involves a rigorous focus on results, openness, and accountability. So our initiatives for open information, open data, and open access to knowledge may turn out to be the most important legacy of the past five years. These steps are key to democratizing development, and these steps lay the foundation for expanding social accountability, fighting corruption, and building better governance. Last year, I proposed that the World Bank and others should recognize that investments in civil society and good governance are as vital as investments in roads, factories, and clinics. So I will be pleased to announce later today the formation of a new Global Partnership for Social Accountability that will provide support to civil society organizations in their work on social accountability. Now, much of what you will hear over the next few days will deal with the ongoing shock waves of the financial crisis--issues of macroeconomic stability, fiscal and monetary policies. That is certainly important, but it is not enough. Countries, both developing and developed, need to focus on the structural reforms that will be the drivers of future growth; otherwise, the world will keep stumbling along. The World Bank Group will be emphasizing the structural growth agenda. Structural reforms and changing growth models fit with our recent major reports such as the China 2030 Report and the Golden Growth Report that looked at Europe. You will also encounter structural growth in our priorities for infrastructure, especially public-private partnerships; social safety nets, to protect human capital in a volatile and uncertain world; gender, so that countries can gain growth opportunities from empowering all of their people; and financial inclusion, including at these Meetings, a first-of-its-kind report on measurement to access financial services that will show that three-quarters of the 2.5 billion people living on less than $2 a day are shut out of access to banking. Developing countries have provided two-thirds of global growth over the past five years. These are no longer charity cases; they are vital to the world economy. But of course, they face huge challenges, too. So it is the World Bank Group's aim to keep focusing the world's economic leaders on growth--not just stability; on human safety nets--not just financial safety nets; and on modernizing multilateralism so that all 188 of our shareholders can work together for their common interest. Finally, I had an opportunity to talk to Jim Kim after his selection as my successor. We will have a chance to meet shortly after the Spring Meetings on the transition process. I think he will do a great job, and I wish him and all others associated with the World Bank Group every success. I am pleased to take your questions. MR. MILLS: Yes, Sudeep? QUESTION: Sudeep Reddy with the Wall Street Journal. I was hoping you could address the European crisis from two angles. One, you previously noted that European countries had bought a lot of time with liquidity measures. I am curious what you think about how they have used that time and what they need to do next; and more broadly with emerging market countries, how are they faring with the shock waves from Europe, and is there anything in particular they should be doing now given the potential for another round with Spain? MR. ZOELLICK: Well, on the first one, I think the euro zone in particular and the European Union is going to be walking a very fine line. First, as you noted, with the anxieties late last year, I think the ECB's extraordinary actions were appropriate, but I think some misled themselves because they only bought time, and the time has to be used. I think that, as the IMF has pointed out, on the one hand, the future of the euro zone depends on actions of individual countries, particularly the steps they take for fiscal consolidation and, as I have emphasized, the steps they need to take for structural reforms and future growth. It is very difficult to take those steps in a no-growth environment, so it has to be balanced with steps that might be able to support demand and longer-term changes of growth. So this week, I tried to make some suggestions on the supply side and ways in which the single market could also further deepen integration to support growth. Now, again, as the Fund has pointed out, the banking system also remains under significant stress, and at the one hand, you need the banks to build their capital; on the other hand, what we have seen is that if the banks build their equity ratios by shrinking, as they by and large have been doing, that is going to put a stress on credit contraction and undermine the basis of growth. So I think the debate understandably reflects the fact of trying to balance these issues, but I think we are now in a phase where, after the ECB provided very attractive financial resources to a number of the banks to be able to buy government debt, as we have seen in various newspapers--I think your own today, as I saw one story--they are about at the end of that point and limit. So I think further actions are going to be called for, and the point I keep emphasizing, wherever it is around the world, is not just to focus on the austerity and macroeconomic stability measures, but you need to do this in a context of growth, in part because we have to face the political economy issues. So, as I have emphasized, the real countries that are critical because of size at this point are Italy and Spain. You have governments that are taking strong actions. It would certainly help if they got some support from some of the types of things that I and others have talked about so as to help with growth and the politics of reform. As for your second question, the deleveraging process in European financial institutions has certainly begun. I tend to agree with I think the IMF report and others that said that there is more to go. We have seen the effects, differential effects, around the world. I just came from East and South Asia. You have definitely had a pull-back in some of the project lending and sale of some of the assets in East Asia. A number of the Asian banks have stepped in, so it has not really had a significant contractionary effect. Starting late last year, I again worked by my friends at the EBRD and EIB and EC to try to reactivate the Vienna Agenda because I have been most concerned about the Southeastern European and the Balkan countries. And there, working with the banks, we are seeing the contraction. So far it has been orderly, but it is a good example of trying to get ahead of the curb, Sudeep. I was talking about this late last year, and people did not yet see the numbers, and as you saw the first quarter with the BIS numbers, you started to see this contraction. And I was actually pleased--through the IBRD, we were able to expand our commitment over the next couple years by about $4 billion, IFC another $2 billion, so our total, I think, is about $27 billion. I think that is an example of the types of things you need to do, frankly, even in the months ahead to get ahead of some of these problems. North Africa has clearly been affected by this, and this is again the political implications, because for a number of the North African countries, Europe is a very important export market, so it is important. I was with the Tunisian Finance Minister yesterday, and I am going to meet them again--as they undertake these difficult reforms, they need to get support from us and others along the way. And an area that Pascal Lamy of the WTO and I have been watching particularly closely is trade finance. A lot of the European banks were big players in trade finance, particularly the French banks, so you are seeing some shrinkage of that. In the areas, what I am most concerned about--and by the way, this is where the new capital rules from Basel III are going to have to be watched very closely; the Basel Committee took some steps to alleviate some of the changes that they had put in, overly stringent, in my view, but now we are trying to gather some data with the WTO and others to make a stronger case for easing some of the strictures they have--because what I am most worried about is a place like Sub-Saharan Africa, where I suspect that the exporters of major commodities to the U.S. and Europe will still get trade finance, but if you are a small country, if you are a small bank, if you are a small client, if it is intra-African trade--which should be the future of growth--those are likely to get squeezed. So, again, what I try to do in these meetings, Sudeep, with my G20 colleagues, because we see all these marketplaces, is to try to anticipate some of those issues, and those are some of the ones that I am focusing on. And then, the last one, of course, which is implicit in your question, is that we are not out of this mess yet, so if you have a more seismic event because of failures of management, that is going to hit everybody hard. It is still a fragile economy, as we and the IMF have pointed out. MR. MILLS: Yes, the woman in the second row, please. QUESTION: Yes, Antonella Ciancio from Reuters. We would like to know how concerned are you with Argentina's move to nationalize the country's leading oil company, and if this somehow threatens to further isolate the country. Thank you. MR. ZOELLICK: Well, I think it is a mistake, and I think it is a symptom that we have to watch out for of, under economic pressure, whether countries will move to more national, autarchic policies, respond more to populism, respond more to protectionism. So I think it was the wrong thing to do. MR. MILLS: Thank you. Yes, Howard? QUESTION: Hi, Bob, and thank you. Howard Schneider with The Washington Post. On the Arab Spring, I was just curious--Madame Lagarde laid out what is basically now a stalemate between the IMF and Egypt over support there, and I was wondering from your perspective, to what degree you think political uncertainty in those countries is holding up the type of support you feel needs to come from the outside to get their economies back on track. And then, secondly, briefly, what is your advice to Kim on transition? What are the mechanics of that going to look like, and what are you going to be able to do to help him in the door? MR. ZOELLICK: Well, on the first one, Howard, it varies a lot by country. So let's take Tunisia, which I referenced with Sudeep. You know, Tunisia has gone through an election process. They have an Islamic-based government. The government seems to be stressing the continuation of the policies that the prior interim government focused on, and those are policies we are trying to do everything we can to support--not just basic financing, but policies of inclusion, because you have had sort of a growth model that didn't pay enough attention to people in the west and central part of the country--trying to focus on some of the youth unemployment issue, and--very nicely with the agenda we are setting on openness and social accountability--when we did a Development Policy Loan, they accompanied it with a series of changes to try to open up their process. And I think it is not only good politics, it is good economics, obviously, to have the society feel that they are engaged in the process. But the Tunisian economy is still under significant stress; it has lost tourism; it has lost some of the effects of exports to Europe. So IFC, our private sector team, has also been doing investments in there. So, in the case of Tunisia, this is not going to be done overnight. They are going to face a tough year. But I think it is in everybody's interest to try to support them if the government stays on the current path, because again, looking at this from a bit of an economic history point of view, I think the North African transformation is going to take a while, but what I saw happen in East Asia and elsewhere is that countries that undertook the reforms become models for others. Morocco has had a fast-paced evolution as opposed to revolution. They are making a series of reforms, so we are trying to support them, again, on the openness side, the investment side, the private sector side. We are trying to support Jordan. Jordan is going through a combination of political and economic reform. In a country like Libya, they have the resources. There, we have been trying to work with some partners in a difficult security environment to help create the capacity for basic financial management and other activities. So, the big one obviously is Egypt, which you referred to, and here, as I suspect from what you have said that Christine mentioned, they not only face an economic and financial challenge, but they are in the process of a political transition. And I understand that there will be a need to be able to base the legitimacy of whatever economic relationships they have on the Fund and the Bank with the people who will be exercising power under the new Constitutional arrangement. So I think that that does slow up the process. Life is full of twists and turns. That is kind of the facts of life and the reality. There are things that I think the interim government can do to create a better environment for this. We have kept doing investment lending, and we have tried to focus some of the investment lending in Egypt on some of the sectors in need, but the bigger policy loans that we would do would depend on the macroeconomic issues that the IMF is addressing; and frankly--at least it has been my guidance--they will also be based on some of the openness and social accountability issues that we have seen in Tunisia and other countries. And that, I think--that is also important because I think you are going to be going through a political transition process, and the more open it is, then, whoever is elected in this year or next year or others I think will have a better sense of engagement with the economic changes in Egypt and the relationships with the World Bank. So this is one of the things, I think--we have also had to learn lessons from the Arab Spring. Economic growth alone is not enough. It has to be inclusive. And frankly, the more we can emphasize the things I have been talking about, about openness and social accountability, I think that is the future direction of the Bank as well as these countries. You asked a second one--oh, on Dr. Kim. Well, I have been through a lot of transitions in my life, so I have some experience with them. We tried to centralize a team to avoid the standard problem of the 500-page briefing book by focusing on some of the issues that will come up first. I think these Spring Meetings are timely because we will get a sense from the Governors and the Board about some of the issues that would be of nature to be a continuation--some of the things that I have talked about in this Modernization Agenda which has both internal and external aspects. And beyond that, I always think that as you are turning something over, you have to actually have some degrees of restraint. You know, he will be the person in charge. I happen to believe that change is good for institutions as well as me, and it is good to have a fresh person come in. So we will try to explain where we think some of the issues are. He certainly has a lot of perspectives, I am certain, from the tour that he took around the world and the discussion with the Board. So I am certain that by the time he takes office, he will have a pretty good feel for the challenges ahead. MR. MILLS: Yes, right over there, to the gentleman with his hand up--no, to the gentleman. Thank you. QUESTION: Larry Elliott, of The Guardian. In your five years at the Bank, what do you consider to be your biggest success, and what do you consider to be your biggest failure? MR. ZOELLICK: Can I hold on the second one? [Laughter.] MR. ZOELLICK: Well, I tried, Larry, briefly, in the opening, sort of anticipating this question, to say that in my own mind, I have seen these three phases. So, first, when I came into the Bank, as for those of you who have covered it, it was a tumultuous period. And so I had the challenge of a leader trying to turn around an institution. And to the credit of the institution, the best way to get out of some of the internal strife was to focus people on the mission--that is why people came to the Bank--and we were able to do that relatively quickly. We had some complicated issues to deal with in governance and anti-corruption and others where Paul Volcker and others helped. Second, before too long, we had the food and fuel crisis start to hit us in late 2007, so I am particularly pleased that sort of a combination of my international experience and kind of reading what was happening in the market, we moved quite quickly, and I think if you talked to people in the food security community, they felt that the Bank was more agile than it might have been in the past, but--and in addition, we start to see this as an opportunity to invest in agriculture going into the future. And then, as I have mentioned, in the financial crisis, doing about a quarter-trillion dollars of support is not only important financially, but it was important to how we designed a lot of it. So the fact that in trade finance, Lars and the IFC team leveraged our financing to keep a lot of banks in the market. I mentioned the Vienna Initiative. In Indonesia, we organized with the Asian Development Bank, the Australians and Japanese, a backstop proposal. So part of my point here is that it is not just financing; we need to be able to leverage it and kind of innovate it in innovative ways, and I think we were able to do that, including some things that I hope will become seeds of very important future growth, like this Asset Management Company which is a subsidiary of IFC, where we are now tapping the sovereign funds and pension funds, and we already have $4 billion of money that the Bank would have never seen going into African equity markets. So it is not only the response in financial terms, but it is also the innovation. And then, as part of that, it goes to this modernization phase which I think has just been begun, and there, as I mentioned briefly in my remarks--and here, I credit some of my team, Caroline Anstey, Sanjay Pradhan--together, we decided this focus on really opening up the Bank as an institution was key to not only development, but frankly, having a healthier Bank. And so an Open Information policy, it is the first among multilaterals, based on an Indian and U.S. Freedom of Information Act--this Open Data Initiative is just going to--I have already seen it--it is going to drive a whole new way of doing policy, because we are making this accessible with mobile phone technology in any country around the world, so we are going to have a much more interactive process. And just to connect this to a little bit of the transition debate, Larry, it was interesting that--and I am not saying this was any of the three candidates--but some others were saying: Oh, the Bank is doing too many things. It must focus on these three things. In my view, that was a mistake that elitist economists made 20 years ago, where they said "We know what developing countries need." And maybe it is because of my private and policy background--my approach has been fundamentally different. It says let's focus on the client; let's hear what the client needs, and then let's take the innovation from the world and apply it so, and then, in the process, we can learn with the client through an open process about how to do it better. So I think--I am sure you have encountered this with The Guardian, but I have encountered it at university campuses – is that you know, the Bank is still a big, multilateral, Washington-based institution, but the more you open up an institution, it is the best antidote to conspiracy theories and better policy. Pardon? QUESTION: [Inaudible; no microphone.] MR. ZOELLICK: Well, I'll let you be the judge of the failures; how about that? [Laughter.] MR. MILLS: Yes--thank you--to the gentleman right here. QUESTION: Thank you. IMF Managing Director Christine Lagarde just said that low-income countries have to deal with lower aid resources. I would like you to elaborate a little bit more specifically on Latin America, if you have figures. And I would also like to know if the World Bank is concerned about the rise of protest movements and more social demands in different countries, even the Occupy Wall Street movement here in the United States, in Europe, and all this situation. MR. ZOELLICK: Well, on the first one, I guess the way I would approach the concerns for low-income is not just in certain countries but across countries, because one thing a lot of people have lost sight of is that two-thirds of the people living on under $2 a day are in so-called middle-income countries. I was just in India, where I met with women with a Self-Employed Women's Association. These are extremely poor women. So one of the challenges for the Bank is getting people to recognize that you are going to need to deal with poor people in a variety of different countries. Now, foreign assistance is clearly a piece of that, and it's under stress. By and large, if you look at the OECD numbers, the countries have sort of generally kept up what they were doing. But I guess my suggestion on that goes to some of the things we have said in modernization. Take a country like the United Kingdom, which has maintained its effort to reach the 0.7 percent of GDP under difficult budget circumstances. It is a heroic effort. They, the Australians, Canadians, and others have done good work on this. But they need to show value for money, so this goes right back to the Results Agenda. And this is where some of the things we are trying to do to have evidence-based learning about what works and doesn't work--I think it is something Dr. Kim is interested in--this will be very important for the future. But another point of it is, one reason that it is important to draw the middle-income countries into the multilateral institutions is about a conservative estimate of the foreign assistance from the emerging borrowers, or the emerging countries, was about $15 billion last year. That's about 15 percent of the total, and it is probably a conservative estimate. And recognize, part of my view is you've got different sources of funds. You are also going to have investment funds. So the rise of China and the increase in commodity prices has probably been one of the best things for Latin America. The challenge, however, will be for Latin America to use that--and that is one of the things I will be talking about with the Governors--as a broader basis for more inclusive growth. So I tend to--I gave a speech last year where I talked about "Moving Beyond Aid," and the idea was not that we can overcome that today, but we need to move beyond kind of a charity model to the notion of investing in human capital, in infrastructure, with developed and developed countries, and in some ways, the best test is Sudeep's opening question--what are people most worried about today--Europe. And if two-thirds of the global growth comes from developing countries, we have to change people's mindsets. These are potential poles of growth. I just met yesterday with the African Governors. What are they interested in? Energy. Infrastructure. Regional integration. So those are the elements that we need to focus on. And I guess the last point on the poorest--the world is an unpredictable place. We are not going to change that. So people who believe they can control this price or that price, I wish them--well, I don't wish them good luck--but anyway, it is not going to work. What we should be doing, however, is making sure that every country has an effective social safety net, and we had a function on this yesterday, because we have learned a lot from developing countries about how to do this in a cost-effective way. The Bolsa Familia Program in Brazil, the Oportunidades in Mexicos--these are done for half of one percent of GDP. Trust me, if the U.S. Congress could get their entitlement programs down to any remote degree of that, they would be pretty happy; and yet they cover 15 to 20 percent of the people, and they provide a ladder up. So, and Ethiopia has a different model. So we at the Bank have helped extend conditional cash transfer programs to about 40 other countries. So we had the Philippines Secretary here yesterday, and they have expanded to 3 million families. So to me, the message for aid is not just the aid number but its effectiveness, and for the poorest, let's focus on basic safety nets for every country to deal with the volatility and uncertainty, because the other lesson we learned is if you wait until the crisis, it is too late. MR. MILLS: Okay. I think we have time for one more question. Yes, we'll go to the gentleman in the back, please. QUESTION: Hi. I am Bernard Busuulwa from Uganda. Now, Robert, I would like to know--you talked about the pending problems with trade finance among African exporters. I would like to know what is your first advice to central bankers in Africa who are terribly challenged in getting their banks to increase access for the exporter, and pro-poor growth in cross-border trade, especially at a time when their economies are also feeling the heat of the euro zone stress and weakness in the American economy. MR. ZOELLICK: Well, my first advice is not necessarily to the African central bankers; it is to some of, the Basel and developed world central bankers that, as they develop these rules, build back in feedback loops, because as sure as we are sitting here, they are going to find ways that over-constrict--it is the way the pendulum works--and I am most concerned about the effect of over-constriction on poor countries and developing countries. And in the area of trade finance--something that Lamy and I have talked about--part of the problem is they put in capital requirements and they don't have very good evidence, but frankly, the evidence we have is that it is a pretty short-term loan, and, it's a pretty - it tends to get repaid. So my first start is with the developed world. But secondly--again, I would not focus so much on the central bankers--there is a huge opportunity in Sub-Saharan Africa to remove border barriers, to create more integrated markets. So--you are from East Africa--I visited a one-stop border place that we helped open up--I think it was actually Kenya and Uganda--and it had gone from two days for goods transporting to two hours. And this does not require huge sums of money. We now have the systems. We have worked with some private sector firms to develop the software on this. And it means sort of systematizing the process. Then, if we can combine that with infrastructure development so, whether it is roads or railroads or ports or electricity, to be able to strengthen it. So you are right--at least, I think you are right--by saying that subregional integration--and I would focus on sub-regions--East Africa, West Africa, Southern Africa, Central Africa--is the way to really start to drive a potential for growth. And I just keep coming back to this, because when I read most of the press accounts of these meetings, everything is focusing on the macroeconomic/fiscal/monetary. Fine. I am not denying that. But you are not going to ever deal with this problems unless you create sources of growth, and there are sources of growth in Africa, and I see it with private sector firms being interested in it, but Africans have to create the right enabling environment. MR. MILLS: Very good. Thank you very much. Show Less -
Signing of the Alliance of Small Island Developing States (AOSIS) Sustainable Energy Partnership Mechanism
Opening Statement AMBASSADOR DESSIMA WILLIAMS: … Of course partnerships are the name of the game now, so I want to welcome to the podium the President of the World Bank, Robert Zoellick. And as he... Show More + approaches, I also thank his team for their preparation, thank you. MR. ZOELLICK: Thank you very much Ambassador Williams [Inaudible]--but I see that you're moving us all very effectively through this, so I want to thank you for your efforts. And Prime Minister Thomas is an important leader, my colleague Helen Clark [ph] from UNDP. But I have to have a special word of thanks for Dr. Lykke Friis. Denmark has provided generous support, without which we really wouldn't be able to launch this. But in addition, as you got the sense, Denmark is a policy innovator. As Dr. Friis mentioned, part of this maybe comes from Denmark's experience as an island state itself. But she didn't mention the fact that there's another connection here, which is that if you go to Copenhagen along the dock area, there's a beautiful warehouse that has murals of the old ties that Denmark had with the Caribbean, going back 200 years. So Denmark itself had experience with being a Caribbean state for a while. I think it's important, one of the lessons we learned out of Copenhagen was there's obviously some very large countries doing and playing an important role in dealing with climate change. But we really have to go build a broad coalition. And in this case the small island states really have been the leaders on the climate agenda for over two decades. It was the Maldives that was one of the first countries to draw attention to the risk of rising sea levels. Barbados and Mauritius played leadership roles in developing the Barbados Program of Action and the Mauritius Strategy for Implementation. Antigua and Barbuda, along with Jamaica, are currently playing lead roles with the Ad hoc Working Group for the Kyoto Protocol and Clean Development Mechanism. I had a chance to meet the Prime Minister when we were in Grenada, and I had a sense that this is something he's coming out with, I mean when we were in Copenhagen, that's something that we needed to put more effort in. I had a chance then to go down to the Caribbean, to meet with the CARICOM colleagues and I think some of this work is an example of something that I think we'll deal--we'll get a better sense of out of Cancun, which is that while we work going at the treaty level, we don't have to wait. These are important building blocks, and we can learn, we can develop pilots, there's been--a critical need is to learn how to scale up along the way. And I think one of the reasons why AOSIS is such a good partner is these countries are not waiting. These are very practical steps that we're taking across a variety of areas. At the Bank, the island states have been some of the first that we've developed a multi-sovereign catastrophic risk insurance product with. We support something called the Caribbean Catastrophic Risk Insurance Facility, which provides immediate financial liquidity when various parameters are triggered because of wind or hurricanes. Islands in the Caribbean and the Pacific are mainstreaming adaptation and disaster risk management into their core development planning. We've been able to work with our colleagues at other regional development banks to have a Pilot Program for Climate Resilience to help them with these efforts. Many island states have already taken the lead in developing their own low-carbon strategies. The Maldives was one of the very first countries to announce a plan to become carbon neutral within ten years. Barbados is a leader in developing solar water heaters and providing technical assistance to others based on its experience. The Marshall Islands are proposing a low-carbon agreement among a small group of island states. So we at the Bank feel that these are exceptionally good partners, to try to not only help them but to demonstrate a larger example so we can then apply this to another occasion. Natural disasters hit small island states with significant economic losses. For example, in the case of Grenada, Hurricane Ivan had damages worth 200 percent of GDP in 2004. So we're trying to work with countries to integrate the climate change adaptation and disaster risk reduction into overall economic growth programs. The pilot programs that we're working on with climate resilience includes investment pilots in six Caribbean and three Pacific Islands, also in coordinating one regional component focused on scientific data collection, monitoring, and capacity building, and each of these programs includes about $60 to $75 million in grants. Right now we're supporting Grenada, Saint Lucia, Saint Vincent and the Grenadines in reducing vulnerability to weather hazards. In the Pacific, the Bank, with the support of the GEF, has been working with Kiribati on trying to mainstream climate adaptation in development plans and investments, and we have similar operations in Vanuatu and the Solomon Islands. Through IDA, which is the fund that we have for overall development for the 79 poorest countries and through a Global Facility for Disaster Reduction and Recovery, we finance disaster risk management for coastal infrastructure in Samoa and Tonga, as well as capacity building in nine Pacific island countries. We also with specific Pacific Catastrophic Risk Assessment Financing to try to provide the Pacific Islands with disaster risk assessment tools and options. Now, this program is obviously a key element because there's, as Dr. Park [ph.] said, these are countries that not only get hit by climate change and rising sea levels but they pay an extra price in terms of energy costs. So if we can get energy efficiency, develop alternative energy sources, we have multiple benefits. What we need to do is take the experience here and draw regional interconnections that offer some broader support to electricity sectors, particularly in hurricane-stricken archipelagos. So the Clean Technology Fund that we've developed as part of our Climate Investment Fund packages has the benefit of being able to leverage some of these investments up to eight times or more and, frankly, we then develop valuable experience as we go. So we're very proud to have a partnership with AOSIS. AOSIS has been a leader, that if we're going to deal with climate change more generally, whether it's island states, mountain states, others, we've got to bring everybody to the coalition, and so we're very appreciative particularly of UNDP and Denmark in helping us get this catalytic piece forward. Thank you. Show Less -