| October 18, 2005 — World Bank Group President Paul Wolfowitz arrives in Russia tonight for a two-day visit to a country that he says has achieved significant economic and social progress over the past 15 years. During his visit – the first since taking over as president of the World Bank Group - Wolfowitz will meet Russian President Vladimir Putin, as well as Prime Minister Mikhail Fradkov. A key focus will be Russia's role in the global economy and its contribution to the development agenda, with Russia preparing to chair the G8 summit meeting of leading industrialized nations next year. But equally important, Wolfowitz's visit will focus on the evolving relationship between the Bank and Russia and plans to help the country meet its future challenges.
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The Russian Federation joined the World Bank in 1992. Today, as Wolfowitz acknowledges, the Bank's partnership with Russia is "less about money and more about the transfer of knowledge, management skills and efficiency to address key priorities in health, education, regional development and the fostering of public-private partnerships." The World Bank's Country Director for Russia, Kristalina Georgieva, says a key fundamental is that Russia continues to want the Bank's development expertise. "Russia enjoyed strong economic growth over the past five years and has a large surplus in its state budget. This has led to a decrease in Russia's demand for external funding," Georgieva says. "What Russia is mostly interested in from the World Bank is its discipline, international expertise, and its unbiased, honest advice on critical economic policy issues." Georgieva gives the example of Bank financing for the National Hydromet Modernization Project, which will improve Russia's hydro-meteorological services by upgrading computer systems as well as monitoring stations. "It was worked out that for every dollar Russia borrows from the World Bank for this purpose, they receive five dollars back – because the improvements in weather forecasting meant better action to prevent damage. Our role was crucial in defining this economic rationale." During his visit Wolfowitz will take part in the launch of the Hydromet Project. He will meet with the head of the meteorological service and the Russian implementation team. Russia's existing system to provide accurate weather forecasts has declined over the past decade. It is estimated that annual economic losses associated with dangerous weather and hydrological events such as floods, avalanches and torrential storms cost between US$1 to $2 billion. The new project is designed to fix this problem. The World Bank is also supporting Russia with projects in education and health. Wolfowitz will have a first-hand opportunity to see the challenges facing the education sector when he visits a rural school and medical facility 50 kilometers from the capital. For Russia, raising the quality of health and education services is one of the key challenges confronting the country, despite its impressive economic and social reforms. During his visit, Wolfowitz will also meet representatives of several regional Russian governments to hear how they believe the Bank can help support the country's regional development. In other meetings he will have a chance to talk to members of the private sector and Russian think tanks, as well as representatives from civil society. |
