Transcript Paul Wolfowitz - Comments on China’s assistance to Africa Nov. 15, 2006 Constand Brand of AP: There is a lot of talk here, on the margins, about China. And what it is doing in Africa and what the EU is doing and what the rest of the international donors are doing. I wonder if you could clarify for me what the World Bank’s position is on China and not connecting its aid to performance and so forth, which has been the biggest problem. Paul Wolfowitz: I think one reason there is a lot of talk about is, there was this very impressive -- they had a different word for it but I mean, in a sense this is kind of a European-Africa Summit -- there was at China/Africa summit in Beijing recently. And I think the real message is that Africans are looking for help and Europe has been doing a lot for a long time. China has a relatively new entry in the field, but it brings a lot. And this is what I said at the press conference earlier; number one – put it in terms of three things -- I mean number one is China’s example, which really is powerful. It’s a country that was poorer than most African countries thirty years ago, and now there’s still a lot of very poor people there, but it has lifted some 300 million people out of poverty. It’s an incredible record, and it keeps going; and I think it’s an inspiration. Secondly, it’s a source of real knowledge and expertise and experience - maybe experience is even the best word to use. And I think for poor countries in Africa, they look at a very developed country like Belgium or the United States and they say, well that’s very interesting, but we can’t do that. But they look at China and they say, “Well, that’s not only very interesting, but we realize they were very poor just thirty years ago, maybe we can learn from their example.” And then finally -- and this is going to only increase over time -- China is a source of very badly needed investment resources. And I was talking for example with the President of Liberia today, and they have enormous needs for building ports and building roads, and would welcome help from China as they are welcoming help from the World Bank. And in fact I would maybe there are ways of -- as we work, I talked at my speech today about the partnership with EU; I mean obviously, we’re just in early days with the Chinese, but I would hope we could have the same kinds of partnerships between China and the World Bank. Amélie Bottollier of AFP: China is not asking African countries for the same reforms; EU or even the World Bank asked for them to -- do you think there is a risk for Africa, accepting all this money without continuing reforms and thinking that with this new money that they will avoid taking some difficult paths to reforms. Paul Wolfowitz: Couple of things; first of all, I mean China is a member of the World Bank; they have a full seat on our Board and they have supported our governance strategy. I mean, they are part of that process. It’s also true, every donor has their own bilateral policies, and those may sometimes differ, but I think the real point -- and I think a lot of African countries have learned this lesson is that no amount of money really makes up for the failures that come when you have bad policies and don’t get really sustainable growth. And it’s -- there is always a risk that governments may look for easy ways to develop. But I think – you know, China’s own example says, there is not an easy way; China didn’t achieve its success by spending money poorly; they achieved their success by very good reforms, and reforms that enabled people to start creating jobs and grow the economy. They created success by doing what Tanzania for example, is working on doing now, which is to move from a very centralized, very state-controlled, state-dominated economy to one that allows market forces to work. And in some ways, that experience is more helpful to Africa than -- again, coming back to the United States, you see a country that’s already got a very highly developed market system -- you may say, well, that’s not us, but you look at China and you see where they came from was very similar. Speaker: One last question. Paul Wolfowitz: Can I say something about the [inaudible]? Let me ask my own question. I mean, to me it’s interesting - you may have noticed or not noticed. I came here determined, and I did it, to say, “Look, it’s fine to talk about governance, but we also have to talk about assistance.” And what I find very encouraging is that you hear -- from the African side, you hear a lot of them saying, “Assistance alone isn’t going to do it. We have responsibilities on governance.” And from the developed countries’ side, you hear the comment that if we are going to get the assistance, our tax payers are going to demand good governance. The two things really are a mutually reinforcing package; one is not a substitute for the other and I guess that would be the message I’d like to say that supporters of good governance - and I am one - need to recognize that without money, without resources, without investment, it’s not going to take you anywhere. And also I think, people who think that money is the answer to everything should recognize that unless it goes in the right places and is used effectively, it won’t produce the result. Now you get to ask; I asked my question. One last one - he gets it. Constand Brand of AP: What should the EU be doing more in Africa? What problems do you see in the EU’s overall development policy? Paul Wolfowitz: Well, first of all I think -- I don’t accept the premise that there are problems. I think the main thing is, they are doing things right. I hope the same is true of the World Bank. What we really need to do is, more of what we are doing. And the needs are enormous - and the reason the needs are enormous is not just because there are a lot of poor people there but because there are a lot of governments that are positioned to spend the money well. And so, I think the challenge for all of us, EU -- I mean, they are already doing a lot, I would urge them to scale up. I think keeping these pledges to get the 0.7 percentage of GDP, doing that as fast as possible, and encouraging the other big donors to do it. And what’s working very well, which is recognizing there are some things the EU is better at than the World Bank, there are some things the World Bank is better at than the EU, and we need to work together. And I am getting the hook. Paul Wolfowitz: Thank you. ### |
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