Japan, World Bank must tackle poverty together

by
Paul Wolfowitz
President
The World Bank Group
Special to The Yomiuri Shimbun
October 10, 2005

 

As I visit Japan for the first time as president of the World Bank, there has never been a more urgent need for results in our fight against poverty.

In the course of half a century, Japan has moved from recipient of World Bank funds to second largest shareholder, serving as an inspiration to less developed countries. I know this experience has given the Japanese people a unique understanding of aid. No other member has been as exemplary in terms of development assistance, including multilateral aid through the World Bank.

The world has changed greatly during this time. Today, we have a much broader understanding of what drives development--and that sustained economic growth is essential for reducing poverty.

What determines poverty reduction? Perhaps the most important is leadership with accountability. Corruption benefits the privileged and deprives the poor, draining resources and discouraging investment. Civil society and women in particular have a key role in contributing to growth.

A vibrant private sector is important to drive growth and job creation. Finally, equality before law and the legal empowerment of the poor are essential to encourage people to invest in their future.

These are concerns that Japan and the World Bank share. While in Tokyo, I will meet with our friends in the government and other development partners to listen to their views so that we can coordinate and explore areas where we can work together. Our relationship has matured well with age, and it is time we elevated it to a more dynamic level with a focus on intellectual exchange and knowledge sharing.

At the U.N. World Summit in New York last month, I praised the Millenium Development Goals as a vital tool for measuring progress and emphasized that we must all stand accountable.

Japan and the World Bank are working to realize these goals. Africa--especially sub-Saharan Africa--is one of the regions where we most need to succeed. For its part, the World Bank has prepared an Africa Action Plan designed to help African countries accelerate growth and achieve tangible results in the next three years with more than 20 concrete actions including governance, the role of the private sector, as well as specific issues such as free primary school education and funding for agriculture and infrastructure.

The Japanese government has advocated the significance of African ownership and partnership. At the Group of Eight Gleneagles summit in July 2005, Prime Minister Junichiro Koizumi announced that Japan would double its official development assistance to Africa in the next three years. We welcome these efforts, and believe Africa can become a continent of hope.

Global poverty is the greatest challenge of our time. Development experience in the past tells us that there is no single theory that can provide all the answers, but countries and institutions that adapt, reinforce success and correct failure will do best. In Japan, I look forward to listen and learn in order to fulfill our responsibility to find solutions and deliver real results.