Official Bank Sites Related Information September 18, 2006—The Annual Meetings of the World Bank and International Monetary Fund formally opened in Singapore on Tuesday with President Paul Wolfowitz reporting that the Bank Group had enjoyed "record setting success" in the past year. In his speech at the opening plenary, Wolfowitz said IDA had provided $9.5 billion in support for the poor, more than ever before, with half of that dedicated to Africa. IBRD’s lending to middle-income countries was at the highest level in seven years at $14.2 billion. MIGA issued $1.3 billion in investment guarantees. And the largest increase was in IFC’s support to the private sector, with a 25 percent jump to $6.5 billion. Wolfowitz made a strong case for the governance agenda, saying, "For us in the development community, good governance is not an end to itself, but rather the foundation of the path out of poverty. It leads to faster and stronger growth. It ensures every development dollar is used to fight poverty, hunger and disease. In more and more countries, leaders and citizens alike are demanding transparent and accountable governments that deliver results." He said the Bank’s strategy committed it to deeper engagement to strengthen governance and fight corruption even in the most challenging environments. He referred to the milestone agreement reached with the other multilateral development banks on Sunday to share information to combat fraud and corruption. Wolfowitz said the developed countries had a vital responsibility in the fight against corruption – taking action against bribe-givers, and helping developing countries recover stolen assets. Reiterating that Africa "has to be our number one priority", Wolfowitz said, "I would now add that I see not only desperate need, but also real opportunity." He called on the international development community to move swiftly to support countries that had recently emerged from crisis. "There is no shortage of innovative plans in Africa for improving infrastructure. There are simply not enough resources. African countries cannot build on a foundation of hollow promises. If rich countries abandon their commitments to double aid to Africa by 2010, we will have failed to serve the best hope for Africa’s future—its people," he said. With IDA 15 talks beginning next year, he called for "a replenishment that matches the ambitions of the African people." Wolfowitz reminded delegates that two-thirds of the world’s poor live in middle income countries. "The poor in these countries have a potential advantage. They live in countries where the private sector is growing and where governments have resources and access to commercial finance. When their governments borrow from us, they want faster, customized service; greater flexibility; lower costs; streamlined procedures; and improved access to our learning and expertise," he said. "The Bank Group’s new strategy for engagement with IBRD partners contains a range of proposals designed to help us meet their expectations." Referring to the stalled Doha Round of trade talks, Wolfowitz said, "We must consider new ideas—and accept that every party in this deal needs to compromise." Wolfowitz thanked the people of Singapore for hosting the Meetings, and "most of all" the staff of the Bank for their professionalism and commitment. In his address, IMF Managing Director Rodrigo de Rato warned that the present global growth cycle may be close to its peak. "Educated and skilled labor is in tight supply, and the scope for continuing productivity improvements may be diminishing," he said. He pointed to three clear risks to global economic prospects: first, high oil prices could lead to higher inflation; second, the continued risk that global current account imbalances will unwind in a disorderly way; and third, a growing risk that protectionist sentiment "will overwhelm good sense." He called for the international community to work together to reduce these risks.
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