Official Bank Sites Related Information July 10, 2006—It was just one year ago that leaders of the world’s most powerful countries pledged to double aid to Africa by the year 2010. The landmark agreement came at the G8 summit of world leaders in Gleneagles, Scotland – a meeting which also saw consensus on debt relief for the poorest countries on the globe, as well as calls for urgent action on climate change and on scrapping trade subsidies. Now one year on, the leaders of the world’s richest countries will gather in St Petersburg, Russia, for this year’s summit – with the agenda to include an assessment of what has been achieved in the past year. World Bank President Paul Wolfowitz will join the world leaders in Russia straight from a visit to Ethiopia and Tanzania. The Bank President says he’s heading to the summit with a very clear message: “we must deliver on the promises made last year to this great continent – to help provide the opportunity for the poorest Africans to lift themselves out of poverty and make steady progress toward a better life for future generations. “ Wolfowitz has already called on the leaders to push for an agreement on a deal to free up global trade, while warning time is running out on achieving a successful end to the Doha Round of trade talks. “With time running out, our collective efforts can make the difference,” he says. “We can work to lift millions from poverty, boost developing country income, improve global market access and reduce taxpayers and consumer costs for all – or allow the whole effort to collapse, with harm to everyone.” “A pro-development result will yield gains for rich and poor alike. It would be an important step on the path to full liberalization which could eventually generate $300 billion a year in additional production for the world’s economy. Developing countries could gain by as much as $86 billion alone, dwarfing annual bilateral assistance efforts.” For its part, the World Bank has developed an Africa Action Plan which addresses the Gleneagles call for international coordination of increased aid to Africa. The Plan also seeks to strengthen the drivers of growth – through helping develop a vibrant private sector, expanding exports, investing in infrastructure, improving public sector governance, increasing agricultural production and investing more in education, health and other basic services. During his time in Ethiopia, Wolfowitz will have the chance to see firsthand projects aimed at improving people’s lives through expanded access to basic services such as health, education, water and sanitation. In Ethiopia, he’ll also hear about the importance of job creation. Ethiopia, with a population of 74,777,981, is the second most populous country in Sub-Saharan Africa. One of the world’s oldest continuous civilizations, Ethiopia is also one of the world’s poorest. At US$130, Ethiopia's per capita GDP is only about a fifth of the Sub-Sahara African (SSA) average. This country is one of the largest beneficiaries of the World Bank’s concessional lending program, the International Development Association (IDA), with a portfolio of 23 projects worth over US$1.8 billion as of June 2006. In Tanzania, Wolfowitz will look at the country’s on-going effort to strengthen economic growth and encourage small business. Currently, the portfolio comprises 23 active projects with commitments of US$1.6 billion in all major sectors. See the country brief for more details. Tanzania is one of the poorest countries in the world. Per capita income in 2005 was estimated to be at about US$340. Life expectancy at birth dropped from 50 years in 1990 to only 43 years in 2002, but increased again to 51 years in 2005.
After the G8 Summit, Wolfowitz will travel to Nigeria, Benin, Sierra Leone and Liberia in what is his second trip to the Africa region in just over a year as Bank president. The mix of countries to be visited by the Bank president will highlight Africa’s extraordinary diversity. While they face significant challenges, all the countries can point to hard-won gains that provide a basis for hope. The key is for the countries to build on what they’ve already accomplished – whether it’s securing the peace, sustaining higher growth and job creation. |
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