World bank President Robert B. Zoellick : On his planned trip to Australia, Cambodia, Vietnam and Japan

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So, I’m pleased to take a couple of questions.

Journalist: How highly could climate change rate on APEC’s list of priorities in your view?

Zoellick: I think, would you mind just mentioning your name and who you are associated with?

Journalist:   I am Michael Rowland, Australian Broadcasting Corporation.

Zoellick: And, the question was?

Journalist: Your views on how highly climate change would rate on APEC’s list of priorities?

Zoellick: Well, it’s one of the items that the Australian hosts have put on the agenda. So I imagine it’s a topic that is very significant, because one of the things that characterize this region is one of great growth and great opportunity and dynamism, but also sensitivity to deal with some of the challenges of carbon. So, the Bank has been doing some work that was even discussed this week with Australia in terms of a forest sort of carbon fund - and that's one way in which we believe that the World Bank can offer some of its services and technical expertise and financing to try to help address the issue. When I am there I hope to get some thoughts from my colleagues and associates about other ways the Bank may be involved. There are issues related to energy efficiency in the region, technology and ultimately, there will be a meeting in Bali later this year, that will try to deal with the questions of sort of the next stages of this for both  developed and developing countries. So, I hope the Bank can play an important role.

One of the reasons that I am taking this trip, which really compliments a trip I took during the nomination process to Africa, Europe and Latin America, is to get the perspectives of the different set of countries; and that is why it is very fortunate to start at the APEC meeting because it will give me a chance to meet finance ministers from all the countries in the region before going on to some of the particular partners. 

Journalist: Mr. Zoellick, could I follow up upon that please? My name is Kaori Iida, I’m with NHK Japanese public television. On your trip to Japan you also mentioned global climate change. Japan has indicated that for next year’s G8, global climate change and also the clean energy development will be high on the agenda. Could you expand a bit - on what you think the Bank’s role will be in that area, and also if you expect to talk about that in Japan as well?

Zoellick: Well, I certainly hope to. My prime purpose in going to Japan is to get a sense of what’s important for Japan in the development agenda, and perhaps do some strategizing together about the G8 Summit that Japan will chair - and also Japan is hosting a very important meeting related to African Development in 2008. And so, I will be able to share views about development in that quarter as well.

On the climate change - again - agenda, I think there’s different roles the Bank can play. One is to try to facilitate some of the new mechanisms, whether they be some of the trading networks in terms of carbon; whether they be some of the technology networks. Some of this could require financing so whether it is a forestation project or whether it is clean energy development projects. But also, I hope to get some of views of the countries about the types of regimes that people are thinking about and whether we may be able to land our experience or expertise to think about how the Bank could be supportive.

I will make this added point though. The climate change issue, just like another one that’s been important in the region dealing with global health, in this case coming out of some of the avian influenza issues - what people refer to is the public goods agenda; issues that cut across national borders, that everyone has an interest in trying to deal with, but how does a global community address them. I think it’s very important that while the Bank and other development institutions can help play a role in that, that we do so in a way that supports the fundamental development work particularly in the poorest countries.

When I was in Africa there was a very strong sensitivity. I was there the week of the G8 Summit in Germany. There was some anxiety that the focus on some of the global public goods  issues might divert attention of developed countries towards the basic developing needs in Africa and other poor countries, for example, the Millennium Development Goals, dealing with poverty and infant mortality and basic education issues. So, that’s another issue that I want to try to discuss when I am in the region.

Australia I understand has pledged to develop - to double its development aid I think to AUS$4 billion by 2010. I will have a chance to try to meet with some of the Australian aid officials as well as the Finance Ministry, compare notes on that.

And then in each region there are some particular challenges. For example, we have been working with our Australian counterparts on some of the particular challenges of the Pacific Ocean states. And this is one where those small countries have faced some very important problems in part due to distance, also due to climate change, and so I want to try to get a better sense from the Bank staff as well as our Australian counterparts about how we can address some of those issues.

I also hope to learn a little bit more about conditions in Timor and Papua New Guinea. So, one of the benefits of taking this trip is that every time I will go to a different location I can try to listen and learn about some of the particular development interests.

So coming back to your question in Japan. Japan has been a very supportive country in terms of development aid, in part because of some of the budget stringencies, some of those numbers have come down a little bit in the recent years. So, I would like to try to see what we can do to keep those numbers strong and to maintain the Bank’s strong partnership with Japan.

Journalist: Deborah Lutterbeck. I am with Reuters Television. You heading to Asia when it has been about ten years since the global financial crisis was sparked in that part of the world. What is your sense about the financial condition of the region right now? In an unrelated question, why aren’t you going to China?

Zoellick: Well, on the first one. You know I worked a lot with Asia over the years and in fact interestingly enough I was at the first APEC Summit in Australia, in Canberra in 1989, and I helped launch the APEC process. And throughout that 20 some years you’ve seen an incredible dynamism in that region. So, I think the most striking story over the past ten years is Asia’s recovery, and if you look at the IMF report that came out today in terms of global growth, the key contributing aspect that the countries in Asia make to global growth and development.

Having said that, I think the Australian chairs have put on the agenda some important issues related to the strength of the financial networks, sort of the overall investment climate, some of the depth and integration of those financial systems, which I have some familiarity with from my private sector experience as well. So, I think anytime that you have the size of financial flows you now have globally - and clearly Asia and the Asia-Pacific region is integrally connected to that - you have to make to sure that the potential impediments and blockages and difficulties that can arise, get attention, and I think that's one of the reasons that,   or one of the topics that the Finance Ministers hope to address.

On your question on China, I had offered to go to China. Conveniently, I was in China earlier this year,   I think in March. The Chinese kindly said that if I could have come this week, they would have welcomed me. The time that I’d be there in August would be the time that they have their retreat. So, they were kind enough to try to make an opportunity but I just couldn’t get away.   I have had - this is my first four weeks here in office, so I will try to visit China later in the year.

As I’ve said on other occasions, I think China is a very important partner for the World Bank, in part because China still faces very significant challenges on internal development. But also, I would like to work with China in China’s relations with third countries, whether it be Africa or other countries in the region. And I think the World Bank will be able to do that more effectively if we are a good partner with China on some of its development questions, whether they be environmental, whether they be health, whether they be one that’s current that we are just starting to take a look at is whether we might develop some help in terms of the food safety projects. So, it’s a good example of how the Bank can be a good partner to countries in different stages of development.

Journalist: Mr. Zoellick is thereanything here that you want to make your signature issue?

Zoellick: Well, I think it’s a little bit early.   I have only been here four weeks. So, I think, what I have been trying to do in the first four weeks is first calm the waters after what was a difficult period -   Try to at the same time; start to navigate, and steer the ship in a direction to make sure we are focusing on our core missions. - being the efforts to try to overcome poverty, but also create the ability for sustainable and inclusive growth and opportunity. In this sense, this visit is a good chance to come to a part of the world, as your question suggested, that it’s very dynamic, very driving in energy, but also has some serious problems of poverty and development. Cambodia, one of the countries I am going to visit is a country that was shattered by genocide, and while the growth has been pretty good in recent years, one needs to have a development program, that in part helps re-build the capacity that was lost with what that country suffered.

In addition, with the competition of other countries there, if you look at the export pattern of Cambodia, it’s still heavily the garment industry. It’s a big concern about Cambodian exports having lost out at the time that the Multi- Fiber Agreement that the quotas went away. They have been able to keep that going, but clearly they want to try to diversify more basically. But in a case like Vietnam, where you have had extraordinary growth, it has been a real success story. I think it’s brought poverty down from about 70% to 20%. There are still questions of very significant rural poverty, so I am going to try to go to one of the mountains areas, see one of the projects that we have there dealing with sort of basic infrastructure of roads and irrigation and some of the social agenda.

So, if I put those in a larger picture - I think one of the challenges of our time, but it’s not just for the World Bank, is how do we help support a sort of inclusive and sustainable globalization that helps those at the poorest center of the scale have a chance to climb the ladder of opportunity, also help some of the middle-income countries become stakeholders in the system;   and also, from the developed countries perspectives, help them recognize their self interest in development and growth globally.

Journalist: Mr. Zoellick, I’m Tracy Brown with the Associated Press. Would you outline for us maybe your priorities when it comes to fundraising for donor nations? And where do you think you would be going? Obviously, a couple of weeks into your tenure, how do you feel the mending of the fences is going on?

Zoellick: Well, the prime funding challenge now is, that called IDA, the International Development Association -   and this is the funding effort that’s done every three years for the poorest countries and it provides the funds for grants at a very concessionary loan process. As you said, that the process of coming up with sort of IDA goals and fundraising is sort of underway. What I have been trying to do is get a sense of where that process stands, and then start to work with some of the key contributors to see what we in the development community need to do in terms of gaining support. For example, focusing on issues, of particular concern like fragile states;   emphasizing the effectiveness;   making the case for where IDA fits into the global aid architecture with all the other funds that are going on. I have already started to work it into my discussions, when I am dealing with ministers, where in Britain or France, or the United States and others. And, that will be one of the topics that I want to try to discuss with some of the developed countries on this visit as well.

I might also add, we want to try to work with some of the countries that have been successful development stories, such as Korea to see whether they might be able to contribute to the process. And I think there has been some willingness on their part. So, it runs through my work. But in being successful in this, I think, we need to be able to, again, listen and to learn from the developed countries; have a sense of how their interest and agenda fits with the different range of developing countries. And then try to make the case on why IDA is critically important for the common interest.

Michael Rowland, Australian Broadcasting Corporation: Mr. Zoellick, how will your leadership style....

Zoellick: Just let me make sure that everybody has got a chance. Everybody got one?

Rowland: How will your leadership style - it’s a related question - how is your leadership style differ to that of your predecessor?

Zoellick: Well, I tend not to make comparisons with the past. I can just focus on what I am trying to do. And I think the key starting point is   within the institution, I am trying to get to know people in addition to the senior staff and the Board members. I have had a lot of different sessions, formal and informal with people; go by various offices. With this idea, again, I am trying to understand what people think are the foremost issues we have to address;   to focus on this certain question of development and overcoming poverty and creating opportunities for growth, and try to do so in an inclusive way. But then, try to shape an overall strategy. And we will have an Annual Meeting in mid October and that will be the chance for Governors of the Bank -   the ministers - to have discussions with me and the other senior management. And I hope that we can try to bring people together on what needs to be the goals for dealing with the poorest countries; dealing with this public goods issue; the environment; dealing with the middle-income countries; and with some of the fragile states including some of those that I mentioned in the Pacific area – because there is no doubt that when you think about the needs out there, they are great. And the Bank is one player among many, but I think one that can play a particularly important and leadership role, if we build the support to help us do that. Thank you.

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